SEMI-ANNUAL REPORT
President's Message
Dear Shareholder:
I am pleased to present the Semi-Annual Report to Shareholders of Federated
Stock Trust, which covers the six-month reporting period from November 1, 1998
through April 30, 1999. The report begins with a discussion by the fund's
portfolio manager, followed by a complete listing of the fund's holdings and its
financial statements.
The fund is managed to pursue long-term growth through a highly diversified
portfolio of high-quality common stocks. On the last day of the reporting
period, the portfolio included many well-known names, such as AT&T, Allstate,
IBM, Kimberly-Clark, Merck, Texaco, and Wal-Mart.
Over the six-month reporting period, Federated Stock Trust's diversified
portfolio produced a total return of 18.22% 1 through $0.18 per share in income
dividends and a net asset value increase of $2.40. Total net assets reached $1.8
billion on April 30, 1999.
Thank you for participating in the growth opportunities of high-quality stocks
through Federated Stock Trust. As always, we will continue to provide you with
the highest level of professional service. We invite your questions or comments.
Sincerely,
[Graphic]
Glen R. Johnson
President
June 15, 1999
1 Performance quoted reflects past performance and is not indicative of future
results. 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.
Investment Review
The six-month reporting period ended April 30, 1999, provided equity investors
with another solid period of returns, as evidenced by the Standard & Poor's 500
Index (the "S&P 500") 1 total return of 22.32%. A continued healthy economy,
subdued inflation and euphoric investor sentiment drove the market's returns.
This investor sentiment allowed the equity markets to absorb a 50 basis point
increase in long-term interest rates without any negative consequences. The
reporting period started with the continuation of the disturbing trend of narrow
market participation and poor breadth. However, at the beginning of April, this
trend reversed dramatically as cyclical and value stocks rallied substantially.
The market's improved breadth signals that the fears of a global economic
recession that haunted the market last summer have gone. This improvement in the
relative performance of value stocks, which have lagged growth stocks for some
time, is exemplified by the Russell 1000 Value Index,2 which returned 20.02% for
the reporting period. Small-capitalization stocks, as measured by the Standard &
Poor's 600,3 recorded a positive, but more modest return of 9.03% during the
reporting period. The fund returned 18.22%4 for the six months ended April 30,
1999, roughly in line with the Average Growth and Income Fund tracked by Lipper
Analytical Services, Inc.5 which returned 18.38%.
For the six-month period, technology stocks led the market while consumer
staples, in particular tobacco stocks, and utilities dramatically underperformed
the market. Relative to the S&P 500, our performance was negatively impacted by
our underweight position in technology, our overweight position in utilities and
our overweight position in tobacco stocks. The top performing stocks in the
portfolio over the six-month reporting period included Lexmark International
Group, First Data Corp., Philips Electronics, Morgan Stanley, Dean Witter and
Tricon Global Restaurants, Inc. Lagging stocks included Storage Technology
Corp., Philip Morris Cos., Inc., Loews Corp., UST, Inc. and Allstate Corp.
1 The S&P 500 Index is an unmanaged composite index of common stock in industry,
transportation, and financial and public utility companies.
Investments cannot be made in an index.
2 The Russell 1000 Value Index measures the performance of those Russell 1000
companies with lower price-to-book ratios and lower forecasted growth values.
Investments cannot be made in an index.
3 The S&P 600 Index is an unmanaged capitalization weighted index that measures
the performance of selected U.S. stocks with a small market capitalization.
Investments cannot be made in an index.
4 Performance quoted represents past performance and is not indicative of future
results. 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.
5 Lipper figures represent the average of the total returns reported by all of
the mutual funds designated by Lipper Analytical Services, Inc. as falling into
the respective categories indicated. These figures do not reflect sales charges.
Our stock market outlook remains basically unchanged. The market appears
overvalued by all traditional measures, but no visible catalyst is positioned to
derail this bull movement. Given the recent upswing in interest rates, it is
surprising to see the market hold on so strongly. The dividend discount models,
maintained by the Federal Reserve Board and leading market strategists, show
that the S&P 500 is now more than 20% overvalued given the increase in interest
rates. Because of the strength apparent in the economy, the market is betting on
continued earnings strength offsetting these higher interest rates. The market's
April rotation towards cyclical and small capitalization stocks is both
encouraging and frightening. On the plus side, we believe an improvement in
market breadth, and the revival of some of the market's worst performing
sectors, indicate that the global economy is recovering. As a result, a new
overall market base is building from which future market advances can develop.
On the negative side, the rotation towards cyclical and small capitalization
stocks indicates that low interest rates, which have driven the performance of
large growth stocks are no longer accepted as the norm. Thus, one of the
market's major underpinnings, low inflation, may be in question. We believe that
the valuation disparities between the ultra large growth stocks and the rest of
the market, combined with a strong near-term earnings outlook, may fuel a
continuation of this rotation. Therefore, we believe that the value investment
style should continue its catch-up run.
Portfolio of Investments
APRIL 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
COMMON STOCKS-96.2%
BASIC MATERIALS-2.8%
940,800 Archer-Daniels-Midland Co. $ 14,112,000
154,000 Dow Chemical Co. 20,202,875
2,287,500 LTV Corp. 14,582,812
TOTAL 48,897,687
CAPITAL GOODS-12.4%
379,900 Allied-Signal, Inc. 22,319,125
520,400 Crown Cork & Seal Co., Inc. 16,913,000
347,500 Deere & Co. 14,942,500
471,500 Ingersoll-Rand Co. 32,621,906
260,500 Johnson Controls, Inc. 19,000,219
257,500 Koninklijke (Royal) Philips Electronics NV, ADR 21,984,062
194,700 Northrop Grumman Corp. 12,448,631
494,000 Parker-Hannifin Corp. 23,187,125
402,900 Tenneco, Inc. 10,878,300
258,972 Tyco International Ltd. 21,041,475
431,900 Waste Management, Inc. 24,402,350
TOTAL 219,738,693
COMMUNICATION SERVICES-4.4%
391,350 AT&T Corp. 19,763,175
328,800 Bell Atlantic Corp. 18,947,100
259,000 GTE Corp. 17,336,812
403,654 U.S. West, Inc. 21,116,150
TOTAL 77,163,237
CONSUMER CYCLICALS-9.2%
316,000 Block (H&R), Inc. 15,207,500
775,000 Cooper Tire & Rubber Co. 17,001,562
633,000 Dillards, Inc., Class A 17,526,187
252,500 General Motors Corp. 22,456,719
636,000 Hasbro, Inc. 21,703,500
982,900 1 K Mart Corp. 14,620,637
<CAPTION>
SHARES VALUE
<S> <C> <C>
COMMON STOCKS-continued
CONSUMER CYCLICALS-CONTINUED
982,000 News Corp. Ltd., ADR $ 30,012,375
527,600 Wal-Mart Stores, Inc. 24,269,600
TOTAL 162,798,080
CONSUMER STAPLES-9.1%
433,200 Kimberly-Clark Corp. 26,560,575
561,200 1 King World Productions, Inc. 19,782,300
400,200 Philip Morris Cos., Inc. 14,032,013
497,100 RJR Nabisco Holdings Corp. 12,800,325
554,000 Sara Lee Corp. 12,326,500
332,600 1 Tricon Global Restaurants, Inc. 21,411,125
729,500 UST, Inc. 20,334,813
200,400 Unilever N.V., ADR 13,013,475
493,000 1 Viacom, Inc., Class A 19,997,313
TOTAL 160,258,439
ENERGY-9.0%
136,900 Atlantic Richfield Co. 11,491,044
176,500 Chevron Corp. 17,605,875
815,800 ENSCO International, Inc. 15,143,288
238,800 Exxon Corp. 19,835,325
426,800 1 Noble Drilling Corp. 8,375,950
342,800 Royal Dutch Petroleum Co., ADR 20,118,075
531,900 Sunoco, Inc. 19,015,425
220,500 Texaco, Inc. 13,836,375
539,500 USX Corp. 16,859,375
410,500 YPF Sociedad Anonima, ADR 17,241,000
TOTAL 159,521,732
FINANCIALS-18.5%
1,513,000 ABB AB, ADR 21,182,000
254,000 Allmerica Financial Corp. 14,557,375
616,900 Allstate Corp. 22,439,737
284,900 Bank One Corporation 16,809,100
439,530 Bear Stearns Cos., Inc. 20,493,086
401,100 CIGNA Corp. 34,970,906
876,800 CIT Group, Inc., Class A 28,496,000
1,167,400 Conseco, Inc. 36,846,062
<CAPTION>
SHARES VALUE
<S> <C> <C>
COMMON STOCKS-continued
FINANCIALS-CONTINUED
280,800 Hartford Financial Services Group, Inc. $ 16,549,650
190,400 Lincoln National Corp. 18,290,300
265,000 Loews Corp. 19,394,688
263,800 MBIA Insurance Corp. 17,740,550
252,750 Marsh & McLennan Cos., Inc. 19,351,172
225,000 Morgan Stanley, Dean Witter & Co. 22,317,188
425,500 Washington Mutual, Inc. 17,498,688
TOTAL 326,936,502
HEALTH CARE-10.1%
472,000 Abbott Laboratories 22,862,500
262,471 Baxter International, Inc. 16,535,673
1,882,100 1 Beverly Enterprises, Inc. 12,233,650
474,000 Bristol-Myers Squibb Co. 30,128,625
1,318,000 1 HEALTHSOUTH, Corp. 17,710,625
268,200 Merck & Co., Inc. 18,841,050
525,000 Pharmacia & Upjohn, Inc. 29,400,000
556,400 United Healthcare Corp. 31,227,950
TOTAL 178,940,073
TECHNOLOGY-14.3%
91,600 1 Computer Sciences Corp. 5,455,925
228,800 Eastman Kodak Co. 17,074,200
465,000 Electronic Data Systems Corp. 24,993,750
721,500 First Data Corp., Class 30,618,656
143,700 International Business Machines Corp. 30,060,244
307,500 1 Lexmark Intl. Group, Class A 37,976,250
251,500 Raytheon Co., Class A 17,400,656
469,000 1 Seagate Technology, Inc. 13,073,375
593,000 1 Storage Technology Corp. 11,452,313
1,078,800 1 Sun Microsystems, Inc. 64,525,725
TOTAL 252,631,094
TRANSPORTATION-1.4%
377,000 KLM Royal Dutch Airlines, ADR 11,380,687
477,000 Ryder Systems, Inc. 12,580,875
TOTAL 23,961,562
<CAPTION>
SHARES OR
PRINCIPAL
AMOUNT VALUE
<S> <C> <C>
COMMON STOCKS-continued
UTILITIES-5.0%
688,000 Entergy Corp. $ 21,500,000
293,000 FPL Group, Inc. 16,517,875
584,000 P G & E Corp. 18,140,500
426,000 Public Service Enterprises Group, Inc. 17,040,000
519,500 Reliant Energy, Inc. 14,708,344
TOTAL 87,906,719
TOTAL COMMON STOCKS (IDENTIFIED COST $1,199,172,616) 1,698,753,818
REPURCHASE AGREEMENT-4.4%
$ 77,135,000 2 ABN AMRO, Inc., 4.94%, dated 4/30/1999, due 5/3/1999 77,135,000
TOTAL INVESTMENTS (IDENTIFIED COST $1,276,307,615) 3 $ 1,775,888,818
</TABLE>
1 Non-income producing security.
2 The repurchase agreement is fully collateralized by U.S. government and/or
agency 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.
3 The cost of investments for federal tax purposes amounts to $1,276,307,615.
The net unrealized appreciation of investments on a federal tax basis amounts to
$499,581,203 which comprised $553,745,273 appreciation and $54,164,070
depreciation at April 30, 1999.
Note: The categories of investments are shown as a percentage of net assets
($1,766,067,452) at April 30, 1999.
The following acronym is used throughout this portfolio:
ADR -American Depositary Receipt
See Notes which are an integral part of the Financial Statements
Statement of Assets and Liabilities
APRIL 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
<S> <C> <C>
ASSETS:
Total investments in
securities, at value
(identified and tax cost
$1,276,307,615) $ 1,775,888,818
Income receivable 1,472,863
Receivable for shares sold 1,223,260
TOTAL ASSETS 1,778,584,941
LIABILITIES:
Payable for investments
purchased $ 10,730,096
Payable for shares
redeemed 212,978
Payable to Bank 1,189,675
Payable for taxes withheld 13,831
Accrued expenses 370,909
TOTAL LIABILITIES 12,517,489
Net assets for 43,636,335
shares outstanding $ 1,766,067,452
NET ASSETS CONSIST OF:
Paid in capital $ 1,198,005,583
Net unrealized
appreciation of
investments 499,581,203
Accumulated net realized
gain on investments 67,742,669
Undistributed net
investment income 737,997
TOTAL NET ASSETS $ 1,766,067,452
NET ASSET VALUE, OFFERING
PRICE AND REDEMPTION
PROCEEDS PER SHARE:
$1,766,067,452 /
43,636,335 shares
outstanding $40.47
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Operations
SIX MONTHS ENDED APRIL 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
<S> <C> <C>
INVESTMENT INCOME:
Dividends (net of foreign
taxes withheld of
$128,409) $ 14,048,457
Interest 505,306
TOTAL INCOME 14,553,763
EXPENSES:
Investment advisory fee $ 5,136,143
Administrative personnel
and services fee 577,843
Custodian fees 36,427
Transfer and dividend
disbursing agent fees and
expenses 317,326
Directors'/Trustees' fees 9,104
Auditing fees 7,445
Legal fees 3,038
Portfolio accounting fees 81,388
Shareholder services fee 1,915,924
Share registration costs 32,052
Printing and postage 17,106
Insurance premiums 4,130
Miscellaneous 9,775
TOTAL EXPENSES 8,147,701
WAIVERS:
Waiver of shareholder
services fee (809,287)
Net expenses 7,338,414
Net investment income 7,215,349
REALIZED AND UNREALIZED
GAIN ON INVESTMENTS:
Net realized gain on
investments 67,771,875
Net change in unrealized
appreciation of
investments 191,995,248
Net realized and
unrealized gain on
investments 259,767,123
Change in net assets
resulting from operations $ 266,982,472
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR
(unaudited) ENDED
APRIL 30, OCTOBER 31,
1999 1998
<S> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS
OPERATIONS:
Net investment income $ 7,215,349 $ 13,484,228
Net realized gain on
investments ($67,771,875
and $148,479,604
respectively, as computed
for federal tax purposes) 67,771,875 148,484,465
Net change in unrealized
appreciation 191,995,248 34,385,883
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS 266,982,472 196,354,576
DISTRIBUTIONS TO
SHAREHOLDERS:
Distributions from net
investment income (7,574,605) (12,886,475)
Distributions from net
realized gains (148,430,859) (216,135,366)
CHANGE IN NET ASSETS
RESULTING FROM
DISTRIBUTIONS
TO SHAREHOLDERS (156,005,464) (229,021,841)
SHARE TRANSACTIONS:
Proceeds from sale of
shares 350,202,844 632,560,746
Net asset value of shares
issued to shareholders in
payment of
distributions declared 107,472,925 143,104,220
Cost of shares redeemed (251,404,724) (468,196,162)
CHANGE IN NET ASSETS
RESULTING FROM SHARE
TRANSACTIONS 206,271,045 307,468,804
Change in net assets 317,248,053 274,801,539
NET ASSETS:
Beginning of period 1,448,819,399 1,174,017,860
End of period (including
undistributed net
investment income of
$737,997 and $1,097,253,
respectively) $ 1,776,067,452 $ 1,448,819,399
</TABLE>
See Notes which are an integral part of the Financial Statements
Financial Highlights
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(unaudited)
APRIL 30, YEAR ENDED OCTOBER 31,
1999 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING
OF PERIOD $38.07 $39.90 $34.38 $30.66 $26.33 $26.40
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.17 0.37 0.36 0.53 0.47 0.46
Net realized and unrealized gain on investments 6.30 5.38 9.54 5.84 5.04 0.68
TOTAL FROM INVESTMENT OPERATIONS 6.47 5.75 9.90 6.37 5.51 1.14
LESS DISTRIBUTIONS:
Distributions from net
investment income (0.18) (0.36) (0.38) (0.51) (0.49) (0.43)
Distributions from net realized gain on investments (3.89) (7.22) (4.00) (2.14) (0.69) (0.78)
TOTAL DISTRIBUTIONS (4.07) (7.58) (4.38) (2.65) (1.18) (1.21)
NET ASSET VALUE, END OF PERIOD $40.47 $38.07 $39.90 $34.38 $30.66 $26.33
TOTAL RETURN 1 18.22% 16.40% 32.27% 22.08% 21.98% 4.55%
RATIOS TO AVERAGE NET ASSETS:
Expenses 2 1.07%3 1.07% 1.12% 1.14% 1.16% 0.97%
Net investment income 2 0.83%3 0.87% 0.86% 1.49% 1.56% 1.81%
Expenses (after waivers) 0.96%3 0.96% 0.99% 0.99% 1.01% 0.97%
Net investment income
(after waivers) 0.94%3 0.98% 0.99% 1.64% 1.71% 1.81%
SUPPLEMENTAL DATA:
Net assets, end of period
(000 omitted) $1,766,067 $1,448,819 $1,174,018 $830,545 $632,069 $600,664
Portfolio turnover 12% 41% 71% 55% 42% 28%
</TABLE>
1 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
2 During the period, certain fees were waived. If such voluntary waivers had not
occurred, the ratios would have been as indicated.
3 Computed on an annualized basis.
See Notes which are an integral part of the Financial Statements
Notes to Financial Statements
APRIL 30, 1999 (UNAUDITED)
ORGANIZATION
Federated Stock 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 investment objective of the Trust is to provide growth
of income and capital by investing principally in a professionally management
and diversified portfolio of common stock of high-quality companies.
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
Short-term securities are valued at the prices provided by an independent
pricing service. However, short-term securities with remaining maturities of 60
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.
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).
Transactions in shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS YEAR
ENDED ENDED
APRIL 30, OCTOBER 31,
1999 1998
<S> <C> <C>
Shares sold 9,331,544 16,935,050
Shares issued to
shareholders in payment of
distributions declared 2,943,327 4,119,701
Shares redeemed (6,698,120) (12,419,564)
NET CHANGE RESULTING FROM
SHARE TRANSACTIONS 5,576,751 8,635,187
</TABLE>
INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE
Federated Investment Management Company, the Trust's investment adviser (the
"Adviser"), receives for its services an annual investment advisory fee equal to
0.75% of the first $500 million in average daily net assets, 0.675% of the
second $500 million in average daily net assets, 0.60% of the third $500 million
in average daily net assets, 0.525% of the fourth $500 million in average daily
net assets, and 0.40% of average daily net assets in excess of $2 billion. The
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 commissions, and extraordinary expenses) exceed 1% of average
daily net assets of the Trust.
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, Inc. 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.
SHAREHOLDER SERVICES FEE
Under the terms of a Shareholder Services Agreement with Federated Shareholder
Services Company ("FSSC"), the Trust will pay FSSC up to 0.25% of average daily
net assets of the Trust shares for the period. The fee paid to FSSC is used to
finance certain services for shareholders and to maintain shareholder accounts.
For the period ended April 30, 1999, the Trust shares did not incur a
shareholder services fee. FSSC may voluntarily choose to waive any portion of
its fee. FSSC can modify or terminate this voluntary waiver at any time at its
sole discretion.
TRANSFER AND DIVIDEND DISBURSING AGENT FEES AND EXPENSES
FServ, through its subsidiary FSSC, serves as transfer and dividend disbursing
agent for the Trust. The fee paid to FSSC is based on the size, type, and number
of accounts and transactions made by shareholders.
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
reporting 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.
INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the
period ended April 30, 1999, were as follows:
<TABLE>
<CAPTION>
<S> <C>
Purchases $ 190,621,224
Sales $ 178,424,617
</TABLE>
YEAR 2000 (UNAUDITED)
Similar to other financial organizations, the Trust could be adversely affected
if the computer systems used by the Trust's service providers do not properly
process and calculate date-related information and data from and after January
1, 2000. The Trust's Adviser and administrator are taking measures that they
believe are reasonably designed to address the Year 2000 issue with respect to
computer systems that they use and to obtain reasonable assurances that
comparable steps are being taken by each of the Trust's other service providers.
At this time, however, there can be no assurance that these steps will be
sufficient to avoid any adverse impact to the Trust.
Trustees
JOHN F. DONAHUE
THOMAS G. BIGLEY
JOHN T. CONROY, JR.
NICHOLAS P. CONSTANTAKIS
JOHN F. CUNNINGHAM
LAWRENCE D. ELLIS, M.D.
PETER E. MADDEN
JOHN E. MURRAY, JR., J.D., S.J.D.
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 and Secretary
RICHARD B. FISHER
Vice President
RICHARD J. THOMAS
Treasurer
C. GRANT ANDERSON
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 trust's prospectus which contains facts
concerning its objective and policies, management fees, expenses, and other
information.
[Graphic]
Federated
World-Class Investment Manager
SEMI-ANNUAL REPORT
Federated Stock Trust
SEMI-ANNUAL REPORT TO SHAREHOLDERS
APRIL 30, 1999
[Graphic]
Federated
Federated Stock Trust
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
1-800-341-7400
WWW.FEDERATEDINVESTORS.COM
Federated Securities Corp., Distributor
Cusip 313900102
8083101 (6/99)
[Graphic]
