- Certified semi-annual shareholder report for management investment companies (N-CSRS)
25 Octobre 2012 - 8:41PM
Edgar (US Regulatory)
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
4000 Ericsson Drive
Warrendale, PA 15086-7561
(Address of Principal Executive Offices)
(412) 288-1900
(Registrant's Telephone Number)
John W. McGonigle, Esquire
Federated Investors Tower
1001 Liberty Avenue
Pittsburgh, Pennsylvania 15222-3779
(Name and Address of Agent for Service)
(Notices should be sent to the Agent
for Service)
Date of Fiscal Year End:
02/28/2013
Date of Reporting Period:
Six months
ended 08/31/2012
Item 1. Reports to Stockholders
Edward Jones Money
Market Fund
SEMI-ANNUAL
SHAREHOLDER REPORT
August 31, 2012
Investment Shares
(JNSXX)
Retirement Shares (JRSXX)
Portfolio of
Investments Summary Tables
Portfolio of Investments
Financial Highlights
Statement of Assets and Liabilities
Statement of Operations
Statement of Changes in Net Assets
Notes to Financial Statements
Shareholder Expense Example
Evaluation and Approval of Advisory Contract
Voting Proxies on Fund Portfolio Securities
Quarterly Portfolio Schedule
Not
FDIC Insured
■
May Lose Value
■
No Bank Guarantee
Portfolio of
Investments Summary Tables (unaudited)
At August 31, 2012,
the Fund's portfolio composition
1
was as follows:
|
Portfolio Composition
|
Percentage of
Total Net Assets
|
|
Government Securities
|
36.6%
|
|
U.S. Treasury Securities
|
0.9%
|
|
Repurchase Agreements
|
61.4%
|
|
Other Assets and Liabilities—Net
2
|
1.1%
|
|
TOTAL
|
100.0%
|
At August 31, 2012,
the Fund's effective maturity
3
schedule was as follows:
Securities With an
Effective Maturity of:
|
Percentage of
Total Net Assets
|
|
1-7 Days
|
53.4%
|
|
8-30 Days
|
15.6%
|
|
31-90 Days
|
14.6%
|
|
91-180 Days
|
6.1%
|
|
181 Days or more
|
9.2%
|
|
Other Assets and Liabilities—Net
2
|
1.1%
|
|
TOTAL
|
100.0%
|
|
1
|
See the Fund's Prospectus and Statement of Additional Information for a description of the principal types of securities in which the Fund invests.
|
|
2
|
Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities.
|
|
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.
|
Semi-Annual
Shareholder Report
Portfolio of
Investments
August 31, 2012
(unaudited)
Principal
Amount
|
|
|
Value
|
|
|
|
GOVERNMENT AGENCIES—36.6%
|
|
|
$
502,900,000
|
1
|
Federal Farm Credit System Floating Rate Notes, 0.204% - 0.390%, 9/4/2012 - 11/20/2012
|
$
503,060,620
|
|
13,000,000
|
2
|
Federal Home Loan Bank System Discount Notes, 0.180%, 2/12/2013
|
12,989,340
|
|
439,000,000
|
1
|
Federal Home Loan Bank System Floating Rate Notes,
0.176% - 0.378%, 9/4/2012 - 9/25/2012
|
438,869,985
|
|
1,502,655,000
|
|
Federal Home Loan Bank System Notes, 0.125% - 5.375%,
10/3/2012 - 8/13/2013
|
1,504,732,334
|
|
93,000,000
|
2
|
Federal Home Loan Mortgage Corp. Discount Notes, 0.100% - 0.163%, 9/18/2012 - 10/2/2012
|
92,992,554
|
|
614,000,000
|
1
|
Federal Home Loan Mortgage Corp. Floating Rate Notes,
0.186% - 0.214%, 9/2/2012 - 9/17/2012
|
613,882,470
|
|
327,000,000
|
1
|
Federal Home Loan Mortgage Corp. Floating Rate Notes,
0.194% - 0.195%, 9/3/2012 - 9/6/2012
|
326,907,113
|
|
334,408,000
|
|
Federal Home Loan Mortgage Corp. Notes, 0.625% - 4.625%, 10/25/2012 - 5/29/2013
|
336,482,308
|
|
168,000,000
|
2
|
Federal National Mortgage Association Discount Notes, 0.100%, 10/1/2012 - 10/15/2012
|
167,984,047
|
|
451,000,000
|
1
|
Federal National Mortgage Association Floating Rate Notes,
0.205% - 0.380%, 9/3/2012 - 11/17/2012
|
450,878,130
|
|
629,919,000
|
|
Federal National Mortgage Association Notes, 0.375% - 4.375%, 9/15/2012 - 5/7/2013
|
632,717,639
|
|
|
|
TOTAL GOVERNMENT AGENCIES
|
5,081,496,540
|
|
|
|
U.S. Treasury—0.9%
|
|
|
30,000,000
|
|
United States Treasury Notes, 0.750%, 3/31/2013
|
30,091,367
|
|
88,000,000
|
|
United States Treasury Notes, 1.375%, 9/15/2012
|
88,040,841
|
|
|
|
TOTAL U.S. TREASURY
|
118,132,208
|
|
|
|
Repurchase Agreements—61.4%
|
|
|
406,000,000
|
3
|
Interest in $1,349,000,000 joint repurchase agreement 0.17%, dated 8/20/2012 under which BNP Paribas Securities Corp. will
repurchase securities provided as collateral for $1,349,191,108 on 9/19/2012. The securities provided as collateral at the end of the period held with The Bank of New York Mellon, tri-party agent, were U.S. Government
Agency securities with various maturities to 9/1/2042 and the market value of those underlying securities was $1,383,579,994.
|
406,000,000
|
|
115,000,000
|
3
|
Interest in $387,000,000 joint repurchase agreement 0.18%, dated 8/17/2012 under which BNP Paribas Securities Corp. will
repurchase securities provided as collateral for $387,059,985 on 9/17/2012. The securities provided as collateral at the end of the period held with The Bank of New York Mellon, tri-party agent, were U.S. Government
Agency securities with various maturities to 8/1/2047 and the market value of those underlying securities was $394,775,527.
|
115,000,000
|
Semi-Annual
Shareholder Report
Principal
Amount
|
|
|
Value
|
|
|
|
Repurchase Agreements—
continued
|
|
|
$
218,000,000
|
3
|
Interest in $776,000,000 joint repurchase agreement 0.20%, dated 8/15/2012 under which BNP Paribas Securities Corp. will
repurchase securities provided as collateral for $776,129,333 on 9/14/2012. The securities provided as collateral at the end of the period held with The Bank of New York Mellon, tri-party agent, were U.S. Government
Agency securities with various maturities to 7/1/2042 and the market value of those underlying securities was $798,876,638.
|
$
218,000,000
|
|
301,767,000
|
|
Interest in $4,105,000,000 joint repurchase agreement 0.20%, dated 8/31/2012 under which Bank of America, N.A. will
repurchase securities provided as collateral for $4,105,091,222 on 9/4/2012. The securities provided as collateral at the end of the period held with The Bank of New York Mellon, tri-party agent, were U.S. Government
Agency securities with various maturities to 4/25/2040 and the market value of those underlying securities was $4,221,332,947.
|
301,767,000
|
|
1,000,000,000
|
|
Interest in $5,500,000,000 joint repurchase agreement 0.19%, dated 8/31/2012 under which Barclays Capital, Inc. will
repurchase securities provided as collateral for $5,500,116,111 on 9/4/2012. The securities provided as collateral at the end of the period were U.S. Treasury securities with various maturities to 2/15/2040 and the
market value of those underlying securities was $5,616,016,337.
|
1,000,000,000
|
|
285,000,000
|
3
|
Interest in $1,000,000,000 joint repurchase agreement 0.22%, dated 6/4/2012 under which Barclays Capital, Inc. will
repurchase securities provided as collateral for $1,000,562,222 on 9/4/2012. The securities provided as collateral at the end of the period held with The Bank of New York Mellon, tri-party agent, were U.S. Government
Agency securities with various maturities to 7/20/2042 and the market value of those underlying securities was $1,023,971,666.
|
285,000,000
|
|
88,000,000
|
3
|
Interest in $311,000,000 joint repurchase agreement 0.22%, dated 6/26/2012 under which Barclays Capital, Inc. will
repurchase securities provided as collateral for $311,171,050 on 9/24/2012. The securities provided as collateral at the end of the period held with The Bank of New York Mellon, tri-party agent, were U.S. Government
Agency securities with various maturities to 3/25/2042 and the market value of those underlying securities was $317,540,603.
|
88,000,000
|
|
219,000,000
|
3
|
Interest in $750,000,000 joint repurchase agreement 0.22%, dated 8/2/2012 under which Barclays Capital, Inc. will
repurchase securities provided as collateral for $750,412,500 on 10/31/2012. The securities provided as collateral at the end of the period held with The Bank of New York Mellon, tri-party agent, were U.S. Government
Agency securities with various maturities to 7/20/2042 and the market value of those underlying securities was $770,826,620.
|
219,000,000
|
|
139,000,000
|
3
|
Interest in $500,000,000 joint repurchase agreement 0.23%, dated 6/19/2012 under which Barclays Capital, Inc. will repurchase
securities provided as collateral for $500,287,500 on 9/17/2012. The securities provided as collateral at the end of the period held with The Bank of New York Mellon, tri-party agent, were U.S. Government Agency
securities with various maturities to 7/20/2042 and the market value of those underlying securities was $510,633,494.
|
139,000,000
|
Semi-Annual
Shareholder Report
Principal
Amount
|
|
|
Value
|
|
|
|
Repurchase Agreements—
continued
|
|
|
$
164,000,000
|
3
|
Interest in $585,000,000 joint repurchase agreement 0.23%, dated 7/25/2012 under which Barclays Capital, Inc. will
repurchase securities provided as collateral for $585,336,375 on 10/24/2012. The securities provided as collateral at the end of the period held with The Bank of New York Mellon, tri-party agent, were U.S. Government
Agency securities with various maturities to 7/1/2042 and the market value of those underlying securities was $601,177,557.
|
$
164,000,000
|
|
565,000,000
|
|
Interest in $2,675,000,000 joint repurchase agreement 0.18%, dated 8/31/2012 under which CS First Boston Corp. will
repurchase securities provided as collateral for $2,675,053,500 on 9/4/2012. The securities provided as collateral at the end of the period held with JPMorgan Chase & Co., tri-party agent, were U.S. Treasury
securities with various maturities to 5/15/2041 and the market value of those underlying securities was $2,728,501,758.
|
565,000,000
|
|
1,089,000,000
|
|
Interest in $1,159,000,000 joint repurchase agreement 0.18%, dated 8/29/2012 under which Citigroup Global Markets, Inc.
will repurchase securities provided as collateral for $1,159,040,565 on 9/5/2012. The securities provided as collateral at the end of the period held with The Bank of New York Mellon, tri-party agent, were U.S.
Government Agency securities with various maturities to 5/20/2042 and the market value of those underlying securities was $1,190,417,670.
|
1,089,000,000
|
|
114,000,000
|
|
Interest in $137,000,000 joint repurchase agreement 0.20%, dated 8/30/2012 under which Citigroup Global Markets, Inc. will
repurchase securities provided as collateral for $137,005,328 on 9/6/2012. The securities provided as collateral at the end of the period held with The Bank of New York Mellon, tri-party agent, were U.S. Government
Agency securities with various maturities to 1/16/2038 and the market value of those underlying securities was $141,118,588.
|
114,000,000
|
|
967,852,000
|
|
Interest in $4,000,000,000 joint repurchase agreement 0.18%, dated 8/31/2012 under which Credit Agricole CIB New York will
repurchase securities provided as collateral for $4,000,080,000 on 9/4/2012. The securities provided as collateral at the end of the period held with The Bank of New York Mellon, tri-party agent, were U.S. Treasury
securities with various maturities to 8/15/2042 and the market value of those underlying securities was $4,080,081,682.
|
967,852,000
|
|
275,000,000
|
3
|
Interest in $1,000,000,000 joint repurchase agreement 0.16%, dated 6/8/2012 under which Deutsche Bank Securities, Inc. will
repurchase securities provided as collateral for $1,000,400,000 on 9/6/2012. The securities provided as collateral at the end of the period held with The Bank of New York Mellon, tri-party agent, were U.S. Treasury
securities with various maturities to 11/15/2041 and the market value of those underlying securities was $1,020,398,970.
|
275,000,000
|
|
475,000,000
|
3
|
Interest in $1,616,000,000 joint repurchase agreement 0.22%, dated 08/13/2012 under which Deutsche Bank Securities, Inc. will
repurchase securities provided as collateral for $1,616,908,551 on 11/13/2012. The securities provided as collateral at the end of the period held with The Bank of New York Mellon, tri-party agent, were U.S. Government
Agency securities with various maturities to 10/15/2047 and the market value of those underlying securities was $1,660,941,791.
|
475,000,000
|
Semi-Annual
Shareholder Report
Principal
Amount
|
|
|
Value
|
|
|
|
Repurchase Agreements—
continued
|
|
|
$227,000,000
|
|
Interest in $772,000,000 joint repurchase agreement 0.17%, dated 8/29/2012 under which Goldman Sachs & Co. will
repurchase securities provided as collateral for $772,025,519 on 9/5/2012. The securities provided as collateral at the end of the period held with The Bank of New York Mellon, tri-party agent, were U.S. Government
Agency securities with various maturities to 6/15/2041 and the market value of those underlying securities was $795,182,530.
|
$227,000,000
|
|
227,000,000
|
|
Interest in $773,000,000 joint repurchase agreement 0.19%, dated 8/28/2012 under which Goldman Sachs & Co. will
repurchase securities provided as collateral for $773,028,558 on 9/4/2012. The securities provided as collateral at the end of the period held with The Bank of New York Mellon, tri-party agent, were U.S. Government
Agency securities with various maturities to 4/25/2040 and the market value of those underlying securities was $796,219,415.
|
227,000,000
|
|
227,000,000
|
|
Interest in $773,000,000 joint repurchase agreement 0.19%, dated 8/30/2012 under which Goldman Sachs & Co. will
repurchase securities provided as collateral for $773,028,558 on 9/6/2012. The securities provided as collateral at the end of the period held with The Bank of New York Mellon, tri-party agent, were U.S. Government
Agency securities with various maturities to 10/25/2041 and the market value of those underlying securities was $796,211,011.
|
227,000,000
|
|
346,000,000
|
|
Interest in $1,159,000,000 joint repurchase agreement 0.19%, dated 8/31/2012 under which Goldman Sachs & Co. will
repurchase securities provided as collateral for $1,159,042,819 on 9/7/2012. The securities provided as collateral at the end of the period held with The Bank of New York Mellon, tri-party agent, were U.S. Government
Agency securities with various maturities to 9/25/2045 and the market value of those underlying securities was $1,193,795,202.
|
346,000,000
|
|
221,000,000
|
3
|
Interest in $800,000,000 joint repurchase agreement 0.27%, dated 7/24/2012 under which ING Financial Markets LLC will
repurchase securities provided as collateral for $800,540,000 on 10/22/2012. The securities provided as collateral at the end of the period held with JPMorgan Chase & Co., tri-party agent, were U.S. Government
Agency securities with various maturities to 7/1/2042 and the market value of those underlying securities was $817,313,287.
|
221,000,000
|
|
147,000,000
|
3
|
Interest in $500,000,000 joint repurchase agreement 0.19%, dated 8/14/2012 under which RBC Capital Markets LLC will
repurchase securities provided as collateral for $500,079,167 on 9/13/2012. The securities provided as collateral at the end of the period held with The Bank of New York Mellon, tri-party agent, were U.S. Treasury and
U.S. Government Agency securities with various maturities to 8/1/2042 and the market value of those underlying securities was $511,270,837.
|
147,000,000
|
|
565,000,000
|
|
Interest in $1,675,000,000 joint repurchase agreement 0.18%, dated 8/31/2012 under which Societe Generale, New York will
repurchase securities provided as collateral for $1,675,033,500 on 9/4/2012. The securities provided as collateral at the end of the period held with The Bank of New York Mellon, tri-party agent, were U.S. Treasury
securities with various maturities to 2/15/2042 and the market value of those underlying securities was $1,708,534,253.
|
565,000,000
|
Semi-Annual
Shareholder Report
Principal
Amount
|
|
|
Value
|
|
|
|
Repurchase Agreements—
continued
|
|
|
$138,000,000
|
3
|
Interest in $500,000,000 joint repurchase agreement 0.17%, dated 8/29/2012 under which TD Securities (USA) LLC will
repurchase securities provided as collateral for $500,077,917 on 10/1/2012. The securities provided as collateral at the end of the period held with The Bank of New York Mellon, tri-party agent, were U.S. Treasury
securities with various maturities to 8/15/2040 and the market value of those underlying securities was $510,014,451.
|
$
138,000,000
|
|
|
|
TOTAL REPURCHASE AGREEMENTS
|
8,519,619,000
|
|
|
|
TOTAL INVESTMENTS—98.9%
(AT AMORTIZED COST)
4
|
13,719,247,748
|
|
|
|
OTHER ASSETS AND LIABILITIES - NET—1.1%
5
|
152,671,223
|
|
|
|
TOTAL NET ASSETS—100%
|
$13,871,918,971
|
|
1
|
Floating rate notes with current rate(s) and next reset date(s) shown.
|
|
2
|
Discount rate(s) at time of purchase.
|
|
3
|
Although the repurchase date is more than seven days after the date of purchase, the Fund has the right to terminate the repurchase agreement at any time with seven-days' notice.
|
|
4
|
Also represents cost for federal tax purposes.
|
|
5
|
Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities.
|
Note: The categories
of investments are shown as a percentage of total net assets at August 31, 2012.
Various inputs are
used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below:
Level 1—quoted prices in active markets for identical securities, including investment companies with daily net asset values, if applicable.
Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Also includes securities valued at amortized cost.
Level 3—significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments).
The inputs or
methodology used for valuing securities are not an indication of the risk associated with investing in those securities.
As of August 31, 2012,
all investments of the Fund are valued at amortized cost, which is considered a Level 2 input, in valuing the Fund's assets.
See Notes which are an
integral part of the Financial Statements
Semi-Annual
Shareholder Report
Financial Highlights
–
Investment Shares
(For a Share
Outstanding Throughout Each Period)
|
|
Six Months
Ended
(unaudited)
8/31/2012
|
Year Ended February 28 or 29,
|
|
2012
|
2011
|
2010
|
2009
|
2008
|
|
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
|
0.000
1
|
0.000
1
|
0.000
1
|
0.000
1
|
0.013
|
0.041
|
|
Net realized gain on investments
|
0.000
1
|
0.000
1
|
0.000
1
|
0.000
1
|
—
|
—
|
|
TOTAL FROM INVESTMENT OPERATIONS
|
0.000
1
|
0.000
1
|
0.000
1
|
0.000
1
|
0.013
|
0.041
|
|
Less Distributions:
|
|
|
|
|
|
|
|
Distributions from net investment income
|
(0.000)
1
|
(0.000)
1
|
(0.000)
1
|
(0.000)
1
|
(0.013)
|
(0.041)
|
|
Distributions from net realized gain on investments
|
—
|
(0.000)
1
|
(0.000)
1
|
(0.000)
1
|
—
|
—
|
|
TOTAL DISTRIBUTIONS
|
(0.000)
1
|
(0.000)
1
|
(0.000)
1
|
(0.000)
1
|
(0.013)
|
(0.041)
|
|
Net Asset Value, End of Period
|
$1.00
|
$1.00
|
$1.00
|
$1.00
|
$1.00
|
$1.00
|
|
Total Return
2
|
0.01%
|
0.01%
|
0.01%
|
0.02%
|
1.34%
|
4.23%
|
|
Ratios to Average Net Assets:
|
|
|
|
|
|
|
|
Net expenses
|
0.18%
3
|
0.15%
|
0.23%
|
0.40%
|
0.82%
|
0.80%
|
|
Net investment income
|
0.01%
3
|
0.01%
|
0.01%
|
0.01%
|
1.36%
|
4.13%
|
|
Expense waiver/reimbursement
4
|
0.63%
3
|
0.66%
|
0.58%
|
0.44%
|
0.00%
5
|
0.00%
5
|
|
Supplemental Data:
|
|
|
|
|
|
|
|
Net assets, end of period (000 omitted)
|
$10,981,282
|
$11,081,114
|
$11,385,644
|
$12,359,933
|
$15,194,922
|
$18,466,300
|
|
1
|
Represents less than $0.001.
|
|
2
|
Based on net asset value. Total returns for periods of less than one year are not annualized.
|
|
3
|
Computed on an annualized basis.
|
|
4
|
This expense decrease is reflected in both the net expense and the net investment income ratios shown above.
|
|
5
|
Represents less than 0.01%.
|
See Notes which are an
integral part of the Financial Statements
Semi-Annual
Shareholder Report
Financial Highlights
–
Retirement Shares
(For a Share
Outstanding Throughout Each Period)
|
|
Six Months
Ended
(unaudited)
8/31/2012
|
Year Ended February 28 or 29,
|
|
2012
|
2011
|
2010
|
2009
|
2008
|
|
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
|
0.000
1
|
0.000
1
|
0.000
1
|
0.000
1
|
0.013
|
0.041
|
|
Net realized gain on investments
|
0.000
1
|
0.000
1
|
0.000
1
|
0.000
1
|
—
|
—
|
|
TOTAL FROM INVESTMENT
OPERATIONS
|
0.000
1
|
0.000
1
|
0.000
1
|
0.000
1
|
0.013
|
0.041
|
|
Less Distributions:
|
|
|
|
|
|
|
|
Distributions from net investment income
|
(0.000)
1
|
(0.000)
1
|
(0.000)
1
|
(0.000)
1
|
(0.013)
|
(0.041)
|
|
Distributions from net realized gain on investments
|
—
|
(0.000)
1
|
(0.000)
1
|
(0.000)
1
|
—
|
—
|
|
TOTAL DISTRIBUTIONS
|
(0.000)
1
|
(0.000)
1
|
(0.000)
1
|
(0.000)
1
|
(0.013)
|
(0.041)
|
|
Net Asset Value, End of Period
|
$1.00
|
$1.00
|
$1.00
|
$1.00
|
$1.00
|
$1.00
|
|
Total Return
2
|
0.01%
|
0.01%
|
0.01%
|
0.02%
|
1.34%
|
4.21%
|
|
Ratios to Average Net Assets:
|
|
|
|
|
|
|
|
Net expenses
|
0.18%
3
|
0.15%
|
0.23%
|
0.40%
|
0.83%
|
0.82%
|
|
Net investment income
|
0.01%
3
|
0.01%
|
0.01%
|
0.01%
|
1.29%
|
4.13%
|
|
Expense waiver/reimbursement
4
|
0.68%
3
|
0.71%
|
0.61%
|
0.44%
|
0.00%
5
|
0.00%
5
|
|
Supplemental Data:
|
|
|
|
|
|
|
|
Net assets, end of period (000 omitted)
|
$2,890,637
|
$2,798,615
|
$2,719,053
|
$2,962,899
|
$3,369,874
|
$2,746,639
|
|
1
|
Represents less than $0.001.
|
|
2
|
Based on net asset value. Total returns for periods of less than one year are not annualized.
|
|
3
|
Computed on an annualized basis.
|
|
4
|
This expense decrease is reflected in both the net expense and the net investment income ratios shown above.
|
|
5
|
Represents less than 0.01%.
|
See Notes which are an
integral part of the Financial Statements
Semi-Annual
Shareholder Report
Statement of Assets and Liabilities
August 31, 2012
(unaudited)
|
Assets:
|
|
|
|
Investment in repurchase agreements
|
$8,519,619,000
|
|
|
Investment in securities
|
5,199,628,748
|
|
|
Total investment in securities, at amortized cost and fair value
|
|
$13,719,247,748
|
|
Cash
|
|
79
|
|
Income receivable
|
|
8,724,469
|
|
Receivable for shares sold
|
|
189,643,302
|
|
TOTAL ASSETS
|
|
13,917,615,598
|
|
Liabilities:
|
|
|
|
Payable for shares redeemed
|
44,121,491
|
|
|
Income distribution payable
|
36,463
|
|
|
Payable for transfer and dividend disbursing agent fees and expenses (Note 4)
|
901,238
|
|
|
Payable for investment adviser fee (Note 4)
|
459,357
|
|
|
Payable for Directors'/Trustees' fees
|
7,183
|
|
|
Accrued expenses
|
170,895
|
|
|
TOTAL LIABILITIES
|
|
45,696,627
|
|
Net assets for 13,871,901,810 shares outstanding
|
|
$13,871,918,971
|
|
Net Assets Consist of:
|
|
|
|
Paid-in capital
|
|
$13,871,901,857
|
|
Accumulated net realized gain on investments
|
|
15,585
|
|
Undistributed net investment income
|
|
1,529
|
|
TOTAL NET ASSETS
|
|
$13,871,918,971
|
|
Net Asset Value, Offering Price and Redemption Proceeds Per Share
|
|
|
|
Investment Shares:
|
|
|
|
$10,981,282,397 ÷ 10,981,268,762 shares outstanding, no par value, unlimited shares authorized
|
|
$1.00
|
|
Retirement Shares:
|
|
|
|
$2,890,636,574 ÷ 2,890,633,048 shares outstanding, no par value, unlimited shares authorized
|
|
$1.00
|
See Notes which are an
integral part of the Financial Statements
Semi-Annual
Shareholder Report
Statement of Operations
Six Months Ended
August 31, 2012 (unaudited)
|
Investment Income:
|
|
|
|
|
Interest
|
|
|
$13,327,532
|
|
Expenses:
|
|
|
|
|
Investment adviser fee (Note 4)
|
|
$
28,366,548
|
|
|
Administrative fee (Note 4)
|
|
5,408,636
|
|
|
Custodian fees
|
|
201,921
|
|
|
Transfer and dividend disbursing agent fees and expenses (Note 4)
|
|
5,050,351
|
|
|
Directors'/Trustees' fees
|
|
41,968
|
|
|
Auditing fees
|
|
10,536
|
|
|
Legal fees
|
|
4,259
|
|
|
Portfolio accounting fees
|
|
87,805
|
|
|
Shareholder services fee (Note 4)
|
|
17,335,257
|
|
|
Share registration costs
|
|
312,796
|
|
|
Printing and postage
|
|
307,459
|
|
|
Insurance premiums
|
|
14,654
|
|
|
Miscellaneous
|
|
28,796
|
|
|
TOTAL EXPENSES
|
|
57,170,986
|
|
|
Waivers and Reimbursement (Note 4):
|
|
|
|
|
Waiver of investment adviser fee
|
$(22,249,343)
|
|
|
|
Waiver of administrative fee
|
(131,784)
|
|
|
|
Waiver of transfer and dividend disbursing agent fees and expenses
|
(1,066,064)
|
|
|
|
Waiver of shareholder services fee
|
(17,335,257)
|
|
|
|
Reimbursement of transfer and dividend disbursing agent fees and expenses
|
(3,674,718)
|
|
|
|
TOTAL WAIVERS AND REIMBURSEMENT
|
|
(44,457,166)
|
|
|
Net expenses
|
|
|
12,713,820
|
|
Net investment income
|
|
|
613,712
|
|
Net realized gain on investments
|
|
|
15,585
|
|
Change in net assets resulting from operations
|
|
|
$
629,297
|
See Notes which are an
integral part of the Financial Statements
Semi-Annual
Shareholder Report
Statement of Changes in Net Assets
|
|
Six Months
Ended
(unaudited)
8/31/2012
|
Year Ended
2/29/2012
|
|
Increase (Decrease) in Net Assets
|
|
|
|
Operations:
|
|
|
|
Net investment income
|
$
613,712
|
$
1,216,967
|
|
Net realized gain on investments
|
15,585
|
14,922
|
|
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
|
629,297
|
1,231,889
|
|
Distributions to Shareholders:
|
|
|
|
Distributions from net investment income
|
|
|
|
Investment Shares
|
(492,351)
|
(979,373)
|
|
Retirement Shares
|
(121,306)
|
(238,131)
|
|
Distributions from net realized gain on investments
|
|
|
|
Investment Shares
|
—
|
(46,280)
|
|
Retirement Shares
|
—
|
(11,878)
|
|
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS
|
(613,657)
|
(1,275,662)
|
|
Share Transactions:
|
|
|
|
Proceeds from sale of shares
|
27,079,714,004
|
53,126,540,990
|
|
Net asset value of shares issued to shareholders in payment of distributions declared
|
593,580
|
1,248,838
|
|
Cost of shares redeemed
|
(27,088,133,536)
|
(53,352,714,321)
|
|
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS
|
(7,825,952)
|
(224,924,493)
|
|
Change in net assets
|
(7,810,312)
|
(224,968,266)
|
|
Net Assets:
|
|
|
|
Beginning of period
|
13,879,729,283
|
14,104,697,549
|
|
End of period (including undistributed net investment income of $1,529 and $1,474, respectively)
|
$
13,871,918,971
|
$
13,879,729,283
|
See Notes which are an
integral part of the Financial Statements
Semi-Annual
Shareholder Report
Notes to Financial
Statements
August 31, 2012
(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. All shares of the Fund have equal rights with respect to voting, except on class specific matters.
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 U.S. generally accepted accounting principles (GAAP).
Investment Valuation
Securities are valued
at amortized cost. Under the amortized cost valuation method, an investment is valued initially at its cost as determined in accordance with GAAP. The Fund then adjusts the amount of interest income accrued each day
over the term of the investment to account for any difference between the initial cost of the investment and the amount payable at its maturity. If amortized cost is determined not to approximate market value, the fair
value of the portfolio securities will be determined under procedures established by and under the general supervision of the Fund's Board of Trustees (the “Trustees”).
The
Trustees have appointed a Valuation Committee comprised of officers of the Fund, Passport Research, Ltd. (“Adviser”) and the Adviser's affiliated companies to determine fair value of securities and in
overseeing the comparison of amortized cost to market value. The Trustees have also authorized the use of pricing services recommended by the Valuation Committee to provide fair value evaluations of the current value
of certain investments for purposes of monitoring the relationship of market value and amortized cost. The Valuation Committee employs various methods for reviewing third-party pricing service evaluations including
periodic reviews of third-party pricing services' policies, procedures and valuation methods (including key inputs and assumptions) and review of price challenges by the Adviser based on recent market activity. In the
event that market quotations and price evaluations are not available for an investment, the Valuation Committee determines the fair value of the investment in accordance with procedures adopted by the Trustees. The
Trustees periodically review and approve the fair valuations made by the Valuation Committee and any changes made to the procedures.
Repurchase Agreements
The Fund may invest in
repurchase agreements for short-term liquidity purposes. It is the policy of the Fund to require the other party to a repurchase agreement to transfer to the Fund's custodian or sub-custodian eligible securities or
cash with a market value (after transaction costs) at least equal to the repurchase price to be paid under the repurchase agreement. The eligible securities are transferred to accounts with the custodian or
sub-custodian in which the Fund holds a “securities entitlement” and exercises “control” as those terms are defined in the Uniform Commercial Code. The Fund has established procedures for
monitoring the market value of the transferred securities and requiring the transfer of
Semi-Annual
Shareholder Report
additional eligible securities if necessary to equal at least the repurchase price. These procedures also allow the other party to require securities to be transferred from the account to the extent that
their market value exceeds the repurchase price or in exchange for other eligible securities of equivalent market value.
The
insolvency of the other party or other failure to repurchase the securities may delay the disposition of the underlying securities or cause the Fund to receive less than the full repurchase price. Under the terms of
the repurchase agreement, any amounts received by the Fund in excess of the repurchase price and related transaction costs must be remitted to the other party.
The
Fund may enter into repurchase agreements in which eligible securities are transferred into joint trading accounts maintained by the custodian or sub-custodian for investment companies and other clients advised by the
Fund's Adviser and its affiliates. The Fund will participate on a pro rata basis with the other investment companies and clients in its share of the securities transferred under such repurchase agreements and in its
share of proceeds from any repurchase or other disposition of such securities.
Investment Income, Gains
and Losses, Expenses and Distributions
Investment
transactions are accounted for on a trade-date basis. Interest income and expenses are accrued daily. Distributions to shareholders are recorded on the ex-dividend date. Distributions of net investment income are
declared daily and paid monthly. 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 Investment Shares and
Retirement Shares may bear shareholder services fees and certain transfer and dividend disbursing agent fees unique to those classes. Dividends are declared separately for each class. No class has preferential dividend
rights; differences in per share dividend rates are generally due to differences in separate class expenses.
Premium and Discount
Amortization
All premiums and
discounts on fixed-income securities are amortized/accreted using the effective interest rate method.
Federal Taxes
It is the Fund's
policy to comply with the Subchapter M provision of the Internal Revenue Code and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal income tax is necessary.
As of and during the six months ended August 31, 2012, the Fund did not have a liability for any uncertain tax positions. The Fund recognizes interest and penalties, if any, related to tax liabilities as income tax
expense in the Statement of Operations. As of August 31, 2012, tax years 2009 through 2012 remain subject to examination by the Fund's major tax jurisdictions, which include the United States of America and the
Commonwealth of Massachusetts.
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.
Semi-Annual
Shareholder Report
Other
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.
3. SHARES OF
BENEFICIAL INTEREST
The following tables
summarize share activity:
|
|
Six Months Ended
8/31/2012
|
Year Ended
2/29/2012
|
|
Investment Shares:
|
Shares
|
Amount
|
Shares
|
Amount
|
|
Shares sold
|
17,727,150,436
|
$
17,727,150,436
|
35,039,182,737
|
$
35,039,182,737
|
|
Shares issued to shareholders in payment of distributions declared
|
478,582
|
478,582
|
1,008,220
|
1,008,220
|
|
Shares redeemed
|
(17,829,320,338)
|
(17,829,320,338)
|
(35,344,680,488)
|
(35,344,680,488)
|
|
NET CHANGE RESULTING FROM INVESTMENT SHARE TRANSACTIONS
|
(101,691,320)
|
$
(101,691,320)
|
(304,489,531)
|
$
(304,489,531)
|
|
|
Six Months Ended
8/31/2012
|
Year Ended
2/29/2012
|
|
Retirement Shares:
|
Shares
|
Amount
|
Shares
|
Amount
|
|
Shares sold
|
9,352,563,569
|
$
9,352,563,569
|
18,087,358,253
|
$
18,087,358,253
|
|
Shares issued to shareholders in payment of distributions declared
|
114,998
|
114,998
|
240,618
|
240,618
|
|
Shares redeemed
|
(9,258,813,199)
|
(9,258,813,199)
|
(18,008,033,833)
|
(18,008,033,833)
|
|
NET CHANGE RESULTING FROM RETIREMENT SHARE TRANSACTIONS
|
93,865,368
|
$
93,865,368
|
79,565,038
|
$
79,565,038
|
|
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS
|
(7,825,952)
|
$
(7,825,952)
|
(224,924,493)
|
$
(224,924,493)
|
4. INVESTMENT
ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Investment Adviser Fee
The advisory agreement
between the Fund and Adviser provides for an annual 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. For the six months ended August 31, 2012, the Adviser voluntarily waived $22,249,343 of its fee.
Semi-Annual
Shareholder Report
Adviser's Background
The Adviser 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 wholly owned by Federated
Investors, Inc. Edward D. Jones & Co., L.P., doing business as Edward Jones, is the limited partner of the Adviser and has a 49.5% interest in the Adviser. For the six months ended August 31, 2012, FIMCO received
approximately 49% of the Adviser's revenues, while Edward Jones received approximately 51%. This allocation may vary depending upon total assets in the Fund or other factors.
Administrative Fee
Federated
Administrative Services (FAS), under the Administrative Services Agreement, provides the Fund with administrative personnel and services. The fee paid to FAS is based on the average aggregate daily net assets of the
Fund and most of the other Federated funds as specified below, plus certain out-of-pocket expenses:
|
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. For the six months ended August 31, 2012, the net fee paid to FAS was 0.076% of average daily net assets of the Fund. FAS waived $131,784 of its fee.
On
August 15, 2012, the Trustees approved the elimination of the minimum administrative personnel and services fees indicated above effective September 1, 2012.
Shareholder Services Fee
The Fund may pay fees
(“Service Fees”) up to 0.25% of the average daily net assets of the Fund's Investment Shares and Retirement Shares to Edward Jones. Edward Jones may voluntarily choose to waive any portion of its Service
Fees. This voluntary waiver can be modified or terminated at any time. In addition, Federated Shareholder Services Company may voluntarily reimburse Service Fees. This reimbursement can be modified or terminated at any
time. For the six months ended August 31, 2012, Service Fees for the Fund were as follows:
|
|
Service Fees
Incurred
|
Service Fees
Waived
|
|
Investment Shares
|
$13,825,564
|
$(13,825,564)
|
|
Retirement Shares
|
3,509,693
|
(3,509,693)
|
|
TOTAL
|
$17,335,257
|
$(17,335,257)
|
Semi-Annual
Shareholder Report
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 voluntarily waiver at any time at its sole discretion. For the six months ended August 31, 2012, transfer and dividend disbursing agent fees and
expenses for the Fund were as follows:
|
|
Transfer and
Dividend
Disbursing Agent
Fees Incurred
|
Transfer and
Dividend
Disbursing Agent
Fees Waived
|
Transfer and
Dividend
Disbursing Agent
Fees Reimbursed
|
|
Investment Shares
|
$3,492,363
|
$
(457,021)
|
$(2,725,773)
|
|
Retirement Shares
|
1,557,988
|
(609,043)
|
(948,945)
|
|
TOTAL
|
$5,050,351
|
$(1,066,064)
|
$(3,674,718)
|
General
Certain Officers and
Trustees of the Fund are Officers and Directors or Trustees of the above companies.
5. LINE OF CREDIT
The Fund participates
in a $100,000,000 unsecured, uncommitted revolving line of credit (LOC) agreement with PNC Bank. The LOC was made available for extraordinary or emergency purposes, primarily for financing redemption payments.
Borrowings are charged interest at a rate offered to the Fund by PNC Bank at the time of the borrowing. As of August 31, 2012, there were no outstanding loans. During the six months ended August 31, 2012, the Fund did
not utilize the LOC.
6. INTERFUND LENDING
Pursuant to an
Exemptive Order issued by the Securities and Exchange Commission, the Fund, along with other funds advised by subsidiaries of Federated Investors, Inc., may participate in an interfund lending program. This program
provides an alternative credit facility allowing the Fund to borrow from other participating affiliated funds. As of August 31, 2012, there were no outstanding loans. During the six months ended August 31, 2012, the
program was not utilized.
Semi-Annual
Shareholder Report
Shareholder Expense Example (unaudited)
As a shareholder of
the Fund, you incur ongoing costs, including management fees and to the extent applicable, shareholder services fees and other Fund expenses. This Example is intended to help you to 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, 2012 to August 31, 2012.
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 required to be provided
to enable you to compare the ongoing costs of investing in the Fund with 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.
Semi-Annual
Shareholder Report
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
3/1/2012
|
Ending
Account Value
8/31/2012
|
Expenses Paid
During Period
1,2
|
|
Actual:
|
|
|
|
|
Investment Shares
|
$1,000
|
$1,000.10
|
$0.91
|
|
Retirement Shares
|
$1,000
|
$1,000.10
|
$0.91
|
Hypothetical (assuming a 5% return
before expenses):
|
|
|
|
|
Investment Shares
|
$1,000
|
$1,024.30
|
$0.92
|
|
Retirement Shares
|
$1,000
|
$1,024.30
|
$0.92
|
|
1
|
Expenses are equal to the Fund's annualized net expense ratios, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half-year period). The annualized net expense ratios
are as follows:
|
|
Investment Shares
|
0.18%
|
|
Retirement Shares
|
0.18%
|
|
2
|
Actual and Hypothetical expenses paid during the period utilizing the Fund's Investment Shares and Retirement Shares current fee limits of 0.81% and 0.84%, respectively, multiplied by the average account value over
the period, multiplied by 184/365 (to reflect expenses paid as if they had been in effect throughout the most recent one-half-year period) would be $4.08 and $4.13, and $4.23 and $4.28, respectively.
|
Semi-Annual
Shareholder Report
Evaluation and
Approval of Advisory Contract
–
May 2012
Edward Jones Money
Market Fund (the “Fund”)
Following a review
and recommendation of approval by the Fund's independent trustees, the Fund's Board reviewed and approved at its May 2012 meetings the Fund's investment advisory contract for an additional one-year term. The Board's
decision regarding the contract reflects the exercise of its business judgment on whether to continue the existing arrangements.
In
this connection, the Federated Funds' Board had previously appointed a Senior Officer, whose duties include specified responsibilities relating to the process by which advisory fees are to be charged to a Federated
fund. The Senior Officer has the authority to retain consultants, experts, or staff as may be reasonably necessary to assist in the performance of his duties, reports directly to the Board, and may be terminated only
with the approval of a majority of the independent members of the Board. The Senior Officer prepared and furnished to the Board an independent, written evaluation that covered topics discussed below (the
“Evaluation”). The Board considered that Evaluation, along with other information, in deciding to approve the advisory contract.
The
Board is also familiar with and considered judicial decisions concerning allegedly excessive investment advisory fees, which have indicated that the following factors may be relevant to an Adviser's fiduciary duty with
respect to its receipt of compensation from a fund: the nature and quality of the services provided by the Adviser to a fund and its shareholders, including the performance and expenses of the fund and of comparable
funds; the Adviser's cost of providing the services, including the profitability to the Adviser of providing advisory services to a fund; the extent to which the Adviser may realize “economies of scale” as
a fund grows larger and, if such economies exist, whether they have been shared with a fund and its shareholders; any “fall-out financial benefits” that accrue to the Adviser because of its relationship
with a fund (including research services received from brokers that execute fund trades and any fees paid to affiliates of the Adviser for services rendered to a fund); comparative fee structures, including a
comparison of fees paid to the Adviser with those paid by similar funds; and the extent to which the Board members are fully informed about all facts the Board deems relevant to its consideration of the Adviser's
services and fees. Consistent with these judicial decisions, the Board also considered management fees (including any components thereof) charged to institutional and other clients of the Adviser for what might be
viewed as like services. The Board was aware of these factors and was guided by them in its review of the Fund's advisory contract to the extent it considered them to be appropriate and relevant, as discussed further
below.
Semi-Annual
Shareholder Report
The
Board considered and weighed these circumstances in light of its substantial accumulated experience in governing the Fund and working with Federated on matters relating to the Federated funds, and was assisted in its
deliberations by independent legal counsel. Throughout the year, and in connection with its May meetings, the Board requested and received substantial and detailed information about the Fund and the Federated
organization that was in addition to the extensive materials that comprise and accompany the Senior Officer's Evaluation. Federated provided much of this information at each regular meeting of the Board, and furnished
additional substantial information in connection with the May meeting at which the Board's formal review of the advisory contract occurred. At this May meeting, senior management of the Adviser also met with the
independent trustees and their counsel to discuss the materials presented and any other matters thought relevant by the Adviser or the trustees. Between regularly scheduled meetings, the Board also received information
on particular matters as the need arose. Thus, the Board's consideration of the advisory contract included review of the Senior Officer's Evaluation, accompanying data and additional information covering such matters
as: the Adviser's investment philosophy, revenue, profitability, personnel and processes; investment and operating strategies; the Fund's short- and long-term performance (in absolute terms, both on a gross basis and
net of expenses, as well as in relationship to its particular investment program and certain competitor or “peer group” funds and/or other benchmarks, as appropriate), and comments on the reasons for
performance; the Fund's investment objectives; the Fund's expenses (including the advisory fee itself and the overall expense structure of the Fund, both in absolute terms and relative to similar and/or competing
funds, with due regard for contractual or voluntary expense limitations); the use and allocation of brokerage commissions derived from trading the Fund's portfolio securities (if any); and the nature, quality and
extent of the advisory and other services provided to the Fund by the Adviser and its affiliates. The Board also considered the preferences and expectations of Fund shareholders; the entrepreneurial risk assumed by the
Adviser in sponsoring the funds; the continuing state of competition in the mutual fund industry and market practices; the range of comparable fees for similar funds in the mutual fund industry; the Fund's relationship
to the Federated family of funds which include a comprehensive array of funds with different investment objectives, policies and strategies which are available for exchange without the incurrence of additional sales
charges; compliance and audit reports concerning the Federated funds and the Federated companies that service them (including communications from regulatory agencies), as well as Federated's responses to any issues
raised therein; and relevant developments in the mutual fund industry and how the Federated funds and/or Federated are responding to them. The Board's evaluation process is evolutionary. The criteria considered and the
emphasis placed on relevant criteria change in recognition of changing circumstances in the mutual fund marketplace.
Semi-Annual
Shareholder Report
While
mindful that courts have cautioned against giving such comparisons too much weight, the Board has found the use of comparisons of the Fund's fees and expenses to other mutual funds with comparable investment programs
to be relevant, given the high degree of competition in the mutual fund business. The Board focused on comparisons with other similar mutual funds more heavily than non-mutual fund products or services because it is
believed that they are more relevant. For example, other mutual funds are the products most like the Fund, they are readily available to Fund shareholders as alternative investment vehicles, and they are the type of
investment vehicle in fact chosen and maintained by the Fund's investors. The range of their fees and expenses therefore appears to be a generally reliable indication of what consumers have found to be reasonable in
the precise marketplace in which the Fund competes. In this regard, the Senior Officer has reviewed Federated's fees for providing advisory services to products outside the Federated family of funds (e.g.,
institutional and separate accounts). He concluded that mutual funds and institutional accounts are inherently different products. Those differences include, but are not limited to, different types of targeted
investors; being subject to different laws and regulations; different legal structures; different average account sizes; different associated costs; different portfolio management techniques made necessary by different
cash flows; and portfolio manager time spent in review of securities pricing. The Senior Officer did not consider these fee schedules to be determinative in judging the appropriateness of mutual fund advisory contracts.
The
Fund's ability to deliver competitive performance when compared to its peer group was also deemed to be relevant by the Board as a useful indicator of how the Adviser is executing the Fund's investment program, which
in turn assisted the Board in reaching a conclusion that the nature, extent, and quality of the Adviser's investment management services were such as to warrant continuation of the advisory contract.
The
Senior Officer reviewed information compiled by Federated, using data supplied by independent fund ranking organizations, regarding the performance of, and fees charged by, other mutual funds, noting his view that
comparisons to fund peer groups are relevant in judging the reasonableness of proposed fees.
The
Fund's performance was above the median of the relevant peer group for the one-year period covered by the Evaluation.
The
Board also received financial information about Federated, including information regarding the compensation and benefits Federated derived from its relationships with the Federated funds. This information covered not
only the fees under the advisory contracts, but also fees received by Federated's subsidiaries for providing other services to the Federated funds under separate contracts (e.g., for serving as the Federated funds'
administrator). The information also detailed any indirect benefit Federated may derive from its receipt of research services from brokers who execute Federated fund trades. In addition, the Board considered the fact
that, in order for a fund to be
Semi-Annual
Shareholder Report
competitive in the marketplace, Federated and its affiliates frequently waived fees and/or reimbursed expenses and have disclosed to fund investors and/or indicated to the Board their intention to do so
in the future, where appropriate. Moreover, the Board receives regular reporting as to the institution or elimination of these voluntary waivers.
Federated furnished information, requested by the Senior Officer, that reported revenues on a fund-by-fund basis and made estimates of the allocation of expenses on a fund-by-fund basis, using allocation
methodologies specified by the Senior Officer. The Senior Officer noted that, although they may apply consistent allocation processes, the inherent difficulties in allocating costs (and the unavoidable arbitrary
aspects of that exercise) and the lack of consensus on how to allocate those costs may render such allocation information unreliable. The allocation information was considered in the analysis by the Board but was
determined to be of limited use.
The
Board and the Senior Officer also reviewed information compiled by Federated comparing profitability information for Federated to other publicly held fund management companies. In this regard, the Senior Officer noted
the limited availability of such information, but nonetheless concluded that Federated's profit margins did not appear to be excessive.
The
Senior Officer's Evaluation also discussed the notion of possible realization of “economies of scale” as a fund grows larger. The Board considered in this regard that the Adviser has made significant and
long-term investments in areas that support all of the Federated funds, such as personnel and processes for the portfolio management, shareholder services, compliance, internal audit, and risk management functions; and
systems technology; and that the benefits of these efforts (as well as any economies, should they exist) were likely to be enjoyed by the fund complex as a whole. Finally, the Board also noted the absence of any
applicable regulatory or industry guidelines on this subject, which (as discussed in the Senior Officer's Evaluation) is compounded by the lack of any common industry practice or general pattern with respect to
structuring fund advisory fees with “breakpoints” that serve to reduce the fee as the fund attains a certain size. The Senior Officer did not recommend institution of additional breakpoints in pricing
Federated's fund advisory services at this time.
It was
noted in the materials for the Board meeting that for the period covered by the Evaluation, the Fund's investment advisory fee, after waivers and expense reimbursements, if any, was above the median of the relevant
peer group. The Board reviewed the fees and other expenses of the Fund with the Adviser and was satisfied that the overall expense structure of the Fund remained competitive. The Board will continue to monitor advisory
fees and other expenses borne by the Fund.
Semi-Annual
Shareholder Report
The
Senior Officer noted that, considering the totality of the circumstances, and all of the factors referenced within his Evaluation, he had concluded that, subject to comments and recommendations made within his
Evaluation, his observations and the information accompanying the Evaluation supported a finding by the Board that the management fees for each of the funds was reasonable and that Federated appeared to provide
appropriate advisory and administrative services to the Fund for the fees paid. Under these circumstances, no changes were recommended to, and no objection was raised to, the continuation of the Fund's advisory contract.
In its
decision to continue an existing investment advisory contract, the Board was mindful of the potential disruptions of the Fund's operations and various risks, uncertainties and other effects that could occur as a result
of a decision to terminate or not renew an advisory contract. In particular, the Board recognized that many shareholders have invested in the Fund on the strength of the Adviser's industry standing and reputation and
with the expectation that the Adviser will have a continuing role in providing advisory services to the Fund. Thus, the Board's approval of the advisory contract reflected the fact that it is the shareholders who have
effectively selected the Adviser by virtue of having invested in the Fund. The Board concluded that, in light of the factors discussed above, including the nature, quality and scope of the services provided to the Fund
by the Adviser and its affiliates, continuation of the advisory contract was appropriate.
The
Board based its decision to approve the advisory contract on the totality of the circumstances and relevant factors and with a view to past and future long-term considerations. Not all of the factors and considerations
identified above were necessarily relevant to the Fund, nor did the Board consider any one of them to be determinative. With respect to the factors that were relevant, the Board's decision to approve the contract
reflects its determination that Federated's performance and actions provided a satisfactory basis to support the decision to continue the existing arrangements.
Semi-Annual
Shareholder Report
Voting Proxies on Fund Portfolio Securities
A description of the
policies and procedures that the Fund uses to determine how to vote proxies, if any, 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, without charge and upon request, by calling 1-800-341-7400 and is also
available at the SEC's website at 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 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.)
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.
Semi-Annual
Shareholder Report
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.
Edward Jones
201 Progress Parkway
Maryland Heights, Missouri
1-800-331-2451
CUSIP 48019P102
CUSIP 48019P201
8092605 (10/12)
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
(a) The registrant’s Schedule of Investments is included
as part of the Report to Stockholders filed under Item 1 of this form.
(b) Not Applicable; Fund had no divestments during the
reporting period covered since the previous Form N-CSR filing.
Item 7. Disclosure of
Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Item 8. Portfolio Managers
of Closed-End Management Investment Companies
Item 9. Purchases of Equity
Securities by Closed-End Management Investment Company and Affiliated Purchasers
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 second fiscal quarter of the period covered
by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control
over financial reporting.
Item 12. Exhibits
(a)(1) Code of Ethics- Not Applicable to this Report.
(a)(2) Certifications of Principal Executive Officer and
Principal Financial Officer.
(a)(3) Not Applicable.
(b) Certifications pursuant to 18 U.S.C. Section 1350.
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 A. Novak
Richard A. Novak
Principal Financial Officer
Date
October 23, 2012
Pursuant to the requirements of the Securities Exchange Act
of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant
and in the capacities and on the dates indicated.
By
/S/ J. Christopher Donahue
J. Christopher Donahue
Principal Executive Officer
Date
October 23, 2012
By
/S/ Richard A. Novak
Richard A. Novak
Principal Financial Officer
Date
October 23, 2012
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