- --------------------------------------------------------------------------------
FEDERATED
- --------------------------------------------------------------------------------
AGGRESSIVE
- --------------------------------------------------------------------------------
GROWTH
- --------------------------------------------------------------------------------
FUND
- --------------------------------------------------------------------------------
CLASS A, B AND C SHARES
SEMI-ANNUAL REPORT AND
SUPPLEMENT TO PROSPECTUS
DATED NOVEMBER 15, 1996
MAY 30, 1997
[LOGO] FEDERATED INVESTORS
------------------------
Federated Securities Corp., Distributor
------------------------
Cusip 314172875
Cusip 314172867 ------------------------
Cusip 314172859 [LOGO] RECYCLE
G02072-01 (5/97) ------------------------
FEDERATED AGGRESSIVE GROWTH FUND
(A PORTFOLIO OF FEDERATED EQUITY FUNDS)
CLASS A, B AND C SHARES
SEMI-ANNUAL REPORT AND SUPPLEMENT TO THE PROSPECTUS DATED NOVEMBER 15, 1996
A. Please insert the following "Financial Highlights" tables as pages 4, 5 and 6
of the Prospectus. In addition, please add the heading "Financial Highlights"
to the Table of Contents page.
FINANCIAL HIGHLIGHTS--CLASS A SHARES
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
PERIOD ENDED
(UNAUDITED)
APRIL 30, 1997(A)
-------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.00
- -----------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- -----------------------------------------------------------------------------------
Net investment income (0.03)
- -----------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments (0.76)
- ----------------------------------------------------------------------------------- ------------
Total from investment operations (0.79)
- ----------------------------------------------------------------------------------- ------------
LESS DISTRIBUTIONS
- -----------------------------------------------------------------------------------
Distributions from net investment income (0.01)
- ----------------------------------------------------------------------------------- ------------
NET ASSET VALUE, END OF PERIOD $ 9.20
- ----------------------------------------------------------------------------------- ------------
TOTAL RETURN (B) (7.93%)
- -----------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -----------------------------------------------------------------------------------
Expenses 1.71%*
- -----------------------------------------------------------------------------------
Net investment income (0.39%)*
- -----------------------------------------------------------------------------------
Expense waiver/reimbursement (c) 16.62%*
- -----------------------------------------------------------------------------------
SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $933
- -----------------------------------------------------------------------------------
Average commission rate paid (d) $0.0402
- -----------------------------------------------------------------------------------
Portfolio turnover 67%
- -----------------------------------------------------------------------------------
</TABLE>
* Computed on an annualized basis.
(a) Reflects operations for the period from November 25, 1996 (date of
initial public investment) to April 30, 1997
(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.
(d) Represents total commissions paid on portfolio securities divided
by total portfolio shares purchased or sold on which commissions
were charged.
(See Notes which are an integral part of the Financial Statements)
FEDERATED AGGRESSIVE GROWTH FUND
FINANCIAL HIGHLIGHTS--CLASS B SHARES
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
PERIOD ENDED
(UNAUDITED)
APRIL 30, 1997(A)
-------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.00
- -------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- -------------------------------------------------------------------------
Net investment income (0.04)
- -------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments (0.76)
- ------------------------------------------------------------------------- ------------
Total from investment operations (0.80)
- ------------------------------------------------------------------------- ------------
LESS DISTRIBUTIONS
- -------------------------------------------------------------------------
Distributions from net investment income 0.00(b)
- ------------------------------------------------------------------------- ------------
NET ASSET VALUE, END OF PERIOD $ 9.20
- ------------------------------------------------------------------------- ------------
TOTAL RETURN (C) (7.96%)
- -------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -------------------------------------------------------------------------
Expenses 2.55%*
- -------------------------------------------------------------------------
Net investment income (1.59%)*
- -------------------------------------------------------------------------
Expense waiver/reimbursement (d) 17.04%*
- -------------------------------------------------------------------------
SUPPLEMENTAL DATA
- -------------------------------------------------------------------------
Net assets, end of period (000 omitted) $ 1,930
- -------------------------------------------------------------------------
Average commission rate paid (e) $0.0402
- -------------------------------------------------------------------------
Portfolio turnover 67%
- -------------------------------------------------------------------------
</TABLE>
* Computed on an annualized basis.
(a) Reflects operations for the period from November 25, 1996 (date of
initial public investment) to April 30, 1997
(b) Less than one cent per share.
(c) Based on net asset value, which does not reflect the sales charge
or contingent deferred sales charge, if applicable.
(d) This voluntary expense decrease is reflected in both the expense
and net investment income ratios shown above.
(e) Represents total commissions paid on portfolio securities divided
by total portfolio shares purchased or sold on which commissions
were charged.
(See Notes which are an integral part of the Financial Statements)
FEDERATED AGGRESSIVE GROWTH FUND
FINANCIAL HIGHLIGHTS--CLASS C SHARES
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
PERIOD ENDED
(UNAUDITED)
APRIL 30, 1997(A)
-------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.00
- -------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- -------------------------------------------------------------------------
Net investment income (0.06)
- -------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments (0.78)
- ------------------------------------------------------------------------- ------------
Total from investment operations (0.84)
- ------------------------------------------------------------------------- ------------
LESS DISTRIBUTIONS
- -------------------------------------------------------------------------
Distributions from net investment income 0.00(b)
- ------------------------------------------------------------------------- ------------
NET ASSET VALUE, END OF PERIOD $ 9.16
- ------------------------------------------------------------------------- ------------
TOTAL RETURN (C) (8.37%)
- -------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -------------------------------------------------------------------------
Expenses 2.59%*
- -------------------------------------------------------------------------
Net investment income (1.59%)*
- -------------------------------------------------------------------------
Expense waiver/reimbursement (d) 17.90%*
- -------------------------------------------------------------------------
SUPPLEMENTAL DATA
- -------------------------------------------------------------------------
Net assets, end of period (000 omitted) $136
- -------------------------------------------------------------------------
Average commission rate paid (e) $0.0402
- -------------------------------------------------------------------------
Portfolio turnover 67%
- -------------------------------------------------------------------------
</TABLE>
* Computed on an annualized basis.
(a) Reflects operations for the period from November 25, 1996 (date of
initial public investment) to April 30, 1997
(b) Less than one cent per share.
(c) Based on net asset value, which does not reflect the sales charge
or contingent deferred sales charge, if applicable.
(d) This voluntary expense decrease is reflected in both the expense
and net investment income ratios shown above.
(e) Represents total commissions paid on portfolio securities divided
by total portfolio shares purchased or sold on which commissions
were charged.
(See Notes which are an integral part of the Financial Statements)
B. Please insert the following financial statements after the section entitled
"Performance Information" on page 29 of the Prospectus. In addition, please
add the heading "Financial Statements" to the Table of Contents page after
the heading "Performance Information."
FEDERATED AGGRESSIVE GROWTH FUND
PORTFOLIO OF INVESTMENTS
APRIL 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- -------- -------------------------------------------------------------------- ----------
<C> <S> <C> <C>
COMMON STOCKS--95.8%
- ------------------------------------------------------------------------------------
BASIC INDUSTRY--4.4%
--------------------------------------------------------------------
400 Avery Dennison Corp. $ 14,700
--------------------------------------------------------------------
400 (a) Cytec Industries, Inc. 15,050
--------------------------------------------------------------------
500 Dekalb Genetics Corp., Class B 31,500
--------------------------------------------------------------------
800 (a) Fibreboard Corp. 29,400
--------------------------------------------------------------------
500 Fuller (H.B.) Co. 26,813
--------------------------------------------------------------------
1,600 Methanex Corp. 14,800
-------------------------------------------------------------------- ----------
Total 132,263
-------------------------------------------------------------------- ----------
CONSUMER DURABLES--3.4%
--------------------------------------------------------------------
1,800 (a) Equity Marketing, Inc. 31,500
--------------------------------------------------------------------
600 Ethan Allen Interiors, Inc. 26,550
--------------------------------------------------------------------
1,400 Excel Industries, Inc. 24,850
--------------------------------------------------------------------
1,200 (a) Furniture Brands International, Inc. 17,700
-------------------------------------------------------------------- ----------
Total 100,600
-------------------------------------------------------------------- ----------
CONSUMER NON-DURABLES--7.2%
--------------------------------------------------------------------
700 (a) Blyth Industries, Inc. 27,650
--------------------------------------------------------------------
1,000 Church and Dwight, Inc. 25,500
--------------------------------------------------------------------
500 (a) Fruit of the Loom, Inc., Class A 18,000
--------------------------------------------------------------------
400 Gucci Group NV, ADR 27,750
--------------------------------------------------------------------
400 Kimberly-Clark Corp. 20,500
--------------------------------------------------------------------
400 Liz Claiborne, Inc. 18,100
--------------------------------------------------------------------
1,000 (a) Nautica Enterprise, Inc. 22,125
--------------------------------------------------------------------
</TABLE>
FEDERATED AGGRESSIVE GROWTH FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- -------- -------------------------------------------------------------------- ----------
<C> <S> <C> <C>
COMMON STOCKS--CONTINUED
- ------------------------------------------------------------------------------------
CONSUMER NON-DURABLES--CONTINUED
--------------------------------------------------------------------
500 Nike, Inc., Class B $ 28,125
--------------------------------------------------------------------
2,000 (a) North Face, Inc. 28,250
-------------------------------------------------------------------- ----------
Total 216,000
-------------------------------------------------------------------- ----------
ENERGY MINERALS--2.5%
--------------------------------------------------------------------
400 Camco International, Inc. 17,750
--------------------------------------------------------------------
300 (a) Energy Ventures, Inc. 20,063
--------------------------------------------------------------------
900 (a) Marine Drilling Cos., Inc. 14,175
--------------------------------------------------------------------
500 (a) Reading & Bates Corp. 11,188
--------------------------------------------------------------------
300 (a) Seacor Holdings, Inc. 12,900
-------------------------------------------------------------------- ----------
Total 76,076
-------------------------------------------------------------------- ----------
FINANCE--14.4%
--------------------------------------------------------------------
1,850 Aames Financial Corp 28,444
--------------------------------------------------------------------
900 Ahmanson (H.F.) & Co. 34,313
--------------------------------------------------------------------
900 (a) Americredit Corp. 12,938
--------------------------------------------------------------------
300 Amsouth Bancorporation 15,825
--------------------------------------------------------------------
400 Astoria Financial Corp. 15,650
--------------------------------------------------------------------
600 Conseco, Inc. 24,825
--------------------------------------------------------------------
600 Deposit Guaranty Corp. 18,375
--------------------------------------------------------------------
600 Executive Risk, Inc. 27,150
--------------------------------------------------------------------
1,200 (a) FIRSTPLUS Financial Group, Inc. 26,550
--------------------------------------------------------------------
600 Federal Realty Investment Trust 15,450
--------------------------------------------------------------------
600 First Industrial Realty Trust 17,700
--------------------------------------------------------------------
600 General Growth Properties, Inc. 19,125
--------------------------------------------------------------------
1,000 (a) Golf Trust of America, Inc. 25,500
--------------------------------------------------------------------
300 Greenpoint Financial Corp. 16,613
--------------------------------------------------------------------
600 JDN Realty Corp. 16,800
--------------------------------------------------------------------
1,100 (a) Kilroy Realty Corp. 25,850
--------------------------------------------------------------------
600 Money Stores, Inc. 12,975
--------------------------------------------------------------------
</TABLE>
FEDERATED AGGRESSIVE GROWTH FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- -------- -------------------------------------------------------------------- ----------
<C> <S> <C> <C>
COMMON STOCKS--CONTINUED
- ------------------------------------------------------------------------------------
FINANCE--CONTINUED
--------------------------------------------------------------------
300 Providian Corp. $ 17,325
--------------------------------------------------------------------
600 Star Banc Corp. 25,500
--------------------------------------------------------------------
750 Synovus Financial Corp. 18,188
--------------------------------------------------------------------
300 Travelers Group, Inc. 16,613
-------------------------------------------------------------------- ----------
Total 431,709
-------------------------------------------------------------------- ----------
HEALTH CARE--10.0%
--------------------------------------------------------------------
350 (a) Agouron Pharmaceuticals, Inc. 22,400
--------------------------------------------------------------------
1,200 (a) BioChem Pharma, Inc. 21,581
--------------------------------------------------------------------
300 CRA Managed Care, Inc. 10,575
--------------------------------------------------------------------
1,600 (a) FPA Medical Management, Inc. 26,000
--------------------------------------------------------------------
600 HBO & Co. 32,100
--------------------------------------------------------------------
500 (a) Lincare Holdings, Inc. 19,625
--------------------------------------------------------------------
200 Merck & Co., Inc. 18,100
--------------------------------------------------------------------
1,600 (a) NABI, Inc. 9,600
--------------------------------------------------------------------
600 Omnicare, Inc. 14,625
--------------------------------------------------------------------
1,200 (a) Parexel International Corp. 33,600
--------------------------------------------------------------------
1,000 (a) Respironics, Inc. 18,625
--------------------------------------------------------------------
1,200 (a) Rotech Medical Corp. 18,900
--------------------------------------------------------------------
1,500 (a) Safeskin Corp. 33,563
--------------------------------------------------------------------
400 Teva Pharmaceutical Industries, Ltd., ADR 20,300
-------------------------------------------------------------------- ----------
Total 299,594
-------------------------------------------------------------------- ----------
PRODUCER MANUFACTURING--6.3%
--------------------------------------------------------------------
700 (a) American Power Conversion Corp. 13,475
--------------------------------------------------------------------
500 Belden, Inc. 15,375
--------------------------------------------------------------------
450 Diebold, Inc. 15,075
--------------------------------------------------------------------
1,200 (a) Lexmark Intl. Group, Class A 27,900
--------------------------------------------------------------------
1,000 Miller Herman, Inc. 32,375
--------------------------------------------------------------------
900 (a) Tower Automotive, Inc. 33,300
--------------------------------------------------------------------
</TABLE>
FEDERATED AGGRESSIVE GROWTH FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- -------- -------------------------------------------------------------------- ----------
<C> <S> <C> <C>
COMMON STOCKS--CONTINUED
- ------------------------------------------------------------------------------------
PRODUCER MANUFACTURING--CONTINUED
--------------------------------------------------------------------
800 (a) U.S. Filter Corp. $ 24,300
--------------------------------------------------------------------
500 (a) U.S. Office Products Co. 12,750
--------------------------------------------------------------------
600 Watsco, Inc. 14,925
-------------------------------------------------------------------- ----------
Total 189,475
-------------------------------------------------------------------- ----------
RETAIL TRADE--7.7%
--------------------------------------------------------------------
1,000 (a) Borders Group, Inc. 21,250
--------------------------------------------------------------------
1,000 (a) Buckle, Inc. 14,750
--------------------------------------------------------------------
700 (a) Cole National Corp., Class A 23,100
--------------------------------------------------------------------
1,100 (a) Finish Line, Inc., Class A 11,344
--------------------------------------------------------------------
1,600 (a) Genesco, Inc. 18,600
--------------------------------------------------------------------
1,600 (a) Just For Feet, Inc. 25,400
--------------------------------------------------------------------
1,200 Lands' End, Inc. 32,100
--------------------------------------------------------------------
900 (a) Pacific Sunwear of California 28,125
--------------------------------------------------------------------
427 (a) Safeway, Inc. 19,068
--------------------------------------------------------------------
600 Smith's Food & Drug Centers, Inc., Class B 20,100
--------------------------------------------------------------------
400 Tiffany & Co. 15,850
-------------------------------------------------------------------- ----------
Total 229,687
-------------------------------------------------------------------- ----------
SERVICES--7.4%
--------------------------------------------------------------------
1,200 (a) All American Communications, Inc. 14,850
--------------------------------------------------------------------
700 Amresco, Inc. 10,194
--------------------------------------------------------------------
800 (a) Boston Chicken, Inc. 19,100
--------------------------------------------------------------------
1,250 CKE Restaurants, Inc. 24,531
--------------------------------------------------------------------
800 (a) Consolidated Graphics, Inc. 19,500
--------------------------------------------------------------------
600 (a) Corestaff, Inc. 10,425
--------------------------------------------------------------------
900 G & K Services, Inc., Class A 26,100
--------------------------------------------------------------------
1,500 (a) Garden Fresh Restaurant Corp. 15,750
--------------------------------------------------------------------
600 Norrell Corp. 15,825
--------------------------------------------------------------------
1,800 (a) Philip Environmental, Inc. 28,350
--------------------------------------------------------------------
</TABLE>
FEDERATED AGGRESSIVE GROWTH FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- -------- -------------------------------------------------------------------- ----------
<C> <S> <C> <C>
COMMON STOCKS--CONTINUED
- ------------------------------------------------------------------------------------
SERVICES--CONTINUED
--------------------------------------------------------------------
1,000 (a) Renaissance Solutions, Inc. $ 21,750
--------------------------------------------------------------------
400 (a) Robert Half International, Inc. 15,700
-------------------------------------------------------------------- ----------
Total 222,075
-------------------------------------------------------------------- ----------
TECHNOLOGY--30.3%
--------------------------------------------------------------------
500 (a) ADC Telecommunications, Inc. 13,063
--------------------------------------------------------------------
700 Adobe System, Inc. 27,388
--------------------------------------------------------------------
400 (a) Altera Corp. 19,825
--------------------------------------------------------------------
1,100 Anadigics, Inc. 31,075
--------------------------------------------------------------------
600 (a) Applied Magnetics Corp. 15,075
--------------------------------------------------------------------
700 (a) Ascend Communications 32,025
--------------------------------------------------------------------
1,900 (a) BA Merchant Services, Inc., Class A 26,600
--------------------------------------------------------------------
400 (a) BMC Software, Inc. 17,300
--------------------------------------------------------------------
500 (a) Baan Co. NV 26,875
--------------------------------------------------------------------
300 (a) CBT Group PLC, ADR 14,588
--------------------------------------------------------------------
400 (a) Cadence Design Systems, Inc. 12,800
--------------------------------------------------------------------
1,100 (a) Cambridge Technology Partners, Inc. 29,288
--------------------------------------------------------------------
1,200 (a) Cognos, Inc. 30,450
--------------------------------------------------------------------
400 (a) Compaq Computer Corp. 34,150
--------------------------------------------------------------------
600 (a) Compuware Corp. 22,650
--------------------------------------------------------------------
500 (a) Comverse Technology, Inc. 19,625
--------------------------------------------------------------------
400 (a) Dell Computer Corp. 33,475
--------------------------------------------------------------------
400 (a) Dupont Photomasks, Inc. 19,150
--------------------------------------------------------------------
2,100 (a) Harmonic Lightwaves, Inc. 34,650
--------------------------------------------------------------------
200 Intel Corp. 30,625
--------------------------------------------------------------------
1,600 (a) Mastech Corp. 18,400
--------------------------------------------------------------------
800 (a) Micron Electronics, Inc. 16,300
--------------------------------------------------------------------
900 (a) National Semiconductor Corp. 22,500
--------------------------------------------------------------------
300 OY Nokia AB, Class A, ADR 19,388
--------------------------------------------------------------------
</TABLE>
FEDERATED AGGRESSIVE GROWTH FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- -------- -------------------------------------------------------------------- ----------
<C> <S> <C> <C>
COMMON STOCKS--CONTINUED
- ------------------------------------------------------------------------------------
TECHNOLOGY--CONTINUED
--------------------------------------------------------------------
1,000 (a) P-COM, Inc. $ 28,625
--------------------------------------------------------------------
1,200 (a) Pairgain Technologies, Inc. 31,200
--------------------------------------------------------------------
500 (a) Perceptron, Inc. 14,125
--------------------------------------------------------------------
400 Perkin-Elmer Corp. 29,050
--------------------------------------------------------------------
1,000 (a) Project Software & Development, Inc. 13,375
--------------------------------------------------------------------
700 (a) Proxim, Inc. 14,088
--------------------------------------------------------------------
1,000 (a) SPSS, Inc. 26,500
--------------------------------------------------------------------
600 (a) Sanmina Corp. 30,000
--------------------------------------------------------------------
1,400 (a) Scopus Technology, Inc. 37,450
--------------------------------------------------------------------
800 Storage Technology Corp. 28,100
--------------------------------------------------------------------
1,000 (a) Sun Microsystems, Inc. 28,813
--------------------------------------------------------------------
500 (a) Western Digital Corp. 30,813
--------------------------------------------------------------------
1,250 (a) Wind River Systems, Inc. 28,750
-------------------------------------------------------------------- ----------
Total 908,154
-------------------------------------------------------------------- ----------
TRANSPORTATION--1.4%
--------------------------------------------------------------------
300 (a) UAL Corp. 22,313
--------------------------------------------------------------------
1,100 (a) Yellow Corp. 21,175
-------------------------------------------------------------------- ----------
Total 43,488
-------------------------------------------------------------------- ----------
UTILITIES--0.8%
--------------------------------------------------------------------
1,000 (a) Premiere Technologies, Inc. 23,875
-------------------------------------------------------------------- ----------
TOTAL COMMON STOCKS (IDENTIFIED COST $2,925,804) 2,872,996
-------------------------------------------------------------------- ----------
</TABLE>
FEDERATED AGGRESSIVE GROWTH FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- -------------------------------------------------------------------- ----------
<C> <S> <C> <C>
(B) REPURCHASE AGREEMENT--7.2%
- --------------------------------------------------------------------------------------
$215,000 BT Securities Corporation, 5.43%, dated 4/30/1997, due 5/1/1997 (AT
AMORTIZED COST) 215,000
-------------------------------------------------------------------- ----------
TOTAL INVESTMENTS (IDENTIFIED COST $3,140,804)(C) $3,087,996
-------------------------------------------------------------------- ----------
</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
$3,140,804. The net unrealized depreciation of investments on a
federal tax basis amounts to $52,808 which is comprised of
$179,476 appreciation and $232,284 depreciation at April 30, 1997.
Note: The categories of investments are shown as a percentage of net assets
($2,999,359) at April 30, 1997.
The following acronyms are used throughout this portfolio:
<TABLE>
<S> <C>
ADR -- American Depositary Receipt
PLC -- Public Limited Company
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FEDERATED AGGRESSIVE GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- -------------------------------------------------------------------------------------------
Total investments in securities, at value (identified and tax cost $3,140,804) $3,087,996
- -------------------------------------------------------------------------------------------
Cash 445
- -------------------------------------------------------------------------------------------
Income receivable 431
- -------------------------------------------------------------------------------------------
Receivable for investments sold 6,384
- -------------------------------------------------------------------------------------------
Receivable for shares sold 26,558
- ------------------------------------------------------------------------------------------- ----------
Total assets 3,121,814
- -------------------------------------------------------------------------------------------
LIABILITIES:
- -------------------------------------------------------------------------------------------
Payable for investments purchased $97,564
- ---------------------------------------------------------------------------------
Accrued expenses 24,891
- --------------------------------------------------------------------------------- -------
Total liabilities 122,455
- ------------------------------------------------------------------------------------------- ----------
Net Assets for 326,217 shares outstanding $2,999,359
- ------------------------------------------------------------------------------------------- ----------
NET ASSETS CONSIST OF:
- -------------------------------------------------------------------------------------------
Paid in capital $3,207,161
- -------------------------------------------------------------------------------------------
Net unrealized depreciation of investments (52,808)
- -------------------------------------------------------------------------------------------
Accumulated net realized loss on investments (142,407)
- -------------------------------------------------------------------------------------------
Distributions in excess of net investment income (12,587)
- ------------------------------------------------------------------------------------------- ----------
Total Net Assets $2,999,359
- ------------------------------------------------------------------------------------------- ----------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PROCEEDS PER SHARE:
- -------------------------------------------------------------------------------------------
CLASS A SHARES:
- -------------------------------------------------------------------------------------------
Net Asset Value Per Share ($933,430 / 101,492 shares outstanding) $9.20
- ------------------------------------------------------------------------------------------- ----------
Offering Price Per Share (100/94.50 of $9.20)* $9.74
- ------------------------------------------------------------------------------------------- ----------
Redemption Proceeds Per Share $9.20
- ------------------------------------------------------------------------------------------- ----------
CLASS B SHARES:
- -------------------------------------------------------------------------------------------
Net Asset Value Per Share ($1,929,550 / 209,839 shares outstanding) $9.20
- ------------------------------------------------------------------------------------------- ----------
Offering Price Per Share $9.20
- ------------------------------------------------------------------------------------------- ----------
Redemption Proceeds Per Share (94.50/100 of $9.20)** $8.69
- ------------------------------------------------------------------------------------------- ----------
CLASS C SHARES:
- -------------------------------------------------------------------------------------------
Net Asset Value Per Share ($136,379 / 14,886 shares outstanding) $9.16
- ------------------------------------------------------------------------------------------- ----------
Offering Price Per Share $9.16
- ------------------------------------------------------------------------------------------- ----------
Redemption Proceeds Per Share (99.00/100 of $9.16)** $9.07
- ------------------------------------------------------------------------------------------- ----------
</TABLE>
* See "How to Purchase Shares" in the Prospectus.
** See "Contingent Deferred Sales Charge" in the Prospectus.
(See Notes which are an integral part of the Financial Statements)
FEDERATED AGGRESSIVE GROWTH FUND
STATEMENT OF OPERATIONS
PERIOD ENDED APRIL 30, 1997* (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME:
- ---------------------------------------------------------------------------------------------
Dividends $ 9,228
- ---------------------------------------------------------------------------------------------
Interest 3,939
- --------------------------------------------------------------------------------------------- ---------
Total income 13,167
- ---------------------------------------------------------------------------------------------
EXPENSES:
- --------------------------------------------------------------------------------
Investment advisory fee $ 11,364
- --------------------------------------------------------------------------------
Administrative personnel and services fee 82,609
- --------------------------------------------------------------------------------
Custodian fees 14,576
- --------------------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 21,891
- --------------------------------------------------------------------------------
Legal fees 1,119
- --------------------------------------------------------------------------------
Portfolio accounting fees 28,917
- --------------------------------------------------------------------------------
Distribution services fee--Class B Shares 3,487
- --------------------------------------------------------------------------------
Distribution services fee--Class C Shares 405
- --------------------------------------------------------------------------------
Shareholder services fee--Class A Shares 1,543
- --------------------------------------------------------------------------------
Shareholder services fee--Class B Shares 1,162
- --------------------------------------------------------------------------------
Shareholder services fee--Class C Shares 135
- --------------------------------------------------------------------------------
Share registration costs 27,866
- --------------------------------------------------------------------------------
Printing and postage 11,037
- --------------------------------------------------------------------------------
Insurance premiums 2,313
- --------------------------------------------------------------------------------
Taxes 2,313
- --------------------------------------------------------------------------------
Miscellaneous 4,563
- -------------------------------------------------------------------------------- ---------
Total expenses 215,300
- --------------------------------------------------------------------------------
Waivers and reimbursements--
- --------------------------------------------------------------------
Waiver of investment advisory fee $ (11,364)
- --------------------------------------------------------------------
Reimbursement of other operating expenses (180,112)
- -------------------------------------------------------------------- ---------
Total waivers and reimbursements (191,476)
- -------------------------------------------------------------------------------- ---------
Net expenses 23,824
- --------------------------------------------------------------------------------------------- ---------
Net operating loss (10,657)
- --------------------------------------------------------------------------------------------- ---------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
- ---------------------------------------------------------------------------------------------
Net realized loss on investments (142,407)
- ---------------------------------------------------------------------------------------------
Net change in unrealized depreciation of investments (52,808)
- --------------------------------------------------------------------------------------------- ---------
Net realized and unrealized loss on investments (195,215)
- --------------------------------------------------------------------------------------------- ---------
Change in net assets resulting from operations $ (205,872)
- --------------------------------------------------------------------------------------------- ---------
</TABLE>
* For the period from November 25, 1996 (date of initial public
investment) to April 30, 1997.
(See Notes which are an integral part of the Financial Statements)
FEDERATED AGGRESSIVE GROWTH FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERIOD ENDED
(UNAUDITED)
APRIL 30, 1997*
-----------------
<S> <C>
INCREASE (DECREASE) IN NET ASSETS:
- ---------------------------------------------------------------------------
OPERATIONS--
- ---------------------------------------------------------------------------
Net operating loss $ (10,657)
- ---------------------------------------------------------------------------
Net realized gain (loss) on investments ($142,407 net loss as computed for
federal tax purposes) (142,407)
- ---------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) (52,808)
- --------------------------------------------------------------------------- ---------------
Change in net assets resulting from operations (205,872)
- --------------------------------------------------------------------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS--
- ---------------------------------------------------------------------------
Distributions from net investment income
- ---------------------------------------------------------------------------
Class A Shares (1,722)
- ---------------------------------------------------------------------------
Class B Shares (165)
- ---------------------------------------------------------------------------
Class C Shares (43)
- --------------------------------------------------------------------------- ---------------
Change in net assets resulting from distributions to shareholders (1,930)
- --------------------------------------------------------------------------- ---------------
SHARE TRANSACTIONS--
- ---------------------------------------------------------------------------
Proceeds from sale of shares 6,061,015
- ---------------------------------------------------------------------------
Net asset value of shares issued to shareholders in payment of
distributions declared 391
- ---------------------------------------------------------------------------
Cost of shares redeemed (2,854,245)
- --------------------------------------------------------------------------- ---------------
Change in net assets resulting from share transactions 3,207,161
- --------------------------------------------------------------------------- ---------------
Change in net assets 2,999,359
- ---------------------------------------------------------------------------
NET ASSETS:
- ---------------------------------------------------------------------------
Beginning of period --
- --------------------------------------------------------------------------- ---------------
End of period $ 2,999,359
- --------------------------------------------------------------------------- ---------------
</TABLE>
* For the period from November 25, 1996 (date of initial public
investment) to April 30, 1997.
(See Notes which are an integral part of the Financial Statements)
FEDERATED AGGRESSIVE GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
(1) ORGANIZATION
Federated Equity Funds (the "Trust") is registered under the
Investment Company Act of 1940, as amended (the "Act") as an open-end,
management investment company. The Trust consists of four portfolios.
The financial statements included herein are only those of Federated
Aggressive Growth Fund (the "Fund"), a diversified portfolio. The
financial statements of the other portfolios are presented separately.
The assets of each portfolio are segregated and a shareholder's
interest is limited to the portfolio in which shares are held.
The Fund offers three classes of shares: Class A Shares, Class B
Shares and Class C Shares. The investment objective of the Fund is to
provide appreciation of capital.
(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 Trustees (the "Trustees"). 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.
FEDERATED AGGRESSIVE GROWTH FUND
- --------------------------------------------------------------------------------
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.
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) SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited
number of full and fractional shares of beneficial interest (without
par value) for each class of shares.
Transactions in shares were as follows:
<TABLE>
<CAPTION>
APRIL 30, 1997*
-----------------------
CLASS A SHARES SHARES AMOUNT
- --------------------------------------------------------------------- -------- -----------
<S> <C> <C>
Shares sold 369,553 $ 3,677,371
- ---------------------------------------------------------------------
Shares issued to shareholders in payment of distributions declared 19 184
- ---------------------------------------------------------------------
Shares redeemed (268,080) (2,686,314)
- --------------------------------------------------------------------- -------- -----------
Net change resulting from Class A share transactions 101,492 $ 991,241
- --------------------------------------------------------------------- -------- -----------
</TABLE>
<TABLE>
<CAPTION>
APRIL 30, 1997*
-----------------------
CLASS B SHARES SHARES AMOUNT
- --------------------------------------------------------------------- -------- -----------
<S> <C> <C>
Shares sold 215,310 $ 2,125,003
- ---------------------------------------------------------------------
Shares issued to shareholders in payment of distributions declared 17 164
- ---------------------------------------------------------------------
Shares redeemed (5,488) (54,594)
- --------------------------------------------------------------------- -------- -----------
Net change resulting from Class B share transactions 209,839 $ 2,070,573
- --------------------------------------------------------------------- -------- -----------
</TABLE>
FEDERATED AGGRESSIVE GROWTH FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
APRIL 30, 1997*
-----------------------
CLASS C SHARES SHARES AMOUNT
- --------------------------------------------------------------------- -------- -----------
<S> <C> <C>
Shares sold 26,163 $ 258,641
- ---------------------------------------------------------------------
Shares issued to shareholders in payment of distributions declared 4 43
- ---------------------------------------------------------------------
Shares redeemed (11,281) (113,337)
- --------------------------------------------------------------------- -------- -----------
Net change resulting from Class C share transactions 14,886 $ 145,347
- --------------------------------------------------------------------- -------- -----------
Net change resulting from share transactions 326,217 3,207,161
- --------------------------------------------------------------------- -------- -----------
</TABLE>
*For the period from November 25, 1996 (date of initial public
investment) to April 30, 1997.
(4) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE--Federated Management, the Fund's investment
adviser (the "Adviser"), receives for its services an annual
investment advisory fee equal to 1.00% of the Fund's average daily net
assets. The Adviser may voluntarily choose to waive any portion of its
fee and reimburse certain operating expenses of the Fund. The Adviser
can modify or terminate this voluntary waiver and reimbursement at any
time at its sole discretion.
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 reimburse 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 shares. The
Plan provides that the Fund may incur distribution expenses annually
according to the following schedule.
<TABLE>
<CAPTION>
SHARE CLASS NAME % OF AVG. DAILY NET ASSETS OF CLASS
- ------------------ --------------------------------------
<S> <C>
Class A Shares 0.25%
Class B Shares 0.75%
Class C Shares 0.75%
</TABLE>
The Class A Shares have no present intention of paying or accruing the
12b-1 fee during the fiscal year ending October 31, 1997.
SHAREHOLDER SERVICES FEE--Under the terms of a Shareholder Services
Agreement with Federated Shareholder Services ("FSS"), each class of
shares will pay FSS up to 0.25% of its average daily net assets for
FEDERATED AGGRESSIVE GROWTH FUND
- --------------------------------------------------------------------------------
the period. The fee paid to FSS is used to finance certain services for
shareholders and to maintain shareholder accounts.
TRANSFER AND DIVIDEND DISBURSING AGENT FEES AND EXPENSES--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.
ORGANIZATIONAL EXPENSES--Organizational expenses of $67,311 were borne
initially by the Adviser.
The Fund has agreed to reimburse the Adviser for the organizational
expenses during the five year period following the Fund's effective
date. For the period ended April 30, 1997, the Fund paid $0 pursuant
to this agreement.
GENERAL--Certain of the Officers and Trustees of the Trust are
Officers and Directors or Trustees of the above companies.
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities,
for the period ended April 30, 1997, were as follows:
<TABLE>
<S> <C>
- --------------------------------------------------------------------------------
PURCHASES $4,753,602
- -------------------------------------------------------------------------------- ----------
SALES $1,685,028
- -------------------------------------------------------------------------------- ----------
</TABLE>
<TABLE>
<S> <C>
TRUSTEES OFFICERS
- --------------------------------------------------------------------------------
John F. Donahue John F. Donahue
Thomas G. Bigley Chairman
John T. Conroy, Jr. Glen R. Johnson
William J. Copeland President
James E. Dowd J. Christopher Donahue
Lawrence D. Ellis, M.D. Executive Vice President
Edward L. Flaherty, Jr. Edward C. Gonzales
Peter E. Madden Executive Vice President
Gregor F. Meyer John W. McGonigle
John E. Murray, Jr. Executive Vice President,
Wesley W. Posvar Secretary and Treasurer
Marjorie P. Smuts Richard B. Fisher
Vice President
S. Elliott Cohan
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 the possible loss of principal.
This report is authorized for distribution to prospective investors
only when preceded or accompanied by the fund's prospectus which
contains facts concerning its objective and policies, management fees,
expenses and other information.
FEDERATED AGGRESSIVE GROWTH FUND
Class A Shares
Class B Shares
Class C Shares
(A Portfolio of Federated Equity Funds)
Supplement to Statement of Additional Information dated November 15, 1996
A. Please delete the last sentence of the section entitled "Portfolio
Turnover" on page 4 of the Statement of Additional Information and
replace it with the following two sentences.
"For the period from November 25, 1996 (date of
initial public investment) to April 30, 1997, the Fund's
portfolio turnover rate was 67%."
B. Please insert the following directly after the section entitled
"Federated Equity Funds Management" which begins on page 8 of
the Statement of Additional Information. "Fund Ownership
Officers and Directors own less than 1% of the Fund's
outstanding shares.
As of May 7, 1997, the following shareholders of record owned
5% or more of the outstanding Class A Shares of the Fund: BHC
Securities Inc., Philadelphia, Pennsylvania, owned approximately
9,722.1440 shares (9.46%); Randall and Barbara Russell,
Pittsburgh, Pennsylvania, owned approximately 7,238.2450 shares
(7.04%); Donaldson Lufkin Jenrette, Jersey City, New Jersey,
owned approximately 7,028.3490 (6.84%); and Edward D. Jones &
Co. F/A/O Ruth Bartle, Maryland Heights, Missouri, owned
approximately 5,263.1580 (5.12%).
As of May 7, 1997, the following shareholders of record owned
5% or more of the outstanding Class C Shares of the Fund: State
Street Bank & Trust Custodian for the IRA Rollover of Dale E.
Stitzel, Hamilton, Ohio, owned approximately 2,527.8060 shares
(16.78%); State Street Bank & Trust Custodian for the IRA
Rollover of Robert L. Hoffman, Hamilton, Ohio, owned
approximately 1,503.8400 shares (9.98%); MLPF&S for the Sole
Benefit of Its Customers, Jacksonville, Florida, owned
approximately 1,156.0000 shares (7.67%); and Edward D. Jones &
Co. F/A/O Sidney J. Miles, Maryland Heights, Missouri owned
approximately 753.5330 shares (5.00%)."
C. Please delete the section entitled "Trustees Compensation" on page 12
of the Statement of Additional Information and replace with the following.
"Trustees Compensation
<TABLE>
<CAPTION>
Aggregate
Name, Compensation
Position With the From the Total Compensation Paid
Trust Trust*# From Fund Complex+
<S> <C> <C>
John F. Donahue $0 $0 for the Trust and 56 other investment
Chairman and Trustee companies in the Fund Complex
Thomas G. Bigley $1,312.97 $108,725 for the Trust and 56 other investment
Trustee companies in the Fund Complex
John T. Conroy, Jr. $1,439.95 $119,615 for the Trust and 56 other investment
Trustee companies in the Fund Complex
William J. Copeland $1,439.95 $119,615 for the Trust and 56 other investment
Trustee companies in the Fund Complex
James E. Dowd $1,439.95 $119,615 for the Trust and 56 other investment
Trustee companies in the Fund Complex
Lawrence D. Ellis, M. D. $1,312.97 $108,725 for the Trust and 56 other investment
Trustee companies in the Fund Complex
Edward L. Flaherty, Jr. $1,439.95 $119,615 for the Trust and 56 other investment
Trustee companies in the Fund Complex
Peter E. Madden $1,312.97 $108,725 for the Trust and 56 other investment
Trustee companies in the Fund Complex
Gregor F. Meyer $1,312.97 $108,725 for the Trust and 56 other investment
Trustee companies in the Fund Complex
John E. Murray, Jr. $1,312.97 $108,725 for the Trust and 56 other investment
Trustee companies in the Fund Complex
Wesley W. Posvar $1,312.97 $108,725 for the Trust and 56 other investment
Trustee companies in the Fund Complex
Marjorie P. Smuts $1,312.97 $108,725 for the Trust and 56 other investment
Trustee companies in the Fund Complex
</TABLE>
* Information is furnished for the fiscal year ended October 31, 1996.
# The aggregate compensation is provided for the Trust which is
comprised of 4 portfolios.
+ The information is provided for the last calendar year."
D. Please insert the following as the second paragraph of the section
entitled "Advisory Fees" which begins on page 13 of the Statement of
Additional Information.
"For the period from November 25, 1996 (date of initial public
investment) to April 30, 1997, the Adviser earned management and
advisory fees of $11,364, all of which was waived."
E. Please insert the following as the final paragraph of the section
entitled "Brokerage Transactions" on page 13 of the Statement of
Additional Information. "For the period from November 25, 1996
(date of initial public investment) to April 30, 1997, the Fund
paid brokerage commissions in the amount of $6,889."
F. Please insert the following information as a second paragraph under
the sub-section entitled "Fund Administration"
on page 13 of the Statement of Additional Information.
"From the Fund's effective date, November 18, 1996 to
April 30, 1997, the Fund incurred costs for administrative
services of $82,609."
<PAGE>
G. Please add the following as the fourth paragraph of the sub-section
entitled "Distribution Plan and Shareholder
Services Agreement" on page 14 of the Statement of Additional
Information.
"For the period from November 25, 1996 (date of initial
public investment) to April 30, 1997, payments in the amount
of $3,487 and $405 on behalf of Class B Shares and Class C Shares,
respectively, were made pursuant to the Plan. In addition, for the same
period, the Fund paid shareholder services fees for Class A Shares,
Class B Shares, and Class C Shares in the amounts of $1,543, $1,162 and
$135, respectively."
H. Please insert the following as the third paragraph of the section
entitled "Total Return" on page 16 of the Statement of Additional Information.
"The Fund's cumulative total return for the Class A Shares
for the period between November 25, 1996 (date of initial
public investment) and April 30, 1997 was -12.97%.
The Fund's cumulative total return for the Class B Shares for
the period between November 25, 1996 (date of initial
public investment) and April 30, 1997 was -13.06%.
The Fund's cumulative total return for the Class C Shares for
the period between November 25, 1996 (date of initial
public investment) and April 30, 1997 was -9.27%."
May 30, 1997
FEDERATED INVESTORS
Federated Securities Corp., Distributor
Cusip 314172875
Cusip 314172867
Cusip 314172859
G02072-02(5/97)
