PRESIDENT'S MESSAGE
- --------------------------------------------------------------------------------
Dear Shareholder:
I am pleased to present the Semi-Annual Report to Shareholders of Trust for
Short-Term U.S. Government Securities, which covers the six-month period ended
May 31, 1995. The Report includes the Investment Review and Financial
Statements, which contain the Portfolio of Investments.
The Trust continues to pursue current income, which may be exempt from state and
local taxes, along with the additional advantages of liquidity and stability of
principal*--all by investing in a portfolio composed of U.S. Treasury and
government agency obligations and repurchase agreements backed by these
obligations. As of May 31, 1995, repurchase agreements made up more than 69% of
the portfolio, due to their yield advantage.
As of May 31, 1995, the Trust's net assets stood at $996 million. Dividends paid
to shareholders during the period totaled $30.1 million, or $0.03 per share.
Thank you for selecting Trust for Short-Term U.S. Government Securities as a
cash investment. We will continue to keep you up to date, and we welcome your
comments and suggestions.
Sincerely,
/s/Glen R. Johnson
Glen R. Johnson
President
July 17, 1995
* MONEY MARKET MUTUAL FUNDS SEEK TO MAINTAIN A STABLE NET ASSET VALUE OF $1.00
PER SHARE. THERE IS NO ASSURANCE THAT THEY WILL BE ABLE TO DO SO. AN
INVESTMENT IN MONEY MARKET MUTUAL FUNDS IS NEITHER INSURED NOR GUARANTEED BY
ANY BANK AND IS NOT INSURED BY THE U.S. GOVERNMENT, THE FEDERAL DEPOSIT
INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD, OR ANY OTHER GOVERNMENT
AGENCY.
1
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
Trust for Short-term U.S. Government Securities (the "Trust") is invested in
direct U.S. Treasury and U.S. government agency obligations and in repurchase
agreements which use these securities as collateral. The Trust will not invest
in agency issues which are subject to state taxation either directly or as
repurchase agreement collateral. The Trust continues to invest in issues of the
Student Loan Marketing Association, Federal Farm Credit Bank System, and Federal
Home Loan Bank System, and maintains a small U.S. Treasury position for
liquidity purposes. Recently, the Trust has been managed within an average
maturity range of 35-45 days.
The Board of Governors of the Federal Reserve System (the "Fed") continued to
tighten monetary policy over the semi-annual reporting period, raising the fed
funds target rate once on February 1, 1995, from 5.50% to 6.00%. The move was
the seventh taken by the Fed since it began to restrict monetary policy in
February 1994 in the face of strong economic growth. Economic reports since
early February, however, have pointed to a slowing in the growth of the economy,
and shortly after the end of the reporting period, July 6, 1995, the Fed eased
monetary policy by 25 basis points amid signs of restrained inflation.
Movements in short-term interest rates were mixed over the reporting period.
While the yield on the three-month Treasury bill rose modestly, from 5.70% to
5.80%, yields on the six-month and one-year Treasury bills fell rather
significantly, with the six-month bill declining from 6.20% to 5.80% and the
one-year bill from 6.80% to 5.80%. The result was a dramatic flattening in the
front end of the yield curve as expectations about the direction and magnitude
of future policy adjustments from the Fed changed.
As a yield advantage continued to exist for investments in repurchase agreements
versus direct investments in short-term U.S. Treasury and government agency
securities, a substantial percentage of the Trust's investments remained in
repurchase agreements. The Trust continued to combine attractive yields from
repurchase agreements collateralized by U.S. Treasury and government agency
securities with short-term agency floating rate notes and U.S. Treasury and
government agency securities with longer maturities of six to twelve months.
This portfolio structure continues to provide a competitive yield.
Over the reporting period, the Trust's average maturity lengthened moderately,
moving from a 30-40 day average maturity target range to a 35-45 day range. The
Trust is expected to maintain this posture in the near future, attempting to
maximize its performance through ongoing relative value analysis. However,
changing economic and market developments are continuously monitored to best
serve our clients attracted to the short-term U.S. government market.
2
TRUST FOR SHORT-TERM U.S. GOVERNMENT SECURITIES
PORTFOLIO OF INVESTMENTS
MAY 31, 1995 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT VALUE
- ---------------- ---------------------------------------------- --------------
<C> <S> <C>
SHORT-TERM GOVERNMENT OBLIGATIONS--29.3%
- -----------------------------------------------------------------
**FEDERAL FARM CREDIT BANK, DISCOUNT
NOTES--2.7%
----------------------------------------------
$ 28,000,000 5.59%-6.81%, 6/9/1995-2/23/1996 $ 27,150,724
---------------------------------------------- --------------
FEDERAL HOME LOAN BANK NOTES--1.4%
----------------------------------------------
14,200,000 6.05%-6.85%, 2/28/1996-6/5/1996 14,199,852
---------------------------------------------- --------------
**FEDERAL HOME LOAN BANK, DISCOUNT
NOTES--15.1%
----------------------------------------------
153,150,000 5.72%-6.89%, 7/17/1995-1/19/1996 149,913,213
---------------------------------------------- --------------
*FEDERAL HOME LOAN BANK, FLOATING RATE
NOTES--6.4%
----------------------------------------------
64,000,000 5.78%-6.11%, 6/1/1995-6/6/1995 63,990,009
---------------------------------------------- --------------
**STUDENT LOAN MARKETING ASSOCIATION, DISCOUNT
NOTES--0.6%
----------------------------------------------
6,000,000 6.75%, 2/21/1996 6,007,561
---------------------------------------------- --------------
*STUDENT LOAN MARKETING ASSOCIATION, FLOATING
RATE NOTE--3.1%
----------------------------------------------
31,000,000 5.79%-5.97%, 6/6/1995 31,099,674
---------------------------------------------- --------------
TOTAL SHORT-TERM GOVERNMENT OBLIGATIONS 292,361,033
---------------------------------------------- --------------
SHORT-TERM U.S. TREASURY OBLIGATIONS--2.4%
- -----------------------------------------------------------------
U.S. TREASURY BILLS--2.4%
----------------------------------------------
24,000,000 5.24%-6.50%, 6/29/1995-8/24/1995 23,740,463
---------------------------------------------- --------------
TOTAL SHORT-TERM OBLIGATIONS 316,101,496
---------------------------------------------- --------------
***REPURCHASE AGREEMENTS--69.3%
- -----------------------------------------------------------------
45,000,000 BT Securities Inc., 6.18%, dated 5/31/1995,
due 6/1/1995 45,000,000
----------------------------------------------
48,400,000 BZW Securities, Inc., 6.18%, dated 5/31/1995,
due 6/1/1995 48,400,000
----------------------------------------------
45,000,000 Bear, Stearns & Co., Inc., 6.15%, dated
5/31/1995, due 6/1/1995 45,000,000
----------------------------------------------
45,000,000 Deutsche Bank Government Securities, 6.18%,
dated 5/31/1995, due 6/1/1995 45,000,000
----------------------------------------------
40,000,000 Fuji Securities, Inc., 6.13%, dated 5/31/1995,
due 6/1/1995 40,000,000
----------------------------------------------
45,000,000 HSBC Securities, Inc., 6.18%, dated 5/31/1995,
due 6/1/1995 45,000,000
----------------------------------------------
</TABLE>
3
TRUST FOR SHORT-TERM U.S. GOVERNMENT SECURITIES
- ---------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT VALUE
- ---------------- ---------------------------------------------- --------------
<C> <S> <C>
***REPURCHASE AGREEMENTS--CONTINUED
- -----------------------------------------------------------------
U.S. TREASURY BILLS--CONTINUED
----------------------------------------------
$ 40,000,000 National Westminster USA, 6.15%, dated
5/31/1995, due 6/1/1995 $ 40,000,000
----------------------------------------------
240,000,000 PaineWebber Inc., 6.18%, dated 5/31/1995, due
6/1/1995 240,000,000
----------------------------------------------
50,000,000 S.G. Warburg & Co., Inc., 6.125%, dated
5/31/1995, due 6/1/1995 50,000,000
----------------------------------------------
45,000,000 Swiss Bank Corp., New York, 6.15%, dated
5/31/1995, due 6/1/1995 45,000,000
----------------------------------------------
27,000,000(a) Merrill Lynch, Pierce, Fenner & Smith, Inc.,
6.05%, dated 4/11/1995, due 6/23/1995 27,000,000
----------------------------------------------
20,000,000(a) Merrill Lynch, Pierce, Fenner & Smith, Inc.,
6.00%, dated 5/2/1995, due 6/30/1995 20,000,000
---------------------------------------------- --------------
TOTAL REPURCHASE AGREEMENTS 690,400,000
---------------------------------------------- --------------
TOTAL INVESTMENTS, AT AMORTIZED COST (B) $1,006,501,496
---------------------------------------------- --------------
--------------
<FN>
* Denotes variable rate obligations for which current rates and next reset
dates are shown.
** Each issue shows the rate of discount at the time of purchase.
*** Repurchase agreements are fully collateralized by U.S. government and/or
agency obligations based on market prices at the date of the portfolio. The
investments in repurchase agreements are through participation in joint
accounts with other Federated funds.
(a) 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.
(b) Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($996,122,445) at May 31, 1995.
</TABLE>
(See Notes which are an integral part of the Financial Statements)
4
TRUST FOR SHORT-TERM U.S. GOVERNMENT SECURITIES
STATEMENT OF ASSETS AND LIABILITIES
MAY 31, 1995 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- -----------------------------------------------------------------------------------------------
Investments in repurchase agreements $690,400,000
- --------------------------------------------------------------------------------
Investments in securities 316,101,496
- -------------------------------------------------------------------------------- ------------
Total investments in securities, at amortized cost and value $1,006,501,496
- -----------------------------------------------------------------------------------------------
Cash 298,018
- -----------------------------------------------------------------------------------------------
Income receivable 2,109,950
- -----------------------------------------------------------------------------------------------
Receivable for shares sold 1,945
- ----------------------------------------------------------------------------------------------- --------------
Total assets 1,008,911,409
- -----------------------------------------------------------------------------------------------
LIABILITIES:
- -----------------------------------------------------------------------------------------------
Payable for investments purchased $ 8,189,814
- --------------------------------------------------------------------------------
Income distribution payable 4,407,092
- --------------------------------------------------------------------------------
Payable for shares redeemed 54,985
- --------------------------------------------------------------------------------
Accrued expenses 137,073
- -------------------------------------------------------------------------------- ------------
Total liabilities 12,788,964
- ----------------------------------------------------------------------------------------------- --------------
NET ASSETS for 996,122,445 shares outstanding $ 996,122,445
- ----------------------------------------------------------------------------------------------- --------------
--------------
NET ASSET VALUE, Offering Price and Redemption Proceeds Per Share:
($996,122,445/996,122,445 shares outstanding) $ 1.00
- ----------------------------------------------------------------------------------------------- --------------
--------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
5
TRUST FOR SHORT-TERM U.S. GOVERNMENT SECURITIES
STATEMENT OF OPERATIONS
SIX MONTHS ENDED MAY 31, 1995 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME:
- --------------------------------------------------------------------------------------
Interest $32,626,514
- --------------------------------------------------------------------------------------
EXPENSES:
- --------------------------------------------------------------------------------------
Investment advisory fee $2,204,193
- -------------------------------------------------------------------------
Administrative personnel and services fee 417,143
- -------------------------------------------------------------------------
Custodian fees 112,252
- -------------------------------------------------------------------------
Transfer agent and dividend disbursing agent fees and
expenses 11,021
- -------------------------------------------------------------------------
Directors'/Trustees' fees 12,916
- -------------------------------------------------------------------------
Auditing fees 12,376
- -------------------------------------------------------------------------
Legal fees 46,221
- -------------------------------------------------------------------------
Portfolio accounting fees 60,615
- -------------------------------------------------------------------------
Shareholder services fee 1,377,620
- -------------------------------------------------------------------------
Share registration costs 11,648
- -------------------------------------------------------------------------
Printing and postage 9,914
- -------------------------------------------------------------------------
Insurance premiums 12,376
- -------------------------------------------------------------------------
Taxes 3,276
- -------------------------------------------------------------------------
Miscellaneous 8,008
- ------------------------------------------------------------------------- ----------
Total expenses 4,299,579
- -------------------------------------------------------------------------
Deduct--
- ------------------------------------------------------------
Waiver of investment advisory fee $ 702,667
- ------------------------------------------------------------
Waiver of shareholder services fee 1,102,096 1,804,763
- ------------------------------------------------------------ ---------- ----------
Net expenses 2,494,816
- -------------------------------------------------------------------------------------- -----------
Net investment income $30,131,698
- -------------------------------------------------------------------------------------- -----------
-----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
6
TRUST FOR SHORT-TERM U.S. GOVERNMENT SECURITIES
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
MAY 31, 1995 YEAR ENDED
(UNAUDITED) NOVEMBER 30, 1994
-------------- -----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- ---------------------------------------------------------------------------
OPERATIONS--
- ---------------------------------------------------------------------------
Net investment income $ 30,131,698 $ 52,540,144
- --------------------------------------------------------------------------- -------------- -----------------
DISTRIBUTIONS TO SHAREHOLDERS--
- ---------------------------------------------------------------------------
Distributions from net investment income (30,131,698) (52,540,144)
- --------------------------------------------------------------------------- -------------- -----------------
SHARE TRANSACTIONS--
- ---------------------------------------------------------------------------
Proceeds from sale of Shares 2,917,543,678 7,553,555,938
- ---------------------------------------------------------------------------
Net asset value of Shares issued to shareholders in payment of
distributions declared 3,409,223 5,452,034
- ---------------------------------------------------------------------------
Cost of Shares redeemed (3,109,099,522) (8,105,140,603)
- --------------------------------------------------------------------------- -------------- -----------------
Change in net assets resulting from Share transactions (188,146,621) (546,132,631)
- --------------------------------------------------------------------------- -------------- -----------------
Change in net assets (188,146,621) (546,132,631)
- ---------------------------------------------------------------------------
NET ASSETS:
- ---------------------------------------------------------------------------
Beginning of period 1,184,269,066 1,730,401,697
- --------------------------------------------------------------------------- -------------- -----------------
End of period $ 996,122,445 $ 1,184,269,066
- --------------------------------------------------------------------------- -------------- -----------------
-------------- -----------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
7
TRUST FOR SHORT-TERM U.S. GOVERNMENT SECURITIES
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED MAY 31, YEAR ENDED NOVEMBER 30,
1995 ----------------------------------------------------------------------------------
(UNAUDITED) 1994 1993 1992 1991 1990 1989
- --------------------------- -------------- ------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING
OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ---------------------------
INCOME FROM INVESTMENT
OPERATIONS
- ---------------------------
Net investment income 0.03 0.04 0.03 0.04 0.06 0.08 0.09
- ---------------------------
LESS DISTRIBUTIONS
- ---------------------------
Distributions from net
investment income (0.03) (0.04) (0.03) (0.04) (0.06) (0.08) (0.09)
- --------------------------- ------ ------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF
PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- --------------------------- ------ ------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------ ------
TOTAL RETURN (a) 2.76% 3.70% 2.87% 3.72% 6.10% 8.08% 9.01%
- ---------------------------
RATIOS TO AVERAGE NET
ASSETS
- ---------------------------
Expenses 0.45%(b) 0.45% 0.45% 0.45% 0.46% 0.45% 0.45%
- ---------------------------
Net investment income 5.47%(b) 3.55% 2.82% 3.68% 5.99% 7.79% 8.65%
- ---------------------------
SUPPLEMENTAL DATA
- ---------------------------
Net assets, end of period
(000 omitted) $996,122 $1,184,269 $1,730,402 $2,358,748 $2,802,108 $3,603,455 $3,852,650
- ---------------------------
<CAPTION>
1988 1987 1986
- --------------------------- ------------ ------------ ------------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING
OF PERIOD $ 1.00 $ 1.00 $ 1.00
- ---------------------------
INCOME FROM INVESTMENT
OPERATIONS
- ---------------------------
Net investment income 0.07 0.06 0.06
- ---------------------------
LESS DISTRIBUTIONS
- ---------------------------
Distributions from net
investment income (0.07) (0.06) (0.06)
- --------------------------- ------ ------ ------
NET ASSET VALUE, END OF
PERIOD $ 1.00 $ 1.00 $ 1.00
- --------------------------- ------ ------ ------
------ ------ ------
TOTAL RETURN (a) 7.05% 6.09% 6.59%
- ---------------------------
RATIOS TO AVERAGE NET
ASSETS
- ---------------------------
Expenses 0.45% 0.45% 0.45%
- ---------------------------
Net investment income 6.79% 5.90% 6.39%
- ---------------------------
SUPPLEMENTAL DATA
- ---------------------------
Net assets, end of period
(000 omitted) $3,993,621 $5,148,285 $5,866,222
- ---------------------------
<FN>
(a) Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(b) Computed on an annualized basis.
</TABLE>
(See Notes which are an integral part of the Financial Statements)
8
TRUST FOR SHORT-TERM U.S. GOVERNMENT SECURITIES
NOTES TO FINANCIAL STATEMENTS
MAY 31, 1995 (UNAUDITED)
- --------------------------------------------------------------------------------
(1) ORGANIZATION
Trust For Short-Term U.S. Government Securities (the "Trust") is registered
under the Investment Company Act of 1940, as amended (the "Act"), as a
diversified, open-end, management investment company.
(2) SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
INVESTMENT VALUATIONS--The Trust's use of the amortized cost method to value
its portfolio securities is in accordance with Rule 2a-7 under the Act.
REPURCHASE AGREEMENTS--It is the policy of the Trust to require the
custodian bank to take possession, to have legally segregated in the Federal
Reserve Book Entry System, or to have segregated within the custodian bank's
vault, all securities held as collateral under repurchase agreement
investments. Additionally, procedures have been established by the Trust to
monitor, on a daily basis, the market value of each repurchase agreement's
collateral to ensure that the value of collateral at least equals the
repurchase price to be paid under the repurchase agreement transaction.
The Trust will only enter into repurchase agreements with banks and other
recognized financial institutions, such as broker/dealers, which are deemed
by the Trust's adviser to be creditworthy pursuant to the guidelines and/or
standards reviewed or established by the Board of Trustees (the "Trustees").
Risks may arise from the potential inability of counterparties to honor the
terms of the repurchase agreement. Accordingly, the Trust could receive less
than the repurchase price on the sale of collateral securities.
FEDERAL TAXES--It is the Trust's policy to comply with the provisions of the
Code applicable to regulated investment companies and to distribute to
shareholders each year substantially all of its income. Accordingly, no
provisions for federal tax are necessary.
WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS--The Trust may engage in
when-issued or delayed delivery transactions. The Trust records when-issued
securities on the trade date and maintains security positions such that
sufficient liquid assets will be available to make payment for the
securities purchased. Securities purchased on a when-issued or delayed
delivery basis are marked to market daily and begin earning interest on the
settlement date.
OTHER--Investment transactions are accounted for on the trade date.
9
TRUST FOR SHORT-TERM U.S. GOVERNMENT SECURITIES
- ---------------------------------------------------------
FORWARD COMMITMENTS--The Trust may enter into forward commitments for the
delayed delivery of securities which are based upon financial indices at a
fixed price at a future date. Risks may arise upon entering into these
contracts from the potential inability of counterparts to meet the terms of
their contracts and from unanticipated movements in security prices. At May
31, 1995, the Trust had no outstanding forward commitments.
(3) SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value).
At May 31, 1995, capital paid-in aggregated $996,122,445. Transactions in shares
were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
MAY 31, 1995 NOVEMBER 30, 1994
- ---------------------------------------------------------------------- ---------------- -----------------
<S> <C> <C>
Shares sold 2,917,543,678 7,553,555,938
- ----------------------------------------------------------------------
Shares issued to shareholders in payment of distributions declared 3,409,223 5,452,034
- ----------------------------------------------------------------------
Shares redeemed (3,109,099,522) (8,105,140,603)
- ---------------------------------------------------------------------- ---------------- -----------------
Net change resulting from share transactions (188,146,621) (546,132,631)
- ---------------------------------------------------------------------- ---------------- -----------------
---------------- -----------------
</TABLE>
(4) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE--Federated Research, the Trust's investment adviser
(the "Adviser"), receives for its services an annual investment advisory fee
equal to .40 of 1% of the Trust's average daily net assets. The Adviser will
waive, to the extent of its advisory fee, the amount, if any, by which the
Trust's aggregate annual operating expenses (excluding interest, taxes,
brokerage commissions, expenses of registering and qualifying the Trust and
its shares under federal and state laws and regulations, expenses of
withholding taxes, and extraordinary expenses) exceed .45 of 1% of average
daily net assets of the Trust.
ADMINISTRATIVE FEE--Federated Administrative Services ("FAS"), under the
Administrative Services Agreement, provides the Trust with administrative
personnel and services. The FAS fee is based on the level of average
aggregate daily net assets of all funds advised by subsidiaries of Federated
Investors for the period. The administrative fee received during the period
of the Administrative Services Agreement shall be at least $125,000 per
portfolio and $30,000 per each additional class of shares.
SHAREHOLDER SERVICES FEE--Under the terms of a Shareholder Services
Agreement with Federated Shareholder Services ("FSS"), the Trust will pay
FSS up to .25 of 1% of average daily
10
TRUST FOR SHORT-TERM U.S. GOVERNMENT SECURITIES
- ---------------------------------------------------------
net assets of the Trust for the period. This fee is to obtain certain
services for shareholders and to maintain the shareholder accounts.
TRANSFER AGENT AND DIVIDEND DISBURSING AGENT FEES AND EXPENSES--Federated
Services Company ("FServ") serves as transfer and dividend disbursing agent
for the Trust. This fee is based on the size, type, and number of accounts
and transactions made by shareholders.
PORTFOLIO ACCOUNTING FEES--FServ also maintains the Trust's accounting
records for which it receives a fee. The fee is based on the level of the
Trust's average daily net assets for the period, plus out-of-pocket
expenses.
GENERAL--Certain of the Officers and Trustees of the Trust are Officers and
Directors or Trustees of the above companies.
11
<TABLE>
<CAPTION>
TRUSTEES OFFICERS
- ---------------------------------------------------------
<S> <C>
John F. Donahue John F. Donahue
Thomas G. Bigley CHAIRMAN
John T. Conroy, Jr. Glen R. Johnson
William J. Copeland PRESIDENT
James E. Dowd J. Christopher Donahue
Lawrence D. Ellis, M.D. VICE PRESIDENT
Edward L. Flaherty, Jr. Richard B. Fisher
Peter E. Madden VICE PRESIDENT
Gregor F. Meyer Edward C. Gonzales
John E. Murray, Jr. VICE PRESIDENT AND TREASURER
Wesley W. Posvar John W. McGonigle
Marjorie P. Smuts VICE PRESIDENT AND SECRETARY
David M. Taylor
ASSISTANT TREASURER
Robert C. Rosselot
ASSISTANT SECRETARY
</TABLE>
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 possible loss
of principal. Although money market funds seek to maintain a
stable net asset value of $1.00 per share, there is no assurance
that they will be able to do so.
This report is authorized for distribution to prospective
investors only when preceded or accompanied by the trust's
prospectus which contains facts concerning its objective and
policies, management fees, expenses and other information.
12
- --------------------------------------------------------------------------------
TRUST FOR
- --------------------------------------------------------------------------------
SHORT-TERM U.S.
- --------------------------------------------------------------------------------
GOVERNMENT
- --------------------------------------------------------------------------------
SECURITIES
SEMI-ANNUAL REPORT
TO SHAREHOLDERS
MAY 31, 1995
[LOGO] FEDERATED SECURITIES CORP. ----------------------------------------
Distributor
A subsidiary of FEDERATED INVESTORS
--------------------------------------------------------
FEDERATED INVESTORS TOWER
PITTSBURGH, PA 15222-3779
-------------------------------------------------------------------------
[LOGO] RECYCLE PAPER
CUSIP 898331103
8063001 (5/95)
--------------------------------------------------------
