United States
Securities and Exchange Commission
Washington, D.C. 20549
Form N-CSR
Certified Shareholder Report of Registered Management Investment Companies
811-2993
(Investment Company Act File Number)
Edward Jones Money Market Fund
---------------------------------------------------------------
(Exact Name of Registrant as Specified in Charter)
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, Pennsylvania 15237-7000
(412) 288-1900
(Registrant's Telephone Number)
John W. McGonigle, Esquire
Federated Investors Tower
1001 Liberty Avenue
Pittsburgh, Pennsylvania 15222-3779
(Name and Address of Agent for Service)
(Notices should be sent to the Agent for Service)
Date of Fiscal Year End: 2/28/05
Date of Reporting Period: Six months ended 8/31/04
Item 1. Reports to Stockholders
EdwardJones
Edward Jones Money Market Fund
SEMI-ANNUAL REPORT
August 31, 2004
Investment Shares
Retirement Shares
FINANCIAL HIGHLIGHTS
SHAREHOLDER EXPENSE EXAMPLE
PORTFOLIO OF INVESTMENTS SUMMARY TABLES
FINANCIAL STATEMENTS
VOTING PROXIES ON FUND PORTFOLIO SECURITIES
QUARTERLY PORTFOLIO SCHEDULE
Serving Individual Investors Since 1871
Not FDIC Insured * May Lose Value * No Bank Guarantee
Financial Highlights - Investment Shares
(For a Share Outstanding Throughout Each Period)
| | Six Months
Ended
(unaudited) | |
| Year Ended February 28 or 29,
|
|
| 8/31/2004
|
|
| 2004
|
|
| 2003
|
|
| 2002
|
|
| 2001
|
|
| 2000
|
|
Net Asset Value, Beginning of Period
| | $1.00 | | | $1.00 | | | $1.00 | | | $1.00 | | | $1.00 | | | $1.00 | |
Income From Investment Operations:
| | | | | | | | | | | | | | | | | | |
Net investment income
| | 0.002 | | | 0.003 | | | 0.010 | | | 0.027 | | | 0.055 | | | 0.043 | |
Less Distributions:
| | | | | | | | | | | | | | | | | | |
Distributions from net investment income
|
| (0.002
| )
|
| (0.003
| )
|
| (0.010
| )
|
| (0.027
| )
|
| (0.055
| )
|
| (0.043
| )
|
Net Asset Value, End of Period
|
| $1.00
|
|
| $1.00
|
|
| $1.00
|
|
| $1.00
|
|
| $1.00
|
|
| $1.00
|
|
Total Return 1
|
| 0.17
| %
|
| 0.30
| %
|
| 0.97
| %
|
| 2.75
| %
|
| 5.62
| %
|
| 4.43
| %
|
| | | | | | | | | | | | | | | | | | |
Ratios to Average Net Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
| 0.85
| % 2
|
| 0.86
| %
|
| 0.84
| %
|
| 0.83
| %
|
| 0.91
| %
|
| 0.94
| %
|
Net investment income
|
| 0.34
| % 2
|
| 0.30
| %
|
| 0.96
| %
|
| 2.75
| %
|
| 5.47
| %
|
| 4.35
| %
|
Expense waiver/reimbursement 3
|
| 0.00
| % 2,4
|
| 0.00
| % 4
|
| - --
|
|
| - --
|
|
| - --
|
|
| - --
|
|
Supplemental Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period (000 omitted)
|
| $7,668,374
|
| $8,134,397
|
| $9,090,066
|
| $9,722,644
|
| $11,019,037
|
| $8,761,300
|
|
1 Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods of less than one year are not annualized.
2 Computed on an annualized basis.
3 This voluntary expense decrease is reflected in both the expense and net investment income ratios shown above.
4 Represents less than 0.01%.
See Notes which are an integral part of the Financial Statements
Financial Highlights - Retirement Shares
(For a Share Outstanding Throughout Each Period)
| | Six Months
Ended
(unaudited) | | | Year Ended
February 28 or 29,
| | Period
Ended | |
|
| 8/31/2004
|
|
| 2004
|
|
| 2003
|
|
| 2/28/2002
| 1
|
Net Asset Value, Beginning of Period
| | $1.00 | | | $1.00 | | | $1.00 | | | $1.00 | |
Income From Investment Operations:
| | | | | | | | | | | | |
Net investment income
| | 0.0004 | | | 0.001 | | | 0.005 | | | 0.014 | |
Less Distributions:
| | | | | | | | | | | | |
Distributions from net investment income
|
| (0.0004
| )
|
| (0.001
| )
|
| (0.005
| )
|
| (0.014
| )
|
Net Asset Value, End of Period
|
| $1.00
|
|
| $1.00
|
|
| $1.00
|
|
| $1.00
|
|
Total Return 2
|
| 0.04
| %
|
| 0.08
| %
|
| 0.50
| %
|
| 1.41
| %
|
| | | | | | | | | | | | |
Ratios to Average Net Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
| 1.12
| % 3
|
| 1.08
| %
|
| 1.30
| %
|
| 1.30
| % 3
|
Net investment income
|
| 0.07
| % 3
|
| 0.08
| %
|
| 0.49
| %
|
| 1.78
| % 3
|
Expense waiver/reimbursement 4
|
| 0.17
| % 3
|
| 0.12
| %
|
| - --
|
|
| - --
|
|
Supplemental Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period (000 omitted)
|
| $2,203,864
|
|
| $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, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.
3 Computed on an annualized basis.
4 This voluntary expense decrease is reflected in both the expense and net investment income ratios shown above.
See Notes which are an integral part of the Financial Statements
Shareholder Expense Example
As a shareholder of the Fund, you incur ongoing costs, including management fees, shareholder services fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. It is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from March 1, 2004 to August 31, 2004.
ACTUAL EXPENSES
The first section of the table below provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you incurred over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled "Expenses Paid During Period" to estimate the expenses attributable to your investment during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. Thus, you should not use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are provided to enable you to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
|
| Beginning
Account Value
3/1/2004
|
| Ending
Account Value
8/31/2004
|
| Expenses Paid
During Period 1
|
Actual:
|
|
|
|
|
|
|
Investment Shares
|
| $1,000
|
| $1,001.70
|
| $4.29
|
Retirement Shares
|
| $1,000
|
| $1,000.40
|
| $5.65
|
Hypothetical (assuming a 5% return before expenses):
|
|
|
|
|
|
|
Investment Shares
|
| $1,000
|
| $1,020.92
|
| $4.33
|
Retirement Shares
|
| $1,000
|
| $1,019.56
|
| $5.70
|
1 Expenses are equal to the Fund's Investment Shares and Retirement Shares annualized expense ratios of 0.85% and 1.12% respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Portfolio of Investments Summary Tables
At August 31, 2004, the fund's portfolio composition 1 was as follows:
|
|
|
| Percentage of
Total Investments 2
|
U.S. Government Agency Securities
|
| 53%
| | |
Repurchase Agreements
|
| 47%
|
|
|
TOTAL
|
|
|
| 100%
|
At August 31, 2004, the fund's effective maturity 3 schedule was as follows:
Securities With an
Effective Maturity 3 of
|
|
|
| Percentage of
Total Investments 2
|
1-7 Days
|
| 43.8%
| | |
8-30 Days
|
| 24.1%
| | |
31-90 Days
|
| 18.7%
| | |
91-180 Days
|
| 8.6%
| | |
181 Days or more
|
| 4.8%
|
|
|
TOTAL
|
|
|
| 100%
|
1 See the fund's prospectus for a more complete description of these types of investments.
2 Percentages are based on total investments, which may differ from total net assets.
3 Effective maturity is determined in accordance with the requirements of Rule 2a-7 under the Investment Company Act of 1940, which regulates money market mutual funds.
Portfolio of Investments
August 31, 2004 (unaudited)
Principal
Amount
|
|
|
| Value
|
|
| | | GOVERNMENT AGENCIES--53.9% | | | | |
| $ | 45,000,000 | 1 | Federal Farm Credit System Floating Rate Note, 1.394%, 9/4/2004
| | $ | 44,998,377 | |
| 87,750,000 | 2 | Federal Home Loan Bank System Discount Note, 1.810%, 2/16/2005
| | | 87,008,805 | |
| 315,000,000 | 1 | Federal Home Loan Bank System Floating Rate Notes, 1.344% - 1.447%, 9/20/2004 - 10/07/2004
| | | 314,935,714 | |
| 379,225,000 | | Federal Home Loan Bank System Notes, 1.300% - 7.125%, 12/7/2004 - 5/4/2005
| | | 379,792,482 | |
| 1,005,444,000 | 2 | Federal National Mortgage Association Discount Notes, 1.110% - 1.875%, 10/1/2004 - 2/9/2005
| | | 1,001,229,285 | |
| 3,176,000,000 | 1 | Federal National Mortgage Association Floating Rate Notes, 1.230% - 1.640%, 10/28/2004 - 11/18/2004
| | | 3,174,867,276 | |
| 320,250,000 | | Federal National Mortgage Association Notes, 1.270% - 7.125%, 9/15/2004 - 6/3/2005
|
|
| 320,495,237
|
|
| | | TOTAL GOVERNMENT AGENCIES
|
|
| 5,323,327,176
|
|
| | | REPURCHASE AGREEMENTS--47.9% | | | | |
| 298,072,000 | | Interest in $1,761,000,000 repurchase agreement with Barclays Capital, Inc., 1.570%, dated 8/31/2004 to be repurchased at $298,084,999 on 9/1/2004, collateralized by U.S. Treasury Obligations with various maturities to 4/15/2028, collateral market value $1,796,299,168
| | | 298,072,000 | |
| 488,000,000 | | Interest in $500,000,000 joint repurchase agreement with Barclays Capital, Inc., 1.610%, dated 8/31/2004 to be repurchased at $488,021,824 on 9/1/2004, collateralized by U.S. Government Agency Obligations with various maturities to 8/20/2034, collateral market value $510,022,809
| | | 488,000,000 | |
| 301,367,000 | | Interest in $700,000,000 joint repurchase agreement with Bear Stearns Cos., Inc., 1.610%, dated 8/31/2004 to be repurchased at $301,380,478 on 9/1/2004, collateralized by U.S. Government Agency Obligations with various maturities to 8/15/2034, collateral market value $721,001,005
| | | 301,367,000 | |
| 120,000,000 | | Interest in $500,000,000 joint repurchase agreement with Citigroup Global Markets Inc., 1.610%, dated 8/31/2004 to be repurchased at $120,005,367 on 9/1/2004, collateralized by U.S. Government Agency Obligations with various maturities to 8/1/2034, collateral market value $513,386,591
| | | 120,000,000 | |
| 472,695,000 | | Interest in $1,500,000,000 joint repurchase agreement with Countrywide Securities Corp., 1.610%, dated 8/31/2004 to be repurchased at $472,716,140 on 9/1/2004, collateralized by U.S. Government Agency Obligations with various maturities to 9/1/2034, collateral market value $1,534,539,376
| | | 472,695,000 | |
| 171,000,000 | 3 | Interest in $500,000,000 joint repurchase agreement with Deutsche Bank Securities, Inc., 1.530%, dated 8/2/2004 to be repurchased at $171,421,515 on 9/30/2004, collateralized by U.S. Government Agency Obligations with various maturities to 7/15/2034, collateral market value $515,000,001
| | | 171,000,000 | |
| 340,000,000 | 3,4 | Interest in $730,000,000 joint repurchase agreement with Deutsche Bank Securities Inc., 1.70%, dated 8/31/2004, to be repurchased at $340,979,389 on 11/1/2004
| | | 340,000,000 | |
Principal
Amount
|
|
|
| Value
|
|
| | | REPURCHASE AGREEMENTS--continued | | | | |
| $ | 651,000,000 | | Interest in $1,000,000,000 joint repurchase agreement with J.P. Morgan Securities, Inc., 1.610%, dated 8/31/2004 to be repurchased at $651,029,114 on 9/1/2004, collateralized by U.S. Government Agency Obligations with various maturities to 2/1/2034, collateral market value $1,021,988,331
| | $ | 651,000,000 | |
| 125,000,000 | 3 | Interest in $250,000,000 joint repurchase agreement with Morgan Stanley & Co., Inc., 1.460%, dated 7/2/2004 to be repurchased at $125,456,250 on 9/30/2004, collateralized by U.S. Government Agency Obligations with various maturities to 3/15/2034, collateral market value $258,710,935
| | | 125,000,000 | |
| 508,000,000 | | Interest in $655,000,000 joint repurchase agreement with Morgan Stanley & Co., Inc., 1.610%, dated 8/31/2004 to be repurchased at $508,022,719 on 9/1/2004, collateralized by U.S. Government Agency Obligations with various maturities to 6/15/2034, collateral market value $677,363,570
| | | 508,000,000 | |
| 300,000,000 | | Interest in $2,000,000,000 joint repurchase agreement with UBS Securities LLC, 1.570%, dated 8/31/2004 to be repurchased at $300,013,083 on 9/1/2004, collateralized by U.S. Treasury Obligations with various maturities to 8/15/2029, collateral market value $2,040,002,329
| | | 300,000,000 | |
| 250,000,000 | 3 | Interest in $250,000,000 joint repurchase agreement with Wachovia Securities, Inc., 1.530%, dated 8/24/2004 to be repurchased at $250,233,750 on 9/15/2004, collateralized by U.S. Government Agency Obligations with various maturities to 7/01/2034, collateral market value $255,000,940
| | | 250,000,000 | |
| 700,000,000 | | Interest in $1,630,000,000 joint repurchase agreement with Wachovia Securities, Inc., 1.610%, dated 8/31/2004 to be repurchased at $700,031,306 on 9/1/2004, collateralized by U.S. Government Agency Obligations with various maturities to 3/01/2034, collateral market value $1,662,649,855
|
|
| 700,000,000
|
|
| | | TOTAL REPURCHASE AGREEMENTS
|
|
| 4,725,134,000
|
|
| | | TOTAL INVESTMENTS--101.8% (AT AMORTIZED COST) 5
|
|
| 10,048,461,176
|
|
| | | OTHER ASSETS AND LIABILITIES - NET--(1.8%)
|
|
| (176,223,286
| )
|
| | | TOTAL NET ASSETS--100%
|
| $
| 9,872,237,890
|
|
1 Floating rate note with current rate and next reset date shown.
2 Discount rate at time of purchase.
3 Although final maturity falls beyond seven days at date of purchase, a liquidity feature is included in each transaction to permit termination of the repurchase agreement within seven days.
4 The Fund will receive the collateral for this security on the contractual settlement date, September 1, 2004.
5 Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of total net assets at August 31, 2004.
See Notes which are an integral part of the Financial Statements
Statement of Assets and Liabilities
August 31, 2004 (unaudited)
Assets:
| | | | | | | |
Investments in securities
| | $ | 5,323,327,176 | | | | |
Investments in repurchase agreements
|
|
| 4,725,134,000
|
|
|
|
|
Total investments in securities, at amortized cost and value
| | | | | $ | 10,048,461,176 | |
Cash
| | | | | | 586,863 | |
Income receivable
| | | | | | 10,463,227 | |
Receivable for shares sold
|
|
|
|
|
| 171,553,386
|
|
TOTAL ASSETS
|
|
|
|
|
| 10,231,064,652
|
|
Liabilities:
| | | | | | | |
Payable for investments purchased
| | | 340,000,000 | | | | |
Payable for shares redeemed
| | | 12,389,033 | | | | |
Income distribution payable
| | | 1,386,724 | | | | |
Payable for transfer and dividend disbursing agent fees and expenses (Note 4)
| | | 2,778,346 | | | | |
Payable for shareholder services fee (Note 4)
| | | 2,094,673 | | | | |
Payable for Directors'/Trustees' fees
| | | 2,377 | | | | |
Accrued expenses
|
|
| 175,609
|
|
|
|
|
TOTAL LIABILITIES
|
|
|
|
|
| 358,826,762
|
|
Net assets for 9,872,278,537 shares outstanding
|
|
|
|
| $
| 9,872,237,890
|
|
Net Assets Consist of:
| | | | | | | |
Paid-in capital
| | | | | $ | 9,872,278,536 | |
Distributions in excess of net investment income
|
|
|
|
|
| (40,646
| )
|
TOTAL NET ASSETS
|
|
|
|
| $
| 9,872,237,890
|
|
Net Asset Value, Offering Price and Redemption Proceeds Per Share
| | | | | | | |
Investment Shares:
| | | | | | | |
$7,668,374,370 ÷ 7,668,412,065 shares outstanding, no par value, unlimited shares authorized
|
|
|
|
|
| $1.00
|
|
Retirement Shares:
| | | | | | | |
$2,203,863,520 ÷ 2,203,866,472 shares outstanding, no par value, unlimited shares authorized
|
|
|
|
|
| $1.00
|
|
See Notes which are an integral part of the Financial Statements
Statement of Operations
Six Months Ended August 31, 2004 (unaudited)
Investment Income:
| | | | | | | | | | | |
Interest
|
|
|
|
|
|
|
|
|
| $
| 60,646,858
|
Expenses:
| | | | | | | | | | | |
Investment adviser fee (Note 4)
| | | | | | $ | 20,999,086 | | | | |
Administrative personnel and services fee (Note 4)
| | | | | | | 4,077,046 | | | | |
Custodian fees
| | | | | | | 151,476 | | | | |
Transfer and dividend disbursing agent fees and expenses--Investment Shares (Note 4)
| | | | | | | 3,817,481 | | | | |
Transfer and dividend disbursing agent fees and expenses--Retirement Shares (Note 4)
| | | | | | | 5,674,221 | | | | |
Directors'/Trustees' fees
| | | | | | | 38,419 | | | | |
Auditing fees
| | | | | | | 10,509 | | | | |
Legal fees
| | | | | | | 3,304 | | | | |
Portfolio accounting fees
| | | | | | | 89,412 | | | | |
Shareholder services fee--Investment Shares (Note 4)
| | | | | | | 9,923,817 | | | | |
Shareholder services fee--Retirement Shares (Note 4)
| | | | | | | 2,806,776 | | | | |
Share registration costs
| | | | | | | 303,878 | | | | |
Printing and postage - Investment Shares
| | | | | | | 112,370 | | | | |
Printing and postage - Retirement Shares
| | | | | | | 268,192 | | | | |
Insurance premiums
| | | | | | | 60,938 | | | | |
Miscellaneous
|
|
|
|
|
|
| 19,867
|
|
|
|
|
TOTAL EXPENSES
|
|
|
|
|
|
| 48,356,792
|
|
|
|
|
Waivers (Note 4):
| | | | | | | | | | | |
Waiver of administrative personnel and services fee
| | $ | (196,761 | ) | | | | | | | |
Waiver of transfer and dividend disbursing agent fees and expenses--Retirement Shares
|
|
| (1,820,049
| )
|
|
|
|
|
|
|
|
TOTAL WAIVERS
|
|
|
|
|
|
| (2,016,810
| )
|
|
|
|
Net expenses
|
|
|
|
|
|
|
|
|
|
| 46,339,982
|
Net investment income
|
|
|
|
|
|
|
|
|
|
| $14,306,876
|
See Notes which are an integral part of the Financial Statements
Statement of Changes in Net Assets
|
|
| Six Months
Ended
(unaudited)
8/31/2004
|
|
|
| Year Ended
2/29/2004
|
|
Increase (Decrease) in Net Assets
| | | | | | | | |
Operations:
| | | | | | | | |
Net investment income
|
| $
| 14,306,876
|
|
| $
| 28,187,455
|
|
Distributions to Shareholders:
| | | | | | | | |
Distributions from net investment income
| | | | | | | | |
Investment Shares
| | | (13,578,098 | ) | | | (26,287,160 | ) |
Retirement Shares
|
|
| (764,245
| )
|
|
| (1,829,619
| )
|
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS
|
|
| (14,342,343
| )
|
|
| (28,116,779
| )
|
Share Transactions:
| | | | | | | | |
Proceeds from sale of shares
| | | 24,695,481,123 | | | | 48,059,951,491 | |
Net asset value of shares issued to shareholders in payment of distributions declared
| | | 13,148,951 | | | | 28,542,018 | |
Cost of shares redeemed
|
|
| (25,224,823,312
| )
|
|
| (49,025,348,326
| )
|
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS
|
|
| (516,193,238
| )
|
|
| (936,854,817
| )
|
Change in net assets
|
|
| (516,228,705
| )
|
|
| (936,784,141
| )
|
Net Assets:
| | | | | | | | |
Beginning of period
|
|
| 10,388,466,595
|
|
|
| 11,325,250,736
|
|
End of period (including distributions in excess of net investment income of $(40,646) and $(5,179), respectively)
|
| $
| 9,872,237,890
|
|
| $
| 10,388,466,595
|
|
See Notes which are an integral part of the Financial Statements
Notes to Financial Statements
August 31, 2004 (unaudited)
1. ORGANIZATION
Edward Jones Money Market Fund (the "Fund") is registered under the Investment Company Act of 1940, as amended (the "Act"), as a diversified, open-end management investment company. The investment objective of the Fund is stability of principal and current income consistent with stability of principal.
The Fund offers two classes of shares: Investment Shares and Retirement Shares.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with generally accepted accounting principles (GAAP) in the United States of America.
Investment Valuation
The Fund uses the amortized cost method to value its portfolio securities in accordance with Rule 2a-7 under the Act.
Repurchase Agreements
It is the policy of the Fund to require the custodian bank to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian bank's vault, all securities held as collateral under repurchase agreement transactions. Additionally, procedures have been established by the Fund to monitor, on a daily basis, the market value of each repurchase agreement's collateral to ensure that the value of the collateral at least equals the repurchase price to be paid under the repurchase agreement.
The Fund will only enter into repurchase agreements with banks and other recognized financial institutions, such as broker/dealers, which are deemed by the Fund's adviser to be creditworthy pursuant to the guidelines and/or standards reviewed or established by the Board of Trustees (the "Trustees"). Risks may arise from the potential inability of counterparties to honor the terms of the repurchase agreement. Accordingly, the Fund could receive less than the repurchase price on the sale of collateral securities. The Fund, along with other affiliated investment companies, may utilize a joint trading account for the purpose of entering into one or more repurchase agreements.
Investment Income, Gains and Losses, Expenses and Distributions
Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Investment income, realized gains and losses and certain fund-level expenses are allocated to each class based on relative average daily net assets, except that each class bears certain expenses unique to that class such as transfer and dividend disbursing, printing and postage, and shareholder services fees. Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses.
Premium and Discount Amortization
All premiums and discounts are amortized/accreted.
Federal Taxes
It is the Fund's policy to comply with the Subchapter M provision of the Internal Revenue Code (the "Code") and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal income tax is necessary.
When-Issued and Delayed Delivery Transactions
The Fund may engage in when-issued or delayed delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated.
Other
Investment transactions are accounted for on a trade date basis. Realized gains and losses from investment transactions are recorded on an identified cost basis.
3. SHARES OF BENEFICIAL INTEREST
The following table summarizes share activity:
|
| Six Months Ended
8/31/2004
|
|
| Year Ended
2/29/2004
|
|
Investment Shares:
|
| Shares
|
|
|
| Amount
|
|
| Shares
|
|
|
| Amount
|
|
Shares sold
| | 13,324,669,368 | | | $ | 13,324,669,368 | | | 27,167,605,577 | | | $ | 27,167,605,577 | |
Shares issued to shareholders in payment of distributions declared
|
| 12,512,655 | | | | 12,512,655 |
|
| 26,677,455 |
|
| | 26,677,455 |
|
Shares redeemed
|
| (13,803,144,958
| )
|
|
| (13,803,144,958
| )
|
| (28,149,919,143
| )
|
|
| (28,149,919,143
| )
|
NET CHANGE RESULTING FROM INVESTMENT SHARE TRANSACTIONS
|
| (465,962,935
| )
|
| $
| (465,962,935
| )
|
| (955,636,111
| )
|
|
$
| (955,636,111
| )
|
| | | | | | | | | | | | | | |
|
| Six Months Ended
8/31/2004
|
|
| Year Ended
2/29/2004
|
|
Retirement Shares:
|
| Shares
|
|
|
| Amount
|
|
| Shares
|
|
|
| Amount
|
|
Shares sold
| | 11,370,811,755 | | | $ | 11,370,811,755 | | | 20,892,345,914 | | | $ | 20,892,345,914 | |
Shares issued to shareholders in payment of distributions declared
|
| 636,296 | | | | 636,296 |
|
| 1,864,563 |
|
|
| 1,864,563 |
|
Shares redeemed
|
| (11,421,678,354
| )
|
|
| (11,421,678,354
| )
|
| (20,875,429,183
| )
|
|
| (20,875,429,183
| )
|
NET CHANGE RESULTING FROM RETIREMENT SHARE TRANSACTIONS
|
| (50,230,303
| )
|
| $
| (50,230,303
| )
|
| 18,781,294
|
|
|
$
| 18,781,294
|
|
NET CHANGE RESULTING FROM SHARE TRANSACTIONS
|
| (516,193,238
| )
|
| $
| (516,193,238
| )
|
| (936,854,817
| )
|
|
$
| (936,854,817
| )
|
4. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Investment Adviser Fee
Passport Research, Ltd., the Fund's investment adviser (the "Adviser"), receives for its services an annual investment adviser fee based on average daily net assets of the Fund as follows: 0.500% on the first $500 million; 0.475% on the second $500 million; 0.450% on the third $500 million; 0.425% on the fourth $500 million; and 0.400% on amounts more than $2 billion. The Adviser may voluntarily choose to waive any portion of its fee. The Adviser can modify or terminate this voluntary waiver at any time at its sole discretion.
Adviser's Background
Passport Research, Ltd., is a Pennsylvania limited partnership organized in 1981. Federated Investment Management Company (FIMCO), is the general partner of the Adviser and has a 50.5% interest in the Adviser. FIMCO is owned by Federated Investors, Inc. Edward D. Jones & Co., L.P. d/b/a Edward Jones is the limited partner of the Adviser and has a 49.5% interest in the Adviser.
Administrative Fee
Federated Administrative Services (FAS), under the Administrative Services Agreement, provides the Fund with certain administrative personnel and services. The fee paid to FAS is based on the average aggregate daily net assets of all Federated funds as specified below:
Maximum
Administrative Fee
|
| Average Aggregate Daily Net Assets
of the Federated Funds
|
0.150%
|
| on the first $5 billion
|
0.125%
|
| on the next $5 billion
|
0.100%
|
| on the next $10 billion
|
0.075%
|
| on assets in excess of $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 choose to waive any portion of its fee. FAS can modify or terminate this voluntary waiver at any time at its sole discretion.
Shareholder Services Fee
Under the terms of a Shareholder Services Agreement with Federated Shareholder Services Company (FSSC), the Fund will pay FSSC up to 0.25% of the average daily net assets of the Fund's Investment Shares and Retirement Shares for the period. The fee paid to FSSC is used to finance certain services for shareholders and to maintain shareholder accounts. FSSC may voluntarily choose to waive any portion of its fee. FSSC can modify or terminate this voluntary waiver at any time at its sole discretion.
Transfer and Dividend Disbursing Agent Fees and Expenses
Edward Jones serves as transfer and dividend disbursing agent for the Fund. The fee paid to Edward Jones is based on the size, type and number of accounts and transactions made by shareholders. Edward Jones may voluntarily choose to waive any portion of its fee. Edward Jones can modify or terminate this voluntary waiver at any time at its sole discretion.
General
Certain of the Officers and Trustees of the Fund are Officers and Directors or Trustees of the above companies.
5. LEGAL PROCEEDINGS
Beginning in October 2003, Federated Investors, Inc. and various subsidiaries thereof (including the advisers and distributor for various investment companies, collectively, "Federated"), along with various investment companies sponsored by Federated ("Funds") were named as defendants in several class action lawsuits now pending in the United States District Court for the District of Maryland seeking damages of unspecified amounts. 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. Federated and various Funds have also been named as defendants in several additional lawsuits, 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, and seeking damages of unspecified amounts. 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 will respond appropriately. Additional lawsuits based upon similar allegations may be filed in the future. The potential impact of these recent lawsuits 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, the ongoing adverse publicity and/or other developments resulting from related regulatory investigations will not result in increased Fund redemptions, reduced sales of Fund shares, or other adverse consequences for the Funds.
Mutual funds are not bank deposits or obligations, are not guaranteed by any bank, and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other government agency. Investment in mutual funds involves investment risk, including the possible loss of principal. 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 Fund's prospectus, which contains facts concerning its objective and policies, management fees, expenses, and other information.
VOTING PROXIES ON FUND PORTFOLIO SECURITIES
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to securities held in the Fund's portfolio is available, without charge and upon request, by calling 1-800-341-7400. A report on "Form N-PX" of how the Fund voted any such proxies during the most recent 12-month period ended June 30 is available through Federated's Internet site. Go to http://www.federatedinvestors.com, select "Products," select the "Prospectuses and Regulatory Reports" link, then select the Fund to access the link to Form N-PX. This information is also available from the EDGAR database on the SEC's Internet site at http://www.sec.gov.
QUARTERLY PORTFOLIO SCHEDULE
The Fund files with the SEC a complete schedule of its portfolio holdings, as of the close of the first and third quarters of its fiscal year, on "Form N-Q." These filings are available on the SEC's website at http://www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. (Call 1-800-SEC-0330 for information on the operation of the Public Reference Room.) You may also access this information from the "Products" section of the Federated Investors website at www.federatedinvestors.com by clicking on "Portfolio Holdings" and selecting the name of the Fund, or by selecting the name of the Fund and clicking on "Portfolio Holdings." You must register on the website the first time you wish to access this information.
IMPORTANT NOTICE ABOUT FUND DOCUMENT DELIVERY
In an effort to reduce costs and avoid duplicate mailings, the Fund(s) intend to deliver a single copy of certain documents to each household in which more than one shareholder of the Fund(s) resides (so-called "householding"), as permitted by applicable rules. The Fund's "householding" program covers its/their Prospectus and Statement of Additional Information, and supplements to each, as well as Semi-Annual and Annual Shareholder Reports and any Proxies or information statements. Shareholders must give their written consent to participate in the "householding" program. The Fund is also permitted to treat a shareholder as having given consent ("implied consent") if (i) shareholders with the same last name, or believed to be members of the same family, reside at the same street address or receive mail at the same post office box, (ii) the Fund gives notice of its intent to "household" at least sixty (60) days before it begins "householding" and (iii) none of the shareholders in the household have notified the Fund(s) or their agent of the desire to "opt out" of "householding." Shareholders who have granted written consent, or have been deemed to have granted implied consent, can revoke that consent and opt out of "householding" at any time: shareholders who purchased shares through an intermediary should contact their representative; other shareholders may call the Fund at 1-800-341-7400.
Edward Jones
201 Progress Parkway
Maryland Heights, Missouri 63043
1-800-331-2451
Cusip 48019P102
Cusip 48019P201
8092605 (10/04)
EdwardJones
Item 2. Code of Ethics
Not Applicable
Item 3. Audit Committee Financial Expert
Not Applicable
Item 4. Principal Accountant Fees and Services
Not Applicable
Item 5. Audit Committee of Listed Registrants
Not Applicable
Item 6. Schedule of Investments
Not Applicable
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies
Not Applicable
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not Applicable
Item 9. Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers
Not Applicable
Item 10. Submission of Matters to a Vote of Security Holders
Not Applicable
Item 11. Controls and Procedures
(a) The registrant's President and Treasurer have concluded that the
registrant's disclosure controls and procedures (as defined in rule
30a-3(c) under the Act) are effective in design and operation and are
sufficient to form the basis of the certifications required by Rule 30a-(2)
under the Act, based on their evaluation of these disclosure controls and
procedures within 90 days of the filing date of this report on Form N-CSR.
(b) There were no changes in the registrant's internal control over financial
reporting (as defined in rule 30a-3(d) under the Act) during the last
fiscal half year (the registrant's second fiscal half year in the case of
an annual report) that have materially affected, or are reasonably likely
to materially affect, the registrant's internal control over financial
reporting.
Item 12. Exhibits
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Registrant Edward Jones Money Market Fund
By /S/ Richard J. Thomas, Principal Financial Officer
(insert name and title)
Date October 25, 2004
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By /S/ J. Christopher Donahue, Principal Executive Officer
Date October 25, 2004
By /S/ Richard J. Thomas, Principal Financial Officer
Date October 25, 2004
