FEDERATED
MASTER
TRUST
SEMI-ANNUAL REPORT
TO SHAREHOLDERS
MAY 31, 1994
<LOGO>
FEDERATED SECURITIES CORP.
Distributor
A subsidiary of FEDERATED INVESTORS
FEDERATED INVESTORS TOWER
PITTSBURGH, PA 15222-3779
314214107
8070106 (7/94)
President's Message
- --------------------------------------------------------------------------------
Dear Shareholder:
I am pleased to present the Semi-Annual Report to Shareholders for Federated
Master Trust (the "Trust"), which covers the six-month period ended May 31,
1994. The report includes the Investment Review, Financial Statements, and the
Portfolio of Investments.
The Trust continues to pursue competitive daily income, along with daily
liquidity and stability of principal*, through a diversified portfolio
primarily composed of commercial paper (41.4%), variable rate instruments
(31.9%), repurchase agreements (24.4%), and certificates of deposit (2.3%).
At the end of the period, the Trust's net assets stood at $814 million.
Dividends paid to shareholders during the period totaled $12.9 million, or
$0.02 per share.
We will continue to keep you up to date on your investment in Federated Master
Trust. As always, we welcome your comments and suggestions.
Sincerely,
LOGO
Glen R. Johnson President
July 15, 1994
* While no money market mutual fund can guarantee that a stable net asset value
will be maintained, the Trust has done so since its inception.
Investment Review
- --------------------------------------------------------------------------------
May 31, 1994
The Trust invests exclusively in money market instruments maturing in twelve
months or less. The average maturity of these securities, computed on a dollar-
weighted basis, is restricted to 90 days or less. Portfolio securities must be
rated in the highest short-term rating category by one or more of the
nationally recognized statistical rating organizations or be of comparable
quality to securities having such ratings. Typical security types include, but
are not limited to, commercial paper, certificates of deposit, time deposits,
variable rate instruments, and repurchase agreements.
The pace of U.S. economic activity has been moderate over the past year except
for a spurt of strength in the fourth quarter of 1993. Employment seems to be
making modest but steady gains while personal income and personal spending have
experienced minor upticks. From a manufacturing vantage point, industrial
production, capacity utilization, and durable goods orders have all begun to
rebound. In this mild recovery, both the Consumer Price Index ("CPI") and the
Producer Price Index ("PPI") have been contained, indicating that inflation
remains under control.
The target average maturity range for Federated Master Trust has gone from its
maximum of 50 to 60 days in November 1993 to its current 30 to 40 day range.
This reflects our continuing bias that the money market yield curve is fairly
steep, and value can be obtained through both structure as well as by stepping
out the curve a bit. In structuring the Trust, there is continued emphasis
placed on positioning 25% to 30% of the Trust's assets in variable rate demand
notes and accomplishing a modest barbell structure.
Defensive positioning has proven helpful since October 1993. The Federal
Reserve Board (the "Fed") has raised short-term rates four times since February
4, 1994. The Fed Funds target has gone from 3% to 4.25% and the discount rate
has increased from 3% to 3.5%. Despite the fact that CPI and PPI indicate
moderate inflationary levels, the Fed has begun to fight "inflation
expectations." Given the continued path of recovery, the Fed has now declared a
neutral stance.
During the six months ended May 31, 1994, the net assets of Federated Master
Trust decreased from $868.8 to $814.4 million while the 7-day net yield
increased from 2.94% to 3.74%*. The effective average maturity of the Trust on
May 31, 1994 was 38 days.
*Data quoted represent past performance and are not indicative of future
results. Yield will vary.
Federated Master Trust
Portfolio of Investments
May 31, 1994 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Value
----------- ----------------------------------------------- ------------
<C> <S> <C>
Certificate of Deposit--2.3%
-----------------------------------------------------------
Banking--2.3%
-----------------------------------------------
$10,000,000 Canadian Imperial Bank of Commerce,
-----------------------------------------------
3.52%, 8/5/94 $ 10,000,000
-----------------------------------------------
4,000,000 Commerzbank AG,
-----------------------------------------------
3.56%, 8/12/94 4,000,867
-----------------------------------------------
5,000,000 Rabobank Nederland
-----------------------------------------------
3.53%, 8/16/94 4,999,798
----------------------------------------------- ------------
Total Certificate of Deposit 19,000,665
----------------------------------------------- ------------
++Commercial Paper--41.4%
-----------------------------------------------------------
Banking--14.5%
-----------------------------------------------
6,000,000 Abbey National N.A. Corp. (Guaranteed by Abbey
National Bank PLC),
-----------------------------------------------
3.27%, 7/21/94 5,973,167
-----------------------------------------------
10,000,000 Bank of Nova Scotia,
-----------------------------------------------
3.38%, 6/27/94 9,976,167
-----------------------------------------------
15,000,000 Bayerische Vereinsbank AG,
-----------------------------------------------
3.30%, 7/18/94 14,936,354
-----------------------------------------------
31,000,000 Canadian Imperial Holdings, Inc.,
-----------------------------------------------
3.34%-4.53%, 8/3/94-9/16/94 30,696,655
-----------------------------------------------
16,000,000 Comdisco, Inc. (Union Bank of Switzerland LOC),
-----------------------------------------------
3.88%-4.09%, 6/28/94-9/22/94 15,915,002
-----------------------------------------------
4,000,000 Commerzbank U.S. Finance, Inc.,
-----------------------------------------------
4.02%, 8/19/94 3,965,328
-----------------------------------------------
5,000,000 Credit Lyonnais North America, Inc.
-----------------------------------------------
4.94%, 11/7/94 4,893,337
-----------------------------------------------
3,000,000 PEMEX Capital, Inc. (Swiss Bank Corp. LOC),
---------------------------------------------
3.43%, 8/2/94 2,982,537
---------------------------------------------
28,343,000 Queensland, Alumina Ltd. (Credit Suisse LOC),
---------------------------------------------
3.88%-4.40%, 6/3/94-8/11/94 28,257,591
--------------------------------------------- ------------
Total 117,596,138
--------------------------------------------- ------------
Electrical Equipment--1.0%
---------------------------------------------
8,000,000 General Electric Co.,
---------------------------------------------
3.41%, 10/7/94 7,905,280
--------------------------------------------- ------------
Finance--Automotive--3.0%
---------------------------------------------
25,000,000 Ford Credit Receivable Funding, Inc.,
---------------------------------------------
4.28%-4.54%, 8/26/94-10/7/94 24,689,775
--------------------------------------------- ------------
Finance--Commercial--5.4%
---------------------------------------------
11,000,000 CIT Group Holdings, Inc.,
---------------------------------------------
3.38%, 6/27/94 10,964,387
---------------------------------------------
33,500,000 General Electric Capital Corp.,
---------------------------------------------
3.51%-5.33%, 8/9/94-1/12/95 33,070,556
--------------------------------------------- ------------
Total 44,034,943
--------------------------------------------- ------------
Food & Beverage--2.9%
---------------------------------------------
24,000,000 Anheuser-Busch Cos., Inc.,
---------------------------------------------
3.51%-3.54%, 9/7/94-9/9/94 23,773,255
--------------------------------------------- ------------
Funding Corporation--12.6%
---------------------------------------------
12,500,000 Asset Securitization Cooperative Corp.,
---------------------------------------------
4.00%, 8/4/94 12,412,222
---------------------------------------------
27,000,000 Beta Finance, Inc.,
---------------------------------------------
3.27%-5.20%, 6/3/94-11/14/94 26,903,196
---------------------------------------------
5,000,000 CIESCO, LP,
---------------------------------------------
4.06%, 9/20/94 4.938,642
---------------------------------------------
12,500,000 Corporate Asset Funding Co., Inc.,
-----------------------------------------------
3.33%-4.18%, 8/1/94-9/27/94 12,367,479
-----------------------------------------------
35,000,000 New Center Asset Trust (Series A1+/P1),
-----------------------------------------------
3.85%-4.73% 6/10/94-8/15/94 34,920,572
-----------------------------------------------
11,000,000 Schering Corp.,
-----------------------------------------------
4.29%, 10/18/94 10,821,617
----------------------------------------------- ------------
Total 102,363,728
----------------------------------------------- ------------
Insurance--2.0%
-----------------------------------------------
9,097,000 Prospect St. Sr. Loan Port. L.P. (Guaranteed by
FSA),
-----------------------------------------------
3.85%-4.57% 6/8/94-8/1/94 9,073,074
-----------------------------------------------
7,500,000 Prudential Funding Corp.,
-----------------------------------------------
4.13%, 10/3/94 7,395,375
----------------------------------------------- ------------
Total 16,468,449
----------------------------------------------- ------------
Total Commercial Paper 336,831,568
----------------------------------------------- ------------
*Variable Rate Instruments--31.9%
-----------------------------------------------------------
Banking--16.5%
-----------------------------------------------
10,000,000 500 South Front St. L.P. Series A (Huntington
National Bank LOC),
-----------------------------------------------
4.60%, 6/2/94 10,000,000
-----------------------------------------------
1,555,000 Continental Commercial Properties (Huntington
National Bank LOC),
-----------------------------------------------
4.60%, 6/2/94 1,555,000
-----------------------------------------------
2,680,000 Continental Downtown Properties (Huntington
National Bank LOC),
-----------------------------------------------
4.60%, 6/2/94 2,680,000
-----------------------------------------------
8,750,000 H & D Inc. (Huntington National Bank LOC),
-----------------------------------------------
4.60%, 6/2/94 8,750,000
-----------------------------------------------
22,800,000 Industrial Development of Jackson, AL (National
Westminster Bank LOC), 4.65%, 6/2/94 22,800,000
-----------------------------------------------
21,162,000 Midwest Funding Corp., (Bank One, Columbus LOC),
-------------------------------------------------
4.55%, 6/2/94 21,162,000
-------------------------------------------------
25,800,000 S. Grumbacher & Son (PNC Bank N.A. LOC),
-------------------------------------------------
4.58%, 6/6/94 25,800,000
-------------------------------------------------
32,000,000 SMM Trust 1993-B (Guaranteed by Morgan Guaranty
Trust Co.),
-------------------------------------------------
4.86%, 8/12/94 32,000,000
-------------------------------------------------
9,200,000 Wendy's of Las Vegas, Inc. and Wendy's of San
Antonio, Inc, (Huntington National Bank LOC), 9,200,000
4.60%, 6/2/94 ------------
-------------------------------------------------
Total 133,947,000
------------------------------------------------- ------------
Electrical Equipment--5.3%
-------------------------------------------------
7,299,675 GS Funding Corp. (Guaranteed by General Electric
Co),
-------------------------------------------------
4.58%, 6/6/94 7,299,675
-------------------------------------------------
35,466,985 Northwest Airlines, Inc. (Guaranteed by General
Electric Co),
-------------------------------------------------
4.60%, 6/6/94 35,466,985
------------------------------------------------- ------------
Total 42,766,660
------------------------------------------------- ------------
Finance--Automotive--3.3%
-------------------------------------------------
27,000,000 Carco Auto Loan Master Trust Certificates, Series
1993-2, Class A-1,
-------------------------------------------------
4.46%, 6/15/94 27,000,000
------------------------------------------------- ------------
Insurance--2.9%
-------------------------------------------------
24,000,000 Peoples Security Life Insurance Co.,
-------------------------------------------------
4.37%, 6/1/94 24,000,000
------------------------------------------------- ------------
Leasing--3.9%
-------------------------------------------------
29,000,000 PHH/CFC Leasing ( Series B),
-------------------------------------------------
4.58%, 6/1/94 29,000,000
-------------------------------------------------
3,000,000 PHH/CFC Leasing (Societe Generale LOC),
-------------------------------------------------
4.58%, 6/1/94 3,000,000
------------------------------------------------- ------------
Total 32,000,000
------------------------------------------------- ------------
Total Notes Variable 259,713,660
------------------------------------------------- ------------
**Repurchase Agreements--24.4%
-----------------------------------------------------------
90,000,000 Chase Government Securities,
-----------------------------------------------
4.25%, 6/1/94 90,000,000
-----------------------------------------------
29,000,000 Donaldson, Lufkin & Jenrette Securities Corp.,
-----------------------------------------------
4.25%, 6/1/94 29,000,000
-----------------------------------------------
10,000,000 PaineWebber, Inc.,
-----------------------------------------------
4.30%, 6/1/94 10,000,000
-----------------------------------------------
52,800,000 S.G Warburg & Co., Inc.,
-----------------------------------------------
4.25%, 6/1/94 52,800,000
-----------------------------------------------
17,000,000 Salomon Brothers, Inc.,
-----------------------------------------------
4.30%, 6/1/94 17,000,000
----------------------------------------------- ------------
Total Repurchase Agreements (Note 2B) 198,800,000
----------------------------------------------- ------------
Total Investments, at amortized cost (Note 2A) $814,345,893+
----------------------------------------------- ------------
</TABLE>
The following abbreviations are used in this portfolio:
FSA-Financial Security Assurance
LOC-Letter of Credit
+ Also represents cost for federal tax purposes
++ Each issue shows the rate of discount at time of purchase for discount
issues, or the coupon for interest bearing issues.
* Current rate and next rate reset shown.
** Repurchase agreements are fully collateralized by U.S. government and/or
agency obligations based on market prices at the date of the portfolio. The
investments in the repurchase agreements are through participation in joint
accounts with other Federated funds.
Note: The categories of investments are shown as a percentage of net assets
($814,372,504) at May 31, 1994.
(See Notes which are an integral part of the Financial Statements)
Federated Master Trust
Statement of Assets and Liabilities
May 31, 1994
(unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Assets:
- ------------------------------------------------------------
Investments in repurchase agreements (Note 2B) $198,800,000
- ----------------------------------------------
Investments in other marketable securities 615,545,893
- ---------------------------------------------- ------------
Total investments, at amortized cost and value (Note 2A) $814,345,893
- ------------------------------------------------------------
Cash 211,259
- ------------------------------------------------------------
Interest receivable 1,434,745
- ------------------------------------------------------------
Receivable for Trust shares sold 457,365
- ------------------------------------------------------------ ------------
Total assets 816,449,262
- ------------------------------------------------------------
Liabilities:
- ------------------------------------------------------------
Dividends payable 1,959,548
- ----------------------------------------------
Payable for Trust shares redeemed 9,651
- ----------------------------------------------
Accrued expenses and other liabilities 107,559
- ---------------------------------------------- ------------
Total liabilities 2,076,758
- ------------------------------------------------------------ ------------
Net Assets for 814,372,504 shares of beneficial interest $814,372,504
outstanding ------------
- ------------------------------------------------------------
Net Asset Value, Offering Price and Redemption Price Per
Share
($814,372,504 / 814,372,504 shares of beneficial interest $1.00
outstanding) ------------
- ------------------------------------------------------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
Federated Master Trust
Statement of Operations
Six months ended May 31, 1994
(unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Investment Income:
- -----------------------------------------------------------------
Interest income (Note 2C) $14,743,965
- -----------------------------------------------------------------
Expenses:
- -----------------------------------------------------------------
Investment advisory fee (Note 4) $1,641,786
- -----------------------------------------------------
Trustees' fees 5,800
- -----------------------------------------------------
Administrative personnel and services (Note 4) 293,427
- -----------------------------------------------------
Custodian and Portfolio Accounting Fees 145,450
- -----------------------------------------------------
Transfer agent and dividend disbursing agent fees and
expenses (Note 4) 20,022
- -----------------------------------------------------
Trust share registration costs 26,000
- -----------------------------------------------------
Auditing fees 9,115
- -----------------------------------------------------
Legal fees 8,104
- -----------------------------------------------------
Printing and postage 7,778
- -----------------------------------------------------
Taxes 4,600
- -----------------------------------------------------
Shareholder service fees 103,018
- -----------------------------------------------------
Miscellaneous 9,100
- ----------------------------------------------------- ----------
Total expenses 2,274,200
- -----------------------------------------------------
Deduct--Waiver of investment advisory fee (Note 4) 392,300
- ----------------------------------------------------- ----------
Net expenses 1,881,900
- ----------------------------------------------------------------- -----------
Net investment income $12,862,065
- ----------------------------------------------------------------- -----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
Federated Master Trust
Statement of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended November 30,
--------------------------------
1994* 1993
--------------- ---------------
<S> <C> <C>
Increase (Decrease) in Net Assets:
- ------------------------------------------
Operations--
- ------------------------------------------
Net investment income $ 12,862,065 $ 30,332,900
- ------------------------------------------ --------------- ---------------
Distributions to Shareholders (Note 2C)--
- ------------------------------------------
Dividends to shareholders from net invest- (12,862,065) (30,332,900)
ment income --------------- ---------------
- ------------------------------------------
Trust Share (Principal) Transactions (Note
3)--
- ------------------------------------------
Proceeds from sale of shares 3,280,350,130 7,012,193,252
- ------------------------------------------
Net asset value of shares issued to
shareholders in payment of dividends
declared 2,300,834 5,866,430
- ------------------------------------------
Cost of shares redeemed (3,337,106,708) (7,207,902,151)
- ------------------------------------------ --------------- ---------------
Change in net assets from Trust share (54,455,744) (189,842,469)
transactions --------------- ---------------
- ------------------------------------------
Change in net assets (54,455,744) (189,842,469)
- ------------------------------------------
Net Assets:
- ------------------------------------------
Beginning of period 868,828,248 1,058,670,717
- ------------------------------------------ --------------- ---------------
End of period $ 814,372,504 $ 868,828,248
- ------------------------------------------ --------------- ---------------
</TABLE>
* Six months ended May 31, 1994 (unaudited)
(See Notes which are an integral part of the Financial Statements)
Federated Master Trust
Financial Highlights
- --------------------------------------------------------------------------------
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Year Ended November 30,
------------------------------------------------------------------------------------------------------------------
- -----
1994* 1993 1992 1991 1990 1989 1988 1987 1986 1985 19
84
- ---------------- -------- -------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- -----
- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of
period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.
00
- ----------------
Income from
investment
operations
- ----------------
Net investment
income 0.02 0.03 0.04 0.06 0.08 0.09 0.07 0.06 0.07 0.08 0.
10
- ---------------- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ---
- --
Less distribu-
tions
- ----------------
Dividends to
shareholders
from net
investment
income (0.02) (0.03) (0.04) (0.06) (0.08) (0.09) (0.07) (0.06) (0.07) (0.08) (0.
10)
- ---------------- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ---
- --
Net asset value, $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.
00
end of period ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ---
- --
- ----------------
Total return** 1.57% 2.91% 3.76% 6.22% 8.16% 9.21% 7.33% 6.39% 6.82% 8.23% 10.
49%
- ----------------
Ratios to aver-
age net assets
- ----------------
Expenses 0.46%(a) 0.46% 0.46% 0.46% 0.45% 0.45% 0.45% 0.45% 0.45% 0.45% 0.
45%
- ----------------
Net investment
income 3.13%(a) 2.88% 3.73% 6.13% 7.87% 8.83% 7.03% 6.22% 6.60% 7.94% 9.
98%
- ----------------
Supplemental
data
- ----------------
<CAPTION>
Net assets, end
of
period (000
omitted)
- ---------------- $814,373 $868,828 $1,058,671 $1,302,565 $1,495,299 $2,109,661 $2,391,625 $3,237,809 $3,057,411 $2,864,241 $3,53
1,411
</TABLE>
* Six months ended May 31, 1994 (unaudited)
** Based on net asset value which does not reflect the sales load or redemption
fee, if applicable.
(a) Computed on an annualized basis.
(See Notes which are an integral part of the Financial Statements)
Federated Master Trust
Notes to Financial Statements
May 31, 1994
(unaudited)
- -------------------------------------------------------------------------------
(1) Organization
Federated Master Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "Act"), as a diversified, open-end, no
load, management investment company.
(2) Significant Accounting Policies
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
A. Investment Valuations--The Trust's use of the amortized cost method to
value its portfolio securities is in accordance with Rule 2a-7 under the
Act.
B. Repurchase Agreements--It is the policy of the Trust to require the
custodian bank to take possession, to have legally segregated in the
Federal Reserve Book Entry System or to have segregated within the
custodian bank's vault, all securities held as collateral in support of
repurchase agreement investments. Additionally, procedures have been
established by the Trust to monitor on a daily basis, the market value of
each repurchase agreement's underlying collateral to ensure the value at
least equals the principal amount of the repurchase agreement, including
accrued interest.
The Trust will only enter into repurchase agreements with banks and other
recognized financial institutions such as broker/dealers which are deemed
by the Trust's adviser to be creditworthy pursuant to guidelines
established by the Board of Trustees ("Trustees").
C. Investment Income, Expenses and Distributions--Interest income and expenses
are accrued daily. Bond premium and discount, if applicable, are amortized
as required by the Internal Revenue Code, as amended ("Code").
Distributions to shareholders are recorded on the ex-dividend date.
D. Federal Taxes--It is the Trust's policy to comply with the provisions of
the Code applicable to regulated investment companies and to distribute to
shareholders each year substantially all of its taxable income.
Accordingly, no provisions for federal tax are necessary.
E. When-lssued and Delayed Delivery Transactions--The Trust may engage in
when-issued or delayed delivery transactions. The Trust records when-issued
securities on the trade date and maintains security positions such that
sufficient liquid assets will be available to make payment for the
securities purchased. Securities purchased on a when-issued or delayed
delivery basis are marked to market daily and begin earning interest on the
settlement date.
F. Other--Investment transactions are accounted for on the trade date.
(3) Shares of Beneficial Interest
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value). At May
31, 1994, capital paid-in aggregated $814,372,504. Transactions in Trust shares
were as follows:
<TABLE>
<CAPTION>
Year Ended November 30
- ------------------------------
1994* 1993
- -------------- --------------
- -------------------------------------------------------------------------------
<S> <C> <C>
Shares sold 3,280,350,130 7,012,193,252
- ----------------------------------------------
Shares issued to shareholders in payment of
dividends declared 2,300,834 5,866,430
- ----------------------------------------------
Shares redeemed (3,337,106,708) (7,207,902,151)
- ---------------------------------------------- -------------- --------------
Net change resulting from Trust share transac- (54,455,744) (189,842,469)
tions -------------- --------------
- ----------------------------------------------
</TABLE>
*Six months ended May 31, 1994 (unaudited)
(4) Investment Advisory Fee and Other Transactions with Affiliates
Investment Advisory Fee--Federated Research, the Trust's investment adviser
("Adviser"), receives for its services an annual investment advisory fee equal
to .40 of 1% of the Trust's average daily net assets. Adviser will waive, to
the extent of its advisory fee, the amount, if any, by which the Trust's
aggregate annual operating expenses (excluding interest, taxes, brokerage
commission, expenses of registering and qualifying the Trust and its shares
under federal and state laws expenses of withholding taxes and extraordinary
expenses) exceed .45 of 1% of average daily net assets of the Trust.
Administrative Fee--Federated Administrative Services ("FAS") provides the
Trust administrative personnel and services. Prior to March 1, 1994, these
services were provided at approximate cost. Effective March 1, 1994, the fee is
based on the level of average aggregate daily net assets of all funds advised
by subsidiaries of Federated Investors for the period. The administrative fee
received during any fiscal year shall be at least $125,000 per portfolio and
$30,000 per each additional class of shares.
Shareholder Services Plan--Under the terms of a shareholder services agreement
with Federated Shareholder Services ("FSS") the Trust will pay FSS up to .25 of
1% of average net assets of the Trust for the period. This fee is to obtain
certain personal services for shareholders and the maintenance of shareholder
accounts.
Transfer and Dividend Disbursing Agent--Federated Services Company ("FServ")
serves as transfer and dividend disbursing agent for the Trust. The fee is
based on the size, type and number of accounts and transactions made by
shareholders.
Certain of the Officers and Trustees of the Trust are Officers and Directors or
Trustees of the above companies.
TrusteesOfficers
- --------------------------------------------------------------------------------
John F. Donahue John F. Donahue
John T. Conroy, Jr. Chairman
William J. Copeland Glen R. Johnson
James E. Dowd President
Lawrence D. Ellis, M.D. J. Christopher Donahue
Edward L. Flaherty, Jr. Vice President
Peter E. Madden Richard B. Fisher
Gregor F. Meyer Vice President
Wesley W. Posvar Edward C. Gonzales
Marjorie P. Smuts Vice President and Treasurer
John W. McGonigle
Vice President and Secretary
David M. Taylor
Assistant Treasurer
J. Crilley Kelly
Assistant Secretary
Mutual funds are not obligations of or insured by any bank nor
are they insured by the federal government or any of its
agencies.
This report is authorized for distribution to prospective investors only when
precededor accompanied by the Trust's prospectus which contains facts
concerning its objective and policies, management fees, expenses and other
information.
