As of July 22, 2013, the following shareholders owned of record, beneficially or both, 5% or more of outstanding Class C Shares: Merrill Lynch Pierce Fenner & Smith, Jacksonville, FL, owned
approximately 115,635 Shares (13.52%); Morgan Stanley & Co., Jersey City, NJ, owned approximately 93,632 Shares (10.95%); UBS WM USA, Jersey City, NJ, owned approximately 86,065 Shares (10.06%); and First
Clearing, LLC, St. Louis, MO, owned approximately 48,496 Shares (5.67%).
As of July
22, 2013, the following shareholder owned of record, beneficially, or both, 5% or more of outstanding Class R Shares: Frontier Trust Company, Fargo, ND, owned approximately 7,609 Shares (7.15%).
As of July
22, 2013, the following shareholders owned of record, beneficially or both, 5% or more of outstanding Institutional Shares: Federated Stock and Bond Fund, Boston, MA, owned approximately 725,362 Shares (13.35%);
National Financial Services LLC, Jersey City, NJ, owned approximately 724,568 Shares (13.34%); Federated Managed Tail Risk Fund II, Boston, MA, owned approximately 700,023 Shares (12.89%); Reliance Trust Company,
Atlanta, GA, owned approximately 408,603 Shares (7.52%); Firtan, Manhattan, KS, owned approximately 335,041 Shares (6.17%); and Enterprise Trust & Investment Co., Los Gatos, CA, owned approximately 334,475 Shares
(6.16%).
Shareholders owning 25% or more of outstanding Shares may be in control and be able to affect the outcome of certain matters presented for a vote of shareholders.
Pershing
is organized in the state of Delaware and is a subsidiary of The Bank of New York Mellon; organized in the state of Delaware.
Tax Information
Federal Income Tax
The Fund
intends to meet requirements of Subchapter M of the Internal Revenue Code (“Code”) applicable to regulated investment companies. If these requirements are not met, it will not receive special tax treatment
and will be subject to federal corporate income tax.
The Fund
will be treated as a single, separate entity for federal income tax purposes so that income earned and capital gains and losses realized by the Trust's other portfolios will be separate from those realized by the
Fund.
The Fund
is entitled to a loss carryforward, which may reduce the taxable income or gain that the Fund would realize, and to which the shareholder would be subject, in the future.
Tax Basis Information
Under the
Energy Improvement and Extension Act of 2008, the Fund's Transfer Agent will be required to provide you with the cost basis information on the sale of any of your Shares in the Fund, subject to certain exceptions.
This cost basis reporting requirement is effective for shares purchased in the Fund on or after January 1, 2012.
Foreign Investments
If the
Fund purchases foreign securities, their investment income may be subject to foreign withholding or other taxes that could reduce the return on these securities. Tax treaties between the United States and foreign
countries, however, may reduce or eliminate the amount of foreign taxes to which the Fund would be subject. The effective rate of foreign tax cannot be predicted since the amount of Fund assets to be invested within
various countries is uncertain. However, the Fund intends to operate so as to qualify for treaty-reduced tax rates when applicable.
Distributions from a Fund may be based on estimates of book income for the year. Book income generally consists solely of the income generated by the securities in the portfolio, whereas tax-basis income includes,
in addition, gains or losses attributable to currency fluctuation. Due to differences in the book and tax treatment of fixed-income securities denominated in foreign currencies, it is difficult to project currency
effects on an interim basis. Therefore, to the extent that currency fluctuations cannot be anticipated, a portion of distributions to shareholders could later be designated as a return of capital, rather than income,
for income tax purposes, which may be of particular concern to simple trusts.
If the
Fund invests in the stock of certain foreign corporations, they may constitute Passive Foreign Investment Companies (PFIC), and the Fund may be subject to federal income taxes upon disposition of PFIC investments.
If more
than 50% of the value of the Fund's assets at the end of the tax year is represented by stock or securities of foreign corporations, the Fund will qualify for certain Code provisions that allow its shareholders to
claim a foreign tax credit or deduction on their U.S. income tax returns. The Code may limit a shareholder's ability to claim a foreign tax credit. Shareholders who elect to deduct their portion of the Fund's foreign
taxes rather than take the foreign tax credit must itemize deductions on their income tax returns.