-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, BforvSMhVxCHLuZcJKJBnaAlbg+0fDZ+YPdzSQcXlzKddepCbmBMojQi8wF5o/1H bYuAjWTuTy9q/tTHeGA/lQ== 0000856517-00-000013.txt : 20000411 0000856517-00-000013.hdr.sgml : 20000411 ACCESSION NUMBER: 0000856517-00-000013 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20000131 FILED AS OF DATE: 20000329 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MONEY MARKET OBLIGATIONS TRUST /NEW/ CENTRAL INDEX KEY: 0000856517 STANDARD INDUSTRIAL CLASSIFICATION: [] IRS NUMBER: 251415329 STATE OF INCORPORATION: MA FISCAL YEAR END: 0731 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-05950 FILM NUMBER: 583767 BUSINESS ADDRESS: STREET 1: FEDERATED INVESTORS TOWER CITY: PITTSBURGH STATE: PA ZIP: 15222-3779 BUSINESS PHONE: 8003417400 MAIL ADDRESS: STREET 1: FEDERATED INVESTORS TOWER CITY: PITTSBURG STATE: PA ZIP: 15222-3779 N-30D 1 SEMI-ANNUAL REPORT President's Message Dear Shareholder: I am pleased to present the Semi-Annual Report for Money Market Obligations Trust-Institutional Capital Shares. This report combines information for three money market mutual funds that are part of the Trust. The report covers the first half of each fund's fiscal year, which is the six-month period ended January 31, 2000. It begins with investment reviews by the portfolio managers on each fund's market. Following the investment reviews are the funds' portfolios of investments and financial statements. As money market funds, each of these funds gives you the opportunity to put your cash to work pursuing daily dividends while giving you the comfort of a high level of liquidity and a stable net asset value of $1.00 per share. 1 The following are fund-by-fund performance highlights: MUNICIPAL OBLIGATIONS FUND pursues tax-free income by investing in a portfolio of short-term securities issued by municipalities across the United States. 2 During the six-month reporting period, the fund paid tax-free dividends totaling $0.02 per share to shareholders of Institutional Capital Shares.2 At the end of the reporting period, the fund's net assets totaled $602 million. PRIME CASH OBLIGATIONS FUND invests in a well-diversified portfolio of high-quality money market securities. During the six-month reporting period, dividends paid to shareholders of Institutional Capital Shares totaled $0.03 per share. At the end of the reporting period, the fund's net assets totaled $4.7 billion. PRIME VALUE OBLIGATIONS FUND invests in a well-diversified portfolio of high-quality money market securities. During the six-month reporting period, dividends paid to shareholders of Institutional Capital Shares each totaled $0.03 per share. At the end of the reporting period, the fund's net assets totaled $2.3 billion. Thank you for selecting one or more of these funds as a convenient way to help your ready cash earn daily income. As always, we welcome your questions, comments or suggestions. Sincerely, [Graphic] J. Christopher Donahue President March 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 these funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the funds. 2 Income may be subject to the federal alternative minimum tax. Unless otherwise exempt, shareholders are required to pay federal income tax on dividends. Economic Overview The Federal Reserve Board (the "Fed") tightened monetary policy on two occasions over the funds' semi-annual reporting period ended January 31, 2000. These two quarter-point moves, combined with an initial tightening of similar magnitude at the end of June 1999, brought the federal funds target rate back to 5.50%. This was the level of the federal funds target rate prior to the fourth quarter of 1998, when the Fed infused liquidity into the fixed income markets during a period of global economic turmoil. Robust economic growth prompted the policy moves by the Fed. Economic growth in 1999 exceeded 4.00%, well in excess of what is generally considered to be the long-run non-inflationary growth potential of the economy. Consumer spending continued to be the main drive behind the impressive pace of growth, and although mortgage rates increased by close to 150 basis points over the reporting period, the interest-sensitive sectors of the economy remained persistently strong. Inflationary pressures at the producer and consumer levels remained remarkably absent in spite of this growth. However, while the notion of a non-inflationary potential, traditionally 2.00% to 2.50%, has increased in recent times due to evidence that productivity enhancements have been controlling inflationary pressures, continued growth well above 3.00% is likely to keep the Fed on its current tightening course in the near future. During the reporting period, short-term interest rates reflected, and largely anticipated, the monetary policy tightenings that took place. The yield on the 1-year agency discount note, for example, began the reporting period at 5.66%, traded up to 5.80% by the time of the Fed's decision to tighten rates in August, and up again to 5.90% by the second tightening of the reporting period in November. The yield continued to climb steadily to close the reporting period at 6.43%, two days prior to another decision by the Fed to tighten, which brought the federal funds target rate to its current 5.75% level. Much attention, both in the financial markets and the popular press, was given in the fourth quarter of 1999 to the potential dislocations feared at year end due to the Year 2000 effect. In hindsight, of course, the world experienced very few troubles, and the economic impact appears to be non- existent. However, very short-term government securities did seem to reflect a "flight to quality" concentrated in the last few weeks of the trading year. Furthermore, the steps that the Fed had taken to assure that sufficient liquidity would be available to the banking system at year end in the event of a crisis caused rates on repurchase agreements to trade around 3.00% in the last few days of the year, well below the then typical level of 5.50%. Investment Review MUNICIPAL OBLIGATIONS FUND Municipal Obligations Fund invests in high-quality, short-term tax-exempt securities. Typical investments include, but are not limited to, variable rate demand notes (VRDNs), commercial paper equivalents and fixed-rate notes and bonds. For the six-month reporting period, the net assets of the fund increased from $535 million to $602 million, while the seven-day net yield for the fund's Institutional Capital Shares increased from 3.10% to 3.34%. 1 The average maturity of the fund on January 31, 2000, was 47 days. Interest rates in the tax-exempt money markets over the reporting period were influenced by the Federal Reserve Board (the "Fed") tightenings as well as expectations of future tightenings. Supply and demand factors also played a large role in the absolute level of interest rates, as demand (cash inflows into the market) remained steady over most of the reporting period. New supply of fixed-rate notes was low relative to demand as municipalities continued to benefit from a strong economy and record tax collections. Yields on VRDNs, which comprised close to 70% of the fund's assets, started the reporting period at 3.00%, but drifted slowly upward reflecting the Fed's interest rate moves as well as supply and demand. In late December, yields spiked to over 5.50%, reflecting the reluctance of dealers to position these instruments over year-end. Strong demand in January brought yields down to 3.00% and they ended the reporting period at 3.25%. Going forward, the average maturity of the fund will continue to be managed in accordance with expectations of continued monetary policy tightenings. Therefore, the fund will continue to keep the average maturity short, waiting for yields to rise further before locking in attractive fixed-rate note opportunities. Fund management continues to watch, with great interest, market developments in order to best serve our municipal clients. 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. PRIME CASH OBLIGATIONS FUND AND PRIME VALUE OBLIGATIONS FUND Prime Cash Obligations Fund and Prime Value Obligations Fund invest in money market instruments maturing in 13 months or less. The average maturity of these securities, computed on a dollar-weighted basis, is restricted to 90 days or less. Portfolio securities of Prime Cash Obligations Fund must be rated in the highest short-term rating category by one or more of the nationally recognized statistical rating organizations or be of comparable quality to securities having such ratings. Portfolio securities of Prime Value Obligations Fund 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, short term notes, time deposits, variable rate instruments and repurchase agreements. The Federal Reserve Board (the "Fed") continued to act preemptively to quell inflationary threats and raised the federal funds target rate from 5.00% to 5.25% on August 24, 1999, and then again from 5.25% to 5.50% on November 16, 1999. The market had already anticipated such actions, resulting in a much steeper money market yield curve throughout most of the reporting period. Thirty-day commercial paper started the reporting period at 5.11% and then traded steadily up to the 5.50% level by the end of November. Seasonal and Year 2000 effects took hold in December and caused the 30-day commercial paper rate to spike as high as 6.46%, before retreating to 5.78% at the end of the reporting period. The target average maturity range for the funds was decreased from 45- 55 days to 40-50 days on January 10, 2000, reflecting the Fed's concern about overzealousness in the stock markets and potential inflationary threats. In structuring the funds, there was continued emphasis placed on positioning 30%-35% of the funds' core assets in variable rate demand notes and accomplishing a modest barbell structure. During the six months ended January 31, 2000, the net assets of Prime Cash Obligations Fund increased from $3.1 billion to $4.7 billion, while the seven-day net yield for the fund's Institutional Capital Shares increased from 4.84% to 5.55%. 1 The effective average maturity of this fund on January 31, 2000 was 42 days. During the six months ended January 31, 2000, the net assets of Prime Value Obligations Fund increased from $2.1 billion to $2.3 billion, while the seven-day net yield for the fund's Institutional Capital Shares increased from 4.87% to 5.59%. 1 The effective average maturity of this fund on January 31, 2000 was 44 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. Shareholder Meeting Results A Special Meeting of Shareholders of Municipal Obligations Fund, Prime Cash Obligations Fund and Prime Value Obligations Fund was held on September 23, 1999. On July 26, 1999, the record date for shareholders voting at the meeting, there were 509,899,505 total outstanding shares of the Municipal Obligations Fund, 3,196,183,791 total outstanding shares of the Prime Cash Obligations Fund, and 2,129,862,319 total outstanding shares of the Prime Value Obligations Fund. The following items were considered by shareholders of the funds and the results of their voting were as follows: AGENDA ITEM 1: To elect five Trustees. 1 MUNICIPAL OBLIGATIONS FUND
WITHHELD AUTHORITY NAMES FOR TO VOTE Nicholas P. Constantakis 308,562,058 1,285,396 John F. Cunningham 308,562,058 1,285,396 J. Christopher Donahue 308,562,058 1,285,396 Charles F. Mansfield, Jr. 308,562,058 1,285,396 John S. Walsh 308,562,058 1,285,396
PRIME CASH OBLIGATIONS FUND
WITHHELD AUTHORITY NAMES FOR TO VOTE Nicholas P. Constantakis 1,903,382,954 559,977 John F. Cunningham 1,903,382,954 559,977 J. Christopher Donahue 1,903,382,954 559,977 Charles F. Mansfield, Jr. 1,903,382,954 559,977 John S. Walsh 1,903,382,954 559,977
PRIME VALUE OBLIGATIONS FUND
WITHHELD AUTHORITY NAMES FOR TO VOTE Nicholas P. Constantakis 1,184,406,669 4,078,150 John F. Cunningham 1,184,503,612 3,981,207 J. Christopher Donahue 1,184,503,612 3,981,207 Charles F. Mansfield, Jr. 1,184,503,612 3,981,207 John S. Walsh 1,184,503,612 3,981,207
1 The following Trustees continued their terms: John F. Donahue, Thomas G. Bigley, John T. Conroy, Jr., Lawrence D. Ellis, M.D., Peter E. Madden, John E. Murray, Jr., J.D., S.J.D. and Marjorie P. Smuts. AGENDA ITEM 2: MUNICIPAL OBLIGATIONS FUND To approve a proposed amendment and Plan of Reorganization between Money Market Obligations Trust II, on behalf of it series, Municipal Obligations Fund (the "Municipal Fund") and Money Market Obligations Trust, on behalf of its series, Municipal Obligations Fund (the "New Municipal Fund") whereby the New Municipal Fund would acquire all of the assets of the Municipal Fund in exchange for shares of the New Municipal Fund to be distributed pro rata by the Municipal Fund to its shareholders in complete liquidation and termination of the Municipal Fund.
BROKER FOR AGAINST ABSTENTIONS NON-VOTES 291,381,643 1,044,999 904,413 16,516,399
PRIME CASH OBLIGATIONS FUND To approve a proposed amendment and Plan of Reorganization between Money Market Obligations Trust II, on behalf of it series, Prime Cash Obligations Fund (the "Prime Cash Fund") and Money Market Obligations Trust, on behalf of its series, Prime Cash Obligations Fund (the "New Prime Cash Fund") whereby the New Prime Cash Fund would acquire all of the assets of the Prime Cash Fund in exchange for shares of the New Prime Cash Fund to be distributed pro rata by the Prime Cash Fund to its shareholders in complete liquidation and termination of the Prime Cash Fund.
BROKER FOR AGAINST ABSTENTIONS NON-VOTES 1,855,098,576 7,139,425 24,202,022 17,502,908
PRIME VALUE OBLIGATIONS FUND To approve a proposed amendment and Plan of Reorganization between Money Market Obligations Trust II, on behalf of it series, Prime Value Obligations Fund (the "Prime Value Fund") and Money Market Obligations Trust, on behalf of its series, Prime Value Obligations Fund (the "New Prime Value Fund") whereby the New Prime Value Fund would acquire all of the assets of the Prime Value Fund in exchange for shares of the New Prime Value Fund to be distributed pro rata by the Prime Value Fund to its shareholders in complete liquidation and termination of the Prime Value Fund.
BROKER FOR AGAINST ABSTENTIONS NON-VOTES 1,051,986,244 20,628,726 16,208,046 99,661,803
Portfolio of Investments Municipal Obligations Fund JANUARY 31, 2000 (UNAUDITED)
PRINCIPAL AMOUNT VALUE SHORT-TERM MUNICIPALS- 99.7% 1 ALABAMA-1.3% $ 5,000,000 Hoover, AL Board of Education, Series 1999 C, 3.80% BANs, 8/1/2000 $ 5,000,000 3,000,000 Tuscaloosa County, AL IDA, Series 1995 A, Weekly VRDNs (Tuscaloosa Steel Corp.)/(Bayerische Landesbank Girozentrale LOC) 3,000,000 TOTAL 8,000,000 ARIZONA-0.7% 2,250,000 Pima County, AZ IDA, SFM, Roaring Fork Series 1999- 6, Weekly VRDNs (GNMA COL)/(Bank of New York, New York LIQ) 2,250,000 1,800,000 Yuma County, AZ Airport Authority, Inc., Series 1997 A, Weekly VRDNs (Bank One, Arizona N.A. LOC) 1,800,000 TOTAL 4,050,000 ARKANSAS-2.4% 1,000,000 Arkadelphia, AR IDRBs, Series 1996, Weekly VRDNs (Siplast, Inc.)/(Den Danske Bank A/S LOC) 1,000,000 4,000,000 Arkansas Development Finance Authority, Series 1995, Weekly VRDNs (Paco Steel & Engineering Corporation Project)/(Union Bank of California LOC) 4,000,000 1,800,000 Hope, AR Solid Waste Disposal Revenue Bonds, Series 1994, 4.25% CP (Temple-Inland Forest Products Corp.)/(Temple- Inland, Inc. GTD), Mandatory Tender 2/1/2000 1,800,000 7,400,000 Siloam Springs, AR IDRB, Series 1994, Weekly VRDNs (La-Z Boy Chair Co.)/(Bank One, Michigan LOC) 7,400,000 TOTAL 14,200,000 COLORADO-1.5% 4,000,000 Arapahoe County, CO HFA, 4.20% TOBs (Reserve at South Creek)/(FGIC INS), Mandatory Tender 2/1/2000 4,000,000 4,955,000 2 Denver, CO City & County Airport Authority, CDC Class A Certificates, Series 1997 K, 3.45% TOBs (MBIA INS)/(CDC Municipal Products, Inc. LIQ), Optional Tender 5/11/2000 4,955,000 TOTAL 8,955,000 DISTRICT OF COLUMBIA-0.8% 5,000,000 District of Columbia HFA, Series 1999 B, 3.30% BANs (CDC Municipal Products, Inc.), 6/15/2000 5,000,000 FLORIDA-1.4% 2,995,000 Hillsborough County, FL HFA, PT-259, Weekly VRDNs (GNMA COL)/(Credit Suisse First Boston LIQ) 2,995,000 PRINCIPAL AMOUNT VALUE SHORT-TERM MUNICIPALS- continued 1 FLORIDA-CONTINUED $ 2,600,000 Miami-Dade County, FL IDA, Series 1999 A, Weekly VRDNs (Airis Miami LLC)/(AMBAC INS)/(Bayerische Landesbank Girozentrale LIQ) $ 2,600,000 3,000,000 Pinellas County, FL HFA, Daily VRDNs (Chase Manhattan Bank N.A., New York LOC) 3,000,000 TOTAL 8,595,000 GEORGIA-1.0% 6,000,000 Savannah, GA EDA, Series 1995 A, Weekly VRDNs (Home Depot, Inc.) 6,000,000 HAWAII-1.8% 11,000,000 Honolulu, HI City & County Multifamily, Series 1999, Block J Project, 5.015% TOBs (Bayerische Landesbank Girozentrale), Mandatory Tender 12/1/2000 11,000,000 IDAHO-0.9% 5,401,000 2 Idaho Housing Agency, PA- 115, 3.70% TOBs (Merrill Lynch Capital Services, Inc. LIQ), Optional Tender 2/17/2000 5,401,000 ILLINOIS-7.8% 10,500,000 Chicago, IL, Chicago Midway Airport Special Facility Revenue Bonds, Series 1998, 3.95% TOBs (Signature Flight Support Corp.)/(Bayerische Landesbank Girozentrale LOC), Optional Tender 6/1/2000 10,500,000 3,000,000 Chicago, IL, Gas Supply Revenue Bonds, Series 1993 B, 4.05% TOBs (Peoples Gas Light & Coke Co.), Optional Tender 12/1/2000 3,000,000 3,100,000 Chicago, IL Series 1997, Weekly VRDNs (Trendler Components, Inc.)/(American National Bank & Trust Co., Chicago LOC) 3,100,000 3,960,000 2 Chicago, IL SFM, PT-290, 3.90% TOBs (GNMA COL)/(Landesbank Hessen- Thueringen, Frankfurt LIQ), Optional Tender 10/5/2000 3,960,000 1,200,000 Galva, IL Series 1999, Weekly VRDNs (John H. Best & Sons, Inc.)/(Norwest Bank Minnesota, N.A. LOC) 1,200,000 6,000,000 Illinois Development Finance Authority, Series 1997, Weekly VRDNs (Toyal America, Inc.)/(Bank of Tokyo-Mitsubishi Ltd. LOC) 6,000,000 2,100,000 Illinois Development Finance Authority, EDRB, Series 1995, Weekly VRDNs (Evapco, Inc. Project)/(Bank of America, N.A. LOC) 2,100,000 3,200,000 Illinois Development Finance Authority, IDRB, Series 1995, Weekly VRDNs (Dickson Weatherproof Nail Co.)/(Bank of America, N.A. LOC) 3,200,000 7,615,000 2 Illinois Housing Development Authority, PT- 7, 3.375% TOBs (AMBAC INS)/(Commerzbank AG, Frankfurt LIQ), Optional Tender 5/11/2000 7,615,000 1,620,000 Martinsville, IL IDRB, Series 1995, Weekly VRDNs (PAP-R Products Co. Project)/(Bank One, Illinois, N.A. LOC) 1,620,000 2,415,000 Peoria, IL Series 1995, Weekly VRDNs (Praise and Leadership Elementary School)/(Bank One, Illinois, N.A. LOC) 2,415,000 2,230,000 Rockford, IL EDRB, 4.20% TOBs (Independence Village of Rockford)/(Paribas, Paris LOC), Optional Tender 12/1/2000 2,230,000 TOTAL 46,940,000 PRINCIPAL AMOUNT VALUE SHORT-TERM MUNICIPALS- continued 1 INDIANA-4.2% $ 2,000,000 Clarksville, IN Series 1997, Weekly VRDNs (Metal Sales Manufacturing Corp.)/(Firstar Bank, N.A., Cincinnati LOC) $ 2,000,000 3,435,000 Elkhart County, IN Series 1997, Weekly VRDNs (Hart Housing Group, Inc.)/(KeyBank, N.A. LOC) 3,435,000 1,500,000 Huntington, IN EDRB, Series 1999, Weekly VRDNs (DK Enterprises LLC)/(Norwest Bank Minnesota, N.A. LOC) 1,500,000 3,400,000 Indianapolis, IN EDRB, Series 1999, Weekly VRDNs (Chip Ganassi Racing Teams)/(PNC Bank, Delaware LOC) 3,400,000 2,155,000 Kendallville, IN IDRB, Series 1995, Weekly VRDNs (Rivnut Real Estate Ltd. Project)/(National City Bank, Ohio LOC) 2,155,000 1,385,000 Richmond, IN EDRB, Series 1996, Weekly VRDNs (Holland Colors Americas, Inc. Project)/(Bank One, Indiana, N.A. LOC) 1,385,000 4,000,000 Rushville, IN Series 1996, Weekly VRDNs (Fujitsu Ten Corp. of America)/(Bank of Tokyo-Mitsubishi Ltd. LOC) 4,000,000 4,000,000 Westfield, IN EDRB, Series 1998, Weekly VRDNs (Standard Locknut, Inc.)/(Bank One, Indiana, N.A. LOC) 4,000,000 3,200,000 Whitley County, IN Series 1999, Weekly VRDNs (Undersea Sensor Systems, Inc.)/(Norwest Bank Minnesota, N.A. LOC) 3,200,000 TOTAL 25,075,000 IOWA-0.3% 2,000,000 Iowa Falls, IA Series 1998, Weekly VRDNs (Heartland Pork Enterprises, Inc.)/(Bank of Nova Scotia, Toronto LOC) 2,000,000 KANSAS-0.3% 1,900,000 Olathe, KS Industrial Revenue Bonds, Series 1995, Weekly VRDNs (Garmin International, Inc. Project)/(Bank of America, N.A. LOC) 1,900,000 KENTUCKY-1.0% 1,730,000 Jefferson County, KY Industrial Building Revenue Bonds, Series 1995, Weekly VRDNs (Derby Industries, Inc.)/(Bank One, Kentucky LOC) 1,730,000 4,110,000 Paris, KY Weekly VRDNs (Monessen Holdings LLC)/(Bank One, Kentucky LOC) 4,110,000 TOTAL 5,840,000 LOUISIANA-1.7% 5,000,000 Lake Charles, LA Harbor & Terminal District, Revenue Bonds, Series 1995 A, Weekly VRDNs (Polycom- Huntsman, Inc.)/(National City, Pennsylvania LOC) 5,000,000 3,400,000 Louisiana HFA, Trust Receipts, FR/RI-52, Series 1999, Weekly VRDNs (GNMA COL)/(Bayerische Hypotheken-und Vereinsbank AG LIQ) 3,400,000 1,600,000 Ouachita Parish, LA IDB, Series 1998, Weekly VRDNs (Dixie Carbonic, Inc.)/(Bank One, Illinois, N.A. LOC) 1,600,000 TOTAL 10,000,000 PRINCIPAL AMOUNT VALUE SHORT-TERM MUNICIPALS- continued 1 MAINE-0.3% $ 1,840,000 Trenton, ME Series 1998, Weekly VRDNs (Hinckley Co.)/(KeyBank, N.A. LOC) $ 1,840,000 MARYLAND-4.7% 2,468,000 Frederick County, MD Series 1998 A, Weekly VRDNs (Thogar LLC)/(Allfirst LOC) 2,468,000 6,600,000 Harford County, MD Series 1989, Weekly VRDNs (Harford Commons Associates Facility)/(Allfirst LOC) 6,600,000 1,386,000 Harford County, MD Variable Rate Demand/Fixed Rate Refunding Bond (1989 Issue) Weekly VRDNs (Harford Commons Associates Facility)/(Allfirst LOC) 1,386,000 1,000,000 Maryland EDC, Tax Exempt Adjustable Mode IDRBs, Series 1998, Weekly VRDNs (Morrison Health Care, Inc.)/(Wachovia Bank of NC, N.A. LOC) 1,000,000 4,375,000 Maryland Industrial Development Financing Authority, Special Facility Airport Revenue Bonds, Series 1999, 3.95% TOBs (Signature Flight Support Corp.)/(Bayerische Landesbank Girozentrale LOC), Optional Tender 6/1/2000 4,375,000 2,560,000 Maryland State Community Development Administration, Series 1990 A, Weekly VRDNs (College Estates)/(Allfirst LOC) 2,560,000 3,000,000 Maryland State Community Development Administration, Series 1990 B, Weekly VRDNs (Cherry Hill Apartment Ltd.)/(Bank of America, N.A. LOC) 3,000,000 3,000,000 Maryland State Energy Financing Administration, IDRB, Series 1988, Weekly VRDNs (Morningstar Foods, Inc.)/(First Union National Bank, Charlotte, N.C. LOC) 3,000,000 4,000,000 Wicomico County, MD EDRB, Series 1994, Weekly VRDNs (Field Container Co. LP)/( Northern Trust Co., Chicago, IL LOC) 4,000,000 TOTAL 28,389,000 MASSACHUSETTS-0.5% 3,000,000 Massachusetts IFA, IDRB, Series 1995, Weekly VRDNs (Dunsirn Industries, Inc. Project)/(Firstar Bank, Milwaukee LOC) 3,000,000 MINNESOTA-5.9% 1,400,000 Blaine, MN Series 1997, Weekly VRDNs (Plastic Enterprises, Inc.)/(Norwest Bank Minnesota, N.A. LOC) 1,400,000 3,600,000 Brooklyn Center, MN Shingle Creek Tower, Series 1999, 4.93% TOBs (Bank of America, N.A.), Mandatory Tender 4/1/2000 3,600,000 4,000,000 Coon Rapids, MN Series 1999, Weekly VRDNs (Assurance Mfg. Co., Inc.)/(Norwest Bank Minnesota, N.A. LOC) 4,000,000 10,195,000 2 Dakota County & Washington County MN, Housing & Redevelopment Authority, MERLOTS, Series J, 4.00% TOBs (United States Treasury COL)/(First Union National Bank, Charlotte, N.C. LIQ), Optional Tender 2/1/2000 10,195,000 5,000,000 2 Dakota County, Washington County & Anoka City, MN Housing & Redevelopment Authority, MERLOTS, Series H, 4.00% TOBs (United States Treasury COL)/(First Union National Bank, Charlotte, N.C. LIQ), Optional Tender 2/1/2000 5,000,000 2,600,000 Minneapolis, MN IDA, Series 1999, Weekly VRDNs (Viking Materials, Inc.)/(Norwest Bank Minnesota, N.A. LOC) 2,600,000 PRINCIPAL AMOUNT VALUE SHORT-TERM MUNICIPALS- continued 1 MINNESOTA-CONTINUED $ 2,755,000 Savage, MN Series 1998, Weekly VRDNs (Fabcon, Inc.)/(Norwest Bank Minnesota, N.A. LOC) $ 2,755,000 1,870,000 Springfield, MN Series 1998, Weekly VRDNs (Ochs Brick Co.)/(Norwest Bank Minnesota, N.A. LOC) 1,870,000 2,250,000 White Bear Lake, MN Series 1999, Weekly VRDNs (Taylor Corp.)/(Norwest Bank Minnesota, N.A. LOC) 2,250,000 2,000,000 White Bear Lake, MN Century Townhomes, Series 1997, 4.5475% TOBs (Westdeutsche Landesbank Girozentrale), Optional Tender 5/1/2000 2,000,000 TOTAL 35,670,000 MISSISSIPPI-7.3% 1,168,000 Greenville, MS IDA, Weekly VRDNs (Mebane Packaging Corp.)/(First Union National Bank, Charlotte, N.C. LOC) 1,168,000 6,455,000 Mississippi Business Finance Corp., Series 1995, Weekly VRDNs (Mississippi Baking Company LLC Project)/(Allfirst LOC) 6,455,000 5,400,000 Mississippi Business Finance Corp., Series 1995, Weekly VRDNs (Schuller International, Inc.)/(Bank of New York, New York LOC) 5,400,000 7,500,000 Mississippi Home Corp., Multifamily Housing Adjustable/Fixed Rate Revenue Bonds, Series 1997, Weekly VRDNs (Windsor Park Apartments)/(SouthTrust Bank of Alabama, Birmingham LOC) 7,500,000 9,805,000 2 Mississippi Home Corp., PT-218B, 3.65% TOBs (GNMA COL)/(Bayerische Hypotheken-und Vereinsbank AG LIQ), Optional Tender 7/6/2000 9,805,000 9,790,000 Mississippi Regional Housing Authority No. II, Series 1998, 4.00% TOBs (Bradford Park Apartments)/(Amsouth Bank N.A., Birmingham LOC), Mandatory Tender 10/1/2000 9,790,000 4,000,000 Warren County, MS IDA, Weekly VRDNs (Vesper Corp.)/(PNC Bank, N.A. LOC) 4,000,000 TOTAL 44,118,000 MISSOURI-1.6% 1,750,000 Kansas City, MO IDA, Series 1999, Weekly VRDNs (B&B Investments LLC)/(Norwest Bank Minnesota, N.A. LOC) 1,750,000 1,600,000 Springfield, MO IDA, Series 1999, Weekly VRDNs (Dabryan Coach Builders, Inc.)/(Norwest Bank Minnesota, N.A. LOC) 1,600,000 1,000,000 St. Louis, MO IDA, Series 1997, Weekly VRDNs (Cee Kay Supply)/(Commerce Bank, Kansas City, N.A. LOC) 1,000,000 5,000,000 St. Louis, MO IDA, Homer G. Phillips Dignity House, Series 1999, 5.10% TOBs (Bayerische Landesbank Girozentrale) 12/1/2000 5,000,000 TOTAL 9,350,000 MULTI STATE-11.2% 18,100,000 Charter Mac Floater Certificates Trust I, (Third Tranche) Weekly VRDNs (MBIA INS)/(Bayerische Landesbank Girozentrale, Commerzbank AG, Frankfurt and Credit Communal de Belgique, Brussels LIQs) 18,100,000 PRINCIPAL AMOUNT VALUE SHORT-TERM MUNICIPALS- continued 1 MULTI STATE-CONTINUED $ 20,000,000 Charter Mac Floater Certificates Trust I, (Fifth Tranche) Weekly VRDNs (MBIA INS)/(Bayerische Landesbank Girozentrale, Commerzbank AG, Frankfurt and Credit Communal de Belgique, Brussels LIQs) $ 20,000,000 29,338,000 Clipper Tax-Exempt Trust (AMT MultiState), Series A, Weekly VRDNs (State Street Bank and Trust Co. LIQ) 29,338,000 TOTAL 67,438,000 NEBRASKA-1.2% 6,995,000 Nebraska Investment Finance Authority, MERLOTS, Series 1999 A, Weekly VRDNs (GNMA COL)/(First Union National Bank, Charlotte, N.C. LIQ) 6,995,000 NEVADA-0.2% 550,000 Nevada State Department of Community & Industrial Development, Weekly VRDNs (Kinplex Co. Project)/(Credit Commercial de France, Paris LOC) 550,000 855,000 Sparks, NV IDRBs, Series 1996, Weekly VRDNs (The Antioch Publishing Co. Project)/(National City Bank, Ohio LOC) 855,000 TOTAL 1,405,000 NEW HAMPSHIRE-0.6% 3,685,000 New Hampshire Business Finance Authority, IDRB, Series A, Weekly VRDNs (Upper Valley Press)/(KeyBank, N.A. LOC) 3,685,000 NEW JERSEY-0.8% 4,995,000 2 New Jersey Housing & Mortgage Financing Authority, PT-285, 3.80% TOBs (MBIA INS)/(Landesbank Hessen- Thueringen, Frankfurt LIQ), Optional Tender 8/10/2000 4,995,000 NEW MEXICO-1.6% 4,755,000 Albuquerque, NM, Series 1996, Weekly VRDNs (Rose's Southwest Papers, Inc.)/(Norwest Bank Minnesota, N.A. LOC) 4,755,000 5,000,000 Los Lunas Village, NM, Series 1998, Weekly VRDNs (Wall Colmonoy Corp.)/(Michigan National Bank, Farmington Hills LOC) 5,000,000 TOTAL 9,755,000 NEW YORK-1.8% 3,800,000 Brookhaven-Comsewogue Union Free School District, NY, 4.25% TANs, 6/30/2000 3,806,820 7,000,000 New York City, NY Transitional Finance Authority, 1999 Trust Receipts, Weekly VRDNs (Bank of New York, New York LIQ) 7,000,001 TOTAL 10,806,821 OHIO-7.6% 34,100,000 Clipper Tax-Exempt Certificates Trust (Ohio AMT), Series 1999-4, Weekly VRDNs (Ohio HFA)/(GNMA COL)/(State Street Bank and Trust Co. LIQ) 34,100,000 3,045,000 Mentor, OH Adjustable Rate IDRBs, Series 1997, Weekly VRDNs (Risch Investments/Roll Kraft, Inc.)/(KeyBank, N.A. LOC) 3,045,000 PRINCIPAL AMOUNT VALUE SHORT-TERM MUNICIPALS- continued 1 OHIO-CONTINUED $ 980,000 Stark County, OH IDR, Weekly VRDNs (Shearer's Foods, Inc.)/(Bank One, N.A. (Ohio) LOC) $ 980,000 4,000,000 Toledo-Lucas County, OH Port Authority, Airport Development Revenue Bonds, Series 1996-1, Weekly VRDNs (Burlington Air Express, Inc.)/(ABN AMRO Bank N.V., Amsterdam LOC) 4,000,000 3,720,000 Youngstown, OH Adjustable Rate Demand IDRBs, Series 1996 A, Weekly VRDNs (Cantar/Polyair Corp./Performa Corp.)/(HSBC Bank USA LOC) 3,720,000 TOTAL 45,845,000 OKLAHOMA-0.6% 3,610,000 Tulsa County, OK HFA, CDC Municipal Products, Inc., Class A Certificates, Series 1996 E, Weekly VRDNs (GNMA COL)/(CDC Municipal Products, Inc. LIQ) 3,610,000 OREGON-0.1% 495,000 Oregon State, EDRBs, Series 1988 B, Weekly VRDNs (Domaine Drouhin Oregon, Inc.)/(Wells Fargo Bank, N.A. LOC) 495,000 PENNSYLVANIA-2.0% 5,000,000 Clinton County, PA IDA, Solid Waste Disposal Revenue Bonds, Series 1992 A, 4.70% TOBs (International Paper Co.), Optional Tender 1/15/2001 5,000,000 6,745,000 2 Philadelphia, PA IDA, Variable Rate Certificates, Series 1998 P-1, 3.65% TOBs (Philadelphia Airport System)/(FGIC INS)/(Bank of America, N.A. LIQ), Optional Tender 7/20/2000 6,745,000 TOTAL 11,745,000 SOUTH CAROLINA-3.3% 5,200,000 Berkeley County, SC IDB, Series 1998, Weekly VRDNs (Nucor Corp.) 5,200,000 1,865,000 Berkeley County, SC IDB, Series 1989, Weekly VRDNs (W.W. Williams Co. Project)/(Bank One, N.A. Ohio, LOC) 1,865,000 3,690,000 South Carolina Job Development Authority Weekly VRDNs (Boozer Lumber Co.)/(SouthTrust Bank of Alabama, Birmingham LOC) 3,690,000 250,000 South Carolina Job Development Authority, Series 1988 B, Weekly VRDNs (Seacord Corp.)/(Credit Commercial de France, Paris LOC) 250,000 450,000 South Carolina Job Development Authority, Series 1990, Weekly VRDNs (NMFO Associates)/(Wachovia Bank of NC, N.A. LOC) 450,000 850,000 South Carolina Job Development Authority, Series 1990, Weekly VRDNs (Old Claussen's Bakery)/(Wachovia Bank of NC, N.A. LOC) 850,000 500,000 South Carolina Job Development Authority, Series 1990, Weekly VRDNs (Rice Street Association)/(Wachovia Bank of NC, N.A. LOC) 500,000 3,700,000 South Carolina Job Development Authority, Series 1996, Weekly VRDNs (PVC Container Corp. Project)/(Fleet Bank N.A. LOC) 3,700,000 660,000 South Carolina Job Development Authority, Series B, Weekly VRDNs (Osmose Wood Preserving)/(Credit Commercial de France, Paris LOC) 660,000 PRINCIPAL AMOUNT VALUE SHORT-TERM MUNICIPALS- continued 1 SOUTH CAROLINA-CONTINUED $ 2,620,000 York County, SC IDA, IDRBs, Series 1989, Weekly VRDNs (Sediver, Inc.)/(Banque Nationale de Paris LOC) $ 2,620,000 TOTAL 19,785,000 SOUTH DAKOTA-0.8% 4,230,000 South Dakota Housing Development Authority, Series 1999 I, 3.85% BANs, 9/28/2000 4,230,000 515,000 South Dakota Housing Development Authority, Homeownership Mortgage Bonds, 1997 Series E, Weekly VRDNs 515,000 TOTAL 4,745,000 TENNESSEE-4.1% 4,000,000 Carter County, TN IDB, Series 1983, Monthly VRDNs (Inland Container Corp.)/ (Temple-Inland, Inc. GTD) 4,000,000 1,500,000 Cheatham County, TN IDB, Series 1997 B, Weekly VRDNs (Triton Boat Co.)/(First American National Bank, Nashville, TN LOC) 1,500,000 2,000,000 Covington, TN IDB, Series 1992, Weekly VRDNs (Wallace Computer Services, Inc.)/(Wachovia Bank of NC, N.A. LOC) 2,000,000 1,500,000 Hamilton County, TN IDB, Series 1987, Weekly VRDNs (Seaboard Farms Project)/(SunTrust Bank, Atlanta LOC) 1,500,000 1,510,000 Hawkins County, TN IDB, Series 1995, Weekly VRDNs (Sekisui Ta Industries, Inc.)/(Bank of Tokyo- Mitsubishi Ltd. LOC) 1,510,000 2,000,000 Jackson, TN IDB, Solid Waste Facility Bonds, Series 1995, Weekly VRDNs (Florida Steel Corp.)/(Bank of America, N.A. LOC) 2,000,000 500,000 Knox County, TN IDB, Series 1996, Weekly VRDNs (Health Ventures, Inc.)/(SunTrust Bank, Nashville LOC) 500,000 4,000,000 Morristown, TN IDB, Series 1999, Weekly VRDNs (Tuff Torq Corp.)/(Bank of Tokyo-Mitsubishi Ltd. LOC) 4,000,000 3,000,000 Sevier County, TN Public Building Authority, Local Government Improvement Bonds, Series II-G-2, Weekly VRDNs (Knoxville, TN)/(AMBAC INS)/(KBC Bank N.V. LIQ) 3,000,000 800,000 South Pittsburg, TN IDB, Series 1996, Weekly VRDNs (Lodge Manufacturing Co.)/ (SunTrust Bank, Nashville LOC) 800,000 3,995,000 Tennessee Housing Development Agency, Series 1997 K, Weekly VRDNs (Bank of America, N.A. LIQ) 3,995,000 TOTAL 24,805,000 TEXAS-9.7% 4,000,000 Angelina and Neches River Authority, Texas, Solid Waste Disposal Revenue Bonds, Series 1993, 4.60% CP (Temple-Eastex, Inc.)/(Temple-Inland, Inc. GTD), Mandatory Tender 2/17/2000 4,000,000 2,500,000 Angelina and Neches River Authority, Texas, Solid Waste Disposal Revenue Bonds, Series 1993, 4.60% CP (Temple-Eastex, Inc.)/(Temple-Inland, Inc. GTD), Mandatory Tender 2/18/2000 2,500,000 PRINCIPAL AMOUNT VALUE SHORT-TERM MUNICIPALS- continued 1 TEXAS-CONTINUED $ 1,600,000 Angelina and Neches River Authority, Texas, Waste Disposal Revenue Bonds, Series 1998, 4.60% CP (Temple-Inland Forest Products Corp.)/(Temple- Inland, Inc. GTD), Mandatory Tender 2/17/2000 $ 1,600,000 5,755,000 Brazos River Authority, TX, Series 1999 B, Weekly VRDNs (TXU Electric Co.)/(Morgan Guaranty Trust Co., New York LOC) 5,755,000 5,420,000 2 Dallas-Fort Worth, TX Regional Airport, Custody Receipts, 4.05% TOBs (FGIC INS)/(Citibank N.A, New York LIQ), Optional Tender 5/1/2000 5,420,000 7,100,000 Gulf Coast, TX Waste Disposal Authority, Daily VRDNs (Amoco Corp.) 7,100,000 3,500,000 Harris County, TX HFDC, Series 1994, Daily VRDNs (Methodist Hospital, Harris County, TX) 3,500,000 3,500,000 Harris County, TX HFDC, Series 1997 A, Daily VRDNs (St. Luke's Episcopal Hospital)/(Bank of America, N.A., Morgan Guaranty Trust Co., New York and Toronto Dominion Bank LIQs) 3,500,000 5,000,000 Harris County, TX HFDC, Hospital Revenue Bonds, Series 1997 B, 3.70% CP (Memorial Hospital System)/(MBIA INS)/(Chase Bank of Texas LIQ), Mandatory Tender 3/1/2000 5,000,000 2,200,000 Harris County, TX HFDC, Unit Priced Demand Adjustable Revenue Bonds, Series 1997 B, Daily VRDNs (St. Luke's Episcopal Hospital)/(Bank of America, N.A., Morgan Guaranty Trust Co., New York and Toronto Dominion Bank LIQs) 2,200,000 3,210,000 Houston, TX Airport System, Series 1998 A, PT- 1102, Weekly VRDNs (FGIC INS)/(Merrill Lynch Capital Services, Inc. LIQ) 3,210,000 2,100,000 Lubbock, TX IDC, Daily VRDNs (McLane Co., Inc.)/(Bank of America, N.A. LOC) 2,100,000 8,000,000 McAllen, TX IDA, Series 1998, Weekly VRDNs (NiTek McAllen LLC)/(Bank of Tokyo-Mitsubishi Ltd. LOC) 8,000,000 4,545,000 Saginaw, TX IDA, Series 1998, Weekly VRDNs (Glad Investing Partners Ltd.)/(Bank One, Texas N.A. LOC) 4,545,000 TOTAL 58,430,000 VIRGINIA-3.5% 5,000,000 Campbell County, VA IDA, Solid Waste Disposal Facilities Revenue ACES, Weekly VRDNs (Georgia- Pacific Corp.)/(SunTrust Bank, Atlanta LOC) 5,000,000 10,000,000 2 Fairfax County, VA EDA, Trust Receipt, FR/RI-A15, Series 1999, 3.55% TOBs (AMBAC INS)/(National Westminster Bank PLC, London LIQ), Optional Tender 2/1/2000 10,000,000 6,000,000 Halifax, VA IDA, MMMs, PCR, 3.85% CP (Virginia Electric Power Co.), Mandatory Tender 3/10/2000 6,000,000 TOTAL 21,000,000 WASHINGTON-1.2% 4,000,000 2 Washington State, PT-1187, 3.95% TOBs (Merrill Lynch Capital Services, Inc. LIQ), Optional Tender 10/19/2000 4,000,000 3,000,000 Yakima County, WA Public Corp., Series 1999, Weekly VRDNs (John I. Haas, Inc.)/(Bayerische Hypotheken-und Vereinsbank AG and Deutsche Bank AG LOCs) 3,000,000 TOTAL 7,000,000 PRINCIPAL AMOUNT VALUE SHORT-TERM MUNICIPALS- continued 1 WEST VIRGINIA-0.4% $ 2,335,000 Berkeley County, WV County Commission, IDB, Series 1994, Weekly VRDNs (Brentwood Industries, Inc. Project)/(First Union National Bank, Charlotte, NC LOC) $ 2,335,000 WISCONSIN-1.6% 2,000,000 Milwaukee, WI Series 1997, 3.95% TOBs (Signature Flight Support Corp.)/(Bayerische Landesbank Girozentrale LOC), Optional Tender 6/1/2000 2,000,000 1,000,000 New Berlin, WI Series 1997 A, Weekly VRDNs (Sunraider LLC/New Berlin Plastics, Inc.)/(Bank One, Wisconsin, N.A. LOC) 1,000,000 6,905,000 2 Wisconsin Housing & EDA, PT-90, 3.175% TOBs (Banque Nationale de Paris LIQ), Optional Tender 2/17/2000 6,905,000 TOTAL 9,905,000 TOTAL INVESTMENTS (AMORTIZED COST) 3 $ 600,102,821
Securities that are subject to alternative minimum tax represent 91.6% of the portfolio as calculated based upon total portfolio market value. 1 The fund may only invest in securities rated in one of the two highest short-term rating categories by nationally recognized statistical rating organizations ("NRSROs") or unrated securities of comparable quality. An NRSRO's two highest rating categories are determined without regard for sub-categories and gradations. For example, securities rated SP-1+, SP-1 or SP-2 by Standard & Poor's, MIG-1 or MIG-2 by Moody's Investors Service, or F-1+, F-1 or F-2 by Fitch IBCA, Inc., are all considered rated in one of the two highest short-term rating categories. Securities rated in the highest short-term rating category (and unrated securities of comparable quality) are identified as First Tier securities. Securities rated in the second highest short-term rating category (and unrated securities of comparable quality) are identified as Second Tier securities. The fund follows applicable regulations in determining whether a security is rated and whether a security rated by multiple NRSROs in different rating categories should be identified as a First or Second Tier security. At January 31, 2000, the portfolio securities were rated as follows: Tier Rating Based on Total Market Value (Unaudited) FIRST TIER Second Tier 96.85% 3.15% 2 Denotes a restricted security which is subject to restrictions on resale under federal securities laws. These securities have been deemed liquid based upon criteria approved by the fund's Board of Trustees. At January 31, 2000 these securities amounted to $84,996,000 which represents 14.1% of net assets. 3 Also represents cost for federal tax purposes. Note: The categories of investments are shown as a percentage of net assets ($602,128,089) at January 31, 2000. The following acronyms are used throughout this portfolio: ACES -Adjustable Convertible Extendable Securities AMBAC -American Municipal Bond Assurance Corporation AMT -Alternative Minimum Tax BANs -Bond Anticipation Notes COL -Collateralized CP -Commercial Paper EDA -Economic Development Authority EDC -Economic Development Corporation EDRB -Economic Development Revenue Bonds FGIC -Financial Guaranty Insurance Company GNMA -Government National Mortgage Association GTD -Guaranteed HFA -Housing Finance Authority HFDC -Health Facility Development Corporation IDA -Industrial Development Authority IDB -Industrial Development Bond IDC -Industrial Development Corporation IDRB -Industrial Development Revenue Bond IFA -Industrial Finance Authority INS -Insured LIQ -Liquidity Agreement LOC -Letter of Credit MBIA - -Municipal Bond Investors Assurance MERLOTS -Municipal Exempt Receipts Liquidity Optional Tender Series MMMs -Money Market Municipals PCR -Pollution Control Revenue SFM -Single Family Mortgages TANs -Tax Anticipation Notes TOBs -Tender Option Bonds VRDNs -Variable Rate Demand Notes See Notes which are an integral part of the Financial Statements Portfolio of Investments Prime Cash Obligations Fund JANUARY 31, 2000 (UNAUDITED)
PRINCIPAL AMOUNT VALUE SHORT TERM NOTES-10.6% BANKING-1.0% $ 30,000,000 Bank One, Illinois, N.A., 6.025%, - 6.07%, 10/10/2000 - 11/13/2000 $ 29,985,690 16,000,000 Westpac Banking Corp. Ltd., Sydney, 6.22%, 11/30/2000 15,989,736 TOTAL 45,975,426 BROKERAGE-2.9% 138,000,000 Goldman Sachs Group, Inc., 5.831% - 6.010%, 3/24/2000 - 4/26/2000 138,000,000 FINANCE - AUTOMOTIVE-0.2% 3,536,571 Honda Auto Lease Trust 1999-A, Class A-1, 5.445%, 8/15/2000 3,536,571 7,862,118 Toyota Auto Receivables 1999-A Owner Trust, Class A-1, 5.365%, 8/11/2000 7,862,118 TOTAL 11,398,689 FINANCE - COMMERCIAL-6.1% 153,500,000 Beta Finance, Inc., 5.10% - 5.52%, 2/16/2000 - 6/12/2000 153,499,051 136,000,000 Sigma Finance, Inc., (Guaranteed by Sigma Finance Corp.), 6.00% - 6.78%, 8/11/2000 - 2/28/2001 136,000,000 TOTAL 289,499,051 FINANCE - EQUIPMENT-0.4% 4,402,965 Caterpillar Financial Asset Trust 1999-A, Class A-1, 5.365%, 7/25/2000 4,402,965 12,416,035 Copelco Capital Funding LLC 1999-B, Class A-1, 5.937%, 10/18/2000 12,416,035 176,431 Navistar Financial 1999-A Owner Trust, Class A-1, 5.003%, 6/15/2000 176,431 TOTAL 16,995,431 INSURANCE-0.0% 12,000 Americredit Automobile Receivables Trust 2000-A, Class A-1, 6.040%, 2/5/2001 12,000 TOTAL SHORT TERM NOTES 501,880,597 CERTIFICATES OF DEPOSIT- 4.3% BANKING-4.3% 27,000,000 Bank of Montreal, 5.20%, 5/12/2000 26,996,404 40,000,000 Bank of Scotland, Edinburgh, 5.95%, 4/12/2000 39,999,924 26,000,000 Bayerische Landesbank Girozentrale, 5.115%, 3/21/2000 25,997,103 39,000,000 Canadian Imperial Bank of Commerce, 4.987% - 5.16%, 2/7/2000 - 2/23/2000 38,999,432 PRINCIPAL AMOUNT VALUE CERTIFICATES OF DEPOSIT- continued BANKING-CONTINUED $ 25,000,000 Commerzbank AG, Frankfurt, 5.16% - 5.24%, 4/7/2000 - 5/15/2000 $ 24,997,585 45,000,000 UBS AG, Stamford, 6.080% - 6.260%, 11/13/2000 - 12/11/2000 44,976,726 TOTAL CERTIFICATES OF DEPOSIT 201,967,174 COMMERCIAL PAPER-46.0% 2 BANKING-25.6% 80,000,000 Abbey National N.A. Corp., (Guaranteed by Abbey National Bank PLC, London), 5.906% - 5.917%, 4/13/2000 - 4/25/2000 78,971,200 39,000,000 Asset Securitization Cooperative Corp., 5.92%, 2/24/2000 38,856,729 50,000,000 Corporate Asset Funding Co., Inc. (CAFCO), 5.808%, 3/22/2000 49,600,694 130,000,000 Cregem North America, Inc., (Guaranteed by Credit Communal de Belgique, Brussels), 5.893% - 6.020%, 2/8/2000 - 4/17/2000 129,406,876 65,000,000 Den Danske Corp., Inc., (Guaranteed by Den Danske Bank A/S), 5.936% - 6.069%, 4/25/2000 - 6/21/2000 63,814,472 30,000,000 Edison Asset Securitization LLC, 5.984%, 4/25/2000 29,587,700 125,594,000 Falcon Asset Securitization Corp., 5.699% - 5.746%, 2/1/2000 - 2/17/2000 125,379,996 28,805,000 Fountain Square Commercial Funding Corp., (Fifth Third Bank, Cincinnati SA), 5.749% - 5.956%, 2/22/2000 - 4/24/2000 28,549,050 61,595,000 Greenwich Funding Corp., 5.119% - 5.938%, 2/1/2000 - 4/11/2000 61,365,832 238,682,000 Market Street Funding Corp., (PNC Bank, N.A. LOC), 5.739% - 5.849%, 2/22/2000 - 3/6/2000 237,760,595 30,000,000 PREFCO-Preferred Receivables Funding Co., 5.789%, 3/7/2000 29,832,292 47,000,000 Park Avenue Receivables Corp., 5.741%, 2/25/2000 46,821,400 75,000,000 Receivables Capital Corp., 5.707% - 5.937%, 2/8/2000 - 2/9/2000 74,911,569 30,000,000 Svenska Handelsbanken, Inc., (Guaranteed by Svenska Handelsbanken, Stockholm), 5.928%, 4/12/2000 29,654,467 117,398,000 Three Rivers Funding Corp., 5.701% - 5.756%, 2/11/2000 - 2/22/2000 117,150,086 25,000,000 Westpac Capital Corp., (Guaranteed by Westpac Banking Corp. Ltd., Sydney), 5.967%, 5/2/2000 24,633,472 50,000,000 Westpac Trust Securities NZ Ltd., (Guaranteed by Westpac Banking Corp. Ltd., Sydney), 5.936%, 4/25/2000 49,317,500 TOTAL 1,215,613,930 BROKERAGE-1.9% 90,000,000 Morgan Stanley, Dean Witter & Co., 5.927% - 5.942%, 4/17/2000 - 4/24/2000 88,832,778 CONSUMER PRODUCTS-2.3% 108,000,000 Diageo Capital PLC, (Guaranteed by Diageo PLC), 5.919% - 6.008%, 3/1/2000 - 4/11/2000 107,166,751 PRINCIPAL AMOUNT VALUE COMMERCIAL PAPER-continued 2 FINANCE - AUTOMOTIVE-0.4% $ 20,000,000 General Motors Acceptance Corp., 5.459%, 3/6/2000 $ 19,900,833 FINANCE - COMMERCIAL-6.3% 65,000,000 CIT Group Holdings, Inc., 5.811%, 2/1/2000 65,000,000 30,000,000 Eureka Securitization, Inc., 5.701%, 2/14/2000 29,938,575 42,500,000 GE Capital International Funding, Inc., (Guaranteed by General Electric Capital Corp.), 5.994% - 6.093%, 3/9/2000 - 4/11/2000 42,053,999 140,000,000 General Electric Capital Corp., 5.917% - 6.032%, 2/25/2000 - 5/12/2000 138,259,428 25,000,000 Sigma Finance, Corp., (Guaranteed by Sigma Finance Corp.), 5.717% - 5.959%, 2/4/2000 - 4/14/2000 24,816,829 TOTAL 300,068,831 FINANCE - RETAIL-0.3% 15,000,000 CommoLoCo, Inc., (Guaranteed by American General Finance Corp.), 6.104%, 3/9/2000 14,907,963 INSURANCE-9.2% 200,000,000 Aspen Funding Corp., (Insured by MBIA), 5.757%, 2/17/2000 199,490,667 54,300,000 CXC, Inc., 5.927% - 5.980%, 2/2/2000 - 4/10/2000 53,863,333 60,000,000 Marsh USA, Inc., 5.754% - 6.040%, 2/16/2000 - 7/28/2000 59,465,567 125,430,000 Sheffield Receivables Corp., 5.758% - 6.023%, 2/11/2000 - 2/28/2000 125,026,814 TOTAL 437,846,381 TOTAL COMMERCIAL PAPER 2,184,337,467 LOAN PARTICIPATION-3.9% ELECTRICAL EQUIPMENT-0.4% 16,700,000 Mt. Vernon Phenol Plant Partnership, (Guaranteed by General Electric Co.), 6.120%, 5/17/2000 16,700,000 FINANCE - AUTOMOTIVE-2.5% 120,000,000 General Motors Acceptance Corp., Mortgage of PA, (Guaranteed by General Motors Acceptance Corp.), 5.620% - 6.863%, 2/3/2000 - 3/15/2000 120,000,000 FINANCE - EQUIPMENT-1.0% 50,000,000 Pitney Bowes Credit Corp., 5.809%, 2/10/2000 49,927,750 TOTAL LOAN PARTICIPATION 186,627,750 PRINCIPAL AMOUNT VALUE VARIABLE RATE OBLIGATIONS- 22.6% 3 BANKING-10.2% $ 2,000,000 Albuquerque, NM, Series 1997 El Canto, Inc., (Norwest Bank Minnesota, N.A. LOC), 6.290%, 2/3/2000 $ 2,000,000 46,000,000 Asset Securitization Cooperative Corp., 5.831% - 5.903%, 2/7/2000 - 2/14/2000 45,999,580 1,600,000 Beech Grove, IN, Series 1997, Poster Display Co. Project, (Bank One, Indiana, N.A. LOC), 5.940%, 2/3/2000 1,600,000 1,925,000 C. W. Caldwell, Inc., Sweetbriar Assisted Living Facility, Project, (Huntington National Bank, Columbus, OH LOC), 5.89%, 2/3/2000 1,925,000 5,500,000 Capital One Funding Corp., Series 1993-A, (Bank One, Ohio N.A. LOC), 5.940%, 2/3/2000 5,500,000 21,270,000 Capital One Funding Corp., Series 1999-A, (Bank One, Kentucky LOC), 5.940%, 2/3/2000 21,270,000 2,845,000 Casna LP, Series 1997, (Huntington National Bank, Columbus, OH LOC), 5.980%, 2/3/2000 2,845,000 9,965,000 Cedarville College OH, Series 1998, (KeyBank, N.A. LOC), 6.100%, 2/3/2000 9,965,000 4,515,000 Chartiers Valley Industrial & Commercial Development Authority, Woodhaven Convalescent Center, Series 1997-B, (Bank One, Ohio, N.A. LOC), 5.980%, 2/3/2000 4,515,000 1,440,000 Children's Defense Fund, (Allfirst LOC), 5.960%, 2/1/2000 1,440,000 5,715,000 Colonie, NY IDA, Mechanical Technology, Inc. Project, Series 1998 A, (KeyBank, N.A. LOC), 5.900%, 2/3/2000 5,715,000 56,000,000 Comerica Bank, 5.791% - 5.864%, 2/9/2000 - 2/25/2000 55,974,616 9,000,000 Comerica Bank, 5.864%, 2/25/2000 8,995,989 10,150,000 Cuyahoga County, OH, Gateway Arena Project, Series 1992-B, (Canadian Imperial Bank of Commerce LOC), 5.940%, 2/2/2000 10,150,000 9,450,000 Elsinore Properties, LP, Series 1999, (Fifth Third Bank, Cincinnati LOC), 5.830%, 2/3/2000 9,450,000 1,020,000 Flowform, Inc., (Huntington National Bank, Columbus, OH LOC), 5.980%, 2/3/2000 1,020,000 4,000,000 Frank Parsons Paper Co., Inc., Series 1999, (Allfirst LOC), 5.871%, 2/4/2000 4,000,000 6,580,000 Franklin County, OH, Edison Welding, Series 1995, (Huntington National Bank, Columbus, OH LOC), 5.980%, 2/3/2000 6,580,000 11,730,000 Georgetown, KY Educational Institution, Series 1997- A, (Bank One, Kentucky LOC), 5.940%, 2/3/2000 11,730,000 4,130,000 Georgia Ports Authority, Colonel's Island Terminal Project, Series 1996-A, Revenue Bonds, (SunTrust Bank, Atlanta LOC), 5.850%, 2/2/2000 4,130,000 1,380,000 Gerald T. Thom, Trustee U.A.D., March 27, 1997, (Huntington National Bank, Columbus, OH LOC), 5.980%, 2/3/2000 1,380,000 PRINCIPAL AMOUNT VALUE VARIABLE RATE OBLIGATIONS- continued 3 BANKING-CONTINUED $ 1,480,000 Gettysburg Area IDA, Hanover Lantern, Inc. Project, Series 1998-B, (Allfirst LOC), 5.860%, 2/2/2000 $ 1,480,000 11,180,000 Healthcare Network Properties LLC, Series A, (National City Bank, Michigan/Illinois LOC), 5.790%, 2/3/2000 11,180,000 8,400,000 IT Spring Wire LLC, Series 1997, (Fifth Third Bank, Cincinnati LOC), 5.820%, 2/3/2000 8,400,000 3,877,000 International Processing Corp., (Bank One, Kentucky LOC), 5.990%, 2/3/2000 3,877,000 2,000,000 Kit Carson County, CO, Midwest Farms LLC Project, (Norwest Bank Minnesota, N.A. LOC), 5.950%, 2/2/2000 2,000,000 6,000,000 La Verne City, IDA, Mobile Tool International, Inc. Project, Series 1998-B, (Fleet Bank N.A. LOC), 5.870%, 2/3/2000 6,000,000 54,724,185 Liquid Asset Backed Securities Trust, Series 1997-1, (Westdeutsche Landesbank Girozentrale Swap Agreement), 5.793%, 2/15/2000 54,724,185 7,730,000 Lombard IL, Multifamily Housing, MHRV, Series 1999, Clover Creek Apartments (Bank One, Arizona N.A. LOC), 5.98%, 2/3/2000 7,730,000 32,670,000 M/S Land, LLC, (Bank One, Illinois, N.A. LOC), 5.99%, 2/3/2000 32,670,000 5,900,000 MMR Funding I, Series A, (Bayerische Hypotheken-und Vereinsbank AG LOC), 5.94%, 2/3/2000 5,900,000 4,375,000 Maryland EDC, Human Genome Sciences, Series 1999A, (Allfirst LOC), 5.86%, 2/1/2000 4,375,000 13,125,000 Maryland EDC, Human Genome Sciences, Series 1999B, (First Union National Bank, Charlotte, NC LOC), 5.86%, 2/1/2000 13,125,000 4,770,000 Medilodge Group, Meadowbrook Project, (KeyBank, N.A. LOC), 6.03%, 2/3/2000 4,770,000 1,280,000 Michigan State Housing Development Authority, Series 1999B, Lexington Place Apartments, (Bank of America, N.A. LOC), 5.78%, 2/3/2000 1,280,000 10,000,000 Mississippi Business Finance Corp., Kohler Co. Project, (Wachovia Bank of NC, N.A. LOC), 5.80%, 2/3/2000 10,000,000 2,990,000 New Berlin, WI, Sunraider LLC, Series 1997-B, (Bank One, Wisconsin, N.A. LOC), 5.98%, 2/3/2000 2,990,000 4,100,000 New Jersey EDA, Morey Organization, Inc. Project Series 1997, (First Union National Bank, Charlotte, NC LOC), 5.91%, 2/2/2000 4,100,000 2,565,000 New Jersey EDA, Phoenix Realty Partners, (First Union National Bank, Charlotte, NC LOC), 5.910%, 2/2/2000 2,565,000 9,130,000 O.K.I. Supply Co., Series 1998, (Fifth Third Bank, Cincinnati LOC), 5.83%, 2/3/2000 9,130,000 3,325,000 Oakwoods Master LP, Series 1997, (Amsouth Bank N.A., Birmingham LOC), 6.16%, 2/3/2000 3,325,000 3,525,000 Olszeski Properties, Inc., Series 1988, (Bank One, Ohio, N.A. LOC), 6.03%, 2/3/2000 3,525,000 10,000,000 Park Avenue Receivables Corp., 5.475%, 2/3/2000 10,000,000 PRINCIPAL AMOUNT VALUE VARIABLE RATE OBLIGATIONS- continued 3 BANKING-CONTINUED $ 1,000,000 Poseyville, IN, North American Green, Series 1999, (Fifth Third Bank, Cincinnati LOC), 6.04%, 2/3/2000 $ 1,000,000 4,033,000 Primex Funding Corp., Series 1997-A, (Bank One, Indiana, N.A. LOC), 5.94%, 2/3/2000 4,033,000 1,776,912 1 Rabobank Optional Redemption Trust, Series 1997-101, 6.186%, 4/20/2000 1,776,912 9,635,000 Royal Wine Corp. and KFP International Ltd., Series 1998, (KeyBank, N.A. LOC), 6.10%, 2/3/2000 9,635,000 7,000,000 Sandridge Food Corp., (Bank One, Ohio, N.A. LOC), 5.99%, 2/3/2000 7,000,000 9,600,000 Smith Land Improvement Corp., Series 1999, (Allfirst LOC), 5.860%, 2/1/2000 9,600,000 3,810,000 Solon Properties LLC, (Huntington National Bank, Columbus, OH LOC), 5.98%, 2/3/2000 3,810,000 2,130,000 Spitzer Group, Series 1998-C, (Bank One, Ohio, N.A. LOC), 5.98%, 2/3/2000 2,130,000 1,100,000 TDB Realty Ltd., (Huntington National Bank, Columbus, OH LOC), 5.98%, 2/3/2000 1,100,000 2,160,000 Tallahassee-Leon County Civic Center Authority, Series 1998-C, (SunTrust Bank, Central Florida LOC), 5.85%, 2/2/2000 2,160,000 3,280,000 Team Rahal of Pittsburgh, Inc., Series 1997, (Huntington National Bank, Columbus, OH LOC), 5.98%, 2/3/2000 3,280,000 10,000,000 Three Rivers Funding Corp., 5.88%, 2/1/2000 10,000,000 2,050,000 Trap Rock Industries, Inc., Series 1997, (First Union National Bank, Charlotte, NC LOC), 5.91%, 2/2/2000 2,050,000 885,000 Triple O LLC, Series 1999, (Huntington National Bank, Columbus, OH LOC), 6.03%, 2/3/2000 885,000 5,565,000 VLF LLC, The Village of Lovejoy, Fountain Project, (KeyBank, N.A. LOC), 6.10%, 2/3/2000 5,565,000 2,715,000 Van Wyk Enterprises, Inc., (Huntington National Bank, Columbus, OH LOC), 5.98%, 2/3/2000 2,715,000 10,000,000 Wildcat Management Ltd., Inc., Series 1999, (Firstar Bank, N.A., Cincinnati LOC), 5.90%, 2/3/2000 10,000,000 TOTAL 487,075,293 BROKERAGE-2.5% 117,600,000 Morgan Stanley, Dean Witter & Co., 5.83%, 2/4/2000 117,600,000 FINANCE - AUTOMOTIVE-1.9% 88,800,000 General Motors Acceptance Corp., Mortgage of PA, (General Motors Acceptance Corp. LOC), 5.83% - 5.924%, 3/7/2000 88,442,874 FINANCE - COMMERCIAL-1.4% 68,800,000 Sigma Finance, Inc., (Guaranteed by Sigma Finance Corp.), 5.83% - 6.296%, 2/1/2000 - 3/28/2000 68,800,000 PRINCIPAL AMOUNT VALUE VARIABLE RATE OBLIGATIONS- continued 3 FINANCE - EQUIPMENT-0.2% $ 9,000,000 Deere (John) Capital Corp., 6.23%, 2/1/2000 $ 9,001,452 INSURANCE-6.4% 24,000,000 Allstate Life Insurance Co., 6.113% - 6.616%, 2/1/2000 24,000,000 27,000,000 First Allmerica Financial Life Insurance Co., 6.306%, 2/3/2000 27,000,000 15,000,000 GE Life and Annuity Assurance Co., 6.20%, 3/1/2000 15,000,000 62,400,000 Jackson National Life Insurance Co., 5.90% - 6.271%, 2/1/2000 - 4/30/2000 62,400,000 15,087,000 1 Liquid Asset Backed Securities Trust, Series 1997-3 Sr. Notes, (AMBAC INS), 6.151%, 2/27/2000 15,087,000 15,835,324 1 Liquid Asset Backed Securities Trust, Sr. Notes (Series 1998-1), (AMBAC INS), 5.819%, 2/27/2000 15,835,324 24,000,000 Peoples Security Life Insurance Co., 5.93% - 6.41%, 2/1/2000 24,000,000 20,000,000 Principal Life Insurance Co., 6.26%, 3/1/2000 20,000,000 15,000,000 Protective Life Insurance Co., 6.355%, 2/1/2000 15,000,000 30,000,000 Security Life of Denver Insurance Co., 6.100% - 6.359%, 2/10/2000 - 3/28/2000 30,000,000 35,000,000 Transamerica Life Insurance and Annuity Co., 6.094%, 3/1/2000 - 4/1/2000 35,000,000 10,000,000 Transamerica Occidental Life Insurance Co., 6.329%, 2/29/2000 10,000,000 10,000,000 Travelers Insurance Co., 6.094%, 3/1/2000 10,000,000 TOTAL 303,322,324 TOTAL VARIABLE RATE OBLIGATIONS 1,074,241,943 TIME DEPOSIT-4.2% BANKING-4.2% 200,000,000 SunTrust Bank, Atlanta, 5.875%, 2/1/2000 200,000,000 REPURCHASE AGREEMENTS-8.8% 4 138,100,000 Bank of America, 5.80%, dated 1/31/2000, due 2/1/2000 138,100,000 150,000,000 Deutsche Bank Financial, Inc., 5.80%, dated 1/31/2000, due 2/1/2000 150,000,000 PRINCIPAL AMOUNT VALUE REPURCHASE AGREEMENTS- continued 4 $ 56,200,000 Donaldson, Lufkin and Jenrette Securities Corp., 5.70%, dated 1/31/2000, due 2/1/2000 $ 56,200,000 75,000,000 Toronto Dominion Securities (USA), Inc., 5.69%, dated 1/31/2000, due 2/1/2000 75,000,000 TOTAL REPURCHASE AGREEMENTS 419,300,000 TOTAL INVESTMENTS (AT AMORTIZED COST) 5 $ 4,768,354,931
1 Denotes a restricted security that has been deemed liquid by criteria approved by the fund's Board of Trustees. At January 31, 2000, these securities amounted to $32,699,236 which represents 0.69% of net assets. 2 Each issue shows the rate of discount at the time of purchase for discount issues, or the coupon for interest bearing issues. 3 Current rate and next reset date shown. 4 The repurchase agreements are fully collateralized by U.S. government and/or agency obligations based on market prices at the date of the portfolio. The investments in the repurchase agreements are through participation in joint accounts with other Federated funds. 5 Also represents cost for federal tax purposes. Note: The categories of investments are shown as a percentage of net assets ($4,747,906,186) at January 31, 2000. The following acronyms are used throughout this portfolio: AMBAC -American Municipal Bond Assurance Corporation EDA -Economic Development Authority EDC -Economic Development Corp. IDA -Industrial Development Authority INS -Insured LOC -Letter of Credit MBIA -Municipal Bond Investors Assurance See Notes which are an integral part of the Financial Statements Portfolio of Investments Prime Value Obligations Fund JANUARY 31, 2000 (UNAUDITED)
PRINCIPAL AMOUNT VALUE SHORT-TERM NOTES-8.6% BANKING-0.9% $ 15,000,000 Bank One, Illinois, N.A., 6.025% - 6.070%, 10/10/2000 - 11/13/2000 $ 14,993,288 5,000,000 Westpac Banking Capital Corp. Ltd., Sydney, 6.220%, 11/30/2000 4,996,792 TOTAL 19,990,080 BROKERAGE-2.2% 50,000,000 Goldman Sachs Group, Inc., 5.900% - 6.00%, 3/14/2000 - 3/24/2000 50,000,000 FINANCE - COMMERCIAL-5.3% 95,500,000 Beta Finance, Inc., 5.000% - 5.700%, 2/1/2000 - 6/28/2000 95,499,226 9,000,000 FINOVA Capital Corp., 6.170% - 6.45%, 6/1/2000 - 6/12/2000 9,006,460 18,000,000 Sigma Finance, Inc., 6.000% - 6.780%, 8/11/2000 - 2/28/2001 18,000,000 TOTAL 122,505,686 FINANCE - EQUIPMENT-0.2% 5,227,804 Copelco Capital Funding LLC, Series 1999-B, Class A-1, 5.937%, 10/18/2000 5,227,804 105,275 Heller Equipment Asset Receivables Trust, Series 1999-1, Class A1, 4.948%, 5/13/2000 105,275 TOTAL 5,333,079 INSURANCE-0.0% 5,500 Americredit Automobile Receivables Trust, Series 2000-A, Class A1, 6.040%, 2/5/2001 5,500 TOTAL SHORT-TERM NOTES 197,834,345 CERTIFICATES OF DEPOSIT- 14.9% BANKING-14.9% 15,000,000 Bank of Nova Scotia, Toronto, 5.290%, 3/9/2000 14,999,415 25,000,000 Bank of Scotland, Edinburgh, 5.950%, 4/12/2000 24,999,952 50,000,000 Bank One, Illinois, N.A., 6.030%, 11/13/2000 49,971,934 10,000,000 Bayerische Landesbank Girozentrale, 5.150%, 3/21/2000 9,999,549 25,000,000 Canadian Imperial Bank of Commerce, 5.160% - 5.340%, 2/23/2000 - 3/21/2000 24,999,080 20,000,000 Commerzbank AG, Frankfurt, 5.290%, 5/15/2000 19,997,259 30,000,000 Halifax PLC, 5.900%, 3/31/2000 30,000,000 121,000,000 MBNA America Bank, N.A., 6.000% - 6.030%, 4/12/2000 - 4/19/2000 121,000,000 50,000,000 Svenska Handelsbanken, Stockholm, 5.180%, 3/20/2000 49,998,100 TOTAL CERTIFICATES OF DEPOSIT 345,965,289 PRINCIPAL AMOUNT VALUE BANKING-12.1% $ 28,000,000 Abbey National N.A. Corp., (Guaranteed by Abbey National Bank PLC, London), 5.906%, 4/25/2000 $ 27,619,760 20,000,000 Australia & New Zealand ANZ, Inc., (Guaranteed by Australia & New Zealand Banking Group, Melbourne), 5.928%, 4/12/2000 19,769,644 71,000,000 Cregem North America, Inc., (Guaranteed by Credit Communal de Belgique, Brussels), 5.920% - 6.020%, 2/14/2000 - 2/18/2000 70,829,760 24,000,000 Den Danske Corp., Inc., (Guaranteed by Den Danske Bank A/S), 6.007% - 6.069%, 5/31/2000 - 6/21/2000 23,460,100 43,594,000 Gotham Funding Corp., 5.718% - 5.786%, 2/2/2000 - 2/15/2000 43,533,411 50,000,000 Market Street Funding Corp., (PNC Bank, N.A. LOC), 5.750%, 2/23/2000 49,825,222 10,000,000 Svenska Handelsbanken, Inc., (Guaranteed by Svenska Handelsbanken, Stockholm), 5.928%, 4/12/2000 9,884,822 37,000,000 Westpac Capital Corp., (Guaranteed by Westpac Banking Corp. Ltd., Sydney), 5.967%, 5/2/2000 36,457,539 TOTAL 281,380,258 BROKERAGE-2.7% 32,000,000 Goldman Sachs Group, Inc., 5.935%, 4/28/2000 31,547,600 10,000,000 Morgan Stanley, Dean Witter & Co., 5.927%, 4/24/2000 9,865,356 21,000,000 Salomon Smith Barney Holdings, Inc., 5.922%, 4/3/2000 20,788,425 TOTAL 62,201,381 CHEMICALS-0.8% 6,955,000 IMC Global, Inc., 6.454%, 2/7/2000 6,947,639 10,516,000 Rohm & Haas Co., 6.347% - 6.475%, 2/4/2000 10,510,473 TOTAL 17,458,112 CONTAINER/PACKAGING-0.3% 7,300,000 Crown Cork & Seal Co., Inc., 5.846% - 5.858%, 2/15/2000 - 2/24/2000 7,279,094 FINANCE - COMMERCIAL-10.9% 20,000,000 Corporate Asset Funding Co., Inc., 5.808%, 3/22/2000 19,840,278 20,000,000 Edison Asset Securitization LLC, 6.003%, 5/15/2000 19,659,111 41,135,000 Falcon Asset Securitization Corp., 5.697% - 5.750%, 2/10/2000 - 2/22/2000 41,007,601 50,000,000 General Electric Capital Corp., 5.917% - 6.032%, 2/25/2000 - 3/10/2000 49,759,156 83,013,000 Receivables Capital Corp., 5.937% - 5.981%, 2/8/2000 - 4/20/2000 82,528,698 41,000,000 Sigma Finance, Inc., (Guaranteed by Sigma Finance Corp.), 5.941% - 5.941%, 4/3/2000 - 5/10/2000 40,363,871 TOTAL 253,158,715 PRINCIPAL AMOUNT VALUE COMMERCIAL PAPER-continued 2 HOMEBUILDING-0.5% $ 11,700,000 Centex Corp., 5.801% - 5.832%, 2/2/2000 - 2/10/2000 $ 11,689,740 INDUSTRIAL PRODUCTS-0.5% 11,160,000 Praxair, Inc., 6.421%, 2/1/2000 11,160,000 INSURANCE-5.4% 37,000,000 CXC, Inc., 5.947%, 4/7/2000 36,601,818 87,860,000 Sheffield Receivables Corp., 5.707% - 6.022%, 2/2/2000 - 2/22/2000 87,733,696 TOTAL 124,335,514 RETAIL-1.0% 24,053,000 Safeway, Inc., 5.799% - 5.820%, 2/3/2000 - 2/9/2000 24,036,557 TOTAL COMMERCIAL PAPER 792,699,371 NOTES - VARIABLE-28.9% 2 BANKING-11.8% 9,410,000 500 South Front St. LP, Series A, (Huntington National Bank, Columbus, OH LOC), 5.980%, 2/3/2000 9,410,000 5,075,000 500 South Front St. LP, Series B, (Huntington National Bank, Columbus, OH LOC), 5.980%, 2/3/2000 5,075,000 1,112,500 Alabama State IDA, (Nichols Research Corp.), (SouthTrust Bank of Alabama, Birmingham LOC), 6.090%, 2/4/2000 1,112,500 16,900,000 Beverly California Corp., (PNC Bank, N.A. LOC), 5.810%, 2/7/2000 16,900,000 16,385,000 Beverly Hills Nursing Center, Inc., Medilodge Project Series 1996, (KeyBank, N.A. LOC), 6.030%, 2/3/2000 16,385,000 1,725,000 Bissett, William K. and Sheryl B., Multi-Option Adjustable Rate Notes, (Huntington National Bank, Columbus, OH LOC), 5.980%, 2/3/2000 1,725,000 6,000,000 Bond Holdings LP, (SouthTrust Bank of Alabama, Birmingham LOC), 5.930%, 2/4/2000 6,000,000 6,715,000 Briarwood LP, Briarwood Ltd. Partnership Project Series 1999, (Bank One, Ohio, N.A. LOC), 6.040%, 2/3/2000 6,715,000 9,826,000 Capital One Funding Corp., Series 1999-B, (Bank One, Ohio, N.A. LOC), 5.940%, 2/3/2000 9,826,000 480,000 Carmel, IN, Telamon Corp., Series 1996-C, (Huntington National Bank, Columbus, OH LOC), 6.080%, 2/3/2000 480,000 930,000 Carmel, IN, Telamon Corp., Series A, (Huntington National Bank, Columbus, OH LOC), 6.080%, 2/3/2000 930,000 1,005,000 Carmel, IN, Telamon Corp., Series B, (Huntington National Bank, Columbus, OH LOC), 6.080%, 2/3/2000 1,005,000 900,000 Colorado Health Facilities Authority, Series B, (Bank One, Colorado LOC), 6.030%, 2/3/2000 900,000 36,900,000 Comerica Bank, 5.791% - 5.864%, 9/25/2000 - 11/9/2000 36,883,292 PRINCIPAL AMOUNT VALUE NOTES - VARIABLE-continued 2 BANKING-CONTINUED $ 1,900,000 Continental Downtown Properties, (Huntington National Bank, Columbus, OH LOC), 5.980%, 2/3/2000 $ 1,900,000 5,795,000 Dellridge Care Center LP, Series 1997, (Allfirst LOC), 5.860%, 2/2/2000 5,795,000 3,445,000 Denver Urban Renewal Authority, Series 1992-B, (Paribas, Paris LOC), 5.880%, 2/3/2000 3,445,000 9,445,000 ERC Real Estate LLC, (KeyBank, N.A. LOC), 6.100%, 2/3/2000 9,445,000 4,000,000 Frank Parsons Paper Co., Inc., Series 1999, (Allfirst LOC), 5.871%, 2/4/2000 4,000,000 5,000,000 Greene County Development Authority, Reynolds Lodges LLC, Series 1999-A, (Firstar Bank, N.A., Cincinnati LOC), 5.900%, 2/2/2000 5,000,000 5,000,000 Industrial Dimensions, Inc., Series 1999, (Fifth Third Bank of Northwestern OH LOC), 5.830%, 2/3/2000 5,000,000 8,123,000 International Processing Corp., (Bank One, Kentucky LOC), 5.990%, 2/3/2000 8,123,000 2,000,000 Jeffersonville, IN, Series 1997-B, Wayne Steel, Inc., (Bank One, Ohio, N.A. LOC), 5.940%, 2/3/2000 2,000,000 5,500,000 Kenwood Country Club, Inc., Series 1999, (Firstar Bank, N.A., Cincinnati LOC), 5.900%, 2/3/2000 5,500,000 4,000,000 Lake Sherwood Senior Living Center LLC, (Union Planters NB, Memphis, TN LOC), 6.290%, 2/3/2000 4,000,000 1,425,000 Lincoln Park Associates Ltd. (Bank One, N.A. LOC), 5.980%, 2/3/2000 1,425,000 2,000,000 Liquid Asset Backed Securities Trust, Series 1996-3, (Westdeutsche Landesbank Girozentrale Swap Agreement), 5.801%, 2/15/2000 2,000,000 9,657,209 Liquid Asset Backed Securities Trust, Series 1997-1, (Westdeutsche Landesbank Girozentrale Swap Agreement), 5.793%, 2/15/2000 9,657,209 9,052,209 3 Liquid Asset Backed Securities Trust, Series 1997-3, Sr. Notes, (AMBAC INS), 6.151%, 3/28/2000 9,052,209 6,686,026 3 Liquid Asset Backed Securities Trust, Series 1998-1, Sr. Notes, (AMBAC INS), 5.819%, 2/25/2000 6,686,026 5,000,000 Maryland Industrial Development Financing Authority, Gen-Vec, Inc. Facility, Series 1999, (Allfirst LOC), 5.870%, 2/4/2000 5,000,000 4,100,000 Melberger, Clifford K. and Ruth B., (PNC Bank, N.A. LOC), 5.810%, 2/7/2000 4,100,000 9,500,000 Park Avenue Receivables Corp., 5.475%, 2/3/2000 9,500,000 6,860,000 Pine Ridge Associates Ltd., (Mellon Bank N.A., Pittsburgh LOC), 6.050%, 2/2/2000 6,860,000 7,055,000 Rubloff-Rockford LLC, Series 1997, (National City Bank, Michigan/Illinois LOC), 5.860%, 2/2/2000 7,055,000 15,640,000 Scranton Times LP, Series 1997, (PNC Bank, N.A. LOC), 5.810% 2/7/2000 15,640,000 2,690,000 Solon, OH, IDRB Schneps Family LP, (Bank One, Ohio, N.A. LOC), 5.940%, 2/3/2000 2,690,000 7,520,000 Southern Coil Processing, Inc. Notes, (AmSouth Bank N.A., Birmingham LOC), 5.850%, 2/3/2000 7,520,000 PRINCIPAL AMOUNT VALUE NOTES - VARIABLE-continued 2 BANKING-CONTINUED $ 1,640,000 Team Rahal of Mechanicsburg, Inc., Series 1997, (Huntington National Bank, Columbus, OH LOC), 5.980%, 2/3/2000 $ 1,640,000 1,795,000 Team Rahal, Inc., Series 1997, (Huntington National Bank, Columbus, OH LOC), 5.980%, 2/3/2000 1,795,000 5,000,000 Three Rivers Funding Corp., 5.880%, 2/17/2000 5,000,000 7,300,000 Tift County, GA Development Authority, Chickasha of Georgia Project Series 1997, (Bank of Tokyo-Mitsubishi Ltd. LOC), 6.000%, 2/2/2000 7,300,000 1,700,000 Village Green Finance Co., LLC, Series 1997, (Wachovia Bank of NC, N.A. Winston-Salem LOC), 5.820%, 2/2/2000 1,700,000 1,240,000 Vista Funding Corp., Series 1995-A, (Firstar Bank, N.A., Cincinnati LOC), 6.100%, 2/3/2000 1,240,000 TOTAL 273,415,236 BROKERAGE-3.6% 84,000,000 Morgan Stanley, Dean Witter & Co., 5.830 - 5.880%, 2/4/2000 84,000,000 FINANCE - AUTOMOTIVE-1.8% 42,000,000 General Motors Acceptance Corp., 5.830%, 3/7/2000 42,000,000 FINANCE - COMMERCIAL-3.7% 25,000,000 Asset Securitization Cooperative Corp., 5.831% - 5.903%, 2/14/2000 - 3/7/2000 24,999,772 60,200,000 Sigma Finance, Inc., (Guaranteed by Sigma Finance Corp.), 6.000% - 6.158%, 2/29/2000 - 3/22/2000 60,200,000 TOTAL 85,199,772 FINANCE - EQUIPMENT-0.7% 10,000,000 Comdisco, Inc., 6.656%, 2/29/2000 10,000,000 5,000,000 Deere (John) Capital Corp., 6.074%, 2/1/2000 5,000,807 TOTAL 15,000,807 FINANCE - RETAIL-0.3% 8,000,000 AFS Insurance Premium Receivables Trust, Series 1994-A, 7.019%, 2/15/2000 8,000,000 HOMEBUILDING-0.4% 8,900,000 Centex Corp., 6.540%, 4/27/2000 8,900,000 INSURANCE-6.6% 12,000,000 Allstate Life Insurance Co., 6.616%, 2/1/2000 12,000,000 22,500,000 First Allmerica Financial Life Insurance Co., 6.306%, 2/1/2000 22,500,000 5,000,000 GE Life and Annuity Assurance Co., 6.200%, 2/1/2000 5,000,000 30,000,000 Jackson National Life Insurance Co., 5.900% - 6.160%, 2/1/2000 - 2/22/2000 30,000,000 25,000,000 Monumental Life Insurance Co., 158, 6.180%, 2/6/2000 25,000,000 15,000,000 Principal Life Insurance Co., 6.260%, 3/1/2000 15,000,000 PRINCIPAL AMOUNT VALUE NOTES - VARIABLE-continued 2 INSURANCE-CONTINUED $ 13,000,000 Protective Life Insurance Co., 6.200%, 2/1/2000 $ 13,000,000 15,000,000 Security Life of Denver Insurance Co., 6.100%, 4/28/2000 15,000,000 10,000,000 Transamerica Life Insurance and Annuity Co., 6.094%, 2/1/2000 - 4/1/2000 10,000,000 5,000,000 Transamerica Occidental Life Insurance Co., 6.329%, 2/29/2000 5,000,000 TOTAL 152,500,000 TOTAL NOTES - VARIABLE 669,015,815 LOAN PARTICIPATION-4.0% CHEMICALS-2.2% 7,500,000 DuPont Teijin Films U.K. Ltd., (Guaranteed by Du Pont (E.I.) de Nemours & Co.), 6.000%, 2/22/2000 7,500,000 43,000,000 Teijin DuPont Films, (Guaranteed by Du Pont (E.I.) de Nemours & Co.), 6.000% - 6.100%, 2/29/2000 - 3/29/2000 43,000,000 TOTAL 50,500,000 ELECTRICAL EQUIPMENT-0.5% 12,100,000 Mt. Vernon Phenol Plant Partnership, (Guaranteed by General Electric Co.), 6.120%, 5/17/2000 12,100,000 FINANCE - AUTOMOTIVE-0.2% 6,000,000 General Motors Acceptance Corp., Mortgage of PA, (Guaranteed by General Motors Acceptance Corp.), 6.210%, 2/1/2000 6,000,000 FINANCE - EQUIPMENT-1.1% 25,000,000 Pitney Bowes Credit Corp., 5.809%, 2/10/2000 24,963,875 TOTAL LOAN PARTICIPATION 93,563,875 TIME DEPOSIT-2.2% BANKING-2.2% 50,000,000 Societe Generale, Paris, 5.813%, 2/1/2000 50,000,000 PRINCIPAL AMOUNT VALUE REPURCHASE AGREEMENTS-7.5% 4 $ 49,500,000 Bank of America, 5.800%, dated 1/31/2000, due 2/1/2000 $ 49,500,000 75,000,000 Deutsche Bank Financial, Inc., 5.800%, dated 1/31/2000, due 2/1/2000 75,000,000 23,300,000 Donaldson, Lufkin and Jenrette Securities Corp., 5.700%, dated 1/31/2000, due 2/1/2000 23,300,000 25,000,000 Toronto Dominion Securities (USA), Inc., 5.690%, dated 1/31/2000, due 2/1/2000 25,000,000 TOTAL REPURCHASE AGREEMENTS 172,800,000 TOTAL INVESTMENTS (AT AMORTIZED COST) 5 $ 2,321,878,695
1 Each issue shows the rate of discount at the time of purchase for discount issues, or the coupon for interest bearing issues. 2 Current rate and next reset date shown. 3 Denotes a restricted security which is subject to restrictions on resale under federal securities laws. These securities have been deemed liquid based upon criteria approved by the fund's Board of Trustees. At January 31, 2000, these securities amounted to $15,738,235 which represents 0.7% of net assets. 4 The repurchase agreements are fully collateralized by U.S. government and/or agency obligations based on market prices at the date of the portfolio. The investments in the repurchase agreements are through participation in joint accounts with other Federated funds. 5 Also represents cost for federal tax purposes. Note: The categories of investments are shown as a percentage of net assets ($2,316,019,703) at January 31, 2000. The following acronyms are used throughout this portfolio: AMBAC -American Municipal Bond Assurance Corporation IDA -Industrial Development Authority IDRB -Industrial Development Revenue Bond INS -Insured LOC -Letter of Credit See Notes which are an integral part of the Financial Statements Statements of Assets and Liabilities JANUARY 31, 2000 (UNAUDITED)
MUNICIPAL PRIME CASH PRIME VALUE OBLIGATIONS OBLIGATIONS OBLIGATIONS FUND FUND FUND ASSETS: Total investments in securities, at amortized cost and value $ 600,102,821 $ 4,768,354,931 $ 2,321,878,695 Cash 3,953 - - Income receivable 3,753,169 22,889,897 17,367,919 TOTAL ASSETS 603,859,943 4,791,244,828 2,339,246,614 LIABILITIES: Payable for investments purchased - 23,000,000 13,005,500 Payable for shares redeemed - - 119,958 Income distribution payable 1,669,061 19,935,135 9,917,589 Accrued expenses 62,793 403,507 183,864 TOTAL LIABILITIES 1,731,854 43,338,642 23,226,911 TOTAL NET ASSETS $ 602,128,089 $ 4,747,906,186 $ 2,316,019,703 NET ASSETS: Institutional Shares $ 385,011,947 $ 3,552,028,420 $ 1,464,772,259 Institutional Service Shares 156,813,788 941,678,879 644,807,473 Institutional Capital Shares 60,302,354 254,198,887 206,439,971 TOTAL NET ASSETS $ 602,128,089 $ 4,747,906,186 $ 2,316,019,703 SHARES OUTSTANDING: Institutional Shares 385,011,947 3,552,028,420 1,464,772,259 Institutional Service Shares 156,813,788 941,678,879 644,807,473 Institutional Capital Shares 60,302,354 254,198,887 206,439,971 NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PROCEEDS PER SHARE: Institutional Shares $1.00 $1.00 $1.00 Institutional Service Shares $1.00 $1.00 $1.00 Institutional Capital Shares $1.00 $1.00 $1.00
See Notes which are an integral part of the Financial Statements Statements of Operations SIX MONTHS ENDED JANUARY 31, 2000 (UNAUDITED)
MUNICIPAL PRIME CASH PRIME VALUE OBLIGATIONS OBLIGATIONS OBLIGATIONS FUND FUND FUND INVESTMENT INCOME: Interest $ 11,492,304 $ 110,742,532 $ 63,805,090 EXPENSES: Investment adviser fee 621,635 3,933,700 2,287,798 Administrative personnel and services fee 230,607 1,482,342 862,148 Custodian fees 9,198 127,845 69,790 Transfer and dividend disbursing agent fees and expenses 37,351 63,464 57,131 Directors'/Trustees' fees 3,604 11,801 7,992 Auditing fees 7,518 7,867 5,739 Legal fees 9,480 11,801 4,592 Portfolio accounting fees 63,941 167,182 106,371 Shareholder services fee- Institutional Shares - - 15,623 Shareholder services fee- Institutional Service Shares 129,753 1,263,556 807,577 Shareholder services fee- Institutional Capital Shares 144,269 326,171 331,859 Share registration costs 35,702 27,536 23,192 Printing and postage 12,326 15,735 19,350 Insurance premiums 13,482 100,309 56,189 Miscellaneous 3,914 15,735 12,513 TOTAL EXPENSES 1,322,780 7,555,044 4,667,864 WAIVERS: Waiver of investment adviser fee (467,728) (2,312,353) (1,605,681) Waiver of shareholder services fee-Institutional Shares - - (15,623) Waiver of shareholder services fee-Institutional Capital Shares (86,561) (195,702) (199,115) TOTAL WAIVERS (554,289) (2,508,055) (1,820,419) Net expenses 768,491 5,046,989 2,847,445 Net investment income 10,723,813 105,695,543 60,957,645
See Notes which are an integral part of the Financial Statements Statements of Changes in Net Assets
MUNICIPAL OBLIGATIONS FUND SIX MONTHS ENDED (unaudited) PERIOD ENDED YEAR ENDED JANUARY 31, JULY 31, JANUARY 31, 2000 1999 1 1999 INCREASE (DECREASE) IN NET ASSETS OPERATIONS: Net investment income $ 10,723,813 $ 8,046,126 $ 13,575,634 DISTRIBUTIONS TO SHAREHOLDERS: Distributions from net investment income Institutional Shares (7,009,718) (5,706,072) (9,176,860) Institutional Service Shares (1,728,405) (1,210,234) (2,031,566) Institutional Capital Shares (1,985,690) (1,129,820) (2,367,208) CHANGE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS (10,723,813) (8,046,126) (13,575,634) SHARE TRANSACTIONS: Proceeds from sale of shares 3,627,131,426 3,686,794,227 6,671,442,391 Net asset value of shares issued to shareholders in payment of distributions declared 3,078,152 2,790,181 4,797,681 Cost of shares redeemed (3,563,407,568) (3,640,523,643) (6,466,730,133) CHANGE IN NET ASSETS FROM SHARE TRANSACTIONS 66,802,010 49,060,765 209,509,939 Change in net assets 66,802,010 49,060,765 209,509,939 NET ASSETS: Beginning of period 535,326,079 486,265,314 276,755,375 End of period $ 602,128,089 $ 535,326,079 $ 486,265,314
1 The fund has changed its fiscal year-end from January 31 to July 31. See Notes which are an integral part of the Financial Statements Statements of Changes in Net Assets
PRIME CASH OBLIGATIONS FUND SIX MONTHS ENDED (unaudited) PERIOD ENDED YEAR ENDED JANUARY 31, JULY 31, JANUARY 31, 2000 1999 1 1999 INCREASE (DECREASE) IN NET ASSETS OPERATIONS: Net investment income $ 105,695,543 $ 85,879,759 $ 122,009,606 DISTRIBUTIONS TO SHAREHOLDERS: Distributions from net investment income Institutional Shares (72,721,053) (52,994,564) (73,059,518) Institutional Service Shares (26,072,744) (21,202,105) (36,684,622) Institutional Capital Shares (6,901,746) (11,683,090) (12,265,466) CHANGE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS (105,695,543) (85,879,759) (122,009,606) SHARE TRANSACTIONS: Proceeds from sale of shares 31,955,436,436 24,795,354,445 33,162,916,740 Net asset value of shares issued to shareholders in payment of distributions declared 45,791,699 35,271,569 55,512,391 Cost of shares redeemed (30,387,022,597) (24,647,235,068) (32,428,562,553) CHANGE IN NET ASSETS FROM SHARE TRANSACTIONS 1,614,205,538 183,390,946 789,866,578 Change in net assets 1,614,205,538 183,390,946 789,866,578 NET ASSETS: Beginning of period 3,133,700,648 2,950,309,702 2,160,443,124 End of period $ 4,747,906,186 $ 3,133,700,648 $ 2,950,309,702
1 The fund has changed its fiscal year-end from January 31 to July 31. See Notes which are an integral part of the Financial Statements Statements of Changes in Net Assets
PRIME VALUE OBLIGATIONS FUND SIX MONTHS ENDED (unaudited) PERIOD ENDED YEAR ENDED JANUARY 31, JULY 31, JANUARY 31, 2000 1999 1 1999 INCREASE (DECREASE) IN NET ASSETS OPERATIONS: Net investment income $ 60,957,645 $ 57,197,837 $ 86,540,164 DISTRIBUTIONS TO SHAREHOLDERS: Distributions from net investment income Institutional Shares (37,407,899) (38,874,779) (60,707,164) Institutional Service Shares (16,581,631) (12,570,275) (19,716,305) Institutional Capital Shares (6,968,115) (5,752,783) (6,116,695) CHANGE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS (60,957,645) (57,197,837) (86,540,164) SHARE TRANSACTIONS: Proceeds from sale of shares 17,875,953,483 17,356,187,248 26,516,611,802 Net asset value of shares issued to shareholders in payment of distributions declared 32,277,704 39,241,753 51,764,190 Cost of shares redeemed (17,723,421,217) (17,433,612,169) (25,657,179,044) CHANGE IN NET ASSETS FROM SHARE TRANSACTIONS 184,809,970 (38,183,168) 911,196,948 Change in net assets 184,809,970 (38,183,168) 911,196,948 NET ASSETS: Beginning of period 2,131,209,733 2,169,392,901 1,258,195,953 End of period $ 2,316,019,703 $ 2,131,209,733 $ 2,169,392,901
1 The fund has changed its fiscal year-end from January 31 to July 31. See Notes which are an integral part of the Financial Statements Financial Highlights (FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
NET ASSET DISTRIBUTIONS VALUE, NET FROM NET BEGINNING INVESTMENT INVESTMENT YEAR ENDED JULY 31 OF PERIOD INCOME INCOME MUNICIPAL OBLIGATIONS FUND 1997 3 $1.00 0.03 (0.03) 1998 $1.00 0.04 (0.04) 1999 $1.00 0.03 (0.03) 1999 4 $1.00 0.02 (0.02) 2000 5 $1.00 0.02 (0.02) PRIME CASH OBLIGATIONS FUND 1995 7 $1.00 0.02 (0.02) 1996 $1.00 0.06 (0.06) 1997 3 $1.00 0.05 (0.05) 1998 $1.00 0.05 (0.05) 1999 $1.00 0.05 (0.05) 1999 4 $1.00 0.02 (0.02) 2000 5 $1.00 0.03 (0.03) PRIME VALUE OBLIGATIONS FUND 1997 3 $1.00 0.05 (0.05) 1998 $1.00 0.05 (0.05) 1999 $1.00 0.05 (0.05) 1999 4 $1.00 0.02 (0.02) 2000 5 $1.00 0.03 (0.03)
1 Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. 2 This voluntary expense decrease is reflected in both the expense and net investment income ratios shown. 3 Federated Investment Management Company, formerly Federated Management, became the fund's investment adviser on November 15, 1996. Prior to November 15, 1996, Lehman Brothers Global Asset Management served as the fund's investment adviser. 4 The fund has changed its fiscal year-end from January 31 to July 31. 5 For the six month period ended January 31, 2000. 6 Computed on an annualized basis. 7 Reflects operations for the period from October 6, 1994 (date of initial public investment) to January 31, 1995. See Notes which are an integral part of the Financial Statements
RATIOS TO AVERAGE NET ASSETS NET NET ASSETS, NET ASSET VALUE, INVESTMENT EXPENSE WAIVER/ END OF PERIOD END OF PERIOD TOTAL RETURN 1 EXPENSES INCOME REIMBURSEMENT 2 (000 OMITTED) $1.00 3.42% 0.30% 2.90% 0.35% $ 0.30 $1.00 3.56% 0.30% 3.53% 0.38% 17,701 $1.00 3.40% 0.30% 3.40% 0.31% 114,535 $1.00 1.53% 0.30% 6 3.00% 6 0.33% 6 74,609 $1.00 1.74% 0.30% 6 3.44% 6 0.30% 6 60,302 $1.00 1.66% 0.27% 6 4.15% 6 0.12% 6 8,318 $1.00 5.94% 0.32% 5.75% 0.08% 11,811 $1.00 5.23% 0.32% 5.00% 0.18% 48,910 $1.00 5.48% 0.30% 5.46% 0.26% 391,159 $1.00 5.37% 0.30% 5.18% 0.27% 230,193 $1.00 2.36% 0.30% 6 4.64% 6 0.28% 6 245,815 $1.00 2.68% 0.30% 6 5.29% 6 0.27% 6 254,199 $1.00 5.26% 0.28% 5.17% 0.31% 20,006 $1.00 5.55% 0.27% 5.61% 0.32% 67,064 $1.00 5.40% 0.28% 5.23% 0.30% 200,098 $1.00 2.38% 0.28% 6 4.76% 6 0.30% 6 275,756 $1.00 2.67% 0.28% 6 4.61% 6 0.29% 6 206,440
Notes to Financial Statements JANUARY 31, 2000 (UNAUDITED) ORGANIZATION 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 of the following portfolios (individually referred to as the "Fund", or collectively as the "Funds") are presented herein:
PORTFOLIO NAME DIVERSIFICATION CLASS OF SHARES INVESTMENT OBJECTIVE Municipal Obligations Fund diversified Institutional Shares To provide current income Institutional Service Shares exempt from federal Institutional Capital Shares regular income tax consistent with stability of principal. Prime Cash Obligations Fund diversified Institutional Shares To provide current income Institutional Service Shares consistent with stability Institutional Capital Shares of principal and liquidity. Prime Value Obligations Fund diversified Institutional Shares To provide current income Institutional Service Shares consistent with stability Institutional Capital Shares of principal and liquidity.
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. SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. These policies are in conformity with generally accepted accounting principles. INVESTMENT VALUATION The Funds use the amortized cost method to value their portfolio securities in accordance with Rule 2a-7 under the Act. REPURCHASE AGREEMENTS It is the policy of the Funds 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 Funds 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 Funds will only enter into repurchase agreements with banks and other recognized financial institutions, such as broker/dealers, which are deemed by the Funds' 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 Funds could receive less than the repurchase price on the sale of collateral securities. The Funds, along with other affiliated investment companies, may utilize a joint trading account for the purpose of entering into one or more repurchase agreements. INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS Interest income and expenses are accrued daily. Bond premium and discount, if applicable, are amortized as required by the Internal Revenue Code, as amended (the "Code"). 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. The Funds offer multiple classes of shares, which differ in their respective distribution and service fees. All shareholders bear the common expenses of the Funds 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. FEDERAL TAXES It is the Funds' policy to comply with the provisions of the Code applicable to regulated investment companies and to distribute to shareholders each year substantially all of their income. Accordingly, no provisions for federal tax are necessary. WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS The Funds may engage in when-issued or delayed delivery transactions. The Funds record when-issued securities on the trade date and maintain 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 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 Funds 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. CHANGE IN FISCAL YEAR Municipal Obligations Fund, Prime Cash Obligations Fund and Prime Value Obligations Fund have changed their fiscal year-ends from January 31 to July 31. USE OF ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated. OTHER Investment transactions are accounted for on a trade date basis. 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). Transactions in shares were as follows:
SIX MONTHS ENDED PERIOD ENDED YEAR ENDED JANUARY 31, JULY 31, JANUARY 31, MUNICIPAL OBLIGATIONS FUND 2000 1999 1 1999 INSTITUTIONAL SHARES: Shares sold 2,864,665,365 3,220,798,056 5,212,142,622 Shares issued to shareholders in payment of distributions declared 1,141,383 1,004,656 1,302,615 Shares redeemed (2,834,828,428) (3,171,653,273) (5,127,376,711) NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS 30,978,320 50,149,439 86,068,526 INSTITUTIONAL SERVICE SHARES: Shares sold 314,612,990 217,446,882 422,524,378 Shares issued to shareholders in payment of distributions declared 1,103,221 1,080,682 1,503,612 Shares redeemed (265,585,981) (179,672,680) (397,415,401) NET CHANGE RESULTING FROM INSTITUTIONAL SERVICE SHARE TRANSACTIONS 50,130,230 38,854,884 26,612,589 INSTITUTIONAL CAPITAL SHARES: Shares sold 447,853,071 248,572,618 1,036,775,391 Shares issued to shareholders in payment of distributions declared 833,548 704,843 1,991,454 Shares redeemed (462,993,159) (289,197,690) (941,938,021) NET CHANGE RESULTING FROM INSTITUTIONAL CAPITAL SHARE TRANSACTIONS (14,306,540) (39,920,229) 96,828,824 NET CHANGE RESULTING FROM SHARE TRANSACTIONS 66,802,010 49,084,094 209,509,939
1 The fund has changed its fiscal year-end from January 31 to July 31.
SIX MONTHS ENDED PERIOD ENDED YEAR ENDED PRIME CASH OBLIGATIONS JANUARY 31, JULY 31, JANUARY 31, FUND 2000 1999 1 1999 INSTITUTIONAL SHARES: Shares sold 25,812,285,601 18,081,938,275 23,532,773,371 Shares issued to shareholders in payment of distributions declared 37,802,892 26,581,479 44,134,116 Shares redeemed (24,227,947,440) (18,003,898,560) (22,852,260,827) NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS 1,622,141,053 104,621,194 724,646,660 INSTITUTIONAL SERVICE SHARES: Shares sold 5,043,773,891 4,467,896,195 7,290,975,466 Shares issued to shareholders in payment of distributions declared 5,359,279 3,350,044 5,275,668 Shares redeemed (5,065,452,343) (4,408,099,082) (7,070,064,987) NET CHANGE RESULTING FROM INSTITUTIONAL SERVICE SHARE TRANSACTIONS (16,319,173) 63,147,157 226,186,147 INSTITUTIONAL CAPITAL SHARES: Shares sold 1,099,376,944 2,245,519,975 2,339,167,903 Shares issued to shareholders in payment of distributions declared 2,629,528 5,340,046 6,102,607 Shares redeemed (1,093,622,814) (2,235,237,426) (2,506,236,739) NET CHANGE RESULTING FROM INSTITUTIONAL CAPITAL SHARE TRANSACTIONS 8,383,658 15,622,595 (160,966,229) NET CHANGE RESULTING FROM SHARE TRANSACTIONS 1,614,205,538 183,390,946 789,866,578
1 The fund has changed its fiscal year-end from January 31 to July 31.
SIX MONTHS ENDED PERIOD ENDED YEAR ENDED PRIME VALUE OBLIGATIONS JANUARY 31, JULY 31, JANUARY 31, FUND 2000 1999 1 1999 INSTITUTIONAL SHARES: Shares sold 11,233,594,319 11,553,124,074 19,781,464,858 Shares issued to shareholders in payment of distributions declared 19,884,976 27,134,621 34,346,178 Shares redeemed (10,936,424,092) (11,906,664,823) (19,207,430,021) NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS 317,055,203 (326,406,128) 608,381,015 INSTITUTIONAL SERVICE SHARES: Shares sold 5,683,567,035 4,750,407,849 5,129,107,787 Shares issued to shareholders in payment of distributions declared 8,972,651 8,335,094 12,725,748 Shares redeemed (5,755,469,263) (4,546,178,066) (4,972,051,133) NET CHANGE RESULTING FROM INSTITUTIONAL SERVICE SHARE TRANSACTIONS (62,929,577) 212,564,877 169,782,402 INSTITUTIONAL CAPITAL SHARES: Shares sold 958,792,129 1,052,655,325 1,606,039,157 Shares issued to shareholders in payment of distributions declared 3,420,077 3,772,038 4,692,264 Shares redeemed (1,031,527,862) (980,769,280) (1,477,697,890) NET CHANGE RESULTING FROM INSTITUTIONAL CAPITAL SHARE TRANSACTIONS (69,315,656) 75,658,083 133,033,531 NET CHANGE RESULTING FROM SHARE TRANSACTIONS 184,809,970 (38,183,168) 911,196,948
1 The fund has changed its fiscal year-end from January 31 to July 31. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES INVESTMENT ADVISER FEE Federated Investment Management Company, the Funds' investment adviser (the "Adviser"), receives for its services an annual investment adviser fee equal to the percentage of the Funds' average daily net assets as follows:
INVESTMENT ADVISER FUND FEE PERCENTAGE Municipal Obligations Fund 0.20% Prime Cash Obligations Fund 0.20% Prime Value Obligations Fund 0.20%
The Adviser may voluntarily choose to waive any portion of its fee. The Adviser can modify or terminate this voluntary waiver at any time at its sole discretion. ADMINISTRATIVE FEE Federated Services Company ("FServ"), under the Administrative Services Agreement, provides the Funds 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. SHAREHOLDER SERVICES FEE Under the terms of a Shareholder Services Agreement with Federated Shareholder Services Company ("FSSC"), the Funds will pay FSSC up to 0.25% of average daily net assets of each Fund for the period. The fee paid to FSSC is used to finance certain services for shareholders and to maintain shareholder accounts. FSSC may voluntarily choose to waive any portion of its fee. FSSC can modify or terminate this voluntary waiver at any time at its sole discretion. TRANSFER AND DIVIDEND DISBURSING AGENT FEES AND EXPENSES FServ, through its subsidiary FSSC, serves as transfer and dividend disbursing agent for the Funds. The fee paid to FSSC is based on the size, type and number of accounts and transactions made by shareholders. PORTFOLIO ACCOUNTING FEES FServ maintains the Funds' accounting records for which it receives a fee. The fee is based on the level of each Fund's average daily net assets for the period, plus out-of-pocket expenses. INTERFUND TRANSACTIONS During the period ended January 31, 2000, the Funds engaged in purchase and sale transactions with funds that have a common investment adviser (or affiliated investment advisers), common Directors/Trustees, and/or common Officers. These purchase and sale transactions complied with Rule 17a-7 under the Act. Interfund transactions were as follows:
FUND PURCHASES SALES Municipal Obligations Fund $ 1,047,410,000 $ 1,359,638,000 Prime Cash Obligations Fund $ - $ 5,000,000
GENERAL Certain of the Officers and Trustees of the Trust are Officers and Directors or Trustees of the above companies. Trustees JOHN F. DONAHUE THOMAS G. BIGLEY JOHN T. CONROY, JR. NICHOLAS P. CONSTANTAKIS JOHN F. CUNNINGHAM J. CHRISTOPHER DONAHUE LAWRENCE D. ELLIS, M.D. PETER E. MADDEN CHARLES F. MANSFIELD, JR. JOHN E. MURRAY, JR., J.D., S.J.D. MARJORIE P. SMUTS JOHN S. WALSH Officers JOHN F. DONAHUE Chairman J. CHRISTOPHER DONAHUE President 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 funds' prospectuses which contain facts concerning each fund's objective and policies, management fees, expenses, and other information. [Graphic] Federated World-Class Investment Manager SEMI-ANNUAL REPORT Money Market Obligations Trust Institutional Capital Shares SEMI-ANNUAL REPORT TO SHAREHOLDERS [Graphic] Federated Money Market Obligations Trust Federated Investors Funds 5800 Corporate Drive Pittsburgh, PA 15237-7000 1-800-341-7400 WWW.FEDERATEDINVESTORS.COM Federated Securities Corp., Distributor Cusip 60934N633 Cusip 60934N591 Cusip 60934N567 25245 (3/00) [Graphic] JANUARY 31, 2000 SEMI-ANNUAL REPORT President's Message Dear Shareholder: I am pleased to present the Semi-Annual Report for Money Market Obligations Trust-Institutional Shares and Institutional Service Shares. This report combines information for six money market mutual funds that are part of the Trust. The report covers the first half of each fund's fiscal year, which is the six-month period ended January 31, 2000. It begins with investment reviews by the funds' portfolio managers on each fund's market. Following the investment reviews are the funds' portfolios of investments and financial statements. As money market funds, each of these funds gives you the opportunity to put your cash to work pursuing daily dividends while giving you the comfort of a high level of liquidity and a stable net asset value of $1.00 per share. 1 The following are fund-by-fund performance highlights: GOVERNMENT OBLIGATIONS FUND invests in short-term U.S. government obligations and repurchase agreements fully collateralized by U.S. government securities. During the six-month reporting period, the fund paid dividends totaling $0.03 per share to shareholders of both Institutional Shares and Institutional Service Shares. At the end of the reporting period, the fund's net assets totaled $7.7 billion. GOVERNMENT OBLIGATIONS TAX-MANAGED FUND invests in U.S. government securities. The fund's portfolio is managed so that dividends are exempt from state and local income taxes. 2 During the six-month reporting period, the fund paid double-tax-free dividends totaling $0.03 per share to shareholders of both Institutional Shares and Institutional Service Shares.2 At the end of the reporting period, the fund's net assets totaled $2.7 billion. MUNICIPAL OBLIGATIONS FUND pursues tax-free income by investing in a portfolio of short-term securities issued by municipalities across the United States. 2 During the six-month reporting period, the fund paid tax- free dividends totaling $0.02 per share to shareholders of both Institutional Shares and Institutional Service Shares.2 At the end of the reporting period, the fund's net assets totaled $602 million. PRIME CASH OBLIGATIONS FUND invests in a well-diversified portfolio of high-quality money market securities. During the six-month reporting period, the fund paid dividends totaling $0.03 per share to shareholders of both Institutional Shares and Institutional Service Shares. At the end of the reporting period, the fund's net assets totaled $4.7 billion. 1 An investment in money market funds is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although these funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the funds. 2 Income may be subject to the federal alternative minimum tax. Unless otherwise exempt, shareholders are required to pay federal income tax on dividends. PRIME VALUE OBLIGATIONS FUND invests in a well-diversified portfolio of high-quality money market securities. During the six-month reporting period, the fund paid dividends totaling $0.03 per share to shareholders of both Institutional Shares and Institutional Service Shares. At the end of the reporting period, the fund's net assets totaled $2.3 billion. TAX-FREE OBLIGATIONS FUND pursues tax-free income by investing in a portfolio of short-term securities issued by municipalities across the United States. 2 During the six-month reporting period, the fund paid tax- free dividends of $0.02 per share to shareholders of both Institutional Shares and Institutional Service Shares.2 At the end of the reporting period, the fund's net assets totaled $3.5 billion. Thank you for selecting one or more of these funds as a convenient way to help your ready cash earn daily income. As always, we welcome your questions, comments or suggestions. Sincerely, [Graphic] J. Christopher Donahue President March 15, 2000 Economic Overview The Federal Reserve Board (the "Fed") tightened monetary policy on two occasions over the funds' semi-annual reporting period ended January 31, 2000. These two quarter-point moves, combined with an initial tightening of similar magnitude at the end of June 1999, brought the federal funds target rate back to 5.50%. This was the level of the federal funds target rate prior to the fourth quarter of 1998, when the Fed infused liquidity into the fixed income markets during a period of global economic turmoil. Robust economic growth prompted the policy moves by the Fed. Economic growth in 1999 exceeded 4.00%, well in excess of what is generally considered to be the long-run non-inflationary growth potential of the economy. Consumer spending continued to be the main drive behind the impressive pace of growth, and although mortgage rates increased by close to 150 basis points over the reporting period, the interest-sensitive sectors of the economy remained persistently strong. Inflationary pressures at the producer and consumer levels remained remarkably absent in spite of this growth. However, while the notion of a non-inflationary potential, traditionally 2.00% to 2.50%, has increased in recent times due to evidence that productivity enhancements have been controlling inflationary pressures, continued growth well above 3.00% is likely to keep the Fed on its current tightening course in the near future. During the reporting period, short-term interest rates reflected, and largely anticipated, the monetary policy tightenings that took place. The yield on the 1-year agency discount note, for example, began the reporting period at 5.66%, traded up to 5.80% by the time of the Fed's decision to tighten rates in August, and up again to 5.90% by the second tightening of the reporting period in November. The yield continued to climb steadily to close the reporting period at 6.43%, two days prior to another decision by the Fed to tighten, which brought the federal funds target rate to its current 5.75% level. Much attention, both in the financial markets and the popular press, was given in the fourth quarter of 1999 to the potential dislocations feared at year end due to the Year 2000 effect. In hindsight, of course, the world experienced very few troubles, and the economic impact appears to be non- existent. However, very short-term government securities did seem to reflect a "flight to quality" concentrated in the last few weeks of the trading year. Furthermore, the steps that the Fed had taken to assure that sufficient liquidity would be available to the banking system at year end in the event of a crisis caused rates on repurchase agreements to trade around 3.00% in the last few days of the year, well below the then typical level of 5.50%. Investment Review GOVERNMENT OBLIGATIONS FUND Government Obligations Fund, which is rated AAAm 1 by Standard & Poor's ("S&P"), Aaa1 by Moody's Investors Service ("Moody's"), and AAA1 by Fitch IBCA, Inc. ("Fitch"), is invested in direct U.S. Treasury and agency obligations and in repurchase agreements which have these securities as collateral. The fund, at times, maintains a small U.S. Treasury position for liquidity purposes. The fund was managed within a 40- to 50-day average maturity target range throughout most of the reporting period, moving within that range according to relative value opportunities available in the market. The fund continued to pursue a barbelled structure, combining significant positions in repurchase agreements, agency floating rate notes and short-term agency discount notes with purchases of longer-term agency securities having 6- to 13-month maturities. During the reporting period the floating rate position was kept close to its maximum of 25% of fund net assets to maximize the fund's responsiveness to changes in short-term interest rates. Floating rate products performed very well over the reporting period. While Treasury bill-based holdings were the best performing agency floaters in 1999 overall, 1- and 3-month floaters based on the London Inter-Bank Offered Rate (LIBOR) did especially well in the fourth quarter, as dislocations in the LIBOR markets due to Year 2000 fears caused this index to trade well above its typical levels. The fund held balanced positions of all of these index types. The fund also reduced its holdings of overnight securities as the end of 1999 approached, in anticipation of very low funding levels. With the Gross Domestic Product continuing to grow, it is anticipated that the Federal Reserve Board (the "Fed") will gradually restrict monetary policy further until Fed officials see concrete signs of a slowing in economic activity to a more sustainable pace. GOVERNMENT OBLIGATIONS TAX-MANAGED FUND Government Obligations Tax-Managed Fund is rated AAAm 1 by Standard & Poor's ("S&P") and Aaa1 by Moody's Investors Service ("Moody's") and invests only in U.S. Treasury and U.S. government agency obligations. The fund invests in issues of the Student Loan Marketing Association, the Federal Farm Credit Bank System, the Federal Home Loan Bank System and the Tennessee Valley Authority. The fund may maintain a small U.S. Treasury position for liquidity purposes. The fund does not invest in repurchase agreements and is managed to provide distributions which may be exempt from state and local taxes. 1 An AAAm rating is obtained after S&P evaluates a number of factors, including credit quality, market price exposure, and management. S&P monitors the portfolio weekly for developments that could cause changes in the ratings. Money market funds and bond funds rated Aaa by Moody's 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. Fitch's money market fund ratings are an assessment of the safety of invested principal and the ability to maintain a stable market value of the fund's shares. Ratings are based on an evaluation of several factors, including credit quality, diversification, and maturity of assets in the portfolio, as well as managed strength and operational capabilities. Ratings are subject to change and do not remove interest rate risk. Movements in short-term interest rates reflected economic strength and the Federal Reserve Board's (the "Fed's") expectations. The yield on the one- year agency discount note began the reporting period at 5.66%. Anticipating Fed interest rate action, the yield on the security climbed to 5.80% by August 24, the day of the first Fed tightening in the reporting period. The yield continued to climb to 5.90% by the second Fed tightening in mid-November and ended the reporting period yielding 6.43%. In the face of the uncertainty surrounding the Year 2000 effect, the Fed was on hold but lower short-term interest rates were expected. In this environment, the fund reduced its holdings of ultra- short agency paper and focused on purchasing securities in the two- and three-month areas of the curve. The fund maintained a 40- to 50-day average maturity target range for nearly the entire reporting period. In late January, the fund shortened its target range to 35 to 45 days in light of ongoing economic strength and expectations for further interest rate increases. At the end of the reporting period, the fund's portfolio continued to be barbelled in structure, combining short-term agency and floating rate paper with securities maturing in 6 to 13 months. On January 31, 2000, 23% of the fund's assets were invested in U.S. government agency floating rate paper, including a position in a Student Loan Marketing Association master note, to help provide liquidity for the portfolio. Going forward, it is reasonable to expect further interest rate increases as the Fed puts its anti-inflation efforts in gear. We will continue to monitor changing economic conditions and market developments to derive an appropriate target range and to best serve our clients. MUNICIPAL OBLIGATIONS FUND Municipal Obligations Fund invests in high-quality, short-term tax-exempt securities. Typical investments include, but are not limited to, variable rate demand notes (VRDNs), commercial paper equivalents and fixed-rate notes and bonds. For the six-month reporting period, the net assets of the fund increased from $535 million to $602 million, while the seven-day net yield for the fund's Institutional Shares increased from 3.22% to 3.46% and the fund's Institutional Service Shares increased from 2.97% to 3.21%. 2 The average maturity of the fund on January 31, 2000, was 47 days. 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. Interest rates in the tax-exempt money markets over the reporting period were influenced by Federal Reserve Board (the "Fed") tightenings as well as expectations of future tightenings. Supply and demand factors also played a large role in the absolute level of interest rates, as demand (cash inflows into the market) remained steady over most of the reporting period. New supply of fixed-rate notes was low relative to demand as municipalities continued to benefit from a strong economy and record tax collections. Yields on VRDNs, which comprised close to 70% of the fund's assets, started the reporting period at 3.00%, but drifted slowly upward, reflecting the Fed's interest rate moves as well as supply and demand. In late December, yields spiked to over 5.50%, reflecting the reluctance of dealers to position these instruments over year-end. Strong demand in January brought yields down to 3.00% and they ended the reporting period at 3.25%. Going forward, the average maturity of the fund will continue to be managed in accordance with expectations of continued monetary policy tightenings. Therefore, the fund will continue to keep the average maturity short, waiting for yields to rise further before locking in attractive fixed-rate note opportunities. Fund management continues to watch, with great interest, market developments in order to best serve our municipal clients. PRIME CASH OBLIGATIONS FUND AND PRIME VALUE OBLIGATIONS FUND Prime Cash Obligations Fund and Prime Value Obligations Fund invest in money market instruments maturing in 13 months or less. The average maturity of these securities, computed on a dollar-weighted basis, is restricted to 90 days or less. Portfolio securities of Prime Cash Obligations Fund must be rated in the highest short-term rating category by one or more of the nationally recognized statistical rating organizations or be of comparable quality to securities having such ratings. Portfolio securities of Prime Value Obligations Fund 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, short term notes, time deposits, variable rate instruments and repurchase agreements. The Federal Reserve Board (the "Fed") continued to act preemptively to quell inflationary threats and raised the federal funds target rate from 5.00% to 5.25% on August 24, 1999, and then again from 5.25% to 5.50% on November 16, 1999. The market had already anticipated such actions, resulting in a much steeper money market yield curve throughout most of the reporting period. Thirty-day commercial paper started the reporting period at 5.11% and then traded steadily up to the 5.50% level by the end of November. Seasonal and Year 2000 effects took hold in December and caused the 30-day commercial paper rate to spike as high as 6.46%, before retreating to 5.78% at the end of the reporting period. The target average maturity range for the funds was decreased from 45- 55 days to 40-50 days on January 10, 2000, reflecting the Fed's concern about overzealousness in the stock markets and potential inflationary threats. In structuring the funds, there was continued emphasis placed on positioning 30%-35% of the funds' core assets in variable rate demand notes and accomplishing a modest barbell structure. During the six months ended January 31, 2000, the net assets of Prime Cash Obligations Fund increased from $3.1 billion to $4.7 billion, while the seven-day net yield of the fund's Institutional Shares increased from 4.96% to 5.67% and the fund's Institutional Service Shares increased from 4.71% to 5.42%. 2 The effective average maturity of this fund on January 31, 2000 was 42 days. During the six months ended January 31, 2000, the net assets of Prime Value Obligations Fund increased from $2.1 billion to $2.3 billion, while the seven-day net yield for the fund's Institutional Shares increased from 4.99% to 5.71% and Institutional Service Shares increased from 4.74% to 5.46%. 2 The effective average maturity of this fund on January 31, 2000 was 44 days. TAX-FREE OBLIGATIONS FUND Tax-Free Obligations Fund invests in high quality, short-term tax-exempt securities. Typical investments include, but are not limited to, variable rate demand notes (VRDNs), commercial paper equivalents and fixed-rate notes and bonds. For the six-month reporting period, the seven-day net yield of the fund's Institutional Shares increased from 3.00% to 3.20% and the fund's Institutional Service Shares increased from 2.75% to 2.95%. 2 The average maturity of the fund on January 31, 2000, was 38 days. Interest rates in the tax-exempt money markets over the reporting period were influenced by Federal Reserve Board (the "Fed") tightenings as well as expectations of future tightenings. Supply and demand factors also played a large role in the absolute level of interest rates, as demand (cash inflows into the market) remained steady over most of the reporting period. New supply of fixed-rate notes was low relative to demand as municipalities continued to benefit from a strong economy and record tax collections. 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. Yields on VRDNs, which comprised close to 70% of the fund's net assets, started the period at 3.00%, but drifted slowly upward, reflecting the Fed's interest rate moves as well as supply and demand. In late December, yields spiked to over 5.50%, reflecting the reluctance of dealers to position these instruments over year-end. Strong demand in January brought yields down to 3.00% and they ended the reporting period at 3.25%. Going forward, the average maturity of the fund will continue to be managed in accordance with expectations of continued monetary policy tightenings. Therefore, the fund will continue to keep the average maturity short, waiting for yields to rise further before locking in attractive fixed-rate note opportunities. Fund management continues to watch, with great interest, market developments in order to best serve our municipal clients. Shareholder Meeting Results A Special Meeting of Shareholders of Municipal Obligations Fund, Prime Cash Obligations Fund and Prime Value Obligations Fund was held on September 23, 1999. On July 26, 1999, the record date for shareholders voting at the meeting, there were 509,899,505 total outstanding shares of the Municipal Obligations Fund, 3,196,183,791 total outstanding shares of the Prime Cash Obligations Fund, and 2,129,862,319 total outstanding shares of the Prime Value Obligations Fund. The following items were considered by shareholders of the funds and the results of their voting were as follows: AGENDA ITEM 1: To elect five Trustees. 1 MUNICIPAL OBLIGATIONS FUND
WITHHELD AUTHORITY NAMES FOR TO VOTE Nicholas P. Constantakis 308,562,058 1,285,396 John F. Cunningham 308,562,058 1,285,396 J. Christopher Donahue 308,562,058 1,285,396 Charles F. Mansfield, Jr. 308,562,058 1,285,396 John S. Walsh 308,562,058 1,285,396
PRIME CASH OBLIGATIONS FUND
WITHHELD AUTHORITY NAMES FOR TO VOTE Nicholas P. Constantakis 1,903,382,954 559,977 John F. Cunningham 1,903,382,954 559,977 J. Christopher Donahue 1,903,382,954 559,977 Charles F. Mansfield, Jr. 1,903,382,954 559,977 John S. Walsh 1,903,382,954 559,977
PRIME VALUE OBLIGATIONS FUND
WITHHELD AUTHORITY NAMES FOR TO VOTE Nicholas P. Constantakis 1,184,406,669 4,078,150 John F. Cunningham 1,184,503,612 3,981,207 J. Christopher Donahue 1,184,503,612 3,981,207 Charles F. Mansfield, Jr. 1,184,503,612 3,981,207 John S. Walsh 1,184,503,612 3,981,207
1 The following Trustees continued their terms: John F. Donahue, Thomas G. Bigley, John T. Conroy, Jr., Lawrence D. Ellis, M.D., Peter E. Madden, John E. Murray, Jr., J.D., S.J.D. and Marjorie P. Smuts. AGENDA ITEM 2: MUNICIPAL OBLIGATIONS FUND To approve a proposed amendment and Plan of Reorganization between Money Market Obligations Trust II, on behalf of it series, Municipal Obligations Fund (the "Municipal Fund") and Money Market Obligations Trust, on behalf of its series, Municipal Obligations Fund (the "New Municipal Fund") whereby the New Municipal Fund would acquire all of the assets of the Municipal Fund in exchange for shares of the New Municipal Fund to be distributed pro rata by the Municipal Fund to its shareholders in complete liquidation and termination of the Municipal Fund.
BROKER FOR AGAINST ABSTENTIONS NON-VOTES 291,381,643 1,044,999 904,413 16,516,399
PRIME CASH OBLIGATIONS FUND To approve a proposed amendment and Plan of Reorganization between Money Market Obligations Trust II, on behalf of it series, Prime Cash Obligations Fund (the "Prime Cash Fund") and Money Market Obligations Trust, on behalf of its series, Prime Cash Obligations Fund (the "New Prime Cash Fund") whereby the New Cash Fund would acquire all of the assets of the Prime Cash Fund in exchange for shares of the New Prime Cash Fund to be distributed pro rata by the Prime Cash Fund to its shareholders in complete liquidation and termination of the Prime Cash Fund.
BROKER FOR AGAINST ABSTENTIONS NON-VOTES 1,855,098,576 7,139,425 24,202,022 17,502,908
PRIME VALUE OBLIGATIONS FUND To approve a proposed amendment and Plan of Reorganization between Money Market Obligations Trust II, on behalf of it series, Prime Value Obligations Fund (the "Prime Value Fund") and Money Market Obligations Trust, on behalf of its series, Prime Value Obligations Fund (the "New Prime Value Fund") whereby the New Value Fund would acquire all of the assets of the Prime Value Fund in exchange for shares of the New Prime Value Fund to be distributed pro rata by the Prime Value Fund to its shareholders in complete liquidation and termination of the Prime Value Fund.
BROKER FOR AGAINST ABSTENTIONS NON-VOTES 1,051,986,244 20,628,726 16,208,046 99,661,803
Portfolio of Investments Government Obligations Fund January 31, 2000 (unaudited)
PRINCIPAL AMOUNT VALUE SHORT-TERM OBLIGATIONS- 59.1% $ 35,000,000 1 Federal Farm Credit Bank, Discount Notes, 5.940%, 1/23/2001 $ 32,938,325 40,500,000 Federal Farm Credit Bank, Notes, 5.400%, 7/3/2000 40,474,406 545,000,000 1 Federal Home Loan Bank, Discount Notes, 5.370% - 5.950%, 2/2/2000 -1/12/2001 541,465,710 225,000,000 2 Federal Home Loan Bank, Floating Rate Notes, 5.581% - 5.839%, 2/11/2000 -2/18/2000 224,899,714 419,650,000 Federal Home Loan Bank, Notes, 4.790% - 6.372%, 2/4/2000 - 2/7/2001 419,562,970 704,292,000 1 Federal Home Loan Mortgage Corp., Discount Notes, 5.180% - 5.820%, 2/2/2000 - 8/4/2000 699,589,993 230,000,000 2 Federal Home Loan Mortgage Corp., Floating Rate Notes, 5.586% - 5.640%, 2/18/2000 - 2/22/2000 229,902,934 816,269,000 1 Federal National Mortgage Association, Discount Notes, 5.040% - 5.880%, 2/7/2000 - 6/22/2000 809,136,767 533,000,000 2 Federal National Mortgage Association, Floating Rate Notes, 5.571% - 5.970%, 2/10/2000 - 3/23/2000 532,740,832 185,500,000 Federal National Mortgage Association, Notes, 4.860% - 6.445%, 2/10/2000 -2/23/2001 185,123,192 95,000,000 Federal National Mortgage Association, Notes, 5.632%, 2/1/2000 95,000,000 291,737,000 Housing and Urban Development, 6.201%, 6/30/2000 291,737,000 37,800,000 Student Loan Marketing Association, Notes, 4.930% - 6.045%, 2/8/2000 -11/3/2000 37,788,966 430,000,000 2 Student Loan Marketing Association, Floating Rate Notes, 5.720% -6.249%, 2/1/2000 429,821,028 TOTAL SHORT-TERM OBLIGATIONS 4,570,181,837 REPURCHASE AGREEMENTS- 43.7% 3 150,000,000 ABN AMRO Chicago Corp., 5.790%, dated 1/31/2000, due 2/1/2000 150,000,000 980,000,000 Bank of America, 5.800%, dated 1/31/2000, due 2/1/2000 980,000,000 110,000,000 Barclays Capital, Inc., 5.800%, dated 1/31/2000, due 2/1/2000 110,000,000 150,000,000 Bear, Stearns and Co., 5.800%, dated 1/31/2000, due 2/1/2000 150,000,000 300,000,000 Deutsche Bank AG, 5.670%, dated 1/31/2000, due 2/1/2000 300,000,000 15,300,000 Deutsche Bank AG, 5.700%, dated 1/31/2000, due 2/1/2000 15,300,000 200,000,000 First Union Capital Markets, 5.800%, dated 1/31/2000, due 2/1/2000 200,000,000 325,000,000 Goldman Sachs Group LP, 5.800%, dated 1/31/2000, due 2/1/2000 325,000,000 195,000,000 Morgan Stanley Group, Inc., 5.800%, dated 1/31/2000, due 2/1/2000 195,000,000 230,000,000 Paribas Corp., 5.800%, dated 1/31/2000, due 2/1/2000 230,000,000 PRINCIPAL AMOUNT VALUE REPURCHASE AGREEMENTS- continued 3 $ 265,000,000 Prudential Securities, Inc., 5.800%, dated 1/31/2000, due 2/1/2000 $ 265,000,000 390,000,000 Salomon Smith Barney, Inc., 5.800%, dated 1/31/2000, due 2/1/2000 390,000,000 25,000,000 Warburg Dillon Reed LLC, 5.650%, dated 1/31/2000, due 2/1/2000 25,000,000 50,000,000 4 Warburg Dillon Reed LLC, 5.680%, dated 1/20/2000, due 2/17/2000 50,000,000 TOTAL REPURCHASE AGREEMENTS 3,385,300,000 TOTAL INVESTMENTS (AT AMORTIZED COST) 5 $ 7,955,481,837
1 Each issue shows the rate of discount at the time of purchase. 2 Current rate and next reset date shown. 3 The repurchase agreements are fully collateralized by U.S. government and/or agency obligations based on market prices at the date of the portfolio. The investments in the repurchase agreements are through participation in joint accounts with other Federated funds. 4 Although final maturity falls beyond seven days, a liquidity feature is included in each transaction to permit termination of the repurchase agreement within seven days. 5 Also represents cost for federal tax purposes. Note: The categories of investments are shown as a percentage of net assets ($7,740,245,129) at January 31, 2000. See Notes which are an integral part of the Financial Statements Portfolio of Investments Government Obligations Tax-Managed Fund January 31, 2000 (unaudited)
PRINCIPAL AMOUNT VALUE GOVERNMENT AGENCY OBLIGATIONS-101.3% $ 69,250,000 Federal Farm Credit Bank, 5.000% - 6.350%, 3/1/2000 - 2/1/2001 $ 69,208,120 231,875,000 1 Federal Farm Credit Bank, Discount Notes, 5.430% - 5.940%, 2/2/2000 - 1/23/2001 230,633,030 93,000,000 2 Federal Farm Credit Bank, Floating Rate Notes, 5.643% - 5.653%, 2/1/2000 92,983,293 197,930,000 Federal Home Loan Bank, 4.790% - 6.372%, 2/4/2000 - 2/7/2001 197,845,576 1,412,120,000 1 Federal Home Loan Bank, Discount Notes, 5.430% - 5.830%, 2/1/2000 - 3/29/2000 1,407,142,901 287,500,000 2 Federal Home Loan Bank, Floating Rate Notes, 5.550% - 5.839%, 2/1/2000 - 2/22/2000 287,423,066 27,000,000 Student Loan Marketing Association, 4.930% - 6.045%, 2/8/2000 - 11/3/2000 26,995,996 88,922,000 1 Student Loan Marketing Association, Discount Notes, 5.470% - 5.590%, 2/18/2000 - 3/22/2000 88,336,574 171,000,000 2 Student Loan Marketing Association, Floating Rate Notes, 5.720% - 6.249%, 2/1/2000 170,923,471 102,100,000 2 Student Loan Marketing Association, Master Note, 5.849%, 2/1/2000 102,100,000 158,000,000 1 Tennessee Valley Authority Discount Notes, 5.470% - 5.590%, 2/9/2000 - 3/6/2000 157,531,355 TOTAL INVESTMENTS (AT AMORTIZED COST) 3 $ 2,831,123,382
1 The issue shows the discount rate at time of purchase. 2 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 ($2,793,862,089) at January 31, 2000. See Notes which are an integral part of the Financial Statements Portfolio of Investments Municipal Obligations Fund January 31, 2000 (unaudited)
PRINCIPAL AMOUNT VALUE SHORT-TERM MUNICIPALS- 99.7% 1 ALABAMA-1.3% $ 5,000,000 Hoover, AL Board of Education, Series 1999 C, 3.80% BANs, 8/1/2000 $ 5,000,000 3,000,000 Tuscaloosa County, AL IDA, Series 1995 A, Weekly VRDNs (Tuscaloosa Steel Corp.)/(Bayerische Landesbank Girozentrale LOC) 3,000,000 TOTAL 8,000,000 ARIZONA-0.7% 2,250,000 Pima County, AZ IDA, SFM, Roaring Fork Series 1999- 6, Weekly VRDNs (GNMA COL)/(Bank of New York, New York LIQ) 2,250,000 1,800,000 Yuma County, AZ Airport Authority, Inc., Series 1997 A, Weekly VRDNs (Bank One, Arizona N.A. LOC) 1,800,000 TOTAL 4,050,000 ARKANSAS-2.4% 1,000,000 Arkadelphia, AR IDRBs, Series 1996, Weekly VRDNs (Siplast, Inc.)/(Den Danske Bank A/S LOC) 1,000,000 4,000,000 Arkansas Development Finance Authority, Series 1995, Weekly VRDNs (Paco Steel & Engineering Corporation Project)/(Union Bank of California LOC) 4,000,000 1,800,000 Hope, AR Solid Waste Disposal Revenue Bonds, Series 1994, 4.25% CP (Temple-Inland Forest Products Corp.)/(Temple- Inland, Inc. GTD), Mandatory Tender 2/1/2000 1,800,000 7,400,000 Siloam Springs, AR IDRB, Series 1994, Weekly VRDNs (La-Z Boy Chair Co.)/(Bank One, Michigan LOC) 7,400,000 TOTAL 14,200,000 COLORADO-1.5% 4,000,000 Arapahoe County, CO HFA, 4.20% TOBs (Reserve at South Creek)/(FGIC INS), Mandatory Tender 2/1/2000 4,000,000 4,955,000 2 Denver, CO City & County Airport Authority, CDC Class A Certificates, Series 1997 K, 3.45% TOBs (MBIA INS)/(CDC Municipal Products, Inc. LIQ), Optional Tender 5/11/2000 4,955,000 TOTAL 8,955,000 DISTRICT OF COLUMBIA-0.8% 5,000,000 District of Columbia HFA, Series 1999 B, 3.30% BANs (CDC Municipal Products, Inc.), 6/15/2000 5,000,000 FLORIDA-1.4% 2,995,000 Hillsborough County, FL HFA, PT-259, Weekly VRDNs (GNMA COL)/(Credit Suisse First Boston LIQ) 2,995,000 PRINCIPAL AMOUNT VALUE SHORT-TERM MUNICIPALS- continued 1 FLORIDA-CONTINUED $ 2,600,000 Miami-Dade County, FL IDA, Series 1999 A, Weekly VRDNs (Airis Miami LLC)/(AMBAC INS)/(Bayerische Landesbank Girozentrale LIQ) $ 2,600,000 3,000,000 Pinellas County, FL HFA, Daily VRDNs (Chase Manhattan Bank N.A., New York LOC) 3,000,000 TOTAL 8,595,000 GEORGIA-1.0% 6,000,000 Savannah, GA EDA, Series 1995 A, Weekly VRDNs (Home Depot, Inc.) 6,000,000 HAWAII-1.8% 11,000,000 Honolulu, HI City & County Multifamily, Series 1999, Block J Project, 5.015% TOBs (Bayerische Landesbank Girozentrale), Mandatory Tender 12/1/2000 11,000,000 IDAHO-0.9% 5,401,000 2 Idaho Housing Agency, PA- 115, 3.70% TOBs (Merrill Lynch Capital Services, Inc. LIQ), Optional Tender 2/17/2000 5,401,000 ILLINOIS-7.8% 10,500,000 Chicago, IL, Chicago Midway Airport Special Facility Revenue Bonds, Series 1998, 3.95% TOBs (Signature Flight Support Corp.)/(Bayerische Landesbank Girozentrale LOC), Optional Tender 6/1/2000 10,500,000 3,000,000 Chicago, IL, Gas Supply Revenue Bonds, Series 1993 B, 4.05% TOBs (Peoples Gas Light & Coke Co.), Optional Tender 12/1/2000 3,000,000 3,100,000 Chicago, IL Series 1997, Weekly VRDNs (Trendler Components, Inc.)/(American National Bank & Trust Co., Chicago LOC) 3,100,000 3,960,000 2 Chicago, IL SFM, PT-290, 3.90% TOBs (GNMA COL)/(Landesbank Hessen- Thueringen, Frankfurt LIQ), Optional Tender 10/5/2000 3,960,000 1,200,000 Galva, IL Series 1999, Weekly VRDNs (John H. Best & Sons, Inc.)/(Norwest Bank Minnesota, N.A. LOC) 1,200,000 6,000,000 Illinois Development Finance Authority, Series 1997, Weekly VRDNs (Toyal America, Inc.)/(Bank of Tokyo-Mitsubishi Ltd. LOC) 6,000,000 2,100,000 Illinois Development Finance Authority, EDRB, Series 1995, Weekly VRDNs (Evapco, Inc. Project)/(Bank of America, N.A. LOC) 2,100,000 3,200,000 Illinois Development Finance Authority, IDRB, Series 1995, Weekly VRDNs (Dickson Weatherproof Nail Co.)/(Bank of America, N.A. LOC) 3,200,000 7,615,000 2 Illinois Housing Development Authority, PT- 7, 3.375% TOBs (AMBAC INS)/(Commerzbank AG, Frankfurt LIQ), Optional Tender 5/11/2000 7,615,000 1,620,000 Martinsville, IL IDRB, Series 1995, Weekly VRDNs (PAP-R Products Co. Project)/(Bank One, Illinois, N.A. LOC) 1,620,000 2,415,000 Peoria, IL Series 1995, Weekly VRDNs (Praise and Leadership Elementary School)/(Bank One, Illinois, N.A. LOC) 2,415,000 2,230,000 Rockford, IL EDRB, 4.20% TOBs (Independence Village of Rockford)/(Paribas, Paris LOC), Optional Tender 12/1/2000 2,230,000 TOTAL 46,940,000 PRINCIPAL AMOUNT VALUE SHORT-TERM MUNICIPALS- continued 1 INDIANA-4.2% $ 2,000,000 Clarksville, IN Series 1997, Weekly VRDNs (Metal Sales Manufacturing Corp.)/(Firstar Bank, N.A., Cincinnati LOC) $ 2,000,000 3,435,000 Elkhart County, IN Series 1997, Weekly VRDNs (Hart Housing Group, Inc.)/(KeyBank, N.A. LOC) 3,435,000 1,500,000 Huntington, IN EDRB, Series 1999, Weekly VRDNs (DK Enterprises LLC)/(Norwest Bank Minnesota, N.A. LOC) 1,500,000 3,400,000 Indianapolis, IN EDRB, Series 1999, Weekly VRDNs (Chip Ganassi Racing Teams)/(PNC Bank, Delaware LOC) 3,400,000 2,155,000 Kendallville, IN IDRB, Series 1995, Weekly VRDNs (Rivnut Real Estate Ltd. Project)/(National City Bank, Ohio LOC) 2,155,000 1,385,000 Richmond, IN EDRB, Series 1996, Weekly VRDNs (Holland Colors Americas, Inc. Project)/(Bank One, Indiana, N.A. LOC) 1,385,000 4,000,000 Rushville, IN Series 1996, Weekly VRDNs (Fujitsu Ten Corp. of America)/(Bank of Tokyo-Mitsubishi Ltd. LOC) 4,000,000 4,000,000 Westfield, IN EDRB, Series 1998, Weekly VRDNs (Standard Locknut, Inc.)/(Bank One, Indiana, N.A. LOC) 4,000,000 3,200,000 Whitley County, IN Series 1999, Weekly VRDNs (Undersea Sensor Systems, Inc.)/(Norwest Bank Minnesota, N.A. LOC) 3,200,000 TOTAL 25,075,000 IOWA-0.3% 2,000,000 Iowa Falls, IA Series 1998, Weekly VRDNs (Heartland Pork Enterprises, Inc.)/(Bank of Nova Scotia, Toronto LOC) 2,000,000 KANSAS-0.3% 1,900,000 Olathe, KS Industrial Revenue Bonds, Series 1995, Weekly VRDNs (Garmin International, Inc. Project)/(Bank of America, N.A. LOC) 1,900,000 KENTUCKY-1.0% 1,730,000 Jefferson County, KY Industrial Building Revenue Bonds, Series 1995, Weekly VRDNs (Derby Industries, Inc.)/(Bank One, Kentucky LOC) 1,730,000 4,110,000 Paris, KY Weekly VRDNs (Monessen Holdings LLC)/(Bank One, Kentucky LOC) 4,110,000 TOTAL 5,840,000 LOUISIANA-1.7% 5,000,000 Lake Charles, LA Harbor & Terminal District, Revenue Bonds, Series 1995 A, Weekly VRDNs (Polycom- Huntsman, Inc.)/(National City, Pennsylvania LOC) 5,000,000 3,400,000 Louisiana HFA, Trust Receipts, FR/RI-52, Series 1999, Weekly VRDNs (GNMA COL)/(Bayerische Hypotheken-und Vereinsbank AG LIQ) 3,400,000 1,600,000 Ouachita Parish, LA IDB, Series 1998, Weekly VRDNs (Dixie Carbonic, Inc.)/(Bank One, Illinois, N.A. LOC) 1,600,000 TOTAL 10,000,000 PRINCIPAL AMOUNT VALUE SHORT-TERM MUNICIPALS- continued 1 MAINE-0.3% $ 1,840,000 Trenton, ME Series 1998, Weekly VRDNs (Hinckley Co.)/(KeyBank, N.A. LOC) $ 1,840,000 MARYLAND-4.7% 2,468,000 Frederick County, MD Series 1998 A, Weekly VRDNs (Thogar LLC)/(Allfirst LOC) 2,468,000 6,600,000 Harford County, MD Series 1989, Weekly VRDNs (Harford Commons Associates Facility)/(Allfirst LOC) 6,600,000 1,386,000 Harford County, MD Variable Rate Demand/Fixed Rate Refunding Bond (1989 Issue) Weekly VRDNs (Harford Commons Associates Facility)/(Allfirst LOC) 1,386,000 1,000,000 Maryland EDC, Tax Exempt Adjustable Mode IDRBs, Series 1998, Weekly VRDNs (Morrison Health Care, Inc.)/(Wachovia Bank of NC, N.A. LOC) 1,000,000 4,375,000 Maryland Industrial Development Financing Authority, Special Facility Airport Revenue Bonds, Series 1999, 3.95% TOBs (Signature Flight Support Corp.)/(Bayerische Landesbank Girozentrale LOC), Optional Tender 6/1/2000 4,375,000 2,560,000 Maryland State Community Development Administration, Series 1990 A, Weekly VRDNs (College Estates)/(Allfirst LOC) 2,560,000 3,000,000 Maryland State Community Development Administration, Series 1990 B, Weekly VRDNs (Cherry Hill Apartment Ltd.)/(Bank of America, N.A. LOC) 3,000,000 3,000,000 Maryland State Energy Financing Administration, IDRB, Series 1988, Weekly VRDNs (Morningstar Foods, Inc.)/(First Union National Bank, Charlotte, N.C. LOC) 3,000,000 4,000,000 Wicomico County, MD EDRB, Series 1994, Weekly VRDNs (Field Container Co. LP)/( Northern Trust Co., Chicago, IL LOC) 4,000,000 TOTAL 28,389,000 MASSACHUSETTS-0.5% 3,000,000 Massachusetts IFA, IDRB, Series 1995, Weekly VRDNs (Dunsirn Industries, Inc. Project)/(Firstar Bank, Milwaukee LOC) 3,000,000 MINNESOTA-5.9% 1,400,000 Blaine, MN Series 1997, Weekly VRDNs (Plastic Enterprises, Inc.)/(Norwest Bank Minnesota, N.A. LOC) 1,400,000 3,600,000 Brooklyn Center, MN Shingle Creek Tower, Series 1999, 4.93% TOBs (Bank of America, N.A.), Mandatory Tender 4/1/2000 3,600,000 4,000,000 Coon Rapids, MN Series 1999, Weekly VRDNs (Assurance Mfg. Co., Inc.)/(Norwest Bank Minnesota, N.A. LOC) 4,000,000 10,195,000 2 Dakota County & Washington County MN, Housing & Redevelopment Authority, MERLOTS, Series J, 4.00% TOBs (United States Treasury COL)/(First Union National Bank, Charlotte, N.C. LIQ), Optional Tender 2/1/2000 10,195,000 5,000,000 2 Dakota County, Washington County & Anoka City, MN Housing & Redevelopment Authority, MERLOTS, Series H, 4.00% TOBs (United States Treasury COL)/(First Union National Bank, Charlotte, N.C. LIQ), Optional Tender 2/1/2000 5,000,000 2,600,000 Minneapolis, MN IDA, Series 1999, Weekly VRDNs (Viking Materials, Inc.)/(Norwest Bank Minnesota, N.A. LOC) 2,600,000 PRINCIPAL AMOUNT VALUE SHORT-TERM MUNICIPALS- continued 1 MINNESOTA-CONTINUED $ 2,755,000 Savage, MN Series 1998, Weekly VRDNs (Fabcon, Inc.)/(Norwest Bank Minnesota, N.A. LOC) $ 2,755,000 1,870,000 Springfield, MN Series 1998, Weekly VRDNs (Ochs Brick Co.)/(Norwest Bank Minnesota, N.A. LOC) 1,870,000 2,250,000 White Bear Lake, MN Series 1999, Weekly VRDNs (Taylor Corp.)/(Norwest Bank Minnesota, N.A. LOC) 2,250,000 2,000,000 White Bear Lake, MN Century Townhomes, Series 1997, 4.5475% TOBs (Westdeutsche Landesbank Girozentrale), Optional Tender 5/1/2000 2,000,000 TOTAL 35,670,000 MISSISSIPPI-7.3% 1,168,000 Greenville, MS IDA, Weekly VRDNs (Mebane Packaging Corp.)/(First Union National Bank, Charlotte, N.C. LOC) 1,168,000 6,455,000 Mississippi Business Finance Corp., Series 1995, Weekly VRDNs (Mississippi Baking Company LLC Project)/(Allfirst LOC) 6,455,000 5,400,000 Mississippi Business Finance Corp., Series 1995, Weekly VRDNs (Schuller International, Inc.)/(Bank of New York, New York LOC) 5,400,000 7,500,000 Mississippi Home Corp., Multifamily Housing Adjustable/Fixed Rate Revenue Bonds, Series 1997, Weekly VRDNs (Windsor Park Apartments)/(SouthTrust Bank of Alabama, Birmingham LOC) 7,500,000 9,805,000 2 Mississippi Home Corp., PT-218B, 3.65% TOBs (GNMA COL)/(Bayerische Hypotheken-und Vereinsbank AG LIQ), Optional Tender 7/6/2000 9,805,000 9,790,000 Mississippi Regional Housing Authority No. II, Series 1998, 4.00% TOBs (Bradford Park Apartments)/(Amsouth Bank N.A., Birmingham LOC), Mandatory Tender 10/1/2000 9,790,000 4,000,000 Warren County, MS IDA, Weekly VRDNs (Vesper Corp.)/(PNC Bank, N.A. LOC) 4,000,000 TOTAL 44,118,000 MISSOURI-1.6% 1,750,000 Kansas City, MO IDA, Series 1999, Weekly VRDNs (B&B Investments LLC)/(Norwest Bank Minnesota, N.A. LOC) 1,750,000 1,600,000 Springfield, MO IDA, Series 1999, Weekly VRDNs (Dabryan Coach Builders, Inc.)/(Norwest Bank Minnesota, N.A. LOC) 1,600,000 1,000,000 St. Louis, MO IDA, Series 1997, Weekly VRDNs (Cee Kay Supply)/(Commerce Bank, Kansas City, N.A. LOC) 1,000,000 5,000,000 St. Louis, MO IDA, Homer G. Phillips Dignity House, Series 1999, 5.10% TOBs (Bayerische Landesbank Girozentrale) 12/1/2000 5,000,000 TOTAL 9,350,000 MULTI STATE-11.2% 18,100,000 Charter Mac Floater Certificates Trust I, (Third Tranche) Weekly VRDNs (MBIA INS)/(Bayerische Landesbank Girozentrale, Commerzbank AG, Frankfurt and Credit Communal de Belgique, Brussels LIQs) 18,100,000 PRINCIPAL AMOUNT VALUE SHORT-TERM MUNICIPALS- continued 1 MULTI STATE-CONTINUED $ 20,000,000 Charter Mac Floater Certificates Trust I, (Fifth Tranche) Weekly VRDNs (MBIA INS)/(Bayerische Landesbank Girozentrale, Commerzbank AG, Frankfurt and Credit Communal de Belgique, Brussels LIQs) $ 20,000,000 29,338,000 Clipper Tax-Exempt Trust (AMT MultiState), Series A, Weekly VRDNs (State Street Bank and Trust Co. LIQ) 29,338,000 TOTAL 67,438,000 NEBRASKA-1.2% 6,995,000 Nebraska Investment Finance Authority, MERLOTS, Series 1999 A, Weekly VRDNs (GNMA COL)/(First Union National Bank, Charlotte, N.C. LIQ) 6,995,000 NEVADA-0.2% 550,000 Nevada State Department of Community & Industrial Development, Weekly VRDNs (Kinplex Co. Project)/(Credit Commercial de France, Paris LOC) 550,000 855,000 Sparks, NV IDRBs, Series 1996, Weekly VRDNs (The Antioch Publishing Co. Project)/(National City Bank, Ohio LOC) 855,000 TOTAL 1,405,000 NEW HAMPSHIRE-0.6% 3,685,000 New Hampshire Business Finance Authority, IDRB, Series A, Weekly VRDNs (Upper Valley Press)/(KeyBank, N.A. LOC) 3,685,000 NEW JERSEY-0.8% 4,995,000 2 New Jersey Housing & Mortgage Financing Authority, PT-285, 3.80% TOBs (MBIA INS)/(Landesbank Hessen- Thueringen, Frankfurt LIQ), Optional Tender 8/10/2000 4,995,000 NEW MEXICO-1.6% 4,755,000 Albuquerque, NM, Series 1996, Weekly VRDNs (Rose's Southwest Papers, Inc.)/(Norwest Bank Minnesota, N.A. LOC) 4,755,000 5,000,000 Los Lunas Village, NM, Series 1998, Weekly VRDNs (Wall Colmonoy Corp.)/(Michigan National Bank, Farmington Hills LOC) 5,000,000 TOTAL 9,755,000 NEW YORK-1.8% 3,800,000 Brookhaven-Comsewogue Union Free School District, NY, 4.25% TANs, 6/30/2000 3,806,820 7,000,000 New York City, NY Transitional Finance Authority, 1999 Trust Receipts, Weekly VRDNs (Bank of New York, New York LIQ) 7,000,001 TOTAL 10,806,821 OHIO-7.6% 34,100,000 Clipper Tax-Exempt Certificates Trust (Ohio AMT), Series 1999-4, Weekly VRDNs (Ohio HFA)/(GNMA COL)/(State Street Bank and Trust Co. LIQ) 34,100,000 3,045,000 Mentor, OH Adjustable Rate IDRBs, Series 1997, Weekly VRDNs (Risch Investments/Roll Kraft, Inc.)/(KeyBank, N.A. LOC) 3,045,000 PRINCIPAL AMOUNT VALUE SHORT-TERM MUNICIPALS- continued 1 OHIO-CONTINUED $ 980,000 Stark County, OH IDR Weekly VRDNs (Shearer's Foods, Inc.)/(Bank One, N.A. (Ohio) LOC) $ 980,000 4,000,000 Toledo-Lucas County, OH Port Authority, Airport Development Revenue Bonds, Series 1996-1, Weekly VRDNs (Burlington Air Express, Inc.)/(ABN AMRO Bank N.V., Amsterdam LOC) 4,000,000 3,720,000 Youngstown, OH Adjustable Rate Demand IDRBs, Series 1996 A, Weekly VRDNs (Cantar/Polyair Corp./Performa Corp.)/(HSBC Bank USA LOC) 3,720,000 TOTAL 45,845,000 OKLAHOMA-0.6% 3,610,000 Tulsa County, OK HFA, CDC Municipal Products, Inc., Class A Certificates, Series 1996 E, Weekly VRDNs (GNMA COL)/(CDC Municipal Products, Inc. LIQ) 3,610,000 OREGON-0.1% 495,000 Oregon State, EDRBs, Series 1988 B, Weekly VRDNs (Domaine Drouhin Oregon, Inc.)/(Wells Fargo Bank, N.A. LOC) 495,000 PENNSYLVANIA-2.0% 5,000,000 Clinton County, PA IDA, Solid Waste Disposal Revenue Bonds, Series 1992 A, 4.70% TOBs (International Paper Co.), Optional Tender 1/15/2001 5,000,000 6,745,000 2 Philadelphia, PA IDA, Variable Rate Certificates, Series 1998 P-1, 3.65% TOBs (Philadelphia Airport System)/(FGIC INS)/(Bank of America, N.A. LIQ), Optional Tender 7/20/2000 6,745,000 TOTAL 11,745,000 SOUTH CAROLINA-3.3% 5,200,000 Berkeley County, SC IDB, Series 1998, Weekly VRDNs (Nucor Corp.) 5,200,000 1,865,000 Berkeley County, SC IDB, Series 1989, Weekly VRDNs (W.W. Williams Co. Project)/(Bank One, N.A. Ohio, LOC) 1,865,000 3,690,000 South Carolina Job Development Authority Weekly VRDNs (Boozer Lumber Co.)/(SouthTrust Bank of Alabama, Birmingham LOC) 3,690,000 250,000 South Carolina Job Development Authority, Series 1988 B, Weekly VRDNs (Seacord Corp.)/(Credit Commercial de France, Paris LOC) 250,000 450,000 South Carolina Job Development Authority, Series 1990, Weekly VRDNs (NMFO Associates)/(Wachovia Bank of NC, N.A. LOC) 450,000 850,000 South Carolina Job Development Authority, Series 1990, Weekly VRDNs (Old Claussen's Bakery)/(Wachovia Bank of NC, N.A. LOC) 850,000 500,000 South Carolina Job Development Authority, Series 1990, Weekly VRDNs (Rice Street Association)/(Wachovia Bank of NC, N.A. LOC) 500,000 3,700,000 South Carolina Job Development Authority, Series 1996, Weekly VRDNs (PVC Container Corp. Project)/(Fleet Bank N.A. LOC) 3,700,000 660,000 South Carolina Job Development Authority, Series B, Weekly VRDNs (Osmose Wood Preserving)/(Credit Commercial de France, Paris LOC) 660,000 PRINCIPAL AMOUNT VALUE SHORT-TERM MUNICIPALS- continued 1 SOUTH CAROLINA-CONTINUED $ 2,620,000 York County, SC IDA, IDRBs, Series 1989, Weekly VRDNs (Sediver, Inc.)/(Banque Nationale de Paris LOC) $ 2,620,000 TOTAL 19,785,000 SOUTH DAKOTA-0.8% 4,230,000 South Dakota Housing Development Authority, Series 1999 I, 3.85% BANs, 9/28/2000 4,230,000 515,000 South Dakota Housing Development Authority, Homeownership Mortgage Bonds, 1997 Series E, Weekly VRDNs 515,000 TOTAL 4,745,000 TENNESSEE-4.1% 4,000,000 Carter County, TN IDB, Series 1983, Monthly VRDNs (Inland Container Corp.)/ (Temple-Inland, Inc. GTD) 4,000,000 1,500,000 Cheatham County, TN IDB, Series 1997 B, Weekly VRDNs (Triton Boat Co.)/(First American National Bank, Nashville, TN LOC) 1,500,000 2,000,000 Covington, TN IDB, Series 1992, Weekly VRDNs (Wallace Computer Services, Inc.)/(Wachovia Bank of NC, N.A. LOC) 2,000,000 1,500,000 Hamilton County, TN IDB, Series 1987, Weekly VRDNs (Seaboard Farms Project)/(SunTrust Bank, Atlanta LOC) 1,500,000 1,510,000 Hawkins County, TN IDB, Series 1995, Weekly VRDNs (Sekisui Ta Industries, Inc.)/(Bank of Tokyo- Mitsubishi Ltd. LOC) 1,510,000 2,000,000 Jackson, TN IDB, Solid Waste Facility Bonds, Series 1995, Weekly VRDNs (Florida Steel Corp.)/(Bank of America, N.A. LOC) 2,000,000 500,000 Knox County, TN IDB, Series 1996, Weekly VRDNs (Health Ventures, Inc.)/(SunTrust Bank, Nashville LOC) 500,000 4,000,000 Morristown, TN IDB, Series 1999, Weekly VRDNs (Tuff Torq Corp.)/(Bank of Tokyo-Mitsubishi Ltd. LOC) 4,000,000 3,000,000 Sevier County, TN Public Building Authority, Local Government Improvement Bonds, Series II-G-2, Weekly VRDNs (Knoxville, TN)/(AMBAC INS)/(KBC Bank N.V. LIQ) 3,000,000 800,000 South Pittsburg, TN IDB, Series 1996, Weekly VRDNs (Lodge Manufacturing Co.)/ (SunTrust Bank, Nashville LOC) 800,000 3,995,000 Tennessee Housing Development Agency, Series 1997 K, Weekly VRDNs (Bank of America, N.A. LIQ) 3,995,000 TOTAL 24,805,000 TEXAS-9.7% 4,000,000 Angelina and Neches River Authority, Texas, Solid Waste Disposal Revenue Bonds, Series 1993, 4.60% CP (Temple-Eastex, Inc.)/(Temple-Inland, Inc. GTD), Mandatory Tender 2/17/2000 4,000,000 2,500,000 Angelina and Neches River Authority, Texas, Solid Waste Disposal Revenue Bonds, Series 1993, 4.60% CP (Temple-Eastex, Inc.)/(Temple-Inland, Inc. GTD), Mandatory Tender 2/18/2000 2,500,000 PRINCIPAL AMOUNT VALUE SHORT-TERM MUNICIPALS- continued 1 TEXAS-CONTINUED $ 1,600,000 Angelina and Neches River Authority, Texas, Waste Disposal Revenue Bonds, Series 1998, 4.60% CP (Temple-Inland Forest Products Corp.)/(Temple- Inland, Inc. GTD), Mandatory Tender 2/17/2000 $ 1,600,000 5,755,000 Brazos River Authority, TX, Series 1999 B, Weekly VRDNs (TXU Electric Co.)/(Morgan Guaranty Trust Co., New York LOC) 5,755,000 5,420,000 2 Dallas-Fort Worth, TX Regional Airport, Custody Receipts, 4.05% TOBs (FGIC INS)/(Citibank N.A, New York LIQ), Optional Tender 5/1/2000 5,420,000 7,100,000 Gulf Coast, TX Waste Disposal Authority, Daily VRDNs (Amoco Corp.) 7,100,000 3,500,000 Harris County, TX HFDC, Series 1994, Daily VRDNs (Methodist Hospital, Harris County, TX) 3,500,000 3,500,000 Harris County, TX HFDC, Series 1997 A, Daily VRDNs (St. Luke's Episcopal Hospital)/(Bank of America, N.A., Morgan Guaranty Trust Co., New York and Toronto Dominion Bank LIQs) 3,500,000 5,000,000 Harris County, TX HFDC, Hospital Revenue Bonds, Series 1997 B, 3.70% CP (Memorial Hospital System)/(MBIA INS)/(Chase Bank of Texas LIQ), Mandatory Tender 3/1/2000 5,000,000 2,200,000 Harris County, TX HFDC, Unit Priced Demand Adjustable Revenue Bonds, Series 1997 B, Daily VRDNs (St. Luke's Episcopal Hospital)/(Bank of America, N.A., Morgan Guaranty Trust Co., New York and Toronto Dominion Bank LIQs) 2,200,000 3,210,000 Houston, TX Airport System, Series 1998 A, PT- 1102, Weekly VRDNs (FGIC INS)/(Merrill Lynch Capital Services, Inc. LIQ) 3,210,000 2,100,000 Lubbock, TX IDC, Daily VRDNs (McLane Co., Inc.)/(Bank of America, N.A. LOC) 2,100,000 8,000,000 McAllen, TX IDA, Series 1998, Weekly VRDNs (NiTek McAllen LLC)/(Bank of Tokyo-Mitsubishi Ltd. LOC) 8,000,000 4,545,000 Saginaw, TX IDA, Series 1998, Weekly VRDNs (Glad Investing Partners Ltd.)/(Bank One, Texas N.A. LOC) 4,545,000 TOTAL 58,430,000 VIRGINIA-3.5% 5,000,000 Campbell County, VA IDA, Solid Waste Disposal Facilities Revenue ACES, Weekly VRDNs (Georgia- Pacific Corp.)/(SunTrust Bank, Atlanta LOC) 5,000,000 10,000,000 2 Fairfax County, VA EDA, Trust Receipt, FR/RI-A15, Series 1999, 3.55% TOBs (AMBAC INS)/(National Westminster Bank PLC, London LIQ), Optional Tender 2/1/2000 10,000,000 6,000,000 Halifax, VA IDA, MMMs, PCR, 3.85% CP (Virginia Electric Power Co.), Mandatory Tender 3/10/2000 6,000,000 TOTAL 21,000,000 WASHINGTON-1.2% 4,000,000 2 Washington State, PT-1187, 3.95% TOBs (Merrill Lynch Capital Services, Inc. LIQ), Optional Tender 10/19/2000 4,000,000 3,000,000 Yakima County, WA Public Corp., Series 1999, Weekly VRDNs (John I. Haas, Inc.)/(Bayerische Hypotheken-und Vereinsbank AG and Deutsche Bank AG LOCs) 3,000,000 TOTAL 7,000,000 PRINCIPAL AMOUNT VALUE SHORT-TERM MUNICIPALS- continued 1 WEST VIRGINIA-0.4% $ 2,335,000 Berkeley County, WV County Commission, IDB, Series 1994, Weekly VRDNs (Brentwood Industries, Inc. Project)/(First Union National Bank, Charlotte, NC LOC) $ 2,335,000 WISCONSIN-1.6% 2,000,000 Milwaukee, WI Series 1997, 3.95% TOBs (Signature Flight Support Corp.)/(Bayerische Landesbank Girozentrale LOC), Optional Tender 6/1/2000 2,000,000 1,000,000 New Berlin, WI Series 1997 A, Weekly VRDNs (Sunraider LLC/New Berlin Plastics, Inc.)/(Bank One, Wisconsin, N.A. LOC) 1,000,000 6,905,000 2 Wisconsin Housing & EDA, PT-90, 3.175% TOBs (Banque Nationale de Paris LIQ), Optional Tender 2/17/2000 6,905,000 TOTAL 9,905,000 TOTAL INVESTMENTS (AMORTIZED COST) 3 $ 600,102,821
Securities that are subject to alternative minimum tax represent 91.6% of the portfolio as calculated based upon total portfolio market value. 1 The fund may only invest in securities rated in one of the two highest short-term rating categories by nationally recognized statistical rating organizations ("NRSROs") or unrated securities of comparable quality. An NRSRO's two highest rating categories are determined without regard for sub-categories and gradations. For example, securities rated SP-1+, SP-1 or SP-2 by Standard & Poor's, MIG-1 or MIG-2 by Moody's Investors Service, or F-1+, F-1 or F-2 by Fitch IBCA, Inc., are all considered rated in one of the two highest short-term rating categories. Securities rated in the highest short-term rating category (and unrated securities of comparable quality) are identified as First Tier securities. Securities rated in the second highest short-term rating category (and unrated securities of comparable quality) are identified as Second Tier securities. The fund follows applicable regulations in determining whether a security is rated and whether a security rated by multiple NRSROs in different rating categories should be identified as a First or Second Tier security. At January 31, 2000, the portfolio securities were rated as follows: Tier Rating Based on Total Market Value (Unaudited)
FIRST TIER SECOND TIER 96.85% 3.15%
2 Denotes a restricted security which is subject to restrictions on resale under federal securities laws. These securities have been deemed liquid based upon criteria approved by the fund's Board of Trustees. At January 31, 2000 these securities amounted to $84,996,000 which represents 14.1% of net assets. 3 Also represents cost for federal tax purposes. Note: The categories of investments are shown as a percentage of net assets ($602,128,089) at January 31, 2000. The following acronyms are used throughout this portfolio: ACES -Adjustable Convertible Extendable Securities AMBAC -American Municipal Bond Assurance Corporation AMT -Alternative Minimum Tax BANs -Bond Anticipation Notes COL -Collateralized CP -Commercial Paper EDA -Economic Development Authority EDC -Economic Development Corporation EDRB -Economic Development Revenue Bonds FGIC -Financial Guaranty Insurance Company GNMA -Government National Mortgage Association GTD -Guaranteed HFA -Housing Finance Authority HFDC -Health Facility Development Corporation IDA -Industrial Development Authority IDB -Industrial Development Bond IDC -Industrial Development Corporation IDRB -Industrial Development Revenue Bond IFA -Industrial Finance Authority INS -Insured LIQ -Liquidity Agreement LOC -Letter of Credit MBIA - -Municipal Bond Investors Assurance MERLOTS -Municipal Exempt Receipts - Liquidity Optional Tender Series MMMs -Money Market Municipals PCR -Pollution Control Revenue SFM -Single Family Mortgages TANs -Tax Anticipation Notes TOBs - -Tender Option Bonds VRDNs -Variable Rate Demand Notes See Notes which are an integral part of the Financial Statements Portfolio of Investments Prime Cash Obligations Fund January 31, 2000 (unaudited)
PRINCIPAL AMOUNT VALUE SHORT TERM NOTES-10.6% BANKING-1.0% $ 30,000,000 Bank One, Illinois, N.A., 6.025%, - 6.07%, 10/10/2000 - 11/13/2000 $ 29,985,690 16,000,000 Westpac Banking Corp. Ltd., Sydney, 6.22%, 11/30/2000 15,989,736 TOTAL 45,975,426 BROKERAGE-2.9% 138,000,000 Goldman Sachs Group, Inc., 5.831% - 6.010%, 3/24/2000 - 4/26/2000 138,000,000 FINANCE - AUTOMOTIVE-0.2% 3,536,571 Honda Auto Lease Trust 1999-A, Class A-1, 5.445%, 8/15/2000 3,536,571 7,862,118 Toyota Auto Receivables 1999-A Owner Trust, Class A-1, 5.365%, 8/11/2000 7,862,118 TOTAL 11,398,689 FINANCE - COMMERCIAL-6.1% 153,500,000 Beta Finance, Inc., 5.10% - 5.52%, 2/16/2000 - 6/12/2000 153,499,051 136,000,000 Sigma Finance, Inc., (Guaranteed by Sigma Finance Corp.), 6.00% - 6.78%, 8/11/2000 - 2/28/2001 136,000,000 TOTAL 289,499,051 FINANCE - EQUIPMENT-0.4% 4,402,965 Caterpillar Financial Asset Trust 1999-A, Class A-1, 5.365%, 7/25/2000 4,402,965 12,416,035 Copelco Capital Funding LLC 1999-B, Class A-1, 5.937%, 10/18/2000 12,416,035 176,431 Navistar Financial 1999-A Owner Trust, Class A-1, 5.003%, 6/15/2000 176,431 TOTAL 16,995,431 INSURANCE-0.0% 12,000 Americredit Automobile Receivables Trust 2000-A, Class A-1, 6.040%, 2/5/2001 12,000 TOTAL SHORT TERM NOTES 501,880,597 CERTIFICATES OF DEPOSIT- 4.3% BANKING-4.3% 27,000,000 Bank of Montreal, 5.20%, 5/12/2000 26,996,404 40,000,000 Bank of Scotland, Edinburgh, 5.95%, 4/12/2000 39,999,924 26,000,000 Bayerische Landesbank Girozentrale, 5.115%, 3/21/2000 25,997,103 39,000,000 Canadian Imperial Bank of Commerce, 4.987% - 5.16%, 2/7/2000 - 2/23/2000 38,999,432 PRINCIPAL AMOUNT VALUE CERTIFICATES OF DEPOSIT- continued BANKING-CONTINUED $ 25,000,000 Commerzbank AG, Frankfurt, 5.16% - 5.24%, 4/7/2000 - 5/15/2000 $ 24,997,585 45,000,000 UBS AG, Stamford, 6.080% - 6.260%, 11/13/2000 - 12/11/2000 44,976,726 TOTAL CERTIFICATES OF DEPOSIT 201,967,174 COMMERCIAL PAPER-46.0% 2 BANKING-25.6% 80,000,000 Abbey National N.A. Corp., (Guaranteed by Abbey National Bank PLC, London), 5.906% - 5.917%, 4/13/2000 - 4/25/2000 78,971,200 39,000,000 Asset Securitization Cooperative Corp., 5.92%, 2/24/2000 38,856,729 50,000,000 Corporate Asset Funding Co., Inc. (CAFCO), 5.808%, 3/22/2000 49,600,694 130,000,000 Cregem North America, Inc., (Guaranteed by Credit Communal de Belgique, Brussels), 5.893% - 6.020%, 2/8/2000 - 4/17/2000 129,406,876 65,000,000 Den Danske Corp., Inc., (Guaranteed by Den Danske Bank A/S), 5.936% - 6.069%, 4/25/2000 - 6/21/2000 63,814,472 30,000,000 Edison Asset Securitization LLC, 5.984%, 4/25/2000 29,587,700 125,594,000 Falcon Asset Securitization Corp., 5.699% - 5.746%, 2/1/2000 - 2/17/2000 125,379,996 28,805,000 Fountain Square Commercial Funding Corp., (Fifth Third Bank, Cincinnati SA), 5.749% - 5.956%, 2/22/2000 - 4/24/2000 28,549,050 61,595,000 Greenwich Funding Corp., 5.119% - 5.938%, 2/1/2000 - 4/11/2000 61,365,832 238,682,000 Market Street Funding Corp., (PNC Bank, N.A. LOC), 5.739% - 5.849%, 2/22/2000 - 3/6/2000 237,760,595 30,000,000 PREFCO-Preferred Receivables Funding Co., 5.789%, 3/7/2000 29,832,292 47,000,000 Park Avenue Receivables Corp., 5.741%, 2/25/2000 46,821,400 75,000,000 Receivables Capital Corp., 5.707% - 5.937%, 2/8/2000 - 2/9/2000 74,911,569 30,000,000 Svenska Handelsbanken, Inc., (Guaranteed by Svenska Handelsbanken, Stockholm), 5.928%, 4/12/2000 29,654,467 117,398,000 Three Rivers Funding Corp., 5.701% - 5.756%, 2/11/2000 - 2/22/2000 117,150,086 25,000,000 Westpac Capital Corp., (Guaranteed by Westpac Banking Corp. Ltd., Sydney), 5.967%, 5/2/2000 24,633,472 50,000,000 Westpac Trust Securities NZ Ltd., (Guaranteed by Westpac Banking Corp. Ltd., Sydney), 5.936%, 4/25/2000 49,317,500 TOTAL 1,215,613,930 BROKERAGE-1.9% 90,000,000 Morgan Stanley, Dean Witter & Co., 5.927% - 5.942%, 4/17/2000 - 4/24/2000 88,832,778 CONSUMER PRODUCTS-2.3% 108,000,000 Diageo Capital PLC, (Guaranteed by Diageo PLC), 5.919% - 6.008%, 3/1/2000 - 4/11/2000 107,166,751 PRINCIPAL AMOUNT VALUE COMMERCIAL PAPER-continued 2 FINANCE - AUTOMOTIVE-0.4% $ 20,000,000 General Motors Acceptance Corp., 5.459%, 3/6/2000 $ 19,900,833 FINANCE - COMMERCIAL-6.3% 65,000,000 CIT Group Holdings, Inc., 5.811%, 2/1/2000 65,000,000 30,000,000 Eureka Securitization, Inc., 5.701%, 2/14/2000 29,938,575 42,500,000 GE Capital International Funding, Inc., (Guaranteed by General Electric Capital Corp.), 5.994% - 6.093%, 3/9/2000 - 4/11/2000 42,053,999 140,000,000 General Electric Capital Corp., 5.917% - 6.032%, 2/25/2000 - 5/12/2000 138,259,428 25,000,000 Sigma Finance, Corp., (Guaranteed by Sigma Finance Corp.), 5.717% - 5.959%, 2/4/2000 - 4/14/2000 24,816,829 TOTAL 300,068,831 FINANCE - RETAIL-0.3% 15,000,000 CommoLoCo, Inc, (Guaranteed by American General Finance Corp.), 6.104%, 3/9/2000 14,907,963 INSURANCE-9.2% 200,000,000 Aspen Funding Corp., (Insured by MBIA), 5.757%, 2/17/2000 199,490,667 54,300,000 CXC, Inc., 5.927% - 5.980%, 2/2/2000 - 4/10/2000 53,863,333 60,000,000 Marsh USA, Inc., 5.754% - 6.040%, 2/16/2000 - 7/28/2000 59,465,567 125,430,000 Sheffield Receivables Corp., 5.758% - 6.023%, 2/11/2000 - 2/28/2000 125,026,814 TOTAL 437,846,381 TOTAL COMMERCIAL PAPER 2,184,337,467 LOAN PARTICIPATION-3.9% ELECTRICAL EQUIPMENT-0.4% 16,700,000 Mt. Vernon Phenol Plant Partnership, (Guaranteed by General Electric Co.), 6.120%, 5/17/2000 16,700,000 FINANCE - AUTOMOTIVE-2.5% 120,000,000 General Motors Acceptance Corp., Mortgage of PA, (Guaranteed by General Motors Acceptance Corp.), 5.620% - 6.863%, 2/3/2000 - 3/15/2000 120,000,000 FINANCE - EQUIPMENT-1.0% 50,000,000 Pitney Bowes Credit Corp., 5.809%, 2/10/2000 49,927,750 TOTAL LOAN PARTICIPATION 186,627,750 PRINCIPAL AMOUNT VALUE VARIABLE RATE OBLIGATIONS- 22.6% 3 BANKING-10.2% $ 2,000,000 Albuquerque, NM, Series 1997 El Canto, Inc., (Norwest Bank Minnesota, N.A. LOC), 6.290%, 2/3/2000 $ 2,000,000 46,000,000 Asset Securitization Cooperative Corp., 5.831% - 5.903%, 2/7/2000 - 2/14/2000 45,999,580 1,600,000 Beech Grove, IN, Series 1997, Poster Display Co. Project, (Bank One, Indiana, N.A. LOC), 5.940%, 2/3/2000 1,600,000 1,925,000 C. W. Caldwell, Inc., Sweetbriar Assisted Living Facility, Project, (Huntington National Bank, Columbus, OH LOC), 5.89%, 2/3/2000 1,925,000 5,500,000 Capital One Funding Corp., Series 1993-A, (Bank One, Ohio N.A. LOC), 5.940%, 2/3/2000 5,500,000 21,270,000 Capital One Funding Corp., Series 1999-A, (Bank One, Kentucky LOC), 5.940%, 2/3/2000 21,270,000 2,845,000 Casna LP, Series 1997, (Huntington National Bank, Columbus, OH LOC), 5.980%, 2/3/2000 2,845,000 9,965,000 Cedarville College OH, Series 1998, (KeyBank, N.A. LOC), 6.100%, 2/3/2000 9,965,000 4,515,000 Chartiers Valley Industrial & Commercial Development Authority, Woodhaven Convalescent Center, Series 1997-B, (Bank One, Ohio, N.A. LOC), 5.980%, 2/3/2000 4,515,000 1,440,000 Children's Defense Fund, (Allfirst LOC), 5.960%, 2/1/2000 1,440,000 5,715,000 Colonie, NY IDA, Mechanical Technology, Inc. Project, Series 1998 A, (KeyBank, N.A. LOC), 5.900%, 2/3/2000 5,715,000 56,000,000 Comerica Bank, 5.791% - 5.864%, 2/9/2000 - 2/25/2000 55,974,616 10,150,000 Cuyahoga County, OH, Gateway Arena Project, Series 1992-B, (Canadian Imperial Bank of Commerce LOC), 5.940%, 2/2/2000 10,150,000 9,450,000 Elsinore Properties, LP, Series 1999, (Fifth Third Bank, Cincinnati LOC), 5.830%, 2/3/2000 9,450,000 1,020,000 Flowform, Inc., (Huntington National Bank, Columbus, OH LOC), 5.980%, 2/3/2000 1,020,000 4,000,000 Frank Parsons Paper Co., Inc., Series 1999, (Allfirst LOC), 5.871%, 2/4/2000 4,000,000 6,580,000 Franklin County, OH, Edison Welding, Series 1995, (Huntington National Bank, Columbus, OH LOC), 5.980%, 2/3/2000 6,580,000 11,730,000 Georgetown, KY Educational Institution, Series 1997- A, (Bank One, Kentucky LOC), 5.940%, 2/3/2000 11,730,000 4,130,000 Georgia Ports Authority, Colonel's Island Terminal Project, Series 1996-A, Revenue Bonds, (SunTrust Bank, Atlanta LOC), 5.850%, 2/2/2000 4,130,000 1,380,000 Gerald T. Thom, Trustee U.A.D., March 27, 1997, (Huntington National Bank, Columbus, OH LOC), 5.980%, 2/3/2000 1,380,000 1,480,000 Gettysburg Area IDA, Hanover Lantern, Inc. Project, Series 1998-B, (Allfirst LOC), 5.860%, 2/2/2000 1,480,000 PRINCIPAL AMOUNT VALUE VARIABLE RATE OBLIGATIONS- continued 3 BANKING-CONTINUED $ 11,180,000 Healthcare Network Properties LLC, Series A, (National City Bank, Michigan/Illinois LOC), 5.790%, 2/3/2000 $ 11,180,000 8,400,000 IT Spring Wire LLC, Series 1997, (Fifth Third Bank, Cincinnati LOC), 5.820%, 2/3/2000 8,400,000 3,877,000 International Processing Corp., (Bank One, Kentucky LOC), 5.990%, 2/3/2000 3,877,000 2,000,000 Kit Carson County, CO, Midwest Farms LLC Project, (Norwest Bank Minnesota, N.A. LOC), 5.950%, 2/2/2000 2,000,000 6,000,000 La Verne City, IDA, Mobile Tool International, Inc. Project, Series 1998-B, (Fleet Bank N.A. LOC), 5.870%, 2/3/2000 6,000,000 54,724,185 Liquid Asset Backed Securities Trust, Series 1997-1, (Westdeutsche Landesbank Girozentrale Swap Agreement), 5.793%, 2/15/2000 54,724,185 7,730,000 Lombard IL, Multifamily Housing, MHRV, Series 1999, Clover Creek Apartments (Bank One, Arizona N.A. LOC), 5.98%, 2/3/2000 7,730,000 32,670,000 M/S Land, LLC, (Bank One, Illinois, N.A. LOC), 5.99%, 2/3/2000 32,670,000 5,900,000 MMR Funding I, Series A, (Bayerische Hypotheken-und Vereinsbank AG LOC), 5.94%, 2/3/2000 5,900,000 4,375,000 Maryland EDC, Human Genome Sciences, Series 1999A, (Allfirst LOC), 5.86%, 2/1/2000 4,375,000 13,125,000 Maryland EDC, Human Genome Sciences, Series 1999B, (First Union National Bank, Charlotte, NC LOC), 5.86%, 2/1/2000 13,125,000 4,770,000 Medilodge Group, Meadowbrook Project, (KeyBank, N.A. LOC), 6.03%, 2/3/2000 4,770,000 1,280,000 Michigan State Housing Development Authority, Series 1999B, Lexington Place Apartments, (Bank of America, N.A. LOC), 5.78%, 2/3/2000 1,280,000 10,000,000 Mississippi Business Finance Corp., Kohler Co. Project, (Wachovia Bank of NC, N.A. LOC), 5.80%, 2/3/2000 10,000,000 2,990,000 New Berlin, WI, Sunraider LLC, Series 1997-B, (Bank One, Wisconsin, N.A. LOC), 5.98%, 2/3/2000 2,990,000 4,100,000 New Jersey EDA, Morey Organization, Inc. Project Series 1997, (First Union National Bank, Charlotte, NC LOC), 5.91%, 2/2/2000 4,100,000 2,565,000 New Jersey EDA, Phoenix Realty Partners, (First Union National Bank, Charlotte, NC LOC), 5.910%, 2/2/2000 2,565,000 9,130,000 O.K.I. Supply Co., Series 1998, (Fifth Third Bank, Cincinnati LOC), 5.83%, 2/3/2000 9,130,000 3,325,000 Oakwoods Master LP, Series 1997, (Amsouth Bank N.A., Birmingham LOC), 6.16%, 2/3/2000 3,325,000 3,525,000 Olszeski Properties, Inc., Series 1988, (Bank One, Ohio, N.A. LOC), 6.03%, 2/3/2000 3,525,000 10,000,000 Park Avenue Receivables Corp., 5.475%, 2/3/2000 10,000,000 PRINCIPAL AMOUNT VALUE VARIABLE RATE OBLIGATIONS- continued 3 BANKING-CONTINUED $ 1,000,000 Poseyville, IN, North American Green, Series 1999, (Fifth Third Bank, Cincinnati LOC), 6.04%, 2/3/2000 $ 1,000,000 4,033,000 Primex Funding Corp., Series 1997-A, (Bank One, Indiana, N.A. LOC), 5.94%, 2/3/2000 4,033,000 1,776,912 1 Rabobank Optional Redemption Trust, Series 1997-101, 6.186%, 4/20/2000 1,776,912 9,635,000 Royal Wine Corp. and KFP International Ltd., Series 1998, (KeyBank, N.A. LOC), 6.10%, 2/3/2000 9,635,000 7,000,000 Sandridge Food Corp., (Bank One, Ohio, N.A. LOC), 5.99%, 2/3/2000 7,000,000 9,600,000 Smith Land Improvement Corp., Series 1999, (Allfirst LOC), 5.860%, 2/1/2000 9,600,000 3,810,000 Solon Properties LLC, (Huntington National Bank, Columbus, OH LOC), 5.98%, 2/3/2000 3,810,000 2,130,000 Spitzer Group, Series 1998-C, (Bank One, Ohio, N.A. LOC), 5.98%, 2/3/2000 2,130,000 1,100,000 TDB Realty Ltd., (Huntington National Bank, Columbus, OH LOC), 5.98%, 2/3/2000 1,100,000 2,160,000 Tallahassee-Leon County Civic Center Authority, Series 1998-C, (SunTrust Bank, Central Florida LOC), 5.85%, 2/2/2000 2,160,000 3,280,000 Team Rahal of Pittsburgh, Inc., Series 1997, (Huntington National Bank, Columbus, OH LOC), 5.98%, 2/3/2000 3,280,000 10,000,000 Three Rivers Funding Corp., 5.88%, 2/1/2000 10,000,000 2,050,000 Trap Rock Industries, Inc., Series 1997, (First Union National Bank, Charlotte, NC LOC), 5.91%, 2/2/2000 2,050,000 885,000 Triple O LLC, Series 1999, (Huntington National Bank, Columbus, OH LOC), 6.03%, 2/3/2000 885,000 5,565,000 VLF LLC, The Village of Lovejoy, Fountain Project, (KeyBank, N.A. LOC), 6.10%, 2/3/2000 5,565,000 2,715,000 Van Wyk Enterprises, Inc., (Huntington National Bank, Columbus, OH LOC), 5.98%, 2/3/2000 2,715,000 10,000,000 Wildcat Management Ltd., Inc., Series 1999, (Firstar Bank, N.A., Cincinnati LOC), 5.90%, 2/3/2000 10,000,000 TOTAL 487,075,293 BROKERAGE-2.5% 117,600,000 Morgan Stanley, Dean Witter & Co., 5.83%, 2/4/2000 117,600,000 FINANCE - AUTOMOTIVE-1.9% 88,800,000 General Motors Acceptance Corp., Mortgage of PA, (General Motors Acceptance Corp. LOC), 5.83% - 5.924%, 3/7/2000 88,442,874 FINANCE - COMMERCIAL-1.4% 68,800,000 Sigma Finance, Inc., (Guaranteed by Sigma Finance Corp.), 5.83% - 6.296%, 2/1/2000 - 3/28/2000 68,800,000 PRINCIPAL AMOUNT VALUE VARIABLE RATE OBLIGATIONS- continued 3 FINANCE - EQUIPMENT-0.2% $ 9,000,000 Deere (John) Capital Corp., 6.23%, 2/1/2000 $ 9,001,452 INSURANCE-6.4% 24,000,000 Allstate Life Insurance Co., 6.113% - 6.616%, 2/1/2000 24,000,000 27,000,000 First Allmerica Financial Life Insurance Co., 6.306%, 2/3/2000 27,000,000 15,000,000 GE Life and Annuity Assurance Co., 6.20%, 3/1/2000 15,000,000 62,400,000 Jackson National Life Insurance Co., 5.90% - 6.271%, 2/1/2000 - 4/30/2000 62,400,000 15,087,000 1 Liquid Asset Backed Securities Trust, Series 1997-3 Sr. Notes, (AMBAC INS), 6.151%, 2/27/2000 15,087,000 15,835,324 1 Liquid Asset Backed Securities Trust, Sr. Notes (Series 1998-1), (AMBAC INS), 5.819%, 2/27/2000 15,835,324 24,000,000 Peoples Security Life Insurance Co., 5.93% - 6.41%, 2/1/2000 24,000,000 20,000,000 Principal Life Insurance Co., 6.26%, 3/1/2000 20,000,000 15,000,000 Protective Life Insurance Co., 6.355%, 2/1/2000 15,000,000 30,000,000 Security Life of Denver Insurance Co., 6.100% - 6.359%, 2/10/2000 - 3/28/2000 30,000,000 35,000,000 Transamerica Life Insurance and Annuity Co., 6.094%, 3/1/2000 - 4/1/2000 35,000,000 10,000,000 Transamerica Occidental Life Insurance Co., 6.329%, 2/29/2000 10,000,000 10,000,000 Travelers Insurance Co., 6.094%, 3/1/2000 10,000,000 TOTAL 303,322,324 TOTAL VARIABLE RATE OBLIGATIONS 1,074,241,943 TIME DEPOSIT-4.2% BANKING-4.2% 200,000,000 SunTrust Bank, Atlanta, 5.875%, 2/1/2000 200,000,000 REPURCHASE AGREEMENTS-8.8% 4 138,100,000 Bank of America, 5.80%, dated 1/31/2000, due 2/1/2000 138,100,000 150,000,000 Deutsche Bank Financial, Inc., 5.80%, dated 1/31/2000, due 2/1/2000 150,000,000 PRINCIPAL AMOUNT VALUE REPURCHASE AGREEMENTS- continued 4 $ 56,200,000 Donaldson, Lufkin and Jenrette Securities Corp., 5.70%, dated 1/31/2000, due 2/1/2000 $ 56,200,000 75,000,000 Toronto Dominion Securities (USA), Inc., 5.69%, dated 1/31/2000, due 2/1/2000 75,000,000 TOTAL REPURCHASE AGREEMENTS 419,300,000 TOTAL INVESTMENTS (AT AMORTIZED COST) 5 $ 4,768,354,931
1 Denotes a restricted security that has been deemed liquid by criteria approved by the fund's Board of Trustees. At January 31, 2000, these securities amounted to $32,699,236 which represents 0.69% of net assets. 2 Each issue shows the rate of discount at the time of purchase for discount issues, or the coupon for interest bearing issues. 3 Current rate and next reset date shown. 4 The repurchase agreements are fully collateralized by U.S. government and/or agency obligations based on market prices at the date of the portfolio. The investments in the repurchase agreements are through participation in joint accounts with other Federated funds. 5 Also represents cost for federal tax purposes. Note: The categories of investments are shown as a percentage of net assets ($4,747,906,186) at January 31, 2000. The following acronyms are used throughout this portfolio: AMBAC -American Municipal Bond Assurance Corporation EDA -Economic Development Authority EDC -Economic Development Corp. IDA -Industrial Development Authority INS -Insured LOC -Letter of Credit MBIA -Municipal Bond Investors Assurance See Notes which are an integral part of the Financial Statements Portfolio of Investments Prime Value Obligations Fund January 31, 2000 (unaudited)
PRINCIPAL AMOUNT VALUE SHORT-TERM NOTES-8.6% BANKING-0.9% $ 15,000,000 Bank One, Illinois, N.A., 6.025% - 6.070%, 10/10/2000 - 11/13/2000 $ 14,993,288 5,000,000 Westpac Banking Capital Corp. Ltd., Sydney, 6.220%, 11/30/2000 4,996,792 TOTAL 19,990,080 BROKERAGE-2.2% 50,000,000 Goldman Sachs Group, Inc., 5.900% - 6.00%, 3/14/2000 - 3/24/2000 50,000,000 FINANCE - COMMERCIAL-5.3% 95,500,000 Beta Finance, Inc., 5.000% - 5.700%, 2/1/2000 - 6/28/2000 95,499,226 9,000,000 FINOVA Capital Corp., 6.170% - 6.45%, 6/1/2000 - 6/12/2000 9,006,460 18,000,000 Sigma Finance, Inc., 6.000% - 6.780%, 8/11/2000 - 2/28/2001 18,000,000 TOTAL 122,505,686 FINANCE - EQUIPMENT-0.2% 5,227,804 Copelco Capital Funding LLC, Series 1999-B, Class A-1, 5.937%, 10/18/2000 5,227,804 105,275 Heller Equipment Asset Receivables Trust, Series 1999-1, Class A1, 4.948%, 5/13/2000 105,275 TOTAL 5,333,079 INSURANCE-0.0% 5,500 Americredit Automobile Receivables Trust, Series 2000-A, Class A1, 6.040%, 2/5/2001 5,500 TOTAL SHORT-TERM NOTES 197,834,345 CERTIFICATES OF DEPOSIT- 14.9% BANKING-14.9% 15,000,000 Bank of Nova Scotia, Toronto, 5.290%, 3/9/2000 14,999,415 25,000,000 Bank of Scotland, Edinburgh, 5.950%, 4/12/2000 24,999,952 50,000,000 Bank One, Illinois, N.A., 6.030%, 11/13/2000 49,971,934 10,000,000 Bayerische Landesbank Girozentrale, 5.150%, 3/21/2000 9,999,549 25,000,000 Canadian Imperial Bank of Commerce, 5.160% - 5.340%, 2/23/2000 - 3/21/2000 24,999,080 20,000,000 Commerzbank AG, Frankfurt, 5.290%, 5/15/2000 19,997,259 30,000,000 Halifax PLC, 5.900%, 3/31/2000 30,000,000 121,000,000 MBNA America Bank, N.A., 6.000% - 6.030%, 4/12/2000 - 4/19/2000 121,000,000 50,000,000 Svenska Handelsbanken, Stockholm, 5.180%, 3/20/2000 49,998,100 TOTAL CERTIFICATES OF DEPOSIT 345,965,289 PRINCIPAL AMOUNT VALUE COMMERCIAL PAPER-34.2% 1 BANKING-12.1% $ 28,000,000 Abbey National N.A. Corp., (Guaranteed by Abbey National Bank PLC, London), 5.906%, 4/25/2000 $ 27,619,760 20,000,000 Australia & New Zealand ANZ, Inc., (Guaranteed by Australia & New Zealand Banking Group, Melbourne), 5.928%, 4/12/2000 19,769,644 71,000,000 Cregem North America, Inc., (Guaranteed by Credit Communal de Belgique, Brussels), 5.920% - 6.020%, 2/14/2000 - 2/18/2000 70,829,760 24,000,000 Den Danske Corp., Inc., (Guaranteed by Den Danske Bank A/S), 6.007% - 6.069%, 5/31/2000 - 6/21/2000 23,460,100 43,594,000 Gotham Funding Corp., 5.718% - 5.786%, 2/2/2000 - 2/15/2000 43,533,411 50,000,000 Market Street Funding Corp., (PNC Bank, N.A. LOC), 5.750%, 2/23/2000 49,825,222 10,000,000 Svenska Handelsbanken, Inc., (Guaranteed by Svenska Handelsbanken, Stockholm), 5.928%, 4/12/2000 9,884,822 37,000,000 Westpac Capital Corp., (Guaranteed by Westpac Banking Corp. Ltd., Sydney), 5.967%, 5/2/2000 36,457,539 TOTAL 281,380,258 BROKERAGE-2.7% 32,000,000 Goldman Sachs Group, Inc., 5.935%, 4/28/2000 31,547,600 10,000,000 Morgan Stanley, Dean Witter & Co., 5.927%, 4/24/2000 9,865,356 21,000,000 Salomon Smith Barney Holdings, Inc., 5.922%, 4/3/2000 20,788,425 TOTAL 62,201,381 CHEMICALS-0.8% 6,955,000 IMC Global, Inc., 6.454%, 2/7/2000 6,947,639 10,516,000 Rohm & Haas Co., 6.347% - 6.475%, 2/4/2000 10,510,473 TOTAL 17,458,112 CONTAINER/PACKAGING-0.3% 7,300,000 Crown Cork & Seal Co., Inc., 5.846% - 5.858%, 2/15/2000 - 2/24/2000 7,279,094 FINANCE - COMMERCIAL-10.9% 20,000,000 Corporate Asset Funding Co., Inc., 5.808%, 3/22/2000 19,840,278 20,000,000 Edison Asset Securitization LLC, 6.003%, 5/15/2000 19,659,111 41,135,000 Falcon Asset Securitization Corp., 5.697% - 5.750%, 2/10/2000 - 2/22/2000 41,007,601 50,000,000 General Electric Capital Corp., 5.917% - 6.032%, 2/25/2000 - 3/10/2000 49,759,156 83,013,000 Receivables Capital Corp., 5.937% - 5.981%, 2/8/2000 - 4/20/2000 82,528,698 41,000,000 Sigma Finance, Inc., (Guaranteed by Sigma Finance Corp.), 5.941% - 5.941%, 4/3/2000 - 5/10/2000 40,363,871 TOTAL 253,158,715 PRINCIPAL AMOUNT VALUE COMMERCIAL PAPER-continued 1 HOMEBUILDING-0.5% $ 11,700,000 Centex Corp., 5.801% - 5.832%, 2/2/2000 - 2/10/2000 $ 11,689,740 INDUSTRIAL PRODUCTS-0.5% 11,160,000 Praxair, Inc., 6.421%, 2/1/2000 11,160,000 INSURANCE-5.4% 37,000,000 CXC, Inc., 5.947%, 4/7/2000 36,601,818 87,860,000 Sheffield Receivables Corp., 5.707% - 6.022%, 2/2/2000 - 2/22/2000 87,733,696 TOTAL 124,335,514 RETAIL-1.0% 24,053,000 Safeway, Inc., 5.799% - 5.820%, 2/3/2000 - 2/9/2000 24,036,557 TOTAL COMMERCIAL PAPER 792,699,371 NOTES - VARIABLE-28.9% 2 BANKING-11.8% 9,410,000 500 South Front St. LP, Series A, (Huntington National Bank, Columbus, OH LOC), 5.980%, 2/3/2000 9,410,000 5,075,000 500 South Front St. LP, Series B, (Huntington National Bank, Columbus, OH LOC), 5.980%, 2/3/2000 5,075,000 1,112,500 Alabama State IDA, (Nichols Research Corp.), (SouthTrust Bank of Alabama, Birmingham LOC), 6.090%, 2/4/2000 1,112,500 16,900,000 Beverly California Corp., (PNC Bank, N.A. LOC), 5.810%, 2/7/2000 16,900,000 16,385,000 Beverly Hills Nursing Center, Inc., Medilodge Project Series 1996, (KeyBank, N.A. LOC), 6.030%, 2/3/2000 16,385,000 1,725,000 Bissett, William K. and Sheryl B., Multi-Option Adjustable Rate Notes, (Huntington National Bank, Columbus, OH LOC), 5.980%, 2/3/2000 1,725,000 6,000,000 Bond Holdings LP, (SouthTrust Bank of Alabama, Birmingham LOC), 5.930%, 2/4/2000 6,000,000 6,715,000 Briarwood LP, Briarwood Ltd. Partnership Project Series 1999, (Bank One, Ohio, N.A. LOC), 6.040%, 2/3/2000 6,715,000 9,826,000 Capital One Funding Corp., Series 1999-B, (Bank One, Ohio, N.A. LOC), 5.940%, 2/3/2000 9,826,000 480,000 Carmel, IN, Telamon Corp., Series 1996-C, (Huntington National Bank, Columbus, OH LOC), 6.080%, 2/3/2000 480,000 930,000 Carmel, IN, Telamon Corp., Series A, (Huntington National Bank, Columbus, OH LOC), 6.080%, 2/3/2000 930,000 1,005,000 Carmel, IN, Telamon Corp., Series B, (Huntington National Bank, Columbus, OH LOC), 6.080%, 2/3/2000 1,005,000 900,000 Colorado Health Facilities Authority, Series B, (Bank One, Colorado LOC), 6.030%, 2/3/2000 900,000 36,900,000 Comerica Bank, 5.791% - 5.864%, 9/25/2000 - 11/9/2000 36,883,292 PRINCIPAL AMOUNT VALUE NOTES - VARIABLE-continued 2 BANKING-CONTINUED $ 1,900,000 Continental Downtown Properties, (Huntington National Bank, Columbus, OH LOC), 5.980%, 2/3/2000 $ 1,900,000 5,795,000 Dellridge Care Center LP, Series 1997, (Allfirst LOC), 5.860%, 2/2/2000 5,795,000 3,445,000 Denver Urban Renewal Authority, Series 1992-B, (Paribas, Paris LOC), 5.880%, 2/3/2000 3,445,000 9,445,000 ERC Real Estate LLC, (KeyBank, N.A. LOC), 6.100%, 2/3/2000 9,445,000 4,000,000 Frank Parsons Paper Co., Inc., Series 1999, (Allfirst LOC), 5.871%, 2/4/2000 4,000,000 5,000,000 Greene County Development Authority, Reynolds Lodges LLC, Series 1999-A, (Firstar Bank, N.A., Cincinnati LOC), 5.900%, 2/2/2000 5,000,000 5,000,000 Industrial Dimensions, Inc., Series 1999, (Fifth Third Bank of Northwestern OH LOC), 5.830%, 2/3/2000 5,000,000 8,123,000 International Processing Corp., (Bank One, Kentucky LOC), 5.990%, 2/3/2000 8,123,000 2,000,000 Jeffersonville, IN, Series 1997-B, Wayne Steel, Inc., (Bank One, Ohio, N.A. LOC), 5.940%, 2/3/2000 2,000,000 5,500,000 Kenwood Country Club, Inc., Series 1999, (Firstar Bank, N.A., Cincinnati LOC), 5.900%, 2/3/2000 5,500,000 4,000,000 Lake Sherwood Senior Living Center LLC, (Union Planters NB, Memphis, TN LOC), 6.290%, 2/3/2000 4,000,000 1,425,000 Lincoln Park Associates Ltd., (Bank One, N.A. LOC), 5.980%, 2/3/2000 1,425,000 2,000,000 Liquid Asset Backed Securities Trust, Series 1996-3, (Westdeutsche Landesbank Girozentrale Swap Agreement), 5.801%, 2/15/2000 2,000,000 9,657,209 Liquid Asset Backed Securities Trust, Series 1997-1, (Westdeutsche Landesbank Girozentrale Swap Agreement), 5.793%, 2/15/2000 9,657,209 9,052,209 3 Liquid Asset Backed Securities Trust, Series 1997-3 Sr. Notes, (AMBAC INS), 6.151%, 3/28/2000 9,052,209 6,686,026 3 Liquid Asset Backed Securities Trust, Series 1998-1 Sr. Notes, (AMBAC INS), 5.819%, 2/25/2000 6,686,026 5,000,000 Maryland Industrial Development Financing Authority, Gen-Vec, Inc. Facility, Series 1999, (Allfirst LOC), 5.870%, 2/4/2000 5,000,000 4,100,000 Melberger, Clifford K. and Ruth B., (PNC Bank, N.A. LOC), 5.810%, 2/7/2000 4,100,000 9,500,000 Park Avenue Receivables Corp., 5.475%, 2/3/2000 9,500,000 6,860,000 Pine Ridge Associates Ltd., (Mellon Bank N.A., Pittsburgh LOC), 6.050%, 2/2/2000 6,860,000 7,055,000 Rubloff-Rockford LLC, Series 1997, (National City Bank, Michigan/Illinois LOC), 5.860%, 2/2/2000 7,055,000 15,640,000 Scranton Times LP, Series 1997, (PNC Bank, N.A. LOC), 5.810% 2/7/2000 15,640,000 2,690,000 Solon, OH, IDRB Schneps Family LP, (Bank One, Ohio, N.A. LOC), 5.940%, 2/3/2000 2,690,000 PRINCIPAL AMOUNT VALUE NOTES - VARIABLE-continued 2 BANKING-CONTINUED $ 7,520,000 Southern Coil Processing, Inc. Notes, (AmSouth Bank N.A., Birmingham LOC), 5.850%, 2/3/2000 $ 7,520,000 1,640,000 Team Rahal of Mechanicsburg, Inc., Series 1997, (Huntington National Bank, Columbus, OH LOC), 5.980%, 2/3/2000 1,640,000 1,795,000 Team Rahal, Inc., Series 1997, (Huntington National Bank, Columbus, OH LOC), 5.980%, 2/3/2000 1,795,000 5,000,000 Three Rivers Funding Corp., 5.880%, 2/17/2000 5,000,000 7,300,000 Tift County, GA Development Authority, Chickasha of Georgia Project Series 1997, (Bank of Tokyo-Mitsubishi Ltd. LOC), 6.000%, 2/2/2000 7,300,000 1,700,000 Village Green Finance Co., LLC, Series 1997, (Wachovia Bank of NC, N.A. Winston-Salem LOC), 5.820%, 2/2/2000 1,700,000 1,240,000 Vista Funding Corp., Series 1995-A, (Firstar Bank, N.A., Cincinnati LOC), 6.100%, 2/3/2000 1,240,000 TOTAL 273,415,236 BROKERAGE-3.6% 84,000,000 Morgan Stanley, Dean Witter & Co., 5.830 - 5.880%, 2/4/2000 84,000,000 FINANCE - AUTOMOTIVE-1.8% 42,000,000 General Motors Acceptance Corp., 5.830%, 3/7/2000 42,000,000 FINANCE - COMMERCIAL-3.7% 25,000,000 Asset Securitization Cooperative Corp., 5.831% - 5.903%, 2/14/2000 - 3/7/2000 24,999,772 60,200,000 Sigma Finance, Inc., (Guaranteed by Sigma Finance Corp.), 6.000% - 6.158%, 2/29/2000 - 3/22/2000 60,200,000 TOTAL 85,199,772 FINANCE - EQUIPMENT-0.7% 10,000,000 Comdisco, Inc., 6.656%, 2/29/2000 10,000,000 5,000,000 Deere (John) Capital Corp., 6.074%, 2/1/2000 5,000,807 TOTAL 15,000,807 FINANCE - RETAIL-0.3% 8,000,000 AFS Insurance Premium Receivables Trust, Series 1994-A, 7.019%, 2/15/2000 8,000,000 HOMEBUILDING-0.4% 8,900,000 Centex Corp., 6.540%, 4/27/2000 8,900,000 INSURANCE-6.6% 12,000,000 Allstate Life Insurance Co., 6.616%, 2/1/2000 12,000,000 22,500,000 First Allmerica Financial Life Insurance Co., 6.306%, 2/1/2000 22,500,000 5,000,000 GE Life and Annuity Assurance Co., 6.200%, 2/1/2000 5,000,000 PRINCIPAL AMOUNT VALUE NOTES - VARIABLE-continued 2 INSURANCE-CONTINUED $ 30,000,000 Jackson National Life Insurance Co., 5.900% - 6.160%, 2/1/2000 - 2/22/2000 $ 30,000,000 25,000,000 Monumental Life Insurance Co., 158, 6.180%, 2/6/2000 25,000,000 15,000,000 Principal Life Insurance Co., 6.260%, 3/1/2000 15,000,000 13,000,000 Protective Life Insurance Co., 6.200%, 2/1/2000 13,000,000 15,000,000 Security Life of Denver Insurance Co., 6.100%, 4/28/2000 15,000,000 10,000,000 Transamerica Life Insurance and Annuity Co., 6.094%, 2/1/2000 - 4/1/2000 10,000,000 5,000,000 Transamerica Occidental Life Insurance Co., 6.329%, 2/29/2000 5,000,000 TOTAL 152,500,000 TOTAL NOTES - VARIABLE 669,015,815 LOAN PARTICIPATION-4.0% CHEMICALS-2.2% 7,500,000 DuPont Teijin Films U.K. Ltd., (Guaranteed by Du Pont (E.I.) de Nemours & Co.), 6.000%, 2/22/2000 7,500,000 43,000,000 Teijin DuPont Films, (Guaranteed by Du Pont (E.I.) de Nemours & Co.), 6.000% - 6.100%, 2/29/2000 - 3/29/2000 43,000,000 TOTAL 50,500,000 ELECTRICAL EQUIPMENT-0.5% 12,100,000 Mt. Vernon Phenol Plant Partnership, (Guaranteed by General Electric Co.), 6.120%, 5/17/2000 12,100,000 FINANCE - AUTOMOTIVE-0.2% 6,000,000 General Motors Acceptance Corp., Mortgage of PA, (Guaranteed by General Motors Acceptance Corp.), 6.210%, 2/1/2000 6,000,000 FINANCE - EQUIPMENT-1.1% 25,000,000 Pitney Bowes Credit Corp., 5.809%, 2/10/2000 24,963,875 TOTAL LOAN PARTICIPATION 93,563,875 TIME DEPOSIT-2.2% BANKING-2.2% 50,000,000 Societe Generale, Paris, 5.813%, 2/1/2000 50,000,000 PRINCIPAL AMOUNT VALUE REPURCHASE AGREEMENTS-7.5% 4 $ 49,500,000 Bank of America, 5.800%, dated 1/31/2000, due 2/1/2000 $ 49,500,000 75,000,000 Deutsche Bank Financial, Inc., 5.800%, dated 1/31/2000, due 2/1/2000 75,000,000 23,300,000 Donaldson, Lufkin and Jenrette Securities Corp., 5.700%, dated 1/31/2000, due 2/1/2000 23,300,000 25,000,000 Toronto Dominion Securities (USA), Inc., 5.690%, dated 1/31/2000, due 2/1/2000 25,000,000 TOTAL REPURCHASE AGREEMENTS 172,800,000 TOTAL INVESTMENTS (AT AMORTIZED COST) 5 $ 2,321,878,695
1 Each issue shows the rate of discount at the time of purchase for discount issues, or the coupon for interest bearing issues. 2 Current rate and next reset date shown. 3 Denotes a restricted security which is subject to restrictions on resale under federal securities laws. These securities have been deemed liquid based upon criteria approved by the fund's Board of Trustees. At January 31, 2000, these securities amounted to $15,738,235 which represents 0.7% of net assets. 4 The repurchase agreements are fully collateralized by U.S. government and/or agency obligations based on market prices at the date of the portfolio. The investments in the repurchase agreements are through participation in joint accounts with other Federated funds. 5 Also represents cost for federal tax purposes. Note: The categories of investments are shown as a percentage of net assets ($2,316,019,703) at January 31, 2000. The following acronyms are used throughout this portfolio: AMBAC -American Municipal Bond Assurance Corporation IDA -Industrial Development Authority IDRB -Industrial Development Revenue Bond INS -Insured LOC -Letter of Credit See Notes which are an integral part of the Financial Statements Portfolio of Investments Tax-Free Obligations Fund January 31, 2000 (unaudited)
PRINCIPAL AMOUNT VALUE SHORT-TERM MUNICIPALS- 99.6% 1 ALABAMA-5.0% $ 3,705,000 Alabama HFA, Series 1995 E, Weekly VRDNs (Royal Gardens Apartments)/(SouthTrust Bank of Alabama, Birmingham, AL LOC) $ 3,705,000 5,000,000 Alabama State Public School & College Authority, Series D, 5.00% Bonds, 8/1/2000 5,027,759 5,000,000 Alabama State Public School & College Authority, PUTTERs, Series 124, Weekly VRDNs (FGIC INS)/(J.P. Morgan & Co., Inc. LIQ) 5,000,000 2,000,000 Anniston, AL, IDB, Series 1989 A, Weekly VRDNs (Union Foundry Co.)/(Amsouth Bank N.A., Birmingham, AL LOC) 2,000,000 1,125,000 Birmingham, AL IDA, Revenue Refunding Bonds Weekly VRDNs (S.P. Hotel Co.)/(Amsouth Bank N.A., Birmingham, AL LOC) 1,125,000 3,500,000 Birmingham, AL Medical Clinic Board, Medical Clinic Revenue Bonds, Series 1996, Weekly VRDNs (St. Martin's In The Pines)/(Regions Bank, Alabama LOC) 3,500,000 7,800,000 Chatom, AL, IDB PCR, 3.90% CP (Alabama Electric Co- op, Inc.)/(National Rural Utilities Cooperative Finance Corp. GTD), Mandatory Tender 2/10/2000 7,800,000 24,600,000 Columbia, AL IDB, Series 1999 C, Daily VRDNs (Alabama Power Co.) 24,600,000 3,300,000 Homewood, AL IDA Weekly VRDNs (Mountain Brook Inn, Homewood, AL)/(SouthTrust Bank of Alabama, Birmingham, AL LOC) 3,300,000 30,000,000 Hoover, AL Board of Education, Series 1999 C, 3.80% BANs, 8/1/2000 30,000,000 35,000,000 Jefferson County, AL, Series 1999, Weekly VRDNs (Bayerische Landesbank Girozentrale LOC) 35,000,000 16,500,000 Jefferson County, AL, GO Warrants, Series 1996, Weekly VRDNs (Bayerische Landesbank Girozentrale LOC) 16,500,000 6,250,000 Marshall County, AL, Special Obligation School Refunding Warrant, Series 1994, Weekly VRDNs (Marshall County, AL Board of Education)/(Regions Bank, Alabama LOC) 6,250,000 2,500,000 Mobile, AL IDA Weekly VRDNs (McRae's Industries, Inc.)/(Bank of America, N.A. LOC) 2,500,000 8,500,000 Mobile, AL IDB, PCR, Series 1993 B, Weekly VRDNs (Alabama Power Co.) 8,500,000 13,000,000 Mobile, AL Port City Medical Clinic Board, Series 1998 A, 3.75% CP (Infirmary Health System, Inc.)/(AMBAC INS)/(Rabobank Nederland, Utrecht LIQ), Mandatory Tender 2/18/2000 13,000,000 200,000 Montgomery, AL IDB, Series 1988 A, Weekly VRDNs (Smith Industries)/(SunTrust Bank, Atlanta, GA LOC) 200,000 1,190,000 Tuscaloosa County, AL Port Authority, Series 1989 A, Weekly VRDNs (Capstone Hotel Ltd.)/(SouthTrust Bank of Alabama, Birmingham, AL LOC) 1,190,000 PRINCIPAL AMOUNT VALUE SHORT-TERM MUNICIPALS- continued 1 ALABAMA-CONTINUED $ 280,000 Tuscaloosa, AL IDB, Revenue Refunding Bonds, Series 1994, Weekly VRDNs (Harco, Inc.)/(Amsouth Bank N.A., Birmingham, AL LOC) $ 280,000 4,295,000 Vincent, AL IDB Weekly VRDNs (Headquarters Partnership Project)/(National Australia Bank, Ltd., Melbourne LOC) 4,295,000 TOTAL 173,772,759 ALASKA-0.7% 11,000,000 Alaska State Housing Finance Corp., MERLOTS, Series 1999 D, Weekly VRDNs (First Union National Bank, Charlotte, NC LIQ) 11,000,000 7,205,000 2 Alaska State Housing Finance Corp., (PT-202), 3.25% TOBs (Bayerische Hypotheken-und Vereinsbank AG LIQ), Optional Tender 3/11/2000 7,205,000 6,385,000 Alaska State Housing Finance Corp., Variable Rate Certificates, Series 1997 A, Weekly VRDNs (Bank of America, N.A. LIQ) 6,385,000 TOTAL 24,590,000 ARIZONA-0.9% 8,250,000 Apache County, AZ IDA, Series 1983 A, Weekly VRDNs (Tucson Electric Power Co.)/(Toronto Dominion Bank LOC) 8,250,000 1,800,000 Arizona Health Facilities Authority Weekly VRDNs (University Physicians, Inc.)/(Bank One, AZ N.A. LOC) 1,800,000 1,700,000 Arizona Health Facilities Authority, Pooled Loan Program Revenue Bonds, Series 1985 B, Weekly VRDNs (FGIC INS)/(Chase Manhattan Bank N.A., NY LIQ) 1,700,000 4,900,000 Chandler, AZ IDA Weekly VRDNs (SMP II Limited Partnership)/(Bank One, AZ N.A. LOC) 4,900,000 3,375,000 Gila County, AZ IDA Weekly VRDNs (Cobre Valley Hospital)/(Bank One, AZ N.A. LOC) 3,375,000 2,000,000 Glendale, AZ IDA, Variable Rate Senior Living Facilities Revenue Bonds Weekly VRDNs (Friendship Retirement Corp.)/(Norwest Bank MN, N.A. LOC) 2,000,000 1,000,000 Maricopa County, AZ Pollution Control Corp., Series 1984, Weekly VRDNs (El Paso Electric Co.)/(Barclays Bank PLC, London LOC) 1,000,000 5,300,000 Pima County, AZ IDA Weekly VRDNs (Tucson Electric Power Co.)/(Toronto Dominion Bank LOC) 5,300,000 2,600,000 Pinal County, AZ IDA, PCR Bonds Daily VRDNs (Magma Copper Co.)/(ABN AMRO Bank N.V., Amsterdam LOC) 2,600,000 TOTAL 30,925,000 ARKANSAS-0.1% 2,000,000 Sheridan, AR IDA, Series A, Weekly VRDNs (H.H. Robertson Co.)/(PNC Bank, N.A. LOC) 2,000,000 CALIFORNIA-0.2% 7,000,000 Stanislaus County, CA Office of Education, 4.00% TRANs, 8/1/2000 7,017,405 PRINCIPAL AMOUNT VALUE SHORT-TERM MUNICIPALS- continued 1 COLORADO-1.0% $ 3,785,000 Colorado Health Facilities Authority, Series 1998 C- 1, Weekly VRDNs (Developmental Disabilities Center)/(Bank One, CO LOC) $ 3,785,000 2,275,000 Denver (City & County), CO, 4.40% TOBs (Blake Street Compendium)/(Norwest Bank Minnesota, N.A. LOC), Optional Tender 12/15/2000 2,275,000 14,660,000 Denver (City & County), CO, MERLOTS, Series 1997 E, Weekly VRDNs (Department of Aviation Airport System)/(MBIA INS)/(First Union National Bank, Charlotte, NC LIQ) 14,660,000 5,100,000 Denver (City & County), CO, Trust Reciepts, Series 1998 FR/RI-13, Weekly VRDNs (MBIA INS)/(Bank of New York, NY LIQ) 5,100,000 9,725,000 2 Eagle County School District No. RE50J, CO, (PT-1155), 3.30% TOBs (FGIC INS)/(Merrill Lynch Capital Services, Inc. LIQ), Optional Tender 5/18/2000 9,725,000 TOTAL 35,545,000 CONNECTICUT-0.3% 4,000,000 2 Connecticut State HFA, Variable Rate Certificates, Series 1998 S, 3.70% TOBs (Bank of America, N.A. LIQ), Optional Tender 8/17/2000 4,000,000 5,000,000 Connecticut State, PUTTERs, Series 110, Weekly VRDNs (FGIC INS)/(J.P. Morgan & Co., Inc. LIQ) 5,000,000 TOTAL 9,000,000 DISTRICT OF COLUMBIA-1.9% 2,070,000 District of Columbia Housing Finance Agency, Multifamily Housing, 3.50% TOBs (Chastleton Project)/(Bank of America, N.A. LOC), Optional Tender 7/1/2000 2,070,000 10,090,000 District of Columbia, Series 1999, Weekly VRDNs (Association of American Medical Colleges)/(AMBAC INS)/(Bank of America, N.A. LIQ) 10,090,000 6,300,000 District of Columbia, Series 1999, Weekly VRDNs (Young Men's Christian Association of Metropolitan Washington)/(Allfirst LOC) 6,300,000 24,365,000 District of Columbia, Series 1999 C, Weekly VRDNs (George Washington University)/(MBIA INS)/(Bank of America, N.A. LIQ) 24,365,000 21,665,000 District of Columbia, Series 1999 C, Weekly VRDNs (National Academy of Sciences)/(AMBAC INS)/(Bank of America, N.A. LOC) 21,665,000 3,575,000 District of Columbia, Revenue Bonds, Series 1997 B, Weekly VRDNs (Association of American Medical Colleges)/(AMBAC INS)/(Chase Manhattan Bank N.A., NY LIQ) 3,575,000 TOTAL 68,065,000 FLORIDA-7.3% 7,100,000 ABN AMRO MuniTOPS Certificates Trust (Florida Non-AMT), Series 1998-8, Weekly VRDNs (Dade County, FL Water & Sewer System)/(FGIC INS)/(ABN AMRO Bank N.V., Amsterdam LIQ) 7,100,000 7,000,000 ABN AMRO MuniTOPS Certificates Trust (Florida Non-AMT), Series 1998-9, Weekly VRDNs (Florida State Board of Education Capital Outlay)/(FSA INS)/(ABN AMRO Bank N.V., Amsterdam LIQ) 7,000,000 PRINCIPAL AMOUNT VALUE SHORT-TERM MUNICIPALS- continued 1 FLORIDA-CONTINUED $ 6,920,000 2 ABN AMRO MuniTOPS Certificates Trust (Florida Non-AMT), Series 1999-11, 3.85% TOBs (Tampa Bay Water Utility System, FL)/(FGIC INS)/(ABN AMRO Bank N.V., Amsterdam LIQ), Optional Tender 3/8/2000 $ 6,920,000 2,830,000 Brevard County, FL Weekly VRDNs (Greywater Investments)/(Huntington National Bank, Columbus, OH LOC) 2,830,000 6,500,000 Broward County, FL HFA, Series 1997, Weekly VRDNs (Jacaranda Village Apartments)/(HSBC Bank USA LOC) 6,500,000 2,710,000 Broward County, FL Health Facility Authority, Revenue Bonds Weekly VRDNs (John Knox Village of Florida)/(First Union National Bank, Charlotte, NC LOC) 2,710,000 8,000,000 Florida HFA, Multifamily Housing Revenue Bonds, Series 1985 SS, Weekly VRDNs (Woodlands Apartments)/(Northern Trust Co., Chicago, IL LOC) 8,000,000 2,580,000 Fort Lauderdale, FL Performing Arts Center Authority Weekly VRDNs (SunTrust Bank, Central Florida LOC) 2,580,000 500,000 Fort Myers, FL Utilities Revenue, Series 1998-168, Weekly VRDNs (FGIC INS)/(Morgan Stanley, Dean Witter Municipal Funding, Inc. LIQ) 500,000 15,740,000 Gulf Breeze, FL, Series 1985 E, Weekly VRDNs (FGIC INS)/(Credit Local de France LIQ) 15,740,000 43,000,000 Highlands County, FL Health Facilities, Series 1996 A, Weekly VRDNs (Adventist Health System)/(MBIA INS)/(Bank One, N.A. LIQ) 43,000,000 24,000,000 Highlands County, FL Health Facilities, Variable Rate Demand Revenue Bonds, Series 1996 A, Weekly VRDNs (Adventist Health System)/(SunTrust Bank, Central Florida LOC) 24,000,000 10,600,000 Highlands County, FL Health Facilities, Variable Rate Demand Revenue Bonds, Series 1997 A, Weekly VRDNs (Adventist Health System)/(SunTrust Bank, Central Florida LOC) 10,600,000 7,570,000 Jacksonville Transportation Authority, (PA-146) Weekly VRDNs (Florida State)/(Merrill Lynch Capital Services, Inc. LIQ) 7,570,000 1,700,000 Jacksonville, FL HFDC, Health Facilities Revenue Bonds, Series 1996, Weekly VRDNs (Jacksonville Faculty Practice Association)/(Bank of America, N.A. LOC) 1,700,000 2,200,000 Orange County, FL HFA, Variable Rate Certificates, Series 1997 G, Weekly VRDNs (GNMA COL)/(Bank of America, N.A. LIQ) 2,200,000 19,910,000 Orange County, FL School District, Lehman, Series 1999 A49, Weekly VRDNs (Bayerische Hypotheken-und Vereinsbank AG LIQ) 19,910,000 7,400,000 Orlando Utilities Commission, FL, BANs, Series 1999 A, 3.60% CP (Morgan Guaranty Trust Co., New York LIQ), Mandatory Tender 3/7/2000 7,400,000 13,750,000 Palm Beach County, FL Airport System, FR/RI, Series 1999 A 30, Weekly VRDNs (MBIA INS)/(Bank of New York, New York LIQ) 13,750,000 41,910,000 Palm Beach County, FL School District, Series 1999/FR/RI-40, Weekly VRDNs (Bank of New York, NY LIQ) 41,910,000 PRINCIPAL AMOUNT VALUE SHORT-TERM MUNICIPALS- continued 1 FLORIDA-CONTINUED $ 2,650,000 Pasco County, FL Educational Facilities Authority, Series 1999, Weekly VRDNs (Saint Leo University, FL)/(Allied Irish Banks PLC LOC) $ 2,650,000 3,510,000 Pinellas County Industry Council, FL Weekly VRDNs (Loulourgas Properties)/(First Union National Bank, Charlotte, NC LOC) 3,510,000 5,005,000 Pinellas County, FL Health Facility Authority, Series 1987, Weekly VRDNs (St. Mark Village Project)/(Bank of America, N.A. LOC) 5,005,000 5,525,000 Polk County, FL IDA, PCR Refunding Bonds Weekly VRDNs (IMC Fertilizer, Inc.)/(Rabobank Nederland, Utrecht LOC) 5,525,000 7,950,000 Putnam County, FL Development Authority, PCR Bonds, Series 1984 H, Weekly VRDNs (Seminole Electric Cooperative, Inc (FL))/(National Rural Utilities Cooperative Finance Corp. LOC) 7,950,000 160,000 Sarasota, FL, Educational Facilities Revenue Bonds, Series 1996, Weekly VRDNs (Ringling School of Art and Design, Inc.)/(SunTrust Bank, Central Florida LOC) 160,000 TOTAL 256,720,000 GEORGIA-4.4% 9,995,000 2 Bibb County, GA, (PT-199), 3.30% TOBs (Georgia State GTD)/(Bayerische Hypotheken-und Vereinsbank AG LIQ), Optional Tender 5/11/2000 9,995,000 17,300,000 Burke County, GA Development Authority, Series 1999 A, Daily VRDNs (Oglethorpe Power Corp. Vogtle Project)/(AMBAC INS)/(Morgan Guaranty Trust Co., NY LIQ) 17,300,000 6,200,000 Burke County, GA Development Authority, Series A, Weekly VRDNs (Oglethorpe Power Corp.)/(FGIC INS)/(Credit Local de France LIQ) 6,200,000 10,150,000 Burke County, GA Development Authority, PCR Bonds, Series 1993 A, Weekly VRDNs (Oglethorpe Power Corp.)/(FGIC INS)/(Canadian Imperial Bank of Commerce LIQ) 10,150,000 2,000,000 Clayton County, GA Housing Authority, Revenue Refunding Bonds, Series 1992, Weekly VRDNs (Oxford Townhomes)/(Amsouth Bank N.A., Birmingham, AL LOC) 2,000,000 8,000,000 Cobb County, GA IDA, Series 1997, Weekly VRDNs (Wyndham Gardens)/ (Bankers Trust Co., NY LOC) 8,000,000 4,200,000 Cobb-Marietta, GA Coliseum & Exhibit Hall Authority, Junior Lien Revenue Bonds, Series 1996 A, Weekly VRDNs (MBIA INS)/(SunTrust Bank, Atlanta, GA LIQ) 4,200,000 1,400,000 De Kalb County, GA Development Authority, Series 1992, Weekly VRDNs (American Cancer Society, GA)/(SunTrust Bank, Atlanta, GA LOC) 1,400,000 8,550,000 Floyd County, GA, PCR Bonds, Series 1996, Daily VRDNs (Georgia Power Co.) 8,550,000 15,900,000 Fulco, GA Hospital Authority, Series 1999, Weekly VRDNs (Piedmont Hospital)/(SunTrust Bank, Atlanta, GA LOC) 15,900,000 3,400,000 Fulton County, GA Development Authority, Series 1998, Weekly VRDNs (Morehouse School of Medicine)/(SunTrust Bank, Atlanta, GA LOC) 3,400,000 PRINCIPAL AMOUNT VALUE SHORT-TERM MUNICIPALS- continued 1 GEORGIA-CONTINUED $ 6,000,000 Fulton County, GA Development Authority, Series 1999, Weekly VRDNs (Boy's and Girl's Clubs)/(SunTrust Bank, Atlanta, GA LOC) $ 6,000,000 10,000,000 Gainesville and Hall County, GA Development Authority, Series 1999 A, Weekly VRDNs (Lanier Village Estates, Inc.)/(Regions Bank, Alabama LOC) 10,000,000 2,000,000 Georgia Municipal Electric Authority, (PT-294) Weekly VRDNs (MBIA INS)/(Landesbank Hessen-Thueringen, Frankfurt LIQ) 2,000,000 4,925,000 2 Gwinnett County, GA Water and Sewer Authority, (PT- 1169), 3.62% TOBs (Gwinnett County, GA)/(Merrill Lynch Capital Services, Inc. LIQ), Optional Tender 7/20/2000 4,925,000 1,280,000 Macon-Bibb County, GA Urban Development Authority, Refunding Revenue Bonds, Series 1995, Weekly VRDNs (Macon Hotel Investors)/(Bank One, MI LOC) 1,280,000 3,000,000 Marietta, GA Housing Authority, Multifamily Housing Revenue Refunding Bonds, Series 1996, Weekly VRDNs (Winterset Apartments)/(Wachovia Bank of NC, N.A. LOC) 3,000,000 9,260,000 Metropolitan Atlanta Rapid Transit Authority, Floater Certificates, Series 1998 59, Weekly VRDNs (MBIA INS)/(Morgan Stanley, Dean Witter Municipal Funding, Inc. LIQ) 9,260,000 11,615,000 Monroe County, GA Development Authority IDRB, Series 1999 B, Daily VRDNs (Oglethorpe Power Corp. Scherer Project)/(AMBAC INS)/(Morgan Guaranty Trust Co., NY LIQ) 11,615,000 5,800,000 Monroe County, GA Development Authority IDRB, PCR Bonds, Series 1997, Daily VRDNs (Georgia Power Co.) 5,800,000 7,500,000 Rabun County, GA Development Authority, Series 1999, Weekly VRDNs (Rabun Gap-Nacoochee, Inc.)/(SunTrust Bank, Atlanta, GA LOC) 7,500,000 7,340,000 Rockdale County, GA Hospital Authority, Revenue Anticipation Certificates, Series 1994, Weekly VRDNs (Rockdale Hospital)/(SunTrust Bank, Atlanta, GA LOC) 7,340,000 TOTAL 155,815,000 IDAHO-0.4% 15,000,000 Idaho Health Facilities Authority, Series 1995, 3.65% CP (Holy Cross Health System Corp.), Mandatory Tender 3/8/2000 15,000,000 ILLINOIS-7.5% 10,000,000 ABN AMRO MuniTOPS Certificates Trust (Multistate Non-AMT), Series 1998-14, Weekly VRDNs (Cook County, IL)/(FGIC INS)/(ABN AMRO Bank N.V., Amsterdam LIQ) 10,000,000 11,990,000 2 Chicago, IL Board of Education, (PT-268), 3.80% TOBs (FGIC INS)/(Bayerische Hypotheken-und Vereinsbank AG LIQ), Optional Tender 7/13/2000 11,990,000 12,500,000 Chicago, IL Board of Education, MERLOTS, Series 1997 E, Weekly VRDNs (AMBAC INS)/(First Union National Bank, Charlotte, NC LIQ) 12,500,000 40,435,000 Chicago, IL Board of Education, Morgan Stanley, Series 1998 115, Weekly VRDNs (FGIC INS)/(Morgan Stanley, Dean Witter Municipal Funding, Inc. LIQ) 40,435,000 PRINCIPAL AMOUNT VALUE SHORT-TERM MUNICIPALS- continued 1 ILLINOIS-CONTINUED $ 10,000,000 Chicago, IL Board of Education, Variable Rate Certificates, Series 1996 BB, Weekly VRDNs (MBIA INS)/(Bank of America, N.A. LIQ) $ 10,000,000 8,400,000 Chicago, IL Public Building Commission, Series 1997, Lehman TR/FR- 15 Weekly VRDNs (Chicago, IL Board of Education)/(MBIA INS)/(Bank of New York, NY LIQ) 8,400,000 2,760,000 Chicago, IL Weekly VRDNs (Canadian Imperial Bank of Commerce LOC) 2,760,000 3,245,000 Chicago, IL, Floater Certificates, Series 1998- 92, Weekly VRDNs (FGIC INS)/(Morgan Stanley, Dean Witter Municipal Funding, Inc. LIQ) 3,245,000 20,000,000 Chicago, IL, MERLOTS, Series 1997 V, Weekly VRDNs (Chicago, IL Water Revenue)/(FGIC INS)/(First Union National Bank, Charlotte, NC LIQ) 20,000,000 20,000,000 2 Chicago, IL, Variable Rate Certificates, Series 1998 M, 3.70% TOBs (FGIC INS)/(Bank of America, N.A. LIQ), Optional Tender 7/13/2000 20,000,000 9,940,000 2 Cook County, IL, (PT- 1111), 3.175% TOBs (FGIC INS)/(Merrill Lynch Capital Services, Inc. LIQ), Optional Tender 5/11/2000 9,940,000 3,800,000 Galesburg, IL, Series 1996, Weekly VRDNs (Knox College)/(Lasalle National Bank, Chicago, IL LOC) 3,800,000 155,000 Hopedale Village, IL, Series 1998, Weekly VRDNs (Hopedale Medical Foundation)/(Bank One, Illinois, N.A. LOC) 155,000 3,000,000 Illinois Development Finance Authority Weekly VRDNs (Newlywed Food)/(Mellon Bank N.A., Pittsburgh, PA LOC) 3,000,000 2,500,000 Illinois Development Finance Authority, Series 1997, Weekly VRDNs (Ada S. McKInley Community Services, Inc.)/(Harris Trust & Savings Bank, Chicago, IL LOC) 2,500,000 4,000,000 Illinois Development Finance Authority, Cultural Facilities Revenue Bonds Weekly VRDNs (Burpee Museum of Natural History)/(American National Bank & Trust Co., Chicago, IL LOC) 4,000,000 1,000,000 Illinois Educational Facilities Authority, Revenue Bonds, Series 1995, Weekly VRDNs (Ravinia Festival Association (IL))/(Bank One, MI LOC) 1,000,000 35,800,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1985 B, Weekly VRDNs (OSF Health Care Systems)/(Bank of America, N.A. LOC) 35,800,000 36,500,000 Illinois Health Facilities Authority, Revenue Refunding Bonds, Series 1997 B, Weekly VRDNs (Advocate Health Care Network)/(Bank One, N.A., Bank of America, N.A. and Northern Trust Co., Chicago, IL LIQs) 36,500,000 1,000,000 Illinois Health Facilities Authority, Revolving Fund Pooled Financing Program, Series 1985 F, Weekly VRDNs (Bank One, MI LOC) 1,000,000 4,350,000 Illinois Housing Development Authority, Housing Bonds, Series 1999, Subseries B-1, 4.20% TOBs, Mandatory Tender 12/22/2000 4,350,000 8,740,000 2 Lake County, IL Forest Preserve District, (PT- 1171), 3.70% TOBs (Merrill Lynch Capital Services, Inc. LIQ), Optional Tender 7/22/2000 8,740,000 PRINCIPAL AMOUNT VALUE SHORT-TERM MUNICIPALS- continued 1 ILLINOIS-CONTINUED $ 1,725,000 Metropolitan Pier & Exposition Authority, IL, (PT-1079) Weekly VRDNs (McCormick Place)/(FGIC INS)/(Bank of America, N.A. LIQ) $ 1,725,000 11,915,000 Village of Lombard, DuPage Cty, IL MHRV, Series 1985, 4.05% TOBs (Clover Creek Apartments)/(Bank One, Arizona N.A. LOC), Mandatory Tender 12/15/2000 11,915,000 TOTAL 263,755,000 INDIANA-1.7% 500,000 Dale, IN IDA Weekly VRDNs (Spencer Industries)/(National City Bank, KY LOC) 500,000 8,800,000 Franklin, IN, EDR Bonds, Series 1999, Weekly VRDNs (Franklin United Methodist Home, Inc.)/(Firstar Bank, Milwaukee, WI LOC) 8,800,000 1,355,000 Indiana Health Facilities Finance Authority Rehabilitation Center Weekly VRDNs (Crossroads Rehabilitation Center)/(Bank One, IN, N.A. LOC) 1,355,000 16,500,000 Indianapolis, IN Local Public Improvement Bond Bank, Series 1999 E, 4.50% TANs (Indianapolis, IN), 7/10/2000 16,542,342 4,485,000 Indianapolis, IN, Variable Rate Demand EDR Bonds, Series 1995, Weekly VRDNs (Pleasant Run Children's Homes, Inc.)/(Fifth Third Bank, Cincinnati LOC) 4,485,000 1,935,000 Linton, IN, EDR Bonds, Series 1999, Weekly VRDNs (Franklin-Glenburn Home, Inc.)/(Firstar Bank, Milwaukee, WI LOC) 1,935,000 16,700,000 Mt. Vernon, IN Pollution Control & Solid Waste Authority, Disposal Revenue Bonds, 3.40% CP (General Electric Co.), Mandatory Tender 2/4/2000 16,700,000 2,015,000 St. Joseph County, IN, Multi-Mode Variable Rate EDR Bonds, Series 1998, Weekly VRDNs (South Bend Heritage Foundation, Inc.)/(KeyBank, N.A. LOC) 2,015,000 6,105,000 Winona Lake, IN, Series 1999 A, Weekly VRDNs (Grace Village Retirement Community)/(Firstar Bank, N.A., Cincinnati, OH LOC) 6,105,000 TOTAL 58,437,342 KANSAS-0.5% 17,900,000 Burlington, KS, Series 1999 FR/RI-A7, Weekly VRDNs (Kansas Gas and Electric Company)/(MBIA INS)/(Bank of New York, NY LIQ) 17,900,000 KENTUCKY-1.4% 950,000 Boone County, KY, Revenue Refunding Bonds Weekly VRDNs (Spring Meadow Associates)/(Huntington National Bank, Columbus, OH LOC) 950,000 7,500,000 Jefferson County, KY, Adjustable Rate Industrial Building Revenue Refunding Bonds, Series 1997, Weekly VRDNs (Kosmos Cement Co. Partnership)/(Societe Generale, Paris LOC) 7,500,000 4,665,000 Kentucky Economic Development Finance Authority Weekly VRDNs (Henderson County Health Care, Inc.)/(Federal Home Loan Bank of Cincinnati, OH LOC) 4,665,000 35,000,000 Owensboro, KY, Series 1996, Weekly VRDNs (Owensboro Mercy Health System, Inc.)/(Bank of America, N.A. LOC) 35,000,000 TOTAL 48,115,000 PRINCIPAL AMOUNT VALUE SHORT-TERM MUNICIPALS- continued 1 LOUISIANA-0.7% $ 14,000,000 Calcasieu Parish, LA, IDB, Series 1999, Weekly VRDNs (PPG Industries, Inc.) $ 14,000,000 800,000 Calcasieu Parish, LA, IDB, PCR Bonds Weekly VRDNs (Citgo Petroleum Corp.)/(Westdeutsche Landesbank Girozentrale LOC) 800,000 2,010,000 Louisiana PFA, Advance Funding Notes, Series 1999 E, 4.25% TRANs (St. James Parish, LA), 10/24/2000 2,015,898 2,000,000 Louisiana PFA, Advance Funding Notes, Series 1999 D, 4.25% TRANs (St. Charles Parish, LA), 10/24/2000 2,005,869 6,500,000 Louisiana Public Facilities Authority Hospital Revenue, Series 1999 FR/RI-A31, Daily VRDNs (Franciscan Missionaries of Our Lady Health System)/(FSA INS)/(Bank of New York, NY LIQ) 6,500,000 TOTAL 25,321,767 MAINE-0.1% 3,500,000 Biddeford, ME, 3.75% BANs, 6/1/2000 3,505,033 MARYLAND-4.0% 4,200,000 Anne Arundel County, MD, Series 1988, Weekly VRDNs (Oakland Hills L. P. Facility)/(Allfirst LOC) 4,200,000 7,000,000 Anne Arundel County, MD, 3.52% TOBs (Baltimore Gas & Electric Co.), Mandatory Tender 6/30/2000 7,000,000 800,000 Baltimore County, MD, Series 1992, Weekly VRDNs (Sheppard & Enoch Pratt Hospital Facility)/(Societe Generale, Paris LOC) 800,000 4,490,000 Baltimore County, MD, Series 1999, Weekly VRDNs (Calvert Hall College Facility)/(Allfirst LOC) 4,490,000 3,700,000 Baltimore, MD PCR Weekly VRDNs (SCM Plants, Inc.)/(Barclays Bank PLC, London LOC) 3,700,000 1,950,000 Baltimore, MD, Variable Rate Demand/Fixed Rate Refunding Bond, Series 1988, Weekly VRDNs (University West LP)/(Allfirst LOC) 1,950,000 10,000,000 Frederick County, MD, Series 1997, Weekly VRDNs (Homewood at Frederick MD, Inc. Facility)/(Allfirst LOC) 10,000,000 1,500,000 Frederick County, MD, Series 1997 E, Weekly VRDNs (Buckinghams Choice, Inc.)/(Lasalle National Bank, Chicago, IL LOC) 1,500,000 1,500,000 Frederick County, MD, Revenue Bonds, Series 1995, Weekly VRDNs (Sheppard Pratt Residential Treatment Facility)/(Societe Generale, Paris LOC) 1,500,000 1,950,000 Harford County, MD, Series 1988, Weekly VRDNs (1001 Partnership Facility)/(Allfirst LOC) 1,950,000 5,490,000 Howard County, MD, Series 1995, Weekly VRDNs (Bluffs at Clarys Forest Apartments)/(Allfirst LOC) 5,490,000 3,335,000 Howard County, MD, Series 1999, Weekly VRDNs (Howard Development Limited Partnership Facility)/(Allfirst LOC) 3,335,000 PRINCIPAL AMOUNT VALUE SHORT-TERM MUNICIPALS- continued 1 MARYLAND-CONTINUED $ 200,000 Maryland Economic Development Corp., Pooled Financing Revenue Bonds, Series 1995, Weekly VRDNs (Maryland Municipal Bond Fund)/(Bank of America, N.A. LOC) $ 200,000 3,510,000 Maryland Economic Development Corp., Variable Rate Demand/Fixed Rate Refunding Revenue Bonds, Series 1997, Weekly VRDNs (Jenkins Memorial Nursing Home, Inc. Facility)/(Allfirst LOC) 3,510,000 6,860,000 Maryland Health & Higher Educational Facilities Authority, Series 1998 A, Weekly VRDNs (Charlestown Community)/(First Union National Bank, Charlotte, NC LOC) 6,860,000 6,700,000 Maryland Health & Higher Educational Facilities Authority, Series 1999, Weekly VRDNs (Boys' Latin School)/(Allfirst LOC) 6,700,000 11,000,000 Maryland Health & Higher Educational Facilities Authority, Series 1999, Weekly VRDNs (Landon School)/(Crestar Bank of Virginia, Richmond, VA LOC) 11,000,000 11,975,000 Maryland Health & Higher Educational Facilities Authority, Revenue Bonds, Series 1994, Weekly VRDNs (University Physicians, Inc.)/(Allfirst LOC) 11,975,000 9,200,000 Maryland Health & Higher Educational Facilities Authority, Series 1997, Weekly VRDNs (Augsburg Lutheran Home of MD., Inc.)/(Allfirst LOC) 9,200,000 21,290,000 2 Maryland State Community Development Administration, (PT-123), 3.80% TOBs (Commerzbank AG, Frankfurt LIQ), Optional Tender 10/5/2000 21,290,000 4,990,000 Maryland State, Floater Certificate, Series 1998- 64, Weekly VRDNs (Morgan Stanley, Dean Witter Municipal Funding, Inc. LIQ) 4,990,000 2,319,000 Montgomery County, MD Housing Opportunities Commission, Variable Rate Housing Revenue Bonds, Series 1998, Weekly VRDNs (Byron House, Inc. Facility)/(Allfirst LOC) 2,319,000 5,000,000 Montgomery County, MD, EDR Weekly VRDNs (Howard Hughes Medical Center) 5,000,000 11,780,000 Westminster, MD, Series 1997, Weekly VRDNs (Western Maryland College, Inc. Facilities)/(Allfirst LOC) 11,780,000 TOTAL 140,739,000 MASSACHUSETTS-0.3% 11,600,000 Commonwealth of Massachusetts, Series 1997 B, Weekly VRDNs (Landesbank Hessen- Thueringen, Frankfurt LIQ) 11,600,000 MICHIGAN-5.6% 1,800,000 ABN AMRO MuniTOPS Certificates Trust (Michigan Non-AMT), Series 1998-11, Weekly VRDNs (DeWitt, MI Public Schools)/(FSA INS)/(ABN AMRO Bank N.V., Amsterdam LIQ) 1,800,000 2,909,000 Battle Creek, MI Economic Development Corporation, Limited Obligation EDR Refunding Bonds, Series 1992, Weekly VRDNs (Michigan Carton & Paperboard Co.)/(American National Bank & Trust Co., Chicago, IL LOC) 2,909,000 300,000 Bruce Township, MI Hospital Finance Authority, Tender Securities Weekly VRDNs (Sisters of Charity Health Care System)/(MBIA INS)/(Morgan Guaranty Trust Co., NY LIQ) 300,000 PRINCIPAL AMOUNT VALUE SHORT-TERM MUNICIPALS- continued 1 MICHIGAN-CONTINUED $ 33,000,000 Detroit, MI Sewage Disposal System, Trust Receipts FR/RI-A75, Series 1999, Weekly VRDNs (FGIC INS)/(Bayerische Hypotheken-und Vereinsbank AG LIQ) $ 33,000,000 800,000 Detroit, MI Water Supply System, Water Supply System Revenue and Revenue Refunding Bonds, Series 1993, Weekly VRDNs (FGIC INS)/(FGIC Securities Purchase, Inc. LIQ) 800,000 12,000,000 Detroit, MI, MERLOTS, Series 2000 D, Weekly VRDNs (FGIC INS)/(First Union National Bank, Charlotte, NC LIQ) 12,000,000 1,740,000 Garden City, MI HFA, Hospital Revenue Bonds, Series 1996 A, Weekly VRDNs (Garden City Hospital, Osteopathic)/(National City Bank, Michigan/Illinois LOC) 1,740,000 2,100,000 Grand Rapids, MI EDR, Floating/Fixed Rate Demand Bonds, Series 1983 B, Weekly VRDNs (Amway Grand Plaza Hotel Facilities)/(Old Kent Bank & Trust Co., Grand Rapids, MI LOC) 2,100,000 500,000 Grand Rapids, MI Economic Development Corp., EDR Refunding Bonds, Series 1991 A, Weekly VRDNs (Amway Hotel Corp.)/(Michigan National Bank, Farmington Hills, MI LOC) 500,000 1,000,000 Grand Rapids, MI Water Supply System, Series 1993, Weekly VRDNs (FGIC INS)/(Societe Generale, Paris LIQ) 1,000,000 6,830,000 Ingham County, MI Economic Development Corp., Adjustable Demand Limited Obligation Revenue Bonds, Series 1995, Weekly VRDNs (Martin Luther Memorial Home, Inc.)/(Bank One, IN N.A. LOC) 6,830,000 4,655,000 Kalamazoo, MI Economic Development Corp., Series 1995, Limited Obligation Revenue Refunding Bonds Weekly VRDNs (Wyndham Project, MI)/(National City Bank, Michigan/Illinois LOC) 4,655,000 1,800,000 Michigan Higher Education Facilities Authority, Series 1999, Daily VRDNs (Concordia College, Ann Arbor MI)/(Allied Irish Banks PLC LOC) 1,800,000 840,000 Michigan Higher Education Facilities Authority, Limited Obligation Revenue Bonds, Series 1997, Weekly VRDNs (Davenport College of Business)/(Old Kent Bank & Trust Co., Grand Rapids, MI LOC) 840,000 16,000,000 Michigan State Building Authority, Series 1, 3.65% CP (Canadian Imperial Bank of Commerce LOC), Mandatory Tender 4/27/2000 16,000,000 9,000,000 Michigan State Hospital Finance Authority, Series 1999 A, Weekly VRDNs (Covenant Reitrement Communities, Inc.)/(Lasalle National Bank, Chicago, IL LOC) 9,000,000 1,300,000 Michigan State Hospital Finance Authority, Series A, Weekly VRDNs (National City Bank, Michigan/Illinois LOC) 1,300,000 1,900,000 Michigan State Hospital Finance Authority, Hospital Equipment Loan Program Bonds, Series A, Weekly VRDNs (National City Bank, Michigan/Illinois LOC) 1,900,000 19,650,000 Michigan State Hospital Finance Authority, MERLOTS, Series 1997 A, Weekly VRDNs (Detroit Medical Center Obligated Group)/(AMBAC INS)/(First Union National Bank, Charlotte, NC LIQ) 19,650,000 39,995,000 Michigan State Hospital Finance Authority, MERLOTS, Series 1999 K, Weekly VRDNs (Ascension Health Credit Group)/(MBIA INS)/(First Union National Bank, Charlotte, NC LIQ) 39,995,000 PRINCIPAL AMOUNT VALUE SHORT-TERM MUNICIPALS- continued 1 MICHIGAN-CONTINUED $ 10,000,000 Michigan State Hospital Finance Authority, Morgan Stanley Floater, Series 1998-180, Weekly VRDNs (Ascension Health Credit Group)/(Morgan Stanley, Dean Witter Municipal Funding, Inc. LIQ) $ 10,000,000 11,000,000 Michigan State Housing Development Authority, MERLOTS, Series G, Weekly VRDNs (MBIA INS)/(First Union National Bank, Charlotte, NC LIQ) 11,288,090 7,295,000 Michigan Strategic Fund, (PA-334), COL Series 1998 AA, Weekly VRDNs (Detroit Edison Co.)/(MBIA INS)/(Merrill Lynch Capital Services, Inc. LIQ) 7,295,000 2,500,000 Michigan Strategic Fund, (PT-244) Weekly VRDNs (Detroit Edison Co.)/(FGIC INS)/(Banque Nationale de Paris LIQ) 2,500,000 2,695,000 Ottawa County, MI Economic Development Corp., Limited Obligation Revenue Bonds, Series 1995 B, Weekly VRDNs (Sunset Manor, Inc. Project)/(Old Kent Bank & Trust Co., Grand Rapids LOC) 2,695,000 4,485,000 Wayne Westland Community Schools, MI, Floater Certificates, Series 1998- 67, Weekly VRDNs (FGIC INS)/(Morgan Stanley, Dean Witter Municipal Funding, Inc. LIQ) 4,485,000 TOTAL 196,382,090 MINNESOTA-4.6% 24,229,000 ABN AMRO MuniTOPS Certificates Trust (Minnesota Non-AMT), Series 1998-6, Weekly VRDNs (Minneapolis/St. Paul, MN Airport Commission)/(AMBAC INS)/(ABN AMRO Bank N.V., Amsterdam LIQ) 24,229,000 2,475,000 Albert Lea, MN ISD No. 241, 3.90% TRANs (Minnesota State GTD), 9/30/2000 2,475,000 4,400,000 Becker, MN, PCR, Series 1993 B, 3.55% CP (Northern States Power Co.), Mandatory Tender 3/10/2000 4,400,000 3,420,000 Chicago Lakes, MN Area Schools No. 2144, 3.84% TRANs (Minnesota State GTD), 9/30/2000 3,420,000 4,420,000 Faribault, MN ISD 656, 3.25% TANs (Minnesota State GTD), 3/9/2000 4,421,081 4,530,000 Forest Lake, MN ISD No. 831, Series 1999 A, 3.65% TANs (Minnesota State GTD), 8/1/2000 4,533,240 3,075,000 Lakeville, MN ISD 194, 3.82% TRANs (Minnesota State GTD), 9/26/2000 3,075,000 3,540,000 Little Falls, MN ISD 482, 3.85% TRANs (Minnesota State GTD), 9/30/2000 3,541,122 3,570,000 Minneapolis, MN, Series 1995 B, Daily VRDNs 3,570,000 20,420,000 Minneapolis, MN, Series 1999, Daily VRDNs (Bayerische Hypotheken-und Vereinsbank AG LIQ) 20,420,000 8,100,000 Minneapolis, MN, Series 1999 A, Daily VRDNs (Bayerische Hypotheken-und Vereinsbank AG LIQ) 8,100,000 16,165,000 Minneapolis, MN, Variable Rate Housing Revenue Bonds Weekly VRDNs (One Ten Grant Project)/(U.S. Bank, N.A., Minneapolis, MN LOC) 16,165,000 PRINCIPAL AMOUNT VALUE SHORT-TERM MUNICIPALS- continued 1 MINNESOTA-CONTINUED $ 5,370,000 Minneapolis, MN, Various Purpose Bonds, Series 1996, Daily VRDNs (Bayerische Hypotheken-und Vereinsbank AG LIQ) $ 5,370,000 3,995,000 Minnesota Public Facilities Authority, Morgan Stanley Floater Certificate, Series 1998 73, Weekly VRDNs (Morgan Stanley, Dean Witter Municipal Funding, Inc. LIQ) 3,995,000 6,000,000 Oak Park Heights, MN, Elderly Housing Revenue Bonds, Series 1998 B, 5.27% TOBs (Bayerische Landesbank Girozentrale), Mandatory Tender 12/1/2000 6,000,000 29,000,000 Rochester, MN Health Care Facility Authority, 3.90% TOBs (Mayo Foundation)/(United States Treasury COL), Mandatory Tender 4/20/2000 29,000,000 6,900,000 Southern Minnesota Municipal Power Agency, 3.75% CP, Mandatory Tender 3/7/2000 6,900,000 11,150,000 University of Minnesota, Series 1999 A, Weekly VRDNs 11,150,000 TOTAL 160,764,443 MISSISSIPPI-0.3% 1,305,000 Hinds County, MS, Series 1991, Weekly VRDNs (North State St. Project)/(Amsouth Bank N.A., Birmingham, AL LOC) 1,305,000 10,000,000 Jackson County, MS Port Facility, 3.85% TOBs (Chevron U.S.A., Inc.)/(Chevron Corp. LOC), Mandatory Tender 5/1/2000 10,000,000 TOTAL 11,305,000 MISSOURI-0.6% 6,490,000 Missouri State HEFA Weekly VRDNs (Barnes Hospital)/(Morgan Guaranty Trust Co., NY LOC) 6,490,000 4,200,000 Missouri State HEFA, Series 1999 F, 4.25% TRANs (Grandview Consolidated School District #4, MO), 9/19/2000 4,212,712 5,000,000 Missouri State HEFA, Series 1999 H, 4.25% TRANs (Mehville R-9 School District, MO), 9/19/2000 5,015,133 4,200,000 Poplar Bluff, MO IDA, Series 1987, Weekly VRDNs (Gates Rubber Co.)/(Bank One, MI LOC) 4,200,000 TOTAL 19,917,845 MULTI STATE-2.9% 26,341,425 ABN AMRO Chicago Corp., Series 1997-1, LeaseTOPS Trust Weekly VRDNs (Lasalle National Bank, Chicago LIQ)/(Lasalle National Bank, Chicago, IL LOC) 26,341,425 33,734,000 Clipper Tax-Exempt Certificates Trust (Non- AMT Multistate), Series A, Weekly VRDNs (State Street Bank and Trust Co. LIQ) 33,734,000 19,081,010 Equity Trust II, Series 1996, Weekly VRDNs (Republic National Bank of New York LOC) 19,081,010 PRINCIPAL AMOUNT VALUE SHORT-TERM MUNICIPALS- continued 1 MULTI STATE-CONTINUED $ 16,754,826 PBCC LeaseTOPS Trust (Multistate Non-AMT), Series 1998 2, Weekly VRDNs (AMBAC INS)/(Pitney Bowes Credit Corp. LIQ) $ 16,754,826 4,840,021 PBCC LeaseTOPS Trust (Multistate Non-AMT), Series 1999 2, Weekly VRDNs (AMBAC INS)/(Pitney Bowes Credit Corp. LIQ) 4,840,021 TOTAL 100,751,282 NEVADA-0.2% 7,500,000 ABN AMRO MuniTOPS Certificates Trust (Multistate Non-AMT), Series 1998-1, Weekly VRDNs (Nevada State)/(MBIA INS)/(ABN AMRO Bank N.V., Amsterdam LIQ) 7,500,000 NEW JERSEY-0.7% 24,930,000 2 New Jersey State, CDC, Series 1997 L, 3.50% TOBs (CDC Municipal Products, Inc. LIQ), Optional Tender 6/8/2000 24,930,000 NEW YORK-8.1% 10,500,000 Long Island Power Authority, Electric System Subordinated Revenue Bonds, Series 1, Weekly VRDNs (Bayerische Landesbank Girozentrale and Westdeutsche Landesbank Girozentrale LOCs) 10,500,000 1,430,000 Metropolitan Transportation Authority, NY, Trust Receipts, Series 1997 FR/RI-9, Weekly VRDNs (FGIC INS)/(Bank of New York, NY LIQ) 1,430,000 25,000,000 Nassau County, NY, Series 1999 B, 4.75% TANs (First Union National Bank, Charlotte, NC LOC), 8/31/2000 25,105,581 10,000,000 Nassau County, NY, Series 1999 C, 4.25% RANs (Bank of New York, NY LOC), 3/15/2000 10,007,456 6,750,000 Nassau County, NY, 4.25% BANs (Fleet National Bank, Springfield, MA LOC), 5/16/2000 6,762,663 2,590,000 New York City Municipal Water Finance Authority, (PT-243) Weekly VRDNs (FSA INS)/(Bayerische Hypotheken-und Vereinsbank AG LIQ) 2,590,000 8,000,000 New York City Municipal Water Finance Authority, Trust Receipts, Series 1997 FR/RI-6, Weekly VRDNs (MBIA INS)/(Bank of New York, NY LIQ) 8,000,000 25,000,000 2 New York City, NY Transitional Finance Authority, Trust Receipts, Series 1999 FR/RI-A47, 3.85% TOBs (Bank of New York, NY LIQ), Optional Tender 2/23/2000 25,000,000 58,000,000 New York City, NY Transitional Finance Authority, Trust Receipts, Series 1999 FR/RI-A48, Weekly VRDNs (Bank of New York, NY LIQ) 58,000,000 10,700,000 New York City, NY Transitional Finance Authority, (PT-1047) Weekly VRDNs (Bank of America, N.A. LIQ) 10,700,000 55,000,000 New York City, NY, Trust Receipts, Series 1999 FR/RI-A51, Weekly VRDNs (Bank of New York, NY LIQ) 55,000,000 5,425,000 New York State Environmental Facilities Corp., Trust Receipts, Series 1997 FR/RI-4, Weekly VRDNs (New York City Municipal Water Finance Authority)/(Bank of New York, NY LIQ) 5,425,000 PRINCIPAL AMOUNT VALUE SHORT-TERM MUNICIPALS- continued 1 NEW YORK-CONTINUED $ 4,995,000 2 New York State Mortgage Agency, (PT-164), 3.25% TOBs (Banque Nationale de Paris LIQ), Optional Tender 3/9/2000 $ 4,995,000 14,735,000 2 New York State Thruway Authority, (PT-1158), 3.25% TOBs (Merrill Lynch Capital Services, Inc. LIQ), Optional Tender 6/8/2000 14,735,000 10,000,000 Syracuse, NY, 4.25% BANs (Fleet National Bank, Springfield, MA LOC), 6/30/2000 10,026,304 28,700,000 VRDC/IVRC Trust, Series 1992 A, Weekly VRDNs (New York City Municipal Water Finance Authority)/(MBIA INS)/(Citibank N.A., NY LIQ) 28,700,000 1,600,000 VRDC/IVRC Trust, Series 1993 B, Weekly VRDNs (Metropolitan Transportation Authority, NY)/(AMBAC INS)/(Citibank N.A., NY LIQ) 1,600,000 4,500,000 VRDC/IVRC Trust, Series 1993 G, Weekly VRDNs (St. Lukes Roosevelt Hospital Center)/(FHA INS)/(Chase Manhattan Bank N.A., NY LIQ) 4,500,000 TOTAL 283,077,004 NORTH CAROLINA-1.4% 15,000,000 Martin County, NC IFA, Series 1993, Weekly VRDNs (Weyerhaeuser Co.) 15,000,000 15,500,000 North Carolina Medical Care Commission, Revenue Bonds, Series 1992 B, Weekly VRDNs (North Carolina Baptist) 15,500,000 13,250,000 North Carolina State, Series 1998 A, (PA-342) Weekly VRDNs (Merrill Lynch Capital Services, Inc. LIQ) 13,250,000 6,600,000 North Carolina State, Floater Certificates, Series 1998-38, Weekly VRDNs (Morgan Stanley, Dean Witter Municipal Funding, Inc. LIQ) 6,600,000 TOTAL 50,350,000 OHIO-8.0% 8,338,000 ABN AMRO MuniTOPS Certificates Trust (Ohio Non-AMT), Series 1998-18, Weekly VRDNs (Cleveland, OH Waterworks)/(FSA INS)/(ABN AMRO Bank N.V., Amsterdam LIQ) 8,338,000 2,150,000 Akron, Bath & Copley, OH Joint Township Weekly VRDNs (Visiting Nurses)/(National City Bank, OH LOC) 2,150,000 12,685,000 Ashland County, OH Health Care, Series 1999, Weekly VRDNs (Brethren Care, Inc.)/(FirstMerit Bank, N.A. LOC) 12,685,000 8,000,000 Avon Lake, OH, 3.625% BANs, 3/31/2000 8,005,932 6,360,000 Banc One Capital Higher Education Tax-Exempt Income Trust, Series 2, Certificates of Ownership, Weekly VRDNs (Bank One, KY LOC) 6,360,000 3,265,000 Butler County, OH, Series 1999, Weekly VRDNs (Knolls of Oxford)/(Firstar Bank, N.A., Cincinnati, OH LOC) 3,265,000 15,000,000 Clark County, OH, Series 1999, Weekly VRDNs (Ohio Masonic Home)/(AMBAC INS)/(Harris Trust & Savings Bank, Chicago, IL LIQ) 15,000,000 4,500,000 Cuyahoga County, OH Health Care Facilities, Series 1999, Weekly VRDNs (Hospice of the Western Reserve)/(Fifth Third Bank, Cincinnati, OH LOC) 4,500,000 7,500,000 Cuyahoga County, OH Hospital Authority, Series C, Weekly VRDNs (Cleveland Clinic) 7,500,000 PRINCIPAL AMOUNT VALUE SHORT-TERM MUNICIPALS- continued 1 OHIO-CONTINUED $ 14,365,000 Cuyahoga County, OH, Series 1999, Weekly VRDNs (The Renaissance)/(Lasalle National Bank, Chicago, IL LOC) $ 14,365,000 6,500,000 Dublin, OH, Industrial Development Refunding Revenue Bonds, Series 1997, Weekly VRDNs (Witco Corp.)/(Fleet National Bank, Springfield, MA LOC) 6,500,000 4,850,000 Erie County, OH, Adjustable Rate Demand Health Care Facilities Bonds, Series 1996 A, Weekly VRDNs (Providence Care Center)/(Bank One, OH, N.A. LOC) 4,850,000 21,035,000 Greene County, OH, Series A, 3.15% BANs, 3/2/2000 21,038,345 17,146,000 Greene County, OH, Series C, 3.50% BANs, 6/1/2000 17,162,427 36,000,000 Greene County, OH, Certificates of Indebtedness, 3.30% BANs, 5/4/2000 36,017,660 5,550,000 Louisville City, OH, Series 1999 A, Weekly VRDNs (St. Joseph Care Center)/(FirstMerit Bank, N.A. LOC) 5,550,000 4,450,000 Louisville City, OH, Series 1999 B, Weekly VRDNs (St. Joseph Care Center)/(FirstMerit Bank, N.A. LOC) 4,450,000 7,090,000 Lucas County, OH Weekly VRDNs (Lutheran Homes Society)/(Bank One, Ohio, N.A. LOC) 7,090,000 190,000 Lucas County, OH, Hospital Improvement Revenue Weekly VRDNs (Sunshine Children's Home)/(National City Bank, OH LOC) 190,000 6,230,000 Mahoning County, OH HFA, Housing Revenue Bonds, Series 1995, Weekly VRDNs (Copeland Oaks Project)/(Bank One, Ohio, N.A. LOC) 6,230,000 6,860,000 Mahoning County, OH Hospital Facilities, Series 1995, Weekly VRDNs (Shepherd of the Valley)/(Bank One, Ohio, N.A. LOC) 6,860,000 7,400,000 Medina County, OH, Series 1997, Weekly VRDNs (Plaza 71 Associates Ltd.)/(Westdeutsche Landesbank Girozentrale LOC) 7,400,000 550,000 Montgomery County, OH IDA Weekly VRDNs (Center-Plex Venture)/(KeyBank, N.A. LOC) 550,000 11,400,000 Montgomery County, OH, Series 1998 B, 3.85% CP (Miami (OH) Valley Hospital)/(Morgan Guaranty Trust Co., New York LIQ), Mandatory Tender 2/8/2000 11,400,000 3,345,000 Montgomery, OH IDA Weekly VRDNs (Bethesda Two Limited Partnership)/(Huntington National Bank, Columbus, OH LOC) 3,345,000 7,780,000 New Albany, OH Community Authority, Adjustable Rate Multi-Purpose Infrastructure Improvement Bonds, Series A, Weekly VRDNs (Huntington National Bank, Columbus, OH LOC) 7,780,000 1,000,000 Ohio State Air Quality Development Authority Weekly VRDNs (Timken Co.)/(Credit Suisse First Boston LOC) 1,000,000 3,800,000 Ohio State Air Quality Development Authority, Series 1988 A, Weekly VRDNs (PPG Industries, Inc.) 3,800,000 10,000,000 Ohio State Higher Education Facility, Series 1999, Weekly VRDNs (Higher Education Pooled Financing 1999 Program) (Fifth Third Bank, Cincinnati, OH, LOC) 10,000,000 1,395,000 Ohio State Higher Education Facility, Revenue Bonds Weekly VRDNs (Notre Dame College)/(National City Bank, OH LOC) 1,395,000 5,000,000 Ohio State University, Series 1999 B2, Weekly VRDNs 5,000,000 PRINCIPAL AMOUNT VALUE SHORT-TERM MUNICIPALS- continued 1 OHIO-CONTINUED $ 6,000,000 Rickenbacker, OH Port Authority, Series 1992, Weekly VRDNs (Rickenbacker Holdings, Inc.)/(Bank One, OH, N.A. LOC) $ 6,000,000 5,185,000 Ross County, OH, Hospital Facilities Revenue Bonds, Series 1995, Weekly VRDNs (Medical Center Hospital)/(Fifth Third Bank, Cincinnati, OH, LOC) 5,185,000 4,665,000 Ross County, OH, Hospital Revenue Bonds Weekly VRDNs (Adena Health System)/(Fifth Third Bank, Cincinnati, OH LOC) 4,665,000 5,200,000 Scioto County, OH Hospital Authority Weekly VRDNs (AMBAC INS)/(Bank One, N.A. LIQ) 5,200,000 3,160,000 Summit County, OH, Adjustable Rate Healthcare Facilities Revenue Bonds, Series 1996, Weekly VRDNs (United Disability Services, Inc.)/(FirstMerit Bank, N.A. LOC) 3,160,000 50,000 Twinsburg, OH IDA Weekly VRDNs (Carl J Massara Project)/(KeyBank, N.A. LOC) 50,000 4,000,000 Walnut Hills, OH High School Alumni Foundation, Series 1998, Weekly VRDNs (Fifth Third Bank, Cincinnati, OH LOC) 4,000,000 2,500,000 Wood County, OH, Series 1998, Weekly VRDNs (IMCO Carbide Tool, Inc.)/(Huntington National Bank, Columbus, OH LOC) 2,500,000 TOTAL 280,537,364 OKLAHOMA-3.4% 63,200,000 Oklahoma State Industrial Authority, Flexible Rate Hospital Revenue Bonds, Series 1990 B, 3.95% TOBs (Baptist Medical Center, OK)/(AIG Funding, Inc.), Mandatory Tender 2/17/2000 63,200,000 37,000,000 Oklahoma State Industrial Authority, Health System Revenue Bonds, Series 1995 A, 3.95% TOBs (Baptist Medical Center, OK)/(AIG Funding, Inc.), Optional Tender 2/17/2000 37,000,000 18,640,000 Tulsa, OK International Airport, Variable Rate Certificates, Series 1997 B-2, Weekly VRDNs (MBIA INS)/(Bank of America, N.A. LIQ) 18,640,000 TOTAL 118,840,000 OREGON-0.2% 6,000,000 Oregon State, Veteran's Welfare Bonds, Series 73 E, Weekly VRDNs (Morgan Guaranty Trust Co., NY LIQ) 6,000,000 PENNSYLVANIA-5.8% 20,525,000 2 ABN AMRO MuniTOPS Certificates Trust (Pennsylvania Non-AMT), Series 1998-28, 3.55% TOBs (Temple University)/(MBIA INS)/(ABN AMRO Bank N.V., Amsterdam LIQ), Optional Tender 2/9/2000 20,525,000 10,000,000 Allegheny County, PA IDA, Series B, Weekly VRDNs (Zoological Society of Pittsburgh)/(PNC Bank, N.A. LOC) 10,000,000 1,225,000 Allegheny County, PA IDA, Commercial Development Revenue Bonds, Series 1992, Weekly VRDNs (Eleven Parkway Center Associates)/(Mellon Bank N.A., Pittsburgh, PA LOC) 1,225,000 31,215,000 Commonwealth of Pennsylvania, Floater Certificate, Series 1998- 53, Weekly VRDNs (FGIC INS)/(Morgan Stanley, Dean Witter Municipal Funding, Inc. LIQ) 31,215,000 PRINCIPAL AMOUNT VALUE SHORT-TERM MUNICIPALS- continued 1 PENNSYLVANIA-CONTINUED $ 14,295,000 Commonwealth of Pennsylvania, Trust Series, Series 1999-3, Weekly VRDNs (FGIC INS)/(Chase Manhattan Bank N.A., NY LIQ) $ 14,295,000 12,700,000 Dauphin County, PA General Authority, (Education and Health Loan Program, Series 1997, Weekly VRDNs (AMBAC INS)/(Chase Manhattan Bank N.A., NY LIQ) 12,700,000 4,900,000 Delaware County, PA Authority, Hospital Revenue Bonds, Series 1996, Weekly VRDNs (Crozer-Chester Medical Center)/(KBC Bank N.V. LOC) 4,900,000 5,500,000 Doylestown Hospital Authority, PA, Doylestown Hospital Revenue Bonds Weekly VRDNs (AMBAC INS)/(PNC Bank, N.A. LIQ) 5,500,000 3,000,000 Erie County, PA Hospital Authority, Series 1998 B, Daily VRDNs (Hamot Health Foundation)/(AMBAC INS)/(PNC Bank, N.A. LIQ) 3,000,000 19,500,000 Lancaster County, PA Hospital Authority, Health Center Revenue Bonds, Series 1996, Weekly VRDNs (Masonic Homes) 19,500,000 7,000,000 Lehigh County, PA General Purpose Authority, Series 2000, Weekly VRDNs (The Good Shepherd Group)/(AMBAC INS)/(First Union National Bank, Charlotte, NC LIQ) 7,000,000 6,290,000 Montgomery County, PA IDA, Commercial Development Revenue Bonds, Series 1992, Weekly VRDNs (Hickory Pointe Project)/(First Union National Bank, Charlotte, NC LOC) 6,290,000 8,760,000 Pennsylvania State Higher Education Assistance Agency, Revenue Refunding Bonds, 6.80% Bonds (FGIC INS), 12/1/2000 8,968,232 7,335,000 Pennsylvania State University, (PT-242) Weekly VRDNs (Bayerische Hypotheken und Vereinsbank AG LIQ) 7,335,000 1,250,000 Philadelphia, PA IDA, Variable Rate Revenue Bonds, Series 1998, Weekly VRDNs (Philadelphia Academy of Music)/(First Union National Bank, Charlotte, NC LOC) 1,250,000 3,500,000 Philadelphia, PA School District, Series 1999-2000 B, 4.00% TRANs (Mellon Bank N.A., Pittsburgh, PA LOC), 6/30/2000 3,507,644 15,000,000 Philadelphia, PA School District, Series 1999-2000 C, 4.00% TRANs (PNC Bank, N.A. LOC), 6/30/2000 15,032,761 25,000,000 Philadelphia, PA, Series 1999-2000 A, 4.25% TRANs, 6/30/2000 25,074,384 7,500,000 Temple University, University Funding Obligations, 3.15% BANs, 5/12/2000 7,500,000 TOTAL 204,818,021 RHODE ISLAND-0.2% 7,540,000 Rhode Island State Health and Educational Building Corp., 8.375% Bonds (Johnson and Wales University)/(United States Treasury PRF), 4/1/2000 (Prerefunded@102) 7,752,677 SOUTH CAROLINA-2.0% 20,000,000 South Carolina State Public Service Authority, 3.70% CP (Bank of America, N.A., Bank of Nova Scotia, Toronto, Commerzbank AG, Frankfurt and Toronto Dominion Bank LIQs), Mandatory Tender 3/7/2000 20,000,000 PRINCIPAL AMOUNT VALUE SHORT-TERM MUNICIPALS- continued 1 SOUTH CAROLINA-CONTINUED $ 18,300,000 South Carolina State Public Service Authority, 3.75% CP (Bank of America, N.A., Bank of Nova Scotia, Toronto, Commerzbank AG, Frankfurt and Toronto Dominion Bank LIQs), Mandatory Tender 2/22/2000 $ 18,300,000 30,000,000 Spartanburg County, SC School District, (No.7), 3.00% BANs, 2/25/2000 30,001,147 TOTAL 68,301,147 TENNESSEE-3.5% 13,071,000 2 ABN AMRO MuniTOPS Certificates Trust (Multistate Non-AMT), Series 1999-1, 3.35% TOBs (Metropolitan Government Nashville & Davidson County, TN)/(FGIC INS)/(ABN AMRO Bank N.V., Amsterdam LIQ), Optional Tender 5/3/2000 13,071,000 22,500,000 Chattanooga, TN HEFA Weekly VRDNs (Mccallie School)/(SunTrust Bank, Atlanta, GA LOC) 22,500,000 8,000,000 Chattanooga, TN HEFA Weekly VRDNs (Sisken Hospital)/(Bank of America, N.A. LOC) 8,000,000 3,200,000 Chattanooga, TN IDB, Series 1997, Weekly VRDNs (YMCA)/(SunTrust Bank, Nashville, TN LOC) 3,200,000 6,300,000 Jackson County, TN IDB, Series B, Daily VRDNs (Esselte AB)/(Bank of America, N.A. LOC) 6,300,000 2,200,000 Knox County, TN IDB, Series 1999, Weekly VRDNs (Educational Services of the South, Inc.)/(SunTrust Bank, Nashville, TN LOC) 2,200,000 4,900,000 Maury County, TN HEFA, Series 1996 E, Weekly VRDNs (Southern Healthcare Systems, Inc.)/(Bank One, TX N.A. LOC) 4,900,000 8,775,000 Memphis, TN Center City Revenue Finance Corp., Series 1996 A, Weekly VRDNs (South Bluffs)/(National Bank of Commerce, Memphis, TN LOC) 8,775,000 2,700,000 Memphis, TN, General Improvement Refunding Bonds, Series 1995 A, Weekly VRDNs (Westdeutsche Landesbank Girozentrale LOC) 2,700,000 1,000,000 Memphis, TN, General Improvement Refunding Bonds, Series 1995 A, Weekly VRDNs (Westdeutsche Landesbank Girozentrale LOC) 1,000,000 1,600,000 Metropolitan Government Nashville & Davidson County, TN HEFA, Series 1996, Weekly VRDNs (Dede Wallace Center)/(SunTrust Bank, Nashville, TN LOC) 1,600,000 7,500,000 Metropolitan Government Nashville & Davidson County, TN HEFA, Educational Facilities Revenue Bonds, Series 1997, Weekly VRDNs (Belmont University)/(SunTrust Bank, Nashville, TN LOC) 7,500,000 2,900,000 Metropolitan Government Nashville & Davidson County, TN IDB, Series 1995, Weekly VRDNs (Hickory Trace Apartments)/(National City Bank, KY LOC) 2,900,000 1,000,000 Montgomery Co, TN Public Building Authority, Pooled Financing Revenue Bonds, Series 1996, Weekly VRDNs (Montgomery County Loan)/(Bank of America, N.A. LOC) 1,000,000 5,000,000 Sevier County, TN Public Building Authority, Series IV-B-10, Daily VRDNs (FSA INS)/(Morgan Guaranty Trust Co., NY LIQ) 5,000,000 5,000,000 Sevier County, TN Public Building Authority, Series IV-B-11, Daily VRDNs (FSA INS)/(Morgan Guaranty Trust Co., NY LIQ) 5,000,000 PRINCIPAL AMOUNT VALUE SHORT-TERM MUNICIPALS- continued 1 TENNESSEE-CONTINUED $ 5,000,000 Sevier County, TN Public Building Authority, Series IV-B-12, Daily VRDNs (FSA INS)/(Morgan Guaranty Trust Co., NY LIQ) $ 5,000,000 5,500,000 Sevier County, TN Public Building Authority, Series IV-B-9, Daily VRDNs (FSA INS)/(Morgan Guaranty Trust Co., NY LIQ) 5,500,000 2,500,000 Sevier County, TN Public Building Authority, Local Government Public Improvement Bonds, Series II-G-3, Weekly VRDNs (Maryville, TN)/(AMBAC INS)/(KBC Bank N.V. LIQ) 2,500,000 1,645,000 Washington County, TN IDB, Revenue Refunding Bonds, Series 1996, Weekly VRDNs (Springbrook Properties)/(SunTrust Bank, Nashville, TN LOC) 1,645,000 12,900,000 Wilson County, TN Sports Authority, Series 1999, Weekly VRDNs (PNC Bank, N.A. LOC) 12,900,000 TOTAL 123,191,000 TEXAS-8.6% 15,000,000 ABN AMRO MuniTOPS Certificates Trust (Multi- State Non-AMT), Series 1998-26, Weekly VRDNs (Grapevine-Colleyville, TX ISD)/(Texas Permanent School Fund Guarantee Program GTD)/(ABN AMRO Bank N.V., Amsterdam LIQ) 15,000,000 12,996,000 ABN AMRO MuniTOPS Certificates Trust (Multistate Non-AMT), Series 1998-19, Weekly VRDNs (Dallas, TX Waterworks & Sewer System)/(FSA INS)/(ABN AMRO Bank N.V., Amsterdam LIQ) 12,996,000 8,950,000 Aldine, TX ISD, Series 1997, SGB-29 Weekly VRDNs (Texas Permanent School Fund Guarantee Program GTD)/(Societe Generale, Paris LIQ) 8,950,000 9,365,000 2 Collin County, TX, (PT- 1156), 3.30% TOBs (Merrill Lynch Capital Services, Inc. LIQ), Optional Tender 5/18/2000 9,365,000 5,575,000 2 Conroe, TX ISD, (PT-1168), 3.65% TOBs (Texas Permanent School Fund Guarantee Program GTD)/(Merrill Lynch Capital Services, Inc. LIQ), Optional Tender 7/20/2000 5,575,000 400,000 Grapevine, TX, IDC, SimuFlite Training International Project, Series 1993, Weekly VRDNs (Southern Air Transport, Inc.)/(Bank of Montreal LOC) 400,000 17,500,000 Harris County, TX HFDC, Series 1994, Daily VRDNs (Methodist Hospital, Harris County, TX) 17,500,000 8,800,000 Harris County, TX HFDC, Series 1997A, Daily VRDNs (St. Luke's Episcopal Hospital)/(Bank of America, N.A., Morgan Guaranty Trust Co., New York and Toronto Dominion Bank LIQs) 8,800,000 14,170,000 Harris County, TX HFDC, Unit Priced Demand Adjustable Revenue Bonds, Series 1997 B, Daily VRDNs (St. Luke's Episcopal Hospital)/(Bank of America, N.A., Morgan Guaranty Trust Co., New York and Toronto Dominion Bank LIQs) 14,170,000 19,435,000 Houston, TX ISD, Morgan Stanley Floater Certificates, Series 1998- 133, Weekly VRDNs (Texas Permanent School Fund Guarantee Program GTD)/(Morgan Stanley, Dean Witter Municipal Funding, Inc. LIQ) 19,435,000 PRINCIPAL AMOUNT VALUE SHORT-TERM MUNICIPALS- continued 1 TEXAS-CONTINUED $ 40,000,000 North Central Texas HFDC, Flexible Rate Hospital Revenue Bonds, Series 1998, 3.55% CP (Methodist Hospitals of Dallas)/(AMBAC INS)/(Methodist Hospitals of Dallas and Rabobank Nederland, Utrecht LIQs), Mandatory Tender 2/18/2000 $ 40,000,000 15,000,000 North Central Texas HFDC, Series 1999 C, Weekly VRDNs (Northwest Senior Housing Corp.)/(Lasalle National Bank, Chicago, IL LOC) 15,000,000 1,470,000 North Richland Hills, TX IDC Weekly VRDNs (Tecnol, Inc.)/(Bank of America, N.A. LOC) 1,470,000 10,000,000 2 San Antonio ISD, TX, (PT- 1184), 3.80% TOBs (Texas Permanent School Fund Guarantee Program GTD)/(Merrill Lynch Capital Services, Inc. LIQ), Optional Tender 9/7/2000 10,000,000 23,200,000 San Antonio, TX Electric & Gas, Series A, 3.60% CP (Chase Bank of Texas, Morgan Guaranty Trust Co., New York, Toronto Dominion Bank and UBS AG LIQs), Mandatory Tender 3/13/2000 23,200,000 4,000,000 San Antonio, TX Electric & Gas, Municipal Securities Trust Receipts, Series 1997 SG 101, Weekly VRDNs (Societe Generale, Paris LIQ) 4,000,000 9,890,000 2 San Antonio, TX Electric & Gas, (PT-1110), 3.25% TOBs (Merrill Lynch Capital Services, Inc. LIQ), Optional Tender 5/11/2000 9,890,000 15,000,000 San Antonio, TX, Waste System, Series 1995, 3.80% CP (Westdeutsche Landesbank Girozentrale LIQ), Mandatory Tender 3/9/2000 15,000,000 3,860,000 TX Pooled Tax Exempt Trust, Certificates of Participation, Series 1996, Weekly VRDNs (Bank One, Texas N.A. LOC) 3,860,000 65,000,000 Texas State, 4.50% TRANs, 8/31/2000 65,268,810 TOTAL 299,879,810 UTAH-0.1% 5,000,000 Emery County, UT, PCR Refunding Bonds, Series 1994, Daily VRDNs (Pacificorp)/(AMBAC INS)/(Bank of Nova Scotia, Toronto LIQ) 5,000,000 VERMONT-0.0% 800,000 Vermont Educational and Health Buildings Financing Agency, Series 1995 A, Weekly VRDNs (KeyBank, N.A. LOC) 800,000 VIRGINIA-1.0% 10,000,000 ABN AMRO MuniTOPS Certificates Trust (Virginia Non-AMT), Series 1998 21, Weekly VRDNs (Norfolk, VA Water Revenue)/(FSA INS)/(ABN AMRO Bank N.V., Amsterdam LIQ) 10,000,000 4,340,000 Alexandria, VA IDA, Series 1999, Weekly VRDNs (Church Schools in the Diocese of Virginia)/(Crestar Bank of Virginia, Richmond, VA LOC) 4,340,000 1,800,000 Arlington County, VA Weekly VRDNs (Ballston Public Parking)/(Citibank N.A. NY LOC) 1,800,000 3,125,000 Arlington County, VA, Series 2000 A, Weekly VRDNs (National Science Teachers Association)/(Crestar Bank of Virginia, Richmond, VA LOC) 3,125,000 100,000 Fairfax County, VA EDA, Series 1995, Weekly VRDNs (American Society of Civil Engineers Foundation, Inc.)/(Mellon Bank N.A., Pittsburgh, PA LOC) 100,000 PRINCIPAL AMOUNT VALUE SHORT-TERM MUNICIPALS- continued 1 VIRGINIA-CONTINUED $ 3,100,000 Fauquier County, VA IDA, Refunding Revenue Bonds Weekly VRDNs (Warrenton Development Co.)/(Fleet Bank N.A. LOC) $ 3,100,000 1,000,000 Hampton, VA Redevelopment & Housing Authority, Series 1998, Weekly VRDNs (Township Apartments)/(Amsouth Bank N.A., Birmingham, AL LOC) 1,000,000 2,600,000 Newport News, VA EDA, Series 1998, Weekly VRDNs (Jefferson Point Development)/(Credit Suisse First Boston LOC) 2,600,000 2,885,000 Richmond, VA Redevelopment & Housing Authority, Series 1989, Weekly VRDNs (Belmont Apartment)/(First Union National Bank, Charlotte, NC LOC) 2,885,000 6,254,000 Roanoke, VA IDA, Series A, Daily VRDNs (Carillion Health System)/(Bank of America, N.A. LIQ) 6,254,000 1,185,000 Virginia Resources Authority, Water and Sewer, Series 1997, Weekly VRDNs (Henrico County, VA)/(Crestar Bank of Virginia, Richmond, VA LIQ) 1,185,000 TOTAL 36,389,000 WASHINGTON-0.9% 4,000,000 ABN AMRO MuniTOPS Certificates Trust (Multistate Non-AMT), Series 1998-16, Weekly VRDNs (Port of Seattle, WA)/(MBIA INS)/(ABN AMRO Bank N.V., Amsterdam LIQ) 4,000,000 11,957,000 ABN AMRO MuniTops Certificates Trust (Multistate Non-AMT), Series 1999-12, Weekly VRDNs (Washington State)/(MBIA INS)/(ABN AMRO Bank N.V., Amsterdam LIQ) 11,957,000 10,000,000 King County, WA, MERLOTS, Series E, Weekly VRDNs (FGIC INS)/(First Union National Bank, Charlotte, NC LIQ) 10,000,000 2,200,000 Port of Seattle, WA, IDR Bonds, Series 1985, Weekly VRDNs (Douglas Management Co.)/(Mellon Bank N.A., Pittsburgh, PA LOC) 2,200,000 2,930,000 Seattle, WA, Solid Waste Utility Revenue Bonds, 4.75% Bonds (FSA INS), 8/1/2000 2,946,938 TOTAL 31,103,938 WEST VIRGINIA-0.6% 7,340,000 Cabell County Commission, WV, Life Care Facilities Multi-Option Revenue Bonds, Series 1995, Weekly VRDNs (Foster Foundation)/(Huntington National Bank, Columbus, OH LOC) 7,340,000 14,500,000 Marshall County, WV, PCR, Series 1992, Weekly VRDNs (PPG Industries, Inc.) 14,500,000 TOTAL 21,840,000 WISCONSIN-2.2% 10,000,000 Appleton, WI Area School District, 4.25% TRANs, 9/25/2000 10,028,053 3,250,000 Hancock, WI, IDR Refunding Bonds, Series 1996, Weekly VRDNs (Ore-Ida Foods, Inc.)/(Heinz (H.J.) Co. GTD) 3,250,000 4,400,000 Kettle Moraine, WI School District, 4.00% TRANs, 9/1/2000 4,406,411 5,900,000 Middleton-Cross Plains Area School District, 4.10% TRANs, 8/23/2000 5,911,072 9,450,000 New Berlin, WI School District, 4.25% TRANs (New Berlin, WI), 8/24/2000 9,474,083 5,000,000 Sparta, WI Area School District, 3.25% BANs, 3/1/2000 5,000,000 PRINCIPAL AMOUNT VALUE SHORT-TERM MUNICIPALS- continued 1 WISCONSIN-CONTINUED $ 4,975,000 Stevens Point, WI Area Public School District, 4.25% TRANs, 10/13/2000 $ 4,988,670 3,500,000 Tomah, WI Area School District, 4.15% TRANs, 9/26/2000 3,507,226 21,590,000 Wisconsin Health and Educational Facilities Authority, MERLOTS, Series 1997 B, Weekly VRDNs (Sinai Samaritan Medical Center, Inc.)/(MBIA INS)/(First Union National Bank, Charlotte, NC LIQ) 21,590,000 9,030,000 2 Wisconsin State, (PT- 1137), 3.90% TOBs (Merrill Lynch Capital Services, Inc. LIQ), Optional Tender 3/9/2000 9,030,000 TOTAL 77,185,515 WYOMING-0.3% 2,050,000 Douglas, WY, IDR Bonds, 4.10% TOBs (Safeway, Inc.)/(Bankers Trust Co., NY LOC) 6/1/2000 2,050,000 6,900,000 Lincoln County, WY, Pollution Control Revenue Bonds, Series 1985, Daily VRDNs (Exxon Corp.) 6,900,000 1,125,000 Natrona County, WY, Hospital Revenue, 5.525% TOBs (Grainger (W.W.), Inc.), Optional Tender 6/1/2000 1,125,000 TOTAL 10,075,000 TOTAL INVESTMENTS (AT AMORTIZED COST) 3 $ 3,494,514,442
1 The fund invests in securities rated in the highest short-term rating category by one or more nationally recognized statistical rating organizations ("NRSROs") or unrated securities of comparable quality. An NRSRO's highest rating category is determined without regard for sub- categories and gradations. For example, securities rated SP-1+ or SP-1 by Standard & Poor's, MIG-1 or VMIG-1 by Moody's Investors Service, or F-1+, F-1 or F-2 by Fitch IBCA, Inc. are all considered rated in the highest short-term rating category. Securities rated in the highest short-term rating category (and unrated securities of comparable quality) are identified as First Tier securities. The fund follows applicable regulations in determining whether a security rated by multiple NRSROs in different rating categories should be identified as a First Tier security. At January 31, 2000, the portfolio securities were rated as follows: Tier Rating Based on Total Market Value (Unaudited)
FIRST TIER SECOND TIER 100.0% 0%
2 Denotes a restricted security which is subject to restrictions on resale under federal securities laws. These securities have been deemed liquid based upon criteria approved by the fund's Board of Trustees. At January 31, 2000, these securities amounted to $261,846,000 which represents 7.5% of net assets. 3 Also represents cost for federal tax purposes. Note: The categories of investments are shown as a percentage of net assets ($3,510,259,181) at January 31, 2000. The following acronyms are used throughout this portfolio: AMBAC -American Municipal Bond Assurance Corporation AMT -Alternative Minimum Tax BANs -Bond Anticipation Notes COL -Collateralized CP -Commercial Paper EDA - -Economic Development Authority EDR -Economic Development Revenue FGIC - -Financial Guaranty Insurance Company FHA -Federal Housing Administration FSA - -Financial Security Assurance GNMA -Government National Mortgage Association GO - -General Obligation GTD -Guaranteed HEFA -Health and Education Facilities Authority HFA -Housing Finance Authority HFDC -Health Facility Development Corporation IDA -Industrial Development Authority IDB -Industrial Development Bond IDC -Industrial Development Corporation IDR -Industrial Development Revenue IDRB -Industrial Development Revenue Bond IFA -Industrial Finance Authority INS - -Insured ISD -Independent School District LIQ(s) -Liquidity Agreement(s) LOC(s) - -Letter(s) of Credit MBIA -Municipal Bond Investors Assurance MERLOTS -Municipal Exempt Receipts - Liquidity Optional Tender Series PUTTERs -Puttable Tax Exempt Receipts PCR -Pollution Control Revenue PFA -Public Facility Authority PRF - -Prerefunded RANs -Revenue Anticipation Notes TANs -Tax Anticipation Notes TOBs - -Tender Option Bonds TRANs -Tax and Revenue Anticipation Notes VRDNs -Variable Rate Demand Notes See Notes which are an integral part of the Financial Statements Statements of Assets and Liabilities January 31, 2000 (unaudited)
GOVERNMENT GOVERNMENT OBLIGATIONS MUNICIPAL OBLIGATIONS TAX-MANAGED OBLIGATIONS FUND FUND FUND ASSETS: Investments in repurchase agreements $ 3,385,300,000 $ - $ - Investments in securities 4,570,181,837 2,831,123,382 600,102,821 Total investments in securities, at amortized cost and value 7,955,481,837 2,831,123,382 600,102,821 Cash - 31,727 3,953 Income receivable 24,439,766 8,681,712 3,753,169 TOTAL ASSETS 7,979,921,603 2,839,836,821 603,859,943 LIABILITIES: Payable for investments purchased 205,381,180 33,164,199 - Income distribution payable 33,564,541 12,474,421 1,669,061 Accrued expenses 730,753 336,112 62,793 TOTAL LIABILITIES 239,676,474 45,974,732 1,731,854 NET ASSETS CONSIST OF: Paid-in capital $ 7,740,245,129 $ 2,793,862,089 $ 602,128,089 TOTAL NET ASSETS $ 7,740,245,129 $ 2,793,862,089 $ 602,128,089 NET ASSETS: Institutional Shares $ 5,359,860,329 $ 1,299,312,363 $ 385,011,947 Institutional Service Shares 2,380,384,800 1,494,549,726 156,813,788 Institutional Capital Shares - - 60,302,354 TOTAL NET ASSETS $ 7,740,245,129 $ 2,793,862,089 $ 602,128,089 SHARES OUTSTANDING: Institutional Shares 5,359,860,329 1,299,312,363 385,011,947 Institutional Service Shares 2,380,384,800 1,494,549,726 156,813,788 Institutional Capital Shares - - 60,302,354 NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PROCEEDS PER SHARE: Institutional Shares $1.00 $1.00 $1.00 Institutional Service Shares $1.00 $1.00 $1.00 Institutional Capital Shares - - $1.00
See Notes which are an integral part of the Financial Statements Statements of Assets and Liabilities January 31, 2000 (unaudited)
PRIME CASH PRIME VALUE TAX-FREE OBLIGATIONS OBLIGATIONS OBLIGATIONS FUND FUND FUND ASSETS: Investments in repurchase agreements $ 419,300,000 $ 172,800,000 $ - Investments in securities 4,349,054,931 2,149,078,695 3,494,514,442 Total investments in securities, at amortized cost and value 4,768,354,931 2,321,878,695 3,494,514,442 Cash - - 51,278 Income receivable 22,889,897 17,367,919 25,832,321 TOTAL ASSETS 4,791,244,828 2,339,246,614 3,520,398,041 LIABILITIES: Payable for investments purchased 23,000,000 13,005,500 - Payable for shares redeemed - 119,958 - Income distribution payable 19,935,135 9,917,589 9,758,408 Accrued expenses 403,507 183,864 380,452 TOTAL LIABILITIES 43,338,642 23,226,911 10,138,860 NET ASSETS CONSIST OF: Paid-in capital $ 4,747,906,186 $ 2,316,019,703 $ 3,510,198,190 Accumulated net realized loss on investments - - (9,417) Undistributed net investment income - - 70,408 TOTAL NET ASSETS $ 4,747,906,186 $ 2,316,019,703 $ 3,510,259,181 NET ASSETS: Institutional Shares $ 3,552,028,420 $ 1,464,772,259 $ 2,514,172,741 Institutional Service Shares 941,678,879 644,807,473 996,086,440 Institutional Capital Shares 254,198,887 206,439,971 - TOTAL NET ASSETS $ 4,747,906,186 $ 2,316,019,703 $ 3,510,259,181 SHARES OUTSTANDING: Institutional Shares 3,552,028,420 1,464,772,259 2,514,157,700 Institutional Service Shares 941,678,879 644,807,473 996,059,903 Institutional Capital Shares 254,198,887 206,439,971 - NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PROCEEDS PER SHARE: Institutional Shares $1.00 $1.00 $1.00 Institutional Service Shares $1.00 $1.00 $1.00 Institutional Capital Shares $1.00 $1.00 -
See Notes which are an integral part of the Financial Statements Statements of Operations Six Months Ended January 31, 2000 (unaudited)
GOVERNMENT GOVERNMENT OBLIGATIONS MUNICIPAL OBLIGATIONS TAX-MANAGED OBLIGATIONS FUND FUND FUND INVESTMENT INCOME: Interest $ 187,924,630 $ 72,111,871 $ 11,492,304 EXPENSES: Investment adviser fee 6,843,214 2,630,606 621,635 Administrative personnel and services fee 2,578,757 991,290 230,607 Custodian fees 186,251 69,427 9,198 Transfer and dividend disbursing agent fees and expenses 108,520 17,845 37,351 Directors'/Trustees' fees 18,931 7,947 3,604 Auditing fees 6,837 6,575 7,518 Legal fees 11,893 5,913 9,480 Portfolio accounting fees 245,925 117,103 63,941 Shareholder services fee- Institutional Shares 5,926,984 1,531,299 - - Shareholder services fee- Institutional Service Shares 2,629,451 1,756,959 129,753 Shareholder services fee- Institutional Capital Shares - - 144,269 Share registration costs 29,499 32,139 35,702 Printing and postage 35,805 14,632 12,326 Insurance premiums 6,905 3,311 13,482 Miscellaneous 19,029 15,202 3,914 TOTAL EXPENSES 18,648,001 7,200,248 1,322,780 WAIVERS: Waiver of investment adviser fee (3,096,184) (1,244,508) (467,728) Waiver of shareholder services fee- Institutional Shares (5,926,984) (1,531,299) - - Waiver of shareholder services fee-Institutional Capital Shares - - (86,561) TOTAL WAIVERS (9,023,168) (2,775,807) (554,289) Net expenses 9,624,833 4,424,441 768,491 Net investment income 178,299,797 67,687,430 10,723,813
See Notes which are an integral part of the Financial Statements Statements of Operations Six Months Ended January 31, 2000 (unaudited)
PRIME CASH PRIME VALUE TAX- FREE OBLIGATIONS OBLIGATIONS OBLIGATIONS FUND FUND FUND INVESTMENT INCOME: Interest $ 110,742,532 $ 63,805,090 $ 62,025,897 EXPENSES: Investment adviser fee 3,933,700 2,287,798 3,504,355 Administrative personnel and services fee 1,482,342 862,148 1,320,585 Custodian fees 127,845 69,790 64,074 Transfer and dividend disbursing agent fees and expenses 63,464 57,131 36,319 Directors'/Trustees' fees 11,801 7,992 10,513 Auditing fees 7,867 5,739 5,257 Legal fees 11,801 4,592 39,348 Portfolio accounting fees 167,182 106,371 136,670 Shareholder services fee- Institutional Shares - 15,623 3,117,368 Shareholder services fee- Institutional Service Shares 1,263,556 807,577 1,263,075 Shareholder services fee- Institutional Capital Shares 326,171 331,859 - - Share registration costs 27,536 23,192 14,017 Printing and postage 15,735 19,350 19,750 Insurance premiums 100,309 56,189 98,879 Miscellaneous 15,735 12,513 10,513 TOTAL EXPENSES 7,555,044 4,667,864 9,640,723 WAIVERS: Waiver of investment adviser fee (2,312,353) (1,605,681) (1,678,829) Waiver of shareholder services fee-Institutional Shares - (15,623) (3,117,368) Waiver of shareholder services fee-Institutional Capital Shares (195,702) (199,115) - - TOTAL WAIVERS (2,508,055) (1,820,419) (4,796,197) Net expenses 5,046,989 2,847,445 4,844,526 Net investment income 105,695,543 60,957,645 57,181,371 REALIZED AND UNREALIZED GAIN ON INVESTMENTS: Net realized gain on investments - - 38,568 Change in net assets resulting from operations $ 105,695,543 $ 60,957,645 $ 57,219,939
See Notes which are an integral part of the Financial Statements Statements of Changes in Net Assets
GOVERNMENT GOVERNMENT OBLIGATIONS OBLIGATIONS FUND TAX-MANAGED FUND SIX MONTHS SIX MONTHS ENDED ENDED (unaudited) YEAR ENDED (unaudited) YEAR ENDED JANUARY 31, JULY 31, JANUARY 31, JULY 31, 2000 1999 2000 1999 INCREASE (DECREASE) IN NET ASSETS OPERATIONS: Net investment income $ 178,299,797 $ 305,404,334 $ 67,687,430 $ 105,399,317 DISTRIBUTIONS TO SHAREHOLDERS: Distributions from net investment income Institutional Shares (125,282,016) (222,751,323) (32,376,997) (50,768,000) Institutional Service Shares (53,017,781) (82,653,011) (35,310,433) (54,631,317) CHANGE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS (178,299,797) (305,404,334) (67,687,430) (105,399,317) SHARE TRANSACTIONS: Proceeds from sale of shares 35,603,087,459 51,401,497,598 5,526,772,319 9,394,668,858 Net asset value of shares issued to shareholders in payment of distributions declared 51,056,584 97,236,668 11,210,610 24,328,475 Cost of shares redeemed (34,499,733,881) (50,292,422,340) (5,140,088,134) (8,806,949,621) CHANGE IN NET ASSETS FROM SHARE TRANSACTIONS 1,154,410,162 1,206,311,926 397,894,795 612,047,712 Change in net assets 1,154,410,162 1,206,311,926 397,894,795 612,047,712 NET ASSETS: Beginning of period 6,585,834,967 5,379,523,041 2,395,967,294 1,783,919,582 End of period $ 7,740,245,129 $ 6,585,834,967 $ 2,793,862,089 $ 2,395,967,294
See Notes which are an integral part of the Financial Statements Statements of Changes in Net Assets
MUNICIPAL OBLIGATIONS FUND SIX MONTHS ENDED (unaudited) PERIOD ENDED YEAR ENDED JANUARY 31, JULY 31, JANUARY 31, 2000 1999 1 1999 INCREASE (DECREASE) IN NET ASSETS OPERATIONS: Net investment income $ 10,723,813 $ 8,046,126 $ 13,575,634 DISTRIBUTIONS TO SHAREHOLDERS: Distributions from net investment income Institutional Shares (7,009,718) (5,706,072) (9,176,860) Institutional Service Shares (1,728,405) (1,210,234) (2,031,566) Institutional Capital Shares (1,985,690) (1,129,820) (2,367,208) CHANGE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS (10,723,813) (8,046,126) (13,575,634) SHARE TRANSACTIONS: Proceeds from sale of shares 3,627,131,426 3,686,794,227 6,671,442,391 Net asset value of shares issued to shareholders in payment of distributions declared 3,078,152 2,790,181 4,797,681 Cost of shares redeemed (3,563,407,568) (3,640,523,643) (6,466,730,133) CHANGE IN NET ASSETS FROM SHARE TRANSACTIONS 66,802,010 49,060,765 209,509,939 Change in net assets 66,802,010 49,060,765 209,509,939 NET ASSETS: Beginning of period 535,326,079 486,265,314 276,755,375 End of period $ 602,128,089 $ 535,326,079 $ 486,265,314
1 The fund changed its fiscal year-end from January 31 to July 31. See Notes which are an integral part of the Financial Statements Statements of Changes in Net Assets
PRIME CASH OBLIGATIONS FUND SIX MONTHS ENDED (unaudited) PERIOD ENDED YEAR ENDED JANUARY 31, JULY 31, JANUARY 31, 2000 1999 1 1999 INCREASE (DECREASE) IN NET ASSETS OPERATIONS: Net investment income $ 105,695,543 $ 85,879,759 $ 122,009,606 DISTRIBUTIONS TO SHAREHOLDERS: Distributions from net investment income Institutional Shares (72,721,053) (52,994,564) (73,059,518) Institutional Service Shares (26,072,744) (21,202,105) (36,684,622) Institutional Capital Shares (6,901,746) (11,683,090) (12,265,466) CHANGE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS (105,695,543) (85,879,759) (122,009,606) SHARE TRANSACTIONS: Proceeds from sale of shares 31,955,436,436 24,795,354,445 33,162,916,740 Net asset value of shares issued to shareholders in payment of distributions declared 45,791,699 35,271,569 55,512,391 Cost of shares redeemed (30,387,022,597) (24,647,235,068) (32,428,562,553) CHANGE IN NET ASSETS FROM SHARE TRANSACTIONS 1,614,205,538 183,390,946 789,866,578 Change in net assets 1,614,205,538 183,390,946 789,866,578 NET ASSETS: Beginning of period 3,133,700,648 2,950,309,702 2,160,443,124 End of period $ 4,747,906,186 $ 3,133,700,648 $ 2,950,309,702
1 The fund changed its fiscal year-end from January 31 to July 31. See Notes which are an integral part of the Financial Statements Statements of Changes in Net Assets
PRIME VALUE TAX-FREE OBLIGATIONS FUND OBLIGATIONS FUND SIX MONTHS SIX MONTHS ENDED ENDED (unaudited) PERIOD ENDED YEAR ENDED (unaudited) YEAR ENDED JANUARY 31, JULY 31, JANUARY 31, JANUARY 31, JULY 31, 2000 1999 1 1999 2000 1999 INCREASE (DECREASE) IN NET ASSETS OPERATIONS: Net investment income $ 60,957,645 $ 57,197,837 $ 86,540,164 $ 57,181,371 $ 105,505,939 Net realized gain (loss) on investments - - - - 38,568 (30,299) CHANGE IN NET ASSETS RESULTING FROM OPERATIONS 60,957,645 57,197,837 86,540,164 57,219,939 105,475,640 DISTRIBUTIONS TO SHAREHOLDERS: Distributions from net investment income Institutional Shares (37,407,899) (38,874,779) (60,707,164) (41,622,998) (76,303,750) Institutional Service Shares (16,581,631) (12,570,275) (19,716,305) (15,558,373) (29,202,189) Institutional Capital Shares (6,968,115) (5,752,783) (6,116,695) - - CHANGE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS (60,957,645) (57,197,837) (86,540,164) (57,181,371) (105,505,939) SHARE TRANSACTIONS: Proceeds from sale of shares 17,875,953,483 17,356,187,248 26,516,611,802 8,104,100,858 19,112,974,988 Net asset value of shares issued to shareholders in payment of distributions declared 32,277,704 39,241,753 51,764,190 4,732,626 12,430,534 Cost of shares redeemed (17,723,421,217) (17,433,612,169) (25,657,179,044) (8,115,960,133) (18,828,314,145) CHANGE IN NET ASSETS FROM SHARE TRANSACTIONS 184,809,970 (38,183,168) 911,196,948 (7,126,649) 297,091,377 Change in net assets 184,809,970 (38,183,168) 911,196,948 (7,088,081) 297,061,078 NET ASSETS: Beginning of period 2,131,209,733 2,169,392,901 1,258,195,953 3,517,347,262 3,220,286,184 End of period $ 2,316,019,703 $ 2,131,209,733 $ 2,169,392,901 $ 3,510,259,181 $ 3,517,347,262 Undistributed net investment income included in net assets at end of period $ - $ - $ - - $ 70,408 $ 70,408
1 The fund changed its fiscal year-end from January 31 to July 31. See Notes which are an integral part of the Financial Statements Financial Highlights - Institutional Shares (For a share outstanding throughout each period)
NET ASSET DISTRIBUTIONS VALUE, NET FROM NET DISTRIBUTIONS BEGINNING INVESTMENT INVESTMENT FROM NET YEAR ENDED JULY 31 OF PERIOD INCOME INCOME REALIZED GAINS GOVERNMENT OBLIGATIONS FUND 1995 $1.00 0.05 (0.05) - 1996 $1.00 0.05 (0.05) - 1997 $1.00 0.05 (0.05) - 1998 $1.00 0.05 (0.05) - 1999 $1.00 0.05 (0.05) - 2000 3 $1.00 0.03 (0.03) - GOVERNMENT OBLIGATIONS TAX-MANAGED FUND 1995 5 $1.00 0.01 (0.01) - 1996 $1.00 0.05 (0.05) - 1997 $1.00 0.05 (0.05) - 1998 $1.00 0.05 (0.05) - 1999 $1.00 0.05 (0.05) - 2000 3 $1.00 0.03 (0.03) - MUNICIPAL OBLIGATIONS FUND 1995 $1.00 0.03 (0.03) - 1996 $1.00 0.04 (0.04) (0.00) 6 1997 7 $1.00 0.04 (0.04) - 1998 $1.00 0.04 (0.04) - 1999 $1.00 0.03 (0.03) - 1999 8 $1.00 0.02 (0.02) - 2000 3 $1.00 0.02 (0.02) -
1 Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. 2 This voluntary expense decrease is reflected in both the expense and net investment income ratios shown. 3 Six months ended January 31, 2000 (unaudited). 4 Computed on an annualized basis. 5 Reflects operations for the period from June 2, 1995 (date of initial public investment) to July 31, 1995. 6 Amount represents less than ($0.01) per share. 7 Federated Investment Management Company, formerly Federated Management, became the fund's investment adviser on November 15, 1996. Prior to November 15, 1996, Lehman Brothers Global Asset Management served as the fund's investment adviser. 8 The fund changed its fiscal year-end from January 31 to July 31. See Notes which are an integral part of the Financial Statements
RATIOS TO AVERAGE NET ASSETS NET NET ASSETS, NET ASSET VALUE, INVESTMENT EXPENSE WAIVER/ END OF PERIOD END OF PERIOD TOTAL RETURN 1 EXPENSES INCOME REIMBURSEMENT 2 (000 OMITTED) $1.00 5.57% 0.20% 5.58% 0.40% $ 1,926,516 $1.00 5.55% 0.20% 5.41% 0.36% $ 2,182,999 $1.00 5.43% 0.20% 5.32% 0.35% $ 3,293,392 $1.00 5.59% 0.20% 5.45% 0.35% $ 3,707,106 $1.00 5.04% 0.20% 4.92% 0.34% $ 4,498,581 $1.00 2.68% 0.20% 4 5.29% 4 0.34% 4 $ 5,359,860 $1.00 0.94% 0.20% 4 5.78% 4 0.65% 4 $ 3,070 $1.00 5.50% 0.17% 5.28% 0.44% $ 199,243 $1.00 5.35% 0.20% 5.26% 0.38% $ 510,683 $1.00 5.49% 0.20% 5.35% 0.37% $ 953,268 $1.00 5.00% 0.20% 4.88% 0.35% $ 1,066,412 $1.00 2.67% 0.20% 4 5.28% 4 0.35% 4 $ 1,299,312 $1.00 3.04% 0.15% 2.86% 0.16% $ 93,595 $1.00 4.03% 0.18% 3.95% 0.12% $ 135,120 $1.00 3.56% 0.18% 3.48% 0.20% $ 159,561 $1.00 3.68% 0.18% 3.57% 0.23% $ 217,838 $1.00 3.53% 0.18% 3.41% 0.41% $ 303,899 $1.00 1.59% 0.18% 4 3.17% 4 0.18% 4 $ 354,034 $1.00 1.80% 0.18% 4 3.49% 4 0.15% 4 $ 385,012
Financial Highlights - Institutional Shares (For a share outstanding throughout each period)
NET ASSET DISTRIBUTIONS VALUE, NET FROM NET BEGINNING INVESTMENT INVESTMENT YEAR ENDED JULY 31 OF PERIOD INCOME INCOME PRIME CASH OBLIGATIONS FUND 1995 $1.00 0.04 (0.04) 1996 $1.00 0.06 (0.06) 1997 3 $1.00 0.05 (0.05) 1998 $1.00 0.06 (0.06) 1999 $1.00 0.05 (0.05) 1999 4 $1.00 0.02 (0.02) 2000 6 $1.00 0.03 (0.03) PRIME VALUE OBLIGATIONS FUND 1995 $1.00 0.04 (0.04) 1996 $1.00 0.06 (0.06) 1997 3 $1.00 0.05 (0.05) 1998 $1.00 0.06 (0.06) 1999 $1.00 0.05 (0.05) 1999 4 $1.00 0.02 (0.02) 2000 6 $1.00 0.03 (0.03) TAX-FREE OBLIGATIONS FUND 1995 $1.00 0.04 (0.04) 1996 $1.00 0.03 (0.03) 1997 $1.00 0.03 (0.03) 1998 $1.00 0.03 (0.03) 1999 $1.00 0.03 (0.03) 2000 6 $1.00 0.02 (0.02)
1 Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. 2 This voluntary expense decrease is reflected in both the expense and net investment income ratios shown. 3 Federated Investment Management Company, formerly Federated Management, became the fund's investment adviser on November 15, 1996. Prior to November 15, 1996, Lehman Brothers Global Asset Management served as the fund's investment adviser. 4 The fund changed its fiscal year-end from January 31 to July 31. 5 Computed on an annualized basis. 6 Six months ended January 31, 2000 (unaudited). See Notes which are an integral part of the Financial Statements
RATIOS TO AVERAGE NET ASSETS NET NET ASSETS, NET ASSET VALUE, INVESTMENT EXPENSE WAIVER/ END OF PERIOD END OF PERIOD TOTAL RETURN 1 EXPENSES INCOME REIMBURSEMENT 2 (000 OMITTED) $1.00 4.52% 0.12% 4.30% 0.13% $ 1,538,802 $1.00 6.08% 0.17% 5.90% 0.08% $ 3,919,186 $1.00 5.38% 0.18% 5.25% 0.14% $ 1,572,912 $1.00 5.61% 0.18% 5.44% 0.12% $ 1,100,620 $1.00 5.50% 0.18% 5.29% 0.37% $ 1,825,266 $1.00 2.42% 0.18% 5 4.81% 5 0.13% 5 $ 1,929,887 $1.00 2.74% 0.18% 5 5.47% 5 0.12% 5 $ 3,552,028 $1.00 4.51% 0.09% 4.20% 0.16% $ 1,470,317 $1.00 6.10% 0.17% 5.93% 0.08% $ 2,754,390 $1.00 5.41% 0.16% 5.29% 0.15% $ 387,994 $1.00 5.68% 0.14% 5.59% 0.18% $ 865,742 $1.00 5.53% 0.16% 5.37% 0.40% $ 1,474,123 $1.00 2.44% 0.16% 5 4.87% 5 0.15% 5 $ 1,147,717 $1.00 2.73% 0.16% 5 5.44% 5 0.14% 5 $ 1,464,772 $1.00 3.64% 0.20% 3.62% 0.39% $ 1,295,458 $1.00 3.55% 0.20% 3.46% 0.36% $ 1,514,979 $1.00 3.49% 0.20% 3.43% 0.35% $ 1,474,180 $1.00 3.50% 0.20% 3.45% 0.35% $ 2,279,770 $1.00 3.14% 0.20% 3.08% 0.35% $ 2,461,697 $1.00 1.69% 0.20% 5 3.34% 5 0.35% 5 $ 2,514,173
Financial Highlights - Institutional Service Shares (For a share outstanding throughout each period)
NET ASSET DISTRIBUTIONS VALUE, NET FROM NET BEGINNING INVESTMENT INVESTMENT YEAR ENDED JULY 31 OF PERIOD INCOME INCOME GOVERNMENT OBLIGATIONS FUND 1995 3 $1.00 0.05 (0.05) 1996 $1.00 0.05 (0.05) 1997 $1.00 0.05 (0.05) 1998 $1.00 0.05 (0.05) 1999 $1.00 0.05 (0.05) 2000 5 $1.00 0.03 (0.03) GOVERNMENT OBLIGATIONS TAX-MANAGED FUND 1995 6 $1.00 0.01 (0.01) 1996 $1.00 0.05 (0.05) 1997 $1.00 0.05 (0.05) 1998 $1.00 0.05 (0.05) 1999 $1.00 0.05 (0.05) 2000 5 $1.00 0.03 (0.03) MUNICIPAL OBLIGATIONS FUND 1997 7 $1.00 0.03 (0.03) 1998 $1.00 0.03 (0.03) 1999 $1.00 0.03 (0.03) 1999 8 $1.00 0.01 (0.01) 2000 5 $1.00 0.02 (0.02)
1 Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. 2 This voluntary expense decrease is reflected in both the expense and net investment income ratios shown. 3 Reflects operations for the period from August 1, 1994 (date of initial public investment) to July 31, 1995. For the period from the effective date, July 5, 1994 to July 31, 1994, all net investment income was distributed to the fund's Adviser. 4 Computed on an annualized basis. 5 Six months ended January 31, 2000 (unaudited). 6 Reflects operations for the period from May 30, 1995 (date of initial public investment) to July 31, 1995. 7 Federated Investment Management Company, formerly Federated Management, became the fund's investment adviser on November 15, 1996. Prior to November 15, 1996, Lehman Brothers Global Asset Management served as the fund's investment adviser. 8 The fund changed its fiscal year-end from January 31 to July 31. See Notes which are an integral part of the Financial Statements
RATIOS TO AVERAGE NET ASSETS NET NET ASSETS, NET ASSET VALUE, INVESTMENT EXPENSE WAIVER/ END OF PERIOD END OF PERIOD TOTAL RETURN 1 EXPENSES INCOME REIMBURSEMENT 2 (000 OMITTED) $1.00 5.31% 0.45% 4 5.63% 4 0.15% 4 $ 339,105 $1.00 5.29% 0.45% 5.14% 0.11% $ 702,274 $1.00 5.16% 0.45% 5.06% 0.10% $ 936,869 $1.00 5.33% 0.45% 5.23% 0.10% $ 1,672,417 $1.00 4.78% 0.45% 4.67% 0.09% $ 2,087,254 $1.00 2.55% 0.45% 4 5.04% 4 0.09% 4 $ 2,380,385 $1.00 0.95% 0.45% 4 5.55% 4 0.40% 4 $ 76,165 $1.00 5.23% 0.42% 5.00% 0.19% $ 322,698 $1.00 5.09% 0.45% 4.97% 0.13% $ 421,095 $1.00 5.23% 0.45% 5.11% 0.12% $ 830,652 $1.00 4.74% 0.45% 4.63% 0.10% $ 1,329,556 $1.00 2.55% 0.45% 4 5.02% 4 0.10% 4 $ 1,494,550 $1.00 3.31% 0.43% 3.08% 0.21% $ 0.30 $1.00 3.43% 0.43% 3.48% 0.23% $ 41,216 $1.00 3.27% 0.43% 3.22% 0.16% $ 67,832 $1.00 1.47% 0.43% 4 2.98% 4 0.18% 4 $ 106,684 $1.00 1.67% 0.43% 4 3.33% 4 0.15% 4 $ 156,814
Financial Highlights -Institutional Service Shares (For a share outstanding throughout each period)
NET ASSET DISTRIBUTIONS VALUE, NET FROM NET BEGINNING INVESTMENT INVESTMENT YEAR ENDED JULY 31 OF PERIOD INCOME INCOME PRIME CASH OBLIGATIONS FUND 1995 $1.00 0.04 (0.04) 1996 $1.00 0.06 (0.06) 1997 3 $1.00 0.05 (0.05) 1998 $1.00 0.05 (0.05) 1999 $1.00 0.05 (0.05) 1999 4 $1.00 0.02 (0.02) 2000 6 $1.00 0.03 (0.03) PRIME VALUE OBLIGATIONS FUND 1995 $1.00 0.04 (0.04) 1996 $1.00 0.06 (0.06) 1997 3 $1.00 0.05 (0.05) 1998 $1.00 0.05 (0.05) 1999 $1.00 0.05 (0.05) 1999 4 $1.00 0.02 (0.02) 2000 6 $1.00 0.03 (0.03) TAX-FREE OBLIGATIONS FUND 1995 $1.00 0.03 (0.03) 1996 $1.00 0.03 (0.03) 1997 $1.00 0.03 (0.03) 1998 $1.00 0.03 (0.03) 1999 $1.00 0.03 (0.03) 2000 6 $1.00 0.02 (0.02)
1 Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. 2 This voluntary expense decrease is reflected in both the expense and net investment income ratios shown. 3 Federated Investment Management Company, formerly Federated Management, became the fund's investment adviser on November 15, 1996. Prior to November 15, 1996, Lehman Brothers Global Asset Management served as the fund's investment adviser. 4 The fund changed its fiscal year-end from January 31 to July 31. 5 Computed on an annualized basis. 6 Six months ended January 31, 2000 (unaudited). See Notes which are an integral part of the Financial Statements
RATIOS TO AVERAGE NET ASSETS NET NET ASSETS, NET ASSET VALUE, INVESTMENT EXPENSE WAIVER/ END OF PERIOD END OF PERIOD TOTAL RETURN 1 EXPENSES INCOME REIMBURSEMENT 2 (000 OMITTED) $1.00 4.21% 0.37% 4.05% 0.13% $ 342,673 $1.00 5.83% 0.42% 5.65% 0.08% $ 324,474 $1.00 5.11% 0.43% 5.02% 0.14% $ 412,762 $1.00 5.34% 0.43% 5.29% 0.12% $ 668,665 $1.00 5.23% 0.43% 5.09% 0.12% $ 894,851 $1.00 2.29% 0.43% 5 4.63% 5 0.13% 5 $ 957,998 $1.00 2.61% 0.43% 5 5.16% 5 0.12% 5 $ 941,679 $1.00 4.26% 0.34% 3.95% 0.16% $ 21,739 $1.00 5.84% 0.42% 5.68% 0.08% $ 20,372 $1.00 5.15% 0.41% 5.05% 0.16% $ 18,415 $1.00 5.41% 0.39% 5.32% 0.17% $ 325,390 $1.00 5.27% 0.41% 5.13% 0.15% $ 495,172 $1.00 2.31% 0.41% 5 4.64% 5 0.15% 5 $ 707,737 $1.00 2.61% 0.41% 5 5.13% 5 0.14% 5 $ 644,807 $1.00 3.39% 0.45% 3.48% 0.14% $ 252,016 $1.00 3.29% 0.45% 3.22% 0.11% $ 406,408 $1.00 3.24% 0.45% 3.19% 0.10% $ 587,983 $1.00 3.25% 0.45% 3.20% 0.10% $ 940,516 $1.00 2.89% 0.45% 2.83% 0.10% $ 1,055,650 $1.00 1.57% 0.45% 5 3.08% 5 0.10% 5 $ 996,086
Notes to Financial Statements January 31, 2000 (unaudited) ORGANIZATION 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 of the following portfolios (individually referred to as the "Fund", or collectively as the "Funds") are presented herein:
PORTFOLIO NAME DIVERSIFICATION CLASS OF SHARES INVESTMENT OBJECTIVE Government Obligations Fund diversified Institutional Shares Institutional Service Shares To provide current income consistent with stability of principal. Government Obligations Tax-Managed Fund non-diversified Institutional Shares Institutional Service Shares To provide current income consistent with stability of principal and liquidity. Municipal Obligations Fund diversified Institutional Shares Institutional Service Shares Institutional Capital Shares To provide current income exempt from federal regular income tax consistent with stability of principal. Prime Cash Obligations Fund diversified Institutional Shares Institutional Service Shares Institutional Capital Shares To provide current income consistent with stability of principal and liquidity. Prime Value Obligations Fund diversified Institutional Shares Institutional Service Shares Institutional Capital Shares To provide current income consistent with stability of principal and liquidity. Tax-Free Obligations Fund non-diversified Institutional Shares Institutional Service Shares To provide dividend income exempt from federal regular income tax consistent with stability of principal.
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. SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. These policies are in conformity with generally accepted accounting principles. INVESTMENT VALUATION The Funds use the amortized cost method to value their portfolio securities in accordance with Rule 2a-7 under the Act. REPURCHASE AGREEMENTS It is the policy of the Funds 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 Funds 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 Funds will only enter into repurchase agreements with banks and other recognized financial institutions, such as broker/dealers, which are deemed by the Funds' 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 Funds could receive less than the repurchase price on the sale of collateral securities. The Funds, along with other affiliated investment companies, may utilize a joint trading account for the purpose of entering into one or more repurchase agreements. INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS Interest income and expenses are accrued daily. Bond premium and discount, if applicable, are amortized as required by the Internal Revenue Code, as amended (the "Code"). 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. The Funds offer multiple classes of shares, which differ in their respective distribution and service fees. All shareholders bear the common expenses of the Funds 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. FEDERAL TAXES It is the Funds' policy to comply with the provisions of the Code applicable to regulated investment companies and to distribute to shareholders each year substantially all of their income. Accordingly, no provisions for federal tax are necessary. At July 31, 1999, the Tax-Free Obligations Fund, for federal tax purposes, had a capital loss carryforward of $43,005, which will reduce the Fund's taxable income arising from future net realized gain on investments, if any, to the extent permitted by the Code, and thus will reduce the amount of the distributions to shareholders which would otherwise be necessary to relieve the Fund of any liability for federal tax. Pursuant to the code, such capital loss carryforward will expire as follows:
EXPIRATION YEAR EXPIRATION AMOUNT 2005 $17,686 2007 25,319
Additionally, for the Tax-Free Obligations Fund, net capital losses of $4,980 attributable to security transactions incurred after October 31, 1998, are treated as arising on August 1, 1999, the first day of the Fund's next taxable year. WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS The Funds may engage in when-issued or delayed delivery transactions. The Funds record when-issued securities on the trade date and maintain 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 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 Funds 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. CHANGE IN FISCAL YEAR Municipal Obligations Fund, Prime Cash Obligations Fund and Prime Value Obligations Fund have changed their fiscal year-ends from January 31 to July 31. USE OF ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated. OTHER Investment transactions are accounted for on a trade date basis. 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). Transactions in shares were as follows:
SIX MONTHS ENDED YEAR ENDED GOVERNMENT OBLIGATIONS JANUARY 31, JULY 31, FUND 2000 1999 INSTITUTIONAL SHARES: Shares sold 20,862,025,312 36,151,964,653 Shares issued to shareholders in payment of distributions declared 30,960,744 61,202,566 Shares redeemed (20,031,706,577) (35,421,691,944) NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS 861,279,479 791,475,275 INSTITUTIONAL SERVICE SHARES: Shares sold 14,741,062,147 15,249,532,945 Shares issued to shareholders in payment of distributions declared 20,095,840 36,034,102 Shares redeemed (14,468,027,304) (14,870,730,396) NET CHANGE RESULTING FROM INSTITUTIONAL SERVICE SHARE TRANSACTIONS 293,130,683 414,836,651 NET CHANGE RESULTING FROM SHARE TRANSACTIONS 1,154,410,162 1,206,311,926
SIX MONTHS ENDED YEAR ENDED GOVERNMENT OBLIGATIONS JANUARY 31, JULY 31, TAX-MANAGED FUND 2000 1999 INSTITUTIONAL SHARES: Shares sold 2,156,226,826 3,078,610,269 Shares issued to shareholders in payment of distributions declared 2,390,929 8,784,273 Shares redeemed (1,925,717,052) (2,974,250,945) NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS 232,900,703 113,143,597 INSTITUTIONAL SERVICE SHARES: Shares sold 3,370,545,493 6,316,058,589 Shares issued to shareholders in payment of distributions declared 8,819,681 15,544,202 Shares redeemed (3,214,371,082) (5,832,698,676) NET CHANGE RESULTING FROM INSTITUTIONAL SERVICE SHARE TRANSACTIONS 164,994,092 498,904,115 NET CHANGE RESULTING FROM SHARE TRANSACTIONS 397,894,795 612,047,712
SIX MONTHS ENDED PERIOD ENDED YEAR ENDED JANUARY 31, JULY 31, JANUARY 31, MUNICIPAL OBLIGATIONS FUND 2000 1999 1 1999 INSTITUTIONAL SHARES: Shares sold 2,864,665,365 3,220,798,056 5,212,142,622 Shares issued to shareholders in payment of distributions declared 1,141,383 1,004,656 1,302,615 Shares redeemed (2,834,828,428) (3,171,653,273) (5,127,376,711) NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS 30,978,320 50,149,439 86,068,526 INSTITUTIONAL SERVICE SHARES: Shares sold 314,612,990 217,446,882 422,524,378 Shares issued to shareholders in payment of distributions declared 1,103,221 1,080,682 1,503,612 Shares redeemed (265,585,981) (179,672,680) (397,415,401) NET CHANGE RESULTING FROM INSTITUTIONAL SERVICE SHARE TRANSACTIONS 50,130,230 38,854,884 26,612,589 INSTITUTIONAL CAPITAL SHARES: Shares sold 447,853,071 248,572,618 1,036,775,391 Shares issued to shareholders in payment of distributions declared 833,548 704,843 1,991,454 Shares redeemed (462,993,159) (289,197,690) (941,938,021) NET CHANGE RESULTING FROM INSTITUTIONAL CAPITAL SHARE TRANSACTIONS (14,306,540) (39,920,229) 96,828,824 NET CHANGE RESULTING FROM SHARE TRANSACTIONS 66,802,010 49,084,094 209,509,939
1 The Fund changed its fiscal year-end from January 31 to July 31.
SIX MONTHS ENDED PERIOD ENDED YEAR ENDED PRIME VALUE OBLIGATIONS JANUARY 31, JULY 31, JANUARY 31, FUND 2000 1999 1 1999 INSTITUTIONAL SHARES: Shares sold 11,233,594,319 11,553,124,074 19,781,464,858 Shares issued to shareholders in payment of distributions declared 19,884,976 27,134,621 34,346,178 Shares redeemed (10,936,424,092) (11,906,664,823) (19,207,430,021) NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS 317,055,203 (326,406,128) 608,381,015 INSTITUTIONAL SERVICE SHARES: Shares sold 5,683,567,035 4,750,407,849 5,129,107,787 Shares issued to shareholders in payment of distributions declared 8,972,651 8,335,094 12,725,748 Shares redeemed (5,755,469,263) (4,546,178,066) (4,972,051,133) NET CHANGE RESULTING FROM INSTITUTIONAL SERVICE SHARE TRANSACTIONS (62,929,577) 212,564,877 169,782,402 INSTITUTIONAL CAPITAL SHARES: Shares sold 958,792,129 1,052,655,325 1,606,039,157 Shares issued to shareholders in payment of distributions declared 3,420,077 3,772,038 4,692,264 Shares redeemed (1,031,527,862) (980,769,280) (1,477,697,890) NET CHANGE RESULTING FROM INSTITUTIONAL CAPITAL SHARE TRANSACTIONS (69,315,656) 75,658,083 133,033,531 NET CHANGE RESULTING FROM SHARE TRANSACTIONS 184,809,970 (38,183,168) 911,196,948
1 The Fund changed its fiscal year-end from January 31 to July 31.
SIX MONTHS ENDED YEAR ENDED JANUARY 31, JULY 31, TAX-FREE OBLIGATIONS FUND 2000 1999 INSTITUTIONAL SHARES: Shares sold 6,397,226,285 15,059,862,985 Shares issued to shareholders in payment of distributions declared 3,225,276 9,142,522 Shares redeemed (6,348,001,440) (14,887,054,802) NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS 52,450,121 181,950,705 INSTITUTIONAL SERVICE SHARES: Shares sold 1,706,874,573 4,053,112,003 Shares issued to shareholders in payment of distributions declared 1,507,350 3,288,012 Shares redeemed (1,767,958,693) (3,941,259,343) NET CHANGE RESULTING FROM INSTITUTIONAL SERVICE SHARE TRANSACTIONS (59,576,770) 115,140,672 NET CHANGE RESULTING FROM SHARE TRANSACTIONS (7,126,649) 297,091,377
INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES INVESTMENT ADVISER FEE Federated Investment Management Company, the Funds' investment adviser (the "Adviser"), receives for its services an annual investment adviser fee equal to the percentage of the Funds' average daily net assets as follows:
INVESTMENT ADVISER FUND FEE PERCENTAGE Government Obligations Fund 0.20% Government Obligations Tax-Managed Fund 0.20% Municipal Obligations Fund 0.20% Prime Cash Obligations Fund 0.20% Prime Value Obligations Fund 0.20% Tax-Free Obligations Fund 0.20%
The Adviser may voluntarily choose to waive any portion of its fee. The Adviser can modify or terminate this voluntary waiver at any time at its sole discretion. ADMINISTRATIVE FEE Federated Services Company ("FServ"), under the Administrative Services Agreement, provides the Funds 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. SHAREHOLDER SERVICES FEE Under the terms of a Shareholder Services Agreement with Federated Shareholder Services Company ("FSSC"), the Funds will pay FSSC up to 0.25% of average daily net assets of each Fund for the period. The fee paid to FSSC is used to finance certain services for shareholders and to maintain shareholder accounts. FSSC may voluntarily choose to waive any portion of its fee. FSSC can modify or terminate this voluntary waiver at any time at its sole discretion. TRANSFER AND DIVIDEND DISBURSING AGENT FEES AND EXPENSES FServ, through its subsidiary FSSC, serves as transfer and dividend disbursing agent for the Funds. The fee paid to FSSC is based on the size, type and number of accounts and transactions made by shareholders. PORTFOLIO ACCOUNTING FEES FServ maintains the Funds' accounting records for which it receives a fee. The fee is based on the level of each Fund's average daily net assets for the period, plus out-of-pocket expenses. INTERFUND TRANSACTIONS During the period ended January 31, 2000, the Funds engaged in purchase and sale transactions with funds that have a common investment adviser (or affiliated investment advisers), common Directors/Trustees, and/or common Officers. These purchase and sale transactions complied with Rule 17a-7 under the Act. Interfund transactions were as follows:
FUND PURCHASES SALES Government Obligations Tax-Managed Fund $ 9,988,467 $ - Municipal Obligations Fund $ 1,047,410,000 $ 1,359,638,000 Prime Cash Obligations Fund $ - $ 5,000,000 Tax-Free Obligations Fund $ 2,870,922,000 $ 2,964,635,160
GENERAL Certain of the Officers and Trustees of the Trust are Officers and Directors or Trustees of the above companies. Trustees JOHN F. DONAHUE THOMAS G. BIGLEY JOHN T. CONROY, JR. NICHOLAS P. CONSTANTAKIS JOHN F. CUNNINGHAM J. CHRISTOPHER DONAHUE LAWRENCE D. ELLIS, M.D. PETER E. MADDEN CHARLES F. MANSFIELD, JR. JOHN E. MURRAY, JR., J.D., S.J.D. MARJORIE P. SMUTS JOHN S. WALSH Officers JOHN F. DONAHUE Chairman J. CHRISTOPHER DONAHUE President 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 funds' prospectuses which contain facts concerning each fund's objective and policies, management fees, expenses, and other information. [Graphic] Federated World-Class Investment Manager SEMI-ANNUAL REPORT Money Market Obligations Trust Institutional Shares Institutional Service Shares SEMI-ANNUAL REPORT TO SHAREHOLDERS January 31, 2000 [Graphic] Federated Money Market Obligations Trust Federated Investors Funds 5800 Corporate Drive Pittsburgh, PA 15237-7000 1-800-341-7400 WWW.FEDERATEDINVESTORS.COM Federated Securities Corp., Distributor Cusip 60934N104 Cusip 60934N625 Cusip 60934N807 Cusip 60934N617 Cusip 60934N856 Cusip 60934N583 Cusip 60934N849 Cusip 60934N575 Cusip 60934N658 Cusip 60934N401 Cusip 60934N641 Cusip 60934N880 25244 (3/00) [Graphic] SEMI-ANNUAL REPORT President's Message Dear Shareholder: I am pleased to present the Semi-Annual Report to Shareholders for Money Market Trust. This report covers the first half of the fund's fiscal year, which is the six-month reporting period ended January 31, 2000. It begins with an investment review on the short-term market by the fund's portfolio manager. Following the investment review are the fund's portfolio of investments and financial statements. In Money Market Trust, your ready cash is working to pursue competitive daily income and to provide the additional advantages of daily liquidity and stability of principal. 1 At the end of the reporting period, 53% of the fund's $390 million portfolio was invested in high-quality commercial paper. The remainder was invested in variable-rate obligations, short-term notes, loan participation securities, a repurchase agreement, a municipal bond and a certificate of deposit. Over the six-month reporting period, dividends paid to shareholders totaled $0.03 per share. Thank you for your confidence in the daily earning power of Money Market Trust. We welcome your comments and suggestions. Sincerely, [Graphic] J. Christopher Donahue President March 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 the money market funds seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in these funds. Investment Review Money Market Trust invests in money market instruments maturing in 13 months or less. The average maturity of these securities, computed on a dollar weighted basis, is restricted to 90 days or less. Portfolio securities must be rated in the highest short-term rating category by one or more of the nationally recognized statistical rating organizations or be of comparable quality to securities having such ratings. Typical security types include, but are not limited to: commercial paper, certificates of deposit, time deposits, variable rate instruments and repurchase agreements. The past six months represented another banner period for economic growth in the U.S. Gross domestic product growth averaged 5.5% in 1999, with the economy gaining steam in the second half of the year. The outlook for 2000 is one of continuing strength and above trend performance based on a phenomenal consumer sentiment. The consumer has kept this year's performance on steady ground, but the industrial sector also kept pace through the fourth quarter. Although industry did not out perform in the fourth quarter, it held steady, letting the consumer engine pull the overall economy ahead. With an overall unemployment rate of just 4.1%, it is difficult to see what could derail the consumer. Inflation concerns retreated from their spring heights to rather mundane levels. For the entire reporting period, the consumer price index increased just 2.90%, while the producer price index rose 3.50%, both on an annualized basis. Wages also increased throughout the year, growing at an overall rate of 4.00% annualized during the second half of 1999. However, concern remains that the pool of labor available may cause wage pressures to escalate in the near term. The Federal Reserve Board (the "Fed") continued to act preemptively to quell these inflationary threats and raised the target rate for Federal Funds from 5.00% to 5.25% on August 24, 1999, and then again from 5.25% to 5.50% on November 16, 1999. The market had already anticipated such actions, resulting in a much steeper money market yield curve throughout most of the reporting period. Thirty day commercial paper started the period at 5.11% on July 1, 1999, and then basically traded steadily up to the 5.50% level through the end of November. Seasonal and Y2K effects then took hold and caused the 30-day commercial paper rate to spike as high as 6.46% in December before retreating to the 5.78% level at the end of the reporting period. The target average maturity range for the fund was decreased from 45- 55 days to 40-50 days on January 10, 2000, reflecting the Fed's concerns about overzealousness in the stock markets and potential inflationary threats. In structuring the Fund, there is continued emphasis placed on positioning 30-35% of the fund's assets in variable rate demand notes and accomplishing a modest barbell structure. During the six months ended January 31, 2000, the net assets of the fund increased from $380.4 to $390.1 million while the 7-day net yield increased from 4.72% to 5.43%. 1 The effective average maturity of the Fund on January 31, 2000 was 44 days. 1 Past performance is no guarantee of future results. Yield will vary. Yields quoted for money market funds most closely reflect the fund's current earning. Last Meeting of Shareholders A special meeting of Shareholders of Money Market Trust (the "Former Fund"), a portfolio of Money Market Obligations Trust (the "Trust") was held on November 17, 1999. On September 20, 1999, the record date for shareholders voting at the meeting, there were 388,186,446 total outstanding shares. The following items were considered by shareholders and the results of their voting were as follows: AGENDA ITEM 1 Election of Trustees: 1
WITHHELD AUTHORITY FOR TO VOTE John F. Cunningham 273,622,230 158,322 J. Christopher Donahue 273,519,174 261,378 Charles F. Mansfield, Jr. 273,622,230 158,322 John S. Walsh 273,580,818 199,734
1 The following Trustees continued their terms as Trustees: John F. Donahue, Thomas G. Bigley, John T. Conroy, Nicholas P. Constantakis, Lawrence D. Ellis, M.D., Peter E. Madden, John E. Murray, Jr., J.D., S.J.D. and Marjorie P. Smuts. AGENDA ITEM 2 To approve amendments to, and a restatement of, the Former Fund's declaration of trust: (a) To approve an amendment and restatement of the Former Fund's Declaration of Trust to require the approval by a majority of the outstanding voting shares in the event of the sale or conveyance of the assets of the Former Fund to another trust or corporation.
FOR AGAINST ABSTENTIONS 273,343,321 113,260 288,222
(b) To amend and restate the Former Fund's declaration of trust to permit the Board of Trustees to liquidate assets of the Former Fund, and distribute the proceeds of such assets to the holders of such shares representing such interests, without seeking shareholder approval.
FOR AGAINST ABSTENTIONS 271,713,104 1,690,667 341,032
AGENDA ITEM 3 To approve a proposed agreement and plan of reorganization between the Former Fund and the Trust, on behalf of its series, Money Market Trust ( the "Fund"), whereby the Fund would acquire all of the assets of the Former Fund in exchange for shares of the Fund to be distributed pro rata by the Former Fund to its shareholders in complete liquidation and termination of the Former Fund:
FOR AGAINST ABSTENTIONS 272,658,601 566,074 520,128
Portfolio of Investments JANUARY 31, 2000 (UNAUDITED)
PRINCIPAL AMOUNT VALUE SHORT-TERM NOTES-13.1% BANKING-3.4% $ 13,200,000 Bank One, Illinois, N.A., 6.025% - 6.200%, 10/10/2000 - 11/13/2000 $ 13,194,938 BROKERAGE-8.7% 2,000,000 1 Goldman Sachs Group, Inc., 5.900%, 3/24/2000 2,000,000 32,000,000 Goldman Sachs Group, Inc., 6.000% - 6.010%, 3/14/2000 - 4/26/2000 32,000,000 TOTAL 34,000,000 FINANCE - AUTOMOTIVE-0.4% 618,900 Honda Auto Lease Trust 1999-A, Class A-1, 5.445%, 8/15/2000 618,900 786,212 Toyota Auto Receivables 1999-A, Owner Trust, Class 1, 5.365%, 8/11/2000 786,212 TOTAL 1,405,112 FINANCE - EQUIPMENT-0.6% 587,062 Caterpillar Financial Asset Trust 1999-A, Class 1, 5.365%, 7/25/2000 587,062 1,306,951 Copelco Capital Funding Trust 1999-B, Class A-1, 5.937%, 10/18/2000 1,306,951 375,981 Heller Equipment Asset Receivables Trust 1999-1, Class A-1, 4.948%, 5/13/2000 375,981 176,431 Navistar Financial 1999-A Owner Trust, Class A-1, 5.003%, 6/15/2000 176,431 TOTAL 2,446,425 INSURANCE-0.0% 1,000 Americredit Automobile Receivables Trust 2000-A, Class A-1, 6.040%, 2/5/2001 1,000 TOTAL SHORT-TERM NOTES 51,047,475 CERTIFICATES OF DEPOSIT- 2.1% BANKING-2.1% 8,000,000 BankAmerica, N.A., 5.260%, 2/1/2000 8,000,000 COMMERCIAL PAPER-53.3% 2 BANKING-25.8% 2,000,000 Asset Securitization Cooperative Corp., 5.750%, 2/24/2000 1,992,653 10,000,000 Benedictine Health System, (Harris Trust & Savings Bank, Chicago LOC), 6.125%, 3/9/2000 9,937,049 19,611,000 Fountain Square Commercial Funding Corp., (Fifth Third Bank, Cincinnati Support Agreement), 5.870% - 5.950%, 2/22/2000 - 4/17/2000 19,444,839 16,955,000 Market Street Funding Corp., (PNC Bank, N.A. LOC), 5.700% - 5.760%, 2/22/2000 - 3/6/2000 16,883,915 19,455,000 PREFCO-Preferred Receivables Funding Co., 5.670% - 5.750%, 2/22/2000 - 3/7/2000 19,381,521 7,000,000 Park Avenue Receivables Corp., 5.900%, 2/10/2000 6,989,675 PRINCIPAL AMOUNT VALUE COMMERCIAL PAPER-continued 2 BANKING-CONTINUED $ 12,200,000 Receivables Capital Corp., 5.680% - 5.900%, 2/9/2000 - 4/20/2000 $ 12,067,751 14,000,000 Three Rivers Funding Corp., 5.660%, 2/10/2000 13,980,190 TOTAL 100,677,593 BROKERAGE-7.3% 10,000,000 Morgan Stanley, Dean Witter & Co., 5.850%, 4/17/2000 9,876,500 19,000,000 Salomon Smith Barney Holdings, Inc., 5.850%, 4/3/2000 18,808,575 TOTAL 28,685,075 FINANCE - AUTOMOTIVE-1.3% 5,000,000 General Motors Acceptance Corp., 5.250%, 3/6/2000 4,975,208 FINANCE - COMMERCIAL-11.6% 20,000,000 CIT Group, Inc., 5.840%, 4/27/2000 19,720,978 20,000,000 General Electric Capital Corp., 4.950% - 5.920%, 2/4/2000 - 5/12/2000 19,842,578 5,800,000 Sheffield Receivables Corp., 5.720% - 5.950%, 2/11/2000 - 2/22/2000 5,785,699 TOTAL 45,349,255 INSURANCE-7.3% 11,700,000 CXC, Inc., 5.870%, 4/7/2000 - 4/28/2000 11,536,586 17,000,000 Marsh USA, Inc., 5.780% - 5.850%, 2/16/2000 - 7/28/2000 16,823,834 TOTAL 28,360,420 TOTAL COMMERCIAL PAPER 208,047,551 LOAN PARTICIPATION-5.4% FINANCE - AUTOMOTIVE-1.6% 6,000,000 General Motors Acceptance Corp., Mortgage of PA, (Guaranteed by General Motors Acceptance Corp.), 5.620% - 5.820%, 2/3/2000 - 2/22/2000 6,000,000 FINANCE - EQUIPMENT-3.8% 15,000,000 Pitney Bowes Credit Corp., 5.809%, 2/10/2000 14,978,325 TOTAL LOAN PARTICIPATION 20,978,325 MUNICIPALS-1.7% 6,800,000 Bergen County, NJ Improvement Authority, Bergen Regional Medical Center Project, (Series 1999-A), (Guaranteed by Bergen County, NJ Improvement Authority), 5.330%, 3/16/2000 6,800,000 VARIABLE RATE OBLIGATIONS- 22.7% 3 BANKING-12.1% 3,700,000 500 South Front St. LP, Series A, (Huntington National Bank, Columbus, OH LOC), 5.980%, 2/3/2000 3,700,000 3,800,000 Barker Property Management LLC, (Series 1998), (Wachovia Bank of NC, N.A., Winston- Salem LOC), 5.820%, 2/2/2000 3,800,000 PRINCIPAL AMOUNT VALUE VARIABLE RATE OBLIGATIONS- continued 3 BANKING-CONTINUED $ 3,500,000 Chemi-Trol Chemical Co., (Huntington National Bank, Columbus, OH LOC), 5.980%, 2/3/2000 $ 3,500,000 4,500,000 Comerica Bank, 5.791%, 2/9/2000 4,497,954 6,000,000 Economic Development Partnership of Alabama, Inc., (Series 1998), (Amsouth Bank N.A., Birmingham LOC), 6.160%, 2/3/2000 6,000,000 2,000,000 Bethesda Healthcare, Inc., (Series 1999), (Firstar Bank, N.A., Cincinnati LOC), 5.900%, 2/3/2000 2,000,000 10,400,000 Home City Ice Co. & H.C. Transport, (Series 2000), (Firstar Bank, N.A., Cincinnati LOC), 5.930%, 2/3/2000 10,400,000 2,000,000 Kent Capital LLC, (Series 1999), (Huntington National Bank, Columbus, OH LOC), 5.980%, 2/3/2000 2,000,000 1,900,000 Scranton Times LP, (PNC Bank, N.A. LOC), 5.810%, 8/30/2000 1,900,000 5,000,000 Three Rivers Funding Corp., 5.880%, 2/17/2000 5,000,000 4,300,000 Wildcat Management Co., Inc., (Series 1999), (Firstar Bank, N.A., Cincinnati LOC), 5.900%, 2/3/2000 4,300,000 TOTAL 47,097,954 BROKERAGE-2.3% 9,200,000 Morgan Stanley, Dean Witter & Co., 5.830% - 5.880%, 2/4/2000 9,200,000 ELECTRICAL EQUIPMENT-0.9% 3,655,000 Alabama State IDA, General Electric Project, (General Electric Co. LOC), 5.750%, 2/3/2000 3,655,000 FINANCE - AUTOMOTIVE-1.2% 4,600,000 General Motors Acceptance Corp., 5.830%, 2/1/2000 4,600,000 FINANCE - EQUIPMENT-2.6% 10,000,000 Deere (John) Capital Corp., 6.230%, 2/1/2000 10,001,614 INSURANCE-3.6% 4,000,000 Albuquerque, NM, (Series 2000 A), (Insured by MBIA), 5.730%, 2/2/2000 4,000,000 4,000,000 1 Allstate Life Insurance Co., 6.113% - 6.616%, 2/1/2000 4,000,000 3,000,000 1 Jackson National Life Insurance Co., 5.900%, 2/22/2000 3,000,000 3,000,000 Security Life of Denver Insurance Co., 6.359%, 2/10/2000 3,000,000 TOTAL 14,000,000 TOTAL VARIABLE RATE OBLIGATIONS 88,554,568 PRINCIPAL AMOUNT VALUE REPURCHASE AGREEMENT-1.6% 4 $ 6,300,000 Bank of America, 5.800%, dated 1/31/2000, due 2/1/2000 $ 6,300,000 TOTAL INVESTMENTS (AT AMORTIZED COST) 5 $ 389,727,919
1 Denotes a security which is subject to restrictions on resale under federal securities laws. At January 31, 2000, these securities amounted to $9,000,000, which represents 2.3% of net assets. 2 Each issue shows the rate of discount at the time of purchase for discount issues, or the coupon for interest bearing issues. 3 Current rate and next reset date shown. 4 The repurchase agreement is collateralized fully by U.S. Treasury or government agency obligations based on market prices at the date of the portfolio. The investment in the repurchase agreement is through participation in joint accounts with other Federated funds. 5 Also represents cost for federal tax purposes. Note: The categories of investments are shown as a percentage of net assets ($390,060,690) as of January 31, 2000. The following acronyms are used throughout this portfolio: IDA -Industrial Development Authority LOC -Letter of Credit MBIA -Municipal Bond Investors Assurance See Notes which are an integral part of the Financial Statements Statement of Assets and Liabilities JANUARY 31, 2000 (UNAUDITED)
ASSETS: Total investments in securities at amortized cost and value $ 389,727,919 Income receivable 2,112,699 Receivable for shares sold 24,782 TOTAL ASSETS 391,865,400 LIABILITIES: Payable for investments purchased $ 1,000 Payable for shares redeemed 1,500 Income distribution payable 1,769,597 Accrued expenses 32,613 TOTAL LIABILITIES 1,804,710 Net assets for 390,060,690 shares outstanding $ 390,060,690 NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PROCEEDS PER SHARE: $390,060,690 / 390,060,690 shares outstanding $1.00
See Notes which are an integral part of the Financial Statements Statement of Operations SIX MONTHS ENDED JANUARY 31, 2000 (UNAUDITED)
INVESTMENT INCOME: Interest $ 10,965,325 EXPENSES: Investment adviser fee $ 784,957 Administrative personnel and services fee 147,903 Custodian fees 16,324 Transfer and dividend disbursing agent fees and expenses 64,108 Directors'/Trustees' fees 6,831 Auditing fees 6,596 Legal fees 4,068 Portfolio accounting fees 40,812 Shareholder services fee 490,598 Share registration costs 9,699 Printing and postage 11,464 Insurance premiums 13,231 Miscellaneous 2,711 TOTAL EXPENSES 1,599,302 WAIVERS: Waiver of investment adviser fee $ (314,022) Waiver of shareholder services fee (392,478) TOTAL WAIVERS (706,500) Net expenses 892,802 Net investment income $ 10,072,523
See Notes which are an integral part of the Financial Statements Statement of Changes in Net Assets
SIX MONTHS ENDED (unaudited) YEAR ENDED JANUARY 31, JULY 31, 2000 1999 INCREASE (DECREASE) IN NET ASSETS OPERATIONS: Net investment income $ 10,072,523 $ 21,206,728 DISTRIBUTIONS TO SHAREHOLDERS: Distributions from net investment income (10,072,523) (21,206,728) SHARE TRANSACTIONS: Proceeds from sale of shares 1,069,301,832 2,231,199,677 Net asset value of shares issued to shareholders in payment of distributions declared 1,608,394 3,706,698 Cost of shares redeemed (1,061,249,944) (2,266,609,807) CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS 9,660,282 (31,703,432) Change in net assets 9,660,282 (31,703,432) NET ASSETS: Beginning of period 380,400,408 412,103,840 End of period $ 390,060,690 $ 380,400,408
See Notes which are an integral part of the Financial Statements Financial Highlights (FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
SIX MONTHS ENDED (unaudited) JANUARY 31, YEAR ENDED JULY 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 0.05 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 RETURN 1 2.59% 4.88% 5.35% 5.19% 5.31% 5.42% RATIOS TO AVERAGE NET ASSETS: Expenses 0.46% 2 0.46% 0.46% 0.46% 0.46% 0.46% Net investment income 5.13% 2 4.81% 5.24% 5.09% 5.22% 5.32% SUPPLEMENTAL DATA: Net assets, end of period (000 omitted) $390,061 $380,400 $412,104 $464,012 $513,687 $507,272
1 Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. 2 Computed on an annualized basis. See Notes which are an integral part of the Financial Statements Notes to Financial Statements JANUARY 31, 2000 (UNAUDITED) ORGANIZATION Money Market Trust (the "Fund") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. Effective February 1, 2000, the Fund became a portfolio of Money Market Obligations Trust (the "Trust"). 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 stability of principal and current income consistent with stability of principal. SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with generally accepted accounting principles. INVESTMENT VALUATIONS The Fund's use the amortized cost method to value its portfolio securities is in accordance with Rule 2a-7 under the Act. REPURCHASE AGREEMENTS It is the policy of the Fund to require the custodian bank to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian bank's vault, all securities held as collateral under repurchase agreement transactions. Additionally, procedures have been established by the Fund to monitor, on a daily basis, the market value of each repurchase agreement's collateral to ensure that the value of collateral at least equals the repurchase price to be paid under the repurchase agreement. 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. INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS Interest income and expenses are accrued daily. Bond premium and discount, if applicable, are amortized as required by the Internal Revenue Code, as amended (the "Code"). 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. FEDERAL TAXES It is the Fund's policy to comply with the provisions of the Code applicable to regulated investment companies and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal tax is necessary. WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS The Fund may engage in when-issued or delayed delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when- issued or delayed delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract. RESTRICTED SECURITIES Restricted securities are securities that may only be resold upon registration under federal securities laws or in transactions exempt from such registration. In some cases, the issuer of restricted securities has agreed to register such securities for resale, at the issuer's expense, either upon demand by the Fund or in connection with another registered offering of the securities. Many restricted securities may be resold in the secondary market in transactions exempt from registration. 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. The Fund's restricted securities are valued at the price provided by dealers in the secondary market or, if no market prices are available, at the fair market value as determined by the Fund's pricing committee. Additional information on each restricted security held at January 31, 2000 is as follows:
SECURITY ACQUISITION DATE ACQUISITION COST Goldman Sachs Group, Inc. 1/24/2000 $2,000,000 Jackson National Life Insurance Co. 12/31/1999 3,000,000 Allstate Life Insurance Co. 5/24/1999 4,000,000
USE OF ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated. OTHER Investment transactions are accounted for on a trade date basis. 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 January 31, 2000, capital paid-in aggregated $390,060,690. Transactions in shares were as follows:
SIX MONTHS ENDED YEAR ENDED JANUARY 31, JULY 31, 2000 1999 Shares sold 1,069,301,832 2,231,199,677 Shares issued to shareholders in payment of distributions declared 1,608,394 3,706,698 Shares redeemed (1,061,249,944) (2,266,609,807) NET CHANGE RESULTING FROM SHARE TRANSACTIONS 9,660,282 (31,703,432)
INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES INVESTMENT ADVISER FEE 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 will waive, to the extent of its adviser fee, the amount, if any, by which the Fund's aggregate annual operating expenses exceed 0.45% of average daily net assets of the Fund. ADMINISTRATIVE FEE Federated Services Company ("FServ"), under the Administrative Services Agreement, provides the Fund with administrative personnel and services. The fee paid to FServ is based on 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. SHAREHOLDER SERVICES FEE Under the terms of a Shareholder Services Agreement with Federated Shareholder Services Company ("FSSC"), the Fund will pay FSSC up to 0.25% of average daily net assets of the Fund for the period. The fee paid to FSSC is used to finance certain services for shareholders and to maintain shareholder accounts. FSSC may voluntarily choose to waive any portion of its fee. FSSC can modify or terminate this voluntary waiver at any time at its sole discretion. TRANSFER AND DIVIDEND DISBURSING AGENT FEES AND EXPENSES FServ, through its subsidiary FSSC, serves as transfer and dividend disbursing agent for the Fund. The fee paid to FSSC is based on the size, type and number of accounts and transactions made by shareholders. PORTFOLIO ACCOUNTING FEES FServ maintains the Fund's accounting records for which it receives a fee. The fee is based on the level of the Fund's average daily net assets for the period, plus out-of-pocket expenses. GENERAL Certain of the Officers and Trustees of the Fund are Officers and Directors or Trustees of the above companies. Trustees JOHN F. DONAHUE THOMAS G. BIGLEY JOHN T. CONROY, JR. NICHOLAS P. CONSTANTAKIS JOHN F. CUNNINGHAM J. CHRISTOPHER DONAHUE LAWRENCE D. ELLIS, M.D. PETER E. MADDEN CHARLES F. MANSFIELD, JR. JOHN E. MURRAY, JR., J.D., S.J.D. MARJORIE P. SMUTS JOHN S. WALSH Officers JOHN F. DONAHUE Chairman J. CHRISTOPHER DONAHUE President EDWARD C. GONZALES Executive Vice President JOHN W. MCGONIGLE Executive Vice President and Secretary RICHARD B. FISHER Vice President RICHARD J. THOMAS Treasurer LESLIE K. ROSS Assistant Secretary Mutual funds are not bank deposits or obligations, are not guaranteed by any bank, and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other government agency. Investment in mutual funds involves investment risk, including the possible loss of principal. This report is authorized for distribution to prospective investors only when preceded or accompanied by the fund's prospectus which contains facts concerning its objective and policies, management fees, expenses, and other information. [Graphic] Federated World-Class Investment Manager SEMI-ANNUAL REPORT Money Market Trust SEMI-ANNUAL REPORT TO SHAREHOLDERS JANUARY 31, 2000 [Graphic] Federated Money Market Trust Federated Investors Funds 5800 Corporate Drive Pittsburgh, PA 15237-7000 1-800-341-7400 WWW.FEDERATEDINVESTORS.COM Federated Securities Corp., Distributor Cusip 60934N229 8030103 (3/00) [Graphic] SEMI-ANNUAL REPORT President's Message Dear Shareholder: I am pleased to present the Semi-Annual Report to Shareholders for Prime Obligations Fund. This report covers the first half of the fund's fiscal year, which is the six-month period ended January 31, 2000. It begins with an investment review of the short-term market from the fund's portfolio manager. Following the investment review are the fund's portfolio of investments and financial statements. In Prime Obligations Fund, your ready cash is at work pursuing daily income along with the additional advantages of daily liquidity and stability of principal. 1 At the end of the reporting period, the fund's $10.3 billion in net assets were invested across a wide range of high-quality, short-term money market securities, including commercial paper (39.7%), variable rate instruments (28.8%), short-term notes (10.4%), certificates of deposit (7.6%), time deposits (6.2%), repurchase agreements (3.8%), and loan participation notes (3.5%). Over the six-month reporting period, dividends paid to shareholders of Institutional Shares and Institutional Service Shares each totaled $0.03 per share. Thank you for your confidence in the daily earning power of Prime Obligations Fund. Your questions and comments are always welcome. Sincerely, [Graphic] J. Christopher Donahue President March 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 the 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 these funds. Investment Review Prime Obligations Fund 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 the highest short-term rating category by one or more of the nationally recognized statistical rating organizations or be of comparable quality to securities having such ratings. Typical security types include, but are not limited to: commercial paper, certificates of deposit, loan participation notes, short-term notes, time deposits, variable rate instruments and repurchase agreements. The past six months was another banner period for economic growth in the U.S. Gross domestic product growth averaged 5.50% in 1999, with the economy gaining steam in the second half of the year. The outlook for 2000 is one of continuing strength and above trend performance based on a phenomenal consumer sentiment. The consumer has kept this year's performance on steady ground, but the industrial sector also kept pace through the fourth quarter. Although industry did not outperform in the fourth quarter, it held steady, letting the consumer engine pull the overall economy ahead. With an overall unemployment rate of just 4.10%, it is difficult to see what could derail the consumer. Inflation concerns retreated from their spring heights to rather mundane levels. For the entire reporting period, the consumer price index increased just 2.90%, while the producer price index rose 3.50%, both on an annualized basis. Wages also increased throughout the year, growing at an overall rate of 4.00% annualized during the second half of 1999. However, concern remains that the pool of labor available may cause wage pressures to escalate in the near term. The Federal Reserve Board (the "Fed") continued to act preemptively to quell these inflationary threats and raised the target rate for federal funds from 5.00% to 5.25% on August 24, 1999, and then from 5.25% to 5.50% on November 16, 1999. The market had already anticipated such actions, resulting in a much steeper money market yield curve throughout most of the reporting period. Thirty-day commercial paper started the reporting period at 5.11% on July 1, 1999, and basically traded steadily up to the 5.50% level through the end of November. Seasonal and Year 2000 effects then took hold and caused the 30-day commercial paper rate to spike as high as 6.46% in December before retreating to the 5.78% level at the end of the reporting period. The target average maturity range for the fund was decreased from 45- 55 days to 40-50 days on January 10, 2000, reflecting the Fed's concern about overzealousness in the stock markets and potential inflationary threats. In structuring the fund, there was continued emphasis placed on positioning 30%-35% of the fund's assets in variable rate demand notes and accomplishing a modest barbell structure. During the six months ended January 31, 2000, the net assets of Prime Obligations Fund increased from $9.4 billion to $10.3 billion, while the 7- day net yield increased from 5.01% to 5.68% 1 for Institutional Shares, and from 4.76% to 5.43%1 for Institutional Service Shares. The effective average maturity of the fund on January 31, 2000 was 41 days. 1 Past performance is no guarantee of future results. Yield will vary. Yields quoted for money market funds most closely reflect the fund's current earnings. Portfolio of Investments JANUARY 31, 2000 (UNAUDITED)
PRINCIPAL AMOUNT VALUE CERTIFICATES OF DEPOSIT- 7.6% BANKING-7.6% $ 50,000,000 Bank One, Illinois, N.A., 5.960%, 11/13/2000 $ 49,971,934 15,000,000 Bank of Montreal, 5.200%, 5/12/2000 14,998,002 70,000,000 Bayerische Landesbank Girozentrale, 5.120% 3/21/2000 69,993,610 110,000,000 Canadian Imperial Bank of Commerce, 5.010% - 5.270%, 2/7/2000 - 3/3/2000 109,997,526 262,500,000 Commerzbank AG, Frankfurt, 5.160% - 5.240%, 3/9/2000 - 5/15/2000 262,487,989 50,000,000 Svenska Handelsbanken, Stockholm, 5.150%, 3/20/2000 49,998,100 41,000,000 Toronto - Dominion Bank, 5.900%, 4/10/2000 40,997,677 189,000,000 UBS AG, 5.250% - 6.130%, 3/10/2000 - 11/29/2000 188,916,270 TOTAL CERTIFICATES OF DEPOSIT 787,361,108 COMMERCIAL PAPER-39.7% 1 BANKING-17.6% 190,000,000 Abbey National N.A. Corp., (Abbey National Bank PLC, London, GTD), 5.820% - 5.830%, 4/13/2000 - 4/25/2000 187,688,600 75,000,000 Asset Securitization Cooperative Corp., 5.750% - 5.850%, 2/22/2000 - 2/24/2000 74,731,007 80,000,000 Australia & New Zealand ANZ (Delaware), Inc., (Australia & New Zealand Banking Group, Melbourne, GTD), 5.840%, 4/12/2000 79,078,578 204,000,000 Cregem North America, Inc., (Credit Communal de Belgique, Brussels, GTD), 5.740% - 5.920%, 2/8/2000 - 3/7/2000 203,466,858 129,300,000 Den Danske Corp., Inc., (Den Danske Bank AS, GTD), 5.790% - 5.890%, 3/1/2000 - 5/2/2000 128,095,732 18,784,000 Fountain Square Commercial Funding Corp., (Fifth Third Bank, Cincinnati Support Agreement), 5.700% - 5.800%, 2/9/2000 - 5/10/2000 18,696,502 533,251,000 Market Street Funding Corp., (PNC Bank, N.A. LOC), 5.680% - 6.070%, 2/7/2000 - 3/6/2000 531,142,527 55,982,000 Park Avenue Receivables Corp., 5.720% - 5.900%, 2/10/2000 - 2/25/2000 55,848,025 4,648,000 Riverside County, CA, (Westdeutsche Landesbank Girozentrale LOC), 5.650%, 2/3/2000 4,646,541 150,000,000 Svenska Handelsbanken, Inc., (Svenska Handelsbanken, Stockholm, GTD), 5.840%, 4/17/2000 148,150,667 175,799,000 Three Rivers Funding Corp., 5.600% - 5.720%, 2/10/2000 - 2/24/2000 175,430,702 PRINCIPAL AMOUNT VALUE COMMERCIAL PAPER-continued 1 BANKING-CONTINUED $ 172,000,000 Toronto Dominion Holdings (USA), Inc., (Toronto Dominion Bank GTD), 5.850%, 4/7/2000 $ 170,155,300 30,000,000 Westpac Capital Corp., (Westpac Banking Corp. Ltd., Sydney GTD), 5.800%, 5/2/2000 29,560,167 TOTAL 1,806,691,206 BROKERAGE-2.4% 100,000,000 Credit Suisse First Boston, Inc., 5.850%, 4/6/2000 - 4/7/2000 98,936,438 50,000,000 Goldman Sachs Group, Inc., 6.000%, 4/28/2000 49,293,125 100,000,000 Morgan Stanley, Dean Witter & Co., 5.850%, 4/17/2000 98,765,000 TOTAL 246,994,563 ELECTRIC POWER-0.3% 26,150,000 Southern Electric Generating Co. (SEGCO), 5.960%, 4/11/2000 25,846,951 FINANCE - AUTOMOTIVE-0.2% 20,000,000 General Motors Acceptance Corp., 5.250%, 3/6/2000 19,900,833 FINANCE - COMMERCIAL-13.3% 200,000,000 CIT Group, Inc., 5.810% - 5.950%, 2/1/2000 - 4/27/2000 199,228,068 59,000,000 Corporate Asset Funding Co., Inc. (CAFCO), 5.860%, 2/28/2000 58,740,695 25,000,000 Edison Asset Securitization LLC, 5.900%, 5/15/2000 24,573,889 85,000,000 Eureka Securitization Inc., 5.830%, 4/7/2000 84,091,492 200,205,000 Falcon Asset Securitization Corp., 5.660% - 5.720%, 2/10/2000 - 2/28/2000 199,719,574 58,000,000 GE Capital International Funding, Inc., (General Electric Capital Corp. GTD), 5.960%, 3/9/2000 57,644,718 223,000,000 General Electric Capital Corp., 5.800% - 5.920%, 2/25/2000 - 3/20/2000 221,685,849 87,194,000 Greenwich Funding Corp., 4.930% - 5.850%, 2/1/2000 - 4/11/2000 86,574,500 70,000,000 Preferred Receivables Funding Co. (PREFCO), 5.750%, 3/7/2000 69,608,681 194,435,000 Receivables Capital Corp., 5.670% - 5.850%, 2/7/2000 - 3/20/2000 193,888,351 176,800,000 Sigma Finance, Inc., 5.500% - 5.870%, 2/1/2000 - 4/25/2000 175,402,504 TOTAL 1,371,158,321 FINANCE - RETAIL-0.1% 14,000,000 Island Finance, Puerto Rico, (Norwest Corp. Support Agreement) 5.670%, 2/11/2000 13,977,950 INSURANCE-5.8% 117,124,000 Aspen Funding Corp., (MBIA INS), 5.670% - 5.730%, 2/4/2000 - 2/17/2000 116,925,240 PRINCIPAL AMOUNT VALUE COMMERCIAL PAPER-continued 1 INSURANCE-CONTINUED $ 68,000,000 CXC, Inc., 5.870% - 5.910%, 2/2/2000 - 4/28/2000 $ 67,218,466 112,000,000 Marsh USA Inc., 5.580% - 5.850%, 2/16/2000 - 7/28/2000 110,200,156 307,900,000 Sheffield Receivables Corp., 5.680% - 5.950%, 2/4/2000 - 2/22/2000 307,372,902 TOTAL 601,716,764 TOTAL COMMERCIAL PAPER 4,086,286,588 SHORT-TERM NOTES-10.4% BANKING-0.9% 89,000,000 Bank One, Illinois, N.A., 6.025% - 6.070%, 10/10/2000 - 11/13/2000 88,961,829 4,000,000 Westpac Banking Corp. Ltd., Sydney, 6.220%, 11/30/2000 3,997,434 TOTAL 92,959,263 BROKERAGE-3.9% 405,000,000 Goldman Sachs Group, Inc., 5.831% - 6.010%, 3/14/2000 - 3/29/2000 405,000,000 FINANCE - AUTOMOTIVE-0.3% 5,658,514 Honda Auto Lease Trust 1999-A, Class A1, 5.445%, 8/15/2000 5,658,514 22,276,001 Toyota Auto Receivables 1999-A Owner Trust, Class 1, 5.365%, 8/11/2000 22,276,001 TOTAL 27,934,515 FINANCE - COMMERCIAL-5.0% 340,400,000 Beta Finance, Inc., 5.100% -6.020%, 2/16/2000 - 9/1/2000 340,399,941 174,500,000 Sigma Finance, Inc., 6.000% - 6.360%, 8/11/2000 - 11/13/2000 174,500,000 TOTAL 514,899,941 FINANCE - EQUIPMENT-0.3% 13,502,425 Caterpillar Financial Asset Trust 1999-A, Class 1, 5.365%, 7/25/2000 13,502,425 16,075,498 Copelco Capital Funding LLC 1999-B, Class A-1, 5.937%, 10/18/2000 16,075,498 714,600 Navistar Financial 1999-A Owner Trust, Class A-1, 5.003%, 6/15/2000 714,549 TOTAL 30,292,472 PRINCIPAL AMOUNT VALUE SHORT-TERM NOTES-continued INSURANCE-0.0% $ 25,000 Americredit Automobile Receivables Trust 2000-A, Class A1, (FSA INS), 6.040%, 2/5/2001 $ 25,000 754,021 First Sierra Equipment Contract Trust 1999-1, Class A1, (MBIA INS), 4.967%, 5/15/2000 754,005 TOTAL 779,005 TOTAL SHORT-TERM NOTES 1,071,865,196 LOAN PARTICIPATION-3.5% ELECTRICAL EQUIPMENT-0.3% 29,300,000 Mt. Vernon Phenol Plant Partnership, (General Electric Co. GTD), 6.120%, 5/17/2000 29,300,000 FINANCE - AUTOMOTIVE-2.4% 251,000,000 General Motors Acceptance Corp., Mortgage of PA, (General Motors Acceptance Corp. GTD), 5.620% - 6.863%, 2/1/2000 - 3/15/2000 251,000,000 FINANCE - EQUIPMENT-0.8% 85,000,000 Pitney Bowes Credit Corp., 5.809%, 2/10/2000 84,877,175 TOTAL LOAN PARTICIPATION 365,177,175 VARIABLE RATE INSTRUMENTS- 28.8% 3 BANKING-13.4% 8,835,000 4 C's LLC, Series 1998, (KeyBank, N.A. LOC), 6.100%, 2/3/2000 8,835,000 2,965,000 550 West 14th Place, Series 1999-A, (Harris Trust & Savings Bank, Chicago LOC), 5.900%, 2/3/2000 2,965,000 5,390,000 Abbott Foods, Series 1996, (Huntington National Bank, Columbus, OH LOC), 5.980%, 2/3/2000 5,390,000 13,200,000 Active Living of Glenview, LLC, Series 1998, (Firstar Bank, Milwaukee, WI LOC), 6.000%, 2/2/2000 13,200,000 4,760,000 Alabama State IDA, Series 1994, Miltope Project, (Regions Bank, Alabama LOC), 6.160%, 2/3/2000 4,760,000 5,210,000 Alabama State IDA, (Wellborn Cabinet, Inc.), Tax Revenue Bonds, (Fleet Bank N.A. LOC), 5.850%, 2/3/2000 5,210,000 2,135,000 Alabama State IDA, Standard Furniture Project, Series 1995, (AmSouth Bank N.A., Birmingham, AL LOC), 5.850%, 2/3/2000 2,135,000 5,420,000 Alexandria Executive Club LP, (Huntington National Bank, Columbus, OH LOC), 5.980%, 2/3/2000 5,420,000 PRINCIPAL AMOUNT VALUE VARIABLE RATE INSTRUMENTS- continued 3 BANKING-CONTINUED $ 7,500,000 Aliceville, AL IDB, Buchanan Hardwood Flooring Co., Series 1999, (Regions Bank, Alabama LOC), 6.160%, 2/3/2000 $ 7,500,000 2,870,000 Allegheny County, PA IDA, Series 1999-B, (Bank One, Ohio, N.A. LOC), 5.980%, 2/3/2000 2,870,000 10,890,000 American Xtal Technology, Inc., Xtal Project, Series 1998, (U.S. Bank, N.A., Minneapolis, MN LOC), 5.780%, 2/3/2000 10,890,000 8,080,000 Arrow N.A., Inc., (Bank of America, N.A. LOC), 5.980%, 2/3/2000 8,080,000 3,500,000 Asset Holdings V, (Bayerische Hypotheken-und Vereinsbank AG LOC), 5.940%, 2/3/2000 3,500,000 47,000,000 Asset Securitization Cooperative Corp., 5.831% - 5.903%, 2/7/2000 - 2/14/2000 46,999,610 12,000,000 Association of American Medical Colleges, (Chase Manhattan Bank N.A., New York), 6.040%, 2/2/2000 12,000,000 3,000,000 Auth Family LLC, 1998 Issue, (Allfirst LOC), 5.860%, 2/1/2000 3,000,000 3,800,000 Balboa Investment Group V, Series 1997, (AmSouth Bank N.A., Birmingham, AL LOC), 5.850%, 2/3/2000 3,800,000 4,000,000 Bardstown City, KY, (RJ Tower Project), Series 1995, (Comerica Bank LOC), 5.950%, 2/3/2000 4,000,000 8,000,000 Bethesda Country Club, Inc., Series 1997, (Allfirst LOC), 5.860%, 2/1/2000 8,000,000 18,305,000 Beverly Hills Nursing Center, Inc., Medilodge Project Series 1996, (KeyBank, N.A. LOC), 6.030%, 2/3/2000 18,305,000 1,557,790 Bowling Green Manor L.P., (Huntington National Bank, Columbus, OH LOC), 5.980%, 2/3/2000 1,557,790 9,670,000 Brentlinger Real Estate Co., (Huntington National Bank, Columbus, OH LOC), 5.940%, 2/3/2000 9,670,000 2,800,000 Broadway Investments, Inc., Series 1999, (Huntington National Bank, Columbus, OH LOC), 5.980%, 2/3/2000 2,800,000 1,390,000 Burlington, WI Community Development Authority, Hi Liter Graphics, Series 1998 B, (Bank One, Wisconsin, N.A. LOC), 5.990%, 2/3/2000 1,390,000 9,321,000 Capital One Funding Corp., Series 1998-C, (Bank One, Ohio, N.A. LOC), 5.940%, 2/3/2000 9,321,000 21,805,000 Capital One Funding Corp., Series 1999-B, (Bank One, Ohio, N.A. LOC), 5.940%, 2/3/2000 21,805,000 2,400,000 Capital One Funding Corp., Series 1994-A, (Bank One, Ohio, N.A. LOC), 5.940%, 2/3/2000 2,400,000 11,691,000 Capital One Funding Corp., Series 1994-C, (Bank One, Ohio, N.A. LOC), 5.940%, 2/3/2000 11,691,000 PRINCIPAL AMOUNT VALUE VARIABLE RATE INSTRUMENTS- continued 3 BANKING-CONTINUED $ 8,187,000 Capital One Funding Corp., Series 1994-D, (Bank One, Kentucky LOC), 5.940%, 2/3/2000 $ 8,187,000 260,000 Capital One Funding Corp., Series 1995-A, (Bank One, Indiana, N.A. LOC), 5.940%, 2/3/2000 260,000 8,430,000 Capital One Funding Corp., Series 1995-B, (Bank One, Kentucky LOC), 5.940%, 2/3/2000 8,430,000 19,020,000 Capital One Funding Corp., Series 1995-F, (Bank One, Ohio, N.A. LOC), 5.940%, 2/3/2000 19,020,000 8,000,000 Capital One Funding Corp., Series 1996-H, (Bank One, West Virginia, N.A. LOC), 5.940%, 2/3/2000 8,000,000 905,000 Carpenter, Thomas E., Series 1998, (Huntington National Bank, Columbus, OH LOC), 6.030%, 2/3/2000 905,000 9,000,000 Carport, Inc., Series 1997, (AmSouth Bank N.A., Birmingham, AL LOC), 5.850%, 2/3/2000 9,000,000 4,050,000 Cattail Creek Country Club, Series 1999, (Allfirst LOC), 5.860%, 2/1/2000 4,050,000 3,600,000 Cleveland Sportsplex Ltd., (Huntington National Bank, Columbus, OH LOC), 5.980%, 2/3/2000 3,600,000 5,140,000 Clinton County, NY IDA, Bombardier Project, Series 1998-B, (HSBC Bank USA LOC), 6.000%, 2/3/2000 5,140,000 1,007,337 Clyde Manor LP, (Huntington National Bank, Columbus, OH LOC), 5.980%, 2/3/2000 1,007,337 490,000 Colorado Health Facilities Authority, Development Disabilities Center Project, Series 1998-F1, (Bank One, Colorado LOC), 6.040%, 2/3/2000 490,000 1,070,000 Colorado Health Facilities Authority, Development Disabilities Resource Center, Series 1998-C1, (Bank One, Colorado LOC), 5.940%, 2/3/2000 1,070,000 2,915,000 Colorado Health Facilities Authority, Goodwill Industries of Denver Project, Series 1998-G1, (Bank One, Colorado LOC), 5.980%, 2/3/2000 2,915,000 2,805,000 Columbia County, GA Development Authority, Series 1993, (SunTrust Banks, Inc. LOC), 5.850%, 2/2/2000 2,805,000 140,300,000 Comerica Bank, 5.791% - 5.864%, 2/9/2000 - 2/25/2000 140,236,389 8,000,000 Commercial Contractors, Inc., Series 1998, (Allfirst LOC), 5.860%, 2/1/2000 8,000,000 7,000,000 Communications Corp. of America, Series 1998, (Wachovia Bank of NC, N.A. LOC), 5.820%, 2/2/2000 7,000,000 7,300,000 Cruiser Properties LLC, Series 1999, (Huntington National Bank, Columbus, OH LOC), 6.030%, 2/3/2000 7,300,000 4,800,000 Damascus Company Ltd., Series 1998, (Huntington National Bank, Columbus, OH LOC), 6.030%, 2/3/2000 4,800,000 PRINCIPAL AMOUNT VALUE VARIABLE RATE INSTRUMENTS- continued 3 BANKING-CONTINUED $ 11,000,000 David Lipscomb University, Series 1998, (SunTrust Bank, Nashville, TN LOC), 5.850%, 2/2/2000 $ 11,000,000 18,000,000 Decatur, AL IDB, Bailey- PVS Oxides Project, Series 1998, (SunTrust Bank, Central Florida LOC), 6.060%, 2/3/2000 18,000,000 8,210,000 Dewberry IV LP, Series 1997, (Allfirst LOC), 5.860%, 2/1/2000 8,210,000 5,050,000 Die-Matic Corp., (Huntington National Bank, Columbus, OH LOC), 6.030%, 2/3/2000 5,050,000 4,305,000 Double H Plastics, Inc., Series 1998, (First Union National Bank, Charlotte, NC LOC), 5.860%, 2/2/2000 4,305,000 2,915,000 Douglas County, GA Development Authority, Heritage Bag Project, Series 1998-B, (Wachovia Bank of NC, N.A. LOC), 6.160%, 2/3/2000 2,915,000 3,600,000 Eastwinds Investment, Ltd., (Huntington National Bank, Columbus, OH LOC), 5.980%, 2/3/2000 3,600,000 6,000,000 Fannin County IDA, Series 1998, Georgia Crown Distributing Co., (SunTrust Bank, Atlanta, GA LOC), 5.850%, 2/2/2000 6,000,000 4,690,000 Foothill Development Group LLC, Series 1998, (U.S. Bank, N.A., Minneapolis, MN LOC), 5.940%, 2/3/2000 4,690,000 4,142,000 Frank Parsons Paper Co., Inc., Series 1999, (Allfirst LOC), 5.871%, 2/4/2000 4,142,000 1,345,000 Frederick County, MD, Thogar LLC Facility, Series 1998-B, (Allfirst LOC), 5.860%, 2/1/2000 1,345,000 3,700,000 G.M.H. Enterprises, Inc., Series 1995, (National City Bank, Ohio LOC), 5.820%, 2/3/2000 3,700,000 16,400,000 Galasso Materials LLC and Galasso Holdings LLC, Series 1998, (KeyBank, N.A. LOC), 6.100%, 2/3/2000 16,400,000 2,420,000 Gerken Materials, Inc., Series 1995, (Huntington National Bank, Columbus, OH LOC), 5.980%, 2/3/2000 2,420,000 3,210,000 Gerken Materials, Inc., Series 1997, (Huntington National Bank, Columbus, OH LOC), 5.980%, 2/3/2000 3,210,000 11,735,000 Grand Aire Express, Inc., Series 1997, (National City Bank, Ohio LOC), 5.820%, 2/3/2000 11,735,000 1,100,000 Great Lakes Brewing Co., (Huntington National Bank, Columbus, OH LOC), 5.980%, 2/3/2000 1,100,000 2,100,000 Grote Family LP (Huntington National Bank, Columbus, OH LOC), 5.980%, 2/3/2000 2,100,000 7,350,000 Gwinnett County, GA, Newell Recycling of Atlanta, Series 1998, (Bank One, Texas N.A. LOC), 5.940%, 2/3/2000 7,350,000 7,200,000 Hamilton Farm Bureau Cooperative, Inc., Series 1999, (Huntington National Bank, Columbus, OH LOC), 6.030%, 2/3/2000 7,200,000 PRINCIPAL AMOUNT VALUE VARIABLE RATE INSTRUMENTS- continued 3 BANKING-CONTINUED $ 4,920,000 Hazlet Manor Associates, Series 1998, (Allfirst LOC), 5.860%, 2/1/2000 $ 4,920,000 4,390,000 Historical Preservation Authority of Birmingham, Series 1993, (AmSouth Bank N.A., Birmingham, AL LOC), 5.850%, 2/3/2000 4,390,000 10,385,000 Hunt Club Apartments, Inc., (Huntington National Bank, Columbus, OH LOC), 5.980%, 2/3/2000 10,385,000 170,000 Illinois Development Finance Authority, Series 1996B, Nimlok Co., Project, (Bank One, Illinois, N.A. LOC), 6.090%, 2/3/2000 170,000 4,500,000 J.P. Plymouth Properties LLC, Series 1999, (Michigan National Bank, Farmington Hills, MI LOC), 5.920%, 2/2/2000 4,500,000 6,100,000 J.W. Harris, Series 1999 & 2000, (Fifth Third Bank, Cincinnati, OH LOC), 5.830%, 2/3/2000 6,100,000 17,295,000 JFK Family Borrowing LLP, Series 1997, (Allfirst LOC), 5.810%, 2/1/2000 17,295,000 10,780,000 Kendall Health Care Properties, Series 1997, (SunTrust Bank, Miami, FL LOC), 5.900%, 2/2/2000 10,780,000 6,500,000 Kendall Health Care Properties, Series 1998-A, (SunTrust Bank, Miami, FL LOC), 5.900%, 2/2/2000 6,500,000 5,500,000 Kendall Health Care Properties, Series 1998-B, (SunTrust Bank, Miami, FL LOC), 5.900%, 2/2/2000 5,500,000 4,055,000 Kings Creek Country Club, Inc., Series 1997, (First Union National Bank, Charlotte, NC LOC), 5.910%, 2/2/2000 4,055,000 2,400,000 L.H. Kroh, Inc., Series 1998, (First Union National Bank, Charlotte, NC LOC), 5.910%, 2/2/2000 2,400,000 157,000,000 Liquid Asset Backed Securities Trust, Series 1996-3, (Westdeutsche Landesbank Girozentrale Swap Agreement), 5.801%, 2/15/2000 157,000,000 37,341,209 Liquid Asset Backed Securities Trust, Series 1997-1, (Westdeutsche Landesbank Girozentrale Swap Agreement), 5.793%, 2/15/2000 37,341,209 7,960,000 Mack Industries, Series 1998, (Huntington National Bank, Columbus, OH LOC), 5.980%, 2/3/2000 7,960,000 5,600,000 Maples Industries, Inc., (Regions Bank, Alabama LOC), 6.190%, 2/3/2000 5,600,000 22,685,000 Maryland Economic Development Corp., Human Genome Series 1997, (Allfirst LOC), 5.810%, 2/1/2000 22,685,000 4,000,000 McClatchy-Avondale Corp., Series 1999, (Allfirst LOC), 5.860%, 2/1/2000 4,000,000 1,440,000 McClellan Management, Inc., Genoa Health Care Center Project, Series 1999, (Fifth Third Bank of Northwestern OH LOC), 6.040%, 2/3/2000 1,440,000 5,990,000 Medford Convalescent & Nursing Center, Series 1997, (Allfirst LOC), 5.860%, 2/1/2000 5,990,000 2,835,000 Midwest Funding Corp., Series 1991 A, Class A-1, (Bank One, Ohio, N.A. LOC), 5.980%, 2/3/2000 2,835,000 PRINCIPAL AMOUNT VALUE VARIABLE RATE INSTRUMENTS- continued 3 BANKING-CONTINUED $ 3,069,000 Midwest Funding Corp., Series 1991-C, (Bank One, Ohio, N.A. LOC), 5.940%, 2/3/2000 $ 3,069,000 2,584,000 Midwest Funding Corp., Series 1992-B, (Bank One, Ohio, N.A. LOC), 5.940%, 2/3/2000 2,584,000 2,081,000 Midwest Funding Corp., Series 1992-C, (Bank One, Ohio, N.A. LOC), 5.980%, 2/3/2000 2,081,000 4,650,000 Miller, James & Deborah, Series 1997, (Allfirst LOC), 5.860%, 2/1/2000 4,650,000 10,000,000 Mississippi Business Finance Corp., Choctaw Foods, Inc., (Rabobank Nederland, Utrecht LOC), 5.850%, 2/2/2000 10,000,000 17,000,000 Mississippi Business Finance Corp., Series 1994, Georgia Gulf, (Wachovia Bank of NC, N.A. LOC), 5.820%, 2/2/2000 17,000,000 2,000,000 Mississippi Business Finance Corp., Series 1995, Plantation Pointe LP Project, (SunTrust Bank, Atlanta LOC), 6.160%, 2/3/2000 2,000,000 13,235,000 North Oaks Partnership, Series 1998, (Lasalle National Bank, Chicago, IL LOC), 5.890%, 2/3/2000 13,235,000 1,800,000 Nova University, Inc. Lease Revenue Bonds, Series 1993, Miami Dolphins Training Facility, (SunTrust Bank, South Florida LOC), 5.850%, 2/2/2000 1,800,000 5,099,000 Oceana County Freezer Storage, Inc., Series 1998, (Huntington National Bank, Columbus, OH LOC), 6.080%, 2/3/2000 5,099,000 1,200,000 Oceana County Freezer Storage, Inc., Series 1999, (Huntington National Bank, Columbus, OH LOC), 6.080%, 2/3/2000 1,200,000 10,150,000 Ohio Solid Waste Facility, Bailey-PVS Oxides LLC, Series 1998, (KeyBank, N.A. LOC), 6.100%, 2/3/2000 10,150,000 5,500,000 Old South Country Club, Inc., Series 1999, (Allfirst LOC), 5.860%, 2/1/2000 5,500,000 11,500,000 One Renaissance Hamilton, Inc., Series 1999, (Bank One, Ohio N.A. LOC), 5.880%, 2/3/2000 11,500,000 1,815,000 Orangeburg Convalescent Care Center, Inc., Series 1995-A, (PNC Bank, N.A. LOC), 5.810%, 2/1/2000 1,815,000 2,070,000 P & P Investment Co., Inc., Series 1998, (Fifth Third Bank, Cincinnati, OH LOC), 5.830%, 2/3/2000 2,070,000 2,080,000 PV Communications, Inc., Series 1998, (Huntington National Bank, Columbus, OH LOC), 6.030%, 2/3/2000 2,080,000 41,400,000 Park Avenue Receivables Corp., 5.922%, 2/3/2000 41,400,000 1,840,000 Port Authority of Saint Paul, MN, Bix Fruit Co., Series 1998-B, (U.S. Bank, N.A., Minneapolis, MN LOC), 6.070%, 2/3/2000 1,840,000 3,150,000 Port Authority of Saint Paul, MN, National Checking Co. Project, Series 1998-B, (U.S. Bank, N.A., Minneapolis, MN LOC), 5.970%, 2/3/2000 3,150,000 8,067,000 Primex Funding Corp., Series 1997-A, (Bank One, Indiana, N.A. LOC), 5.940%, 2/3/2000 8,067,000 PRINCIPAL AMOUNT VALUE VARIABLE RATE INSTRUMENTS- continued 3 BANKING-CONTINUED $ 2,000,000 R.M.D.H. Properties LLC, (Huntington National Bank, Columbus, OH LOC), 5.980%, 2/3/2000 $ 2,000,000 21,041,330 Rabobank Optional Redemption Trust, Series 1997-101, 6.186%, 4/20/2000 21,041,330 2,710,000 Roby Company Ltd. Partnership, (Huntington National Bank, Columbus, OH LOC), 5.980%, 2/3/2000 2,710,000 6,780,000 Roby Company Ltd. Partnership, (Huntington National Bank, Columbus, OH LOC), 5.980%, 2/3/2000 6,780,000 9,000,000 Rollins College, Series 1998, 5.850%, 2/2/2000 9,000,000 11,350,000 Rooker, J.W., (Wachovia Bank of NC, N.A. LOC), 5.820%, 2/2/2000 11,350,000 2,600,000 San Jose, CA Multifamily Housing Revenue Bonds, Carlton Plaza of San Jose Series 1998 A-T, (Commerzbank AG, Frankfurt LOC), 5.980%, 2/3/2000 2,600,000 3,306,000 Sawmill Creek Lodge Co., Series 1996, (Fifth Third Bank of Northwestern OH LOC), 5.830%, 2/3/2000 3,306,000 4,360,000 Scranton Times, LP, Series 1997, (PNC Bank, N.A. LOC), 5.810%, 2/7/2000 4,360,000 780,000 Solon, OH, Custom Graphics, (Bank One, Ohio N.A. LOC), 5.940%, 2/3/2000 780,000 1,865,000 Sourser Family Ltd. Partnership, Series 1998, (Dauphin Deposit Bank and Trust LOC), 6.050%, 2/2/2000 1,865,000 6,450,000 Special Care Facilities, Daphne AL, Presbyterian Retirement Corp., Series 1998-B, 5.875%, 2/3/2000 6,450,000 2,880,000 Spitzer Group, Series 1996-A, (Bank One, Ohio, N.A. LOC), 5.940%, 2/3/2000 2,880,000 1,855,000 Spitzer Group, Series 1996-B, (Bank One, Ohio, N.A. LOC), 5.940%, 2/3/2000 1,855,000 14,000,000 Spitzer Group, Series 1998-A, (Bank One, Ohio, N.A. LOC), 5.940%, 2/3/2000 14,000,000 9,698,000 Spitzer Group, Series 1998-B, (Bank One, Ohio, N.A. LOC), 5.940%, 2/3/2000 9,698,000 6,150,000 Springfield Ltd., Series A, (UBS AG LOC), 5.940%, 2/3/2000 6,150,000 2,750,000 Stratford Properties LP, Series 1998, (Allfirst LOC), 5.860%, 2/1/2000 2,750,000 4,525,000 TNT Co., Series 1998, (Huntington National Bank, Columbus, OH LOC), 6.030%, 2/3/2000 4,525,000 46,345,000 Terry Griffin Gate Partners, Ltd., Series 1995, (Bank One, Kentucky LOC), 5.940%, 2/2/2000 46,345,000 10,000,000 Three Rivers Funding Corp., 5.880%, 2/1/2000 10,000,000 5,290,000 Van Dyne Crotty Co., Series 1996, (Huntington National Bank, Columbus, OH LOC), 5.980%, 2/3/2000 5,290,000 9,290,000 Van Dyne Crotty Co., Series 1998, (Huntington National Bank, Columbus, OH LOC), 5.890%, 2/3/2000 9,290,000 3,060,000 Van Wyk Enterprises, Inc., Series 1998-A, (Huntington National Bank, Columbus, OH LOC), 5.980%, 2/3/2000 3,060,000 2,115,000 Van Wyk Enterprises, Inc., Series 1998-B, (Huntington National Bank, Columbus, OH LOC), 5.980%, 2/3/2000 2,115,000 PRINCIPAL AMOUNT VALUE VARIABLE RATE INSTRUMENTS- continued 3 BANKING-CONTINUED $ 415,000 Van Wyk Enterprises, Inc., Series 1998-C, (Huntington National Bank, Columbus, OH LOC), 5.980%, 2/3/2000 $ 415,000 3,490,000 Van Wyk Enterprises, Inc., Series 1998-D, (Huntington National Bank, Columbus, OH LOC), 5.980%, 2/3/2000 3,490,000 630,000 Van Wyk Enterprises, Inc., Series 1998-E, (Huntington National Bank, Columbus, OH LOC), 5.980%, 2/3/2000 630,000 795,000 Van Wyk Enterprises, Inc., Series 1998-F, (Huntington National Bank, Columbus, OH LOC), 5.980%, 2/3/2000 795,000 975,000 Van Wyk, Bruce M., Series 1998, (Huntington National Bank, Columbus, OH LOC), 5.980%, 2/3/2000 975,000 2,292,000 Vista Funding Corp., Series 1992-A, (Bank One, Ohio, N.A. LOC), 5.980%, 2/3/2000 2,292,000 2,373,000 Vista Funding Corp., Series 1994-A, (Fifth Third Bank of Northwestern OH LOC), 5.980%, 2/3/2000 2,373,000 1,202,000 Vista Funding Corp., Series 1995-B, (Fifth Third Bank of Northwestern OH LOC), 5.980%, 2/3/2000 1,202,000 9,014,000 Vista Funding Corp., Series 1995-D, (Fifth Third Bank of Northwestern OH LOC), 5.940%, 2/3/2000 9,014,000 3,901,000 Vista Funding Corp., Series 1995-E, (Bank One, Ohio N.A. LOC), 5.940%, 2/3/2000 3,901,000 7,111,000 Vista Funding Corp., Series 1998-B, (Fifth Third Bank of Northwestern OH LOC), 5.880%, 2/3/2000 7,111,000 3,990,000 Vulcan, Inc., (AmSouth Bank N.A., Birmingham, AL LOC), 5.850%, 2/3/2000 3,990,000 956,431 Wauseon Manor II LP, (Huntington National Bank, Columbus, OH LOC), 5.980%, 2/3/2000 956,431 5,990,000 Westminster Village Terre Haute, Inc., (Huntington National Bank, Columbus, OH LOC), 5.980%, 2/3/2000 5,990,000 2,715,000 Wexner Heritage House, (Huntington National Bank, Columbus, OH LOC), 5.980%, 2/3/2000 2,715,000 13,025,000 Whetstone Care Center LLC, Series 1998, (Fifth Third Bank, Cincinnati, OH LOC), 6.060%, 2/3/2000 13,025,000 3,000,000 White Bear Lake, MN, Series 1993, (Norwest Bank Minnesota, N.A. LOC), 6.290%, 2/3/2000 3,000,000 13,800,000 Willacoochee, City of, Development Authority, Longboard, Inc. Project, Series 1997, (Wachovia Bank of NC, N.A. LOC), 5.820%, 2/2/2000 13,800,000 16,235,000 William Hill Manor, Inc., Series 1998, (Allfirst LOC), 5.810%, 2/1/2000 16,235,000 9,015,000 Willow Hill Industries, (Huntington National Bank, Columbus, OH LOC), 5.980%, 2/3/2000 9,015,000 PRINCIPAL AMOUNT VALUE VARIABLE RATE INSTRUMENTS- continued 3 BANKING-CONTINUED $ 9,000,000 Wilsbach Distributors, Inc., Series 1999, (Allfirst LOC), 6.050%, 2/2/2000 $ 9,000,000 2,175,000 YMCA of Central, OH, (Huntington National Bank, Columbus, OH LOC), 5.980%, 2/3/2000 2,175,000 TOTAL 1,378,618,096 BROKERAGE-2.6% 267,000,000 Morgan Stanley, Dean Witter & Co., 5.830% - 5.880%, 2/1/2000 267,000,000 ELECTRICAL EQUIPMENT-0.6% 65,786,454 Northwest Airlines, Inc., (General Electric Co. GTD), 5.819%, 2/7/2000 65,786,454 FINANCE - AUTOMOTIVE-2.3% 138,500,000 General Motors Acceptance Corp., 5.830%, 2/1/2000 138,500,000 100,000,000 General Motors Acceptance Corp., Mortgage of PA, (General Motors Acceptance Corp. LOC), 5.924%, 2/18/2000 98,979,639 TOTAL 237,479,639 FINANCE - COMMERCIAL-1.5% 153,700,000 Sigma Finance, Inc., 5.830% - 6.296%, 2/1/2000 - 3/28/2000 153,700,000 FINANCE - EQUIPMENT-0.2% 25,000,000 Deere (John) Capital Corp., 6.230%, 2/1/2000 25,004,034 GOVERNMENT AGENCY-0.1% 3,750,000 Grand Pointe II Ltd. Partnership, Series 1999, Globe Apartments, (Federal Home Loan Bank of Indianapolis LOC), 5.980%, 2/3/2000 3,750,000 INSURANCE-8.1% 84,000,000 Allstate Life Insurance Co., 6.113% - 6.616%, 2/1/2000 84,000,000 85,500,000 First Allmerica Financial Life Insurance Co., 5.488% - 6.306%, 2/3/2000 - 2/16/2000 85,500,000 40,000,000 GE Life and Annuity Assurance Co., 6.200%, 3/1/2000 40,000,000 158,600,000 Jackson National Life Insurance Co., 5.900% - 6.295%, 2/1/2000 - 4/1/2000 158,600,000 36,208,837 2 Liquid Asset Backed Securities Trust, Series 1997-3, Senior Notes, (AMBAC INS), 6.151%, 3/28/2000 36,208,837 25,688,415 2 Liquid Asset Backed Securities Trust, Sr. Notes, Series 1998-1, (AMBAC INS), 5.819%, 2/25/2000 25,688,415 PRINCIPAL AMOUNT VALUE VARIABLE RATE INSTRUMENTS- continued 3 INSURANCE-CONTINUED $ 67,000,000 Monumental Life Insurance Co., 5.930% - 5.990%, 2/1/2000 $ 67,000,000 75,000,000 Principal Life Insurance Co., 6.260%, 3/1/2000 75,000,000 49,000,000 Protective Life Insurance Co., 6.355%, 2/1/2000 49,000,000 49,000,000 Security Life of Denver Insurance Co., 6.100% - 6.359%, 2/10/2000 - 4/28/2000 49,000,000 100,000,000 Transamerica Life Insurance and Annuity Co., 6.094%, 2/25/2000 - 4/7/2000 100,000,000 20,000,000 Transamerica Occidental Life Insurance Co., 6.329%, 2/29/2000 20,000,000 44,000,000 Travelers Insurance Co., 6.094%, 4/1/2000 44,000,000 TOTAL 833,997,252 TOTAL VARIABLE RATE INSTRUMENTS 2,965,335,475 TIME DEPOSITS-6.2% 150,000,000 Chase Manhattan Bank (USA) N.A., Wilmington, 5.813%, 2/1/2000 150,000,000 100,000,000 Deutsche Bank, AG, 5.813%, 2/1/2000 100,000,000 20,000,000 Dresdner Bank, AG, Frankfurt, 5.813%, 2/1/2000 20,000,000 40,000,000 Mellon Bank N.A., Pittsburgh, 5.813%, 2/1/2000 40,000,000 225,000,000 Societe Generale, Paris, 5.813%, 2/1/2000 225,000,000 100,000,000 Westdeutsche Landesbank Girozentrale, 5.813%, 2/1/2000 100,000,000 TOTAL TIME DEPOSITS 635,000,000 REPURCHASE AGREEMENTS-3.8% 4 90,100,000 Bank of America, 5.800%, dated 1/31/2000, due 2/1/2000 90,100,000 169,800,000 Donaldson, Lufkin and Jenrette Securities Corp., 5.700%, dated 1/31/2000, due 2/1/2000 169,800,000 85,000,000 Toronto Dominion Securities (USA), Inc., 5.690%, dated 1/31/2000, due 2/1/2000 85,000,000 50,000,000 Warburg Dillon Reed LLC, 5.650%, dated 1/31/2000, due 2/1/2000 50,000,000 TOTAL REPURCHASE AGREEMENTS 394,900,000 TOTAL INVESTMENTS (AT AMORTIZED COST) 5 $ 10,305,925,542
1 Each issue shows the rate of discount at the time of purchase for discount issues, or the coupon for interest bearing issues. 2 Denotes a restricted security which is subject to restrictions on resale under federal securities laws. These securities have been deemed liquid based upon criteria approved by the fund's Board of Trustees. At January 31, 2000, these securities amounted to $99,238,461 which represents 1.0% of net assets. 3 Current rate and next reset date shown. 4 The repurchase agreements are fully collateralized by U.S. government and/or agency obligations based on market prices at the date of the portfolio. The investments in the repurchase agreements are through participation in joint accounts with other Federated funds. 5 Also represents cost for federal tax purposes. Note: The categories of investments are shown as a percentage of net assets ($10,305,752,303) at January 31, 2000. The following acronyms are used throughout this portfolio: AMBAC -American Municipal Bond Assurance Corporation FSA -Financial Security Assurance GTD -Guaranteed IDA -Industrial Development Authority IDB -Industrial Development Bond INS -Insured LOC -Letter of Credit MBIA -Municipal Bond Investors Assurance See Notes which are an integral part of the Financial Statements Statement of Assets and Liabilities JANUARY 31, 2000 (UNAUDITED)
ASSETS: Total investments in securities, at amortized cost and value $ 10,305,925,542 Income receivable 68,707,853 Receivable for shares sold 3,660 TOTAL ASSETS 10,374,637,055 LIABILITIES: Payable for investments purchased $ 25,000 Payable for shares redeemed 15,042,908 Income distribution payable 49,261,806 Accrued expenses 4,555,038 TOTAL LIABILITIES 68,884,752 Net assets for 10,305,752,303 shares outstanding $ 10,305,752,303 NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PROCEEDS PER SHARE INSTITUTIONAL SHARES: $6,355,046,516 / 6,355,046,516 shares outstanding $1.00 INSTITUTIONAL SERVICE SHARES: $3,950,705,787 / 3,950,705,787 shares outstanding $1.00
See Notes which are an integral part of the Financial Statements Statement of Operations SIX MONTHS ENDED JANUARY 31, 2000 (UNAUDITED)
INVESTMENT INCOME: Interest $ 281,532,953 EXPENSES: Investment adviser fee $ 10,066,612 Administrative personnel and services fee 3,793,457 Custodian fees 305,240 Transfer and dividend disbursing agent fees and expenses 159,361 Directors'/Trustees' fees 30,200 Auditing fees 5,033 Legal fees 37,024 Portfolio accounting fees 342,265 Shareholder services fee- Institutional Shares 7,450,206 Shareholder services fee- Institutional Service Shares 5,063,786 Share registration costs 20,133 Printing and postage 35,233 Insurance premiums 275,041 Miscellaneous 34,551 TOTAL EXPENSES 27,618,142 WAIVERS: Waiver of investment adviser fee $ (4,816,075) Waiver of shareholder services fee-Institutional Shares (7,450,206) TOTAL WAIVERS (12,266,281) Net expenses 15,351,861 Net investment income $ 266,181,092
See Notes which are an integral part of the Financial Statements Statement of Changes in Net Assets
SIX MONTHS ENDED (unaudited) YEAR ENDED JANUARY 31, JULY 31, 2000 1999 INCREASE (DECREASE) IN NET ASSETS OPERATIONS: Net investment income $ 266,181,092 $ 445,961,130 DISTRIBUTIONS TO SHAREHOLDERS: Distributions from net investment income Institutional Shares (162,261,994) (266,999,113) Institutional Service Shares (103,919,098) (178,962,017) CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS (266,181,092) (445,961,130) SHARE TRANSACTIONS: Proceeds from sale of shares 63,860,628,068 123,404,105,177 Net asset value of shares issued to shareholders in payment of distributions declared 68,421,913 125,920,596 Cost of shares redeemed (63,024,255,132) (121,577,629,746) CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS 904,794,849 1,952,396,027 Change in net assets 904,794,849 1,952,396,027 NET ASSETS: Beginning of period 9,400,957,454 7,448,561,427 End of period $ 10,305,752,303 $ 9,400,957,454
See Notes which are an integral part of the Financial Statements Financial Highlights-Institutional Shares (FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
SIX MONTHS ENDED (unaudited) JANUARY 31, YEAR ENDED JULY 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 RETURN 1 2.73% 5.14% 5.64% 5.45% 5.58% 5.65% RATIOS TO AVERAGE NET ASSETS: Expenses 0.20% 2 0.20% 0.20% 0.20% 0.20% 0.20% Net investment income 5.39% 2 4.99% 5.51% 5.35% 5.43% 5.60% Expense waiver/reimbursement 3 0.35% 2 0.35% 0.35% 0.36% 0.36% 0.38% SUPPLEMENTAL DATA: Net assets, end of period (000 omitted) $6,355,047 $5,185,448 $3,980,339 $3,588,082 $3,032,602 $2,457,797
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 Financial Highlights-Institutional Service Shares (FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
SIX MONTHS ENDED (unaudited) JANUARY 31, YEAR ENDED JULY 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 0.05 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 RETURN 1 2.60% 4.88% 5.37% 5.19% 5.32% 5.38% RATIOS TO AVERAGE NET ASSETS: Expenses 0.45% 2 0.45% 0.45% 0.45% 0.45% 0.45% Net investment income 5.13% 2 4.77% 5.24% 5.11% 5.13% 5.66% Expense waiver/reimbursement 3 0.10% 2 0.10% 0.10% 0.11% 0.11% 0.13% SUPPLEMENTAL DATA: Net assets, end of period (000 omitted) $3,950,706 $4,215,510 $3,468,222 $2,236,997 $1,297,019 $500,954
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 Notes to Financial Statements JANUARY 31, 2000 (UNAUDITED) ORGANIZATION 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 Prime Obligations Fund (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. The Fund offers two classes of shares: Institutional Shares and Institutional Service Shares. SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with generally accepted accounting principles. INVESTMENT VALUATION The Fund uses the amortized cost method to value its portfolio securities in accordance with Rule 2a-7 under the Act. REPURCHASE AGREEMENTS It is the policy of the Fund to require the custodian bank to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian bank's vault, all securities held as collateral under repurchase agreement transactions. Additionally, procedures have been established by the Fund to monitor, on a daily basis, the market value of each repurchase agreement's collateral to ensure that the value of collateral at least equals the repurchase price to be paid under the repurchase agreement. 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. INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS Interest income and expenses are accrued daily. Bond premium and discount, if applicable, are amortized as required by the Internal Revenue Code, as amended (the "Code"). 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. FEDERAL TAXES It is the Fund's policy to comply with the provisions of the Code applicable to regulated investment companies and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal tax is necessary. WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS The Fund may engage in when-issued or delayed delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when- issued or delayed delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of couterparties to perform under the contract. RESTRICTED SECURITIES Restricted securities are securities that may only be resold upon registration under federal securities laws or in transactions exempt from such registration. Many restricted securities may be resold in the secondary market in transactions exempt from registration. In some cases, the restricted securities may be resold without registration upon exercise of a demand feature. Such restricted securities may be determined to be liquid under criteria established by the Trustees. The 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. USE OF ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated. OTHER Investment transactions are accounted for on a trade date basis. SHARES OF BENEFICIAL INTEREST The Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest (without par value) for each class of shares. At January 31, 2000, capital paid-in aggregated $10,305,752,303. Transactions in shares were as follows:
SIX MONTHS ENDED YEAR ENDED JANUARY 31, JULY 31, 2000 1999 INSTITUTIONAL SHARES: Shares sold 47,978,045,202 95,897,980,619 Shares issued to shareholders in payment of distributions declared 45,437,900 77,869,797 Shares redeemed (46,853,884,307) (94,770,741,882) NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS 1,169,598,795 1,205,108,534 SIX MONTHS ENDED YEAR ENDED JANUARY 31, JULY 31, 2000 1999 INSTITUTIONAL SERVICE SHARES: Shares sold 15,882,582,866 27,506,124,558 Shares issued to shareholders in payment of distributions declared 22,984,013 48,050,799 Shares redeemed (16,170,370,825) (26,806,887,864) NET CHANGE RESULTING FROM INSTITUTIONAL SERVICE SHARE TRANSACTIONS (264,803,946) 747,287,493 NET CHANGE RESULTING FROM SHARE TRANSACTIONS 904,794,849 1,952,396,027
INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES INVESTMENT ADVISER FEE Federated Investment Management Company, the Fund's investment adviser (the "Adviser"), receives for its services an annual investment adviser fee equal to 0.20% of the Fund's average daily net assets. The Adviser may voluntarily choose to waive any portion of its fee. The Adviser can modify or terminate this voluntary waiver at any time at its sole discretion. ADMINISTRATIVE FEE Federated Services Company ("FServ"), under the Administrative Services Agreement, provides the Fund with administrative personnel and services. The fee paid to FServ is based on 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. SHAREHOLDER SERVICES FEE Under the terms of a Shareholder Services Agreement with Federated Shareholder Services Company ("FSSC"), the Fund will pay FSSC up to 0.25% of average daily net assets of the Fund for the period. The fee paid to FSSC is used to finance certain services for shareholders and to maintain shareholder accounts. FSSC may voluntarily choose to waive any portion of its fee. FSSC can modify or terminate this voluntary waiver at any time at its sole discretion. TRANSFER AND DIVIDEND DISBURSING AGENT FEES AND EXPENSES FServ, through its subsidiary FSSC, serves as transfer and dividend disbursing agent for the Fund. The fee paid to FSSC is based on the size, type and number of accounts and transactions made by shareholders. PORTFOLIO ACCOUNTING FEES FServ maintains the Fund's accounting records for which it receives a fee. The fee is based on the level of the Fund's average daily net assets for the period, plus out-of-pocket expenses. GENERAL Certain of the Officers and Trustees of the Trust are Officers and Directors or Trustees of the above companies. Trustees JOHN F. DONAHUE THOMAS G. BIGLEY JOHN T. CONROY, JR. NICHOLAS P. CONSTANTAKIS JOHN F. CUNNINGHAM J. CHRISTOPHER DONAHUE LAWRENCE D. ELLIS, M.D. PETER E. MADDEN CHARLES F. MANSFIELD, JR. JOHN E. MURRAY, JR., J.D., S.J.D. MARJORIE P. SMUTS JOHN S. WALSH Officers JOHN F. DONAHUE Chairman J. CHRISTOPHER DONAHUE President EDWARD C. GONZALES Executive Vice President JOHN W. MCGONIGLE Executive Vice President and Secretary RICHARD B. FISHER Vice President RICHARD J. THOMAS Treasurer LESLIE K. ROSS Assistant Secretary Mutual funds are not bank deposits or obligations, are not guaranteed by any bank, and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other government agency. Investment in mutual funds involves investment risk, including the possible loss of principal. This report is authorized for distribution to prospective investors only when preceded or accompanied by the fund's prospectus which contains facts concerning its objective and policies, management fees, expenses, and other information. [Graphic] Federated World-Class Investment Manager SEMI-ANNUAL REPORT Prime Obligations Fund SEMI-ANNUAL REPORT TO SHAREHOLDERS JANUARY 31, 2000 [Graphic] Federated Prime Obligations Fund Federated Investors Funds 5800 Corporate Drive Pittsburgh, PA 15237-7000 1-800-341-7400 WWW.FEDERATEDINVESTORS.COM Federated Securities Corp., Distributor Cusip 60934N203 Cusip 60934N708 1022002 (3/00) [Graphic] SEMI-ANNUAL REPORT President's Message Dear Shareholder: I am pleased to present the Semi-Annual Report to Shareholders for Treasury Obligations Fund, which covers the six-month period from August 1, 1999 through January 31, 2000. It begins with an investment review of the short- term U.S. Treasury market by the fund's portfolio manager. Following the investment review are the fund's portfolio of investments and financial statements. In Treasury Obligations Fund, your ready cash pursues daily income, along with daily liquidity and stability of principal, 1 by investing exclusively in short-term U.S. Treasury obligations and repurchase agreements collateralized by these obligations. At the end of the reporting period, the fund's net assets totaled $10.8 billion. Over the six-month reporting period, dividends paid to shareholders of Institutional Shares, Institutional Service Shares and Institutional Capital Shares totaled $0.03, $0.02 and $0.02 per share, respectively. Thank you for your confidence in the daily earning power of Treasury Obligations Fund. As always, your questions and comments are always welcome. Sincerely, [Graphic] J. Christopher Donahue President March 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 these funds. Investment Review Treasury Obligations Fund, which is rated AAAm 1 by Standard & Poor's ("S&P") and Aaa1 by Moody's Investors Service ("Moody's"), is invested in direct obligations of the U.S. Treasury either in the form of notes and bills or as collateral for repurchase agreements. The Federal Reserve Board (the "Fed") tightened monetary policy on two occasions over the semi-annual reporting period ended January 31, 2000. These two quarter-point moves, combined with an initial tightening of 25 basis points at the end of June 1999, brought the federal funds target rate back to 5.50%. This was the level of the federal funds target rate prior to the fourth quarter of 1998, when the Fed infused liquidity into the fixed income markets during a period of global economic turmoil. Shortly after the end of January 2000, however, the Fed raised the federal funds target rate yet again by 25 basis points, arguably restricting monetary policy for the first time since before the liquidity and credit crisis of over a year ago. Robust economic growth prompted the policy moves by the Fed. Economic growth in 1999 exceeded 4%, well in excess of what is generally considered to be the long-run, non-inflationary growth potential of the economy. Consumer spending continued to be one of the main drivers behind the impressive pace of growth, and although mortgage rates have increased by close to 150 basis points over the reporting period, the interest-sensitive sectors of the economy have remained persistently strong. Inflationary pressures at the producer and consumer level remain remarkably absent in the face of this growth. However, while the notion of a non-inflationary potential, traditionally 2.00% to 2.50%, has increased in recent times due to evidence that productivity enhancements have been controlling inflationary pressures, continued growth well above 3% is likely to keep the Fed on its current tightening course in the near term. Short-term interest rates reflected, and largely anticipated, the monetary policy tightenings over the reporting period. The yield on the 1-year Treasury bill, for example, began the reporting period at close to 5%, traded up to 5.2% by the time of the Fed's decision to tighten in August, and to 5.5% by the second tightening of the reporting period in November. The yield then climbed steadily to close the period at 6.25%, two days prior to the latest decision by the Fed to tighten, which brought the federal funds target rate to its current 5.75% level. 1 An AAAm rating is obtained after S&P evaluates a number of factors, including credit quality, market price exposure and management. S&P monitors the portfolio weekly for developments that could cause changes in the ratings. Money market funds and bond funds rated Aaa by Moody's are judged to be of an investment quality similar to Aaa-rated fixed-income obligations; that is, they are judged to be of the best quality. These ratings, however, are subject to change and do not remove market risk. Much attention-both in the financial markets and the popular press-was given in the fourth quarter to the potential dislocations feared at year end due to the Year 2000 effect. In hindsight, of course, the world experienced very few troubles, and the economic impact appears to be non- existent. However, very short term government securities did seem to reflect a flight to quality concentrated in the last few days and weeks of the trading year. Furthermore, rates on repurchase agreements reflected the steps that the Fed had taken to assure that sufficient liquidity would be available to the banking system at year end in the event of a crisis; they traded around 3.00% in the last few days of the year, well below the typical level of around the then 5.50% federal funds target rate. After the tightening step taken in November, the Fed was largely and accurately expected to stay on hold until the early February Federal Open Market Committee meeting to minimize any dislocations experienced at this time. We managed the fund within a 40 to 50 day average maturity target range throughout most of the reporting period, moving within that range according to relative value opportunities available in the market. We continued to pursue a barbelled structure for the fund, combining a significant position in repurchase agreements, primarily on an overnight basis, with purchases of Treasury securities in the 6 to 13 month area. As has been the case for some time, due to the technical influences in the Treasury bill market that have kept this sector of the curve quite expensive, we concentrated our direct purchases of Treasury securities in Treasury notes that met our maturity guidelines. We also reduced our traditional holdings of overnight repurchase agreements, which were typically at 70% to 80% of the fund, to about 50% of fund net assets at the end of 1999 due to our expectation of very low repurchase agreement rates. With fourth quarter gross domestic product in 1999 now expected to have grown at close to 7.00%, we anticipate that the Fed will gradually restrict monetary policy further until Fed officials see concrete signs of a slowing in economic activity to a more sustainable pace. As a result, we recently lowered our average maturity target range to 35 to 45 days in anticipation of higher interest rates, and are currently positioned at the lower end of that range. Portfolio of Investments JANUARY 31, 2000 (UNAUDITED)
PRINCIPAL AMOUNT VALUE SHORT-TERM U.S. TREASURY OBLIGATIONS-23.8% U.S. TREASURY BILLS-1.2% 1 $ 138,000,000 4.470% - 5.260%, 3/30/2000 - 11/9/2000 $ 134,768,895 U.S. TREASURY NOTES-22.6% 1 2,444,500,000 4.000% - 6.375%, 2/15/2000 - 1/31/2001 2,442,566,989 TOTAL SHORT-TERM U.S. TREASURY OBLIGATIONS 2,577,335,884 REPURCHASE AGREEMENTS - 76.9% 2 125,000,000 Banc One Capital Markets, 5.690%, dated 1/31/2000, due 2/1/2000 125,000,000 175,000,000 Barclays de Zoete Wedd Securities, Inc., 5.650%, dated 1/31/2000, due 2/1/2000 175,000,000 485,000,000 Barclays de Zoete Wedd Securities, Inc., 5.710%, dated 1/31/2000, due 2/1/2000 485,000,000 300,000,000 Bear, Stearns and Co., 5.710%, dated 1/31/2000, due 2/1/2000 300,000,000 200,000,000 CIBC Wood Gundy Securities Corp., 5.700%, dated 1/31/2000, due 2/1/2000 200,000,000 306,000,000 3 Deutsche Bank Government Securites, Inc., 5.640%, dated 1/14/2000, due 2/29/2000 306,000,000 373,000,000 3 Deutsche Bank Government Securites, Inc., 5.650%, dated 1/26/2000, due 2/22/2000 373,000,000 344,410,000 Deutsche Bank Government Securites, Inc., 5.700%, dated 1/31/2000, due 2/1/2000 344,410,000 304,000,000 Donaldson, Lufkin and Jenrette Securities Corp., 5.700%, dated 1/31/2000, due 2/1/2000 304,000,000 170,000,000 First Union Capital Markets, 5.700%, dated 1/31/2000, due 2/1/2000 170,000,000 500,000,000 Morgan Stanley Group, Inc., 5.700%, dated 1/31/2000, due 2/1/2000 500,000,000 450,000,000 Paribas Corp., 5.700%, dated 1/31/2000, due 2/1/2000 450,000,000 805,000,000 Salomon Brothers, Inc., 5.700%, dated 1/31/2000, due 2/1/2000 805,000,000 305,000,000 Scotia McLeod (USA), Inc., 5.690%, dated 1/31/2000, due 2/1/2000 305,000,000 500,000,000 SG Cowen Securities Corp., 5.690%, dated 1/31/2000, due 2/1/2000 500,000,000 532,015,000 Societe Generale Securities Corp., 5.690%, dated 1/31/2000, due 2/1/2000 532,015,000 PRINCIPAL AMOUNT VALUE REPURCHASE AGREEMENTS - continued 2 $ 320,000,000 State Street, 5.690%, dated 1/31/2000, due 2/1/2000 $ 320,000,000 505,000,000 Toronto Dominion Holdings (USA), Inc., 5.690%, dated 1/31/2000, due 2/1/2000 505,000,000 175,000,000 3 Warburg Dillon Reed LLC, 5.340%, dated 8/18/1999, due 2/14/2000 175,000,000 150,000,000 Warburg Dillon Reed LLC, 5.550%, dated 1/31/2000, due 2/1/2000 150,000,000 60,000,000 Warburg Dillon Reed LLC, 5.600%, dated 1/31/2000, due 2/1/2000 60,000,000 343,000,000 3 Warburg Dillon Reed LLC, 5.650%, dated 1/18/2000, due 3/20/2000 343,000,000 390,000,000 Warburg Dillon Reed LLC, 5.700%, dated 1/31/2000, due 2/1/2000 390,000,000 505,000,000 Westdeutsche Landesbank Girozentrale, 5.690%, dated 1/31/2000, due 2/1/2000 505,000,000 TOTAL REPURCHASE AGREEMENTS 8,322,425,000 TOTAL INVESTMENTS (AT AMORTIZED COST) 4 $ 10,899,760,884
1 The issue shows the rate of discount at the time of purchase. 2 The repurchase agreements are fully collateralized by U.S. Treasury government 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. 3 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. 4 Also represents cost for federal tax purposes. Note: The categories of investments are shown as a percentage of net assets ($10,823,241,881) as of January 31, 2000. See Notes which are an integral part of the Financial Statements Statement of Assets and Liabilities JANUARY 31, 2000 (UNAUDITED) ASSETS: Investments in repurchase agreements $ 8,322,425,000 Investments in securities 2,577,335,884 Total investments in securities, at amortized cost and value 10,899,760,884 Cash 1,619,341 Income receivable 39,108,094 TOTAL ASSETS 10,940,488,319 LIABILITIES: Payable for investments purchased 69,744,090 Income distribution payable 46,265,971 Accrued expenses 1,236,377 TOTAL LIABILITIES 117,246,438 Net assets for 10,823,241,881 shares outstanding $ 10,823,241,881 NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PROCEEDS PER SHARE INSTITUTIONAL SHARES: $5,693,475,106 / 5,693,475,106 shares outstanding $1.00 INSTITUTIONAL SERVICE SHARES: $4,788,078,637 / 4,788,078,637 shares outstanding $1.00 INSTITUTIONAL CAPITAL SHARES: $341,688,138 / 341,688,138 shares outstanding $1.00
See Notes which are an integral part of the Financial Statements Statement of Operations SIX MONTHS ENDED JANUARY 31, 2000 (UNAUDITED) INVESTMENT INCOME: Interest $ 290,602,315 EXPENSES: Investment adviser fee $ 11,097,996 Administrative personnel and services fee 4,182,208 Custodian fees 314,627 Transfer and dividend disbursing agent fees and expenses 84,615 Director's/Trustees' fees 33,291 Auditing fees 5,563 Legal fees 19,158 Portfolio accounting fees 377,152 Shareholder services fee- Institutional Shares 7,394,829 Shareholder services fee- Institutional Service Shares 5,950,635 Shareholder services fee- Institutional Capital Shares 527,031 Share registration costs 26,365 Printing and postage 27,675 Insurance premiums 13,468 Miscellaneous 27,473 TOTAL EXPENSES 30,082,086 WAIVERS: Waiver of investment adviser fee $ (4,862,172) Waiver of shareholder services fee-Institutional Shares (7,394,829) Waiver of shareholder services fee-Institutional Capital Shares (316,218) TOTAL WAIVERS (12,573,219) Net expenses 17,508,867 Net investment income $ 273,093,448
See Notes which are an integral part of the Financial Statements Statement of Changes in Net Assets
SIX MONTHS ENDED (unaudited) YEAR ENDED JANUARY 31, JULY 31, 2000 1999 INCREASE (DECREASE) IN NET ASSETS OPERATIONS: Net investment income $ 273,093,448 $ 528,606,628 DISTRIBUTIONS TO SHAREHOLDERS: Distributions from net investment income Institutional Shares (149,040,258) (276,806,316) Institutional Service Shares (113,789,802) (235,867,234) Institutional Capital Shares (10,263,388) (15,933,078) CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS (273,093,448) (528,606,628) SHARE TRANSACTIONS: Proceeds from sale of shares 35,206,321,953 68,176,770,225 Net asset value of shares issued to shareholders in payment of distributions declared 53,398,957 126,585,254 Cost of shares redeemed (35,410,701,747) (67,696,134,650) CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS (150,980,837) 607,220,829 Change in net assets (150,980,837) 607,220,829 NET ASSETS: Beginning of period 10,974,222,718 10,367,001,889 End of period $ 10,823,241,881 $ 10,974,222,718
See Notes which are an integral part of the Financial Statements Financial Highlights-Institutional Shares (FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
SIX MONTHS ENDED (unaudited) JANUARY 31, YEAR ENDED JULY 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 0.05 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 RETURN 1 2.56% 4.91% 5.54% 5.36% 5.53% 5.50% RATIOS TO AVERAGE NET ASSETS: Expenses 0.20% 2 0.20% 0.20% 0.20% 0.20% 0.20% Net investment income 5.04% 2 4.79% 5.40% 5.24% 5.37% 5.42% Expense waiver/reimbursement 3 0.34% 2 0.34% 0.35% 0.35% 0.36% 0.36% SUPPLEMENTAL DATA: Net assets, end of period (000 omitted) $5,693,475 $5,477,028 $5,289,871 $4,814,583 $4,649,870 $3,441,068
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 Financial Highlights-Institutional Service Shares (FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
SIX MONTHS ENDED (unaudited) JANUARY 31, YEAR ENDED JULY 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 0.02 0.05 0.05 0.05 0.05 0.05 LESS DISTRIBUTIONS: Distributions from net investment income (0.02) (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 RETURN 1 2.43% 4.65% 5.28% 5.10% 5.26% 5.23% RATIOS TO AVERAGE NET ASSETS: Expenses 0.45% 2 0.45% 0.45% 0.45% 0.45% 0.45% Net investment income 4.79% 2 4.54% 5.15% 5.03% 5.12% 5.53% Expense waiver/reimbursement 3 0.09% 2 0.09% 0.10% 0.10% 0.11% 0.11% SUPPLEMENTAL DATA: Net assets, end of period (000 omitted) $4,788,079 $5,034,388 $5,045,428 $3,054,110 $1,516,839 $543,855
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 Financial Highlights-Institutional Capital Shares (FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
SIX MONTHS ENDED (unaudited) JANUARY 31, YEAR ENDED JULY 31, 2000 1999 1998 1997 1 NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 INCOME FROM INVESTMENT OPERATIONS: Net investment income 0.02 0.05 0.05 0.02 LESS DISTRIBUTIONS: Distributions from net investment income (0.02) (0.05) (0.05) (0.02) NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 TOTAL RETURN 2 2.51% 4.81% 5.43% 1.58% RATIOS TO AVERAGE NET ASSETS: Expenses 0.30% 3 0.30% 0.30% 0.30% 3 Net investment income 4.87% 3 4.61% 5.30% 5.42% 3 Expense waiver/reimbursement 4 0.24% 3 0.24% 0.25% 0.25% 3 SUPPLEMENTAL DATA: Net asset, end of period (000 omitted) $341,688 $462,807 $31,703 $42,505
1 Reflects operations for the period from April 14, 1997 (date of initial public investment) to July 31, 1997. 2 Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. 3 Computed on an annualized basis. 4 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 Notes to Financial Statements JANUARY 31, 2000 (UNAUDITED) ORGANIZATION 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 Treasury Obligations Fund (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. The Fund offers three classes of shares: Institutional Shares, Institutional Service Shares and Institutional Capital Shares. SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with generally accepted accounting principles. INVESTMENT VALUATIONS The Fund uses the amortized cost method to value its portfolio securities in accordance with Rule 2a-7 under the Act. REPURCHASE AGREEMENTS It is the policy of the Fund to require the custodian bank to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian bank's vault, all securities held as collateral under repurchase agreement transactions. Additionally, procedures have been established by the Fund to monitor, on a daily basis, the market value of each repurchase agreement's collateral to ensure that the value of collateral at least equals the repurchase price to be paid under the repurchase agreement. 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. INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS Interest income and expenses are accrued daily. Bond premium and discount, if applicable, are amortized as required by the Internal Revenue Code, as amended (the "Code"). 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. 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. FEDERAL TAXES It is the Fund's policy to comply with the provisions of the Code applicable to regulated investment companies and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal tax is necessary. WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS The Fund may engage in when-issued or delayed delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when- issued or delayed delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract. USE OF ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated. OTHER Investment transactions are accounted for on a trade date basis. SHARES OF BENEFICIAL INTEREST The Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest (without par value) for each class of shares. At January 31, 2000, capital paid-in aggregated $10,823,241,881. Transactions in shares were as follows:
SIX MONTHS ENDED YEAR ENDED JANUARY 31, JULY 31, 2000 1999 INSTITUTIONAL SHARES: Shares sold 17,007,656,123 33,252,567,453 Shares issued to shareholders in payment of distributions declared 26,063,593 52,447,463 Shares redeemed (16,817,272,358) (33,117,858,112) NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS 216,447,358 187,156,804 SIX MONTHS ENDED YEAR ENDED JANUARY 31, JULY 31, 2000 1999 INSTITUTIONAL SERVICE SHARES: Shares sold 16,854,915,375 32,219,870,036 Shares issued to shareholders in payment of distributions declared 26,210,840 71,770,419 Shares redeemed (17,127,435,186) (32,302,680,974) NET CHANGE RESULTING FROM INSTITUTIONAL SERVICE SHARE TRANSACTIONS (246,308,971) (11,040,519) SIX MONTHS ENDED YEAR ENDED JANUARY 31, JULY 31, 2000 1999 INSTITUTIONAL CAPITAL SHARES: Shares sold 1,343,750,455 2,704,332,736 Shares issued to shareholders in payment of distributions declared 1,124,524 2,367,372 Shares redeemed (1,465,994,203) (2,275,595,564) NET CHANGE RESULTING FROM INSTITUTIONAL CAPITAL SHARE TRANSACTIONS (121,119,224) 431,104,544 NET CHANGE RESULTING FROM SHARE TRANSACTIONS (150,980,837) 607,220,829
INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES INVESTMENT ADVISER FEE Federated Investment Management Company, the Fund's investment adviser (the "Adviser"), receives for its services an annual investment adviser fee equal to 0.20% of the Fund's average daily net assets. The Adviser may voluntarily choose to waive any portion of its fee. The Adviser can modify or terminate this voluntary waiver at any time at its sole discretion. ADMINISTRATIVE FEE Federated Services Company ("FServ"), under the Administrative Services Agreement, provides the Fund with administrative personnel and services. The fee paid to FServ is based on 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. SHAREHOLDER SERVICES FEE Under the terms of a Shareholder Services Agreement with Federated Shareholder Services Company ("FSSC"), the Fund will pay FSSC up to 0.25% of average daily net assets of the Fund for the period. The fee paid to FSSC is used to finance certain services for shareholders and to maintain shareholder accounts. FSSC may voluntarily choose to waive any portion of its fee. FSSC can modify or terminate this voluntary waiver at any time at its sole discretion. TRANSFER AND DIVIDEND DISBURSING AGENT FEES AND EXPENSES FServ, through its subsidiary FSSC, serves as transfer and dividend disbursing agent for the Fund. The fee paid to FSSC is based on the size, type and number of accounts and transactions made by shareholders. PORTFOLIO ACCOUNTING FEES FServ maintains the Fund's accounting records for which it receives a fee. The fee is based on the level of the Fund's average daily net assets for the period, plus out-of-pocket expenses. GENERAL Certain of the Officers and Trustees of the Trust are Officers and Directors or Trustees of the above companies. Trustees JOHN F. DONAHUE THOMAS G. BIGLEY JOHN T. CONROY, JR. NICHOLAS P. CONSTANTAKIS JOHN F. CUNNINGHAM J. CHRISTOPHER DONAHUE LAWRENCE D. ELLIS, M.D. PETER E. MADDEN CHARLES F. MANSFIELD, JR. JOHN E. MURRAY, JR., J.D., S.J.D. MARJORIE P. SMUTS JOHN S. WALSH Officers JOHN F. DONAHUE Chairman J. CHRISTOPHER DONAHUE President EDWARD C. GONZALES Executive Vice President JOHN W. MCGONIGLE Executive Vice President and Secretary RICHARD B. FISHER Vice President RICHARD J. THOMAS Treasurer LESLIE K. ROSS Assistant Secretary Mutual funds are not bank deposits or obligations, are not guaranteed by any bank, and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other government agency. Investment in mutual funds involves investment risk, including the possible loss of principal. This report is authorized for distribution to prospective investors only when preceded or accompanied by the fund's prospectus which contains facts concerning its objective and policies, management fees, expenses and other information. [Graphic] Federated World-Class Investment Manager SEMI-ANNUAL REPORT Treasury Obligations Fund SEMI-ANNUAL REPORT TO SHAREHOLDERS JANUARY 31, 2000 [Graphic] Federated Treasury Obligations Fund Federated Investors Funds 5800 Corporate Drive Pittsburgh, PA 15237-7000 1-800-341-7400 WWW.FEDERATEDINVESTORS.COM Federated Securities Corp., Distributor Cusip 60934N500 Cusip 60934N872 Cusip 60934N823 1022004 (3/00) [Graphic] SEMI-ANNUAL REPORT President's Message Dear Shareholder: I am pleased to present the Semi-Annual Report to Shareholders for Automated Cash Management Trust. This report covers the first half of the fund's fiscal year, which is the six-month period ended January 31, 2000. It begins with an investment review on the short-term market by the fund's portfolio manager. Following the investment review are the fund's portfolio of investments and financial statements. In Automated Cash Management Trust, your ready cash is at work pursuing daily income, along with a high level of liquidity and a stable net asset value of $1.00 per share. 1 At the end of the reporting period, the fund's $3.2 billion in net assets was invested in commercial paper (43.0%), variable rate instruments (20.8%), short-term notes (9.4%), repurchase agreements (9.1%), time deposits (8.1%), certificates of deposit (5.4%), and loan participation securities (4.3%). Over the six-month reporting period, dividends paid to shareholders of Institutional Service Shares and Cash II Shares totaled $0.03 per share and $0.02 per share, respectively. Thank you for participating in the daily earning power of this high-quality money market mutual fund. As always, we welcome your questions, comments or suggestions. Sincerely, [Graphic] J. Christopher Donahue President March 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 these funds. Investment Review Automated Cash Management Trust (the "Fund") 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 the highest short-term rating category by one or more of the nationally recognized statistical rating organizations, or if unrated, 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. The second half of 1999 brought low unemployment and a remarkable rise in productivity in the United States. The Federal Reserve Board (the "Fed") policy makers raised interest rates on June 30, August 24 and November 30, and the federal funds target rate increased from 4.75% to 5.50%. The first two interest rate increases were the Fed's attempt to partially undo the three rate cuts from last year in the wake of the financial market crises overseas. The November rate hike was viewed as an attempt to keep the strong U.S. economy from overheating and preventing inflationary imbalances. We expect the Fed to continue to raise interest rates during the first half of 2000. Thirty-day commercial paper started the reporting period at 5.11% on July 1, 1999, and then traded steadily up to the 5.50% level through the end of November. Seasonal and Y2K effects took hold in December and caused the 30-day commercial paper rate to spike as high as 6.46% before retreating to end the period at a 5.78%. The target average maturity range for Automated Cash Management Trust was decreased from 45-55 days to 40-50 days on January 10, 2000. This new target reflects our outlook for increased Fed interest rate tightening over the next several months. In structuring the Fund, there is continued emphasis placed on positioning 30-35% of the Fund's assets in variable rate demand notes and accomplishing a modest barbell structure. During the six months ended January 31, 2000, the net assets of Automated Cash Management Trust increased from $2.3 to $3.2 billion while the 7-day net yield increased from 4.62% to 5.31% for Institutional Service Shares and from 4.45% to 5.14% for Cash II Shares. 1 The effective average maturity of the Fund on January 31, 2000 was 40 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. Portfolio of Investments JANUARY 31, 2000 (UNAUDITED)
PRINCIPAL AMOUNT VALUE COMMERCIAL PAPER-43.0% 1 BANKING-19.8% $ 50,000,000 Abbey Funding Corp., (Guaranteed by Abbey National Bank PLC, London), 5.82% - 5.83%, 4/13/2000 - 4/25/2000 $ 49,340,200 51,000,000 Cregem North America, Inc., (Guaranteed by Credit Communal de Belgique, Brussels), 5.74% - 5.83%, 2/8/2000 - 4/17/2000 50,807,393 117,000,000 Den Danske Corp., Inc., (Guaranteed by Den Danske Bank A/S), 5.79% - 5.90%, 3/1/2000 - 6/21/2000 115,623,017 40,689,000 Fountain Square Commercial Funding Corp., (Fifth Third Bank, Cincinnati Support Agreement), 5.67% - 5.96%, 2/7/2000 - 7/10/2000 40,244,998 30,000,000 Greenwich Funding Corp., 5.84% - 5.90%, 2/15/2000 - 4/11/2000 29,840,556 110,139,000 Market Street Funding Corp., (PNC Bank, N.A. LOC), 5.70% - 5.80%, 2/22/2000 - 3/6/2000 109,580,171 15,000,000 Park Avenue Receivables Corp., 5.90%, 2/10/2000 14,977,875 20,000,000 Svenska Handelsbanken, Inc., (Guaranteed by Svenska Handelsbanken, Stockholm), 5.84%, 4/12/2000 19,769,644 61,000,000 Three Rivers Funding Corp., 5.66%, 2/10/2000 60,913,685 20,000,000 Toronto Dominion Holdings (USA), Inc., (Guaranteed by Toronto Dominion Bank), 5.85%, 4/7/2000 19,785,500 40,000,000 Westpac Capital Corp., (Guaranteed by Westpac Banking Corp. Ltd., Sydney), 5.80% - 5.85%, 4/25/2000 - 5/2/2000 39,448,944 84,334,000 Wood Street Funding Corp., 5.68% - 6.07%, 2/1/2000 - 2/10/2000 84,256,994 TOTAL 634,588,977 BROKERAGE-2.7% 18,000,000 Goldman Sachs Group, Inc., 5.85%, 4/28/2000 17,745,525 60,000,000 Morgan Stanley, Dean Witter & Co., 5.84% - 5.85%, 4/17/2000 - 4/24/2000 59,214,422 10,000,000 Salomon Smith Barney, Inc., 5.85%, 4/3/2000 9,899,250 TOTAL 86,859,197 CONSUMER PRODUCTS-0.9% 30,000,000 Diageo Capital PLC, (Guaranteed by Diageo PLC), 5.74% - 5.89%, 3/1/2000 - 4/11/2000 29,793,494 FINANCE - AUTOMOTIVE-0.1% 5,000,000 General Motors Acceptance Corp., 5.25%, 3/6/2000 4,975,208 FINANCE - COMMERCIAL-13.5% 47,000,000 Asset Securitization Cooperative Corp., 5.75% - 5.85%, 2/22/2000 - 2/24/2000 46,838,046 28,000,000 CIT Group, Inc., 5.84% - 5.95%, 2/10/2000 - 4/27/2000 27,833,714 PRINCIPAL AMOUNT VALUE COMMERCIAL PAPER-continued 1 FINANCE - COMMERCIAL- CONTINUED $ 40,000,000 Corporate Asset Funding Co., Inc. (CAFCO), 5.75% - 5.86%, 2/28/2000 - 3/22/2000 $ 39,716,467 35,098,000 Edison Asset Securitization LLC, 5.89% - 5.90%, 4/25/2000 - 5/15/2000 34,533,109 10,000,000 Eureka Securitization Inc., 5.83%, 4/7/2000 9,893,117 22,815,000 Falcon Asset Securitization Corp., 5.72%, 2/22/2000 22,738,874 10,000,000 GE Capital International Funding, Inc., (Guaranteed by General Electric Capital Corp.), 5.96%, 3/9/2000 9,938,744 50,000,000 General Electric Capital Corp., 5.80% - 5.92%, 2/25/2000 - 3/20/2000 49,666,111 35,000,000 PREFCO-Preferred Receivables Funding Co., 5.67%, 2/22/2000 34,884,238 20,513,000 Receivables Capital Corp., 5.85% - 5.90%, 2/8/2000 - 4/20/2000 20,430,618 99,270,000 Sheffield Receivables Corp., 5.72% - 5.95%, 2/4/2000 - 2/22/2000 99,128,353 37,000,000 Sigma Finance, Inc., 5.55% - 5.87%, 2/4/2000 - 4/14/2000 36,688,631 TOTAL 432,290,022 FINANCE - RETAIL-2.6% 42,000,000 Associates Corp. of North America, 6.00%, 2/1/2000 42,000,000 42,770,000 Island Finance, Puerto Rico, 5.67% - 5.73%, 2/11/2000 - 2/14/2000 42,702,933 TOTAL 84,702,933 INSURANCE-3.4% 35,000,000 Aspen Funding Corp., (Insured by MBIA), 5.70% - 6.03%, 2/2/2000 - 2/10/2000 34,962,888 59,000,000 CXC, Inc., 5.85% - 5.95%, 2/2/2000 - 4/27/2000 58,506,719 15,000,000 Marsh USA Inc., 5.76% - 5.78%, 2/18/2000 - 7/28/2000 14,701,036 TOTAL 108,170,643 TOTAL COMMERCIAL PAPER 1,381,380,474 SHORT TERM NOTES-9.4% BANKING-1.6% 45,300,000 Bank One, Illinois, N.A., 6.03%-6.20%, 1/13/2000 - 10/10/2000 45,282,819 5,000,000 Westpac Banking Corp. Ltd., Sydney, 6.22%, 11/30/2000 4,996,792 TOTAL 50,279,611 BROKERAGE-3.9% 125,000,000 Goldman Sachs Group, Inc., 5.83% - 6.01%, 3/29/2000 - 4/26/2000 125,000,000 FINANCE - AUTOMOTIVE-0.2% 2,652,428 Honda Auto Lease Trust 1999-A, Class A1, 5.45%, 8/15/2000 2,652,428 5,241,412 Toyota Auto Receivables 1999-A Owner Trust, Class 1, 5.37%, 8/11/2000 5,241,412 TOTAL 7,893,840 PRINCIPAL AMOUNT VALUE SHORT-TERM NOTES-continued FINANCE - COMMERCIAL-3.3% $ 84,200,000 Beta Finance, Inc., 5.03%- 6.02%, 2/4/2000 - 9/1/2000 $ 84,199,866 23,000,000 Sigma Finance, Inc., 5.83%, 7/13/2000 23,000,000 TOTAL 107,199,866 FINANCE - EQUIPMENT-0.4% 2,935,310 Caterpillar Financial Asset Trust 1999-A, Class 1, 5.37%, 7/25/2000 2,935,310 8,495,182 Copelco Capital Funding Trust 1999-B, Class A-1, 5.94%, 10/18/2000 8,495,182 176,431 Navistar Financial 1999-A Owner Trust, Class A-1, 5.00%, 6/15/2000 176,431 TOTAL 11,606,923 INSURANCE-0.0% 7,000 Americredit Automobile Receivables Trust 2000-A, Class A1, 6.04%, 2/5/2001 7,000 TOTAL SHORT-TERM NOTES 301,987,240 CERTIFICATE OF DEPOSIT- 5.4% BANKING-5.4% 7,000,000 Bank of Montreal, 5.20%, 5/12/2000 6,999,068 10,000,000 Bank of Scotland, Edinburgh, 5.95%, 4/12/2000 9,999,981 15,000,000 Bayerische Landesbank Girozentrale, 5.10%, 3/21/2000 14,999,324 30,000,000 Canadian Imperial Bank of Commerce, Toronto, 5.01% - 5.27%, 2/7/2000 - 3/3/2000 29,999,301 7,000,000 Canadian Imperial Bank of Commerce, 5.12%, 2/23/2000 6,999,837 10,000,000 Commerzbank AG, Frankfurt, 5.16%, 4/7/2000 9,999,303 20,000,000 Halifax PLC, 5.90%, 3/31/2000 20,000,000 20,000,000 Rabobank Nederland, Utrecht, 5.14%, 3/20/2000 19,998,987 15,000,000 Royal Bank of Canada, Montreal, 5.24%, 3/9/2000 14,999,415 5,000,000 Svenska Handelsbanken, Stockholm, 5.15%, 3/20/2000 4,999,810 33,000,000 UBS AG, 6.02% - 6.19%, 11/13/2000 - 12/11/2000 32,982,893 TOTAL CERTIFICATE OF DEPOSIT 171,977,919 LOAN PARTICIPATION-4.3% ELECTRICAL EQUIPMENT-0.4% 13,000,000 Mt. Vernon Phenol Plant Partnership, (Guaranteed by General Electric Co.), 6.12%, 5/17/2000 13,000,000 FINANCE - AUTOMOTIVE-2.3% 74,000,000 General Motors Acceptance Corp., Mortgage of PA, (Guaranteed by General Motors Acceptance Corp.), 5.62% - 6.21%, 2/1/2000 - 2/22/2000 74,000,000 FINANCE - EQUIPMENT-1.6% 50,000,000 Pitney Bowes Credit Corp., 5.78%, 2/10/2000 49,927,750 TOTAL LOAN PARTICIPATION 136,927,750 PRINCIPAL AMOUNT VALUE VARIABLE RATE INSTRUMENTS- 20.8% 2 BANKING-7.2% $ 8,000,000 Bethesda Healthcare, Inc., Series 1999, (Firstar Bank, N.A., Cincinnati LOC), 5.90%, 2/10/2000 $ 8,000,000 6,000,000 Beverly California Corp., (PNC Bank, N.A. LOC), 5.81%, 2/7/2000 6,000,000 31,000,000 Comerica Bank, 5.79%, 2/9/2000 30,985,903 4,000,000 David Lipscomb University, Series 1999, (SunTrust Bank, Nashville LOC), 5.85%, 2/2/2000 4,000,000 3,200,000 Development Authority of Richmond Cty., GA, (PNC Bank, N.A. LOC), 5.81%, 2/7/2000 3,200,000 9,460,000 E & J Investments, LLC, Bradner Village Health Care, Series 1999, (Lasalle National Bank, Chicago LOC), 5.98%, 2/3/2000 9,460,000 9,775,000 Hannah Boulevard LP, (Comerica Bank LOC), 6.10%, 2/3/2000 9,775,000 8,300,000 Infirmary Health Systems, Inc., (Regions Bank, Alabama LOC), 5.90%, 2/3/2000 8,300,000 7,200,000 K-O-I Warehouse, Inc.; Hamlet Auto Parts, Inc.; Kentucky Motor Services, Inc.; Mad River Auto Parts, Inc.; Ezzel Parts Exchange, Inc., (Series 1998), (Firstar Bank, N.A., Cincinnati LOC), 5.90%, 2/3/2000 7,200,000 7,886,290 Katie Realty, LLC, Series 2000, (Allfirst LOC), 5.87%, 2/4/2000 7,886,290 7,000,000 Kent Capital LLC, Series 1999, (Huntington National Bank, Columbus, OH LOC), 5.98%, 2/3/2000 7,000,000 4,000,000 L. B. Industries, Series 2000, (Firstar Bank, N.A., Cincinnati LOC), 5.90%, 2/3/2000 4,000,000 60,000,000 Liquid Asset Backed Securities Trust, Series 1996-3, (Westdeutsche Landesbank Girozentrale Swap Agreement), 5.80%, 2/15/2000 60,000,000 16,095,349 3 Liquid Asset Backed Securities Trust, Series 1997-1, (Westdeutsche Landesbank Girozentrale Swap Agreement), 5.79%, 2/18/2000 16,095,349 1,900,000 Manatee County, FL, CFI Manufacturing, Inc. Project, Series B, (Huntington National Bank, Columbus, OH LOC), 5.98%, 2/3/2000 1,900,000 18,000,000 Mississippi Business Finance Corp., Howard Industries, Inc., Series 1999, (Bank One, Louisiana LOC), 6.06%, 2/3/2000 18,000,000 8,884,562 3 Rabobank Optional Redemption Trust, Series 1997-101, 6.19%, 4/20/2000 8,884,562 6,000,000 Rollins College, Series 1998, (SunTrust Bank, LIQ) 5.85%, 2/2/2000 6,000,000 6,300,000 South Pittsburg, TN IDB, Lodge Manufacturing Co. Project, Series 1999, (SunTrust Bank, Nashville LOC), 5.85%, 2/2/2000 6,300,000 2,593,000 Vista Funding Corp., Series 1996-A, (Bank One, Ohio, N.A. LOC), 5.94%, 2/3/2000 2,593,000 5,250,000 Wendys of Las Vegas and San Antonio, (Huntington National Bank, Columbus, OH LOC), 5.98%, 2/3/2000 5,250,000 TOTAL 230,830,104 BROKERAGE-2.1% 68,400,000 Morgan Stanley, Dean Witter & Co., 5.83% - 5.88%, 2/4/2000 - 3/7/2000 68,400,000 ELECTRICAL EQUIPMENT-0.7% 20,181,046 Northwest Airlines, Inc., (Guaranteed by General Electric Co.), 5.82%, 2/7/2000 20,181,046 PRINCIPAL AMOUNT VALUE VARIABLE RATE INSTRUMENTS- continued 2 FINANCE - AUTOMOTIVE-1.5% $ 34,200,000 General Motors Acceptance Corp., 5.83%, 3/7/2000 $ 34,200,000 15,000,000 General Motors Acceptance Corp., Mortgage of PA, (Guaranteed by General Motors Acceptance Corp. LOC), 5.92%, 4/3/2000 14,846,946 TOTAL 49,046,946 FINANCE - COMMERCIAL-2.6% 84,000,000 Sigma Finance, Inc., 6.00%-6.78%, 2/4/2000 - 4/26/2000 84,000,000 FINANCE - EQUIPMENT-0.5% 15,000,000 Deere (John) Capital Corp., 6.23%, 2/1/2000 15,002,420 INSURANCE-6.2% 10,000,000 Albuquerque, NM, Series 2000 A, (Insured by MBIA), 5.73%, 2/2/2000 10,000,000 12,000,000 GE Life and Annuity Assurance Co., 6.20%, 3/1/2000 12,000,000 30,000,000 Jackson National Life Insurance Co., 6.30%, 2/1/2000 30,000,000 21,121,821 3 Liquid Asset Backed Securities Trust, Series 1997-3 Senior Notes, (Guaranteed by AMBAC), 6.15%, 3/26/2000 21,121,821 43,000,000 Monumental Life Insurance Co., 5.99%, 2/1/2000 43,000,000 30,000,000 Security Life of Denver Insurance Co., 6.10% - 6.36%, 2/10/2000 - 4/28/2000 30,000,000 10,000,000 Transamerica Life Insurance and Annuity Co., 6.09%, 2/25/2000 10,000,000 44,000,000 Travelers Insurance Co., 6.09%, 4/1/2000 44,000,000 TOTAL 200,121,821 TOTAL VARIABLE RATE INSTRUMENTS 667,582,337 TIME DEPOSITS-8.1% 1 BANKING-8.1% 35,000,000 Mellon Bank N.A., Pittsburgh, 5.81%, 2/1/2000 35,000,000 75,000,000 Societe Generale, Paris, 5.81%, 2/1/2000 75,000,000 100,000,000 SunTrust Bank, Atlanta, 5.88%, 2/1/2000 100,000,000 50,000,000 Toronto Dominion Bank, 5.81%, 2/1/2000 50,000,000 TOTAL TIME DEPOSITS 260,000,000 PRINCIPAL AMOUNT VALUE REPURCHASE AGREEMENTS-9.1% 4 $ 89,100,000 Bank of America, 5.80%, dated 1/31/2000, due 2/1/2000 $ 89,100,000 150,000,000 Deutsche Bank Financial, Inc., 5.80%, dated 1/31/2000, due 2/1/2000 150,000,000 27,200,000 Donaldson, Lufkin and Jenrette Securities Corp., 5.70%, dated 1/31/2000, due 2/1/2000 27,200,000 25,000,000 Toronto Dominion Securities (USA), Inc., 5.69%, dated 1/31/2000, due 2/1/2000 25,000,000 TOTAL REPURCHASE AGREEMENTS 291,300,000 TOTAL INVESTMENTS (AT AMORTIZED COST) 5 $ 3,211,155,720
1 Each issue shows the rate of discount at the time of purchase. 2 Variable rate securities with current rate and next reset date shown. 3 Denotes a security which is subject to restrictions on resale under federal securities laws. These securities have been deemed liquid based upon criteria approved by the Fund's Board of Trustees. At January 31, 2000, these securities amounted to $46,101,732, which represents 1.44% of net assets. 4 The repurchase agreements are collateralized fully by U.S. Treasury 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. 5 Also represents cost for federal tax purposes. Note: The categories of investments are shown as a percentage of net assets ($3,210,986,473) at January 31, 2000. The following acronyms are used throughout this portfolio: AMBAC -American Municipal Bond Assurance Corporation IDB -Industrial Development Bond LIQ -Liquidity Agreement LOC -Letter of Credit MBIA -Municipal Bond Investors Assurance See Notes which are an integral part of the Financial Statements Statement of Assets and Liabilities JANUARY 31, 2000 (UNAUDITED)
ASSETS: Total investments in securities, at amortized cost and value $ 3,211,155,720 Cash 710,991 Income receivable 16,913,475 Receivable for shares sold 142,381 TOTAL ASSETS 3,228,922,567 LIABILITIES: Payable for investments purchased $ 7,007,000 Payable for shares redeemed 7,868 Income distribution payable 10,079,156 Accrued expenses 842,070 TOTAL LIABILITIES 17,936,094 Net assets for 3,210,986,473 shares outstanding $ 3,210,986,473 NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PROCEEDS PER SHARE INSTITUTIONAL SERVICE SHARES: $2,178,076,955 / 2,178,076,955 shares outstanding $1.00 CASH II SHARES: $1,032,909,518 / 1,032,909,518 shares outstanding $1.00
See Notes which are an integral part of the Financial Statements Statement of Operations SIX MONTHS ENDED JANUARY 31, 2000 (UNAUDITED)
INVESTMENT INCOME: Interest $ 72,596,717 EXPENSES: Investment adviser fee $ 6,484,898 Administrative personnel and services fee 977,496 Custodian fees 97,299 Transfer and dividend disbursing agent fees and expenses 555,748 Directors'/Trustees' fees 8,918 Auditing fees 6,316 Legal fees 7,607 Portfolio accounting fees 86,144 Distribution services fee- Cash II Shares 968,804 Shareholder services fee- Institutional Service Shares 2,273,645 Shareholder services fee- Cash II Shares 968,804 Share registration costs 42,516 Printing and postage 86,727 Insurance premiums 79,334 Miscellaneous 20,255 TOTAL EXPENSES 12,664,511 WAIVERS: Waiver of investment adviser fee $ (3,895,673) Waiver of distribution services fee-Cash II Shares (337,144) Waiver of shareholder services fee-Institutional Service Shares (63,662) TOTAL WAIVERS (4,296,479) Net expenses 8,368,032 Net investment income $ 64,228,685
See Notes which are an integral part of the Financial Statements Statement of Changes in Net Assets
SIX MONTHS ENDED (unaudited) YEAR ENDED JANUARY 31, JULY 31, 2000 1999 INCREASE (DECREASE) IN NET ASSETS OPERATIONS: Net investment income $ 64,228,685 $ 112,094,085 DISTRIBUTIONS TO SHAREHOLDERS: Distributions from net investment income Institutional Service Shares (45,466,454) (79,840,623) Cash II Shares (18,762,231) (32,253,462) CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS (64,228,685) (112,094,085) SHARE TRANSACTIONS: Proceeds from sale of shares 7,743,089,525 12,077,510,796 Net asset value of shares issued to shareholders in payment of distributions declared 43,705,324 82,501,229 Cost of shares redeemed (6,897,743,531) (12,275,892,919) CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS 889,051,318 (115,880,894) Change in net assets 889,051,318 (115,880,894) NET ASSETS: Beginning of period 2,321,935,155 2,437,816,049 End of period $ 3,210,986,473 $ 2,321,935,155
See Notes which are an integral part of the Financial Statements Financial Highlights-Institutional Service Shares (FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
SIX MONTHS THREE ENDED MONTHS (unaudited) ENDED JANUARY 31, YEAR ENDED JULY 31, JULY 31, 2000 1999 1998 1997 1996 1995 1 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 0.01 LESS DISTRIBUTIONS: Distributions from net investment income (0.03) (0.05) (0.05) (0.05) (0.05) (0.01) NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 TOTAL RETURN 2 2.54% 4.76% 5.25% 5.09% 5.20% 1.42% RATIOS TO AVERAGE NET ASSETS: Expenses 0.59% 3 0.59% 0.59% 0.58% 0.57% 0.57% 3 Net investment income 5.00% 3 4.66% 5.13% 4.97% 5.08% 5.60% 3 Expenses waiver/reimbursement 4 0.31% 3 0.32% 0.30% 0.33% 0.31% 0.40% 3 SUPPLEMENTAL DATA: Net assets, end of period (000 omitted) $2,178,077 $1,623,816 $1,734,061 $1,378,982 $1,274,419 $1,141,043
1 The Fund was reorganized as a portfolio of Money Market Obligations Trust effective July 30, 1994. The Fund changed its fiscal year-end from April 30 to July 31 effective October 27, 1994. 2 Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. 3 Computed on an annualized basis. 4 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 Financial Highlights-Cash II Shares (FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
SIX MONTHS ENDED PERIOD (unaudited) ENDED JANUARY 31, YEAR ENDED JULY 31, JULY 31, 2000 1999 1998 1997 1 NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 INCOME FROM INVESTMENT OPERATIONS: Net investment income 0.02 0.05 0.05 0.04 LESS DISTRIBUTIONS: Distributions from net investment income (0.02) (0.05) (0.05) (0.04) NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 TOTAL RETURN 2 2.45% 4.58% 5.07% 4.14% RATIOS TO AVERAGE NET ASSETS: Expenses 0.76% 3 0.76% 0.76% 0.75% 3 Net investment income 4.84% 3 4.49% 4.94% 4.84% 3 Expenses waiver/reimbursement 4 0.39% 3 0.40% 0.38% 0.41% 3 SUPPLEMENTAL DATA: Net assets, end of period (000 omitted) $1,032,910 $698,119 $703,755 $725,267
1 Reflects operations for the period from September 27, 1996 (date of initial public investment) to July 31, 1997. 2 Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. 3 Computed on an annualized basis. 4 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 Notes to Financial Statements JANUARY 31, 2000 (UNAUDITED) ORGANIZATION Money Market Obligation 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 Cash Management 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 stability of principal and current income consistent with stability of principal. The Fund offers two classes of shares: Institutional Service Shares and Cash II Shares. SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with generally accepted accounting principles. INVESTMENT VALUATIONS The Fund uses the amortized cost method to value its portfolio securities in accordance with Rule 2a-7 under the Act. REPURCHASE AGREEMENTS It is the policy of the Fund to require the custodian bank to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian bank's vault, all securities held as collateral under repurchase agreement transactions. Additionally, procedures have been established by the Fund to monitor, on a daily basis, the market value of each repurchase agreement's collateral to ensure that the value of collateral at least equals the repurchase price to be paid under the repurchase agreement. 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. INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS Interest income and expenses are accrued daily. Bond premium and discount, if applicable, are amortized as required by the Internal Revenue Code, as amended (the "Code"). Distributions to shareholders are recorded on the ex- dividend date. Non-cash dividends included in dividend income, if any, are recorded at fair market 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. FEDERAL TAXES It is the Fund's policy to comply with the provisions of the Code applicable to regulated investment companies and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal tax is necessary. WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS The Fund may engage in when-issued or delayed delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when- issued or delayed delivery basis are marked to market daily and begin earning interest on the settlement date. RESTRICTED SECURITIES Restricted securities are securities that may only be resold upon registration under federal securities laws or in transactions exempt from such registration. Many restricted securities may be resold in the secondary market in transactions exempt from registration. In some cases, the restricted securities may be resold without registration upon exercise of a demand feature. Such restricted securities may be determined to be liquid under criteria established by the Trustees. The 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. USE OF ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated. OTHER Investment transactions are accounted for on a trade date basis. SHARES OF BENEFICIAL INTEREST The Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest (without par value) for each class of shares. At January 31, 2000, capital paid-in aggregated $3,210,986,473. Transactions in shares were as follows:
SIX MONTHS ENDED YEAR ENDED JANUARY 31, JULY 31, 2000 1999 INSTITUTIONAL SERVICE SHARES: Shares sold 5,076,542,725 8,194,463,894 Shares issued to shareholders in payment of distributions declared 26,285,954 52,248,986 Shares redeemed (4,548,567,526) (8,356,958,182) NET CHANGE RESULTING FROM INSTITUTIONAL SERVICE SHARE TRANSACTIONS 554,261,153 (110,245,302) SIX MONTHS ENDED YEAR ENDED JANUARY 31, JULY 31, 2000 1999 CASH II SHARES: Shares sold 2,666,546,800 3,883,046,902 Shares issued to shareholders in payment of distributions declared 17,419,370 30,252,243 Shares redeemed (2,349,176,005) (3,918,934,737) NET CHANGE RESULTING FROM CASH II SHARE TRANSACTIONS 334,790,165 (5,635,592) NET CHANGE RESULTING FROM SHARE TRANSACTIONS 889,051,318 (115,880,894)
INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES INVESTMENT ADVISER FEE 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. ADMINISTRATIVE FEE Federated Services Company ("FServ"), under the Administrative Services Agreement, provides the Fund with administrative personnel and services. The fee paid to FServ is based on 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 $125,000 minimum per portfolio and $30,000 per each additional class. DISTRIBUTION SERVICES FEE The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b- 1 under the Act. Under the terms of the Plan, the Fund will compensate Federated Securities Corp. ("FSC"), the principal distributor, from the net assets of the Fund to finance activities intended to result in the sale of the Fund's Class II Shares. The Plan provides that the Fund may incur distribution expenses up to 0.25% of the average daily net assets of Cash II Shares, annually, to compensate FSC. FSC may voluntarily choose to waive any portion of its fee. FSC can modify or terminate this voluntary waiver at any time at its sole discretion. SHAREHOLDER SERVICES FEE Under the terms of a Shareholder Services Agreement with Federated Shareholder Services Company ("FSSC"), the Fund will pay FSSC up to 0.25% of average daily net assets of the Fund for the period. The fee paid to FSSC is used to finance certain services for shareholders and to maintain shareholder accounts. FSSC may voluntarily choose to waive any portion of its fee. FSSC can modify or terminate this voluntary waiver at any time at its sole discretion. TRANSFER AND DIVIDEND DISBURSING AGENT FEES AND EXPENSES FServ, through its subsidiary FSSC, serves as transfer and dividend disbursing agent for the Fund. The fee paid to FSSC is based on the size, type and number of accounts and transactions made by shareholders. PORTFOLIO ACCOUNTING FEES FServ maintains the Fund's accounting records for which it receives a fee. The fee is based on the level of the Fund's average daily net assets for the period, plus out-of-pocket expenses. GENERAL Certain of the Officers and Trustees of the Fund are Officers and Directors or Trustees of the above companies. Trustees JOHN F. DONAHUE THOMAS G. BIGLEY JOHN T. CONROY, JR. NICHOLAS P. CONSTANTAKIS JOHN F. CUNNINGHAM J. CHRISTOPHER DONAHUE LAWRENCE D. ELLIS, M.D. PETER E. MADDEN CHARLES F. MANSFIELD, JR. JOHN E. MURRAY, JR., J.D., S.J.D. MARJORIE P. SMUTS JOHN S. WALSH Officers JOHN F. DONAHUE Chairman J. CHRISTOPHER DONAHUE President EDWARD C. GONZALES Executive Vice President JOHN W. MCGONIGLE Executive Vice President and Secretary RICHARD B. FISHER Vice President RICHARD J. THOMAS Treasurer LESLIE K. ROSS Assistant Secretary Mutual funds are not bank deposits or obligations, are not guaranteed by any bank, and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other government agency. Investment in mutual funds involves investment risk, including the possible loss of principal. This report is authorized for distribution to prospective investors only when preceded or accompanied by the fund's prospectus which contains facts concerning its objective and policies, management fees, expenses, and other information. [Graphic] Federated World-Class Investment Manager SEMI-ANNUAL REPORT Automated Cash Management Trust SEMI-ANNUAL REPORT TO SHAREHOLDERS JANUARY 31, 2000 [Graphic] Federated Automated Cash Management Trust Federated Investors Funds 5800 Corporate Drive Pittsburgh, PA 15237-7000 1-800-341-7400 WWW.FEDERATEDINVESTORS.COM Federated Securities Corp., Distributor Cusip 60934N864 Cusip 60934N831 8112802 (3/00) [Graphic] SEMI-ANNUAL REPORT President's Message Dear Shareholder: I am pleased to present the Semi-Annual Report to Shareholders for Automated Government Money Trust, which covers the six-month period from August 1, 1999 through January 31, 2000. It begins with an investment review of the short-term government market by the fund's portfolio manager. Following the investment review are the fund's portfolio of investments and financial statements. Over the six-month reporting period, dividends paid to shareholders totaled $0.02 per share. This high-quality money market fund keeps the investor's cash at work pursuing daily income, along with providing a high level of liquidity and a stable net asset value of $1.00 per share. 1 The fund's portfolio maintained its AAAm rating by Standard & Poor's and Aaa rating by Moody's Investors Service, the highest ratings possible for a money market fund.2 At the end of the reporting period, more than 76% of the fund's $1.9 billion in net assets were invested in repurchase agreements backed by Treasury obligations because of their yield advantage. The remainder of the portfolio was invested in U.S. Treasury bills and notes. Thank you for participating in the daily earning power of Automated Government Money Trust. As always, we welcome your questions, comments or suggestions. Sincerely, [Graphic] J. Christopher Donahue President March 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 these funds. 2 The Standard & Poor's 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 ratings. Money market funds rated Aaa by Moody's Investors Service are judged to be of an investment quality similar to Aaa-rated fixed income obligations, which means they are judged to be of the best quality. Ratings are subject to change and do not remove interest rate risks. Investment Review Automated Government Money Trust, which is rated AAAm by Standard & Poor's and Aaa by Moody's Investors Service, is invested in direct obligations of the U.S. Treasury either in the form of notes and bills or as collateral for repurchase agreements. The Federal Reserve Board (the "Fed") tightened monetary policy on two occasions over the semi-annual reporting period ended January 31, 2000. These two quarter-point moves, combined with an initial tightening of 25 basis points at the end of June 1999, brought the federal funds target rate back to 5.50%. This was the level of the federal funds target rate prior to the fourth quarter of 1998, when the Fed infused liquidity into the fixed income markets during a period of global economic turmoil. Shortly after the end of January 2000, however, the Fed raised the federal funds target rate yet again by 25 basis points, arguably restricting monetary policy for the first time since before the liquidity and credit crisis of over a year ago. Robust economic growth prompted the policy moves by the Fed. Economic growth in 1999 exceeded 4%, well in excess of what is generally considered to be the long-run, non-inflationary growth potential of the economy. Consumer spending continued to be one of the main drivers behind the impressive pace of growth, and although mortgage rates have increased by close to 150 basis points over the reporting period, the interest-sensitive sectors of the economy have remained persistently strong. Inflationary pressures at the producer and consumer level remain remarkably absent in the face of this growth. However, while the notion of non-inflationary potential (traditionally 2.00% to 2.50%) has increased in recent times due to evidence that productivity enhancements have been controlling inflationary pressures, continued growth well above 3.00% is likely to keep the Fed on its current tightening course in the near term. Short-term interest rates reflected, and largely anticipated, the monetary policy tightenings over the reporting period. The yield on the 1-year U.S. Treasury bill, for example, began the reporting period at close to 5%, traded up to 5.2% by the time of the Fed's decision to tighten in August, and to 5.5% by the second tightening of the reporting period in November. The yield then climbed steadily to close the reporting period at 6.25%, two days prior to the latest decision by the Fed to tighten, which brought the federal funds target rate to its current 5.75% level. Much attention-both in the financial markets and the popular press-was given in the fourth quarter to the potential dislocations feared at year end due to the Y2K effect. In hindsight, of course, the world experienced very few troubles, and the economic impact appears to be non-existent. However, very short-term government securities did seem to reflect a flight to quality concentrated in the last few days and weeks of the trading year. Furthermore, rates on repurchase agreements reflected the steps that the Fed had taken to assure that sufficient liquidity would be available to the banking system at year end in the event of a crisis; they traded around 3.00% in the last few days of the year, well below the typical level of around the then 5.50% federal funds target rate. After the tightening step taken in November, the Fed was largely and accurately expected to stay on hold until the early February Federal Open Market Committee ("FOMC") meeting to minimize any dislocations experienced at this time. We managed the fund within a 40 to 50 day average maturity target range throughout most of the reporting period, moving within that range according to relative value opportunities available in the market. We continued to pursue a barbelled structure for the fund, combining a significant position in repurchase agreements, primarily on an overnight basis, with purchases of U.S. Treasury securities in the 6 to 13 month area. As has been the case for some time, due to the technical influences in the Treasury bill market that have kept this sector of the yield curve quite expensive, we concentrated our direct purchases of Treasury securities in Treasury notes that met our maturity guidelines. We also reduced our traditional holdings of overnight repurchase agreements, which were typically at 70% to 80% of the fund, to about 50% of fund assets at the end of 1999 as we expected very low repo rates. With fourth quarter Gross Domestic Product ("GDP") in 1999 now expected to have grown at close to 7%, we anticipate that the Fed will gradually restrict monetary policy further until Fed officials see concrete signs of a slowing in economic activity to a more sustainable pace. As a result, we recently lowered our average maturity target range to 35 to 45 days in anticipation of higher interest rates, and are currently positioned at the lower end of that range. Portfolio of Investments JANUARY 31, 2000 (UNAUDITED)
PRINCIPAL AMOUNT VALUE U.S. TREASURY OBLIGATIONS- 24.3% U.S. TREASURY BILLS-0.7% $ 14,000,000 1 4.470% - 5.210%, 3/30/2000 - 11/9/2000 $ 13,630,297 U.S. TREASURY NOTES-23.6% 454,000,000 4.000% - 6.875%, 2/15/2000 - 1/31/2001 453,618,122 TOTAL U.S. TREASURY OBLIGATIONS 467,248,419 REPURCHASE AGREEMENTS-76.4% 2 70,000,000 Bank One, 5.690%, dated 1/31/2000, due 2/1/2000 70,000,000 50,000,000 Bank of New York, 5.690%, dated 1/31/2000, due 2/1/2000 50,000,000 90,000,000 Barclays Capital, Inc., 5.710%, dated 1/31/2000, due 2/1/2000 90,000,000 90,000,000 Bear, Stearns Companies, Inc., 5.710%, dated 1/31/2000, due 2/1/2000 90,000,000 35,000,000 CIBC World Markets, 5.700%, dated 1/31/2000, due 2/1/2000 35,000,000 76,000,000 3 Deutsche Bank AG, 5.640%, dated 1/14/2000, due 2/29/2000 76,000,000 35,000,000 3 Deutsche Bank AG, 5.650%, dated 1/26/2000, due 2/22/2000 35,000,000 114,000,000 Deutsche Bank AG, 5.700%, dated 1/31/2000, due 2/1/2000 114,000,000 90,000,000 Donaldson, Lufkin and Jenrette Inc., 5.700%, dated 1/31/2000, due 2/1/2000 90,000,000 90,000,000 McLeodUSA, Inc., 5.690%, dated 1/31/2000, due 2/1/2000 90,000,000 65,000,000 Morgan Stanley Dean Witter & Co., 5.700%, dated 1/31/2000, due 2/1/2000 65,000,000 90,000,000 Salomon Smith Barney, 5.700%, dated 1/31/2000, due 2/1/2000 90,000,000 50,000,000 Societe Generale Securities Corp., 5.690%, dated 1/31/2000, due 2/1/2000 50,000,000 75,000,000 State Street Corp., 5.690%, dated 1/31/2000, due 2/1/2000 75,000,000 90,000,000 Toronto Dominion Securities (USA), Inc., 5.690%, dated 1/31/2000, due 2/1/2000 90,000,000 30,000,000 3 Warburg Dillon Read LLC, 5.340%, dated 8/18/1999, due 2/14/2000 30,000,000 15,000,000 Warburg Dillon Read LLC, 5.600%, dated 1/31/2000, due 2/1/2000 15,000,000 77,000,000 3 Warburg Dillon Read LLC, 5.650%, dated 1/18/2000, due 3/20/2000 77,000,000 150,000,000 Warburg Dillon Read LLC, 5.700%, dated 1/31/2000, due 2/1/2000 150,000,000 90,000,000 Westdeutsche Landesbank NY, 5.690%, dated 1/31/2000, due 2/1/2000 90,000,000 TOTAL REPURCHASE AGREEMENTS 1,472,000,000 TOTAL INVESTMENTS (AT AMORTIZED COST) 4 $ 1,939,248,419
1 The issue shows the rate of discount at the time of purchase. 2 The repurchase agreements are collateralized fully by U.S. Treasury obligations based on market prices at the date of the portfolio. 3 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. 4 Also represents cost for federal tax purposes. Note: The categories of investments are shown as a percentage of net assets ($1,925,565,481) as of January 31, 2000. See Notes which are an integral part of the Financial Statements Statement of Assets and Liabilities JANUARY 31, 2000 (UNAUDITED)
ASSETS: Investments in repurchase agreements $ 1,472,000,000 Investments in securities 467,248,419 Total investments in securities, at amortized cost and value $ 1,939,248,419 Cash 23,653 Income receivable 7,621,119 Receivable for shares sold 11,425 TOTAL ASSETS 1,946,904,616 LIABILITIES: Payable for investments purchased 12,770,045 Income distribution payable 8,107,216 Accrued expenses 461,874 TOTAL LIABILITIES 21,339,135 Net assets for 1,925,565,481 shares outstanding $ 1,925,565,481 NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PROCEEDS PER SHARE: $1,925,565,481 / 1,925,565,481 shares outstanding $1.00
See Notes which are an integral part of the Financial Statements Statement of Operations SIX MONTHS ENDED JANUARY 31, 2000 (UNAUDITED)
INVESTMENT INCOME: Interest $ 52,513,860 EXPENSES: Investment adviser fee $ 5,005,133 Administrative personnel and services fee 754,462 Custodian fees 71,583 Transfer and dividend disbursing agent fees and expenses 101,615 Directors'/Trustees' fees 12,203 Auditing fees 6,189 Legal fees 7,541 Portfolio accounting fees 65,631 Shareholder services fee 2,502,567 Share registration costs 12,202 Printing and postage 20,396 Insurance premiums 3,484 Miscellaneous 13,205 TOTAL EXPENSES 8,576,211 WAIVERS: Waiver of investment adviser fee $ (2,525,864) Waiver of shareholder services fee (99,711) TOTAL WAIVERS (2,625,575) Net expenses 5,950,636 Net investment income $ 46,563,224
See Notes which are an integral part of the Financial Statements Statement of Changes in Net Assets
SIX MONTHS ENDED (unaudited) YEAR ENDED JANUARY 31, JULY 31, 2000 1999 INCREASE (DECREASE) IN NET ASSETS OPERATIONS: Net investment income $ 46,563,224 $ 100,106,973 DISTRIBUTIONS TO SHAREHOLDERS: Distributions from net investment income (46,563,224) (100,106,973) SHARE TRANSACTIONS: Proceeds from sale of shares 5,303,359,163 9,358,843,731 Net asset value of shares issued to shareholders in payment of distributions declared 18,939,983 41,924,345 Cost of shares redeemed (5,450,105,284) (9,714,709,880) CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS (127,806,138) (313,941,804) Change in net assets (127,806,138) (313,941,804) NET ASSETS: Beginning of period 2,053,371,619 2,367,313,423 End of period $ 1,925,565,481 $ 2,053,371,619
See Notes which are an integral part of the Financial Statements Financial Highlights (FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
SIX MONTHS ENDED (unaudited) JANUARY 31, YEAR ENDED JULY 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 0.02 0.04 0.05 0.05 0.05 0.05 LESS DISTRIBUTIONS: Distributions from net investment income (0.02) (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 RETURN 1 2.36% 4.50% 5.13% 4.97% 5.15% 5.10% RATIOS TO AVERAGE NET ASSETS: Expenses 0.59% 2 0.59% 0.59% 0.59% 0.57% 0.57% Net investment income 4.65% 2 4.41% 5.00% 4.86% 5.03% 4.97% Expense waiver/reimbursement 3 0.26% 2 0.26% 0.26% 0.27% 0.28% 0.29% SUPPLEMENTAL DATA: Net assets, end of period (000 omitted) $1,925,565 $2,053,372 $2,367,313 $2,412,656 $2,478,477 $2,448,873
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 Notes to Financial Statements JANUARY 31, 2000 (UNAUDITED) ORGANIZATION 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 Money 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 stability of principal and current income consistent with stability of principal. SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with generally accepted accounting principles. INVESTMENT VALUATIONS The Fund uses the amortized cost method to value its portfolio securities in accordance with Rule 2a-7 under the Act. REPURCHASE AGREEMENTS It is the policy of the Fund to require the custodian bank or broker 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. INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS Interest income and expenses are accrued daily. Bond premium and discount, if applicable, are amortized as required by the Internal Revenue Code, as amended (the "Code"). 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. FEDERAL TAXES It is the Fund's policy to comply with the provisions of the Code applicable to regulated investment companies and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal tax is necessary. WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS The Fund may engage in when-issued or delayed delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when- issued or delayed delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract. USE OF ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated. OTHER Investment transactions are accounted for on a trade date basis. 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 January 31, 2000, capital paid-in aggregated $1,925,565,481. Transactions in shares were as follows:
SIX MONTHS ENDED YEAR ENDED JANUARY 31, JULY 31, 2000 1999 Shares sold 5,303,359,163 9,358,843,731 Shares issued to shareholders in payment of distributions declared 18,939,983 41,924,345 Shares redeemed (5,450,105,284) (9,714,709,880) NET CHANGE RESULTING FROM SHARE TRANSACTIONS (127,806,138) (313,941,804)
INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES INVESTMENT ADVISER FEE 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. ADMINISTRATIVE FEE Federated Services Company ("FServ"), under the Administrative Services Agreement, provides the Fund with administrative personnel and services. The fee paid to FServ is based on 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 $125,000 minimum per portfolio and $30,000 per each additional class. SHAREHOLDER SERVICES FEE Under the terms of a Shareholder Services Agreement with Federated Shareholder Services Company ("FSSC"), the Fund will pay FSSC up to 0.25% of average daily net assets of the Fund for the period. The fee paid to FSSC is used to finance certain services for shareholders and to maintain shareholder accounts. FSSC may voluntarily choose to waive any portion of its fee. FSSC can modify or terminate this voluntary waiver at any time at its sole discretion. TRANSFER AND DIVIDEND DISBURSING AGENT FEES AND EXPENSES FServ, through its subsidiary FSSC, serves as transfer and dividend disbursing agent for the Fund. The fee paid to FSSC is based on the size, type and number of accounts and transactions made by shareholders. PORTFOLIO ACCOUNTING FEES FServ maintains the Fund's accounting records for which it receives a fee. The fee is based on the level of the Fund's average daily net assets for the period, plus out-of-pocket expenses. GENERAL Certain of the Officers and Trustees of the Fund are Officers and Directors or Trustees of the above companies. Trustees JOHN F. DONAHUE THOMAS G. BIGLEY JOHN T. CONROY, JR. NICOLAS P. CONSTANTAKIS JOHN F. CUNNINGHAM J. CHRISTOPHER DONAHUE LAWRENCE D. ELLIS, M.D. PETER E. MADDEN CHARLES F. MANSFIELD, JR. JOHN E. MURRAY, JR., J.D., S.J.D. MARJORIE P. SMUTS JOHN S. WALSH Officers JOHN F. DONAHUE Chairman J. CHRISTOPHER DONAHUE President EDWARD C. GONZALES Executive Vice President JOHN W. MCGONIGLE Executive Vice President and Secretary RICHARD B. FISHER Vice President RICHARD J. THOMAS Treasurer LESLIE K. ROSS Assistant Secretary Mutual funds are not bank deposits or obligations, are not guaranteed by any bank, and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other government agency. Investment in mutual funds involves investment risk, including the possible loss of principal. This report is authorized for distribution to prospective investors only when preceded or accompanied by the fund's prospectus which contains facts concerning its objective and policies, management fees, expenses and other information. [Graphic] Federated World-Class Investment Manager SEMI-ANNUAL REPORT Automated Government Money Trust SEMI-ANNUAL REPORT TO SHAREHOLDERS JANUARY 31, 2000 [Graphic] Federated Automated Government Money Trust Federated Investors Funds 5800 Corporate Drive Pittsburgh, PA 15237-7000 1-800-341-7400 WWW.FEDERATEDINVESTORS.COM Federated Securities Corp., Distributor Cusip 60934N815 8022501 (3/00) [Graphic] SEMI-ANNUAL REPORT President's Message Dear Shareholder: I am pleased to present the Semi-Annual Report to Shareholders for Trust for U.S. Treasury Obligations, which covers the six-month period from August 1, 1999 through January 31, 2000. The report begins with an investment review by the fund's portfolio manager and follows with the portfolio of investments and financial statements. This money market mutual fund offers a high-quality approach to daily investment income, along with daily liquidity and stability of principal, 1 through a portfolio of short-term U.S. Treasury obligations. At the end of the reporting period, approximately 72% of fund assets were invested in repurchase agreements backed by U.S. Treasury obligations because of the yield advantage of these securities. The remaining assets were invested in U.S. Treasury obligations. Dividends paid to shareholders during the six-month reporting period totaled $0.02 per share. At the end of the reporting period, the fund's net assets totaled $1.2 billion. Thank you for selecting Trust for U.S. Treasury Obligations as your quality cash investment. We welcome your comments and suggestions. Sincerely, [Graphic] J. Christopher Donahue President March 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 these funds. Investment Review Trust for U.S. Treasury Obligations, which is rated AAAm by Standard & Poor's 1 and Aaa by Moody's Investors Service,2 is invested in direct obligations of the U.S. Treasury either, in the form of notes and bills or as collateral for repurchase agreements. The Federal Reserve Board (the "Fed") tightened monetary policy on two occasions over the semi-annual reporting period ended January 31, 2000. These two quarter-point moves, combined with an initial tightening of 25 basis points at the end of June 1999, brought the federal funds target rate back to 5.50%. This was the level of the federal funds target rate prior to the fourth quarter of 1998, when the Fed infused liquidity into the fixed income markets during a period of global economic turmoil. Shortly after the end of January 2000, however, the Fed raised the federal funds target rate yet again by 25 basis points, arguably restricting monetary policy for the first time since before the liquidity and credit crisis of over a year ago. Robust economic growth prompted the policy moves by the Fed. Economic growth in 1999 exceeded 4%, well in excess of what is generally considered to be the long-run, non-inflationary growth potential of the economy. Consumer spending continued to be one of the main drivers behind the impressive pace of growth, and although mortgage rates have increased by close to 150 basis points over the reporting period, the interest-sensitive sectors of the economy have remained persistently strong. Inflationary pressures at the producer and consumer level remain remarkably absent in the face of this growth. However, while the notion of a non-inflationary potential (traditionally 2% to 2.50%) has increased in recent times due to evidence that productivity enhancements have been controlling inflationary pressures, continued growth well above 3% is likely to keep the Fed on its current tightening course in the near term. Short-term interest rates reflected, and largely anticipated, the monetary policy tightenings over the reporting period. The yield on the 1-year Treasury bill, for example, began the reporting period at close to 5%, traded up to 5.2% by the time of the Fed's decision to tighten in August, and to 5.5% by the second tightening of the reporting period in November. The yield then climbed steadily to close the reporting period at 6.25%, two days prior to the latest decision by the Fed to tighten, which brought the federal funds target rate to its current 5.75% level. 1 The Standard & Poor's rating is obtained after S&P evaluates a number of factors, including credit quality, market price exposure and management. S&P monitors the portfolio weekly for developments that could cause changes in the ratings. Ratings are subject to change and do not remove interest rate risks. 2 Money market funds rated Aaa by Moody's Investors Service are judged to be of an investment quality similar to Aaa-rated fixed income obligations, which means they are judged to be of the best quality. Ratings are subject to change and do not remove interest rate risks. Much attention-both in the financial markets and the popular press-was given in the fourth quarter to the potential dislocations feared at year end due to the Y2K effect. In hindsight, of course, the world experienced very few troubles, and the economic impact appears to be non-existent. However, very short-term government securities did seem to reflect a flight to quality concentrated in the last few days and weeks of the trading year. Furthermore, rates on repurchase agreements reflected the steps that the Fed had taken to assure that sufficient liquidity would be available to the banking system at year end in the event of a crisis; they traded around 3% in the last few days of the year, well below the typical level of around the then 5.50% federal funds target rate. After the tightening step taken in November, the Fed was largely and accurately expected to stay on hold until the early February Federal Open Market Committee ("FOMC") meeting to minimize any dislocations experienced at this time. We managed the fund within a 40 to 50 day average maturity target range throughout most of the reporting period, moving within that range according to relative value opportunities available in the market. We continued to pursue a barbelled structure for the fund, combining a significant position in repurchase agreements, primarily on an overnight basis, with purchases of Treasury securities in the 6 to 13 month area. As has been the case for some time, due to the technical influences in the Treasury bill market that have kept this sector of the curve quite expensive, we concentrated our direct purchases of Treasury securities in Treasury notes that met our maturity guidelines. We also reduced our traditional holdings of overnight repurchase agreements, which were typically at 70% to 80% of the fund, to about 50% of fund assets at the end of 1999 as we expected very low repo rates. With fourth quarter Gross Domestic Product ("GDP") in 1999 now expected to have grown at close to 7%, we anticipate that the Fed will gradually restrict monetary policy further until Fed officials see concrete signs of a slowing in economic activity to a more sustainable pace. As a result, we recently lowered our average maturity target range to 35 to 45 days in anticipation of higher interest rates, and are currently positioned at the lower end of that range. Portfolio of Investments JANUARY 31, 2000 (UNAUDITED)
PRINCIPAL AMOUNT VALUE U.S. TREASURY OBLIGATIONS- 27.5% U.S. TREASURY BILLS-0.9% $ 11,500,000 1 United States Treasury Bills, 4.470% - 5.210%, 3/30/2000 - 11/9/2000 $ 11,181,911 U.S. TREASURY NOTES-26.6% 330,750,000 United States Treasury Notes, 4.000% - 6.875%, 2/15/2000 - 11/30/2000 330,543,387 TOTAL U.S. TREASURY OBLIGATIONS 341,725,298 REPURCHASE AGREEMENTS- 72.7% 2 55,000,000 Bank One Capital, Inc., 5.690%, dated 1/31/2000, due 2/1/2000 55,000,000 55,000,000 Barclays de Zoete Wedd Securities, Inc., 5.710%, dated 1/31/2000, due 2/1/2000 55,000,000 55,000,000 Bear, Stearns and Co., 5.710%, dated 1/31/2000, due 2/1/2000 55,000,000 60,400,000 Deutsche Bank AG, 5.700%, dated 1/31/2000, due 2/1/2000 60,400,000 55,000,000 3 Deutsche Bank AG, 5.650%, dated 1/26/2000, due 2/22/2000 55,000,000 19,000,000 3 Deutsche Bank AG, 5.640%, dated 1/14/2000, due 2/29/2000 19,000,000 55,000,000 Donaldson, Lufkin and Jenrette Securities Corp., 5.700%, dated 1/31/2000, due 2/1/2000 55,000,000 55,000,000 McLeodUSA Inc., 5.690%, dated 1/31/2000, due 2/1/2000 55,000,000 55,000,000 Salomon Smith Barney Holdings, Inc., 5.700%, dated 1/31/2000, due 2/1/2000 55,000,000 105,000,000 State Street Corp., 5.690%, dated 1/31/2000, due 2/1/2000 105,000,000 55,000,000 Toronto Dominion Securities (USA), Inc., 5.690%, dated 1/31/2000, due 2/1/2000 55,000,000 27,000,000 3 Warburg Dillon Read LLC, 5.340%, dated 8/18/1999, due 2/14/2000 27,000,000 45,000,000 3 Warburg Dillon Read LLC, 5.650%, dated 1/18/2000, due 3/20/2000 45,000,000 150,000,000 Warburg Dillon Read LLC, 5.700%, dated 1/31/2000, due 2/1/2000 150,000,000 55,000,000 Westdeutsche Landesbank Girozentrale, 5.690%, dated 1/31/2000, due 2/1/2000 55,000,000 TOTAL REPURCHASE AGREEMENTS 901,400,000 TOTAL INVESTMENTS (AT AMORTIZED COST) 4 $ 1,243,125,298
1 The issue shows the rate of discount at the time of purchase. 2 The repurchase agreements are collateralized fully by U.S. Treasury obligations based on market prices at the date of the portfolio. 3 Although final maturity falls beyond seven days, a liquidity feature is included in each transaction to permit termination of the repurchase agreement within seven. 4 Also represents cost for federal tax purposes. Note: The categories of investments are shown as a percentage of net assets ($1,240,181,243) at January 31, 2000. See Notes which are an integral part of the Financial Statements Statement of Assets and Liabilities JANUARY 31, 2000 (UNAUDITED)
ASSETS: Investments in repurchase agreements $ 901,400,000 Investments in securities 341,725,298 Total investments in securities, at amortized cost and value $ 1,243,125,298 Cash 4,611,064 Income receivable 5,638,882 Receivable for shares sold 36,380 TOTAL ASSETS 1,253,411,624 LIABILITIES: Payable for investments purchased 7,858,489 Income distribution payable 5,246,589 Accrued expenses 125,303 TOTAL LIABILITIES 13,230,381 Net assets for 1,240,181,243 shares outstanding $ 1,240,181,243 NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PROCEEDS PER SHARE: $1,240,181,243 / 1,240,181,243 shares outstanding $1.00
See Notes which are an integral part of the Financial Statements Statement of Operations SIX MONTHS ENDED JANUARY 31, 2000 (UNAUDITED)
INVESTMENT INCOME: Interest $ 37,165,387 EXPENSES: Investment adviser fee $ 2,837,811 Administrative personnel and services fee 534,726 Custodian fees 58,574 Transfer and dividend disbursing agent fees and expenses 21,911 Trustees' fees 6,441 Auditing fees 5,743 Legal fees 7,368 Portfolio accounting fees 62,879 Shareholder services fee 1,773,632 Share registration costs 10,877 Printing and postage 6,757 Insurance premiums 2,274 Miscellaneous 12,956 TOTAL EXPENSES 5,341,949 WAIVERS: Waiver of investment adviser fee $ (717,211) Waiver of shareholder services fee (1,418,906) TOTAL WAIVERS (2,136,117) Net expenses 3,205,832 Net investment income $ 33,959,555
See Notes which are an integral part of the Financial Statements Statement of Changes in Net Assets
SIX MONTHS ENDED PERIOD (unaudited) ENDED JANUARY 31, JULY 31, 2000 1999 1 INCREASE (DECREASE) IN NET ASSETS OPERATIONS: Net investment income $ 33,959,555 $ 66,615,537 DISTRIBUTIONS TO SHAREHOLDERS: Distributions from net investment income (33,959,555) (66,615,537) SHARE TRANSACTIONS: Proceeds from sale of shares 2,778,399,365 6,150,124,739 Net asset value of shares issued to shareholders in payment of distributions declared 3,501,859 7,041,055 Cost of shares redeemed (3,007,101,002) (7,050,493,479) CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS (225,199,778) (893,327,685) Change in net assets (225,199,778) (893,327,685) NET ASSETS: Beginning of period 1,465,381,021 2,358,708,706 End of period $ 1,240,181,243 $ 1,465,381,021
1 The Fund has changed its fiscal year-end from September 30 to July 31. See Notes which are an integral part of the Financial Statements Financial Highlights (FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
SIX MONTHS ENDED PERIOD (unaudited) ENDED JANUARY 31, JULY 31, YEAR ENDED SEPTEMBER 30, 2000 1999 1 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 0.02 0.04 0.05 0.05 0.05 0.05 LESS DISTRIBUTIONS: Distributions from net investment income (0.02) (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 RETURN 2 2.44% 3.76% 5.28% 5.16% 5.18% 5.45% RATIOS TO AVERAGE NET ASSETS: Expenses 0.45% 3 0.45% 3 0.45% 0.45% 0.45% 0.45% Net investment income 4.77% 3 4.45% 3 5.17% 5.04% 5.06% 5.28% SUPPLEMENTAL DATA: Net assets, end of period (000 omitted) $1,240,181 $1,465,381 $2,358,709 $1,797,163 $2,660,939 $3,031,247
1 The Fund has changed its fiscal year-end from September 30 to July 31. 2 Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. 3 Computed on an annualized basis. See Notes which are an integral part of the Financial Statements Notes to Financial Statements JANUARY 31, 2000 (UNAUDITED) ORGANIZATION 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 the Trust for U.S. Treasury Obligations (the "Fund"). The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held. The investment objective of the Fund is stability of principal and current income consistent with stability of principal. SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with generally accepted accounting principles. INVESTMENT VALUATIONS The Fund uses the amortized cost method to value its portfolio securities in accordance with Rule 2a-7 under the Act. REPURCHASE AGREEMENTS It is the policy of the Fund to require the custodian bank to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian bank's vault, all securities held as collateral under repurchase agreement transactions. Additionally, procedures have been established by the Fund to monitor, on a daily basis, the market value of each repurchase agreement's collateral to ensure that the value of collateral at least equals the repurchase price to be paid under the repurchase agreement. 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. INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS Interest income and expenses are accrued daily. Bond premium and discount, if applicable, are amortized as required by the Internal Revenue Code, as amended (the "Code"). Dividend income and distributions to shareholders are recorded on the ex-dividend date. 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. FEDERAL TAXES It is the Fund's policy to comply with the provisions of the Code applicable to regulated investment companies and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal tax is necessary. WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS The Fund may engage in when-issued or delayed delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when- issued or delayed delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract. CHANGE IN FISCAL YEAR The Fund has changed its fiscal year-end from September 30 to July 31. USE OF ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated. OTHER Investment transactions are accounted for on a trade date basis. 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). Transactions in shares were as follows:
SIX MONTHS PERIOD ENDED ENDED JANUARY 31, JULY 31, 2000 1999 1 Shares sold 2,778,399,365 6,150,124,739 Shares issued to shareholders in payment of distributions declared 3,501,859 7,041,055 Shares redeemed (3,007,101,002) (7,050,493,479) NET CHANGE RESULTING FROM SHARE TRANSACTIONS (225,199,778) (893,327,685)
1 The Fund has changed its fiscal year-end from September 30 to July 31. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES INVESTMENT ADVISER FEE 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 will waive to the extent of its advisory fee, the amount, if any, by which the Fund's aggregate annual operating expenses, exceed 0.45% of its average daily net assets of the Fund. ADMINISTRATIVE FEE Federated Services Company ("FServ"), under the Administrative Services Agreement, provides the Fund with administrative personnel and services. The fee paid to FServ is based on 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. SHAREHOLDER SERVICES FEE Under the terms of a Shareholder Services Agreement with Federated Shareholder Services Company ("FSSC"), the Fund will pay FSSC up to 0.25% of average daily net assets of the Fund for the period. The fee paid to FSSC is used to finance certain services for shareholders and to maintain shareholder accounts. FSSC may voluntarily choose to waive any portion of its fee. FSSC can modify or terminate this voluntary waiver at any time at its sole discretion. TRANSFER AND DIVIDEND DISBURSING AGENT FEES AND EXPENSES FServ, through its subsidiary FSSC, serves as transfer and dividend disbursing agent for the Fund. The fee paid to FSSC is based on the size, type and number of accounts and transactions made by shareholders. PORTFOLIO ACCOUNTING FEES FServ maintains the Fund's accounting records for which it receives a fee. The fee is based on the level of the Fund's average daily net assets for the period, plus out-of-pocket expenses. GENERAL Certain of the Officers and Trustees of the Trust are Officers and Directors or Trustees of the above companies. Trustees JOHN F. DONAHUE THOMAS G. BIGLEY JOHN T. CONROY, JR. NICHOLAS P. CONSTANTAKIS JOHN F. CUNNINGHAM J. CHRISTOPHER DONAHUE LAWRENCE D. ELLIS, M.D. PETER E. MADDEN CHARLES F. MANSFIELD, JR. JOHN E. MURRAY, JR., J.D., S.J.D. MARJORIE P. SMUTS JOHN S. WALSH Officers JOHN F. DONAHUE Chairman J. CHRISTOPHER DONAHUE President EDWARD C. GONZALES Executive Vice President JOHN W. MCGONIGLE Executive Vice President and Secretary RICHARD B. FISHER Vice President RICHARD J. THOMAS Treasurer LESLIE K. ROSS Assistant Secretary Mutual funds are not bank deposits or obligations, are not guaranteed by any bank, and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other government agency. Investment in mutual funds involves investment risk, including the possible loss of principal. This report is authorized for distribution to prospective investors only when preceded or accompanied by the fund's prospectus which contains facts concerning its objective and policies, management fees, expenses, and other information. [Graphic] Federated World-Class Investment Manager SEMI-ANNUAL REPORT Trust for U.S. Treasury Obligations SEMI-ANNUAL REPORT TO SHAREHOLDERS JANUARY 31, 2000 [Graphic] Federated Trust for U.S. Treasury Obligations Federated Investors Funds 5800 Corporate Drive Pittsburgh, PA 15237-7000 1-800-341-7400 WWW.FEDERATEDINVESTORS.COM Federated Securities Corp., Distributor Cusip 60934N799 8042508 (3/00) [Graphic] -----END PRIVACY-ENHANCED MESSAGE-----