PRESIDENT'S MESSAGE
Dear Investor:
I'm pleased to present the Semi-Annual Report to Shareholders for Federated
U.S. Government Securities Fund: 2-5 Years. The Report covers the six-month
period ended July 31, 1996 and includes the fund's Investment Review,
Financial Statements, and Portfolio of Investments.
During the report period, the fund pursued attractive income through a
portfolio that consisted primarily of U.S. Treasury Notes. Dividends paid by
the fund during this period totaled $0.28 per share for Institutional Shares
and $0.27 per share for Institutional Service Shares. The fund's net asset
value ended the period at $10.36. Total net assets stood at $844 million on
the last day of the period.
During the six-month reporting period, the fund maintained its AAAf rating
by Standard & Poor's Ratings Group, the highest available from this
independent rating service.*
We appreciate your confidence in Federated U.S. Government Securities Fund:
2-5 Years. As always, we welcome your questions and comments.
Sincerely,
<Graphic>
Glen R. Johnson
President
September 15, 1996
* An AAAf rating means that the fund's portfolio holdings and counterparties
provide extremely strong protection against losses from credit defaults.
Ratings do not remove market risks and are subject to change.
INVESTMENT REVIEW
Federated U.S. Government Securities Fund: 2-5 Years represents a
fully-invested participation in those obligations of the U.S. Treasury and
certain government agencies which have a maximum maturity of five years and
an average maturity of three to four years. Since the fund's January 31,
1996 fiscal year end, the fund has remained fully invested in U.S. Treasury
securities. Standard & Poor's Ratings Group has assigned the fund an AAAf
credit rating.*
Fixed income performance year to date 1996 has been quite the opposite of
that in 1995. At the start of the fund's fiscal year, the Federal Reserve
Board (the "Fed") had just lowered the federal funds target rate for the
third time to 5.25% in response to a moderating economy and reduced
inflationary pressures. But by mid-February, market sentiment soured and
interest rates increased steadily all along the yield curve in response to
stronger economic growth and heightened inflation fears. Although the Fed's
monetary policy has remained on hold since January 31, 1996, short- to
intermediate-term rates have increased more than long-term rates as the
market dramatically transitioned from pricing in aggressive Fed easing to
the possibility of Fed tightening. The 3-year Treasury note yield fell from
5.03% at the end of January 1996 to 4.88% in mid-February before rising to
6.36% at the end of July 1996. The fund's net total return for the six
months ending July 31, 1996 was (0.91)% for the Institutional Shares and
(1.04)% for the Institutional Service Shares** compared to (0.53)% for the
Merrill Lynch 3-Year Treasury Index*** and (1.31)% for the Merrill Lynch 3-5
Year Treasury Index.***
Although the economy is expected to grow, it is not expected to accelerate
enough to warrant aggressive tightening of monetary policy. Therefore, given
the increase in rates and the likelihood that the recent strength in the
economy will not be sustained, the fund's average maturity has been
lengthened from a more defensive 3.1 years at year end 1995 toward a more
neutral posture of 3.4 years currently.
* An AAAf rating means that the fund's portfolio holdings and counterparties
provide extremely strong protection against losses from credit defaults.
Ratings do not remove market risks and are subject to change.
** Performance quoted represents past performance. Investment return and
principal value will fluctuate, so that an investor's shares, when
redeemed, may be worth more or less than their original cost.
*** Merrill Lynch 3-Year Treasury Index is comprised of the most recently
issued 3-year U.S. Treasury note. Merrill Lynch 3-5 Year Treasury Index is
comprised of U.S. Treasury securities with maturities between 3 and 4.99
years. Index returns are calculated as total returns for periods of one,
three, six and twelve months as well as year-to-date. Indexes are
unmanaged. Investments cannot be made in an index.
FEDERATED U.S. GOVERNMENT SECURITIES FUND: 2-5 YEARS
PORTFOLIO OF INVESTMENTS
JULY 31, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
U.S. TREASURY NOTES -- 99%
$ 15,000,000 9.250%, 8/15/1998 $ 15,856,950
15,000,000 5.500%, 11/15/1998 14,754,750
53,500,000 8.875%, 11/15/1998 56,418,425
13,000,000 5.000%, 2/15/1999 12,601,810
55,000,000 6.750%, 5/31/1999 55,521,400
65,000,000 6.750%, 6/30/1999 65,632,450
30,000,000 7.125%, 9/30/1999 30,594,600
75,000,000 7.500%, 10/31/1999 77,305,500
150,000,000 7.750%, 12/31/1999 155,929,500
40,000,000 7.750%, 1/31/2000 41,592,800
63,300,000 6.875%, 3/31/2000 64,117,836
19,000,000 6.250%, 5/31/2000 18,843,820
80,000,000 5.875%, 6/30/2000 78,297,600
25,000,000 6.125%, 7/31/2000 24,668,250
20,000,000 6.125%, 9/30/2000 19,715,400
30,000,000 5.625%, 11/30/2000 28,994,700
50,000,000 6.375%, 3/31/2001 49,650,500
25,000,000 6.625%, 6/30/2001 25,063,500
TOTAL U.S. TREASURY NOTES (IDENTIFIED COST $848,003,683) 835,559,791
(A)REPURCHASE AGREEMENT -- 0.3%
2,215,000 B.T. Securities Corp., 5.680%, dated 7/31/1996, due 8/1/1996
(at amortized cost) 2,215,000
TOTAL INVESTMENTS (IDENTIFIED COST $850,218,683)(B) $837,774,791
</TABLE>
(a) 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 is through participation in a joint
account with other Federated funds.
(b) The cost of investments for federal tax purposes amounts to
$850,218,683. The net unrealized depreciation of investments on a federal
tax basis amounts to $12,443,892 which is comprised of $563,376
appreciation and $13,007,268 depreciation at July 31, 1996.
Note: The categories of investments are shown as a percentage of net assets
($844,049,319) at July 31, 1996.
(See Notes which are an integral part of the Financial Statements)
FEDERATED U.S. GOVERNMENT SECURITIES FUND: 2-5 YEARS
STATEMENT OF ASSETS AND LIABILITIES
JULY 31, 1996 (UNAUDITED)
<TABLE>
<S> <C> <C>
ASSETS:
Total investments in securities, at value (identified and tax cost $850,218,683) $ 837,774,791
Income receivable 10,218,826
Receivable for shares sold 664,713
Total assets 848,658,330
LIABILITIES:
Income distribution payable $3,867,651
Payable to Bank 657,007
Accrued expenses 84,353
Total liabilities 4,609,011
NET ASSETS for 81,446,163 shares outstanding $ 844,049,319
NET ASSETS CONSIST OF:
Paid in capital $ 891,247,326
Net unrealized depreciation of investments (12,443,892)
Accumulated net realized loss on investments (34,754,115)
Total Net Assets $ 844,049,319
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PROCEEDS PER SHARE:
INSTITUTIONAL SHARES:
$810,699,099 / 78,228,031 shares outstanding $10.36
INSTITUTIONAL SERVICE SHARES:
$33,350,220 / 3,218,132 shares outstanding $10.36
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FEDERATED U.S. GOVERNMENT SECURITIES FUND: 2-5 YEARS
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JULY 31, 1996 (UNAUDITED)
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 25,776,814
EXPENSES:
Investment advisory fee $ 1,736,947
Administrative personnel and services fee 328,283
Custodian fees 57,929
Transfer and dividend disbursing agent fees and expenses 110,512
Directors'/Trustees' fees 7,532
Auditing fees 8,393
Legal fees 1,729
Portfolio accounting fees 70,005
Distribution services fee -- Institutional Service Shares 40,236
Shareholder services fee -- Institutional Shares 1,045,322
Shareholder services fee -- Institutional Service Shares 40,236
Share registration costs 19,895
Printing and postage 10,848
Insurance premiums 6,940
Miscellaneous 2,891
Total expenses 3,487,698
Waivers --
Waiver of investment advisory fee $ (19,082)
Waiver of distribution services fee -- Institutional Service Shares (37,017)
Waiver of shareholder services fee -- Institutional Shares (1,045,322)
Waiver of shareholder services fee -- Institutional Service Shares (3,219)
Total waivers (1,104,640)
Net expenses 2,383,058
Net investment income 23,393,756
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investments 6,501,048
Net change in unrealized depreciation of investments (38,107,171)
Net realized and unrealized loss on investments (31,606,123)
Change in net assets resulting from operations $ (8,212,367)
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FEDERATED U.S. GOVERNMENT SECURITIES FUND: 2-5 YEARS
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS YEAR
ENDED ENDED
(UNAUDITED) JANUARY 31,
JULY 31, 1996 1996
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS --
Net investment income $ 23,393,756 $ 50,360,050
Net realized gain (loss) on investments ($6,501,048 and
$2,698,415 respectively, as computed for federal tax 6,501,048 18,811,797
purposes)
Net change in unrealized appreciation (depreciation) (38,107,171) 30,753,121
Change in net assets resulting from operations (8,212,367) 99,924,968
DISTRIBUTIONS TO SHAREHOLDERS --
Distributions from net investment income
Institutional Shares (22,564,777) (48,447,620)
Institutional Service Shares (828,979) (1,912,430)
Change in net assets resulting from distributions to (23,393,756) (50,360,050)
shareholders
SHARE TRANSACTIONS --
Proceeds from sale of shares 159,328,513 394,300,069
Net asset value of shares issued to shareholders in
payment of
distributions declared 7,203,055 17,897,905
Cost of shares redeemed (195,158,484) (321,877,596)
Change in net assets resulting from share transactions (28,626,916) 90,320,378
Change in net assets (60,233,039) 139,885,296
NET ASSETS:
Beginning of period 904,282,358 764,397,062
End of period $ 844,049,319 $ 904,282,358
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FEDERATED U.S. GOVERNMENT SECURITIES FUND: 2-5 YEARS
FINANCIAL HIGHLIGHTS -- INSTITUTIONAL SHARES
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX
MONTHS
ENDED
(UNAUDITED)
JULY 31, YEAR ENDED JANUARY 31,
1996 1996 1995 1994 1993 1992 1991 1990 1989 1988
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING
OF PERIOD $10.74 $10.11 $10.78 $10.61 $10.25 $ 9.87 $ 9.59 $ 9.42 $ 9.88 $10.25
INCOME FROM
INVESTMENT
OPERATIONS
Net investment 0.28 0.64 0.54 0.46 0.57 0.71 0.75 0.79(a) 0.81 0.80
income
Net realized and
unrealized gain
(loss) on
investments (0.38) 0.63 (0.67) 0.17 0.36 0.38 0.28 0.17(a) (0.46) 0.28
Total from
investment
operations (0.10) 1.27 (0.13) 0.63 0.93 1.09 1.03 0.96 0.35 0.52
LESS
DISTRIBUTIONS
Distributions
from net
investment
income (0.28) (0.64) (0.54) (0.46) (0.57) (0.71) (0.75) (0.79) (0.81) (0.80)
Distributions
from net
realized gain on
investment
transactions 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.09
Total
distributions (0.28) (0.64) (0.54) (0.46) (0.57) (0.71) (0.75) (0.79) (0.81) (0.89)
NET ASSET
VALUE, END
OF PERIOD $10.36 $10.74 $10.11 $10.78 $10.61 $10.25 $ 9.87 $ 9.59 $ 9.42 $ 9.88
TOTAL RETURN(B) (0.91%) 12.86% (1.18)% 6.07% 9.37% 11.44% 11.18% 10.52% 3.66% 5.53%
RATIOS TO AVERAGE
NET ASSETS
Expenses 0.54%* 0.54%* 0.54%* 0.52% 0.50% 0.50% 0.51% 0.51% 0.47% 0.45%
Net investment
income 5.40%* 6.07% 5.16% 4.30% 5.52% 7.08% 7.75% 8.26% 8.37% 8.18%
Expense waiver/
reimbursement(c) 0.25%* 0.25% 0.02% -- -- -- -- -- 0.03% 0.03%
SUPPLEMENTAL DATA
Net assets, end
of period
(000 omitted) $810,699 $871,966 $731,280 $951,528 $845,620 $779,686 $791,131 $959,728 $1,246,393 $1,534,501
Portfolio
turnover 62% 117% 163% 131% 85% 108% 60% 166% 82% 70%
* Computed on an annualized basis.
(a) 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 was to increase investment income by $0.05 per share and
decrease net realized and unrealized gain on investments by a
corresponding amount.
(b) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(See Notes which are an integral part of the Financial Statements)
FEDERATED U.S. GOVERNMENT SECURITIES FUND: 2-5 YEARS
FINANCIAL HIGHLIGHTS -- INSTITUTIONAL SERVICE SHARES
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(UNAUDITED)
JULY 31, YEAR ENDED JANUARY 31,
1996 1996 1995 1994 1993(A)
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.74 $10.11 $10.78 $10.61 $10.35
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.27 0.61 0.51 0.44 0.34
Net realized and unrealized gain (loss) on
investments (0.38) 0.63 (0.67) 0.17 0.26
Total from investment operations (0.11) 1.24 (0.16) 0.61 0.60
LESS DISTRIBUTIONS
Distributions from net investment income (0.27) (0.61) (0.51) (0.44) (0.34)
NET ASSET VALUE, END OF PERIOD $10.36 $10.74 $10.11 $10.78 $10.61
TOTAL RETURN(B) (1.04%) 12.58% (1.42)% 5.81% 5.84%
RATIOS TO AVERAGE NET ASSETS
Expenses 0.79%* 0.79% 0.79% 0.77% 0.75%
Net investment income 5.15%* 5.85% 5.00% 4.01% 5.13%
Expense waiver/reimbursement(c) 0.25% 0.25% 0.21%
SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $33,350 $32,317 $33,117 $30,763 $12,987
Portfolio turnover 62% 117% 163% 131% 85%
</TABLE>
* Computed on an annualized basis.
(a) Reflects operations for the period from June 18, 1992 (date of initial
public investment) to January 31, 1993.
(b) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(See Notes which are an integral part of the Financial Statements)
FEDERATED U.S. GOVERNMENT SECURITIES FUND: 2-5 YEARS
NOTES TO FINANCIAL STATEMENTS
JULY 31, 1996 (UNAUDITED)
(1) ORGANIZATION
Federated U.S. Government Securities Fund: 2-5 Years (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 offers
two classes of shares: Institutional Shares and Institutional Service
Shares. The investment objective is current income.
(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.
INVESTMENT VALUATIONS -- U.S. government securities are generally valued at
the mean of the latest bid and asked price as furnished by an independent
pricing service. Short-term securities are valued at the prices provided by
an independent pricing service. However, short-term securities with
remaining maturities of sixty days or less at the time of purchase may be
valued at amortized cost, which approximates fair market value.
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 under repurchase agreement
transactions. Additionally, procedures have been established by the Trust to
monitor, on a daily basis, the market value of each repurchase agreement's
collateral to ensure that the value of collateral at least equals the
repurchase price to be paid under the repurchase agreement transaction.
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 the guidelines and/or
standards reviewed or established by the Board of Trustees (the "Trustees").
Risks may arise from the potential inability of counterparties to honor the
terms of the repurchase agreement. Accordingly, the Trust could receive less
than the repurchase price on the sale of collateral securities.
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.
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 income. Accordingly, no
provisions for federal tax are necessary.
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.
USE OF ESTIMATES -- The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the amounts of assets, liabilities,
expenses and revenues reported in the financial statements. Actual results
could differ from those estimated.
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 shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JULY 31, 1996 JANUARY 31, 1996
INSTITUTIONAL SHARES AMOUNT SHARES AMOUNT
SHARES
<S> <C> <C> <C> <C>
Shares sold 14,207,924 $ 148,670,584 36,204,187 $ 379,207,092
Shares issued to
shareholders in
payment
of distributions 631,108 6,581,835 1,558,967 16,359,196
declared
Shares redeemed (17,810,051) (186,067,688) (28,865,263) (302,475,855)
Net change
resulting from
Institutional
Share transactions (2,971,019) $ (30,815,269) 8,897,891 $ 93,090,433
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JULY 31, 1996 JANUARY 31, 1996
INSTITUTIONAL SHARES AMOUNT SHARES AMOUNT
SERVICE SHARES
<S> <C> <C> <C> <C>
Shares sold 1,015,361 $ 10,657,929 1,439,874 $ 15,092,977
Shares issued to
shareholders in
payment of
distributions
declared 59,566 621,220 146,629 1,538,709
Shares redeemed (866,870) (9,090,796) (1,850,636) (19,401,741)
Net change
resulting from
Institutional
Service Share
transactions 208,057 $ 2,188,353 (264,133) $ (2,770,055)
Net change
resulting from
share
transactions (2,762,962) $ (28,626,916) 8,633,758 $ 90,320,378
</TABLE>
(4) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT 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 the Trust's average daily net assets. The
Adviser may voluntarily choose to waive any portion of its fee or reimburse
other expenses of the Trust, but reserves the right to terminate such waiver
or reimbursement at any time at its sole discretion.
ADMINISTRATIVE FEE -- Federated Services Company ("FServ"), under the
Administrative Services Agreement, provides the Trust with administrative
personnel and services. The fee paid to FServ 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
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 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 Corporation ("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 .25% 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 this fee. The distributor can modify or
terminate this voluntary waiver at any time at its sole discretion.
SHAREHOLDER SERVICES FEE -- Under the terms of a Shareholder Services
Agreement with Federated Shareholder Services ("FSS"), the Trust will pay
FSS up to 0.25% of daily average net assets of the Trust for the period. The
fee paid to FSS is used to finance certain services for shareholders and to
maintain shareholder accounts. FSS may voluntarily choose to waive any
portion of its fee. FSS can modify or terminate this voluntary waiver at any
time at its sole discretion.
PORTFOLIO ACCOUNTING FEES -- FServ maintains the Trust's accounting records
for which it receives a fee. The fee is based on the level of the Trust's
average daily net assets for the period, plus out-of-pocket expenses.
GENERAL -- Certain of the Officers and Trustees of the Trust are Officers
and Directors or Trustees of the above companies.
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities for the
period ended July 31, 1996, were as follows:
<TABLE>
<S> <C>
PURCHASES $526,799,414
SALES $541,310,985
</TABLE>
TRUSTEES
John F. Donahue
Thomas G. Bigley
John T. Conroy, Jr.
William J. Copeland
James E. Dowd
Lawrence D. Ellis, M.D.
Edward L. Flaherty, Jr.
Peter E. Madden
Gregor F. Meyer
John E. Murray, Jr.
Wesley W. Posvar
Marjorie P. Smuts
OFFICERS
John F. Donahue
Chairman
Glen R. Johnson
President
J. Christopher Donahue
Executive Vice President
Edward C. Gonzales
Executive Vice President
John W. McGonigle
Executive Vice President, Treasurer and Secretary
Richard B. Fisher
Vice President
Douglas L. Hein
Assistant Treasurer
S. Elliott Cohan
Assistant Secretary
Mutual funds are not bank deposits or obligations, are not guaranteed by any
bank, and are not insured or guaranteed by the U.S. government, the Federal
Deposit Insurance Corporation, the Federal Reserve Board, or any other
government agency. Investment in mutual funds involves investment risk,
including the possible loss of principal.
This report is authorized for distribution to prospective investors only
when preceded or accompanied by the fund's prospectus, which contains facts
concerning its objective and policies, management fees, expenses and other
information.
FEDERATED U.S.
GOVERNMENT
SECURITIES
FUND: 2-5 YEARS
SEMI-ANNUAL REPORT
TO SHAREHOLDERS
JULY 31, 1996
Federated Investors
<Graphic>
Federated Investors Tower
Pittsburgh, PA 15222-3779
Federated Securities Corp. is the distributor of the fund
and is a subsidiary of Federated Investors.
<Graphic>
Cusip 31428P103
Cusip 31428P202
8082202 (9/96)
