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Previous: MONEY MARKET OBLIGATIONS TRUST /NEW/, NSAR-A, EX-27, 2000-12-28 |
Next: PARAMETRIC TECHNOLOGY CORP, 10-K405, 2000-12-28 |
Federated Investors
World-Class Investment Manager
A Portfolio of Money Market Obligations Trust
October 31, 2000
NOT FDIC INSURED * MAY LOSE VALUE * NO BANK GUARANTEE
Dear Investor:
I am pleased to present the Semi-Annual Report to Shareholders for Automated Government Cash Reserves, a portfolio of Money Market Obligations Trust, for the six-month reporting period ended October 31, 2000. The report begins with a brief commentary by the fund's portfolio manager on the short-term government market, followed by a complete list of the fund's investments and its financial statements.
On behalf of investors, the fund pursues current income, a high level of liquidity and a stable net asset value of $1.00 per share.1 It invests exclusively in a portfolio of securities issued or guaranteed by the U.S. government or its agencies.
During the six-month reporting period, dividends paid to shareholders amounted to $0.030 per share. At the end of the reporting period, the fund's total return was 3.02%2 and its 7-day net yield was 6.01%. At the end of the reporting period, net assets totaled approximately $690.6 million.
Thank you for participating in the daily income opportunities of Automated Government Cash Reserves. As always, we welcome your questions, comments or suggestions.
Sincerely,
J. Christopher Donahue
J. Christopher Donahue
President
December 15, 2000
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 Past performance is no guarantee of future results. Yields will vary. Yields quoted for money market funds most closely reflect the fund's current earnings.
Automated Government Cash Reserves, which is rated AAAm by Standard & Poor's1 and Aaa by Moody's Investors Service,2 invests only in U.S. Treasury and certain U.S. government agency obligations. Because of the expensive nature of the short-term U.S. Treasury market, the fund currently holds U.S. government agency securities only. The fund continues to invest in issues of the Student Loan Marketing Association, Federal Farm Credit Bank System, Federal Home Loan Bank System and Tennessee Valley Authority. The fund does not invest in repurchase agreements, and is managed to provide distributions that are exempt from state and local taxes.
The Federal Reserve Board (the "Fed") tightened monetary policy once over the semi-annual reporting period ended October 31, 2000. Early in the reporting period, on May 16, 2000, the Fed raised the federal funds target rate to 6.5% from 6.0%, citing concern that the "disparity in the growth of demand and potential supply" could result in inflationary pressures. This was the sixth tightening step taken by the Fed since June 1999, bringing the total increase in the federal funds target rate since that time to 175 basis points.
The May tightening may prove to be the last one in this tightening cycle, as market sentiment--confronted with signs of moderating economic growth--shifted at this point. The diminishing "wealth effect" from the decline in the equity markets and higher fuel prices restrained consumer demand. Although second quarter Gross Domestic Product (GDP) came in at a still-robust 5.6%, there was evidence of inventory buildup. The advance estimate of third quarter GDP growth came in at 2.7%, and revealed softer levels of investment and final demand, as well as continued inventory accumulation. In spite of a rise in energy prices over the reporting period, core inflation remained contained at both the producer and consumer levels. All of this led market participants to conclude that the Fed was near or at the end of its tightening cycle, and that it had perhaps engineered a soft economic landing. The Fed remained on hold for the rest of the reporting period, content to sit back and let the effects of its rate hikes filter through to the economy.
1 This rating is obtained after Standard & Poor's evaluates a number of factors, including credit quality, market price exposure and management. Standard & Poor's monitors the portfolio weekly for developments that could cause changes in the ratings. Ratings are subject to change and do not remove market risks.
2 Money market funds and bond funds rated Aaa by Moody's Investors Service are judged to be of an investment quality similar to Aaa-rated fixed income obligations; that is, they are judged to be of the best quality. Ratings are subject to change and do not remove market risks.
Movements in short-term interest rates reflected economic developments and the shifting expectations regarding the Fed over the reporting period. The yield on the three-month agency discount note traded at 6.3% at the beginning of May, but rose to 6.6% by the end of the month, responding to the tightening move by the Fed. The yield then dropped to 6.5% by early July amid signs that economic growth could be moderating. The yield on this security then traded within a relatively narrow range for the remainder of the reporting period.
The fund was managed within a 35 to 45 day average maturity target range over the reporting period, and maximized performance through ongoing relative value analysis. The fund's portfolio structure was barbelled, which continued to provide a competitive yield. About one-quarter of the fund's assets were invested in U.S. government agency floating rate notes in order to increase the fund's responsiveness to changes in short-term interest rates. The fund also used a floating rate masternote agreement designed to facilitate portfolio liquidity. This floating rate position, combined with short-term agency discount notes, comprised the short end of the barbell. The fund combined this short position with U.S. Treasury and agency securities with longer maturities of 6 to 13 months.
October 31, 2000 (unaudited)
|
Principal |
|
|
|
Value |
||
|
|
|
|
GOVERNMENT AGENCIES--112.0% |
|
|
|
|
$ |
143,049,000 |
1 |
Federal Farm Credit System Discount Notes, 5.940% - 6.710%, 11/1/2000 - 6/1/2001 |
|
$ |
142,066,252 |
|
|
31,000,000 |
2 |
Federal Farm Credit System Floating Rate Notes, 6.439% - 6.459%, 11/1/2000 |
|
|
30,988,137 |
|
|
3,500,000 |
|
Federal Farm Credit System Note, 6.350%, 2/1/2001 |
|
|
3,498,407 |
|
|
282,350,000 |
1 |
Federal Home Loan Bank System Discount Notes, 6.240% - 6.480%, 11/1/2000 - 6/8/2001 |
|
|
279,583,528 |
|
|
62,000,000 |
2 |
Federal Home Loan Bank System Floating Rate Notes, 6.405% - 6.765%, 11/1/2000 - 1/19/2001 |
|
|
61,967,978 |
|
|
34,500,000 |
|
Federal Home Loan Bank System Notes, 5.875% - 7.440%, 2/7/2001 - 10/17/2001 |
|
|
34,493,437 |
|
|
63,475,000 |
1 |
Student Loan Marketing Association Discount Notes, 6.340% - 6.430%, 11/3/2000 - 1/4/2001 |
|
|
63,284,234 |
|
|
78,000,000 |
2 |
Student Loan Marketing Association Floating Rate Notes, 6.655% - 7.065%, 11/1/2000 - 11/7/2000 |
|
|
77,983,919 |
|
|
27,500,000 |
|
Student Loan Marketing Association Master Notes, 6.615%, 11/7/2000 |
|
|
27,500,000 |
|
|
2,000,000 |
|
Student Loan Marketing Association Note, 6.045%, 11/3/2000 |
|
|
1,999,994 |
|
|
50,000,000 |
1 |
Tennessee Valley Authority Discount Notes, 6.350% - 6.370%, 11/17/2000 |
|
|
49,858,711 |
|
|
||||||
|
|
|
|
TOTAL INVESTMENTS (AT AMORTIZED COST)3 |
|
$ |
773,224,597 |
|
|
||||||
1 Discount rate at time of purchase.
2 Floating rate note with current rate and next reset date shown.
3 Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets ($690,654,282) as of October 31, 2000.
See Notes which are an integral part of the Financial Statements
October 31, 2000 (unaudited)
|
Assets: |
|
|
|
|
|
|
|
Total investments in securities, at amortized cost and value |
|
|
|
|
$ |
773,224,597 |
|
Cash |
|
|
|
|
|
3,523,255 |
|
Income receivable |
|
|
|
|
|
2,140,570 |
|
Receivable for investments sold |
|
|
|
|
|
19,943,378 |
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Receivable for shares sold |
|
|
|
|
|
7,955 |
|
|
||||||
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TOTAL ASSETS |
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|
|
|
|
798,839,755 |
|
|
||||||
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Liabilities: |
|
|
|
|
|
|
|
Payable for investments purchased |
|
$ |
104,516,732 |
|
|
|
|
Income distribution payable |
|
|
3,496,153 |
|
|
|
|
Accrued expenses |
|
|
172,588 |
|
|
|
|
|
||||||
|
TOTAL LIABILITIES |
|
|
|
|
|
108,185,473 |
|
|
||||||
|
Net assets for 690,654,282 shares outstanding |
|
|
|
|
$ |
690,654,282 |
|
|
||||||
|
Net Asset Value, Offering Price and Redemption Proceeds Per Share: |
|
|
|
|
|
|
|
$690,654,282 ÷690,654,282 shares outstanding |
|
|
|
|
|
$1.00 |
|
|
||||||
See Notes which are an integral part of the Financial Statements
Six Months Ended October 31, 2000 (unaudited)
|
Investment Income: |
|
|
|
|
|
|
|
|
Interest |
|
|
|
|
|
$ |
22,580,723 |
|
|
|||||||
|
Expenses: |
|
|
|
|
|
|
|
|
Investment adviser fee |
|
$ |
1,731,449 |
|
|
|
|
|
Administrative personnel and services fee |
|
|
260,756 |
|
|
|
|
|
Custodian fees |
|
|
18,792 |
|
|
|
|
|
Transfer and dividend disbursing agent fees and expenses |
|
|
16,368 |
|
|
|
|
|
Directors'/Trustees' fees |
|
|
2,624 |
|
|
|
|
|
Auditing fees |
|
|
5,541 |
|
|
|
|
|
Legal fees |
|
|
2,516 |
|
|
|
|
|
Portfolio accounting fees |
|
|
54,783 |
|
|
|
|
|
Shareholder services fee |
|
|
865,725 |
|
|
|
|
|
Share registration costs |
|
|
8,311 |
|
|
|
|
|
Printing and postage |
|
|
7,033 |
|
|
|
|
|
Insurance premiums |
|
|
1,039 |
|
|
|
|
|
Miscellaneous |
|
|
5,741 |
|
|
|
|
|
|
|||||||
|
TOTAL EXPENSES |
|
|
2,980,678 |
|
|
|
|
|
|
|||||||
|
Waiver: |
|
|
|
|
|
|
|
|
Waiver of investment adviser fee |
|
|
(922,333 |
) |
|
|
|
|
|
|||||||
|
Net expenses |
|
|
|
|
|
|
2,058,345 |
|
|
|||||||
|
Net investment income |
|
|
|
|
|
$ |
20,522,378 |
|
|
|||||||
See Notes which are an integral part of the Financial Statements
|
|
|
|
Six Months |
|
|
|
Year Ended |
|
|
Increase (Decrease) in Net Assets |
|
|
|
|
|
|
|
|
|
Operations: |
|
|
|
|
|
|
|
|
|
Net investment income |
|
$ |
20,522,378 |
|
|
$ |
31,923,105 |
|
|
|
||||||||
|
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
Distributions from net investment income |
|
|
(20,522,378 |
) |
|
|
(31,923,105 |
) |
|
|
||||||||
|
Share Transactions: |
|
|
|
|
|
|
|
|
|
Proceeds from sale of shares |
|
|
942,846,746 |
|
|
|
2,083,274,942 |
|
|
Net asset value of shares issued to shareholders in payment of distributions declared |
|
|
2,538,064 |
|
|
|
5,131,067 |
|
|
Cost of shares redeemed |
|
|
(969,238,454 |
) |
|
|
(2,147,807,776 |
) |
|
|
||||||||
|
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS |
|
|
(23,853,644 |
) |
|
|
(59,401,767 |
) |
|
|
||||||||
|
Change in net assets |
|
|
(23,853,644 |
) |
|
|
(59,401,767 |
) |
|
|
||||||||
|
Net Assets: |
|
|
|
|
|
|
|
|
|
Beginning of period |
|
|
714,507,926 |
|
|
|
773,909,693 |
|
|
|
||||||||
|
End of period |
|
$ |
690,654,282 |
|
|
$ |
714,507,926 |
|
|
|
||||||||
See Notes which are an integral part of the Financial Statements
(For a Share Outstanding Throughout Each Period)
|
|
|
Six Months |
|
|
Year Ended April 30, |
|||||||||||||
|
|
|
10/31/2000 |
|
|
2000 |
|
|
1999 |
|
|
1998 |
|
|
1997 |
|
|
1996 |
|
|
Net Asset Value, Beginning of Period |
|
$ 1.00 |
|
|
$ 1.00 |
|
|
$ 1.00 |
|
|
$ 1.00 |
|
|
$ 1.00 |
|
|
$ 1.00 |
|
|
Income From Investment Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
0.03 |
|
|
0.05 |
|
|
0.05 |
|
|
0.05 |
|
|
0.05 |
|
|
0.05 |
|
|
Less Distributions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions from net investment income |
|
(0.03 |
) |
|
(0.05 |
) |
|
(0.05 |
) |
|
(0.05 |
) |
|
(0.05 |
) |
|
(0.05 |
) |
|
|
||||||||||||||||||
|
Net Asset Value, End of Period |
|
$ 1.00 |
|
|
$ 1.00 |
|
|
$ 1.00 |
|
|
$ 1.00 |
|
|
$ 1.00 |
|
|
$ 1.00 |
|
|
|
||||||||||||||||||
|
Total Return1 |
|
3.02 |
% |
|
4.96 |
% |
|
4.75 |
% |
|
5.08 |
% |
|
4.90 |
% |
|
5.24 |
% |
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios to Average Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Expenses |
|
0.59 |
%2 |
|
0.59 |
% |
|
0.59 |
% |
|
0.60 |
% |
|
0.59 |
% |
|
0.58 |
% |
|
|
||||||||||||||||||
|
Net investment income |
|
5.94 |
%2 |
|
4.85 |
% |
|
4.65 |
% |
|
4.96 |
% |
|
4.80 |
% |
|
5.12 |
% |
|
|
||||||||||||||||||
|
Expense waiver/reimbursement3 |
|
0.27 |
%2 |
|
0.27 |
% |
|
0.27 |
% |
|
0.27 |
% |
|
0.29 |
% |
|
0.30 |
% |
|
|
||||||||||||||||||
|
Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Net assets, end of period (000 omitted) |
|
$690,654 |
|
$714,508 |
|
$773,910 |
|
$662,200 |
|
$663,071 |
|
$603,136 |
|
|||||
|
|
||||||||||||||||||
1 Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable.
2 Computed on an annualized basis.
3 This voluntary expense decrease is reflected in both the expense and the net investment income ratios shown above.
See Notes which are an integral part of the Financial Statements
October 31, 2000 (Unaudited)
Money Market Obligations Trust (the "Trust") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end, management investment company. The Trust consists of 40 portfolios. The financial statements included herein are only those of Automated Government Cash Reserves (the "Fund"). The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated, and a shareholder's interest is limited to the portfolio in which shares are held. The investment objective of the Fund is current income consistent with stability of principal and liquidity.
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.
The Fund uses the amortized cost method to value its portfolio securities in accordance with Rule 2a-7 under the Act.
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"). Dividend income and distributions to shareholders are recorded on the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at fair market value.
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.
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. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.
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.
Investment transactions are accounted for on a trade date basis.
The Declaration of Trust permits the Board of Trustees (the "Trustees") to issue an unlimited number of full and fractional shares of beneficial interest (without par value). At October 31, 2000, capital paid-in aggregated $690,654,282.
Transactions in shares were as follows:
|
|
|
Six Months |
|
|
Year Ended |
|
|
Shares sold |
|
942,846,746 |
|
|
2,083,274,942 |
|
|
Shares issued to shareholders in payment of distributions declared |
|
2,538,064 |
|
|
5,131,067 |
|
|
Shares redeemed |
|
(969,238,454 |
) |
|
(2,147,807,776 |
) |
|
|
||||||
|
NET CHANGE RESULTING FROM SHARE TRANSACTIONS |
|
(23,853,644 |
) |
|
(59,401,767 |
) |
|
|
||||||
Federated Investment Management Company, the Fund's investment adviser (the "Adviser"), receives for its services an annual investment adviser fee equal to 0.50% of the Fund's average daily net assets. The Adviser may voluntarily choose to waive any portion of its fee. The Adviser can modify or terminate this voluntary waiver at any time at its sole discretion.
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 a scale that ranges from 0.150% to 0.075% of the average aggregate daily net assets of all funds advised by subsidiaries of Federated Investors, Inc., subject to a $125,000 minimum per portfolio and $30,000 per each additional class.
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.
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.
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.
Certain of the Officers and Trustees of the Trust are Officers and Directors or Trustees of the above companies.
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
JOHN F. DONAHUE
Chairman
J. CHRISTOPHER DONAHUE
President
EDWARD C. GONZALES
Executive Vice President
JOHN W. MCGONIGLE
Executive Vice President and Secretary
RICHARD B. FISHER
Vice President
RICHARD J. THOMAS
Treasurer
LESLIE K. ROSS
Assistant Secretary
Mutual funds are not bank deposits or obligations, are not guaranteed by any bank, and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other government agency. Investment in mutual funds involves investment risk, including the possible loss of principal.
This report is authorized for distribution to prospective investors only when preceded or accompanied by the fund's prospectus which contains facts concerning its objective and policies, management fees, expenses and other information.
Federated
World-Class Investment Manager
Automated Government
Cash Reserves
Federated Investors Funds
5800 Corporate
Drive
Pittsburgh, PA
15237-7000
1-800-341-7400
www.federatedinvestors.com
Federated
Securities Corp., Distributor
Cusip 60934N716
0112708 (12/00)
Federated is a registered mark of Federated Investors, Inc. 2000 ©Federated Investors, Inc.
Federated Investors
World-Class Investment Manager
A Portfolio of Money Market Obligations Trust
October 31, 2000
NOT FDIC INSURED * MAY LOSE VALUE * NO BANK GUARANTEE
Dear Investor:
I am pleased to present the Semi-Annual Report to Shareholders for Automated Treasury Cash Reserves, a portfolio of Money Market Obligations Trust, for the six-month reporting period ended October 31, 2000. The report begins with a brief commentary by the fund's portfolio manager on the short-term government market, followed by a complete list of the fund's investments and its financial statements.
On behalf of investors, the fund pursues current income, a high level of liquidity, and a stable net asset value of $1.00 per share1--all through a portfolio of U.S. Treasury obligations.
During the six-month reporting period, dividends paid to shareholders totaled $6.4 million, or $0.027 per share. At the end of the reporting period, net assets reached $272.4 million.
Thank you for participating in the daily income opportunities of Automated Treasury Cash Reserves. Your questions, comments or suggestions are always welcome.
Sincerely,
J. Christopher Donahue
J. Christopher Donahue
President
December 15, 2000
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.
Automated Treasury Cash Reserves, which is rated AAAm by Standard & Poor's1 and Aaa by Moody's Investors Service2 invests only in direct issues of the U.S. Treasury. The fund was created to meet the needs of tax-sensitive investors in states that treat income from repurchase agreements as taxable. Therefore, the fund's acceptable investments do not include repurchase agreements.
The Federal Reserve Board (the "Fed") tightened monetary policy once over the semi-annual reporting period ended October 31, 2000. Early in the reporting period, on May 16, the Fed raised the federal funds target rate to 6.5% from 6.0%, citing concern that the "disparity in the growth of demand and potential supply" could result in inflationary pressures. This was the sixth tightening step taken by the Fed since June 1999, bringing the total increase in the federal funds target rate since that time to 175 basis points.
The May tightening could prove to be the last one in this tightening cycle, as market sentiment--confronted with signs of moderating economic growth--shifted at this point. The diminishing "wealth effect" from the decline in the equity markets and higher fuel prices restrained consumer demand. Although second quarter gross domestic product (GDP) came in at a still-robust 5.6%, there was evidence of inventory buildup. The advance estimate of third quarter GDP growth came in at 2.7%, and revealed softer levels of investment and final demand, as well as continued inventory accumulation. In spite of a rise in energy prices over the reporting period, core inflation remained contained at both the producer and consumer levels. All of this led market participants to conclude that the Fed was near or at the end of its tightening cycle, and that it had perhaps engineered a soft economic landing. The Fed remained on hold for the rest of the reporting period, content to sit back and let the effects of its rate hikes filter through to the economy.
1 This rating is obtained after Standard & Poor's evaluates a number of factors, including credit quality, market price exposure and management. Standard & Poor's monitors the portfolio weekly for developments that could cause changes in the ratings. Ratings are subject to change and do not remove market risks.
2 Money market funds and bond funds rated Aaa by Moody's Investors Service are judged to be of an investment quality similar to Aaa-rated fixed income obligations; that is, they are judged to be of the best quality. Ratings are subject to change and do not remove market risks.
Movements in short-term interest rates reflected economic developments and the shifting expectations regarding the Fed over the reporting period. The U.S. Treasury bill market also periodically reflected a flight to quality from investors seeking a haven from turmoil in the equity markets, as well as a technical influence from changes in U.S. Treasury bill issuance. The yield on the three-month U.S. Treasury bill traded at 5.8% at the beginning of May, but fell to 5.6% by the end of the month--in spite of the tightening move by the Fed--as the NASDAQ composite index lost almost 15% of its value over this period. The yield then rose fairly steadily to close the reporting period at 6.4%, boosted by an increase in the size of the U.S. Treasury's weekly bill auction from $8.5 to $11 billion.
The fund's average maturity generally moved between 35 to 45 days over the reporting period, moving within that range according to relative value opportunities in the marketplace. With the increase in regular U.S. Treasury bill supply, purchases were slightly more weighted toward the U.S. Treasury bill market than toward the U.S. Treasury note market. On October 31, 2000, 55.9% of the portfolio was invested in U.S. Treasury bills.
October 31, 2000 (unaudited)
|
Principal |
|
|
|
Value |
||
|
|
|
|
U.S. TREASURY OBLIGATIONS--99.5% |
|
|
|
|
|
|
|
U.S. Treasury Bills--55.9%1 |
|
|
|
|
$ |
10,000,000 |
|
5.950%, 2/8/2001 |
|
$ |
9,836,375 |
|
|
2,000,000 |
|
5.960%, 11/30/2000 |
|
|
1,990,398 |
|
|
11,000,000 |
|
5.970% - 6.090%, 11/16/2000 |
|
|
10,972,148 |
|
|
46,500,000 |
|
5.970% - 6.090%, 1/4/2001 |
|
|
46,001,622 |
|
|
25,000,000 |
|
6.085% - 6.130%, 11/9/2000 |
|
|
24,966,115 |
|
|
3,000,000 |
|
6.085%, 12/7/2000 |
|
|
2,981,745 |
|
|
10,000,000 |
|
6.085%, 2/15/2001 |
|
|
9,820,831 |
|
|
3,000,000 |
|
6.115%, 11/24/2000 |
|
|
2,988,280 |
|
|
43,000,000 |
|
6.379% - 6.380%, 12/21/2000 |
|
|
42,619,011 |
|
|
||||||
|
|
|
|
TOTAL |
|
|
152,176,525 |
|
|
||||||
|
|
|
|
U.S. Treasury Notes--43.6% |
|
|
|
|
|
10,000,000 |
|
4.500%, 1/31/2001 |
|
|
9,952,996 |
|
|
35,000,000 |
|
4.625% - 5.625%, 11/30/2000 |
|
|
34,963,375 |
|
|
20,000,000 |
|
5.375%, 2/15/2001 |
|
|
19,938,618 |
|
|
54,000,000 |
|
5.750% - 8.500%, 11/15/2000 |
|
|
54,012,641 |
|
|
||||||
|
|
|
|
TOTAL |
|
|
118,867,630 |
|
|
||||||
|
|
|
|
TOTAL INVESTMENTS (AT AMORTIZED COST)2 |
|
$ |
271,044,155 |
|
|
||||||
1 Each issue shows the rate of discount at the time of purchase.
2 Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets ($272,391,293) as of October 31, 2000.
See Notes which are an integral part of the Financial Statements
October 31, 2000 (unaudited)
|
Assets: |
|
|
|
|
|
|
|
Total investments in securities, at amortized cost and value |
|
|
|
|
$ |
271,044,155 |
|
Income receivable |
|
|
|
|
|
2,837,774 |
|
Receivable for investments sold |
|
|
|
|
|
42,403,349 |
|
|
||||||
|
TOTAL ASSETS |
|
|
|
|
|
316,285,278 |
|
|
||||||
|
Liabilities: |
|
|
|
|
|
|
|
Payable for investments purchased |
|
$ |
42,619,011 |
|
|
|
|
Payable to bank |
|
|
20,910 |
|
|
|
|
Income distribution payable |
|
|
1,192,099 |
|
|
|
|
Accrued expenses |
|
|
61,965 |
|
|
|
|
|
||||||
|
TOTAL LIABILITIES |
|
|
|
|
|
43,893,985 |
|
|
||||||
|
Net assets for 272,391,293 shares outstanding |
|
|
|
|
$ |
272,391,293 |
|
|
||||||
|
Net Asset Value, Offering Price and Redemption Proceeds Per Share: |
|
|
|
|
|
|
|
$272,391,293 ÷ 272,391,293 shares outstanding |
|
|
|
|
|
$1.00 |
|
|
||||||
See Notes which are an integral part of the Financial Statements
Six Months Ended October 31, 2000 (unaudited)
|
Investment Income: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest |
|
|
|
|
|
|
|
|
|
$ |
7,101,862 |
|
|
|||||||||||
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Investment adviser fee |
|
|
|
|
|
$ |
586,513 |
|
|
|
|
|
Administrative personnel and services fee |
|
|
|
|
|
|
88,329 |
|
|
|
|
|
Custodian fees |
|
|
|
|
|
|
7,273 |
|
|
|
|
|
Transfer and dividend disbursing agent fees and expenses |
|
|
|
|
|
|
11,124 |
|
|
|
|
|
Directors'/Trustees' fees |
|
|
|
|
|
|
1,408 |
|
|
|
|
|
Auditing fees |
|
|
|
|
|
|
5,982 |
|
|
|
|
|
Legal fees |
|
|
|
|
|
|
2,184 |
|
|
|
|
|
Portfolio accounting fees |
|
|
|
|
|
|
32,676 |
|
|
|
|
|
Shareholder services fee |
|
|
|
|
|
|
293,257 |
|
|
|
|
|
Share registration costs |
|
|
|
|
|
|
7,976 |
|
|
|
|
|
Printing and postage |
|
|
|
|
|
|
8,413 |
|
|
|
|
|
Insurance premiums |
|
|
|
|
|
|
939 |
|
|
|
|
|
Miscellaneous |
|
|
|
|
|
|
4,875 |
|
|
|
|
|
|
|||||||||||
|
TOTAL EXPENSES |
|
|
|
|
|
|
1,050,949 |
|
|
|
|
|
|
|||||||||||
|
Waivers: |
|
|
|
|
|
|
|
|
|
|
|
|
Waiver of investment adviser fee |
|
$ |
(323,672 |
) |
|
|
|
|
|
|
|
|
Waiver of shareholder services fee |
|
|
(35,191 |
) |
|
|
|
|
|
|
|
|
|
|||||||||||
|
TOTAL WAIVERS |
|
|
|
|
|
|
(358,863 |
) |
|
|
|
|
|
|||||||||||
|
Net expenses |
|
|
|
|
|
|
|
|
|
|
692,086 |
|
|
|||||||||||
|
Net investment income |
|
|
|
|
|
|
|
|
|
$ |
6,409,776 |
|
|
|||||||||||
See Notes which are an integral part of the Financial Statements
|
|
|
Six Months |
|
|
Year Ended |
|
||
|
Increase (Decrease) in Net Assets |
|
|
|
|
|
|
|
|
|
Operations: |
|
|
|
|
|
|
|
|
|
Net investment income |
|
$ |
6,409,776 |
|
|
$ |
11,346,914 |
|
|
|
||||||||
|
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
Distributions from net investment income |
|
|
(6,409,776 |
) |
|
|
(11,346,914 |
) |
|
|
||||||||
|
Share Transactions: |
|
|
|
|
|
|
|
|
|
Proceeds from sale of shares |
|
|
399,822,716 |
|
|
|
767,867,552 |
|
|
Net asset value of shares issued to shareholders in payment of distributions declared |
|
|
1,422,315 |
|
|
|
3,582,172 |
|
|
Cost of shares redeemed |
|
|
(356,329,822 |
) |
|
|
(798,639,670 |
) |
|
|
||||||||
|
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS |
|
|
44,915,209 |
|
|
|
(27,189,946 |
) |
|
|
||||||||
|
Change in net assets |
|
|
44,915,209 |
|
|
|
(27,189,946 |
) |
|
|
||||||||
|
Net Assets: |
|
|
|
|
|
|
|
|
|
Beginning of period |
|
|
227,476,084 |
|
|
|
254,666,030 |
|
|
|
||||||||
|
End of period |
|
$ |
272,391,293 |
|
|
$ |
227,476,084 |
|
|
|
||||||||
See Notes which are an integral part of the Financial Statements
(For a Share Outstanding Throughout Each Period)
|
|
|
Six Months |
|
|
Year Ended April 30, |
|||||||||||||
|
|
|
10/31/2000 |
|
|
2000 |
|
|
1999 |
|
|
1998 |
|
|
1997 |
|
|
1996 |
|
|
Net Asset Value, Beginning of Period |
|
$ 1.00 |
|
|
$ 1.00 |
|
|
$ 1.00 |
|
|
$ 1.00 |
|
|
$ 1.00 |
|
|
$ 1.00 |
|
|
Income From Investment Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
0.03 |
|
|
0.04 |
|
|
0.04 |
|
|
0.05 |
|
|
0.05 |
|
|
0.05 |
|
|
Less Distributions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions from net investment income |
|
(0.03 |
) |
|
(0.04 |
) |
|
(0.04 |
) |
|
(0.05 |
) |
|
(0.05 |
) |
|
(0.05 |
) |
|
|
||||||||||||||||||
|
Net Asset Value, End of Period |
|
$ 1.00 |
|
|
$ 1.00 |
|
|
$ 1.00 |
|
|
$ 1.00 |
|
|
$ 1.00 |
|
|
$ 1.00 |
|
|
|
||||||||||||||||||
|
Total Return1 |
|
2.77 |
% |
|
4.56 |
% |
|
4.40 |
% |
|
4.81 |
% |
|
4.71 |
% |
|
5.04 |
% |
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios to Average Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Expenses |
|
0.59 |
%2 |
|
0.59 |
% |
|
0.59 |
% |
|
0.59 |
% |
|
0.57 |
% |
|
0.57 |
% |
|
|
||||||||||||||||||
|
Net investment income |
|
5.46 |
%2 |
|
4.45 |
% |
|
4.34 |
% |
|
4.70 |
% |
|
4.63 |
% |
|
4.92 |
% |
|
|
||||||||||||||||||
|
Expense waiver/reimbursement3 |
|
0.31 |
%2 |
|
0.32 |
% |
|
0.30 |
% |
|
0.30 |
% |
|
0.34 |
% |
|
0.37 |
% |
|
|
||||||||||||||||||
|
Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Net assets, end of period (000 omitted) |
|
$272,391 |
|
$227,476 |
|
$254,666 |
|
$329,906 |
|
$289,526 |
|
$260,688 |
|
|||||
|
|
||||||||||||||||||
1 Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable.
2 Computed on an annualized basis.
3 This voluntary expense decrease is reflected in both the expense and the net investment income ratios shown above.
See Notes which are an integral part of the Financial Statements
October 31, 2000 (Unaudited)
Money Market Obligations Trust (the "Trust") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end, management investment company. The Trust consists of 40 portfolios. The financial statements included herein are only those of Automated Treasury Cash Reserves (the "Fund"). The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated, and a shareholder's interest is limited to the portfolio in which shares are held. The investment objective of the Fund is to provide current income consistent with stability of principal and liquidity.
The 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.
The Fund uses the amortized cost method to value its portfolio securities in accordance with Rule 2a-7 under the Act.
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"). Dividend income and distributions to shareholders are recorded on the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at fair market value.
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.
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. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.
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.
Investment transactions are accounted for on a trade date basis.
The Declaration of Trust permits the Board of Trustees (the "Trustees") to issue an unlimited number of full and fractional shares of beneficial interest (without par value). At October 31, 2000, capital paid-in aggregated $272,391,293.
Transactions in shares were as follows:
|
|
|
Six Months |
|
|
Year Ended |
|
|
Shares sold |
|
399,822,716 |
|
|
767,867,552 |
|
|
Shares issued to shareholders in payment of distributions declared |
|
1,422,315 |
|
|
3,582,172 |
|
|
Shares redeemed |
|
(356,329,822 |
) |
|
(798,639,670 |
) |
|
|
||||||
|
NET CHANGE RESULTING FROM SHARE TRANSACTIONS |
|
(44,915,209 |
) |
|
(27,189,946 |
) |
|
|
||||||
Federated Investment Management Company, the Fund's investment adviser (the "Adviser"), receives for its services an annual investment adviser fee equal to 0.50% of the Fund's average daily net assets. The Adviser may voluntarily choose to waive any portion of its fee. The Adviser can modify or terminate this voluntary waiver at any time at its sole discretion.
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 a scale that ranges from 0.150% to 0.075% of the average aggregate daily net assets of all funds advised by subsidiaries of Federated Investors, Inc., subject to a $125,000 minimum per portfolio and $30,000 per each additional class.
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.
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.
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.
Certain of the Officers and Trustees of the Trust are Officers and Directors or Trustees of the above companies.
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
JOHN F. DONAHUE
Chairman
J. CHRISTOPHER DONAHUE
President
EDWARD C. GONZALES
Executive Vice President
JOHN W. MCGONIGLE
Executive Vice President and Secretary
RICHARD B. FISHER
Vice President
RICHARD J. THOMAS
Treasurer
LESLIE K. ROSS
Assistant Secretary
Mutual funds are not bank deposits or obligations, are not guaranteed by any bank, and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other government agency. Investment in mutual funds involves investment risk, including the possible loss of principal.
This report is authorized for distribution to prospective investors only when preceded or accompanied by the fund's prospectus which contains facts concerning its objective and policies, management fees, expenses and other information.
Federated
World-Class Investment Manager
Automated Treasury
Cash Reserves
Federated Investors Funds
5800 Corporate
Drive
Pittsburgh, PA
15237-7000
1-800-341-7400
www.federatedinvestors.com
Federated
Securities Corp., Distributor
Cusip 60934N690
2112509 (12/00)
Federated is a registered mark of Federated Investors, Inc. 2000 ©Federated Investors, Inc.
Federated Investors
World-Class Investment Manager
A Portfolio of Money Market Obligations Trust
October 31, 2000
NOT FDIC INSURED * MAY LOSE VALUE * NO BANK GUARANTEE
Dear Investor:
I am pleased to present the Semi-Annual Report to Shareholders for U.S. Treasury Cash Reserves, a portfolio of Money Market Obligations Trust, for the six-month period ended October 31, 2000. The report begins with a brief commentary by the fund's portfolio manager on the short-term government market, followed by a complete list of the fund's investments and its financial statements.
On behalf of investors, the fund pursues current income, a high level of liquidity, and a stable net asset value of $1.00 per share1--all through a portfolio consisting of U.S. Treasury bills and notes.
During the six-month reporting period, dividends paid to shareholders of Institutional Shares totaled $45.8 million, which amounted to $0.029 per share. Dividends paid to shareholders of Institutional Service Shares totaled $25.4 million, which amounted to $0.028 per share. Net assets reached the $2.6 billion level at the end of the reporting period.
Thank you for participating in the daily income opportunities of U.S. Treasury Cash Reserves. As always, we welcome your questions, comments or suggestions.
Sincerely,
J. Christopher Donahue
J. Christopher Donahue
President
December 15, 2000
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.
U.S. Treasury Cash Reserves, which is rated AAAm by Standard & Poor's Corporation1 and Aaa by Moody's Investors Service,2 is invested only in direct issues of the U.S. Treasury. The fund was created to meet the needs of tax-sensitive investors in states that treat income from repurchase agreements as taxable. Therefore, the fund's acceptable investments do not include repurchase agreements.
The Federal Reserve Board (the "Fed") tightened monetary policy once over the reporting period ended October 31, 2000. Early in the reporting period, on May 16, 2000, the Fed raised the Federal Funds Target Rate to 6.5% from 6.0%, citing concern that the "disparity in the growth of demand and potential supply" could result in inflationary pressures. This was the sixth tightening step taken by the Fed since June 1999, bringing the total increase in the Federal Funds Target Rate since that time to 175 basis points.
The May tightening could prove to be the last one in this tightening cycle, as market sentiment--confronted with signs of moderating economic growth--shifted at this point. The diminishing "wealth effect" from declines in equity markets and higher fuel prices restrained consumer demand. Although second-quarter gross domestic product (GDP) came in at a still-robust 5.6%, there was evidence of inventory buildup. The advance estimate of third-quarter GDP growth came in at 2.7%, and revealed softer levels of investment and final demand as well as continued inventory accumulation. In spite of a rise in energy prices over the reporting period, core inflation remained contained at both the producer and consumer levels. All of this led market participants to conclude that the Fed was near or at the end of its tightening cycle, and that it had perhaps engineered a soft economic landing. The Fed remained on hold for the rest of the reporting period, content to sit back and let the effects of its rate hikes filter through the economy.
1 This rating is obtained after Standard & Poor's evaluates a number of factors, including credit quality, market price exposure and management. Standard & Poor's monitors the portfolio weekly for developments that could cause changes in the ratings. Ratings are subject to change and do not remove market risks.
2 Money market funds and bond funds rated Aaa by Moody's Investors Service are judged to be of an investment quality similar to Aaa-rated fixed income obligations; that is, they are judged to be of the best quality. Ratings are subject to change and do not remove market risks.
Movements in short-term interest rates reflected economic developments and the shifting expectations regarding the Fed over the reporting period. The U.S. Treasury bill market also periodically reflected a flight to quality from investors seeking a haven from turmoil in the equity markets as well as a technical influence from changes in U.S. Treasury bill issuance. The yield on the three-month U.S. Treasury bill traded at 5.8% at the beginning of May, but fell to 5.6% by the end of the month--in spite of the tightening move by the Fed--as the Nasdaq Composite Index lost almost 15% of its value over this period. The yield then rose fairly steadily to close the reporting period at nearly 6.4%, boosted by an increase in the size of the U.S. Treasury's weekly bill auction from $8.5 to $11 billion.
The fund's average maturity generally moved between 35 to 45 days over the reporting period, moving within that range according to relative value opportunities in the marketplace. With the increase in regular U.S. Treasury bill supply, purchases were slightly more weighted toward the U.S. Treasury bill market than toward the U.S. Treasury note market. On October 31, 2000, 49% of the portfolio was invested in U.S. Treasury bills.
October 31, 2000 (unaudited)
|
Principal |
|
|
|
Value |
||
|
|
|
|
U.S. TREASURY OBLIGATIONS--99.4% |
|
|
|
|
|
|
|
U.S. Treasury Bills--49.2%1 |
|
|
|
|
$ |
282,000,000 |
|
5.895% - 6.090%, 11/16/2000 |
|
$ |
281,294,494 |
|
|
226,000,000 |
|
5.940% - 6.130%, 11/9/2000 |
|
|
225,693,733 |
|
|
90,000,000 |
|
5.950%, 2/8/2001 |
|
|
88,527,375 |
|
|
216,500,000 |
|
5.970% - 6.090%, 1/4/2001 |
|
|
214,186,733 |
|
|
27,000,000 |
|
6.030% - 6.130%, 11/30/2000 |
|
|
26,866,834 |
|
|
30,000,000 |
|
6.090%, 2/15/2001 |
|
|
29,462,050 |
|
|
407,000,000 |
|
6.379% - 6.380%, 12/21/2000 |
|
|
403,393,933 |
|
|
||||||
|
|
|
|
TOTAL |
|
|
1,269,425,152 |
|
|
||||||
|
|
|
|
U.S. Treasury Notes--50.2% |
|
|
|
|
|
90,000,000 |
|
4.500%, 1/31/2001 |
|
|
89,576,963 |
|
|
525,000,000 |
|
4.625% - 5.625%, 11/30/2000 |
|
|
524,365,545 |
|
|
200,000,000 |
|
5.375% - 7.750%, 2/15/2001 |
|
|
199,848,549 |
|
|
483,000,000 |
|
5.750% - 8.500%, 11/15/2000 |
|
|
483,072,572 |
|
|
||||||
|
|
|
|
TOTAL |
|
|
1,296,863,629 |
|
|
||||||
|
|
|
|
TOTAL INVESTMENTS (AT AMORTIZED COST)2 |
|
$ |
2,566,288,781 |
|
|
||||||
1 Each issue shows the rate of discount at the time of purchase.
2 Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets ($2,581,537,885) at October 31, 2000.
See Notes which are an integral part of the Financial Statements
October 31, 2000 (unaudited)
|
Assets: |
|
|
|
|
|
|
|
Total investments in securities, at amortized cost and value |
|
|
|
|
$ |
2,566,288,781 |
|
Cash |
|
|
|
|
|
201,358 |
|
Income receivable |
|
|
|
|
|
29,450,735 |
|
Receivable for investments sold |
|
|
|
|
|
401,840,963 |
|
|
||||||
|
TOTAL ASSETS |
|
|
|
|
|
2,997,781,837 |
|
|
||||||
|
Liabilities: |
|
|
|
|
|
|
|
Payable for investments purchased |
|
$ |
403,393,932 |
|
|
|
|
Income distribution payable |
|
|
12,590,972 |
|
|
|
|
Accrued expenses |
|
|
259,048 |
|
|
|
|
|
||||||
|
TOTAL LIABILITIES |
|
|
|
|
|
416,243,952 |
|
|
||||||
|
Net assets for 2,581,537,885 shares outstanding |
|
|
|
|
$ |
2,581,537,885 |
|
|
||||||
|
Net Asset Value, Offering Price and Redemption Proceeds Per Share |
|
|
|
|
|
|
|
Institutional Shares: |
|
|
|
|
|
|
|
|
||||||
|
$1,621,791,072 ÷ 1,621,791,072 shares outstanding |
|
|
|
|
|
$1.00 |
|
|
||||||
|
Institutional Service Shares: |
|
|
|
|
|
|
|
$959,746,813 ÷ 959,746,813 shares outstanding |
|
|
|
|
|
$1.00 |
|
|
||||||
See Notes which are an integral part of the Financial Statements
Six Months Ended October 31, 2000 (unaudited)
|
Investment Income: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest |
|
|
|
|
|
|
|
|
|
$ |
74,983,154 |
|
|
|||||||||||
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Investment adviser fee |
|
|
|
|
|
$ |
4,994,896 |
|
|
|
|
|
Administrative personnel and services fee |
|
|
|
|
|
|
940,289 |
|
|
|
|
|
Custodian fees |
|
|
|
|
|
|
55,181 |
|
|
|
|
|
Transfer and dividend disbursing agent fees and expenses |
|
|
|
|
|
|
20,622 |
|
|
|
|
|
Directors'/Trustees' fees |
|
|
|
|
|
|
10,478 |
|
|
|
|
|
Auditing fees |
|
|
|
|
|
|
6,244 |
|
|
|
|
|
Legal fees |
|
|
|
|
|
|
5,483 |
|
|
|
|
|
Portfolio accounting fees |
|
|
|
|
|
|
80,893 |
|
|
|
|
|
Shareholder services fee--Institutional Shares |
|
|
|
|
|
|
1,975,314 |
|
|
|
|
|
Shareholder services fee--Institutional Service Shares |
|
|
|
|
|
|
1,146,494 |
|
|
|
|
|
Share registration costs |
|
|
|
|
|
|
13,736 |
|
|
|
|
|
Printing and postage |
|
|
|
|
|
|
11,239 |
|
|
|
|
|
Insurance premiums |
|
|
|
|
|
|
2,985 |
|
|
|
|
|
Miscellaneous |
|
|
|
|
|
|
10,478 |
|
|
|
|
|
|
|||||||||||
|
TOTAL EXPENSES |
|
|
|
|
|
|
9,274,332 |
|
|
|
|
|
|
|||||||||||
|
Waivers: |
|
|
|
|
|
|
|
|
|
|
|
|
Waiver of investment adviser fee |
|
$ |
(3,600,131 |
) |
|
|
|
|
|
|
|
|
Waiver of shareholder services fee--Institutional Shares |
|
|
(1,975,314 |
) |
|
|
|
|
|
|
|
|
|
|||||||||||
|
TOTAL WAIVERS |
|
|
|
|
|
|
(5,575,445 |
) |
|
|
|
|
|
|||||||||||
|
Net expenses |
|
|
|
|
|
|
|
|
|
|
3,698,887 |
|
|
|||||||||||
|
Net investment income |
|
|
|
|
|
|
|
|
|
$ |
71,284,267 |
|
|
|||||||||||
See Notes which are an integral part of the Financial Statements
|
|
|
|
Six Months |
|
|
|
Year Ended |
|
|
Increase (Decrease) in Net Assets |
|
|
|
|
|
|
|
|
|
Operations: |
|
|
|
|
|
|
|
|
|
Net investment income |
|
$ |
71,284,267 |
|
|
$ |
122,902,828 |
|
|
|
||||||||
|
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
Distributions from net investment income |
|
|
|
|
|
|
|
|
|
Institutional Shares |
|
|
(45,837,506 |
) |
|
|
(78,679,483 |
) |
|
Institutional Service Shares |
|
|
(25,446,761 |
) |
|
|
(44,223,345 |
) |
|
|
||||||||
|
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS |
|
|
(71,284,267 |
) |
|
|
(122,902,828 |
) |
|
|
||||||||
|
Share Transactions: |
|
|
|
|
|
|
|
|
|
Proceeds from sale of shares |
|
|
4,090,454,777 |
|
|
|
8,501,856,850 |
|
|
Net asset value of shares issued to shareholders in payment of distributions declared |
|
|
9,669,975 |
|
|
|
16,660,296 |
|
|
Cost of shares redeemed |
|
|
(4,004,341,986 |
) |
|
|
(8,603,664,969 |
) |
|
|
||||||||
|
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS |
|
|
95,782,766 |
|
|
|
(85,147,823 |
) |
|
|
||||||||
|
Change in net assets |
|
|
95,782,766 |
|
|
|
(85,147,823 |
) |
|
|
||||||||
|
Net Assets: |
|
|
|
|
|
|
|
|
|
Beginning of period |
|
|
2,485,755,119 |
|
|
|
2,570,902,942 |
|
|
|
||||||||
|
End of period |
|
$ |
2,581,537,885 |
|
|
$ |
2,485,755,119 |
|
|
|
||||||||
See Notes which are an integral part of the Financial Statements
(For a Share Outstanding Throughout Each Period)
|
|
|
Six Months |
|
|
Year Ended April 30, |
|||||||||||||
|
|
|
10/31/2000 |
|
|
2000 |
|
|
1999 |
|
|
1998 |
|
|
1997 |
|
|
1996 |
|
|
Net Asset Value, Beginning of Period |
|
$ 1.00 |
|
|
$ 1.00 |
|
|
$ 1.00 |
|
|
$ 1.00 |
|
|
$ 1.00 |
|
|
$ 1.00 |
|
|
Income From Investment Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
0.03 |
|
|
0.05 |
|
|
0.05 |
|
|
0.05 |
|
|
0.05 |
|
|
0.05 |
|
|
Less Distributions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions from net investment income |
|
(0.03 |
) |
|
(0.05 |
) |
|
(0.05 |
) |
|
(0.05 |
) |
|
(0.05 |
) |
|
(0.05 |
) |
|
|
||||||||||||||||||
|
Net Asset Value, End of Period |
|
$ 1.00 |
|
|
$ 1.00 |
|
|
$ 1.00 |
|
|
$ 1.00 |
|
|
$ 1.00 |
|
|
$ 1.00 |
|
|
|
||||||||||||||||||
|
Total Return1 |
|
2.96 |
% |
|
4.96 |
% |
|
4.79 |
% |
|
5.23 |
% |
|
5.10 |
% |
|
5.43 |
% |
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios to Average Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Expenses |
|
0.20 |
%2 |
|
0.20 |
% |
|
0.20 |
% |
|
0.20 |
% |
|
0.20 |
% |
|
0.20 |
% |
|
|
||||||||||||||||||
|
Net investment income |
|
5.80 |
%2 |
|
4.84 |
% |
|
4.66 |
% |
|
5.11 |
% |
|
4.99 |
% |
|
5.29 |
% |
|
|
||||||||||||||||||
|
Expense waiver/reimbursement3 |
|
0.54 |
%2 |
|
0.55 |
% |
|
0.55 |
% |
|
0.56 |
% |
|
0.57 |
% |
|
0.59 |
% |
|
|
||||||||||||||||||
|
Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Net assets, end of period (000 omitted) |
|
$1,621,791 |
|
$1,500,782 |
|
$1,645,762 |
|
$1,256,710 |
|
$1,131,071 |
|
$937,662 |
|
|||||
|
|
||||||||||||||||||
1 Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable.
2 Computed on an annualized basis.
3 This voluntary expense decrease is reflected in both the expense and the net investment income ratios shown above.
See Notes which are an integral part of the Financial Statements
(For a Share Outstanding Throughout Each Period)
|
|
|
Six Months |
|
|
Year Ended April 30, |
|||||||||||||
|
|
|
10/31/2000 |
|
|
2000 |
|
|
1999 |
|
|
1998 |
|
|
1997 |
|
|
1996 |
|
|
Net Asset Value, Beginning of Period |
|
$ 1.00 |
|
|
$ 1.00 |
|
|
$ 1.00 |
|
|
$ 1.00 |
|
|
$ 1.00 |
|
|
$ 1.00 |
|
|
Income from Investment Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
0.03 |
|
|
0.05 |
|
|
0.04 |
|
|
0.05 |
|
|
0.05 |
|
|
0.05 |
|
|
Less Distributions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions from net investment income |
|
(0.03 |
) |
|
(0.05 |
) |
|
(0.04 |
) |
|
(0.05 |
) |
|
(0.05 |
) |
|
(0.05 |
) |
|
|
||||||||||||||||||
|
Net Asset Value, End of Period |
|
$ 1.00 |
|
|
$ 1.00 |
|
|
$ 1.00 |
|
|
$ 1.00 |
|
|
$ 1.00 |
|
|
$ 1.00 |
|
|
|
||||||||||||||||||
|
Total Return1 |
|
2.83 |
% |
|
4.70 |
% |
|
4.53 |
% |
|
4.97 |
% |
|
4.84 |
% |
|
5.17 |
% |
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios to Average Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Expenses |
|
0.45 |
%2 |
|
0.45 |
% |
|
0.45 |
% |
|
0.45 |
% |
|
0.45 |
% |
|
0.45 |
% |
|
|
||||||||||||||||||
|
Net investment income |
|
5.55 |
%2 |
|
4.61 |
% |
|
4.41 |
% |
|
4.87 |
% |
|
4.73 |
% |
|
4.97 |
% |
|
|
||||||||||||||||||
|
Expense waiver/reimbursement3 |
|
0.29 |
%2 |
|
0.30 |
% |
|
0.30 |
% |
|
0.31 |
% |
|
0.32 |
% |
|
0.34 |
% |
|
|
||||||||||||||||||
|
Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Net assets, end of period (000 omitted) |
|
$959,747 |
|
$984,973 |
|
$925,141 |
|
$671,521 |
|
$446,344 |
|
$227,099 |
|
|||||
|
|
||||||||||||||||||
1 Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable.
2 Computed on an annualized basis.
3 This voluntary expense decrease is reflected in both the expense and the net investment income ratios shown above.
See Notes which are an integral part of the Financial Statements
October 31, 2000 (unaudited)
Money Market Obligations Trust (the "Trust") is registered under the Investment Company Act of 1940, as amended (the "Act") as an open-end, management investment company. The Trust consists of 40 portfolios. The financial statements included herein are only those of U.S. Treasury Cash Reserves (the "Fund"). The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held. The investment objective of the Fund is current income consistent with stability of principal and liquidity. The Fund offers two classes of shares: Institutional Shares and Institutional Service Shares.
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.
The Fund uses the amortized cost method to value its portfolio securities in accordance with Rule 2a-7 under the Act.
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"). Dividend income and distributions to shareholders are recorded on the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at fair value. The Fund offers multiple classes of shares, which differ in their respective distribution and service fees. All shareholders bear the common expenses of the Fund based on average daily net assets of each class, without distinction between share classes. Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses.
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.
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. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.
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.
Investment transactions are accounted for on a trade-date basis.
The Declaration of Trust permits the Board of Trustees (the "Trustees") to issue an unlimited number of full and fractional shares of beneficial interest (without par value) for each class of shares.
Transactions in shares were as follows:
|
|
|
Six Months |
|
|
Year Ended |
|
|
Institutional Shares: |
|
|
|
|
|
|
|
Shares sold |
|
2,380,590,094 |
|
|
5,071,346,554 |
|
|
Shares issued to shareholders in payment of distributions declared |
|
2,573,416 |
|
|
4,642,491 |
|
|
Shares redeemed |
|
(2,262,154,701 |
) |
|
(5,220,969,005 |
) |
|
|
||||||
|
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS |
|
121,008,809 |
|
|
(144,979,960 |
) |
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
Six Months |
|
|
Year Ended |
|
|
Institutional Service Shares: |
|
|
|
|
|
|
|
Shares sold |
|
1,709,864,683 |
|
|
3,430,510,296 |
|
|
Shares issued to shareholders in payment of distributions declared |
|
7,096,559 |
|
|
12,017,805 |
|
|
Shares redeemed |
|
(1,742,187,285 |
) |
|
(3,382,695,964 |
) |
|
|
||||||
|
NET CHANGE RESULTING FROM INSTITUTIONAL SERVICE SHARE TRANSACTIONS |
|
(25,226,043 |
) |
|
59,832,137 |
|
|
|
||||||
|
NET CHANGE RESULTING FROM SHARE TRANSACTIONS |
|
95,782,766 |
|
|
(85,147,823 |
) |
|
|
||||||
At October 31, 2000, capital paid-in aggregated $2,581,537,885.
Federated Investment Management Company, the Fund's investment adviser (the "Adviser"), receives for its services an annual investment adviser 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.
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 a scale that ranges from 0.15% to 0.075% of the average aggregate daily net assets of all funds advised by subsidiaries of Federated Investors, Inc., subject to a $125,000 minimum per portfolio and $30,000 per each additional class.
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 Institutional Service Shares. The Plan provides that the Fund may incur distribution expenses up to 0.25% of the average daily net assets of Institutional Service Shares annually, to compensate FSC. The distributor may voluntarily choose to waive any portion of its fee. The distributor can modify or terminate this voluntary waiver at any time at its sole discretion. For the six-month period ended October 31, 2000, the Institutional Service Shares did not incur a distribution expense.
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. For the six-month period ended October 31, 2000, FSSC waived its fee for the Institutional Shares.
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.
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.
Certain of the Officers and Trustees of the Trust are Officers and Directors or Trustees of the above companies.
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
JOHN F. DONAHUE
Chairman
J. CHRISTOPHER DONAHUE
President
EDWARD C. GONZALES
Executive Vice President
JOHN W. MCGONIGLE
Executive Vice President and Secretary
RICHARD B. FISHER
Vice President
RICHARD J. THOMAS
Treasurer
LESLIE K. ROSS
Assistant Secretary
Mutual funds are not bank deposits or obligations, are not guaranteed by any bank, and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other government agency. Investment in mutual funds involves investment risk, including the possible loss of principal.
This report is authorized for distribution to prospective investors only when preceded or accompanied by the fund's prospectuses, which contain facts concerning its objective and policies, management fees, expenses and other information.
Federated
World-Class Investment Manager
U.S. Treasury Cash
Reserves
Federated Investors Funds
5800 Corporate
Drive
Pittsburgh, PA
15237-7000
1-800-341-7400
www.federatedinvestors.com
Federated
Securities Corp., Distributor
Cusip 60934N682
Cusip 60934N674
2112510 (12/00)
Federated is a registered mark of Federated Investors, Inc. 2000 ©Federated Investors, Inc.
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