N-30D 1 MONEY MARKET TRUST SEMI-ANNUAL REPORT TO SHAREHOLDERS JANUARY 31, 1995 FEDERATED SECURITIES CORP. --------------------------------------------- Distributor A subsidiary of Federated Investors Federated Investors Tower Pittsburgh, PA 15222-3779 609900105 8030103 (3/95) PRESIDENT'S MESSAGE -------------------------------------------------------------------------------- Dear Shareholder: I am pleased to present the Semi-Annual Report to Shareholders for Money Market Trust (the "Trust"), which covers the six-month period ended January 31, 1995. The Report begins with our Investment Review, which is a brief commentary on the short-term government market from the Trust's portfolio manager. Following the Investment Review, you will find Financial Statements containing the Trust's Portfolio of Investments. The Trust is managed to pursue competitive daily income along with the additional advantages of daily liquidity and stability of principal.* At the end of the reporting period, the Trust's portfolio was invested primarily in high-quality commercial paper, variable rate obligations, and repurchase agreements. At the end of the period, the Trust's net assets stood at $551.6 million. Dividends paid to shareholders during the period totaled $13.4 million, or $0.02 per share. Thank you for your confidence in Money Market Trust. We welcome your comments and suggestions. Sincerely, Glen R. Johnson President March 15, 1995 * No money market fund can guarantee that a stable net asset value will be maintained. An investment in the Trust is neither insured nor guaranteed by the U.S. government. INVESTMENT REVIEW -------------------------------------------------------------------------------- The Trust invests exclusively in money market instruments maturing in twelve months or less. The average maturity of these securities, computed on a dollar-weighted basis, is restricted to 90 days or less. Portfolio securities must be rated in the highest short-term rating category by one or more of the nationally recognized statistical rating organizations, or be of comparable quality to securities having such ratings. Typical security types include, but are not limited to, commercial paper, certificates of deposit, time deposits, variable rate instruments and repurchase agreements. During the reporting period, the Federal Reserve Board (the "Fed") continued its restrictive interest rate stance. The Fed tightened monetary policy by increasing the federal funds target rate from 4.25% to 5.50% over the period. Despite the continued low inflationary environment, solid economic growth, and increasing employment rolls, capacity constraints would appear to point toward another increase to the targeted fed funds rate early in 1995. The target average maturity range for the Trust has remained in its current 30-40 day range throughout the reporting period. This reflects management's continuing bias that the money market yield curve is fairly steep, and value can be obtained through both structure and by stepping out the curve a bit. In structuring the Trust's portfolio, there is continued emphasis placed on positioning 25-30% of the Trust's assets in variable rate demand notes and accomplishing a modest barbell structure. Being on the shorter end of the average maturity spectrum has proven to be helpful over the reporting period. The Fed has twice raised short-term rates since July 31, 1994. Despite the fact that both the Consumer Price Index and the Producer's Price Index indicate moderate inflationary levels, the Fed continues to fight "inflation expectations." During the six months ended January 31, 1995, the net assets of Money Market Trust increased from $539.9 to $551.6 million, while the 7-day yield increased from 4.09% to 5.56%*. The effective average maturity of the Trust on January 31, 1995, was 30 days. * Performance quoted represents past performance and is not indicative of future results. Yield will vary. MONEY MARKET TRUST PORTFOLIO OF INVESTMENTS JANUARY 31, 1995 (UNAUDITED) --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE ----------- ------ --------------------------------------------------------------- ------------ *COMMERCIAL PAPER--39.5% ---------------------------------------------------------------------------------- DIVERSIFIED--3.6% --------------------------------------------------------------- $20,000,000 Rockwell International Corp., 6.818%-6.871%, 6/5/1995-6/15/1995 $ 19,527,665 --------------------------------------------------------------- ------------ FINANCE--COMMERCIAL--16.7% --------------------------------------------------------------- 2,000,000 Asset Securitization Cooperative Corp., 5.639%, 2/13/1995 1,996,300 --------------------------------------------------------------- 11,000,000 CIESCO, Inc., 6.133%-6.275%, 4/18/1995-5/17/1995 10,835,076 --------------------------------------------------------------- 10,000,000 CIT Group Holdings, Inc., 6.31%, 3/20/1995 9,919,055 --------------------------------------------------------------- 16,300,000 Corporate Asset Funding Co., Inc. (CAFCO), 5.203%-6.093%, 3/3/1995-3/21/1995 16,208,132 --------------------------------------------------------------- 10,000,000 Falcon Asset Securitization Corp., 6.253%, 3/13/1995 9,931,667 --------------------------------------------------------------- 22,000,000 General Electric Capital Corp., 5.215%-6.72%, 2/8/1995-7/19/1995 21,650,578 --------------------------------------------------------------- 12,000,000 PREFCO-Preferred Receivables Funding Co., 5.362%-6.299%, 3/9/1995-3/16/1995 11,925,460 --------------------------------------------------------------- 10,000,000 Sheffield Receivables Corp., 6.253%-6.269%, 4/27/1995-5/2/1995 9,850,285 --------------------------------------------------------------- ------------ Total 92,316,553 --------------------------------------------------------------- ------------ FINANCE--RETAIL--10.4% --------------------------------------------------------------- 15,000,000 Associates Corp. of North America, 5.831%, 2/1/1995 15,000,000 --------------------------------------------------------------- 19,000,000 Ford Credit Receivables Funding, Inc., 5.585%-6.206%, 2/2/1995-4/26/1995 18,833,294 --------------------------------------------------------------- 24,000,000 New Center Asset Trust, A1+/P1 Series, 5.254%-6.823%, 2/14/1995-7/21/1995 23,550,343 --------------------------------------------------------------- ------------ Total 57,383,637 --------------------------------------------------------------- ------------ INSURANCE--6.3% --------------------------------------------------------------- 25,063,000 Prospect Street Senior Portfolio, L.P., (Guaranteed by Financial Security Assurance, Inc.), 5.239%-6.877%, 2/14/1995-6/9/1995 24,763,864 --------------------------------------------------------------- 10,000,000 Prudential Funding Corp., 6.03%, 5/11/1995 9,839,125 --------------------------------------------------------------- ------------ Total 34,602,989 --------------------------------------------------------------- ------------ TELECOMMUNICATIONS--1.8% --------------------------------------------------------------- 10,000,000 Ameritech Corp., 5.917%, 4/28/1995 9,862,639 --------------------------------------------------------------- ------------
MONEY MARKET TRUST --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE ----------- ------ --------------------------------------------------------------- ------------ *COMMERCIAL PAPER--CONTINUED ---------------------------------------------------------------------------------- TRANSPORTATION-0.7% --------------------------------------------------------------- $ 4,000,000 Norfolk Southern Corp., 5.87%, 2/21/1995 $ 3,987,156 --------------------------------------------------------------- ------------ TOTAL COMMERCIAL PAPER 217,680,639 --------------------------------------------------------------- ------------ CORPORATE BONDS--0.9% ---------------------------------------------------------------------------------- BANKING-0.9% --------------------------------------------------------------- 5,000,000 (a) SMM Trust Series 1994-H, (Guaranteed by Morgan Guaranty Trust Co., NY), 6.034%, 2/22/1995 4,998,931 --------------------------------------------------------------- ------------ VARIABLE RATE OBLIGATIONS--32% ---------------------------------------------------------------------------------- BANKING-13.8% --------------------------------------------------------------- 7,300,000 Hunt Club Apartments, Inc. (Huntington National Bank, Columbus, OH LOC), 6.360%, 2/1/1995 7,300,000 --------------------------------------------------------------- 22,205,000 Kenny, Donald R. and Cheryl A. (Huntington National Bank, Columbus, OH LOC), 6.360%, 2/2/1995 22,205,000 --------------------------------------------------------------- 5,200,000 Melberger, Clifford K. and Ruth B. (PNC Bank, Northeast, PA LOC), 6.304%, 2/6/1995 5,200,000 --------------------------------------------------------------- 19,000,000 (a) SMM Trust 1994-B (Guaranteed by Morgan Guaranty Trust Co., NY), 5.892%, 2/11/1995 18,994,310 --------------------------------------------------------------- 7,800,000 Shamrock Communications (PNC Bank, Northeast, PA LOC), 6.304%, 2/6/1995 7,800,000 --------------------------------------------------------------- 8,400,000 The Scranton Times (PNC Bank, Northeast, PA LOC), 6.304%, 2/6/1995 8,400,000 ---------------------------------------------------------------
MONEY MARKET TRUST --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE ----------- ------ --------------------------------------------------------------- ------------ VARIABLE RATE OBLIGATIONS--CONTINUED ---------------------------------------------------------------------------------- $ 5,990,000 Westminster Village Terre Haute, Inc. (Huntington National Bank, Columbus, OH LOC), 6.360%, 2/2/1995 $ 5,990,000 --------------------------------------------------------------- ------------ Total 75,889,310 --------------------------------------------------------------- ------------ ELECTRICAL EQUIPMENT-4.2% --------------------------------------------------------------- 5,215,354 Marta Leasing Ltd. (Guaranteed by General Electric Co.), 6.304%, 2/6/1995 5,215,354 --------------------------------------------------------------- 23,210,903 Northwest Airlines, Inc. (Guaranteed by General Electric Co.), 6.337%, 2/6/1995 23,210,903 --------------------------------------------------------------- ------------ FINANCE-AUTOMOTIVE-8.5% --------------------------------------------------------------- 25,000,000 Carco Auto Loan Master Trust, Series 1993-2, 5.791%, 2/15/1995 25,000,000 --------------------------------------------------------------- 22,000,000 Money Market Auto Loan Trust, 5.896%, 2/15/1995 22,000,000 --------------------------------------------------------------- ------------ Total 47,000,000 --------------------------------------------------------------- ------------ INSURANCE-4.5% --------------------------------------------------------------- 25,000,000 (a) Peoples Security Life Insurance, 6.290%, 2/1/1995 25,000,000 --------------------------------------------------------------- ------------ TOTAL VARIABLE RATE OBLIGATIONS 176,315,567 --------------------------------------------------------------- ------------ ***REPURCHASE AGREEMENTS--27.6% ---------------------------------------------------------------------------------- 25,000,000 Chase Securities, Inc., 5.80%, dated 1/31/1995, due 2/1/1995 25,000,000 --------------------------------------------------------------- 10,100,000 Chemical Banking Corp., 5.82%, dated 1/31/1995, due 2/1/1995 10,100,000 --------------------------------------------------------------- 14,822,000 Fuji Government Securities, Inc., 5.82%, dated 1/31/1995, due 2/1/1995 14,822,000 --------------------------------------------------------------- 19,700,000 Lehman Government Securities, Inc., 5.83%, dated 1/31/1995, due 2/1/1995 19,700,000 --------------------------------------------------------------- 15,000,000 Nationsbank of North Carolina N.A., 5.82%, dated 1/31/1995, due 2/1/1995 15,000,000 --------------------------------------------------------------- 14,000,000 PaineWebber Group, Inc., 5.87%, dated 1/31/1995, due 2/1/1995 14,000,000 --------------------------------------------------------------- 3,800,000 State Street Bank and Trust Co., Boston, MA, 5.82%, dated 1/31/1995, due 2/1/1995 3,800,000 ---------------------------------------------------------------
MONEY MARKET TRUST --------------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE ----------- ------ --------------------------------------------------------------- ------------ ***REPURCHASE AGREEMENTS--CONTINUED ---------------------------------------------------------------------------------- $50,000,000 Warburg Securities, 5.82%, dated 1/31/1995, due 2/1/1995 $ 50,000,000 --------------------------------------------------------------- ------------ Total 152,422,000 --------------------------------------------------------------- ------------ TOTAL REPURCHASE AGREEMENTS, AT AMORTIZED COST 152,422,000 --------------------------------------------------------------- ------------ TOTAL INVESTMENTS $551,417,137+ --------------------------------------------------------------- ------------
+ Also represents cost for federal tax purposes. * Each issue shows the rate of discount at the time of purchase for discount issues, or the coupon for interest bearing issues. ** Current rate and next reset date shown. *** Repurchase agreements are fully collateralized by U.S. government and/or agency obligations. The investments in repurchase agreements are through participation in joint accounts with other Federated funds. (a) Restricted Securities Note: The categories of investments are shown as a percentage of net assets ($551,647,182) at January 31, 1995. The following abbreviation is used throughout this portfolio: LOC--Letter of Credit (See Notes which are an integral part of the Financial Statements) MONEY MARKET TRUST STATEMENT OF ASSETS AND LIABILITIES JANUARY 31, 1995 (UNAUDITED) -------------------------------------------------------------------------------- ASSETS: -------------------------------------------------------------------------------- Investments in repurchase agreements $152,422,000 ----------------------------------------------------------------- Investments in securities 398,995,137 ----------------------------------------------------------------- ------------ Total Investments, at amortized cost and value $551,417,137 -------------------------------------------------------------------------------- Cash 3,847,341 -------------------------------------------------------------------------------- Income receivable 973,635 -------------------------------------------------------------------------------- Receivable for shares sold 9,907,389 -------------------------------------------------------------------------------- ------------ Total Assets 566,145,502 -------------------------------------------------------------------------------- LIABILITIES: -------------------------------------------------------------------------------- Payable for shares redeemed $ 12,267,144 ----------------------------------------------------------------- Income distribution payable 2,136,437 ----------------------------------------------------------------- Accrued expenses 94,739 ----------------------------------------------------------------- ------------ Total Liabilities 14,498,320 -------------------------------------------------------------------------------- ------------ NET ASSETS for 551,647,182 shares outstanding $551,647,182 -------------------------------------------------------------------------------- ------------ NET ASSET VALUE, Offering Price, and Redemption Price Per Share: Net Asset Value Per Share ($551,647,182 / 551,647,182 shares outstanding) $1.00 -------------------------------------------------------------------------------- ------------
(See Notes which are an integral part of the Financial Statements) MONEY MARKET TRUST STATEMENT OF OPERATIONS SIX MONTHS ENDED JANUARY 31, 1995 (UNAUDITED) -------------------------------------------------------------------------------- INVESTMENT INCOME: --------------------------------------------------------------------------------- Interest income $14,663,473 --------------------------------------------------------------------------------- EXPENSES: --------------------------------------------------------------------------------- Investment advisory fee $1,100,705 -------------------------------------------------------------------- Administrative personnel and services fee 208,308 -------------------------------------------------------------------- Custodian fees 99,346 -------------------------------------------------------------------- Transfer agent and dividend disbursing agent fees and expenses 14,762 -------------------------------------------------------------------- Trustees fees 9,640 -------------------------------------------------------------------- Auditing fees 8,254 -------------------------------------------------------------------- Legal fees 9,899 -------------------------------------------------------------------- Portfolio accounting fees 46,773 -------------------------------------------------------------------- Shareholder services fee 137,589 -------------------------------------------------------------------- Share registration costs 15,456 -------------------------------------------------------------------- Printing and postage 5,503 -------------------------------------------------------------------- Insurance premiums 9,423 -------------------------------------------------------------------- Taxes 2,208 -------------------------------------------------------------------- Miscellaneous 6,140 -------------------------------------------------------------------- ---------- Total expenses 1,674,006 -------------------------------------------------------------------- Deduct--Waiver of investment advisory fee 417,020 -------------------------------------------------------------------- ---------- Net expenses 1,256,986 --------------------------------------------------------------------------------- ----------- Net investment income $13,406,487 --------------------------------------------------------------------------------- -----------
(See Notes which are an integral part of the Financial Statements) MONEY MARKET TRUST STATEMENT OF CHANGES IN NET ASSETS --------------------------------------------------------------------------------
SIX MONTHS ENDED JANUARY 31, 1995 YEAR ENDED (UNAUDITED) JULY 31, 1994 ----------------- --------------- INCREASE (DECREASE) IN NET ASSETS: -------------------------------------------------------- OPERATIONS-- -------------------------------------------------------- Net investment income $ 13,406,487 $ 19,609,778 -------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS-- -------------------------------------------------------- Distributions from net investment income (13,406,487) (19,609,778) -------------------------------------------------------- ----------------- --------------- SHARE TRANSACTIONS-- -------------------------------------------------------- Proceeds from sale of shares 1,365,884,884 3,027,736,629 -------------------------------------------------------- Net asset value of shares issued to shareholders in payment of distributions declared 2,155,980 3,874,627 -------------------------------------------------------- Cost of shares redeemed (1,356,376,987) (3,204,204,720) -------------------------------------------------------- ----------------- --------------- Change in net assets resulting from share transactions 11,663,877 (172,593,464) -------------------------------------------------------- ----------------- --------------- Change in net assets 11,663,877 (172,593,464) -------------------------------------------------------- NET ASSETS: -------------------------------------------------------- Beginning of period 539,983,305 712,576,769 -------------------------------------------------------- ----------------- --------------- End of period $ 551,647,182 $ 539,983,305 -------------------------------------------------------- ----------------- ---------------
(See Notes which are an integral part of the Financial Statements) MONEY MARKET TRUST FINANCIAL HIGHLIGHTS -------------------------------------------------------------------------------- (FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
SIX MONTHS ENDED JANUARY 31, PERIOD ENDED JULY 31, 1995 -------------------------------------------------------------------------------------------------- (UNAUDITED) 1994 1993 1992 1991 1990 1989 1988 1987 1986 ---------- ----- ----- ----- ----- ----- ----- ----- ----- ----- NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 ------------- INCOME FROM INVESTMENT OPERATIONS ------------- Net investment income 0.02 0.03 0.03 0.04 0.07 0.08 0.09 0.07 0.06 0.07 ------------- ----- --- --- --- --- --- --- --- --- --- LESS DISTRIBUTIONS ------------- Distributions from net investment income 0.02 0.03 0.03 0.04 0.07 0.08 0.09 0.07 0.06 0.07 ------------- ----- --- --- --- --- --- --- --- --- --- NET ASSET VALUE, END OF PERIOD $ 1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 ------------- ----- --- --- --- --- --- --- --- --- --- TOTAL RETURN (A) 2.47% 3.18% 3.00% 4.49% 7.05% 8.43% 8.93% 6.94% 5.98% 7.42% ------------- RATIOS TO AVERAGE NET ASSETS ------------- Expenses 0.46%(b) 0.46% 0.46% 0.46% 0.46% 0.46% 0.45% 0.45% 0.45% 0.45% ------------- Net investment income 4.87%(b) 3.11% 2.98% 4.40% 6.88% 8.14% 8.58% 6.72% 5.80% 7.17% ------------- SUPPLEMENTAL DATA ------------- Net assets, end of period (000 omitted) $551,647 $539,983 $712,577 $943,893 $956,538 $1,189,023 $1,649,683 $1,685,914 $1,747,618 $1,904,972 -------------
(a) Based on net asset value, which does not reflect the sales load or contingent deferred sales charge, if applicable. (b) Computed on an annualized basis. (See Notes which are an integral part of the Financial Statements) MONEY MARKET TRUST NOTES TO FINANCIAL STATEMENTS JANUARY 31, 1995 (UNAUDITED) -------------------------------------------------------------------------------- (1) ORGANIZATION Money Market Trust (the "Trust") is registered under the Investment Company Act of 1940, as amended (the "Act"), as a diversified, open-end management investment company. (2) SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies consistently followed by the Trust in the preparation of its financial statements. These policies are in conformity with generally accepted accounting principles. INVESTMENT VALUATIONS--The Trust's use of the amortized cost method to value its portfolio securities is in accordance with Rule 2a-7 under the Act. REPURCHASE AGREEMENTS--It is the policy of the Trust to require the custodian bank to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian bank's vault, all securities held as collateral in support of repurchase agreement investments. Additionally, procedures have been established by the Trust to monitor, on a daily basis, the market value of each repurchase agreement's underlying collateral to ensure that the value of collateral at least equals the principal amount of the repurchase agreement, including accrued interest. The Trust will only enter into repurchase agreements with banks and other recognized financial institutions, such as broker/dealers, which are deemed by the Trust's adviser to be creditworthy pursuant to the guidelines established by the Board of Trustees (the "Trustees"). Risks may arise from the potential inability of counterparties to honor the terms of the repurchase agreement. Accordingly, the Trust could receive less than the repurchase price on the sale of collateral securities. INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS--Interest income and expenses are accrued daily. Bond premium and discount, if applicable, are amortized as required by the Internal Revenue Code, as amended (the "Code"). Distributions to shareholders are recorded on the ex-dividend date. FEDERAL TAXES--It is the Trust's policy to comply with the provisions of the Code applicable to regulated investment companies and to distribute to shareholders each year substantially all of its taxable income. Accordingly, no provisions for federal tax are necessary.
MONEY MARKET TRUST -------------------------------------------------------------------------------- WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS--The Trust may engage in when-issued or delayed delivery transactions. The Trust records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed delivery basis are marked to market daily and begin earning interest on the settlement date. OTHER--Investment transactions are accounted for on the trade date.
(3) SHARES OF BENEFICIAL INTEREST The Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest (without par value). At January 31, 1995, capital paid-in aggregated $551,647,182. Transactions in shares were as follows:
SIX MONTHS ENDED PERIOD ENDED JANUARY 31, 1995 JULY 31, 1994 -------------------------------------------------------- ----------------- -------------- Shares sold 1,365,884,884 3,027,736,629 -------------------------------------------------------- Shares issued to shareholders in payment of dividends declared 2,155,980 3,874,627 -------------------------------------------------------- Shares redeemed (1,356,376,987) (3,204,204,720) -------------------------------------------------------- ---------------- ------------- Net change resulting from share transactions 11,663,877 (172,593,464 ) -------------------------------------------------------- ---------------- -------------
(4) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES INVESTMENT ADVISORY FEE--Federated Research, the Trust's investment adviser (the "Adviser"), receives for its services an annual investment advisory fee equal to .40 of 1% of the Trust's average daily net assets. The Adviser will waive, to the extent of its advisory fee, the amount, if any, by which the Trust's aggregate annual operating expenses exceed .45 of 1% of average daily net assets of the Trust. ADMINISTRATIVE FEE--Federated Administrative Services ("FAS") provides the Trust with administrative personnel and services. The FAS fee is based on the level of average aggregate daily net assets of all funds advised by subsidiaries of Federated Investors for the period. The administrative fee received during the period of the Administrative Services Agreement shall be at least $125,000 per portfolio and $30,000 per each additional class of shares. SHAREHOLDER SERVICES FEE--Under the terms of a Shareholder Services Agreement with Federated Shareholders Services ("FSS"), the Trust will pay FSS up to .25 of 1% of average net assets of the Trust MONEY MARKET TRUST -------------------------------------------------------------------------------- for the period. This fee is to obtain certain personal services for shareholders and to maintain the shareholder accounts. TRANSFER AGENT AND DIVIDEND DISBURSING AGENT FEES AND EXPENSES--Federated Services Company ("FServ") serves as transfer and dividend disbursing agent for the Trust. The fee is based on the size, type, and number of accounts and transactions made by shareholders. PORTFOLIO ACCOUNTING FEES--FServ also maintains the Trust's accounting records for which it receives a fee. The fee is based on the level of the Trust's average net assets for the period, plus out-of-pocket expenses. CUSTODIAN FEES--State Street Bank and Trust is the Trust's custodian for which it receives a fee. The fee is based on the level of the Trust's average net assets for the period plus out-of-pocket expenses. GENERAL--Certain of the Officers and Trustees of the Trust are Officers and Trustees of the above companies. RESTRICTED SECURITIES--Restricted securities are securities that may only be resold upon registration under federal securities laws or in transactions exempt from such registration. In some cases, the issuer of restricted securities has agreed to register such securities for resale, at the issuer's expense, either upon demand by the Trust or in connection with another registered offering of the securities. Such restricted securities may be determined to be liquid under criteria established by the Trustees. The Trust will not incur any registration costs upon such resales. The Trust's restricted securities are valued at the price provided by dealers in the secondary market or, if no market prices are available, at the fair value as determined by the Trust's pricing committee. Additional information on each restricted security held at January 31, 1995 is as follows:
ACQUISITION ACQUISITION SECURITY DATE COST -------------------------------- ------------ ----------- SMM Trust Series 1994-B 9/7/94 $18,995,501 SMM Trust Series 1994-H 12/29/94 4,997,200 Peoples Security Life Insurance 7/11/94 25,000,000
TRUSTEES OFFICERS ----------------------------------------------------------------------------- John F. Donahue John F. Donahue Thomas G. Bigley Chairman John T. Conroy, Jr. Glen R. Johnson William J. Copeland President James E. Dowd J. Christopher Donahue Lawrence D. Ellis, M.D. Vice President Edward L. Flaherty, Jr. Richard B. Fisher Peter E. Madden Vice President Gregor F. Meyer Edward C. Gonzales Wesley W. Posvar Vice President and Treasurer Marjorie P. Smuts John W. McGonigle Vice President and Secretary David M. Taylor Assistant Treasurer Mark A. Sheehan Assistant Secretary
Mutual funds are not bank deposits or obligations, are not guaranteed by any bank, and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other government agency. Investment in mutual funds involves investment risk, including possible loss of principal. Although money market funds seek to maintain a stable net asset value of $1.00 per share, there is no assurance that they will be able to do so. This report is authorized for distribution to prospective investors only when preceded or accompanied by the Trust's prospectus which contains facts concerning its objective and policies, management fees, expenses and other information.