Federated American Leaders Fund, Inc.
(formerly, American Leaders Fund, Inc.)
27TH SEMI-ANNUAL REPORT
SEPTEMBER 30, 1996
ESTABLISHED 1969
GROWTH & INCOME
PRESIDENT'S MESSAGE
[Graphic]
Dear Fellow Shareholder:
Federated American Leaders Fund, Inc. was created in 1969, and I am pleased
to present the 27th Semi-Annual Report for the fund. This report covers the
six-month period from April 1, 1996 to September 30, 1996.
First, we present a discussion with the fund's co-managers Peter R.
Anderson, Senior Vice President, Federated Advisers, and Scott B.
Schermerhorn, Vice President, Federated Advisers. Following their discussion
are graphs depicting the fund's long-term investment performance, a complete
list of the fund's highly diversified stock holdings, and the fund's
financial statements.
The portfolio of high-quality common stocks -- which, at the end of the
period, included household names like Chrysler, Mattel, Heinz, Avon, Exxon,
General Electric, Wal-Mart, Intel, and AT&T -- performed well in the
continued favorable stock market environment. The fund's total return
performance for the six-month period, which reflects income dividends,
realized gain, and capital appreciation, is shown below for each share
class.*
<TABLE>
<CAPTION>
NET ASSET CAPITAL TOTAL
VALUE INCREASE INCOME GAINS RETURN
<S> <C> <C> <C> <C>
Class A Shares $19.78 to $20.48 = 4% $0.09 $0.32 5.70%
Class B Shares $19.79 to $20.48 = 3% $0.02 $0.32 5.26%
Class C Shares $19.80 to $20.48 = 3% $0.02 $0.32 5.20%
Class F Shares $19.78 to $20.48 = 4% $0.09 $0.32 5.69%
</TABLE>
During the report period, the fund achieved a milestone by topping $1
billion in assets for the first time in its 27-year history. This growth is
the result of a sizable increase in the value of fund shares as well as the
continued participation of long-time and new shareholders who increased
their holdings.
* Performance quoted is based on net asset value and reflects past
performance. Performance 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. Total returns
for the period (based on offering price) for Class A Shares, Class B Shares,
Class C Shares, and Class F Shares were (0.11%), (0.34%), 4.18%, and 3.61%,
respectively.
Thank you for entrusting a portion of your wealth to our blue-chip stock
fund, Federated American Leaders Fund, Inc.
The investment concept of selecting and owning 50 to 100 leading American
corporations has served our shareholders well. These competitive
corporations offer products and services that are in demand throughout the
U.S. and the world, and we are putting them all to work for you in one
convenient investment.
We encourage you to reinvest your dividends and capital gains automatically
in additional shares. It is a convenient way to increase your opportunity to
participate in the growth and earnings of blue-chip American companies.
As always, we welcome your comments and suggestions.
Sincerely,
[Graphic]
John F. Donahue
President
November 15, 1996
INVESTMENT REVIEW
[Graphic]
Peter R. Anderson
Senior Vice President
Federated Advisers
[Graphic]
Scott B. Schermerhorn
Vice President
Federated Advisers
[Graphic]
DURING THE SIX-MONTH REPORT PERIOD ENDED SEPTEMBER 30, 1996, THE STOCK
MARKET STUMBLED BRIEFLY BUT STILL MANAGED TO REACH THEIR NEW HIGHS TOWARD
THE END OF SEPTEMBER. WHAT IS YOUR REVIEW OF THE SECOND AND THIRD QUARTERS
OF 1996?
In the second quarter of 1996, the U.S. stock market, as measured by the
Standard & Poor's 500 Index* ("S&P 500"), exhibited higher volatility than
the first quarter, yet continued its winning ways producing a 4.49% return.
The stock market, as measured by the Dow Jones Industrial Average, posted a
3.09% total return for the third quarter boosting the year-to-date
(September 30, 1996) return to 13.50%.
The economy was very strong in the second quarter, but slowed somewhat in
the third quarter to an estimated 2.5% rate of growth (real Gross Domestic
Product). Currently, economic signals are mixed and corporate profit growth
is slowing to a 5%-6% annual rate. As the stock market has hit new highs, it
has also become more sector rotational and stock selective.
[Graphic]
HOW DID FEDERATED AMERICAN LEADERS FUND, INC. PERFORM FOR ITS SHAREHOLDERS?
For the six-month report period, the fund's Class A, B, C, and F Shares
produced total returns of 5.70%, 5.26%, 5.20%, and 5.69%, respectively.**
This performance is based on net asset value and includes capital
appreciation, income dividends, and capital gains.
The fund continues to show solid long-term results. For example, annualized
total return based on net asset value for Class A Shares for the 1-year,
5-year, and 10-year periods ending September 30, 1996, were 19.17%, 15.52%,
and 12.70%, respectively.**
* The Standard & Poor's 500 Index is a composite index of common stocks in
industry, transportation, and financial and public utility companies that
can be used to compare to the total returns of funds whose portfolios are
invested primarily in common stocks. This index is unmanaged, and actual
investments may not be made in an index.
** 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. Total returns for the six-month period ended September 30,
1996 for Class A Shares, Class B Shares, Class C Shares, and Class F Shares
based on offering price, were (0.11%), (0.34%), 4.18%, and 3.61%,
respectively. Total returns based on offering price for Class A Shares for
the 1-year, 5-year, and 10-year periods ended September 30, 1996, were
12.61%, 14.22%, and 12.07%, respectively.
[Graphic]
IN THE FUND'S PREVIOUS REPORT, YOU SINGLED OUT FINANCE AND TECHNOLOGY AS
SECTORS IN WHICH THE FUND MAINTAINED OVERWEIGHTED POSITIONS RELATIVE TO THE
S&P 500 WEIGHTINGS. WHAT WAS THE FUND'S EXPOSURE TO THESE SECTORS ON
SEPTEMBER 30, 1996?
During the third quarter, we reduced exposure in Technology and Finance to
roughly market (S&P 500) weight. Some technology companies have begun to
experience earnings disappointments or have become fully valued on an
intermediate basis. With the outstanding performance of the Finance sector,
many stocks in that group also have moved to levels that offer limited
upside in our opinion. Several new positions in the Utilities and
Consumer-Non Durable sectors increased the fund's holdings in these sectors
to approximately market weight. At the end of the quarter, the fund had no
major overweighted or underweighted sectors, which is consistent with our
valuation and estimate revision disciplines.
Our goal in this blue-chip stock fund is to find opportunities to invest in
companies that are leaders in their respective industries, but at the same
time avoid stocks that have become clearly overvalued. We believe even the
best companies can experience short-term disappointments that provide buying
opportunities for long-term investors. The longer term selection themes
underlying our investment strategy continue to be corporate restructuring,
industry consolidation, technology, globalization, and demographics.
[Graphic]
WHAT STOCKS HAVE YOU BEEN BUYING AND SELLING?
The new names added during the third quarter are stocks of leading companies
that had underperformed over the previous six to twelve months. Good
examples include: BAUSCH & LOMB, the leading producer of eye-care products;
BROWNING-FERRIS, a major provider of environmental services; DOVER CORP., a
diversified manufacturing company with an excellent long-term record; MARSH
& MCLENNAN, the largest insurance brokerage firm; STANLEY WORKS, a major
producer of tools and hardware products.
Portfolio sales reflect relative overvaluation and/or deteriorating
fundamentals as reflected in our estimate revision work. Examples of
overvaluation include: Eastman Kodak, Interpublic Group, Ivax, Microsoft,
and Westinghouse. Stock sales based on deteriorating fundamentals include:
Applied Materials, Eastman Chemical, Lam Research, Millipore, Philips
Electronics, and Comsat.
[Graphic]
WHAT WERE THE FUND'S TOP 10 HOLDINGS AS OF SEPTEMBER 30, 1996, AND HOW IS
THE FUND DIVERSIFIED BY INDUSTRY?
The top holdings and sector weightings were as follows:
TOP HOLDINGS
<TABLE>
<CAPTION>
NAME % OF NET ASSETS
<S> <C>
Mobil Corp. 2.7%
Unilever, N.V. 2.6%
Kimberly-Clark Corp. 2.1%
Textron, Inc. 2.1%
Rubbermaid, Inc. 2.0%
Federal Nat'l. Mortgage Assoc. 2.0%
Pacific Gas & Electric Co. 2.0%
Marsh & McLennan Cos., Inc. 2.0%
CPC International, Inc. 2.0%
Wal-Mart Stores, Inc. 2.0%
</TABLE>
SECTOR WEIGHTINGS
<TABLE>
<CAPTION>
% OF S&P 500
ASSET CLASS NET ASSETS SECTOR WEIGHTING
<S> <C> <C>
Consumer Non-Durables 13.4% 12.1%
Finance 13.2% 14.1%
Health Care 12.8% 10.7%
Technology 12.2% 13.6%
Utilities 11.3% 11.0%
Energy Minerals 10.1% 8.7%
Producer Manufacturing 5.3% 7.5%
Retail Trade 5.4% 4.9%
Basic Industry 4.2% 6.6%
Services 3.6% 5.4%
Consumer Durables 2.8% 3.9%
Transportation 1.2% 1.5%
Miscellaneous 3.7% 0.0%
</TABLE>
[Graphic]
AS WE APPROACH THE CLOSE OF 1996, WHAT IS YOUR OUTLOOK FOR THE MARKET?
Basically, our outlook is constructive. The stock market tends to be driven
by three factors: earnings, interest rates, and liquidity. We foresee
reasonable earnings growth over the next 6 to 12 months, with interest rates
fairly stable. Liquidity appears ample as investors continue to pour money
into stock funds. The stock market itself is a better forecaster of the
future than most economists, and, currently, the market appears to view the
next 6 to 12 months fairly positively.
TWO WAYS YOU MAY SEEK TO INVEST FOR SUCCESS IN
FEDERATED AMERICAN LEADERS FUND, INC.
(FORMERLY, AMERICAN LEADERS FUND, INC.)
INITIAL INVESTMENT:
IF YOU HAD MADE AN INITIAL INVESTMENT OF $28,000 IN THE CLASS A SHARES OF
FEDERATED AMERICAN LEADERS FUND, INC. ON 2/26/69, REINVESTED DIVIDENDS AND
CAPITAL GAINS, AND DIDN'T REDEEM ANY SHARES, YOUR ACCOUNT WOULD BE WORTH
$423,305 ON 9/30/96. YOU WOULD HAVE EARNED A 10.34%* AVERAGE ANNUAL TOTAL
RETURN FOR THE 27-YEAR INVESTMENT LIFE SPAN.
One key to investing wisely is to reinvest all distributions in fund shares.
This increases the number of shares on which you can earn future dividends,
and you gain the benefit of compounding.
As of 9/30/96, the Class A Shares' average annual one-year, five-year, and
ten-year total returns were 12.61%, 14.22%, and 12.07%, respectively. Class
B Shares' average annual one-year and since inception (7/25/94) total
returns were 12.48% and 18.08%, respectively. Class C Shares' average annual
one-year and since inception (4/21/93) total returns were 17.25% and 14.41%,
respectively. Class F Shares' average annual one-year and since inception
(7/27/93) total returns were 16.93% and 14.27%, respectively.
"Graphic representation "A" omitted. See Appendix."
* Total return represents the change in the value of an investment in Class
A Shares after reinvesting all income and capital gains, and takes into
account the 5.5% sales charge applicable to an initial investment in Class A
Shares.
Data quoted represents past performance and does not guarantee future
results. Investment return and principal value will fluctuate, so an
investor's shares, when redeemed, may be worth more or less than their
original cost.
FEDERATED AMERICAN LEADERS FUND, INC.
(FORMERLY, AMERICAN LEADERS FUND, INC.)
ONE STEP AT A TIME:
$1,000 INVESTED EACH YEAR FOR 27 YEARS (REINVESTING ALL DIVIDENDS AND
CAPITAL GAINS) GREW TO $218,453.
With this approach, the key is consistency.
If you had started investing $1,000 annually in the Class A Shares of
Federated American Leaders Fund, Inc. on 2/26/69, reinvested your dividends
and capital gains, and didn't redeem any shares, you would have invested
only $28,000, but your account would have reached a total value of $218,453*
by 9/30/96. You would have earned an average annual total return of 12.37%.
A practical investment plan helps you pursue long-term performance from
blue-chip stocks. Through systematic investing, you buy shares on a regular
basis and reinvest all earnings. An investment plan works for you when you
invest only $1,000 annually. You can take it one step at a time. Put time,
money, and compounding to work!
"Graphic representation "B" omitted. See Appendix."
* No method of investing can guarantee a profit or protect against loss in
down markets. However, by investing regularly over time and buying shares at
various prices, investors can purchase more shares at lower prices, and all
accumulated shares have the ability to pay income to the investor.
Because such a plan involves continuous investment, regardless of changing
price levels, the investor should consider whether or not to continue
purchases through periods of low price levels.
FEDERATED AMERICAN LEADERS FUND, INC.
(FORMERLY, AMERICAN LEADERS FUND, INC.)
HYPOTHETICAL INVESTOR PROFILE: INVESTING FOR A COLLEGE EDUCATION
David and Joan Rice are a fictional couple who, like many shareholders, are
searching for a way to make their money grow over time.
David and Joan are planning for the college education of their child. On
September 30, 1981, they invested $5,000 in the Class A Shares of Federated
American Leaders Fund, Inc. Since then, David and Joan have made additional
investments of $250 every month.
As this chart shows, over 15 years, the original $5,000 investment along
with their additional monthly $250 investments totaling $50,000 has grown to
$184,039. This represents a 14.50% average annual total return.* For the
Rices, a dedicated program of monthly investment really paid off.
"Graphic representation "C" omitted. See Appendix."
* This hypothetical scenario is provided for illustrative purposes only and
does not represent the results obtained by any particular shareholder. Past
performance does not guarantee future results.
FEDERATED AMERICAN LEADERS FUND, INC.
(FORMERLY, AMERICAN LEADERS FUND, INC.)
PORTFOLIO OF INVESTMENTS
SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS -- 95.5%
BASIC INDUSTRY -- 4.2%
200,000 Betz Laboratories, Inc. $ 10,500,000
185,000 Consolidated Papers, Inc. 9,620,000
300,000 Monsanto Co. 10,950,000
275,000 Morton International, Inc. 10,931,250
34,000 Sigma-Aldrich Corp. 1,938,000
Total 43,939,250
CONSUMER DURABLES -- 2.8%
200,000 Chrysler Corp. 5,725,000
45,300 Mattel, Inc. 1,172,138
865,000 Rubbermaid, Inc. 21,192,500
30,500 Stanley Works 857,813
Total 28,947,451
CONSUMER NON-DURABLES -- 13.4%
246,400 Avon Products, Inc. 12,227,600
272,100 CPC International, Inc. 20,373,487
480,000 Heinz (H.J.) Co. 16,200,000
625,000 IBP, Inc. 14,531,250
248,500 Kimberly-Clark Corp. 21,899,062
197,000 Philip Morris Cos., Inc. 17,680,750
225,000 Tambrands, Inc. 9,478,125
169,300 Unilever N.V., ADR 26,685,913
Total 139,076,187
ENERGY MINERALS -- 10.1%
166,100 Chevron Corp. 10,402,012
120,000 Exxon Corp. 9,990,000
240,000 Mobil Corp. 27,780,000
</TABLE>
FEDERATED AMERICAN LEADERS FUND, INC.
(FORMERLY, AMERICAN LEADERS FUND, INC.)
<TABLE>
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS -- CONTINUED
ENERGY MINERALS -- CONTINUED
89,000 Royal Dutch Petroleum Co., ADR $ 13,895,125
110,000 Texaco, Inc. 10,120,000
558,700 USX Corp. 12,081,888
377,000 Union Pacific Resources Group, Inc. 10,556,000
284,500 Unocal Corp. 10,242,000
Total 105,067,025
FINANCE -- 13.2%
290,500 Aflac, Inc. 10,312,750
211,500 Allstate Corp. 10,416,375
126,200 Chase Manhattan Corp. 10,111,775
112,500 CIGNA Corp. 13,485,937
120,000 Citicorp 10,875,000
200,000 Dean Witter, Discover & Co. 11,000,000
106,700 Federal Home Loan Mortgage Corp. 10,443,262
593,200 Federal National Mortgage Association 20,687,850
211,000 Marsh & McLennan Cos., Inc. 20,493,375
248,500 National City Corp. 10,468,063
166,800 Travelers Group, Inc. 8,194,050
Total 136,488,437
HEALTH CARE -- 12.8%
354,000 Abbott Laboratories 17,434,500
225,000 American Home Products Corp. 14,343,750
270,000 Bausch & Lomb, Inc. 9,922,500
320,000 Becton, Dickinson & Co. 14,160,000
620,000 (a)Biomet, Inc. 10,152,500
186,500 Bristol-Myers Squibb Co. 17,973,937
274,000 Columbia/HCA Healthcare Corp. 15,583,750
</TABLE>
FEDERATED AMERICAN LEADERS FUND, INC.
(FORMERLY, AMERICAN LEADERS FUND, INC.)
<TABLE>
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS -- CONTINUED
HEALTH CARE -- CONTINUED
720,400 (a) Healthsource, Inc. $ 10,625,900
149,000 Merck & Co., Inc. 10,485,875
275,000 United Healthcare Corp. 11,446,875
Total 132,129,587
PRODUCER MANUFACTURING -- 5.3%
12,200 Dover Corp. 582,550
142,500 General Electric Co. 12,967,500
223,800 Ingersoll-Rand Co. 10,630,500
120,000 Loews Corp. 9,285,000
250,000 Textron, Inc. 21,250,000
Total 54,715,550
RETAIL TRADE -- 5.4%
312,000 Dayton-Hudson Corp. 10,296,000
453,000 Dillard Department Stores, Inc., Class A 14,609,250
250,000 Sears, Roebuck & Co. 11,187,500
765,000 Wal-Mart Stores, Inc. 20,176,875
Total 56,269,625
SERVICES -- 3.6%
800,000 Browning-Ferris Industries, Inc. 20,000,000
100,000 Disney (Walt) Co. 6,337,500
150,000 Gannett Co., Inc. 10,556,250
Total 36,893,750
TECHNOLOGY -- 12.2%
92,800 Automatic Data Processing, Inc. 4,048,400
201,700 Computer Associates International, Inc. 12,051,575
296,000 (a)Electronic Data Systems Corp. 18,167,000
226,600 Hewlett-Packard Co. 11,046,750
</TABLE>
FEDERATED AMERICAN LEADERS FUND, INC.
(FORMERLY, AMERICAN LEADERS FUND, INC.)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
COMMON STOCKS -- CONTINUED
TECHNOLOGY -- CONTINUED
200,200 Intel Corp. $ 19,106,587
71,200 International Business Machines Corp. 8,864,400
112,600 Lockheed Martin Corp. 10,148,075
132,200 Lucent Technologies, Inc. 6,064,675
244,300 (a)Oracle Corp. 10,398,019
185,500 Rockwell International Corp. 10,457,563
334,400 (a)Solectron Corp. 16,385,600
Total 126,738,644
TRANSPORTATION -- 1.2%
176,600 Union Pacific Corp. 12,935,950
UTILITIES -- 11.3%
300,000 AT&T Corp. 15,675,000
243,700 Columbia Gas System, Inc. 13,647,200
425,000 Enron Corp. 17,318,750
233,000 FPL Group, Inc. 10,077,250
266,000 GTE Corp. 10,241,000
737,500 MCI Communications Corp. 18,898,438
948,000 Pacific Gas & Electric Co. 20,619,000
464,000 Southern Co. 10,498,000
Total 116,974,638
TOTAL COMMON STOCKS (IDENTIFIED COST $808,717,763) 990,176,094
(B)REPURCHASE AGREEMENT -- 3.7%
$ 38,210,000 BT Securities Corporation, 5.72%, dated 9/30/1996, due 10/1/1996
(AT AMORTIZED COST) 38,210,000
TOTAL INVESTMENTS (IDENTIFIED COST $846,927,763)(C) $1,028,386,094
</TABLE>
(a) Non-income producing security.
(b) 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.
(c) The cost of investments for federal tax purposes amounts to
$846,927,763. The net unrealized appreciation of investments on a federal
tax basis amounts to $181,458,331 which is comprised of $188,592,971
appreciation and $7,134,640 depreciation at September 30, 1996.
Note: The categories of investments are shown as a percentage of net assets
($1,036,551,566) at September 30, 1996.
The following acronym is used throughout this portfolio:
ADR -- American Depositary Receipt
(See Notes which are an integral part of the Financial Statements)
FEDERATED AMERICAN LEADERS FUND, INC. --
(FORMERLY, AMERICAN LEADERS FUND, INC.)
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<S> <C> <C>
ASSETS:
Total investments in securities, at value (identified and tax cost $846,927,763) $ 1,028,386,094
Cash 14,967
Income receivable 2,439,792
Receivable for investments sold 6,933,929
Receivable for shares sold 4,297,853
Total assets 1,042,072,635
LIABILITIES:
Payable for investments purchased $ 4,652,792
Payable for shares redeemed 480,725
Accrued expenses 387,552
Total liabilities 5,521,069
Net Assets for 50,609,559 shares outstanding $ 1,036,551,566
NET ASSETS CONSIST OF:
Paid in capital $ 810,558,567
Net unrealized appreciation of investments 181,458,331
Accumulated net realized gain on investments 43,211,183
Undistributed net investment income 1,323,485
Total Net Assets $ 1,036,551,566
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PROCEEDS PER SHARE:
CLASS A SHARES:
Net Asset Value Per Share ($510,464,473 / 24,921,010 shares outstanding) $20.48
Offering Price Per Share (100/94.50 of $20.48)* $21.67
Redemption Proceeds Per Share** $20.48
CLASS B SHARES:
Net Asset Value Per Share ($396,077,509 / 19,340,768 shares outstanding) $20.48
Offering Price Per Share* $20.48
Redemption Proceeds Per Share (94.50/100 of $20.48)** $19.35
CLASS C SHARES:
Net Asset Value Per Share ($57,924,578 / 2,827,793 shares outstanding) $20.48
Offering Price Per Share* $20.48
Redemption Proceeds Per Share (99.00/100 of $20.48)** $20.28
CLASS F SHARES:
Net Asset Value Per Share ($72,085,006 / 3,519,988 shares outstanding) $20.48
Offering Price Per Share (100/99.00 of $20.48)*** $20.69
Redemption Proceeds Per Share (99.00/100 of $20.48)** $20.28
</TABLE>
* See "How to Purchase Shares" in the Prospectus.
** See "Contingent Deferred Sales Charge" in the Prospectus.
*** See "What Shares Cost" in the Prospectus.
(See Notes which are an integral part of the Financial Statements)
FEDERATED AMERICAN LEADERS FUND, INC. --
(FORMERLY, AMERICAN LEADERS FUND, INC.)
STATEMENT OF OPERATIONS
SIX MONTHS ENDED SEPTEMBER 30, 1996 (UNAUDITED)
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 8,184,750
Interest 1,584,439
Total income 9,769,189
EXPENSES:
Investment advisory fee $ 2,886,909
Administrative personnel and services fee 349,048
Custodian fees 56,173
Transfer and dividend disbursing agent fees and expenses 591,567
Directors'/Trustees' fees 6,793
Auditing fees 10,019
Legal fees 2,391
Portfolio accounting fees 87,856
Distribution services fee -- Class B Shares 1,235,559
Distribution services fee -- Class C Shares 191,597
Shareholder services fee -- Class A Shares 598,845
Shareholder services fee -- Class B Shares 411,853
Shareholder services fee -- Class C Shares 63,866
Shareholder services fee -- Class F Shares 79,697
Share registration costs 105,542
Printing and postage 79,398
Insurance premiums 1,669
Taxes 22,016
Miscellaneous 1,365
Total expenses 6,782,163
Waivers --
Waiver of shareholder services fee -- Class A Shares $ (87,657)
Waiver of shareholder services fee -- Class F Shares (5,231)
Total waivers (92,888)
Net expenses 6,689,275
Net investment income 3,079,914
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments 43,236,764
Net change in unrealized appreciation of investments 6,065,198
Net realized and unrealized gain on investments 49,301,962
Change in net assets resulting from operations $ 52,381,876
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FEDERATED AMERICAN LEADERS FUND, INC. --
(FORMERLY, AMERICAN LEADERS FUND, INC.)
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(UNAUDITED) YEAR ENDED
SEPTEMBER 30, MARCH 31,
1996 1996
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS --
Net investment income $ 3,079,914 $ 4,745,714
Net realized gain on investments ($43,236,764 and $29,467,435 net
gains, respectively, as computed for federal tax purposes) 43,236,764 29,467,435
Net change in unrealized appreciation 6,065,198 112,788,561
Change in net assets resulting from operations 52,381,876 147,001,710
NET EQUALIZATION CREDITS (DEBITS) -- 402,371 797,978
DISTRIBUTIONS TO SHAREHOLDERS --
Distributions from net investment income:
Class A Shares (2,249,995) (3,449,876)
Class B Shares (358,797) (300,834)
Class C Shares (50,922) (50,556)
Class F Shares (306,441) (370,222)
Distributions from net realized gains
Class A Shares (7,749,906) (12,685,641)
Class B Shares (5,247,621) (4,534,699)
Class C Shares (818,012) (1,056,763)
Class F Shares (1,028,228) (1,393,014)
Change in net assets resulting from distributions to shareholders (17,809,922) (23,841,605)
SHARE TRANSACTIONS (EXCLUSIVE OF AMOUNTS ALLOCATED TO NET
INVESTMENT INCOME) --
Proceeds from sale of shares 230,078,978 396,144,022
Net asset value of shares issued to shareholders in payment of
distributions declared 16,147,876 19,738,904
Cost of shares redeemed (61,303,373) (86,878,884)
Change in net assets resulting from share transactions 184,923,481 329,004,042
Change in net assets 219,897,806 452,962,125
NET ASSETS:
Beginning of period 816,653,760 363,691,635
End of period (including undistributed net investment income of
$1,323,485 and $807,355, respectively) $1,036,551,566 $ 816,653,760
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FEDERATED AMERICAN LEADERS FUND, INC. --
(FORMERLY, AMERICAN LEADERS FUND, INC.)
FINANCIAL HIGHLIGHTS -- CLASS A SHARES
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(UNAUDITED)
SEPTEMBER 30, YEAR ENDED MARCH 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 $19.78 $15.66 $14.58 $14.90 $13.88 $13.18 $12.21 $13.04 $12.55 $14.21
INCOME FROM
INVESTMENT
OPERATIONS
Net investment
income 0.10 0.22 0.25 0.23 0.29 0.29 0.37 0.55 0.50 0.45
Net realized and
unrealized gain
(loss) on
investments 1.01 4.70 1.42 0.18 2.05 1.34 1.28 0.36 1.08 (1.21)
Total from
investment
operations 1.11 4.92 1.67 0.41 2.34 1.63 1.65 0.91 1.58 (0.76)
LESS DISTRIBUTIONS
Distributions
from net
investment
income (0.09) (0.17) (0.24) (0.24) (0.28) (0.28) (0.38) (0.56) (0.50) (0.43)
Distributions
from net
realized
gain on
investments (0.32) (0.63) (0.35) (0.49) (1.04) (0.65) (0.30) (1.18) (0.59) (0.47)
Total
distributions (0.41) (0.80) (0.59) (0.73) (1.32) (0.93) (0.68) (1.74) (1.09) (0.90)
NET ASSET VALUE,
END OF PERIOD $20.48 $19.78 $15.66 $14.58 $14.90 $13.88 $13.18 $12.21 $13.04 $12.55
TOTAL RETURN(A) 5.70% 32.00% 11.87% 2.76% 18.31% 12.91% 14.17% 7.13% 13.23% (5.32%)
RATIOS TO AVERAGE
NET ASSETS
Expenses 1.13%* 1.16% 1.23% 1.18% 1.13% 1.02% 1.02% 1.01% 1.01% 1.00%
Net investment
income 0.99%* 1.07% 1.71% 1.48% 2.07% 2.12% 3.06% 4.23% 3.85% 3.35%
Expense waiver/
reimbursement(b) 0.04%* 0.07% -- -- 0.06% 0.16% 0.30% 0.35% 0.12% 0.11%
SUPPLEMENTAL DATA
Net assets, end
of period (000
omitted) $510,464 $455,867 $268,470 $226,857 $202,866 $171,210 $149,360 $147,235 $149,049 $158,818
Average
commission
rate paid $0.0511 -- -- -- -- -- -- -- -- --
Portfolio
turnover 51% 46% 34% 27% 39% 67% 57% 50% 27% 65%
</TABLE>
* Computed on an annualized basis.
(a) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(b) 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 AMERICAN LEADERS FUND, INC. --
(FORMERLY, AMERICAN LEADERS FUND, INC.)
FINANCIAL HIGHLIGHTS -- CLASS B SHARES
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(UNAUDITED) YEAR ENDED
SEPTEMBER 30, MARCH 31,
1996 1996 1995(A)
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $19.79 $15.67 $14.97
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.02 0.06 0.13
Net realized and unrealized gain on investments 1.01 4.74 0.92
Total from investment operations 1.03 4.80 1.05
LESS DISTRIBUTIONS
Distributions from net investment income (0.02) (0.05) (0.12)
Distributions from net realized gain on investments (0.32) (0.63) (0.23)
Total distributions (0.34) (0.68) (0.35)
NET ASSET VALUE, END OF PERIOD $20.48 $19.79 $15.67
TOTAL RETURN(B) 5.26% 31.14% 7.28%
RATIOS TO AVERAGE NET ASSETS
Expenses 1.92%* 1.93% 1.95%*
Net investment income 0.21%* 0.32% 1.09%*
Expense waiver/reimbursement(c) -- -- 0.12%*
SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $396,078 $261,024 $46,671
Average commission rate paid $0.0511 -- --
Portfolio turnover 51% 46% 34%
</TABLE>
* Computed on an annualized basis.
(a) Reflects operations for the period from July 25, 1994 (date of initial
public investment) to March 31, 1995.
(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 AMERICAN LEADERS FUND, INC. --
(FORMERLY, AMERICAN LEADERS FUND, INC.)
FINANCIAL HIGHLIGHTS -- CLASS C SHARES
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(UNAUDITED) YEAR ENDED
SEPTEMBER 30, MARCH 31,
1996 1996 1995 1994(A)
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $19.80 $15.66 $14.55 $14.70
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.02 0.05 0.14 0.12
Net realized and unrealized gain on investments 1.00 4.75 1.45 0.35
Total from investment operations 1.02 4.80 1.59 0.47
LESS DISTRIBUTIONS
Distributions from net investment income (0.02) (0.03) (0.13) (0.13)
Distributions from net realized gain on investments (0.32) (0.63) (0.35) (0.49)
Total distributions (0.34) (0.66) (0.48) (0.62)
NET ASSET VALUE, END OF PERIOD $20.48 $19.80 $15.66 $14.55
TOTAL RETURN(B) 5.20% 31.14% 11.23% 3.16%
RATIOS TO AVERAGE NET ASSETS
Expenses 1.92%* 1.96% 2.04% 2.11%*
Net investment income 0.21%* 0.27% 0.91% 0.71%*
Expense waiver/reimbursement(c) -- 0.02% -- --
SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $57,925 $44,434 $20,055 $11,895
Average commission rate paid $0.0511 -- -- --
Portfolio turnover 51% 46% 34% 27%
</TABLE>
* Computed on an annualized basis.
(a) Reflects operations for the period from April 21, 1993 (date of initial
public investment) to March 31, 1994.
(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 AMERICAN LEADERS FUND, INC. --
(FORMERLY, AMERICAN LEADERS FUND, INC.)
FINANCIAL HIGHLIGHTS -- CLASS F SHARES
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(UNAUDITED) YEAR ENDED
SEPTEMBER 30, MARCH 31,
1996 1996 1995 1994(A)
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $19.78 $15.66 $14.58 $14.95
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.10 0.19 0.25 0.16
Net realized and unrealized gain on investments 1.01 4.72 1.42 (0.20)
Total from investment operations 1.11 4.91 1.67 (0.04)
LESS DISTRIBUTIONS
Distributions from net investment income (0.09) (0.16) (0.24) (0.16)
Distributions from net realized gain on investments (0.32) (0.63) (0.35) (0.17)
Total distributions (0.41) (0.79) (0.59) (0.33)
NET ASSET VALUE, END OF PERIOD $20.48 $19.78 $15.66 $14.58
TOTAL RETURN(B) 5.69% 31.95% 11.80% (0.30%)
RATIOS TO AVERAGE NET ASSETS
Expenses 1.15%* 1.21% 1.27% 1.35%*
Net investment income 0.95%* 1.02% 1.69% 1.51%*
Expense waiver/reimbursement(c) 0.01%* 0.02% -- --
SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $72,085 $55,329 $28,495 $15,282
Average commission rate paid $0.0511 -- -- --
Portfolio turnover 51% 46% 34% 27%
</TABLE>
* Computed on an annualized basis.
(a) Reflects operations for the period from July 27, 1993 (date of initial
public investment) to March 31, 1994.
(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 AMERICAN LEADERS FUND, INC. --
(FORMERLY, AMERICAN LEADERS FUND, INC.)
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1996 (UNAUDITED)
1. ORGANIZATION
Federated American Leaders Fund, Inc. (the "Fund") is registered under the
Investment Company Act of 1940, as amended (the "Act"), as a diversified,
open-end management investment company. The Fund offers four classes of
shares: Class A Shares, Class B Shares, Class C Shares, and Class F Shares.
The investment objective of the Fund is to seek growth of capital and of
income by concentrating the area of investment decision in the securities of
high quality companies.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
INVESTMENT VALUATIONS -- Listed equity securities are valued at the last
sale price reported on a national securities exchange. 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 Fund 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 Fund 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 Fund will only enter into repurchase agreements with banks and other
recognized financial institutions, such as broker/dealers, which are deemed
by the Fund's adviser to be creditworthy pursuant to the guidelines and/or
standards reviewed or established by the Board of Directors (the
"Directors"). Risks may arise from the potential inability of counterparties
to honor the terms of the repurchase agreement. Accordingly, the Fund 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").
Dividend income and distributions to shareholders are recorded on the
ex-dividend date.
FEDERAL TAXES -- It is the Fund'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.
EQUALIZATION -- The Fund follows the accounting practice known as
equalization, in which a portion of the proceeds from sales and costs of
redemptions of fund shares equivalent, on a per share basis, to the amount
of undistributed net investment income on the date of the transaction, is
credited or charged to undistributed net investment income. As a result,
undistributed net investment income per share is unaffected by sales or
redemptions of fund shares.
WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS -- The Fund may engage in
when-issued or delayed delivery transactions. The Fund 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. CAPITAL STOCK
At September 30, 1996, par value shares ($ 0.20 per share) authorized were
as follows:
<TABLE>
<CAPTION>
NUMBER OF PAR
VALUE CAPITAL
CLASS NAME STOCK AUTHORIZED
<S> <C>
Class A Shares 30,000,000
Class B Shares 20,000,000
Class C Shares 25,000,000
Class F Shares 25,000,000
</TABLE>
Transactions in capital stock were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 1996 MARCH 31, 1996
CLASS A SHARES SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
Shares sold 3,353,366 $ 65,927,503 8,582,300 $ 153,778,904
Shares issued to shareholders in
payment of distributions declared 442,756 8,816,773 745,456 13,448,166
Shares redeemed (1,922,091) (37,509,349) (3,425,166) (61,354,945)
Net change resulting from Class A
Share transactions 1,874,031 $ 37,234,927 5,902,590 $ 105,872,125
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 1996 MARCH 31, 1996
CLASS B SHARES SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
Shares sold 6,799,155 $ 134,483,713 10,810,661 $ 198,757,682
Shares issued to shareholders in
payment of distributions declared 263,802 5,280,634 236,916 4,339,389
Shares redeemed (908,727) (17,970,892) (839,484) (15,534,728)
Net change resulting from Class B
Share transactions 6,154,230 $ 121,793,455 10,208,093 $ 187,562,343
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 1996 MARCH 31, 1996
CLASS C SHARES SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
Shares sold 691,126 $ 13,651,098 1,191,221 $ 21,813,090
Shares issued to shareholders in
payment of distributions declared 40,422 808,925 36,162 655,726
Shares redeemed (148,369) (2,928,527) (263,447) (4,771,458)
Net change resulting from Class C
Share transactions 583,179 $ 11,531,496 963,936 $ 17,697,358
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 1996 MARCH 31, 1996
CLASS F SHARES SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
Shares sold 808,453 $ 16,016,664 1,201,769 $ 21,794,346
Shares issued to shareholders in
payment of distributions declared 62,070 1,241,544 71,470 1,295,623
Shares redeemed (147,747) (2,894,605) (295,842) (5,217,753)
Net change resulting from Class F
Share transactions 722,776 $ 14,363,603 977,397 $ 17,872,216
Net change resulting from share transactions 9,334,216 $ 184,923,481 18,052,016 $ 329,004,042
</TABLE>
4. INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE -- Federated Advisers, the Fund's investment
adviser, (the "Adviser"), receives for its services an annual investment
advisory fee equal to (a) a maximum of 0.55% of the average daily net assets
of the Fund, and (b) 4.50% of the gross income of the Fund, excluding
capital gains or losses.
ADMINISTRATIVE FEE -- Federated Services Company ("FServ"), under the
Administrative Services Agreement, provides the Fund 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 Fund has adopted a Distribution Plan (the
"Plan") pursuant to Rule 12b-1 under the Act. Under the terms of the Plan,
the Fund will compensate Federated Securities Corp. ("FSC"), the principal
distributor, from the net assets of the Fund to finance activities intended
to result in the sale of the Fund's Class B and Class C shares. The Plan
provides that the Fund may incur distribution expenses according to the
following schedule annually, to compensate FSC.
<TABLE>
<CAPTION>
PERCENTAGE OF
AVERAGE DAILY
SHARE CLASS NAME NET ASSETS
<S> <C>
Class B 0.75%
Class C 0.75%
</TABLE>
SHAREHOLDER SERVICES FEE -- Under the terms of a Shareholder Services
Agreement with Federated Shareholder Services ("FSS"), the Fund will pay FSS
up to 0.25% of average daily net assets of each class of shares of the Fund
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 a portion of its fee. FSS can modify or terminate this
voluntary waiver at any time at its sole discretion.
TRANSFER AGENT AND DIVIDEND DISBURSING AGENT FEES -- FServ, through its
subsidiary, Federated Shareholder Services Company ("FSSC") serves as
transfer and dividend disbursing agent for the Fund. 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 Fund's accounting records
for which it receives a fee. The fee is based on the level of the Fund's
average daily net assets for the period, plus out-of-pocket expenses.
GENERAL -- Certain of the Officers and Directors of the Corporation 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 September 30, 1996, were as follows:
<TABLE>
<S> <C>
PURCHASES $ 697,334,706
SALES $ 436,472,477
</TABLE>
DIRECTORS
John F. Donahue
Thomas G. Bigley
John T. Conroy, Jr.
William J. Copeland
J. Christopher Donahue
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
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
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 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.
[Graphic]
Federated Investors
Federated Investors Tower
Pittsburgh, PA 15222-3779
Federated Securities Corp. is the distributor of the fund
and is a subsidiary of Federated Investors.
027128107
027128206
027128305
027128404
8110101 (11/96)
A. The graphic presentation here displayed consists of a boxed legend in
the upper left quadrant indicating the components of the corresponding
mountain chart. The color-coded mountain chart is a visual representation of
the narrative text above it, which shows that an initial investment in the
Class A Shares of Federated American Leaders Fund, Inc. on February 26, 1969,
would have grown to $423,305 on September 30, 1996. The `y'' axis reflects
the cost of the investment. The ``x'' axis reflects computation periods from
February 26, 1969 to September 30, 1996. The chart further indicates the
ending market value attributable to principal, as well as the ending
market value attributable to capital gains and reinvested dividends.
B. The graphic presentation here displayed consists of a boxed legend in
the upper left quadrant indicating the components of the corresponding mountain
chart. The color-coded mountain chart is a visual representation of the
narrative text above it, which shows that yearly investments of $1,000 in the
Class A Shares of Federated American Leaders Fund, Inc. on February 26, 1969,
would have grown to $218,453 on September 30, 1996. The `y'' axis reflects
the cost of the investment. The ``x'' axis reflects computation periods
from February 26, 1969 to September 30, 1996. The chart further indicates
the ending market value attributable to principal, as well as the ending
market value attributable to capital gains and reinvested dividends.
C. The graphic presentation here displayed consists of a boxed legend in
the upper left quadrant indicating the components of the corresponding mountain
chart. The color-coded mountain chart is a visual representation of the
narrative text above it, which shows that an investment of $5,000 in the
Class A shares of Federated American Leaders Fund, Inc. on September 30, 1981,
would have grown to $184,039. The `y''axis reflects the cost of the
investment. The `x'' axis reflects computation periods from September 30, 1981
to September 30, 1996. The chart further indicates the ending market value
attributable to principal, as well as the ending market value attributable
to capital gains and reinvested dividends.
