N-Q 1 form.htm

United States

Securities and Exchange Commission

Washington, D.C. 20549

 

Form N-Q

Quarterly Schedule of Portfolio Holdings of Registered Management Investment Companies

 

 

 

 

811-5950

 

(Investment Company Act File Number)

 

 

Money Market Obligations Trust

 

___________________________________________

 

(Exact Name of Registrant as Specified in Charter)

 

 

 

Federated Investors Funds

4000 Ericsson Drive

Warrendale, PA 15086-7561

(Address of Principal Executive Offices)

 

 

(412) 288-1900

(Registrant's Telephone Number)

 

 

John W. McGonigle, Esquire

Federated Investors Tower

1001 Liberty Avenue

Pittsburgh, Pennsylvania 15222-3779

(Name and Address of Agent for Service)

(Notices should be sent to the Agent for Service)

 

 

 

 

 

 

Date of Fiscal Year End: 04/30/16

 

 

Date of Reporting Period: Quarter ended 07/31/15

 

 

 

 

 

 

 

Item 1. Schedule of Investments

 

Federated Automated Government Cash Reserves
Portfolio of Investments
July 31, 2015 (unaudited)
Principal
Amount
    Value
    GOVERNMENT AGENCIES—70.0%  
$5,000,000 1 Federal Farm Credit System Discount Notes, 0.080%, 8/31/2015 $4,999,667
37,555,000 2 Federal Farm Credit System Floating Rate Notes, 0.142% - 0.237%, 8/2/2015 - 10/1/2015 37,555,984
15,705,000   Federal Farm Credit System, 0.190% - 6.125%, 8/17/2015 - 12/29/2015 15,762,382
79,649,000 1 Federal Home Loan Bank System Discount Notes, 0.070% - 0.100%, 8/5/2015 - 9/25/2015 79,642,385
15,500,000 2 Federal Home Loan Bank System Floating Rate Notes, 0.145% - 0.152%, 8/11/2015 - 8/18/2015 15,500,000
8,275,000   Federal Home Loan Bank System, 0.180% - 5.000%, 8/24/2015 - 12/11/2015 8,317,890
    TOTAL GOVERNMENT AGENCIES 161,778,308
    U.S. TREASURY—29.9%  
10,000,000   United States Treasury Bills, 0.045%, 8/27/2015 9,999,675
56,600,000   United States Treasury Notes, 0.250% - 1.250%, 9/30/2015 56,687,521
2,500,000   United States Treasury Notes, 1.250%, 8/31/2015 2,502,380
    TOTAL U.S. TREASURY 69,189,576
    TOTAL INVESTMENTS—99.9%
(AT AMORTIZED COST)3
230,967,884
    OTHER ASSETS AND LIABILITIES - NET—0.1%4 302,365
    TOTAL NET ASSETS—100% $231,270,249
1 Discount rate at time of purchase.
2 Floating rate notes with current rate and maturity or tender date shown.
3 Also represents cost for federal tax purposes.
4 Assets, other than investments in securities, less liabilities.
Note: The categories of investments are shown as a percentage of total net assets at July 31, 2015.
Investment Valuation
Securities are valued at amortized cost. Under the amortized cost valuation method, an investment is valued initially at its cost as determined in accordance with U.S. generally accepted accounting principles. The Fund then adjusts the amount of interest income accrued each day over the term of the investment to account for any difference between the initial cost of the investment and the amount payable at its maturity. If amortized cost is determined not to approximate fair value, the value of the portfolio securities will be determined in accordance with the procedures described below.
The Board of Trustees (the “Trustees”) have ultimate responsibility for determining the fair value of investments. The Trustees have appointed a valuation committee (“Valuation Committee”) comprised of officers of the Fund, Federated Investment Management Company (“Adviser”) and certain of the Adviser's affiliated companies to assist in determining fair value of securities and in overseeing the comparison of amortized cost to market-based value. The Trustees have also authorized the use of pricing services recommended by the Valuation Committee to provide fair value evaluations of the current value of certain investments for purposes of monitoring the relationship of market-based value and amortized cost. The Valuation Committee employs various methods for reviewing third-party pricing-service evaluations including periodic reviews of third-party pricing services' policies, procedures and valuation methods (including key inputs and assumptions) and review of price challenges by the Adviser based on recent market activity. In the event that market quotations and price evaluations are not available for an investment, the Valuation Committee determines the fair value of the investment in accordance with procedures adopted by the Trustees. The Trustees periodically review and approve the fair valuations made by the Valuation Committee and any changes made to the procedures.
Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below:
Level 1—quoted prices in active markets for identical securities.
Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Also includes securities valued at amortized cost.
Level 3—significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.
As of July 31, 2015, all investments of the Fund are valued at amortized cost, which is considered a Level 2 input, in valuing the Fund's assets.
1

Regulatory Matters
On July 23, 2014, the Securities and Exchange Commission voted to amend the rules under the Investment Company Act of 1940 which currently govern the operations of the Fund. A significant change resulting from these amendments will be a requirement that institutional prime funds (i.e. not government or retail as defined in the amendments), transact fund shares based on a market-based Net Asset Value (NAV). This change does not impact government money market funds, and because it is anticipated that the Fund will constitute a government money market fund under the new rules, the Fund will be permitted to continue transacting fund shares at an NAV calculated using the amortized cost valuation method. Among additional disclosure and other requirements, the amendments also will permit a money market fund, or, in certain circumstances, require a money market fund (other than a government money market fund, like the Fund, which satisfies the requirements of the amended rules) to impose liquidity fees on redemptions, and permit a money market fund to limit (or gate) redemptions for up to 10 business days in any 90-day period. The amendments have staggered compliance dates. Compliance with a majority of these amendments will be required on October 14, 2016, two years after the effective date for the rule amendments. The degree to which a money market fund will be impacted by the rule amendments will depend upon the type of fund and type of investors (retail or institutional). At this time, management is evaluating the implications of these amendments and their impact to the Fund's operations, financial statements and accompanying notes.
2
Federated U.S. Treasury Cash Reserves
Portfolio of Investments
July 31, 2015 (unaudited)
Principal
Amount
    Value
    U.S. TREASURY—99.8%  
    U.S. Treasury Bills—37.9%1  
$2,415,000,000   United States Treasury Bills, 0.020% - 0.065%, 8/13/2015 $2,414,981,150
150,000,000   United States Treasury Bills, 0.025%, 8/6/2015 149,999,479
450,000,000   United States Treasury Bills, 0.030% - 0.035%, 8/20/2015 449,992,347
1,853,000,000   United States Treasury Bills, 0.045% - 0.073%, 8/27/2015 1,852,926,312
325,000,000   United States Treasury Bills, 0.053% - 0.145%, 9/17/2015 324,947,533
1,050,000,000   United States Treasury Bills, 0.055% - 0.090%, 10/29/2015 1,049,813,965
500,000,000   United States Treasury Bills, 0.090%, 10/15/2015 499,906,250
200,000,000   United States Treasury Bills, 0.100% - 0.105%, 12/17/2015 199,920,458
200,000,000   United States Treasury Bills, 0.110%, 12/31/2015 199,907,111
    TOTAL 7,142,394,605
    U.S. Treasury Notes—61.9%  
3,460,040,000 2 United States Treasury Floating Rate Notes, 0.096% - 0.121%, 8/4/2015 3,460,165,430
2,918,700,000   United States Treasury Notes, 0.250% - 1.250%, 9/30/2015 2,922,441,007
1,830,000,000   United States Treasury Notes, 0.250% - 4.250%, 8/15/2015 1,832,023,986
379,000,000   United States Treasury Notes, 0.250%, 2/29/2016 379,116,921
591,000,000   United States Treasury Notes, 0.250%, 9/15/2015 591,142,902
825,000,000   United States Treasury Notes, 0.375% - 2.000%, 1/31/2016 831,084,043
462,655,000   United States Treasury Notes, 0.375% - 4.500%, 11/15/2015 467,799,263
200,000,000   United States Treasury Notes, 0.375%, 1/15/2016 200,242,980
330,000,000   United States Treasury Notes, 1.250%, 10/31/2015 330,951,938
350,000,000   United States Treasury Notes, 1.375%, 11/30/2015 351,457,470
300,000,000   United States Treasury Notes, 2.125%, 12/31/2015 302,459,866
    TOTAL 11,668,885,806
    TOTAL U.S. TREASURY 18,811,280,411
    TOTAL INVESTMENTS—99.8%
(AT AMORTIZED COST)3
18,811,280,411
    OTHER ASSETS AND LIABILITIES - NET—0.2%4 34,364,047
    TOTAL NET ASSETS—100% $18,845,644,458
1 Discount rate at time of purchase.
2 Floating rate notes with current rate shown.
3 Also represents cost for federal tax purposes.
4 Assets, other than investments in securities, less liabilities.
Note: The categories of investments are shown as a percentage of total net assets at July 31, 2015.
Investment Valuation
Securities are valued at amortized cost. Under the amortized cost valuation method, an investment is valued initially at its cost as determined in accordance with U.S. generally accepted accounting principles. The Fund then adjusts the amount of interest income accrued each day over the term of the investment to account for any difference between the initial cost of the investment and the amount payable at its maturity. If amortized cost is determined not to approximate fair value, the value of the portfolio securities will be determined in accordance with the procedures described below.
The Board of Trustees (the “Trustees”) have ultimate responsibility for determining the fair value of investments. The Trustees have appointed a valuation committee (“Valuation Committee”) comprised of officers of the Fund, Federated Investment Management Company (“Adviser”) and certain of the Adviser's affiliated companies to assist in determining fair value of securities and in overseeing the comparison of amortized cost to market-based value. The Trustees have also authorized the use of pricing services recommended by the Valuation Committee to provide fair value evaluations of the current value of certain investments for purposes of monitoring the relationship of market-based value and amortized cost. The Valuation Committee employs various methods for reviewing third-party pricing-service evaluations including periodic reviews of third-party
1

pricing services' policies, procedures and valuation methods (including key inputs and assumptions) and review of price challenges by the Adviser based on recent market activity. In the event that market quotations and price evaluations are not available for an investment, the Valuation Committee determines the fair value of the investment in accordance with procedures adopted by the Trustees. The Trustees periodically review and approve the fair valuations made by the Valuation Committee and any changes made to the procedures.
Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below:
Level 1—quoted prices in active markets for identical securities.
Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Also includes securities valued at amortized cost.
Level 3—significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.
As of July 31, 2015, all investments of the Fund are valued at amortized cost, which is considered a Level 2 input, in valuing the Fund's assets.
Regulatory Matters
On July 23, 2014, the Securities and Exchange Commission voted to amend the rules under the Investment Company Act of 1940 which currently govern the operations of the Fund. A significant change resulting from these amendments will be a requirement that institutional prime funds (i.e. not government or retail as defined in the amendments), transact fund shares based on a market-based Net Asset Value (NAV). This change does not impact government money market funds, and because it is anticipated that the Fund will constitute a government money market fund under the new rules, the Fund will be permitted to continue transacting fund shares at an NAV calculated using the amortized cost valuation method. Among additional disclosure and other requirements, the amendments also will permit a money market fund, or, in certain circumstances, require a money market fund (other than a government money market fund, like the Fund, which satisfies the requirements of the amended rules) to impose liquidity fees on redemptions, and permit a money market fund to limit (or gate) redemptions for up to 10 business days in any 90-day period. The amendments have staggered compliance dates. Compliance with a majority of these amendments will be required on October 14, 2016, two years after the effective date for the rule amendments. The degree to which a money market fund will be impacted by the rule amendments will depend upon the type of fund and type of investors (retail or institutional). At this time, management is evaluating the implications of these amendments and their impact to the Fund's operations, financial statements and accompanying notes.
2

 

Item 2. Controls and Procedures

 

(a) The registrant’s Principal Executive Officer and Principal Financial Officer have concluded that the registrant’s disclosure controls and procedures (as defined in rule 30a-3(c) under the Act) are effective in design and operation and are sufficient to form the basis of the certifications required by Rule 30a-(2) under the Act, based on their evaluation of these disclosure controls and procedures within 90 days of the filing date of this report on Form N-Q.

 

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in rule 30a-3(d) under the Act) during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

Item 3. Exhibits

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Registrant Money Market Obligations Trust

 

By /S/ Lori A. Hensler

 

Lori A. Hensler

Principal Financial Officer

 

Date September 23, 2015

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By /S/ J. Christopher Donahue

 

J. Christopher Donahue

Principal Executive Officer

 

Date September 23, 2015

 

 

By /S/ Lori A. Hensler

 

Lori A. Hensler

Principal Financial Officer

 

Date September 23, 2015