PRESIDENT'S MESSAGE
- --------------------------------------------------------------------------------
Dear Shareholder:
I am pleased to present the Semi-Annual Report to Shareholders for Federated
Growth Trust for the six-month period ended April 30, 1995. Included in this
report is our Investment Review, followed by a complete listing of the fund's
holdings, Financial Statements, and Financial Highlights.
Federated Growth Trust is managed to pursue long-term growth through a highly
diversified portfolio. The fund's portfolio includes common stocks and
convertible securities from 63 issuers representing 16 key business sectors.
Among the fund's holdings are many familiar names such as Citicorp, Intel Corp.,
Johnson & Johnson, Pepsico, Inc., and Reebok International Ltd.
Following a period in which the fund announced changes aimed at producing more
competitive returns, the fund's net assets decreased from $320.6 million on
November 1, 1994 to $244.8 million on April 30, 1995. However, between the first
and last days of the period, as those changes were implemented, the fund's net
asset value per share increased from $21.28 to $22.22 per share.
Thank you for your continued confidence in Federated Growth Trust. As always, we
welcome your comments and suggestions.
Sincerely,
Glen R. Johnson
President
June 15, 1995
1
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
From the end of 1994 through April 30, 1995, Federated Growth Trust had a total
return of 11.61%.* This compares to the average Lipper Growth Fund** which had a
total return of 9.6%; the Standard & Poor's ("S&P") 500 Index*** had a total
return of 12.95%.
So far this year, the strong performance of stocks within our investable
universe has not been consistent between economic industries. Sectors such as
Electronic Techology, Techology Services, Health Technology, and Finance lead
the market with huge gains. Sectors which lagged the market, providing more
modest gains, included Retail Trade, Non-energy Minerals, and Health Care
Services.
Equally diverse was the performance between indexes made up of different sized
stocks. The S&P 500 Index*** is a larger stock index whose components are
weighted by market capitalization. This index has a weighted average market
capitalization of $26.0 billion and had a total return of 12.95%. The mid-sized
S&P 400 Mid-Cap Index***, which has a weighted average market cap of $1.9
billion, had a total return of 10.38% and the S&P Small-Cap 600 Index***, with
its weighted average market cap of about $400 million, had a total return of
7.01%.
The Trust benefited from having its largest exposures in the Electronic
Techology, Health Technology, and Finance sectors. The Trust, however, was held
back from even better performance by having a majority of its holdings in the
mid-cap area. The weighted average market cap of the Trust's portfolio was $8.6
billion.
Federated Growth Trust is presently content with the way its exposures are
allocated across sectors, as our heavier weightings are in sectors that we
expect will demonstrate the fastest earnings growth. We are also satisfied that
we are properly situated with regard to the market capitalizations of our
holdings. Especially after the run up in big stocks so far this year, we believe
that the mid-cap area offers the most attractive combination of growth
potential, fair pricing and liquidity. We like the size and potential of stocks
in the mid-cap range and do not foresee a major portfolio shift for the Trust in
the immediate future.
Growth stocks in general have taken a pause over the last two months in their
strong relative outperformance versus value stocks. This is going against, but
we believe not reversing, the trend that has been in place since about July of
1994. While more macro economic data appears to be printing about a slowing in
the growth rate of the domestic economy, the market seems to be apprehensive
about bidding up growth stocks more aggressively until the slowdown is reflected
in the earnings and fundamental reports from more cyclical companies. These
reports could occur as we move through second quarter and third quarter earnings
announcements and so the trend of growth doing better than value should continue
for the balance of 1995.
*PAST PERFORMANCE MAY NOT BE INDICATIVE OF FUTURE PERFORMANCE. INVESTMENT
RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, THEREFORE, AN INVESTORS SHARES
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST.
**LIPPER AVERAGES DO NOT REFLECT SALES LOAD OR SALES CHARGES.
***THIS INDEX IS UNMANAGED.
2
FEDERATED GROWTH TRUST
PORTFOLIO OF INVESTMENTS
APRIL 30, 1995 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- --------------- ------------------------------------------------------------ ------------
<C> <S> <C>
EQUITIES--87.7%
- ------------------------------------------------------------------------------
COMMERCIAL SERVICES--3.1%
------------------------------------------------------------
348,200 ADT Ltd. $ 4,134,875
------------------------------------------------------------
98,000 Olsten Corp. 3,344,250
------------------------------------------------------------ ------------
Total 7,479,125
------------------------------------------------------------ ------------
CONSUMER DURABLES--1.4%
------------------------------------------------------------
164,500 Brunswick Corp. 3,516,187
------------------------------------------------------------ ------------
CONSUMER NON-DURABLES--8.8%
------------------------------------------------------------
38,400 Gillette Co. 3,148,800
------------------------------------------------------------
100,000 (a) Gymboree Corp. 2,350,000
------------------------------------------------------------
110,000 IBP, Inc. 4,070,000
------------------------------------------------------------
85,000 PepsiCo, Inc. 3,538,125
------------------------------------------------------------
90,000 Philip Morris Cos., Inc. 6,097,500
------------------------------------------------------------
75,000 Reebok International Ltd. 2,343,750
------------------------------------------------------------ ------------
Total 21,548,175
------------------------------------------------------------ ------------
CONSUMER SERVICES--2.8%
------------------------------------------------------------
48,000 Capital Cities/ABC, Inc. 4,056,000
------------------------------------------------------------
100,000 Service Corp. International 2,825,000
------------------------------------------------------------ ------------
Total 6,881,000
------------------------------------------------------------ ------------
ELECTRONIC TECHNOLOGY--15.0%
------------------------------------------------------------
36,300 Advanced Micro Devices, Inc. 1,306,800
------------------------------------------------------------
85,000 (a) Cisco Systems, Inc. 3,389,375
------------------------------------------------------------
135,000 (a) EMC Corp. Mass 2,666,250
------------------------------------------------------------
100,000 General Motors Corp., Class H 3,912,500
------------------------------------------------------------
167,000 (a) Integrated Device Technology, Inc. 6,366,875
------------------------------------------------------------
74,200 Intel Corp. 7,596,225
------------------------------------------------------------
100,000 Loral Corp. 4,700,000
------------------------------------------------------------
53,000 Micron Technology, Inc. 4,359,250
------------------------------------------------------------
43,800 Motorola, Inc. 2,491,125
------------------------------------------------------------ ------------
Total 36,788,400
------------------------------------------------------------ ------------
</TABLE>
3
FEDERATED GROWTH TRUST
- ---------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- --------------- ------------------------------------------------------------ ------------
<C> <S> <C>
EQUITIES--CONTINUED
- ------------------------------------------------------------------------------
ENERGY MINERALS--3.4%
------------------------------------------------------------
150,000 Ashland, Inc. $ 5,550,000
------------------------------------------------------------
31,000 British Petroleum, Ltd., ADR 2,669,875
------------------------------------------------------------ ------------
Total 8,219,875
------------------------------------------------------------ ------------
FINANCE--8.0%
------------------------------------------------------------
106,000 Bank of New York Co., Inc. 3,484,750
------------------------------------------------------------
100,000 Citicorp 4,637,500
------------------------------------------------------------
175,000 MBNA Corp. 5,293,750
------------------------------------------------------------
68,000 NationsBank Corp. 3,400,000
------------------------------------------------------------
180,000 USF&G Corp. 2,655,000
------------------------------------------------------------ ------------
Total 19,471,000
------------------------------------------------------------ ------------
HEALTH SERVICES--3.0%
------------------------------------------------------------
100,000 (a) Foundation Health Corp 2,775,000
------------------------------------------------------------
150,000 (a) Ornda Healthcorp 2,625,000
------------------------------------------------------------
81,000 (a) Sun Healthcare Group, Inc. 1,954,125
------------------------------------------------------------ ------------
Total 7,354,125
------------------------------------------------------------ ------------
HEALTH TECHNOLOGY--11.5%
------------------------------------------------------------
50,000 American Home Products Corp. 3,856,250
------------------------------------------------------------
55,000 (a) Amgen, Inc. 3,997,813
------------------------------------------------------------
50,000 (a) Genentech, Inc. 2,518,750
------------------------------------------------------------
80,000 Genzyme Corp. 3,420,000
------------------------------------------------------------
50,000 Johnson & Johnson 3,250,000
------------------------------------------------------------
44,000 Lilly (Eli) & Co. 3,289,000
------------------------------------------------------------
104,500 Merck & Co., Inc. 4,480,437
------------------------------------------------------------
100,000 Mylan Laboratories, Inc. 3,075,000
------------------------------------------------------------
10,000 Teva Pharmaceutical Industries, Ltd., ADR 342,500
------------------------------------------------------------ ------------
Total 28,229,750
------------------------------------------------------------ ------------
INDUSTRIAL SERVICES--6.6%
------------------------------------------------------------
1,000,000 (a) Chambers Development, Inc., Class A 5,625,000
------------------------------------------------------------
75,000 Coflexip, ADR 2,286,328
------------------------------------------------------------
397,600 (a) Kenetech Corp. 4,274,200
------------------------------------------------------------
90,000 (a) Western Atlas, Inc. 4,050,000
------------------------------------------------------------ ------------
Total 16,235,528
------------------------------------------------------------ ------------
</TABLE>
4
FEDERATED GROWTH TRUST
- ---------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- --------------- ------------------------------------------------------------ ------------
<C> <S> <C>
EQUITIES--CONTINUED
- ------------------------------------------------------------------------------
NON-ENERGY MINERALS--1.7%
------------------------------------------------------------
255,000 (a) Magma Copper Co. $ 4,271,250
------------------------------------------------------------ ------------
PROCESS INDUSTRIES--4.9%
------------------------------------------------------------
150,000 (a) AK Steel Holding Corp. 4,031,250
------------------------------------------------------------
50,000 Champion International Corp. 2,200,000
------------------------------------------------------------
122,000 Medusa Corp. 2,760,250
------------------------------------------------------------
125,000 Praxair, Inc. 2,968,750
------------------------------------------------------------ ------------
Total 11,960,250
------------------------------------------------------------ ------------
PRODUCER MANUFACTURING--5.4%
------------------------------------------------------------
50,000 Dover Corp. 3,250,000
------------------------------------------------------------
150,000 Greenfield Industries, Inc. 4,425,000
------------------------------------------------------------
71,000 Magna International, Inc., Class A 2,458,375
------------------------------------------------------------
55,000 (a) Thermo Electron Corp. 2,963,125
------------------------------------------------------------ ------------
Total 13,096,500
------------------------------------------------------------ ------------
RETAIL TRADE--5.3%
------------------------------------------------------------
107,000 Premark International, Inc. 5,162,750
------------------------------------------------------------
145,000 (a) Safeway, Inc. 5,437,500
------------------------------------------------------------
100,000 Wal-Mart Stores, Inc. 2,375,000
------------------------------------------------------------ ------------
Total 12,975,250
------------------------------------------------------------ ------------
TRANSPORTATION--3.1%
------------------------------------------------------------
70,000 AMR Corp. 4,716,250
------------------------------------------------------------
97,000 (a) KLM Royal Dutch Airlines, ADR 2,958,500
------------------------------------------------------------ ------------
Total 7,674,750
------------------------------------------------------------ ------------
UTILITIES--3.7%
------------------------------------------------------------
135,000 MCI Communications Corp. 2,936,250
------------------------------------------------------------
204,200 Sonat, Inc. 6,202,575
------------------------------------------------------------ ------------
Total 9,138,825
------------------------------------------------------------ ------------
TOTAL EQUITIES (IDENTIFIED COST $188,193,845) 214,839,990
------------------------------------------------------------ ------------
CONVERTIBLE SECURITIES--6.9%
- ------------------------------------------------------------------------------
ELECTRONIC TECHNOLOGY--1.4%
------------------------------------------------------------
2,230,000 General Instrument Corp., Conv. Jr. Sub. Note, 5.00%,
6/15/2000 3,326,870
------------------------------------------------------------ ------------
FINANCE--4.2%
------------------------------------------------------------
120,000 First USA, Inc., PRIDES, $1.99 4,635,000
------------------------------------------------------------
</TABLE>
5
FEDERATED GROWTH TRUST
- ---------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT OR
SHARES VALUE
- --------------- ------------------------------------------------------------ ------------
<C> <S> <C>
129,000 Sunamerica, Inc., Conv. Pfd., Series D, $2.78 $ 5,756,625
------------------------------------------------------------ ------------
Total 10,391,625
------------------------------------------------------------ ------------
HEALTH TECHNOLOGY--1.3%
------------------------------------------------------------
8,500,000 Roche Holdings, Inc., Conv. LYON, 7.00% accrual, 4/20/2010 3,198,125
------------------------------------------------------------ ------------
TOTAL CONVERTIBLE SECURITIES (IDENTIFIED COST $14,681,758) 16,916,620
------------------------------------------------------------ ------------
(b) Repurchase Agreement--3.8%
- ------------------------------------------------------------------------------
FINANCE--3.8%
------------------------------------------------------------
$9,380,000 J.P. Morgan & Co., Inc., 5.97%, 5/1/1995 (at amortized cost) 9,380,000
------------------------------------------------------------ ------------
TOTAL INVESTMENTS(c) (identified cost $212,255,603) $241,136,610
------------------------------------------------------------ ------------
------------
<FN>
(a) Non-income producing securities.
(b) The repurchase agreement is fully collateralized by U.S. government
obligations based on market prices at the date of the portfolio. The
investment in the repurchase agreement was through participation in a
joint account with other Federated funds.
(c) The cost of investments for federal tax purposes amounts to $212,255,603.
The unrealized appreciation/depreciation of investments on a federal tax
basis amounts to $28,881,007 which is comprised of $33,228,157
appreciation and $4,347,150 depreciation at April 30, 1995.
Note: The categories of investments are shown as a percentage of net assets
($244,758,474) at April 30, 1995.
</TABLE>
The following abbreviations are used throughout this portfolio:
<TABLE>
<S> <C>
ADR --American Depository Receipt
LYON --Liquid Yield Option Note
PRIDES --Preferred Redeemable Increased Dividend Equity Securities
</TABLE>
(See Notes which are an integral part of the Financial Statements)
6
FEDERATED GROWTH TRUST
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1995 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- ---------------------------------------------------------------------------------------------
Investments in securities, at value (identified and tax cost $212,255,603) $241,136,610
- ---------------------------------------------------------------------------------------------
Cash 1,566
- ---------------------------------------------------------------------------------------------
Income receivable 210,178
- ---------------------------------------------------------------------------------------------
Receivable for investments sold 8,330,958
- ---------------------------------------------------------------------------------------------
Receivable for shares sold 58,727
- --------------------------------------------------------------------------------------------- ------------
Total assets 249,738,039
- ---------------------------------------------------------------------------------------------
LIABILITIES:
- ---------------------------------------------------------------------------------------------
Payable for investments purchased $4,521,080
- --------------------------------------------------------------------------------
Payable for shares redeemed 343,725
- --------------------------------------------------------------------------------
Accrued expenses 114,760
- -------------------------------------------------------------------------------- ----------
Total liabilities 4,979,565
- --------------------------------------------------------------------------------------------- ------------
NET ASSETS for 11,013,517 shares outstanding $244,758,474
- --------------------------------------------------------------------------------------------- ------------
------------
NET ASSETS CONSISTS OF:
- ---------------------------------------------------------------------------------------------
Paid in capital $197,012,364
- ---------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments 28,881,007
- ---------------------------------------------------------------------------------------------
Accumulated net realized gain (loss) on investments 18,649,180
- ---------------------------------------------------------------------------------------------
Undistributed net investment income 215,923
- --------------------------------------------------------------------------------------------- ------------
Total Net Assets $244,758,474
- --------------------------------------------------------------------------------------------- ------------
------------
NET ASSET VALUE, Offering Price and Redemption Proceeds Per Share:
- ---------------------------------------------------------------------------------------------
Net Asset Value Per Share ($244,758,474 DIVIDED BY 11,013,517 shares
outstanding) $ 22.22
- --------------------------------------------------------------------------------------------- ------------
------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
7
FEDERATED GROWTH TRUST
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1995 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
- -------------------------------------------------------------------------
Interest $ 937,542
- -------------------------------------------------------------------------
Dividends 2,541,115
- ------------------------------------------------------------------------- -----------
Total income 3,478,657
- -------------------------------------------------------------------------
EXPENSES:
- -------------------------------------------------------------------------
Investment advisory fee $1,014,850
- ------------------------------------------------------------
Administrative personnel and services fee 102,432
- ------------------------------------------------------------
Custodian fees 55,697
- ------------------------------------------------------------
Transfer agent and dividend disbursing agent fees and
expenses 101,769
- ------------------------------------------------------------
Directors'/Trustees' fees 5,525
- ------------------------------------------------------------
Auditing fees 7,500
- ------------------------------------------------------------
Legal fees 4,424
- ------------------------------------------------------------
Portfolio accounting fees 27,063
- ------------------------------------------------------------
Shareholder services fee 121,782
- ------------------------------------------------------------
Share registration costs 11,403
- ------------------------------------------------------------
Printing and postage 8,516
- ------------------------------------------------------------
Insurance premiums 4,887
- ------------------------------------------------------------
Taxes 6,302
- ------------------------------------------------------------
Miscellaneous 4,887
- ------------------------------------------------------------ ----------
Total expenses 1,477,037
- ------------------------------------------------------------------------- -----------
Net investment income 2,001,620
- ------------------------------------------------------------------------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
- -------------------------------------------------------------------------
Net realized gain (loss) on investments 18,852,390
- -------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on investments (523,952)
- ------------------------------------------------------------------------- -----------
Net realized and unrealized gain (loss) on investments 18,328,438
- ------------------------------------------------------------------------- -----------
Change in net assets resulting from operations $20,330,058
- ------------------------------------------------------------------------- -----------
-----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
8
FEDERATED GROWTH TRUST
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
APRIL 30, 1995 OCTOBER 31,
(UNAUDITED) 1994
-------------- --------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- ---------------------------------------------------------------------------
OPERATIONS--
- ---------------------------------------------------------------------------
Net investment income $ 2,001,620 $ 3,676,162
- ---------------------------------------------------------------------------
Net realized gain/(loss) on investments ($18,852,390 and $9,574,806, net
gains respectively, as computed for federal income tax purposes) 18,852,390 9,370,805
- ---------------------------------------------------------------------------
Net change in unrealized appreciation/(depreciation) (523,952) (51,582,544)
- --------------------------------------------------------------------------- -------------- --------------
Change in net assets resulting from operations 20,330,058 (38,535,577)
- --------------------------------------------------------------------------- -------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS--
- ---------------------------------------------------------------------------
Distributions from net investment income (2,293,801) (3,448,745)
- ---------------------------------------------------------------------------
Distributions from net realized gains (9,574,950) (9,252,795)
- --------------------------------------------------------------------------- -------------- --------------
Change in net assets resulting from distributions to shareholders (11,868,751) (12,701,540)
- --------------------------------------------------------------------------- -------------- --------------
SHARE TRANSACTIONS--
- ---------------------------------------------------------------------------
Proceeds from sale of Shares 23,939,144 161,557,597
- ---------------------------------------------------------------------------
Net asset value of Shares issued to shareholders in payment of
distributions declared 6,040,896 5,957,016
- ---------------------------------------------------------------------------
Cost of Shares redeemed (114,312,621) (256,459,141)
- --------------------------------------------------------------------------- -------------- --------------
Change in net assets resulting from Share transactions (84,332,581) (88,944,528)
- --------------------------------------------------------------------------- -------------- --------------
Change in net assets (75,871,274) (140,181,645)
- ---------------------------------------------------------------------------
NET ASSETS:
- ---------------------------------------------------------------------------
Beginning of period 320,629,748 460,811,393
- --------------------------------------------------------------------------- -------------- --------------
End of period (including undistributed net investment income of $215,923
and $508,103, respectively) $ 244,758,474 $ 320,629,748
- --------------------------------------------------------------------------- -------------- --------------
-------------- --------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
9
FEDERATED GROWTH TRUST
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
APRIL 30,
1995 YEAR ENDED OCTOBER 31,
----------------------------------------------------
(UNAUDITED) 1994 1993 1992 1991 1990
- -------------------------------------------------- ----------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $21.28 $23.92 $21.16 $21.58 $16.78 $20.99
- --------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- --------------------------------------------------
Net investment income 0.16 0.21 0.20 0.33 0.57 0.75
- --------------------------------------------------
Net realized and unrealized gain (loss) on
investments 1.63 (2.18) 2.96 0.45 5.97 (2.69)
- -------------------------------------------------- ----------- -------- -------- -------- -------- --------
Total from investment operations 1.79 (1.97) 3.16 0.78 6.54 (1.94)
- --------------------------------------------------
LESS DISTRIBUTIONS:
Distributions from net investment income (0.17) (0.19) (0.23) (0.33) (0.61) (0.79)
- --------------------------------------------------
Distributions from net realized gain on
investment transactions (0.68) (0.48) (0.17) (0.87) (1.13) (1.48)
- -------------------------------------------------- ----------- -------- -------- -------- -------- --------
Total distributions (0.85) (0.67) (0.40) (1.20) (1.74) (2.27)
- --------------------------------------------------
NET ASSET VALUE, END OF PERIOD $22.22 $21.28 $23.92 $21.16 $21.58 $16.78
- -------------------------------------------------- ----------- -------- -------- -------- -------- --------
----------- -------- -------- -------- -------- --------
TOTAL RETURN (b) 8.97% (8.43%) 15.06% 3.93% 41.54% (10.41%)
- --------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- --------------------------------------------------
Expense Ratio 1.09%(c) 0.99% 0.96% 1.01% 1.01% 1.01%
- --------------------------------------------------
Net investment income ratio 1.48%(c) 0.89% 0.90% 1.54% 2.88% 4.00%
- --------------------------------------------------
Expense waiver/reimbursement (d) 0(c) 0 0 0 0.10% 0.22%
- --------------------------------------------------
Net assets, end of period 000 omitted $244,758 $320,630 $460,811 $391,655 $275,561 $138,407
- --------------------------------------------------
Portfolio Turnover 67% 59% 57% 46% 54% 67%
- --------------------------------------------------
<CAPTION>
PERIOD ENDED
OCTOBER 31, YEAR ENDED MAY 31,
------------------- ------------------------------
1989 1988(a) 1988 1987 1986
- -------------------------------------------------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $17.18 $16.93 $17.67 $16.03 $11.66
- --------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- --------------------------------------------------
Net investment income 0.59 0.09 0.25 0.28 0.27
- --------------------------------------------------
Net realized and unrealized gain (loss) on
investments 3.80 1.08 (0.23) 2.40 4.46
- -------------------------------------------------- -------- -------- -------- -------- --------
Total from investment operations 4.39 1.17 0.02 2.68 4.73
- --------------------------------------------------
LESS DISTRIBUTIONS:
Distributions from net investment income (0.52) (0.15) (0.20) (0.26) (0.29)
- --------------------------------------------------
Distributions from net realized gain on
investment transactions (0.06) (0.77) (0.56) (0.78) (0.07)
- -------------------------------------------------- -------- -------- -------- -------- --------
Total distributions (0.58) (0.92) (0.76) (1.04) (0.36)
- --------------------------------------------------
NET ASSET VALUE, END OF PERIOD $20.99 $17.18 $16.93 $ 17.6 $16.03
- -------------------------------------------------- -------- -------- -------- -------- --------
-------- -------- -------- -------- --------
TOTAL RETURN (b) 25.87% 6.95% 0.50% 17.55 41.58%
- --------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- --------------------------------------------------
Expense Ratio 1.01% 1.00%(c) 1.00% 1.00% 1.00%
- --------------------------------------------------
Net investment income ratio 2.99% 1.30%(c) 1.39% 1.78% 2.35%
- --------------------------------------------------
Expense waiver/reimbursement (d) 0.14% 0.60%(c) 0.15% 0.18% 0.50%
- --------------------------------------------------
Net assets, end of period 000 omitted $134,735 $104,146 $102,395 $134,657 $47,318
- --------------------------------------------------
Portfolio Turnover 79% 24% 88% 66% 42%
- --------------------------------------------------
<FN>
(a) For the five months ended October 31, 1988.
(b) Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(c) Computed on an annualized basis.
(d) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
</TABLE>
(See Notes which are an integral part of the Financial Statements)
10
FEDERATED GROWTH TRUST
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1995 (UNAUDITED)
- --------------------------------------------------------------------------------
1. ORGANIZATION
Federated Growth Trust (the "Trust") is registered under the Investment Company
Act of 1940, as amended (the "Act"), as a diversified, open-end management
investment company.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
INVESTMENT VALUATIONS--Listed equity securities are valued at the last sale
price reported on national securities exchanges. Unlisted securities and
short term securities are generally valued at the price provided by an
independent pricing service. Short-term securities with remaining maturities
of sixty days or less may be valued at amortized cost, which approximates
fair market value.
REPURCHASE AGREEMENTS--It is the policy of the Trust to require a 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
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--Dividend income and
distributions to shareholders are recorded on the ex-dividend date. 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").
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.
11
FEDERATED GROWTH TRUST
- ---------------------------------------------------------
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.
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).
Transactions in shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1995 OCTOBER 31, 1994
- ------------------------------------------------------- ------------------ ----------------
<S> <C> <C>
Shares sold 1,150,039 7,063,731
- -------------------------------------------------------
Shares issued to shareholders in payment of
distributions declared 310,152 259,280
- -------------------------------------------------------
Shares redeemed (5,510,530) (11,526,631)
- ------------------------------------------------------- ---------- ----------------
Net change resulting from share transactions (4,050,339) (4,203,620)
- ------------------------------------------------------- ---------- ----------------
---------- ----------------
</TABLE>
4. INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE--Federated Management, the Trust's investment adviser
(the "Adviser"), receives for its services an annual investment advisory fee
equal to .75 of 1% of the Trust's average daily net assets.
ADMINISTRATIVE FEE--Federated Administrative Services ("FAS"), under the
Administrative Services Agreement, provides the Trust with administrative
personnel and services. 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.
SHAREHOLDER SERVICES FEE--Under the terms of a Shareholder Services Agreement
with Federated Shareholder Services ("FSS") the Trust will pay FSS up to .25 of
1% of average daily net assets of the Trust for the period. This fee is to
obtain certain services for shareholders and to maintain the shareholder
accounts.
TRANSFER AGENT AND DIVIDEND DISBURSING AGENT FEES AND EXPENSES--Federated
Services Company ("FServ") serves as transfer and dividend disbursing agent for
the Trust. The fee is based on the size, type, and number of accounts and
transactions made by shareholders.
12
FEDERATED GROWTH TRUST
- ---------------------------------------------------------
PORTFOLIO ACCOUNTING FEES--FServ also maintains the Trust's accounting records
for which it receives a fee. The fee is based on the level of the Trust's
average daily net assets for the period, plus out-of-pocket expenses.
GENERAL--Certain of the Officers and Trustees of the Trust are Officers and
Directors or Trustees of the above companies.
5. INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the six
months ended April 30, 1995, were as follows:
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------
<S> <C>
PURCHASES $169,381,902
- ---------------------------------------------------------------------- ------------
SALES $251,671,179
- ---------------------------------------------------------------------- ------------
</TABLE>
13
<TABLE>
<CAPTION>
TRUSTEES OFFICERS
- ---------------------------------------------------------
<S> <C>
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
John E. Murray, Jr. Edward C. Gonzales
Wesley W. Posvar VICE PRESIDENT AND TREASURER
Marjorie P. Smuts John W. McGonigle
VICE PRESIDENT AND SECRETARY
David M. Taylor
ASSISTANT TREASURER
Robert C. Rosselot
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 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.
14
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FEDERATED
- --------------------------------------------------------------------------------
GROWTH
- --------------------------------------------------------------------------------
TRUST
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
TO SHAREHOLDERS
APRIL 30, 1995
[LOGO] ----------------------------------------
Distributor
A subsidiary of FEDERATED INVESTORS ----------------------------------
FEDERATED INVESTORS TOWER
PITTSBURGH, PA 15222-3779 ---------------------------------------------
[LOGO]
RECYCLED
PAPER
314190109
8010409 (6/95) ------------------------------
