PRESIDENT'S MESSAGE
- --------------------------------------------------------------------------------
Dear Investor:
I'm pleased to present the Semi-Annual Report to Shareholders for Federated
Intermediate Government Trust (the "Trust"). The report covers the six-month
period ended July 31, 1994, and includes the Trust's Investment Review,
Portfolio of Investments and Financial Statements. In addition, separate
Financial Highlights tables have been included for both classes of shares of the
Trust ("Institutional Shares" and "Institutional Service Shares").
The Trust continues to pursue attractive yields through a diversified portfolio
of intermediate-term U.S. government securities. During the report period, the
Trust maintained its AAAf rating by Standard & Poor's Ratings Group, the highest
available from this independent rating service.
At the end of the report period, the portfolio was invested 98.4% in U.S.
Treasury notes. The balance of the portfolio was invested in a repurchase
agreement.
On July 31, 1994, the Trust's total net assets totaled $864.5 million. Over the
six-month period covered by this report, the Trust paid dividends of more than
$0.20 per share. The Trust's net asset value ended the period at $10.35.
Thank you for your confidence in this high-quality investment product. As
always, we welcome your questions and comments.
Sincerely,
Glen R. Johnson
President
September 15, 1994
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
Federated Intermediate Government Trust (the "Trust"), which is rated AAAf by
Standard & Poor's Ratings Group*, represents a fully-invested participation in
obligations of the U.S. Treasury and government agencies that have a maximum
maturity of five years and an average maturity of three to four years. Since the
Trust's January 31, 1994 fiscal year end, assets decreased to approximately $865
million, and the Trust remained fully invested in U.S. Treasury securities.
During the semi-annual reporting period, interest rates rose all along the yield
curve. Although the Federal Reserve Board's (the "Fed") monetary policy had been
on hold for well over a year, the Fed increased the Federal Funds target rate
from 3% to 3.25% in early February in reaction to a stronger U.S. economy, and
as a preemptive strike against any threat of inflation. Interest rates continued
to rise after the Fed's move due to market expectations that further Fed
tightenings would follow. Further tightenings did follow in March, April, and
May, resulting in a Federal Funds rate of 4.25%, moving the Fed toward a more
neutral monetary policy stance from its accommodative posture in 1993. In
response to continued tightening of monetary policy, the short end of the curve
experienced the largest increase in yields. The 3-year Treasury note yield rose
sharply from 4.4% at the end of January 1994, to 6.3% at the end of July 1994.
Over the same time period, the Trust's average maturity remained at the short
end of its 3 to 4 year range, and the Trust currently has a weighted average
maturity of 3 years and duration of 2.8 years. Although economic growth is
expected to be moderate going forward, the Trust will continue to target a
conservative average maturity in the near term due to the possibility of further
Fed tightening.
* Ratings are subject to change.
FEDERATED INTERMEDIATE GOVERNMENT TRUST
PORTFOLIO OF INVESTMENTS
JULY 31, 1994
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
- --------------- ------------------------------------------------------------------------------- ---------------
INTERMEDIATE-TERM OBLIGATIONS--98.4%
- ------------------------------------------------------------------------------------------------
U.S. TREASURY NOTES--98.4%
-------------------------------------------------------------------------------
$ 115,000,000 4.625%, 2/29/96 $ 113,010,500
-------------------------------------------------------------------------------
25,000,000 7.75%, 3/31/96 25,797,500
-------------------------------------------------------------------------------
30,000,000 5.50%, 4/30/96 29,814,600
-------------------------------------------------------------------------------
45,000,000 7.875%, 7/31/96 46,583,100
-------------------------------------------------------------------------------
90,000,000 6.50%, 5/15/97 90,513,000
-------------------------------------------------------------------------------
62,000,000 6.75%, 5/31/97 62,735,320
-------------------------------------------------------------------------------
25,000,000 5.625%, 8/31/97 24,501,500
-------------------------------------------------------------------------------
35,000,000 5.75%, 10/31/97 34,337,450
-------------------------------------------------------------------------------
65,000,000 6.00%, 11/30/97 64,195,950
-------------------------------------------------------------------------------
85,000,000 5.625%, 1/31/98 82,810,400
-------------------------------------------------------------------------------
80,000,000 5.125%, 3/31/98 76,493,600
-------------------------------------------------------------------------------
50,000,000 5.375%, 5/31/98 48,052,000
-------------------------------------------------------------------------------
70,000,000 5.125%, 6/30/98 66,605,700
-------------------------------------------------------------------------------
20,000,000 4.75%, 8/31/98 18,711,400
-------------------------------------------------------------------------------
20,000,000 5.25%, 7/31/98 19,088,600
-------------------------------------------------------------------------------
50,000,000 5.125%, 11/30/98 47,211,500
------------------------------------------------------------------------------- ---------------
TOTAL INTERMEDIATE-TERM OBLIGATIONS
(IDENTIFIED COST, $866,405,823) 850,462,120
------------------------------------------------------------------------------- ---------------
</TABLE>
FEDERATED INTERMEDIATE GOVERNMENT TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
- --------------- ------------------------------------------------------------------------------- ---------------
*REPURCHASE AGREEMENT--0.4%
- ------------------------------------------------------------------------------------------------
$ 3,020,000 J.P. Morgan Securities, Inc., 4.25%, dated 7/29/94, due 8/1/94
(AT AMORTIZED COST) (NOTE 2B) $ 3,020,000
------------------------------------------------------------------------------- ---------------
TOTAL INVESTMENTS (IDENTIFIED COST, $869,425,823) (NOTE 2A) $ 853,482,120+
------------------------------------------------------------------------------- ---------------
</TABLE>
* The Repurchase Agreement is fully collateralized by U.S. Treasury
obligations based on market prices at the date of the portfolio. The
investment in the repurchase agreement was through participation in
joint accounts with other Federated funds.
+ The cost of investments for federal tax purposes amounts to $869,425,823. The
net unrealized depreciation on a federal tax basis amounts to $15,943,703,
which is comprised of $817,618 appreciation and $16,761,321 depreciation at
July 31, 1994.
Note: The categories of investments are shown as a percentage of net assets
($864,497,167) at July 31, 1994.
(See Notes which are an integral part of the Financial Statements)
FEDERATED INTERMEDIATE GOVERNMENT TRUST
STATEMENT OF ASSETS AND LIABILITIES
JULY 31, 1994
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- ------------------------------------------------------------------------------------------------
Investments in securities, at value (Notes 2A and 2B)
(identified and tax cost; $869,425,823) $ 853,482,120
- ------------------------------------------------------------------------------------------------
Interest receivable 14,666,412
- ------------------------------------------------------------------------------------------------
Receivable for Trust shares sold 420,516
- ------------------------------------------------------------------------------------------------
Prepaid expenses 10,382
- ------------------------------------------------------------------------------------------------ ---------------
Total assets 868,579,430
- ------------------------------------------------------------------------------------------------
LIABILITIES:
- ------------------------------------------------------------------------------------------------
Dividends payable $ 2,561,298
- ---------------------------------------------------------------------------------
Payable for Trust shares redeemed 1,520,965
- --------------------------------------------------------------------------------- -------------
Total liabilities 4,082,263
- ------------------------------------------------------------------------------------------------ ---------------
NET ASSETS for 83,526,743 shares of beneficial interest outstanding $ 864,497,167
- ------------------------------------------------------------------------------------------------ ---------------
NET ASSETS CONSIST OF:
- ------------------------------------------------------------------------------------------------
Paid-in capital $ 910,553,095
- ------------------------------------------------------------------------------------------------
Net unrealized (depreciation) of investments (15,943,703)
- ------------------------------------------------------------------------------------------------
Accumulated net realized (loss) on investments (30,112,225)
- ------------------------------------------------------------------------------------------------ ---------------
Total $ 864,497,167
- ------------------------------------------------------------------------------------------------ ---------------
NET ASSET VALUE, Offering Price, and Redemption Price Per Share:
- ------------------------------------------------------------------------------------------------
Institutional Shares ($837,003,279 / 80,870,291 shares of beneficial
interest outstanding) $10.35
- ------------------------------------------------------------------------------------------------ ---------------
Institutional Service Shares
($27,493,888 / 2,656,452 shares of beneficial interest outstanding) $10.35
- ------------------------------------------------------------------------------------------------ ---------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FEDERATED INTERMEDIATE GOVERNMENT TRUST
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JULY 31, 1994
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME:
- -------------------------------------------------------------------------------------------------
Interest income (Note 2C) $ 23,008,109
- -------------------------------------------------------------------------------------------------
EXPENSES:
- -------------------------------------------------------------------------------------------------
Investment advisory fee* $ 1,814,620
- ----------------------------------------------------------------------------------
Trustees' fees 6,166
- ----------------------------------------------------------------------------------
Administrative personnel and services* 404,747
- ----------------------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 66,802
- ----------------------------------------------------------------------------------
Custodian fees 183,295
- ----------------------------------------------------------------------------------
Trust share registration costs 30,205
- ----------------------------------------------------------------------------------
Auditing fees 21,258
- ----------------------------------------------------------------------------------
Legal fees 6,450
- ----------------------------------------------------------------------------------
Printing and postage 15,320
- ----------------------------------------------------------------------------------
Shareholder services fee--Institutional Service Shares* 25,472
- ----------------------------------------------------------------------------------
Shareholder services fee--Institutional Shares* 5,353
- ----------------------------------------------------------------------------------
Taxes 167
- ----------------------------------------------------------------------------------
Distribution services fees* 34,743
- ----------------------------------------------------------------------------------
Miscellaneous 12,927
- ---------------------------------------------------------------------------------- -------------
Total expenses 2,627,525
- ----------------------------------------------------------------------------------
Deduct:
- ----------------------------------------------------------------------------------
Waiver of investment advisory fee* $ 112,220
- ---------------------------------------------------------------------
Waiver of distribution services fees* 25,472 137,692
- --------------------------------------------------------------------- ----------- -------------
Net expenses 2,489,833
- ------------------------------------------------------------------------------------------------- ---------------
Net investment income 20,518,276
- ------------------------------------------------------------------------------------------------- ---------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
- -------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments (identified cost basis) (15,623,528)
- -------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on investments (23,166,742)
- ------------------------------------------------------------------------------------------------- ---------------
Net realized and unrealized gain (loss) on investments (38,790,270)
- ------------------------------------------------------------------------------------------------- ---------------
Change in net assets resulting from operations $ (18,271,994)
- ------------------------------------------------------------------------------------------------- ---------------
</TABLE>
*See Note 4
(See Notes which are an integral part of the Financial Statements)
FEDERATED INTERMEDIATE GOVERNMENT TRUST
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED JANUARY 31,
----------------------------------
1995* 1994
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- -----------------------------------------------------------------------------
OPERATIONS--
- -----------------------------------------------------------------------------
Net investment income $ 20,518,276 $ 40,467,138
- -----------------------------------------------------------------------------
Net realized gain (loss) on investment transactions
($15,623,528 net loss and $24,049,193 net gain,
respectively, as computed for federal tax purposes) (Note 2D) (15,623,528) 24,049,193
- -----------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) on investments (23,166,742) (9,851,052)
- ----------------------------------------------------------------------------- ---------------- ----------------
Change in net assets resulting from operations (18,271,994) 54,665,279
- ----------------------------------------------------------------------------- ---------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 2C)--
- -----------------------------------------------------------------------------
Dividends to shareholders from net investment income:
- -----------------------------------------------------------------------------
Institutional Shares (19,921,737) (39,557,765)
- -----------------------------------------------------------------------------
Institutional Service Shares (596,539) (909,373)
- ----------------------------------------------------------------------------- ---------------- ----------------
Change in net assets from distributions to shareholders (20,518,276) (40,467,138)
- -----------------------------------------------------------------------------
TRUST SHARE (PRINCIPAL) TRANSACTIONS (NOTE 3)--
- -----------------------------------------------------------------------------
Proceeds from sale of shares 194,173,840 507,015,719
- -----------------------------------------------------------------------------
Net asset value of shares issued to shareholders electing
to receive payment of dividends in Trust shares 5,946,961 11,606,567
- -----------------------------------------------------------------------------
Cost of shares redeemed (279,124,303) (409,136,551)
- ----------------------------------------------------------------------------- ---------------- ----------------
Change in net assets resulting from Trust share transactions (79,003,502) 109,485,735
- ----------------------------------------------------------------------------- ---------------- ----------------
Change in net assets (117,793,772) 123,683,876
- -----------------------------------------------------------------------------
NET ASSETS:
- -----------------------------------------------------------------------------
Beginning of period 982,290,939 858,607,063
- ----------------------------------------------------------------------------- ---------------- ----------------
End of period $ 864,497,167 $ 982,290,939
- ----------------------------------------------------------------------------- ---------------- ----------------
</TABLE>
*For the six months ended July 31, 1994 (unaudited).
(See Notes which are an integral part of the Financial Statements)
FEDERATED INTERMEDIATE GOVERNMENT TRUST
FINANCIAL HIGHLIGHTS--
INSTITUTIONAL SHARES
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED JANUARY 31,
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1995*** 1994 1993 1992 1991 1990 1989 1988 1987 1986
NET ASSET VALUE,
BEGINNING OF PERIOD $ 10.78 $ 10.61 $ 10.25 $ 9.87 $ 9.59 $ 9.42 $ 9.88 $ 10.25 $ 10.02 $ 9.70
- --------------------
INCOME FROM
INVESTMENT
OPERATIONS
- --------------------
Net investment
income 0.23 0.46 0.57 0.71 0.75 0.79 0.81 0.80 0.86 1.03
- --------------------
Net realized and
unrealized gain
(loss) on
investments (0.43) 0.17 0.36 0.38 0.28 0.17** (0.46) (0.28) 0.29 0.32
- -------------------- --------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
Total from
investment
operations (0.20) 0.63 0.93 1.09 1.03 0.96 0.35 0.52 1.15 1.35
- --------------------
LESS DISTRIBUTIONS
- --------------------
Dividends to
shareholders from
net investment
income (0.23) (0.46) (0.57) (0.71) (0.75) (0.79) (0.81) (0.80) (0.86) (1.03)
- --------------------
Distributions for
shareholders from
net realized gain
on investment
transactions -- -- -- -- -- -- -- (0.09) (0.06) --
- -------------------- --------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
Total distributions (0.23) (0.46) (0.57) (0.71) (0.75) (0.79) (0.81) (0.89) (0.92) (1.03)
- -------------------- --------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
NET ASSET VALUE,
END OF PERIOD $ 10.35 $ 10.78 $ 10.61 $ 10.25 $ 9.87 $ 9.59 $ 9.42 $ 9.88 $ 10.25 $ 10.02
- -------------------- --------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
TOTAL RETURN* (1.80%) 6.07% 9.37% 11.44% 11.18% 10.52% 3.66% 5.53% 11.98% 14.71%
- --------------------
RATIOS TO AVERAGE
NET ASSETS
- --------------------
Expenses 0.54 (a) 0.52% 0.50% 0.50% 0.51% 0.51% 0.47% 0.45% 0.45% 0.44%
- --------------------
Net investment
income 4.53 (a) 4.30% 5.52% 7.08% 7.75% 8.26% 8.37% 8.18% 8.37% 10.43%
- --------------------
Expense waiver/
reimbursement (b) 0.03 (a) -- -- -- -- -- 0.03% 0.03% 0.04% 0.13%
- --------------------
SUPPLEMENTAL DATA
- --------------------
Net assets,
end of period
(000 omitted) $837,003 $951,528 $845,620 $779,686 $791,131 $959,728 $1,246,393 $1,534,501 $1,859,687 $655,790
- --------------------
Portfolio turnover
rate 64% 131% 85% 108% 60% 166% 82% 70% 49% 126%
- --------------------
</TABLE>
* Based on net asset value which does not reflect the sales load or contingent
deferred sales charge, if applicable.
** The effect on the 1990 per share data as a result of the Trust's change in
recording interest income to include amortization of market discounts and
premiums (see Note 2C on page 10) was to increase investment income by $0.05
per share and decrease net realized and unrealized gain (loss) on
investments by a corresponding amount.
*** For the six months ended July 31, 1994 (unaudited).
(a) Computed on an annualized basis.
(b) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above (Note 4).
(See Notes which are an integral part of the Financial Statements)
FEDERATED INTERMEDIATE GOVERNMENT TRUST
FINANCIAL HIGHLIGHTS--
INSTITUTIONAL SERVICE SHARES
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED JANUARY 31,
1995*** 1994 1993*
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.78 $ 10.61 $ 10.35
- --------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- --------------------------------------------------------------------------
Net investment income 0.22 0.44 0.34
- --------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments (0.43) 0.17 0.26
- -------------------------------------------------------------------------- ----------- --------- ---------
Total from investment operations (0.21) 0.61 0.60
- --------------------------------------------------------------------------
LESS DISTRIBUTIONS
- --------------------------------------------------------------------------
Dividends to shareholders from net investment income (0.22) (0.44) (0.34)
- -------------------------------------------------------------------------- ----------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 10.35 $ 10.78 $ 10.61
- -------------------------------------------------------------------------- ----------- --------- ---------
TOTAL RETURN** (1.92%) 5.81% 5.84%
- --------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- --------------------------------------------------------------------------
Expenses 0.79%(a) 0.77% 0.75%(a)
- --------------------------------------------------------------------------
Net investment income 4.29%(a) 4.01% 5.13%(a)
- --------------------------------------------------------------------------
Expense waiver/reimbursement (b) 0.21%(a) -- --
- --------------------------------------------------------------------------
SUPPLEMENTAL DATA
- --------------------------------------------------------------------------
Net assets, end of period (000 omitted) $27,494 $30,763 $12,987
- --------------------------------------------------------------------------
Portfolio turnover rate 64 % 131% 85%
- --------------------------------------------------------------------------
</TABLE>
* Reflects operations for the period from June 18, 1992 (date of initial
public investment) to January 31, 1993.
** Based on net asset value which does not reflect the sales load or contingent
deferred sales charge, if applicable.
*** For the six months ended July 31, 1994 (unaudited).
(a) Computed on an annualized basis.
(b) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above (Note 4).
(See Notes which are an integral part of the Financial Statements)
FEDERATED INTERMEDIATE GOVERNMENT TRUST
NOTES TO FINANCIAL STATEMENTS
JULY 31, 1994
(UNAUDITED)
- --------------------------------------------------------------------------------
(1) ORGANIZATION
Federated Intermediate Government Trust (the "Trust") is registered under the
Investment Company Act of 1940, as amended (the "Act"), as a diversified,
open-end, management investment company.
The Trust provides two classes of shares, Institutional Shares and Institutional
Service Shares.
(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--U.S. government obligations are generally valued at
the mean between the over-the-counter bid and asked prices as furnished by
an independent pricing service. Short-term securities with remaining
maturities of sixty days or less may be stated at amortized cost, which
approximates value.
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 that the value
of collateral 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 (the "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. At January 31,
1994, the Trust, for federal tax purposes, had a capital loss carryforward
of $14,488,696, which will reduce the Trust taxable income arising from
future net realized gain on investments, if any, to the extent permitted by
the Code, and thus will reduce the amount of the distributions to
shareholders which
FEDERATED INTERMEDIATE GOVERNMENT TRUST
- --------------------------------------------------------------------------------
would otherwise be necessary to relieve the Trust of any liability for
federal tax. Pursuant to the Code, such capital loss carryforward will
expire in 1998.
E. WHEN-ISSUED 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) for each
class of shares. Transactions in Trust shares were as follows:
<TABLE>
<CAPTION>
YEAR ENDED JANUARY 31,
----------------------------------------------------------------
1995* 1994
------------------------------- -------------------------------
INSTITUTIONAL SHARES SHARES DOLLARS SHARES DOLLARS
<S> <C> <C> <C> <C>
- --------------------------------------------- ------------- ---------------- ------------- ----------------
Shares sold 17,424,683 $ 181,659,968 44,183,221 $ 474,495,331
- ---------------------------------------------
Shares issued to shareholders in
payment of dividends declared 536,220 5,568,270 1,024,213 11,001,988
- ---------------------------------------------
Shares redeemed (25,360,488) (264,122,064) (36,651,122) (393,535,270)
- --------------------------------------------- ------------- ---------------- ------------- ----------------
Net change resulting from Institutional
Shares Transactions (7,399,585) $ (76,893,826) 8,556,312 $ 91,962,049
- --------------------------------------------- ------------- ---------------- ------------- ----------------
<CAPTION>
YEAR ENDED JANUARY 31,
----------------------------------------------------------------
1995* 1994
------------------------------- -------------------------------
INSTITUTIONAL SERVICE SHARES SHARES DOLLARS SHARES DOLLARS
<S> <C> <C> <C> <C>
- --------------------------------------------- ------------- ---------------- ------------- ----------------
Shares sold 1,202,055 $ 12,513,872 3,025,251 $ 32,520,388
- ---------------------------------------------
Shares issued to shareholders in
payment of dividends declared 36,464 378,691 56,258 604,579
- ---------------------------------------------
Shares redeemed (1,435,846) (15,002,239) (1,451,880) (15,601,281)
- --------------------------------------------- ------------- ---------------- ------------- ----------------
Net change resulting from Institutional
Service Shares Transactions (197,327) $ (2,109,676) 1,629,629 $ 17,523,686
- --------------------------------------------- ------------- ---------------- ------------- ----------------
</TABLE>
*Six months ended July 31, 1994 (unaudited).
FEDERATED INTERMEDIATE GOVERNMENT TRUST
- --------------------------------------------------------------------------------
(4) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
ADVISORY FEE--Federated Management, the Trust's investment adviser (the
"Adviser"), receives for its services an annual investment advisory fee equal to
0.40 of 1% of the Trust's average daily net assets.
The Adviser may voluntarily choose to waive a portion of its fee and reimburse
certain operating expenses of the Trust. The Adviser can modify or terminate
this voluntary waiver and reimbursement at any time at its sole discretion.
ADMINISTRATION 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 FAS fee is based
on the level of average aggregate daily net assets of all Trusts advised by
subsidiaries of Federated Investors for the period. The administrative fee
received during the period of the Administrative Services Agreement shall be at
least $125,000 per portfolio and $30,000 per each additional class of shares.
DISTRIBUTION AND SHAREHOLDER SERVICES FEE--The Trust has adopted a Distribution
Plan (the "Plan") pursuant to Rule 12b-1 under the Act. Under the terms of the
Plan, the Trust will compensate Federated Securities Corp. ("FSC"), the
principal distributor, from the net assets of the Trust to finance activities
intended to result in the sale of the Trust's Institutional Service Shares. The
Plan provides that the Trust may incur distribution expenses up to 0.25 of 1% of
the average daily net assets of the Institutional Service Shares, annually, to
compensate FSC. The distributor may voluntarily choose to waive a portion of its
fee. FSC can modify or terminate this voluntary waiver at any time at its sole
discretion. Under the terms of a Shareholder Services Agreement with Federated
Shareholder Services ("FSS"), the Trust will pay FSS up to 0.25 of 1% of average
net assets of the Trust for the period. This fee is to obtain certain personal
services for shareholders and to maintain the shareholder accounts.
TRANSFER AND DIVIDEND DISBURSING AGENT--Federated Services Company ("FServ")
serves as transfer and dividend disbursing agent for the Trust. The FServ fee is
based on the size, type and number of accounts and transactions made by
shareholders.
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the six
months ended
July 31, 1994, were as follows:
<TABLE>
<S> <C>
- -------------------------------------------------------------------------------------------------
PURCHASES-- $ 572,478,321
- ------------------------------------------------------------------------------------------------- ---------------
SALES-- $ 633,062,305
- ------------------------------------------------------------------------------------------------- ---------------
</TABLE>
TRUSTEES OFFICERS
- --------------------------------------------------------------------------------
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
G. Andrew Bonnewell
Assistant Secretary
Mutal funds are not bank deposits or obligations, are not guaranteed
by any bank, and are not insured or guaranteed by the FDIC, the Federal
Reserve Board, or any other government agency. Investment in mutual funds
involves risk, including possible loss of principal.
This report is authorized for distribution to prospective investors only
when preceded or accompanied by the Trust's prospectus which
contains facts concerning its objective and policies, management fees, expenses
and other information.
FEDERATED
INTERMEDIATE
GOVERNMENT
TRUST
SEMI-ANNUAL REPORT
TO SHAREHOLDERS
JULY 31, 1994
[LOGO] FEDERATED SECURITIES CORP.
-----------------------------
Distributor ---------------------------------
A subsidiary of FEDERATED INVESTORS ---------------------------------
FEDERATED INVESTORS TOWER ---------------------------------
PITTSBURGH, PA 15222-3779
---------------------------------
314200106
314200205
8082202 (9/94)
