Federated
Short-
Intermediate
Government
Trust
SEMI-ANNUAL REPORT
TO SHAREHOLDERS
August 31, 1993
FEDERATED SECURITIES CORP.
Distributor
A subsidiary of FEDERATED INVESTORS
FEDERATED INVESTORS TOWER
PITTSBURGH, PA 15222-3779
313901100
313901209
8092707 (10/94)
PRESIDENT'S MESSAGE
- --------------------------------------------------------------------------------
Dear Investor:
I am pleased to present the Semi-Annual Report to Shareholders for Federated
Short-Intermediate Government Trust (the "Trust"). The report covers the
six-month period ended August 31, 1994, and includes the Trust's Investment
Review, Portfolio of Investments and Financial Statements. In addition,
Financial Highlights tables have been included for both classes of shares of the
Trust, Institutional Shares and Institutional Service Shares.
The Trust continues its pursuit of attractive yields with limited principal risk
through a diversified portfolio consisting of U.S. government securities.
During the period, the Institutional Shares paid dividends of $0.23 per share,
and Institutional Service Shares paid dividends of $0.21 per share. The Trust's
total net assets stood at $747 million at August 31, 1994. On that same day, the
net asset value of both classes of shares of the Trust was $10.31.
Thank you for your continued confidence in Federated Short-Intermediate
Government Trust. As always, we welcome your questions and comments.
Sincerely,
Glen R. Johnson
President
October 14, 1994
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
Federated Short-Intermediate Government Trust's portfolio, which is rated AAAf
by Standard & Poor's Ratings Group,* represents a fully invested participation
in obligations of the U.S. Treasury and certain government agencies that have a
maximum maturity of 3 1/2 years and an average maturity of 1 1/2 to 2 years.
Since the Trust's February 28, 1994, fiscal year end, total net assets decreased
to approximately $747 million, and the Trust remained fully invested in U.S.
Treasury securities.
During the semi-annual reporting period, interest rates increased all along the
yield curve. Although the Federal Reserve Board's (the "Fed") monetary policy
had been on hold for well over a year, the Fed increased the Federal Funds ("Fed
Funds") target rate from 3% to 3 1/4% in early February in reaction to a
stronger U.S. economy and as a preemptive strike against any threat of
inflation. Interest rates continued to rise after the Fed's move due to market
expectations that further Fed tightenings would follow. Further tightenings did
follow in March, April, May and August, resulting in a Fed Funds rate of 4 3/4%,
as the Fed moved toward a more neutral monetary policy stance from the
accommodative posture in 1993. In response to continued tightening of monetary
policy, the short end of the curve experienced the largest increase in yields.
The two year Treasury note yield increased sharply from 4.7% at the end of
February 1994, to 6.2% at the end of August 1994. Over the same time period, the
Trust's average maturity remained at the short end of its 1 1/2 to 2 year range,
and the Trust currently has a weighted average maturity of 1.6 years and
duration of 1.5 years. Although economic growth is expected to moderate going
forward, the Trust will continue to target a conservative average maturity in
the near term due to the possibility of further Fed tightening.
* Ratings are subject to change.
FEDERATED SHORT-INTERMEDIATE GOVERNMENT TRUST
PORTFOLIO OF INVESTMENTS
AUGUST 31, 1994
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------ ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
SHORT-INTERMEDIATE TERM OBLIGATIONS--98.1%
- ----------------------------------------------------------------------------------
U.S. TREASURY NOTES--98.1%
----------------------------------------------------------------
$ 85,000,000 3.875%, 10/31/95 $ 83,308,500
----------------------------------------------------------------
100,000,000 4.25%, 11/30/95 98,257,000
----------------------------------------------------------------
50,000,000 4.00%, 1/31/96 48,776,500
----------------------------------------------------------------
110,000,000 4.625%, 2/15/96 108,121,200
----------------------------------------------------------------
35,000,000 4.625%, 2/29/96 34,397,650
----------------------------------------------------------------
50,000,000 7.75%, 3/31/96 51,367,188
----------------------------------------------------------------
150,000,000 5.125%, 3/31/96 148,290,000
----------------------------------------------------------------
15,000,000 7.625%, 4/30/96 15,393,900
----------------------------------------------------------------
35,000,000 5.50%, 4/30/96 34,748,350
----------------------------------------------------------------
25,000,000 7.00%, 9/30/96 25,453,750
----------------------------------------------------------------
25,000,000 4.375%, 11/15/96 24,069,000
----------------------------------------------------------------
40,000,000 6.50%, 5/15/97 40,129,600
----------------------------------------------------------------
20,000,000 6.75%, 5/31/97 20,187,500
---------------------------------------------------------------- ------------
TOTAL SHORT-INTERMEDIATE TERM OBLIGATIONS
(IDENTIFIED COST, $735,457,034) 732,500,138
---------------------------------------------------------------- ------------
</TABLE>
FEDERATED SHORT-INTERMEDIATE GOVERNMENT TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------ ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*REPURCHASE AGREEMENT--0.9%
- ----------------------------------------------------------------------------------
$ 6,375,000 J.P. Morgan Securities, Inc., 4.85%, dated 8/31/94, due 9/1/94,
(at amortized cost) $ 6,375,000
---------------------------------------------------------------- ------------
TOTAL INVESTMENTS (IDENTIFIED COST, $741,832,034) $738,875,138+
---------------------------------------------------------------- ------------
</TABLE>
* The repurchase agreement is fully collateralized by U.S. Treasury obligations
based on market prices at the date of the portfolio. The investment in the
repurchase agreement is through participation in a joint account with other
Federated funds.
+ The cost of investments for federal tax purposes amounts to $741,832,034 at
August 31, 1994. The net unrealized depreciation of investments on a federal
tax basis amounts to $2,956,896, which is comprised of $241,859 appreciation
and $3,198,755 depreciation at August 31, 1994.
Note: The categories of investments are shown as a percentage of net assets
($747,001,814) at August 31, 1994.
(See Notes which are an integral part of the Financial Statements)
FEDERATED SHORT-INTERMEDIATE GOVERNMENT TRUST
STATEMENT OF ASSETS AND LIABILITIES
AUGUST 31, 1994
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- -------------------------------------------------------------------------------
Investments, at value (identified and tax cost $741,832,034) $ 738,875,138
- -------------------------------------------------------------------------------
Receivable for investments sold 24,598,379
- -------------------------------------------------------------------------------
Interest receivable 10,660,582
- -------------------------------------------------------------------------------
Receivable for Trust shares sold 519,889
- -------------------------------------------------------------------------------
Prepaid expenses 43,231
- ------------------------------------------------------------------------------- -------------
Total assets 774,697,219
- -------------------------------------------------------------------------------
LIABILITIES:
- -----------------------------------------------------------------
Payable for investments purchased $24,621,773
- -----------------------------------------------------------------
Dividends payable 1,755,844
- -----------------------------------------------------------------
Payable for Trust shares redeemed 971,718
- -----------------------------------------------------------------
Payable to bank 346,070
- ----------------------------------------------------------------- -----------
Total liabilities 27,695,405
- ------------------------------------------------------------------------------- -------------
NET ASSETS for 72,425,244 shares of beneficial interest outstanding $ 747,001,814
- ------------------------------------------------------------------------------- -------------
NET ASSETS CONSIST OF:
- -------------------------------------------------------------------------------
Paid-in capital $ 867,515,320
- -------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments (2,956,896)
- -------------------------------------------------------------------------------
Accumulated net realized gain (loss) on investments (117,556,610)
- ------------------------------------------------------------------------------- -------------
Total Net Assets $ 747,001,814
- ------------------------------------------------------------------------------- -------------
NET ASSET VALUE, Offering Price, and Redemption Proceeds Per Share:
Institutional Shares ($715,838,817 / 69,403,836 shares of beneficial interest
outstanding) $10.31
- ------------------------------------------------------------------------------- -------------
Institutional Service Shares ($31,162,997 / 3,021,408 shares of beneficial
interest outstanding) $10.31
- ------------------------------------------------------------------------------- -------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FEDERATED SHORT-INTERMEDIATE GOVERNMENT TRUST
STATEMENT OF OPERATIONS
SIX MONTHS ENDED AUGUST 31, 1994
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME:
- ----------------------------------------------------------------------------------
Interest income $ 19,830,921
- ----------------------------------------------------------------------------------
EXPENSES--
- --------------------------------------------------------------------
Investment advisory fee $1,630,757
- --------------------------------------------------------------------
Trustees' fees 2,435
- --------------------------------------------------------------------
Administrative personnel and services 384,194
- --------------------------------------------------------------------
Custodian and portfolio accounting fees 188,649
- --------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 49,034
- --------------------------------------------------------------------
Shareholder services fee--Institutional Service Shares 43,547
- --------------------------------------------------------------------
Distribution services fees 45,362
- --------------------------------------------------------------------
Trust share registration costs 20,347
- --------------------------------------------------------------------
Auditing fees 12,713
- --------------------------------------------------------------------
Legal fees 3,942
- --------------------------------------------------------------------
Printing and postage 9,351
- --------------------------------------------------------------------
Taxes 36
- --------------------------------------------------------------------
Miscellaneous 124
- -------------------------------------------------------------------- ----------
Total expenses 2,390,491
- --------------------------------------------------------------------
Deduct--
- ---------------------------------------------------------
Waiver of investment advisory fee $100,071
- ---------------------------------------------------------
Waiver of distribution services fee 43,547 143,618
- --------------------------------------------------------- -------- ----------
Net expenses 2,246,873
- ---------------------------------------------------------------------------------- ------------
Net investment income 17,584,048
- ---------------------------------------------------------------------------------- ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
- ----------------------------------------------------------------------------------
Net realized gain (loss) on investments (identified cost basis) (12,568,331)
- ----------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on investments 410,723
- ---------------------------------------------------------------------------------- ------------
Net realized and unrealized gain (loss) on investments (12,157,608)
- ---------------------------------------------------------------------------------- ------------
Change in net assets resulting from operations $ 5,426,440
- ---------------------------------------------------------------------------------- ------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FEDERATED SHORT-INTERMEDIATE GOVERNMENT TRUST
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED FEBRUARY 28,
-------------------------------
1995* 1994
------------- --------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- --------------------------------------------------------------
OPERATIONS--
- --------------------------------------------------------------
Net investment income $ 17,584,048 $ 34,840,056
- --------------------------------------------------------------
Net realized gain (loss) on investment transactions
($12,568,331 net loss and $6,224,057 net gain, respectively,
as computed for federal tax purposes) (12,568,331) 6,224,057
- --------------------------------------------------------------
Change in unrealized appreciation (depreciation) of
investments 410,723 (11,798,662)
- -------------------------------------------------------------- ------------- --------------
Change in net assets resulting from operations 5,426,440 29,265,451
- -------------------------------------------------------------- ------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS--
- --------------------------------------------------------------
Dividends to shareholders from net investment income:
Institutional Shares (16,846,112) (33,561,842)
- --------------------------------------------------------------
Institutional Service Shares (737,936) (1,278,214)
- -------------------------------------------------------------- ------------- --------------
Change in net assets from distributions to shareholders (17,584,048) (34,840,056)
- -------------------------------------------------------------- ------------- --------------
TRUST SHARE (PRINCIPAL) TRANSACTIONS--
- --------------------------------------------------------------
Proceeds from sale of shares 123,650,007 532,829,701
- --------------------------------------------------------------
Net asset value of shares issued to shareholders in
payment of dividends declared 7,599,985 14,063,973
- --------------------------------------------------------------
Cost of shares redeemed (270,551,954) (749,953,492)
- -------------------------------------------------------------- ------------- --------------
Change in net assets from Trust share transactions (139,301,962) (203,059,818)
- -------------------------------------------------------------- ------------- --------------
Change in net assets (151,459,570) (208,634,423)
- --------------------------------------------------------------
NET ASSETS:
- --------------------------------------------------------------
Beginning of period 898,461,384 1,107,095,807
- -------------------------------------------------------------- ------------- --------------
End of period $ 747,001,814 $ 898,461,384
- -------------------------------------------------------------- ------------- --------------
</TABLE>
* Six months ended August 31, 1994 (unaudited).
(See Notes which are an integral part of the Financial Statements)
FEDERATED SHORT-INTERMEDIATE GOVERNMENT TRUST
FINANCIAL HIGHLIGHTS--INSTITUTIONAL SHARES
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED FEBRUARY 28 OR 29,
----------------------------------------------------------------------------------------------
1995* 1994 1993 1992 1991 1990 1989 1988 1987
------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD $10.46 $10.53 $10.34 $10.12 $ 9.93 $ 9.81 $10.21 $10.42 $10.39
- -----------------------
INCOME FROM INVESTMENT
OPERATIONS
- -----------------------
Net investment income 0.23 0.37 0.48 0.67 0.72 0.84 0.82 0.81 0.84
- -----------------------
Net realized and unrealized
gain (loss) on investments (0.15) (0.07) 0.19 0.22 0.19 0.12 (0.40) (0.16) 0.03
- ----------------------- ---- ---- ---- ---- ---- ---- ---- ---- ----
Total from investment
operations 0.08 0.30 0.67 0.89 0.91 0.96 0.42 0.65 0.87
- -----------------------
LESS DISTRIBUTIONS
- -----------------------
Dividends to shareholders
from net investment income (0.23) (0.37) (0.48) (0.67) (0.72) (0.84) (0.82) (0.81) (0.84)
- -----------------------
Distributions to
shareholders from net
realized gain on investment
transactions -- -- -- -- -- -- -- (0.05) --
- ----------------------- ---- ---- ---- ---- ---- ---- ---- ---- ----
Total distributions (0.23) (0.37) (0.48) (0.67) (0.72) (0.84) (0.82) (0.86) (0.84)
- ----------------------- ---- ---- ---- ---- ---- ---- ---- ---- ----
NET ASSET VALUE, END OF
PERIOD $10.31 $10.46 $10.53 $10.34 $10.12 $ 9.93 $ 9.81 $10.21 $10.42
- ----------------------- ---- ---- ---- ---- ---- ---- ---- ---- ----
TOTAL RETURN** 0.75% 2.93% 6.64% 9.07% 10.11% 10.08% 4.23% 6.58% 8.73%
- -----------------------
RATIOS TO AVERAGE NET ASSETS
- -----------------------
Expenses 0.54%(a) 0.51% 0.49% 0.48% 0.48% 0.48% 0.47% 0.46% 0.45%
- -----------------------
Net investment income 4.32%(a) 3.56% 4.63% 6.57% 7.79% 8.42% 8.14% 7.89% 7.97%
- -----------------------
Expense waiver/
reimbursement(b) 0.02%(a) -- -- -- -- -- -- 0.01% 0.02%
- -----------------------
SUPPLEMENTAL DATA
- -----------------------
Net assets, end of period
(000 omitted) $715,839 $858,556 $1,034,374 $1,171,633 $1,296,579 $1,725,112 $2,236,208 $3,016,355 $4,348,532
- -----------------------
Portfolio turnover rate 116% 150% 132% 114% 96% 172% 112% 85% 99%
- -----------------------
<CAPTION>
1986
------
<S> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD $10.18
- -----------------------
INCOME FROM INVESTMENT
OPERATIONS
- -----------------------
Net investment income 1.06
- -----------------------
Net realized and unrealized
gain (loss) on investments 0.21
- ----------------------- ----
Total from investment
operations 1.27
- -----------------------
LESS DISTRIBUTIONS
- -----------------------
Dividends to shareholders
from net investment income (1.06)
- -----------------------
Distributions to
shareholders from net
realized gain on investment
transactions --
- ----------------------- ----
Total distributions (1.06)
- ----------------------- ----
NET ASSET VALUE, END OF
PERIOD $10.39
- ----------------------- ----
TOTAL RETURN** 12.99%
- -----------------------
RATIOS TO AVERAGE NET ASSETS
- -----------------------
Expenses 0.43%
- -----------------------
Net investment income 10.09%
- -----------------------
Expense waiver/
reimbursement(b) 0.02%
- -----------------------
SUPPLEMENTAL DATA
- -----------------------
Net assets, end of period
(000 omitted) $2,005,689
- -----------------------
Portfolio turnover rate 138%
- -----------------------
</TABLE>
* Six months ended August 31, 1994 (unaudited).
** Based on net asset value, which does not reflect the sales load or contingent
deferred sales charge, if applicable.
(a) Computed on an annualized basis.
(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 SHORT-INTERMEDIATE GOVERNMENT TRUST
FINANCIAL HIGHLIGHTS--INSTITUTIONAL SERVICE SHARES
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED FEBRUARY 28,
------------------------------
1995** 1994 1993*
------ ------ ------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.46 $10.53 $10.37
- ----------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ----------------------------------------------------------
Net investment income 0.21 0.35 0.34
- ----------------------------------------------------------
Net realized and unrealized gain (loss) on investments (0.15 ) (0.07) 0.16
- ---------------------------------------------------------- ----- ------ ------
Total from investment operations 0.06 0.28 0.50
- ----------------------------------------------------------
LESS DISTRIBUTIONS
- ----------------------------------------------------------
Dividends to shareholders from net investment income (0.21 ) (0.35) (0.34)
- ---------------------------------------------------------- ----- ------ ------
NET ASSET VALUE, END OF PERIOD $10.31 $10.46 $10.53
- ---------------------------------------------------------- ----- ------ ------
TOTAL RETURN*** 0.62 % 2.68% 4.28%
- ----------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ----------------------------------------------------------
Expenses 0.79 %(a) 0.76% 0.74%(a)
- ----------------------------------------------------------
Net investment income 4.07 %(a) 3.33% 4.14%(a)
- ----------------------------------------------------------
Expense waiver/reimbursement (b) 0.27 %(a) -- --
- ----------------------------------------------------------
SUPPLEMENTAL DATA
- ----------------------------------------------------------
Net assets, end of period (000 omitted) $31,163 $39,905 $72,722
- ----------------------------------------------------------
Portfolio turnover rate 116 % 150% 132%
- ----------------------------------------------------------
</TABLE>
* For the period from May 29, 1992 (effective date of Institutional Service
Shares) to February 28, 1993.
** Six months ended August 31, 1994 (unaudited).
*** Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(a) Computed on an annualized basis.
(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 SHORT-INTERMEDIATE GOVERNMENT TRUST
NOTES TO FINANCIAL STATEMENTS
AUGUST 31, 1994
(UNAUDITED)
- --------------------------------------------------------------------------------
(1) ORGANIZATION
The Trust is registered under the Investment Company Act of 1940, as amended
(the "Act"), as a diversified, open-end, management investment company. The
Trust provides two classes of shares, Institutional Shares and Institutional
Service Shares.
(2) SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
A. INVESTMENT VALUATIONS--U.S. government obligations are generally valued at
the mean between the over-the-counter bid and asked prices as furnished by an
independent pricing service. Short-term securities with remaining maturities
of sixty days or less may be stated at amortized cost, which approximates
value.
B. REPURCHASE AGREEMENTS--It is the policy of the Trust to require the custodian
bank to take possession, to have legally segregated in the Federal Reserve
Book Entry System, or to have segregated within the custodian bank's vault,
all securities held as collateral in support of repurchase agreement
investments. Additionally, procedures have been established by the Trust to
monitor, on a daily basis, the market value of each repurchase agreement's
underlying collateral to ensure that the value of collateral at least equals
the principal amount of the repurchase agreement, including accrued interest.
The Trust will only enter into repurchase agreements with banks and other
recognized financial institutions, such as broker/dealers, which are deemed
by the Trust's adviser to be creditworthy pursuant to the guidelines
established by the Board of Trustees (the "Trustees").
C. INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS--Interest income and expenses
are accrued daily. Bond premium and discount, if applicable, are amortized as
required by the Internal Revenue Code, as amended (the "Code"). Distributions
to shareholders are recorded on the ex-dividend date.
D. FEDERAL TAXES--It is the Trust's policy to comply with the provisions of the
Code, applicable to regulated investment companies and to distribute to
shareholders each year substantially all of its taxable income. Accordingly,
no provisions for federal tax are necessary. At February 28, 1994, the Trust,
for federal tax purposes, had a capital loss carryforward of $104,988,279,
which will reduce the Trust's taxable income arising from future net realized
gain on investments, if any, to the extent permitted by the Code, and thus
will reduce the amount of the distributions to shareholders which
FEDERATED SHORT-INTERMEDIATE GOVERNMENT TRUST
- --------------------------------------------------------------------------------
would otherwise be necessary to relieve the Trust of any liability for
federal tax. Pursuant to the Code, such capital loss carryforward will expire
in 1997 ($39,788,098) and 1998 ($65,200,181).
E. WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS--The Trust may engage in
when-issued or delayed delivery transactions. The Trust records when-issued
securities on the trade date and maintains security positions such that
sufficient liquid assets will be available to make payment for the securities
purchased. Securities purchased on a when-issued or delayed delivery basis
are marked to market daily and begin earning interest on the settlement date.
F. OTHER--Investment transactions are accounted for on the trade date.
(3) SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value) for each
class of shares. Transactions in Trust shares were as follows:
<TABLE>
<CAPTION>
YEAR ENDED FEBRUARY 28,
--------------------------------------------------------------
1995* 1994
---------------------------- ----------------------------
INSTITUTIONAL SHARES SHARES DOLLARS SHARES DOLLARS
- ----------------------------------------- ----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
Shares sold 10,206,906 $ 105,517,440 46,140,706 $ 485,245,229
- -----------------------------------------
Shares issued to shareholders in payment
of dividends declared 679,974 7,009,257 1,246,292 13,114,141
- -----------------------------------------
Shares redeemed (23,562,906) (243,636,814) (63,588,095) (668,935,000)
- ----------------------------------------- ----------- ------------- ----------- -------------
Net change resulting from
Institutional Share transactions (12,676,026) $(131,110,117) (16,201,097) $(170,575,630)
- ----------------------------------------- ----------- ------------- ----------- -------------
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED FEBRUARY 28,
--------------------------------------------------------------
1995* 1994
---------------------------- ----------------------------
INSTITUTIONAL SERVICE SHARES SHARES DOLLARS SHARES DOLLARS
- ----------------------------------------- ----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
Shares sold 1,752,845 $ 18,132,567 4,528,398 $ 47,584,472
- -----------------------------------------
Shares issued to shareholders in payment
of dividends declared 57,226 590,728 90,266 949,832
- -----------------------------------------
Shares redeemed (2,603,787) (26,915,140) (7,712,513) (81,018,492)
- ----------------------------------------- ----------- ------------- ----------- -------------
Net change resulting from Institutional
Service Share transactions (793,716) $ (8,191,845) (3,093,849) $ (32,484,188)
- ----------------------------------------- ----------- ------------- ----------- -------------
Net change resulting from
Trust Share transactions (13,469,742) $(139,301,962) (19,294,946) $(203,059,818)
- ----------------------------------------- ----------- ------------- ----------- -------------
</TABLE>
*Six months ended August 31, 1994.
FEDERATED SHORT-INTERMEDIATE GOVERNMENT TRUST
- --------------------------------------------------------------------------------
(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 .40 of 1% of the Trust's average daily net assets. The Adviser may
voluntarily choose to waive a portion of its fee. The Adviser can modify or
terminate this voluntary waiver at any time at its sole discretion.
ADMINISTRATIVE FEE--Federated Administrative Services ("FAS") provides the Trust
administrative personnel and services. Prior to March 1, 1994, these services
were provided at approximate cost. Effective March 1, 1994, the FAS fee is based
on the level of average aggregate daily net assets of all funds advised by
subsidiaries of Federated Investors for the period. The administrative fee
received during the period of the Administrative Services Agreement shall be at
least $125,000 per portfolio and $30,000 per each additional class of shares.
DISTRIBUTION AND SHAREHOLDER SERVICES FEE--The Trust has adopted a Distribution
Plan (the "Plan") pursuant to Rule 12b-1 under the Act. Under the terms of the
Plan, the Trust will compensate Federated Securities Corp. ("FSC"), the
principal distributor, from the net assets of the Institutional Service Shares
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 1% of the average daily net assets of the
Institutional Service Shares, annually, to compensate FSC. The distributor may
voluntarily choose to waive a portion of its fee. The distributor can modify or
terminate this voluntary waiver at any time at its sole discretion.
Under the terms of a Shareholder Services Agreement with Federated Shareholders
Services ("FSS"), the Trust will pay FSS up to .25 of 1% of average daily net
assets of each class of shares for the period. This fee is to obtain certain
personal services for shareholders and to maintain the shareholder accounts. For
the six months ended August 31, 1994, Institutional Shares did not incur a
shareholder services fee.
TRANSFER AND DIVIDEND DISBURSING AGENT FEES--Federated Services Company
("FServ") serves as transfer and dividend disbursing agent for the Trust. The
FServ fee is based on the size, type, and number of accounts and transactions
made by shareholders.
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 six
months ended August 31, 1994, were as follows:
<TABLE>
<S> <C>
- -----------------------------------------------------------------------------
Purchases-- $ 914,162,402
- ----------------------------------------------------------------------------- --------------
Sales-- $1,051,049,803
- ----------------------------------------------------------------------------- --------------
</TABLE>
<TABLE>
<S> <C>
TRUSTEES OFFICERS
- ---------------------------------------------------------------------------------------------
John F. Donahue John F. Donahue
John T. Conroy, Jr. Chairman
William J. Copeland Glen R. Johnson
James E. Dowd President
Lawrence D. Ellis, M.D. J. Christopher Donahue
Edward L. Flaherty, Jr. Vice President
Peter E. Madden Richard B. Fisher
Gregor F. Meyer Vice President
Wesley W. Posvar Edward C. Gonzales
Marjorie P. Smuts Vice President and Treasurer
John W. McGonigle
Vice President and Secretary
David M. Taylor
Assistant Treasurer
G. Andrew Bonnewell
Assistant Secretary
</TABLE>
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 risk, including possible
loss of principal.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by the Trust's prospectus which contains facts
concerning its objective and policies, management fees, expenses and other
information.
