1933 Act File No. | 2-91090 |
1940 Act File No. | 811-4017 |
Form N-1A
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 | ||||
Pre-Effective Amendment No. | ||||
Post-Effective Amendment No. | 128 | |||
and/or | ||||
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 | ||||
Amendment No. | 122 | |||
FEDERATED EQUITY FUNDS
(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, including Area Code)
John W. McGonigle, Esquire
Federated Investors Tower
Pittsburgh, Pennsylvania 15222-3779
(Name and Address of Agent for Service)
It is proposed that this filing will become effective (check appropriate box): | |||
X | immediately upon filing pursuant to paragraph (b) | ||
on | pursuant to paragraph (b) | ||
60 days after filing pursuant to paragraph (a)(1) | |||
on | pursuant to paragraph (a)(1) | ||
75 days after filing pursuant to paragraph (a)(2) | |||
on | pursuant to paragraph (a)(2) of Rule 485 | ||
If appropriate, check the following box: | |||
This post-effective amendment designates a new effective date for a previously filed post-effective amendment. |
Share Class | Ticker |
A | FEDEX |
B | CPABX |
C | CPACX |
R | CPAKX |
Institutional | CPAIX |
1 | The Adviser and its affiliates have voluntarily agreed to waive their fees and/or reimburse expenses so that the total annual fund operating expenses (excluding Acquired Fund Fees and Expenses) paid by the Fund's A, B, C, R and IS classes (after the voluntary waivers and/or reimbursements) will not exceed 1.24%, 2.10%, 2.06%,1.46% and 0.98% (the “Fee Limit”), respectively, up to but not including the later of (the “Termination Date”): (a) January 1, 2014; or (b) the date of the Fund's next effective Prospectus. While the Adviser and its affiliates currently do not anticipate terminating or increasing these arrangements prior to the Termination Date, these arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the agreement of the Fund's Board of Trustees. |
■ | Stock Market Risk. The value of equity securities in the Fund's portfolio will fluctuate and, as a result, the Fund's Share price may decline suddenly or over a sustained period of time. |
■ | Liquidity Risk. The equity securities in which the Fund invests may be less readily marketable and may be subject to greater fluctuation in price than other securities. |
■ | Risk Related to Company Size. Because the smaller companies in which the Fund may invest may have unproven track records, a limited product or service base and limited access to capital, they may be more likely to fail than larger companies. |
■ | Medium-Sized Companies Risk. The Fund may invest in mid-size companies. Mid-capitalization companies often have narrower markets and limited managerial and financial resources compared to larger, more established companies. As a result, their performance can be more volatile and they face greater risk of business failure, which could increase the volatility of the Fund's portfolio. You should expect that the value of the Fund's Shares will be more volatile than a fund that invests exclusively in large-capitalization companies. |
■ | Sector Risk. Because the Fund may allocate relatively more assets to certain industry sectors than others, the Fund's performance may be more susceptible to any developments which affect those sectors emphasized by the Fund. |
■ | Risk of Foreign Investing. Because the Fund may invest in securities issued by foreign companies, the Fund's Share price may be more affected by foreign economic and political conditions, taxation policies and accounting and auditing standards than could otherwise be the case. |
■ | Custodial Services and Related Investment Costs. Custodial services and other costs relating to investment in international securities markets generally are more expensive than in the United States. Such markets have settlement and clearance procedures that differ from those in the United States. The inability of the Fund to make intended securities purchases due to settlement problems could cause the Fund to miss attractive investment opportunities. |
■ | Currency Risk. Exchange rates for currencies fluctuate daily. The combination of currency risk and market risk tends to make securities traded in foreign markets more volatile than securities traded exclusively in the United States. |
■ | Eurozone Related Risk. A number of countries in the European Union (EU) have experienced, and may continue to experience, severe economic and financial difficulties. Additional EU member countries may also fall subject to such difficulties. These events could negatively affect the value and liquidity of the Fund's investments in euro-denominated securities and derivatives contracts, securities of issuers located in the EU or with significant exposure to EU issuers or countries. |
■ | Risk of Investing in ADRs and Domestically Traded Securities of Foreign Issuers. Because the Fund may invest in ADRs and other domestically traded securities of foreign companies, the Fund's Share price may be more affected by foreign economic and political conditions, taxation policies and accounting and auditing standards than would otherwise be the case. |
■ | Technology Risk. Proprietary and third-party data and systems are utilized to support decision making for the Fund. Data imprecision, software or other technology malfunctions, programming inaccuracies and similar circumstances may impair the performance of these systems, which may negatively affect Fund performance. |
1 Year | 5 Years | 10 Years | |
A: | |||
Return Before Taxes | (10.47)% | (2.01)% | 1.43% |
Return After Taxes on Distributions | (10.66)% | (3.03)% | 0.54% |
Return After Taxes on Distributions and Sale of Fund Shares | (6.81)% | (1.92)% | 1.07% |
B: | |||
Return Before Taxes | (11.24)% | (2.03)% | 1.35% |
C: | |||
Return Before Taxes | (6.97)% | (1.68)% | 1.20% |
R: | |||
Return Before Taxes | (5.49)% | (1.29)% | 1.57% |
IS: | |||
Return Before Taxes | (5.07)% | (0.69)% | 2.10% |
Standard & Poor's 500 Index
1
(reflects no deduction for fees, expenses or taxes) |
2.11% | (0.25)% | 2.92% |
Lipper Large Cap Core Funds Average 2 | (1.65)% | (1.57)% | 2.18% |
1 | The Standard & Poor's 500 Index is an unmanaged capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. |
2 | Lipper figures represent the average of the total returns reported by all the mutual funds designated by Lipper Inc. as falling into the respective categories indicated. They do not reflect sales charges. |
■ | it is organized under the laws of, or has a principal office located in, another country; |
■ | the principal trading market for its securities is in another country; or |
■ | it (directly or through its consolidated subsidiaries) derived in its most current fiscal year at least 50% of its total assets, capitalization, gross revenue or profit from goods produced, services performed or sales made in another country. |
■ | Equity securities listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market. |
■ | With respect to securities traded principally in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures contracts; |
■ | Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; and |
■ | Announcements concerning matters such as acquisitions, recapitalizations or litigation developments or a natural disaster affecting the issuer's operations or regulatory changes or market developments affecting the issuer's industry. |
Minimum
Initial/Subsequent Investment Amounts 1 |
Maximum Sales Charges | ||
Shares Offered |
Front-End
Sales Charge 2 |
Contingent
Deferred Sales Charge 3 |
|
A | $1,500/$100 | 5.50% | 0.00% |
B | $1,500/$100 | None | 5.50% |
C | $1,500/$100 | None | 1.00% |
1 | The minimum initial and subsequent investment amounts for Individual Retirement Accounts (IRAs) are generally $250 and $100, respectively. There is no minimum initial or subsequent investment amount required for employer-sponsored retirement plans; however, such accounts remain subject to the Fund's policy on “Accounts with Low Balances” as discussed later in this Prospectus. Please see “By Systematic Investment Program” for applicable minimum investment. Financial intermediaries may impose higher or lower minimum investment requirements on their customers than those imposed by the Fund. |
To maximize your return and minimize the sales charges and marketing fees, purchases of the B class are generally limited to $100,000 and purchases of the C class are generally limited to $1,000,000. Purchases equal to or in excess of these limits may be made in the A class. If your Shares are held on the books of the Fund in the name of a financial intermediary, you may be subject to rules of your financial intermediary that differ from those of the Fund. See “Purchase Restrictions on B Class and C Class” below. After the B class has been held for eight years from the date of purchase, they will automatically convert to the A class. This conversion is a non-taxable event. | |
2 | Front-End Sales Charge is expressed as a percentage of public offering price. See “Sales Charge When You Purchase.” |
3 | See “Sales Charge When You Redeem.” |
A: | ||
Purchase Amount |
Sales Charge
as a Percentage of Public Offering Price |
Sales Charge
as a Percentage of NAV |
Less than $50,000 | 5.50% | 5.82% |
$50,000 but less than $100,000 | 4.50% | 4.71% |
$100,000 but less than $250,000 | 3.75% | 3.90% |
$250,000 but less than $500,000 | 2.50% | 2.56% |
$500,000 but less than $1 million | 2.00% | 2.04% |
$1 million or greater 1 | 0.00% | 0.00% |
1 | A contingent deferred sales charge (CDSC) of 0.75% of the redemption amount applies to Shares originally purchased in an amount of $1 million or more and redeemed up to 24 months after purchase under certain investment programs where a financial intermediary received an advance payment on the transaction. CDSC exceptions may apply, See “Sales Charge When You Redeem.” |
■ | Purchasing the A class in greater quantities to reduce the applicable sales charge; |
■ | Combining concurrent purchases of and/or current investments in the A class, B class, C class, F class and R class of any Federated fund made or held by Qualifying Accounts; the purchase amount used in determining the sales charge on your additional Share purchase will be calculated by multiplying the respective maximum public offering price times the number of the A class, B class, C class, F class and R class shares of any Federated fund currently held in Qualifying Accounts and adding the dollar amount of your current purchase; or |
■ | Signing a letter of intent to purchase a qualifying amount of the A class within 13 months. (Call your financial intermediary or the Fund for more information.) The Fund's custodian will hold Shares in escrow equal to the maximum applicable sales charge. If you complete the Letter of Intent, the Custodian will release the Shares in escrow to your account. If you do not fulfill the Letter of Intent, the Custodian will redeem the appropriate amount from the Shares held in escrow to pay the sales charges that were not applied to your purchases. |
■ | within 120 days of redeeming Shares of an equal or greater amount; |
■ | through a program offered by a Financial Intermediary that provides for the purchase of Shares without imposition of a sales charge (for example, a wrap account, self-directed brokerage account, retirement, or other fee-based program offered by the Financial Intermediary) and where the Financial Intermediary has agreed with the Distributor not to receive a dealer reallowance on purchases under such program; |
■ | with reinvested dividends or capital gains; |
■ | as a shareholder that originally became a shareholder of a Federated fund pursuant to the terms of an agreement and plan of reorganization which permits shareholders to acquire Shares at NAV; |
■ | as a Federated Life Member (Federated shareholders who originally were issued shares through the “Liberty Account,” which was an account for the Liberty Family of Funds on February 28, 1987, or who invested through an affinity group prior to August 1, 1987, into the Liberty Account) (A class only); |
■ | as a Trustee, employee or former employee of the Fund, the Adviser, the Distributor and their affiliates, an employee of any financial intermediary that sells Shares according to a sales agreement with the Distributor, an immediate family member of these individuals or a trust, pension or profit-sharing plan for these individuals; or |
■ | pursuant to the exchange privilege. |
■ | Shares that are not subject to a CDSC; and |
■ | Shares held the longest. (To determine the number of years your Shares have been held, include the time you held shares of other Federated funds that have been exchanged for Shares of this Fund.) |
■ | following the death of the last surviving shareholder on the account or the post-purchase disability of all registered shareholders, as defined in Section 72(m)(7) of the Internal Revenue Code of 1986 (the beneficiary on an account with a Transfer on Death registration is deemed the last surviving shareholder on the account); |
■ | representing minimum required distributions from an IRA or other retirement plan to a shareholder who has attained the age of 70 1 ∕ 2 ; |
■ | purchased by Trustees, employees of the Fund, the Adviser, the Distributor and their affiliates, by employees of a financial intermediary that sells Shares according to a sales agreement with the Distributor, by the immediate family members of the above persons and by trusts, pension or profit-sharing plans for the above persons; |
■ | purchased through a program offered by a Financial Intermediary that provides for the purchase of Shares without imposition of a sales charge (for example, a wrap account, self-directed brokerage account, retirement or other fee-based program offered by the Financial Intermediary) and where the Financial Intermediary has agreed with the Distributor not to receive an advance commission on purchases under such program; |
■ | purchased with reinvested dividends or capital gains; |
■ | redeemed by the Fund when it closes an account for not meeting the minimum balance requirements |
■ | purchased pursuant to the exchange privilege, if the Shares were held for the applicable CDSC holding period (the holding period on the Shares purchased in the exchange will include the holding period of the Shares sold in the exchange); |
■ | purchased in the amount of $1 million or more and redeemed within 24 months of purchase if the Shares were originally purchased through a program offered by a Financial Intermediary that provides for the purchase of Shares without imposition of a sales charge (for example, a wrap account, self-directed brokerage account, retirement, or other fee-based program offered by the Financial Intermediary) and where the Financial Intermediary has agreed with the principal underwriter not to receive an advanced commission on purchases under such program; or |
■ | which are qualifying redemptions of the B class under a Systematic Withdrawal Program. |
■ | An investor participating in a wrap program or other fee-based program sponsored by a financial intermediary; |
■ | An investor participating in a no-load network or platform sponsored by a financial intermediary where Federated has entered into an agreement with the intermediary; |
■ | A trustee/director, employee or former employee of the Fund, the Adviser, the Distributor and their affiliates; an immediate family member of these individuals or a trust, pension or profit-sharing plan for these individuals; |
■ | An employer-sponsored retirement plan; |
■ | A trust institution investing on behalf of its trust customers; |
■ | Additional sales to an investor (including a natural person) who owned the IS class of the Fund as of December 31, 2008; |
■ | An investor (including a natural person) who acquired the IS class of a Federated fund pursuant to the terms of an agreement and plan of reorganization which permits the investor to acquire such shares; and |
■ | In connection with an acquisition of an investment management or advisory business, or related investment services, products or assets, by Federated or its investment advisory subsidiaries, an investor (including a natural person) who: (1) becomes a client of an investment advisory subsidiary of Federated; or (2) is a shareholder or interest holder of a pooled investment vehicle or product that becomes advised or subadvised by a Federated investment advisory subsidiary as a result of such an acquisition other than as a result of a fund reorganization transaction pursuant to an agreement and plan of reorganization. |
■ | An investor, other than a natural person, purchasing the IS class directly from the Fund; and |
■ | In connection with an initial purchase of the IS class through an exchange, an investor (including a natural person) who owned the IS class of another Federated fund as of December 31, 2008. |
A: | |
Purchase Amount |
Dealer Reallowance
as a Percentage of Public Offering Price |
Less than $50,000 | 5.00% |
$50,000 but less than $100,000 | 4.00% |
$100,000 but less than $250,000 | 3.25% |
$250,000 but less than $500,000 | 2.25% |
$500,000 but less than $1 million | 1.80% |
$1 million or greater | 0.00% |
A (for purchases over $1 million): | |
Purchase Amount |
Advance Commission
as a Percentage of Public Offering Price |
First $1 million - $5 million | 0.75% |
Next $5 million - $20 million | 0.50% |
Over $20 million | 0.25% |
C: | |
Advance Commission
as a Percentage of Public Offering Price |
|
All Purchase Amounts | 1.00% |
■ | Establish an account with the financial intermediary; and |
■ | Submit your purchase order to the financial intermediary before the end of regular trading on the NYSE (normally 4:00 p.m. Eastern time). |
■ | Establish your account with the Fund by submitting a completed New Account Form; and |
■ | Send your payment to the Fund by Federal Reserve wire or check. |
■ | ensure that the account registrations are identical; |
■ | meet any applicable minimum initial investment requirements; and |
■ | receive a prospectus for the fund into which you wish to exchange. |
■ | through a financial intermediary if you purchased Shares through a financial intermediary; or |
■ | directly from the Fund if you purchased Shares directly from the Fund. |
■ | Fund name and Share class, account number and account registration; |
■ | amount to be redeemed or exchanged; |
■ | signatures of all shareholders exactly as registered; and |
■ | if exchanging , the Fund name and Share class, account number and account registration into which you are exchanging. |
■ | your redemption will be sent to an address other than the address of record; |
■ | your redemption will be sent to an address of record that was changed within the last 30 days; |
■ | a redemption is payable to someone other than the shareholder(s) of record; or |
■ | transferring into another fund with a different shareholder registration. |
■ | An electronic transfer to your account at a financial institution that is an ACH member; or |
■ | Wire payment to your account at a domestic commercial bank that is a Federal Reserve System member. |
■ | to allow your purchase to clear (as discussed below); |
■ | during periods of market volatility; |
■ | when a shareholder's trade activity or amount adversely impacts the Fund's ability to manage its assets; or |
■ | during any period when the Federal Reserve wire or applicable Federal Reserve banks are closed, other than customary weekend and holiday closings. |
■ | when the NYSE is closed, other than customary weekend and holiday closings; |
■ | when trading on the NYSE is restricted, as determined by the SEC; or |
■ | in which an emergency exists, as determined by the SEC, so that disposal of the Fund's investments or determination of its NAV is not reasonably practicable. |
■ | ensure that the account registrations are identical; |
■ | meet any applicable minimum initial investment requirements; and |
■ | receive a prospectus for the fund into which you wish to exchange. |
■ | you redeem 12% or less of your account value in a single year; |
■ | you reinvest all dividends and capital gains distributions; |
■ | your account has at least a $10,000 balance when you establish the SWP. (You cannot aggregate multiple B class accounts to meet this minimum balance.); and |
■ | for all B class accounts established on or after August 2, 2010, the minimum SWP redemption amount is $50 per transaction, per fund, including transactions that qualify for a CDSC waiver as outlined in this Prospectus. |
Year Ended October 31 | 2012 | 2011 | 2010 | 2009 | 2008 |
Net Asset Value, Beginning of Period | $17.89 | $18.13 | $16.13 | $16.03 | $28.14 |
Income From Investment Operations: | |||||
Net investment income | 0.13 1 | 0.11 1 | 0.10 1 | 0.17 1 | 0.18 1 |
Net realized and unrealized gain (loss) on investments and foreign currency transactions | 1.55 | (0.24) | 2.02 | 0.09 | (6.60) |
TOTAL FROM INVESTMENT OPERATIONS | 1.68 | (0.13) | 2.12 | 0.26 | (6.42) |
Less Distributions: | |||||
Distributions from net investment income | (0.11) | (0.11) | (0.12) | (0.16) | (0.15) |
Distributions from net realized gain on investments and foreign currency transactions | — | — | — | — | (5.54) |
TOTAL DISTRIBUTIONS | (0.11) | (0.11) | (0.12) | (0.16) | (5.69) |
Net Asset Value, End of Period | $19.46 | $17.89 | $18.13 | $16.13 | $16.03 |
Total Return 2 | 9.46% | (0.76)% | 13.20% | 1.71% | (27.70)% |
Ratios to Average Net Assets: | |||||
Net expenses | 1.24% 3 | 1.24% 3 | 1.24% 3 | 1.23% 3 | 1.25% 3 |
Net investment income | 0.68% | 0.58% | 0.58% | 1.11% | 0.88% |
Expense waiver/reimbursement 4 | 0.09% | 0.07% | 0.04% | 0.08% | 0.01% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $645,433 | $784,928 | $865,886 | $943,922 | $939,280 |
Portfolio turnover | 113% | 175% | 245% | 254% | 252% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
3 | The net expense ratio is calculated without reduction for expense offset arrangements. The net expense ratios are 1.24%, 1.24%, 1.23%, 1.22% and 1.24% for the years ended October 31, 2012, 2011, 2010, 2009 and 2008, respectively, after taking into account these expense reductions. |
4 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. |
Year Ended October 31 | 2012 | 2011 | 2010 | 2009 | 2008 |
Net Asset Value, Beginning of Period | $16.93 | $17.20 | $15.32 | $15.24 | $27.07 |
Income From Investment Operations: | |||||
Net investment income (loss) | (0.03) 1 | (0.05) 1 | (0.04) 1 | 0.04 1 | 0.02 1 |
Net realized and unrealized gain (loss) on investments and foreign currency transactions | 1.46 | (0.22) | 1.92 | 0.08 | (6.31) |
TOTAL FROM INVESTMENT OPERATIONS | 1.43 | (0.27) | 1.88 | 0.12 | (6.29) |
Less Distributions: | |||||
Distributions from net investment income | — | — | — | (0.04) | — |
Distributions from net realized gain on investments and foreign currency transactions | — | — | — | — | (5.54) |
TOTAL DISTRIBUTIONS | — | — | — | (0.04) | (5.54) |
Net Asset Value, End of Period | $18.36 | $16.93 | $17.20 | $15.32 | $15.24 |
Total Return 2 | 8.45% | (1.57)% | 12.27% | 0.83% | (28.29)% |
Ratios to Average Net Assets: | |||||
Net expenses | 2.10% 3 | 2.10% 3 | 2.10% 3 | 2.10% 3 | 2.05% 3 |
Net investment income (loss) | (0.15)% | (0.28)% | (0.27)% | 0.31% | 0.10% |
Expense waiver/reimbursement 4 | 0.12% | 0.04% | 0.01% | 0.02% | 0.01% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $37,533 | $64,708 | $116,426 | $163,827 | $221,131 |
Portfolio turnover | 113% | 175% | 245% | 254% | 252% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
3 | The net expense ratio is calculated without reduction for expense offset arrangements. The net expense ratios are 2.10%, 2.10%, 2.09%, 2.09% and 2.04% for the years ended October 31, 2012, 2011, 2010, 2009 and 2008, respectively, after taking into account these expense reductions. |
4 | This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above. |
Year Ended October 31 | 2012 | 2011 | 2010 | 2009 | 2008 |
Net Asset Value, Beginning of Period | $16.90 | $17.17 | $15.29 | $15.23 | $27.05 |
Income From Investment Operations: | |||||
Net investment income (loss) | (0.03) 1 | (0.04) 1 | (0.04) 1 | 0.04 1 | 0.02 1 |
Net realized and unrealized gain (loss) on investments and foreign currency transactions | 1.47 | (0.23) | 1.92 | 0.09 | (6.30) |
TOTAL FROM INVESTMENT OPERATIONS | 1.44 | (0.27) | 1.88 | 0.13 | (6.28) |
Less Distributions: | |||||
Distributions from net investment income | — | — | — | (0.07) | — |
Distributions from net realized gain on investments and foreign currency transactions | — | — | — | — | (5.54) |
TOTAL DISTRIBUTIONS | — | — | — | (0.07) | (5.54) |
Net Asset Value, End of Period | $18.34 | $16.90 | $17.17 | $15.29 | $15.23 |
Total Return 2 | 8.52% | (1.57)% | 12.30% | 0.89% | (28.27)% |
Ratios to Average Net Assets: | |||||
Net expenses | 2.06% 3 | 2.06% 3 | 2.06% 3 | 2.06% 3 | 2.03% 3 |
Net investment income (loss) | (0.14)% | (0.24)% | (0.23)% | 0.30% | 0.11% |
Expense waiver/reimbursement 4 | 0.05% | 0.02% | 0.01% | 0.02% | 0.01% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $57,705 | $64,550 | $77,045 | $83,060 | $88,572 |
Portfolio turnover | 113% | 175% | 245% | 254% | 252% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
3 | The net expense ratio is calculated without reduction for expense offset arrangements. The net expense ratios are 2.06%, 2.06%, 2.05%, 2.05% and 2.02% for the years ended October 31, 2012, 2011, 2010, 2009 and 2008, respectively, after taking into account these expense reductions. |
4 | This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above. |
Year Ended October 31 | 2012 | 2011 | 2010 | 2009 | 2008 |
Net Asset Value, Beginning of Period | $17.72 | $17.93 | $15.94 | $15.90 | $27.98 |
Income From Investment Operations: | |||||
Net investment income | 0.09 1 | 0.07 1 | 0.02 1 | 0.11 1 | 0.07 1 |
Net realized and unrealized gain (loss) on investments and foreign currency transactions | 1.52 | (0.24) | 2.00 | 0.08 | (6.55) |
TOTAL FROM INVESTMENT OPERATIONS | 1.61 | (0.17) | 2.02 | 0.19 | (6.48) |
Less Distributions: | |||||
Distributions from net investment income | (0.08) | (0.04) | (0.03) | (0.15) | (0.06) |
Distributions from net realized gain on investments and foreign currency transactions | — | — | — | — | (5.54) |
TOTAL DISTRIBUTIONS | (0.08) | (0.04) | (0.03) | (0.15) | (5.60) |
Net Asset Value, End of Period | $19.25 | $17.72 | $17.93 | $15.94 | $15.90 |
Total Return 2 | 9.14% | (0.97)% | 12.70% | 1.30% | (28.05)% |
Ratios to Average Net Assets: | |||||
Net expenses | 1.46% 3 | 1.47% 3 | 1.69% 3 | 1.71% 3 | 1.70% 3 |
Net investment income | 0.47% | 0.36% | 0.14% | 0.78% | 0.33% |
Expense waiver/reimbursement 4 | 0.27% | 0.24% | 0.01% | 0.02% | 0.01% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $22,943 | $28,461 | $22,290 | $21,994 | $39,155 |
Portfolio turnover | 113% | 175% | 245% | 254% | 252% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value. |
3 | The net expense ratio is calculated without reduction for expense offset arrangements. The net expense ratios are 1.46%, 1.47%, 1.68%, 1.70% and 1.69% for the years ended October 31, 2012, 2011, 2010, 2009 and 2008, respectively, after taking into account these expense reductions. |
4 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. |
Year Ended October 31, |
Period
Ended 10/31/2008 1 |
||||
2012 | 2011 | 2010 | 2009 | ||
Net Asset Value, Beginning of Period | $17.91 | $18.15 | $16.14 | $16.06 | $21.34 |
Income From Investment Operations: | |||||
Net investment income | 0.18 2 | 0.16 2 | 0.15 2 | 0.18 2 | 0.15 2 |
Net realized and unrealized gain (loss) on investments and foreign currency transactions | 1.53 | (0.24) | 2.03 | 0.11 | (5.43) |
TOTAL FROM INVESTMENT OPERATIONS | 1.71 | (0.08) | 2.18 | 0.29 | (5.28) |
Less Distributions: | |||||
Distributions from net investment income | (0.16) | (0.16) | (0.17) | (0.21) | — |
Net Asset Value, End of Period | $19.46 | $17.91 | $18.15 | $16.14 | $16.06 |
Total Return 3 | 9.67% | (0.47)% | 13.55% | 1.97% | (24.74)% |
Ratios to Average Net Assets: | |||||
Net expenses | 0.98% 5 | 0.98% 5 | 0.95% 5 | 0.96% 5 | 0.96% 4,5 |
Net investment income | 0.93% | 0.85% | 0.89% | 1.22% | 0.93% 4 |
Expense waiver/reimbursement 6 | 0.08% | 0.02% | 0.01% | 0.03% | 0.02% 4 |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $117,123 | $118,716 | $168,884 | $211,470 | $75,775 |
Portfolio turnover | 113% | 175% | 245% | 254% | 252% 7 |
1 | Reflects operations for the period from December 31, 2007 (date of initial investment) to October 31, 2008. |
2 | Per share numbers have been calculated using the average shares method. |
3 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
4 | Computed on an annualized basis. |
5 | The net expense ratio is calculated without reduction for expense offset arrangements. The net expense ratios are 0.98%, 0.98%, 0.94%, 0.95% and 0.94% for the years ended October 31, 2012, 2011, 2010 and 2009 and for the period ended October 31, 2008, respectively, after taking into account these expense reductions. |
6 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. |
7 | Portfolio turnover is calculated at the Fund level. Percentage indicated was calculated for the year ended October 31, 2008. |
FEDERATED CAPITAL APPRECIATION FUND - A CLASS | |||||
ANNUAL EXPENSE RATIO: 1.39% | |||||
MAXIMUM FRONT-END SALES CHARGE: 5.50% | |||||
Year |
Hypothetical
Beginning Investment |
Hypothetical
Performance Earnings |
Investment
After Returns |
Hypothetical
Expenses |
Hypothetical
Ending Investment |
1 | $10,000.00 | $472.50 | $9,922.50 | $683.73 | $9,791.15 |
2 | $9,791.15 | $489.56 | $10,280.71 | $138.55 | $10,144.61 |
3 | $10,144.61 | $507.23 | $10,651.84 | $143.56 | $10,510.83 |
4 | $10,510.83 | $525.54 | $11,036.37 | $148.74 | $10,890.27 |
5 | $10,890.27 | $544.51 | $11,434.78 | $154.11 | $11,283.41 |
6 | $11,283.41 | $564.17 | $11,847.58 | $159.67 | $11,690.74 |
7 | $11,690.74 | $584.54 | $12,275.28 | $165.43 | $12,112.78 |
8 | $12,112.78 | $605.64 | $12,718.42 | $171.41 | $12,550.05 |
9 | $12,550.05 | $627.50 | $13,177.55 | $177.59 | $13,003.11 |
10 | $13,003.11 | $650.16 | $13,653.27 | $184.01 | $13,472.52 |
Cumulative | $5,571.35 | $2,126.80 |
FEDERATED CAPITAL APPRECIATION FUND - B CLASS | |||||
ANNUAL EXPENSE RATIO: 2.23% | |||||
MAXIMUM FRONT-END SALES CHARGE: NONE | |||||
Year |
Hypothetical
Beginning Investment |
Hypothetical
Performance Earnings |
Investment
After Returns |
Hypothetical
Expenses |
Hypothetical
Ending Investment |
1 | $10,000.00 | $500.00 | $10,500.00 | $226.09 | $10,277.00 |
2 | $10,277.00 | $513.85 | $10,790.85 | $232.35 | $10,561.67 |
3 | $10,561.67 | $528.08 | $11,089.75 | $238.79 | $10,854.23 |
4 | $10,854.23 | $542.71 | $11,396.94 | $245.40 | $11,154.89 |
5 | $11,154.89 | $557.74 | $11,712.63 | $252.20 | $11,463.88 |
6 | $11,463.88 | $573.19 | $12,037.07 | $259.19 | $11,781.43 |
7 | $11,781.43 | $589.07 | $12,370.50 | $266.36 | $12,107.78 |
8 | $12,107.78 | $605.39 | $12,713.17 | $273.74 | $12,443.17 |
Converts from Class B to Class A | Annual Expense Ratio: 1.39% | ||||
9 | $12,443.17 | $622.16 | $13,065.33 | $176.08 | $12,892.37 |
10 | $12,892.37 | $644.62 | $13,536.99 | $182.44 | $13,357.78 |
Cumulative | $5,676.81 | $2,352.64 |
FEDERATED CAPITAL APPRECIATION FUND - C CLASS | |||||
ANNUAL EXPENSE RATIO: 2.12% | |||||
MAXIMUM FRONT-END SALES CHARGE: NONE | |||||
Year |
Hypothetical
Beginning Investment |
Hypothetical
Performance Earnings |
Investment
After Returns |
Hypothetical
Expenses |
Hypothetical
Ending Investment |
1 | $10,000.00 | $500.00 | $10,500.00 | $215.05 | $10,288.00 |
2 | $10,288.00 | $514.40 | $10,802.40 | $221.25 | $10,584.29 |
3 | $10,584.29 | $529.21 | $11,113.50 | $227.62 | $10,889.12 |
4 | $10,889.12 | $544.46 | $11,433.58 | $234.17 | $11,202.73 |
5 | $11,202.73 | $560.14 | $11,762.87 | $240.92 | $11,525.37 |
6 | $11,525.37 | $576.27 | $12,101.64 | $247.86 | $11,857.30 |
7 | $11,857.30 | $592.87 | $12,450.17 | $254.99 | $12,198.79 |
8 | $12,198.79 | $609.94 | $12,808.73 | $262.34 | $12,550.12 |
9 | $12,550.12 | $627.51 | $13,177.63 | $269.89 | $12,911.56 |
10 | $12,911.56 | $645.58 | $13,557.14 | $277.67 | $13,283.41 |
Cumulative | $5,700.38 | $2,451.76 |
FEDERATED CAPITAL APPRECIATION FUND - R CLASS | |||||
ANNUAL EXPENSE RATIO: 1.74% | |||||
MAXIMUM FRONT-END SALES CHARGE: NONE | |||||
Year |
Hypothetical
Beginning Investment |
Hypothetical
Performance Earnings |
Investment
After Returns |
Hypothetical
Expenses |
Hypothetical
Ending Investment |
1 | $10,000.00 | $500.00 | $10,500.00 | $176.84 | $10,326.00 |
2 | $10,326.00 | $516.30 | $10,842.30 | $182.60 | $10,662.63 |
3 | $10,662.63 | $533.13 | $11,195.76 | $188.55 | $11,010.23 |
4 | $11,010.23 | $550.51 | $11,560.74 | $194.70 | $11,369.16 |
5 | $11,369.16 | $568.46 | $11,937.62 | $201.05 | $11,739.79 |
6 | $11,739.79 | $586.99 | $12,326.78 | $207.60 | $12,122.51 |
7 | $12,122.51 | $606.13 | $12,728.64 | $214.37 | $12,517.70 |
8 | $12,517.70 | $625.89 | $13,143.59 | $221.36 | $12,925.78 |
9 | $12,925.78 | $646.29 | $13,572.07 | $228.57 | $13,347.16 |
10 | $13,347.16 | $667.36 | $14,014.52 | $236.03 | $13,782.28 |
Cumulative | $5,801.06 | $2,051.67 |
FEDERATED CAPITAL APPRECIATION FUND - IS CLASS | |||||
ANNUAL EXPENSE RATIO: 1.07% | |||||
MAXIMUM FRONT-END SALES CHARGE: NONE | |||||
Year |
Hypothetical
Beginning Investment |
Hypothetical
Performance Earnings |
Investment
After Returns |
Hypothetical
Expenses |
Hypothetical
Ending Investment |
1 | $10,000.00 | $500.00 | $10,500.00 | $109.10 | $10,393.00 |
2 | $10,393.00 | $519.65 | $10,912.65 | $113.39 | $10,801.44 |
3 | $10,801.44 | $540.07 | $11,341.51 | $117.85 | $11,225.94 |
4 | $11,225.94 | $561.30 | $11,787.24 | $122.48 | $11,667.12 |
5 | $11,667.12 | $583.36 | $12,250.48 | $127.29 | $12,125.64 |
6 | $12,125.64 | $606.28 | $12,731.92 | $132.29 | $12,602.18 |
7 | $12,602.18 | $630.11 | $13,232.29 | $137.49 | $13,097.45 |
8 | $13,097.45 | $654.87 | $13,752.32 | $142.90 | $13,612.18 |
9 | $13,612.18 | $680.61 | $14,292.79 | $148.51 | $14,147.14 |
10 | $14,147.14 | $707.36 | $14,854.50 | $154.35 | $14,703.12 |
Cumulative | $5,983.61 | $1,305.65 |
Share Class | Ticker |
A | KAUAX |
B | KAUBX |
C | KAUCX |
Shareholder Fees (fees paid directly from your investment) | A | B | C |
Maximum Sales Charge (Load) Imposed on
Purchases (as a percentage of
offering price)
|
5.50% | None | None |
Maximum Deferred Sales Charge (Load)
(as a percentage of original
purchase price or redemption proceeds,
as applicable)
|
0.00% | 5.50% | 1.00% |
Maximum Sales Charge (Load) Imposed on
Reinvested Dividends
(and other Distributions) (as a
percentage of offering price)
|
None | None | None |
Redemption Fee (as a percentage of
amount redeemed,
if applicable)
|
None | None | None |
Exchange Fee
|
None | None | None |
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) | |||
Management Fee
|
1.43% | 1.43% | 1.43% |
Distribution (12b-1) Fee
|
0.25% | 0.75% | 0.75% |
Other
Expenses
|
0.55% | 0.55% | 0.55% |
Acquired Fund Fees
and Expenses
|
0.01% | 0.01% | 0.01% |
Total Annual Fund
Operating Expenses
|
2.24% | 2.74% | 2.74% |
Fee Waivers
and/or Expense Reimbursements
1
|
0.28% | 0.23% | 0.23% |
Total Annual Fund Operating Expenses
After Fee Waivers
and/or
Expense Reimbursements
|
1.96% | 2.51% | 2.51% |
1 | Pursuant to the settlement of certain litigation, the Adviser has agreed for a period continuing until June 30, 2022, to waive its investment advisory fee so that such fee will not exceed 1.275%. Also, pursuant to the settlement agreement, effective July 1, 2012 and continuing until June 30, 2022, the Adviser has agreed to further waive the advisory fee by an additional 0.02%, 0.04%, 0.06% or 0.07% if the Fund's net assets exceed eight, nine, ten or twelve billion dollars, respectively. In addition, as a separate matter, the Adviser and its affiliates have voluntarily agreed to waive their fees and/or reimburse expenses so that the total annual fund operating expenses (excluding Acquired Fund Fees and Expenses and Dividends and Other Expenses Related to Short Sales) paid by the Fund's A, B and C classes (after the voluntary waivers and/or reimbursements) will not exceed 1.95%, 2.50% and 2.50% (the “Fee Limit”), respectively, up to but not including the later of (the “Termination Date”): (a) January 1, 2014; or (b) the date of the Fund's next effective Prospectus (the “Additional Arrangements”). While the Adviser and its affiliates currently do not anticipate terminating or increasing these Additional Arrangements prior to the Termination Date, these Additional Arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the agreement of the Fund's Board of Trustees. |
■ | Stock Market Risk. The value of equity securities in the Fund's portfolio will fluctuate and, as a result, the Fund's Share price may decline suddenly or over a sustained period of time. |
■ | Risk Related to Investing for Growth. Due to their relatively high valuations, growth stocks are typically more volatile than value stocks. For instance, the price of a growth stock may experience a larger decline on a forecast of lower earnings, a negative fundamental development, or an adverse market development. Further, growth stocks may not pay dividends or may pay lower dividends than value stocks. This means they depend more on price changes for returns and may be more adversely affected in a down market compared to value stocks that pay higher dividends. |
■ | Risk Related to Company Size. Because the smaller companies in which the Fund may invest may have unproven track records, a limited product or service base and limited access to capital, they may be more likely to fail than larger companies. |
■ | Sector Risk. Because the Fund may allocate relatively more assets to certain industry sectors than others, the Fund's performance may be more susceptible to any developments, which affect those sectors emphasized by the Fund. |
■ | Liquidity Risk. The equity securities in which the Fund invests may be less readily marketable and may be subject to greater fluctuation in price than other securities. |
■ | Risk of Foreign Investing. Because the Fund invests in securities issued by foreign companies, the Fund's Share price may be more affected by foreign economic and political conditions, taxation policies and accounting and auditing standards than could otherwise be the case. |
■ | Risk of Investing in ADRs and Domestically Traded Securities of Foreign Issuers. Because the Fund may invest in ADRs and other domestically traded securities of foreign companies, the Fund's Share price may be more affected by foreign economic and political conditions, taxation policies and accounting and auditing standards than would otherwise be the case. |
■ | Risk of Investing in Emerging Market Countries. Securities issued or traded in emerging markets generally entail greater risks than securities issued or traded in developed markets. Emerging market countries may have relatively unstable governments and may present the risk of nationalization of businesses, expropriation, confiscatory taxation or, in certain instances, reversion to closed market, centrally planned economies. |
■ | Custodial Services and Related Investment Costs. Custodial services and other costs relating to investment in international securities markets generally are more expensive due to differing settlement and clearance procedures than those of the United States. The inability of the Fund to make intended securities purchases due to settlement problems could cause the Fund to miss attractive investment opportunities. In addition, security settlement and clearance procedures in some emerging market countries may not fully protect the Fund against loss of its assets. |
■ | Currency Risk. Exchange rates for currencies fluctuate daily. Foreign securities are normally denominated and traded in foreign currencies. As a result, the value of the Fund's foreign investments and the value of the Shares may be affected favorably or unfavorably by changes in currency exchange rates relative to the U.S. dollar. |
■ | Eurozone Related Risk. A number of countries in the European Union (EU) have experienced, and may continue to experience, severe economic and financial difficulties. Additional EU member countries may also fall subject to such difficulties. These events could negatively affect the value and liquidity of the Fund's investments in euro-denominated securities and derivatives contracts, securities of issuers located in the EU or with significant exposure to EU issuers or countries. |
■ | Risk of Investing in Derivative Contracts and Hybrid Instruments. Derivative contracts and hybrid instruments involve risks different from, or possibly greater than, risks associated with investing directly in securities and other traditional investments. Specific risk issues related to the use of such contracts and instruments include valuation and tax issues, increased potential for losses and/or costs to the Fund, and a potential reduction in gains to the Fund. Each of these issues is described in greater detail in this Prospectus. Derivative contracts and hybrid instruments may involve other risks described in this Prospectus or the Fund's Statement of Additional Information (SAI), such as stock market, credit, currency, liquidity and leverage risks. |
■ | Credit Risk. Credit risk includes the possibility that a party to a transaction (such as a derivative transaction) involving the Fund will fail to meet its obligations. This could cause the Fund to lose the benefit of the transaction or prevent the Fund from selling or buying other securities to implement its investment strategy. |
■ | Leverage Risk. Leverage risk is created when an investment (such as a derivative transaction) exposes the Fund to a level of risk that exceeds the amount invested. Changes in the value of such an investment magnify the Fund's risk of loss and potential for gain. |
■ | Interest Rate Risk. Prices of fixed-income securities rise and fall in response to changes in the interest rate paid by similar securities. Generally, when interest rates rise, prices of fixed-income securities fall. |
■ | Exchange-Traded Funds Risk. An investment in an exchange-traded fund (ETF) generally presents the same primary risks as an investment in a conventional fund (i.e., one that is not exchange traded) that has the same investment objectives, strategies and policies. The price of an ETF can fluctuate up or down, and the Fund could lose money investing in an ETF if the prices of the securities owned by the ETF go down. |
■ | Technology Risk. Proprietary and third-party data and systems are utilized to support decision making for the Fund. Data imprecision, software or other technology malfunctions, programming inaccuracies and similar circumstances may impair the performance of these systems, which may negatively affect Fund performance. |
1 Year | 5 Years | 10 Years | |
A: | |||
Return Before Taxes | (18.37)% | (2.52)% | 3.83% |
Return After Taxes on Distributions | (18.61)% | (2.94)% | 3.22% |
Return After Taxes on Distributions and Sale of Fund Shares | (11.61)% | (2.13)% | 3.30% |
B: | |||
Return Before Taxes | (18.81)% | (2.28)% | 3.97% |
C: | |||
Return Before Taxes | (15.03)% | (1.95)% | 3.86% |
Russell Mid-Cap Growth Index
1
(reflects no deduction for fees, expenses or taxes) |
(1.65)% | 2.44% | 5.29% |
Lipper Multi-Cap Growth Funds Category 2 | (3.15)% | 0.97% | 3.09% |
1 | Russell Mid-Cap Growth Index measures the performance of those Russell Mid-Cap companies with higher price-to-book ratios and higher forecasted growth values. |
2 | Lipper figures represent the average of the total returns reported by all the mutual funds designated by Lipper, Inc. as falling into the respective category indicated. They do not reflect sales charges. |
■ | the growth prospects of existing products and new product development; |
■ | the economic outlook of the industry; |
■ | the price of the security and its estimated fundamental value; and |
■ | relevant market, economic and political environments. |
■ | are profitable and leaders in the industry; |
■ | have distinct products and services which address substantial markets; |
■ | can grow annual earnings by at least 20% for the next three to five years; and |
■ | have superior proven management and solid balance sheets. |
■ | obtain premiums from the sale of derivative contracts; |
■ | realize gains from trading a derivative contract; or |
■ | hedge against potential losses. |
■ | Equity securities listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market. |
■ | Fixed-income securities acquired with remaining maturities greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Board of Trustees (“Board”). |
■ | Fixed-income securities acquired with remaining maturities of 60 days or less are valued at their cost (adjusted for the accretion of any discount or amortization of any premium). |
■ | Derivative contracts listed on exchanges are valued at their reported settlement or closing price, except that options are valued at the mean of closing bid and asked quotations. |
■ | Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Board. |
■ | With respect to securities traded principally in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures contracts; |
■ | Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; and |
■ | Announcements concerning matters such as acquisitions, recapitalizations or litigation developments or a natural disaster affecting the issuer's operations or regulatory changes or market developments affecting the issuer's industry. |
Minimum
Initial/Subsequent Investment Amounts 1 |
Maximum Sales Charges | ||
Shares Offered |
Front-End
Sales Charge 2 |
Contingent
Deferred Sales Charge 3 |
|
A | $1,500/$100 | 5.50% | 0.00% |
B | $1,500/$100 | None | 5.50% |
C | $1,500/$100 | None | 1.00% |
1 | The minimum initial and subsequent investment amounts for Individual Retirement Accounts (IRAs) are generally $250 and $100, respectively. There is no minimum initial or subsequent investment amount required for employer-sponsored retirement plans; however, such accounts remain subject to the Fund's policy on “Accounts with Low Balances” as discussed later in this Prospectus. Please see “By Systematic Investment Program” for applicable minimum investment. Financial intermediaries may impose higher or lower minimum investment requirements on their customers than those imposed by the Fund. |
To maximize your return and minimize the sales charges and marketing fees, purchases of the B class are generally limited to $100,000 and purchases of the C class are generally limited to $1,000,000. Purchases equal to or in excess of these limits may be made in the A class. If your Shares are held on the books of the Fund in the name of a financial intermediary, you may be subject to rules of your financial intermediary that differ from those of the Fund. See “Purchase Restrictions on B Class and C Class” below. After the B class has been held for eight years from the date of purchase, they will automatically convert to the A class. This conversion is a non-taxable event. | |
2 | Front-End Sales Charge is expressed as a percentage of public offering price. See “Sales Charge When You Purchase.” |
3 | See “Sales Charge When You Redeem.” |
A: | ||
Purchase Amount |
Sales Charge
as a Percentage of Public Offering Price |
Sales Charge
as a Percentage of NAV |
Less than $50,000 | 5.50% | 5.82% |
$50,000 but less than $100,000 | 4.50% | 4.71% |
$100,000 but less than $250,000 | 3.75% | 3.90% |
$250,000 but less than $500,000 | 2.50% | 2.56% |
$500,000 but less than $1 million | 2.00% | 2.04% |
$1 million or greater 1 | 0.00% | 0.00% |
1 | A contingent deferred sales charge (CDSC) of 0.75% of the redemption amount applies to Shares originally purchased in an amount of $1 million or more and redeemed up to 24 months after purchase under certain investment programs where a financial intermediary received an advance payment on the transaction. CDSC exceptions may apply, See “Sales Charge When You Redeem.” |
■ | Purchasing the A class in greater quantities to reduce the applicable sales charge; |
■ | Combining concurrent purchases of and/or current investments in the A class, B class, C class, F class and R class of any Federated fund made or held by Qualifying Accounts; the purchase amount used in determining the sales charge on your additional Share purchase will be calculated by multiplying the respective maximum public offering price times the number of the A class, B class, C class, F class and R class shares of any Federated fund currently held in Qualifying Accounts and adding the dollar amount of your current purchase; or |
■ | Signing a letter of intent to purchase a qualifying amount of the A class within 13 months. (Call your financial intermediary or the Fund for more information.) The Fund's custodian will hold Shares in escrow equal to the maximum applicable sales charge. If you complete the Letter of Intent, the Custodian will release the Shares in escrow to your account. If you do not fulfill the Letter of Intent, the Custodian will redeem the appropriate amount from the Shares held in escrow to pay the sales charges that were not applied to your purchases. |
■ | within 120 days of redeeming Shares of an equal or greater amount; |
■ | through a program offered by a Financial Intermediary that provides for the purchase of Shares without imposition of a sales charge (for example, a wrap account, self-directed brokerage account, retirement, or other fee-based program offered by the Financial Intermediary) and where the Financial Intermediary has agreed with the Distributor not to receive a dealer reallowance on purchases under such program; |
■ | with reinvested dividends or capital gains; |
■ | as a shareholder that originally became a shareholder of a Federated fund pursuant to the terms of an agreement and plan of reorganization which permits shareholders to acquire Shares at NAV; |
■ | as a Federated Life Member (Federated shareholders who originally were issued shares through the “Liberty Account,” which was an account for the Liberty Family of Funds on February 28, 1987, or who invested through an affinity group prior to August 1, 1987, into the Liberty Account) (A class only); |
■ | as a Trustee, employee or former employee of the Fund, the Adviser, the Distributor and their affiliates, an employee of any financial intermediary that sells Shares according to a sales agreement with the Distributor, an immediate family member of these individuals or a trust, pension or profit-sharing plan for these individuals; or |
■ | pursuant to the exchange privilege. |
■ | Shares that are not subject to a CDSC; and |
■ | Shares held the longest. (To determine the number of years your Shares have been held, include the time you held shares of other Federated funds that have been exchanged for Shares of this Fund.) |
■ | following the death of the last surviving shareholder on the account or the post-purchase disability of all registered shareholders, as defined in Section 72(m)(7) of the Internal Revenue Code of 1986 (the beneficiary on an account with a Transfer on Death registration is deemed the last surviving shareholder on the account); |
■ | representing minimum required distributions from an IRA or other retirement plan to a shareholder who has attained the age of 70 1 ∕ 2 ; |
■ | purchased by Trustees, employees of the Fund, the Adviser, the Distributor and their affiliates, by employees of a financial intermediary that sells Shares according to a sales agreement with the Distributor, by the immediate family members of the above persons and by trusts, pension or profit-sharing plans for the above persons; |
■ | purchased through a program offered by a Financial Intermediary that provides for the purchase of Shares without imposition of a sales charge (for example, a wrap account, self-directed brokerage account, retirement or other fee-based program offered by the Financial Intermediary) and where the Financial Intermediary has agreed with the Distributor not to receive an advance commission on purchases under such program; |
■ | purchased with reinvested dividends or capital gains; |
■ | redeemed by the Fund when it closes an account for not meeting the minimum balance requirements |
■ | purchased pursuant to the exchange privilege, if the Shares were held for the applicable CDSC holding period (the holding period on the Shares purchased in the exchange will include the holding period of the Shares sold in the exchange); |
■ | purchased in the amount of $1 million or more and redeemed within 24 months of purchase if the Shares were originally purchased through a program offered by a Financial Intermediary that provides for the purchase of Shares without imposition of a sales charge (for example, a wrap account, self-directed brokerage account, retirement, or other fee-based program offered by the Financial Intermediary) and where the Financial Intermediary has agreed with the principal underwriter not to receive an advanced commission on purchases under such program; or |
■ | which are qualifying redemptions of the B class under a Systematic Withdrawal Program. |
A: | |
Purchase Amount |
Dealer Reallowance
as a Percentage of Public Offering Price |
Less than $50,000 | 5.00% |
$50,000 but less than $100,000 | 4.00% |
$100,000 but less than $250,000 | 3.25% |
$250,000 but less than $500,000 | 2.25% |
$500,000 but less than $1 million | 1.80% |
$1 million or greater | 0.00% |
A (for purchases over $1 million): | |
Purchase Amount |
Advance Commission
as a Percentage of Public Offering Price |
First $1 million - $5 million | 0.75% |
Next $5 million - $20 million | 0.50% |
Over $20 million | 0.25% |
C: | |
Advance Commission
as a Percentage of Public Offering Price |
|
All Purchase Amounts | 1.00% |
■ | Establish an account with the financial intermediary; and |
■ | Submit your purchase order to the financial intermediary before the end of regular trading on the NYSE (normally 4:00 p.m. Eastern time). |
■ | Establish your account with the Fund by submitting a completed New Account Form; and |
■ | Send your payment to the Fund by Federal Reserve wire or check. |
■ | ensure that the account registrations are identical; |
■ | meet any applicable minimum initial investment requirements; and |
■ | receive a prospectus for the fund into which you wish to exchange. |
■ | through a financial intermediary if you purchased Shares through a financial intermediary; or |
■ | directly from the Fund if you purchased Shares directly from the Fund. |
■ | Fund name and Share class, account number and account registration; |
■ | amount to be redeemed or exchanged; |
■ | signatures of all shareholders exactly as registered; and |
■ | if exchanging , the Fund name and Share class, account number and account registration into which you are exchanging. |
■ | your redemption will be sent to an address other than the address of record; |
■ | your redemption will be sent to an address of record that was changed within the last 30 days; |
■ | a redemption is payable to someone other than the shareholder(s) of record; or |
■ | transferring into another fund with a different shareholder registration. |
■ | An electronic transfer to your account at a financial institution that is an ACH member; or |
■ | Wire payment to your account at a domestic commercial bank that is a Federal Reserve System member. |
■ | to allow your purchase to clear (as discussed below); |
■ | during periods of market volatility; |
■ | when a shareholder's trade activity or amount adversely impacts the Fund's ability to manage its assets; or |
■ | during any period when the Federal Reserve wire or applicable Federal Reserve banks are closed, other than customary weekend and holiday closings. |
■ | when the NYSE is closed, other than customary weekend and holiday closings; |
■ | when trading on the NYSE is restricted, as determined by the SEC; or |
■ | in which an emergency exists, as determined by the SEC, so that disposal of the Fund's investments or determination of its NAV is not reasonably practicable. |
■ | ensure that the account registrations are identical; |
■ | meet any applicable minimum initial investment requirements; and |
■ | receive a prospectus for the fund into which you wish to exchange. |
■ | you redeem 12% or less of your account value in a single year; |
■ | you reinvest all dividends and capital gains distributions; |
■ | your account has at least a $10,000 balance when you establish the SWP. (You cannot aggregate multiple B class accounts to meet this minimum balance.); and |
■ | for all B class accounts established on or after August 2, 2010, the minimum SWP redemption amount is $50 per transaction, per fund, including transactions that qualify for a CDSC waiver as outlined in this Prospectus. |
Year Ended October 31 | 2012 | 2011 | 2010 | 2009 | 2008 |
Net Asset Value, Beginning of Period | $4.92 | $5.27 | $4.22 | $3.80 | $7.03 |
Income From Investment Operations: | |||||
Net investment income (loss) | (0.05) 1 | (0.05) 1 | 0.02 1 | (0.00) 1,2 | (0.03) 1 |
Net realized and unrealized gain (loss) on investments, written options, futures contracts, short sales and foreign currency transactions | 0.50 | (0.27) | 1.04 | 0.42 | (2.57) |
TOTAL FROM INVESTMENT OPERATIONS | 0.45 | (0.32) | 1.06 | 0.42 | (2.60) |
Less Distributions: | |||||
Distributions from net investment income | — | (0.03) | (0.01) | — | — |
Distributions from net realized gain on investments and foreign currency transactions | (0.09) | (0.00) 2 | — | — | (0.63) |
TOTAL DISTRIBUTIONS | (0.09) | (0.03) | (0.01) | — | (0.63) |
Net Asset Value, End of Period | $5.28 | $4.92 | $5.27 | $4.22 | $3.80 |
Total Return 3 | 9.45% | (6.07)% | 25.11% | 11.05% | (40.38)% |
Ratios to Average Net Assets: | |||||
Net expenses | 1.95% 4 | 1.95% 4 | 1.95% 4 | 1.95% 4 | 1.95% 4 |
Net expenses excluding dividends and other expenses related to short sales | 1.95% 4 | 1.95% 4 | 1.95% 4 | 1.95% 4 | 1.95% 4 |
Net investment income (loss) | (0.97)% | (0.99)% | 0.39% | (0.12)% | (0.56)% |
Expense waiver/reimbursement 5 | 0.28% | 0.29% | 0.28% | 0.27% | 0.23% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $1,898,465 | $1,999,940 | $2,469,094 | $2,153,443 | $2,158,140 |
Portfolio turnover | 61% | 64% | 54% | 91% | 78% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Represents less than $0.01. |
3 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
4 | The net expense ratio is calculated without reduction for fees paid indirectly for expense offset arrangements. The net expense ratios are 1.95%, 1.95%, 1.95%, 1.95% and 1.95% after taking into account these expense reductions for the years ended October 31, 2012, 2011, 2010, 2009 and 2008, respectively. The net expense ratios excluding dividends and other expenses related to short sales are also calculated without reduction for these fees paid indirectly for expense offset arrangements. |
5 | This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above. |
Year Ended October 31 | 2012 | 2011 | 2010 | 2009 | 2008 |
Net Asset Value, Beginning of Period | $4.64 | $4.96 | $4.00 | $3.62 | $6.75 |
Income From Investment Operations: | |||||
Net investment income (loss) | (0.07) 1 | (0.08) 1 | (0.01) 1 | (0.02) 1 | (0.06) 1 |
Net realized and unrealized gain (loss) on investments, written options, futures contracts, short sales and foreign currency transactions | 0.46 | (0.24) | 0.97 | 0.40 | (2.44) |
TOTAL FROM INVESTMENT OPERATIONS | 0.39 | (0.32) | 0.96 | 0.38 | (2.50) |
Less Distributions: | |||||
Distributions from net investment income | — | (0.00) 2 | — | — | — |
Distributions from net realized gain on investments and foreign currency transactions | (0.09) | (0.00) 2 | — | — | (0.63) |
TOTAL DISTRIBUTIONS | (0.09) | (0.00) 2 | — | — | (0.63) |
Net Asset Value, End of Period | $4.94 | $4.64 | $4.96 | $4.00 | $3.62 |
Total Return 3 | 8.72% | (6.40)% | 24.00% | 10.50% | (40.60)% |
Ratios to Average Net Assets: | |||||
Net expenses | 2.50% 4 | 2.50% 4 | 2.50% 4 | 2.50% 4 | 2.50% 4 |
Net expenses excluding dividends and other expenses related to short sales | 2.50% 4 | 2.50% 4 | 2.50% 4 | 2.50% 4 | 2.50% 4 |
Net investment income (loss) | (1.52)% | (1.53)% | (0.27)% | (0.67)% | (1.11)% |
Expense waiver/reimbursement 5 | 0.23% | 0.24% | 0.23% | 0.22% | 0.19% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $184,726 | $301,469 | $473,934 | $562,618 | $651,474 |
Portfolio turnover | 61% | 64% | 54% | 91% | 78% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Represents less than $0.01. |
3 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
4 | The net expense ratio is calculated without reduction for fees paid indirectly for expense offset arrangements. The net expense ratios are 2.50%, 2.50%, 2.50%, 2.50% and 2.50% after taking into account these expense reductions for the years ended October 31, 2012, 2011, 2010, 2009 and 2008, respectively. The net expense ratios excluding dividends and other expenses related to short sales are also calculated without reduction for these fees paid indirectly for expense offset arrangements. |
5 | This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above. |
Year Ended October 31 | 2012 | 2011 | 2010 | 2009 | 2008 |
Net Asset Value, Beginning of Period | $4.64 | $4.97 | $4.00 | $3.62 | $6.75 |
Income From Investment Operations: | |||||
Net investment income (loss) | (0.07) 1 | (0.08) 1 | (0.01) 1 | (0.02) 1 | (0.06) 1 |
Net realized and unrealized gain (loss) on investments, written options, futures contracts, short sales and foreign currency transactions | 0.46 | (0.24) | 0.98 | 0.40 | (2.44) |
TOTAL FROM INVESTMENT OPERATIONS | 0.39 | (0.32) | 0.97 | 0.38 | (2.50) |
Less Distributions: | |||||
Distributions from net investment income | — | (0.01) | — | — | — |
Distributions from net realized gain on investments and foreign currency transactions | (0.09) | (0.00) 2 | — | — | (0.63) |
TOTAL DISTRIBUTIONS | (0.09) | (0.01) | — | — | (0.63) |
Net Asset Value, End of Period | $4.94 | $4.64 | $4.97 | $4.00 | $3.62 |
Total Return 3 | 8.72% | (6.53)% | 24.25% | 10.50% | (40.60)% |
Ratios to Average Net Assets: | |||||
Net expenses | 2.50% 4 | 2.50% 4 | 2.50% 4 | 2.50% 4 | 2.50% 4 |
Net expenses excluding dividends and other expenses related to short sales | 2.50% 4 | 2.50% 4 | 2.50% 4 | 2.50% 4 | 2.50% 4 |
Net investment income (loss) | (1.52)% | (1.53)% | (0.19)% | (0.67)% | (1.11)% |
Expense waiver/reimbursement 5 | 0.23% | 0.24% | 0.23% | 0.22% | 0.19% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $392,886 | $494,457 | $680,501 | $656,086 | $707,980 |
Portfolio turnover | 61% | 64% | 54% | 91% | 78% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Represents less than $0.01. |
3 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
4 | The net expense ratio is calculated without reduction for fees paid indirectly for expense offset arrangements. The net expense ratios are 2.50%, 2.50%, 2.50%, 2.50% and 2.50% after taking into account these expense reductions for the years ended October 31, 2012, 2011, 2010, 2009 and 2008, respectively. The net expense ratios excluding dividends and other expenses related to short sales are also calculated without reduction for these fees paid indirectly for expense offset arrangements. |
5 | This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above. |
FEDERATED KAUFMANN FUND - A CLASS | |||||
ANNUAL EXPENSE RATIO: 2.24% | |||||
MAXIMUM FRONT-END SALES CHARGE: 5.50% | |||||
Year |
Hypothetical
Beginning Investment |
Hypothetical
Performance Earnings |
Investment
After Returns |
Hypothetical
Expenses |
Hypothetical
Ending Investment |
1 | $10,000.00 | $472.50 | $9,922.50 | $764.60 | $9,710.82 |
2 | $9,710.82 | $485.54 | $10,196.36 | $220.52 | $9,978.84 |
3 | $9,978.84 | $498.94 | $10,477.78 | $226.61 | $10,254.26 |
4 | $10,254.26 | $512.71 | $10,766.97 | $232.87 | $10,537.28 |
5 | $10,537.28 | $526.86 | $11,064.14 | $239.29 | $10,828.11 |
6 | $10,828.11 | $541.41 | $11,369.52 | $245.90 | $11,126.97 |
7 | $11,126.97 | $556.35 | $11,683.32 | $252.68 | $11,434.07 |
8 | $11,434.07 | $571.70 | $12,005.77 | $259.66 | $11,749.65 |
9 | $11,749.65 | $587.48 | $12,337.13 | $266.82 | $12,073.94 |
10 | $12,073.94 | $603.70 | $12,677.64 | $274.19 | $12,407.18 |
Cumulative | $5,357.19 | $2,983.14 |
FEDERATED KAUFMANN FUND - B CLASS | |||||
ANNUAL EXPENSE RATIO: 2.74% | |||||
MAXIMUM FRONT-END SALES CHARGE: NONE | |||||
Year |
Hypothetical
Beginning Investment |
Hypothetical
Performance Earnings |
Investment
After Returns |
Hypothetical
Expenses |
Hypothetical
Ending Investment |
1 | $10,000.00 | $500.00 | $10,500.00 | $277.10 | $10,226.00 |
2 | $10,226.00 | $511.30 | $10,737.30 | $283.36 | $10,457.11 |
3 | $10,457.11 | $522.86 | $10,979.97 | $289.76 | $10,693.44 |
4 | $10,693.44 | $534.67 | $11,228.11 | $296.31 | $10,935.11 |
5 | $10,935.11 | $546.76 | $11,481.87 | $303.01 | $11,182.24 |
6 | $11,182.24 | $559.11 | $11,741.35 | $309.86 | $11,434.96 |
7 | $11,434.96 | $571.75 | $12,006.71 | $316.86 | $11,693.39 |
8 | $11,693.39 | $584.67 | $12,278.06 | $324.02 | $11,957.66 |
Converts from Class B to Class A | Annual Expense Ratio: 2.24% | ||||
9 | $11,957.66 | $597.88 | $12,555.54 | $271.55 | $12,287.69 |
10 | $12,287.69 | $614.38 | $12,902.07 | $279.04 | $12,626.83 |
Cumulative | $5,543.38 | $2,950.87 |
FEDERATED KAUFMANN FUND - C CLASS | |||||
ANNUAL EXPENSE RATIO: 2.74% | |||||
MAXIMUM FRONT-END SALES CHARGE: NONE | |||||
Year |
Hypothetical
Beginning Investment |
Hypothetical
Performance Earnings |
Investment
After Returns |
Hypothetical
Expenses |
Hypothetical
Ending Investment |
1 | $10,000.00 | $500.00 | $10,500.00 | $277.10 | $10,226.00 |
2 | $10,226.00 | $511.30 | $10,737.30 | $283.36 | $10,457.11 |
3 | $10,457.11 | $522.86 | $10,979.97 | $289.76 | $10,693.44 |
4 | $10,693.44 | $534.67 | $11,228.11 | $296.31 | $10,935.11 |
5 | $10,935.11 | $546.76 | $11,481.87 | $303.01 | $11,182.24 |
6 | $11,182.24 | $559.11 | $11,741.35 | $309.86 | $11,434.96 |
7 | $11,434.96 | $571.75 | $12,006.71 | $316.86 | $11,693.39 |
8 | $11,693.39 | $584.67 | $12,278.06 | $324.02 | $11,957.66 |
9 | $11,957.66 | $597.88 | $12,555.54 | $331.34 | $12,227.90 |
10 | $12,227.90 | $611.40 | $12,839.30 | $338.83 | $12,504.25 |
Cumulative | $5,540.40 | $3,070.45 |
Share Class | Ticker |
R | KAUFX |
1 | Pursuant to the settlement of certain litigation, the Adviser has agreed for a period continuing until June 30, 2022, to waive its investment advisory fee so that such fee will not exceed 1.275%. Also, pursuant to the settlement agreement, effective July 1, 2012 and continuing until June 30, 2022, the Adviser has agreed to further waive the advisory fee by an additional 0.02%, 0.04%, 0.06% or 0.07% if the Fund's net assets exceed eight, nine, ten or twelve billion dollars, respectively. In addition, as a separate matter, the Adviser and its affiliates have voluntarily agreed to waive their fees and/or reimburse expenses so that the total annual fund operating expenses (excluding Acquired Fund Fees and Expenses and Dividends and Expenses Related to Short Sales) paid by the Fund's R class (after the voluntary waivers and/or reimbursements) will not exceed 1.95% (the “Fee Limit”), up to but not including the later of (the “Termination Date”): (a) January 1, 2014; or (b) the date of the Fund's next effective Prospectus (the “Additional Arrangements”). While the Adviser and its affiliates currently do not anticipate terminating or increasing these Additional Arrangements prior to the “Termination Date,” these Additional Arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the agreement of the Fund's Board of Trustees. |
Share Class | 1 Year | 3 Years | 5 Years | 10 Years |
R: | ||||
Expenses assuming redemption | $271 | $793 | $1,341 | $2,836 |
Expenses assuming no redemption | $251 | $773 | $1,321 | $2,816 |
■ | Stock Market Risk. The value of equity securities in the Fund's portfolio will fluctuate and, as a result, the Fund's Share price may decline suddenly or over a sustained period of time. |
■ | Risk Related to Investing for Growth. Due to their relatively high valuations, growth stocks are typically more volatile than value stocks. For instance, the price of a growth stock may experience a larger decline on a forecast of lower earnings, a negative fundamental development, or an adverse market development. Further, growth stocks may not pay dividends or may pay lower dividends than value stocks. This means they depend more on price changes for returns and may be more adversely affected in a down market compared to value stocks that pay higher dividends. |
■ | Risk Related to Company Size. Because the smaller companies in which the Fund may invest may have unproven track records, a limited product or service base and limited access to capital, they may be more likely to fail than larger companies. |
■ | Sector Risk. Because the Fund may allocate relatively more assets to certain industry sectors than others, the Fund's performance may be more susceptible to any developments, which affect those sectors emphasized by the Fund. |
■ | Liquidity Risk. The equity securities in which the Fund invests may be less readily marketable and may be subject to greater fluctuation in price than other securities. |
■ | Risk of Foreign Investing. Because the Fund invests in securities issued by foreign companies, the Fund's Share price may be more affected by foreign economic and political conditions, taxation policies and accounting and auditing standards than could otherwise be the case. |
■ | Risk of Investing in ADRs and Domestically Traded Securities of Foreign Issuers. Because the Fund may invest in ADRs and other domestically traded securities of foreign companies, the Fund's Share price may be more affected by foreign economic and political conditions, taxation policies and accounting and auditing standards than would otherwise be the case. |
■ | Risk of Investing in Emerging Market Countries. Securities issued or traded in emerging markets generally entail greater risks than securities issued or traded in developed markets. Emerging market countries may have relatively unstable governments and may present the risk of nationalization of businesses, expropriation, confiscatory taxation or, in certain instances, reversion to closed market, centrally planned economies. |
■ | Custodial Services and Related Investment Costs. Custodial services and other costs relating to investment in international securities markets generally are more expensive due to differing settlement and clearance procedures than those of the United States. The inability of the Fund to make intended securities purchases due to settlement problems could cause the Fund to miss attractive investment opportunities. In addition, security settlement and clearance procedures in some emerging market countries may not fully protect the Fund against loss of its assets. |
■ | Currency Risk. Exchange rates for currencies fluctuate daily. Foreign securities are normally denominated and traded in foreign currencies. As a result, the value of the Fund's foreign investments and the value of the Shares may be affected favorably or unfavorably by changes in currency exchange rates relative to the U.S. dollar. |
■ | Eurozone Related Risk. A number of countries in the European Union (EU) have experienced, and may continue to experience, severe economic and financial difficulties. Additional EU member countries may also fall subject to such difficulties. These events could negatively affect the value and liquidity of the Fund's investments in euro-denominated securities and derivatives contracts, securities of issuers located in the EU or with significant exposure to EU issuers or countries. |
■ | Risk of Investing in Derivative Contracts and Hybrid Instruments. Derivative contracts and hybrid instruments involve risks different from, or possibly greater than, risks associated with investing directly in securities and other traditional investments. Specific risk issues related to the use of such contracts and instruments include valuation and tax issues, increased potential for losses and/or costs to the Fund, and a potential reduction in gains to the Fund. Each of these issues is described in greater detail in this Prospectus. Derivative contracts and hybrid instruments may involve other risks described in this Prospectus or the Fund's Statement of Additional Information (SAI), such as stock market, credit, currency, liquidity and leverage risks. |
■ | Credit Risk. Credit risk includes the possibility that a party to a transaction (such as a derivative transaction) involving the Fund will fail to meet its obligations. This could cause the Fund to lose the benefit of the transaction or prevent the Fund from selling or buying other securities to implement its investment strategy. |
■ | Leverage Risk. Leverage risk is created when an investment (such as a derivative transaction) exposes the Fund to a level of risk that exceeds the amount invested. Changes in the value of such an investment magnify the Fund's risk of loss and potential for gain. |
■ | Interest Rate Risk. Prices of fixed-income securities rise and fall in response to changes in the interest rate paid by similar securities. Generally, when interest rates rise, prices of fixed-income securities fall. |
■ | Exchange-Traded Funds Risk. An investment in an exchange-traded fund (ETF) generally presents the same primary risks as an investment in a conventional fund (i.e., one that is not exchange traded) that has the same investment objectives, strategies and policies. The price of an ETF can fluctuate up or down, and the Fund could lose money investing in an ETF if the prices of the securities owned by the ETF go down. |
■ | Technology Risk. Proprietary and third-party data and systems are utilized to support decision making for the Fund. Data imprecision, software or other technology malfunctions, programming inaccuracies and similar circumstances may impair the performance of these systems, which may negatively affect Fund performance. |
1 Year | 5 Years | 10 Years | |
R: | |||
Return Before Taxes | (13.78)% | (1.41)% | 4.42% |
Return After Taxes on Distributions | (14.03)% | (1.84)% | 3.81% |
Return After Taxes on Distributions and Sale of Fund Shares | (8.61)% | (1.20)% | 3.82% |
Russell Mid-Cap Growth Index
1
(reflects no deduction for fees, expenses or taxes) |
(1.65)% | 2.44% | 5.29% |
Lipper Multi-Cap Growth Funds Category 2 | (3.15)% | 0.97% | 3.09% |
1 | Russell Mid-Cap Growth Index measures the performance of those Russell Mid-Cap companies with higher price-to-book ratios and higher forecasted growth values. |
2 | Lipper figures represent the average of the total returns reported by all the mutual funds designated by Lipper, Inc. as falling into the respective category indicated. They do not reflect sales charges. |
■ | the growth prospects of existing products and new product development; |
■ | the economic outlook of the industry; |
■ | the price of the security and its estimated fundamental value; and |
■ | relevant market, economic and political environments. |
■ | are profitable and leaders in the industry; |
■ | have distinct products and services which address substantial markets; |
■ | can grow annual earnings by at least 20% for the next three to five years; and |
■ | have superior proven management and solid balance sheets. |
■ | obtain premiums from the sale of derivative contracts; |
■ | realize gains from trading a derivative contract; or |
■ | hedge against potential losses. |
■ | Equity securities listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market. |
■ | Fixed-income securities acquired with remaining maturities greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Board of Trustees (“Board”). |
■ | Fixed-income securities acquired with remaining maturities of 60 days or less are valued at their cost (adjusted for the accretion of any discount or amortization of any premium). |
■ | Derivative contracts listed on exchanges are valued at their reported settlement or closing price, except that options are valued at the mean of closing bid and asked quotations. |
■ | Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Board. |
■ | With respect to securities traded principally in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures contracts; |
■ | Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; and |
■ | Announcements concerning matters such as acquisitions, recapitalizations or litigation developments or a natural disaster affecting the issuer's operations or regulatory changes or market developments affecting the issuer's industry. |
Shares Offered |
Minimum
Initial/Subsequent Investment Amounts 1 |
Front-End
Sales Charge |
Maximum Sales Charge | |
Contingent
Deferred Sales Charge |
Redemption/
Exchange Fee |
|||
R | $1,500/$100 | None | None | 0.20% |
1 | The minimum initial and subsequent investment amounts for Individual Retirement Accounts (IRAs) are generally $250 and $100, respectively. There is no minimum initial or subsequent investment amount required for employer-sponsored retirement plans; however, such accounts remain subject to the Fund's policy on “Accounts with Low Balances” as discussed later in this Prospectus. Please see “By Systematic Investment Program” for applicable minimum investment. Financial intermediaries may impose higher or lower minimum investment requirements on their customers than those imposed by the Fund. |
■ | Establish an account with the financial intermediary; and |
■ | Submit your purchase order to the financial intermediary before the end of regular trading on the NYSE (normally 4:00 p.m. Eastern time). |
■ | Establish your account with the Fund by submitting a completed New Account Form; and |
■ | Send your payment to the Fund by Federal Reserve wire or check. |
■ | ensure that the account registrations are identical; |
■ | meet any applicable minimum initial investment requirements; and |
■ | receive a prospectus for the fund into which you wish to exchange. |
■ | through a financial intermediary if you purchased Shares through a financial intermediary; or |
■ | directly from the Fund if you purchased Shares directly from the Fund. |
■ | Fund name and Share class, account number and account registration; |
■ | amount to be redeemed or exchanged; |
■ | signatures of all shareholders exactly as registered; and |
■ | if exchanging , the Fund name and Share class, account number and account registration into which you are exchanging. |
■ | your redemption will be sent to an address other than the address of record; |
■ | your redemption will be sent to an address of record that was changed within the last 30 days; |
■ | a redemption is payable to someone other than the shareholder(s) of record; or |
■ | transferring into another fund with a different shareholder registration. |
■ | An electronic transfer to your account at a financial institution that is an ACH member; or |
■ | Wire payment to your account at a domestic commercial bank that is a Federal Reserve System member. |
■ | to allow your purchase to clear (as discussed below); |
■ | during periods of market volatility; |
■ | when a shareholder's trade activity or amount adversely impacts the Fund's ability to manage its assets; or |
■ | during any period when the Federal Reserve wire or applicable Federal Reserve banks are closed, other than customary weekend and holiday closings. |
■ | when the NYSE is closed, other than customary weekend and holiday closings; |
■ | when trading on the NYSE is restricted, as determined by the SEC; or |
■ | in which an emergency exists, as determined by the SEC, so that disposal of the Fund's investments or determination of its NAV is not reasonably practicable. |
■ | ensure that the account registrations are identical; |
■ | meet any applicable minimum initial investment requirements; and |
■ | receive a prospectus for the fund into which you wish to exchange. |
Year Ended October 31 | 2012 | 2011 | 2010 | 2009 | 2008 |
Net Asset Value, Beginning of Period | $4.93 | $5.27 | $4.23 | $3.81 | $7.03 |
Income From Investment Operations: | |||||
Net investment income (loss) | (0.05) 1 | (0.05) 1 | 0.02 1 | (0.00) 1,2 | (0.03) 1 |
Net realized and unrealized gain (loss) on investments, written options, futures contracts, short sales and foreign currency transactions | 0.49 | (0.26) | 1.03 | 0.42 | (2.56) |
TOTAL FROM INVESTMENT OPERATIONS | 0.44 | (0.31) | 1.05 | 0.42 | (2.59) |
Less Distributions: | |||||
Distributions from net investment income | — | (0.03) | (0.01) | — | — |
Distributions from net realized gain on investments and foreign currency transactions | (0.09) | (0.00) 2 | — | — | (0.63) |
TOTAL DISTRIBUTIONS | (0.09) | (0.03) | (0.01) | — | (0.63) |
Net Asset Value, End of Period | $5.28 | $4.93 | $5.27 | $4.23 | $3.81 |
Total Return 3 | 9.23% | (5.88)% | 24.81% | 11.02% | (40.23)% |
Ratios to Average Net Assets: | |||||
Net expenses | 1.95% 4 | 1.95% 4 | 1.95% 4 | 1.95% 4 | 1.95% 4 |
Net expenses excluding dividends and other expenses related to short sales | 1.95% 4 | 1.95% 4 | 1.95% 4 | 1.95% 4 | 1.95% 4 |
Net investment income (loss) | (0.97)% | (0.99)% | 0.39% | (0.12)% | (0.56)% |
Expense waiver/reimbursement 5 | 0.52% | 0.54% | 0.54% | 0.53% | 0.49% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $2,878,476 | $3,001,225 | $3,621,789 | $3,168,922 | $3,051,697 |
Portfolio turnover | 61% | 64% | 54% | 91% | 78% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Represents less than $0.01. |
3 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
4 | The net expense ratio is calculated without reduction for fees paid indirectly for expense offset arrangements. The net expense ratios are 1.95%, 1.95%, 1.95%, 1.95% and 1.95% after taking into account these expense reductions for the years ended October 31, 2012, 2011, 2010, 2009 and 2008, respectively. The net expense ratios excluding dividends and other expenses related to short sales are also calculated without reduction for these fees paid indirectly for expense offset arrangements. |
5 | This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above. |
FEDERATED KAUFMANN FUND - R CLASS | |||||
ANNUAL EXPENSE RATIO: 2.48% | |||||
MAXIMUM FRONT-END SALES CHARGE: NONE | |||||
Year |
Hypothetical
Beginning Investment |
Hypothetical
Performance Earnings |
Investment
After Returns |
Hypothetical
Expenses |
Hypothetical
Ending Investment |
1 | $10,000.00 | $500.00 | $10,500.00 | $251.12 | $10,252.00 |
2 | $10,252.00 | $512.60 | $10,764.60 | $257.45 | $10,510.35 |
3 | $10,510.35 | $525.52 | $11,035.87 | $263.94 | $10,775.21 |
4 | $10,775.21 | $538.76 | $11,313.97 | $270.59 | $11,046.75 |
5 | $11,046.75 | $552.34 | $11,599.09 | $277.41 | $11,325.13 |
6 | $11,325.13 | $566.26 | $11,891.39 | $284.40 | $11,610.52 |
7 | $11,610.52 | $580.53 | $12,191.05 | $291.57 | $11,903.11 |
8 | $11,903.11 | $595.16 | $12,498.27 | $298.92 | $12,203.07 |
9 | $12,203.07 | $610.15 | $12,813.22 | $306.45 | $12,510.59 |
10 | $12,510.59 | $625.53 | $13,136.12 | $314.17 | $12,825.86 |
Cumulative | $5,606.85 | $2,816.02 |
Share Class | Ticker |
A | KLCAX |
C | KLCCX |
R | KLCKX |
Institutional | KLCIX |
1 | The Adviser and its affiliates have voluntarily agreed to waive their fees and/or reimburse expenses so that the total annual fund operating expenses (excluding Acquired Fund Fees and Expenses) paid by the Fund's A, C, R and IS classes (after the voluntary waivers and/or reimbursements) will not exceed 1.50%, 2.34%, 1.95% and 1.25% (the “Fee Limit”), respectively, up to but not including the later of (the “Termination Date”): (a) January 1, 2014; or (b) the date of the Fund's next effective Prospectus. While the Adviser and its affiliates currently do not anticipate terminating or increasing these arrangements prior to the Termination Date, these arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the agreement of the Fund's Board of Trustees. |
Share Class | 1 Year | 3 Years | 5 Years | 10 Years |
IS: | ||||
Expenses assuming redemption | $174 | $539 | $928 | $2,019 |
Expenses assuming no redemption | $174 | $539 | $928 | $2,019 |
■ | Stock Market Risk. The value of equity securities in the Fund's portfolio will fluctuate and, as a result, the Fund's share price may decline suddenly or over a sustained period of time. |
■ | Sector Risk. Because the Fund may allocate relatively more assets to certain industry sectors than others, the Fund's performance may be more susceptible to any developments which affect those sectors emphasized by the Fund. |
■ | Risk Related to Investing for Growth. Due to their relatively high valuations, growth stocks are typically more volatile than value stocks. For instance, the price of a growth stock may experience a larger decline on a forecast of lower earnings, a negative fundamental development, or an adverse market development. Further, growth stocks may not pay dividends or may pay lower dividends than value stocks. This means they depend more on price changes for returns and may be more adversely affected in a down market compared to value stocks that pay higher dividends. |
■ | Risk of Foreign Investing. Because the Fund invests in securities issued by foreign companies, the Fund's Share price may be more affected by foreign economic and political conditions, taxation policies and accounting and auditing standards than could otherwise be the case. |
■ | Risk of Investing in American Depositary Receipts and Domestically Traded Securities of Foreign Issuers. Because the Fund may invest in American Depositary Receipts and other domestically traded securities of foreign companies, the Fund's Share price may be more affected by foreign economic and political conditions, taxation policies and accounting and auditing standards than would otherwise be the case. |
■ | Risk of Investing in Emerging Market Countries. Securities issued or traded in emerging markets generally entail greater risk than securities issued or traded in developed markets. For example, their prices can be significantly more volatile than prices in developed countries. Emerging market economies may also experience more severe downturns (with corresponding currency devaluations) than developed economies. |
■ | Currency Risk. Exchange rates for currencies fluctuate daily. Foreign securities are normally denominated and traded in foreign currencies. As a result, the value of the Fund's foreign investments and the value of the shares may be affected favorably or unfavorably by changes in currency exchange rates relative to the U.S. dollar. |
■ | Eurozone Related Risk. A number of countries in the European Union (EU) have experienced, and may continue to experience, severe economic and financial difficulties. Additional EU member countries may also fall subject to such difficulties. These events could negatively affect the value and liquidity of the Fund's investments in euro-denominated securities and derivatives contracts, securities of issuers located in the EU or with significant exposure to EU issuers or countries. |
■ | Custodial Services and Related Investment Costs. Custodial services and other costs relating to investment in international securities markets generally are more expensive than in the United States. Such markets have settlement and clearance procedures that differ from those in the United States. Security settlement and clearance procedures in some emerging market countries may not fully protect the Fund against loss of its assets. |
■ | Liquidity Risk. Liquidity risk refers to the possibility that the Fund may not be able to sell a security or close out a derivative contract when it wants to. If this happens, the Fund will be required to continue to hold the security or keep the position open, and the Fund could incur losses. |
■ | Risk of Investing in Derivative Contracts and Hybrid Instruments. Derivative contracts and hybrid instruments involve risk different from, or possibly greater than, risk associated with investing directly in securities and other traditional investments. Specific risk issues related to the use of such contracts and instruments include valuation and tax issues, increased potential for losses and/or costs to the Fund, and a potential reduction in gains to the Fund. Each of these issues is described in greater detail in this Prospectus. Derivative contracts and hybrid instruments may also involve other risk described in this Prospectus or the Fund's Statement of Additional Information, such as stock market, credit, currency, liquidity and leverage risk. |
■ | Exchange-Traded Funds Risk. An investment in an exchange-traded fund (ETF) generally presents the same primary risk as an investment in a conventional fund (i.e., one that is not exchange-traded) that has the same investment objectives, strategies, and policies. The price of an ETF can fluctuate up or down, and the Fund could lose money investing in an ETF if the prices of the securities owned by the ETF go down. |
■ | Leverage Risk. Leverage risk is created when an investment exposes the Fund to a level of risk that exceeds the amount invested. Changes in the value of such an investment magnify the Fund's risk of loss and potential for gain. |
■ | Credit Risk. Credit risk includes the possibility that a party to a transaction involving the Fund will fail to meet its obligations. This could cause the Fund to lose the benefit of the transaction or prevent the Fund from selling or buying other securities to implement its investment strategy. |
■ | Interest Rate Risk. Prices of fixed-income securities rise and fall in response to changes in the interest rate paid by similar securities. Generally when interest rates rise, prices of fixed-income securities fall. |
■ | Technology Risk. Proprietary and third-party data and systems are utilized to support decision making for the Fund. Data imprecision, software or other technology malfunctions, programming inaccuracies and similar circumstances may impair the performance of these systems, which may negatively affect Fund performance. |
1 Year |
Since Inception
12/5/2007 |
|
A: | ||
Return Before Taxes | (11.29)% | 0.22% |
C: | ||
Return Before Taxes | (7.81)% | 0.83% |
R: | ||
Return Before Taxes | (6.52)% | 1.21% |
IS: | ||
Return Before Taxes | (5.90)% | 1.89% |
Return After Taxes on Distributions | (6.47)% | 1.69% |
Return After Taxes on Distributions and Sale of Fund Shares | (3.02)% | 1.61% |
Russell 1000 Growth Index
1
(reflects no deduction for fees, expenses or taxes) |
2.64% | 0.45% |
Lipper Large-Cap Growth Funds Index 2 | (2.90)% | 2.05% |
1 | The Russell 1000 Growth Index is a large cap index that measures the performance of the 1,000 largest companies in the Russell 3000 Index, which represents approximately 92% of the total market capitalization of the Russell 3000 Index. The Russell 1000 Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. |
2 | Lipper figures represent the composite performance of the 30 largest funds by assets in the Lipper Large-Cap Growth Fund category. They do not reflect sales charges. |
■ | the growth prospects of existing products and new product development; |
■ | the economic outlook of the industry; |
■ | the price of the security and its estimated fundamental value; and |
■ | relevant market, economic and political environments. |
■ | are profitable and leaders in the industry; |
■ | have distinct products and services which address substantial markets; |
■ | can rapidly grow annual earnings over the next three to five years; and/or |
■ | have superior proven management and solid balance sheets. |
■ | obtain premiums from the sale of derivative contracts; |
■ | realize gains from trading a derivative contract; or |
■ | hedge against potential losses. |
■ | Equity securities listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market. |
■ | Fixed-income securities acquired with remaining maturities greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Board of Trustees (“Board”). |
■ | Fixed-income securities acquired with remaining maturities of 60 days or less are valued at their cost (adjusted for the accretion of any discount or amortization of any premium). |
■ | Derivative contracts listed on exchanges are valued at their reported settlement or closing price, except that options are valued at the mean of closing bid and asked quotations. |
■ | Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Board. |
■ | With respect to securities traded principally in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures contracts; |
■ | Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; and |
■ | Announcements concerning matters such as acquisitions, recapitalizations or litigation developments or a natural disaster affecting the issuer's operations or regulatory changes or market developments affecting the issuer's industry. |
Minimum
Initial/Subsequent Investment Amounts 1 |
Maximum Sales Charges | ||
Shares Offered |
Front-End
Sales Charge 2 |
Contingent
Deferred Sales Charge 3 |
|
A | $1,500/$100 | 5.50% | 0.00% |
C | $1,500/$100 | None | 1.00% |
1 | The minimum initial and subsequent investment amounts for Individual Retirement Accounts (IRAs) are generally $250 and $100, respectively. There is no minimum initial or subsequent investment amount required for employer-sponsored retirement plans; however, such accounts remain subject to the Fund's policy on “Accounts with Low Balances” as discussed later in this Prospectus. Please see “By Systematic Investment Program” for applicable minimum investment. Financial intermediaries may impose higher or lower minimum investment requirements on their customers than those imposed by the Fund. |
To maximize your return and minimize the sales charges and marketing fees, purchases of C class are generally limited to $1,000,000. Purchases equal to or in excess of these limits may be made in A class. If your Shares are held on the books of the Fund in the name of a financial intermediary, you may be subject to rules of your financial intermediary that differ from those of the Fund. See “Purchase Restrictions on C Class” below. | |
2 | Front-End Sales Charge is expressed as a percentage of public offering price. See “Sales Charge When You Purchase.” |
3 | See “Sales Charge When You Redeem.” |
A: | ||
Purchase Amount |
Sales Charge
as a Percentage of Public Offering Price |
Sales Charge
as a Percentage of NAV |
Less than $50,000 | 5.50% | 5.82% |
$50,000 but less than $100,000 | 4.50% | 4.71% |
$100,000 but less than $250,000 | 3.75% | 3.90% |
$250,000 but less than $500,000 | 2.50% | 2.56% |
$500,000 but less than $1 million | 2.00% | 2.04% |
$1 million or greater 1 | 0.00% | 0.00% |
1 | A contingent deferred sales charge (CDSC) of 0.75% of the redemption amount applies to Shares originally purchased in an amount of $1 million or more and redeemed up to 24 months after purchase under certain investment programs where a financial intermediary received an advance payment on the transaction. CDSC exceptions may apply, See “Sales Charge When You Redeem.” |
■ | Purchasing the A class in greater quantities to reduce the applicable sales charge; |
■ | Combining concurrent purchases of and/or current investments in the A class, B class, C class, F class and R class of any Federated fund made or held by Qualifying Accounts; the purchase amount used in determining the sales charge on your additional Share purchase will be calculated by multiplying the respective maximum public offering price times the number of the A class, B class, C class, F class and R class shares of any Federated fund currently held in Qualifying Accounts and adding the dollar amount of your current purchase; or |
■ | Signing a letter of intent to purchase a qualifying amount of the A class within 13 months. (Call your financial intermediary or the Fund for more information.) The Fund's custodian will hold Shares in escrow equal to the maximum applicable sales charge. If you complete the Letter of Intent, the Custodian will release the Shares in escrow to your account. If you do not fulfill the Letter of Intent, the Custodian will redeem the appropriate amount from the Shares held in escrow to pay the sales charges that were not applied to your purchases. |
■ | within 120 days of redeeming Shares of an equal or greater amount; |
■ | through a program offered by a Financial Intermediary that provides for the purchase of Shares without imposition of a sales charge (for example, a wrap account, self-directed brokerage account, retirement, or other fee-based program offered by the Financial Intermediary) and where the Financial Intermediary has agreed with the Distributor not to receive a dealer reallowance on purchases under such program; |
■ | with reinvested dividends or capital gains; |
■ | as a shareholder that originally became a shareholder of a Federated fund pursuant to the terms of an agreement and plan of reorganization which permits shareholders to acquire Shares at NAV; |
■ | as a Federated Life Member (Federated shareholders who originally were issued shares through the “Liberty Account,” which was an account for the Liberty Family of Funds on February 28, 1987, or who invested through an affinity group prior to August 1, 1987, into the Liberty Account) (A class only); |
■ | as a Trustee, employee or former employee of the Fund, the Adviser, the Distributor and their affiliates, an employee of any financial intermediary that sells Shares according to a sales agreement with the Distributor, an immediate family member of these individuals or a trust, pension or profit-sharing plan for these individuals; or |
■ | pursuant to the exchange privilege. |
■ | Shares that are not subject to a CDSC; and |
■ | Shares held the longest. (To determine the number of years your Shares have been held, include the time you held shares of other Federated funds that have been exchanged for Shares of this Fund.) |
A: | ||
If you make a purchase of the A class in the amount of $1 million or more and your financial intermediary received an advance commission on the sale, you will pay a 0.75% CDSC on any such Shares redeemed within 24 months of the purchase. | ||
C: | ||
You will pay a 1.00% CDSC if you redeem Shares within 12 months of the purchase date. |
■ | following the death of the last surviving shareholder on the account or the post-purchase disability of all registered shareholders, as defined in Section 72(m)(7) of the Internal Revenue Code of 1986 (the beneficiary on an account with a Transfer on Death registration is deemed the last surviving shareholder on the account); |
■ | representing minimum required distributions from an IRA or other retirement plan to a shareholder who has attained the age of 70 1 ∕ 2 ; |
■ | purchased by Trustees, employees of the Fund, the Adviser, the Distributor and their affiliates, by employees of a financial intermediary that sells Shares according to a sales agreement with the Distributor, by the immediate family members of the above persons, and by trusts, pension or profit-sharing plans for the above persons; |
■ | purchased through a program offered by a Financial Intermediary that provides for the purchase of Shares without imposition of a sales charge (for example, a wrap account, self-directed brokerage account, retirement, or other fee-based program offered by the Financial Intermediary) and where the Financial Intermediary has agreed with the Distributor not to receive an advance commission on purchases under such program; |
■ | purchased with reinvested dividends or capital gains; |
■ | redeemed by the Fund when it closes an account for not meeting the minimum balance requirements; |
■ | purchased pursuant to the exchange privilege if the Shares were held for the applicable CDSC holding period (the holding period on the shares purchased in the exchange will include the holding period of the shares sold in the exchange); or |
■ | purchased in the amount of $1 million or more and redeemed within 24 months of purchase if the Shares were originally purchased through a program offered by a Financial Intermediary that provides for the purchase of Shares without imposition of a sales charge (for example, a wrap account, self-directed brokerage account, retirement, or other fee-based program offered by the Financial Intermediary) and where the Financial Intermediary has agreed with the principal underwriter not to receive an advanced commission on purchases under such program. |
■ | An investor participating in a wrap program or other fee-based program sponsored by a financial intermediary; |
■ | An investor participating in a no-load network or platform sponsored by a financial intermediary where Federated has entered into an agreement with the intermediary; |
■ | A trustee/director, employee or former employee of the Fund, the Adviser, the Distributor and their affiliates; an immediate family member of these individuals or a trust, pension or profit-sharing plan for these individuals; |
■ | An employer-sponsored retirement plan; |
■ | A trust institution investing on behalf of its trust customers; |
■ | Additional sales to an investor (including a natural person) who owned IS class of the Fund as of December 31, 2008; |
■ | An investor (including a natural person) who acquired IS class of a Federated fund pursuant to the terms of an agreement and plan of reorganization which permits the investor to acquire such shares; and |
■ | In connection with an acquisition of an investment management or advisory business, or related investment services, products or assets, by Federated or its investment advisory subsidiaries, an investor (including a natural person) who: (1) becomes a client of an investment advisory subsidiary of Federated; or (2) is a shareholder or interest holder of a pooled investment vehicle or product that becomes advised or subadvised by a Federated investment advisory subsidiary as a result of such an acquisition other than as a result of a fund reorganization transaction pursuant to an agreement and plan of reorganization. |
■ | An investor, other than a natural person, purchasing IS class directly from the Fund; and |
■ | In connection with an initial purchase of IS class through an exchange, an investor (including a natural person) who owned IS class of another Federated fund as of December 31, 2008. |
A: | |
Purchase Amount |
Dealer Reallowance
as a Percentage of Public Offering Price |
Less than $50,000 | 5.00% |
$50,000 but less than $100,000 | 4.00% |
$100,000 but less than $250,000 | 3.25% |
$250,000 but less than $500,000 | 2.25% |
$500,000 but less than $1 million | 1.80% |
$1 million or greater | 0.00% |
A (for purchases over $1 million): | |
Purchase Amount |
Advance Commission
as a Percentage of Public Offering Price |
First $1 million - $5 million | 0.75% |
Next $5 million - $20 million | 0.50% |
Over $20 million | 0.25% |
C: | |
Advance Commission
as a Percentage of Public Offering Price |
|
All Purchase Amounts | 1.00% |
■ | Establish an account with the financial intermediary; and |
■ | Submit your purchase order to the financial intermediary before the end of regular trading on the NYSE (normally 4:00 p.m. Eastern time). |
■ | Establish your account with the Fund by submitting a completed New Account Form; and |
■ | Send your payment to the Fund by Federal Reserve wire or check. |
■ | ensure that the account registrations are identical; |
■ | meet any applicable minimum initial investment requirements; and |
■ | receive a prospectus for the fund into which you wish to exchange. |
■ | through a financial intermediary if you purchased Shares through a financial intermediary; or |
■ | directly from the Fund if you purchased Shares directly from the Fund. |
■ | Fund name and Share class, account number and account registration; |
■ | amount to be redeemed or exchanged; |
■ | signatures of all shareholders exactly as registered; and |
■ | if exchanging , the Fund name and Share class, account number and account registration into which you are exchanging. |
■ | your redemption will be sent to an address other than the address of record; |
■ | your redemption will be sent to an address of record that was changed within the last 30 days; |
■ | a redemption is payable to someone other than the shareholder(s) of record; or |
■ | transferring into another fund with a different shareholder registration. |
■ | An electronic transfer to your account at a financial institution that is an ACH member; or |
■ | Wire payment to your account at a domestic commercial bank that is a Federal Reserve System member. |
■ | to allow your purchase to clear (as discussed below); |
■ | during periods of market volatility; |
■ | when a shareholder's trade activity or amount adversely impacts the Fund's ability to manage its assets; or |
■ | during any period when the Federal Reserve wire or applicable Federal Reserve banks are closed, other than customary weekend and holiday closings. |
■ | when the NYSE is closed, other than customary weekend and holiday closings; |
■ | when trading on the NYSE is restricted, as determined by the SEC; or |
■ | in which an emergency exists, as determined by the SEC, so that disposal of the Fund's investments or determination of its NAV is not reasonably practicable. |
■ | ensure that the account registrations are identical; |
■ | meet any applicable minimum initial investment requirements; and |
■ | receive a prospectus for the fund into which you wish to exchange. |
Year Ended October 31, |
Period
Ended 10/31/2008 1 |
||||
2012 | 2011 | 2010 | 2009 | ||
Net Asset Value, Beginning of Period | $11.07 | $10.53 | $8.69 | $6.88 | $10.00 |
Income From Investment Operations: | |||||
Net investment income (loss) | (0.04) 2 | (0.04) 2 | 0.09 2 | 0.05 2 | 0.03 2 |
Net realized and unrealized gain (loss) on investments and foreign currency transactions | 1.64 | 0.63 | 1.75 | 1.78 | (3.15) |
TOTAL FROM INVESTMENT OPERATIONS | 1.60 | 0.59 | 1.84 | 1.83 | (3.12) |
Less Distributions: | |||||
Distributions from net investment income | — | (0.05) | (0.00) 3 | (0.02) | — |
Distributions from net realized gain on investments and foreign currency transactions | (0.45) | (0.00) 3 | — | — | — |
TOTAL DISTRIBUTIONS | (0.45) | (0.05) | (0.00) 3 | (0.02) | |
Net Asset Value, End of Period | $12.22 | $11.07 | $10.53 | $8.69 | $6.88 |
Total Return 4 | 15.08% | 5.63% | 21.18% | 26.68% | (31.20)% |
Ratios to Average Net Assets: | |||||
Net expenses | 1.50% | 1.50% 5 | 1.50% 5 | 1.50% 5 | 1.50% 6 |
Net investment income (loss) | (0.34)% | (0.37)% | 0.94% | 0.67% | 0.37% 6 |
Expense waiver/reimbursement 7 | 0.49% | 0.56% | 0.75% | 1.26% | 1.88% 6 |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $142,229 | $140,128 | $89,815 | $60,203 | $31,156 |
Portfolio turnover | 94% | 128% | 69% | 170% | 70% |
1 | Reflects operations for the period from December 5, 2007 (date of initial investment) to October 31, 2008. |
2 | Per share numbers have been calculated using the average shares method. |
3 | Represents less than $0.01. |
4 | 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. |
5 | The net expense ratio is calculated without reduction for fees paid indirectly for expense offset arrangements. The net expense ratios are 1.50%, 1.49% and 1.50% for the years ended October 31, 2011, 2010 and 2009, respectively, after taking into account these expense reductions. |
6 | Computed on an annualized basis. |
7 | This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above. |
Year Ended October 31, |
Period
Ended 10/31/2008 1 |
||||
2012 | 2011 | 2010 | 2009 | ||
Net Asset Value, Beginning of Period | $10.82 | $10.33 | $8.60 | $6.85 | $10.00 |
Income From Investment Operations: | |||||
Net investment income (loss) | (0.13) 2 | (0.13) 2 | 0.01 2 | (0.01) 2 | (0.04) 2 |
Net realized and unrealized gain (loss) on investments and foreign currency transactions | 1.60 | 0.62 | 1.72 | 1.76 | (3.11) |
TOTAL FROM INVESTMENT OPERATIONS | 1.47 | 0.49 | 1.73 | 1.75 | (3.15) |
Less Distributions: | |||||
Distributions from net realized gain on investments and foreign currency transactions | (0.45) | — | — | — | — |
Net Asset Value, End of Period | $11.84 | $10.82 | $10.33 | $8.60 | $6.85 |
Total Return 3 | 14.20% | 4.74% | 20.12% | 25.55% | (31.50)% |
Ratios to Average Net Assets: | |||||
Net expenses | 2.34% | 2.33% 4 | 2.34% 4 | 2.32% 4 | 2.33% 5 |
Net investment income (loss) | (1.15)% | (1.20)% | 0.14% | (0.12)% | (0.46)% 5 |
Expense waiver/reimbursement 6 | 0.40% | 0.48% | 0.68% | 1.19% | 1.82% 5 |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $81,269 | $69,810 | $47,002 | $32,721 | $16,307 |
Portfolio turnover | 94% | 128% | 69% | 170% | 70% |
1 | Reflects operations for the period from December 5, 2007 (date of initial investment) to October 31, 2008. |
2 | Per share numbers have been calculated using the average shares method. |
3 | 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. |
4 | The net expense ratio is calculated without reduction for fees paid indirectly for expense offset arrangements. The net expense ratios are 2.33%, 2.33% and 2.31% for the years ended October 31, 2011, 2010 and 2009, respectively, after taking into account these expense reductions. |
5 | Computed on an annualized basis. |
6 | This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above. |
Year Ended October 31, |
Period
Ended 10/31/2008 1 |
||||
2012 | 2011 | 2010 | 2009 | ||
Net Asset Value, Beginning of Period | $10.91 | $10.40 | $8.63 | $6.87 | $10.00 |
Income From Investment Operations: | |||||
Net investment income (loss) | (0.09) 2 | (0.07) 2 | 0.08 2 | 0.01 2 | (0.01) 2 |
Net realized and unrealized gain (loss) on investments and foreign currency transactions | 1.60 | 0.61 | 1.69 | 1.78 | (3.12) |
TOTAL FROM INVESTMENT OPERATIONS | 1.51 | 0.54 | 1.77 | 1.79 | (3.13) |
Less Distributions: | |||||
Distributions from net investment income | — | (0.03) | — | (0.03) | — |
Distributions from net realized gain on investments and foreign currency transactions | (0.45) | (0.00) 3 | — | — | — |
TOTAL DISTRIBUTIONS | (0.45) | (0.03) | — | (0.03) | — |
Net Asset Value, End of Period | $11.97 | $10.91 | $10.40 | $8.63 | $6.87 |
Total Return 4 | 14.46% | 5.20% | 20.51% | 26.12% | (31.30)% |
Ratios to Average Net Assets: | |||||
Net expenses | 1.95% | 1.95% 5 | 1.95% 5 | 1.95% 5 | 1.95% 6 |
Net investment income (loss) | (0.77)% | (0.65)% | 0.88% | 0.06% | (0.08)% 6 |
Expense waiver/reimbursement 7 | 0.44% | 0.55% | 0.71% | 1.14% | 1.88% 6 |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $19,688 | $16,393 | $1,901 | $332 | $2 |
Portfolio turnover | 94% | 128% | 69% | 170% | 70% |
1 | Reflects operations for the period from December 5, 2007 (date of initial investment) to October 31, 2008. |
2 | Per share numbers have been calculated using the average shares method. |
3 | Represents less than $0.01. |
4 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
5 | The net expense ratio is calculated without reduction for fees paid indirectly for expense offset arrangements. The net expense ratios are 1.95%, 1.94% and 1.95% for the years ended October 31, 2011, 2010 and 2009, respectively, after taking into account these expense reductions. |
6 | Computed on an annualized basis. |
7 | This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above. |
Year Ended October 31, |
Period
Ended 10/31/2008 1 |
||||
2012 | 2011 | 2010 | 2009 | ||
Net Asset Value, Beginning of Period | $11.13 | $10.58 | $8.73 | $6.90 | $10.00 |
Income From Investment Operations: | |||||
Net investment income (loss) | (0.01) 2 | (0.01) 2 | 0.16 2 | 0.07 2 | 0.05 2 |
Net realized and unrealized gain (loss) on investments and foreign currency transactions | 1.65 | 0.63 | 1.70 | 1.79 | (3.15) |
TOTAL FROM INVESTMENT OPERATIONS | 1.64 | 0.62 | 1.86 | 1.86 | (3.10) |
Less Distributions: | |||||
Distributions from net investment income | — | (0.07) | (0.01) | (0.03) | — |
Distributions from net realized gain on investments and foreign currency transactions | (0.45) | (0.00) 3 | — | — | — |
TOTAL DISTRIBUTIONS | (0.45) | (0.07) | (0.01) | (0.03) | — |
Net Asset Value, End of Period | $12.32 | $11.13 | $10.58 | $8.73 | $6.90 |
Total Return 4 | 15.37% | 5.89% | 21.38% | 27.13% | (31.00)% |
Ratios to Average Net Assets: | |||||
Net expenses | 1.25% | 1.25% 5 | 1.25% 5 | 1.25% 5 | 1.25% 6 |
Net investment income (loss) | (0.07)% | (0.10)% | 1.62% | 0.95% | 0.62% 6 |
Expense waiver/reimbursement 7 | 0.45% | 0.52% | 0.68% | 1.18% | 1.88% 6 |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $106,055 | $93,222 | $54,905 | $15,931 | $2,446 |
Portfolio turnover | 94% | 128% | 69% | 170% | 70% |
1 | Reflects operations for the period from December 5, 2007 (date of initial investment) to October 31, 2008. |
2 | Per share numbers have been calculated using the average shares method. |
3 | Represents less than $0.01. |
4 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
5 | The net expense ratio is calculated without reduction for fees paid indirectly for expense offset arrangements. The net expense ratios are 1.25%, 1.24% and 1.25% for the years ended October 31, 2011, 2010 and 2009, respectively, after taking into account these expense reductions. |
6 | Computed on an annualized basis. |
7 | This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above. |
FEDERATED KAUFMANN LARGE CAP FUND - A CLASS | |||||
ANNUAL EXPENSE RATIO: 2.25% | |||||
MAXIMUM FRONT-END SALES CHARGE: 5.50% | |||||
Year |
Hypothetical
Beginning Investment |
Hypothetical
Performance Earnings |
Investment
After Returns |
Hypothetical
Expenses |
Hypothetical
Ending Investment |
1 | $10,000.00 | $472.50 | $9,922.50 | $765.55 | $9,709.88 |
2 | $9,709.88 | $485.49 | $10,195.37 | $221.48 | $9,976.90 |
3 | $9,976.90 | $498.85 | $10,475.75 | $227.57 | $10,251.26 |
4 | $10,251.26 | $512.56 | $10,763.82 | $233.82 | $10,533.17 |
5 | $10,533.17 | $526.66 | $11,059.83 | $240.26 | $10,822.83 |
6 | $10,822.83 | $541.14 | $11,363.97 | $246.86 | $11,120.46 |
7 | $11,120.46 | $556.02 | $11,676.48 | $253.65 | $11,426.27 |
8 | $11,426.27 | $571.31 | $11,997.58 | $260.63 | $11,740.49 |
9 | $11,740.49 | $587.02 | $12,327.51 | $267.79 | $12,063.35 |
10 | $12,063.35 | $603.17 | $12,666.52 | $275.16 | $12,395.09 |
Cumulative | $5,354.72 | $2,992.77 |
FEDERATED KAUFMANN LARGE CAP FUND - C CLASS | |||||
ANNUAL EXPENSE RATIO: 2.75% | |||||
MAXIMUM FRONT-END SALES CHARGE: NONE | |||||
Year |
Hypothetical
Beginning Investment |
Hypothetical
Performance Earnings |
Investment
After Returns |
Hypothetical
Expenses |
Hypothetical
Ending Investment |
1 | $10,000.00 | $500.00 | $10,500.00 | $278.09 | $10,225.00 |
2 | $10,225.00 | $511.25 | $10,736.25 | $284.35 | $10,455.06 |
3 | $10,455.06 | $522.75 | $10,977.81 | $290.75 | $10,690.30 |
4 | $10,690.30 | $534.52 | $11,224.82 | $297.29 | $10,930.83 |
5 | $10,930.83 | $546.54 | $11,477.37 | $303.98 | $11,176.77 |
6 | $11,176.77 | $558.84 | $11,735.61 | $310.82 | $11,428.25 |
7 | $11,428.25 | $571.41 | $11,999.66 | $317.81 | $11,685.39 |
8 | $11,685.39 | $584.27 | $12,269.66 | $324.96 | $11,948.31 |
9 | $11,948.31 | $597.42 | $12,545.73 | $332.28 | $12,217.15 |
10 | $12,217.15 | $610.86 | $12,828.01 | $339.75 | $12,492.04 |
Cumulative | $5,537.86 | $3,080.08 |
FEDERATED KAUFMANN LARGE CAP FUND - R CLASS | |||||
ANNUAL EXPENSE RATIO: 2.40% | |||||
MAXIMUM FRONT-END SALES CHARGE: NONE | |||||
Year |
Hypothetical
Beginning Investment |
Hypothetical
Performance Earnings |
Investment
After Returns |
Hypothetical
Expenses |
Hypothetical
Ending Investment |
1 | $10,000.00 | $500.00 | $10,500.00 | $243.12 | $10,260.00 |
2 | $10,260.00 | $513.00 | $10,773.00 | $249.44 | $10,526.76 |
3 | $10,526.76 | $526.34 | $11,053.10 | $255.93 | $10,800.46 |
4 | $10,800.46 | $540.02 | $11,340.48 | $262.58 | $11,081.27 |
5 | $11,081.27 | $554.06 | $11,635.33 | $269.41 | $11,369.38 |
6 | $11,369.38 | $568.47 | $11,937.85 | $276.41 | $11,664.98 |
7 | $11,664.98 | $583.25 | $12,248.23 | $283.60 | $11,968.27 |
8 | $11,968.27 | $598.41 | $12,566.68 | $290.97 | $12,279.45 |
9 | $12,279.45 | $613.97 | $12,893.42 | $298.54 | $12,598.72 |
10 | $12,598.72 | $629.94 | $13,228.66 | $306.30 | $12,926.29 |
Cumulative | $5,627.46 | $2,736.30 |
FEDERATED KAUFMANN LARGE CAP FUND - IS CLASS | |||||
ANNUAL EXPENSE RATIO: 1.71% | |||||
MAXIMUM FRONT-END SALES CHARGE: NONE | |||||
Year |
Hypothetical
Beginning Investment |
Hypothetical
Performance Earnings |
Investment
After Returns |
Hypothetical
Expenses |
Hypothetical
Ending Investment |
1 | $10,000.00 | $500.00 | $10,500.00 | $173.81 | $10,329.00 |
2 | $10,329.00 | $516.45 | $10,845.45 | $179.53 | $10,668.82 |
3 | $10,668.82 | $533.44 | $11,202.26 | $185.44 | $11,019.82 |
4 | $11,019.82 | $550.99 | $11,570.81 | $191.54 | $11,382.37 |
5 | $11,382.37 | $569.12 | $11,951.49 | $197.84 | $11,756.85 |
6 | $11,756.85 | $587.84 | $12,344.69 | $204.35 | $12,143.65 |
7 | $12,143.65 | $607.18 | $12,750.83 | $211.07 | $12,543.18 |
8 | $12,543.18 | $627.16 | $13,170.34 | $218.02 | $12,955.85 |
9 | $12,955.85 | $647.79 | $13,603.64 | $225.19 | $13,382.10 |
10 | $13,382.10 | $669.11 | $14,051.21 | $232.60 | $13,822.37 |
Cumulative | $5,809.08 | $2,019.39 |
Share Class | Ticker |
A | FKASX |
B | FKBSX |
C | FKCSX |
R | FKKSX |
1 | The Adviser and its affiliates have voluntarily agreed to waive their fees and/or reimburse expenses so that the total annual fund operating expenses (excluding Acquired Fund Fees and Expenses) paid by the Fund's A, B, C and R classes (after the voluntary waivers and/or reimbursements) will not exceed 1.95%, 2.50%, 2.50% and 1.95% (the “Fee Limit”), respectively, up to but not including the later of (the “Termination Date”): (a) January 1, 2014; or (b) the date of the Fund's next effective Prospectus. While the Adviser and its affiliates currently do not anticipate terminating or increasing these arrangements prior to the Termination Date, these arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the agreement of the Fund's Board of Trustees. |
Share Class | 1 Year | 3 Years | 5 Years | 10 Years |
R: | ||||
Expenses assuming redemption | $243 | $748 | $1,280 | $2,736 |
Expenses assuming no redemption | $243 | $748 | $1,280 | $2,736 |
■ | Stock Market Risk. The value of equity securities in the Fund's portfolio will fluctuate and, as a result, the Fund's Share price may decline suddenly or over a sustained period of time. |
■ | Risk Related to Investing for Growth. Due to their relatively high valuations, growth stocks are typically more volatile than value stocks. For instance, the price of a growth stock may experience a larger decline on a forecast of lower earnings, a negative fundamental development, or an adverse market development. Further, growth stocks may not pay dividends or may pay lower dividends than value stocks. This means they depend more on price changes for returns and may be more adversely affected in a down market compared to value stocks that pay higher dividends. |
■ | Risk Related to Company Size. Because the smaller companies in which the Fund may invest may have unproven track records, a limited product or service base and limited access to capital, they may be more likely to fail than larger companies. |
■ | Sector Risk. Because the Fund may allocate relatively more assets to certain industry sectors than others, the Fund's performance may be more susceptible to any developments which affect those sectors emphasized by the Fund. |
■ | Liquidity Risk. The equity securities in which the Fund invests may be less readily marketable and may be subject to greater fluctuation in price than other securities. |
■ | Risk of Foreign Investing. Because the Fund invests in securities issued by foreign companies, the Fund's Share price may be more affected by foreign economic and political conditions, taxation policies and accounting and auditing standards than could otherwise be the case. |
■ | Risk of Investing in American Depositary Receipts and Domestically Traded Securities of Foreign Issuers. Because the Fund may invest in American Depositary Receipts and other domestically traded securities of foreign companies, the Fund's Share price may be more affected by foreign economic and political conditions, taxation policies and accounting and auditing standards than would otherwise be the case. |
■ | Risk of Investing in Emerging Markets Countries. Securities issued or traded in emerging markets generally entail greater risks than securities issued or traded in developed markets. For example, their prices can be significantly more volatile than prices in developed countries. Emerging market economies may also experience more severe downturns (with corresponding currency devaluations) than developed economies. Emerging market countries may have relatively unstable governments and may present the risk of nationalization of businesses, expropriation, confiscatory taxation or, in certain instances, reversion to closed market, centrally planned economies. |
■ | Custodial Services and Related Investment Costs. Custodial services and other costs relating to investment in international securities markets generally are more expensive due to differing settlement and clearance procedures than those of the United States. The inability of the Fund to make intended securities purchases due to settlement problems could cause the Fund to miss attractive investment opportunities. In addition, security settlement and clearance procedures in some emerging market countries may not fully protect the Fund against loss of its assets. |
■ | Currency Risk. Exchange rates for currencies fluctuate daily. Foreign securities are normally denominated and traded in foreign currencies. As a result, the value of the Fund's foreign investments and the value of the shares may be affected favorably or unfavorably by changes in currency exchange rates relative to the U.S. dollar. |
■ | Eurozone Related Risk. A number of countries in the European Union (EU) have experienced, and may continue to experience, severe economic and financial difficulties. Additional EU member countries may also fall subject to such difficulties. These events could negatively affect the value and liquidity of the Fund's investments in euro-denominated securities and derivatives contracts, securities of issuers located in the EU or with significant exposure to EU issuers or countries. |
■ | Risk of Investing in Derivative Contracts and Hybrid Instruments. Derivative contracts and hybrid instruments involve risks different from, or possibly greater than, risks associated with investing directly in securities and other traditional investments. Specific risk issues related to the use of such contracts and instruments include valuation and tax issues, increased potential for losses and/or costs to the Fund and a potential reduction in gains to the Fund. Each of these issues is described in greater detail in this Prospectus. Derivative contracts and hybrid instruments may also involve other risks described in this Prospectus or the Fund's Statement of Additional Information, such as stock market, credit, currency, liquidity and leverage risks. |
■ | Credit Risk. Credit risk includes the possibility that a party to a transaction involving the Fund will fail to meet its obligations. This could cause the Fund to lose the benefit of the transaction or prevent the Fund from selling or buying other securities to implement its investment strategy. |
■ | Leverage Risk. Leverage risk is created when an investment exposes the Fund to a level of risk that exceeds the amount invested. Changes in the value of such an investment magnify the Fund's risk of loss and potential for gain. |
■ | Interest Rate Risk. Prices of fixed-income securities rise and fall in response to changes in the interest rate paid by similar securities. Generally when interest rates rise, prices of fixed-income securities fall. |
■ | Exchange-Traded Funds Risk. An investment in an exchange-traded fund (ETF) generally presents the same primary risks as an investment in a conventional fund (i.e., one that is not exchange traded) that has the same investment objectives, strategies and policies. The price of an ETF can fluctuate up or down, and the Fund could lose money investing in an ETF if the prices of the securities owned by the ETF go down. |
■ | Technology Risk. Proprietary and third-party data systems are utilized to support decision making for the Fund. Data imprecision, software or other technology malfunctions, programming inaccuracies and similar circumstances may impair the performance of these systems, which may negatively affect Fund performance. |
1 | Russell 2000 Growth Index is a small cap index that measures the performance of those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values. Returns shown are from December 18, 2002. |
2 | Lipper figures represent the average of the total returns reported by all the mutual funds designated by Lipper, Inc. as falling into the respective categories indicated. They do not reflect sales charges. Returns shown are from December 18, 2002. |
■ | the growth prospects of existing products and new product development; |
■ | the economic outlook of the industry; |
■ | the price of the security and its estimated fundamental value; and |
■ | relevant market, economic and political environments. |
■ | are profitable and leaders in the industry; |
■ | have distinct products and services which address substantial markets; |
■ | can rapidly grow annual earnings over the next three to five years; and/or |
■ | have superior proven management and solid balance sheets. |
■ | obtain premiums from the sale of derivative contracts; |
■ | realize gains from trading a derivative contract; or |
■ | hedge against potential losses. |
■ | Equity securities listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market. |
■ | Fixed-income securities acquired with remaining maturities greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Board of Trustees (“Board”). |
■ | Fixed-income securities acquired with remaining maturities of 60 days or less are valued at their cost (adjusted for the accretion of any discount or amortization of any premium). |
■ | Derivative contracts listed on exchanges are valued at their reported settlement or closing price, except that options are valued at the mean of closing bid and asked quotations. |
■ | Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Board. |
■ | With respect to securities traded principally in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures contracts; |
■ | Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; and |
■ | Announcements concerning matters such as acquisitions, recapitalizations or litigation developments or a natural disaster affecting the issuer's operations or regulatory changes or market developments affecting the issuer's industry. |
Minimum
Initial/Subsequent Investment Amounts 1 |
Maximum Sales Charges | ||
Shares Offered |
Front-End
Sales Charge 2 |
Contingent
Deferred Sales Charge 3 |
|
A | $1,500/$100 | 5.50% | 0.00% |
B | $1,500/$100 | None | 5.50% |
C | $1,500/$100 | None | 1.00% |
1 | The minimum initial and subsequent investment amounts for Individual Retirement Accounts (IRAs) are generally $250 and $100, respectively. There is no minimum initial or subsequent investment amount required for employer-sponsored retirement plans; however, such accounts remain subject to the Fund's policy on “Accounts with Low Balances” as discussed later in this Prospectus. Please see “By Systematic Investment Program” for applicable minimum investment. Financial intermediaries may impose higher or lower minimum investment requirements on their customers than those imposed by the Fund. |
To maximize your return and minimize the sales charges and marketing fees, purchases of the B class are generally limited to $100,000 and purchases of the C class are generally limited to $1,000,000. Purchases equal to or in excess of these limits may be made in the A class. If your Shares are held on the books of the Fund in the name of a financial intermediary, you may be subject to rules of your financial intermediary that differ from those of the Fund. See “Purchase Restrictions on B Class and C Class” below. After the B class has been held for eight years from the date of purchase, they will automatically convert to the A class. This conversion is a non-taxable event. | |
2 | Front-End Sales Charge is expressed as a percentage of public offering price. See “Sales Charge When You Purchase.” |
3 | See “Sales Charge When You Redeem.” |
A: | ||
Purchase Amount |
Sales Charge
as a Percentage of Public Offering Price |
Sales Charge
as a Percentage of NAV |
Less than $50,000 | 5.50% | 5.82% |
$50,000 but less than $100,000 | 4.50% | 4.71% |
$100,000 but less than $250,000 | 3.75% | 3.90% |
$250,000 but less than $500,000 | 2.50% | 2.56% |
$500,000 but less than $1 million | 2.00% | 2.04% |
$1 million or greater 1 | 0.00% | 0.00% |
1 | A contingent deferred sales charge (CDSC) of 0.75% of the redemption amount applies to Shares originally purchased in an amount of $1 million or more and redeemed up to 24 months after purchase under certain investment programs where a financial intermediary received an advance payment on the transaction. CDSC exceptions may apply, See “Sales Charge When You Redeem.” |
■ | Purchasing the A class in greater quantities to reduce the applicable sales charge; |
■ | Combining concurrent purchases of and/or current investments in the A class, B class, C class, F class and R class of any Federated fund made or held by Qualifying Accounts; the purchase amount used in determining the sales charge on your additional Share purchase will be calculated by multiplying the respective maximum public offering price times the number of the A class, B class, C class, F class and R class shares of any Federated fund currently held in Qualifying Accounts and adding the dollar amount of your current purchase; or |
■ | Signing a letter of intent to purchase a qualifying amount of the A class within 13 months. (Call your financial intermediary or the Fund for more information.) The Fund's custodian will hold Shares in escrow equal to the maximum applicable sales charge. If you complete the Letter of Intent, the Custodian will release the Shares in escrow to your account. If you do not fulfill the Letter of Intent, the Custodian will redeem the appropriate amount from the Shares held in escrow to pay the sales charges that were not applied to your purchases. |
■ | within 120 days of redeeming Shares of an equal or greater amount; |
■ | through a program offered by a Financial Intermediary that provides for the purchase of Shares without imposition of a sales charge (for example, a wrap account, self-directed brokerage account, retirement, or other fee-based program offered by the Financial Intermediary) and where the Financial Intermediary has agreed with the Distributor not to receive a dealer reallowance on purchases under such program; |
■ | with reinvested dividends or capital gains; |
■ | as a shareholder that originally became a shareholder of a Federated fund pursuant to the terms of an agreement and plan of reorganization which permits shareholders to acquire Shares at NAV; |
■ | as a Federated Life Member (Federated shareholders who originally were issued shares through the “Liberty Account,” which was an account for the Liberty Family of Funds on February 28, 1987, or who invested through an affinity group prior to August 1, 1987, into the Liberty Account) (A class only); |
■ | as a Trustee, employee or former employee of the Fund, the Adviser, the Distributor and their affiliates, an employee of any financial intermediary that sells Shares according to a sales agreement with the Distributor, an immediate family member of these individuals or a trust, pension or profit-sharing plan for these individuals; or |
■ | pursuant to the exchange privilege. |
■ | Shares that are not subject to a CDSC; and |
■ | Shares held the longest. (To determine the number of years your Shares have been held, include the time you held shares of other Federated funds that have been exchanged for Shares of this Fund.) |
■ | following the death of the last surviving shareholder on the account or the post-purchase disability of all registered shareholders, as defined in Section 72(m)(7) of the Internal Revenue Code of 1986 (the beneficiary on an account with a Transfer on Death registration is deemed the last surviving shareholder on the account); |
■ | representing minimum required distributions from an IRA or other retirement plan to a shareholder who has attained the age of 70 1 ∕ 2 ; |
■ | purchased by Trustees, employees of the Fund, the Adviser, the Distributor and their affiliates, by employees of a financial intermediary that sells Shares according to a sales agreement with the Distributor, by the immediate family members of the above persons and by trusts, pension or profit-sharing plans for the above persons; |
■ | purchased through a program offered by a Financial Intermediary that provides for the purchase of Shares without imposition of a sales charge (for example, a wrap account, self-directed brokerage account, retirement or other fee-based program offered by the Financial Intermediary) and where the Financial Intermediary has agreed with the Distributor not to receive an advance commission on purchases under such program; |
■ | purchased with reinvested dividends or capital gains; |
■ | redeemed by the Fund when it closes an account for not meeting the minimum balance requirements |
■ | purchased pursuant to the exchange privilege, if the Shares were held for the applicable CDSC holding period (the holding period on the Shares purchased in the exchange will include the holding period of the Shares sold in the exchange); |
■ | purchased in the amount of $1 million or more and redeemed within 24 months of purchase if the Shares were originally purchased through a program offered by a Financial Intermediary that provides for the purchase of Shares without imposition of a sales charge (for example, a wrap account, self-directed brokerage account, retirement, or other fee-based program offered by the Financial Intermediary) and where the Financial Intermediary has agreed with the principal underwriter not to receive an advanced commission on purchases under such program; or |
■ | which are qualifying redemptions of the B class under a Systematic Withdrawal Program. |
A: | |
Purchase Amount |
Dealer Reallowance
as a Percentage of Public Offering Price |
Less than $50,000 | 5.00% |
$50,000 but less than $100,000 | 4.00% |
$100,000 but less than $250,000 | 3.25% |
$250,000 but less than $500,000 | 2.25% |
$500,000 but less than $1 million | 1.80% |
$1 million or greater | 0.00% |
A (for purchases over $1 million): | |
Purchase Amount |
Advance Commission
as a Percentage of Public Offering Price |
First $1 million - $5 million | 0.75% |
Next $5 million - $20 million | 0.50% |
Over $20 million | 0.25% |
C: | |
Advance Commission
as a Percentage of Public Offering Price |
|
All Purchase Amounts | 1.00% |
■ | Establish an account with the financial intermediary; and |
■ | Submit your purchase order to the financial intermediary before the end of regular trading on the NYSE (normally 4:00 p.m. Eastern time). |
■ | Establish your account with the Fund by submitting a completed New Account Form; and |
■ | Send your payment to the Fund by Federal Reserve wire or check. |
■ | ensure that the account registrations are identical; |
■ | meet any applicable minimum initial investment requirements; and |
■ | receive a prospectus for the fund into which you wish to exchange. |
■ | through a financial intermediary if you purchased Shares through a financial intermediary; or |
■ | directly from the Fund if you purchased Shares directly from the Fund. |
■ | Fund name and Share class, account number and account registration; |
■ | amount to be redeemed or exchanged; |
■ | signatures of all shareholders exactly as registered; and |
■ | if exchanging , the Fund name and Share class, account number and account registration into which you are exchanging. |
■ | your redemption will be sent to an address other than the address of record; |
■ | your redemption will be sent to an address of record that was changed within the last 30 days; |
■ | a redemption is payable to someone other than the shareholder(s) of record; or |
■ | transferring into another fund with a different shareholder registration. |
■ | An electronic transfer to your account at a financial institution that is an ACH member; or |
■ | Wire payment to your account at a domestic commercial bank that is a Federal Reserve System member. |
■ | to allow your purchase to clear (as discussed below); |
■ | during periods of market volatility; |
■ | when a shareholder's trade activity or amount adversely impacts the Fund's ability to manage its assets; or |
■ | during any period when the Federal Reserve wire or applicable Federal Reserve banks are closed, other than customary weekend and holiday closings. |
■ | when the NYSE is closed, other than customary weekend and holiday closings; |
■ | when trading on the NYSE is restricted, as determined by the SEC; or |
■ | in which an emergency exists, as determined by the SEC, so that disposal of the Fund's investments or determination of its NAV is not reasonably practicable. |
■ | ensure that the account registrations are identical; |
■ | meet any applicable minimum initial investment requirements; and |
■ | receive a prospectus for the fund into which you wish to exchange. |
■ | you redeem 12% or less of your account value in a single year; |
■ | you reinvest all dividends and capital gains distributions; |
■ | your account has at least a $10,000 balance when you establish the SWP. (You cannot aggregate multiple B class accounts to meet this minimum balance.); and |
■ | for all B class accounts established on or after August 2, 2010, the minimum SWP redemption amount is $50 per transaction, per fund, including transactions that qualify for a CDSC waiver as outlined in this Prospectus. |
Year Ended October 31 | 2012 | 2011 | 2010 | 2009 | 2008 |
Net Asset Value, Beginning of Period | $23.24 | $24.36 | $17.85 | $15.19 | $28.16 |
Income From Investment Operations: | |||||
Net investment income (loss) | (0.26) 1 | (0.29) 1 | (0.05) 1 | (0.09) 1 | (0.17) 1 |
Net realized and unrealized gain (loss) on investments, short sales and foreign currency transactions | 3.94 | (0.83) | 6.56 | 2.75 | (11.95) |
TOTAL FROM INVESTMENT OPERATIONS | 3.68 | (1.12) | 6.51 | 2.66 | (12.12) |
Less Distributions: | |||||
Distributions from net realized gain on investments, short sales and foreign currency transactions | (1.66) | — | — | — | (0.85) |
Net Asset Value, End of Period | $25.26 | $23.24 | $24.36 | $17.85 | $15.19 |
Total Return 2 | 17.00% | (4.60)% | 36.47% | 17.51% | (44.29)% |
Ratios to Average Net Assets: | |||||
Net expenses | 1.95% 3 | 1.95% | 1.95% | 1.95% 3 | 1.95% 3 |
Net expenses excluding dividends and other expenses related to short sales | 1.95% | 1.95% | 1.95% | 1.95% | 1.95% |
Net investment income (loss) | (1.09)% | (1.15)% | (0.24)% | (0.58)% | (0.77)% |
Expense waiver/reimbursement 4 | 0.35% | 0.36% | 0.36% | 0.38% | 0.28% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $525,581 | $687,567 | $919,029 | $709,757 | $543,187 |
Portfolio turnover | 44% | 55% | 68% | 90% | 58% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
3 | The net expense ratio is calculated without reduction for expense offset arrangements. The net expense ratios are 1.95%, 1.95% and 1.95% for the years ended October 31, 2012, 2009 and 2008, respectively, after taking into account these expense reductions. |
4 | This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above. |
Year Ended October 31 | 2012 | 2011 | 2010 | 2009 | 2008 |
Net Asset Value, Beginning of Period | $22.14 | $23.34 | $17.19 | $14.71 | $27.45 |
Income From Investment Operations: | |||||
Net investment income (loss) | (0.37) 1 | (0.41) 1 | (0.16) 1 | (0.17) 1 | (0.29) 1 |
Net realized and unrealized gain (loss) on investments, short sales and foreign currency transactions | 3.73 | (0.79) | 6.31 | 2.65 | (11.60) |
TOTAL FROM INVESTMENT OPERATIONS | 3.36 | (1.20) | 6.15 | 2.48 | (11.89) |
Less Distributions: | |||||
Distributions from net realized gain on investments, short sales and foreign currency transactions | (1.66) | — | — | — | (0.85) |
Net Asset Value, End of Period | $23.84 | $22.14 | $23.34 | $17.19 | $14.71 |
Total Return 2 | 16.36% | (5.14)% | 35.78% | 16.86% | (44.61)% |
Ratios to Average Net Assets: | |||||
Net expenses | 2.50% 3 | 2.50% | 2.50% | 2.50% 3 | 2.50% 3 |
Net expenses excluding dividends and other expenses related to short sales | 2.50% | 2.50% | 2.50% | 2.50% | 2.50% |
Net investment income (loss) | (1.64)% | (1.69)% | (0.82)% | (1.11)% | (1.35)% |
Expense waiver/reimbursement 4 | 0.35% | 0.32% | 0.33% | 0.36% | 0.28% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $42,298 | $61,010 | $82,726 | $76,876 | $78,150 |
Portfolio turnover | 44% | 55% | 68% | 90% | 58% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
3 | The net expense ratio is calculated without reduction for expense offset arrangements. The net expense ratios are 2.50%, 2.50% and 2.50% for the years ended October 31, 2012, 2009 and 2008, respectively, after taking into account these expense reductions. |
4 | This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above. |
Year Ended October 31 | 2012 | 2011 | 2010 | 2009 | 2008 |
Net Asset Value, Beginning of Period | $22.14 | $23.34 | $17.19 | $14.71 | $27.45 |
Income From Investment Operations: | |||||
Net investment income (loss) | (0.38) 1 | (0.41) 1 | (0.16) 1 | (0.17) 1 | (0.29) 1 |
Net realized and unrealized gain (loss) on investments, short sales and foreign currency transactions | 3.74 | (0.79) | 6.31 | 2.65 | (11.60) |
TOTAL FROM INVESTMENT OPERATIONS | 3.36 | (1.20) | 6.15 | 2.48 | (11.89) |
Less Distributions: | |||||
Distributions from net realized gain on investments, short sales and foreign currency transactions | (1.66) | — | — | — | (0.85) |
Net Asset Value, End of Period | $23.84 | $22.14 | $23.34 | $17.19 | $14.71 |
Total Return 2 | 16.36% | (5.14)% | 35.78% | 16.86% | (44.61)% |
Ratios to Average Net Assets: | |||||
Net expenses | 2.50% 3 | 2.50% | 2.50% | 2.50% 3 | 2.50% 3 |
Net expenses excluding dividends and other expenses related to short sales | 2.50% | 2.50% | 2.50% | 2.50% | 2.50% |
Net investment income (loss) | (1.65)% | (1.68)% | (0.80)% | (1.12)% | (1.34)% |
Expense waiver/reimbursement 4 | 0.27% | 0.28% | 0.29% | 0.34% | 0.28% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $160,295 | $172,922 | $208,270 | $175,955 | $175,301 |
Portfolio turnover | 44% | 55% | 68% | 90% | 58% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
3 | The net expense ratio is calculated without reduction for expense offset arrangements. The net expense ratios are 2.50%, 2.50% and 2.50% for the years ended October 31, 2012, 2009 and 2008, respectively, after taking into account these expense reductions. |
4 | This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above. |
Year Ended October 31 | 2012 | 2011 | 2010 | 2009 | 2008 |
Net Asset Value, Beginning of Period | $23.24 | $24.36 | $17.85 | $15.19 | $28.16 |
Income From Investment Operations: | |||||
Net investment income (loss) | (0.27) 1 | (0.29) 1 | (0.04) 1 | (0.09) 1 | (0.16) 1 |
Net realized and unrealized gain (loss) on investments, short sales and foreign currency transactions | 3.95 | (0.83) | 6.55 | 2.75 | (11.96) |
TOTAL FROM INVESTMENT OPERATIONS | 3.68 | (1.12) | 6.51 | 2.66 | (12.12) |
Less Distributions: | |||||
Distributions from net realized gain on investments, short sales and foreign currency transactions | (1.66) | — | — | — | (0.85) |
Net Asset Value, End of Period | $25.26 | $23.24 | $24.36 | $17.85 | $15.19 |
Total Return 2 | 17.00% | (4.60)% | 36.47% | 17.51% | (44.29)% |
Ratios to Average Net Assets: | |||||
Net expenses | 1.95% 3 | 1.95% | 1.95% | 1.95% 3 | 1.95% 3 |
Net expenses excluding dividends and other expenses related to short sales | 1.95% | 1.95% | 1.95% | 1.95% | 1.95% |
Net investment income (loss) | (1.10)% | (1.14)% | (0.21)% | (0.58)% | (0.73)% |
Expense waiver/reimbursement 4 | 0.44% | 0.45% | 0.45% | 0.49% | 0.46% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $31,485 | $27,715 | $35,515 | $25,955 | $17.665 |
Portfolio turnover | 44% | 55% | 68% | 90% | 58% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value. |
3 | The net expense ratio is calculated without reduction for expense offset arrangements. The net expense ratios are 1.95%, 1.95% and 1.95% for the years ended October 31, 2012, 2009 and 2008, respectively, after taking into account these expense reductions. |
4 | This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above. |
FEDERATED KAUFMANN SMALL CAP FUND - A CLASS | |||||
ANNUAL EXPENSE RATIO: 2.31% | |||||
MAXIMUM FRONT-END SALES CHARGE: 5.50% | |||||
Year |
Hypothetical
Beginning Investment |
Hypothetical
Performance Earnings |
Investment
After Returns |
Hypothetical
Expenses |
Hypothetical
Ending Investment |
1 | $10,000.00 | $472.50 | $9,922.50 | $771.23 | $9,704.21 |
2 | $9,704.21 | $485.21 | $10,189.42 | $227.18 | $9,965.25 |
3 | $9,965.25 | $498.26 | $10,463.51 | $233.29 | $10,233.32 |
4 | $10,233.32 | $511.67 | $10,744.99 | $239.57 | $10,508.60 |
5 | $10,508.60 | $525.43 | $11,034.03 | $246.01 | $10,791.28 |
6 | $10,791.28 | $539.56 | $11,330.84 | $252.63 | $11,081.57 |
7 | $11,081.57 | $554.08 | $11,635.65 | $259.43 | $11,379.66 |
8 | $11,379.66 | $568.98 | $11,948.64 | $266.41 | $11,685.77 |
9 | $11,685.77 | $584.29 | $12,270.06 | $273.57 | $12,000.12 |
10 | $12,000.12 | $600.01 | $12,600.13 | $280.93 | $12,322.92 |
Cumulative | $5,339.99 | $3,050.25 |
FEDERATED KAUFMANN SMALL CAP FUND - B CLASS | |||||
ANNUAL EXPENSE RATIO: 2.86% | |||||
MAXIMUM FRONT-END SALES CHARGE: NONE | |||||
Year |
Hypothetical
Beginning Investment |
Hypothetical
Performance Earnings |
Investment
After Returns |
Hypothetical
Expenses |
Hypothetical
Ending Investment |
1 | $10,000.00 | $500.00 | $10,500.00 | $289.06 | $10,214.00 |
2 | $10,214.00 | $510.70 | $10,724.70 | $295.25 | $10,432.58 |
3 | $10,432.58 | $521.63 | $10,954.21 | $301.56 | $10,655.84 |
4 | $10,655.84 | $532.79 | $11,188.63 | $308.02 | $10,883.87 |
5 | $10,883.87 | $544.19 | $11,428.06 | $314.61 | $11,116.78 |
6 | $11,116.78 | $555.84 | $11,672.62 | $321.34 | $11,354.68 |
7 | $11,354.68 | $567.73 | $11,922.41 | $328.22 | $11,597.67 |
8 | $11,597.67 | $579.88 | $12,177.55 | $335.24 | $11,845.86 |
Converts from Class B to Class A | Annual Expense Ratio: 2.31% | ||||
9 | $11,845.86 | $592.29 | $12,438.15 | $277.32 | $12,164.51 |
10 | $12,164.51 | $608.23 | $12,772.74 | $284.78 | $12,491.74 |
Cumulative | $5,513.28 | $3,055.40 |
FEDERATED KAUFMANN SMALL CAP FUND - C CLASS | |||||
ANNUAL EXPENSE RATIO: 2.78% | |||||
MAXIMUM FRONT-END SALES CHARGE: NONE | |||||
Year |
Hypothetical
Beginning Investment |
Hypothetical
Performance Earnings |
Investment
After Returns |
Hypothetical
Expenses |
Hypothetical
Ending Investment |
1 | $10,000.00 | $500.00 | $10,500.00 | $281.09 | $10,222.00 |
2 | $10,222.00 | $511.10 | $10,733.10 | $287.33 | $10,448.93 |
3 | $10,448.93 | $522.45 | $10,971.38 | $293.70 | $10,680.90 |
4 | $10,680.90 | $534.05 | $11,214.95 | $300.22 | $10,918.02 |
5 | $10,918.02 | $545.90 | $11,463.92 | $306.89 | $11,160.40 |
6 | $11,160.40 | $558.02 | $11,718.42 | $313.70 | $11,408.16 |
7 | $11,408.16 | $570.41 | $11,978.57 | $320.67 | $11,661.42 |
8 | $11,661.42 | $583.07 | $12,244.49 | $327.79 | $11,920.30 |
9 | $11,920.30 | $596.02 | $12,516.32 | $335.06 | $12,184.93 |
10 | $12,184.93 | $609.25 | $12,794.18 | $342.50 | $12,455.44 |
Cumulative | $5,530.27 | $3,108.95 |
FEDERATED KAUFMANN SMALL CAP FUND - R CLASS | |||||
ANNUAL EXPENSE RATIO: 2.40% | |||||
MAXIMUM FRONT-END SALES CHARGE: NONE | |||||
Year |
Hypothetical
Beginning Investment |
Hypothetical
Performance Earnings |
Investment
After Returns |
Hypothetical
Expenses |
Hypothetical
Ending Investment |
1 | $10,000.00 | $500.00 | $10,500.00 | $243.12 | $10,260.00 |
2 | $10,260.00 | $513.00 | $10,773.00 | $249.44 | $10,526.76 |
3 | $10,526.76 | $526.34 | $11,053.10 | $255.93 | $10,800.46 |
4 | $10,800.46 | $540.02 | $11,340.48 | $262.58 | $11,081.27 |
5 | $11,081.27 | $554.06 | $11,635.33 | $269.41 | $11,369.38 |
6 | $11,369.38 | $568.47 | $11,937.85 | $276.41 | $11,664.98 |
7 | $11,664.98 | $583.25 | $12,248.23 | $283.60 | $11,968.27 |
8 | $11,968.27 | $598.41 | $12,566.68 | $290.97 | $12,279.45 |
9 | $12,279.45 | $613.97 | $12,893.42 | $298.54 | $12,598.72 |
10 | $12,598.72 | $629.94 | $13,228.66 | $306.30 | $12,926.29 |
Cumulative | $5,627.46 | $2,736.30 |
Share Class | Ticker |
A | FMAAX |
B | FMBBX |
C | FMRCX |
Institutional | FMIIX |
Shareholder Fees (fees paid directly from your investment) | A | B | C | IS |
Maximum Sales Charge (Load) Imposed on
Purchases (as a percentage of
offering price)
|
5.50% | None | None | None |
Maximum Deferred Sales Charge (Load)
(as a percentage of original purchase price or redemption proceeds,
as applicable)
|
0.00% | 5.50% | 1.00% | None |
Maximum Sales Charge (Load) Imposed on
Reinvested Dividends (and other Distributions) (as a percentage of
offering price)
|
None | None | None | None |
Redemption Fee (as a percentage of
amount redeemed,
if applicable)
|
None | None | None | None |
Exchange Fee
|
None | None | None | None |
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) | ||||
Management Fee
|
0.75% | 0.75% | 0.75% | 0.75% |
Distribution (12b-1) Fee
|
0.05% | 0.75% | 0.75% | None |
Other Expenses: | ||||
Dividends and Other Expenses Related to
Short Sales
|
0.05% | 0.05% | 0. 05% | 0. 05% |
Other
Operating Expenses
|
0.59% | 0.59% | 0.59% | 0.34% |
Acquired Fund Fees
and Expenses
|
0.25% | 0.25% | 0.25% | 0.25% |
Total Annual Fund
Operating Expenses
|
1.69% | 2.39% | 2.39% | 1.39% |
Fee Waivers
and/or Expense Reimbursements
1
|
0.15% | 0.10% | 0.10% | 0.10% |
Total Annual Fund Operating Expenses
After Fee Waivers
and/or
Expense Reimbursements
|
1.54% | 2.29% | 2.29% | 1.29% |
1 | Total Annual Fund Operating Expenses have been restated to reflect an anticipated increase in Dividends and Other Expenses Related to Short Sales and in Acquired Fund Fees and Expenses for the fiscal year ending October 31, 2013, relative to the actual expenses for the fiscal year ended October 31, 2012. The Adviser and its affiliates have voluntarily agreed to waive their fees and/or reimburse expenses so that the total annual fund operating expenses (excluding Acquired Fund Fees and Expenses and Dividends and Other Expenses Related to Short Sales) paid by the Fund's A class, B class, C class and IS class (after the voluntary waivers and/or reimbursements) will not exceed 1.24%, 1.99%, 1.99% and 0.99% (the “Fee Limit”), respectively, up to but not including the later of (the “Termination Date”): (a) January 1, 2014; or (b) the date of the Fund's next effective Prospectus. While the Adviser and its affiliates currently do not anticipate terminating or increasing these arrangements prior to the Termination Date, these arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the agreement of the Fund's Board of Trustees. |
■ | Stock Market Risk. The value of equity securities in the Fund's portfolio will fluctuate and, as a result, the Fund's Share price may decline suddenly or over a sustained period of time. |
■ | Risk Relating to Investing for Value. The Fund uses a “value” style of investing and, as a result, the Fund's Share price may lag that of other funds using a different investment style. |
■ | Risk of Foreign Investing. Because the Fund invests in securities issued by foreign companies, the Fund's Share price may be more affected by foreign economic and political conditions, taxation policies and accounting and auditing standards than would otherwise be the case. |
■ | Risk of Investing in ADRs and Domestically Traded Securities of Foreign Issuers. Because the Fund may invest in ADRs and other domestically traded securities of foreign companies, the Fund's Share price may be more affected by risks of foreign investing than would otherwise be the case. |
■ | Currency Risk. Exchange rates for currencies fluctuate daily. Foreign securities are normally denominated and traded in foreign currencies. As a result, the value of the Fund's foreign investments and the value of the Shares may be affected favorably or unfavorably by changes in currency exchange rates relative to the U.S. dollar. |
■ | Eurozone Related Risk. A number of countries in the European Union (EU) have experienced, and may continue to experience, severe economic and financial difficulties. Additional EU member countries may also fall subject to such difficulties. These events could negatively affect the value and liquidity of the Fund's investments in euro-denominated securities and derivatives contracts, securities of issuers located in the EU or with significant exposure to EU issuers or countries. |
■ | Risk of Investing in Emerging Market Countries. Securities issued or traded in emerging markets generally entail greater risks than securities issued or traded in developed markets. Emerging market economies may also experience more actual or perceived severe downturns (with corresponding currency devaluation) than developed economies. |
■ | Sector Risk. Because the Fund may allocate relatively more assets to certain industry sectors than others, the Fund's performance may be more susceptible to any developments which affect those sectors emphasized by the Fund. |
■ | Risk of Investing in Derivative Contracts and Hybrid Instruments. Derivative contracts and hybrid instruments involve risks different from, or possibly greater than, risks associated with investing directly in securities and other traditional investments. Specific risk issues related to the use of such contracts and instruments include valuation and tax issues, increased potential for losses and/or costs to the Fund, and a potential reduction in gains to the Fund. Each of these issues is described in greater detail in this Prospectus. Derivative contracts and hybrid instruments may also involve other risks described in this Prospectus or the Fund's Statement of Additional Information, such as stock market, interest rate, credit, currency, liquidity and leverage risks. |
■ | Risk of Investing in Commodities. Because the Fund may invest in instruments including ETFs, whose performance is linked to the price of an underlying commodity or commodity index, the Fund may be subject to the risks of investing in physical commodities. These types of risks include regulatory, economic and political developments, weather events and natural disasters, pestilence, market disruptions and the fact that commodity prices may have greater volatility than investments in traditional securities. |
■ | Risk of Investing in Gold Bullion. The Fund's investment in gold bullion could cause the Fund to fail to qualify as a regulated investment company (RIC) under Subchapter M of the Internal Revenue Code. It is the intent of the Fund to maintain its RIC status, and as such, the Fund will seek to manage its investment in gold bullion in an effort to continue to qualify as a RIC (for example, by altering the timing and/or amount of gold bullion transactions). However, there are no assurances it will be successful in doing so. Custodial services and other costs relating to investment in gold bullion are generally more expensive than those associated with investing in securities. The inability of the Fund to make intended purchases of gold bullion due to settlement problems could cause the Fund to not be fully protected against the loss of its assets or cause the Fund to miss attractive investment opportunities. |
■ | Interest Rate Risk. Prices of fixed-income securities generally fall when interest rates rise. Interest rate changes have a greater effect on the price of fixed-income securities with longer durations. Duration measures the price sensitivity of a fixed-income security to changes in interest rates. |
■ | Credit Risk. Credit risk is the possibility that an issuer will default on a security by failing to pay interest or principal when due. If an issuer defaults, the Fund will lose money. |
■ | Risk of Loss After Redemption. The Fund may also invest in trade finance loan instruments primarily by investing in: (1) other investment companies (which are not available for general investment by the public) that own those instruments, are advised by an affiliate of the Adviser and are structured as an extended payment fund; or (2) private investment funds that own those instruments. |
■ | Risk Associated with Noninvestment-Grade Securities. Securities rated below investment-grade, also known as junk bonds, generally entail greater economic, credit and liquidity risks than investment-grade securities. For example, their prices are more volatile, economic downturns and financial setbacks may affect their prices more negatively, and their trading market may be more limited. |
■ | Liquidity Risk. The securities in which the Fund invests may be less readily marketable and may be subject to greater fluctuation in price than other securities. Liquidity risk also refers to the possibility that the Fund may not be able to sell a security or close out a derivative contract when it wants to. |
■ | Risk Related to the Economy. Low-grade corporate bond returns are sensitive to changes in the economy. The value of the Fund's portfolio may decline in tandem with a drop in the overall value of the stock market based on negative developments in the U.S. and global economies. |
■ | Leverage Risk. Leverage risk is created when an investment, which includes, for example, an investment in a derivative contract, exposes the Fund to a level of risk that exceeds the amount invested. Changes in the value of such an investment magnify the Fund's risk of loss and potential for gain. |
■ | Exchange-Traded Funds Risk. An investment in an ETF generally presents the same primary risks as an investment in a conventional fund (i.e., one that is not exchange-traded) that has the same investment objectives, strategies and policies. The price of an ETF can fluctuate up or down, and the Fund could lose money investing in an ETF if the prices of the securities owned by the ETF go down. |
■ | Short Selling Risk. The Fund may enter into short sales which expose the Fund to the risks of short selling. Short sales involve borrowing a security from a lender which is then sold in the open market at a future date. The security is then repurchased by the Fund and returned to the lender. Short selling allows an investor to profit from declines in prices of securities. Short selling a security involves the risk that the security sold short will appreciate in value at the time of repurchase therefore creating a loss for the Fund. The Fund may incur expenses in selling securities short and such expenses are investment expenses of the Fund. |
■ | Technology Risk. Proprietary and third-party data and systems are utilized to support decision making for the Fund. Data imprecision, software or other technology malfunctions, programming inaccuracies and similar circumstances may impair the performance of these systems, which may negatively affect Fund performance. |
1 Year | 5 Years | 10 Years | |
A: | |||
Return Before Taxes | (3.87)% | (2.72)% | 1.98% |
Return After Taxes on Distributions | (4.05)% | (3.79)% | 0.81% |
Return After Taxes on Distributions and Sale of Fund Shares | (2.51)% | (2.81)% | 1.15% |
B: | |||
Return Before Taxes | (4.57)% | (2.69)% | 1.95% |
C: | |||
Return Before Taxes | (0.07)% | (2.36)% | 1.79% |
IS: | |||
Return Before Taxes | 1.88% | (1.40)% | 2.67% |
Merrill Lynch 91-Day Treasury Bill Index
1
(reflects no deduction for fees, expenses or taxes) |
0.10% | 1.49% | 1.95% |
Russell 3000 Value Index
2
(reflects no deduction for fees, expenses or taxes) |
(0.10)% | (2.58)% | 4.08% |
1 | The Merrill Lynch 91-Day Treasury Bill Index is an index tracking short-term U.S. government securities. |
2 | The Russell 3000 Value Index measures the performance of those Russell 3000 Index companies with lower price-to-book ratios and lower forecasted growth values. The stocks in this index are also members of either the Russell 1000 Value or the Russell 2000 Value indexes. |
■ | ETF's; |
■ | Commodities; |
■ | Derivative contracts or hybrid instruments; and |
■ | Investments which give the Fund exposure to the price movement of gold, silver or other precious metals. |
■ | seek to benefit from anticipated changes in the volatility of designated assets or instruments, such as indices, currencies and interest rates. (Volatility is a measure of the frequency and level of changes in the value of an asset or instrument without regard to the direction of such changes.); |
■ | obtain premiums from the sale of derivative contracts; |
■ | realize gains from trading a derivative contract; or |
■ | hedge against potential losses. For example, the Fund may buy put options on stock indices or individual stocks (even if the stocks are not held by the Fund) in an attempt to hedge against a decline in stock prices. |
■ | it is organized under the laws of, or has a principal office located in, another country; |
■ | the principal trading market for its securities is in another country; or |
■ | it (directly or through its consolidated subsidiaries) derived in its most current fiscal year at least 50% of its total assets, capitalization, gross revenue or profit from goods produced, services performed or sales made in another country. |
■ | Equity securities listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market. |
■ | Fixed-income securities acquired with remaining maturities greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Board of Trustees (“Board”). |
■ | Fixed-income securities acquired with remaining maturities of 60 days or less are valued at their cost (adjusted for the accretion of any discount or amortization of any premium). |
■ | Derivative contracts listed on exchanges are valued at their reported settlement or closing price, except that options are valued at the mean of closing bid and asked quotations. |
■ | Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Board. |
■ | With respect to securities traded principally in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures contracts; |
■ | Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; and |
■ | Announcements concerning matters such as acquisitions, recapitalizations or litigation developments or a natural disaster affecting the issuer's operations or regulatory changes or market developments affecting the issuer's industry. |
Minimum
Initial/Subsequent Investment Amounts 1 |
Maximum Sales Charges | ||
Shares Offered |
Front-End
Sales Charge 2 |
Contingent
Deferred Sales Charge 3 |
|
A | $1,500/$100 | 5.50% | 0.00% |
B | $1,500/$100 | None | 5.50% |
C | $1,500/$100 | None | 1.00% |
1 | The minimum initial and subsequent investment amounts for Individual Retirement Accounts (IRAs) are generally $250 and $100, respectively. There is no minimum initial or subsequent investment amount required for employer-sponsored retirement plans; however, such accounts remain subject to the Fund's policy on “Accounts with Low Balances” as discussed later in this Prospectus. Please see “By Systematic Investment Program” for applicable minimum investment. Financial intermediaries may impose higher or lower minimum investment requirements on their customers than those imposed by the Fund. |
To maximize your return and minimize the sales charges and marketing fees, purchases of the B class are generally limited to $100,000 and purchases of the C class are generally limited to $1,000,000. Purchases equal to or in excess of these limits may be made in the A class. If your Shares are held on the books of the Fund in the name of a financial intermediary, you may be subject to rules of your financial intermediary that differ from those of the Fund. See “Purchase Restrictions on B Class and C Class” below. After the B class has been held for eight years from the date of purchase, they will automatically convert to the A class. This conversion is a non-taxable event. | |
2 | Front-End Sales Charge is expressed as a percentage of public offering price. See “Sales Charge When You Purchase.” |
3 | See “Sales Charge When You Redeem.” |
A: | ||
Purchase Amount |
Sales Charge
as a Percentage of Public Offering Price |
Sales Charge
as a Percentage of NAV |
Less than $50,000 | 5.50% | 5.82% |
$50,000 but less than $100,000 | 4.50% | 4.71% |
$100,000 but less than $250,000 | 3.75% | 3.90% |
$250,000 but less than $500,000 | 2.50% | 2.56% |
$500,000 but less than $1 million | 2.00% | 2.04% |
$1 million or greater 1 | 0.00% | 0.00% |
1 | A contingent deferred sales charge (CDSC) of 0.75% of the redemption amount applies to Shares originally purchased in an amount of $1 million or more and redeemed up to 24 months after purchase under certain investment programs where a financial intermediary received an advance payment on the transaction. CDSC exceptions may apply, See “Sales Charge When You Redeem.” |
■ | Purchasing the A class in greater quantities to reduce the applicable sales charge; |
■ | Combining concurrent purchases of and/or current investments in the A class, B class, C class, F class and R class of any Federated fund made or held by Qualifying Accounts; the purchase amount used in determining the sales charge on your additional Share purchase will be calculated by multiplying the respective maximum public offering price times the number of the A class, B class, C class, F class and R class shares of any Federated fund currently held in Qualifying Accounts and adding the dollar amount of your current purchase; or |
■ | Signing a letter of intent to purchase a qualifying amount of the A class within 13 months. (Call your financial intermediary or the Fund for more information.) The Fund's custodian will hold Shares in escrow equal to the maximum applicable sales charge. If you complete the Letter of Intent, the Custodian will release the Shares in escrow to your account. If you do not fulfill the Letter of Intent, the Custodian will redeem the appropriate amount from the Shares held in escrow to pay the sales charges that were not applied to your purchases. |
■ | within 120 days of redeeming Shares of an equal or greater amount; |
■ | through a program offered by a Financial Intermediary that provides for the purchase of Shares without imposition of a sales charge (for example, a wrap account, self-directed brokerage account, retirement, or other fee-based program offered by the Financial Intermediary) and where the Financial Intermediary has agreed with the Distributor not to receive a dealer reallowance on purchases under such program; |
■ | with reinvested dividends or capital gains; |
■ | as a shareholder that originally became a shareholder of a Federated fund pursuant to the terms of an agreement and plan of reorganization which permits shareholders to acquire Shares at NAV; |
■ | as a Federated Life Member (Federated shareholders who originally were issued shares through the “Liberty Account,” which was an account for the Liberty Family of Funds on February 28, 1987, or who invested through an affinity group prior to August 1, 1987, into the Liberty Account) (A class only); |
■ | as a Trustee, employee or former employee of the Fund, the Adviser, the Distributor and their affiliates, an employee of any financial intermediary that sells Shares according to a sales agreement with the Distributor, an immediate family member of these individuals or a trust, pension or profit-sharing plan for these individuals; or |
■ | pursuant to the exchange privilege. |
■ | Shares that are not subject to a CDSC; and |
■ | Shares held the longest. (To determine the number of years your Shares have been held, include the time you held shares of other Federated funds that have been exchanged for Shares of this Fund.) |
■ | following the death of the last surviving shareholder on the account or the post-purchase disability of all registered shareholders, as defined in Section 72(m)(7) of the Internal Revenue Code of 1986 (the beneficiary on an account with a Transfer on Death registration is deemed the last surviving shareholder on the account); |
■ | representing minimum required distributions from an IRA or other retirement plan to a shareholder who has attained the age of 70 1 ∕ 2 ; |
■ | purchased by Trustees, employees of the Fund, the Adviser, the Distributor and their affiliates, by employees of a financial intermediary that sells Shares according to a sales agreement with the Distributor, by the immediate family members of the above persons and by trusts, pension or profit-sharing plans for the above persons; |
■ | purchased through a program offered by a Financial Intermediary that provides for the purchase of Shares without imposition of a sales charge (for example, a wrap account, self-directed brokerage account, retirement or other fee-based program offered by the Financial Intermediary) and where the Financial Intermediary has agreed with the Distributor not to receive an advance commission on purchases under such program; |
■ | purchased with reinvested dividends or capital gains; |
■ | redeemed by the Fund when it closes an account for not meeting the minimum balance requirements; or |
■ | purchased pursuant to the exchange privilege if the Shares were held for the applicable CDSC holding period (the holding period on the Shares purchased in the exchange will include the holding period of the Shares sold in the exchange). |
■ | purchased in the amount of $1 million or more and redeemed within 24 months of purchase if the Shares were originally purchased through a program offered by a Financial Intermediary that provides for the purchase of Shares without imposition of a sales charge (for example, a wrap account, self-directed brokerage account, retirement, or other fee-based program offered by the Financial Intermediary) and where the Financial Intermediary has agreed with the principal underwriter not to receive an advanced commission on purchases under such program. |
■ | which are qualifying redemptions of the B class under a Systematic Withdrawal Program. |
■ | An investor participating in a wrap program or other fee-based program sponsored by a financial intermediary; |
■ | An investor participating in a no-load network or platform sponsored by a financial intermediary where Federated has entered into an agreement with the intermediary; |
■ | A trustee/director, employee or former employee of the Fund, the Adviser, the Distributor and their affiliates; an immediate family member of these individuals or a trust, pension or profit-sharing plan for these individuals; |
■ | An employer-sponsored retirement plan; |
■ | A trust institution investing on behalf of its trust customers; |
■ | Additional sales to an investor (including a natural person) who owned the IS class of the Fund as of December 31, 2008; |
■ | An investor (including a natural person) who acquired the IS class of a Federated fund pursuant to the terms of an agreement and plan of reorganization which permits the investor to acquire such shares; and |
■ | In connection with an acquisition of an investment management or advisory business, or related investment services, products or assets, by Federated or its investment advisory subsidiaries, an investor (including a natural person) who: (1) becomes a client of an investment advisory subsidiary of Federated; or (2) is a shareholder or interest holder of a pooled investment vehicle or product that becomes advised or subadvised by a Federated investment advisory subsidiary as a result of such an acquisition other than as a result of a fund reorganization transaction pursuant to an agreement and plan of reorganization. |
■ | An investor, other than a natural person, purchasing the IS class directly from the Fund; and |
■ | In connection with an initial purchase of the IS class through an exchange, an investor (including a natural person) who owned the IS class of another Federated fund as of December 31, 2008. |
A: | |
Purchase Amount |
Dealer Reallowance
as a Percentage of Public Offering Price |
Less than $50,000 | 5.00% |
$50,000 but less than $100,000 | 4.00% |
$100,000 but less than $250,000 | 3.25% |
$250,000 but less than $500,000 | 2.25% |
$500,000 but less than $1 million | 1.80% |
$1 million or greater | 0.00% |
A (for purchases over $1 million): | |
Purchase Amount |
Advance Commission
as a Percentage of Public Offering Price |
First $1 million - $5 million | 0.75% |
Next $5 million - $20 million | 0.50% |
Over $20 million | 0.25% |
C: | |
Advance Commission
as a Percentage of Public Offering Price |
|
All Purchase Amounts | 1.00% |
■ | Establish an account with the financial intermediary; and |
■ | Submit your purchase order to the financial intermediary before the end of regular trading on the NYSE (normally 4:00 p.m. Eastern time). |
■ | Establish your account with the Fund by submitting a completed New Account Form; and |
■ | Send your payment to the Fund by Federal Reserve wire or check. |
■ | ensure that the account registrations are identical; |
■ | meet any applicable minimum initial investment requirements; and |
■ | receive a prospectus for the fund into which you wish to exchange. |
■ | through a financial intermediary if you purchased Shares through a financial intermediary; or |
■ | directly from the Fund if you purchased Shares directly from the Fund. |
■ | Fund name and Share class, account number and account registration; |
■ | amount to be redeemed or exchanged; |
■ | signatures of all shareholders exactly as registered; and |
■ | if exchanging , the Fund name and Share class, account number and account registration into which you are exchanging. |
■ | your redemption will be sent to an address other than the address of record; |
■ | your redemption will be sent to an address of record that was changed within the last 30 days; |
■ | a redemption is payable to someone other than the shareholder(s) of record; or |
■ | transferring into another fund with a different shareholder registration. |
■ | An electronic transfer to your account at a financial institution that is an ACH member; or |
■ | Wire payment to your account at a domestic commercial bank that is a Federal Reserve System member. |
■ | to allow your purchase to clear (as discussed below); |
■ | during periods of market volatility; |
■ | when a shareholder's trade activity or amount adversely impacts the Fund's ability to manage its assets; or |
■ | during any period when the Federal Reserve wire or applicable Federal Reserve banks are closed, other than customary weekend and holiday closings. |
■ | when the NYSE is closed, other than customary weekend and holiday closings; |
■ | when trading on the NYSE is restricted, as determined by the SEC; or |
■ | in which an emergency exists, as determined by the SEC, so that disposal of the Fund's investments or determination of its NAV is not reasonably practicable. |
■ | ensure that the account registrations are identical; |
■ | meet any applicable minimum initial investment requirements; and |
■ | receive a prospectus for the fund into which you wish to exchange. |
■ | you redeem 12% or less of your account value in a single year; |
■ | you reinvest all dividends and capital gains distributions; |
■ | your account has at least a $10,000 balance when you establish the SWP. (You cannot aggregate multiple B class accounts to meet this minimum balance.); and |
■ | for all B class accounts established on or after August 2, 2010, the minimum SWP redemption amount is $50 per transaction, per fund, including transactions that qualify for a CDSC waiver as outlined in this Prospectus. |
Year Ended October 31 | 2012 | 2011 | 2010 | 2009 | 2008 |
Net Asset Value, Beginning of Period | $9.89 | $10.10 | $11.09 | $10.26 | $12.22 |
Income From Investment Operations: | |||||
Net investment income (loss) 1 | (0.04) | (0.04) | 0.03 | 0.24 | 0.42 |
Net realized and unrealized gain (loss) on investments, short sales, futures contracts, written options, certain receivables and foreign currency transactions | (0.30) | 0.21 | (0.77) | 1.05 | (1.83) |
TOTAL FROM INVESTMENT OPERATIONS | (0.34) | 0.17 | (0.74) | 1.29 | (1.41) |
Less Distributions: | |||||
Distributions from net investment income | (0.05) | (0.38) | (0.25) | (0.46) | (0.55) |
Net Asset Value, End of Period | $9.50 | $9.89 | $10.10 | $11.09 | $10.26 |
Total Return 2 | (3.41)% | 1.74% | (6.67)% | 12.88% | (12.18)% |
Ratios to Average Net Assets: | |||||
Net expenses | 1.26% | 1.26% 3 | 1.89% 3 | 1.39% 3 | 1.20% 3 |
Net expenses excluding dividends and other expenses related to short sales | 1.24% | 1.24% 3 | 1.24% 3 | 1.24% 3 | 1.20% 3 |
Net investment income (loss) | (0.45)% | (0.41)% | 0.27% | 2.23% | 3.46% |
Expense waiver/reimbursement 4 | 0.10% | 0.08% | 0.05% | 0.07% | 0.04% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $175,186 | $257,503 | $464,884 | $835,964 | $721,632 |
Portfolio turnover | 182% | 129% | 180% | 191% | 255% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
3 | The net expense ratio is calculated without reduction for expense offset arrangements. The net expense ratios are 1.26%, 1.89%, 1.39% and 1.20% for the years ended October 31, 2011, 2010, 2009 and 2008, respectively, after taking into account these expense reductions. The net expense ratios excluding dividends and other expenses related to short sales are also calculated without reduction for these expense offset arrangements. |
4 | This expense decrease is reflected in both the net expense and net investment income (loss) ratios shown above. |
Year Ended October 31 | 2012 | 2011 | 2010 | 2009 | 2008 |
Net Asset Value, Beginning of Period | $9.82 | $9.99 | $10.99 | $10.21 | $12.16 |
Income From Investment Operations: | |||||
Net investment income (loss) 1 | (0.12) | (0.11) | (0.05) | 0.16 | 0.33 |
Net realized and unrealized gain (loss) on investments, short sales, futures contracts, written options, certain receivables and foreign currency transactions | (0.29) | 0.21 | (0.76) | 1.04 | (1.82) |
TOTAL FROM INVESTMENT OPERATIONS | (0.41) | 0.10 | (0.81) | 1.20 | (1.49) |
Less Distributions: | |||||
Distributions from net investment income | — | (0.27) | (0.19) | (0.42) | (0.46) |
Net Asset Value, End of Period | $9.41 | $9.82 | $9.99 | $10.99 | $10.21 |
Total Return 2 | (4.18)% | 1.08% | (7.44)% | 12.01% | (12.82)% |
Ratios to Average Net Assets: | |||||
Net expenses | 2.01% | 2.01% 3 | 2.64% 3 | 2.14% 3 | 1.95% 3 |
Net expenses excluding dividends and other expenses related to short sales | 1.99% | 1.99% 3 | 1.99% 3 | 1.99% 3 | 1.95% 3 |
Net investment income (loss) | (1.21)% | (1.15)% | (0.50)% | 1.54% | 2.69% |
Expense waiver/reimbursement 4 | 0.10% | 0.09% | 0.05% | 0.07% | 0.04% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $34,029 | $60,018 | $103,483 | $166,561 | $197,694 |
Portfolio turnover | 182% | 129% | 180% | 191% | 255% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
3 | The net expense ratio is calculated without reduction for expense offset arrangements. The net expense ratios are 2.01%, 2.64%, 2.13% and 1.95% for the years ended October 31, 2011, 2010, 2009 and 2008, respectively, after taking into account these expense reductions. The net expense ratios excluding dividends and other expenses related to short sales are also calculated without reduction for these expense offset arrangements. |
4 | This expense decrease is reflected in both the net expense and net investment income (loss) ratios shown above. |
Year Ended October 31 | 2012 | 2011 | 2010 | 2009 | 2008 |
Net Asset Value, Beginning of Period | $9.77 | $9.96 | $10.96 | $10.19 | $12.13 |
Income From Investment Operations: | |||||
Net investment income (loss) 1 | (0.11) | (0.11) | (0.05) | 0.16 | 0.33 |
Net realized and unrealized gain (loss) on investments, short sales, futures contracts, written options, certain receivables and foreign currency transactions | (0.29) | 0.20 | (0.76) | 1.03 | (1.81) |
TOTAL FROM INVESTMENT OPERATIONS | (0.40) | 0.09 | (0.81) | 1.19 | (1.48) |
Less Distributions: | |||||
Distributions from net investment income | — | (0.28) | (0.19) | (0.42) | (0.46) |
Net Asset Value, End of Period | $9.37 | $9.77 | $9.96 | $10.96 | $10.19 |
Total Return 2 | (4.09)% | 0.98% | (7.38)% | 11.96% | (12.77)% |
Ratios to Average Net Assets: | |||||
Net expenses | 2.01% | 2.01% 3 | 2.63% 3 | 2.14% 3 | 1.95% 3 |
Net expenses excluding dividends and other expenses related to short sales | 1.99% | 1.99% 3 | 1.99% 3 | 1.99% 3 | 1.95% 3 |
Net investment income (loss) | (1.19)% | (1.16)% | (0.50)% | 1.50% | 2.70% |
Expense waiver/reimbursement 4 | 0.10% | 0.08% | 0.05% | 0.07% | 0.04% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $147,819 | $207,932 | $365,433 | $489,260 | $445,425 |
Portfolio turnover | 182% | 129% | 180% | 191% | 255% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
3 | The net expense ratio is calculated without reduction for expense offset arrangements. The net expense ratios are 2.01%, 2.63%, 2.13% and 1.95% for the years ended October 31, 2011, 2010, 2009 and 2008, respectively, after taking into account these expense reductions. The net expense ratios excluding dividends and other expenses related to short sales are also calculated without reduction for these expense offset arrangements. |
4 | This expense decrease is reflected in both the net expense and net investment income (loss) ratios shown above. |
Year Ended October 31 | 2012 | 2011 | 2010 | 2009 | 2008 |
Net Asset Value, Beginning of Period | $9.95 | $10.15 | $11.14 | $10.29 | $12.23 |
Income From Investment Operations: | |||||
Net investment income (loss) 1 | (0.02) | (0.02) | 0.03 | 0.23 | 0.50 |
Net realized and unrealized gain (loss) on investments, short sales, futures contracts, written options, certain receivables and foreign currency transactions | (0.29) | 0.22 | (0.75) | 1.08 | (1.88) |
TOTAL FROM INVESTMENT OPERATIONS | (0.31) | 0.20 | (0.72) | 1.31 | (1.38) |
Less Distributions: | |||||
Distributions from net investment income | (0.08) | (0.40) | (0.27) | (0.46) | (0.56) |
Net Asset Value, End of Period | $9.56 | $9.95 | $10.15 | $11.14 | $10.29 |
Total Return 2 | (3.11)% | 2.08% | (6.49)% | 13.12% | (11.95)% |
Ratios to Average Net Assets: | |||||
Net expenses | 1.01% | 1.01% 3 | 1.58% 3 | 1.22% 3 | 0.95% 3 |
Net expenses excluding dividends and other expenses related to short sales | 0.99% | 0.99% 3 | 0.99% 3 | 0.99% 3 | 0.95% 3 |
Net investment income (loss) | (0.20)% | (0.17)% | 0.30% | 2.05% | 4.62% |
Expense waiver/reimbursement 4 | 0.10% | 0.08% | 0.05% | 0.07% | 0.04% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $81,598 | $90,569 | $194,702 | $81,473 | $6,551 |
Portfolio turnover | 182% | 129% | 180% | 191% | 255% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value. |
3 | The net expense ratio is calculated without reduction for expense offset arrangements. The net expense ratios are 1.01%, 1.58%, 1.21% and 0.95% for the years ended October 31, 2011, 2010, 2009 and 2008, respectively, after taking into account these expense reductions. The net expense ratios excluding dividends and other expenses related to short sales are also calculated without reduction for these expense offset arrangements. |
4 | This expense decrease is reflected in both the net expense and net investment income (loss) ratios shown above. |
FEDERATED ABSOLUTE RETURN FUND - CLASS B SHARES | |||||
ANNUAL EXPENSE RATIO: 2.39% | |||||
MAXIMUM FRONT-END SALES CHARGE: NONE | |||||
Year |
Hypothetical
Beginning Investment |
Hypothetical
Performance Earnings |
Investment
After Returns |
Hypothetical
Expenses |
Hypothetical
Ending Investment |
1 | $10,000.00 | $500.00 | $10,500.00 | $242.12 | $10,261.00 |
2 | $10,261.00 | $513.05 | $10,774.05 | $248.44 | $10,528.81 |
3 | $10,528.81 | $526.44 | $11,055.25 | $254.92 | $10,803.61 |
4 | $10,803.61 | $540.18 | $11,343.79 | $261.58 | $11,085.58 |
5 | $11,085.58 | $554.28 | $11,639.86 | $268.40 | $11,374.91 |
6 | $11,374.91 | $568.75 | $11,943.66 | $275.41 | $11,671.80 |
7 | $11,671.80 | $583.59 | $12,255.39 | $282.60 | $11,976.43 |
8 | $11,976.43 | $598.82 | $12,575.25 | $289.97 | $12,289.01 |
Converts from Class B to Class A | Annual Expense Ratio: 1.69% | ||||
9 | $12,289.01 | $614.45 | $12,903.46 | $211.12 | $12,695.78 |
10 | $12,695.78 | $634.79 | $13,330.57 | $218.11 | $13,116.01 |
Cumulative | $5,634.35 | $2,552.67 |
FEDERATED ABSOLUTE RETURN FUND - CLASS C SHARES | |||||
ANNUAL EXPENSE RATIO: 2.39% | |||||
MAXIMUM FRONT-END SALES CHARGE: NONE | |||||
Year |
Hypothetical
Beginning Investment |
Hypothetical
Performance Earnings |
Investment
After Returns |
Hypothetical
Expenses |
Hypothetical
Ending Investment |
1 | $10,000.00 | $500.00 | $10,500.00 | $242.12 | $10,261.00 |
2 | $10,261.00 | $513.05 | $10,774.05 | $248.44 | $10,528.81 |
3 | $10,528.81 | $526.44 | $11,055.25 | $254.92 | $10,803.61 |
4 | $10,803.61 | $540.18 | $11,343.79 | $261.58 | $11,085.58 |
5 | $11,085.58 | $554.28 | $11,639.86 | $268.40 | $11,374.91 |
6 | $11,374.91 | $568.75 | $11,943.66 | $275.41 | $11,671.80 |
7 | $11,671.80 | $583.59 | $12,255.39 | $282.60 | $11,976.43 |
8 | $11,976.43 | $598.82 | $12,575.25 | $289.97 | $12,289.01 |
9 | $12,289.01 | $614.45 | $12,903.46 | $297.54 | $12,609.75 |
10 | $12,609.75 | $630.49 | $13,240.24 | $305.31 | $12,938.86 |
Cumulative | $5,630.05 | $2,726.29 |
FEDERATED ABSOLUTE RETURN FUND - IS CLASS | |||||
ANNUAL EXPENSE RATIO: 1.39% | |||||
MAXIMUM FRONT-END SALES CHARGE: NONE | |||||
Year |
Hypothetical
Beginning Investment |
Hypothetical
Performance Earnings |
Investment
After Returns |
Hypothetical
Expenses |
Hypothetical
Ending Investment |
1 | $10,000.00 | $500.00 | $10,500.00 | $141.51 | $10,361.00 |
2 | $10,361.00 | $518.05 | $10,879.05 | $146.62 | $10,735.03 |
3 | $10,735.03 | $536.75 | $11,271.78 | $151.91 | $11,122.56 |
4 | $11,122.56 | $556.13 | $11,678.69 | $157.39 | $11,524.08 |
5 | $11,524.08 | $576.20 | $12,100.28 | $163.08 | $11,940.10 |
6 | $11,940.10 | $597.01 | $12,537.11 | $168.96 | $12,371.14 |
7 | $12,371.14 | $618.56 | $12,989.70 | $175.06 | $12,817.74 |
8 | $12,817.74 | $640.89 | $13,458.63 | $181.38 | $13,280.46 |
9 | $13,280.46 | $664.02 | $13,944.48 | $187.93 | $13,759.88 |
10 | $13,759.88 | $687.99 | $14,447.87 | $194.71 | $14,256.61 |
Cumulative | $5,895.60 | $1,668.55 |
Share Class | Ticker |
A | SVAAX |
C | SVACX |
Institutional | SVAIX |
1 | The Adviser and its affiliates have voluntarily agreed to waive their fees and/or reimburse expenses so that the total annual fund operating expenses (excluding Acquired Fund Fees and Expenses) paid by the Fund's A, C and IS classes (after the voluntary waivers and/or reimbursements) will not exceed 1.05%, 1.80% and 0.80% (the “Fee Limit”), respectively, up to but not including the later of (the “Termination Date”): (a) January 1, 2014; or (b) the date of the Fund's next effective Prospectus. While the Adviser and its affiliates currently do not anticipate terminating or increasing these arrangements prior to the Termination Date, these arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the agreement of the Fund's Board of Trustees. |
■ | Stock Market Risk. The value of equity securities in the Fund's portfolio will fluctuate and, as a result, the Fund's Share price may decline suddenly or over a sustained period of time. |
■ | Risk Related to Investing for Value. Due to their relatively low valuations, value stocks are typically less volatile than growth stocks and more likely to pay higher dividends. The Fund's strategy contemplates investing in stocks focused on paying high dividends. Accordingly, the Fund's performance may lag behind the general market when dividend paying stocks are out of favor. |
■ | Risk of Foreign Investing. Because the Fund invests in securities issued by foreign companies, the Fund's Share price may be more affected by foreign economic and political conditions, taxation policies and accounting and auditing standards than would otherwise be the case. |
■ | Risk of Investing in ADRs and Domestically-Traded Securities of Foreign Issuers. Because the Fund may invest in American Depositary Receipts (ADRs) and other domestically-traded securities of foreign companies, the Fund's Share price may be more affected by foreign economic and political conditions, taxation policies and accounting and auditing standards than would otherwise be the case. |
■ | Custodial Services and Related Investment Costs. Custodial services and other costs relating to investment in international securities markets generally are more expensive than in the United States. Such markets have settlement and clearance procedures that differ from those in the United States. The inability of the Fund to make intended securities purchases due to settlement problems could cause the Fund to miss attractive investment opportunities. |
■ | Currency Risk. Exchange rates for currencies fluctuate daily. The combination of currency risk and stock market risk tends to make securities traded in foreign markets more volatile than securities traded exclusively in the United States. |
■ | Eurozone Related Risk. A number of countries in the European Union (EU) have experienced, and may continue to experience, severe economic and financial difficulties. Additional EU member countries may also fall subject to such difficulties. These events could negatively affect the value and liquidity of the Fund's investments in euro-denominated securities and derivatives contracts, securities of issuers located in the EU or with significant exposure to EU issuers or countries. |
■ | Sector Risk. Because the Fund may allocate relatively more assets to certain industry sectors than others, the Fund's performance may be more susceptible to any developments which affect those sectors emphasized by the Fund. |
■ | Liquidity Risk. The equity securities in which the Fund invests may be less readily marketable and may be subject to greater fluctuation in price than other securities. |
■ | Risks of Investing in Derivative Contracts. Derivative contracts involve risks different from, or possibly greater than, risks associated with investing directly in securities and other traditional investments. Specific risk issues related to the use of such contracts include valuation and tax issues, increased potential for losses and/or costs to the Fund, and a potential reduction in gains to the Fund. Each of these issues is described in greater detail in this Prospectus. Derivative contracts may also involve other risks described in this Prospectus or the Fund's Statement of Additional Information (SAI), such as stock market, interest rate, credit, currency, liquidity and leverage risks. |
■ | Technology Risk. Proprietary and third party data and systems are utilized to support decision making for the Fund. Data imprecision, software or other technology malfunctions, programming inaccuracies and similar circumstances may impair the performance of these systems, which may negatively affect Fund performance. |
1 Year | 5 Years |
Since
Inception 3/30/2005 |
|
A: | |||
Return Before Taxes | 8.08% | (1.60)% | 3.86% |
C: | |||
Return Before Taxes | 12.63% | (1.19)% | 4.00% |
IS: | |||
Return Before Taxes | 14.96% | (0.19)% | 5.03% |
Return After Taxes on Distributions | 13.36% | (1.24)% | 3.96% |
Return After Taxes on Distributions and Sale of Fund Shares | 9.66% | (0.47)% | 4.02% |
Standard & Poor's 500 Index
1
(reflects no deduction for fees, expenses or taxes) |
2.11% | (0.25)% | 3.05% |
Dow Jones Select Dividend Index
2
(reflects no deduction for fees, expenses or taxes) |
12.42% | (0.66)% | 1.05% |
1 | The Standard & Poor's 500 is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. |
2 | The Dow Jones Select Dividend Index is a dividend weighted index intended to represent the 100 stocks in the Dow Jones U.S. Total Market Index that have the highest indicated annual dividend yield. |
■ | dividend yield; |
■ | dividend growth; |
■ | strong financial condition; and |
■ | performance during periods of market weakness. |
■ | The dividend yield becomes inadequate. |
■ | The investment thesis deteriorates; |
■ | The stock's weighting in the portfolio exceeds internal guidelines; and |
■ | Diminished management commitment to the dividend. |
■ | it is organized under the laws of, or has a principal office located in, another country; |
■ | the principal trading market for its securities is in another country; or |
■ | it (directly or through its consolidated subsidiaries) derived in its most current fiscal year at least 50% of its total assets, capitalization, gross revenue or profit from goods produced, services performed or sales made in another country. |
■ | Equity securities listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market. |
■ | Derivative contracts listed on exchanges are valued at their reported settlement or closing price, except that options are valued at the mean of closing bid and asked quotations. |
■ | Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Board. |
■ | With respect to securities traded principally in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures contracts; |
■ | Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; and |
■ | Announcements concerning matters such as acquisitions, recapitalizations or litigation developments or a natural disaster affecting the issuer's operations or regulatory changes or market developments affecting the issuer's industry. |
Minimum
Initial/Subsequent Investment Amounts 1 |
Maximum Sales Charges | ||
Shares Offered |
Front-End
Sales Charge 2 |
Contingent
Deferred Sales Charge 3 |
|
A | $1,500/$100 | 5.50% | 0.00% |
C | $1,500/$100 | None | 1.00% |
1 | The minimum initial and subsequent investment amounts for Individual Retirement Accounts (IRAs) are generally $250 and $100, respectively. There is no minimum initial or subsequent investment amount required for employer-sponsored retirement plans; however, such accounts remain subject to the Fund's policy on “Accounts with Low Balances” as discussed later in this Prospectus. Please see “By Systematic Investment Program” for applicable minimum investment. Financial intermediaries may impose higher or lower minimum investment requirements on their customers than those imposed by the Fund. |
To maximize your return and minimize the sales charges and marketing fees, purchases of C class are generally limited to $1,000,000. Purchases equal to or in excess of these limits may be made in A class. If your Shares are held on the books of the Fund in the name of a financial intermediary, you may be subject to rules of your financial intermediary that differ from those of the Fund. See “Purchase Restrictions on C Class” below. | |
2 | Front-End Sales Charge is expressed as a percentage of public offering price. See “Sales Charge When You Purchase.” |
3 | See “Sales Charge When You Redeem.” |
A: | ||
Purchase Amount |
Sales Charge
as a Percentage of Public Offering Price |
Sales Charge
as a Percentage of NAV |
Less than $50,000 | 5.50% | 5.82% |
$50,000 but less than $100,000 | 4.50% | 4.71% |
$100,000 but less than $250,000 | 3.75% | 3.90% |
$250,000 but less than $500,000 | 2.50% | 2.56% |
$500,000 but less than $1 million | 2.00% | 2.04% |
$1 million or greater 1 | 0.00% | 0.00% |
1 | A contingent deferred sales charge (CDSC) of 0.75% of the redemption amount applies to Shares originally purchased in an amount of $1 million or more and redeemed up to 24 months after purchase under certain investment programs where a financial intermediary received an advance payment on the transaction. CDSC exceptions may apply, See “Sales Charge When You Redeem.” |
■ | Purchasing the A class in greater quantities to reduce the applicable sales charge; |
■ | Combining concurrent purchases of and/or current investments in the A class, B class, C class, F class and R class of any Federated fund made or held by Qualifying Accounts; the purchase amount used in determining the sales charge on your additional Share purchase will be calculated by multiplying the respective maximum public offering price times the number of the A class, B class, C class, F class and R class shares of any Federated fund currently held in Qualifying Accounts and adding the dollar amount of your current purchase; or |
■ | Signing a letter of intent to purchase a qualifying amount of the A class within 13 months. (Call your financial intermediary or the Fund for more information.) The Fund's custodian will hold Shares in escrow equal to the maximum applicable sales charge. If you complete the Letter of Intent, the Custodian will release the Shares in escrow to your account. If you do not fulfill the Letter of Intent, the Custodian will redeem the appropriate amount from the Shares held in escrow to pay the sales charges that were not applied to your purchases. |
■ | within 120 days of redeeming Shares of an equal or greater amount; |
■ | through a program offered by a Financial Intermediary that provides for the purchase of Shares without imposition of a sales charge (for example, a wrap account, self-directed brokerage account, retirement, or other fee-based program offered by the Financial Intermediary) and where the Financial Intermediary has agreed with the Distributor not to receive a dealer reallowance on purchases under such program; |
■ | with reinvested dividends or capital gains; |
■ | as a shareholder that originally became a shareholder of a Federated fund pursuant to the terms of an agreement and plan of reorganization which permits shareholders to acquire Shares at NAV; |
■ | as a Federated Life Member (Federated shareholders who originally were issued shares through the “Liberty Account,” which was an account for the Liberty Family of Funds on February 28, 1987, or who invested through an affinity group prior to August 1, 1987, into the Liberty Account) (A class only); |
■ | as a Trustee, employee or former employee of the Fund, the Adviser, the Distributor and their affiliates, an employee of any financial intermediary that sells Shares according to a sales agreement with the Distributor, an immediate family member of these individuals or a trust, pension or profit-sharing plan for these individuals; or |
■ | pursuant to the exchange privilege. |
■ | Shares that are not subject to a CDSC; and |
■ | Shares held the longest. (To determine the number of years your Shares have been held, include the time you held shares of other Federated funds that have been exchanged for Shares of this Fund.) |
A: | ||
If you make a purchase of the A class in the amount of $1 million or more and your financial intermediary received an advance commission on the sale, you will pay a 0.75% CDSC on any such Shares redeemed within 24 months of the purchase. | ||
C: | ||
You will pay a 1.00% CDSC if you redeem Shares within 12 months of the purchase date. |
■ | following the death of the last surviving shareholder on the account or the post-purchase disability of all registered shareholders, as defined in Section 72(m)(7) of the Internal Revenue Code of 1986 (the beneficiary on an account with a Transfer on Death registration is deemed the last surviving shareholder on the account); |
■ | representing minimum required distributions from an IRA or other retirement plan to a shareholder who has attained the age of 70 1 ∕ 2 ; |
■ | purchased by Trustees, employees of the Fund, the Adviser, the Distributor and their affiliates, by employees of a financial intermediary that sells Shares according to a sales agreement with the Distributor, by the immediate family members of the above persons and by trusts, pension or profit-sharing plans for the above persons; |
■ | purchased through a program offered by a Financial Intermediary that provides for the purchase of Shares without imposition of a sales charge (for example, a wrap account, self-directed brokerage account, retirement or other fee-based program offered by the Financial Intermediary) and where the Financial Intermediary has agreed with the Distributor not to receive an advance commission on purchases under such program; |
■ | purchased with reinvested dividends or capital gains; |
■ | redeemed by the Fund when it closes an account for not meeting the minimum balance requirements; |
■ | purchased pursuant to the exchange privilege if the Shares were held for the applicable CDSC holding period (the holding period on the Shares purchased in the exchange will include the holding period of the Shares sold in the exchange); or |
■ | purchased in the amount of $1 million or more and redeemed within 24 months of purchase if the Shares were originally purchased through a program offered by a Financial Intermediary that provides for the purchase of Shares without imposition of a sales charge (for example, a wrap account, self-directed brokerage account, retirement, or other fee-based program offered by the Financial Intermediary) and where the Financial Intermediary has agreed with the principal underwriter not to receive an advanced commission on purchases under such program. |
■ | An investor participating in a wrap program or other fee-based program sponsored by a financial intermediary; |
■ | An investor participating in a no-load network or platform sponsored by a financial intermediary where Federated has entered into an agreement with the intermediary; |
■ | A trustee/director, employee or former employee of the Fund, the Adviser, the Distributor and their affiliates; an immediate family member of these individuals or a trust, pension or profit-sharing plan for these individuals; |
■ | An employer-sponsored retirement plan; |
■ | A trust institution investing on behalf of its trust customers; |
■ | Additional sales to an investor (including a natural person) who owned the IS class of the Fund as of December 31, 2008; |
■ | An investor (including a natural person) who acquired the IS class of a Federated fund pursuant to the terms of an agreement and plan of reorganization which permits the investor to acquire such shares; and |
■ | In connection with an acquisition of an investment management or advisory business, or related investment services, products or assets, by Federated or its investment advisory subsidiaries, an investor (including a natural person) who: (1) becomes a client of an investment advisory subsidiary of Federated; or (2) is a shareholder or interest holder of a pooled investment vehicle or product that becomes advised or subadvised by a Federated investment advisory subsidiary as a result of such an acquisition other than as a result of a fund reorganization transaction pursuant to an agreement and plan of reorganization. |
■ | An investor, other than a natural person, purchasing the IS class directly from the Fund; and |
■ | In connection with an initial purchase of the IS class through an exchange, an investor (including a natural person) who owned the IS class of another Federated fund as of December 31, 2008. |
A: | |
Purchase Amount |
Dealer Reallowance
as a Percentage of Public Offering Price |
Less than $50,000 | 5.00% |
$50,000 but less than $100,000 | 4.00% |
$100,000 but less than $250,000 | 3.25% |
$250,000 but less than $500,000 | 2.25% |
$500,000 but less than $1 million | 1.80% |
$1 million or greater | 0.00% |
A (for purchases over $1 million): | |
Purchase Amount |
Advance Commission
as a Percentage of Public Offering Price |
First $1 million - $5 million | 0.75% |
Next $5 million - $20 million | 0.50% |
Over $20 million | 0.25% |
C: | |
Advance Commission
as a Percentage of Public Offering Price |
|
All Purchase Amounts | 1.00% |
■ | Establish an account with the financial intermediary; and |
■ | Submit your purchase order to the financial intermediary before the end of regular trading on the NYSE (normally 4:00 p.m. Eastern time). |
■ | Establish your account with the Fund by submitting a completed New Account Form; and |
■ | Send your payment to the Fund by Federal Reserve wire or check. |
■ | ensure that the account registrations are identical; |
■ | meet any applicable minimum initial investment requirements; and |
■ | receive a prospectus for the fund into which you wish to exchange. |
■ | through a financial intermediary if you purchased Shares through a financial intermediary; or |
■ | directly from the Fund if you purchased Shares directly from the Fund. |
■ | Fund name and Share class, account number and account registration; |
■ | amount to be redeemed or exchanged; |
■ | signatures of all shareholders exactly as registered; and |
■ | if exchanging , the Fund name and Share class, account number and account registration into which you are exchanging. |
■ | your redemption will be sent to an address other than the address of record; |
■ | your redemption will be sent to an address of record that was changed within the last 30 days; |
■ | a redemption is payable to someone other than the shareholder(s) of record; or |
■ | transferring into another fund with a different shareholder registration. |
■ | An electronic transfer to your account at a financial institution that is an ACH member; or |
■ | Wire payment to your account at a domestic commercial bank that is a Federal Reserve System member. |
■ | to allow your purchase to clear (as discussed below); |
■ | during periods of market volatility; |
■ | when a shareholder's trade activity or amount adversely impacts the Fund's ability to manage its assets; or |
■ | during any period when the Federal Reserve wire or applicable Federal Reserve banks are closed, other than customary weekend and holiday closings. |
■ | when the NYSE is closed, other than customary weekend and holiday closings; |
■ | when trading on the NYSE is restricted, as determined by the SEC; or |
■ | in which an emergency exists, as determined by the SEC, so that disposal of the Fund's investments or determination of its NAV is not reasonably practicable. |
■ | ensure that the account registrations are identical; |
■ | meet any applicable minimum initial investment requirements; and |
■ | receive a prospectus for the fund into which you wish to exchange. |
Year Ended October 31 | 2012 | 2011 | 2010 | 2009 | 2008 |
Net Asset Value, Beginning of Period | $4.69 | $4.36 | $3.85 | $4.01 | $6.36 |
Income From Investment Operations: | |||||
Net investment income | 0.19 | 0.17 1 | 0.16 1 | 0.15 | 0.27 |
Net realized and unrealized gain (loss) on investments and foreign currency transactions | 0.39 | 0.32 | 0.51 | (0.15) | (2.05) |
TOTAL FROM INVESTMENT OPERATIONS | 0.58 | 0.49 | 0.67 | — | (1.78) |
Less Distributions: | |||||
Distributions from net investment income | (0.19) | (0.16) | (0.16) | (0.16) | (0.28) |
Distributions from net realized gain on investments and foreign currency transactions | — | — | — | — | (0.29) |
TOTAL DISTRIBUTIONS | (0.19) | (0.16) | (0.16) | (0.16) | (0.57) |
Net Asset Value, End of Period | $5.08 | $4.69 | $4.36 | $3.85 | $4.01 |
Total Return 2 | 12.63% | 11.50% | 17.83% | 0.31% | (30.13)% |
Ratios to Average Net Assets: | |||||
Net expenses | 1.05% 3 | 1.05% 3 | 1.05% 3 | 1.04% 3 | 1.00% 3 |
Net investment income | 3.83% | 3.67% | 3.98% | 4.38% | 5.14% |
Expense waiver/reimbursement 4 | 0.14% | 0.14% | 0.19% | 0.20% | 0.25% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $1,531,723 | $992,799 | $439,433 | $358,589 | $249,725 |
Portfolio turnover | 20% | 17% | 20% | 42% | 48% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
3 | The net expense ratio is calculated without reduction for expense offset arrangements. The net expense ratios are 1.05%, 1.05%, 1.04%, 1.04% and 1.00%, for the years ended October 31, 2012, 2011, 2010, 2009 and 2008, respectively, after taking into account these expense reductions. |
4 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. |
Year Ended October 31 | 2012 | 2011 | 2010 | 2009 | 2008 |
Net Asset Value, Beginning of Period | $4.70 | $4.37 | $3.85 | $4.02 | $6.37 |
Income From Investment Operations: | |||||
Net investment income | 0.15 | 0.13 1 | 0.13 1 | 0.13 | 0.23 |
Net realized and unrealized gain (loss) on investments and foreign currency transactions | 0.38 | 0.33 | 0.52 | (0.17) | (2.05) |
TOTAL FROM INVESTMENT OPERATIONS | 0.53 | 0.46 | 0.65 | (0.04) | (1.82) |
Less Distributions: | |||||
Distributions from net investment income | (0.15) | (0.13) | (0.13) | (0.13) | (0.24) |
Distributions from net realized gain on investments and foreign currency transactions | — | — | — | — | (0.29) |
TOTAL DISTRIBUTIONS | (0.15) | (0.13) | (0.13) | (0.13) | (0.53) |
Net Asset Value, End of Period | $5.08 | $4.70 | $4.37 | $3.85 | $4.02 |
Total Return 2 | 11.56% | 10.67% | 17.21% | (0.69)% | (30.57)% |
Ratios to Average Net Assets: | |||||
Net expenses | 1.80% 3 | 1.80% 3 | 1.80% 3 | 1.79% 3 | 1.75% 3 |
Net investment income | 3.05% | 2.95% | 3.22% | 3.65% | 4.44% |
Expense waiver/reimbursement 4 | 0.14% | 0.14% | 0.19% | 0.20% | 0.25% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $667,700 | $328,987 | $173,394 | $123,604 | $112,894 |
Portfolio turnover | 20% | 17% | 20% | 42% | 48% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
3 | The net expense ratio is calculated without reduction for expense offset arrangements. The net expense ratios are 1.80%, 1.80%, 1.80%, 1.78% and 1.75%, for the years ended October 31, 2012, 2011, 2010, 2009 and 2008, respectively, after taking into account these expense reductions. |
4 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. |
Year Ended October 31 | 2012 | 2011 | 2010 | 2009 | 2008 |
Net Asset Value, Beginning of Period | $4.70 | $4.38 | $3.86 | $4.02 | $6.37 |
Income From Investment Operations: | |||||
Net investment income | 0.20 | 0.18 1 | 0.17 1 | 0.17 | 0.28 |
Net realized and unrealized gain (loss) on investments and foreign currency transactions | 0.39 | 0.31 | 0.52 | (0.16) | (2.05) |
TOTAL FROM INVESTMENT OPERATIONS | 0.59 | 0.49 | 0.69 | 0.01 | (1.77) |
Less Distributions: | |||||
Distributions from net investment income | (0.20) | (0.17) | (0.17) | (0.17) | (0.29) |
Distributions from net realized gain on investments and foreign currency transactions | — | — | — | — | (0.29) |
TOTAL DISTRIBUTIONS | (0.20) | (0.17) | (0.17) | (0.17) | (0.58) |
Net Asset Value, End of Period | $5.09 | $4.70 | $4.38 | $3.86 | $4.02 |
Total Return 2 | 12.87% | 11.48% | 18.34% | 0.55% | (29.92)% |
Ratios to Average Net Assets: | |||||
Net expenses | 0.80% 3 | 0.80% 3 | 0.80% 3 | 0.80% 3 | 0.75% 3 |
Net investment income | 4.11% | 3.89% | 4.14% | 4.59% | 5.67% |
Expense waiver/reimbursement 4 | 0.14% | 0.14% | 0.19% | 0.19% | 0.25% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $4,662,436 | $3,263,920 | $1,340,561 | $383,503 | $176,187 |
Portfolio turnover | 20% | 17% | 20% | 42% | 48% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value. |
3 | The net expense ratio is calculated without reduction for expense offset arrangements. The net expense ratios are 0.80%, 0.80%, 0.80%, 0.80% and 0.75%, for the years ended October 31, 2012, 2011, 2010, 2009 and 2008, respectively, after taking into account these expense reductions. |
4 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. |
FEDERATED STRATEGIC VALUE FUND - C CLASS | |||||
ANNUAL EXPENSE RATIO: 1.95% | |||||
MAXIMUM FRONT-END SALES CHARGE: NONE | |||||
Year |
Hypothetical
Beginning Investment |
Hypothetical
Performance Earnings |
Investment
After Returns |
Hypothetical
Expenses |
Hypothetical
Ending Investment |
1 | $10,000.00 | $500.00 | $10,500.00 | $197.97 | $10,305.00 |
2 | $10,305.00 | $515.25 | $10,820.25 | $204.01 | $10,619.30 |
3 | $10,619.30 | $530.97 | $11,150.27 | $210.23 | $10,943.19 |
4 | $10,943.19 | $547.16 | $11,490.35 | $216.65 | $11,276.96 |
5 | $11,276.96 | $563.85 | $11,840.81 | $223.25 | $11,620.91 |
6 | $11,620.91 | $581.05 | $12,201.96 | $230.06 | $11,975.35 |
7 | $11,975.35 | $598.77 | $12,574.12 | $237.08 | $12,340.60 |
8 | $12,340.60 | $617.03 | $12,957.63 | $244.31 | $12,716.99 |
9 | $12,716.99 | $635.85 | $13,352.84 | $251.76 | $13,104.86 |
10 | $13,104.86 | $655.24 | $13,760.10 | $259.44 | $13,504.56 |
Cumulative | $5,745.17 | $2,274.76 |
FEDERATED STRATEGIC VALUE DIVIDEND FUND - IS CLASS | |||||
ANNUAL EXPENSE RATIO: 0.95% | |||||
MAXIMUM FRONT-END SALES CHARGE: NONE | |||||
Year |
Hypothetical
Beginning Investment |
Hypothetical
Performance Earnings |
Investment
After Returns |
Hypothetical
Expenses |
Hypothetical
Ending Investment |
1 | $10,000.00 | $500.00 | $10,500.00 | $96.92 | $10,405.00 |
2 | $10,405.00 | $520.25 | $10,925.25 | $100.85 | $10,826.40 |
3 | $10,826.40 | $541.32 | $11,367.72 | $104.93 | $11,264.87 |
4 | $11,264.87 | $563.24 | $11,828.11 | $109.18 | $11,721.10 |
5 | $11,721.10 | $586.06 | $12,307.16 | $113.61 | $12,195.80 |
6 | $12,195.80 | $609.79 | $12,805.59 | $118.21 | $12,689.73 |
7 | $12,689.73 | $634.49 | $13,324.22 | $122.99 | $13,203.66 |
8 | $13,203.66 | $660.18 | $13,863.84 | $127.97 | $13,738.41 |
9 | $13,738.41 | $686.92 | $14,425.33 | $133.16 | $14,294.82 |
10 | $14,294.82 | $714.74 | $15,009.56 | $138.55 | $14,873.76 |
Cumulative | $6,016.99 | $1,166.37 |
■ | Buy call options on a Reference Instrument in anticipation of an increase in the value of the Reference Instrument; and |
■ | Write call options on a Reference Instrument to generate income from premiums, and in anticipation of a decrease or only limited increase in the value of the Reference Instrument. If the Fund writes a call option on a Reference Instrument that it owns and that call option is exercised, the Fund foregoes any possible profit from an increase in the market price of the Reference Instrument over the exercise price plus the premium received. |
■ | Buy put options on a Reference Instrument in anticipation of a decrease in the value of the Reference Instrument; and |
■ | Write put options on a Reference Instrument to generate income from premiums, and in anticipation of an increase or only limited decrease in the value of the Reference Instrument. In writing puts, there is a risk that the Fund may be required to take delivery of the Reference Instrument when its current market price is lower than the exercise price. |
■ | Equity securities listed on a U.S. securities exchange or traded through the U.S. national market system are valued at their last reported sale price or official closing price in their principal exchange or market. If a price is not readily available, such equity securities are valued based upon the mean of closing bid and asked quotations from one or more dealers. |
■ | Other equity securities traded primarily in the United States are valued based upon the mean of closing bid and asked quotations from one or more dealers. |
■ | Equity securities traded primarily through securities exchanges and regulated market systems outside the United States are valued at their last reported sale price or official closing price in their principal exchange or market. These prices may be adjusted for significant events occurring after the closing of such exchanges or market systems as described below. If a price is not readily available, such equity securities are valued based upon the mean of closing bid and asked quotations from one or more dealers. |
■ | Fixed-income securities and repurchase agreements acquired with remaining maturities of greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Board. The methods used by pricing services to determine such price evaluations are described below. If a price evaluation is not readily available, such fixed-income securities are fair valued based upon price evaluations from one or more dealers. |
■ | Fixed-income securities and repurchase agreements acquired with remaining maturities of 60 days or less are valued at their amortized cost as described below. |
■ | Futures contracts listed on exchanges are valued at their reported settlement price. Option contracts listed on exchanges are valued based upon the mean of closing bid and asked quotations reported by the exchange or from one or more futures commission merchants. |
■ | OTC derivative contracts are fair valued using price evaluations provided by various pricing services approved by the Board. The methods used by pricing services to determine such price evaluations are described below. If a price evaluation is not readily available, such derivative contracts are fair valued based upon price evaluations from one or more dealers or using a recognized pricing model for the contract. |
■ | Shares of other mutual funds are valued based upon their reported NAVs. The prospectuses for these mutual funds explain the circumstances under which they will use fair value pricing and the effects of using fair value pricing. |
■ | With respect to securities traded principally in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures contracts; |
■ | With respect to price evaluations of fixed-income securities determined before the close of regular trading on the NYSE, actions by the Federal Reserve Open Market Committee and other significant trends in U.S. fixed-income markets; |
■ | Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; and |
■ | Announcements concerning matters such as acquisitions, recapitalizations or litigation developments, or a natural disaster affecting the issuer's operations or regulatory changes or market developments affecting the issuer's industry. |
2012 | 2011 | 2010 | ||||
Total Sales
Charges |
Amount
Retained |
Total Sales
Charges |
Amount
Retained |
Total Sales
Charges |
Amount
Retained |
|
Class A Shares | $255,896 | $28,615 | $451,766 | $54,124 | $580,729 | $60,844 |
Class B Shares | $ 65,796 | $26,084 | $ 37,474 | $17,195 | $ 74,987 | $ 0 |
Class C Shares | $ 805 | $ 805 | $ 1,889 | $ 1,889 | $ 27,396 | $ 1,509 |
■ | Outstanding skills in disciplines deemed by the Independent Trustees to be particularly relevant to the role of Independent Trustee and to the Federated funds, including legal, accounting, business management, the financial industry generally and the investment industry particularly. |
■ | Desire and availability to serve for a substantial period of time, taking into account the Board's current mandatory retirement age of 73 years. |
■ | No conflicts which would interfere with qualifying as independent. |
■ | Appropriate interpersonal skills to work effectively with other Independent Trustees. |
■ | Understanding and appreciation of the important role occupied by Independent Trustees in the regulatory structure governing regulated investment companies. |
■ | Diversity of background. |
Name
Birth Date Positions Held with Trust Date Service Began |
Principal Occupation(s) for Past Five Years,
Other Directorships Held and Previous Position(s) |
Aggregate
Compensation From Fund (past fiscal year) |
Total Compensation
From Fund and Federated Fund Complex (past calendar year) |
John F. Donahue*
Birth Date: July 28, 1924 Trustee Began serving: April 1984 |
Principal Occupations:
Director or Trustee of the Federated Fund Complex; Chairman and Director, Federated Investors, Inc.; Chairman of the Federated Fund Complex's Executive Committee.
Previous Positions: Chairman of the Federated Fund Complex; Trustee, Federated Investment Management Company; Chairman and Director, Federated Investment Counseling. |
$0 | $0 |
J. Christopher Donahue*
Birth Date: April 11, 1949 President and Trustee Began serving: January 2000 |
Principal Occupations:
Principal Executive Officer and President of some of the Funds in the Federated Fund Complex; Director or Trustee of some of the Funds in the Federated Fund Complex; President, Chief
Executive Officer and Director, Federated Investors, Inc.; Chairman and Trustee, Federated Investment Management Company; Trustee, Federated Investment Counseling; Chairman and Director, Federated Global Investment
Management Corp.; Chairman, Federated Equity Management Company of Pennsylvania and Passport Research, Ltd. (investment advisory subsidiary of Federated); Trustee, Federated Shareholder Services Company; Director,
Federated Services Company.
Previous Positions: President, Federated Investment Counseling; President and Chief Executive Officer, Federated Investment Management Company, Federated Global Investment Management Corp. and Passport Research, Ltd. |
$0 | $0 |
* | Family relationships and reasons for “interested” status: John F. Donahue is the father of J. Christopher Donahue; both are “interested” due to their beneficial ownership of shares of Federated Investors, Inc. and the positions they hold with Federated and its subsidiaries. |
Name
Birth Date Positions Held with Trust Date Service Began |
Principal Occupation(s) and Other Directorships Held for
Past Five Years, Previous Position(s) and Qualifications |
Aggregate
Compensation From Fund (past fiscal year) |
Total Compensation
From Fund and Federated Fund Complex (past calendar year) |
Nicholas P. Constantakis, CPA
Birth Date: September 3, 1939 Trustee Began serving: February 1998 |
Principal Occupation:
Director or Trustee of the Federated Fund Complex.
Other Directorships Held: Director, Chairman of the Audit Committee, and member of the Compensation Committee, Michael Baker Corporation (architecture, engineering and construction services). Previous Position: Partner, Andersen Worldwide SC. Qualifications: Public accounting and director experience. |
$809.01 | $247,500 |
Name
Birth Date Positions Held with Trust Date Service Began |
Principal Occupation(s) and Other Directorships Held for
Past Five Years, Previous Position(s) and Qualifications |
Aggregate
Compensation From Fund (past fiscal year) |
Total Compensation
From Fund and Federated Fund Complex (past calendar year) |
John F. Cunningham
Birth Date: March 5, 1943 Trustee Began serving: January 1999 |
Principal Occupation:
Director or Trustee of the Federated Fund Complex.
Other Directorships Held: Chairman, President and Chief Executive Officer, Cunningham & Co., Inc. (strategic business consulting); Trustee Associate, Boston College. Previous Positions: Director, Redgate Communications and EMC Corporation (computer storage systems); Chairman of the Board and Chief Executive Officer, Computer Consoles, Inc.; President and Chief Operating Officer, Wang Laboratories; Director, First National Bank of Boston; Director, Apollo Computer, Inc. Qualifications: Business management and director experience. |
$735.48 | $225,000 |
Maureen Lally-Green
Birth Date: July 5, 1949 Trustee Began serving: August 2009 |
Principal Occupations:
Director or Trustee of the Federated Fund Complex; Director, Office of Church Relations, Diocese of Pittsburgh; Adjunct Professor of Law, Duquesne University School of Law.
Other Directorships Held: Director, Auberle; Member, Pennsylvania State Board of Education; Director, Saint Vincent College; Director, Ireland Institute of Pittsburgh; Chair and Director, UPMC Mercy Hospital; Regent, St. Vincent Seminary; Director, Epilepsy Foundation of Western and Central Pennsylvania; Director, Saint Thomas More Society, Allegheny County; Director, Our Campaign for the Church Alive, Inc. Previous Position: Pennsylvania Superior Court Judge. Qualifications: Legal and director experience. |
$735.48 | $223,567.97 |
Peter E. Madden
Birth Date: March 16, 1942 Trustee Began serving: November 1991 |
Principal Occupation:
Director or Trustee, and Chairman of the Board of Directors or Trustees, of the Federated Fund Complex.
Previous Positions: Representative, Commonwealth of Massachusetts General Court; President, Chief Operating Officer and Director, State Street Bank and Trust Company and State Street Corporation (retired); Director, VISA USA and VISA International; Chairman and Director, Massachusetts Bankers Association; Director, Depository Trust Corporation; Director, The Boston Stock Exchange. Qualifications: Business management, mutual fund services and director experience. |
$1,013.30 | $310,000 |
Charles F. Mansfield, Jr.
Birth Date: April 10, 1945 Trustee Began serving: January 1999 |
Principal Occupations:
Director or Trustee of the Federated Fund Complex; Management Consultant.
Previous Positions: Chief Executive Officer, PBTC International Bank; Partner, Arthur Young & Company (now Ernst & Young LLP); Chief Financial Officer of Retail Banking Sector, Chase Manhattan Bank; Senior Vice President, HSBC Bank USA (formerly Marine Midland Bank); Vice President, Citibank; Assistant Professor of Banking and Finance, Frank G. Zarb School of Business, Hofstra University; Executive Vice President DVC Group, Inc. (marketing, communications and technology). Qualifications: Banking, business management, education and director experience. |
$814.21 | $253,125 |
Name
Birth Date Positions Held with Trust Date Service Began |
Principal Occupation(s) and Other Directorships Held for
Past Five Years, Previous Position(s) and Qualifications |
Aggregate
Compensation From Fund (past fiscal year) |
Total Compensation
From Fund and Federated Fund Complex (past calendar year) |
Thomas M. O'Neill
Birth Date: June 14, 1951 Trustee Began serving: October 2006 |
Principal Occupations:
Director or Trustee, Vice Chairman of the Audit Committee of the Federated Fund Complex; Sole Proprietor, Navigator Management Company (investment and strategic consulting).
Other Directorships Held: Board of Overseers, Children's Hospital of Boston; Visiting Committee on Athletics, Harvard College; Board of Directors, Medicines for Humanity; Board of Directors, The Golisano Children's Museum of Naples, Florida. Previous Positions: Chief Executive Officer and President, Managing Director and Chief Investment Officer, Fleet Investment Advisors; President and Chief Executive Officer, Aeltus Investment Management, Inc.; General Partner, Hellman, Jordan Management Co., Boston, MA; Chief Investment Officer, The Putnam Companies, Boston, MA; Credit Analyst and Lending Officer, Fleet Bank; Director and Consultant, EZE Castle Software (investment order management software); Director, Midway Pacific (lumber). Qualifications: Business management, mutual fund, director and investment experience. |
$809.01 | $247,500 |
John S. Walsh
Birth Date: November 28, 1957 Trustee Began serving: January 1999 |
Principal Occupations:
Director or Trustee, Chairman of the Audit Committee of the Federated Fund Complex; President and Director, Heat Wagon, Inc. (manufacturer of construction temporary heaters); President and
Director, Manufacturers Products, Inc. (distributor of portable construction heaters); President, Portable Heater Parts, a division of Manufacturers Products, Inc.
Previous Position: Vice President, Walsh & Kelly, Inc. Qualifications: Business management and director experience. |
$822.20 | $247,500 |
Name
Birth Date Address Positions Held with Trust Date Service Began |
Principal Occupation(s) and Previous Position(s) |
John W. McGonigle
Birth Date: October 26, 1938 EXECUTIVE VICE PRESIDENT AND SECRETARY Officer since: April 1984 |
Principal Occupations:
Executive Vice President and Secretary of the Federated Fund Complex; Vice Chairman, Executive Vice President, Secretary and Director, Federated Investors, Inc.
Previous Positions: Trustee, Federated Investment Management Company and Federated Investment Counseling; Director, Federated Global Investment Management Corp., Federated Services Company and Federated Securities Corp. |
Richard A. Novak
Birth Date: December 25, 1963 Treasurer Officer since: January 2006 |
Principal Occupations:
Principal Financial Officer and Treasurer of the Federated Fund Complex; Senior Vice President, Federated Administrative Services; Financial and Operations Principal for Federated
Securities Corp., Edgewood Services, Inc. and Southpointe Distribution Services, Inc.
Previous Positions: Controller of Federated Investors, Inc.; Vice President, Finance of Federated Services Company; held various financial management positions within The Mercy Hospital of Pittsburgh; Auditor, Arthur Andersen & Co. |
Peter J. Germain
Birth Date: September 3, 1959 CHIEF LEGAL OFFICER Officer since: January 2005 |
Principal Occupations
: Mr. Germain is Chief Legal Officer of the Federated Fund Complex. He is General Counsel and Vice President, Federated Investors, Inc.; President, Federated Administrative Services and
Federated Administrative Services, Inc.; Vice President, Federated Securities Corp.; Secretary, Federated Private Asset Management, Inc.; and Secretary, Retirement Plan Service Company of America. Mr. Germain joined
Federated in 1984 and is a member of the Pennsylvania Bar Association.
Previous Positions : Deputy General Counsel, Special Counsel, Managing Director of Mutual Fund Services, Federated Investors, Inc.; Senior Vice President, Federated Services Company; and Senior Corporate Counsel, Federated Investors, Inc. |
Richard B. Fisher
Birth Date: May 17, 1923 Vice President Officer since: April 1987 |
Principal Occupations:
Vice Chairman or Vice President of some of the Funds in the Federated Fund Complex; Vice Chairman, Federated Investors, Inc.; Chairman, Federated Securities Corp.
Previous Positions: President and Director or Trustee of some of the Funds in the Federated Fund Complex; Executive Vice President, Federated Investors, Inc.; Director and Chief Executive Officer, Federated Securities Corp. |
** | Officers do not receive any compensation from the Fund. |
Board
Committee |
Committee
Members |
Committee Functions |
Meetings Held
During Last Fiscal Year |
Executive |
John F. Donahue
Peter E. Madden John S. Walsh |
In between meetings of the full Board, the Executive Committee generally may exercise all the powers of the full Board in the management and direction of the business and conduct of the affairs of the Trust in such manner as the Executive Committee shall deem to be in the best interests of the Trust. However, the Executive Committee cannot elect or remove Board members, increase or decrease the number of Trustees, elect or remove any Officer, declare dividends, issue shares or recommend to shareholders any action requiring shareholder approval. | Three |
Audit |
Nicholas P. Constantakis
Charles F. Mansfield, Jr. Thomas M. O'Neill John S. Walsh |
The purposes of the Audit Committee are to oversee the accounting and financial reporting process of the Fund, the Fund's internal control over financial reporting and the quality, integrity and independent audit of the Fund's financial statements. The Committee also oversees or assists the Board with the oversight of compliance with legal requirements relating to those matters, approves the engagement and reviews the qualifications, independence and performance of the Fund's independent registered public accounting firm, acts as a liaison between the independent registered public accounting firm and the Board and reviews the Fund's internal audit function. | Eight |
Board
Committee |
Committee
Members |
Committee Functions |
Meetings Held
During Last Fiscal Year |
Nominating |
Nicholas P. Constantakis
John F. Cunningham Maureen Lally-Green Peter E. Madden Charles F. Mansfield, Jr. Thomas M. O'Neill John S. Walsh |
The Nominating Committee, whose members consist of all Independent Trustees, selects and nominates persons for election to the Fund's Board when vacancies occur. The Committee will consider candidates recommended by shareholders, Independent Trustees, officers or employees of any of the Fund's agents or service providers and counsel to the Fund. Any shareholder who desires to have an individual considered for nomination by the Committee must submit a recommendation in writing to the Secretary of the Fund, at the Fund's address appearing on the back cover of this SAI. The recommendation should include the name and address of both the shareholder and the candidate and detailed information concerning the candidate's qualifications and experience. In identifying and evaluating candidates for consideration, the Committee shall consider such factors as it deems appropriate. Those factors will ordinarily include: integrity, intelligence, collegiality, judgment, diversity, skill, business and other experience, qualification as an “Independent Trustee,” the existence of material relationships which may create the appearance of a lack of independence, financial or accounting knowledge and experience and dedication and willingness to devote the time and attention necessary to fulfill Board responsibilities. | Two |
Interested Board
Member Name |
Dollar Range of
Shares Owned in Federated Capital Appreciation Fund |
Aggregate
Dollar Range of Shares Owned in Federated Family of Investment Companies |
John F. Donahue | Over $100,000 | Over $100,000 |
J. Christopher Donahue | None | Over $100,000 |
Independent Board
Member Name |
||
Nicholas P. Constantakis | None | Over $100,000 |
John F. Cunningham | None | Over $100,000 |
Maureen Lally-Green | None | Over $100,000 |
Peter E. Madden | None | Over $100,000 |
Charles F. Mansfield, Jr. | None | Over $100,000 |
Thomas M. O'Neill | None | Over $100,000 |
John S. Walsh | None | Over $100,000 |
* | None of the Accounts has an advisory fee that is based on the performance of the account. |
Types of Accounts Managed
by James Grefenstette |
Total Number of Additional Accounts
Managed/Total Assets* |
Additional Accounts/Assets Managed
that are Subject to Advisory Fee Based on Account Performance |
Registered Investment Companies | 2/$497 million | 0/$0 |
Other Pooled Investment Vehicles | 1/$15 million | 0/$0 |
Other Accounts | 16/$77 million | 1/$11 million |
* | None of the Accounts has an advisory fee that is based on the performance of the account. |
For the Year Ended October 31 | 2012 | 2011 | 2010 |
Advisory Fee Earned | $7,124,983 | $8,979,740 | $10,256,175 |
Advisory Fee Reduction | $ 175,085 | $ 65,808 | — |
Advisory Fee Reimbursement | $ 6,126 | $ 35,018 | $ 62,325 |
Brokerage Commissions | $2,519,522 | $4,456,208 | $ 7,099,255 |
Net Administrative Fee | $ 725,927 | $ 911,145 | $ 1,040,660 |
Net 12b-1 Fee: | |||
Class A Shares | — | — | — |
Class B Shares | $ 376,820 | — | — |
Class C Shares | $ 463,993 | — | — |
Class R Shares | $ 64,640 | — | — |
Net Shareholder Services Fee: | |||
Class A Shares | $1,795,620 | — | — |
Class B Shares | $ 125,606 | — | — |
Class C Shares | $ 150,083 | — | — |
Share Class | Ticker |
A | KAUAX |
B | KAUBX |
C | KAUCX |
R | KAUFX |
■ | Buy call options on a Reference Instrument in anticipation of an increase in the value of the Reference Instrument; and |
■ | Write call options on a Reference Instrument to generate income from premiums, and in anticipation of a decrease or only limited increase in the value of the Reference Instrument. If the Fund writes a call option on a Reference Instrument that it owns and that call option is exercised, the Fund foregoes any possible profit from an increase in the market price of the Reference Instrument over the exercise price plus the premium received. |
■ | Buy put options on a Reference Instrument in anticipation of a decrease in the value of the Reference Instrument; and |
■ | Write put options on a Reference Instrument to generate income from premiums, and in anticipation of an increase or only limited decrease in the value of the Reference Instrument. In writing puts, there is a risk that the Fund may be required to take delivery of the Reference Instrument when its current market price is lower than the exercise price. |
■ | Equity securities listed on a U.S. securities exchange or traded through the U.S. national market system are valued at their last reported sale price or official closing price in their principal exchange or market. If a price is not readily available, such equity securities are valued based upon the mean of closing bid and asked quotations from one or more dealers. |
■ | Other equity securities traded primarily in the United States are valued based upon the mean of closing bid and asked quotations from one or more dealers. |
■ | Equity securities traded primarily through securities exchanges and regulated market systems outside the United States are valued at their last reported sale price or official closing price in their principal exchange or market. These prices may be adjusted for significant events occurring after the closing of such exchanges or market systems as described below. If a price is not readily available, such equity securities are valued based upon the mean of closing bid and asked quotations from one or more dealers. |
■ | Fixed-income securities and repurchase agreements acquired with remaining maturities of greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Board. The methods used by pricing services to determine such price evaluations are described below. If a price evaluation is not readily available, such fixed-income securities are fair valued based upon price evaluations from one or more dealers. |
■ | Fixed-income securities and repurchase agreements acquired with remaining maturities of 60 days or less are valued at their amortized cost as described below. |
■ | Futures contracts listed on exchanges are valued at their reported settlement price. Option contracts listed on exchanges are valued based upon the mean of closing bid and asked quotations reported by the exchange or from one or more futures commission merchants. |
■ | OTC derivative contracts are fair valued using price evaluations provided by various pricing services approved by the Board. The methods used by pricing services to determine such price evaluations are described below. If a price evaluation is not readily available, such derivative contracts are fair valued based upon price evaluations from one or more dealers or using a recognized pricing model for the contract. |
■ | Shares of other mutual funds are valued based upon their reported NAVs. The prospectuses for these mutual funds explain the circumstances under which they will use fair value pricing and the effects of using fair value pricing. |
■ | With respect to securities traded principally in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures contracts; |
■ | With respect to price evaluations of fixed-income securities determined before the close of regular trading on the NYSE, actions by the Federal Reserve Open Market Committee and other significant trends in U.S. fixed-income markets; |
■ | Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; and |
■ | Announcements concerning matters such as acquisitions, recapitalizations or litigation developments, or a natural disaster affecting the issuer's operations or regulatory changes or market developments affecting the issuer's industry. |
2012 | 2011 | 2010 | ||||
Total Sales
Charges |
Amount
Retained |
Total Sales
Charges |
Amount
Retained |
Total Sales
Charges |
Amount
Retained |
|
Class A Shares | $744,936 | $ 82,614 | $1,309,959 | $141,969 | $190,069 | $1,732,542 |
Class B Shares | $354,399 | $113,165 | $ 191,414 | $ 64,397 | $ 0 | $ 385,056 |
Class C Shares | $ 19,183 | $ 19,183 | $ 6,470 | $ 6,470 | $ 15,047 | $ 317,986 |
Class R Shares | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
■ | Outstanding skills in disciplines deemed by the Independent Trustees to be particularly relevant to the role of Independent Trustee and to the Federated funds, including legal, accounting, business management, the financial industry generally and the investment industry particularly. |
■ | Desire and availability to serve for a substantial period of time, taking into account the Board's current mandatory retirement age of 73 years. |
■ | No conflicts which would interfere with qualifying as independent. |
■ | Appropriate interpersonal skills to work effectively with other Independent Trustees. |
■ | Understanding and appreciation of the important role occupied by Independent Trustees in the regulatory structure governing regulated investment companies. |
■ | Diversity of background. |
Name
Birth Date Positions Held with Trust Date Service Began |
Principal Occupation(s) for Past Five Years,
Other Directorships Held and Previous Position(s) |
Aggregate
Compensation From Fund (past fiscal year) |
Total Compensation
From Trust and Federated Fund Complex (past calendar year) |
John F. Donahue*
Birth Date: July 28, 1924 Trustee Began serving: April 1984 |
Principal Occupations:
Director or Trustee of the Federated Fund Complex; Chairman and Director, Federated Investors, Inc.; Chairman of the Federated Fund Complex's Executive Committee.
Previous Positions: Chairman of the Federated Fund Complex; Trustee, Federated Investment Management Company; Chairman and Director, Federated Investment Counseling. |
$0 | $0 |
J. Christopher Donahue*
Birth Date: April 11, 1949 President and Trustee Began serving: January 2000 |
Principal Occupations:
Principal Executive Officer and President of some of the Funds in the Federated Fund Complex; Director or Trustee of some of the Funds in the Federated Fund Complex; President, Chief
Executive Officer and Director, Federated Investors, Inc.; Chairman and Trustee, Federated Investment Management Company; Trustee, Federated Investment Counseling; Chairman and Director, Federated Global Investment
Management Corp.; Chairman, Federated Equity Management Company of Pennsylvania and Passport Research, Ltd. (investment advisory subsidiary of Federated); Trustee, Federated Shareholder Services Company; Director,
Federated Services Company.
Previous Positions: President, Federated Investment Counseling; President and Chief Executive Officer, Federated Investment Management Company, Federated Global Investment Management Corp. and Passport Research, Ltd. |
$0 | $0 |
* | Family relationships and reasons for “interested” status: John F. Donahue is the father of J. Christopher Donahue; both are “interested” due to their beneficial ownership of shares of Federated Investors, Inc. and the positions they hold with Federated and its subsidiaries. |
Name
Birth Date Positions Held with Trust Date Service Began |
Principal Occupation(s) and Other Directorships Held for
Past Five Years, Previous Position(s) and Qualifications |
Aggregate
Compensation From Fund (past fiscal year) |
Total Compensation
From Trust and Federated Fund Complex (past calendar year) |
Nicholas P. Constantakis, CPA
Birth Date: September 3, 1939 Trustee Began serving: February 1998 |
Principal Occupation:
Director or Trustee of the Federated Fund Complex.
Other Directorships Held: Director, Chairman of the Audit Committee, and member of the Compensation Committee, Michael Baker Corporation (architecture, engineering and construction services). Previous Position: Partner, Andersen Worldwide SC. Qualifications: Public accounting and director experience. |
$4,232.56 | $247,500 |
Name
Birth Date Positions Held with Trust Date Service Began |
Principal Occupation(s) and Other Directorships Held for
Past Five Years, Previous Position(s) and Qualifications |
Aggregate
Compensation From Fund (past fiscal year) |
Total Compensation
From Trust and Federated Fund Complex (past calendar year) |
John F. Cunningham
Birth Date: March 5, 1943 Trustee Began serving: January 1999 |
Principal Occupation:
Director or Trustee of the Federated Fund Complex.
Other Directorships Held: Chairman, President and Chief Executive Officer, Cunningham & Co., Inc. (strategic business consulting); Trustee Associate, Boston College. Previous Positions: Director, Redgate Communications and EMC Corporation (computer storage systems); Chairman of the Board and Chief Executive Officer, Computer Consoles, Inc.; President and Chief Operating Officer, Wang Laboratories; Director, First National Bank of Boston; Director, Apollo Computer, Inc. Qualifications: Business management and director experience. |
$3,847.79 | $225,000 |
Maureen Lally-Green
Birth Date: July 5, 1949 Trustee Began serving: August 2009 |
Principal Occupations:
Director or Trustee of the Federated Fund Complex; Director, Office of Church Relations, Diocese of Pittsburgh; Adjunct Professor of Law, Duquesne University School of Law.
Other Directorships Held: Director, Auberle; Member, Pennsylvania State Board of Education; Director, Saint Vincent College; Director, Ireland Institute of Pittsburgh; Chair and Director, UPMC Mercy Hospital; Regent, St. Vincent Seminary; Director, Epilepsy Foundation of Western and Central Pennsylvania; Director, Saint Thomas More Society, Allegheny County; Director, Our Campaign for the Church Alive, Inc. Previous Position: Pennsylvania Superior Court Judge. Qualifications: Legal and director experience. |
$3,847.79 | $223,567.97 |
Peter E. Madden
Birth Date: March 16, 1942 Trustee Began serving: November 1991 |
Principal Occupation:
Director or Trustee, and Chairman of the Board of Directors or Trustees, of the Federated Fund Complex.
Previous Positions: Representative, Commonwealth of Massachusetts General Court; President, Chief Operating Officer and Director, State Street Bank and Trust Company and State Street Corporation (retired); Director, VISA USA and VISA International; Chairman and Director, Massachusetts Bankers Association; Director, Depository Trust Corporation; Director, The Boston Stock Exchange. Qualifications: Business management, mutual fund services and director experience. |
$5,301.39 | $310,000 |
Charles F. Mansfield, Jr.
Birth Date: April 10, 1945 Trustee Began serving: January 1999 |
Principal Occupations:
Director or Trustee of the Federated Fund Complex; Management Consultant.
Previous Positions: Chief Executive Officer, PBTC International Bank; Partner, Arthur Young & Company (now Ernst & Young LLP); Chief Financial Officer of Retail Banking Sector, Chase Manhattan Bank; Senior Vice President, HSBC Bank USA (formerly Marine Midland Bank); Vice President, Citibank; Assistant Professor of Banking and Finance, Frank G. Zarb School of Business, Hofstra University; Executive Vice President DVC Group, Inc. (marketing, communications and technology). Qualifications: Banking, business management, education and director experience. |
$4,261.91 | $253,125 |
Name
Birth Date Positions Held with Trust Date Service Began |
Principal Occupation(s) and Other Directorships Held for
Past Five Years, Previous Position(s) and Qualifications |
Aggregate
Compensation From Fund (past fiscal year) |
Total Compensation
From Trust and Federated Fund Complex (past calendar year) |
Thomas M. O'Neill
Birth Date: June 14, 1951 Trustee Began serving: October 2006 |
Principal Occupations:
Director or Trustee, Vice Chairman of the Audit Committee of the Federated Fund Complex; Sole Proprietor, Navigator Management Company (investment and strategic consulting).
Other Directorships Held: Board of Overseers, Children's Hospital of Boston; Visiting Committee on Athletics, Harvard College; Board of Directors, Medicines for Humanity; Board of Directors, The Golisano Children's Museum of Naples, Florida. Previous Positions: Chief Executive Officer and President, Managing Director and Chief Investment Officer, Fleet Investment Advisors; President and Chief Executive Officer, Aeltus Investment Management, Inc.; General Partner, Hellman, Jordan Management Co., Boston, MA; Chief Investment Officer, The Putnam Companies, Boston, MA; Credit Analyst and Lending Officer, Fleet Bank; Director and Consultant, EZE Castle Software (investment order management software); Director, Midway Pacific (lumber). Qualifications: Business management, mutual fund, director and investment experience. |
$4,232.56 | $247,500 |
John S. Walsh
Birth Date: November 28, 1957 Trustee Began serving: January 1999 |
Principal Occupations:
Director or Trustee, Chairman of the Audit Committee of the Federated Fund Complex; President and Director, Heat Wagon, Inc. (manufacturer of construction temporary heaters); President and
Director, Manufacturers Products, Inc. (distributor of portable construction heaters); President, Portable Heater Parts, a division of Manufacturers Products, Inc.
Previous Position: Vice President, Walsh & Kelly, Inc. Qualifications: Business management and director experience. |
$4,299.40 | $247,500 |
Name
Birth Date Address Positions Held with Trust Date Service Began |
Principal Occupation(s) and Previous Position(s) |
John W. McGonigle
Birth Date: October 26, 1938 EXECUTIVE VICE PRESIDENT AND SECRETARY Officer since: April 1984 |
Principal Occupations:
Executive Vice President and Secretary of the Federated Fund Complex; Vice Chairman, Executive Vice President, Secretary and Director, Federated Investors, Inc.
Previous Positions: Trustee, Federated Investment Management Company and Federated Investment Counseling; Director, Federated Global Investment Management Corp., Federated Services Company and Federated Securities Corp. |
Richard A. Novak
Birth Date: December 25, 1963 Treasurer Officer since: January 2006 |
Principal Occupations:
Principal Financial Officer and Treasurer of the Federated Fund Complex; Senior Vice President, Federated Administrative Services; Financial and Operations Principal for Federated
Securities Corp., Edgewood Services, Inc. and Southpointe Distribution Services, Inc.
Previous Positions: Controller of Federated Investors, Inc.; Vice President, Finance of Federated Services Company; held various financial management positions within The Mercy Hospital of Pittsburgh; Auditor, Arthur Andersen & Co. |
Peter J. Germain
Birth Date: September 3, 1959 CHIEF LEGAL OFFICER Officer since: January 2005 |
Principal Occupations
: Mr. Germain is Chief Legal Officer of the Federated Fund Complex. He is General Counsel and Vice President, Federated Investors, Inc.; President, Federated Administrative Services and
Federated Administrative Services, Inc.; Vice President, Federated Securities Corp.; Secretary, Federated Private Asset Management, Inc.; and Secretary, Retirement Plan Service Company of America. Mr. Germain joined
Federated in 1984 and is a member of the Pennsylvania Bar Association.
Previous Positions : Deputy General Counsel, Special Counsel, Managing Director of Mutual Fund Services, Federated Investors, Inc.; Senior Vice President, Federated Services Company; and Senior Corporate Counsel, Federated Investors, Inc. |
Richard B. Fisher
Birth Date: May 17, 1923 Vice President Officer since: April 1984 |
Principal Occupations:
Vice Chairman or Vice President of some of the Funds in the Federated Fund Complex; Vice Chairman, Federated Investors, Inc.; Chairman, Federated Securities Corp.
Previous Positions: President and Director or Trustee of some of the Funds in the Federated Fund Complex; Executive Vice President, Federated Investors, Inc.; Director and Chief Executive Officer, Federated Securities Corp. |
** | Officers do not receive any compensation from the Fund. |
Board
Committee |
Committee
Members |
Committee Functions |
Meetings Held
During Last Fiscal Year |
Executive |
John F. Donahue
Peter E. Madden John S. Walsh |
In between meetings of the full Board, the Executive Committee generally may exercise all the powers of the full Board in the management and direction of the business and conduct of the affairs of the Trust in such manner as the Executive Committee shall deem to be in the best interests of the Trust. However, the Executive Committee cannot elect or remove Board members, increase or decrease the number of Trustees, elect or remove any Officer, declare dividends, issue shares or recommend to shareholders any action requiring shareholder approval. | One |
Audit |
Nicholas P. Constantakis
Charles F. Mansfield, Jr. Thomas M. O'Neill John S. Walsh |
The purposes of the Audit Committee are to oversee the accounting and financial reporting process of the Fund, the Fund's internal control over financial reporting and the quality, integrity and independent audit of the Fund's financial statements. The Committee also oversees or assists the Board with the oversight of compliance with legal requirements relating to those matters, approves the engagement and reviews the qualifications, independence and performance of the Fund's independent registered public accounting firm, acts as a liaison between the independent registered public accounting firm and the Board and reviews the Fund's internal audit function. | Seven |
Board
Committee |
Committee
Members |
Committee Functions |
Meetings Held
During Last Fiscal Year |
Nominating |
Nicholas P. Constantakis
John F. Cunningham Maureen Lally-Green Peter E. Madden Charles F. Mansfield, Jr. Thomas M. O'Neill John S. Walsh |
The Nominating Committee, whose members consist of all Independent Trustees, selects and nominates persons for election to the Fund's Board when vacancies occur. The Committee will consider candidates recommended by shareholders, Independent Trustees, officers or employees of any of the Fund's agents or service providers and counsel to the Fund. Any shareholder who desires to have an individual considered for nomination by the Committee must submit a recommendation in writing to the Secretary of the Fund, at the Fund's address appearing on the back cover of this SAI. The recommendation should include the name and address of both the shareholder and the candidate and detailed information concerning the candidate's qualifications and experience. In identifying and evaluating candidates for consideration, the Committee shall consider such factors as it deems appropriate. Those factors will ordinarily include: integrity, intelligence, collegiality, judgment, diversity, skill, business and other experience, qualification as an “Independent Trustee,” the existence of material relationships which may create the appearance of a lack of independence, financial or accounting knowledge and experience and dedication and willingness to devote the time and attention necessary to fulfill Board responsibilities. | Two |
Interested Board
Member Name |
Dollar Range of
Shares Owned in Federated Kaufmann Fund |
Aggregate
Dollar Range of Shares Owned in Federated Family of Investment Companies |
John F. Donahue | None | Over $100,000 |
J. Christopher Donahue | Over $100,000 | Over $100,000 |
Independent Board
Member Name |
||
Nicholas P. Constantakis | $50,001 - $100,000 | Over $100,000 |
John F. Cunningham | None | Over $100,000 |
Maureen Lally-Green | None | Over $100,000 |
Peter E. Madden | None | Over $100,000 |
Charles F. Mansfield, Jr. | None | Over $100,000 |
Thomas M. O'Neill | None | Over $100,000 |
John S. Walsh | $50,001 - $100,000 | Over $100,000 |
* | None of the Accounts has an advisory fee that is based on the performance of the account. |
Types of Accounts Managed
by Hans Utsch |
Total Number of Additional Accounts
Managed/Total Assets* |
Registered Investment Companies | 4/$1,878 million |
Other Pooled Investment Vehicles | 0/$0 |
Other Accounts | 0/$0 |
* | None of the Accounts has an advisory fee that is based on the performance of the account. |
Types of Accounts Managed
by Jonathan Art |
Total Number of Additional Accounts
Managed/Total Assets* |
Registered Investment Companies | 1/$95 million |
Other Pooled Investment Vehicles | 0/$0 |
Other Accounts | 0/$0 |
* | None of the Accounts has an advisory fee that is based on the performance of the account. |
Types of Accounts Managed
by Mark Bauknight |
Total Number of Additional Accounts
Managed/Total Assets* |
Registered Investment Companies | 2/$444 million |
Other Pooled Investment Vehicles | 0/$0 |
Other Accounts | 0/$0 |
* | None of the Accounts has an advisory fee that is based on the performance of the account. |
Types of Accounts Managed
by Thomas Brakel |
Total Number of Additional Accounts
Managed/Total Assets* |
Registered Investment Companies | 3/$1,204 million |
Other Pooled Investment Vehicles | 0/$0 |
Other Accounts | 0/$0 |
* | None of the Accounts has an advisory fee that is based on the performance of the account. |
Broker Dealer |
Value of
Securities Owned |
JPMorgan Chase & Co.
Wells Fargo |
$83,360,000
$80,350,650 |
For the Year Ended October 31 | 2012 | 2011 | 2010 |
Advisory Fee Earned | $79,799,496 | $97,739,359 | $98,832,016 |
Advisory Fee Reduction | $ 7,676,944 | $ 9,866,985 | $ 9,619,498 |
Advisory Fee Reimbursement | $ 723,003 | $ 421,369 | $ 783,872 |
Sub-Advisory Fee | $65,799,584 | $80,592,103 | $81,493,066 |
Brokerage Commissions | $11,791,715 | $20,415,349 | $16,588,250 |
Net Administrative Fee | $ 4,280,011 | $ 5,219,624 | $ 5,277,976 |
Net 12b-1 Fee: | |||
Class A Shares | $ 2,486,139 | — | — |
Class B Shares | $ 1,807,252 | — | — |
Class C Shares | $ 2,987,948 | — | — |
Class R Shares | $ 4,185,687 | — | — |
Net Shareholder Services Fee: | |||
Class A Shares | $ 4,816,186 | — | — |
Class B Shares | $ 424,020 | — | — |
Class C Shares | $ 1,100,814 | — | — |
Class R Shares | $ 7,416,186 | — | — |
■ | Buy call options on a Reference Instrument in anticipation of an increase in the value of the Reference Instrument; and |
■ | Write call options on a Reference Instrument to generate income from premiums, and in anticipation of a decrease or only limited increase in the value of the Reference Instrument. If the Fund writes a call option on a Reference Instrument that it owns and that call option is exercised, the Fund foregoes any possible profit from an increase in the market price of the Reference Instrument over the exercise price plus the premium received. |
■ | Buy put options on a Reference Instrument in anticipation of a decrease in the value of the Reference Instrument; and |
■ | Write put options on a Reference Instrument to generate income from premiums, and in anticipation of an increase or only limited decrease in the value of the Reference Instrument. In writing puts, there is a risk that the Fund may be required to take delivery of the Reference Instrument when its current market price is lower than the exercise price. |
■ | Equity securities listed on a U.S. securities exchange or traded through the U.S. national market system are valued at their last reported sale price or official closing price in their principal exchange or market. If a price is not readily available, such equity securities are valued based upon the mean of closing bid and asked quotations from one or more dealers. |
■ | Other equity securities traded primarily in the United States are valued based upon the mean of closing bid and asked quotations from one or more dealers. |
■ | Equity securities traded primarily through securities exchanges and regulated market systems outside the United States are valued at their last reported sale price or official closing price in their principal exchange or market. These prices may be adjusted for significant events occurring after the closing of such exchanges or market systems as described below. If a price is not readily available, such equity securities are valued based upon the mean of closing bid and asked quotations from one or more dealers. |
■ | Fixed-income securities and repurchase agreements acquired with remaining maturities of greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Board. The methods used by pricing services to determine such price evaluations are described below. If a price evaluation is not readily available, such fixed-income securities are fair valued based upon price evaluations from one or more dealers. |
■ | Fixed-income securities and repurchase agreements acquired with remaining maturities of 60 days or less are valued at their amortized cost as described below. |
■ | Futures contracts listed on exchanges are valued at their reported settlement price. Option contracts listed on exchanges are valued based upon the mean of closing bid and asked quotations reported by the exchange or from one or more futures commission merchants. |
■ | OTC derivative contracts are fair valued using price evaluations provided by various pricing services approved by the Board. The methods used by pricing services to determine such price evaluations are described below. If a price evaluation is not readily available, such derivative contracts are fair valued based upon price evaluations from one or more dealers or using a recognized pricing model for the contract. |
■ | Shares of other mutual funds are valued based upon their reported NAVs. The prospectuses for these mutual funds explain the circumstances under which they will use fair value pricing and the effects of using fair value pricing. |
■ | With respect to securities traded principally in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures contracts; |
■ | With respect to price evaluations of fixed-income securities determined before the close of regular trading on the NYSE, actions by the Federal Reserve Open Market Committee and other significant trends in U.S. fixed-income markets; |
■ | Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; and |
■ | Announcements concerning matters such as acquisitions, recapitalizations or litigation developments, or a natural disaster affecting the issuer's operations or regulatory changes or market developments affecting the issuer's industry. |
2012 | 2011 | 2010 | ||||
Total Sales
Charges |
Amount Retained |
Total Sales
Charges |
Amount Retained |
Total Sales
Charges |
Amount Retained | |
Class A Shares | $575,351 | $63,570 | $763,601 | $80,614 | $315,044 | $33,972 |
Class C Shares | $ 7,826 | $ 7,826 | $ 3,510 | $ 3,510 | $120,039 | $ 2,532 |
■ | Outstanding skills in disciplines deemed by the Independent Trustees to be particularly relevant to the role of Independent Trustee and to the Federated funds, including legal, accounting, business management, the financial industry generally and the investment industry particularly. |
■ | Desire and availability to serve for a substantial period of time, taking into account the Board's current mandatory retirement age of 73 years. |
■ | No conflicts which would interfere with qualifying as independent. |
■ | Appropriate interpersonal skills to work effectively with other Independent Trustees. |
■ | Understanding and appreciation of the important role occupied by Independent Trustees in the regulatory structure governing regulated investment companies. |
■ | Diversity of background. |
Name
Birth Date Positions Held with Trust Date Service Began |
Principal Occupation(s) for Past Five Years,
Other Directorships Held and Previous Position(s) |
Aggregate
Compensation From Fund (past fiscal year) |
Total Compensation
From Trust and Federated Fund Complex (past calendar year) |
John F. Donahue*
Birth Date: July 28, 1924 Trustee Began serving: April 1984 |
Principal Occupations:
Director or Trustee of the Federated Fund Complex; Chairman and Director, Federated Investors, Inc.; Chairman of the Federated Fund Complex's Executive Committee.
Previous Positions: Chairman of the Federated Fund Complex; Trustee, Federated Investment Management Company; Chairman and Director, Federated Investment Counseling. |
$0 | $0 |
J. Christopher Donahue*
Birth Date: April 11, 1949 President and Trustee Began serving: January 2000 |
Principal Occupations:
Principal Executive Officer and President of some of the Funds in the Federated Fund Complex; Director or Trustee of some of the Funds in the Federated Fund Complex; President, Chief
Executive Officer and Director, Federated Investors, Inc.; Chairman and Trustee, Federated Investment Management Company; Trustee, Federated Investment Counseling; Chairman and Director, Federated Global Investment
Management Corp.; Chairman, Federated Equity Management Company of Pennsylvania and Passport Research, Ltd. (investment advisory subsidiary of Federated); Trustee, Federated Shareholder Services Company; Director,
Federated Services Company.
Previous Positions: President, Federated Investment Counseling; President and Chief Executive Officer, Federated Investment Management Company, Federated Global Investment Management Corp. and Passport Research, Ltd. |
$0 | $0 |
* | Family relationships and reasons for “interested” status: John F. Donahue is the father of J. Christopher Donahue; both are “interested” due to their beneficial ownership of shares of Federated Investors, Inc. and the positions they hold with Federated and its subsidiaries. |
Name
Birth Date Positions Held with Trust Date Service Began |
Principal Occupation(s) and Other Directorships Held for
Past Five Years, Previous Position(s) and Qualifications |
Aggregate
Compensation From Fund (past fiscal year) |
Total Compensation
From Fund and Federated Fund Complex (past calendar year) |
Nicholas P. Constantakis, CPA
Birth Date: September 3, 1939 Trustee Began serving: February 1998 |
Principal Occupation:
Director or Trustee of the Federated Fund Complex.
Other Directorships Held: Director, Chairman of the Audit Committee, and member of the Compensation Committee, Michael Baker Corporation (architecture, engineering and construction services). Previous Position: Partner, Andersen Worldwide SC. Qualifications: Public accounting and director experience. |
$297.87 | $247,500 |
John F. Cunningham
Birth Date: March 5, 1943 Trustee Began serving: January 1999 |
Principal Occupation:
Director or Trustee of the Federated Fund Complex.
Other Directorships Held: Chairman, President and Chief Executive Officer, Cunningham & Co., Inc. (strategic business consulting); Trustee Associate, Boston College. Previous Positions: Director, Redgate Communications and EMC Corporation (computer storage systems); Chairman of the Board and Chief Executive Officer, Computer Consoles, Inc.; President and Chief Operating Officer, Wang Laboratories; Director, First National Bank of Boston; Director, Apollo Computer, Inc. Qualifications: Business management and director experience. |
$270.80 | $225,000 |
Maureen Lally-Green
Birth Date: July 5, 1949 Trustee Began serving: August 2009 |
Principal Occupations:
Director or Trustee of the Federated Fund Complex; Director, Office of Church Relations, Diocese of Pittsburgh; Adjunct Professor of Law, Duquesne University School of Law.
Other Directorships Held: Director, Auberle; Member, Pennsylvania State Board of Education; Director, Saint Vincent College; Director, Ireland Institute of Pittsburgh; Chair and Director, UPMC Mercy Hospital; Regent, St. Vincent Seminary; Director, Epilepsy Foundation of Western and Central Pennsylvania; Director, Saint Thomas More Society, Allegheny County; Director, Our Campaign for the Church Alive, Inc. Previous Position: Pennsylvania Superior Court Judge. Qualifications: Legal and director experience. |
$270.80 | $223,567.97 |
Peter E. Madden
Birth Date: March 16, 1942 Trustee Began serving: November 1991 |
Principal Occupation:
Director or Trustee, and Chairman of the Board of Directors or Trustees, of the Federated Fund Complex.
Previous Positions: Representative, Commonwealth of Massachusetts General Court; President, Chief Operating Officer and Director, State Street Bank and Trust Company and State Street Corporation (retired); Director, VISA USA and VISA International; Chairman and Director, Massachusetts Bankers Association; Director, Depository Trust Corporation; Director, The Boston Stock Exchange. Qualifications: Business management, mutual fund services and director experience. |
$373.08 | $310,000 |
Name
Birth Date Positions Held with Trust Date Service Began |
Principal Occupation(s) and Other Directorships Held for
Past Five Years, Previous Position(s) and Qualifications |
Aggregate
Compensation From Fund (past fiscal year) |
Total Compensation
From Fund and Federated Fund Complex (past calendar year) |
Charles F. Mansfield, Jr.
Birth Date: April 10, 1945 Trustee Began serving: January 1999 |
Principal Occupations:
Director or Trustee of the Federated Fund Complex; Management Consultant.
Previous Positions: Chief Executive Officer, PBTC International Bank; Partner, Arthur Young & Company (now Ernst & Young LLP); Chief Financial Officer of Retail Banking Sector, Chase Manhattan Bank; Senior Vice President, HSBC Bank USA (formerly Marine Midland Bank); Vice President, Citibank; Assistant Professor of Banking and Finance, Frank G. Zarb School of Business, Hofstra University; Executive Vice President DVC Group, Inc. (marketing, communications and technology). Qualifications: Banking, business management, education and director experience. |
$299.67 | $253,125 |
Thomas M. O'Neill
Birth Date: June 14, 1951 Trustee Began serving: October 2006 |
Principal Occupations:
Director or Trustee, Vice Chairman of the Audit Committee of the Federated Fund Complex; Sole Proprietor, Navigator Management Company (investment and strategic consulting).
Other Directorships Held: Board of Overseers, Children's Hospital of Boston; Visiting Committee on Athletics, Harvard College; Board of Directors, Medicines for Humanity; Board of Directors, The Golisano Children's Museum of Naples, Florida. Previous Positions: Chief Executive Officer and President, Managing Director and Chief Investment Officer, Fleet Investment Advisors; President and Chief Executive Officer, Aeltus Investment Management, Inc.; General Partner, Hellman, Jordan Management Co., Boston, MA; Chief Investment Officer, The Putnam Companies, Boston, MA; Credit Analyst and Lending Officer, Fleet Bank; Director and Consultant, EZE Castle Software (investment order management software); Director, Midway Pacific (lumber). Qualifications: Business management, mutual fund, director and investment experience. |
$297.87 | $247,500 |
John S. Walsh
Birth Date: November 28, 1957 Trustee Began serving: January 1999 |
Principal Occupations:
Director or Trustee, Chairman of the Audit Committee of the Federated Fund Complex; President and Director, Heat Wagon, Inc. (manufacturer of construction temporary heaters); President and
Director, Manufacturers Products, Inc. (distributor of portable construction heaters); President, Portable Heater Parts, a division of Manufacturers Products, Inc.
Previous Position: Vice President, Walsh & Kelly, Inc. Qualifications: Business management and director experience. |
$302.83 | $247,500 |
Name
Birth Date Address Positions Held with Trust Date Service Began |
Principal Occupation(s) and Previous Position(s) |
John W. McGonigle
Birth Date: October 26, 1938 EXECUTIVE VICE PRESIDENT AND SECRETARY Officer since: April 1984 |
Principal Occupations:
Executive Vice President and Secretary of the Federated Fund Complex; Vice Chairman, Executive Vice President, Secretary and Director, Federated Investors, Inc.
Previous Positions: Trustee, Federated Investment Management Company and Federated Investment Counseling; Director, Federated Global Investment Management Corp., Federated Services Company and Federated Securities Corp. |
Richard A. Novak
Birth Date: December 25, 1963 Treasurer Officer since: January 2006 |
Principal Occupations:
Principal Financial Officer and Treasurer of the Federated Fund Complex; Senior Vice President, Federated Administrative Services; Financial and Operations Principal for Federated
Securities Corp., Edgewood Services, Inc. and Southpointe Distribution Services, Inc.
Previous Positions: Controller of Federated Investors, Inc.; Vice President, Finance of Federated Services Company; held various financial management positions within The Mercy Hospital of Pittsburgh; Auditor, Arthur Andersen & Co. |
** | Officers do not receive any compensation from the Fund. |
Board
Committee |
Committee
Members |
Committee Functions |
Meetings Held
During Last Fiscal Year |
Executive |
John F. Donahue
Peter E. Madden John S. Walsh |
In between meetings of the full Board, the Executive Committee generally may exercise all the powers of the full Board in the management and direction of the business and conduct of the affairs of the Trust in such manner as the Executive Committee shall deem to be in the best interests of the Trust. However, the Executive Committee cannot elect or remove Board members, increase or decrease the number of Trustees, elect or remove any Officer, declare dividends, issue shares or recommend to shareholders any action requiring shareholder approval. | Two |
Board
Committee |
Committee
Members |
Committee Functions |
Meetings Held
During Last Fiscal Year |
Audit |
Nicholas P. Constantakis
Charles F. Mansfield, Jr. Thomas M. O'Neill John S. Walsh |
The purposes of the Audit Committee are to oversee the accounting and financial reporting process of the Fund, the Fund's internal control over financial reporting and the quality, integrity and independent audit of the Fund's financial statements. The Committee also oversees or assists the Board with the oversight of compliance with legal requirements relating to those matters, approves the engagement and reviews the qualifications, independence and performance of the Fund's independent registered public accounting firm, acts as a liaison between the independent registered public accounting firm and the Board and reviews the Fund's internal audit function. | Seven |
Nominating |
Nicholas P. Constantakis
John F. Cunningham Maureen Lally-Green Peter E. Madden Charles F. Mansfield, Jr. Thomas M. O'Neill John S. Walsh |
The Nominating Committee, whose members consist of all Independent Trustees, selects and nominates persons for election to the Fund's Board when vacancies occur. The Committee will consider candidates recommended by shareholders, Independent Trustees, officers or employees of any of the Fund's agents or service providers and counsel to the Fund. Any shareholder who desires to have an individual considered for nomination by the Committee must submit a recommendation in writing to the Secretary of the Fund, at the Fund's address appearing on the back cover of this SAI. The recommendation should include the name and address of both the shareholder and the candidate and detailed information concerning the candidate's qualifications and experience. In identifying and evaluating candidates for consideration, the Committee shall consider such factors as it deems appropriate. Those factors will ordinarily include: integrity, intelligence, collegiality, judgment, diversity, skill, business and other experience, qualification as an “Independent Trustee,” the existence of material relationships which may create the appearance of a lack of independence, financial or accounting knowledge and experience and dedication and willingness to devote the time and attention necessary to fulfill Board responsibilities. | None |
Interested Board
Member Name |
Dollar Range of
Shares Owned in Federated Kaufmann Large Cap Fund |
Aggregate
Dollar Range of Shares Owned in Federated Family of Investment Companies |
John F. Donahue | Over $100,000 | Over $100,000 |
J. Christopher Donahue | Over $100,000 | Over $100,000 |
Independent Board
Member Name |
||
Nicholas P. Constantakis | $50,001 - $100,000 | Over $100,000 |
John F. Cunningham | Over $100,000 | Over $100,000 |
Maureen Lally-Green | None | Over $100,000 |
Peter E. Madden | None | Over $100,000 |
Charles F. Mansfield, Jr. | None | Over $100,000 |
Thomas M. O'Neill | None | Over $100,000 |
John S. Walsh | $50,001 - $100,000 | Over $100,000 |
* | None of the Accounts has an advisory fee that is based on the performance of the account. |
Types of Accounts Managed
by Hans Utsch |
Total Number of Additional Accounts
Managed/Total Assets* |
Registered Investment Companies | 4/$6,889 million |
Other Pooled Investment Vehicles | 0/$0 |
Other Accounts | 0/$0 |
* | None of the Accounts has an advisory fee that is based on the performance of the account. |
* | None of the Accounts has an advisory fee that is based on the performance of the account. |
Types of Accounts Managed
by Thomas Brakel |
Total Number of Additional Accounts
Managed/Total Assets* |
Registered Investment Companies | 3/$6,216 million |
Other Pooled Investment Vehicles | 0/$0 |
Other Accounts | 0/$0 |
* | None of the Accounts has an advisory fee that is based on the performance of the account. |
Broker Dealer |
Value of
Securities Owned |
JP Morgan Chase
Goldman Sachs |
$7,614,936
$5,691,135 |
For the Period Ended October 31 | 2012 | 2011 | 2010 |
Advisory Fee Earned | $4,698,279 | $4,140,666 | $2,121,268 |
Advisory Fee Reduction | $1,269,578 | $1,342,119 | $ 925,278 |
Advisory Fee Reimbursement | $ 6.917 | $ 9,621 | $ 4,706 |
Sub-Advisory Fee | $3,874,020 | $3,414,233 | $1,749,116 |
Brokerage Commission | $ 695,612 | $1,227,164 | $ 406,233 |
Net Administrative Fee | $ 252,080 | $ 221,125 | $ 216,490 |
Net 12b-1 Fee: | |||
Class C Shares | $ 567,986 | — | — |
Class R Shares | $ 80,920 | — | — |
Net Shareholder Services Fee: | |||
Class A Shares | $ 342,254 | — | — |
Class C Shares | $ 189,329 | — | — |
Share Class | Ticker |
A | FKASX |
B | FKBSX |
C | FKCSX |
R | FKKSX |
■ | Buy call options on a Reference Instrument in anticipation of an increase in the value of the Reference Instrument; and |
■ | Write call options on a Reference Instrument to generate income from premiums, and in anticipation of a decrease or only limited increase in the value of the Reference Instrument. If the Fund writes a call option on a Reference Instrument that it owns and that call option is exercised, the Fund foregoes any possible profit from an increase in the market price of the Reference Instrument over the exercise price plus the premium received. |
■ | Buy put options on a Reference Instrument in anticipation of a decrease in the value of the Reference Instrument; and |
■ | Write put options on a Reference Instrument to generate income from premiums, and in anticipation of an increase or only limited decrease in the value of the Reference Instrument. In writing puts, there is a risk that the Fund may be required to take delivery of the Reference Instrument when its current market price is lower than the exercise price. |
■ | Equity securities listed on a U.S. securities exchange or traded through the U.S. national market system are valued at their last reported sale price or official closing price in their principal exchange or market. If a price is not readily available, such equity securities are valued based upon the mean of closing bid and asked quotations from one or more dealers. |
■ | Other equity securities traded primarily in the United States are valued based upon the mean of closing bid and asked quotations from one or more dealers. |
■ | Equity securities traded primarily through securities exchanges and regulated market systems outside the United States are valued at their last reported sale price or official closing price in their principal exchange or market. These prices may be adjusted for significant events occurring after the closing of such exchanges or market systems as described below. If a price is not readily available, such equity securities are valued based upon the mean of closing bid and asked quotations from one or more dealers. |
■ | Fixed-income securities and repurchase agreements acquired with remaining maturities of greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Board. The methods used by pricing services to determine such price evaluations are described below. If a price evaluation is not readily available, such fixed-income securities are fair valued based upon price evaluations from one or more dealers. |
■ | Fixed-income securities and repurchase agreements acquired with remaining maturities of 60 days or less are valued at their amortized cost as described below. |
■ | Futures contracts listed on exchanges are valued at their reported settlement price. Option contracts listed on exchanges are valued based upon the mean of closing bid and asked quotations reported by the exchange or from one or more futures commission merchants. |
■ | OTC derivative contracts are fair valued using price evaluations provided by various pricing services approved by the Board. The methods used by pricing services to determine such price evaluations are described below. If a price evaluation is not readily available, such derivative contracts are fair valued based upon price evaluations from one or more dealers or using a recognized pricing model for the contract. |
■ | Shares of other mutual funds are valued based upon their reported NAVs. The prospectuses for these mutual funds explain the circumstances under which they will use fair value pricing and the effects of using fair value pricing. |
■ | With respect to securities traded principally in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures contracts; |
■ | With respect to price evaluations of fixed-income securities determined before the close of regular trading on the NYSE, actions by the Federal Reserve Open Market Committee and other significant trends in U.S. fixed-income markets; |
■ | Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; and |
■ | Announcements concerning matters such as acquisitions, recapitalizations or litigation developments, or a natural disaster affecting the issuer's operations or regulatory changes or market developments affecting the issuer's industry. |
2012 | 2011 | 2010 | ||||
Total Sales
Charges |
Amount
Retained |
Total Sales
Charges |
Amount
Retained |
Total Sales
Charges |
Amount
Retained |
|
Class A Shares | $278,932 | $32,337 | $485,764 | $49,721 | $ 38,750 | $38,750 |
Class B Shares | $ 75,322 | $27,079 | $ 53,880 | $17,961 | $ 97,383 | — |
Class C Shares | $ 7,385 | $ 7,385 | $ 4,012 | $ 4,012 | $126,028 | $ 3,925 |
■ | Outstanding skills in disciplines deemed by the Independent Trustees to be particularly relevant to the role of Independent Trustee and to the Federated funds, including legal, accounting, business management, the financial industry generally and the investment industry particularly. |
■ | Desire and availability to serve for a substantial period of time, taking into account the Board's current mandatory retirement age of 73 years. |
■ | No conflicts which would interfere with qualifying as independent. |
■ | Appropriate interpersonal skills to work effectively with other Independent Trustees. |
■ | Understanding and appreciation of the important role occupied by Independent Trustees in the regulatory structure governing regulated investment companies. |
■ | Diversity of background. |
Name
Birth Date Positions Held with Trust Date Service Began |
Principal Occupation(s) for Past Five Years,
Other Directorships Held and Previous Position(s) |
Aggregate
Compensation From Fund (past fiscal year) |
Total Compensation
From Fund and Federated Fund Complex (past calendar year) |
John F. Donahue*
Birth Date: July 28, 1924 Trustee Began serving: April 1984 |
Principal Occupations:
Director or Trustee of the Federated Fund Complex; Chairman and Director, Federated Investors, Inc.; Chairman of the Federated Fund Complex's Executive Committee.
Previous Positions: Chairman of the Federated Fund Complex; Trustee, Federated Investment Management Company; Chairman and Director, Federated Investment Counseling. |
$0 | $0 |
J. Christopher Donahue*
Birth Date: April 11, 1949 President and Trustee Began serving: January 2000 |
Principal Occupations:
Principal Executive Officer and President of some of the Funds in the Federated Fund Complex; Director or Trustee of some of the Funds in the Federated Fund Complex; President, Chief
Executive Officer and Director, Federated Investors, Inc.; Chairman and Trustee, Federated Investment Management Company; Trustee, Federated Investment Counseling; Chairman and Director, Federated Global Investment
Management Corp.; Chairman, Federated Equity Management Company of Pennsylvania and Passport Research, Ltd. (investment advisory subsidiary of Federated); Trustee, Federated Shareholder Services Company; Director,
Federated Services Company.
Previous Positions: President, Federated Investment Counseling; President and Chief Executive Officer, Federated Investment Management Company, Federated Global Investment Management Corp. and Passport Research, Ltd. |
$0 | $0 |
* | Family relationships and reasons for “interested” status: John F. Donahue is the father of J. Christopher Donahue; both are “interested” due to their beneficial ownership of shares of Federated Investors, Inc. and the positions they hold with Federated and its subsidiaries. |
Name
Birth Date Positions Held with Trust Date Service Began |
Principal Occupation(s) for Past Five Years,
Other Directorships Held and Previous Position(s) |
Aggregate
Compensation From Fund (past fiscal year) |
Total Compensation
From Fund and Federated Fund Complex (past calendar year) |
Nicholas P. Constantakis, CPA
Birth Date: September 3, 1939 Trustee Began serving: February 1998 |
Principal Occupation:
Director or Trustee of the Federated Fund Complex.
Other Directorships Held: Director, Chairman of the Audit Committee, and member of the Compensation Committee, Michael Baker Corporation (architecture, engineering and construction services). Previous Position: Partner, Andersen Worldwide SC. Qualifications: Public accounting and director experience. |
$780.24 | $247,500 |
John F. Cunningham
Birth Date: March 5, 1943 Trustee Began serving: January 1999 |
Principal Occupation:
Director or Trustee of the Federated Fund Complex.
Other Directorships Held: Chairman, President and Chief Executive Officer, Cunningham & Co., Inc. (strategic business consulting); Trustee Associate, Boston College. Previous Positions: Director, Redgate Communications and EMC Corporation (computer storage systems); Chairman of the Board and Chief Executive Officer, Computer Consoles, Inc.; President and Chief Operating Officer, Wang Laboratories; Director, First National Bank of Boston; Director, Apollo Computer, Inc. Qualifications: Business management and director experience. |
$709.34 | $225,000 |
Maureen Lally-Green
Birth Date: July 5, 1949 Trustee Began serving: August 2009 |
Principal Occupations:
Director or Trustee of the Federated Fund Complex; Director, Office of Church Relations, Diocese of Pittsburgh; Adjunct Professor of Law, Duquesne University School of Law.
Other Directorships Held: Director, Auberle; Member, Pennsylvania State Board of Education; Director, Saint Vincent College; Director, Ireland Institute of Pittsburgh; Chair and Director, UPMC Mercy Hospital; Regent, St. Vincent Seminary; Director, Epilepsy Foundation of Western and Central Pennsylvania; Director, Saint Thomas More Society, Allegheny County; Director, Our Campaign for the Church Alive, Inc. Previous Position: Pennsylvania Superior Court Judge. Qualifications: Legal and director experience. |
$709.34 | $223,567.97 |
Peter E. Madden
Birth Date: March 16, 1942 Trustee Began serving: November 1991 |
Principal Occupation:
Director or Trustee, and Chairman of the Board of Directors or Trustees, of the Federated Fund Complex.
Previous Positions: Representative, Commonwealth of Massachusetts General Court; President, Chief Operating Officer and Director, State Street Bank and Trust Company and State Street Corporation (retired); Director, VISA USA and VISA International; Chairman and Director, Massachusetts Bankers Association; Director, Depository Trust Corporation; Director, The Boston Stock Exchange. Qualifications: Business management, mutual fund services and director experience. |
$977.27 | $310,000 |
Charles F. Mansfield, Jr.
Birth Date: April 10, 1945 Trustee Began serving: January 1999 |
Principal Occupations:
Director or Trustee of the Federated Fund Complex; Management Consultant.
Previous Positions: Chief Executive Officer, PBTC International Bank; Partner, Arthur Young & Company (now Ernst & Young LLP); Chief Financial Officer of Retail Banking Sector, Chase Manhattan Bank; Senior Vice President, HSBC Bank USA (formerly Marine Midland Bank); Vice President, Citibank; Assistant Professor of Banking and Finance, Frank G. Zarb School of Business, Hofstra University; Executive Vice President DVC Group, Inc. (marketing, communications and technology). Qualifications: Banking, business management, education and director experience. |
$785.86 | $253,125 |
Name
Birth Date Positions Held with Trust Date Service Began |
Principal Occupation(s) for Past Five Years,
Other Directorships Held and Previous Position(s) |
Aggregate
Compensation From Fund (past fiscal year) |
Total Compensation
From Fund and Federated Fund Complex (past calendar year) |
Thomas M. O'Neill
Birth Date: June 14, 1951 Trustee Began serving: October 2006 |
Principal Occupations:
Director or Trustee, Vice Chairman of the Audit Committee of the Federated Fund Complex; Sole Proprietor, Navigator Management Company (investment and strategic consulting).
Other Directorships Held: Board of Overseers, Children's Hospital of Boston; Visiting Committee on Athletics, Harvard College; Board of Directors, Medicines for Humanity; Board of Directors, The Golisano Children's Museum of Naples, Florida. Previous Positions: Chief Executive Officer and President, Managing Director and Chief Investment Officer, Fleet Investment Advisors; President and Chief Executive Officer, Aeltus Investment Management, Inc.; General Partner, Hellman, Jordan Management Co., Boston, MA; Chief Investment Officer, The Putnam Companies, Boston, MA; Credit Analyst and Lending Officer, Fleet Bank; Director and Consultant, EZE Castle Software (investment order management software); Director, Midway Pacific (lumber). Qualifications: Business management, mutual fund, director and investment experience. |
$780.24 | $247,500 |
John S. Walsh
Birth Date: November 28, 1957 Trustee Began serving: January 1999 |
Principal Occupations:
Director or Trustee, Chairman of the Audit Committee of the Federated Fund Complex; President and Director, Heat Wagon, Inc. (manufacturer of construction temporary heaters); President and
Director, Manufacturers Products, Inc. (distributor of portable construction heaters); President, Portable Heater Parts, a division of Manufacturers Products, Inc.
Previous Position: Vice President, Walsh & Kelly, Inc. Qualifications: Business management and director experience. |
$792.37 | $247,500 |
Name
Birth Date Address Positions Held with Trust Date Service Began |
Principal Occupation(s) and Previous Position(s) |
John W. McGonigle
Birth Date: October 26, 1938 EXECUTIVE VICE PRESIDENT AND SECRETARY Officer since: April 1984 |
Principal Occupations:
Executive Vice President and Secretary of the Federated Fund Complex; Vice Chairman, Executive Vice President, Secretary and Director, Federated Investors, Inc.
Previous Positions: Trustee, Federated Investment Management Company and Federated Investment Counseling; Director, Federated Global Investment Management Corp., Federated Services Company and Federated Securities Corp. |
Richard A. Novak
Birth Date: December 25, 1963 Treasurer Officer since: January 2006 |
Principal Occupations:
Principal Financial Officer and Treasurer of the Federated Fund Complex; Senior Vice President, Federated Administrative Services; Financial and Operations Principal for Federated
Securities Corp., Edgewood Services, Inc. and Southpointe Distribution Services, Inc.
Previous Positions: Controller of Federated Investors, Inc.; Vice President, Finance of Federated Services Company; held various financial management positions within The Mercy Hospital of Pittsburgh; Auditor, Arthur Andersen & Co. |
Peter J. Germain
Birth Date: September 3, 1959 CHIEF LEGAL OFFICER Officer since: January 2005 |
Principal Occupations
: Mr. Germain is Chief Legal Officer of the Federated Fund Complex. He is General Counsel and Vice President, Federated Investors, Inc.; President, Federated Administrative Services and
Federated Administrative Services, Inc.; Vice President, Federated Securities Corp.; Secretary, Federated Private Asset Management, Inc.; and Secretary, Retirement Plan Service Company of America. Mr. Germain joined
Federated in 1984 and is a member of the Pennsylvania Bar Association.
Previous Positions : Deputy General Counsel, Special Counsel, Managing Director of Mutual Fund Services, Federated Investors, Inc.; Senior Vice President, Federated Services Company; and Senior Corporate Counsel, Federated Investors, Inc. |
Richard B. Fisher
Birth Date: May 17, 1923 Vice President Officer since: April 1987 |
Principal Occupations:
Vice Chairman or Vice President of some of the Funds in the Federated Fund Complex; Vice Chairman, Federated Investors, Inc.; Chairman, Federated Securities Corp.
Previous Positions: President and Director or Trustee of some of the Funds in the Federated Fund Complex; Executive Vice President, Federated Investors, Inc.; Director and Chief Executive Officer, Federated Securities Corp. |
** | Officers do not receive any compensation from the Fund. |
Board
Committee |
Committee
Members |
Committee Functions |
Meetings Held
During Last Fiscal Year |
Executive |
John F. Donahue
Peter E. Madden John S. Walsh |
In between meetings of the full Board, the Executive Committee generally may exercise all the powers of the full Board in the management and direction of the business and conduct of the affairs of the Trust in such manner as the Executive Committee shall deem to be in the best interests of the Trust. However, the Executive Committee cannot elect or remove Board members, increase or decrease the number of Trustees, elect or remove any Officer, declare dividends, issue shares or recommend to shareholders any action requiring shareholder approval. | Two |
Audit |
Nicholas P. Constantakis
Charles F. Mansfield, Jr. Thomas M. O'Neill John S. Walsh |
The purposes of the Audit Committee are to oversee the accounting and financial reporting process of the Fund, the Fund's internal control over financial reporting and the quality, integrity and independent audit of the Fund's financial statements. The Committee also oversees or assists the Board with the oversight of compliance with legal requirements relating to those matters, approves the engagement and reviews the qualifications, independence and performance of the Fund's independent registered public accounting firm, acts as a liaison between the independent registered public accounting firm and the Board and reviews the Fund's internal audit function. | Seven |
Board
Committee |
Committee
Members |
Committee Functions |
Meetings Held
During Last Fiscal Year |
Nominating |
Nicholas P. Constantakis
John F. Cunningham Maureen Lally-Green Peter E. Madden Charles F. Mansfield, Jr. Thomas M. O'Neill John S. Walsh |
The Nominating Committee, whose members consist of all Independent Trustees, selects and nominates persons for election to the Fund's Board when vacancies occur. The Committee will consider candidates recommended by shareholders, Independent Trustees, officers or employees of any of the Fund's agents or service providers and counsel to the Fund. Any shareholder who desires to have an individual considered for nomination by the Committee must submit a recommendation in writing to the Secretary of the Fund, at the Fund's address appearing on the back cover of this SAI. The recommendation should include the name and address of both the shareholder and the candidate and detailed information concerning the candidate's qualifications and experience. In identifying and evaluating candidates for consideration, the Committee shall consider such factors as it deems appropriate. Those factors will ordinarily include: integrity, intelligence, collegiality, judgment, diversity, skill, business and other experience, qualification as an “Independent Trustee,” the existence of material relationships which may create the appearance of a lack of independence, financial or accounting knowledge and experience and dedication and willingness to devote the time and attention necessary to fulfill Board responsibilities. | None |
Interested Board
Member Name |
Dollar Range of
Shares Owned in Federated Kaufmann Small Cap Fund |
Aggregate
Dollar Range of Shares Owned in Federated Family of Investment Companies |
John F. Donahue | Over $100,000 | Over $100,000 |
J. Christopher Donahue | $50,001 - $100,000 | Over $100,000 |
Independent Board
Member Name |
||
Nicholas P. Constantakis | Over $100,000 | Over $100,000 |
John F. Cunningham | None | Over $100,000 |
Maureen Lally-Green | None | Over $100,000 |
Peter E. Madden | None | Over $100,000 |
Charles F. Mansfield, Jr. | None | Over $100,000 |
Thomas M. O'Neill | None | Over $100,000 |
John S. Walsh | $50,001 - $100,000 | Over $100,000 |
* | None of the Accounts has an advisory fee that is based on the performance of the account. |
Types of Accounts Managed
by Hans Utsch |
Total Number of Additional Accounts
Managed/Total Assets* |
Registered Investment Companies | 4/$6,478 million |
Other Pooled Investment Vehicles | 0/$0 |
Other Accounts | 0/$0 |
* | None of the Accounts has an advisory fee that is based on the performance of the account. |
Types of Accounts Managed
by Aash Shah |
Total Number of Additional Accounts
Managed/Total Assets* |
Registered Investment Companies | 1/$673 million |
Other Pooled Investment Vehicles | 0/$0 |
Other Accounts | 0/$0 |
* | None of the Accounts has an advisory fee that is based on the performance of the account. |
Types of Accounts Managed
by John Ettinger |
Total Number of Additional Accounts
Managed/Total Assets* |
Registered Investment Companies | 1/$673 million |
Other Pooled Investment Vehicles | 0/$0 |
Other Accounts | 0/$0 |
* | None of the Accounts has an advisory fee that is based on the performance of the account. |
* | None of the Accounts has an advisory fee that is based on the performance of the account. |
Types of Accounts Managed
by Thomas Brakel |
Total Number of Additional Accounts
Managed/Total Assets* |
Registered Investment Companies | 3/$5,805 million |
Other Pooled Investment Vehicles | 0/$0 |
Other Accounts | 0/$0 |
* | None of the Accounts has an advisory fee that is based on the performance of the account. |
For the Year Ended October 31 | 2012 | 2011 | 2010 |
Advisory Fee Earned | $12,541,435 | $17,281,304 | $15,746,689 |
Advisory Fee Reduction | $ 1,034,108 | $ 1,728,410 | $ 1,445,337 |
Advisory Fee Reimbursement | $ 140,361 | $ 94,362 | $ 136,151 |
Sub-Advisory Fee | $10,341,183 | $14,249,497 | $12,984,112 |
Brokerage Commissions | $ 2,393,422 | $ 3,167,464 | $ 4,355,131 |
Net Administrative Fee | $ 672,400 | $ 922,882 | $ 840,929 |
Net 12b-1 Fee: | |||
Class A Shares | $ 1,274,856 | — | — |
Class B Shares | $ 383,904 | — | — |
Class C Shares | $ 1,266,001 | — | — |
Class R Shares | $ 60,089 | ||
Net Shareholder Services Fee: | |||
Class A Shares | $ 1,548,456 | — | — |
Class B Shares | $ 127,968 | — | — |
Class C Shares | $ 421,835 | — | — |
■ | Buy call options on a Reference Instrument in anticipation of an increase in the value of the Reference Instrument; and |
■ | Write call options on a Reference Instrument to generate income from premiums, and in anticipation of a decrease or only limited increase in the value of the Reference Instrument. If the Fund writes a call option on a Reference Instrument that it owns and that call option is exercised, the Fund foregoes any possible profit from an increase in the market price of the Reference Instrument over the exercise price plus the premium received. |
■ | Buy put options on a Reference Instrument in anticipation of a decrease in the value of the Reference Instrument; and |
■ | Write put options on a Reference Instrument to generate income from premiums, and in anticipation of an increase or only limited decrease in the value of the Reference Instrument. In writing puts, there is a risk that the Fund may be required to take delivery of the Reference Instrument when its current market price is lower than the exercise price. |
■ | Equity securities listed on a U.S. securities exchange or traded through the U.S. national market system are valued at their last reported sale price or official closing price in their principal exchange or market. If a price is not readily available, such equity securities are valued based upon the mean of closing bid and asked quotations from one or more dealers. |
■ | Other equity securities traded primarily in the United States are valued based upon the mean of closing bid and asked quotations from one or more dealers. |
■ | Equity securities traded primarily through securities exchanges and regulated market systems outside the United States are valued at their last reported sale price or official closing price in their principal exchange or market. These prices may be adjusted for significant events occurring after the closing of such exchanges or market systems as described below. If a price is not readily available, such equity securities are valued based upon the mean of closing bid and asked quotations from one or more dealers. |
■ | Fixed-income securities and repurchase agreements acquired with remaining maturities of greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Board. The methods used by pricing services to determine such price evaluations are described below. If a price evaluation is not readily available, such fixed-income securities are fair valued based upon price evaluations from one or more dealers. |
■ | Fixed-income securities and repurchase agreements acquired with remaining maturities of 60 days or less are valued at their amortized cost as described below. |
■ | Futures contracts listed on exchanges are valued at their reported settlement price. Option contracts listed on exchanges are valued based upon the mean of closing bid and asked quotations reported by the exchange or from one or more futures commission merchants. |
■ | OTC derivative contracts are fair valued using price evaluations provided by various pricing services approved by the Board. The methods used by pricing services to determine such price evaluations are described below. If a price evaluation is not readily available, such derivative contracts are fair valued based upon price evaluations from one or more dealers or using a recognized pricing model for the contract. |
■ | Shares of other mutual funds are valued based upon their reported NAVs. The prospectuses for these mutual funds explain the circumstances under which they will use fair value pricing and the effects of using fair value pricing. |
■ | With respect to securities traded principally in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures contracts; |
■ | With respect to price evaluations of fixed-income securities determined before the close of regular trading on the NYSE, actions by the Federal Reserve Open Market Committee and other significant trends in U.S. fixed-income markets; |
■ | Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; and |
■ | Announcements concerning matters such as acquisitions, recapitalizations or litigation developments, or a natural disaster affecting the issuer's operations or regulatory changes or market developments affecting the issuer's industry. |
2012 | 2011 | 2010 | ||||
Total Sales
Charges |
Amount
Retained |
Total Sales
Charges |
Amount
Retained |
Total Sales
Charges |
Amount
Retained |
|
Class A Shares | $117,810 | $13,267 | $399,670 | $42,643 | $848,496 | $272,331 |
Class B Shares | $127,787 | $34,189 | $ 59,559 | — | $ 99,856 | — |
Class C Shares | $ 65.570 | $16,764 | $ 6,972 | — | $579,934 | $186,423 |
■ | Outstanding skills in disciplines deemed by the Independent Trustees to be particularly relevant to the role of Independent Trustee and to the Federated funds, including legal, accounting, business management, the financial industry generally and the investment industry particularly. |
■ | Desire and availability to serve for a substantial period of time, taking into account the Board's current mandatory retirement age of 73 years. |
■ | No conflicts which would interfere with qualifying as independent. |
■ | Appropriate interpersonal skills to work effectively with other Independent Trustees. |
■ | Understanding and appreciation of the important role occupied by Independent Trustees in the regulatory structure governing regulated investment companies. |
■ | Diversity of background. |
Name
Birth Date Positions Held with Trust Date Service Began |
Principal Occupation(s) for Past Five Years,
Other Directorships Held and Previous Position(s) |
Aggregate
Compensation From Fund (past fiscal year) |
Total Compensation
From Trust and Federated Fund Complex (past calendar year) |
John F. Donahue*
Birth Date: July 28, 1924 Trustee Began serving: April 1984 |
Principal Occupations:
Director or Trustee of the Federated Fund Complex; Chairman and Director, Federated Investors, Inc.; Chairman of the Federated Fund Complex's Executive Committee.
Previous Positions: Chairman of the Federated Fund Complex; Trustee, Federated Investment Management Company; Chairman and Director, Federated Investment Counseling. |
$0 | $0 |
Name
Birth Date Positions Held with Trust Date Service Began |
Principal Occupation(s) for Past Five Years,
Other Directorships Held and Previous Position(s) |
Aggregate
Compensation From Fund (past fiscal year) |
Total Compensation
From Trust and Federated Fund Complex (past calendar year) |
J. Christopher Donahue*
Birth Date: April 11, 1949 President and Trustee Began serving: January 2000 |
Principal Occupations:
Principal Executive Officer and President of some of the Funds in the Federated Fund Complex; Director or Trustee of some of the Funds in the Federated Fund Complex; President, Chief
Executive Officer and Director, Federated Investors, Inc.; Chairman and Trustee, Federated Investment Management Company; Trustee, Federated Investment Counseling; Chairman and Director, Federated Global Investment
Management Corp.; Chairman, Federated Equity Management Company of Pennsylvania and Passport Research, Ltd. (investment advisory subsidiary of Federated); Trustee, Federated Shareholder Services Company; Director,
Federated Services Company.
Previous Positions: President, Federated Investment Counseling; President and Chief Executive Officer, Federated Investment Management Company, Federated Global Investment Management Corp. and Passport Research, Ltd. |
$0 | $0 |
* | Family relationships and reasons for “interested” status: John F. Donahue is the father of J. Christopher Donahue; both are “interested” due to their beneficial ownership of shares of Federated Investors, Inc. and the positions they hold with Federated and its subsidiaries. |
Name
Birth Date Positions Held with Trust Date Service Began |
Principal Occupation(s) and Other Directorships Held for
Past Five Years, Previous Position(s) and Qualifications |
Aggregate
Compensation From Fund (past fiscal year) |
Total Compensation
From Fund and Federated Fund Complex (past calendar year) |
Nicholas P. Constantakis, CPA
Birth Date: September 3, 1939 Trustee Began serving: February 1998 |
Principal Occupation:
Director or Trustee of the Federated Fund Complex.
Other Directorships Held: Director, Chairman of the Audit Committee, and member of the Compensation Committee, Michael Baker Corporation (architecture, engineering and construction services). Previous Position: Partner, Andersen Worldwide SC. Qualifications: Public accounting and director experience. |
$505.16 | $247,500 |
John F. Cunningham
Birth Date: March 5, 1943 Trustee Began serving: January 1999 |
Principal Occupation:
Director or Trustee of the Federated Fund Complex.
Other Directorships Held: Chairman, President and Chief Executive Officer, Cunningham & Co., Inc. (strategic business consulting); Trustee Associate, Boston College. Previous Positions: Director, Redgate Communications and EMC Corporation (computer storage systems); Chairman of the Board and Chief Executive Officer, Computer Consoles, Inc.; President and Chief Operating Officer, Wang Laboratories; Director, First National Bank of Boston; Director, Apollo Computer, Inc. Qualifications: Business management and director experience. |
$459.22 | $225,000 |
Maureen Lally-Green
Birth Date: July 5, 1949 Trustee Began serving: August 2009 |
Principal Occupations:
Director or Trustee of the Federated Fund Complex; Director, Office of Church Relations, Diocese of Pittsburgh; Adjunct Professor of Law, Duquesne University School of Law.
Other Directorships Held: Director, Auberle; Member, Pennsylvania State Board of Education; Director, Saint Vincent College; Director, Ireland Institute of Pittsburgh; Chair and Director, UPMC Mercy Hospital; Regent, St. Vincent Seminary; Director, Epilepsy Foundation of Western and Central Pennsylvania; Director, Saint Thomas More Society, Allegheny County; Director, Our Campaign for the Church Alive, Inc. Previous Position: Pennsylvania Superior Court Judge. Qualifications: Legal and director experience. |
$459.22 | $223,567.97 |
Name
Birth Date Positions Held with Trust Date Service Began |
Principal Occupation(s) and Other Directorships Held for
Past Five Years, Previous Position(s) and Qualifications |
Aggregate
Compensation From Fund (past fiscal year) |
Total Compensation
From Fund and Federated Fund Complex (past calendar year) |
Peter E. Madden
Birth Date: March 16, 1942 Trustee Began serving: November 1991 |
Principal Occupation:
Director or Trustee, and Chairman of the Board of Directors or Trustees, of the Federated Fund Complex.
Previous Positions: Representative, Commonwealth of Massachusetts General Court; President, Chief Operating Officer and Director, State Street Bank and Trust Company and State Street Corporation (retired); Director, VISA USA and VISA International; Chairman and Director, Massachusetts Bankers Association; Director, Depository Trust Corporation; Director, The Boston Stock Exchange. Qualifications: Business management, mutual fund services and director experience. |
$632.70 | $310,000 |
Charles F. Mansfield, Jr.
Birth Date: April 10, 1945 Trustee Began serving: January 1999 |
Principal Occupations:
Director or Trustee of the Federated Fund Complex; Management Consultant.
Previous Positions: Chief Executive Officer, PBTC International Bank; Partner, Arthur Young & Company (now Ernst & Young LLP); Chief Financial Officer of Retail Banking Sector, Chase Manhattan Bank; Senior Vice President, HSBC Bank USA (formerly Marine Midland Bank); Vice President, Citibank; Assistant Professor of Banking and Finance, Frank G. Zarb School of Business, Hofstra University; Executive Vice President DVC Group, Inc. (marketing, communications and technology). Qualifications: Banking, business management, education and director experience. |
$508.29 | $253,125 |
Thomas M. O'Neill
Birth Date: June 14, 1951 Trustee Began serving: October 2006 |
Principal Occupations:
Director or Trustee, Vice Chairman of the Audit Committee of the Federated Fund Complex; Sole Proprietor, Navigator Management Company (investment and strategic consulting).
Other Directorships Held: Board of Overseers, Children's Hospital of Boston; Visiting Committee on Athletics, Harvard College; Board of Directors, Medicines for Humanity; Board of Directors, The Golisano Children's Museum of Naples, Florida. Previous Positions: Chief Executive Officer and President, Managing Director and Chief Investment Officer, Fleet Investment Advisors; President and Chief Executive Officer, Aeltus Investment Management, Inc.; General Partner, Hellman, Jordan Management Co., Boston, MA; Chief Investment Officer, The Putnam Companies, Boston, MA; Credit Analyst and Lending Officer, Fleet Bank; Director and Consultant, EZE Castle Software (investment order management software); Director, Midway Pacific (lumber). Qualifications: Business management, mutual fund, director and investment experience. |
$505.16 | $247,500 |
John S. Walsh
Birth Date: November 28, 1957 Trustee Began serving: January 1999 |
Principal Occupations:
Director or Trustee, Chairman of the Audit Committee of the Federated Fund Complex; President and Director, Heat Wagon, Inc. (manufacturer of construction temporary heaters); President and
Director, Manufacturers Products, Inc. (distributor of portable construction heaters); President, Portable Heater Parts, a division of Manufacturers Products, Inc.
Previous Position: Vice President, Walsh & Kelly, Inc. Qualifications: Business management and director experience. |
$513.51 | $247,500 |
Name
Birth Date Address Positions Held with Trust Date Service Began |
Principal Occupation(s) and Previous Position(s) |
John W. McGonigle
Birth Date: October 26, 1938 EXECUTIVE VICE PRESIDENT AND SECRETARY Officer since: April 1984 |
Principal Occupations:
Executive Vice President and Secretary of the Federated Fund Complex; Vice Chairman, Executive Vice President, Secretary and Director, Federated Investors, Inc.
Previous Positions: Trustee, Federated Investment Management Company and Federated Investment Counseling; Director, Federated Global Investment Management Corp., Federated Services Company and Federated Securities Corp. |
Richard A. Novak
Birth Date: December 25, 1963 Treasurer Officer since: January 2006 |
Principal Occupations:
Principal Financial Officer and Treasurer of the Federated Fund Complex; Senior Vice President, Federated Administrative Services; Financial and Operations Principal for Federated
Securities Corp., Edgewood Services, Inc. and Southpointe Distribution Services, Inc.
Previous Positions: Controller of Federated Investors, Inc.; Vice President, Finance of Federated Services Company; held various financial management positions within The Mercy Hospital of Pittsburgh; Auditor, Arthur Andersen & Co. |
Peter J. Germain
Birth Date: September 3, 1959 CHIEF LEGAL OFFICER Officer since: January 2005 |
Principal Occupations
: Mr. Germain is Chief Legal Officer of the Federated Fund Complex. He is General Counsel and Vice President, Federated Investors, Inc.; President, Federated Administrative Services and
Federated Administrative Services, Inc.; Vice President, Federated Securities Corp.; Secretary, Federated Private Asset Management, Inc.; and Secretary, Retirement Plan Service Company of America. Mr. Germain joined
Federated in 1984 and is a member of the Pennsylvania Bar Association.
Previous Positions : Deputy General Counsel, Special Counsel, Managing Director of Mutual Fund Services, Federated Investors, Inc.; Senior Vice President, Federated Services Company; and Senior Corporate Counsel, Federated Investors, Inc. |
Richard B. Fisher
Birth Date: May 17, 1923 Vice President Officer since: April 1987 |
Principal Occupations:
Vice Chairman or Vice President of some of the Funds in the Federated Fund Complex; Vice Chairman, Federated Investors, Inc.; Chairman, Federated Securities Corp.
Previous Positions: President and Director or Trustee of some of the Funds in the Federated Fund Complex; Executive Vice President, Federated Investors, Inc.; Director and Chief Executive Officer, Federated Securities Corp. |
Brian P. Bouda
Birth Date: February 28, 1947 CHIEF COMPLIANCE OFFICER AND SENIOR VICE PRESIDENT Officer since: August 2004 |
Principal Occupations: Senior Vice President and Chief Compliance Officer of the Federated Fund Complex; Vice President and Chief Compliance Officer of Federated Investors, Inc. and Chief Compliance Officer of its subsidiaries. Mr. Bouda joined Federated in 1999 and is a member of the American Bar Association and the State Bar Association of Wisconsin. |
Stephen F. Auth
Birth Date: September 3, 1956 450 Lexington Avenue Suite 3700 New York, NY 10017-3943 CHIEF INVESTMENT OFFICER Officer since: November 2002 |
Principal Occupations:
Stephen F. Auth is Chief Investment Officer of this Fund and various other Funds in the Federated Fund Complex; Executive Vice President, Federated Investment Counseling, Federated Global
Investment Management Corp. and Federated Equity Management Company of Pennsylvania.
Previous Positions: Executive Vice President, Federated Investment Management Company and Passport Research, Ltd. (investment advisory subsidiary of Federated); Senior Vice President, Global Portfolio Management Services Division; Senior Vice President, Federated Investment Management Company and Passport Research, Ltd.; Senior Managing Director and Portfolio Manager, Prudential Investments. |
Dana L. Meissner
Birth Date: November 12, 1968 VICE PRESIDENT Officer since: December 2012 Portfolio Manager since: February 2009 |
Principal Occupations: Dana L. Meissner has been the Fund's Portfolio Manager since February 2009. He is Vice President of the Trust with respect to the Fund. Mr. Meissner, a Vice President of a Federated advisory subsidiary, joined Federated in May 2000 as an investment analyst and became senior investment analyst and assistant vice president in 2003. Mr. Meissner has received the Chartered Financial Analyst designation and is a member of the CFA Society of Pittsburgh. He received his MSIA from Carnegie Mellon University and M.S. and B.S. in Engineering from the University of Toledo. |
** | Officers do not receive any compensation from the Fund. |
Board
Committee |
Committee
Members |
Committee Functions |
Meetings Held
During Last Fiscal Year |
Executive |
John F. Donahue
Peter E. Madden John S. Walsh |
In between meetings of the full Board, the Executive Committee generally may exercise all the powers of the full Board in the management and direction of the business and conduct of the affairs of the Trust in such manner as the Executive Committee shall deem to be in the best interests of the Trust. However, the Executive Committee cannot elect or remove Board members, increase or decrease the number of Trustees, elect or remove any Officer, declare dividends, issue shares or recommend to shareholders any action requiring shareholder approval. | Two |
Audit |
Nicholas P. Constantakis
Charles F. Mansfield, Jr. Thomas M. O'Neill John S. Walsh |
The purposes of the Audit Committee are to oversee the accounting and financial reporting process of the Fund, the Fund's internal control over financial reporting and the quality, integrity and independent audit of the Fund's financial statements. The Committee also oversees or assists the Board with the oversight of compliance with legal requirements relating to those matters, approves the engagement and reviews the qualifications, independence and performance of the Fund's independent registered public accounting firm, acts as a liaison between the independent registered public accounting firm and the Board and reviews the Fund's internal audit function. | Seven |
Nominating |
Nicholas P. Constantakis
John F. Cunningham Maureen Lally-Green Peter E. Madden Charles F. Mansfield, Jr. Thomas M. O'Neill John S. Walsh |
The Nominating Committee, whose members consist of all Independent Trustees, selects and nominates persons for election to the Fund's Board when vacancies occur. The Committee will consider candidates recommended by shareholders, Independent Trustees, officers or employees of any of the Fund's agents or service providers and counsel to the Fund. Any shareholder who desires to have an individual considered for nomination by the Committee must submit a recommendation in writing to the Secretary of the Fund, at the Fund's address appearing on the back cover of this SAI. The recommendation should include the name and address of both the shareholder and the candidate and detailed information concerning the candidate's qualifications and experience. In identifying and evaluating candidates for consideration, the Committee shall consider such factors as it deems appropriate. Those factors will ordinarily include: integrity, intelligence, collegiality, judgment, diversity, skill, business and other experience, qualification as an “Independent Trustee,” the existence of material relationships which may create the appearance of a lack of independence, financial or accounting knowledge and experience and dedication and willingness to devote the time and attention necessary to fulfill Board responsibilities. | Zero |
Interested Board
Member Name |
Dollar Range of
Shares Owned in Federated Absolute Return Fund |
Aggregate
Dollar Range of Shares Owned in Federated Family of Investment Companies |
John F. Donahue | Over $100,000 | Over $100,000 |
J. Christopher Donahue | $50,001 - $100,000 | Over $100,000 |
Independent Board
Member Name |
||
Nicholas P. Constantakis | None | Over $100,000 |
John F. Cunningham | None | Over $100,000 |
Maureen Lally-Green | None | Over $100,000 |
Peter E. Madden | None | Over $100,000 |
Charles F. Mansfield, Jr. | $1 - $10,000 | Over $100,000 |
Thomas M. O'Neill | None | Over $100,000 |
John S. Walsh | $50,0001 - $100,000 | Over $100,000 |
Types of Accounts Managed
by Dana Meissner |
Total Number of Additional Accounts
Managed/Total Assets* |
Registered Investment Companies | 0/$0 |
Other Pooled Investment Vehicles | 0/$0 |
Other Accounts | 0/$0 |
* | None of the Accounts has an advisory fee that is based on the performance of the account. |
For the Year Ended October 31 | 2012 | 2011 | 2010 |
Advisory Fee Earned | $4,034,750 | $5,791,604 | $10,119,456 |
Advisory Fee Reduction | $ 447,760 | $ 423,063 | $ 0 |
Advisory Fee Reimbursement | $ 57,338 | $ 204,267 | $ 656,008 |
Brokerage Commissions | $1,183,508 | $2,204,728 | $ 6,785,451 |
Net Administrative Fee | $ 410,898 | $ 587,655 | $ 1,026,788 |
Net 12b-1 Fee: | |||
Class A Shares | $ 0 | - | - |
Class B Shares | $ 345,089 | - | - |
Class C Shares | $1,367,615 | - | - |
Institutional Shares | $ 0 | - | - |
Net Shareholder Services Fee: | |||
Class A Shares | $ 546,268 | - | - |
Class B Shares | $ 115,029 | - | - |
Class C Shares | $ 455,851 | - | - |
Institutional Shares | N/A | - | - |
■ | Buy call options on a Reference Instrument in anticipation of an increase in the value of the Reference Instrument; and |
■ | Write call options on a Reference Instrument to generate income from premiums, and in anticipation of a decrease or only limited increase in the value of the Reference Instrument. If the Fund writes a call option on a Reference Instrument that it owns and that call option is exercised, the Fund foregoes any possible profit from an increase in the market price of the Reference Instrument over the exercise price plus the premium received. |
■ | Buy put options on a Reference Instrument in anticipation of a decrease in the value of the Reference Instrument; and |
■ | Write put options on a Reference Instrument to generate income from premiums, and in anticipation of an increase or only limited decrease in the value of the Reference Instrument. In writing puts, there is a risk that the Fund may be required to take delivery of the Reference Instrument when its current market price is lower than the exercise price. |
■ | Equity securities listed on a U.S. securities exchange or traded through the U.S. national market system are valued at their last reported sale price or official closing price in their principal exchange or market. If a price is not readily available, such equity securities are valued based upon the mean of closing bid and asked quotations from one or more dealers. |
■ | Other equity securities traded primarily in the United States are valued based upon the mean of closing bid and asked quotations from one or more dealers. |
■ | Equity securities traded primarily through securities exchanges and regulated market systems outside the United States are valued at their last reported sale price or official closing price in their principal exchange or market. These prices may be adjusted for significant events occurring after the closing of such exchanges or market systems as described below. If a price is not readily available, such equity securities are valued based upon the mean of closing bid and asked quotations from one or more dealers. |
■ | Fixed-income securities and repurchase agreements acquired with remaining maturities of greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Board. The methods used by pricing services to determine such price evaluations are described below. If a price evaluation is not readily available, such fixed-income securities are fair valued based upon price evaluations from one or more dealers. |
■ | Fixed-income securities and repurchase agreements acquired with remaining maturities of 60 days or less are valued at their amortized cost as described below. |
■ | Futures contracts listed on exchanges are valued at their reported settlement price. Option contracts listed on exchanges are valued based upon the mean of closing bid and asked quotations reported by the exchange or from one or more futures commission merchants. |
■ | OTC derivative contracts are fair valued using price evaluations provided by various pricing services approved by the Board. The methods used by pricing services to determine such price evaluations are described below. If a price evaluation is not readily available, such derivative contracts are fair valued based upon price evaluations from one or more dealers or using a recognized pricing model for the contract. |
■ | Shares of other mutual funds are valued based upon their reported NAVs. The prospectuses for these mutual funds explain the circumstances under which they will use fair value pricing and the effects of using fair value pricing. |
■ | With respect to securities traded principally in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures contracts; |
■ | With respect to price evaluations of fixed-income securities determined before the close of regular trading on the NYSE, actions by the Federal Reserve Open Market Committee and other significant trends in U.S. fixed-income markets; |
■ | Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; and |
■ | Announcements concerning matters such as acquisitions, recapitalizations or litigation developments, or a natural disaster affecting the issuer's operations or regulatory changes or market developments affecting the issuer's industry. |
2012 | 2011 | 2010 | ||||
Total Sales
Charges |
Amount
Retained |
Total Sales
Charges |
Amount
Retained |
Total Sales
Charges |
Amount
Retained |
|
Class A Shares | $9,364,157 | $1,003,985 | $5,520,405 | $560,548 | $1,378,631 | $145,523 |
Class C Shares | $ 141,773 | $ 141,773 | $ 13,362 | $ 13,362 | $ 569,860 | $ 10,401 |
■ | Outstanding skills in disciplines deemed by the Independent Trustees to be particularly relevant to the role of Independent Trustee and to the Federated funds, including legal, accounting, business management, the financial industry generally and the investment industry particularly. |
■ | Desire and availability to serve for a substantial period of time, taking into account the Board's current mandatory retirement age of 73 years. |
■ | No conflicts which would interfere with qualifying as independent. |
■ | Appropriate interpersonal skills to work effectively with other Independent Trustees. |
■ | Understanding and appreciation of the important role occupied by Independent Trustees in the regulatory structure governing regulated investment companies. |
■ | Diversity of background. |
Name
Birth Date Positions Held with Trust Date Service Began |
Principal Occupation(s) for Past Five Years,
Other Directorships Held and Previous Position(s) |
Aggregate
Compensation From Fund (past fiscal year) |
Total Compensation
From Trust and Federated Fund Complex (past calendar year) |
John F. Donahue*
Birth Date: July 28, 1924 Trustee Began serving: April 1984 |
Principal Occupations:
Director or Trustee of the Federated Fund Complex; Chairman and Director, Federated Investors, Inc.; Chairman of the Federated Fund Complex's Executive Committee.
Previous Positions: Chairman of the Federated Fund Complex; Trustee, Federated Investment Management Company; Chairman and Director, Federated Investment Counseling. |
$0 | $0 |
J. Christopher Donahue*
Birth Date: April 11, 1949 President and Trustee Began serving: January 2000 |
Principal Occupations:
Principal Executive Officer and President of some of the Funds in the Federated Fund Complex; Director or Trustee of some of the Funds in the Federated Fund Complex; President, Chief
Executive Officer and Director, Federated Investors, Inc.; Chairman and Trustee, Federated Investment Management Company; Trustee, Federated Investment Counseling; Chairman and Director, Federated Global Investment
Management Corp.; Chairman, Federated Equity Management Company of Pennsylvania and Passport Research, Ltd. (investment advisory subsidiary of Federated); Trustee, Federated Shareholder Services Company; Director,
Federated Services Company.
Previous Positions: President, Federated Investment Counseling; President and Chief Executive Officer, Federated Investment Management Company, Federated Global Investment Management Corp. and Passport Research, Ltd. |
$0 | $0 |
* | Family relationships and reasons for “interested” status: John F. Donahue is the father of J. Christopher Donahue; both are “interested” due to their beneficial ownership of shares of Federated Investors, Inc. and the positions they hold with Federated and its subsidiaries. |
Name
Birth Date Positions Held with Trust Date Service Began |
Principal Occupation(s) and Other Directorships Held for
Past Five Years, Previous Position(s) and Qualifications |
Aggregate
Compensation From Fund (past fiscal year) |
Total Compensation
From Trust and Federated Fund Complex (past calendar year) |
Nicholas P. Constantakis, CPA
Birth Date: September 3, 1939 Trustee Began serving: February 1998 |
Principal Occupation:
Director or Trustee of the Federated Fund Complex.
Other Directorships Held: Director, Chairman of the Audit Committee, and member of the Compensation Committee, Michael Baker Corporation (architecture, engineering and construction services). Previous Position: Partner, Andersen Worldwide SC. Qualifications: Public accounting and director experience. |
$3,278.13 | $247,500 |
Name
Birth Date Positions Held with Trust Date Service Began |
Principal Occupation(s) and Other Directorships Held for
Past Five Years, Previous Position(s) and Qualifications |
Aggregate
Compensation From Fund (past fiscal year) |
Total Compensation
From Trust and Federated Fund Complex (past calendar year) |
John F. Cunningham
Birth Date: March 5, 1943 Trustee Began serving: January 1999 |
Principal Occupation:
Director or Trustee of the Federated Fund Complex.
Other Directorships Held: Chairman, President and Chief Executive Officer, Cunningham & Co., Inc. (strategic business consulting); Trustee Associate, Boston College. Previous Positions: Director, Redgate Communications and EMC Corporation (computer storage systems); Chairman of the Board and Chief Executive Officer, Computer Consoles, Inc.; President and Chief Operating Officer, Wang Laboratories; Director, First National Bank of Boston; Director, Apollo Computer, Inc. Qualifications: Business management and director experience. |
$2,980.13 | $225,000 |
Maureen Lally-Green
Birth Date: July 5, 1949 Trustee Began serving: August 2009 |
Principal Occupations:
Director or Trustee of the Federated Fund Complex; Director, Office of Church Relations, Diocese of Pittsburgh; Adjunct Professor of Law, Duquesne University School of Law.
Other Directorships Held: Director, Auberle; Member, Pennsylvania State Board of Education; Director, Saint Vincent College; Director, Ireland Institute of Pittsburgh; Chair and Director, UPMC Mercy Hospital; Regent, St. Vincent Seminary; Director, Epilepsy Foundation of Western and Central Pennsylvania; Director, Saint Thomas More Society, Allegheny County; Director, Our Campaign for the Church Alive, Inc. Previous Position: Pennsylvania Superior Court Judge. Qualifications: Legal and director experience. |
$2,980.13 | $223,567.97 |
Peter E. Madden
Birth Date: March 16, 1942 Trustee Began serving: November 1991 |
Principal Occupation:
Director or Trustee, and Chairman of the Board of Directors or Trustees, of the Federated Fund Complex.
Previous Positions: Representative, Commonwealth of Massachusetts General Court; President, Chief Operating Officer and Director, State Street Bank and Trust Company and State Street Corporation (retired); Director, VISA USA and VISA International; Chairman and Director, Massachusetts Bankers Association; Director, Depository Trust Corporation; Director, The Boston Stock Exchange. Qualifications: Business management, mutual fund services and director experience. |
$4,105.96 | $310,000 |
Charles F. Mansfield, Jr.
Birth Date: April 10, 1945 Trustee Began serving: January 1999 |
Principal Occupations:
Director or Trustee of the Federated Fund Complex; Management Consultant.
Previous Positions: Chief Executive Officer, PBTC International Bank; Partner, Arthur Young & Company (now Ernst & Young LLP); Chief Financial Officer of Retail Banking Sector, Chase Manhattan Bank; Senior Vice President, HSBC Bank USA (formerly Marine Midland Bank); Vice President, Citibank; Assistant Professor of Banking and Finance, Frank G. Zarb School of Business, Hofstra University; Executive Vice President DVC Group, Inc. (marketing, communications and technology). Qualifications: Banking, business management, education and director experience. |
$3,291.10 | $253,125 |
Name
Birth Date Positions Held with Trust Date Service Began |
Principal Occupation(s) and Other Directorships Held for
Past Five Years, Previous Position(s) and Qualifications |
Aggregate
Compensation From Fund (past fiscal year) |
Total Compensation
From Trust and Federated Fund Complex (past calendar year) |
Thomas M. O'Neill
Birth Date: June 14, 1951 Trustee Began serving: October 2006 |
Principal Occupations:
Director or Trustee, Vice Chairman of the Audit Committee of the Federated Fund Complex; Sole Proprietor, Navigator Management Company (investment and strategic consulting).
Other Directorships Held: Board of Overseers, Children's Hospital of Boston; Visiting Committee on Athletics, Harvard College; Board of Directors, Medicines for Humanity; Board of Directors, The Golisano Children's Museum of Naples, Florida. Previous Positions: Chief Executive Officer and President, Managing Director and Chief Investment Officer, Fleet Investment Advisors; President and Chief Executive Officer, Aeltus Investment Management, Inc.; General Partner, Hellman, Jordan Management Co., Boston, MA; Chief Investment Officer, The Putnam Companies, Boston, MA; Credit Analyst and Lending Officer, Fleet Bank; Director and Consultant, EZE Castle Software (investment order management software); Director, Midway Pacific (lumber). Qualifications: Business management, mutual fund, director and investment experience. |
$3,278.13 | $247,500 |
John S. Walsh
Birth Date: November 28, 1957 Trustee Began serving: January 1999 |
Principal Occupations:
Director or Trustee, Chairman of the Audit Committee of the Federated Fund Complex; President and Director, Heat Wagon, Inc. (manufacturer of construction temporary heaters); President and
Director, Manufacturers Products, Inc. (distributor of portable construction heaters); President, Portable Heater Parts, a division of Manufacturers Products, Inc.
Previous Position: Vice President, Walsh & Kelly, Inc. Qualifications: Business management and director experience. |
$3,339.68 | $247,500 |
Name
Birth Date Address Positions Held with Trust Date Service Began |
Principal Occupation(s) and Previous Position(s) |
John W. McGonigle
Birth Date: October 26, 1938 EXECUTIVE VICE PRESIDENT AND SECRETARY Officer since: April 1984 |
Principal Occupations:
Executive Vice President and Secretary of the Federated Fund Complex; Vice Chairman, Executive Vice President, Secretary and Director, Federated Investors, Inc.
Previous Positions: Trustee, Federated Investment Management Company and Federated Investment Counseling; Director, Federated Global Investment Management Corp., Federated Services Company and Federated Securities Corp. |
Richard A. Novak
Birth Date: December 25, 1963 Treasurer Officer since: January 2006 |
Principal Occupations:
Principal Financial Officer and Treasurer of the Federated Fund Complex; Senior Vice President, Federated Administrative Services; Financial and Operations Principal for Federated
Securities Corp., Edgewood Services, Inc. and Southpointe Distribution Services, Inc.
Previous Positions: Controller of Federated Investors, Inc.; Vice President, Finance of Federated Services Company; held various financial management positions within The Mercy Hospital of Pittsburgh; Auditor, Arthur Andersen & Co. |
Peter J. Germain
Birth Date: September 3, 1959 CHIEF LEGAL OFFICER Officer since: January 2005 |
Principal Occupations
: Mr. Germain is Chief Legal Officer of the Federated Fund Complex. He is General Counsel and Vice President, Federated Investors, Inc.; President, Federated Administrative Services and
Federated Administrative Services, Inc.; Vice President, Federated Securities Corp.; Secretary, Federated Private Asset Management, Inc.; and Secretary, Retirement Plan Service Company of America. Mr. Germain joined
Federated in 1984 and is a member of the Pennsylvania Bar Association.
Previous Positions : Deputy General Counsel, Special Counsel, Managing Director of Mutual Fund Services, Federated Investors, Inc.; Senior Vice President, Federated Services Company; and Senior Corporate Counsel, Federated Investors, Inc. |
Richard B. Fisher
Birth Date: May 17, 1923 Vice President Officer since: April 1987 |
Principal Occupations:
Vice Chairman or Vice President of some of the Funds in the Federated Fund Complex; Vice Chairman, Federated Investors, Inc.; Chairman, Federated Securities Corp.
Previous Positions: President and Director or Trustee of some of the Funds in the Federated Fund Complex; Executive Vice President, Federated Investors, Inc.; Director and Chief Executive Officer, Federated Securities Corp. |
** | Officers do not receive any compensation from the Fund. |
Board
Committee |
Committee
Members |
Committee Functions |
Meetings Held
During Last Fiscal Year |
Executive |
John F. Donahue
Peter E. Madden John S. Walsh |
In between meetings of the full Board, the Executive Committee generally may exercise all the powers of the full Board in the management and direction of the business and conduct of the affairs of the Trust in such manner as the Executive Committee shall deem to be in the best interests of the Trust. However, the Executive Committee cannot elect or remove Board members, increase or decrease the number of Trustees, elect or remove any Officer, declare dividends, issue shares or recommend to shareholders any action requiring shareholder approval. | None |
Audit |
Nicholas P. Constantakis
Charles F. Mansfield, Jr. Thomas M. O'Neill John S. Walsh |
The purposes of the Audit Committee are to oversee the accounting and financial reporting process of the Fund, the Fund's internal control over financial reporting and the quality, integrity and independent audit of the Fund's financial statements. The Committee also oversees or assists the Board with the oversight of compliance with legal requirements relating to those matters, approves the engagement and reviews the qualifications, independence and performance of the Fund's independent registered public accounting firm, acts as a liaison between the independent registered public accounting firm and the Board and reviews the Fund's internal audit function. | Seven |
Board
Committee |
Committee
Members |
Committee Functions |
Meetings Held
During Last Fiscal Year |
Nominating |
Nicholas P. Constantakis
John F. Cunningham Maureen Lally-Green Peter E. Madden Charles F. Mansfield, Jr. Thomas M. O'Neill John S. Walsh |
The Nominating Committee, whose members consist of all Independent Trustees, selects and nominates persons for election to the Fund's Board when vacancies occur. The Committee will consider candidates recommended by shareholders, Independent Trustees, officers or employees of any of the Fund's agents or service providers and counsel to the Fund. Any shareholder who desires to have an individual considered for nomination by the Committee must submit a recommendation in writing to the Secretary of the Fund, at the Fund's address appearing on the back cover of this SAI. The recommendation should include the name and address of both the shareholder and the candidate and detailed information concerning the candidate's qualifications and experience. In identifying and evaluating candidates for consideration, the Committee shall consider such factors as it deems appropriate. Those factors will ordinarily include: integrity, intelligence, collegiality, judgment, diversity, skill, business and other experience, qualification as an “Independent Trustee,” the existence of material relationships which may create the appearance of a lack of independence, financial or accounting knowledge and experience and dedication and willingness to devote the time and attention necessary to fulfill Board responsibilities. | None |
Interested Board
Member Name |
Dollar Range of
Shares Owned in Federated Strategic Value Dividend Fund |
Aggregate
Dollar Range of Shares Owned in Federated Family of Investment Companies |
John F. Donahue | Over $100,000 | Over $100,000 |
J. Christopher Donahue | Over $100,000 | Over $100,000 |
Independent Board
Member Name |
||
Nicholas P. Constantakis | None | Over $100,000 |
John F. Cunningham | None | Over $100,000 |
Maureen Lally-Green | $1 - $10,000 | Over $100,000 |
Peter E. Madden | None | Over $100,000 |
Charles F. Mansfield, Jr. | None | Over $100,000 |
Thomas M. O'Neill | None | Over $100,000 |
John S. Walsh | $10,001 - $50,000 | Over $100,000 |
Types of Accounts Managed
by Walter Bean |
Total Number of Additional Accounts
Managed/Total Assets* |
Registered Investment Companies | 2/$513 million |
Other Pooled Investment Vehicles | 2/$260 million |
Other Accounts | 372/$6,983 million |
* | None of the Accounts has an advisory fee that is based on the performance of the account. |
Types of Accounts Managed
by Daniel Peris |
Total Number of Additional Accounts
Managed/Total Assets* |
Registered Investment Companies | 2/$513 million |
Other Pooled Investment Vehicles | 2/$260 million |
Other Accounts | 372/$6,983 million |
* | None of the Accounts has an advisory fee that is based on the performance of the account. |
For the Year Ended October 31 | 2012 | 2011 | 2010 |
Advisory Fee Earned | $44,968,607 | $21,417,737 | $8,298,467 |
Advisory Fee Reduction | $ 8,023,534 | $ 3,752,570 | $1,999,379 |
Advisory Fee Reimbursement | $ 77,221 | $ 53,987 | $ 26,201 |
Brokerage Commissions | $ 4,564,329 | $ 3,818,412 | $1,622,292 |
Net Administrative Fee | $ 4,585,712 | $ 2,173,186 | $ 842,018 |
Net 12b-1 Fee: | |||
Class A Shares | — | — | — |
Class C Shares | $ 3,851,669 | — | — |
Net Shareholder Services Fee: | |||
Class A Shares | $ 3,229,765 | — | — |
Class C Shares | $ 1,284,495 | — | — |
Item 28. Exhibits
(a) | ||
1 | Conformed copy of Amended and Restated Declaration of Trust of the Registrant; | (12) |
2 | Amendment Nos. 4, 5, 6 and 7; | (31) |
3 | Amendment No. 8; | (19) |
4 | Amendment Nos. 9, 10 and 11; | (21) |
5 | Amendment Nos. 12 and 13; | (23) |
6 | Amendment Nos. 14, 15, 16 and 17; | (24) |
7 | Amendment No. 18; | (25) |
8 | Amendment No. 19; | (29) |
9 | Amendment Nos. 20 and 21; | (31) |
10 | Amendment No. 22; | (33) |
11 | Amendment No. 23; | (34) |
12 | Amendment No. 24; | (36) |
13 | Amendment No. 25; | (39) |
14 | Amendment No. 26; | (40) |
15 | Amendment Nos. 27 & No. 28; | (42) |
16 | Amendment Nos. 29 and 30; | (43) |
17 | Amendment No. 31; | (45) |
18 | Amendment No. 32; | (46) |
19 | Amendment No. 33 | (49) |
20 | Amendment Nos. 34, 35, 36 and 37 | (55) |
21 | Amendment No. 38 and 39 | (58) |
(c) | ||
1 | Specimen Share Certificate for Federated Small Cap Strategies Fund; | (7) |
2 | Specimen Share Certificate for Federated Mid Cap Growth Strategies Fund; | (8) |
3 | Specimen Share Certificate for Federated Capital Appreciation Fund; | (9) |
As of September 1, 1997, Federated Securities Corp. stopped issuing share certificates. |
(d) | ||
1 | Conformed copy of Investment Advisory Contract of the Registrant (Federated Mid Cap Growth Strategies Fund); | (5) |
2 | Conformed copy of Investment Advisory Contract on behalf of the Registrant, which includes Exhibit B for Federated Capital Appreciation Fund; | (10) |
3 | Conformed copies of Exhibits D & E for Federated Large Cap Growth Fund and Federated Technology Fund, respectively; | (19) |
4 | Conformed copy of Exhibit G to the Investment Advisory Contract for Federated Kaufmann Fund; | (23) |
5 | Conformed copy of Exhibit I to the Investment Advisory Contract for Federated Market Opportunity Fund; | (23) |
6 | Conformed copy of Amendment to Investment Advisory Contract of the Registrant; | (23) |
7 | Conformed copy of Sub-Advisory Agreement for Federated Kaufmann Fund, which includes Exhibit A, dated December 1, 2001; | (23) |
8 | Conformed copy of Sub-Advisory Agreement for Federated Kaufmann Small Cap Fund, which includes Exhibit A; | (24) |
9 | Conformed copy of Exhibit J to the Investment Advisory Contract for Federated Kaufmann Small Cap Fund; | (24) |
10 | Conformed copy of Sub-Advisory Contract for Federated Market Opportunity Fund, which includes Exhibit A; | (31) |
11 | Conformed copy of Sub-Advisory Contract for Federated Technology Fund, which includes Exhibit A; | (31) |
12 | Conformed copy of Assignments of Federated Investment Management Company to Federated Equity Management Company of Pennsylvania for Advisory and Sub-Advisory Contracts of Federated Capital Appreciation Fund, Federated Kaufmann Fund, Federated Small Cap Kaufmann Fund, Federated Market Opportunity Fund, and Federated Technology Fund; | (31) |
13 | Conformed copy of Assignment of Federated Investment Management Company to Federated Global Investment Management Company for Advisory Contract of Federated Large Cap Growth Fund; | (31) |
14 | Conformed copy of Assignment of Federated Investment Management Company to Federated Equity Management Company of Pennsylvania for Advisory Contract of Federated Mid Cap Growth Strategies Fund; | (31) |
15 | Conformed copy of Investment Advisory Contract of the Registrant, which includes Exhibit A (Federated Strategic Value Fund); | (33) |
16 | Conformed copy of the Sub-Advisory Contract for Federated Absolute Advantage Fund; | (36) |
17 | Conformed copy of Exhibit B to the Investment Advisory of the Registrant; | (36) |
18 | Conformed copy of Assignment of Federated Global Investment Management Corp. to Federated Equity Management Company of Pennsylvania for Advisory Contract of Federated Large Cap Growth Fund; | (39) |
19 | Conformed copy of Federated Global Investment Management Corp. for Federated InterContinental Fund; | (42) |
20 | Conformed copy of Exhibit B to the investment advisory contract for Federated Kaufmann Large Cap Fund; | (43) |
21 | Conformed copy of Sub-Advisory Agreement for Federated Kaufmann Large Cap Fund, including Exhibit A; | (43) |
22 | Conformed copy of Investment Advisory Contract of the Registrant (Federated Prudent Bear Fund); | (46) |
23 | Conformed copy of Exhibits B, C and D to the Investment Advisory Contract with Federated Global Investment Management Company; | (47) |
24 | Conformed copy of Exhibit C to the Investment Advisory Contract with FEMCoPA; | (47) |
25 | Conformed copy of Exhibit E to the Investment Advisory Contract with Federated Global Investment Management Corp. | (55) |
(e) | ||
1 | Conformed copy of Distributor’s Contract of the Registrant; | (10) |
2 | Conformed copies of Exhibits D and F to the Distributor’s Contract for Federated Mid Cap Growth Strategies Fund, (Class A and C Shares); | (10) |
3 | Conformed copies of Exhibits G and I to the Distributor’s Contract for Federated Capital Appreciation Fund, (Class A and C Shares); | (10) |
4 | Conformed copy of Distributor’s Contract (Class B Shares); | (16) |
5 | Conformed copies of Exhibits M and N to the Distributor’s Contract for Federated Large Cap Growth Fund, (Class A and C Shares); | (19) |
6 | Conformed copies of Exhibits O and P to the Distributor’s Contract for Federated Communications Technology Fund, (Class A and C Shares); | (19) |
7 | Conformed copy of Exhibits S & T to the Distributor’s Contract for Federated Market Opportunity Fund (Class A and Class C Shares); | (22) |
8 | Conformed copy of Exhibit U to the Distributor’s Contract for Federated Kaufmann Fund (Class K Shares); | (23) |
9 | Conformed copy of Exhibits V & W to the Distributor’s Contract for Federated Kaufmann Fund (Class A and Class C Shares); | (22) |
10 | Conformed copy of Amendment to the Distributor’s Contract of the Registrant, dated June 1, 2001; | (23) |
11 | Conformed copy of Exhibit X to the Distributor’s Contract for Federated Kaufmann Small Cap Fund (Class A Shares); | (24) |
12 | Conformed copy of Exhibit Y to the Distributor’s Contract for Federated Kaufmann Small Cap Fund (Class C Shares); | (24) |
13 | Conformed copy of Exhibit Z to the Distributor's Contract for Federated Capital Appreciation Fund (Class K Shares); | (28) |
14 | The Registrant hereby incorporates the conformed copy of the specimen Mutual Funds Sales and Service Agreement; Mutual Funds Service Agreement; and Plan Trustee/Mutual Funds Service Agreement from Item 24(b)(6)(ii)-(iv) of the Cash Trust Series II Registration Statement on Form N-1A, filed with the Commission on July 24, 1995. (File No. 33-38550 and 811-6269) | |
15 | Conformed copy of Amendment to the Distributor’s Contract of the Registrant, dated October 1, 2003; | (31) |
16 | Conformed copy of Amendment to the Distributor’s Contract (Class B Shares) of the Registrant, dated June 1, 2001; | (31) |
17 | Conformed copy of Amendment to the Distributor’s Contract (Class B Shares) of the Registrant, dated October 1, 2003; | (31) |
18 | Conformed copy of Exhibit AA and BB to the Distributor’s Contract for Federated Strategic Value Fund (Class A and Class C Shares); | (33) |
19 | Conformed copy of Exhibit CC to the Distributors Contract for Federated Strategic Value Fund (Institutional Shares); | (35) |
20 | Conformed copy of Exhibits, DD, EE, FF and GG to the Distributors Contract; | (36) |
21 | Conformed copy of Exhibit HH to Distributors Contract for Federated Mid-Cap Growth Strategies Fund; | (39) |
22 | Conformed copy of Exhibit II, JJ, KK and LL to Distributors Contract for Federated InterContinental Fund; | (42) |
23 | Conformed copy of Amendment 1 to Exhibit G, S, DD and JJ; | (43) |
24 | Conformed copy of Exhibits to the Distributor’s Contract for Federated Prudent Bear Fund (Class A Shares, Class C Shares); | (46) |
25 | Conformed copy of Exhibits SS, TT, UU, YY, ZZ, AAA, BBB, CCC, DDD, EEE, FFF, GGG and HHH to the Distributor’s Contract; | (47) |
26 | Conformed copy of Schedule A to the Distributor’s Contract for Class B Shares; | (48) |
27 | Conformed copy of Exhibit III, JJJ, KKK and LLL to the Distributor’s Contract; | (56) |
28 | Conformed copy of Exhibit MMM to the Distributor’s Contract for Federated Clover Small Value Plan (Class R Shares) | (59) |
(f) | Not applicable |
(g) | ||
1 | Conformed Copy of the Custodian Agreement of the Registrant; | (6) |
2 | Conformed copy of Custodian Fee Schedule; | (15) |
3 | Conformed copy of Amendment to Custodian contract of the Registrant dated February 3, 2006; | (39) |
4 | Conformed copy of the Fourth Amendment to the Custody Agreement of the Registrant dated October 23, 2009 | (54) |
5 | Conformed copy of the Seventh Amendment to the Custody Agreement of the Registrant dated September 1, 2010 | (57) |
6 | Conformed copy of the Custody Agreement, up to and including Tenth Amendment with attachments, between The Bank of New York Mellon and Funds dated March 1, 2011. | (59) |
7 | Conformed copy of the Custodian Contract, up to and including Fifth Amendment with attachments, between State Street Bank and Funds dated March 1, 2011. | (59) |
(h) | ||
1 | Conformed copy of Amended and Restated Agreement for Fund Accounting Services, Administrative Services, Shareholder Transfer Agency Services and Custody Services Procurement; | (17) |
2 | Conformed copy of Amendment to Agreement for Fund Accounting Services, Administrative Services, Shareholder Transfer Agency Services and Custody Services Procurement; | (23) |
3 | Conformed copy of Principal Shareholder Service’s Agreement (Class B Shares); | (16) |
4 | Conformed copy of Exhibit 1 to the Principal Shareholder Service’s Agreement (Class B Shares); | (23) |
5 | Conformed copy of Shareholder Services Agreement (Class B Shares); | (16) |
6 | Conformed copy of Exhibit 1 to the Shareholder Services Agreement (Class B Shares); | (23) |
7 | The Registrant hereby incorporates by reference the conformed copy of the Shareholder Services Sub-Contract between Fidelity and Federated Shareholder Services from Item 24(b)(9)(iii) of the Federated GNMA Trust Registration Statement on Form N-1A, filed with the Commission on March 25, 1996 (File Nos. 2-75670 and 811-3375). | |
8 | The Registrant hereby incorporates the conformed copy of the Second Amended and Restated Services Agreement, with attached Schedule 1 revised 6/30/04, from Item (h)(v)(ii) of the Cash Trust Series, Inc. Registration Statement on Form N-1A filed with the Commission on July 29, 2004, (File Nos. 33-29838 and 811-5843). | |
9 | The responses described in Item 23(e)(xiv) are hereby incorporated by reference. | |
10 | The Registrant hereby incorporates the conformed copy of Amendment No. 2 to the Amended & Restated Agreement for Fund Accounting Services, Administrative Services, Transfer Agency Services and Custody Services Procurement from Item 23 (h)(v) of the Federated U.S. Government Securities: 2-5 Years Registration Statement on Form N-1A, filed with the Commission on March 30, 2004. (File Nos. 2-75769 and 811-3387); | |
11 | The Registrant hereby incorporates the conformed copy of Amendment No. 3 to the Amended & Restated Agreement for Fund Accounting Services, Administrative Services, Transfer Agency Services and Custody Services Procurement from Item 23 (h)(v) of the Federated U.S. Government Securities: 2-5 Years Registration Statement on Form N-1A, filed with the Commission on March 30, 2004. (File Nos. 2-75769 and 811-3387; | |
12 | The Registrant hereby incorporates by reference the conformed copy of the Agreement for Administrative Services, with Exhibit 1 and Amendments 1 and 2 attached, between Federated Administrative Services and the Registrant from Item 23(h)(iv)of the Federated Total Return Series, Inc. Registration Statement on Form N-1A, filed with the Commission on November 29, 2004. (File Nos. 33-50773 and 811-7115); | |
13 | The Registrant herby incorporates by reference the conformed copy of the Financial Administration and Accounting Services Agreement, with attached Exhibit A revised 3/1/06, from Item (h)(viii) of the Federated Total Return Government Bond Fund, Registration Statement on Form N-1A, filed with the Commission on April 26, 2006. (File Nos. 33-60411 and 811-07309) | |
14 | The Registrant hereby incorporates by reference the conformed copy of Transfer Agency and Service Agreement between the Federated Funds listed on Schedule A revised 3/1/06 and State Street Bank and Trust Company from Item 23(h)(ix) of the Federated Total Return Government Bond Fund Registration Statement on Form N-1A, filed with the Commission on April 26, 2006. (File Nos. 33-60411 and 811-07309) | |
15 | The Registrant hereby incorporates by reference the conformed copy of Amendment No. 3 to the Agreement for administrative Services between Federated Administrative Services Company and the Registrant dated June 1, 2005, form Item 23 (h)(ii) of the Cash Trust Series, Inc. Registrant Statement on Form N-1A, filed with the Commission on July 27, 2005. (File Nos. 33-29838 and 811-5843) | |
16 | The Registrant hereby incorporates the Copy of Schedule 1, revised 9/1/05, to the Second Amended and Restated Services Agreement, from Item h(ix) of the Federated Institutional Trust Registration Statement on Form N-1A, filed with the Commission on September 28, 2005. (File Nos. 33-54445 and 811-7193) | |
17 | The Registrant hereby incorporates the Copy of Exhibit A, revised 9/1/05, to the Financial Administration and Accounting Services Agreement, from Item h(x) of the Federated Institutional Trust Registration Statement on Form N-1A, filed with the Commission on September 28, 2005. (File Nos. 33-54445 and 811-7193) | |
18 | The Registrant hereby incorporates the Copy of Schedule 1, revised 6/1/05, to the Transfer Agency and Services Agreement between the Federated Funds and State Street Bank and Trust Company from , from Item h(xi) of the Federated Institutional Trust Registration Statement on Form N-1A, filed with the Commission on September 28, 2005. (File Nos. 33-54445 and 811-7193) | |
19 | The Registrant hereby incorporates the conformed copy of the Transfer Agency and Service Agreement between the Federated Funds and State Street Bank and Trust Company form Item 23(h)(ix) of the Federated Stock Trust Registration statement on Form N-1A, filed with the Commission on December 29, 2005. (File Nos. 33-60411 and 811-07309). | |
20 | The Registrant hereby incorporates the conformed copy of Schedule A to the Transfer Agency and the Service Agreement; | (47) |
21 | Conformed copy of Amendment to Exhibit A and Amendment to Exhibit B of the Fund Accounting Agreement with The Bank of New York Mellon; | (47) |
22 | Conformed copy of Schedule A to the Transfer Agency Agreement; | (48) |
23 | Conformed copy of Exhibit A to the Financial Administration and Accounting Service Agreement; | (48) |
24 | Conformed copy of Exhibit 1 to the Administrative Services Agreement; | (48) |
25 | Conformed copy of Schedule 1 to the Second Amended and Restated Services Agreement; | (48) |
26 | Conformed copy of Schedule A of the Shareholder Services Agreement for Class B Shares; | (48) |
27 | Conformed copy of Schedule A of the Principal Shareholder Services Agreement for Class B Shares; | (48) |
28 | Conformed copy of Exhibit 1 to the Administrative Services Agreement; | (53) |
29 | Conformed copy of the Third Amendment to the Fund Accounting Agreement of the Registrant dated October 23, 2009 | (54) |
30 | Copy of Exhibit 1 to Agreement for Administrative Services; | (55) |
31 | Conformed copy of the Fifth Amendment to the Fund Accounting Agreement of the Registrant dated September 1, 2010 | (57) |
32 | Conformed copy of new Fund Accounting Agreement of the Registrant with The Bank of New York Mellon, up to and including the First Amendment, dated March 1, 2011 and March 25, 2011, respectively. | (59) |
33 | Conformed copy of the new Financial Administration Accounting Services Agreement of the Registrant with State Street Bank and Trust, up to and including the First Amendment dated March 1, 2011 and March 25, 2011, respectively. | (59) |
34 | Conformed copy of the Transfer Agency and Service Agreement between the Funds and State Street Bank and Trust Company, up to and including the First Amendment dated July 1, 2004 and January 1, 2008, respectively. | (59) |
35 | Conformed copy of the Tax Services Agreement dated between the Bank of New York Mellon and Federated Administrative Services dated September 27, 2011 | (59) |
36 | Conformed copy of the Services Agreement between Federated Equity Management Company of Pennsylvania and Federated Advisory Services Company dated January 1, 1994 and including Schedule 1 revised as of 8/31/2011 | (59) |
37 | Conformed copy of the Services Agreement between Federated Global Investment Management Corp. and Federated Advisory Services Company dated January 1, 2004 and including Schedule 1 revised as of 8/31/2011 | (59) |
38 | Conformed copy of the Shareholder Services Agreement between Federated Securities Corp. and Funds listed on Schedule A revised as of 2/21/2011 | (59) |
39 | Conformed copy of Compliance Support Service Addendum to the Fund Accounting Agreement dated | (61) |
(i) | Conformed copy of the Opinion and Consent of Counsel regarding legality of shares being registered; | (6) |
(j) | ||
1 | Conformed copy of Consent of Independent Registered Public Accounting Firm (Deloitte & Touche LLP); | (41) |
2 | Conformed copy of Independent Registered Accounting Firm (Tait Weller& Baker) | (42) |
3 | Conformed copy of Consent of Independent registered Public Accounting Firm (PricewaterhouseCoopers LLP) | (45) |
4 | Conformed copy of Consent of Independent Registered Public Accounting Firm (Ernst & Young LLP) | (+) |
5 | Conformed copy of Consent of Independent Registered Public Accounting Firm (KPMG LLP) | (+) |
(k) | Not Applicable |
(l) | Conformed copy of Initial Capital Understanding; | (2) |
(n) | ||
1 | The Registrant hereby incorporates the Copy of the Multiple Class Plan and attached Exhibits for all classes from Item (n) of the Federated Short-Term Municipal Trust Registration Statement on Form N-1A, filed with the Commission on August 28, 2006 (File Nos. 2-72277 and 811-3181); | |
2 | Conformed copy of Class A Shares, Class B Shares, Class C Shares, Class K Shares and Institutional Shares Exhibits to Multiple Class Plan; | (47) |
3 | Conformed copy of Institutional Shares Exhibit to the Multiple Class Plan; | (48) |
4 | Conformed copy of Institutional Shares and Institutional Service Shares Exhibits to the Multiple Class Plan; | (49) |
5 | Copy of Class A Shares, Class B Shares, Class C Shares, Class K Shares and Institutional Shares Exhibits to the Multiple Class Plan; | (56) |
6 | Copy of Class R Shares and Institutional Shares Exhibits to Multiple Class Plan; | (58) |
7 | Conformed Copy of the Multiple Class Plan including Class A Share, Class C Share, Class R Share and Institutional Share Exhibits | (59) |
8 | Copy of Class B Shares Exhibit to Multiple Class Plan | (60) |
9 | Conformed Copy of the Multiple Class Plan including Class A Share, Class B Share, Class C Share and Class F Shares | (62) |
(o) | ||
1 | Conformed copy of Power of Attorney of the Registrant; | (19) |
2 | Conformed copy of Power of Attorney of Trustee of the Registrant; | (19) |
3 | Conformed copy of Limited Power of Attorney; | (27) |
4 | Conformed copy of Power of Attorney of Trustee of the Registrant; | (39) |
5 | Conformed copy of Power of Attorney of Trustee of the Registrant; | (39) |
6 | Conformed copy of Power of Attorney of the Registrant; | (39) |
7 | Conformed copy of Power of Attorney of Trustee of the Registrant; | (41) |
8 | Conformed copy of Power of Attorney of Trustee of the Registrant; | (44) |
9 | Conformed copy of Power of Attorney of Trustee for Maureen Lally-Green; | (49) |
+ | Exhibit is being filed electronically with registration statement; indicate by footnote |
ALL RESPONSES ARE INCORPORATED BY REFERENCE TO A POST-EFFECTIVE AMENDMENT (PEA) OF THE REGISTRANT FILED ON FORM N-1A (FILE NOS. 1933 Act No . 2-91090 and 1940 Act No . 811-4017)
|
||
2 | PEA No. 1 filed February 28, 1985 | |
5 | PEA No. 21 filed June 30, 1995 | |
6 | PEA No. 20 filed December 29, 1994 | |
7 | PEA No. 21 filed June 30, 1995 | |
8 | PEA No. 22 filed July 17, 1995 | |
9 | PEA No. 25 filed August 31, 1995 | |
10 | PEA No. 26 filed September 12, 1995 | |
12 | PEA No. 32 filed September 3, 1996 | |
15 | PEA No. 31 filed October 30, 1997 | |
16 | PEA No. 35 filed December 30, 1997 | |
17 | PEA No. 40 filed October 9, 1998 | |
18 | PEA No. 41 filed November 2, 1998 | |
19 | PEA No. 44 filed December 28, 1999 | |
21 | PEA No. 50 filed December 29, 2000 | |
22 | PEA No. 52 filed March 20, 2001 | |
23 | PEA No. 51 filed December 27, 2001 | |
24 | PEA No. 57 filed December 26, 2002 | |
25 | PEA No. 59 filed February 7, 2003 | |
27 | PEA No. 61 filed March 31, 2003 | |
28 | PEA No. 55 filed September 22, 2003 | |
29 | PEA No. 62 filed October 30, 2003 | |
31 | PEA No. 66 filed October 15, 2004 | |
32 | PEA No. 67 filed December 30, 2004 | |
33 | PEA No. 68 filed January 7, 2005 | |
34 | PEA No. 69 filed June 22, 2005 | |
35 | PEA No. 70 filed September 2, 2005 | |
36 | PEA No. 73 filed October 14, 2005 | |
37 | PEA No. 74 filed November 14, 2005 | |
38 | PEA No. 76 filed December 29, 2005 | |
39 | PEA No. 77 filed October 17, 2006 | |
40 | PEA No. 78 filed December 11, 2006 | |
41 | PEA No. 79 filed December 29, 2006 | |
42 | PEA No. 83 filed June 25, 2007 | |
43 | PEA No. 88 filed December 28, 2007 | |
44 | PE No. 92 filed April 10, 2008 | |
45 | PEA No. 93 filed July 15, 2008 | |
46 | PEA No. 96 filed September 11, 2008 | |
47 | PEA No. 97 filed December 30, 2008 | |
48 | PEA No. 101 filed February 27, 2009 | |
49 | PEA No. 102 filed September 30, 2009 | |
50 | PEA No. 103 filed November 13, 2009 | |
51 | PEA No. 105 filed November 30, 2009 | |
52 | PEA No. 107 filed December 30, 2009 | |
53 | PEA No. 109 filed January 28, 2010 | |
54 | PEA No. 110 filed May 6, 2010 | |
55 | PEA No. 111 filed September 16, 2010 | |
56 | PEA No. 112 filed November 29, 2010 | |
57 | PEA No. 115 filed December 29, 2010 | |
58 | PEA No. 116 filed on January 31, 2011 | |
59 | PEA No. 119 filed on November 29, 2011 | |
60 | PEA No. 121 filed on December 28, 2011 | |
61 | PEA No. 125 filed on November 28, 2012 | |
62 | PEA No. 127 filed on December 21, 2012 |
Item 29 Persons Controlled by or Under Common Control with the Fund: |
None |
Item 30 Indemnification |
(1) |
Item 33 Location of Accounts and Records: |
All accounts and records required to be maintained by Section 31(a) of the Investment Company Act of 1940 and Rules 31a-1 through 31a-3 promulgated thereunder are maintained at one of the following locations: |
Registrant |
Reed Smith LLP
(Notices should be sent to the Agent for Service at above address)
Federated Investors Funds
Warrendale, PA 15086-7561 |
Federated Administrative Services (“Administrator”) |
Federated Investors Tower 1001 Liberty Avenue Pittsburgh, PA 15222-3779 |
Federated Equity Management Company of Pennsylvania (“FEMCOPA”)(“Adviser”) 1
|
Federated Investors Tower 1001 Liberty Avenue Pittsburgh, PA 15222-3779 |
Federated Global Investment Management Corp. (“FGIMC”) (“Adviser”) 2 (“Sub-Adviser”) 3 |
450 Lexington Avenue Suite 3700 New York, NY 10017-3943 |
Federated Investment Management Company (Sub-Adviser to Federated Prudent Absolute Return Fund) |
Federated Investors Tower 1001 Liberty Avenue Pittsburgh, PA 15222-3779 |
State Street Bank and Trust Company (“Transfer Agent, Dividend Disbursing Agent” and “Custodian”) |
P.O. Box 8600 Boston, MA 02266-8600 |
The Bank of New York Mellon (Custodian to Federated Prudent Absolute Return Fund) |
One Wall Street New York, NY 10286
|
1 FEMCOPA serves as Adviser to: Federated Capital Appreciation Fund, Federated International Strategic Value Dividend Fund, Federated Kaufmann Fund, Federated Kaufmann Large Cap Fund, Federated Kaufmann Large Cap Fund, Federated Kaufmann Small Cap Fund, Federated Prudent Absolute Return Fund, Federated Mid Cap Growth Strategies Fund, Federated Prudent Bear Fund and Federated Strategic Value Dividend Fund.
2
FGIMC serves as Adviser to: Federated Clover
Small Value Fund, Federated Clover Value Fund, Federated Global Equity Fund and Federated InterContinental Fund.
3
FGIMC serves as Sub-Adviser to: Federated Kaufmann Fund, Federated Kaufmann Large Cap Fund and Federated Kaufmann
Small Cap Fund.
SIGNATURES Pursuant to the requirements of the Securities Act of 1933, and the Investment Company Act of 1940, the Registrant, FEDERATED EQUITY FUNDS certifies that it meets all of the requirements for effectiveness of this Amendment to its Registration Statement pursuant to Rule 485(b) under the Securities Act of 1933 and has duly caused this Amendment to its Registration Statement to be signed on its behalf by the undersigned, duly authorized, in the City of Pittsburgh and Commonwealth of Pennsylvania, on th e 28th day of December 2012. |
FEDERATED EQUITY FUNDS |
BY: /s/ Todd P. Zerega
Todd P. Zerega, Assistant Secretary |
Pursuant to the requirements of the Securities Act of 1933, this Amendment to its Registration Statement has been signed below by the following person in the capacity and on the date indicated: |
NAME | TITLE | DATE |
BY: /s/ Todd P. Zerega
Todd P. Zerega Assistant Secretary |
Attorney In Fact For the Persons Listed Below | December 28, 2012 |
John F. Donahue * | Trustee | |
J. Christopher Donahue * | President and Trustee (Principal Executive Officer) | |
Richard A. Novak* | Treasurer (Principal Financial Officer) | |
Nicholas P. Constantakis* | Trustee | |
John F. Cunningham* | Trustee | |
Maureen Lally-Green* | Trustee | |
Peter E. Madden* | Trustee | |
Charles F. Mansfield, Jr.* | Trustee | |
Thomas O’Neill* | Trustee | |
John S. Walsh* | Trustee | |
*By Power of Attorney |