Edward Jones Money Market Fund, 485(b)

485BPOS 1 jonesbform.htm Edward Jones Money Market Fund, 485(b)

                                          1933 Act File No. 2-66437
                                          1940 Act File No. 811-2993

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                  Form N-1A

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933             X
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    Pre-Effective Amendment No.         ....................
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    Post-Effective Amendment No.   44  .....................        X
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                                     and/or

REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940     X
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    Amendment No.   37  ....................................        X
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                         EDWARD JONES MONEY MARKET FUND

             (Exact Name of Registrant as Specified in Charter)

                          Federated Investors Funds
                              5800 Corporate Drive
                       Pittsburgh, Pennsylvania 15237-7000
                    (Address of Principal Executive Offices)

                                 (412) 288-1900
                       (Registrant's Telephone Number)

                         John W. McGonigle, Esquire,
                           Federated Investors Tower,
                       Pittsburgh, Pennsylvania 15222-3779
                     (Name and Address of Agent for Service)

It is proposed that this filing will become effective:

X_ immediately upon filing pursuant to paragraph (b)
on _____________, pursuant to paragraph (b)
__ 60 days after filing pursuant to paragraph (a) (i)
__ on _____________, pursuant to paragraph (a) (i).
 __ 75 days after filing pursuant to paragraph (a)(ii)
 __ on _________________ pursuant to paragraph (a)(ii) of Rule 485.

If appropriate, check the following box:

This post-effective amendment designates a new effective date for a previously
filed post-effective amendment.

Copies to:

Matthew G. Maloney, Esquire
Dickstein, Shapiro, Morin & Oshinsky
2101 L Street, N.W.
Washington, D.C. 20037

EdwardJones

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Edward Jones Money Market Fund

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PROSPECTUS

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April 30, 2006

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INVESTMENT SHARES
RETIREMENT SHARES

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A money market mutual fund seeking stability of principal and current income consistent with stability of principal by investing primarily in a portfolio of short -term U.S. Treasury and government agency securities. Shares of the Fund are sold exclusively to customers of Edward D. Jones & Co., L.P. (Edward Jones), which has an equity interest in the investment adviser to the Fund.

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As with all mutual funds, the Securities and Exchange Commission (SEC) has not approved or disapproved these securities or passed upon the adequacy of this prospectus . Any representation to the contrary is a criminal offense.

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Serving Individual Investors Since 1871

Not FDIC Insured * May Lose Value * No Bank Guarantee

CONTENTS

Risk/Return Summary 1

What are the Fund's Fees and Expenses? 3

What are the Fund's Investment Strategies? 4

What are the Principal Securities in Which the Fund Invests? 5

What are the Specific Risks of Investing in the Fund? 6

What Do Shares Cost? 7

How is the Fund Sold? 7

How to Purchase Shares 8

How to Redeem Shares 9

Account and Share Information 11

Who Manages the Fund? 12

Legal Proceedings 14

Financial Information 16

Appendix A: Hypothetical Investment and Expense Information 19

Risk/Return Summary

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

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The Fund is a money market fund that seeks to maintain a stable net asset value (NAV) of $1.00 per Share .

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The Fund's investment objective is stability of principal and current income consistent with stability of principal. While there is no assurance that the Fund will achieve its investment objective, it endeavors to do so by following the strategies and policies described in this prospectus.

WHAT ARE THE FUND'S MAIN INVESTMENT STRATEGIES?

The Fund invests primarily in a portfolio of short-term U.S. Treasury and government agency securities. These investments include repurchase agreements collateralized fully by U.S. Treasury and government agency securities. The dollar-weighted average maturity of the Fund's portfolio will be 90 days or less.

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The Fund intends to invest in the securities of U.S. government-sponsored entities (GSEs), including GSE securities that are not backed by the full faith and credit of the U.S . government, such as those issued by the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, and the Federal Home Loan Bank System. These entities are, however, supported through federal subsidies, loans or other benefits. The Fund may also invest in GSE securities that are supported by the full faith and credit of the U.S. government, such as those issued by the Government National Mortgage Association. Finally, the Fund may invest in a few GSE securities that have no explicit financial support, but which are regarded as having implied support because the federal government sponsors their activities. Such securities include those issued by the Farm Credit System and the Financing Corporation.

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WHAT ARE THE MAIN RISKS OF INVESTING IN THE FUND?

All mutual funds take investment risks. Therefore, even though the Fund is a money market fund that seeks to maintain a stable NAV, it is possible to lose money by investing in the Fund.

The Shares offered by this prospectus are not deposits or obligations of any bank, are not endorsed or 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.

Risk/Return Bar Chart and Table

Historically, the Fund's Investment Shares have maintained a constant $1.00 NAV per Share. The bar chart shows the variability of the Fund's Investment Shares total returns on a calendar year-end basis.

The Fund's Investment Shares are sold without a sales charge (load). The total returns shown in the bar chart above are based upon NAV.

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The Fund's Investment Shares total return for the three-month period from January 1, 2006 to March 31, 2006 was 0. 91%.

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Within the period shown in the bar chart, the Fund's Investment Shares highest quarterly return was 1.45% (quarters ended September 30, 2000 and December 31, 2000). Its lowest quarterly return was 0.06% (quarters ended September 30, 2003 and December 31, 2003).

Average Annual Total Return Table

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The following table represents the Fund's Average Annual Total Returns for the calendar periods ended December 31, 2005.

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	1 Year	5 Years	10 Years	Start of Performance1
Fund:
Investment Shares	<R> 2. 44%</R>	<R> 1. 56%</R>	<R>3. 17%</R>	<R>5. 72%</R>
Retirement Shares	<R> 1. 99%</R>	N/A	N/A	<R>0. 91%</R>

1 The Fund's Investment and Retirement Shares start of performance dates were May 12, 1980 and May 21, 2001, respectively.

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The Fund's Investment Shares 7-Day Net Yield as of December 31, 2005 was 3. 47%. You may call the Fund at 1-800-341-7400 for the current 7-Day Net Yield.

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Past performance is no guarantee of future results. This information provides you with historical performance information so that you can analyze whether the Fund's investment risks are balanced by its potential returns.

What are the Fund's Fees and Expenses?

EDWARD JONES MONEY MARKET FUND

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold the Fund's Investment Shares or Retirement Shares.

Shareholder Fees	Investment Shares	Retirement Shares
Fees Paid Directly From Your Investment
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)	None	None
Maximum Deferred Sales Charge (Load) (as a percentage of original purchase price or redemption proceeds, as applicable)	None	None
Maximum Sales Charge (Load) Imposed on Reinvested Dividends (and other Distributions) (as a percentage of offering price)	None	None
Redemption Fee (as a percentage of amount redeemed, if applicable)	None	None
Exchange Fee	None	None

Annual Fund Operating Expenses (Before Waiver)1
Expenses That are Deducted From Fund Assets (as a percentage of average net assets)
Management Fee2	0.41%	0.41%
Distribution (12b-1) Fee	None	None
Other Expenses3	0.41%	0.97%
Total Annual Fund Operating Expenses	0.82%	1.38%

1 The percentages shown are based on expenses anticipated for the entire fiscal year ending February 28, 2007. However, the rate at which expenses are accrued during the fiscal year may not be constant and, at any particular point, may be greater or less than the stated average percentage. Although not contractually obligated to do so, the administrator expects to waive certain amounts. These are shown below along with the net expenses the Fund expects to pay for the fiscal year ending February 28, 2007.
Total Waiver of Fund Expenses	0.00%4	0.00%4
Total Actual Annual Fund Operating Expenses (after the waiver)5	0.82%	1.38%
2 The management fee is 0.500% of the first $500 million in average daily net assets, 0.475% of the second $500 million in average daily net assets, 0.450% of the third $500 million in average daily net assets, 0.425% of the fourth $500 million in average daily net assets, and 0.400% of the average daily net assets in excess of $2 billion.
3 Includes a shareholder services /account administration fee which will be used to compensate intermediaries for shareholder services or account administrative services. The administrator expects to voluntarily waive a portion of its fee. The administrator can terminate this voluntary waiver at any time. Total other operating expenses paid by the Fund' s Investment Shares and Retirement Shares (after the anticipated voluntary waiver) are expected to be 0.41% and 0.97%, respectively for the fiscal year ending February 28, 2007.
4 Represents less than 0.01%.
5 The Total Actual Annual Fund Operating Expenses (after waivers) for the Fund's Investment Shares and Retirement Shares were 0.84% and 1.29%, respectively, for the fiscal year ended February 28, 2006.

EXAMPLE

This Example is intended to help you compare the cost of investing in the Fund's Investment Shares and Retirement Shares with the cost of investing in other mutual funds.

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The Example assumes that you invest $10,000 in the Fund's Investment Shares and Retirement Shares for the time periods indicated and then redeem all of your Shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's Investment Shares and Retirement Shares operating expenses are before the waiver as shown in the table and remain the same. Although your actual costs and returns may be higher or lower, based on these assumptions your costs would be:

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Share Class	1 Year	3 Years	5 Years	10 Years
Investment Shares	<R>$ 84</R>	<R>$ 262</R>	<R>$ 455</R>	<R>$1, 014</R>
Retirement Shares	<R>$ 141</R>	<R>$ 437</R>	<R>$ 755</R>	<R>$1, 657</R>

What are the Fund's Investment Strategies?

The Fund invests primarily in a portfolio of U.S. Treasury and government agency securities maturing in 397 days or less. These investments include repurchase agreements collateralized fully by U.S. Treasury and government agency securities. The dollar-weighted average maturity of the Fund's portfolio will be 90 days or less.

The Fund's investment adviser (Adviser) targets a dollar-weighted average portfolio maturity range based upon its interest rate outlook. The Adviser formulates its interest rate outlook by analyzing a variety of factors, such as:

current U.S. economic activity and the economic outlook;
current short-term interest rates;
the Federal Reserve Board's policies regarding short-term interest rates; and
the potential effects of foreign economic activity on U.S. short-term interest rates.

The Adviser generally shortens the portfolio's dollar-weighted average maturity when it expects interest rates to rise and extends the maturity when it expects interest rates to fall. The Adviser selects securities used to shorten or extend the portfolio's dollar-weighted average maturity by comparing the returns currently offered by different investments to their historical and expected returns.

What are the Principal Securities in Which the Fund Invests?

FIXED-INCOME SECURITIES

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Fixed-income securities pay interest, dividends or distributions at a specified rate. The rate may be a fixed percentage of the principal or adjusted periodically. In addition, the issuer of a fixed-income security must repay the principal amount of the security, normally within a specified time. Fixed-income securities provide more regular income than equity securities. However, the returns on fixed-income securities are limited and normally do not increase with the issuer's earnings. This limits the potential appreciation of fixed-income securities as compared to equity securities.

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A security's yield measures the annual income earned on a security as a percentage of its price. A security's yield will increase or decrease depending upon whether it costs less (a discount) or more (a premium) than the principal amount. If the issuer may redeem the security before its scheduled maturity, the price and yield on a discount or premium security may change based upon the probability of an early redemption. Securities with higher risks generally have higher yields.

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The following describes the types of fixed-income securities in which the Fund invests:

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U.S. Treasury Securities

U.S. Treasury securities are direct obligations of the federal government of the United States.

Agency Securities

Agency securities are issued or guaranteed by a federal agency or other government sponsored entity (GSE) acting under federal authority. Some GSE securities are supported by the full faith and credit of the United States. These include the Government National Mortgage Association, Small Business Administration, Farm Credit System Financial Assistance Corporation, Farmer's Home Administration, Federal Financing Bank, General Services Administration, Department of Housing and Urban Development, Export-Import Bank, Overseas Private Investment Corporation, and Washington Metropolitan Area Transit Authority Bonds.

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Other GSE securities receive support through federal subsidies, loans or other benefits. For example, the U.S. Treasury is authorized to purchase specified amounts of securities issued by (or otherwise make funds available to) the Federal Home Loan Bank System, Federal Home Loan Mortgage Corporation, Federal National Mortgage Association, Student Loan Marketing Association, and Tennessee Valley Authority in support of such obligations.

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A few GSE securities have no explicit financial support, but are regarded as having implied support because the federal government sponsors their activities. These include the Farm Credit System, Financing Corporation, and Resolution Funding Corporation.

Investors regard agency securities as having low credit risks, but not as low as Treasury securities. The Fund treats mortgage-backed securities guaranteed by a GSE as if issued or guaranteed by a federal agency.

Although such a guarantee protects against credit risks, it does not reduce market and prepayment risks.

Repurchase Agreements

Repurchase agreements are transactions in which a Fund buys a security from a dealer or bank and agrees to sell the security back at a mutually agreed-upon time and price. The repurchase price exceeds the sale price, reflecting the Fund's return on the transaction. This return is unrelated to the interest rate on the underlying security. The Fund will enter into repurchase agreements only with banks and other recognized financial institutions, such as securities dealers, deemed creditworthy by the Adviser. Repurchase agreements are subject to credit risks.

What are the Specific Risks of Investing in the Fund?

INTEREST RATE RISK

Prices of fixed-income securities rise and fall in response to changes in the interest rate paid by similar securities. Generally, when interest rates rise, prices of fixed-income securities fall. However, market factors, such as the demand for particular fixed-income securities, may cause the price of certain fixed-income securities to fall while the prices of other securities rise or remain unchanged.

Interest rate changes have a greater effect on the price of fixed-income securities with longer maturities. Money market funds try to minimize this risk by purchasing short-term securities.

CREDIT RISK

Credit risk includes the possibility that a party to a transaction involving the Fund will fail to meet its obligations. This could cause the Fund to lose the benefit of the transaction or prevent the Fund from selling or buying other securities to implement its investment strategy.

What Do Shares Cost?

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You can purchase or redeem Shares any day the New York Stock Exchange (NYSE) is open. The Fund attempts to stabilize the NAV of its Shares at $1.00 by valuing the portfolio securities using the amortized cost method. The Fund cannot guarantee that its NAV will always remain at $1.00 per Share. The Fund does not charge a front-end sales charge.

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When the Fund receives your transaction request in proper form (as described in this prospectus), it is processed at the next determined NAV. NAV is determined at noon and 1:00 p.m. (Eastern time) and as of the end of regular trading on the NYSE (normally 4:00 p.m. Eastern time) each day the NYSE is open.

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THE EDWARD JONES FSA AND CFO ACCOUNTS

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These programs provide a convenient method for investment by linking your Fund account and the Edward Jones Brokerage Account. As a Full Service Account (FSA) or Complete Financial Organization (CFO) account subscriber, free credit balances in your Brokerage Account will automatically invest in your Fund account on a daily basis. FSA and CFO Accounts also permit daily, automatic redemption of Fund Shares to satisfy debit balances in your Brokerage Accounts.

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How is the Fund Sold?

The Fund offers two Share classes: Investment Shares and Retirement Shares, each representing interests in a single portfolio of securities.

The Fund's Distributor, Federated Securities Corp., markets the Shares described in this prospectus exclusively through Edward Jones to its customers. The Fund is sold largely as a "sweep" investment for otherwise uninvested cash in customers' brokerage accounts.

The Distributor is a subsidiary of Federated Investors, Inc. (Federated).

How to Purchase Shares

You may purchase Shares by check or wire. Fund Shares purchased before 2:00 p.m. (Eastern time) earn dividends that day. Payment should be made in U.S. dollars and drawn on a U.S. bank.

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When payment is made by check, the order is considered received after the check is converted into federal funds by Edward Jones . This is normally within three business days of receiving the check. If your check does not clear, your purchase will be canceled and you could be liable for any losses or fees the Fund incurs. Checks originally payable to someone other than you or Edward Jones (third-party checks) are not accepted.

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When payment is made by wire with federal funds, the order is considered received within two business days. The Fund reserves the right to reject any request to purchase Shares.

BY CHECK

To purchase Shares by check:

sign the Account Authorization and Acknowledgement Form;
complete and sign a checkwriting application;1
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enclose a check made payable to Edward Jones; and
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send the check and any completed forms to your local Edward Jones office with instructions that it be invested in the Fund.
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1 This form is available from your Edward Jones investment representative. It is optional but recommended.

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BY WIRE

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Shares may be purchased with federal funds sent by Federal Reserve or bank wire. This method results in a more rapid investment in Fund Shares. Contact your Edward Jones investment representative before wiring any funds. You cannot purchase Shares by wire on holidays when wire transfers are restricted.

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RETIREMENT INVESTMENTS

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You may purchase Retirement Shares only in retirement accounts (such as qualified plans and IRAs). You may also purchase Investment Shares in a retirement account, however, you must maintain a $2,500 average monthly account balance or a $3.00 fee will apply. Call your Edward Jones investment representative for information on retirement investments.

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BY AUTOMATED CLEARING HOUSE (ACH)

Once you have opened an account, you may purchase additional Shares through a depository institution that is an ACH member.

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How to Redeem Shares

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You may redeem Shares by submitting a request by telephone or by mail to your Edward Jones investment representative.

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BY TELEPHONE

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You may redeem Shares by calling your Edward Jones investment representative.

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If you call before 2:00 p.m. (Eastern time), your redemption will be mailed to you the same day. You will not receive that day's dividend.

If you call after 2:00 p.m. (Eastern time), your redemption will be mailed to you the following business day. You will receive that day's dividend.

BY MAIL

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You may redeem Shares by mailing a written request to Edward Jones. Call your Edward Jones investment representative for specific instructions before redeeming by letter.

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Your redemption request will be processed on the day the Fund receives your written request in proper form. Dividends are paid up to and including the day that a redemption request is processed.

All written requests must include:

Fund Name and Share Class, account number and account registration;
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amount to be redeemed ;
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signatures of all shareholders exactly as registered .
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PAYMENT METHODS FOR REDEMPTIONS

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Your redemption proceeds will be mailed by check to your address of record. The following payment options are available. These payment options require a signature guarantee if they were not established when the account was opened:

an electronic transfer to your account at a financial institution that is an ACH member; or
wire payment to your account at a domestic commercial bank that is a Federal Reserve System member.

Redemption in Kind

Although the Fund intends to pay Share redemptions in cash, it reserves the right to pay the redemption price in whole or in part by a distribution of the Fund's portfolio securities.

LIMITATIONS ON REDEMPTION PROCEEDS

Redemption proceeds normally are wired or mailed within one business day after receiving a request in proper form. Payment may be delayed up to seven days:

to allow your purchase to clear;
during periods of market volatility; or
when a shareholder's trade activity or amount adversely impacts the Fund's ability to manage its assets.

You will not accrue interest or dividends on uncashed checks from the Fund if those checks are undeliverable and returned to the Fund.

DISTRIBUTIONS FROM RETIREMENT ACCOUNTS

In the absence of your specific instructions, 10% of the value of your distribution from a retirement account with Edward Jones may be withheld for taxes. This withholding only applies to certain types of retirement accounts.

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CHECKWRITING AND DEBIT CARD PRIVILEGE

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You may request checks and a debit card to redeem your Investment Shares. Your account will continue to receive the daily dividend declared on the Investment Shares being redeemed until the check or debit card transaction is presented for payment. You may not write checks or use the debit card to close an account. The checkwriting and debit card privilege may be discontinued at any time. For further information, including checkwriting and debit card requirements, contact your Edward Jones investment representative.

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ADDITIONAL CONDITIONS

Share Certificates

The Fund does not issue share certificates.

Account and Share Information

ACCOUNT ACTIVITY

You will receive periodic statements reporting all account activity, including dividends and capital gains paid. If you purchase Shares by wire, you begin earning dividends on the third business day after receipt of the wired funds by Edward Jones. If you purchase Shares by check, you begin earning dividends on the fourth business day after Edward Jones receives your check. In either case, you earn dividends through the day your redemption request is received.

DIVIDENDS AND CAPITAL GAINS

The Fund declares any dividends daily and pays them monthly to shareholders. If you purchase Shares by wire, you begin earning dividends on the third business day after receipt of the wired funds by Edward Jones. If you purchase Shares by check, you begin earning dividends on the fourth business day after Edward Jones receives your check. In either case, you earn dividends through the day your redemption request is received.

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The Fund does not expect to realize any capital gains or losses. If capital gains or losses were to occur, they could result in an increase or decrease in dividends. The Fund pays any capital gains at least annually. Your dividends and capital gains distributions will be automatically reinvested in additional Shares without a sales charge .

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ACCOUNTS WITH LOW BALANCES

Due to the high cost of maintaining accounts with low balances, you must maintain a $2,500 average monthly account balance in any month in Investment Shares. Otherwise, Edward Jones will charge you a $3.00 fee for that month. Some CFO accounts may not be subject to the average monthly account balance requirement. Retirement Share accounts may be subject to the policy in the future.

TAX INFORMATION

Edward Jones sends an annual statement of your account activity to assist you in completing your federal, state, and local tax returns. Fund distributions of dividends and capital gains are taxable to you whether paid in cash or reinvested in the Fund. Dividends are taxable as ordinary income; capital gains are taxable at different rates depending upon the length of time the Fund holds its assets.

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Fund distributions are expected to be primarily dividends. Redemptions are taxable sales. Please consult your tax adviser regarding your federal, state, and local tax liability.

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FREQUENT TRADING POLICIES

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Given the short-term nature of the Fund's investments and its use of the amortized cost method for calculating the NAV of Fund Shares, the Fund does not anticipate that in the normal case frequent or short-term trading into and out of the Fund will have significant adverse consequences for the Fund and its shareholders. For this reason and because the Fund is intended to be used as a liquid short-term investment, the Fund's Board has not adopted policies or procedures to monitor or discourage frequent or short-term trading of the Fund's Shares. Regardless of their frequency or short-term nature, purchases and redemptions of Fund Shares can have adverse effects on the management of the Fund's portfolio and its performance.

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PORTFOLIO HOLDINGS INFORMATION

Complete listings of the Fund's portfolio holdings as of the end of its second and fourth fiscal quarters are contained in the Fund's Annual and Semi-Annual Reports to shareholders, which are filed with the SEC on Form N-CSR. Complete listings of the Fund's portfolio holdings as of the end of its first and third fiscal quarters are contained in the Reports on Form N-Q filed with the Securities and Exchange Commission (SEC). These reports are filed with the SEC within 60 days after the end of the fiscal quarter and may be accessed from the EDGAR Database on the SEC's website at www.sec.gov.

Who Manages the Fund?

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The Board of Trustees (the "Board") governs the Fund. The Board selects and oversees the Adviser, Passport Research, Ltd. The Adviser manages the Fund's assets, including buying and selling portfolio securities. The Adviser is a limited partnership whose general partner is Federated Investment Management Company, a subsidiary of Federated, with 50.5% interest.

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Federated Advisory Services Company (FASC) an affiliate of the Adviser, provides certain support services to the Adviser. The fee for these services is paid by the Adviser and not by the Fund. The address of the Adviser and FASC is Federated Investors Tower, 1001 Liberty Avenue, Pittsburgh, PA 15222-3779.

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The Adviser and other subsidiaries of Federated advise approximately 136 equity, fixed-income, and money market mutual funds as well as a variety of customized separately managed accounts, which totaled approximately $ 213 billion in assets as of December 31, 2005. Federated was established in 1955 and is one of the largest investment managers in the United States with approximately 1, 305 employees. Federated provides investment products to more than 5, 500 investment professionals and institutions.

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The limited partner of the Adviser is Edward D. Jones & Co., L.P., with a 49.5% interest. The partners in the Adviser allocate the expenses and revenues of the partnership according to a mutually agreed-upon formula. Last year, the general partner received approximately 28% of the Adviser's revenues, while Edward Jones received approximately 72%. This allocation may vary depending upon total assets in the Fund or other factors. The Fund pays Shareholder Service Fees up to 0.25% of average net assets to Edward Jones for providing services to shareholders and maintaining shareholder accounts. Edward Jones provides shareholder services, administrative services, transfer agent services, and marketing services to the Fund and the 744, 976 accounts (Investment Class) and 2, 163, 894 accounts (Retirement Class) that its clients maintain in the Fund. During the Fund's last fiscal year, Edward Jones received approximately $ 78. 6 million in total (approximately 81. 0% of total Fund expenses) for its services. Edward Jones would have received $ 67. 65 in total fees and payments with respect to a shareholder maintaining an investment of $10,000 in Investment Shares or $ 104. 13 with respect to a shareholder maintaining an investment of $10,000 in Retirement Shares during that year.

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ADDITIONAL PAYMENTS TO EDWARD JONES

The Distributor may make payments out of its own resources (including items of material value) to Edward Jones to support the sale of Shares or provide services to the Fund or other Funds distributed by the Distributor and their respective shareholders. The amounts of these payments could be significant, and may create an incentive for Edward Jones or its employees or associated persons to recommend or sell Shares of the Fund to you. In some cases, such payments may be made by or funded from the resources of companies affiliated with the Distributor. Such payments are not reflected in the fees and expenses listed in the fee table section of the Fund's prospectus because they are not paid by the Fund.

ADVISORY FEES

The Adviser receives an annual investment advisory fee based on the Fund's average daily net assets as shown in the chart below.

Average Daily Net Assets		Advisory Fee as Percentage of Average Daily Net Assets
First $500 million		0.500%
Second $500 million		0.475%
Third $500 million		0.450%
Fourth $500 million		0.425%
Over $2 billion		0.400%

Legal Proceedings

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FEDERATED

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Since October 2003, Federated and related entities (collectively, "Federated"), and various Federated funds ("Funds"), have been named as defendants in several class action lawsuits now pending in the United States District Court for the District of Maryland. The lawsuits were purportedly filed on behalf of people who purchased, owned and/or redeemed shares of Federated-sponsored mutual funds during specified periods beginning November 1, 1998. The suits are generally similar in alleging that Federated engaged in illegal and improper trading practices including market timing and late trading in concert with certain institutional traders, which allegedly caused financial injury to the mutual fund shareholders. These lawsuits began to be filed shortly after Federated's first public announcement that it had received requests for information on shareholder trading activities in the Funds from the SEC, the Office of the New York State Attorney General ("NYAG"), and other authorities. In that regard, on November 28, 2005, Federated announced that it had reached final settlements with the SEC and the NYAG with respect to those matters. Specifically, the SEC and NYAG settled proceedings against three Federated subsidiaries involving undisclosed market timing arrangements and late trading. The SEC made findings: that Federated Investment Management Company ("FIMC"), an SEC-registered investment adviser to various Funds, and Federated Securities Corp., an SEC-registered broker-dealer and distributor for the Funds, violated provisions of the Investment Advisers Act and Investment Company Act by approving, but not disclosing, three market timing arrangements, or the associated conflict of interest between FIMC and the funds involved in the arrangements, either to other fund shareholders or to the funds' board; and that Federated Shareholder Services Company, formerly an SEC-registered transfer agent, failed to prevent a customer and a Federated employee from late trading in violation of provisions of the Investment Company Act. The NYAG found that such conduct violated provisions of New York State law. Federated entered into the settlements without admitting or denying the regulators' findings. As Federated previously reported in 2004, it has already paid approximately $8.0 million to certain funds as determined by an independent consultant. As part of these settlements, Federated agreed to pay disgorgement and a civil money penalty in the aggregate amount of an additional $72 million and, among other things, agreed that it would not serve as investment adviser to any registered investment company unless: (i) at least 75% of the fund's directors are independent of Federated; (ii) the chairman of each such fund is independent of Federated; (iii) no action may be taken by the fund's board or any committee thereof unless approved by a majority of the independent trustees of the fund or committee; respectively, and (iv) the fund appoints a "senior officer" who reports to the independent trustees and is responsible for monitoring compliance by the fund with applicable laws and fiduciary duties and for managing the process by which management fees charged to a fund are approved. The settlements are described in Federated's announcement which, along with previous press releases and related communications on those matters, is available in the "About Us" section of Federated's website at FederatedInvestors.com.

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Federated and various Funds have also been named as defendants in several additional lawsuits, the majority of which are now pending in the United States District Court for the Western District of Pennsylvania, alleging, among other things, excessive advisory and Rule 12b-1 fees .

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The Board of the Funds has retained the law firm of Dickstein Shapiro Morin & Oshinsky LLP to represent the Funds in these lawsuits. Federated and the Funds, and their respective counsel, are reviewing the allegations and intend to defend this litigation. Additional lawsuits based upon similar allegations may be filed in the future. The potential impact of these lawsuits, all of which seek unquantified damages, attorneys' fees, and expenses, and future potential similar suits is uncertain. Although we do not believe that these lawsuits will have a material adverse effect on the Funds, there can be no assurance that these suits, ongoing adverse publicity and/or other developments resulting from the regulatory investigations will not result in increased Fund redemptions, reduced sales of Fund shares, or other adverse consequences for the Funds.

</R>

<R>

EDWARD JONES

</R>

<R>

In the normal course of business, Edward Jones is named, from time to time, as a defendant in various legal actions, including arbitrations, class actions, and other litigation. Certain of these legal actions include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. Edward Jones is involved, from time to time, in investigations and proceedings by governmental and self-regulatory agencies, certain of which may result in adverse judgments, fines, or penalties. Recently, the number of legal actions and investigations has increased with a focus on mutual fund issues among many firms in the financial services industry, including Edward Jones.

</R>

<R>

The potential impact of these legal proceedings is uncertain. As of the date of this prospectus, Edward Jones does not believe that any current or anticipated legal proceedings will have a material adverse impact on Edward Jones or the Fund. However, there can be no assurance that these suits, the ongoing adverse publicity and/or other developments resulting from the regulatory investigations will not result in increased Fund redemptions, reduced sales of Fund shares, or other adverse consequences for the Fund.

</R>

Financial Information

FINANCIAL HIGHLIGHTS

<R>

The Financial Highlights will help you understand the Fund's financial performance for its past five fiscal years, or since inception, if the life of the Share Class is shorter. Some of the information is presented on a per Share basis. Total returns represent the rate an investor would have earned (or lost) on an investment in the Fund, assuming reinvestment of any dividends and capital gains.

</R>

<R>

This information has been audited by Ernst & Young LLP, an independent registered public accounting firm, whose report, along with the Fund's audited financial statements, is included in the Annual Report.

</R>

Financial Highlights-Investment Shares

(For a Share Outstanding Throughout Each Period)

Year Ended February 28 or 29	2006			2005			2004			2003			2002
Net Asset Value, Beginning of Period	$1.00			$1.00			$1.00			$1.00			$1.00
Income From Investment Operations:
Net investment income	0.027			0.008			0.003			0.010			0.027
Less Distributions:
Distributions from net investment income	(0.027	)		(0.008	)		(0.003	)		(0.010	)		(0.027	)
Net Asset Value, End of Period	$1.00			$1.00			$1.00			$1.00			$1.00
Total Return1	2.77	%		0.77	%		0.30	%		0.97	%		2.75	%

Ratios to Average Net Assets:
Net expenses	0.84	%		0.83	%		0.86	%		0.84	%		0.83	%
Net investment income	2.79	%		0.76	%		0.30	%		0.96	%		2.75	%
Expense waiver/reimbursement2	0.00	%3		0.00	%3		0.00	%3		--			--
Supplemental Data:
Net assets, end of period (000 omitted)	$9,659,931		$7,770,049			$8,134,397			$9,090,066			$9,722,644

1 Based on net asset value. Total returns for periods of less than one year are not annualized.

2 This expense decrease is reflected in both the net expense and net investment income ratios shown above.

3 Represents less than 0.01%.

Further information about the Fund's performance is contained in the Fund's Annual Report, dated February 28, 2006, which can be obtained free of charge.

Financial Highlights-Retirement Shares

(For a Share Outstanding Throughout Each Period)

	Year Ended February 28 or 29,												Period Ended
	2006			2005			2004			2003			2/28/20021
Net Asset Value, Beginning of Period	$1.00			$1.00			$1.00			$1.00			$1.00
Income From Investment Operations:
Net investment income	0.023			0.004			0.001			0.005			0.014
Less Distributions:
Distributions from net investment income	(0.023	)		(0.004	)		(0.001	)		(0.005	)		(0.014	)
Net Asset Value, End of Period	$1.00			$1.00			$1.00			$1.00			$1.00
Total Return2	2.31	%		0.41	%		0.08	%		0.50	%		1.41	%

Ratios to Average Net Assets:
Net expenses	1.29	%		1.19	%		1.08	%		1.30	%		1.30	%3
Net investment income	2.28	%		0.40	%		0.08	%		0.49	%		1.78	%3
Expense waiver/reimbursement4	0.02	%		0.11	%		0.12	%		--			--
Supplemental Data:
Net assets, end of period (000 omitted)	$2,328,836		$2,179,354			$2,254,070			$2,235,185			$1,826,666

1 Reflects operations for the period from May 21, 2001 (date of initial public investment) to February 28, 2002.

2 Based on net asset value. Total returns for periods of less than one year are not annualized.

3 Computed on annualized basis.

4 This expense decrease is reflected in both the net expense and net investment income ratios shown above.

Further information about the Fund's performance is contained in the Fund's Annual Report, dated February 28, 2006, which can be obtained free of charge.

<R>

Appendix A: Hypothetical Investment and Expense Information

</R>

<R>

The following charts provide additional hypothetical information about the effect of the Fund's expenses, including investment advisory fees and other Fund costs, on the Fund's assumed returns over a 10-year period. The chart shows the estimated expenses that would be incurred in respect of a hypothetical investment of $10,000, assuming a 5% return each year, and no redemption of Shares. The chart also assumes that the Fund's annual expense ratio stays the same throughout the 10-year period and that all dividends and distributions are reinvested. The annual expense ratio used in the chart is the same as stated in the "Fees and Expenses" table of this prospectus (and thus may not reflect any fee waiver or expense reimbursement currently in effect). The maximum amount of any sales charge that might be imposed on the purchase of Shares (and deducted from the hypothetical initial investment of $10,000; the "Front-End Sales Charge") is reflected in the "Hypothetical Expenses" column. The hypothetical investment information does not reflect the effect of charges (if any) normally applicable to redemptions of Shares (e.g., deferred sales charges, redemption fees). Mutual fund returns, as well as fees and expenses, may fluctuate over time, and your actual investment returns and total expenses may be higher or lower than those shown below.

</R>

<R>

EDWARD D. JONES MONEY MARKET FUND - INVESTMENT SHARES
ANNUAL EXPENSE RATIO: 0.82%
MAXIMUM FRONT-END SALES CHARGE: 0.00%

</R>

<R>Year</R>	<R>Hypothetical Beginning Investment</R>	<R>Hypothetical Performance Earnings</R>	<R>Investment After Returns</R>	<R>Hypothetical Expenses </R>	<R>Hypothetical Ending Investment</R>
<R>1</R>	<R>$10,000.00</R>	<R>$ 500.00</R>	<R>$10,500.00</R>	<R>$ 83.71</R>	<R>$10,418.00</R>
<R>2</R>	<R>$10,418.00</R>	<R>$ 520.90</R>	<R>$10,938.90</R>	<R>$ 87.21</R>	<R>$10,853.47</R>
<R>3</R>	<R>$10,853.47</R>	<R>$ 542.67</R>	<R>$11,396.14</R>	<R>$ 90.86</R>	<R>$11,307.15</R>
<R>4</R>	<R>$11,307.15</R>	<R>$ 565.36</R>	<R>$11,872.51</R>	<R>$ 94.66</R>	<R>$11,779.79</R>
<R>5</R>	<R>$11,779.79</R>	<R>$ 588.99</R>	<R>$12,368.78</R>	<R>$ 98.61</R>	<R>$12,272.19</R>
<R>6</R>	<R>$12,272.19</R>	<R>$ 613.61</R>	<R>$12,885.80</R>	<R>$ 102.74</R>	<R>$12,785.17</R>
<R>7</R>	<R>$12,785.17</R>	<R>$ 639.26</R>	<R>$13,424.43</R>	<R>$ 107.03</R>	<R>$13,319.59</R>
<R>8</R>	<R>$13,319.59</R>	<R>$ 665.98</R>	<R>$13,985.57</R>	<R>$ 111.50</R>	<R>$13,876.35</R>
<R>9</R>	<R>$13,876.35</R>	<R>$ 693.82</R>	<R>$14,570.17</R>	<R>$ 116.16</R>	<R>$14,456.38</R>
<R>10</R>	<R>$14,456.38</R>	<R>$ 722.82</R>	<R>$15,179.20</R>	<R>$ 121.02</R>	<R>$15,060.66</R>
<R>Cumulative</R>		<R>$6,053.41</R>		<R>$1,013.50</R>

<R>

EDWARD D. JONES MONEY MARKET FUND - RETIREMENT SHARES
ANNUAL EXPENSE RATIO: 1.38%
MAXIMUM FRONT-END SALES CHARGE: 0.00%

</R>

<R>Year</R>	<R>Hypothetical Beginning Investment</R>	<R>Hypothetical Performance Earnings</R>	<R>Investment After Returns</R>	<R>Hypothetical Expenses </R>	<R>Hypothetical Ending Investment</R>
<R>1</R>	<R>$10,000.00</R>	<R>$ 500.00</R>	<R>$10,500.00</R>	<R>$ 140.50</R>	<R>$10,362.00</R>
<R>2</R>	<R>$10,362.00</R>	<R>$ 518.10</R>	<R>$10,880.10</R>	<R>$ 145.85</R>	<R>$10,737.10</R>
<R>3</R>	<R>$10,737.10</R>	<R>$ 536.86</R>	<R>$11,273.96</R>	<R>$ 150.85</R>	<R>$11,125.78</R>
<R>4</R>	<R>$11,125.78</R>	<R>$ 556.29</R>	<R>$11,682.07</R>	<R>$ 156.31</R>	<R>$11,528.53</R>
<R>5</R>	<R>$11,528.53</R>	<R>$ 576.43</R>	<R>$12,104.96</R>	<R>$ 161.97</R>	<R>$11,945.86</R>
<R>6</R>	<R>$11,945.86</R>	<R>$ 597.29</R>	<R>$12,543.15</R>	<R>$ 167.84</R>	<R>$12,378.30</R>
<R>7</R>	<R>$12,378.30</R>	<R>$ 618.92</R>	<R>$12,997.22</R>	<R>$ 173.91</R>	<R>$12,826.39</R>
<R>8</R>	<R>$12,826.39</R>	<R>$ 641.32</R>	<R>$13,467.71</R>	<R>$ 180.21</R>	<R>$13,290.71</R>
<R>9</R>	<R>$13,290.71</R>	<R>$ 664.54</R>	<R>$13,955.25</R>	<R>$ 186.73</R>	<R>$13.771.83</R>
<R>10</R>	<R>$13,771.83</R>	<R>$ 688.59</R>	<R>$14,460.42</R>	<R>$ 193.49</R>	<R>$14,270.37</R>
<R>Cumulative</R>		<R>$5,898.34</R>		<R>$1,657.39</R>

<R>

A Statement of Additional Information (SAI) dated April 30, 2006, is incorporated by reference into this prospectus. Additional information about the Fund and its investments is contained in the Fund's SAI and Annual and Semi-Annual Reports to shareholders as they become available. The SAI contains a description of the Fund's policies and procedures with respect to the disclosure of its portfolio securities. To obtain the SAI, Annual Report, Semi-Annual Report and other information without charge, and to make inquiries, call your Edward Jones investment representative or the Fund at 1-800-341-7400.

</R>

<R>

You can obtain information about the Fund (including the SAI) by writing to or visiting the SEC's Public Reference Room in Washington, DC. You may also access Fund information from the EDGAR Database on the SEC's website at www.sec.gov. You can purchase copies of this information by contacting the SEC by email at publicinfo@sec.gov or by writing to the SEC's Public Reference Section, Washington, DC 20549-0102. Call 1-202-942-8090 for information on the Public Reference Room's operations and copying fees.

</R>

Edward Jones
201 Progress Parkway
Maryland Heights, Missouri 63043
1-800-331-2451

Investment Company Act File No. 811-2993

Cusip 48019P102
Cusip 48019P201

<R>

8032801A (4/ 06)

</R>

EdwardJones

EDWARD JONES MONEY MARKET FUND

STATEMENT OF ADDITIONAL INFORMATION
<R>

APRIL 30, 2006

INVESTMENT SHARES
RETIREMENT SHARES

This Statement of Additional Information (SAI) is not a prospectus. Read this
SAI in conjunction with the prospectus for Edward Jones Money Market Fund
(Fund), dated April 30, 2006.

This SAI incorporates by reference the Fund's Annual Report. Obtain the
prospectus or the Annual Report without charge by contacting your Edward D.
Jones & Co., L.P. (Edward Jones) investment representative.

CONTENTS

How is the Fund Organized?.................1
--------------------------
Securities in Which the Fund Invests.......1
------------------------------------
What Do Shares Cost?.......................7
--------------------
How is the Fund Sold?......................8
---------------------
Redemption in Kind........................ 8
------------------
Massachusetts Partnership Law..............8
-----------------------------
Account and Share Information..............9
-----------------------------
Tax Information............................9
---------------
Who Manages and Provides Services to the Fund? 9
----------------------------------------------
How Does the Fund Measure Performance?....18
--------------------------------------
Who is Federated Investors, Inc.?.........19
---------------------------------
Financial Information.....................20
---------------------
Addresses.................................21
Appendix..................................22
--------
</R>

[GRAPHIC OMITTED][GRAPHIC OMITTED]

HOW IS THE FUND ORGANIZED?

The Fund is a diversified open-end, management investment company that was
established under the laws of the Commonwealth of Massachusetts on January 9,
1980. The Board of Trustees (the "Board") has established two classes of shares
of the Fund, known as Investment Shares and Retirement Shares (Shares). This SAI
relates to both classes of Shares. The Fund's investment adviser is Passport
Research, Ltd. (Adviser). The Adviser is a limited partnership, jointly owned by
Edward Jones and a subsidiary of Federated Investors, Inc.

SECURITIES IN WHICH THE FUND INVESTS

<R>

In pursuing its investment strategy, the Fund may invest in the following
securities for any purpose that is consistent with its investment objective:

The Fund is permitted to invest in any high quality money market instrument. As
a matter of investment policy, however, the Fund presently limits its
investments to the U.S. government securities and government agency securities
described in the prospectus and repurchase agreements collateralized by U.S.
government and government agency securities. The purpose of this policy is to
minimize any credit risk associated with the Fund's investments. This policy may
be changed at the discretion of the Board.
</R>

SECURITIES DESCRIPTIONS AND TECHNIQUES

FIXED-INCOME SECURITIES
Fixed-income securities pay interest, dividends or distributions at a specified
rate. The rate may be a fixed percentage of the principal or adjusted
periodically. In addition, the issuer of a fixed-income security must repay the
principal amount of the security, normally within a specified time. Fixed-income
securities provide more regular income than equity securities. However, the
returns on fixed-income securities are limited and normally do not increase with
the issuer's earnings. This limits the potential appreciation of fixed-income
securities as compared to equity securities.

A security's yield measures the annual income earned on a security as a
percentage of its price. A security's yield will increase or decrease depending
upon whether it costs less (a discount) or more (a premium) than the principal
amount. If the issuer may redeem the security before its scheduled maturity, the
price and yield on a discount or premium security may change based upon the
probability of an early redemption. Securities with higher risks generally have
higher yields.

In addition to the U.S. government securities and government agency securities
described in the prospectus, and subject to its present policy described above,
the following describes types of fixed-income securities in which the Fund may
invest:

Corporate Debt Securities
Corporate debt securities are fixed-income securities issued by businesses.
Notes, bonds, debentures and commercial paper are the most prevalent types of
corporate debt securities. The Fund may also purchase interests in bank loans to
companies. The credit risks of corporate debt securities vary widely among
issuers.

Commercial Paper
Commercial paper is an issuer's obligation with a maturity of less than nine
months. Companies typically issue commercial paper to pay for current
expenditures. Most issuers constantly reissue their commercial paper and use the
proceeds (or bank loans) to repay maturing paper. If the issuer cannot continue
to obtain liquidity in this fashion, its commercial paper may default. The short
maturity of commercial paper reduces both the market and credit risks as
compared to other debt securities of the same issuer.

Demand Instruments
Demand instruments are corporate debt securities that the issuer must repay upon
demand. Other demand instruments require a third party, such as a dealer or
bank, to repurchase the security for its face value upon demand. The Fund treats
demand instruments as short-term securities, even though their stated maturity
may extend beyond one year.

Bank Instruments
Bank instruments are unsecured interest bearing deposits with banks. Bank
instruments include, but are not limited to, bank accounts, time deposits,
certificates of deposit and banker's acceptances. Yankee instruments are
denominated in U.S. dollars and issued by U.S. branches of foreign banks.
Eurodollar instruments are denominated in U.S. dollars and issued by non-U.S.
branches of U.S. or foreign banks.
For purposes of applying the Fund's concentration limitation, bank instruments
also include fixed-income securities credit enhanced by a bank.

Asset Backed Securities
Asset backed securities are payable from pools of obligations other than
mortgages. Most asset backed securities involve consumer or commercial debts
with maturities of less than ten years. However, almost any type of fixed-income
assets (including other fixed-income securities) may be used to create an asset
backed security. Asset backed securities may take the form of commercial paper,
notes or pass-through certificates. Asset backed securities have prepayment
risks.

Zero Coupon Securities
Zero coupon securities do not pay interest or principal until final maturity,
unlike debt securities that provide periodic payments of interest (referred to
as a coupon payment). Investors buy zero coupon securities at a price below the
amount payable at maturity. The difference between the purchase price and the
amount paid at maturity represents interest on the zero coupon security.
Investors must wait until maturity to receive interest and principal, which
increases the interest rate and credit risk of a zero coupon security.

Municipal Securities
Municipal securities are issued by states, counties, cities and other political
subdivisions and authorities.

Mortgage Backed Securities
Mortgage backed securities represent interests in pools of mortgages. The
mortgages that comprise a pool normally have similar interest rates, maturities
and other terms. Mortgages may have fixed or adjustable interest rates.
Interests in pools of adjustable rate mortgages are known as ARMs.

Callable Securities
Certain fixed-income securities in which the Fund invests are callable at the
option of the issuer. Callable securities are subject to call risks.

Insurance Contracts
Insurance contracts include guaranteed investment contracts, funding agreements
and annuities. The Fund treats these contracts as fixed-income securities.

Credit Enhancement
The Fund may invest in securities that have credit enhancement. Credit
enhancement consists of an arrangement in which a company agrees to pay amounts
due on a fixed-income security if the issuer defaults. In some cases the company
providing credit enhancement makes all payments directly to the security holders
and receives reimbursement from the issuer. Normally, the credit enhancer has
greater financial resources and liquidity than the issuer. For this reason, the
Adviser usually evaluates the credit risk of a fixed-income security based
solely upon its credit enhancement.

Common types of credit enhancement include guarantees, letters of credit, bond
insurance and surety bonds. Credit enhancement also includes arrangements where
securities or other liquid assets secure payment of a fixed-income security. If
a default occurs, these assets may be sold and the proceeds paid to security's
holders. Either form of credit enhancement reduces credit risks by providing
another source of payment for a fixed-income security.

FOREIGN SECURITIES
Foreign securities are securities of issuers based outside the United States.
The Fund considers an issuer to be based outside the United States if:
o it is organized under the laws of, or has a principal office located in
another country;

o the principal trading market for its securities is in another
country; or

o it (or its subsidiaries) derived in its most current fiscal year at least 50%
of its total assets, capitalization, gross revenue or profit from goods
produced, services performed, or sales made in another country.

Along with the risks normally associated with domestic securities of the same
type, foreign securities are subject to risks of foreign investing. The foreign
securities in which the Fund invests are primarily denominated in U.S. dollars.

SPECIAL TRANSACTIONS

Inter-Fund Borrowing and Lending Arrangements
The Securities and Exchange Commission (SEC) has granted an exemption that
permits the Fund and all other funds advised by subsidiaries of Federated
Investors, Inc. (Federated funds) to lend and borrow money for certain temporary
purposes directly to and from other Federated funds. Participation in this
inter-fund lending program is voluntary for both borrowing and lending Federated
funds, and an inter-fund loan is only made if it benefits each participating
Federated fund. Federated Investors, Inc. (Federated) administers the program
according to procedures approved by the Fund's Board, and the Board monitors the
operation of the program. Any inter-fund loan must comply with certain
conditions set out in the exemption, which are designed to assure fairness and
protect all participating Federated funds.

For example, inter-fund lending is permitted only (a) to meet shareholder
redemption requests, and (b) to meet commitments arising from "failed" trades.
All inter-fund loans must be repaid in seven days or less. The Fund's
participation in this program must be consistent with its investment policies
and limitations, and must meet certain percentage tests. Inter-fund loans may be
made only when the rate of interest to be charged is more attractive to the
lending Federated fund than market-competitive rates on overnight repurchase
agreements (Repo Rate) and more attractive to the borrowing Federated fund than
the rate of interest that would be charged by an unaffiliated bank for
short-term borrowings (Bank Loan Rate), as determined by the Board. The interest
rate imposed on inter-fund loans is the average of the Repo Rate and the Bank
Loan Rate.

Repurchase Agreements
Repurchase agreements are transactions in which the Fund buys a security from a
dealer or bank and agrees to sell the security back at a mutually agreed-upon
time and price. The repurchase price exceeds the sale price, reflecting the
Fund's return on the transaction. This return is unrelated to the interest rate
on the underlying security. The Fund will enter into repurchase agreements only
with banks and other recognized financial institutions, such as securities
dealers, deemed creditworthy by the Adviser.

The Fund's custodian or subcustodian will take possession of the securities
subject to repurchase agreements. The Adviser or subcustodian will monitor the
value of the underlying security each day to ensure that the value of the
security always equals or exceeds the repurchase price. Repurchase agreements
are subject to credit risks.

Reverse Repurchase Agreements
Reverse repurchase agreements are repurchase agreements in which the Fund is the
seller (rather than the buyer) of the securities, and agrees to repurchase them
at an agreed-upon time and price. A reverse repurchase agreement may be viewed
as a type of borrowing by the Fund. Reverse repurchase agreements are subject to
credit risks. In addition, reverse repurchase agreements create leverage risks
because the Fund must repurchase the underlying security at a higher price,
regardless of the market value of the security at the time of repurchase.

Delayed Delivery Transactions
Delayed delivery transactions, including when-issued transactions, are
arrangements in which the Fund buys securities for a set price, with payment and
delivery of the securities scheduled for a future time. During the period
between purchase and settlement, no payment is made by the Fund to the issuer
and no interest accrues to the Fund. The Fund records the transaction when it
agrees to buy the securities and reflects their value in determining the price
of its shares. Settlement dates may be a month or more after entering into these
transactions so that the market values of the securities bought may vary from
the purchase prices. Therefore, delayed delivery transactions create interest
rate risks for the Fund. Delayed delivery transactions also involve credit risks
in the event of a counterparty default. The Fund does not intend to engage in
delayed delivery transactions to an extent that would cause the segregation of
more than 20% of the total value of its assets.

Asset Coverage
In order to secure its obligations in connection with special transactions, the
Fund will either own the underlying assets or set aside readily marketable
securities with a value that equals or exceeds the Fund's obligations. Unless
the Fund has other readily marketable assets to set aside, it cannot trade
assets used to secure such obligations without terminating a special
transaction. This may cause the Fund to miss favorable trading opportunities or
to realize losses on special transactions.

INVESTING IN SECURITIES OF OTHER INVESTMENT COMPANIES
The Fund may invest its assets in securities of other investment companies,
including the securities of affiliated money market funds, as an efficient means
of carrying out its investment policies and managing its uninvested cash. These
other investment companies are managed independently of the Fund and incur
additional expenses. Therefore, any such investment by the Fund may be subject
to duplicate expenses. However, the Adviser believes that the benefits and
efficiencies of this approach should outweigh the additional expenses.

INVESTMENT RATINGS
A nationally recognized rating service's two highest rating categories are
determined without regard for sub-categories and gradations. For example,
securities rated A-1+, A-1 or A-2 by Standard & Poor's (S&P), Prime-1 or
Prime-2 by Moody's Investors Service (Moody's), or F-1+, F-1 or F-2 by Fitch
Ratings (Fitch) are all considered rated in one of the two highest short-term
rating categories. The Fund will follow applicable regulations in determining
whether a security rated by more than one rating service can be treated as being
in one of the two highest short-term rating categories; currently, such
securities must be rated by two rating services in one of their two highest
rating categories. See "Regulatory Compliance."

INVESTMENT RISKS
There are many factors which may affect an investment in the Fund. The Fund's
principal risks are described in its prospectus. Additional risk factors are
outlined below.

Credit Risks
Credit risk is the possibility that an issuer will default on a security by
failing to pay interest or principal when due. If an issuer defaults, the Fund
will lose money.

Many fixed-income securities receive credit ratings from services such as
S&P and Moody's. These NRSROs assign ratings to securities by assessing the
likelihood of issuer default. Lower credit ratings correspond to higher
perceived credit risk. Credit ratings do not provide assurance against default
or other loss of money. If a security has not received a rating, the Fund must
rely entirely upon the Adviser's credit assessment.

Fixed-income securities generally compensate for greater credit risk by paying
interest at a higher rate. The difference between the yield of a security and
the yield of a U.S. Treasury security with a comparable maturity (the spread)
measures the additional interest paid for risk. Spreads may increase generally
in response to adverse economic or market conditions. A security's spread may
also increase if the security's rating is lowered, or the security is perceived
to have an increased credit risk. An increase in the spread will cause the price
of the security to decline.

Leverage Risks
Leverage risk is created when an investment exposes the Fund to a level of risk
that exceeds the amount invested. Changes in the value of such an investment
magnify the Fund's risk of loss and potential for gain.

Risks of Foreign Investing
Foreign securities pose additional risks because foreign economic or political
conditions may be less favorable than those of the U.S. Securities in foreign
markets may also be subject to taxation policies that reduce returns for U.S.
investors.

Prepayment Risks
Unlike traditional fixed-income securities, which pay a fixed rate of interest
until maturity (when the entire principal amount is due), payments on mortgage
backed securities and asset backed securities include both interest and a
partial payment of principal. Partial payment of principal may be comprised of
scheduled principal payments as well as unscheduled payments from voluntary
prepayment, refinancing or foreclosure of the underlying loans. If the Fund
receives unscheduled prepayments, it may have to reinvest the proceeds in other
fixed-income securities with lower interest rates, higher credit risks or other
less favorable characteristics.

Call Risks
If a fixed-income security is called, the Fund may have to reinvest the proceeds
in other fixed-income securities with lower interest rates, higher credit risks,
or other less favorable characteristics.

FUNDAMENTAL INVESTMENT OBJECTIVE AND POLICIES
The investment objective of the Fund is stability of principal and current
income consistent with stability of principal.

Money market instruments include, but are not limited to, U.S. Treasury Bills,
all other marketable obligations issued or guaranteed by the U.S. government,
its agencies or instrumentalities ("U.S. government obligations"), instruments
of banks and savings and loans which are members of the Federal Deposit
Insurance Corporation (FDIC) (such as certificates of deposit, demand and time
deposits, savings shares and bankers' acceptances; these instruments are not
necessarily guaranteed by the FDIC), repurchase agreements (an instrument where
the seller agrees to repurchase the instrument at the time of sale at a mutually
agreed upon time and price), and prime commercial paper including variable
amount demand master notes.

The Fund will not invest in instruments issued by banks or savings and loans
unless: (a) at the time of investment they have capital, surplus and undivided
profits in excess of $100,000,000 (as of the date of their most recently
published financial statements); or (b) the principal amount of the instrument
is insured in full by the FDIC. To the extent the Fund purchases Eurodollar
certificates of deposit issued by foreign branches of domestic U.S. banks,
consideration will be given to their domestic marketability, the lower reserve
requirements normally mandated for overseas banking operations and the possible
impact of interruptions in the flow of international currency transactions.

Commercial paper investments will be limited to commercial paper rated A-1 or
A-2 by S&P, Prime -1 or Prime -2 by Moody's or F-1 or F-2 by Fitch. In the
case where commercial paper has received different ratings from different
services, such commercial paper is an acceptable investment so long as at least
one rating was a high quality rating and provided the Board or its designee
determines that such investment presents minimal credit risks.

The Fund may purchase money market instruments, including bank instruments and
commercial paper, which are not rated but are determined by the Board or its
designee to be of comparable quality to the other bank or corporate obligations
in which the Fund may invest. The Fund may also purchase U.S. Government
obligations on a when-issued or delayed delivery basis.

Although the money market instruments purchased by the Fund represent
unconditional promises to repay the entire investment proceeds at maturity, this
in itself does not suggest that the shares of the Fund are themselves
guaranteed. The investment policies outlined above permit investment in a wide
variety of money market instruments and it is anticipated that investment
emphasis will shift within available categories of instruments depending on the
current condition of the money market.

The Fund may attempt to increase yield by trading portfolio securities to take
advantage of short-term market variations.

The investment objective and policies may not be changed by the Fund's Board
without shareholder approval.

INVESTMENT LIMITATIONS

Diversification of Investments
With respect to securities comprising 75% of the value of its total assets, the
Fund will not purchase securities of any one issuer (other than cash, cash
items, securities issued or guaranteed by the government of the United States or
its agencies or instrumentalities and repurchase agreements collateralized by
such U.S. government securities, and securities of other investment companies)
if as a result more than 5% of the value of its total assets would be invested
in the securities of that issuer, or it would own more than 10% of the
outstanding voting securities of that issuer.

Selling Short and Buying on Margin
The Fund will not purchase any money market instruments on margin or sell any
money market instruments short but it may obtain such short-term credits as may
be necessary for clearance of purchases and sales of money market instruments.

Borrowing Money
The Fund will not borrow money except as a temporary measure for extraordinary
or emergency purposes and then only in amounts not in excess of 5% of the value
of its total assets. In addition, the Fund may enter into reverse repurchase
agreements and otherwise borrow up to one-third of the value of its total
assets, including the amount borrowed, in order to meet redemption requests
without immediately selling portfolio instruments. This latter practice is not
for investment leverage but solely to facilitate management of the portfolio by
enabling the Fund to meet redemption requests when the liquidation of portfolio
instruments would be inconvenient or disadvantageous.

Interest paid on borrowed funds will not be available for investment. The Fund
will liquidate any such borrowings as soon as possible. However, during the
period any reverse repurchase agreements are outstanding, but only to the extent
necessary to assure completion of the reverse repurchase agreements, the Fund
will restrict the purchase of portfolio instruments to money market instruments
maturing on or before the expiration date of the reverse repurchase agreements.

Pledging Assets
The Fund will not mortgage, pledge or hypothecate any assets except to secure
permitted borrowings. In those cases, it may mortgage, pledge or hypothecate
assets having a market value not exceeding the lesser of the dollar amounts
borrowed or 10% of the value of total assets at the time of the borrowing.

Underwriting
The Fund will not underwrite any issue of securities, except as it may be deemed
to be an underwriter under the Securities Act of 1933 in connection with the
sale of restricted securities which the Fund may purchase pursuant to its
investment objective, policies and limitations.

Lending Cash or Securities
The Fund will not lend any of its assets (except that it may purchase or hold
money market instruments, to include repurchase agreements and variable amount
demand master notes, permitted by the investment objective and policies).

Issuing Senior Securities
The Fund will not issue senior securities, except as permitted by the investment
objective and policies and investment limitations of the Fund.

Concentration of Investments
The Fund will not purchase money market instruments if, as a result of such
purchase, more than 25% of the value of its total assets would be invested in
any one industry.

However, investing in bank instruments such as time and demand deposits and
certificates of deposit, U.S. government obligations, or instruments secured by
these money market instruments, such as repurchase agreements, shall not be
considered investments in any one industry.

Investing in Commodities or Real Estate
The Fund will not invest in commodities, commodity contracts or real estate,
except that it may purchase money market instruments issued by companies which
invest in or sponsor interests therein.

The above limitations cannot be changed unless authorized by the Board and by
the "vote of a majority of its outstanding voting securities," as defined by the
Investment Company Act of 1940 (1940 Act). The following limitations, however,
may be changed by the Board without shareholder approval. Shareholders will be
notified before any material change in these limitations becomes effective.

Acquiring Securities
The Fund will not acquire the voting securities of any issuer. It will not
invest in securities of a company for the purpose of exercising control or
management.

Investing in Restricted Securities
The Fund may invest in restricted securities. Restricted securities are any
securities that are subject to restrictions on resale under federal securities
law. The Fund may invest without limitation in restricted securities which are
determined to be liquid under criteria established by the Board. To the extent
that restricted securities are not determined to be liquid the Fund will limit
their purchase, together with other illiquid securities, to not more than 10% of
its net assets.

For purposes of the diversification limitation, the Fund considers certificates
of deposit and demand and time deposits issued by a U.S. branch of a domestic
bank or savings association having capital, surplus and undivided profits in
excess of $100,000,000 at the time of investment to be "cash items."

Except with respect to borrowing money, if a percentage limitation is adhered to
at the time of investment, a later increase or decrease in percentage resulting
from any change in value or net assets will not result in a violation of such
limitation.

REGULATORY COMPLIANCE
The Fund may follow non-fundamental operational policies that are more
restrictive than its fundamental investment limitations, as set forth in the
prospectus and this SAI, in order to comply with applicable laws and
regulations, including the provisions of and regulations under the 1940 Act. In
particular, the Fund will comply with the various requirements of Rule 2a-7 (the
"Rule"), which regulates money market mutual funds. The Fund will determine the
effective maturity of its investments according to the Rule. The Fund may change
these operational policies to reflect changes in the laws and regulations
without the approval of its shareholders.

DETERMINING MARKET VALUE OF SECURITIES
The Board has decided that the best method for determining the value of
portfolio instruments is amortized cost. Under this method, portfolio
instruments are valued at the acquisition cost as adjusted for amortization of
premium or accumulation of discount rather than at current market value.
Accordingly, neither the amount of daily income nor the net asset value (NAV) is
affected by any unrealized appreciation or depreciation of the portfolio. In
periods of declining interest rates, the indicated daily yield on Shares of the
Fund computed by dividing the annualized daily income on the Fund's portfolio by
the NAV computed as above may tend to be higher than a similar computation made
by using a method of valuation based upon market prices and estimates. In
periods of rising interest rates, the opposite may be true.

The Fund's use of the amortized cost method of valuing portfolio instruments
depends on its compliance with certain conditions in the Rule. Under the Rule,
the Board must establish procedures reasonably designed to stabilize the NAV per
Share, as computed for purposes of distribution and redemption, at $1.00 per
Share, taking into account current market conditions and the Fund's investment
objective. The procedures include monitoring the relationship between the
amortized cost value per Share and the NAV per Share based upon available
indications of market value. The Board will decide what, if any, steps should be
taken if there is a difference of more than 0.5 of 1% between the two values.
The Board will take any steps it considers appropriate (such as redemption in
kind or shortening the average portfolio maturity) to minimize any material
dilution or other unfair results arising from differences between the two
methods of determining NAV.

TRADING IN FOREIGN SECURITIES

Trading in foreign securities may be completed at times which vary from the
closing of the New York Stock Exchange (NYSE). In computing its NAV, the Fund
values foreign securities at the latest closing price on the exchange on which
they are traded immediately prior to the closing of the NYSE. Certain foreign
currency exchange rates may also be determined at the latest rate prior to the
closing of the NYSE. Foreign securities quoted in foreign currencies are
translated into U.S. dollars at current rates. Occasionally, events that affect
these values and exchange rates may occur between the times at which they are
determined and the closing of the NYSE. If such events materially affect the
value of portfolio securities, these securities may be valued at their fair
value as determined in good faith by the Fund's Board, although the actual
calculation may be done by others.

WHAT DO SHARES COST?

The NAV for each class of Shares may differ due to the variance in daily net
income realized by each class. Such variance will reflect only accrued net
income to which the shareholders of a particular class are entitled.

HOW IS THE FUND SOLD?

Under the Distributor's Contract with the Fund, the Distributor (Federated
Securities Corp.) offers Shares on a continuous, best-efforts basis exclusively
through Edward Jones to its customers. The Fund is sold largely as a "sweep"
investment for otherwise uninvested cash in customers' brokerage accounts.
Edward Jones takes the primary responsibility for marketing Shares to its
customers. The expense of this marketing effort is provided from Edward Jones'
own resources, including its partnership share of the Adviser's revenues and the
fees it receives for administrative services performed for the Fund.

ADDITIONAL PAYMENTS TO EDWARD JONES
The Distributor may pay out of its own resources amounts (including items of
material value) to Edward Jones. In some cases, such payments may be made by, or
funded from the resources of, companies affiliated with the Distributor. While
NASD regulations limit the sales charges that you may bear, there are no limits
with regard to the amounts that the Distributor may pay out of its own
resources. In addition to the payments which are generally described herein and
in the prospectus, Edward Jones also may receive Service Fees.

You can ask your Edward Jones representative or consult the Edward Jones website
(www.edwardjones.com) for information about any payments Edward Jones receives
from the Distributor or the Federated funds and any services provided.

From time to time, the Distributor, at its expense, may provide additional
compensation to Edward Jones. Such compensation may include financial assistance
to Edward Jones that enables the Distributor to participate in or present at
conferences or seminars, sales or training programs for invited employees,
client and investor events and other Edward Jones-sponsored events.

The Distributor also may hold or sponsor, at its expense, sales events,
conferences and programs for employees or associated persons of Edward Jones and
may pay the travel and lodging expenses of attendees. The Distributor also may
provide, at its expense, meals and entertainment in conjunction with meetings
with Edward Jones. Other compensation may be offered to the extent not
prohibited by applicable laws, regulations or the rules of any self-regulatory
agency, such as the NASD.

REDEMPTION IN KIND

Although the Fund intends to pay Share redemptions in cash, it reserves the
right, as described below, to pay the redemption price in whole or in part by a
distribution of the Fund's portfolio securities.

Because the Fund has elected to be governed by Rule 18f-1 under the 1940 Act,
the Fund is obligated to pay Share redemptions to any one shareholder in cash
only up to the lesser of $250,000 or 1% of the net assets represented by such
Share class during any 90-day period.

Any Share redemption payment greater than this amount will also be in cash
unless the Fund's Board determines that payment should be in kind. In such a
case, the Fund will pay all or a portion of the remainder of the redemption in
portfolio securities, valued in the same way as the Fund determines its NAV. The
portfolio securities will be selected in a manner that the Fund's Board deems
fair and equitable and, to the extent available, such securities will be readily
marketable.

Redemption in kind is not as liquid as a cash redemption. If redemption is made
in kind, shareholders receiving the portfolio securities and selling them before
their maturity could receive less than the redemption value of the securities
and could incur certain transaction costs.

MASSACHUSETTS PARTNERSHIP LAW

Under certain circumstances, shareholders may be held personally liable as
partners under Massachusetts law for obligations of the Trust. To protect its
shareholders, the Trust has filed legal documents with Massachusetts that
expressly disclaim the liability of its shareholders for acts or obligations of
the Trust.

In the unlikely event a shareholder is held personally liable for the Trust's
obligations, the Trust is required by the Declaration of Trust to use its
property to protect or compensate the shareholder. On request, the Trust will
defend any claim made and pay any judgment against a shareholder for any act or
obligation of the Trust. Therefore, financial loss resulting from liability as a
shareholder will occur only if the Trust itself cannot meet its obligations to
indemnify shareholders and pay judgments against them.

ACCOUNT AND SHARE INFORMATION

<R>

VOTING RIGHTS
Each Share of the Fund gives the shareholder one vote in Trustee elections and
other matters submitted to shareholders for vote.

All Shares of the Fund have equal voting rights, except that in matters
affecting only a particular class, only Shares of that class are entitled to
vote.

Trustees may be removed by the Board or by shareholders at a special meeting. A
special meeting of shareholders will be called by the Board upon the written
request of shareholders who own at least 10% of the Trust's outstanding Shares
of all series entitled to vote.

As of April 4, 2006, there were no shareholders who owned of record,
beneficially, or both, 5% or more of outstanding Shares.

</R>

TAX INFORMATION

FEDERAL INCOME TAX
The Fund intends to meet requirements of Subchapter M of the Internal Revenue
Code (Code) applicable to regulated investment companies. If these requirements
are not met, it will not receive special tax treatment and will be subject to
federal corporate income tax.

FOREIGN INVESTMENTS
If the Fund purchases foreign securities, their investment income may be subject
to foreign withholding or other taxes that could reduce the return on these
securities. Tax treaties between the United States and foreign countries,
however, may reduce or eliminate the amount of foreign taxes to which the Fund
would be subject. The effective rate of foreign tax cannot be predicted since
the amount of Fund assets to be invested within various countries is uncertain.
However, the Fund intends to operate so as to qualify for treaty-reduced tax
rates when applicable.

WHO MANAGES AND PROVIDES SERVICES TO THE FUND?

<R>

BOARD OF TRUSTEES
The Board is responsible for managing the Fund's business affairs and for
exercising all the Fund's powers except those reserved for the shareholders. The
following tables give information about each Board member and the senior
officers of the Fund. Where required, the tables separately list Board members
who are "interested persons" of the Fund (i.e., "Interested" Board members) and
those who are not (i.e., "Independent" Board members). Unless otherwise noted,
the address of each person listed is Federated Investors Tower, 1001 Liberty
Avenue, Pittsburgh, PA. As of December 31, 2005, the Fund comprised one
portfolio, and the Federated Fund Complex consisted of 43 investment companies
(comprising 136 portfolios). Unless otherwise noted, each Officer is elected
annually. Unless otherwise noted, each Board member oversees all portfolios in
the Federated Fund Complex and serves for an indefinite term.

As of April 4, 2006, the Fund's Board and Officers as a group owned less than 1%
of the Fund's outstanding Shares.

INTERESTED TRUSTEES BACKGROUND AND COMPENSATION
Name Principal Occupation(s) for Past Aggregate Total
Birth Date Five Years, Compensation Compensation
Address Other Directorships Held and From Fund From Fund and
Positions Held with Fund Previous Position(s) (past fiscal Federated Fund
Date Service Began year) Complex
(past calendar
year)
John F. Donahue* Principal Occupations: Director $0 $0
Birth Date: July 28, 1924 or Trustee of the Federated Fund
TRUSTEE Complex; Chairman and Director,
Began serving: January Federated Investors, Inc.
1980
Previous Positions: Chairman of
the Federated Fund Complex;
Trustee, Federated Investment
Management Company and Chairman
and Director, Federated
Investment Counseling.

J. Christopher Donahue* Principal Occupations: Principal $0 $0
Birth Date: April 11, 1949 Executive Officer and President
PRESIDENT AND TRUSTEE of the Federated Fund Complex;
Began serving: November Director or Trustee of some of
1998 the Funds in the Federated Fund
Complex; President, Chief Executive Officer and
Director, Federated Investors, Inc.; Chairman and
Trustee, Federated Investment Management Company;
Trustee, Federated Investment Counseling;
Chairman and Director, Federated Global
Investment Management Corp.; Chairman, Federated
Equity Management Company of Pennsylvania,
Passport Research, Ltd. (Investment advisory
subsidiary of Federated) and Passport Research
II, Ltd. (Investment advisory subsidiary of
Federated); Trustee, Federated Shareholder
Services Company; Director, Federated Services
Company.

Previous Positions: President,
Federated Investment Counseling;
President and Chief Executive
Officer, Federated Investment
Management Company, Federated
Global Investment Management
Corp. and Passport Research, Ltd.

Lawrence D. Ellis, M.D.* Principal Occupations: Director $ 8,246.00 $148,500
Birth Date: October 11, or Trustee of the Federated Fund
1932 Complex; Professor of Medicine,
3471 Fifth Avenue University of Pittsburgh;
Suite 1111 Medical Director, University of
Pittsburgh, PA Pittsburgh Medical Center
TRUSTEE Downtown; Hematologist,
Began serving: August 1987 Oncologist and Internist,
University of Pittsburgh Medical
Center.

Other Directorships Held:
Member, National Board of
Trustees, Leukemia Society of
America.

Previous Positions: Trustee,
University of Pittsburgh;
Director, University of
Pittsburgh Medical Center.

* Family relationships and reasons for "interested" status: John F. Donahue is
the father of J. Christopher Donahue; both are "interested" due to the positions
they hold with Federated and its subsidiaries. Lawrence D. Ellis, M.D. is
"interested" because his son-in-law is employed by the Fund's principal
underwriter, Federated Securities Corp.

INDEPENDENT TRUSTEES BACKGROUND AND COMPENSATION
Name Principal Occupation(s) for Past Five Aggregate Total
Birth Date Years, Compensation Compensation
Address Other Directorships Held and Previous From Fund From Fund and
Positions Held with Fund Position(s) (past fiscal Federated Fund
Date Service Began year) Complex
(past calendar
year)
Thomas G. Bigley Principal Occupation: Director or $9,070.60 $163,350
Birth Date: February 3, Trustee of the Federated Fund Complex.
1934
15 Old Timber Trail Other Directorships Held: Director,
Pittsburgh, PA Member of Executive Committee,
TRUSTEE Children's Hospital of Pittsburgh;
Began serving: October Director, University of Pittsburgh.
1995
Previous Position: Senior Partner,
Ernst & Young LLP.

John T. Conroy, Jr. Principal Occupations: Director or $9,070.60 $163,350
Birth Date: June 23, 1937 Trustee of the Federated Fund
Investment Properties Complex; Chairman of the Board,
Corporation Investment Properties Corporation;
3838 North Tamiami Trail Partner or Trustee in private real
Suite 402 estate ventures in Southwest Florida.
Naples, FL
TRUSTEE Previous Positions: President,
Began serving: August Investment Properties Corporation;
1991 Senior Vice President, John R. Wood
and Associates, Inc., Realtors;
President, Naples Property
Management, Inc. and Northgate
Village Development Corporation.

Nicholas P. Constantakis Principal Occupation: Director or $9,070.60 $163,350
Birth Date: September 3, Trustee of the Federated Fund Complex.
1939
175 Woodshire Drive Other Directorships Held: Director
Pittsburgh, PA and Member of the Audit Committee,
TRUSTEE Michael Baker Corporation
Began serving: November (engineering and energy services
1998 worldwide).

Previous Position: Partner, Andersen
Worldwide SC.

John F. Cunningham Principal Occupation: Director or $8,246.00 $148,500
Birth Date: March 5, 1943 Trustee of the Federated Fund Complex.
353 El Brillo Way
Palm Beach, FL Other Directorships Held: Chairman,
TRUSTEE President and Chief Executive
Began serving: November Officer, Cunningham & Co., Inc.
1998 (strategic business consulting);
Trustee Associate, Boston College.

Previous Positions: Director, Redgate
Communications and EMC Corporation
(computer storage systems); Chairman
of the Board and Chief Executive
Officer, Computer Consoles, Inc.;
President and Chief Operating
Officer, Wang Laboratories; Director,
First National Bank of Boston;
Director, Apollo Computer, Inc.

Peter E. Madden Principal Occupation: Director or $8,246.00 $148,500
Birth Date: March 16, Trustee of the Federated Fund
1942 Complex.
One Royal Palm Way
100 Royal Palm Way Other Directorships Held: Board of
Palm Beach, FL Overseers, Babson College.
TRUSTEE
Began serving: August Previous Positions: Representative,
1991 Commonwealth of Massachusetts General Court;
President, State Street Bank and Trust Company and
State Street Corporation (retired); Director, VISA
USA and VISA International; Chairman and Director,
Massachusetts Bankers Association; Director,
Depository Trust Corporation; Director, The Boston
Stock Exchange.

Charles F. Mansfield, Jr. Principal Occupations: Director or $9,070.60 $163,350
Birth Date: April 10, Trustee of the Federated Fund
1945 Complex; Management Consultant.
80 South Road
Westhampton Beach, NY Previous Positions: Chief Executive
TRUSTEE Officer, PBTC International Bank;
Began serving: November Partner, Arthur Young & Company
1998 (now Ernst & Young LLP); Chief
Financial Officer of Retail Banking Sector, Chase
Manhattan Bank; Senior Vice President, HSBC Bank
USA (formerly, Marine Midland Bank); Vice
President, Citibank; Assistant Professor of
Banking and Finance, Frank G. Zarb School of
Business, Hofstra University; Executive Vice
President DVC Group, Inc.

John E. Murray, Jr., Principal Occupations: Director or $178,200
J.D., S.J.D. Trustee, and Chairman of the Board of $9,895.19
Birth Date: December 20, Directors or Trustees, of the
1932 Federated Fund Complex; Chancellor
Chancellor, Duquesne and Law Professor, Duquesne
University University; Partner, Murray, Hogue
Pittsburgh, PA & Lannis.
TRUSTEE
Began serving: February Other Directorships Held: Director,
1995 Michael Baker Corp. (engineering,
construction, operations and
technical services).

Previous Positions: President,
Duquesne University; Dean and
Professor of Law, University of
Pittsburgh School of Law; Dean and
Professor of Law, Villanova
University School of Law.

Marjorie P. Smuts Principal Occupations: Director or $8,246.00 $148,500
Birth Date: June 21, 1935 Trustee of the Federated Fund
4905 Bayard Street Complex; Public Relations/Marketing
Pittsburgh, PA Consultant/Conference Coordinator.
TRUSTEE
Began serving: February Previous Positions: National
1984 Spokesperson, Aluminum Company of
America; television producer;
President, Marj Palmer Assoc.; Owner,
Scandia Bord.
John S. Walsh Principal Occupations: Director or $8,246.00 $148,500
Birth Date: November 28, Trustee of the Federated Fund
1957 Complex; President and Director, Heat
2604 William Drive Wagon, Inc. (manufacturer of
Valparaiso, IN construction temporary heaters);
TRUSTEE President and Director, Manufacturers
Began serving: November Products, Inc. (distributor of
1998 portable construction heaters);
President, Portable Heater Parts, a
division of Manufacturers Products,
Inc.

Previous Position: Vice President,
Walsh & Kelly, Inc.

James F. Will Principal Occupations: Vice $0 $0
Birth Date: October 12, Chancellor and President, Saint
1938 Vincent College.
Saint Vincent College
Latrobe, PA Other Directorships Held: Alleghany
TRUSTEE Corporation.
Began serving: April 2006
Previous Positions: Chairman,
President and Chief Executive
Officer, Armco, Inc.; President and
Chief Executive Officer, Cyclops
Industries; President and Chief
Operating Officer, Kaiser Steel
Corporation.

OFFICERS**
Name Principal Occupation(s) and Previous Position(s)
Birth Date
Address
Positions Held with Fund
Date Service Began
John W. McGonigle Principal Occupations: Executive Vice President and
Birth Date: October 26, 1938 Secretary of the Federated Fund Complex; Vice Chairman,
EXECUTIVE VICE PRESIDENT AND Executive Vice President, Secretary and Director,
SECRETARY Federated Investors, Inc.
Began serving: January 1980
Previous Positions: Trustee, Federated Investment
Management Company and Federated Investment Counseling;
Director, Federated Global Investment Management Corp.,
Federated Services Company and Federated Securities Corp.

Richard A. Novak Principal Occupations: Principal Financial Officer and
Birth Date: December 25, 1963 Treasurer of the Federated Fund Complex; Senior Vice
TREASURER President, Federated Administrative Services. ; Financial
Began serving: January 2006 and Operations Principal for Federated Securities Corp.,
Edgewood Services, Inc. and Southpointe Distribution
Services, Inc.; Senior Vice President and Controller of
Federated Investors, Inc.

Previous Positions: Vice President, Finance of Federated
Services Company; held various financial management
positions within The Mercy Hospital of Pittsburgh;
Auditor, Arthur Andersen & Co.

Richard B. Fisher Principal Occupations: Vice Chairman or Vice President of
Birth Date: May 17, 1923 some of the Funds in the Federated Fund Complex; Vice
VICE CHAIRMAN Chairman, Federated Investors, Inc.; Chairman, Federated
Began serving: August 2002 Securities Corp.

Previous Positions: President and Director or Trustee of
some of the Funds in the Federated Fund Complex; Executive
Vice President, Federated Investors, Inc. and Director and
Chief Executive Officer, Federated Securities Corp.

Deborah A. Cunningham
Birth Date: September 15, Principal Occupations: Deborah A. Cunningham has been the
1959 Fund's Portfolio Manager since 1994. Ms. Cunningham was
CHIEF INVESTMENT OFFICER named Chief Investment Officer of money market products in
Began serving: May 2004 2004 and is a Vice President of the Fund. She joined
Federated in 1981 and has been a Senior Portfolio Manager
and a Senior Vice President of the Fund's Adviser since
1997. Ms. Cunningham is a Chartered Financial Analyst and
received her M.S.B.A. in Finance from Robert Morris
College.

Susan R. Hill Susan R. Hill has been the Fund's Portfolio Manager since
Birth Date: June 20, 1963 1994. She is Vice President of the Fund. Ms. Hill joined
VICE PRESIDENT Federated in 1990 and has been a Senior Portfolio Manager
Began serving: November 1998 since 2003 and a Senior Vice President of the Fund's
Adviser since 2005. Ms. Hill was a Portfolio Manager from
1994 until 2003, and served as Vice President of the
Fund's Adviser from 1997 until 2004 and an Assistant Vice
President of the Fund's Adviser from 1994 until 1997. Ms.
Hill is a Chartered Financial Analyst and received an M.S.
in Industrial Administration from Carnegie Mellon
University.

** Officers do not receive any compensation from the Fund.

COMMITTEES OF THE BOARD
Board Committee Committee Functions Meetings Held
Committee Members During Last
Fiscal Year
Executive John F. Donahue In between meetings of the full Board, the Five
John E. Murray, Jr., Executive Committee generally may exercise
J.D., S.J.D. all the powers of the full Board in the
John S. Walsh management and direction of the business
and conduct of the affairs of the Trust
in such manner as the Executive Committee
shall deem to be in the best interests of
the Trust. However, the Executive
Committee cannot elect or remove Board
members, increase or decrease the number
of Trustees, elect or remove any Officer,
declare dividends, issue shares or
recommend to shareholders any action
requiring shareholder approval.

Audit Thomas G. Bigley The purposes of the Audit Committee are to Nine
John T. Conroy, Jr. oversee the accounting and financial
Nicholas P. reporting process of the Fund, the Fund`s
Constantakis internal control over financial reporting,
Charles F. Mansfield, and the quality, integrity and independent
Jr. audit of the Fund`s financial statements.
The Committee also oversees or assists
the Board with the oversight of
compliance with legal requirements
relating to those matters, approves the
engagement and reviews the
qualifications, independence and
performance of the Fund`s independent
registered public accounting firm, acts
as a liaison between the independent
registered public accounting firm and the
Board and reviews the Funds internal
audit function.

Nominating Thomas G. Bigley The Nominating Committee, whose members One
John T. Conroy, Jr. consist of all Independent Trustees,
Nicholas P. selects and nominates persons for election
Constantakis to the Fund`s Board when vacancies occur.
John F. Cunningham The Committee will consider candidates
Peter E. Madden recommended by shareholders, Independent
Charles F. Mansfield, Trustees, officers or employees of any of
Jr. the Fund`s agents or service providers and
John E. Murray, Jr. counsel to the Fund. Any shareholder who
Marjorie P. Smuts desires to have an individual considered
John S. Walsh for nomination by the Committee must
James F. Will submit a recommendation in writing to the
Secretary of the Fund, at the Fund's
address appearing on the back cover of
this Statement of Additional Information.
The recommendation should include the
name and address of both the shareholder
and the candidate and detailed
information concerning the candidate's
qualifications and experience. In
identifying and evaluating candidates for
consideration, the Committee shall
consider such factors as it deems
appropriate. Those factors will
ordinarily include: integrity,
intelligence, collegiality, judgment,
diversity, skill, business and other
experience, qualification as an
"Independent Trustee," the existence of
material relationships which may create
the appearance of a lack of independence,
financial or accounting knowledge and
experience, and dedication and
willingness to devote the time and
attention necessary to fulfill Board
responsibilities.

BOARD OWNERSHIP OF SHARES IN THE FUND AND IN THE FEDERATED FAMILY OF
INVESTMENT COMPANIES AS OF DECEMBER 31, 2005

Aggregate
Dollar Range of Dollar Range of
Shares Owned Shares Owned in
Interested in Edward Jones Money Federated Family of
Board Member Name Market Fund Investment Companies
John F. Donahue None Over $100,000
J. Christopher Donahue None Over $100,000
Lawrence D. Ellis, M.D. None Over $100,000

Independent
------------------------------
Board Member Name
Thomas G. Bigley None Over $100,000
John T. Conroy, Jr. None Over $100,000
Nicholas P. Constantakis None Over $100,000
John F. Cunningham None Over $100,000
Peter E. Madden None Over $100,000
Charles F. Mansfield, Jr. None Over $100,000
John E. Murray, Jr., J.D., None Over $100,000
S.J.D.
Marjorie P. Smuts None Over $100,000
John S. Walsh None Over $100,000

</R>
------------------------------------------------------------------------------

INVESTMENT ADVISER

<R>

The Adviser conducts investment research and makes investment decisions for the
Fund.

Passport Research, Ltd. is a Pennsylvania limited partnership. Its general
partner is Federated Investment Management Company, a wholly owned investment
advisory subsidiary of Federated, with a 50.5% interest. Its limited partner
is Edward D. Jones & Co., L.P., with a 49.5% interest.

The partners in the Adviser allocate the expenses and revenues of the
partnership according to a mutually agreed-upon formula. Last year, the general
partner received approximately 28% of the Adviser's revenues, while Edward Jones
received approximately 72%. This allocation may vary depending upon total assets
in the Fund or other factors. The Fund pays Shareholder Service Fees up to 0.25%
of average net assets to Edward Jones for providing services to shareholders and
maintaining shareholder accounts. Edward Jones provides shareholder services,
administrative services, transfer agent services, and marketing services to the
Fund and the 744,976 accounts (Investment Shares) and 2,163,984 accounts
(Retirement Shares) that its clients maintain in the Fund. During the Fund's
last fiscal year, Edward Jones received approximately $78.6 million in total
(approximately 81.0% of total Fund expenses) for its services. Edward Jones
would have received $67.65 in total fees and payments with respect to a
shareholder maintaining an investment of $10,000 in Investment Shares or $104.13
with respect to a shareholder maintaining an investment of $10,000 in Retirement
Shares during that year.

</R>

Services Agreement
Federated Advisory Services Company, an affiliate of the Adviser, provides
certain support services to the Adviser. The fee for these services is paid by
the Adviser and not by the Fund.

Other Related Services
Affiliates of the Adviser may, from time to time, provide certain electronic
equipment and software to institutional customers in order to facilitate the
purchase of Fund Shares offered by the Distributor.

CODE OF ETHICS RESTRICTIONS ON PERSONAL TRADING

As required by SEC rules, the Fund, its Adviser, and its Distributor have
adopted codes of ethics. These codes govern securities trading activities of
investment personnel, Fund Trustees, and certain other employees. Although they
do permit these people to trade in securities, including those that the Fund
could buy, as well as Shares of the Fund, they also contain significant
safeguards designed to protect the Fund and its shareholders from abuses in this
area, such as requirements to obtain prior approval for, and to report,
particular transactions.

VOTING PROXIES ON FUND PORTFOLIO SECURITIES
The Board has delegated to the Adviser authority to vote proxies on the
securities held in the Fund's portfolio. The Board has also approved the
Adviser's policies and procedures for voting the proxies, which are described
below.

Proxy Voting Policies
The Adviser's general policy is to cast proxy votes in favor of proposals that
the Adviser anticipates will enhance the long-term value of the securities being
voted. Generally, this will mean voting for proposals that the Adviser believes
will: improve the management of a company; increase the rights or preferences of
the voted securities; and/or increase the chance that a premium offer would be
made for the company or for the voted securities.

The following examples illustrate how these general policies may apply to
proposals submitted by a company's board of directors. However, whether the
Adviser supports or opposes a proposal will always depend on the specific
circumstances described in the proxy statement and other available information.

On matters of corporate governance, generally the Adviser will vote for
proposals to: require independent tabulation of proxies and/or confidential
voting by shareholders; reorganize in another jurisdiction (unless it would
reduce the rights or preferences of the securities being voted); and repeal a
shareholder rights plan (also known as a "poison pill"). The Adviser will
generally vote against the adoption of such a plan (unless the plan is designed
to facilitate, rather than prevent, unsolicited offers for the company).

On matters of capital structure, generally the Adviser will vote: against
proposals to authorize or issue shares that are senior in priority or voting
rights to the securities being voted; for proposals to grant preemptive rights
to the securities being voted; and against proposals to eliminate such
preemptive rights.

On matters relating to management compensation, generally the Adviser will vote:
for stock incentive plans that align the recipients' interests with the
interests of shareholders without creating undue dilution; and against proposals
that would permit the amendment or replacement of outstanding stock incentives
with new stock incentives having more favorable terms.

On matters relating to corporate transactions, the Adviser will vote proxies
relating to proposed mergers, capital reorganizations, and similar transactions
in accordance with the general policy, based upon its analysis of the proposed
transaction. The Adviser will vote proxies in contested elections of directors
in accordance with the general policy, based upon its analysis of the opposing
slates and their respective proposed business strategies. Some transactions may
also involve proposed changes to the company's corporate governance, capital
structure or management compensation. The Adviser will vote on such changes
based on its evaluation of the proposed transaction or contested election. In
these circumstances, the Adviser may vote in a manner contrary to the general
practice for similar proposals made outside the context of such a proposed
transaction or change in the board. For example, if the Adviser decides to vote
against a proposed transaction, it may vote for anti-takeover measures
reasonably designed to prevent the transaction, even though the Adviser
typically votes against such measures in other contexts.

The Adviser generally votes against proposals submitted by shareholders without
the favorable recommendation of a company's board. The Adviser believes that a
company's board should manage its business and policies, and that shareholders
who seek specific changes should strive to convince the board of their merits or
seek direct representation on the board.

In addition, the Adviser will not vote if it determines that the consequences or
costs outweigh the potential benefit of voting. For example, if a foreign market
requires shareholders casting proxies to retain the voted shares until the
meeting date (thereby rendering the shares "illiquid" for some period of time),
the Adviser will not vote proxies for such shares.

<R>

Proxy Voting Procedures
The Adviser has established a Proxy Voting Committee (Proxy Committee), to
exercise all voting discretion granted to the Adviser by the Board in accordance
with the proxy voting policies. The Adviser has hired Institutional Shareholder
Services (ISS) to obtain, vote, and record proxies in accordance with the Proxy
Committee's directions. The Proxy Committee directs ISS by means of Proxy Voting
Guidelines, and ISS may vote any proxy as directed in the Proxy Voting
Guidelines without further direction from the Proxy Committee (and may make any
determinations required to implement the Proxy Voting Guidelines). However, if
the Proxy Voting Guidelines require case-by-case direction for a proposal, ISS
will provide the Proxy Committee with all information that it has obtained
regarding the proposal and the Proxy Committee will provide specific direction
to ISS. The Adviser's proxy voting procedures generally permit the Proxy
Committee to amend the Proxy Voting Guidelines, or override the directions
provided in such Guidelines, whenever necessary to comply with the proxy voting
policies.

</R>

Conflicts of Interest
The Adviser has adopted procedures to address situations where a matter on which
a proxy is sought may present a potential conflict between the interests of the
Fund (and its shareholders) and those of the Adviser or Distributor. This may
occur where a significant business relationship exists between the Adviser (or
its affiliates) and a company involved with a proxy vote. A company that is a
proponent, opponent, or the subject of a proxy vote, and which to the knowledge
of the Proxy Committee has this type of significant business relationship, is
referred to as an "Interested Company."

The Adviser has implemented the following procedures in order to avoid concerns
that the conflicting interests of the Adviser have influenced proxy votes. Any
employee of the Adviser who is contacted by an Interested Company regarding
proxies to be voted by the Adviser must refer the Interested Company to a member
of the Proxy Committee, and must inform the Interested Company that the Proxy
Committee has exclusive authority to determine how the Adviser will vote. Any
Proxy Committee member contacted by an Interested Company must report it to the
full Proxy Committee and provide a written summary of the communication. Under
no circumstances will the Proxy Committee or any member of the Proxy Committee
make a commitment to an Interested Company regarding the voting of proxies or
disclose to an Interested Company how the Proxy Committee has directed such
proxies to be voted. If the Proxy Voting Guidelines already provide specific
direction on the proposal in question, the Proxy Committee shall not alter or
amend such directions. If the Proxy Voting Guidelines require the Proxy
Committee to provide further direction, the Proxy Committee shall do so in
accordance with the proxy voting policies, without regard for the interests of
the Adviser with respect to the Interested Company. If the Proxy Committee
provides any direction as to the voting of proxies relating to a proposal
affecting an Interested Company, it must disclose to the Fund's Board
information regarding: the significant business relationship; any material
communication with the Interested Company; the matter(s) voted on; and how, and
why, the Adviser voted as it did.

If the Fund holds shares of another investment company for which the Adviser (or
an affiliate) acts as an investment adviser, the Proxy Committee will vote the
Fund's proxies in the same proportion as the votes cast by shareholders who are
not clients of the Adviser at any shareholders' meeting called by such
investment company, unless otherwise directed by the Board.

PORTFOLIO HOLDINGS INFORMATION
Complete listings of the Fund's portfolio holdings as of the end of its second
and fourth fiscal quarters are contained in the Fund's Annual and Semiannual
Reports to shareholders, which are filed with the SEC on Form N-CSR. Complete
listings of the Fund's portfolio holdings as of the end of its first and third
fiscal quarters are contained in the Reports on Form N-Q filed with the
Securities and Exchange Commission. These reports are filed with the SEC within
60 days after the end of the fiscal quarter and may be accessed from the EDGAR
Database on the SEC's website at www.sec.gov.

The disclosure policy of the Fund and the Adviser prohibits the disclosure of
portfolio holdings information to any investor or intermediary before the same
information is made available to other investors. Employees of the Adviser or
its affiliates who have access to nonpublic information concerning the Fund's
portfolio holdings are prohibited from trading securities on the basis of this
information. Such persons must report all personal securities trades and obtain
pre-clearance for all personal securities trades other than mutual fund shares.

Firms that provide administrative, custody, financial, accounting, legal or
other services to the Fund may receive nonpublic information about Fund
portfolio holdings for purposes relating to their services. The Fund may also
provide portfolio holdings information to publications that rate, rank or
otherwise categorize investment companies. Traders or portfolio managers may
provide "interest" lists to facilitate portfolio trading if the list reflects
only that subset of the portfolio for which the trader or portfolio manager is
seeking market interest. A list of service providers, publications and other
third parties who may receive nonpublic portfolio holdings information appears
in the Appendix to this SAI.

The furnishing of nonpublic portfolio holdings information to any third party
(other than authorized governmental or regulatory personnel) requires the prior
approval of the President of the Adviser and of the Chief Compliance Officer of
the Fund. The President of the Adviser and the Chief Compliance Officer will
approve the furnishing of nonpublic portfolio holdings information to a third
party only if they consider the furnishing of such information to be in the best
interests of the Fund and its shareholders. In that regard, and to address
possible conflicts between the interests of Fund shareholders and those of the
Adviser and its affiliates, the following procedures apply. No consideration may
be received by the Fund, the Adviser, any affiliate of the Adviser or any of
their employees in connection with the disclosure of portfolio holdings
information. Before information is furnished, the third party must sign a
written agreement that it will safeguard the confidentiality of the information,
will use it only for the purposes for which it is furnished and will not use it
in connection with the trading of any security. Persons approved to receive
nonpublic portfolio holdings information will receive it as often as necessary
for the purpose for which it is provided. Such information may be furnished as
frequently as daily and often with no time lag between the date of the
information and the date it is furnished. The Board receives and reviews
annually a list of the persons who receive nonpublic portfolio holdings
information and the purposes for which it is furnished.

BROKERAGE TRANSACTIONS AND INVESTMENT ALLOCATION
When selecting brokers and dealers to handle the purchase and sale of portfolio
instruments, the Adviser looks for prompt execution of the order at a favorable
price. The Adviser will generally use those who are recognized dealers in
specific portfolio instruments, except when a better price and execution of the
order can be obtained elsewhere. The Adviser makes decisions on portfolio
transactions and selects brokers and dealers subject to review by the Fund's
Board.

Investment decisions for the Fund are made independently from those of other
accounts managed by the Adviser. When the Fund and one or more of those accounts
invests in, or disposes of, the same security, available investments or
opportunities for sales will be allocated among the Fund and the account(s) in a
manner believed by the Adviser to be equitable. While the coordination and
ability to participate in volume transactions may benefit the Fund, it is
possible that this procedure could adversely impact the price paid or received
and/or the position obtained or disposed of by the Fund.

ADMINISTRATOR
Federated Administrative Services (FAS), a subsidiary of Federated, provides
administrative personnel and services (including certain legal and financial
reporting services) necessary to operate the Fund. FAS provides these at the
following annual rate of the average aggregate daily net assets of all Federated
funds as specified below:

Average Aggregate Daily
Maximum Net Assets of the Federated Funds Administrative Fee 0.150 of 1% on the
first $5 billion 0.125 of 1% on the next $5 billion 0.100 of 1% on the next $10
billion 0.075 of 1% on assets over $20 billion The administrative fee received
during any fiscal year shall be at least $150,000 per portfolio and $40,000 per
each additional class of Shares. FAS may voluntarily waive a portion of its fee
and may reimburse the Fund for expenses.
------------------------------------------------------------------------------

FAS has delegated certain fund administration responsibilities to Edward Jones.
As compensation for its services, FAS shares one-half of the administrative fee
that FAS receives with Edward Jones.

CUSTODIAN
State Street Bank and Trust Company, Boston, Massachusetts, is custodian for the
securities and cash of the Fund. Foreign instruments purchased by the Fund are
held by foreign banks participating in a network coordinated by State Street
Bank.

TRANSFER AGENT AND DIVIDEND DISBURSING AGENT
Edward Jones maintains all necessary shareholder records. The Fund pays the
transfer agent a fee based on the size, type and number of accounts and
transactions made by shareholders.

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The independent registered public accounting firm for the Fund, Ernst &
Young LLP, conducts its audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States), which require it to plan and
perform its audits to provide reasonable assurance about whether the Fund's
financial statements and financial highlights are free of material misstatement.

<R>

FEES PAID BY THE FUND FOR SERVICES

----------------------------------------------------------------------------------------
For the Year Ended February 28 2006 2005 2004
or 29
Advisory Fee Earned $43,041,572 $41,026,281 $44,944,118
Advisory Fee Reduction $0 $0 $0
Advisory Fee Reimbursement $0 $0 $0
Brokerage Commissions $0 $0 $0
Administrative Fee $7,961,295 $7,577,382 $8,249,679
Shareholder Services Fee:
Investment Shares $20,676,105 -- --
Retirement Shares $5,443,622 -- --
Fees are allocated among classes based on their pro rata share of Fund assets,
except for shareholder services fees, which are borne only by the applicable
class of Shares.
------------------------------------------------------------------------------

</R>

HOW DOES THE FUND MEASURE PERFORMANCE?

The Fund may advertise Share performance by using the SEC's standard methods for
calculating performance applicable to all mutual funds. The SEC also permits
this standard performance information to be accompanied by non-standard
performance information.

The performance of Shares depends upon such variables as: portfolio quality;
average portfolio maturity; type and value of portfolio securities; changes in
interest rates; changes or differences in the Fund's or any class of Shares'
expenses; and various other factors.

Share performance fluctuates on a daily basis largely because net earnings
and/or the value of portfolio holdings fluctuate daily. Both net earnings and
offering price per Share are factors in the computation of yield and total
return.

AVERAGE ANNUAL TOTAL RETURNS AND YIELD

<R>

Total returns are given for the one-year, five-year and ten-year periods ended
February 28, 2006.

Yield and Effective Yield are given for the 7-day period ended February 28,
2006.

7-Day Period 1 Year 5 Years 10 Years
Investment Shares:
Total Return
Before Taxes N/A 2.77% 1.51% 3.15%
Yield 3.72% N/A N/A N/A
Effective Yield 3.79% N/A N/A N/A

------------------------------------------------------------------------------
Start of
Performance on
7-Day Period 1 Year 5/21/2001
Retirement Shares
Total Return
Before Taxes N/A 2.31% 0.99%
Yield 3.16% N/A N/A
Effective Yield 3.21% N/A N/A

</R>
------------------------------------------------------------------------------

TOTAL RETURN
Total return represents the change (expressed as a percentage) in the value of
Shares over a specific period of time, and includes the investment of income and
capital gains distributions.

The average annual total return for Shares is the average compounded rate of
return for a given period that would equate a $10,000 initial investment to the
ending redeemable value of that investment. The ending redeemable value is
computed by multiplying the number of Shares owned at the end of the period by
the NAV per Share at the end of the period. The number of Shares owned at the
end of the period is based on the number of Shares purchased at the beginning of
the period with $10,000, less any applicable sales charge, adjusted over the
period by any additional Shares, assuming the annual reinvestment of all
dividends and distributions.

YIELD AND EFFECTIVE YIELD
The yield of Shares is based upon the seven days ending on the day of the
calculation, called the "base period." This yield is calculated by: determining
the net change in the value of a hypothetical account with a balance of one
Share at the beginning of the base period, with the net change excluding capital
changes but including the value of any additional Shares purchased with
dividends earned from the original one Share and all dividends declared on the
original and any purchased Shares; dividing the net change in the account's
value by the value of the account at the beginning of the base period to
determine the base period return; and multiplying the base period return by
365/7. The effective yield is calculated by compounding the unannualized base
period return by: adding one to the base period return, raising the sum to the
365/7th power; and subtracting one from the result.

To the extent investment representatives charge fees in connection with services
provided in conjunction with an investment in Shares, the Share performance is
lower for shareholders paying those fees.

PERFORMANCE COMPARISONS
Advertising and sales literature may include:

o references to ratings, rankings, and financial publications and/or
performance comparisons of Shares to certain indices;

o charts, graphs and illustrations using the Fund's returns, or returns in
general, that demonstrate investment concepts such as tax-deferred
compounding, dollar-cost averaging and systematic investment;

o discussions of economic, financial and political developments and their impact
on the securities market, including the portfolio manager's views on how such
developments could impact the Fund; and

o information about the mutual fund industry from sources such as the Investment
Company Institute.

The Fund may compare its performance, or performance for the types of securities
in which it invests, to a variety of other investments, including federally
insured bank products such as bank savings accounts, certificates of deposit and
Treasury bills.

The Fund may quote information from reliable sources regarding individual
countries and regions, world stock exchanges, and economic and demographic
statistics.

You may use financial publications and/or indices to obtain a more complete view
of Share performance. When comparing performance, you should consider all
relevant factors such as the composition of the index used, prevailing market
conditions, portfolio compositions of other funds, and methods used to value
portfolio securities and compute offering price. The financial publications
and/or indices which the Fund uses in advertising may include:

Lipper, Inc.
Lipper, Inc., ranks funds in various fund categories by making comparative
calculations using total return. Total return assumes the reinvestment of all
income dividends and capital gains distributions, if any. From time to time, the
Fund will quote its Lipper ranking in the "money market instruments" category in
advertising and sales literature.

iMoneyNet, Inc.
iMoneyNet's Money Fund Report publishes annualized yields of money market funds
weekly. iMoneyNet, Inc.'s Money Market Insight publication reports monthly and
12-month-to-date investment results for the same money funds.

Money
Money, a monthly magazine, regularly ranks money market funds in various
categories based on the latest available seven-day effective yield.

WHO IS FEDERATED INVESTORS, INC.?

Federated and its subsidiaries are dedicated to providing you with world-class
investment management. With offices in Pittsburgh, New York City and Frankfurt,
Federated is a firm with independent research, product breadth and industry
standing.

Federated seeks to achieve superior and sustainable investment performance for a
broad array of global clients through a disciplined investment process and an
information advantage created by proprietary fundamental research. Federated is
distinctive in our disciplined process that integrates proprietary research with
trading and portfolio management.

<R>

FEDERATED FUNDS OVERVIEW

Equities
As of December 31, 2005, Federated managed 35 equity funds totaling
approximately $26.0 billion in assets across growth, value, equity income,
international, index and sector allocation styles.

Taxable Fixed-Income
As of December 31, 2005, Federated managed 33 taxable bond funds including:
high-yield, multi-sector, mortgage-backed, U.S. government, U.S. corporate
and international, with assets approximating $16.0 billion.

Tax Free Fixed-Income
As of December 31, 2005, Federated managed 15 municipal bond funds with
approximately $3.1 billion in assets and 22 municipal money market funds with
approximately $27.6 billion in total assets.

Money Market Funds
As of December 31, 2005, Federated managed $145.3 billion in assets across 53
money market funds, including 18 government, 12 prime, 22 municipal and 1
euro-denominated with assets approximating $54.9 billion, $62.6 billion, $27.6
billion and $113.8 million.

The Chief Investment Officers responsible for oversight of the various
investment sectors within Federated are: Stephen F. Auth, CFA, for Global
Equity; Robert J. Ostrowski, CFA, for Taxable Fixed-Income; Mary Jo Ochson, CFA,
for Tax Free Fixed-Income; and Deborah A. Cunningham, CFA, for Money Market
Funds.

</R>

FINANCIAL INFORMATION

The Financial Statements for the Fund for the fiscal year ended February 28,
2006 are incorporated herein by reference to the Annual Report to Shareholders
of Edward Jones Money Market Fund dated February 28, 2006.

ADDRESSES

EDWARD JONES MONEY MARKET FUND

Investment Shares
Retirement Shares

Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000

Distributor
Federated Securities Corp.
Federated Investors Tower
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Investment Adviser
Passport Research, Ltd.
Federated Investors Tower
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Custodian
State Street Bank and Trust Company
P.O. Box 8600
Boston, MA 02266-8600

Transfer Agent and Dividend Disbursing Agent
Edward D. Jones & Co., L.P.
201 Progress Parkway
Maryland Heights. MO 63043

Independent Registered Public Accounting Firm
Ernst & Young LLP
200 Clarendon Street
Boston, MA 02116-5072

APPENDIX

<R>

The following is a list of persons other than the Adviser and its affiliates
that may receive nonpublic portfolio holdings information concerning the Fund:

CUSTODIAN
State Street Bank and Trust Company

SECURITIES LENDING AGENT
Citigroup

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Ernst & Young LLP

LEGAL COUNSEL
Dickstein Shapiro Morin & Oshinsky LLP
Reed Smith LLP

SERVICE PROVIDERS
Edward D. Jones & Co., L.P.
Bloomberg
Factset
Institutional Shareholder Services, Inc.

SECURITY PRICING SERVICES
Reuters
Standard & Poor's
FT Interactive Data
Bear Stearns

RATINGS AGENCIES
Standard & Poor's
Standard & Poor's Fund Services

PERFORMANCE REPORTING/PUBLICATIONS
iMoneyNet, Inc.
Lipper, Inc
Morningstar
NASDAQ
Value Line
Wiesenberger/Thompson Financial

OTHER
Investment Company Institute
Astec Consulting Group, Inc.

</R>

PART C. OTHER INFORMATION.

Item 23. Exhibits:
--------

(a) Declaration of Trust, dated May 17, 2000; (19)
(iii) Conformed copy of Amendment No. 6 to the Amended
and Restated Declaration of Trust, dated November
15, 2000; (19)
(iv) Conformed copy of Amendment No. 7 to the Amended
and Restated Declaration of Trust Dated April 5,
2001 (23)
(b)(i) Copy of Amended and Restated By-Laws, effective
April 2, 1999; (19)
(ii)Copy of Amendment No. 1 to By-Laws, (effective
August 23, 2003); (21)
(iii) Copy of Amendment No. 2 to the By-Laws; (22)
(iv) Copy of Amendment No. 3 to the By Laws; (23)
(v) Copy of Amendment No.4 and 5 to the By Laws; (+)
(c) Copy of Specimen Certificate for Shares of
Beneficial Interest of the Registrant; (15)
Conformed copy of the Investment Advisory Contract
of the Registrant; (11)
(d)(i) Conformed copy of Amendment to Investment Advisory
Contract Between Edward Jones Money Market Fund
and Passport Research, LTD. (20)
(e)(i) Conformed copy of Distributor's Contract; (11)
(ii) Copy of the Selling Group
Agreement; (15)

(iii) Conformed copy of Amended Distributor's Contract; (20)

(iv) Conformed copy
of Amendment to Distributor's Contract (October 1,
2003); (22)
(f)Not applicable;
(g)(i) Conformed copy of the revised
Custodian Agreement of the
Registrant; (15)
(ii) Conformed copy of Domestic Custody
Fee Schedule; (17)
(h)(i) Conformed copy of Second Amended
and Restated Shareholder Services
Agreement; (20)
(ii) Conformed Copy of Agreement for Transfer Agency
Services; (21)
(iii) The Registrant hereby incorporated the Conformed
copy of the Financial Administration and
Accounting Services Agreement, with attached
Exhibit A revised 3/1/06, form Item (h) (viii) of
the Federated Total Return Government Bond Fund
Registration Statement on Form N-1A, filed with
the Commission on April 26, 2006. (File Nos.
33-60411 and 811-07309).
(iv) Conformed copy of Amendment to Agreement for
Transfer Agency Services; (23)
(v) The Registrant hereby incorporates the Conformed
copy of the Transfer Agency and Service Agreement
between the Federated Funds listed on Schedule A
revised 3/1/06, from Item (h) (ix) of the
Federated Total Return Government Bond Fund
Registration Statement on Form N-1A, filed with
the Commission on April 26, 2006. (File Nos.
33-60411 and 811-07309).
(i) Conformed copy of Opinion and Consent of Counsel
as to Legality of Shares being registered; (15)
(j) Conformed copy of Consent of Independent Auditors; +
(k) Not applicable; (l) Conformed copy of Initial Capital
Understanding; (15)
(m) Not applicable; (n) The Registrant hereby incorporates
the copy of the Multiple Class Plan and the
attached Exhibits from Item (n) of the Federated
Total Return Government Bond Fund Registration
Statement on Form N-1A, filed with the Commission
on April 26, 2006. (File Nos. 33-60411 and
811-07309);
(o)(i) Conformed copy of Power of Attorney of the
Registrant; (19)
(ii) Conformed copy of Power of Attorney of William D.
Dawson, III, Chief Investment Officer of the
Registrant; (19)
(iii) Conformed copy of Power of Attorney of President
and Trustee and Vice Chairman of the Registrant;
(21)
(iv) Conformed copy of Power of Attorney of Treasurer
and Trustees of the Registrant; (+)
(p) The Registrant hereby incorporates
the conformed copy of the Code of
Ethics for Access Persons,
effective 1/1/2005, from Item
23(p) of the Money Market
Obligations Trust Registration
Statement on Form N-1A filed with
the Commission on February 25, 2005
(File Nos. 31602 and 811-5950).

+ All exhibits have been filed electronically.

11. Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 20 on Form N-1A filed February 20, 1990. (File Nos. 2-66437
and 811-2993).
15. Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 31 on Form N-1A filed April 20, 1995. (File Nos. 2-66437 and
811-2993).
17. Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 34 on Form N-1A filed April 28, 1998. (File Nos. 2-66437 and
811-2993).
18. Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 35 on Form N-1A filed February 26, 1999. (File Nos. 2-66437
and 811-2993).
19. Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 35 on Form N-1A filed April 6, 2001. (File Nos. 2-66437 and
811-2993).
20. Response is incorporated by referenced to Registrant's Post-Effective
Amendment No. 40 on Form N-1A filed April 26, 2002. (File Nos. 2-66437 and
811-2993).
21. Response is incorporated by referenced to Registrant's Post-Effective
Amendment No. 41 on Form N-1A filed May 1, 2003. (File Nos. 2-66437 and
811-2993).
22. Response is incorporated by referenced to Registrant's Post-Effective
Amendment No. 42 on Form N-1A filed April 29, 2004. (File Nos. 2-66437 and
811-2993).
23. Response is incorporated by referenced to Registrant's Post-Effective
Amendment No. 43 on Form N-1A filed April 29, 2005. (File Nos. 2-66437 and
811-2993).

Item 24. Persons Controlled by or Under Common Control with
Registrant:

None

Item 25. Indemnification: (11)
---------------

Item 26. Business and Other Connections of Investment Adviser:
----------------------------------------------------
For a description of the other business of the investment
adviser, see the section entitled "Who Manages the Fund?"
in Part A. The affiliations with the Registrant of two of
the Trustees and two of the Officers of the investment
adviser are included in Part B of this Registration
Statement under "Who Manages and Provides Services to the
Fund?" The remaining Trustees of the investment adviser
and, in parentheses, their principal occupations are:
Thomas R. Donahue, (Chief Financial Officer, Federated
Investors, Inc.), 1001 Liberty Avenue, Pittsburgh, PA,
15222-3779 and Mark D. Olson (a principal of the firm, Mark
D. Olson & Company, L.L.C. and Partner, Wilson, Halbrook &
Bayard, P.A.), 800 Delaware Avenue, P.O. Box 2305,
Wilmington, DE 19899-2305.

The remaining Officers of the investment adviser are:

President/ Chief Executive Officer
and Trustee: John B. Fisher

Vice Chairman: William D. Dawson, III

Senior Vice Presidents: J. Scott Albrecht
Joseph M. Balestrino
Jonathan C. Conley
Deborah A. Cunningham
Mark E. Durbiano
Donald T. Ellenberger
Susan R. Hill
Robert M. Kowit
Jeffrey A. Kozemchak
Mary Jo Ochson
Robert J. Ostrowski
Richard Tito
Paige Wilhelm

Vice Presidents: Todd A. Abraham
Randall S. Bauer
Nancy J.Belz
G. Andrew Bonnewell
Karol Crummie
Lee R. Cunningham, II
B. Anthony Delserone,Jr.
Eamonn G. Folan
William Ehling
Richard J. Gallo
John T. Gentry
Kathyrn P. Glass
Patricia L. Heagy
William R. Jamison
Nathan H. Kehm
John C. Kerber
J. Andrew Kirschler
Marian R. Marinack
Kevin McCloskey
John W. McGonigle
Natalie F. Metz
Thomas J. Mitchell
Joseph M. Natoli
Bob Nolte
Mary Kay Pavuk
Jeffrey A. Petro
John Polinski
Ihab L. Salib
Roberto Sanchez-Dahl, Sr.
John Sidawi
Michael W. Sirianni, Jr.
Christopher Smith
Timothy G. Trebilcock
Paolo H. Valle
Stephen J. Wagner
George B. Wright

Assistant Vice Presidents: Hanan Callas
Jerome Conner
James R. Crea, Jr.
Richard Cumberledge
Assistant Vice Presidents: Jason DeVito
Timothy Gannon
James Grant
Tracey L. Lusk
Ann Manley
Karl Mocharko
Joseph Mycka
Nick Navari
Gene Neavin
Liam O'Connell
Rae Ann Rice
Brian Ruffner
Kyle D. Stewart
Mary Ellen Tesla
Nichlas S. Tripodes
Mark Weiss

Secretary: G. Andrew Bonnewell

Treasurer: Thomas R. Donahue

Assistant Treasurer: Denis McAuley, III

The business address of each of the Officers of the investment
adviser is Federated Investors Tower, 1001 Liberty Avenue,
Pittsburgh, Pennsylvania 15222-3779. These individuals are also
officers of a majority of the investment advisers to the investment
companies in the Federated Fund Complex described in Part B of this
Registration Statement.

Item 27. Principal Underwriters:
-----------------------

(a) Federated Securities Corp. the Distributor for shares of the
Registrant, acts as principal underwriter for the following
open-end investment companies, including the Registrant:

Cash Trust Series, Inc.; Cash Trust Series II;
Federated Adjustable Rate Securities Fund;
Federated American Leaders Fund, Inc.;
Federated Core Trust; Federated Core Trust II,
L.P.; Federated Equity Funds; Federated Equity
Income Fund, Inc.; Federated Fixed Income
Securities, Inc.; Federated GNMA Trust;
Federated Government Income Securities, Inc.;
Federated High Income Bond Fund, Inc.;
Federated High Yield Municipal Income Fund;
Federated High Yield Trust; Federated Income
Securities Trust; Federated Income Trust;
Federated Index Trust; Federated Institutional
Trust; Federated Insurance Series; Federated
Intermediate Government Fund, Inc. Federated
International Series, Inc.; Federated
Investment Series Funds, Inc.; Federated
Managed Allocation Portfolios; Federated
Municipal High Yield Advantage Fund, Inc.;
Federated Municipal Securities Fund, Inc.;
Federated Municipal Securities Income Trust;
Federated Premier Intermediate Municipal Income
Fund; Federated Premier Municipal Income Fund;
Federated Short-Term Municipal Trust; Federated
Stock and Bond Fund, Inc.; Federated Stock
Trust; Federated Total Return Government Bond
Fund; Federated Total Return Series, Inc.;
Federated U.S. Government Bond Fund; Federated
U.S. Government Securities Fund: 1-3 Years;
Federated U.S. Government Securities Fund: 2-5
Years; Federated World Investment Series, Inc.;
Intermediate Municipal Trust; Edward Jones
Money Market Fund and Money Market Obligations
Trust.

(b)

(1) (2) (3) Positions and Offices Positions and Offices
With Distributor Name With Registrant
--------------------- ----------------- ----------------------
Chairman: Richard B. Fisher

Executive Vice
Vice President, Assistant
Secretary and Director: Thomas R. Donahue

President and Director: Thomas E. Territ

Vice President and Director: Peter J. Germain

Treasurer and Director: Denis McAuley III

Senior Vice Presidents: Mark W. Bloss
Richard W. Boyd
Laura M. Deger
Peter W. Eisenbrandt
Theodore Fadool, Jr.
Christopher Fives
James S. Hamilton
James M. Heaton
Harry J. Kennedy
Anne H. Kruczek
Amy Michaliszyn
Keith Nixon
Solon A. Person, IV
Colin B. Starks
Senior Vice Presidents: Robert F. Tousignant
Paul Uhlman

Vice Presidents: Irving Anderson
Dan Berry
John B. Bohnet
Edward R. Bozek
Jane E. Broeren-Lambesis
Bryan Burke
Craig Burness
David J. Callahan
Mark Carroll
Dan Casey
Scott Charlton
Steven R. Cohen
James Conely
Kevin J. Crenny
G. Michael Cullen
Beth C. Dell
Ron Dorman
Donald C. Edwards
Lee England
(1) (2) (3) Positions and Offices Positions and Offices
With Distributor Name With Registrant
--------------------- ----------------- ----------------------
Vice Presidents: Timothy Franklin
Jamie Getz
Scott Gundersen
Dayna C. Haferkamp
Raymond J. Hanley
Vincent L. Harper, Jr.
Bruce E. Hastings
Christopher L. Johnston
Michael W. Koenig
Ed Koontz
Christopher A. Layton
Michael H. Liss
Michael R. Manning
Michael Marcin
Martin J. McCaffrey
Mary A. McCaffrey
Richard C. Mihm
Chris Milliken
Vincent T. Morrow
Doris T. Muller
Alec H. Neilly
Rebecca Nelson
James E. Ostrowski
Mark Patsy
Thomas A. Peter III
Robert F. Phillips
Chris Randal
Josh Rasmussen
Richard A. Recker
Christopher Renwick
Diane M. Robinson
Brian S. Ronayne
Timothy A. Rosewicz
Thomas S. Schinabeck
Edward J. Segura
Peter Siconolfi
Edward L. Smith
John A. Staley
Jeffrey A. Stewart
Mark Strubel
Kevin Stutz
William C. Tustin
Vice Presidents: Michael Vahl
G. Walter Whalen
Stephen White
Jeff Wick
Patrick M. Wiethorn
Lewis Williams
Edward J. Wojnarowski
Michael P. Wolff

Assistant Vice Presidents: Lisa A. Toma
Robert W. Bauman
Charles L. Davis, Jr.
Brian F. Palusa
William Rose

Secretary: C. Todd Gibson

The business address of each of the Officers of Federated
Securities Corp. is Federated Investors Tower, 1001 Liberty
Avenue, Pittsburgh, Pennsylvania 15222-3779.

Item 28. Location of Accounts and Records:

All accounts and records required to be maintained by Section 31(a)
of the Investment Company Act of 1940 and Rules 31a-1 through 31a-3
promulgated thereunder are maintained at one of the following
locations:

Edward Jones Money Market Reed Smith
Fund Investment Management
Group (IMG)
Federated Investors Tower
12th Floor
1001 Liberty Avenue
Pittsburgh, PA 15222-3779

Federated Investors Funds
5800 Corporate Drive
Pittsburgh, Pennsylvania
15237-7000

State Street Bank and Trust P.O. Box 8600
Company ("Custodian, Transfer Agent Boston, Massachusetts
and Dividend Disbursing Agent") 02266-8600

Federated Shareholder Services Company
("Custodian, Transfer Agent and Edward D. Jones & Co., L.P.
Dividend Disbursing Agent") 201 Progress Parkway
Maryland Heights, MO
63043

Federated Services Company Federated Investors
("Administrator") Tower
1001 Liberty Avenue
Pittsburgh, Pennsylvania
15222-3779

Passport Research, Ltd. Federated Investors Tower
("Adviser") 1001 Liberty Avenue
Pittsburgh, Pennsylvania
15222-3779

Item 29. Management Services: Not applicable.
-------------------

Item 30. Undertakings:
------------

Registrant hereby undertakes to comply with the provisions of
Section 16(c) of the 1940 Act with respect to the removal of
Trustees and the calling of special shareholder meetings by
shareholders.

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant, EDWARD JONES MONEY MARKET FUND,
certifies that it meets all of the requirements for effectiveness of this
Amendment to its Registration Statement pursuant to Rule 485(b) under the
Securities Act of 1933 and has duly caused this Amendment to its Registration
Statement to be signed on its behalf by the undersigned, thereto duly
authorized, in the City of Pittsburgh and Commonwealth of Pennsylvania, on the
28th day of April, 2006.

EDWARD JONES MONEY MARKET FUND

BY: /s/ Nelson W. Winter
Nelson W. Winter, Assistant Secretary

Pursuant to the requirements of the Securities Act of 1933, this Amendment
to its Registration Statement has been signed below by the following person in
the capacity and on the date indicated:

NAME TITLE DATE
---- ----- ----

By: /s/ Nelson W. Winter Attorney In Fact April 28, 2006
Nelson W. Winter For the Persons
ASSISTANT SECRETARY Listed Below

NAME TITLE

John F. Donahue* Trustee

Richard B. Fisher* Vice Chairman

J. Christopher Donahue* President and Trustee
(Principal Executive Officer)

Richard A. Novak * Treasurer

William D. Dawson, III* Chief Investment Officer

Thomas G. Bigley* Trustee

John T. Conroy, Jr.* Trustee

Nicholas P. Constantakis* Trustee

John F. Cunningham* Trustee

Lawrence D. Ellis, M.D.* Trustee

Peter E. Madden* Trustee

Charles F. Mansfield, Jr.* Trustee

John E. Murray, Jr.* Trustee

Marjorie P. Smuts* Trustee

John S. Walsh* Trustee

James F. Will Trustee

* By Power of Attorney

EdwardJones

<R>

Edward Jones Money Market Fund

</R>

<R>

PROSPECTUS

</R>

INVESTMENT SHARESRETIREMENT SHARES

Risk/Return Summary

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

WHAT ARE THE FUND'S MAIN INVESTMENT STRATEGIES?

WHAT ARE THE MAIN RISKS OF INVESTING IN THE FUND?

Risk/Return Bar Chart and Table

Average Annual Total Return Table

What are the Fund's Fees and Expenses?

EDWARD JONES MONEY MARKET FUND

FEES AND EXPENSES

EXAMPLE

What are the Fund's Investment Strategies?

What are the Principal Securities in Which the Fund Invests?

FIXED-INCOME SECURITIES

U.S. Treasury Securities

Agency Securities

Repurchase Agreements

What are the Specific Risks of Investing in the Fund?

INTEREST RATE RISK

CREDIT RISK

What Do Shares Cost?

<R>

THE EDWARD JONES FSA AND CFO ACCOUNTS

</R>

How is the Fund Sold?

How to Purchase Shares

BY CHECK

BY WIRE

<R>

RETIREMENT INVESTMENTS

</R>

BY AUTOMATED CLEARING HOUSE (ACH)

<R>

How to Redeem Shares

</R>

BY TELEPHONE

BY MAIL

<R>

PAYMENT METHODS FOR REDEMPTIONS

</R>

Redemption in Kind

LIMITATIONS ON REDEMPTION PROCEEDS

DISTRIBUTIONS FROM RETIREMENT ACCOUNTS

<R>

CHECKWRITING AND DEBIT CARD PRIVILEGE

</R>

ADDITIONAL CONDITIONS

Share Certificates

Account and Share Information

ACCOUNT ACTIVITY

DIVIDENDS AND CAPITAL GAINS

ACCOUNTS WITH LOW BALANCES

TAX INFORMATION

FREQUENT TRADING POLICIES

PORTFOLIO HOLDINGS INFORMATION

Who Manages the Fund?

ADDITIONAL PAYMENTS TO EDWARD JONES

ADVISORY FEES

Legal Proceedings

<R>

FEDERATED

</R>

<R>

EDWARD JONES

</R>

Financial Information

FINANCIAL HIGHLIGHTS

Financial Highlights-Investment Shares

Financial Highlights-Retirement Shares

<R>

Appendix A: Hypothetical Investment and Expense Information

</R>

<R>

INVESTMENT SHARES
RETIREMENT SHARES

EDWARD D. JONES MONEY MARKET FUND - INVESTMENT SHARES
ANNUAL EXPENSE RATIO: 0.82%
MAXIMUM FRONT-END SALES CHARGE: 0.00%

EDWARD D. JONES MONEY MARKET FUND - RETIREMENT SHARES
ANNUAL EXPENSE RATIO: 1.38%
MAXIMUM FRONT-END SALES CHARGE: 0.00%