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Previous: SMITH BARNEY DISCIPLINED SMALL CAP FUND INC, NSAR-A, EX-27, 2000-08-29 |
Next: GUARDIAN SEPARATE ACCOUNT D, N-30D, 2000-08-29 |
SEMI-ANNUAL REPORT
Dear Shareholder:
We are pleased to present the Semi-Annual Report for Money Market Management, a portfolio of Money Market Obligations Trust, which covers the six-month reporting period from January 1, 2000 through June 30, 2000. The report begins with commentary by the fund's portfolio manager and follows with a complete list of the fund's holdings and its financial statements.
This high quality money market fund continues to pursue daily income while bringing you the additional advantages of daily liquidity and stability of principal.1
During the six-month reporting period, the fund paid shareholders dividends totaling $0.025 per share. On June 30, 2000, the fund's $87 million portfolio was invested in high quality money market securities that included high-quality commercial paper (34.4%), variable notes (30.4%), certificates of deposit (12.3%), short-term notes (9.7%), loan participation notes (5.1%), asset-backed securities (4.1%), a repurchase agreement (2.8%) and a corporate bond (1.1%).
Thank you for choosing Money Market Management as a convenient, liquid daily cash investment. We will continue to keep you up to date on your investment, and welcome your comments and suggestions.
Sincerely,
J. Christopher Donahue
J. Christopher Donahue
President
August 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.
Money Market Management invests in money market instruments maturing in 397 days 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 one of the two highest short-term rating categories 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.
During the past six months we have continued to see strong economic growth in the United States. Thirty-year lows in the unemployment number, strong retail sales, increased home buying and strong productivity numbers led the Federal Reserve Board (the "Fed") to increase the federal funds target rate by 100 basis points. The Fed increased in 25 basis point increments until May 2000, when they raised rates 50 basis points to 6.50%. During the past month we began to see signs of a moderate economic slowdown. Although we still think there is a risk of inflationary pressure, we think the Fed will remain on hold in the short term.
The thirty-day commercial paper yield started the reporting period at 5.62% on January 3, 2000, and then rose as high as 6.58% on June 30, 2000. The commercial paper rates increased over this time frame in anticipation of the federal funds target rate increases.
The target average maturity range for the fund 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 fund, there is continued emphasis placed on positioning 30-35% of the fund's core net assets in variable rate demand notes and accomplishing a modest barbell structure.
During the six-month reporting period ended June 30, 2000, the net assets of the fund increased from $76.9 to $87.1 million while the 7-day net yield increased from 4.59% to 5.57%.1 The effective average maturity of the fund on June 30, 2000 was 61 days.
1 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.
A Special Meeting for the shareholders of Money Market Management was held on November 30, 1999. On September 21, 1999, the record date for shareholders voting at the meeting, there were 78,873,312 total outstanding shares. The following items were considered by shareholders and the results of their voting were as follows:
Election of Directors.
|
Names |
|
For |
|
Withheld |
|
John F. Cunningham |
|
48,904,275 |
|
1,398,805 |
|
Charles F. Mansfield, Jr. |
|
48,904,787 |
|
1,398,293 |
|
John S. Walsh |
|
48,893,775 |
|
1,409,305 |
To approve an amendment to, and a restatement of, the Fund's Articles of Incorporation to permit the Board to liquidate assets of the Fund, its series or classes, and distribute the proceeds of such assets to holders of such shares representing such interests, without seeking shareholder approval to the extent permitted under Maryland law.
|
For |
|
Against |
|
Abstain |
|
Broker |
|
41,914,728 |
|
2,858,617 |
|
2,062,426 |
|
3,467,309 |
To approve a proposed Agreement and Plan of Reorganization between the Fund and Money Market Obligations Trust, on behalf of its series, Money Market Management (the "New Fund"), whereby the New Fund would acquire all of the assets of the Fund in exchange for shares of the New Fund to be distributed pro rata by the Fund to its shareholders in complete liquidation and termination of the Fund.
|
For |
|
Against |
|
Abstain |
|
Broker |
|
42,598,173 |
|
2,021,292 |
|
2,216,306 |
|
3,467,309 |
JUNE 30, 2000 (UNAUDITED)
|
Principal |
|
|
|
|
Value |
|
|
|
|
|
ASSET-BACKED SECURITIES--4.1% |
|
|
|
|
|
|
|
Finance - Automotive--0.7% |
|
|
|
|
$ |
660,403 |
|
Ford Credit Auto Owner Trust 2000-A, Class A2, 6.217%, 12/15/2000 |
|
$ |
660,403 |
|
|
||||||
|
|
|
|
Finance - Equipment--3.4% |
|
|
|
|
|
1,000,000 |
|
CIT Equipment Collateral 2000-1, Class A2A, 6.641%, 3/20/2001 |
|
|
1,000,000 |
|
|
43,680 |
|
Copelco Capital Funding LLC 1999-B, Class A-1, 5.937%, 10/18/2000 |
|
|
43,680 |
|
|
894,447 |
|
Copelco Capital Receivables LLC Series 2000-A, Class A-1, 6.507%, 5/14/2001 |
|
|
894,447 |
|
|
1,000,000 |
|
Copelco Capital Receivables LLC Series 2000-A, Class A2A, 6.130%, 3/19/2001 |
|
|
1,000,000 |
|
|
||||||
|
|
|
|
TOTAL |
|
|
2,938,127 |
|
|
||||||
|
|
|
|
TOTAL ASSET-BACKED SECURITIES |
|
|
3,598,530 |
|
|
||||||
|
|
|
|
CERTIFICATES OF DEPOSIT--12.3% |
|
|
|
|
|
|
|
Banking--12.3% |
|
|
|
|
|
1,300,000 |
|
Bank of Nova Scotia, Toronto, 6.880%, 4/3/2001 |
|
|
1,299,721 |
|
|
500,000 |
|
Credit Agricole Indosuez, 6.870%, 3/28/2001 |
|
|
499,895 |
|
|
4,000,000 |
|
Deutsche Bank AG, 6.580% - 6.700%, 7/13/2000 - 2/5/2001 |
|
|
3,999,715 |
|
|
1,000,000 |
|
Royal Bank of Canada, Montreal, 6.460%, 10/23/2000 |
|
|
1,000,031 |
|
|
2,700,000 |
|
Svenska Handelsbanken, Stockholm, 6.765% - 7.120%, 3/22/2001 - 5/4/2001 |
|
|
2,699,434 |
|
|
1,200,000 |
|
UBS AG, 6.190% - 6.950%, 12/11/2000 - 5/2/2001 |
|
|
1,199,686 |
|
|
||||||
|
|
|
|
TOTAL CERTIFICATES OF DEPOSIT |
|
|
10,698,482 |
|
|
||||||
|
|
|
|
COMMERCIAL PAPER--34.4%1 |
|
|
|
|
|
|
|
Banking--10.5% |
|
|
|
|
|
800,000 |
|
Den Danske Corp., Inc., (Guaranteed by Den Danske Bank A/S), 6.630%, 12/26/2000 |
|
|
773,775 |
|
|
3,439,000 |
|
Gotham Funding Corp., 6.650%, 7/19/2000 |
|
|
3,427,565 |
|
|
4,500,000 |
|
Market Street Funding Corp., (PNC Bank, N.A. LOC), 6.560%, 7/17/2000 |
|
|
4,486,880 |
|
|
500,000 |
|
Westpac Trust Securities NZ Ltd., (Guaranteed by Westpac Banking Corp. Ltd., Sydney), 6.200%, 12/4/2000 |
|
|
486,567 |
|
|
||||||
|
|
|
|
TOTAL |
|
|
9,174,787 |
|
|
||||||
|
|
|
|
Brokerage--9.2% |
|
|
|
|
|
3,000,000 |
|
Goldman Sachs Group, Inc., 6.650%, 7/10/2000 |
|
|
2,995,087 |
|
|
5,000,000 |
|
Salomon Smith Barney Holdings, Inc., 6.600%, 7/13/2000 |
|
|
4,989,000 |
|
|
||||||
|
|
|
|
TOTAL |
|
|
7,984,087 |
|
|
||||||
|
Principal |
|
|
|
|
Value |
|
|
|
|
|
COMMERCIAL PAPER--continued1 |
|
|
|
|
|
|
|
Finance - Commercial--7.4% |
|
|
|
|
$ |
1,500,000 |
|
General Electric Capital Corp., 6.060% - 6.070%, 8/18/2000 - 8/29/2000 |
|
$ |
1,486,022 |
|
|
5,000,000 |
|
Receivables Capital Corp., 6.580%, 7/10/2000 |
|
|
4,991,775 |
|
|
||||||
|
|
|
|
TOTAL |
|
|
6,477,797 |
|
|
||||||
|
|
|
|
Insurance--7.3% |
|
|
|
|
|
2,000,000 |
|
Marsh USA Inc., 6.240%, 10/10/2000 |
|
|
1,964,987 |
|
|
4,400,000 |
|
Sheffield Receivables Corp., 6.560%, 7/12/2000 |
|
|
4,391,180 |
|
|
||||||
|
|
|
|
TOTAL |
|
|
6,356,167 |
|
|
||||||
|
|
|
|
TOTAL COMMERCIAL PAPER |
|
|
29,992,838 |
|
|
||||||
|
|
|
|
CORPORATE BOND--1.1% |
|
|
|
|
|
|
|
Finance - Commercial--1.1% |
|
|
|
|
|
1,000,000 |
|
FINOVA Capital Corp., 6.570%, 3/19/2001 |
|
|
998,032 |
|
|
||||||
|
|
|
|
LOAN PARTICIPATIONS--5.1% |
|
|
|
|
|
|
|
Automotive--1.0% |
|
|
|
|
|
900,000 |
|
Visteon Corp., 6.900%, 7/19/2000 |
|
|
900,000 |
|
|
||||||
|
|
|
|
Electrical Equipment--0.6% |
|
|
|
|
|
500,000 |
|
Mt. Vernon Phenol Plant Partnership, (General Electric Co. LOC), 6.810%, 5/17/2001 |
|
|
500,000 |
|
|
||||||
|
|
|
|
Finance - Automotive--2.3% |
|
|
|
|
|
2,000,000 |
|
General Motors Acceptance Corp., Mortgage of PA, (Guaranteed by General Motors Acceptance Corp.), 6.663%, 7/3/2000 |
|
|
1,999,260 |
|
|
||||||
|
|
|
|
Finance - Equipment--1.2% |
|
|
|
|
|
1,000,000 |
|
Comdisco, Inc., 6.900%, 7/7/2000 |
|
|
1,000,000 |
|
|
||||||
|
|
|
|
TOTAL LOAN PARTICIPATIONS |
|
|
4,399,260 |
|
|
||||||
|
|
|
|
NOTES - VARIABLE--30.4%2 |
|
|
|
|
|
|
|
Banking--16.7% |
|
|
|
|
|
1,970,000 |
|
4 C's LLC, Series 1998, (KeyBank, N.A. LOC), 6.850%, 7/6/2000 |
|
|
1,970,000 |
|
|
3,000,000 |
|
American Health Care Centers, Series 1998, (FirstMerit Bank, N.A. LOC), 6.840%, 7/6/2000 |
|
|
3,000,000 |
|
|
1,000,000 |
|
Bond Holding LP, (SouthTrust Bank of Alabama, Birmingham LOC), 6.750%, 7/7/2000 |
|
|
1,000,000 |
|
|
1,000,000 |
|
Comerica Bank, 6.630%, 7/10/2000 |
|
|
999,789 |
|
|
2,000,000 |
|
Liquid Asset Backed Securities Trust, Series 1996-3, Sr. Notes, (Westdeutsche Landesbank Girozentrale Swap Agreement), 6.671%, 7/14/2000 |
|
|
2,000,000 |
|
|
261,314 |
|
Liquid Asset Backed Securities Trust, Series 1997-3, Sr. Notes, (AMBAC INS), 6.218%, 9/27/2000 |
|
|
261,314 |
|
|
875,000 |
|
North Center Properties, (Huntington National Bank, Columbus, OH LOC), 6.790%, 7/6/2000 |
|
|
875,000 |
|
Principal |
|
|
|
|
Value |
|
|
|
|
|
NOTES - VARIABLE--continued2 |
|
|
|
|
|
|
|
Banking--continued |
|
|
|
|
$ |
500,000 |
|
SMM Trust, Series 2000-B Class A-1, (Morgan Guaranty Trust Co., New York Swap Agreement), 6.661%, 7/13/2000 |
|
$ |
500,000 |
|
|
2,000,000 |
|
Sandridge Food Corp., (Bank One, Ohio, N.A. LOC), 6.750%, 7/6/2000 |
|
|
2,000,000 |
|
|
1,900,000 |
|
Westdeutsche Landesbank Girozentrale, 6.569%, 7/17/2000 |
|
|
1,899,199 |
|
|
||||||
|
|
|
|
TOTAL |
|
|
14,505,302 |
|
|
||||||
|
|
|
|
Brokerage--3.7% |
|
|
|
|
|
1,600,000 |
|
Merrill Lynch & Co., Inc., 6.595%, 7/12/2000 |
|
|
1,599,774 |
|
|
1,600,000 |
|
Morgan Stanley, Dean Witter & Co., 6.930%, 7/3/2000 |
|
|
1,600,000 |
|
|
||||||
|
|
|
|
TOTAL |
|
|
3,199,774 |
|
|
||||||
|
|
|
|
Finance - Commercial--2.3% |
|
|
|
|
|
2,000,000 |
|
Sigma Finance, Inc., (Guaranteed by Sigma Finance Corp.), 6.834% - 7.010%, 7/28/2000 |
|
|
2,000,000 |
|
|
||||||
|
|
|
|
Finance - Retail--1.2% |
|
|
|
|
|
1,000,000 |
|
American Financial Services Insurance Premium Receivables Trust, Series 1994-A, 7.207%, 7/14/2000 |
|
|
1,000,000 |
|
|
||||||
|
|
|
|
Homebuilding--0.8% |
|
|
|
|
|
700,000 |
|
Centex Corp., 6.834%, 7/27/2000 |
|
|
700,000 |
|
|
||||||
|
|
|
|
Insurance--5.7% |
|
|
|
|
|
4,000,000 |
|
Anchor National Life Insurance Co., 6.370%, 7/3/2000 |
|
|
4,000,000 |
|
|
1,000,000 |
|
First Allmerica Financial Life Insurance Co., 6.648%, 8/3/2000 |
|
|
1,000,000 |
|
|
||||||
|
|
|
|
TOTAL |
|
|
5,000,000 |
|
|
||||||
|
|
|
|
TOTAL NOTES - VARIABLE |
|
|
26,405,076 |
|
|
||||||
|
|
|
|
SHORT-TERM NOTES--9.7% |
|
|
|
|
|
|
|
Banking--2.3% |
|
|
|
|
|
2,000,000 |
|
Bank One, Chicago, Illinois, N.A., 6.070% - 6.140%, 10/10/2000 |
|
|
1,999,736 |
|
|
||||||
|
|
|
|
Brokerage--1.2% |
|
|
|
|
|
1,000,000 |
|
Goldman Sachs Group, Inc., 6.650%, 7/19/2000 |
|
|
1,000,000 |
|
|
||||||
|
|
|
|
Finance - Commercial--6.2% |
|
|
|
|
|
2,900,000 |
|
Beta Finance, Inc., (Guaranteed by Beta Finance Corp.), 6.000% - 7.240%, 8/14/2000 - 6/28/2001 |
|
|
2,900,000 |
|
|
2,500,000 |
|
Sigma Finance, Inc., (Guaranteed by Sigma Finance Corp.), 6.360% - 6.943%, 10/26/2000 - 5/3/2001 |
|
|
2,500,405 |
|
|
||||||
|
|
|
|
TOTAL |
|
|
5,400,405 |
|
|
||||||
|
|
|
|
TOTAL SHORT-TERM NOTES |
|
|
8,400,141 |
|
|
||||||
|
Principal |
|
|
|
|
Value |
|
|
|
|
|
REPURCHASE AGREEMENT--2.8%3 |
|
|
|
|
$ |
2,470,000 |
|
Deutsche Bank Financial, Inc., 6.900%, dated 6/30/2000, due 7/3/2000 |
|
$ |
2,470,000 |
|
|
||||||
|
|
|
|
TOTAL INVESTMENTS (AT AMORTIZED COST)4 |
|
$ |
86,962,359 |
|
|
||||||
1 Each issue shows the rate of discount at the time of purchase.
2 Floating rate note with current rate and next reset date shown.
3 The repurchase agreement is fully collateralized by U.S. Treasury and/or government agency obligations based on market prices at the date of the portfolio. The investment in the repurchase agreement is through participation in a joint account with other Federated funds.
4 Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets ($87,085,736) at June 30, 2000.
The following acronyms are used throughout this portfolio:
|
AMBAC |
--American Municipal Bond Assurance Corporation |
|
INS |
--Insured |
|
LOC |
--Letter of Credit |
See Notes which are an integral part of the Financial Statements
JUNE 30, 2000 (UNAUDITED)
|
Assets: |
|
|
|
|
|
|
|
Total investments in securities, at amortized cost and value |
|
|
|
|
$ |
86,962,359 |
|
Cash |
|
|
|
|
|
1,337 |
|
Income receivable |
|
|
|
|
|
607,034 |
|
Receivable for shares sold |
|
|
|
|
|
2,700 |
|
|
||||||
|
TOTAL ASSETS |
|
|
|
|
|
87,573,430 |
|
|
||||||
|
Liabilities: |
|
|
|
|
|
|
|
Payable for shares redeemed |
|
$ |
46,594 |
|
|
|
|
Income distribution payable |
|
|
408,692 |
|
|
|
|
Accrued expenses |
|
|
32,408 |
|
|
|
|
|
||||||
|
TOTAL LIABILITIES |
|
|
|
|
|
487,694 |
|
|
||||||
|
Net assets for 87,085,736 shares outstanding |
|
|
|
|
$ |
87,085,736 |
|
|
||||||
|
Net Asset Value, Offering Price and Redemption Proceeds Per Share: |
|
|
|
|
|
|
|
$87,085,736 ÷ 87,085,736 shares outstanding |
|
|
|
|
|
$1.00 |
|
|
||||||
See Notes which are an integral part of the Financial Statements
SIX MONTHS ENDED JUNE 30, 2000 (UNAUDITED)
|
Investment Income: |
|
|
|
|
|
|
|
|
Interest |
|
|
|
|
|
$ |
2,737,178 |
|
|
|||||||
|
Expenses: |
|
|
|
|
|
|
|
|
Investment adviser fee |
|
$ |
220,526 |
|
|
|
|
|
Administrative personnel and services fee |
|
|
62,500 |
|
|
|
|
|
Custodian fees |
|
|
8,645 |
|
|
|
|
|
Transfer and dividend disbursing agent fees and expenses |
|
|
77,238 |
|
|
|
|
|
Directors'/Trustees' fees |
|
|
5,983 |
|
|
|
|
|
Auditing fees |
|
|
6,650 |
|
|
|
|
|
Legal fees |
|
|
4,321 |
|
|
|
|
|
Portfolio accounting fees |
|
|
23,869 |
|
|
|
|
|
Shareholder services fee |
|
|
110,263 |
|
|
|
|
|
Share registration costs |
|
|
11,560 |
|
|
|
|
|
Printing and postage |
|
|
20,177 |
|
|
|
|
|
Insurance premiums |
|
|
3,144 |
|
|
|
|
|
Taxes |
|
|
1,559 |
|
|
|
|
|
Miscellaneous |
|
|
5,642 |
|
|
|
|
|
|
|||||||
|
TOTAL EXPENSES |
|
|
562,077 |
|
|
|
|
|
|
|||||||
|
Waiver: |
|
|
|
|
|
|
|
|
Waiver of shareholder services fee |
|
|
(57,336 |
) |
|
|
|
|
|
|||||||
|
Net expenses |
|
|
|
|
|
|
504,741 |
|
|
|||||||
|
Net investment income |
|
|
|
|
|
$ |
2,232,437 |
|
|
|||||||
See Notes which are an integral part of the Financial Statements
|
|
|
Six Months |
|
|
Year Ended |
|
||
|
Increase (Decrease) in Net Assets |
|
|
|
|
|
|
|
|
|
Operations: |
|
|
|
|
|
|
|
|
|
Net investment income |
|
$ |
2,232,437 |
|
|
$ |
3,320,080 |
|
|
|
||||||||
|
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
Distributions from net investment income |
|
|
(2,232,437 |
) |
|
|
(3,320,080 |
) |
|
|
||||||||
|
Share Transactions: |
|
|
|
|
|
|
|
|
|
Proceeds from sale of shares |
|
|
136,605,724 |
|
|
|
151,126,645 |
|
|
Net asset value of shares issued to shareholders in payment of distributions declared |
|
|
1,661,499 |
|
|
|
3,085,353 |
|
|
Cost of shares redeemed |
|
|
(128,032,793 |
) |
|
|
(160,820,672 |
) |
|
|
||||||||
|
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS |
|
|
10,234,430 |
|
|
|
(6,608,674 |
) |
|
|
||||||||
|
Change in net assets |
|
|
10,234,430 |
|
|
|
(6,608,674 |
) |
|
|
||||||||
|
Net Assets: |
|
|
|
|
|
|
|
|
|
Beginning of period |
|
|
76,851,306 |
|
|
|
83,459,980 |
|
|
|
||||||||
|
End of period |
|
$ |
87,085,736 |
|
|
$ |
76,851,306 |
|
|
|
||||||||
See Notes which are an integral part of the Financial Statements
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
|
|
|
Six Months |
|
|
Year Ended December 31, |
|||||||||||||
|
|
|
2000 |
|
|
1999 |
|
|
1998 |
|
|
1997 |
|
|
1996 |
|
|
1995 |
|
|
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 |
|
|
0.05 |
|
|
0.05 |
|
|
0.05 |
|
|
0.05 |
|
|
Less Distributions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions from net investment income |
|
(0.03 |
) |
|
(0.04 |
) |
|
(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 |
|
2.53 |
% |
|
4.23 |
% |
|
4.64 |
% |
|
4.69 |
% |
|
4.56 |
% |
|
5.13 |
% |
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios to Average Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Expenses |
|
1.14 |
%2 |
|
1.12 |
% |
|
1.11 |
% |
|
1.10 |
% |
|
1.06 |
% |
|
1.08 |
% |
|
|
||||||||||||||||||
|
Net investment income |
|
5.06 |
%2 |
|
4.15 |
% |
|
4.54 |
% |
|
4.58 |
% |
|
4.46 |
% |
|
4.99 |
% |
|
|
||||||||||||||||||
|
Expense waiver/reimbursement3 |
|
0.13 |
%2 |
|
0.20 |
% |
|
0.18 |
% |
|
0.15 |
% |
|
0.13 |
% |
|
0.15 |
% |
|
|
||||||||||||||||||
|
Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Net assets, end of period (000 omitted) |
|
$87,086 |
|
$76,851 |
|
$83,460 |
|
$81,309 |
|
$87,381 |
|
$101,390 |
|
|||||
|
|
||||||||||||||||||
1 Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable.
2 Computed on an annualized basis.
3 This voluntary expense decrease is reflected in both the expense and net investment income ratios shown above.
See Notes which are an integral part of the Financial Statements
JUNE 30, 2000 (UNAUDITED)
Effective February 1, 2000, Money Market Management (the "Fund") became a portfolio of Money Market Obligations Trust (the "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 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 achieve current income consistent with stability of principal.
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.
It is the policy of the Fund to require the custodian bank to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian bank's vault, all securities held as collateral under repurchase agreement transactions. Additionally, procedures have been established by the Fund to monitor, on a daily basis, the market value of each repurchase agreement's collateral to ensure that the value of collateral at least equals the repurchase price to be paid under the repurchase agreement.
The Fund will only enter into repurchase agreements with banks and other recognized financial institutions, such as broker/dealers, which are deemed by the Fund's adviser to be creditworthy pursuant to the guidelines and/or standards reviewed or established by the Board of Trustees (the "Trustees"). Risks may arise from the potential inability of counterparties to honor the terms of the repurchase agreement. Accordingly, the Fund could receive less than the repurchase price on the sale of collateral securities. The Fund, along with other affiliated investment companies, may utilize a joint trading account for the purpose of entering into one or more repurchase agreements.
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.
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.
Restricted securities are securities that may only be resold upon registration under federal securities laws or in transactions exempt from such registration. Many restricted securities may be resold in the secondary market in transactions exempt from registration. In some cases, the restricted securities may be resold without registration upon exercise of a demand feature. Such restricted securities may be determined to be liquid under criteria established by the Trustees. The Fund will not incur any registration costs upon such resales. Restricted securities are valued at amortized cost in accordance with Rule 2a-7 under the Act.
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.
At June 30, 2000, there were 50,000,000,000 shares of $0.001 par value capital stock authorized.
Transactions in capital stock were as follows:
|
|
|
Six Months |
|
|
Year Ended |
|
|
Shares sold |
|
136,605,724 |
|
|
151,126,645 |
|
|
Shares issued to shareholders in payment of distributions declared |
|
1,661,499 |
|
|
3,085,353 |
|
|
Shares redeemed |
|
(128,032,793 |
) |
|
(160,820,672 |
) |
|
|
||||||
|
NET CHANGE RESULTING FROM SHARE TRANSACTIONS |
|
10,234,430 |
|
|
(6,608,674 |
) |
|
|
||||||
Federated Investment Management Company, the Fund's investment adviser (the "Adviser"), receives for its services an annual investment adviser fee based on the average daily net assets of the Fund as follows: 0.500% on the first $500 million, 0.475% on the next $500 million, 0.450% on the next $500 million, 0.425% on the next $500 million, and 0.400% thereafter.
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.
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 Fund are Officers and Directors or Trustees of the above companies.
Chairman
President
Executive Vice President
Executive Vice President and Secretary
Vice President
Treasurer
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
SEMI-ANNUAL REPORT
JUNE 30, 2000
Federated
Money Market Management
Federated Investors Funds
5800
Corporate Drive
Pittsburgh, PA
15237-7000
1-800-341-7400
www.federatedinvestors.com
Federated
Securities Corp., Distributor
Cusip 60934N211
8080103 (8/00)
Federated is a registered mark of Federated Investors, Inc. 2000 ©Federated Investors, Inc.
SEMI-ANNUAL REPORT
Dear Shareholder:
We are pleased to present the Semi-Annual Report to Shareholders for Federated Short-Term U.S. Government Trust, a portfolio of Money Market Obligations Trust, which covers the six-month reporting period from January 1, 2000 through June 30, 2000. The report begins with a commentary by the fund's portfolio manager and follows with a complete list of fund holdings and its financial statements.
Federated Short-Term U.S. Government Trust continues to pursue daily income while bringing you the additional advantages of daily liquidity and stability of principal, all through a portfolio of U.S. government money market securities.
On June 30, 2000, the $269.1 million portfolio was invested in short-term U.S. government obligations (36.2%) and repurchase agreements fully collateralized by U.S. Treasury or government agency obligations (64.4%).
Over the six-month reporting period, the portfolio paid dividends totaling $0.028 per share while maintaining a stable $1.00 net asset value.1
Thank you for choosing Federated Short-Term U.S. Government Trust as a daily cash investment. We welcome your comments and suggestions.
Sincerely,
J. Christopher Donahue
J. Christopher Donahue
President
August 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.
Federated Short-Term U.S. Government Trust is invested in U.S. Treasury and government agency obligations and in repurchase agreements which have these securities as collateral. The fund invests in issues of the Federal National Mortgage Association, Student Loan Marketing Association, Federal Farm Credit Bank System, Federal Home Loan Bank System, and Federal Home Loan Mortgage Corp., and may maintain a small position in U.S. Treasury obligations for liquidity purposes.
The semi-annual reporting period began with the capital markets breathing a sigh of relief as Year 2000 fears quickly subsided. Focus shifted back to the robust economy and to whether the Federal Reserve Board (the "Fed") would resume its tightening bias in an attempt to slow growth. Indeed, short-term rates rose steadily during the period and the Fed tightened monetary policy on three separate occasions. Following two consecutive Federal Open Market Committee (FOMC) meetings in February and March, the Fed raised the federal funds target rate by 25 basis points. This brought the federal funds target rate to 6.00% on March 21, 2000.
In spite of the tighter monetary policy, robust economic growth continued. Gross Domestic Product (GDP) in the fourth quarter of 1999 was 7.3% and, if there were any lingering doubts as to the strength of the domestic economy, first quarter GDP was measured at 5.4%. There were few signs of an economic slowdown. Labor markets also remained tight throughout the reporting period. For example, the average monthly non-farm payroll increase during the reporting period was $261,000 and the unemployment rate hovered around a 30-year low of 4.0%. Generally, inflation remained contained but prices still climbed faster in the first half of 2000 than they did during all of 1999. Oil prices had a roller coaster ride during the reporting period and the Consumer Price Index (CPI) followed the lead, rising as much as 0.7% in March 2000 and remaining flat in April 2000. The core CPI measure, excluding the food and energy sectors, was more steady and remained benign. This measure increased 0.2% in five of the six months of the reporting period. Nonetheless, core CPI increased at an annualized pace of 2.6% in the fist six months of 2000, compared with a 1.9% rate over the first six months of 1999.
With inflationary pressures potentially building and with scant evidence that prior rate hikes had slowed the economy, the Fed shifted to a more aggressive posture and increased rates by 50 basis points at its May 16th meeting. Following this interest rate increase, however, economic growth appeared to moderate. Stock market momentum abated and, in turn, retail sales, the housing market, and other measures of economic activity cooled. Sensing this moderation and content to let the effects of the prior rate hikes filter through the economy, the Fed left interest rates unchanged following its June 28th FOMC meeting. The federal funds target rate ended the reporting period at 6.50%.
Movements in short-term rates throughout the reporting period reflected domestic economic strength and resulting Fed expectations. For example, the yield on a one-year agency discount note began the reporting period yielding 6.08%. By the end of March, following two rate increases, the yield on the security was 6.66%. Agency paper traded flat throughout April, but as the market began to anticipate a more aggressive Fed, yields increased substantially in May and peaked at 7.26% on June 2, 2000. Signs of a moderating economy caused yields to decline in June and the one-year agency discount note ended the reporting period yielding 6.92%.
Early in the reporting period, the fund was managed within a 40 to 50-day average maturity target range. In late January, in light of our expectations for further interest rate increases, the average maturity target range was shortened to 35 to 45 days and moved within that range according to relative value opportunities available in the markets. Holdings in the fund included large positions in overnight and short-term repurchase agreements and floating rate securities. Fully 77% of the fund's net assets were invested in these instruments at period-end.
We will continue to monitor economic and market developments for signs that the recent Fed interest rate increases are taking hold. We will attempt to derive an appropriate average maturity target range for the fund and to seek a strong performance through on-going relative value analysis.
JUNE 30, 2000 (UNAUDITED)
|
Principal |
|
|
|
Value |
||
|
|
|
|
SHORT-TERM OBLIGATIONS--36.2% |
|
|
|
|
$ |
2,000,000 |
|
Federal Farm Credit Bank Note, 5.400%, 7/3/2000 |
|
$ |
1,999,983 |
|
|
7,000,000 |
1 |
Federal Farm Credit Bank Discount Notes, 5.940% - 6.290%, 1/23/2001 - 4/3/2001 |
|
|
6,747,837 |
|
|
1,000,000 |
1 |
Federal Home Loan Bank Discount Note, 5.950%, 1/12/2001 |
|
|
967,771 |
|
|
5,000,000 |
2 |
Federal Home Loan Bank Floating Rate Notes, 6.451% - 6.523%, 7/17/2000 - 9/17/2000 |
|
|
4,996,124 |
|
|
11,150,000 |
|
Federal Home Loan Bank Notes, 6.125% - 7.150%, 10/27/2000 - 6/29/2001 |
|
|
11,147,429 |
|
|
1,000,000 |
|
Federal Home Loan Mortgage Corp. Note, 7.190%, 7/5/2001 |
|
|
1,000,000 |
|
|
15,000,000 |
1 |
Federal Home Loan Mortgage Corp. Discount Notes, 5.410% - 6.520%, 8/4/2000 - 5/2/2001 |
|
|
14,716,006 |
|
|
3,000,000 |
2 |
Federal Home Loan Mortgage Corp. Floating Rate Note, 6.427%, 7/21/2000 |
|
|
2,997,515 |
|
|
5,500,000 |
|
Federal National Mortgage Association Notes, 6.445% - 7.250%, 2/23/2001 - 5/25/2001 |
|
|
5,497,313 |
|
|
18,000,000 |
1 |
Federal National Mortgage Association Discount Notes, 6.090% - 6.440%, 7/27/2000 - 9/21/2000 |
|
|
17,840,446 |
|
|
19,000,000 |
2 |
Federal National Mortgage Association Floating Rate Notes, 6.282% - 6.590%, 7/17/2000 - 9/1/2000 |
|
|
18,988,939 |
|
|
1,000,000 |
|
Student Loan Marketing Association Note, 6.045%, 11/3/2000 |
|
|
999,798 |
|
|
9,000,000 |
2 |
Student Loan Marketing Association Floating Rate Notes, 6.544% - 6.825%, 7/3/2000 - 7/4/2000 |
|
|
8,997,834 |
|
|
||||||
|
|
|
|
TOTAL SHORT-TERM OBLIGATIONS |
|
|
96,896,995 |
|
|
||||||
|
|
|
|
REPURCHASE AGREEMENTS--64.4%3 |
|
|
|
|
|
10,000,000 |
|
ABN AMRO, Inc., 6.830%, dated 6/30/2000, due 7/3/2000 |
|
|
10,000,000 |
|
|
10,000,000 |
|
Bank of America Securities LLC, 6.930%, dated 6/30/2000, due 7/3/2000 |
|
|
10,000,000 |
|
|
10,000,000 |
|
Countrywide Securities Corp., 6.900%, dated 6/30/2000, due 7/3/2000 |
|
|
10,000,000 |
|
|
10,000,000 |
|
First Union Capital Markets, 6.930%, dated 6/30/2000, due 7/3/2000 |
|
|
10,000,000 |
|
|
10,000,000 |
|
Goldman Sachs Group, LP, 6.900%, dated 6/30/2000, due 7/3/2000 |
|
|
10,000,000 |
|
|
9,000,000 |
4 |
Greenwich Capital Markets, Inc., 6.500%, dated 6/12/2000, due 7/12/2000 |
|
|
9,000,000 |
|
|
10,000,000 |
|
HSBC Securities, Inc., 6.950%, dated 6/30/2000, due 7/3/2000 |
|
|
10,000,000 |
|
|
9,000,000 |
4 |
Lehman Brothers, Inc., 6.550%, dated 6/9/2000, due 8/11/2000 |
|
|
9,000,000 |
|
Principal |
|
|
|
Value |
||
|
|
|
|
REPURCHASE AGREEMENTS--continued3 |
|
|
|
|
$ |
50,000,000 |
|
PaineWebber Group, Inc., 6.900%, dated 6/30/2000, due 7/3/2000 |
|
$ |
50,000,000 |
|
|
10,000,000 |
|
Paribas Corp., 6.920%, dated 6/30/2000, due 7/3/2000 |
|
|
10,000,000 |
|
|
10,000,000 |
|
Prudential Securities, Inc., 6.900%, dated 6/30/2000, due 7/3/2000 |
|
|
10,000,000 |
|
|
20,000,000 |
|
Salomon Brothers, Inc., 6.930%, dated 6/30/2000, due 7/3/2000 |
|
|
20,000,000 |
|
|
4,177,000 |
|
Warburg Dillon Reed LLC, 6.600%, dated 6/30/2000, due 7/3/2000 |
|
|
4,177,000 |
|
|
||||||
|
|
|
|
TOTAL REPURCHASE AGREEMENTS |
|
|
172,177,000 |
|
|
||||||
|
|
|
|
TOTAL INVESTMENTS (AT AMORTIZED COST)5 |
|
$ |
269,073,995 |
|
|
||||||
1 Each issue shows the rate of discount at the time of purchase.
2 Floating rate note with current rate and next reset date shown.
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 ($267,314,532) at June 30, 2000.
See Notes which are an integral part of the Financial Statements
JUNE 30, 2000 (UNAUDITED)
|
Assets: |
|
|
|
|
|
|
|
Investments in repurchase agreements |
|
$ |
172,177,000 |
|
|
|
|
Investments in securities |
|
|
96,896,995 |
|
|
|
|
|
||||||
|
Total investment in securities, at amortized cost and value |
|
|
|
|
$ |
269,073,995 |
|
Income receivable |
|
|
|
|
|
606,332 |
|
Receivable for investments sold |
|
|
|
|
|
3,964,333 |
|
|
||||||
|
TOTAL ASSETS |
|
|
|
|
|
273,644,660 |
|
|
||||||
|
Liabilities: |
|
|
|
|
|
|
|
Payable for investments purchased |
|
|
4,963,620 |
|
|
|
|
Income distribution payable |
|
|
1,347,557 |
|
|
|
|
Accrued expenses |
|
|
18,951 |
|
|
|
|
|
||||||
|
TOTAL LIABILITIES |
|
|
|
|
|
6,330,128 |
|
|
||||||
|
Net assets for 267,314,532 shares outstanding |
|
|
|
|
$ |
267,314,532 |
|
|
||||||
|
Net Asset Value, Offering Price and Redemption Proceeds Per Share: |
|
|
|
|
|
|
|
$267,314,532 ÷ 267,314,532 shares outstanding |
|
|
|
|
|
$1.00 |
|
|
||||||
See Notes which are an integral part of the Financial Statements
SIX MONTHS ENDED JUNE 30, 2000 (UNAUDITED)
|
Investment Income: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest |
|
|
|
|
|
|
|
|
|
$ |
8,376,756 |
|
|
|||||||||||
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Investment adviser fee |
|
|
|
|
|
$ |
555,348 |
|
|
|
|
|
Administrative personnel and services fee |
|
|
|
|
|
|
104,544 |
|
|
|
|
|
Custodian fees |
|
|
|
|
|
|
15,219 |
|
|
|
|
|
Transfer and dividend disbursing agent fees and expenses |
|
|
|
|
|
|
17,579 |
|
|
|
|
|
Directors'/Trustees' fees |
|
|
|
|
|
|
2,309 |
|
|
|
|
|
Auditing fees |
|
|
|
|
|
|
5,601 |
|
|
|
|
|
Legal fees |
|
|
|
|
|
|
6,483 |
|
|
|
|
|
Portfolio accounting fees |
|
|
|
|
|
|
33,801 |
|
|
|
|
|
Shareholder services fee |
|
|
|
|
|
|
347,093 |
|
|
|
|
|
Share registration costs |
|
|
|
|
|
|
8,026 |
|
|
|
|
|
Printing and postage |
|
|
|
|
|
|
8,397 |
|
|
|
|
|
Insurance premiums |
|
|
|
|
|
|
817 |
|
|
|
|
|
Miscellaneous |
|
|
|
|
|
|
3,492 |
|
|
|
|
|
|
|||||||||||
|
TOTAL EXPENSES |
|
|
|
|
|
|
1,108,709 |
|
|
|
|
|
|
|||||||||||
|
Waivers: |
|
|
|
|
|
|
|
|
|
|
|
|
Waiver of investment adviser fee |
|
$ |
(186,382 |
) |
|
|
|
|
|
|
|
|
Waiver of shareholder services fee |
|
|
(277,674 |
) |
|
|
|
|
|
|
|
|
|
|||||||||||
|
TOTAL WAIVERS |
|
|
|
|
|
|
(464,056 |
) |
|
|
|
|
|
|||||||||||
|
Net expenses |
|
|
|
|
|
|
|
|
|
|
644,653 |
|
|
|||||||||||
|
Net investment income |
|
|
|
|
|
|
|
|
|
$ |
7,732,103 |
|
|
|||||||||||
See Notes which are an integral part of the Financial Statements
|
|
|
Six Months |
|
|
Year Ended |
|
||
|
Increase (Decrease) in Net Assets: |
|
|
|
|
|
|
|
|
|
Operations: |
|
|
|
|
|
|
|
|
|
Net investment income |
|
$ |
7,732,103 |
|
|
$ |
15,407,687 |
|
|
|
||||||||
|
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
Distributions from net investment income |
|
|
(7,732,103 |
) |
|
|
(15,407,687 |
) |
|
|
||||||||
|
Share Transactions: |
|
|
|
|
|
|
|
|
|
Proceeds from sale of shares |
|
|
408,537,486 |
|
|
|
1,064,635,667 |
|
|
Net asset value of shares issued to shareholders in payment of distributions declared |
|
|
1,847,549 |
|
|
|
4,662,901 |
|
|
Cost of shares redeemed |
|
|
(432,193,087 |
) |
|
|
(1,130,194,910 |
) |
|
|
||||||||
|
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS |
|
|
(21,808,052 |
) |
|
|
(60,896,342 |
) |
|
|
||||||||
|
Change in net assets |
|
|
(21,808,052 |
) |
|
|
(60,896,342 |
) |
|
|
||||||||
|
Net Assets: |
|
|
|
|
|
|
|
|
|
Beginning of period |
|
|
289,122,584 |
|
|
|
350,018,926 |
|
|
|
||||||||
|
End of period |
|
$ |
267,314,532 |
|
|
$ |
289,122,584 |
|
|
|
||||||||
See Notes which are an integral part of the Financial Statements
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
|
|
|
Six Months |
|
|
Year Ended December 31, |
|
||||||||||||
|
|
|
2000 |
|
|
1999 |
|
|
1998 |
|
|
1997 |
|
|
1996 |
|
|
1995 |
|
|
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 |
|
|
0.06 |
|
|
Less Distributions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions from net investment income |
|
(0.03 |
) |
|
(0.05 |
) |
|
(0.05) |
|
|
(0.05) |
|
|
(0.05) |
|
|
(0.06) |
|
|
|
||||||||||||||||||
|
Net Asset Value, End of Period |
|
$ 1.00 |
|
|
$ 1.00 |
|
|
$ 1.00 |
|
|
$ 1.00 |
|
|
$ 1.00 |
|
|
$ 1.00 |
|
|
|
||||||||||||||||||
|
Total Return1 |
|
2.80 |
% |
|
4.77 |
% |
|
5.16 |
% |
|
5.24 |
% |
|
5.10 |
% |
|
5.72 |
% |
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios to Average Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Expenses |
|
0.46 |
%2 |
|
0.46 |
% |
|
0.46 |
% |
|
0.46 |
% |
|
0.46 |
% |
|
0.46 |
% |
|
|
||||||||||||||||||
|
Net investment income |
|
5.57 |
%2 |
|
4.64 |
% |
|
5.04 |
% |
|
5.10 |
% |
|
4.99 |
% |
|
5.57 |
% |
|
|
||||||||||||||||||
|
Expense waiver/reimbursement3 |
|
0.33 |
%2 |
|
0.34 |
% |
|
0.33 |
% |
|
0.33 |
% |
|
0.33 |
% |
|
0.32 |
% |
|
|
||||||||||||||||||
|
Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Net assets, end of period (000 omitted) |
|
$267,315 |
|
$289,123 |
|
$350,019 |
|
$489,292 |
|
$609,589 |
|
$773,851 |
|
|||||
|
|
||||||||||||||||||
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
JUNE 30, 1999 (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 Federated Short-Term U.S. Government Trust (the "Fund"). The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held. The investment objective of the Fund is high 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.
It is the policy of the Fund to require the custodian bank to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian bank's vault, all securities held as collateral under repurchase agreement transactions. Additionally, procedures have been established by the Fund to monitor, on a daily basis, the market value of each repurchase agreement's collateral to ensure that the value of collateral at least equals the repurchase price to be paid under the repurchase agreement.
The Fund will only enter into repurchase agreements with banks and other recognized financial institutions, such as broker/dealers, which are deemed by the Fund's adviser to be creditworthy pursuant to the guidelines and/or standards reviewed or established by the Board of Trustees (the "Trustees"). Risks may arise from the potential inability of counterparties to honor the terms of the repurchase agreement. Accordingly, the Fund could receive less than the repurchase price on the sale of collateral securities. The Fund, along with other affiliated investment companies, may utilize a joint trading account for the purpose of entering into one or more repurchase agreements.
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.
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 Trustees to issue an unlimited number of full and fractional shares of beneficial interest (without par value).
Transactions in shares were as follows:
|
|
|
Six Months |
|
|
Year Ended |
|
|
Shares sold |
|
408,537,486 |
|
|
1,064,635,667 |
|
|
Shares issued to shareholders in payment of distributions declared |
|
1,847,549 |
|
|
4,662,901 |
|
|
Shares redeemed |
|
(432,193,087 |
) |
|
(1,130,194,910 |
) |
|
|
||||||
|
NET CHANGE RESULTING FROM SHARE TRANSACTIONS |
|
(21,808,052 |
) |
|
(60,896,342 |
) |
|
|
||||||
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 and/or reimburse certain operating expenses of the Fund. The Adviser can modify or terminate this voluntary waiver and/or reimbursement 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.
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, though is 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.
Chairman
President
Executive Vice President
Executive Vice President and Secretary
Vice President
Treasurer
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
SEMI-ANNUAL REPORT
JUNE 30, 2000
Federated
Federated Short-Term U.S. Government Trust
Federated Investors
Funds
5800 Corporate Drive
Pittsburgh, PA
15237-7000
1-800-341-7400
www.federatedinvestors.com
Federated
Securities Corp., Distributor
Cusip 60934N765
8080106 (8/00)
Federated is a registered mark of Federated Investors, Inc. 2000 ©Federated Investors, Inc.
|
|