- --------------------------------------------------------------------------------
MINI-CAP
- --------------------------------------------------------------------------------
FUND
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- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
TO SHAREHOLDERS
APRIL 30, 1994
FEDERATED SECURITIES CORP.
(LOGO)Z
- ---------------------------------------------
Distributor
A subsidiary of FEDERATED INVESTORS
FEDERATED INVESTORS TOWER
PITTSBURGH, PA 15222-3779
3052012 (6/94)
PRESIDENT'S MESSAGE
- --------------------------------------------------------------------------------
Dear Shareholder:
I am pleased to present the Semi-Annual Report to Shareholders of Federated
Mini-Cap Fund for the six-month period from November 1, 1995 through April 30,
1996. The report begins with an investment review, followed by the fund's
portfolio and its financial statements.
Federated Mini-Cap Fund is designed to perform in sync with the Russell 2000
Index, an unmanaged index consisting of the 2,000 common stocks of companies
whose market capitalization generally falls just below the top 1,000 large and
mid-cap companies. The average market capitalization of these companies is $288
million.**
In an extremely positive environment for small-company stocks, the fund produced
a total return of 17.40% over the six-month period.* Contributing to those
returns were dividend income of $0.09 per share, capital gains of $0.72 per
share, and a 10% increase in net asset value. Between the first and last day of
the report period, the fund's net assets rose from $132.4 million to $160.3
million.
Thank you for participating in this efficient approach to pursuing the growth
potential of small-cap stocks. As always, we invite your comments and
suggestions.
Sincerely,
LOGO
Glen R. Johnson
President
June 15, 1996
*Performance quoted represents past performance and is not indicative of future
results. Investment return and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than their
original cost.
** The Mini-Cap Fund seeks investment results that correspond to the aggregate
price and total return performance of the Russell 2000(R) Small Stock Index.
The Russell 2000(R) Small Stock Index is a trademark/service mark of the
Frank Russell Company. RussellTM is a trademark of the Frank Russell Company.
The Fund is neither affiliated with nor promoted, sponsored, sold, or
endorsed by the Frank Russell Company. Its only relationship to the Fund is
the licensing of the use of the Index.
INVESTMENT REVIEW
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The fund's total return for the 6 months ended April 30, 1996, was 17.40%.* The
target index, the Russell 2000 Index (the "Index"), had a total return of 18.40%
during the period.** The fund's performance varied from the Index due to
transaction costs, administrative expenses, and holdings of stock index futures
contracts, which are held to enhance fund liquidity. It is important to note
that transactions costs for small company stocks are much higher than that for
large company stocks due to illiquidity factors, i.e., there are sometimes very
few buyers and sellers of small company stocks.
The U.S. stock market continued its steady climb in the last six months. The
market appears to be driven by strong cash flows into equity mutual funds and
mostly favorable economic news, despite a recent increase in interest rates.
Some investment strategists are warning that strong cash flows from sources such
as 401(k) plans have pushed stock prices to unsustainable levels, making the
market subject to a significant price correction. However, most investors have
shrugged off these warnings and continue to believe the stock market will
provide strong investment returns over the long-term.
During the last six months, energy, technology and health care were among the
strongest performing sectors while consumer staples, utilities, and financial
services were among the worst performing sectors in the Index.
During the period, management also lowered the target range for the fund's
liquidity position, i.e., the percentage of the fund held in cash and stock
index futures contracts. It is intended that this policy change reduce the level
of short-term capital gains, which are generated from rolling (regularly buying
and selling) stock index futures in a rising market. Since the fund must
distribute all capital gains at the end of the calendar year, management hopes
this policy change will then reduce the tax liabilities of those investors
subject to income taxes.
* Performance quoted represents past performance and is not indicative of
future results. Investment return and principal value will fluctuate, so that
an investor's shares, when redeemed, may be worth more or less than their
original cost.
** This index is unmanaged. Actual investments may not be made in an index.
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
PORTFOLIO OF INVESTMENTS
APRIL 30, 1996 (UNAUDITED)
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<TABLE>
<CAPTION>
SHARES VALUE
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<S> <C> <C> <C>
*COMMON STOCKS--86.0%
- -----------------------------------------------------------------------------------
BASIC INDUSTRY--5.7%
----------------------------------------------------------------
903 AEP Industries, Inc. $ 22,575
----------------------------------------------------------------
4,800 AK Steel Holding Corp. 183,600
----------------------------------------------------------------
3,800 AMCOL International Corp. 44,175
----------------------------------------------------------------
5,900 Albany International Corp., Class A 126,850
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800 Alico, Inc. 18,000
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13,500 Amax Gold, Inc. 89,437
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500 American Filtrona Corp. 15,812
----------------------------------------------------------------
700 Ameron, Inc. 27,650
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4,200 Aptargroup, Inc. 158,025
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19,100 Armco, Inc. 107,437
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5,900 BMC Industries, Inc. 157,825
----------------------------------------------------------------
6,400 Birmingham Steel Corp. 102,400
----------------------------------------------------------------
1,000 Blessings Corp. 12,625
----------------------------------------------------------------
3,900 Brady (W.H.) Co. 74,100
----------------------------------------------------------------
3,600 Brush Wellman, Inc. 67,500
----------------------------------------------------------------
15,400 (a) Burlington Industries, Inc. 179,025
----------------------------------------------------------------
4,300 CalMat Co. 74,712
----------------------------------------------------------------
6,800 (a) Calgene, Inc. 38,250
----------------------------------------------------------------
6,400 Calgon Carbon Corp. 80,000
----------------------------------------------------------------
1,500 Cambrex Corp. 64,500
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4,700 Caraustar Industries, Inc. 118,675
----------------------------------------------------------------
3,900 Carpenter Technology Corp. 146,737
----------------------------------------------------------------
2,900 (a) CasTech Aluminum Group, Inc. 42,412
----------------------------------------------------------------
2,800 Centex Construction Products, Inc. 40,250
----------------------------------------------------------------
1,300 Chaparral Steel Co. 19,662
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</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
BASIC INDUSTRY--CONTINUED
----------------------------------------------------------------
1,900 Chemed Corp. $ 71,487
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5,600 Chesapeake Corp. 161,700
----------------------------------------------------------------
2,700 Cleveland Cliffs, Inc. 112,725
----------------------------------------------------------------
4,800 Coeur d'Alene Mines Corp. 95,400
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15,900 (a) Collins & Aikman Corp. 111,300
----------------------------------------------------------------
5,500 (a) Cone Mills Corp. 62,562
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3,800 (a) Cytec Industries, Inc. 314,925
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800 Dekalb Genetics Corp., Class B 66,200
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4,399 Delta & Pine Land Co. 196,305
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3,700 Delta Woodside Industries, Inc. 20,812
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5,700 Dexter Corp. 153,187
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5,200 Donaldson Company, Inc. 136,500
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3,000 (a) Dravo Corp. 41,250
----------------------------------------------------------------
2,000 Elcor Corp. 48,000
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2,000 (a) Embrace Systems Corp. 1,000
----------------------------------------------------------------
1,700 (a) Energy Conversion Devices, Inc. 46,750
----------------------------------------------------------------
1,500 FMC Gold Co. 9,562
----------------------------------------------------------------
1,000 Fab Industries, Inc. 27,750
----------------------------------------------------------------
1,900 (a) Fibreboard Corp. 48,687
----------------------------------------------------------------
2,000 Fieldcrest Cannon, Inc. 42,750
----------------------------------------------------------------
4,800 First Mississippi Corp. 111,600
----------------------------------------------------------------
5,058 (a) FirstMiss Gold, Inc. 155,533
----------------------------------------------------------------
1,700 Florida Rock Industries, Inc. 42,925
----------------------------------------------------------------
3,300 (a) Foamex International, Inc. 40,837
----------------------------------------------------------------
3,300 Fuller (H.B.) Co. 108,075
----------------------------------------------------------------
2,000 Furon Co. 43,500
----------------------------------------------------------------
2,600 (a) Galey & Lord, Inc. 28,275
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
BASIC INDUSTRY--CONTINUED
----------------------------------------------------------------
12,600 (a) Gaylord Container Corp. $ 129,150
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1,500 (a) Gelman Sciences, Inc. 39,937
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2,800 (a) Geneva Steel Co., Class A 18,550
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5,800 Geon Co. 153,700
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2,200 (a) Giant Cement Holding, Inc. 28,875
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3,200 Greif Brothers Corp., Class A 84,000
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2,500 Guilford Mills, Inc. 60,625
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11,900 Hecla Mining Co. 92,225
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2,300 Imco Recycling, Inc. 50,025
----------------------------------------------------------------
2,763 (a) Intermagnetics General Corp. 44,207
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1,700 (a) International Imaging Materials, Inc. 32,300
----------------------------------------------------------------
3,300 (a) Ionics, Inc. 158,400
----------------------------------------------------------------
4,000 J&L Specialty Steel, Inc. 72,500
----------------------------------------------------------------
2,300 Kaiser Aluminum Corp. 30,762
----------------------------------------------------------------
7,600 Lawter International, Inc. 82,650
----------------------------------------------------------------
1,400 Learonal 36,400
----------------------------------------------------------------
1,350 Lesco, Inc. 19,575
----------------------------------------------------------------
4,250 Lilly Industrial, Inc., Class A 61,625
----------------------------------------------------------------
1,100 Liqui Box Corp. 33,000
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2,700 Lone Star Industries, Inc. 96,862
----------------------------------------------------------------
4,000 (a) Lone Star Technologies, Inc. 49,000
----------------------------------------------------------------
3,300 Lukens, Inc. 87,037
----------------------------------------------------------------
3,900 (a) Lydall, Inc. 91,650
----------------------------------------------------------------
500 MacDermid, Inc. 34,500
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3,400 (a) Material Sciences Corp. 54,400
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1,300 (a) Maxxam, Inc. 59,150
----------------------------------------------------------------
2,200 (a) McWhorter Technologies, Inc. 39,600
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
BASIC INDUSTRY--CONTINUED
----------------------------------------------------------------
3,800 Medusa Corp. $ 111,150
----------------------------------------------------------------
2,100 (a) Mercer International, Inc. 47,512
----------------------------------------------------------------
2,000 Midwest Grain Products, Inc. 24,000
----------------------------------------------------------------
1,300 Mine Safety Appliances Co. 59,475
----------------------------------------------------------------
5,300 Minerals Technologies, Inc. 204,050
----------------------------------------------------------------
4,600 Mississippi Chemical Corp. 92,575
----------------------------------------------------------------
1,640 Mosinee Paper Corp. 53,095
----------------------------------------------------------------
3,900 (a) Mycogen Corp. 67,275
----------------------------------------------------------------
900 NCH, Corp. 52,200
----------------------------------------------------------------
4,800 (a) National Steel Corp., Class B 65,400
----------------------------------------------------------------
4,500 (a) Northwestern Steel & Wire Co. 30,375
----------------------------------------------------------------
2,600 O'Sullivan Corp. 29,250
----------------------------------------------------------------
2,800 OM Group, Inc. 106,750
----------------------------------------------------------------
1,300 Oil-Dri Corp. of America 17,712
----------------------------------------------------------------
3,700 Oregon Steel Mills 58,737
----------------------------------------------------------------
2,150 (a) Osmonics, Inc. 44,612
----------------------------------------------------------------
3,946 (a) Paxar Corp. 68,561
----------------------------------------------------------------
1,200 Penwest Ltd. 22,500
----------------------------------------------------------------
1,100 Petrolite Corp. 34,100
----------------------------------------------------------------
3,950 Pittway Corp., Class A 188,612
----------------------------------------------------------------
3,000 Pope & Talbot, Inc. 45,375
----------------------------------------------------------------
900 Puerto Rican Cement Co., Inc. 29,025
----------------------------------------------------------------
2,000 Quaker Chemical Corp. 26,000
----------------------------------------------------------------
3,000 Quanex Corp. 66,000
----------------------------------------------------------------
1,800 Republic Gypsum Co. 24,975
----------------------------------------------------------------
4,200 Rexene Corp. 54,075
----------------------------------------------------------------
7,200 Rock-Tenn Co. 126,000
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
BASIC INDUSTRY--CONTINUED
----------------------------------------------------------------
2,300 Rouge Steel Co., Class A $ 51,462
----------------------------------------------------------------
2,800 (a) Royal Gold, Inc. 29,225
----------------------------------------------------------------
1,100 Schnitzer Steel Industries, Inc., Class A 29,150
----------------------------------------------------------------
1,600 Sealright Co., Inc. 22,000
----------------------------------------------------------------
3,500 (a) Shorewood Packaging Corp. 60,375
----------------------------------------------------------------
3,900 Southdown, Inc. 91,650
----------------------------------------------------------------
5,200 Spartech Corp. 52,650
----------------------------------------------------------------
1,600 Stepen Chemical Co. 31,800
----------------------------------------------------------------
8,700 Sterling Chemicals, Inc. 98,962
----------------------------------------------------------------
3,300 (a) Stillwater Mining Co. 79,200
----------------------------------------------------------------
2,000 (a) Stimsonite Corp. 18,000
----------------------------------------------------------------
43,400 (a) Sunshine Mining Co. 70,525
----------------------------------------------------------------
2,000 Tejon Ranch Co. 36,500
----------------------------------------------------------------
2,300 Texas Industries, Inc. 147,200
----------------------------------------------------------------
900 Tremont Corp. 33,187
----------------------------------------------------------------
1,200 Tuscarora, Inc. 29,250
----------------------------------------------------------------
2,500 (a) U.S. Can Corp. 42,812
----------------------------------------------------------------
5,400 (a) Uniroyal Chemical Corp. 63,450
----------------------------------------------------------------
2,400 Universal Forest Products, Inc. 23,100
----------------------------------------------------------------
700 (a) Vallen Corp. 14,350
----------------------------------------------------------------
1,300 WCI Steel, Inc. 6,175
----------------------------------------------------------------
4,900 (a) WHX Corp. 56,350
----------------------------------------------------------------
6,675 Wausau Paper Mills Co. 153,525
----------------------------------------------------------------
8,400 Weirton Steel Corp. 34,650
----------------------------------------------------------------
4,200 (a) WestPoint Stevens, Inc. 88,200
---------------------------------------------------------------- ------------
Total 9,165,675
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</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
CONSUMER DURABLES--3.3%
----------------------------------------------------------------
3,100 (a) 3DO Co. $ 28,288
----------------------------------------------------------------
2,517 Anthony Industries, Inc. 71,735
----------------------------------------------------------------
2,300 Apogee Enterprises, Inc. 60,375
----------------------------------------------------------------
6,650 Arctco, Inc. 64,006
----------------------------------------------------------------
2,100 Armor All Products Corp. 32,681
----------------------------------------------------------------
3,600 (a) Atari Corp. 17,100
----------------------------------------------------------------
5,200 (a) Autotote Corp. 16,575
----------------------------------------------------------------
1,500 (a) Avatar Holdings, Inc. 57,750
----------------------------------------------------------------
700 Barnes Group, Inc. 32,463
----------------------------------------------------------------
3,200 Bassett Furniture Industries, Inc. 82,400
----------------------------------------------------------------
1,300 (a) Beazer Homes USA, Inc. 20,800
----------------------------------------------------------------
3,300 CLARCOR, Inc. 65,175
----------------------------------------------------------------
1,000 (a) Cannondale Corp. 22,250
----------------------------------------------------------------
3,200 Carlisle Cos., Inc. 148,800
----------------------------------------------------------------
3,600 (a) Champion Enterprises, Inc. 136,800
----------------------------------------------------------------
1,300 (a) Chromcraft Revington, Inc. 30,225
----------------------------------------------------------------
2,500 (a) Cincinnati Microwave, Inc. 8,281
----------------------------------------------------------------
900 (a) Congoleum Corp. 8,325
----------------------------------------------------------------
1,300 Continental Homes Holding Corp. 29,738
----------------------------------------------------------------
2,800 Cross (A.T.) Co., Class A 42,000
----------------------------------------------------------------
1,500 Crown Crafts, Inc. 15,188
----------------------------------------------------------------
2,828 (a) D. R. Horton, Inc. 28,280
----------------------------------------------------------------
3,600 Ekco Group, Inc. 22,050
----------------------------------------------------------------
3,200 (a) Ethan Allen Interiors, Inc. 83,200
----------------------------------------------------------------
4,000 Exide Corp. 112,500
----------------------------------------------------------------
1,430 Falcon Products, Inc. 23,238
----------------------------------------------------------------
9,000 Fedders Corp. 57,375
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
CONSUMER DURABLES--CONTINUED
----------------------------------------------------------------
5,400 (a) First Alert, Inc. $ 35,775
----------------------------------------------------------------
1,300 (a) First Team Sports, Inc. 19,581
----------------------------------------------------------------
800 (a) Fossil, Inc. 10,400
----------------------------------------------------------------
11,300 (a) Furniture Brands International, Inc. 111,588
----------------------------------------------------------------
3,120 Harman International Industries, Inc. 147,420
----------------------------------------------------------------
3,600 (a) Hovnanian Enterprises, Inc., Class A 24,750
----------------------------------------------------------------
3,000 Huffy Corp. 39,375
----------------------------------------------------------------
2,100 (a) ITI Technologies, Inc. 58,013
----------------------------------------------------------------
1,100 (a) Johnson Worldwide Associates, Inc., Class A 20,350
----------------------------------------------------------------
6,500 Kaufman & Broad Homes Corp. 91,813
----------------------------------------------------------------
1,566 LADD Furniture, Inc. 16,443
----------------------------------------------------------------
2,900 La-Z Boy Chair Co. 85,913
----------------------------------------------------------------
5,400 Lennar Corp. 135,000
----------------------------------------------------------------
2,900 Libbey, Inc. 67,425
----------------------------------------------------------------
1,282 (a) Lifetime Hoan Corp. 13,301
----------------------------------------------------------------
4,100 (a) Lo-Jack Corp. 52,275
----------------------------------------------------------------
3,800 M.D.C. Holdings, Inc. 26,600
----------------------------------------------------------------
2,000 Matthews International Corp., Class A 56,000
----------------------------------------------------------------
1,700 (a) Mikasa, Inc. 20,188
----------------------------------------------------------------
4,500 (a) Mohawk Industries, Inc. 65,813
----------------------------------------------------------------
2,847 Myers Industries, Inc. 51,602
----------------------------------------------------------------
3,000 (a) NVR, Inc. 30,375
----------------------------------------------------------------
1,300 National Presto Industries, Inc. 51,025
----------------------------------------------------------------
3,800 (a) O'Sullivan Industries Holdings, Inc. 27,075
----------------------------------------------------------------
5,200 Oakwood Homes Corp. 232,050
----------------------------------------------------------------
2,100 Oneida Ltd. 36,225
----------------------------------------------------------------
4,700 Outboard Marine Corp. 92,825
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
CONSUMER DURABLES--CONTINUED
----------------------------------------------------------------
1,100 Pillowtex Corp. $ 13,750
----------------------------------------------------------------
10,000 (a) Presley Cos., Class A 16,250
----------------------------------------------------------------
4,300 Pulte Corp. 113,950
----------------------------------------------------------------
2,099 (a) Recoton Corp. 39,881
----------------------------------------------------------------
3,200 (a) Redman Industries, Inc. 64,400
----------------------------------------------------------------
2,300 Rival Co. 53,475
----------------------------------------------------------------
9,200 (a) Roadmaster Industries, Inc. 20,700
----------------------------------------------------------------
2,100 Russ Berrie & Co., Inc. 33,600
----------------------------------------------------------------
3,100 Ryland Group, Inc. 51,150
----------------------------------------------------------------
2,500 SPX Corp. 57,500
----------------------------------------------------------------
800 (a) Safety 1st, Inc. 12,600
----------------------------------------------------------------
2,700 (a) Samsonite Corp. 49,950
----------------------------------------------------------------
1,900 (a) Schuler Homes, Inc. 13,538
----------------------------------------------------------------
4,200 (a) Scotts Co. 72,450
----------------------------------------------------------------
4,100 (a) Sierra On-Line, Inc. 160,925
----------------------------------------------------------------
2,200 Skyline Corp. 53,900
----------------------------------------------------------------
6,000 (a) Sola International, Inc. 196,500
----------------------------------------------------------------
4,700 (a) Spectrum Holobyte, Inc. 33,488
----------------------------------------------------------------
1,800 Standard Motor Products, Inc. 30,600
----------------------------------------------------------------
5,800 Standard Pacific Corp. 36,975
----------------------------------------------------------------
4,300 Stanhome, Inc. 126,850
----------------------------------------------------------------
3,600 Stant Corp. 36,900
----------------------------------------------------------------
1,600 Starrett (L.S.) Co., Class A 40,200
----------------------------------------------------------------
2,200 Sturm Ruger & Co., Inc. 88,825
----------------------------------------------------------------
1,300 (a) Syratech Corp. 35,750
----------------------------------------------------------------
5,650 (a) TBC Corp. 43,788
----------------------------------------------------------------
1,200 Thor Industries, Inc. 22,950
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
CONSUMER DURABLES--CONTINUED
----------------------------------------------------------------
4,200 (a) Toll Brothers, Inc. $ 68,250
----------------------------------------------------------------
9,300 Topps Co. 53,475
----------------------------------------------------------------
2,900 Toro Co. 92,438
----------------------------------------------------------------
3,800 (a) Toy Biz, Inc., Class A 77,425
----------------------------------------------------------------
7,800 Tyco Toys, Inc. 43,875
----------------------------------------------------------------
2,701 (a) U.S. Home Corp. 67,187
----------------------------------------------------------------
1,500 WD 40 Co. 69,750
----------------------------------------------------------------
3,900 Webb (Del) Corp. 69,713
----------------------------------------------------------------
3,800 Windmere Corp. 39,900
----------------------------------------------------------------
3,100 Winnebago Industries, Inc. 26,350
----------------------------------------------------------------
1,950 Wynns International, Inc. 52,894
----------------------------------------------------------------
3,000 X-Rite, Inc. 52,500
----------------------------------------------------------------
6,313 (a) Zenith Electronics Corp. 59,184
---------------------------------------------------------------- ------------
Total 5,230,584
---------------------------------------------------------------- ------------
CONSUMER NON-DURABLES--2.8%
----------------------------------------------------------------
2,700 (a) American Safety Razor Co. 28,350
----------------------------------------------------------------
4,300 Authentic Fitness Corp. 102,663
----------------------------------------------------------------
2,855 Block Drug, Inc., Class A 107,776
----------------------------------------------------------------
4,200 (a) Blyth Industries, Inc. 166,950
----------------------------------------------------------------
800 Bridgford Foods Corp. 6,800
----------------------------------------------------------------
3,800 Brown Group, Inc. 60,800
----------------------------------------------------------------
1,400 (a) Bush Boake Allen, Inc. 37,800
----------------------------------------------------------------
3,200 (a) Canandaigua Wine Co., Inc., Class B 100,800
----------------------------------------------------------------
1,800 (a) Chic by H.I.S., Inc. 12,375
----------------------------------------------------------------
6,800 Chiquita Brands International 99,450
----------------------------------------------------------------
3,900 Church and Dwight, Inc. 85,800
----------------------------------------------------------------
1,000 Coca-Cola Bottling Co. 33,250
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
CONSUMER NON-DURABLES--CONTINUED
----------------------------------------------------------------
3,800 (a) Converse, Inc. $ 17,100
----------------------------------------------------------------
8,900 Coors Adolph Co., Class B 169,100
----------------------------------------------------------------
500 Culbro Corp. 26,688
----------------------------------------------------------------
7,250 Dimon, Inc. 123,250
----------------------------------------------------------------
2,400 (a) Donnkenny, Inc. 47,700
----------------------------------------------------------------
2,500 Dreyers Grand Ice Cream, Inc. 86,875
----------------------------------------------------------------
200 Farmer Brothers Co. 26,400
----------------------------------------------------------------
13,350 Flowers Industries, Inc. 178,556
----------------------------------------------------------------
2,800 (a) FoodBrands America, Inc. 48,300
----------------------------------------------------------------
3,600 Gibson Greetings, Inc. 50,850
----------------------------------------------------------------
1,000 GoodMark Foods, Inc. 16,125
----------------------------------------------------------------
1,350 (a) Guest Supply, Inc. 20,588
----------------------------------------------------------------
5,800 (a) Gymboree Corp. 150,075
----------------------------------------------------------------
1,500 Haggar Corp. 23,063
----------------------------------------------------------------
5,500 Hartmarx Corp. 30,250
----------------------------------------------------------------
100 (a) Helene Curtis Industries, Inc. 7,000
----------------------------------------------------------------
2,800 Herbalife International, Inc. 38,150
----------------------------------------------------------------
5,600 Hudson Foods, Inc., Class A 74,200
----------------------------------------------------------------
4,600 Hydron Technologies, Inc. 14,088
----------------------------------------------------------------
3,700 International Multifoods Corp. 69,838
----------------------------------------------------------------
4,700 Interstate Bakeries Corp. 111,625
----------------------------------------------------------------
1,500 (a) J & J Snack Foods Corp. 18,375
----------------------------------------------------------------
1,850 (a) Just For Feet, Inc. 88,569
----------------------------------------------------------------
4,300 Justin Industries, Inc. 55,363
----------------------------------------------------------------
4,700 Kellwood Co. 76,375
----------------------------------------------------------------
1,400 (a) Kenneth Cole Productions, Inc., Class A 28,000
----------------------------------------------------------------
3,600 Lance, Inc. 56,925
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
CONSUMER NON-DURABLES--CONTINUED
----------------------------------------------------------------
2,700 Michael Foods, Inc. $ 29,363
----------------------------------------------------------------
1,200 (a) Mondavi Robert Corp., Class A 33,000
----------------------------------------------------------------
1,700 Morningstar Group, Inc. 17,000
----------------------------------------------------------------
3,400 (a) NBTY, Inc. 32,938
----------------------------------------------------------------
3,174 Natures Sunshine Products, Inc. 79,350
----------------------------------------------------------------
4,100 (a) Nautica Enterprise, Inc. 190,650
----------------------------------------------------------------
1,300 (a) Norton McNaughton, Inc. 12,675
----------------------------------------------------------------
2,600 OshKosh B'Gosh, Inc., Class A 39,000
----------------------------------------------------------------
1,600 Oxford Industries, Inc. 28,000
----------------------------------------------------------------
2,700 (a) Paragon Trade Brands, Inc. 63,113
----------------------------------------------------------------
5,300 Phillips Van Heusen Corp. 70,225
----------------------------------------------------------------
900 Pilgrims Pride Corp. 6,075
----------------------------------------------------------------
5,400 (a) Playtex Products, Inc. 47,250
----------------------------------------------------------------
1,300 (a) Quiksilver, Inc. 49,400
----------------------------------------------------------------
7,000 (a) Ralcorp Holdings, Inc. 154,000
----------------------------------------------------------------
3,600 Riviana Foods, Inc. 66,600
----------------------------------------------------------------
1,600 Sanderson Farms, Inc. 18,300
----------------------------------------------------------------
5,000 Savannah Foods & Industries, Inc. 54,375
----------------------------------------------------------------
100 Seaboard Corp. 21,300
----------------------------------------------------------------
2,800 (a) Smithfield Foods, Inc. 82,600
----------------------------------------------------------------
6,800 Smucker (J.M.) Co., Class A 143,650
----------------------------------------------------------------
1,600 St. John Knits, Inc. 95,000
----------------------------------------------------------------
1,367 Standard Commercial Corp. 11,961
----------------------------------------------------------------
2,000 (a) Starter Corp. 19,250
----------------------------------------------------------------
11,100 Stride Rite Corp. 106,838
----------------------------------------------------------------
2,900 (a) Thermolase Corp. 96,063
----------------------------------------------------------------
800 Thorn Apple Valley, Inc. 10,300
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
CONSUMER NON-DURABLES--CONTINUED
----------------------------------------------------------------
1,700 (a) Timberland Co., Class A $ 37,613
----------------------------------------------------------------
4,425 Tootsie Roll Industries, Inc. 157,096
----------------------------------------------------------------
6,700 Tultex Corp. 36,013
----------------------------------------------------------------
1,800 Unitog Co. 50,625
----------------------------------------------------------------
3,550 WLR Foods, Inc. 42,822
----------------------------------------------------------------
4,225 Wolverine World Wide, Inc. 130,447
---------------------------------------------------------------- ------------
Total 4,529,134
---------------------------------------------------------------- ------------
ENERGY MINERALS--1.6%
----------------------------------------------------------------
1,900 (a) Addington Resources, Inc. 26,125
----------------------------------------------------------------
1,500 Ashland Coal, Inc. 34,875
----------------------------------------------------------------
5,870 (a) Barrett Resources 162,893
----------------------------------------------------------------
2,200 (a) Belden & Blake Corp. 44,550
----------------------------------------------------------------
5,600 (a) Benton Oil & Gas Co. 98,000
----------------------------------------------------------------
3,500 Berry Petroleum Co., Class A 42,875
----------------------------------------------------------------
4,100 (a) Box Energy Corp., Class B 39,463
----------------------------------------------------------------
3,200 (a) Brown Tom, Inc. 49,600
----------------------------------------------------------------
5,100 Cabot Oil & Gas Corp., Class A 84,150
----------------------------------------------------------------
1,600 (a) Cairn Energy USA, Inc. 19,800
----------------------------------------------------------------
1,850 (a) Chesapeake Energy Corp. 130,888
----------------------------------------------------------------
3,500 Cross Timbers Oil Co. 70,000
----------------------------------------------------------------
1,500 Crown Center Petroleum Corp., Class A 29,063
----------------------------------------------------------------
5,000 Devon Energy Corp. 127,500
----------------------------------------------------------------
1,300 (a) Flores & Rucks, Inc. 27,138
----------------------------------------------------------------
1,500 Getty Petroleum Corp. 21,375
----------------------------------------------------------------
6,600 (a) Global Natural Resources, Inc. 95,700
----------------------------------------------------------------
2,400 (a) HS Resources, Inc. 31,500
----------------------------------------------------------------
11,500 (a) Harken Energy Corp. 33,781
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
ENERGY MINERALS--CONTINUED
----------------------------------------------------------------
700 Holly Corp. $ 18,900
----------------------------------------------------------------
700 (a) Hondo Oil & Gas Co. 9,713
----------------------------------------------------------------
2,200 KCS Energy, Inc. 49,775
----------------------------------------------------------------
1,800 (a) Louis Dreyfus Natural Gas Corp. 22,950
----------------------------------------------------------------
14,400 (a) Mesa, Inc. 55,800
----------------------------------------------------------------
4,000 (a) Newfield Exploration Co. 137,000
----------------------------------------------------------------
2,000 (a) Nuevo Energy Co. 56,500
----------------------------------------------------------------
8,200 Parker & Parsley Petroleum Co. 201,925
----------------------------------------------------------------
3,000 Phoenix Resource Cos., Inc. 76,500
----------------------------------------------------------------
3,400 (a) Plains Resources, Inc. 39,525
----------------------------------------------------------------
7,700 Quaker State Corp. 121,275
----------------------------------------------------------------
1,600 Rogers Corp. 40,200
----------------------------------------------------------------
5,900 Snyder Oil Corp. 53,100
----------------------------------------------------------------
2,000 St. Mary Land & Exploration Co. 32,250
----------------------------------------------------------------
2,000 (a) Stone Energy Corp. 36,000
----------------------------------------------------------------
1,800 (a) Tatham Offshore, Inc. 2,025
----------------------------------------------------------------
5,500 (a) Tesoro Petroleum Corp. 60,500
----------------------------------------------------------------
3,100 (a) Texas Meridian Resources Co. 32,550
----------------------------------------------------------------
2,200 (a) Tide West Oil Co. 35,200
----------------------------------------------------------------
6,209 (a) United Meridian Corp. 192,479
----------------------------------------------------------------
3,100 Vintage Petroleum, Inc. 75,563
----------------------------------------------------------------
6,100 (a) Wainoco Oil Corp. 23,638
----------------------------------------------------------------
2,000 Wiser Oil Co. 27,000
----------------------------------------------------------------
3,400 Zeigler Coal Holding Co. 50,150
---------------------------------------------------------------- ------------
Total 2,619,794
---------------------------------------------------------------- ------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
FINANCE--18.8%
----------------------------------------------------------------
1,501 1st Source Corp. $ 34,523
----------------------------------------------------------------
8,800 20th Century Industries 137,500
----------------------------------------------------------------
300 (a) AMERCO 6,600
----------------------------------------------------------------
1,600 Aaron Rents, Inc. 44,400
----------------------------------------------------------------
2,800 (a) Acceptance Insurance Cos., Inc. 43,750
----------------------------------------------------------------
3,300 Acordia, Inc. 104,775
----------------------------------------------------------------
3,240 Albank Financial Corp. 86,670
----------------------------------------------------------------
2,900 Alex Brown, Inc. 156,962
----------------------------------------------------------------
2,700 Alexander Haagen Properties, Inc. 31,050
----------------------------------------------------------------
800 (a) Alexander's, Inc. 59,100
----------------------------------------------------------------
4,500 Alfa Corp. 57,375
----------------------------------------------------------------
3,000 Allied Capital Commercial 58,125
----------------------------------------------------------------
1,300 Allied Group, Inc. 46,638
----------------------------------------------------------------
2,300 AmVestors Financial Corp. 34,213
----------------------------------------------------------------
2,350 Amcore Financial, Inc. 47,000
----------------------------------------------------------------
1,747 American Annuity Group, Inc. 21,837
----------------------------------------------------------------
4,500 American Bankers Insurance Group, Inc. 177,750
----------------------------------------------------------------
2,400 American Federal Bank, FSB SC 37,800
----------------------------------------------------------------
500 American Financial Enterprises 12,250
----------------------------------------------------------------
4,900 American Health Properties, Inc. 102,287
----------------------------------------------------------------
1,900 American Heritage Life Investments 44,175
----------------------------------------------------------------
2,700 (a) American Travellers Corp. 52,650
----------------------------------------------------------------
6,500 (a) Americredit Corp. 93,437
----------------------------------------------------------------
900 Amli Residential Properties Trust 17,888
----------------------------------------------------------------
1,250 Anchor Bancorp Wisconsin, Inc. 41,562
----------------------------------------------------------------
2,700 Apartment Investment & Management Co., Class A 56,700
----------------------------------------------------------------
4,200 Argonaut Group, Inc. 130,200
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
FINANCE--CONTINUED
----------------------------------------------------------------
3,812 Associated Banc Corp. $ 148,668
----------------------------------------------------------------
2,300 Associated Estates Realty Corp. 46,287
----------------------------------------------------------------
2,400 Astoria Financial Corp. 127,800
----------------------------------------------------------------
7,200 Avalon Properties, Inc. 151,200
----------------------------------------------------------------
1,700 Avemco Corp. 26,350
----------------------------------------------------------------
1,600 BHC Financial, Inc. 22,200
----------------------------------------------------------------
848 (a) BOK Financial Corp. 18,232
----------------------------------------------------------------
3,697 BRE Properties, Inc., Class A 130,781
----------------------------------------------------------------
1,500 BSB Bancorp, Inc. 38,250
----------------------------------------------------------------
861 BT Financial Corp. 32,503
----------------------------------------------------------------
2,800 Baldwin & Lyons, Inc., Class B 41,300
----------------------------------------------------------------
4,860 Bancorpsouth, Inc. 119,070
----------------------------------------------------------------
1,350 Bank Granite Corp. 49,106
----------------------------------------------------------------
2,212 Bankers Corp. 37,604
----------------------------------------------------------------
1,500 Banknorth Group, Inc. 52,500
----------------------------------------------------------------
2,600 Bay Apartment Communities, Inc. 65,325
----------------------------------------------------------------
1,500 Bay View Capital Corp. 49,500
----------------------------------------------------------------
4,700 Beacon Properties Corp. 120,437
----------------------------------------------------------------
2,100 Bell Bancorp, Inc. 78,225
----------------------------------------------------------------
3,000 Berkley, W. R. Corp. 129,000
----------------------------------------------------------------
5,700 Berkshire Realty Co., Inc. 59,137
----------------------------------------------------------------
2,400 Blanch, E. W. Holdings, Inc. 49,500
----------------------------------------------------------------
1,400 Boston Bancorp 58,450
----------------------------------------------------------------
4,246 Bradley Real Estate, Inc. 62,628
----------------------------------------------------------------
1,250 Brenton Bank, Inc. 30,000
----------------------------------------------------------------
3,800 Burnham Pacific Properties, Inc. 40,375
----------------------------------------------------------------
4,900 CBL & Associates Properties, Inc. 101,062
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
FINANCE--CONTINUED
----------------------------------------------------------------
1,800 CBT Corp., KY $ 41,400
----------------------------------------------------------------
3,450 CCB Financial Corp. 178,106
----------------------------------------------------------------
2,600 CMAC Investment Corp. 145,600
----------------------------------------------------------------
4,174 CNB Bancshares, Inc. 119,481
----------------------------------------------------------------
1,100 CPB, Inc. 35,887
----------------------------------------------------------------
2,900 CRI Liquidating REIT 5,437
----------------------------------------------------------------
9,600 CWM Mortgage Holdings, Inc. 144,000
----------------------------------------------------------------
11,500 (a) Cal Fed Bancorp, Inc. 205,562
----------------------------------------------------------------
3,400 Cali Realty Corp. 77,775
----------------------------------------------------------------
2,200 California Bancshares, Inc. 65,450
----------------------------------------------------------------
3,300 Camden Property Trust 78,375
----------------------------------------------------------------
2,900 Capital Re Corp. 108,750
----------------------------------------------------------------
900 Capitol American Financial Corp. 21,712
----------------------------------------------------------------
1,210 Capitol Transamerica Corp. 24,502
----------------------------------------------------------------
5,400 Capstead Management Corp. 129,600
----------------------------------------------------------------
2,500 (a) Capsure Holdings Corp. 44,062
----------------------------------------------------------------
3,000 Carr Realty Corp. 72,750
----------------------------------------------------------------
17,100 (a) Catellus Development Corp. 156,037
----------------------------------------------------------------
2,900 Center Financial Corp. 50,025
----------------------------------------------------------------
2,400 CenterPoint Properties Corp. 57,900
----------------------------------------------------------------
5,100 Centura Banks, Inc. 186,150
----------------------------------------------------------------
10,470 Charter One Financial, Inc. 365,141
----------------------------------------------------------------
1,300 Chateau Properties, Inc. 28,762
----------------------------------------------------------------
2,000 Chelsea GCA Realty, Inc. 57,000
----------------------------------------------------------------
2,093 Chemical Financial Corp. 79,010
----------------------------------------------------------------
1,600 Chittenden Corp. 43,200
----------------------------------------------------------------
1,400 Citfed Bancorp, Inc. 48,650
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
FINANCE--CONTINUED
----------------------------------------------------------------
3,000 Citizens Bancorp $ 89,250
----------------------------------------------------------------
1,050 Citizens Bancshares, Inc. 32,550
----------------------------------------------------------------
2,600 Citizens Banking Corp. 75,400
----------------------------------------------------------------
1,600 Citizens Corp. 31,200
----------------------------------------------------------------
2,200 (a) Citizens, Inc., Class A 18,700
----------------------------------------------------------------
8,900 City National Corp. 125,712
----------------------------------------------------------------
4,200 Coast Savings Financial, Inc. 130,725
----------------------------------------------------------------
1,700 Cole Taylor Financial Group, Inc. 51,000
----------------------------------------------------------------
4,750 Collective Bancorp, Inc. 114,890
----------------------------------------------------------------
2,400 Colonial BancGroup, Inc. 81,300
----------------------------------------------------------------
4,000 Colonial Properties Trust 96,000
----------------------------------------------------------------
2,600 Columbus Realty Trust 51,025
----------------------------------------------------------------
2,478 Commerce Bancorp, Inc. 51,728
----------------------------------------------------------------
8,500 Commerce Group, Inc. 170,000
----------------------------------------------------------------
3,300 Commercial Federal Corp. 126,637
----------------------------------------------------------------
3,500 Commercial Net Lease Realty 45,500
----------------------------------------------------------------
900 Commonwealth Savings Bank 19,125
----------------------------------------------------------------
2,300 Community First Bankshares, Inc. 52,900
----------------------------------------------------------------
1,837 Corestates Financial Corp. 71,643
----------------------------------------------------------------
5,000 Cousins Properties, Inc. 95,000
----------------------------------------------------------------
5,200 Crawford & Co., Class B 84,500
----------------------------------------------------------------
4,700 Crescent Real Estate Equities, Inc. 159,212
----------------------------------------------------------------
7,100 Criimi Mae, Inc. 73,662
----------------------------------------------------------------
1,100 (a) Crop Growers Corp. 10,037
----------------------------------------------------------------
4,800 Crown American Realty Trust 36,000
----------------------------------------------------------------
2,620 Cullen Frost Bankers, Inc. 129,035
----------------------------------------------------------------
3,500 (a) Danielson Holding Corp. 28,875
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
FINANCE--CONTINUED
----------------------------------------------------------------
10,500 DeBartolo Realty Corp. $ 162,750
----------------------------------------------------------------
1,300 (a) Delphi Financial Group, Inc., Class A 35,750
----------------------------------------------------------------
4,600 Deposit Guaranty Corp. 220,800
----------------------------------------------------------------
3,800 Developers Diversified Realty 110,675
----------------------------------------------------------------
2,205 Downey Financial Corp. 47,683
----------------------------------------------------------------
5,600 Duke Realty Investments, Inc. 165,900
----------------------------------------------------------------
800 EMC Insurance Group, Inc. 11,200
----------------------------------------------------------------
1,700 Eaton Vance Corp. 51,850
----------------------------------------------------------------
1,550 (a) Electro Rent Corp. 38,556
----------------------------------------------------------------
2,900 Enhance Financial Services Group, Inc. 78,662
----------------------------------------------------------------
3,400 Equity Inns, Inc. 40,375
----------------------------------------------------------------
1,400 Essex Property Trust, Inc. 28,875
----------------------------------------------------------------
3,600 Evans Withycombe Residential, Inc. 77,850
----------------------------------------------------------------
2,900 Excel Realty Trust, Inc. 55,100
----------------------------------------------------------------
2,600 Executive Risk, Inc. 80,600
----------------------------------------------------------------
982 F & M Bancorp 26,514
----------------------------------------------------------------
1,200 F & M Bancorporation, Inc. 33,600
----------------------------------------------------------------
3,655 F & M National Corp. 58,480
----------------------------------------------------------------
1,300 FFY Financial Corp. 29,737
----------------------------------------------------------------
1,974 FNB Corp. 46,636
----------------------------------------------------------------
2,700 Factory Stores of America, Inc. 25,650
----------------------------------------------------------------
800 Farmers Capital Bank Corp. 33,200
----------------------------------------------------------------
7,500 Federal Realty Investment Trust 163,125
----------------------------------------------------------------
4,700 FelCor Suite Hotels, Inc. 136,887
----------------------------------------------------------------
2,282 Fidelity National Financial, Inc. 30,807
----------------------------------------------------------------
7,543 Financial Security Assurance Holdings Ltd. 203,661
----------------------------------------------------------------
1,480 Financial Trust Corp. 45,140
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
FINANCE--CONTINUED
----------------------------------------------------------------
2,100 First American Financial Corp. $ 57,750
----------------------------------------------------------------
2,100 First Citizens Bancshares, Inc., Class A 129,150
----------------------------------------------------------------
4,243 First Colorado Bancorp, Inc. 51,446
----------------------------------------------------------------
2,600 First Commerce Bancshares, Inc., Class A 60,450
----------------------------------------------------------------
5,937 First Commercial Corp. 187,015
----------------------------------------------------------------
5,000 First Commmonwealth Financial Corp. 96,250
----------------------------------------------------------------
2,816 First Financial Bancorp 92,224
----------------------------------------------------------------
1,100 First Financial Bankshares, Inc. 46,200
----------------------------------------------------------------
1,150 First Financial Corp. 36,800
----------------------------------------------------------------
6,900 First Financial Corp. Wisconsin 162,150
----------------------------------------------------------------
1,100 First Financial Holdings, Inc. 22,275
----------------------------------------------------------------
1,399 First Indiana Corp. 34,975
----------------------------------------------------------------
4,800 First Industrial Realty Trust 114,600
----------------------------------------------------------------
1,200 First Merchants Corp. 32,100
----------------------------------------------------------------
4,414 First Michigan Bank Corp. 131,322
----------------------------------------------------------------
2,400 First Midwest Bancorp, Inc. 69,600
----------------------------------------------------------------
4,100 First Union Real Estate Equity 29,725
----------------------------------------------------------------
900 First United Bancshares 36,900
----------------------------------------------------------------
1,702 First Western Bancorp, Inc. 44,464
----------------------------------------------------------------
3,400 FirstBank Puerto Rico 78,200
----------------------------------------------------------------
2,100 (a) FirstFed Financial Corp. 33,863
----------------------------------------------------------------
2,000 Firstbank Illinois Co. 62,500
----------------------------------------------------------------
7,900 Firstmerit Corp. 238,975
----------------------------------------------------------------
2,100 Foremost Corp. 112,350
----------------------------------------------------------------
900 Forest City Enterprises, Inc., Class A 33,975
----------------------------------------------------------------
2,550 Fort Wayne National Corp. 78,412
----------------------------------------------------------------
4,365 Fremont General Corp. 109,125
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
FINANCE--CONTINUED
----------------------------------------------------------------
1,905 Frontier Insurance Group, Inc. $ 61,436
----------------------------------------------------------------
7,251 Fulton Financial Corp. 145,024
----------------------------------------------------------------
1,800 Fund American Enterprises, Inc. 137,700
----------------------------------------------------------------
3,500 Gables Residential Trust 82,687
----------------------------------------------------------------
4,302 Gainsco, Inc. 50,010
----------------------------------------------------------------
3,400 Gallagher (Arthur J.) & Co. 110,500
----------------------------------------------------------------
300 (a) General Acceptance Corp. 2,925
----------------------------------------------------------------
5,700 General Growth Properties, Inc. 133,238
----------------------------------------------------------------
9,540 (a) Glendale Federal Bank 166,950
----------------------------------------------------------------
4,900 Glimcher Realty Trust 83,912
----------------------------------------------------------------
3,500 Great Financial Corp. 95,812
----------------------------------------------------------------
3,000 Greater New York Savings Bank 33,375
----------------------------------------------------------------
1,200 (a) Gryphon Holdings, Inc. 20,850
----------------------------------------------------------------
3,500 Guaranty National Corp. 56,000
----------------------------------------------------------------
1,900 (a) HCC Insurance Holdings, Inc. 111,150
----------------------------------------------------------------
4,272 HGI Realty, Inc. 87,576
----------------------------------------------------------------
1,600 Hancock Holding Co. 58,000
----------------------------------------------------------------
1,400 Harleysville Group, Inc. 37,800
----------------------------------------------------------------
1,355 Harleysville National Corp. 35,907
----------------------------------------------------------------
600 Harris Savings Bank, PA 10,050
----------------------------------------------------------------
2,600 Health Care REIT, Inc. 59,800
----------------------------------------------------------------
2,900 Healthcare Realty Trust, Inc. 64,887
----------------------------------------------------------------
1,100 Heritage Financial Services, Inc. 21,862
----------------------------------------------------------------
4,500 Highwoods Properties, Inc. 136,125
----------------------------------------------------------------
3,300 Hilb Rogal & Hamilton Co. 43,312
----------------------------------------------------------------
2,700 Home Beneficial Corp., Class B 71,550
----------------------------------------------------------------
5,527 Home Financial Corp. 76,687
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
FINANCE--CONTINUED
----------------------------------------------------------------
1,300 Homeland Bankshares Corp. $ 40,950
----------------------------------------------------------------
5,500 Horace Mann Educators Corp. 180,812
----------------------------------------------------------------
2,915 Hubco, Inc. 55,385
----------------------------------------------------------------
2,860 IBS Financial Corp. 39,325
----------------------------------------------------------------
5,800 IRT Property Co. 55,100
----------------------------------------------------------------
1,700 ISB Financial Corp. 26,350
----------------------------------------------------------------
2,274 Imperial Bancorp 55,144
----------------------------------------------------------------
2,427 (a) Imperial Credit Industries, Inc. 63,102
----------------------------------------------------------------
6,000 (a) Insignia Financial Group, Inc., Class A 132,000
----------------------------------------------------------------
3,200 Integon Corp. 61,600
----------------------------------------------------------------
2,700 Inter Regional Financial Group, Inc. 59,062
----------------------------------------------------------------
1,800 Interpool, Inc. 32,400
----------------------------------------------------------------
800 (a) Investment Technology Group, Inc. 13,400
----------------------------------------------------------------
91 (a) Investors Financial Services Corp., Class A 1,945
----------------------------------------------------------------
3,200 Irvine Apartment Communities, Inc. 64,000
----------------------------------------------------------------
700 Irwin Financial Corp. 29,268
----------------------------------------------------------------
2,600 JDN Realty Corp. 54,600
----------------------------------------------------------------
2,900 JP Realty, Inc. 57,637
----------------------------------------------------------------
1,900 JSB Financial, Inc. 64,362
----------------------------------------------------------------
2,200 Jefferies Group, Inc. 70,675
----------------------------------------------------------------
3,400 Jefferson Bankshares, Inc. 72,675
----------------------------------------------------------------
5,700 John Alden Financial Corp. 111,150
----------------------------------------------------------------
700 Kansas City Life Insurance Co. 37,625
----------------------------------------------------------------
5,666 Keystone Financial, Inc. 182,728
----------------------------------------------------------------
4,000 Koger Equity, Inc. 46,000
----------------------------------------------------------------
2,300 Kranzco Realty Trust 35,937
----------------------------------------------------------------
4,300 LTC Properties, Inc. 66,112
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
FINANCE--CONTINUED
----------------------------------------------------------------
2,000 Lawyers Title Corp. $ 36,000
----------------------------------------------------------------
2,300 Leader Financial Corp. 101,200
----------------------------------------------------------------
3,275 Legg Mason, Inc. 94,156
----------------------------------------------------------------
1,200 Liberty Bancorp, Inc.-Oklahoma 43,800
----------------------------------------------------------------
3,600 Liberty Corp. 114,300
----------------------------------------------------------------
600 Liberty Financial Cos., Inc. 19,950
----------------------------------------------------------------
6,600 Liberty Property Trust 136,125
----------------------------------------------------------------
2,500 Life Bancorp, Inc. 35,625
----------------------------------------------------------------
4,100 Life Partners Group, Inc. 85,587
----------------------------------------------------------------
2,000 Life Re Corp. 59,750
----------------------------------------------------------------
3,500 (a) Life USA Holdings, Inc. 31,937
----------------------------------------------------------------
6,000 Long Island Bancorp, Inc. 166,500
----------------------------------------------------------------
1,145 MAF Bancorp, Inc. 30,056
----------------------------------------------------------------
1,903 (a) MAIC Holdings, Inc. 61,609
----------------------------------------------------------------
2,600 MGI Properties, Inc. 44,850
----------------------------------------------------------------
1,600 MLF Bancorp, Inc. 38,600
----------------------------------------------------------------
2,100 MMI Companies, Inc. 58,537
----------------------------------------------------------------
2,300 Macerich Co. (The) 44,563
----------------------------------------------------------------
1,600 Magna Bancorp 58,000
----------------------------------------------------------------
6,500 Magna Group, Inc. 146,250
----------------------------------------------------------------
5,500 Manufactured Home Communities, Inc. 103,812
----------------------------------------------------------------
1,600 Mark Centers Trust 17,200
----------------------------------------------------------------
2,850 Mark Twain Bancshares, Inc. 107,587
----------------------------------------------------------------
900 (a) Markel Corp. 72,000
----------------------------------------------------------------
700 Maryland Federal Bancorp, Inc. 21,262
----------------------------------------------------------------
2,000 McDonald & Co. Investors, Inc. 41,000
----------------------------------------------------------------
1,500 McGrath Rentcorp. 30,562
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
FINANCE--CONTINUED
----------------------------------------------------------------
4,100 (a) Mego Financial Corp. $ 37,925
----------------------------------------------------------------
800 Merchants Bank New York 24,200
----------------------------------------------------------------
6,900 Merry Land and Investment Co. 144,900
----------------------------------------------------------------
1,200 Michigan Financial Corp. 34,200
----------------------------------------------------------------
4,425 Mid Am, Inc. 81,862
----------------------------------------------------------------
1,540 Mid American Bancorp 25,987
----------------------------------------------------------------
2,400 Mid-American Apartment Communities, Inc. 63,300
----------------------------------------------------------------
300 Midland Co. 14,362
----------------------------------------------------------------
3,200 Mills Corp. 56,400
----------------------------------------------------------------
6,675 Money Stores, Inc. 168,543
----------------------------------------------------------------
3,375 Morgan Keegan, Inc. 40,921
----------------------------------------------------------------
1,400 N.S. Bancorp, Inc. 57,750
----------------------------------------------------------------
4,500 NAC Re Corp. 147,375
----------------------------------------------------------------
1,923 NBT Bancorp, Inc. 32,210
----------------------------------------------------------------
2,860 (a) National Auto Credit, Inc. 40,755
----------------------------------------------------------------
900 National Bancorp Alaska, Inc. 53,550
----------------------------------------------------------------
2,280 National City Bancshares, Inc. 64,980
----------------------------------------------------------------
4,250 National Community Bancorp 129,625
----------------------------------------------------------------
2,400 National Golf Properties, Inc. 59,100
----------------------------------------------------------------
4,200 National Health Investors, Inc. 139,650
----------------------------------------------------------------
1,499 National Penn Bancshares, Inc. 38,037
----------------------------------------------------------------
3,900 National Re Holdings Corp. 138,450
----------------------------------------------------------------
500 (a) National Western Life Insurance Co., Class A 33,500
----------------------------------------------------------------
9,100 Nationwide Health Properties, Inc. 180,862
----------------------------------------------------------------
1,200 Navigators Group, Inc. 23,400
----------------------------------------------------------------
2,774 New York Bancorp, Inc. 67,963
----------------------------------------------------------------
3,400 North American Mortgage Co. 57,375
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
FINANCE--CONTINUED
----------------------------------------------------------------
5,800 North Fork Bancorp, Inc. $ 137,750
----------------------------------------------------------------
1,114 North Side Savings Bank 38,155
----------------------------------------------------------------
1,260 Norwest Corp. 45,517
----------------------------------------------------------------
1,200 Nymagic, Inc. 22,350
----------------------------------------------------------------
3,800 Oasis Residential, Inc. 85,500
----------------------------------------------------------------
4,300 (a) Olympic Financial Ltd. 95,675
----------------------------------------------------------------
1,400 Omega Financial Corp. 46,200
----------------------------------------------------------------
3,839 Omega Healthcare Investors 107,492
----------------------------------------------------------------
3,195 Onbancorp, Inc. 105,435
----------------------------------------------------------------
3,380 One Valley Bancorp West Virginia, Inc. 105,202
----------------------------------------------------------------
3,256 Orion Capital Corp. 144,485
----------------------------------------------------------------
1,300 (a) Oxford Resources Corp., Class A 38,350
----------------------------------------------------------------
4,000 PHH Corp. 227,500
----------------------------------------------------------------
2,000 PXRE Corp. 51,000
----------------------------------------------------------------
3,300 Paragon Group, Inc. 58,575
----------------------------------------------------------------
1,000 Park National Corp. 47,875
----------------------------------------------------------------
4,800 Penncorp Financial Group, Inc. 147,000
----------------------------------------------------------------
1,700 Pennsylvania Real Estate Investment Trust 34,425
----------------------------------------------------------------
1,943 People First Corp. 45,660
----------------------------------------------------------------
1,900 Peoples Bank Bridgeport 40,375
----------------------------------------------------------------
5,600 Peoples Heritage Financial Group 116,900
----------------------------------------------------------------
2,050 Pikeville National Corp. 43,050
----------------------------------------------------------------
700 Pinnacle Banc Group, Inc. 22,925
----------------------------------------------------------------
5,000 Pioneer Group, Inc. 133,750
----------------------------------------------------------------
3,900 Piper Jaffray Cos., Inc. 53,137
----------------------------------------------------------------
1,100 Poe & Brown, Inc. 26,812
----------------------------------------------------------------
5,000 Post Properties, Inc. 168,125
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
FINANCE--CONTINUED
----------------------------------------------------------------
5,200 Presidential Life Corp. $ 50,700
----------------------------------------------------------------
6,100 (a) Price Enterprises, Inc. 98,362
----------------------------------------------------------------
1,900 Price REIT, Inc. 55,100
----------------------------------------------------------------
2,000 Prime Residential, Inc. 36,250
----------------------------------------------------------------
6,700 Protective Life Corp. 232,825
----------------------------------------------------------------
2,000 Provident Bancorp, Inc. 102,000
----------------------------------------------------------------
1,444 Provident Bankshares Corp. 46,741
----------------------------------------------------------------
7,500 Public Storage, Inc. 153,750
----------------------------------------------------------------
1,250 Queens County Bancorp, Inc. 54,687
----------------------------------------------------------------
3,332 Quick & Reilly Group, Inc. 101,626
----------------------------------------------------------------
2,800 RCSB Financial, Inc. 65,800
----------------------------------------------------------------
5,500 RFS Hotel Investors, Inc. 94,875
----------------------------------------------------------------
1,300 RLI Corp. 29,575
----------------------------------------------------------------
2,800 ROC Communities, Inc. 66,150
----------------------------------------------------------------
6,400 RPS Realty Trust 29,600
----------------------------------------------------------------
2,950 Raymond James Financial, Inc. 66,743
----------------------------------------------------------------
5,300 Realty Income Corp. 107,325
----------------------------------------------------------------
1,500 Regency Realty Corp. 26,062
----------------------------------------------------------------
950 (a) Regional Acceptance Corp. 9,737
----------------------------------------------------------------
2,470 Regions Financial Corp. 113,928
----------------------------------------------------------------
3,900 Reinsurance Group of America 161,850
----------------------------------------------------------------
2,200 Reliance Bancorp, Inc. 33,275
----------------------------------------------------------------
9,200 Reliance Group Holdings, Inc. 73,600
----------------------------------------------------------------
3,821 Republic Bancorp, Inc. 43,463
----------------------------------------------------------------
1,956 (a) Resource Bancshares Mortgage Group, Inc. 24,695
----------------------------------------------------------------
4,500 Resource Mortgage Capital, Inc. 92,812
----------------------------------------------------------------
4,600 Riggs National Corp. 57,500
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
FINANCE--CONTINUED
----------------------------------------------------------------
1,800 River Forest Bancorp $ 54,000
----------------------------------------------------------------
8,600 Rockefeller Center Properties, Inc. 68,800
----------------------------------------------------------------
8,850 Rollins Truck Leasing Corp. 96,243
----------------------------------------------------------------
8,213 Roosevelt Financial Group, Inc. 158,100
----------------------------------------------------------------
2,600 S & T Bancorp, Inc. 78,650
----------------------------------------------------------------
2,700 Saul Centers, Inc. 38,812
----------------------------------------------------------------
2,300 Security Capital Corp. 133,975
----------------------------------------------------------------
1,900 Security Connecticut Corp. 49,875
----------------------------------------------------------------
3,400 Selective Insurance Group, Inc. 106,675
----------------------------------------------------------------
1,900 Silicon Valley Bancshares 44,175
----------------------------------------------------------------
2,300 Smith (Charles E.) Residential Realty, Inc. 53,475
----------------------------------------------------------------
4,700 South West Property Trust, Inc. 64,037
----------------------------------------------------------------
1,013 SouthTrust Corp. 27,477
----------------------------------------------------------------
10,008 Sovereign Bancorp, Inc. 111,339
----------------------------------------------------------------
6,700 Spieker Properties, Inc. 174,200
----------------------------------------------------------------
1,400 St. Francis Capital Corp. 36,750
----------------------------------------------------------------
4,344 St. Paul Bancorp, Inc. 105,885
----------------------------------------------------------------
4,200 Standard Financial, Inc. 62,475
----------------------------------------------------------------
900 State Auto Financial Corp. 21,825
----------------------------------------------------------------
1,250 Stewart Information Services Corp. 24,843
----------------------------------------------------------------
1,900 Storage Trust Realty 41,562
----------------------------------------------------------------
900 Student Loan Corp. 32,175
----------------------------------------------------------------
900 Suffolk Bancorp 28,350
----------------------------------------------------------------
1,000 Sumitomo Bank California 24,375
----------------------------------------------------------------
6,768 Summit Bancorp 240,264
----------------------------------------------------------------
3,700 Summit Properties, Inc. 70,762
----------------------------------------------------------------
2,300 Sun Communities, Inc. 60,087
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
FINANCE--CONTINUED
----------------------------------------------------------------
3,025 Susquehanna Bankshares, Inc. $ 86,968
----------------------------------------------------------------
2,000 T R Financial Corp. 53,000
----------------------------------------------------------------
1,200 (a) TFC Enterprises, Inc. 3,075
----------------------------------------------------------------
1,200 Tanger Factory Outlet Centers, Inc. 29,400
----------------------------------------------------------------
6,900 Taubman Centers, Inc. 68,137
----------------------------------------------------------------
3,600 The Trust Company of New Jersey 50,400
----------------------------------------------------------------
2,700 Thornburg Mortgage Asset Co. 42,862
----------------------------------------------------------------
825 Tompkins County Trust Co., Inc. 23,925
----------------------------------------------------------------
3,500 Town & Country Trust 49,000
----------------------------------------------------------------
2,500 (a) Trans Financial Bancorp, Inc. 39,687
----------------------------------------------------------------
1,600 Transnational Re Corp., Class A 33,600
----------------------------------------------------------------
1,400 Trenwick Group, Inc. 67,550
----------------------------------------------------------------
3,200 Trinet Corporate Realty Trust, Inc. 91,600
----------------------------------------------------------------
3,978 Trustco Bank Corp. 84,532
----------------------------------------------------------------
6,300 Trustmark Corp. 144,900
----------------------------------------------------------------
2,200 U.S. Trust Corp. 120,450
----------------------------------------------------------------
3,949 UMB Financial Corp. 147,100
----------------------------------------------------------------
3,300 UST Corp. 43,725
----------------------------------------------------------------
2,700 United Bankshares, Inc. 72,225
----------------------------------------------------------------
5,150 United Carolina Bancshares 123,600
----------------------------------------------------------------
5,480 United Companies Financial Corp. 175,360
----------------------------------------------------------------
13,200 United Dominion Realty Trust, Inc. 188,100
----------------------------------------------------------------
1,650 United Fire & Casualty Co. 49,293
----------------------------------------------------------------
6,900 (a) United Insurance Cos., Inc. 145,762
----------------------------------------------------------------
2,000 Universal Health Realty Trust, Inc. 38,250
----------------------------------------------------------------
3,000 Urban Shopping Centers, Inc. 67,500
----------------------------------------------------------------
1,200 Usbancorp, Inc. 41,400
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
FINANCE--CONTINUED
----------------------------------------------------------------
8,715 Valley National Bancorp $ 252,735
----------------------------------------------------------------
2,400 Vallicorp Holdings, Inc. 35,400
----------------------------------------------------------------
1,100 Vermont Financial Services Corp. 34,925
----------------------------------------------------------------
3,950 Vesta Insurance Group, Inc. 126,893
----------------------------------------------------------------
3,100 Walden Residential Properties, Inc. 65,487
----------------------------------------------------------------
2,300 Washington National Corp. 63,537
----------------------------------------------------------------
7,400 Washington Real Estate Investment Trust 119,325
----------------------------------------------------------------
1,577 Waterhouse Investment Services, Inc. 56,969
----------------------------------------------------------------
1,240 Webster Financial Corp. Waterbury 34,410
----------------------------------------------------------------
2,600 Weeks Corp. 63,375
----------------------------------------------------------------
3,850 Wellsford Residential Properties 83,737
----------------------------------------------------------------
1,600 Wesbanco, Inc. 42,800
----------------------------------------------------------------
2,200 WestAmerica Bancorporation 104,500
----------------------------------------------------------------
2,348 Westcorp, Inc. 46,080
----------------------------------------------------------------
3,800 Western Investment Real Estate Trust 42,750
----------------------------------------------------------------
7,600 Western National Corp. 137,750
----------------------------------------------------------------
1,200 (a) White River Corp. 46,800
----------------------------------------------------------------
3,325 Whitney Holding Corp. 101,412
----------------------------------------------------------------
600 Winthrop Resources Corp. 12,000
----------------------------------------------------------------
4,200 (a) World Acceptance Corp. 41,475
----------------------------------------------------------------
2,400 Zenith National Insurance Corp. 60,300
----------------------------------------------------------------
3,400 Zions Bancorp 253,300
---------------------------------------------------------------- ------------
Total 30,064,763
---------------------------------------------------------------- ------------
HEALTH CARE--9.9%
----------------------------------------------------------------
3,000 A. L. Pharma, Inc., Class A 73,500
----------------------------------------------------------------
4,166 ADAC Laboratories 68,217
----------------------------------------------------------------
6,500 (a) AMSCO International, Inc. 94,250
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
HEALTH CARE--CONTINUED
----------------------------------------------------------------
3,600 (a) ATS Medical, Inc. $ 36,000
----------------------------------------------------------------
2,850 (a) Access Health, Inc. 157,818
----------------------------------------------------------------
4,900 (a) Acuson Corp. 93,100
----------------------------------------------------------------
1,200 (a) Advanced Magnetics, Inc. 24,900
----------------------------------------------------------------
3,000 (a) Advanced Technology Labs, Inc. 97,500
----------------------------------------------------------------
7,900 (a) Advanced Tissue Sciences, Inc., Class A 135,287
----------------------------------------------------------------
2,100 (a) Pharmaceuticals, Inc. 85,050
----------------------------------------------------------------
5,800 (a) Alliance Pharmaceutical Corp. 105,125
----------------------------------------------------------------
5,200 (a) AmeriSource Health Corp., Class A 187,200
----------------------------------------------------------------
300 (a) American HomePatient, Inc. 12,675
----------------------------------------------------------------
3,200 (a) American Medical Response 118,400
----------------------------------------------------------------
4,900 (a) Amylin Pharmaceuticals, Inc. 46,550
----------------------------------------------------------------
1,200 (a) Aphton Corp. 23,100
----------------------------------------------------------------
2,100 (a) Apogee, Inc. 14,175
----------------------------------------------------------------
6,300 (a) Applied Bioscience International, Inc. 56,305
----------------------------------------------------------------
11,121 (a) Apria Healthcare Group, Inc. 378,113
----------------------------------------------------------------
1,200 (a) Arbor Health Care Co. 34,200
----------------------------------------------------------------
5,500 (a) Athena Neurosciences, Inc. 105,187
----------------------------------------------------------------
6,000 Ballard Medical Products 119,250
----------------------------------------------------------------
1,050 (a) Barr Laboratories, Inc. 30,843
----------------------------------------------------------------
1,800 Bindley Western Industries, Inc. 27,900
----------------------------------------------------------------
1,300 (a) Bio Rad Laboratories, Inc., Class A 60,450
----------------------------------------------------------------
9,700 (a) Bio-Technology General Corp. 64,262
----------------------------------------------------------------
7,200 (a) Biocontrol Technology, Inc. 15,975
----------------------------------------------------------------
1,300 Biocraft Laboratories, Inc. 26,487
----------------------------------------------------------------
2,800 (a) CNS, Inc. 55,300
----------------------------------------------------------------
2,600 (a) CONMED Corp. 77,350
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
HEALTH CARE--CONTINUED
----------------------------------------------------------------
5,100 Carter Wallace, Inc. $ 80,325
----------------------------------------------------------------
3,200 (a) Cellpro, Inc. 52,000
----------------------------------------------------------------
5,400 (a) Cephalon, Inc. 155,250
----------------------------------------------------------------
800 (a) Champion Healthcare Corp. 9,100
----------------------------------------------------------------
2,800 (a) Circon Corp. 40,250
----------------------------------------------------------------
1,100 (a) ClinTrials, Inc. 46,200
----------------------------------------------------------------
3,000 (a) Coastal Physician Group, Inc. 25,125
----------------------------------------------------------------
2,100 Collagen Corp. 43,050
----------------------------------------------------------------
6,100 (a) Columbia Laboratories, Inc. 75,487
----------------------------------------------------------------
4,600 (a) Community Health Systems, Inc. 199,525
----------------------------------------------------------------
9,800 Community Psychiatric Centers 90,650
----------------------------------------------------------------
1,751 (a) Copley Pharmaceutical 26,483
----------------------------------------------------------------
4,300 (a) Cor Therapeutics, Inc. 45,687
----------------------------------------------------------------
8,900 (a) Coram Healthcare Corp. 45,612
----------------------------------------------------------------
7,500 (a) Coventry Corp. 145,312
----------------------------------------------------------------
900 (a) CyCare System, Inc. 32,850
----------------------------------------------------------------
3,700 (a) Cygnus, Inc. 79,087
----------------------------------------------------------------
4,300 (a) Cytel Corp. 28,487
----------------------------------------------------------------
10,000 (a) Cytogen Corp. 76,875
----------------------------------------------------------------
3,500 (a) Daig Corp. 81,375
----------------------------------------------------------------
3,100 (a) Datascope Corp. 54,637
----------------------------------------------------------------
2,500 Diagnostic Products Corp. 104,687
----------------------------------------------------------------
3,300 (a) Dura Pharmaceuticals, Inc. 176,550
----------------------------------------------------------------
2,100 (a) Duramed Pharmaceuticals, Inc. 35,700
----------------------------------------------------------------
1,400 (a) EmCare Holdings, Inc. 39,200
----------------------------------------------------------------
1,900 (a) Empi, Inc. 36,575
----------------------------------------------------------------
4,370 (a) Enzo Biochem, Inc. 80,298
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
HEALTH CARE--CONTINUED
----------------------------------------------------------------
2,700 (a) Epitope, Inc. $ 49,950
----------------------------------------------------------------
1,300 (a) Faulding, Inc. 8,450
----------------------------------------------------------------
3,694 (a) Foxmeyer Health Corp. 72,032
----------------------------------------------------------------
1,800 (a) Fresenius USA, Inc. 36,000
----------------------------------------------------------------
1,800 (a) GMIS, Inc. 31,050
----------------------------------------------------------------
5,100 (a) Genesis Health Ventures, Inc. 151,087
----------------------------------------------------------------
6,500 (a) Gilead Sciences, Inc. 198,250
----------------------------------------------------------------
4,762 (a) GranCare, Inc. 85,715
----------------------------------------------------------------
2,400 (a) Gulf South Medical Supplies, Inc. 97,200
----------------------------------------------------------------
500 (a) HCIA, Inc. 27,000
----------------------------------------------------------------
1,239 (a) HEALTHSOUTH Rehabilitation 45,997
----------------------------------------------------------------
5,100 (a) Haemonetics Corp. 98,175
----------------------------------------------------------------
3,325 (a) Health Management Systems, Inc. 85,618
----------------------------------------------------------------
1,800 (a) Health Management, Inc. 9,675
----------------------------------------------------------------
491 (a) Healthdyne Technologies, Inc. 6,260
----------------------------------------------------------------
12,108 (a) Horizon/CMS Healthcare Corp. 160,430
----------------------------------------------------------------
2,400 (a) Human Genome Sciences, Inc. 95,400
----------------------------------------------------------------
1,800 (a) I-Stat Corp. 52,425
----------------------------------------------------------------
7,028 ICN Pharmaceuticals, Inc. 158,130
----------------------------------------------------------------
5,600 (a) ICOS Corp. 49,350
----------------------------------------------------------------
8,500 (a) IDEXX Laboratories, Inc. 378,250
----------------------------------------------------------------
1,600 (a) IGI, Inc. 10,700
----------------------------------------------------------------
3,700 (a) Immulogic Pharmaceutical Corp. 39,775
----------------------------------------------------------------
4,000 (a) Immunex Corp. 62,500
----------------------------------------------------------------
2,300 (a) InControl, Inc. 35,075
----------------------------------------------------------------
1,300 (a) Inbrand Corp. 34,450
----------------------------------------------------------------
1,500 (a) Incyte Pharmaceuticals, Inc. 48,187
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
HEALTH CARE--CONTINUED
----------------------------------------------------------------
3,000 (a) Inphynet Medical Management, Inc. $ 56,250
----------------------------------------------------------------
4,700 Integrated Health Services, Inc. 129,250
----------------------------------------------------------------
6,700 (a) Interneuron Pharmaceuticals 263,812
----------------------------------------------------------------
5,700 Invacare Corp. 148,200
----------------------------------------------------------------
5,800 (a) Isis Pharmaceuticals, Inc. 73,950
----------------------------------------------------------------
5,200 (a) Isolyser Co., Inc. 92,300
----------------------------------------------------------------
3,400 Kinetic Concepts, Inc. 50,150
----------------------------------------------------------------
500 Labone, Inc. 9,125
----------------------------------------------------------------
1,600 Life Technologies, Inc. 45,600
----------------------------------------------------------------
4,492 (a) Ligand Pharmaceuticals, Inc., Class B 65,695
----------------------------------------------------------------
6,300 (a) Lincare Holdings, Inc. 244,518
----------------------------------------------------------------
6,900 (a) Liposome Co., Inc. 169,050
----------------------------------------------------------------
3,900 (a) Living Centers of America, Inc. 144,300
----------------------------------------------------------------
1,300 (a) Lunar Corp. 54,925
----------------------------------------------------------------
6,600 (a) Magellan Health Services, Inc. 141,900
----------------------------------------------------------------
6,200 (a) Mariner Health Group, Inc. 105,400
----------------------------------------------------------------
2,700 (a) Matrix Pharmaceuticals, Inc. 70,200
----------------------------------------------------------------
4,100 (a) Maxicare Health Plans, Inc. 84,050
----------------------------------------------------------------
1,500 (a) Maxxim Medical, Inc. 26,625
----------------------------------------------------------------
3,366 (a) MedPartners/ Mullikin, Inc. 97,192
----------------------------------------------------------------
2,500 (a) Medco Research, Inc. 25,937
----------------------------------------------------------------
2,500 (a) MediSense, Inc. 112,500
----------------------------------------------------------------
1,800 (a) Medic Computer Systems, Inc. 168,300
----------------------------------------------------------------
2,700 (a) Medimmune, Inc. 44,550
----------------------------------------------------------------
5,000 Mentor Corp. 118,125
----------------------------------------------------------------
2,000 (a) Multicare Cos., Inc. 56,750
----------------------------------------------------------------
3,700 (a) NABI, Inc. 45,555
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
HEALTH CARE--CONTINUED
----------------------------------------------------------------
6,476 (a) Nellcor, Inc. $ 317,323
----------------------------------------------------------------
1,900 (a) NeoPath, Inc. 43,700
----------------------------------------------------------------
1,500 (a) Neurogen Corp. 42,937
----------------------------------------------------------------
5,000 (a) Nexstar Pharmaceuticals, Inc. 122,500
----------------------------------------------------------------
1,400 (a) Northfield Laboratories, Inc. 24,150
----------------------------------------------------------------
15,300 (a) NovaCare, Inc. 110,925
----------------------------------------------------------------
3,200 (a) Noven Pharmaceuticals, Inc. 39,200
----------------------------------------------------------------
4,500 Omnicare, Inc. 270,000
----------------------------------------------------------------
3,000 (a) Organogenesis, Inc. 52,875
----------------------------------------------------------------
12,300 (a) Ornda Healthcorp 338,250
----------------------------------------------------------------
1,800 (a) Orthodontic Centers of America, Inc. 71,100
----------------------------------------------------------------
1,800 (a) Ostex International, Inc. 29,250
----------------------------------------------------------------
6,175 Owens & Minor, Inc. 83,362
----------------------------------------------------------------
1,550 (a) PDT, Inc. 73,237
----------------------------------------------------------------
2,200 (a) PHP Healthcare Corp. 67,100
----------------------------------------------------------------
2,500 (a) Patterson Dental Co. 75,625
----------------------------------------------------------------
1,000 (a) Phamis, Inc. 14,750
----------------------------------------------------------------
2,400 (a) Pharmaceutical Marketing Services 27,000
----------------------------------------------------------------
3,800 (a) Pharmaceutical Resources, Inc. 30,875
----------------------------------------------------------------
8,275 (a) Phycor, Inc. 407,543
----------------------------------------------------------------
3,000 (a) Physician Computer Network, Inc. 33,750
----------------------------------------------------------------
1,900 (a) Physician Reliance Network, Inc. 82,175
----------------------------------------------------------------
6,600 (a) Physician Sales & Service, Inc. 178,200
----------------------------------------------------------------
1,500 (a) Physicians Health Services, Inc., Class A 49,125
----------------------------------------------------------------
2,900 (a) Protein Design Laboratories, Inc. 76,850
----------------------------------------------------------------
3,500 (a) Quantum Health Research, Inc. 49,875
----------------------------------------------------------------
2,900 (a) Quintiles Transnational Corp. 212,425
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
HEALTH CARE--CONTINUED
----------------------------------------------------------------
2,600 (a) Regency Health Services, Inc. $ 24,375
----------------------------------------------------------------
4,000 (a) Regeneron Pharmaceuticals, Inc. 56,500
----------------------------------------------------------------
5,000 (a) Renal Treatment Centers, Inc. 145,000
----------------------------------------------------------------
800 (a) Res-Care, Inc. 22,900
----------------------------------------------------------------
2,100 (a) Research Industries Corp. 52,763
----------------------------------------------------------------
3,500 (a) Resound Corp. 43,312
----------------------------------------------------------------
3,100 (a) Respironics, Inc. 67,763
----------------------------------------------------------------
2,100 (a) Rexall Sundown, Inc. 59,850
----------------------------------------------------------------
1,700 (a) RightCHOICE Managed Care, Inc., Class A 28,687
----------------------------------------------------------------
2,500 (a) Roberts Pharmaceutical Corp. 46,562
----------------------------------------------------------------
2,200 (a) Rotech Medical Corp. 91,300
----------------------------------------------------------------
1,600 (a) Safeskin Corp. 46,800
----------------------------------------------------------------
3,000 (a) SciClone Pharmaceuticals, Inc. 42,000
----------------------------------------------------------------
8,000 (a) Scios Nova, Inc. 38,000
----------------------------------------------------------------
1,000 Seafield Capital Corp. 36,625
----------------------------------------------------------------
4,300 (a) Sepracor, Inc. 60,200
----------------------------------------------------------------
5,400 (a) Sequus Pharmaceuticals, Inc. 93,825
----------------------------------------------------------------
3,100 (a) Sierra Health Services, Inc. 102,300
----------------------------------------------------------------
4,100 (a) Sofamor Danek Group, Inc. 134,275
----------------------------------------------------------------
4,300 (a) Somatogen, Inc. 70,412
----------------------------------------------------------------
2,400 (a) SpaceLabs Medical, Inc. 53,400
----------------------------------------------------------------
2,900 (a) Staar Surgical Co. 37,700
----------------------------------------------------------------
4,200 (a) Steris Corp. 136,500
----------------------------------------------------------------
1,200 Sullivan Dental Products, Inc. 13,350
----------------------------------------------------------------
900 (a) Summit Care Corp. 19,350
----------------------------------------------------------------
6,700 (a) Summit Technology, Inc. 119,762
----------------------------------------------------------------
8,524 (a) Sun Healthcare Group, Inc. 128,925
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
HEALTH CARE--CONTINUED
----------------------------------------------------------------
3,700 (a) Sunrise Medical, Inc. $ 67,525
----------------------------------------------------------------
1,500 (a) Synetic, Inc. 51,750
----------------------------------------------------------------
4,900 (a) Systemed, Inc. 13,933
----------------------------------------------------------------
700 (a) Systemix, Inc. 8,575
----------------------------------------------------------------
2,200 (a) Target Therapeutics, Inc. 119,350
----------------------------------------------------------------
2,100 (a) Techne Corp. 58,800
----------------------------------------------------------------
3,300 (a) Technological Medical Products, Inc. 64,350
----------------------------------------------------------------
2,000 (a) TheraTx, Inc. 30,000
----------------------------------------------------------------
2,000 (a) Theratech, Inc. 46,000
----------------------------------------------------------------
3,900 (a) Thermedics, Inc. 117,975
----------------------------------------------------------------
3,900 (a) U.S. Bioscience, Inc. 73,125
----------------------------------------------------------------
300 (a) UniHolding Corp. 4,537
----------------------------------------------------------------
7,200 (a) Unilab Corp. 14,400
----------------------------------------------------------------
1,300 (a) United American Healthcare Corp. 18,362
----------------------------------------------------------------
712 United Healthcare Corp. 41,651
----------------------------------------------------------------
550 United Wisconsin Services, Inc. 12,168
----------------------------------------------------------------
3,200 (a) Universal Health Services, Inc., Class B 177,600
----------------------------------------------------------------
3,800 (a) Uromed Corp. 39,900
----------------------------------------------------------------
2,200 Utah Medical Products, Inc. 34,100
----------------------------------------------------------------
2,400 (a) VISX, Inc. 82,200
----------------------------------------------------------------
4,600 (a) Ventritex, Inc. 72,162
----------------------------------------------------------------
3,500 (a) Vertex Pharmaceuticals, Inc. 102,375
----------------------------------------------------------------
1,300 Vital Signs, Inc. 27,380
----------------------------------------------------------------
600 (a) Vitalink Pharmacy Services, Inc. 13,425
----------------------------------------------------------------
7,875 (a) Vivra, Inc. 249,046
----------------------------------------------------------------
2,700 (a) Vivus, Inc. 81,675
----------------------------------------------------------------
7,126 (a) Watson Pharmaceuticals, Inc. 338,485
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
HEALTH CARE--CONTINUED
----------------------------------------------------------------
1,200 (a) Wellcare Management Group, Inc. $ 18,000
----------------------------------------------------------------
2,800 West Co., Inc. 63,700
----------------------------------------------------------------
7,800 (a) Work Recovery, Inc. 2,925
---------------------------------------------------------------- ------------
Total 15,844,198
---------------------------------------------------------------- ------------
PRODUCER MANUFACTURING--5.9%
----------------------------------------------------------------
1,800 (a) ABC Rail Products Corp. 43,425
----------------------------------------------------------------
2,400 (a) ABT Building Products Corp. 49,200
----------------------------------------------------------------
2,600 (a) ACX Technologies, Inc. 50,375
----------------------------------------------------------------
1,400 Acme Cleveland Corp. 42,175
----------------------------------------------------------------
1,100 Acme Electric Co. 11,275
----------------------------------------------------------------
2,600 (a) Acme Metals, Inc. 44,850
----------------------------------------------------------------
900 (a) Ag-Chem Equipment Co., Inc . 14,175
----------------------------------------------------------------
1,800 Alamo Group, Inc. 35,550
----------------------------------------------------------------
6,200 Allen Group, Inc. 153,450
----------------------------------------------------------------
2,000 Allied Products 52,750
----------------------------------------------------------------
1,700 (a) Alltrista Corp. 40,375
----------------------------------------------------------------
1,900 Amcast Industrial Corp. 36,575
----------------------------------------------------------------
2,200 (a) American Superconductor Corp. 31,625
----------------------------------------------------------------
7,500 Ametek, Inc. 144,375
----------------------------------------------------------------
5,400 (a) Ampal-American Israel Corp., Class A 31,725
----------------------------------------------------------------
1,100 Amtrol, Inc. 26,675
----------------------------------------------------------------
2,700 Applied Power, Inc., Class A 84,712
----------------------------------------------------------------
5,200 Arvin Industries, Inc. 117,000
----------------------------------------------------------------
1,700 (a) Astec Industries, Inc. 17,212
----------------------------------------------------------------
14,000 (a) Aura System, Inc. 71,750
----------------------------------------------------------------
1,600 Avondale Industries, Inc. 30,600
----------------------------------------------------------------
5,500 BW/IP Holding, Inc. 113,437
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
PRODUCER MANUFACTURING--CONTINUED
----------------------------------------------------------------
5,010 Baldor Electric Co. $ 108,340
----------------------------------------------------------------
5,500 Belden, Inc. 163,625
----------------------------------------------------------------
1,650 Blount International, Inc., Class A 51,150
----------------------------------------------------------------
5,500 Borg-Warner Automotive, Inc. 209,687
----------------------------------------------------------------
2,900 Breed Technologies, Inc. 62,350
----------------------------------------------------------------
1,800 Brenco, Inc. 23,230
----------------------------------------------------------------
3,800 (a) CMI Corp. 24,700
----------------------------------------------------------------
3,400 (a) Cable Design Technologies, Class A 112,200
----------------------------------------------------------------
2,200 Cascade Corp. 35,750
----------------------------------------------------------------
900 (a) Central Sprinkler Corp. 24,637
----------------------------------------------------------------
900 Charter Power Systems, Inc. 24,750
----------------------------------------------------------------
2,300 (a) Chase Brass Industries, Inc. 38,525
----------------------------------------------------------------
6,600 (a) Checkpoint System, Inc. 197,175
----------------------------------------------------------------
1,000 (a) Cherry Corp., Class B 9,750
----------------------------------------------------------------
600 (a) Christiana Companies, Inc. 14,100
----------------------------------------------------------------
1,500 (a) Citation Corp. 22,125
----------------------------------------------------------------
3,500 Commercial Intertech Corp. 66,500
----------------------------------------------------------------
2,700 Commercial Metals Corp. 81,000
----------------------------------------------------------------
2,300 Commonwealth Aluminum Corp. 35,938
----------------------------------------------------------------
840 (a) Corporate Express, Inc. 31,395
----------------------------------------------------------------
1,100 DT Industries, Inc. 23,375
----------------------------------------------------------------
2,100 (a) Detroit Diesel Corp. 40,163
----------------------------------------------------------------
1,000 Donnely Corp. 14,875
----------------------------------------------------------------
1,000 (a) Durakon Industries, Inc. 13,000
----------------------------------------------------------------
5,700 Duriron, Inc. 149,625
----------------------------------------------------------------
1,200 Easco, Inc. 10,500
----------------------------------------------------------------
2,000 Excel Industries, Inc. 26,500
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
PRODUCER MANUFACTURING--CONTINUED
----------------------------------------------------------------
1,400 (a) Exide Electronics Group, Inc. $ 21,350
----------------------------------------------------------------
1,400 (a) Falcon Building Products, Inc. 13,475
----------------------------------------------------------------
8,200 Federal-Mogul Corp. 155,800
----------------------------------------------------------------
4,100 Figgie International Holdings, Inc., Class A 54,325
----------------------------------------------------------------
3,200 (a) Flow International Corp. 31,600
----------------------------------------------------------------
1,100 Franklin Electronics, Inc. 39,325
----------------------------------------------------------------
3,600 (a) Fruehauf Trailer Corp. 2,475
----------------------------------------------------------------
1,400 General Binding Corp. 32,200
----------------------------------------------------------------
3,400 (a) Gentex Corp. 134,300
----------------------------------------------------------------
600 (a) Gibraltar Steel Corp. 10,800
----------------------------------------------------------------
8,000 Giddings & Lewis, Inc. 148,500
----------------------------------------------------------------
800 Gleason Corp. 31,500
----------------------------------------------------------------
5,300 (a) Global Industrial Technologies, Inc. 97,388
----------------------------------------------------------------
1,550 Gorman Rupp Co. 22,863
----------------------------------------------------------------
4,800 Goulds Pumps, Inc. 111,600
----------------------------------------------------------------
2,775 Graco, Inc. 55,847
----------------------------------------------------------------
1,200 Greenbrier Cos., Inc. 17,250
----------------------------------------------------------------
3,800 Greenfield Industries, Inc. 144,400
----------------------------------------------------------------
6,900 (a) Griffon Corp. 62,100
----------------------------------------------------------------
3,200 Handy & Harman 54,400
----------------------------------------------------------------
1,500 (a) Harvard Industries, Inc., Class B 32,813
----------------------------------------------------------------
2,100 Hayes Wheels International, Inc. 63,788
----------------------------------------------------------------
2,550 (a) Holophane Corp. 44,625
----------------------------------------------------------------
2,000 Hunt Manufacturers Co. 33,500
----------------------------------------------------------------
1,300 Huntco, Inc., Class A 22,913
----------------------------------------------------------------
4,900 (a) ICC Technologies, Inc. 41,650
----------------------------------------------------------------
4,500 IDEX Corp. 176,625
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
PRODUCER MANUFACTURING--CONTINUED
----------------------------------------------------------------
3,800 IMO Industries, Inc. $ 25,650
----------------------------------------------------------------
2,200 (a) Insilco Corp. 76,450
----------------------------------------------------------------
4,100 Interface, Inc. 53,300
----------------------------------------------------------------
4,100 Intermet Corp. 60,475
----------------------------------------------------------------
600 International Aluminum Corp. 16,350
----------------------------------------------------------------
3,000 JLG Industries, Inc. 163,500
----------------------------------------------------------------
2,562 (a) Jason, Inc. 19,215
----------------------------------------------------------------
2,200 (a) Johnstown America Industries, Inc. 10,450
----------------------------------------------------------------
4,200 Juno Lighting, Inc. 62,213
----------------------------------------------------------------
4,100 Kaman Corp., Class A 46,125
----------------------------------------------------------------
3,900 Kaydon Corp. 155,025
----------------------------------------------------------------
3,800 Kimball International, Inc., Class B 110,200
----------------------------------------------------------------
1,000 Kyser Industrial Corp. 25,750
----------------------------------------------------------------
1,500 Lindsay Manufacturing Co. 56,250
----------------------------------------------------------------
2,800 (a) Littlefuse, Inc. 105,000
----------------------------------------------------------------
700 (a) MICROS Systems Corp. 19,950
----------------------------------------------------------------
1,300 MK Rail Corp. 6,500
----------------------------------------------------------------
4,400 (a) Magnetek, Inc. 46,200
----------------------------------------------------------------
1,700 Manitowoc, Inc. 57,800
----------------------------------------------------------------
7,000 Mascotech, Inc. 91,875
----------------------------------------------------------------
3,000 Masland Corp. 61,125
----------------------------------------------------------------
5,900 Miller Herman, Inc. 180,688
----------------------------------------------------------------
900 (a) Miller Industries, Inc. 25,088
----------------------------------------------------------------
4,100 (a) Mueller Industries, Inc. 165,025
----------------------------------------------------------------
1,700 NACCO Industries, Inc., Class A 107,313
----------------------------------------------------------------
1,100 (a) NCI Building System, Inc. 39,875
----------------------------------------------------------------
2,250 NN Ball & Roller, Inc. 55,125
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
PRODUCER MANUFACTURING--CONTINUED
----------------------------------------------------------------
1,400 Nashua Corp. $ 19,425
----------------------------------------------------------------
2,800 Nortek, Inc. 41,300
----------------------------------------------------------------
4,800 (a) Nu-Kote Holdings, Inc., Class A 84,600
----------------------------------------------------------------
4,100 (a) Oak Industries, Inc. 110,700
----------------------------------------------------------------
6,100 (a) Omega Environmental, Inc. 16,775
----------------------------------------------------------------
1,800 OshKosh Truck Corp., Class B 26,550
----------------------------------------------------------------
2,500 Pacific Scientific Co. 49,375
----------------------------------------------------------------
1,900 (a) Park Ohio Industries, Inc. 35,388
----------------------------------------------------------------
200 Penn Engineering & Manufacturing Corp. 15,000
----------------------------------------------------------------
2,700 Ply Gem Industries, Inc. 34,763
----------------------------------------------------------------
4,750 Precision Castparts Corp. 206,031
----------------------------------------------------------------
1,267 Raymond Corp. 22,489
----------------------------------------------------------------
3,900 Regal Beloit Corp. 75,563
----------------------------------------------------------------
1,500 Reliance Steel & Aluminum Co. 43,500
----------------------------------------------------------------
800 Robbins & Myers, Inc. 30,800
----------------------------------------------------------------
3,500 Roper Industries, Inc. 162,750
----------------------------------------------------------------
1,200 SPS Technologies, Inc. 78,000
----------------------------------------------------------------
2,000 Scotsman Industries, Inc. 38,750
----------------------------------------------------------------
1,200 (a) Shiloh Industries, Inc. 17,250
----------------------------------------------------------------
3,600 Simpson Industries, Inc. 33,750
----------------------------------------------------------------
800 (a) Simpson Manufacturing Co., Inc. 13,800
----------------------------------------------------------------
2,000 Smith (A.O.) Corp. 46,000
----------------------------------------------------------------
2,400 Spartan Motors, Inc. 18,000
----------------------------------------------------------------
3,700 (a) Specialty Equipment Cos., Inc. 55,269
----------------------------------------------------------------
3,725 Standard Products Co. 94,522
----------------------------------------------------------------
2,800 Standex International Corp. 75,600
----------------------------------------------------------------
1,600 Steel Technologies, Inc. 20,600
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
PRODUCER MANUFACTURING--CONTINUED
----------------------------------------------------------------
1,700 Synalloy Corp. $ 32,725
----------------------------------------------------------------
3,300 TJ International, Inc. 56,925
----------------------------------------------------------------
4,100 Teleflex, Inc. 190,138
----------------------------------------------------------------
2,000 Tennant Co. 49,000
----------------------------------------------------------------
1,800 (a) Thermo Fibertek, Inc. 41,175
----------------------------------------------------------------
1,200 (a) Thermo Power Corp. 15,900
----------------------------------------------------------------
2,300 Thomas Industries, Inc. 46,288
----------------------------------------------------------------
3,300 Titan Wheel International, Inc. 53,213
----------------------------------------------------------------
6,100 (a) Top Source Technologies, Inc. 39,269
----------------------------------------------------------------
1,800 Tredegar Industries, Inc. 49,950
----------------------------------------------------------------
3,300 (a) Triangle Pacific Corp. 54,038
----------------------------------------------------------------
5,540 Triarc Companies, Inc., Class A 69,943
----------------------------------------------------------------
5,200 (a) U.S. Filter Corp. 159,900
----------------------------------------------------------------
4,900 UNR Industries, Inc. 45,631
----------------------------------------------------------------
1,500 (a) Ultralife Batteries, Inc. 22,125
----------------------------------------------------------------
800 (a) Union Switch & Signal, Inc. 6,500
----------------------------------------------------------------
2,000 Valmont Industries, Inc. 64,000
----------------------------------------------------------------
1,215 Varlen Corp. 30,679
----------------------------------------------------------------
4,250 Wabash National Corp. 83,938
----------------------------------------------------------------
1,900 Walbro Corp. 40,850
----------------------------------------------------------------
4,600 Watts Industries, Inc., Class A 94,300
----------------------------------------------------------------
3,200 (a) Wolverine Tube, Inc. 117,600
----------------------------------------------------------------
2,300 Woodhead Industries, Inc. 35,650
----------------------------------------------------------------
4,200 (a) Zebra Technologies Co., Class A 105,000
----------------------------------------------------------------
3,600 Zero Corp. 64,800
----------------------------------------------------------------
2,800 Zurn Industries, Inc. 57,050
---------------------------------------------------------------- ------------
Total 9,451,317
---------------------------------------------------------------- ------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
RETAIL TRADE--4.6%
----------------------------------------------------------------
700 (a) American Eagle Outfitters, Inc. $ 9,013
----------------------------------------------------------------
5,200 (a) Ann Taylor Stores Corp. 89,050
----------------------------------------------------------------
3,250 Arbor Drugs, Inc. 65,813
----------------------------------------------------------------
2,050 (a) BMC West Corp. 39,975
----------------------------------------------------------------
1,900 (a) Baby Superstore, Inc. 86,450
----------------------------------------------------------------
2,500 Baker (J.), Inc. 24,063
----------------------------------------------------------------
4,547 (a) Benson Eyecare Corp. 41,491
----------------------------------------------------------------
7,100 (a) Best Products Co., Inc. 19,525
----------------------------------------------------------------
3,700 Big B, Inc. 40,238
----------------------------------------------------------------
1,800 Blair Corp. 47,025
----------------------------------------------------------------
8,300 (a) Bombay Co., Inc. 96,488
----------------------------------------------------------------
1,200 (a) Bon-Ton Stores, Inc. 7,800
----------------------------------------------------------------
2,300 (a) Books-A-Million, Inc. 23,863
----------------------------------------------------------------
8,400 (a) Borders Group, Inc. 268,800
----------------------------------------------------------------
400 (a) Buckle, Inc. 11,700
----------------------------------------------------------------
3,500 (a) Burlington Coat Factory Warehouse 38,063
----------------------------------------------------------------
600 (a) CDW Computer Centers, Inc. 46,425
----------------------------------------------------------------
10,400 CML Group, Inc. 46,800
----------------------------------------------------------------
3,100 CPI Corp. 53,863
----------------------------------------------------------------
3,800 (a) Caldor Corp. 15,200
----------------------------------------------------------------
1,800 (a) Carrington Laboratories, Inc. 50,400
----------------------------------------------------------------
3,700 (a) Carson Pirie Scott & Co. 89,725
----------------------------------------------------------------
5,400 Casey's General Stores, Inc. 116,438
----------------------------------------------------------------
6,400 Cash America International, Inc. 36,800
----------------------------------------------------------------
5,300 Cato Corp., Class A 50,350
----------------------------------------------------------------
800 (a) Central Tractor Farm & Country, Inc. 10,400
----------------------------------------------------------------
21,900 Charming Shoppes, Inc. 140,981
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
RETAIL TRADE--CONTINUED
----------------------------------------------------------------
2,900 (a) Chronimed, Inc. $ 72,138
----------------------------------------------------------------
5,700 (a) Circle K Corp. 178,125
----------------------------------------------------------------
4,050 Claire's Stores, Inc. 88,088
----------------------------------------------------------------
9,800 (a) CompUSA, Inc. 339,325
----------------------------------------------------------------
400 Dart Group Corp., Class A 32,700
----------------------------------------------------------------
1,200 Delchamps, Inc. 26,700
----------------------------------------------------------------
3,550 (a) Designs, Inc. 23,075
----------------------------------------------------------------
1,400 (a) Discount Auto Parts, Inc. 41,125
----------------------------------------------------------------
11,000 (a) Discovery Zone, Inc. 9,969
----------------------------------------------------------------
1,500 (a) Dollar Tree Stores, Inc. 50,250
----------------------------------------------------------------
3,600 (a) Dress Barn, Inc. 39,150
----------------------------------------------------------------
4,400 Duty Free International, Inc. 58,850
----------------------------------------------------------------
4,300 (a) Eagle Hardware & Garden, Inc. 43,538
----------------------------------------------------------------
3,800 Edison Brothers Stores, Inc. 10,925
----------------------------------------------------------------
3,900 (a) Egghead, Inc. 38,025
----------------------------------------------------------------
3,500 (a) Express Scripts, Inc., Class A 173,250
----------------------------------------------------------------
3,200 (a) Fabri-Centers of America, Class A 32,800
----------------------------------------------------------------
9,200 Family Dollar Stores, Inc. 140,300
----------------------------------------------------------------
3,300 Fays, Inc. 28,463
----------------------------------------------------------------
10,700 Fingerhut Companies, Inc. 136,425
----------------------------------------------------------------
2,700 (a) Friedmans, Inc., Class A 69,525
----------------------------------------------------------------
4,756 General Host Corp. 18,430
----------------------------------------------------------------
1,812 Genovese Drug Stores, Inc., Class A 17,667
----------------------------------------------------------------
1,400 (a) Goody's Family Clothing, Inc. 12,075
----------------------------------------------------------------
4,800 Hancock Fabrics, Inc. 52,800
----------------------------------------------------------------
10,000 (a) Hanover Direct, Inc. 12,500
----------------------------------------------------------------
2,250 Haverty Furniture Cos., Inc. 31,500
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
RETAIL TRADE--CONTINUED
----------------------------------------------------------------
7,100 Hechinger Co., Class A $ 30,175
----------------------------------------------------------------
2,153 (a) Hills Stores Co. 27,451
----------------------------------------------------------------
5,000 (a) Hollywood Entertainment Corp. 82,500
----------------------------------------------------------------
12,700 (a) Home Shopping Network, Inc. 149,225
----------------------------------------------------------------
1,600 Ingles Markets, Inc., Class A 20,800
----------------------------------------------------------------
2,000 Jenny Craig, Inc. 24,000
----------------------------------------------------------------
3,700 Lands' End, Inc. 73,075
----------------------------------------------------------------
2,500 (a) Lechters, Inc. 17,500
----------------------------------------------------------------
6,700 (a) Levitz Furniture, Inc. 32,663
----------------------------------------------------------------
1,100 Lillian Vernon Corp. 15,263
----------------------------------------------------------------
3,500 Longs Drug Stores Corp. 158,375
----------------------------------------------------------------
5,700 (a) MacFrugal's Bargains CloseOuts, Inc. 76,238
----------------------------------------------------------------
2,025 (a) Mens Wearhouse, Inc. 74,925
----------------------------------------------------------------
6,200 (a) Meyer (Fred), Inc. 178,250
----------------------------------------------------------------
3,900 (a) Michaels Stores, Inc. 71,663
----------------------------------------------------------------
3,250 (a) Microage, Inc. 36,563
----------------------------------------------------------------
1,102 (a) Monro Muffler Brake, Inc. 17,908
----------------------------------------------------------------
900 (a) Movie Gallery, Inc. 27,450
----------------------------------------------------------------
7,700 (a) Musicland Stores, Inc. 31,763
----------------------------------------------------------------
2,600 National Media Corp. 46,800
----------------------------------------------------------------
3,700 Neiman-Marcus Group, Inc. 88,800
----------------------------------------------------------------
2,600 New Engineers Business Service, Inc. 48,750
----------------------------------------------------------------
900 (a) O'Reilly Automotive, Inc. 35,325
----------------------------------------------------------------
9,000 (a) Payless Cashway, Inc., Class A 37,125
----------------------------------------------------------------
2,400 (a) Penn Traffic Co. 33,000
----------------------------------------------------------------
2,850 (a) Petco Animal Supplies, Inc. 81,938
----------------------------------------------------------------
9,195 Pier 1 Imports, Inc. 122,983
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
RETAIL TRADE--CONTINUED
----------------------------------------------------------------
3,500 (a) Proffitts, Inc. $ 114,625
----------------------------------------------------------------
750 Quality Food Centers, Inc. 19,500
----------------------------------------------------------------
1,500 Regis Corp. Minnesota 55,313
----------------------------------------------------------------
2,300 (a) Renters Choice, Inc. 49,450
----------------------------------------------------------------
1,700 (a) Rex Stores Corp. 26,563
----------------------------------------------------------------
5,700 Ross Stores, Inc. 196,650
----------------------------------------------------------------
5,400 Ruddick Corp. 71,550
----------------------------------------------------------------
23,300 (a) Service Merchandise, Inc. 110,675
----------------------------------------------------------------
3,900 Shopko Stores, Inc. 60,450
----------------------------------------------------------------
2,300 Smart & Final, Inc. 52,325
----------------------------------------------------------------
4,300 Smith's Food & Drug Centers, Inc., Class B 107,500
----------------------------------------------------------------
2,100 (a) Sportmart, Inc. 9,975
----------------------------------------------------------------
4,450 (a) Sports & Recreation, Inc. 32,263
----------------------------------------------------------------
3,300 (a) Sports Authority, Inc. 98,175
----------------------------------------------------------------
1,950 (a) Stein Mart, Inc. 30,956
----------------------------------------------------------------
1,736 Strawbridge & Clothier, Inc., Class A 32,116
----------------------------------------------------------------
3,100 Sun Television & Appliances 12,206
----------------------------------------------------------------
12,500 (a) Sunglass Hut International, Inc. 365,625
----------------------------------------------------------------
900 Syms Corp. 7,088
----------------------------------------------------------------
3,000 (a) The Good Guys, Inc. 27,375
----------------------------------------------------------------
3,200 Tiffany & Co. 208,800
----------------------------------------------------------------
1,200 (a) Today's Man, Inc. 2,550
----------------------------------------------------------------
1,000 (a) Tractor Supply Co. 23,000
----------------------------------------------------------------
500 (a) Trak Auto Corp. 8,125
----------------------------------------------------------------
900 (a) Urban Outfitters, Inc. 30,038
----------------------------------------------------------------
2,600 (a) Value City Department Stores, Inc. 23,400
----------------------------------------------------------------
6,300 (a) Valuevision International, Inc., Class A 49,613
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
RETAIL TRADE--CONTINUED
----------------------------------------------------------------
3,900 Venture Stores, Inc. $ 24,375
----------------------------------------------------------------
7,500 (a) Waban, Inc. 183,750
----------------------------------------------------------------
600 (a) West Marine, Inc. 33,150
----------------------------------------------------------------
3,100 (a) Whole Foods Market, Inc. 63,163
----------------------------------------------------------------
4,200 (a) Williams-Sonoma, Inc. 105,000
----------------------------------------------------------------
7,300 (a) Zale Corp. 135,963
---------------------------------------------------------------- ------------
Total 7,356,272
---------------------------------------------------------------- ------------
SERVICES--12.4%
----------------------------------------------------------------
1,500 ABM Industries, Inc. 51,188
----------------------------------------------------------------
1,650 (a) ABR Information Services, Inc. 103,125
----------------------------------------------------------------
4,300 ADVO, Inc. 43,538
----------------------------------------------------------------
600 (a) AMC Entertainment, Inc. 15,525
----------------------------------------------------------------
3,100 (a) APS Holding Corp., Class A 56,575
----------------------------------------------------------------
5,400 (a) AccuStaff, Inc. 160,650
----------------------------------------------------------------
2,200 Ackerley Communications, Inc. 48,125
----------------------------------------------------------------
300 (a) Adelphia Communications Corp., Class A 2,100
----------------------------------------------------------------
4,200 (a) Air and Water Technology Corp., Class A 23,625
----------------------------------------------------------------
3,100 (a) Alliance Entertainment Corp. 18,988
----------------------------------------------------------------
11,000 (a) Allied Waste Industries, Inc. 107,250
----------------------------------------------------------------
8,800 (a) Allwaste, Inc. 38,500
----------------------------------------------------------------
800 (a) American Buildings Co. 20,325
----------------------------------------------------------------
2,250 (a) American Business Information 43,875
----------------------------------------------------------------
2,950 American Business Products, Inc. 64,163
----------------------------------------------------------------
3,100 American Classic Voyages 26,350
----------------------------------------------------------------
400 American List Corp. 12,450
----------------------------------------------------------------
9,400 (a) American Media, Inc. 28,200
----------------------------------------------------------------
1,900 (a) American Telecasting, Inc. 28,975
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
SERVICES--CONTINUED
----------------------------------------------------------------
600 (a) Ameristar Casinos, Inc. $ 5,550
----------------------------------------------------------------
5,500 Amresco, Inc. 94,188
----------------------------------------------------------------
1,200 (a) Anchor Gaming 53,025
----------------------------------------------------------------
1,900 Angelica Corp. 40,613
----------------------------------------------------------------
2,250 (a) Apollo Group, Inc., Class A 99,000
----------------------------------------------------------------
6,037 Apple South, Inc. 156,962
----------------------------------------------------------------
7,200 Applebee's International, Inc. 190,800
----------------------------------------------------------------
2,700 (a) Argosy Gaming Corp. 22,950
----------------------------------------------------------------
1,400 (a) Au Bon Pain Co., Inc., Class A 11,200
----------------------------------------------------------------
8,600 (a) Aztar Corp. 83,850
----------------------------------------------------------------
1,800 (a) BET Holdings, Inc., Class A 52,650
----------------------------------------------------------------
6,581 (a) BJ Services Co. 252,546
----------------------------------------------------------------
11,000 (a) Bally Entertainment Group 229,625
----------------------------------------------------------------
400 (a) Bally's Grand, Inc. 8,900
----------------------------------------------------------------
7,150 Banta Corp. 175,175
----------------------------------------------------------------
3,500 Barefoot, Inc. 43,531
----------------------------------------------------------------
2,750 Bearings, Inc. 88,000
----------------------------------------------------------------
700 (a) Berlitz International, Inc. 12,425
----------------------------------------------------------------
1,100 (a) Boise Cascade Office Products Corp. 86,075
----------------------------------------------------------------
2,900 (a) Borg Warner Security Corp. 33,713
----------------------------------------------------------------
3,300 Bowne & Co., Inc. 59,400
----------------------------------------------------------------
6,100 (a) Buffets, Inc. 84,638
----------------------------------------------------------------
1,400 Butler Manufacturing Co. 51,450
----------------------------------------------------------------
5,965 (a) CAI Wireless Systems, Inc. 41,009
----------------------------------------------------------------
2,500 (a) CDI Corp. 73,750
----------------------------------------------------------------
4,200 CKE Restaurants, Inc. 82,950
----------------------------------------------------------------
1,800 (a) CSS Industries, Inc. 41,175
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
SERVICES--CONTINUED
----------------------------------------------------------------
1,500 Cadmus Communications Corp. $ 27,000
----------------------------------------------------------------
5,600 Camco International, Inc. 199,500
----------------------------------------------------------------
2,400 (a) Career Horizons, Inc. 84,600
----------------------------------------------------------------
2,200 (a) Carmike Cinemas, Inc., Class A 58,575
----------------------------------------------------------------
2,250 (a) Casino American, Inc. 17,578
----------------------------------------------------------------
4,400 (a) Casino Magic Corp. 21,175
----------------------------------------------------------------
2,100 Castle (A.M.) & Co. 70,350
----------------------------------------------------------------
2,300 (a) Catalina Marketing Corp. 179,113
----------------------------------------------------------------
7,800 (a) Century Communications, Corp., Class A 75,075
----------------------------------------------------------------
468 Champion Industries, Inc. W VA 8,658
----------------------------------------------------------------
9,800 (a) Checkers Drive-In Restaurant 12,556
----------------------------------------------------------------
1,900 (a) Cheesecake Factory, Inc. 49,875
----------------------------------------------------------------
1,100 (a) Children's Discovery Centers of America, Inc. 7,013
----------------------------------------------------------------
600 Churchill Downs, Inc. 25,800
----------------------------------------------------------------
3,525 Citicasters, Inc., Class A 105,309
----------------------------------------------------------------
8,537 (a) Concord EFS, Inc. 285,990
----------------------------------------------------------------
2,530 Consolidated Products, Inc. 40,480
----------------------------------------------------------------
1,500 (a) Copart, Inc. 40,875
----------------------------------------------------------------
7,400 (a) Corrections Corp. America 471,750
----------------------------------------------------------------
1,700 (a) Corrpro Cos., Inc. 13,388
----------------------------------------------------------------
800 (a) Daisytek International Corp. 32,600
----------------------------------------------------------------
3,700 Dames & Moore, Inc. 40,238
----------------------------------------------------------------
2,000 (a) Davidson & Associates, Inc. 54,000
----------------------------------------------------------------
900 (a) Day Runner, Inc. 28,013
----------------------------------------------------------------
3,000 (a) DeVRY, Inc. 111,750
----------------------------------------------------------------
3,500 (a) Destec Energy, Inc. 41,125
----------------------------------------------------------------
1,300 (a) Devon Group, Inc. 40,950
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
SERVICES--CONTINUED
----------------------------------------------------------------
1,200 (a) DiMark, Inc. $ 18,450
----------------------------------------------------------------
4,400 (a) Doubletree Corp. 141,900
----------------------------------------------------------------
1,400 (a) Dual Drilling Co. 25,550
----------------------------------------------------------------
1,500 (a) EZ Communications, Inc., Class A 28,688
----------------------------------------------------------------
1,350 (a) Edmark Corp. 39,488
----------------------------------------------------------------
1,600 (a) Emmis Broadcasting Corp., Class A 68,800
----------------------------------------------------------------
3,100 (a) Energy Ventures, Inc. 93,000
----------------------------------------------------------------
3,700 Ennis Business Forms, Inc. 39,775
----------------------------------------------------------------
4,700 (a) EnviroSource, Inc. 16,450
----------------------------------------------------------------
1,000 (a) Equity Corporation International 28,625
----------------------------------------------------------------
3,300 (a) Evergreen Media Corp., Class A 129,525
----------------------------------------------------------------
1,600 Fair Isaac & Co., Inc. 68,000
----------------------------------------------------------------
3,800 Fisher Scientific International, Inc. 142,025
----------------------------------------------------------------
7,000 (a) Flagstar Companies, Inc. 24,500
----------------------------------------------------------------
8,700 (a) Foodmaker, Inc. 70,688
----------------------------------------------------------------
1,600 (a) Franklin Electronic Publishers, Inc. 40,200
----------------------------------------------------------------
4,100 (a) Franklin Quest Co. 110,700
----------------------------------------------------------------
4,750 G & K Services, Inc., Class A 126,469
----------------------------------------------------------------
1,300 (a) GC Cos., Inc. 46,963
----------------------------------------------------------------
1,900 (a) GRC International 73,625
----------------------------------------------------------------
1,800 (a) Global Industries Ltd. 46,350
----------------------------------------------------------------
7,450 (a) Grand Casinos, Inc. 241,194
----------------------------------------------------------------
2,550 Granite Construction, Inc. 50,363
----------------------------------------------------------------
1,501 Graphic Industries, Inc. 16,511
----------------------------------------------------------------
200 Grey Advertising, Inc. 44,600
----------------------------------------------------------------
12,800 (a) Greyhound Lines, Inc. 45,600
----------------------------------------------------------------
1,400 (a) Griffin Gaming & Entertainment, Inc. 20,300
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
SERVICES--CONTINUED
----------------------------------------------------------------
7,200 Handleman Co. $ 44,100
----------------------------------------------------------------
7,200 Harland (John H.) Co. 189,000
----------------------------------------------------------------
2,850 Harte-Hanks 67,331
----------------------------------------------------------------
1,200 Harveys Casino Resorts 22,200
----------------------------------------------------------------
700 (a) Heartland Wireless Communications, Inc. 19,513
----------------------------------------------------------------
1,700 (a) Heftel Broadcasting Corp. , Class A 34,850
----------------------------------------------------------------
5,800 Helmerich & Payne, Inc. 213,875
----------------------------------------------------------------
3,800 (a) Heritage Media Corp., Class A 145,825
----------------------------------------------------------------
2,600 (a) Hollywood Casino Corp., Class A 13,975
----------------------------------------------------------------
3,300 Hollywood Park, Inc. 31,763
----------------------------------------------------------------
2,200 (a) Hometown Buffet, Inc. 31,350
----------------------------------------------------------------
800 Horsehead Resource Development, Inc. 4,550
----------------------------------------------------------------
3,400 Houghton Mifflin Co. 157,675
----------------------------------------------------------------
900 Hughes Supply, Inc. 31,050
----------------------------------------------------------------
2,100 (a) IHOP Corp. 59,850
----------------------------------------------------------------
750 (a) ITT Educational Services, Inc. 23,250
----------------------------------------------------------------
3,600 (a) Identix, Inc. 42,750
----------------------------------------------------------------
6,500 Ideon Group, Inc. 85,313
----------------------------------------------------------------
10,500 (a) Input/Output, Inc. 364,875
----------------------------------------------------------------
4,700 (a) Insituform Technologies, Inc., Class A 54,638
----------------------------------------------------------------
2,200 (a) Insurance Automotive Auctions, Inc. 25,300
----------------------------------------------------------------
2,600 (a) Interim Services, Inc. 112,775
----------------------------------------------------------------
2,700 (a) International Dairy Queen, Inc., Class A 57,038
----------------------------------------------------------------
5,500 (a) International Family Entertainment, Inc., Class B 83,875
----------------------------------------------------------------
7,200 (a) International Technology Corp. 18,000
----------------------------------------------------------------
2,200 (a) JP Foodservice, Inc. 48,950
----------------------------------------------------------------
4,900 (a) Jacobs Engineering Group, Inc. 135,975
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
SERVICES--CONTINUED
----------------------------------------------------------------
1,400 (a) Jacor Communications, Inc., Class A $ 30,450
----------------------------------------------------------------
4,182 (a) Jones Intercable, Inc. 63,253
----------------------------------------------------------------
5,200 (a) Kenetech Corp. 5,200
----------------------------------------------------------------
4,500 (a) Kinder-Care Learning Centers, Inc. 64,688
----------------------------------------------------------------
1,900 Landauer, Inc. 39,663
----------------------------------------------------------------
3,500 (a) Landmark Graphics Corp. 69,125
----------------------------------------------------------------
1,600 (a) Landrys Seafood Restaurants, Inc. 37,600
----------------------------------------------------------------
1,700 Lawson Products, Inc. 38,675
----------------------------------------------------------------
5,500 Luby's Cafeterias, Inc. 132,000
----------------------------------------------------------------
1,500 Lufkin Industries, Inc. 31,125
----------------------------------------------------------------
2,250 Marcus Corp. 62,719
----------------------------------------------------------------
7,400 (a) Marine Drilling Cos., Inc. 73,075
----------------------------------------------------------------
1,500 (a) Mastec, Inc. 27,938
----------------------------------------------------------------
3,400 McClatchy Newspapers, Inc. , Class A 82,450
----------------------------------------------------------------
6,100 Meredith Corp. 276,788
----------------------------------------------------------------
1,300 Merrill Corp. 28,600
----------------------------------------------------------------
5,542 (a) Metromedia International Group, Inc. 74,817
----------------------------------------------------------------
4,900 Mid-American Waste Systems, Inc. 6,738
----------------------------------------------------------------
1,900 (a) Minnesota Educational Computing Corp. 59,613
----------------------------------------------------------------
2,500 (a) Molten Metal Technology 80,625
----------------------------------------------------------------
1,575 Morrison Fresh Cooking, Inc. 11,419
----------------------------------------------------------------
2,100 Morrison Health Care, Inc. 33,338
----------------------------------------------------------------
6,900 Morrison Knudsen Corp. 9,488
----------------------------------------------------------------
1,800 (a) NFO Research, Inc. 42,075
----------------------------------------------------------------
3,800 (a) NPC International, Inc. 35,150
----------------------------------------------------------------
19,700 (a) Nabors Industries, Inc. 302,888
----------------------------------------------------------------
2,400 Nash Finch Co. 42,000
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
SERVICES--CONTINUED
----------------------------------------------------------------
8,200 (a) National Education Corp. $ 121,975
----------------------------------------------------------------
2,415 (a) Newpark Resources, Inc. 75,771
----------------------------------------------------------------
16,500 (a) Noble Drilling Corp. 247,500
----------------------------------------------------------------
1,200 Norrell Corp. 46,500
----------------------------------------------------------------
4,300 (a) OHM Corp. 38,163
----------------------------------------------------------------
5,200 (a) Oceaneering International, Inc. 81,900
----------------------------------------------------------------
4,400 (a) Offshore Logistics, Inc. 64,350
----------------------------------------------------------------
1,300 (a) PEC Israel Economic Corp. 29,413
----------------------------------------------------------------
1,200 (a) Papa Johns International, Inc. 59,175
----------------------------------------------------------------
12,500 (a) Parker Drilling Co. 95,313
----------------------------------------------------------------
5,900 (a) Paxson Communications Corp. 87,763
----------------------------------------------------------------
1,500 (a) Peoples Choice TV Corp. 21,563
----------------------------------------------------------------
900 (a) Performance Food Group Co. 25,763
----------------------------------------------------------------
5,700 Petroleum Heat & Power, Inc., Class A 39,188
----------------------------------------------------------------
9,600 Phoenix Duff & Phelps Corp. 64,800
----------------------------------------------------------------
1,200 (a) Pinkertons, Inc. 29,100
----------------------------------------------------------------
3,400 (a) Playboy Enterprises, Inc., Class B 40,375
----------------------------------------------------------------
6,800 (a) Players International, Inc. 77,350
----------------------------------------------------------------
900 Plenum Publishing Corp. 33,525
----------------------------------------------------------------
3,000 (a) Pool Energy Services Co. 37,875
----------------------------------------------------------------
4,600 (a) Prepaid Legal Services, Inc. 89,125
----------------------------------------------------------------
4,600 (a) President Casinos, Inc. 9,488
----------------------------------------------------------------
5,300 (a) Pride Petroleum Services, Inc. 86,788
----------------------------------------------------------------
1,500 (a) Primadonna Resorts, Inc. 28,875
----------------------------------------------------------------
5,300 (a) Primark Corp. 188,150
----------------------------------------------------------------
6,900 (a) Prime Hospitality Corp. 104,363
----------------------------------------------------------------
1,000 (a) Prins Recycling Corp. 3,250
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
SERVICES--CONTINUED
----------------------------------------------------------------
1,800 Production Operations Corp. $ 59,850
----------------------------------------------------------------
1,000 Pulitzer Publishing Co. 57,000
----------------------------------------------------------------
1,300 (a) RPC Energy Services, Inc. 14,950
----------------------------------------------------------------
14,300 (a) Reading & Bates Corp. 350,350
----------------------------------------------------------------
2,725 (a) Regal Cinemas, Inc. 111,044
----------------------------------------------------------------
7,000 (a) Renaissance Communications Corp. 193,375
----------------------------------------------------------------
9,400 (a) Republic Industries, Inc. 307,850
----------------------------------------------------------------
2,900 (a) Rexel, Inc. 38,788
----------------------------------------------------------------
5,928 Richfood Holdings, Inc. 193,401
----------------------------------------------------------------
3,400 (a) Rio Hotel & Casino, Inc. 61,200
----------------------------------------------------------------
5,200 (a) Robert Half International, Inc. 299,000
----------------------------------------------------------------
900 (a) Rock Bottom Restaurants, Inc. 10,688
----------------------------------------------------------------
13,600 Rollins Environmental Services, Inc. 35,700
----------------------------------------------------------------
500 Roto-Rooter, Inc. 16,063
----------------------------------------------------------------
19,800 (a) Rowan Companies, Inc. 292,050
----------------------------------------------------------------
3,150 (a) Ruby Tuesday, Inc. 63,788
----------------------------------------------------------------
1,700 (a) Rural / Metro Corp. 50,363
----------------------------------------------------------------
12,000 (a) Ryan's Family Steak Houses, Inc. 115,500
----------------------------------------------------------------
3,100 Rykoff Sexton, Inc. 46,888
----------------------------------------------------------------
3,000 SEI Corp. 70,875
----------------------------------------------------------------
900 (a) SFX Broadcasting, Inc. 31,050
----------------------------------------------------------------
4,800 (a) Sanifill, Inc. 208,200
----------------------------------------------------------------
6,800 (a) Savoy Pictures Entertainment, Inc. 37,400
----------------------------------------------------------------
2,650 Sbarro, Inc. 69,563
----------------------------------------------------------------
2,900 (a) Scientific Games Holdings Corp. 94,975
----------------------------------------------------------------
1,300 (a) Seacor Holdings, Inc. 53,625
----------------------------------------------------------------
1,500 (a) Seattle Filmworks, Inc. 29,625
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
SERVICES--CONTINUED
----------------------------------------------------------------
2,100 Seitel, Inc. $ 58,013
----------------------------------------------------------------
400 Sevenson Environmental Services 6,700
----------------------------------------------------------------
1,433 (a) ShoLodge, Inc. 19,525
----------------------------------------------------------------
7,600 (a) Shoney's, Inc. 84,550
----------------------------------------------------------------
2,400 (a) ShowBiz Pizza Time, Inc. 52,200
----------------------------------------------------------------
3,500 Showboat, Inc. 112,000
----------------------------------------------------------------
1,800 (a) Shuffle Master, Inc. 21,375
----------------------------------------------------------------
2,600 Shurgard Storage Centers, Inc., Class A 66,625
----------------------------------------------------------------
2,000 (a) Silver King Communications, Inc. 58,500
----------------------------------------------------------------
4,900 Sizzler International, Inc. 18,375
----------------------------------------------------------------
8,600 (a) Smith International, Inc. 255,850
----------------------------------------------------------------
1,000 (a) Sodak Gaming, Inc. 25,750
----------------------------------------------------------------
3,150 (a) Sonic Corp. 59,850
----------------------------------------------------------------
10,100 Sothebys Holdings, Inc., Class A 142,663
----------------------------------------------------------------
2,000 (a) Speedway Motorsports, Inc. 53,500
----------------------------------------------------------------
2,900 Standard Register 73,950
----------------------------------------------------------------
3,000 (a) Starsight Telecast, Inc. 16,875
----------------------------------------------------------------
4,100 (a) Station Casinos, Inc. 54,325
----------------------------------------------------------------
2,100 Stone & Webster, Inc. 71,400
----------------------------------------------------------------
4,100 Storage USA, Inc. 135,813
----------------------------------------------------------------
2,500 Super Food Services, Inc. 31,875
----------------------------------------------------------------
1,600 (a) Sylvan Learning Systems, Inc. 62,000
----------------------------------------------------------------
3,700 TCA Cable TV, Inc. 108,225
----------------------------------------------------------------
3,700 TCBY Enterprises, Inc. 17,113
----------------------------------------------------------------
2,325 (a) Tetra Tech, Inc. 50,569
----------------------------------------------------------------
2,800 (a) Tetra Technologies, Inc. 55,300
----------------------------------------------------------------
400 (a) Thermo Ecotek Corp. 9,450
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
SERVICES--CONTINUED
----------------------------------------------------------------
850 Thermo Remediation, Inc. $ 11,581
----------------------------------------------------------------
900 (a) Thermo Terratech, Inc. 12,150
----------------------------------------------------------------
3,575 Thomas Nelson, Inc. 48,709
----------------------------------------------------------------
800 (a) Thompson PBE, Inc. 8,100
----------------------------------------------------------------
1,900 Transmedia Network, Inc. 16,863
----------------------------------------------------------------
800 Trigen Energy Corp. 15,600
----------------------------------------------------------------
4,400 True North Communications, Inc. 116,050
----------------------------------------------------------------
4,200 (a) Tuboscope Vetco International Corp. 54,600
----------------------------------------------------------------
11,008 (a) USA Waste Services, Inc. 286,208
----------------------------------------------------------------
4,600 Unifirst Corp. 110,400
----------------------------------------------------------------
9,100 (a) United International Holdings, Inc., Class A 130,813
----------------------------------------------------------------
1,000 United Television, Inc. 89,250
----------------------------------------------------------------
2,200 (a) United Video Satellite Group, Inc., Class A 50,050
----------------------------------------------------------------
3,400 (a) United Waste Systems, Inc. 187,000
----------------------------------------------------------------
2,600 Univar Corp. 30,225
----------------------------------------------------------------
1,550 (a) Uno Restaurant Corp. 10,850
----------------------------------------------------------------
2,500 (a) VWR Corp. 33,750
----------------------------------------------------------------
5,000 Valassis Communication, Inc. 78,750
----------------------------------------------------------------
400 Value Line, Inc. 13,900
----------------------------------------------------------------
3,900 (a) Varco International, Inc. 64,838
----------------------------------------------------------------
2,000 (a) Vicorp Restaurants, Inc. 28,000
----------------------------------------------------------------
1,200 (a) Volt Information Science, Inc. 35,700
----------------------------------------------------------------
4,100 (a) WMS Industries, Inc. 74,313
----------------------------------------------------------------
2,100 Wackenhut Corp., Class A 51,450
----------------------------------------------------------------
500 (a) Wackenhut Corrections Corp. 26,750
----------------------------------------------------------------
2,100 (a) Washington Construction Group 17,325
----------------------------------------------------------------
300 Waverly, Inc. 13,800
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
SERVICES--CONTINUED
----------------------------------------------------------------
11,939 (a) Weatherford Enterra, Inc. $ 420,850
----------------------------------------------------------------
3,900 (a) Westcott Communications 82,875
----------------------------------------------------------------
3,800 (a) Western Publishing Group, Inc. 49,875
----------------------------------------------------------------
2,300 (a) Western Waste Industries 89,413
----------------------------------------------------------------
5,500 (a) Westwood One, Inc. 96,250
----------------------------------------------------------------
3,000 Wiley (John) & Sons, Inc., Class A 103,500
----------------------------------------------------------------
2,100 (a) Young Broadcasting, Inc., Class A 62,475
---------------------------------------------------------------- ------------
Total 19,876,694
---------------------------------------------------------------- ------------
TECHNOLOGY--14.4%
----------------------------------------------------------------
1,400 (a) 3D Systems Corp. 28,175
----------------------------------------------------------------
3,600 AAR Corp. 73,350
----------------------------------------------------------------
1,400 (a) ADFlex Solutions, Inc. 23,100
----------------------------------------------------------------
5,922 (a) AST Research, Inc. 44,415
----------------------------------------------------------------
3,400 (a) Actel Corp. 62,900
----------------------------------------------------------------
700 (a) Active Voice Corp. 11,200
----------------------------------------------------------------
4,200 (a) Acxiom Corp. 115,500
----------------------------------------------------------------
1,800 (a) Affiliated Computer Services, Inc., Class A 85,725
----------------------------------------------------------------
3,100 (a) Alliant Techsystems, Inc. 145,700
----------------------------------------------------------------
1,400 (a) Alpha Industries, Inc. 15,750
----------------------------------------------------------------
900 (a) Alternative Resources Corp. 32,625
----------------------------------------------------------------
1,800 (a) Altron, Inc. 57,600
----------------------------------------------------------------
4,200 (a) AmeriData Technologies, Inc. 46,725
----------------------------------------------------------------
9,300 (a) American Management System, Inc 247,613
----------------------------------------------------------------
325 (a) American Satellite Network, Warrants 0
----------------------------------------------------------------
1,700 Analogic Corp. 34,850
----------------------------------------------------------------
1,600 Analysts International Corp. 60,400
----------------------------------------------------------------
3,300 (a) Antec Corp. 49,500
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
TECHNOLOGY--CONTINUED
----------------------------------------------------------------
3,000 (a) Apertus Technologies, Inc. $ 14,438
----------------------------------------------------------------
2,700 (a) Applied Digital Access, Inc. 36,113
----------------------------------------------------------------
2,000 (a) Applied Innovation, Inc. 23,250
----------------------------------------------------------------
5,600 (a) Applied Magnetics Corp. 115,500
----------------------------------------------------------------
2,200 (a) Applix, Inc. 85,800
----------------------------------------------------------------
3,200 (a) Artisoft, Inc. 29,200
----------------------------------------------------------------
4,900 (a) Aspect Telecommunications Corp. 281,750
----------------------------------------------------------------
1,400 (a) Aspen Technologies, Inc. 77,700
----------------------------------------------------------------
1,100 (a) Asyst Technologies, Inc. 38,500
----------------------------------------------------------------
2,700 (a) Atria Software, Inc. 147,150
----------------------------------------------------------------
3,800 Augat, Inc. 73,150
----------------------------------------------------------------
5,300 (a) Auspex Systems, Inc. 102,688
----------------------------------------------------------------
4,100 Aviall, Inc. 36,900
----------------------------------------------------------------
4,900 (a) Avid Technology, Inc. 95,550
----------------------------------------------------------------
4,100 (a) BBN Corp. 115,825
----------------------------------------------------------------
3,600 (a) BE Aerospace, Inc. 55,350
----------------------------------------------------------------
4,679 (a) BancTec, Inc. 95,335
----------------------------------------------------------------
3,800 (a) Banyan Systems, Inc. 33,250
----------------------------------------------------------------
1,567 Bell Industries, Inc. 34,670
----------------------------------------------------------------
3,900 (a) Bisys Group, Inc. 149,175
----------------------------------------------------------------
3,700 (a) Black Box Corp. 74,000
----------------------------------------------------------------
1,100 (a) Boca Research, Inc. 23,650
----------------------------------------------------------------
2,625 (a) Boole & Babbage, Inc. 69,234
----------------------------------------------------------------
7,000 (a) Borland International, Inc. 114,625
----------------------------------------------------------------
4,300 (a) Boston Technology, Inc. 74,713
----------------------------------------------------------------
2,000 (a) Brite Voice Systems, Inc. 38,500
----------------------------------------------------------------
2,900 (a) Broadband Technologies, Inc. 73,950
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
TECHNOLOGY--CONTINUED
----------------------------------------------------------------
1,800 (a) Broadway & Seymour, Inc. $ 25,200
----------------------------------------------------------------
3,300 (a) Brooktree Corp. 33,413
----------------------------------------------------------------
3,850 (a) Burr Brown Corp. 74,113
----------------------------------------------------------------
1,400 (a) Business Records Corporation Holdings Co. 51,100
----------------------------------------------------------------
2,100 (a) C-COR Electronics, Inc. 41,344
----------------------------------------------------------------
7,500 (a) C-Cube Microsystems, Inc. 371,250
----------------------------------------------------------------
700 CTS Corp. 29,225
----------------------------------------------------------------
2,900 (a) Caere Corp. 27,913
----------------------------------------------------------------
3,600 (a) California Microwave 66,150
----------------------------------------------------------------
2,200 (a) Cambridge Technology Partners, Inc. 147,950
----------------------------------------------------------------
1,200 (a) Cellstar Corp. 11,400
----------------------------------------------------------------
2,295 (a) Cellular Technical Services, Inc. 65,694
----------------------------------------------------------------
8,800 (a) Cheyenne Software, Inc. 200,200
----------------------------------------------------------------
4,800 (a) Chips & Technologies, Inc. 53,700
----------------------------------------------------------------
2,300 (a) Cidco, Inc. 82,225
----------------------------------------------------------------
200 (a) Cisco Systems, Inc. 10,375
----------------------------------------------------------------
7,300 (a) Cognex Corp. 195,275
----------------------------------------------------------------
1,800 (a) Coherent Communications Systems Corp. 34,650
----------------------------------------------------------------
2,600 (a) Coherent, Inc. 139,425
----------------------------------------------------------------
2,000 Cohu, Inc. 51,000
----------------------------------------------------------------
3,600 (a) Colonial Data Technologies Corp. 82,350
----------------------------------------------------------------
1,500 Communications System, Inc. 22,125
----------------------------------------------------------------
3,300 (a) Compression Labs, Inc. 21,038
----------------------------------------------------------------
3,700 (a) Compucom System, Inc. 36,075
----------------------------------------------------------------
3,000 (a) Computer Horizons Corp. 151,500
----------------------------------------------------------------
800 Computer Language Research, Inc. 12,600
----------------------------------------------------------------
5,100 (a) Computer Network Technology 36,338
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
TECHNOLOGY--CONTINUED
----------------------------------------------------------------
5,400 (a) Computer Products, Inc. $ 87,413
----------------------------------------------------------------
2,000 Computer Task Group, Inc. 55,750
----------------------------------------------------------------
14,600 Computervision Corp. 177,025
----------------------------------------------------------------
5,000 (a) Comverse Technology, Inc. 116,875
----------------------------------------------------------------
5,350 (a) Continuum, Inc. 304,950
----------------------------------------------------------------
2,600 (a) Control Data Systems, Inc. 61,100
----------------------------------------------------------------
4,400 (a) CopyTele, Inc. 52,800
----------------------------------------------------------------
1,320 (a) Cray Research, Inc. 38,940
----------------------------------------------------------------
4,850 (a) Credence Systems Corp. 104,881
----------------------------------------------------------------
2,500 (a) Cree Research, Inc. 45,625
----------------------------------------------------------------
1,700 (a) CrossComm Corp. 17,850
----------------------------------------------------------------
800 Cubic Corp. 24,800
----------------------------------------------------------------
600 Curtiss Wright Corp. 30,675
----------------------------------------------------------------
4,300 (a) Cyrix Corp. 131,688
----------------------------------------------------------------
1,650 (a) D H Technology, Inc. 41,663
----------------------------------------------------------------
1,800 (a) DII Group, Inc. 62,550
----------------------------------------------------------------
3,400 (a) DSP Communications, Inc. 135,150
----------------------------------------------------------------
1,700 (a) DSP Group, Inc. 21,675
----------------------------------------------------------------
5,200 Dallas Semiconductor Corp. 101,400
----------------------------------------------------------------
2,400 Daniel Industries, Inc. 37,200
----------------------------------------------------------------
8,900 (a) Data General Corp. 136,838
----------------------------------------------------------------
1,300 (a) Dialogic Corp. 60,450
----------------------------------------------------------------
2,700 (a) Digi International, Inc. 76,275
----------------------------------------------------------------
1,000 (a) Digital Link Corp. 19,000
----------------------------------------------------------------
3,700 (a) Digtial Microwave Corp. 43,013
----------------------------------------------------------------
3,200 (a) Dionex Corp. 117,200
----------------------------------------------------------------
4,300 (a) Dynatech Corp. 110,725
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
TECHNOLOGY--CONTINUED
----------------------------------------------------------------
1,800 (a) EIS International, Inc. $ 30,150
----------------------------------------------------------------
1,900 (a) EPIC Design Technology, Inc. 65,075
----------------------------------------------------------------
2,000 (a) Electro Scientific Industries, Inc. 48,000
----------------------------------------------------------------
4,000 (a) Electroglas, Inc. 78,000
----------------------------------------------------------------
5,500 (a) Electronics for Imaging, Inc. 335,500
----------------------------------------------------------------
700 (a) Eltron International, Inc. 20,125
----------------------------------------------------------------
1,200 (a) Emulex Corp. 22,050
----------------------------------------------------------------
1,200 (a) Encad, Inc. 41,250
----------------------------------------------------------------
2,000 (a) Esterline Technologies Corp. 46,000
----------------------------------------------------------------
1,900 (a) Evans & Sutherland Computer Co. 51,300
----------------------------------------------------------------
4,900 (a) Exabyte Corp. 85,750
----------------------------------------------------------------
2,050 (a) Exar Corp. 33,825
----------------------------------------------------------------
1,400 (a) Excalibur Technologies Corp. 36,050
----------------------------------------------------------------
9,600 (a) Executone Information Systems, Inc. 31,200
----------------------------------------------------------------
1,000 (a) Expert Software, Inc. 13,000
----------------------------------------------------------------
4,300 (a) FORE Systems, Inc. 339,700
----------------------------------------------------------------
4,000 (a) FSI International, Inc. 58,500
----------------------------------------------------------------
4,600 (a) FTP Software, Inc. 45,425
----------------------------------------------------------------
3,000 (a) Filenet Corp. 168,000
----------------------------------------------------------------
700 (a) Firefox Communications, Inc. 6,475
----------------------------------------------------------------
1,700 (a) Fusion Systems Corp. 49,300
----------------------------------------------------------------
1,100 (a) GTI Corp. 8,800
----------------------------------------------------------------
1,350 (a) Gasonics International Corp. 20,419
----------------------------------------------------------------
5,800 GenCorp, Inc. 77,575
----------------------------------------------------------------
4,400 (a) GenRad, Inc. 66,550
----------------------------------------------------------------
4,600 (a) General DataComm Industries, Inc. 63,250
----------------------------------------------------------------
2,900 (a) General Magic, Inc. 16,675
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
TECHNOLOGY--CONTINUED
----------------------------------------------------------------
3,700 (a) Genus, Inc. $ 29,600
----------------------------------------------------------------
9,300 Geotek Industries, Inc. 96,488
----------------------------------------------------------------
4,000 Gerber Scientific, Inc. 67,500
----------------------------------------------------------------
3,200 (a) Global Village Communications 55,200
----------------------------------------------------------------
1,600 (a) Gupta Corp. 7,600
----------------------------------------------------------------
1,700 (a) HADCO Corp. 51,638
----------------------------------------------------------------
825 Hach Co. 14,231
----------------------------------------------------------------
1,500 Harmon Industries, Inc. 24,375
----------------------------------------------------------------
1,600 Helix Technology Corp. 60,300
----------------------------------------------------------------
1,600 Henry Jack & Associates, Inc. 50,200
----------------------------------------------------------------
1,200 (a) Hutchinson Technology, Inc. 63,600
----------------------------------------------------------------
3,600 (a) Hyperion Software Corp. 45,000
----------------------------------------------------------------
800 (a) IPC Information Systems, Inc. 19,400
----------------------------------------------------------------
1,600 (a) In Focus Systems, Inc. 80,800
----------------------------------------------------------------
2,200 (a) Inacom Corp. 45,375
----------------------------------------------------------------
6,400 (a) Information Resources, Inc. 92,000
----------------------------------------------------------------
1,800 (a) Inso Corp. 97,650
----------------------------------------------------------------
2,150 (a) Integrated Circuit System, Inc. 24,759
----------------------------------------------------------------
3,000 (a) Integrated Process Equipment Corp. 78,375
----------------------------------------------------------------
3,200 (a) Integrated Silicon Solution, Inc. 53,200
----------------------------------------------------------------
3,000 (a) Integrated Systems, Inc. 87,750
----------------------------------------------------------------
492 (a) Integrated Systems Consulting Group, Inc., Rights 8,850
----------------------------------------------------------------
7,200 Intelligent Electronics, Inc. 45,900
----------------------------------------------------------------
1,800 (a) Inter-Tel, Inc. 38,025
----------------------------------------------------------------
10,400 (a) Interdigital Communications Corp. 86,450
----------------------------------------------------------------
9,200 (a) Intergraph Corp. 116,725
----------------------------------------------------------------
10,500 (a) International Rectifier Corp. 236,250
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
TECHNOLOGY--CONTINUED
----------------------------------------------------------------
4,200 (a) Intersolv, Inc. $ 45,675
----------------------------------------------------------------
3,700 (a) Intervoice, Inc. 103,600
----------------------------------------------------------------
13,600 (a) Iomega Corp. 744,600
----------------------------------------------------------------
3,300 (a) Irvine Sensors Corp. 20,213
----------------------------------------------------------------
2,400 (a) Itron, Inc. 141,000
----------------------------------------------------------------
1,100 John Fluke Manufacturing, Co. 42,488
----------------------------------------------------------------
3,800 (a) Keane, Inc. 149,625
----------------------------------------------------------------
5,600 (a) Kent Electronics Corp. 235,900
----------------------------------------------------------------
1,500 (a) Key Tronic Corp. 9,000
----------------------------------------------------------------
1,500 (a) Kronos, Inc. 44,625
----------------------------------------------------------------
4,500 (a) Kulicke & Soffa Industries 85,500
----------------------------------------------------------------
8,100 (a) LTX Corp. 77,963
----------------------------------------------------------------
5,150 (a) Lattice Semiconductor Corp. 168,663
----------------------------------------------------------------
3,000 (a) Level One Communications, Inc. 79,500
----------------------------------------------------------------
2,800 Logicon, Inc. 83,300
----------------------------------------------------------------
32 (a) Lynx Therapeutic, Inc. 6
----------------------------------------------------------------
2,000 MTS Systems Corp. 42,000
----------------------------------------------------------------
3,000 MacNeal Schwendler Corp. 40,875
----------------------------------------------------------------
7,100 (a) Macromedia, Inc. 267,581
----------------------------------------------------------------
1,600 (a) Manugistics Group, Inc. 26,000
----------------------------------------------------------------
800 (a) Mapinfo Corp. 10,700
----------------------------------------------------------------
2,100 (a) Marcam Corp. 24,150
----------------------------------------------------------------
4,000 (a) Marshall Industries 127,500
----------------------------------------------------------------
1,800 (a) Mattson Technology, Inc. 27,450
----------------------------------------------------------------
3,900 (a) McAfee Associates, Inc. 238,875
----------------------------------------------------------------
2,700 Measurex Corp. 78,300
----------------------------------------------------------------
2,800 (a) Mercury Interactive Corp. 38,500
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
TECHNOLOGY--CONTINUED
----------------------------------------------------------------
5,700 (a) Merisel, Inc. $ 17,100
----------------------------------------------------------------
800 (a) Merix Corp. 30,200
----------------------------------------------------------------
7,300 Methode Electronics, Inc., Class A 122,275
----------------------------------------------------------------
2,600 (a) Metricom, Inc. 35,750
----------------------------------------------------------------
1,200 (a) Micrel, Inc. 20,400
----------------------------------------------------------------
2,700 (a) Micro Linear Corp. 32,063
----------------------------------------------------------------
1,800 (a) MicroTouch Systems, Inc. 33,075
----------------------------------------------------------------
3,600 (a) Microcom, Inc. 87,750
----------------------------------------------------------------
1,000 (a) Microdyne Corp. 8,000
----------------------------------------------------------------
2,300 (a) Micron Electronics, Inc. 28,175
----------------------------------------------------------------
900 (a) Microtest, Inc. 8,761
----------------------------------------------------------------
3,700 (a) Mylex Corp. 90,188
----------------------------------------------------------------
3,000 National Computer Systems, Inc. 65,250
----------------------------------------------------------------
5,400 National Data Corp. 190,350
----------------------------------------------------------------
800 (a) National Instruments Corp. 19,600
----------------------------------------------------------------
6,500 (a) Netmanage, Inc. 95,875
----------------------------------------------------------------
2,500 (a) Network Computing Devices 9,688
----------------------------------------------------------------
4,200 (a) Network Equipment Technologies, Inc. 107,100
----------------------------------------------------------------
4,400 (a) Network General Corp. 194,150
----------------------------------------------------------------
2,200 (a) Network Peripherals, Inc. 32,725
----------------------------------------------------------------
1,700 (a) Norand Corp. 35,275
----------------------------------------------------------------
2,000 NumereX Corp., Class A 11,750
----------------------------------------------------------------
3,800 OEA, Inc. 149,150
----------------------------------------------------------------
13,900 (a) OIS Optical Imaging Systems, Inc. 55,600
----------------------------------------------------------------
2,400 (a) Oak Technology, Inc. 42,900
----------------------------------------------------------------
5,340 (a) Octel Communications Corp. 238,965
----------------------------------------------------------------
600 (a) Open Environment Corp. 3,900
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
TECHNOLOGY--CONTINUED
----------------------------------------------------------------
1,500 (a) Opti, Inc. $ 9,000
----------------------------------------------------------------
1,800 (a) Optical Data Systems, Inc. 49,275
----------------------------------------------------------------
1,000 (a) Orbit Semiconductor, Inc. 7,625
----------------------------------------------------------------
4,900 (a) Orbital Sciences Corp. 66,150
----------------------------------------------------------------
1,300 (a) Ortel Corp. 20,150
----------------------------------------------------------------
2,700 (a) P-COM, Inc. 66,825
----------------------------------------------------------------
1,200 (a) PRI Automation, Inc. 33,900
----------------------------------------------------------------
2,100 (a) PSC, Inc. 18,900
----------------------------------------------------------------
2,500 (a) Pairgain Technologies, Inc. 238,750
----------------------------------------------------------------
1,000 (a) Panda Project, Inc. 13,375
----------------------------------------------------------------
2,000 Park Electrochemical Corp. 50,000
----------------------------------------------------------------
2,000 (a) Peak Technologies Group, Inc. 48,500
----------------------------------------------------------------
2,700 (a) Phoenix Technology, Ltd. 43,200
----------------------------------------------------------------
1,500 (a) Photronic Labs, Inc. 39,563
----------------------------------------------------------------
7,600 (a) PictureTel Corp. 258,400
----------------------------------------------------------------
5,025 Pioneer Standard Electronics, Inc. 81,656
----------------------------------------------------------------
1,500 (a) Planar Systems, Inc. 21,750
----------------------------------------------------------------
1,800 (a) Plantronics, Inc. 72,225
----------------------------------------------------------------
2,900 (a) Platinum Software Corp. 24,288
----------------------------------------------------------------
9,898 (a) Platinum Technology, Inc. 144,758
----------------------------------------------------------------
2,600 (a) Premisys Communications, Inc. 113,750
----------------------------------------------------------------
700 (a) Printronix, Inc. 14,350
----------------------------------------------------------------
2,400 (a) Progress Software Corp. 37,800
----------------------------------------------------------------
1,600 (a) Proxima Corp. 23,000
----------------------------------------------------------------
5,500 (a) Quarterdeck Office Systems 85,250
----------------------------------------------------------------
1,400 (a) Quickresponse Services, Inc. 40,950
----------------------------------------------------------------
2,600 (a) Quickturn Design Systems, Inc. 38,350
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
TECHNOLOGY--CONTINUED
----------------------------------------------------------------
3,200 (a) Racotek, Inc. $ 15,000
----------------------------------------------------------------
3,800 (a) Radius, Inc. 17,575
----------------------------------------------------------------
3,000 (a) Rational Software Corp. 160,125
----------------------------------------------------------------
1,200 (a) Remedy Corp. 94,200
----------------------------------------------------------------
3,000 (a) Robotic Vision Systems, Inc. 51,750
----------------------------------------------------------------
4,100 (a) Rohr, Inc. 74,825
----------------------------------------------------------------
10,800 (a) S3, Inc. 152,550
----------------------------------------------------------------
6,900 (a) SCI Systems, Inc. 295,838
----------------------------------------------------------------
600 (a) SDL, Inc. 24,450
----------------------------------------------------------------
2,950 (a) Safeguard Scientifics, Inc. 197,650
----------------------------------------------------------------
3,800 (a) Sanmina Corp. 134,900
----------------------------------------------------------------
3,500 (a) Santa Cruz Operation, Inc. 26,906
----------------------------------------------------------------
2,100 (a) Security Dynamics Technologies, Inc. 177,450
----------------------------------------------------------------
1,350 (a) Semitool, Inc. 20,756
----------------------------------------------------------------
1,800 Sequa Corp., Class A 63,225
----------------------------------------------------------------
7,700 (a) Sequent Computer System, Inc. 112,613
----------------------------------------------------------------
5,200 (a) Shiva Corp. 310,700
----------------------------------------------------------------
5,600 (a) Sierra Semiconductor Corp. 91,700
----------------------------------------------------------------
2,200 (a) Siliconix, Inc. 66,000
----------------------------------------------------------------
600 (a) Simula, Inc. 10,050
----------------------------------------------------------------
900 (a) Softdesk, Inc. 12,825
----------------------------------------------------------------
5,900 (a) Softkey International, Inc. 165,200
----------------------------------------------------------------
1,500 (a) Software Artistry, Inc. 10,875
----------------------------------------------------------------
600 (a) Special Devices, Inc. 12,900
----------------------------------------------------------------
1,800 (a) Spectrian Corp. 44,550
----------------------------------------------------------------
5,200 (a) Stac Electronics 57,850
----------------------------------------------------------------
3,000 (a) Standard Microsystems Corp. 48,750
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
TECHNOLOGY--CONTINUED
----------------------------------------------------------------
6,000 (a) Stratus Computer, Inc. $ 168,750
----------------------------------------------------------------
7,100 (a) Structural Dynamics Research Corp. 226,313
----------------------------------------------------------------
2,000 (a) SubMicron Systems, Inc. 19,750
----------------------------------------------------------------
1,400 (a) Summa Four, Inc. 23,800
----------------------------------------------------------------
2,200 (a) SyQuest Technology, Inc. 14,163
----------------------------------------------------------------
3,300 (a) Symmetricom, Inc. 37,538
----------------------------------------------------------------
6,550 System Software Association 156,381
----------------------------------------------------------------
3,300 (a) Systems & Computer Technology Corp. 49,088
----------------------------------------------------------------
2,000 (a) Systemsoft Corp. 55,750
----------------------------------------------------------------
1,500 (a) TCSI Corp. 49,125
----------------------------------------------------------------
1,200 (a) TSX Corp. 28,500
----------------------------------------------------------------
7,900 (a) Tech Data Corp. 154,050
----------------------------------------------------------------
1,500 (a) Tech-Sym Corp. 51,938
----------------------------------------------------------------
1,400 (a) Tekelec, Inc. 19,600
----------------------------------------------------------------
3,500 (a) Telular Corp. 19,688
----------------------------------------------------------------
3,700 Telxon Corp. 85,100
----------------------------------------------------------------
2,150 (a) Thermotrex Corp. 112,606
----------------------------------------------------------------
3,800 Thiokol Corp. 162,450
----------------------------------------------------------------
1,500 (a) Three-Five Systems, Inc. 21,000
----------------------------------------------------------------
3,100 (a) Tracor, Inc. 58,513
----------------------------------------------------------------
3,700 (a) Triad Systems Corp. 21,738
----------------------------------------------------------------
2,800 (a) Trident Microsystems, Inc. 49,000
----------------------------------------------------------------
4,500 (a) Trimble Navigation Ltd. 108,563
----------------------------------------------------------------
3,100 Tseng Laboratories, Inc. 29,838
----------------------------------------------------------------
2,200 (a) Ultratech Stepper, Inc. 57,475
----------------------------------------------------------------
2,100 Unitrode Corp. 56,438
----------------------------------------------------------------
5,500 (a) Verifone, Inc. 231,000
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
TECHNOLOGY--CONTINUED
----------------------------------------------------------------
1,400 (a) Veritas Software Corp. $ 63,525
----------------------------------------------------------------
3,600 (a) Viewlogic Systems, Inc. 49,500
----------------------------------------------------------------
3,000 (a) Vitesse Semiconductor Corp. 89,625
----------------------------------------------------------------
1,900 (a) Wall Data, Inc. 38,475
----------------------------------------------------------------
8,000 (a) Wang Laboratories, Inc. 189,500
----------------------------------------------------------------
1,800 Watkins Johnson Co. 60,750
----------------------------------------------------------------
1,100 (a) WavePhore, Inc. 14,575
----------------------------------------------------------------
1,900 (a) Whittaker Corp. 43,225
----------------------------------------------------------------
1,200 (a) Wind River Systems, Inc. 46,800
----------------------------------------------------------------
1,100 Wireless Telecom Group, Inc. 19,113
----------------------------------------------------------------
1,800 (a) Wonderware Corp. 40,500
----------------------------------------------------------------
2,800 Wyle Labs 117,250
----------------------------------------------------------------
6,700 Wyman Gordon Co. 121,438
----------------------------------------------------------------
1,000 (a) XcelleNet, Inc. 14,750
----------------------------------------------------------------
3,000 (a) Xircom, Inc. 48,375
----------------------------------------------------------------
4,500 (a) Zilog, Inc. 169,313
---------------------------------------------------------------- ------------
Total 23,094,844
---------------------------------------------------------------- ------------
TRANSPORTATION--1.9%
----------------------------------------------------------------
4,900 Airborne Freight Corp. 129,238
----------------------------------------------------------------
3,700 Airlines Express International Corp. 103,600
----------------------------------------------------------------
3,000 Alaska Air Group, Inc. 76,125
----------------------------------------------------------------
9,402 (a) America West Airlines, Inc., Class B 197,442
----------------------------------------------------------------
4,700 (a) American Freightways Corp. 71,088
----------------------------------------------------------------
6,100 American President Cos., Ltd. 145,638
----------------------------------------------------------------
700 (a) Amtran, Inc. 7,175
----------------------------------------------------------------
4,400 Arnold Industries, Inc. 71,500
----------------------------------------------------------------
800 (a) Celadon Group, Inc. 10,600
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
TRANSPORTATION--CONTINUED
----------------------------------------------------------------
5,600 Comair Holdings, Inc. $ 207,200
----------------------------------------------------------------
3,500 (a) Continental Airlines, Inc., Class B 198,625
----------------------------------------------------------------
700 (a) Covenant Transport, Inc., Class A 12,163
----------------------------------------------------------------
2,700 Expeditors International Washington, Inc. 80,325
----------------------------------------------------------------
900 Florida East Coast, Inc. 80,100
----------------------------------------------------------------
3,532 (a) Fritz Companies, Inc. 129,801
----------------------------------------------------------------
1,682 Frozen Food Express Industries, Inc. 21,446
----------------------------------------------------------------
2,700 Harper Group 52,313
----------------------------------------------------------------
2,397 (a) Heartland Express, Inc. 70,112
----------------------------------------------------------------
5,400 Hunt (J.B.) Transportation Services, Inc. 110,025
----------------------------------------------------------------
1,125 International Shipholding Corp. 20,813
----------------------------------------------------------------
6,300 (a) Kirby Corp. 111,038
----------------------------------------------------------------
500 (a) Knight Transportation, Inc. 9,500
----------------------------------------------------------------
2,900 (a) Landstar System, Inc. 79,750
----------------------------------------------------------------
2,000 (a) M.S. Carriers, Inc. 38,125
----------------------------------------------------------------
6,500 (a) Mesa Airlines, Inc. 79,625
----------------------------------------------------------------
6,300 OMI Corp. 54,338
----------------------------------------------------------------
1,000 (a) Old Dominion Freight Lines, Inc. 12,000
----------------------------------------------------------------
6,700 Overseas Shipholding Group, Inc. 134,838
----------------------------------------------------------------
1,500 (a) Railtex, Inc. 36,750
----------------------------------------------------------------
1,700 SkyWest, Inc. 25,288
----------------------------------------------------------------
2,600 (a) Swift Transportation Co. 48,750
----------------------------------------------------------------
4,950 TNT Freightways Corp. 111,994
----------------------------------------------------------------
1,884 Tidewater, Inc. 80,070
----------------------------------------------------------------
3,400 Tower Air Corp., Inc. 23,588
----------------------------------------------------------------
600 (a) US Xpress Enterprises, Inc., Class A 4,425
----------------------------------------------------------------
1,000 (a) USA Truck, Inc. 11,250
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
TRANSPORTATION--CONTINUED
----------------------------------------------------------------
14,600 USAir Group, Inc. $ 259,150
----------------------------------------------------------------
3,200 Werner Enterprises, Inc. 77,600
----------------------------------------------------------------
3,600 (a) Worldcorp, Inc. 34,200
----------------------------------------------------------------
4,800 Yellow Corp. 58,800
---------------------------------------------------------------- ------------
Total 3,086,408
---------------------------------------------------------------- ------------
UTILITIES--4.7%
----------------------------------------------------------------
3,400 (a) American Mobile Satellite Corp. 66,300
----------------------------------------------------------------
800 (a) American Paging, Inc. 7,400
----------------------------------------------------------------
1,500 Aquarion Co. 35,438
----------------------------------------------------------------
1,200 Aquila Gas Pipeline Co. 16,650
----------------------------------------------------------------
4,846 (a) Arch Communications Group, Inc. 115,093
----------------------------------------------------------------
3,700 (a) Associated Group, Inc., Class A 104,063
----------------------------------------------------------------
3,750 Atmos Energy Corp. 92,813
----------------------------------------------------------------
3,000 Bay State Gas Co. 83,250
----------------------------------------------------------------
3,200 Black Hills Corp. 80,000
----------------------------------------------------------------
4,700 (a) C-Tec Corp. 139,825
----------------------------------------------------------------
2,800 CFW Communications Co. 50,400
----------------------------------------------------------------
1,400 California Water Service Corp. 48,825
----------------------------------------------------------------
2,000 Cascade Natural Gas Corp. 30,500
----------------------------------------------------------------
2,400 (a) Cellular Communications International, Inc. 87,600
----------------------------------------------------------------
2,500 (a) Cellular Communications of Puerto Rico, Inc. 66,875
----------------------------------------------------------------
2,305 (a) Centennial Cellular Corp., Class A 37,744
----------------------------------------------------------------
4,100 Central Hudson Gas & Electric Service 118,900
----------------------------------------------------------------
5,200 Central LA Electric Co. 133,250
----------------------------------------------------------------
7,300 Central Maine Power Co. 104,025
----------------------------------------------------------------
2,650 Central VT Public Service Corp. 37,763
----------------------------------------------------------------
3,100 Cilcorp, Inc. 133,688
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
UTILITIES--CONTINUED
----------------------------------------------------------------
16,902 (a) Citizens Utilities Co., Class B $ 198,597
----------------------------------------------------------------
1,900 Colonial Gas Co. 42,750
----------------------------------------------------------------
2,100 Commonwealth Energy System 96,338
----------------------------------------------------------------
3,200 (a) Comnet Cellular, Inc. 105,600
----------------------------------------------------------------
2,000 Connecticut Energy Corp. 38,750
----------------------------------------------------------------
2,200 Connecticut Natural Gas Corp. 52,250
----------------------------------------------------------------
1,500 Consumers Water Co. 25,500
----------------------------------------------------------------
1,500 E Town 41,063
----------------------------------------------------------------
4,700 Eastern Enterprises 168,613
----------------------------------------------------------------
4,600 Eastern Utilities Association 93,725
----------------------------------------------------------------
3,400 Empire Distribution Electric Co. 62,050
----------------------------------------------------------------
2,200 Energen Corp. 50,325
----------------------------------------------------------------
1,100 Green Mountain Power Corp. 29,563
----------------------------------------------------------------
1,200 Hickory Tech Corp. 34,200
----------------------------------------------------------------
6,900 IES Industries, Inc. 182,850
----------------------------------------------------------------
1,500 IWC Resources Corp. 30,750
----------------------------------------------------------------
1,400 (a) Incomnet, Inc. 7,175
----------------------------------------------------------------
4,450 Indiana Energy, Inc. 106,244
----------------------------------------------------------------
1,100 (a) Intercel, Inc. 24,750
----------------------------------------------------------------
7,033 (a) International Cabletel, Inc. 205,715
----------------------------------------------------------------
2,200 Interstate Power Co. 67,375
----------------------------------------------------------------
4,601 K N Energy, Inc. 147,232
----------------------------------------------------------------
7,900 (a) Kelley Oil & Gas Corp. 18,763
----------------------------------------------------------------
3,900 Laclede Gas Co. 91,650
----------------------------------------------------------------
7,100 Lincoln Telecommunications Co. 120,700
----------------------------------------------------------------
6,650 MDU Resources Group, Inc. 145,469
----------------------------------------------------------------
4,200 Madison Gas & Electric Co. 101,850
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
UTILITIES--CONTINUED
----------------------------------------------------------------
1,700 (a) MetroCall, Inc. $ 36,125
----------------------------------------------------------------
1,800 (a) NETCOM On-line Communication Services, Inc. 64,575
----------------------------------------------------------------
1,800 NUI Corp. 33,525
----------------------------------------------------------------
4,200 New Jersey Resources Corp. 119,175
----------------------------------------------------------------
1,400 North Carolina Natural Gas 35,525
----------------------------------------------------------------
3,500 Northwest Natural Gas Co. 113,750
----------------------------------------------------------------
2,100 Northwestern Public Service Co. 58,538
----------------------------------------------------------------
6,300 Oneok, Inc. 162,225
----------------------------------------------------------------
3,100 Orange & Rockland Utilities, Inc. 105,788
----------------------------------------------------------------
2,500 Otter Tail Power Co. 90,625
----------------------------------------------------------------
1,100 (a) Palmer Wireless, Inc. 22,756
----------------------------------------------------------------
900 Pennsylvania Enterprises 35,438
----------------------------------------------------------------
2,300 Philadelphia Suburban Corp. 53,475
----------------------------------------------------------------
6,700 Piedmont Natural Gas, Inc. 144,888
----------------------------------------------------------------
4,031 (a) PriceCellular Corp., Class A 52,907
----------------------------------------------------------------
1,200 (a) ProNet, Inc. 37,950
----------------------------------------------------------------
9,800 Public Service Co. New Mexico 171,500
----------------------------------------------------------------
4,200 Public Service Co. North Carolina, Inc. 67,725
----------------------------------------------------------------
200 SIG Corp., Inc. 6,675
----------------------------------------------------------------
500 SJW Corp. 18,563
----------------------------------------------------------------
7,800 (a) Seagull Energy Corp. 190,125
----------------------------------------------------------------
7,000 Sierra Pacific Resources 169,750
----------------------------------------------------------------
2,424 South Jersey Industries, Inc. 56,661
----------------------------------------------------------------
2,796 Southeastern Michigan Gas Energy 49,280
----------------------------------------------------------------
1,800 Southern CA Water Co. 38,700
----------------------------------------------------------------
3,500 (a) Southern Indiana Gas & Electric Co. 116,813
----------------------------------------------------------------
1,834 (a) Southern Union Co. 40,348
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
UTILITIES--CONTINUED
----------------------------------------------------------------
5,700 Southwest Gas Corp. $ 94,763
----------------------------------------------------------------
5,700 Southwestern Energy Co. 79,088
----------------------------------------------------------------
900 St. Joseph Light & Power Co. 27,675
----------------------------------------------------------------
1,000 (a) T-Netix, Inc. 12,250
----------------------------------------------------------------
2,400 TNP Enterprises, Inc. 57,000
----------------------------------------------------------------
2,160 (a) Tejas Gas Corp. 108,000
----------------------------------------------------------------
3,500 (a) Tejas Power Corp., Class A 27,563
----------------------------------------------------------------
900 (a) Transaction Network Services, Inc. 34,650
----------------------------------------------------------------
37,600 (a) Tucson Electric Power Co. 108,100
----------------------------------------------------------------
3,300 (a) U.S. Long Distance Corp. 84,975
----------------------------------------------------------------
7,700 UGI Corp. 172,288
----------------------------------------------------------------
2,100 USX-Delhi Group 29,138
----------------------------------------------------------------
2,800 United Cities Gas Co. 43,400
----------------------------------------------------------------
3,200 United Illuminating Co. 116,400
----------------------------------------------------------------
5,636 United Water Resources, Inc. 70,450
----------------------------------------------------------------
4,200 WICOR, Inc. 144,375
----------------------------------------------------------------
5,600 WPS Resources Corp. 177,100
----------------------------------------------------------------
5,600 Washington Energy Co. 108,500
----------------------------------------------------------------
3,600 Western Gas Resources, Inc. 53,100
----------------------------------------------------------------
700 (a) Xpedite Systems, Inc. 12,250
----------------------------------------------------------------
2,300 Yankee Energy Systems, Inc. 51,463
---------------------------------------------------------------- ------------
Total 7,586,182
---------------------------------------------------------------- ------------
TOTAL COMMON STOCKS (IDENTIFIED COST $110,398,826) 137,905,865
---------------------------------------------------------------- ------------
</TABLE>
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
U.S. TREASURY--0.3%
- -----------------------------------------------------------------------------------
$ 500,000 United States Treasury Bill, 6/20/1996 (AT AMORTIZED COST) $ 496,715
---------------------------------------------------------------- ------------
(B)REPURCHASE AGREEMENT--13.5%
- -----------------------------------------------------------------------------------
$21,580,000 BT Securities Corporation, 5.35%, dated 4/30/96, due 5/1/1996
(AT AMORTIZED COST) $ 21,580,000
---------------------------------------------------------------- ------------
TOTAL INVESTMENTS (IDENTIFIED COST $132,433,716)(C) $159,982,580
---------------------------------------------------------------- ------------
</TABLE>
- The Fund purchases stock index futures contracts to efficiently manage cash
flows resulting from shareholder purchases and redemptions, dividend and
capital gain payments to shareholders and corporate actions while
maintaining exposure to the stock market and minimizing trading costs. The
total market value of open futures contracts is $21,215,225 at April 30,
1996, which represents 13.2% of net assets. Taking into consideration these
open futures contracts, the Fund's effective, total exposure to stocks is
99.3%.
(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 $132,433,716.
The net unrealized appreciation of investments on a federal tax basis
amounts to $27,548,864 which is comprised of $36,521,351 appreciation and
$8,972,487 depreciation at April 30, 1996.
Note: The categories of investments are shown as a percentage of net assets
($160,269,976) at
April 30, 1996.
The following acronyms are used throughout this portfolio:
<TABLE>
<S> <C>
BIG -- Bond Investors Guaranty
LYNX -- Liquid Yield Note Exchangeable
LYONs -- Liquid Yield Option Notes
REIT -- Real Estate Investment Trust
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- -------------------------------------------------------------------------------
Investments in repurchase agreements $ 21,580,000
- ----------------------------------------------------------------
Investments in securities 138,402,580
- ---------------------------------------------------------------- ------------
Total investments in securities, at value (identified and tax
cost $132,433,716) $ 159,982,580
- -------------------------------------------------------------------------------
Income receivable 83,935
- -------------------------------------------------------------------------------
Receivable for investments sold 130,875
- -------------------------------------------------------------------------------
Receivable for shares sold 5,438,336
- -------------------------------------------------------------------------------
Deferred expenses 1,939
- ------------------------------------------------------------------------------- -------------
Total assets 165,637,665
- -------------------------------------------------------------------------------
LIABILITIES:
- -------------------------------------------------------------------------------
Payable to Bank 5,287,875
- ----------------------------------------------------------------
Payable for investments purchased 5,122
- ----------------------------------------------------------------
Payable for daily variation margin 22,975
- ----------------------------------------------------------------
Accrued expenses 51,717
- ---------------------------------------------------------------- ------------
Total liabilities 5,367,689
- ------------------------------------------------------------------------------- -------------
NET ASSETS for 10,862,343 shares outstanding $ 160,269,976
- ------------------------------------------------------------------------------- -------------
NET ASSETS CONSIST OF:
- -------------------------------------------------------------------------------
Paid-in capital $ 129,385,002
- -------------------------------------------------------------------------------
Net unrealized appreciation on investments and futures contracts 28,308,684
- -------------------------------------------------------------------------------
Accumulated net realized gain on investments and
futures contracts 2,481,527
- -------------------------------------------------------------------------------
Undistributed net investment income 94,763
- ------------------------------------------------------------------------------- -------------
Total Net Assets $ 160,269,976
- ------------------------------------------------------------------------------- -------------
NET ASSET VALUE, Offering Price and Redemption Proceeds Per Share:
$160,269,976/10,862,343 shares outstanding) $14.75
- ------------------------------------------------------------------------------- -------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME:
- -------------------------------------------------------------------------------------
Dividends $ 985,512
- -------------------------------------------------------------------------------------
Interest 421,081
- ------------------------------------------------------------------------------------- -----------
Total income 1,406,593
- -------------------------------------------------------------------------------------
EXPENSES--
- -------------------------------------------------------------------------------------
Management fee $344,902
- -------------------------------------------------------------------------
Custodian fees 49,666
- -------------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 34,490
- -------------------------------------------------------------------------
Directors'/Trustees' fees 1,274
- -------------------------------------------------------------------------
Auditing fees 6,916
- -------------------------------------------------------------------------
Legal fees 2,002
- -------------------------------------------------------------------------
Portfolio accounting fees 25,764
- -------------------------------------------------------------------------
Shareholder services fee 172,451
- -------------------------------------------------------------------------
Share registration costs 13,468
- -------------------------------------------------------------------------
Printing and postage 17,472
- -------------------------------------------------------------------------
Insurance premiums 2,184
- -------------------------------------------------------------------------
Taxes 364
- -------------------------------------------------------------------------
Miscellaneous 4,004
- ------------------------------------------------------------------------- --------
Total expenses 674,957
- -------------------------------------------------------------------------
Waivers--
- -------------------------------------------------------------------------
Waiver of management fee $(14,033)
- --------------------------------------------------------------
Waiver of shareholder services fee (144,859)
- -------------------------------------------------------------- --------
Total waivers (158,892)
- --------------------------------------------------------------
Net expenses 516,065
- ------------------------------------------------------------------------------------- -----------
Net investment income 890,528
- ------------------------------------------------------------------------------------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FUTURES CONTRACTS:
- -------------------------------------------------------------------------------------
Net realized gain on investments transactions and futures contracts 1,633,822
- -------------------------------------------------------------------------------------
Net change in unrealized appreciation of investments and futures contracts 20,270,995
- ------------------------------------------------------------------------------------- -----------
Net realized and unrealized gain on investments and future contracts 21,904,817
- ------------------------------------------------------------------------------------- -----------
Change in net assets resulting from operations $22,795,345
- ------------------------------------------------------------------------------------- -----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
(UNAUDITED) YEAR ENDED
APRIL 30, 1996 OCTOBER 31, 1995
---------------- -----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- -------------------------------------------------------------
OPERATIONS--
- -------------------------------------------------------------
Net investment income $ 890,528 $ 1,300,698
- -------------------------------------------------------------
Net realized gain (loss) on investments and futures contracts
transactions ($1,633,822 and $7,103,741 net gains,
respectively, as computed for federal tax purposes) 1,633,822 8,050,853
- -------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on
investments and futures contracts 20,270,995 6,189,544
- ------------------------------------------------------------- -------------- --------------
Change in net assets resulting from operations 22,795,345 15,541,095
- ------------------------------------------------------------- -------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS--
- -------------------------------------------------------------
Distributions from net investment income (902,796) (1,244,470)
- -------------------------------------------------------------
Distributions from net realized gains on investment
transactions and futures contracts (7,105,514) (588,727)
- ------------------------------------------------------------- -------------- --------------
Change in net assets resulting from distributions to
shareholders (8,008,310) (1,833,197)
- ------------------------------------------------------------- -------------- --------------
SHARE TRANSACTIONS--
- -------------------------------------------------------------
Proceeds from sale of shares 62,211,973 111,108,338
- -------------------------------------------------------------
Net asset value of shares issued to shareholders in payment
of
distributions declared 3,620,315 639,919
- -------------------------------------------------------------
Cost of shares redeemed (52,748,507) (91,497,761)
- ------------------------------------------------------------- -------------- --------------
Change in net assets from share transactions 13,083,781 20,250,496
- ------------------------------------------------------------- -------------- --------------
Change in net assets 27,870,816 33,958,394
- -------------------------------------------------------------
NET ASSETS:
- -------------------------------------------------------------
Beginning of period 132,399,160 98,440,766
- ------------------------------------------------------------- -------------- --------------
End of period (including undistributed net investment income
of
$94,763 and $107,032 respectively) $160,269,976 $ 132,399,160
- ------------------------------------------------------------- -------------- --------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(UNAUDITED) YEAR ENDED OCTOBER 31,
APRIL 30, ----------------------------------------
1996 1995 1994 1993 1992(A)
-------------- ------ ------ ------ -------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $13.33 $11.65 $12.66 $10.39 $10.00
- -------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- -------------------------------------------
Net investment income 0.09 0.15 0.11 0.17 0.02
- -------------------------------------------
Net realized and unrealized gain (loss)
on investments and futures contracts 2.14 1.74 (0.23) 2.27 0.38
- ------------------------------------------- ---------- ------ ------ ------ -------
Total from investment operations 2.23 1.89 (0.12) 2.44 0.40
- ------------------------------------------- ---------- ------ ------ ------ -------
LESS DISTRIBUTIONS
- -------------------------------------------
Distributions from net investment income (0.09) (0.14) (0.11) (0.17) (0.01 )
- -------------------------------------------
Distributions from net realized gain on
investment transactions and futures
contracts (0.72) (0.07) (0.78) -- --
- ------------------------------------------- ---------- ------ ------
Total distributions (0.81) (0.21) (0.89) (0.17) (0.01 )
- ------------------------------------------- ---------- ------ ------ ------ -------
NET ASSET VALUE, END OF PERIOD $14.75 $13.33 $11.65 $12.66 $10.39
- ------------------------------------------- ---------- ------ ------ ------ -------
TOTAL RETURN (B) 17.40% 16.44% (0.91)% 23.73% 4.00 %
- -------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -------------------------------------------
Expenses 0.75%* 0.75% 0.73% 0.37% --
- -------------------------------------------
Net investment income 1.29%* 1.23% 0.98% 1.48% 2.04 %*
- -------------------------------------------
Expense waiver/reimbursement (c) 0.23%* 0.05% 0.11% 0.86% 0.87 %*
- -------------------------------------------
SUPPLEMENTAL DATA
- -------------------------------------------
Net assets, end of period (000 omitted) $160,270 $132,399 $98,441 $76,139 $7,751
- -------------------------------------------
Average commission rate paid $0.0597 -- -- -- --
- -------------------------------------------
Portfolio turnover 5% 42% 32% 48% 1 %
- -------------------------------------------
</TABLE>
* Computed on an annualized basis.
(a) Reflects operations for the period from August 10, 1992 (commencement of
operations) to October 31, 1992.
(b) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(See Notes which are an integral part of the Financial Statements)
FEDERATED MINI-CAP FUND
(FORMERLY, MINI-CAP FUND)
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
(1) ORGANIZATION
Federated Index Trust (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 three portfolios. The financial statements
included herein are only those of Federated Mini-Cap 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 seeks to provide investment results corresponding to the aggregate price
and dividend performance of publicly traded common stocks comprising the
small-stock capitalization sector of the United States equity market.
Effective December 5, 1994, the Board of Trustees ("Trustees") changed the name
of the Fund from Mini-Cap Fund to Federated Mini-Cap Fund.
(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 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.
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS--Interest income and expenses
are accrued daily. Bond premium and discount, if applicable, are amortized
as required by the Internal Revenue Code, as amended (the "Code"). Dividend
income and distributions to shareholders are recorded on the ex-dividend
date.
FEDERAL TAXES--It is the Fund's policy to comply with the provisions of the
Code applicable to regulated investment companies and to distribute to
shareholders each year substantially all of its income. Accordingly, no
provisions for federal tax are necessary.
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.
FUTURES CONTRACTS--The Fund purchases stock index futures contracts to
manage cashflows, enhance yield, and to potentially reduce transaction
costs. Upon entering into a stock index futures contract with a broker, the
Fund is required to deposit in a segregated account a specified amount of
cash or U.S. government securities. Futures contracts are valued daily and
unrealized gains or losses are recorded in a "variation margin" account.
Daily, the Fund receives from or pays to the broker a specified amount of
cash based upon changes in the variation margin account. When a contract is
closed, the Fund recognizes a realized gain or loss. For the period ended
April 30, 1996, the Fund had $222,820 realized gains on future contracts.
Futures contracts have market risks, including the risk that the change in
the value of the contract may not correlate with changes in the value of
the underlying securities.
At April 30, 1996, the Fund had outstanding futures contracts as set forth
below:
<TABLE>
<CAPTION>
UNREALIZED
EXPIRATION CONTRACTS TO APPRECIATION
DATE DELIVER/RECEIVE POSITION (DEPRECIATION)
----------- --------------- --------- --------------
<C> <S> <C> <C>
June 1996 93 S&P 400 Long $ 96,380
58 Russell
June 1996 2000 Long 658,920
--------------
Net Unrealized Appreciation on Futures
Contracts $755,300
</TABLE>
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.
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
(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, 1996 OCTOBER 31, 1995
- ----------------------------------------------------- ---------------- ----------------
<S> <C> <C>
Shares sold 4,508,925 8,827,568
- -----------------------------------------------------
Shares issued to shareholders in payment of
distributions declared 272,873 52,957
- -----------------------------------------------------
Shares redeemed (3,851,483) (7,400,092)
- ----------------------------------------------------- ------------- --------------
Net change resulting from share transactions 930,315 1,480,433
- ----------------------------------------------------- ------------- --------------
</TABLE>
(4) MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEE--Federated Management, the Fund's manager, ("Manager"), receives
for its services an annual investment advisory fee equal to 0.50% of the Fund's
average daily net assets.
Under the terms of a sub-advisory agreement between the Manager and the Trust
Division of ANB Investment Management and Trust Company ("Sub-Manager"), the
Sub-Manager receives an annual fee from the Manager equal to .065% of the Fund's
average daily net assets. In addition, the Sub-Manager may voluntarily choose to
reduce its compensation. The Manager may voluntarily choose to waive any portion
of its fee. The Manager can modify or terminate this voluntary waiver 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.
SHAREHOLDER SERVICES FEE--Under the terms of a Shareholder Services Agreement
with Federated Shareholder Services ("FSS"), the Fund will pay FSS up to 0.25%
of average daily net assets of the Fund shares for the period. The fee paid to
FSS is used to finance certain services for shareholders and to maintain
shareholder accounts. FSS may voluntarily choose to waive any portion of its
fee. FSS can modify or terminate this voluntary waiver at any time at its sole
discretion.
TRANSFER AND DIVIDEND DISBURSING AGENT FEES AND EXPENSES--FServ, through its
subsidiary, Federated Shareholder Services Company serves as transfer and
dividend disbursing agent for the
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
Fund. The fee paid to FServ 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 $22,217 were borne initially
by the Manager.
The Fund has agreed to reimburse the Manager for the organizational expenses
during the five year period following effective date. For the period ended April
30, 1996, the Fund paid $4,937 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, 1996, were as follows:
<TABLE>
<S> <C>
- --------------------------------------------------------------------------------
PURCHASES $9,468,732
- -------------------------------------------------------------------------------- ----------
SALES $5,672,160
- -------------------------------------------------------------------------------- ----------
</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
J. Christopher Donahue J. Christopher Donahue
James E. Dowd Executive Vice President
Lawrence D. Ellis, M.D. Edward C. Gonzales
Edward L. Flaherty, Jr. Executive Vice President
Peter E. Madden John W. McGonigle
Gregor F. Meyer Executive Vice President,
John E. Murray, Jr. Treasurer and Secretary
Wesley W. Posvar Richard B. Fisher
Marjorie P. Smuts Vice President
J. Crilley Kelly
Assistant Secretary
</TABLE>
- --------------------------------------------------------------------------------
FEDERATED
- --------------------------------------------------------------------------------
MID-CAP
- --------------------------------------------------------------------------------
FUND
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
TO SHAREHOLDERS
APRIL 30, 1996
LOGO
31420E205
3042108 (8/96)
PRESIDENT'S MESSAGE
- --------------------------------------------------------------------------------
Dear Shareholder:
I am pleased to present the Semi-Annual Report to Shareholders of Federated
Mid-Cap Fund for the six-month period from November 1, 1995 through April 30,
1996. The report begins with an investment review, followed by the fund's
portfolio and its financial statements.
Through Federated Mid-Cap Fund, investors can seek performance that tracks that
of the Standard & Poor's MidCap 400 Index (S&P 400), an unmanaged index
consisting of 400 common stocks issued by medium-sized domestic companies with a
median market capitalization of $1.1 billion. Stocks in the fund are weighted in
the same proportion as the stocks that make up the S&P 400, except when the
percentage is too minor to efficiently replicate.**
In a very positive environment for mid-cap stocks, the fund produced a total
return of 12.77% over the six-month period.* Contributing to those returns were
dividend income of $0.12 per share, capital gains of $0.74 per share, and a 5%
increase in net asset value. On the last day of the report period, the fund's
net assets stood at $55.6 million.
Thank you for participating in this efficient approach to pursuing the growth
potential of mid-cap stocks. As always, we invite your comments and suggestions.
Sincerely,
LOGO
Glen R. Johnson
President
June 15, 1996
* Performance quoted represents past performance and is not indicative of
future results. Investment return and principal value will fluctuate, so that
an investor's shares, when redeemed, may be worth more or less than their
original cost.
** The Mid-Cap Fund seeks investment results that correspond to the aggregate
price and total return performance of the Standard & Poor's MidCap Index.
"Standard & Poor's(R)," "S&P(R)," "S&P MidCap 400 Index," and "Standard &
Poor's MidCap 400 Index" are trademarks of Standard and Poor's Corporation
("S&P") and have been licensed for use by Federated Securities Corp. The Fund
is neither affiliated with nor promoted, sponsored, sold, or endorsed by
Standard & Poor's Corporation. Its only relationship to the Fund is the
licensing of the use of the Index.
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
The fund's total return for the 6 months ended April 30, 1996, was 12.77%.* The
target index, the Standard & Poor's 400 MidCap Index (the "Index") had a total
return of 13.87% during the period.** The fund's performance varied from the
Index due to transaction costs, administrative expenses, and holdings of stock
index futures contracts, which are held to enhance fund liquidity.
The U.S. stock market continued its steady climb in the last six months. The
market appears to be driven by strong cash flows into equity mutual funds and
mostly favorable economic news, despite a recent increase in interest rates.
Some investment strategists are warning that strong cash flows from sources such
as 401(k) plans have pushed stock prices to unsustainable levels, making the
market subject to a significant price correction. However, most investors have
shrugged off these warnings and continue to believe the stock market will
provide strong investment returns over the long-term.
During the last six months, communications equipment, computer hardware, and
leisure services were among the strongest performing sectors, while
homebuilding, office products, and air freight were among the worst performing
sectors in the Index.
During the period, management also lowered the target range for the fund's
liquidity position, i.e., the percentage of the fund held in cash and stock
index futures contracts. It is intended that this policy change reduce the level
of short-term capital gains, which are generated from rolling (regularly buying
and selling) stock index futures in a rising market. Since the fund must
distribute all capital gains at the end of the calendar year, management hopes
this policy change will then reduce the tax liabilities of those investors
subject to income taxes.
* Performance quoted represents past performance and is not indicative of
future results. Investment return and principal value will fluctuate, so that
an investor's shares, when redeemed, may be worth more or less than their
original cost.
** The index is unmanaged. Actual investments may not be made in an index.
FEDERATED MID-CAP FUND
(FORMERLY, MID-CAP FUND)
PORTFOLIO OF INVESTMENTS
APRIL 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ----------------------------------------------------------------- -----------
<S> <C> <C> <C>
(A) COMMON STOCKS--93.8%
- ------------------------------------------------------------------------------------
BASIC INDUSTRY--7.8%
-----------------------------------------------------------------
2,600 Albany International Corp., Class A $ 55,900
-----------------------------------------------------------------
5,600 Albemarle Corp. 130,900
-----------------------------------------------------------------
5,700 Allegheny Ludlum Corp. 112,575
-----------------------------------------------------------------
3,800 (b) Alumax, Inc. 127,300
-----------------------------------------------------------------
6,900 Battle Mountain Gold Co. 61,238
-----------------------------------------------------------------
2,300 Betz Laboratories, Inc. 102,637
-----------------------------------------------------------------
3,300 Bowater, Inc. 132,000
-----------------------------------------------------------------
1,400 Brush Wellman, Inc. 26,250
-----------------------------------------------------------------
5,200 (b) Burlington Industries, Inc. 60,450
-----------------------------------------------------------------
6,400 Cabot Corp. 171,200
-----------------------------------------------------------------
2,000 CalMat Co. 34,750
-----------------------------------------------------------------
3,400 Calgon Carbon Corp. 42,500
-----------------------------------------------------------------
1,400 Carpenter Technology Corp. 52,675
-----------------------------------------------------------------
2,000 Chesapeake Corp. 57,750
-----------------------------------------------------------------
1,000 Cleveland Cliffs, Inc. 41,750
-----------------------------------------------------------------
3,800 Consolidated Papers, Inc. 208,050
-----------------------------------------------------------------
4,100 Crompton and Knowles Corp. 63,038
-----------------------------------------------------------------
2,100 Dexter Corp. 56,438
-----------------------------------------------------------------
2,200 Donaldson Company, Inc. 57,750
-----------------------------------------------------------------
10,000 Ethyl Corp. 103,750
-----------------------------------------------------------------
2,400 Ferro Corp. 66,600
-----------------------------------------------------------------
1,200 Fuller (H.B.) Co. 39,300
-----------------------------------------------------------------
3,200 Georgia Gulf Corp. 117,600
-----------------------------------------------------------------
3,700 Glatfelter (P.H.) Co. 61,513
-----------------------------------------------------------------
</TABLE>
FEDERATED MID-CAP FUND
(FORMERLY, MID-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ----------------------------------------------------------------- -----------
<S> <C> <C> <C>
(A) COMMON STOCKS--CONTINUED
- ------------------------------------------------------------------------------------
BASIC INDUSTRY--CONTINUED
-----------------------------------------------------------------
3,000 Hanna (M.A.) Co. $ 103,500
-----------------------------------------------------------------
7,800 IMC Global, Inc. 287,625
-----------------------------------------------------------------
3,800 Lawter International, Inc. 41,325
-----------------------------------------------------------------
3,000 Loctite Corp. 151,500
-----------------------------------------------------------------
4,400 Longview Fibre Co. 77,550
-----------------------------------------------------------------
5,300 Lubrizol Corp. 153,700
-----------------------------------------------------------------
1,200 Lukens, Inc. 31,650
-----------------------------------------------------------------
700 (b) Maxxam, Inc. 31,850
-----------------------------------------------------------------
1,900 Minerals Technologies, Inc. 73,150
-----------------------------------------------------------------
700 NCH, Corp. 40,600
-----------------------------------------------------------------
1,600 Oregon Steel Mills 25,400
-----------------------------------------------------------------
6,400 RPM, Inc. 98,400
-----------------------------------------------------------------
2,500 Rayonier, Inc. 89,687
-----------------------------------------------------------------
3,225 Schulman (A.), Inc. 70,144
-----------------------------------------------------------------
3,600 (b) Sealed Air Corp. 127,350
-----------------------------------------------------------------
7,685 Sonoco Products Co. 218,062
-----------------------------------------------------------------
1,500 Southdown, Inc. 35,250
-----------------------------------------------------------------
4,700 Sterling Chemicals, Inc. 53,463
-----------------------------------------------------------------
5,600 Unifi, Inc. 150,500
-----------------------------------------------------------------
3,000 Vulcan Materials Co. 172,500
-----------------------------------------------------------------
3,068 Wausau Paper Mills Co. 70,553
-----------------------------------------------------------------
2,800 Wellman, Inc. 67,200
-----------------------------------------------------------------
4,800 Witco Corp. 163,800
----------------------------------------------------------------- -----------
Total 4,318,673
----------------------------------------------------------------- -----------
CONSUMER DURABLES--2.5%
-----------------------------------------------------------------
5,800 Callaway Golf Co. 155,150
-----------------------------------------------------------------
</TABLE>
FEDERATED MID-CAP FUND
(FORMERLY, MID-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ----------------------------------------------------------------- -----------
<S> <C> <C> <C>
(A) COMMON STOCKS--CONTINUED
- ------------------------------------------------------------------------------------
CONSUMER DURABLES--CONTINUED
-----------------------------------------------------------------
1,300 Carlisle Cos., Inc. $ 60,450
-----------------------------------------------------------------
7,981 Clayton Homes, Inc. 147,648
-----------------------------------------------------------------
1,400 Cross (A.T.) Co., Class A 21,000
-----------------------------------------------------------------
4,400 (b) Electronic Arts, Inc. 117,700
-----------------------------------------------------------------
6,500 Harley Davidson, Inc. 286,813
-----------------------------------------------------------------
10,900 International Game Technology 168,950
-----------------------------------------------------------------
7,100 Leggett and Platt, Inc. 182,825
-----------------------------------------------------------------
600 National Presto Industries, Inc. 23,550
-----------------------------------------------------------------
11,500 Shaw Industries, Inc. 142,312
-----------------------------------------------------------------
1,600 Stanhome, Inc. 47,200
-----------------------------------------------------------------
4,000 Topps Co. 23,000
----------------------------------------------------------------- -----------
Total 1,376,598
----------------------------------------------------------------- -----------
CONSUMER NON-DURABLES--4.0%
-----------------------------------------------------------------
1,700 Church and Dwight, Inc. 37,400
-----------------------------------------------------------------
11,000 Coca Cola Enterprises, Inc. 324,500
-----------------------------------------------------------------
3,400 Dean Foods Co. 79,475
-----------------------------------------------------------------
5,100 Dole Food, Inc. 204,000
-----------------------------------------------------------------
1,100 Dreyers Grand Ice Cream, Inc. 38,225
-----------------------------------------------------------------
3,600 First Brands Corp. 95,400
-----------------------------------------------------------------
4,850 Flowers Industries, Inc. 64,869
-----------------------------------------------------------------
1,400 Gibson Greetings, Inc. 19,775
-----------------------------------------------------------------
8,000 IBP, Inc. 214,000
-----------------------------------------------------------------
1,500 International Multifoods Corp. 28,313
-----------------------------------------------------------------
2,200 (b) Jones Apparel Group, Inc. 113,025
-----------------------------------------------------------------
2,600 Lance, Inc. 41,112
-----------------------------------------------------------------
6,900 McCormick & Co., Inc. 153,525
-----------------------------------------------------------------
</TABLE>
FEDERATED MID-CAP FUND
(FORMERLY, MID-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ----------------------------------------------------------------- -----------
<S> <C> <C> <C>
(A) COMMON STOCKS--CONTINUED
- ------------------------------------------------------------------------------------
CONSUMER NON-DURABLES--CONTINUED
-----------------------------------------------------------------
1,600 Michael Foods, Inc. $ 17,400
-----------------------------------------------------------------
2,200 Savannah Foods & Industries, Inc. 23,925
-----------------------------------------------------------------
2,500 Smucker (J.M.) Co., Class A 52,812
-----------------------------------------------------------------
3,100 Tambrands, Inc. 148,413
-----------------------------------------------------------------
12,200 Tyson Foods, Inc., Class A 303,475
-----------------------------------------------------------------
3,000 Universal Corp. 72,000
-----------------------------------------------------------------
2,200 Universal Foods Corp. 75,350
-----------------------------------------------------------------
4,400 Warnaco Group, Inc., Class A 115,500
----------------------------------------------------------------- -----------
Total 2,222,494
----------------------------------------------------------------- -----------
ENERGY MINERALS--3.0%
-----------------------------------------------------------------
5,000 Anadarko Petroleum Corp. 291,250
-----------------------------------------------------------------
6,500 Apache Corp. 188,500
-----------------------------------------------------------------
2,500 Diamond Shamrock, Inc. 84,688
-----------------------------------------------------------------
6,800 Lyondell Petrochemical Co. 199,750
-----------------------------------------------------------------
2,500 Mapco, Inc. 145,625
-----------------------------------------------------------------
3,800 Murphy Oil Corp. 169,575
-----------------------------------------------------------------
4,200 Noble Affiliates, Inc. 147,525
-----------------------------------------------------------------
3,000 Parker & Parsley Petroleum Co. 73,875
-----------------------------------------------------------------
2,800 Quaker State Corp. 44,100
-----------------------------------------------------------------
8,300 Ranger Oil Ltd. 62,250
-----------------------------------------------------------------
3,100 Tosco Corp. 165,850
-----------------------------------------------------------------
3,700 Valero Energy Corp. 106,838
----------------------------------------------------------------- -----------
Total 1,679,826
----------------------------------------------------------------- -----------
FINANCE--12.0%
-----------------------------------------------------------------
12,075 Aflac, Inc. 374,325
-----------------------------------------------------------------
3,550 Bancorp Hawaii, Inc. 128,688
-----------------------------------------------------------------
</TABLE>
FEDERATED MID-CAP FUND
(FORMERLY, MID-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ----------------------------------------------------------------- -----------
<S> <C> <C> <C>
(A) COMMON STOCKS--CONTINUED
- ------------------------------------------------------------------------------------
FINANCE--CONTINUED
-----------------------------------------------------------------
9,915 Bear Stearns Cos., Inc. $ 249,114
-----------------------------------------------------------------
3,350 Central Fidelity Banks, Inc. 115,575
-----------------------------------------------------------------
3,900 City National Corp. 55,088
-----------------------------------------------------------------
4,450 Comdisco, Inc. 109,580
-----------------------------------------------------------------
3,600 Crestar Financial Corp. 202,950
-----------------------------------------------------------------
2,600 Dauphin Deposit Corp. 74,750
-----------------------------------------------------------------
5,325 Edwards(AG), Inc. 125,138
-----------------------------------------------------------------
6,300 First Security Corp. 159,075
-----------------------------------------------------------------
5,600 First Tennessee National Corp. 184,800
-----------------------------------------------------------------
2,900 First Virginia Bank, Inc. 116,363
-----------------------------------------------------------------
5,300 First of America Bank Corp. 239,825
-----------------------------------------------------------------
6,100 Firstar Corp. 283,650
-----------------------------------------------------------------
6,800 Franklin Resources, Inc. 389,300
-----------------------------------------------------------------
1,700 GATX Corp. 76,500
-----------------------------------------------------------------
1,700 Hartford Steam Boiler Insurance 82,025
-----------------------------------------------------------------
10,100 Hibernia Corp., Class A 103,525
-----------------------------------------------------------------
8,000 Marshall & Ilsley Corp. 216,000
-----------------------------------------------------------------
5,350 Mercantile Bancorporation, Inc. 238,075
-----------------------------------------------------------------
4,000 Mercantile Bankshares Corp. 102,500
-----------------------------------------------------------------
4,700 Northern Trust Corp. 264,375
-----------------------------------------------------------------
1,400 PHH Corp. 79,625
-----------------------------------------------------------------
8,400 PaineWebber Group, Inc. 175,350
-----------------------------------------------------------------
1,600 (b) Policy Management System Corp. 75,200
-----------------------------------------------------------------
6,100 Progressive Corp. Ohio 284,413
-----------------------------------------------------------------
3,800 Provident Cos., Inc. 128,725
-----------------------------------------------------------------
5,230 Regions Financial Corp. 241,234
-----------------------------------------------------------------
</TABLE>
FEDERATED MID-CAP FUND
(FORMERLY, MID-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ----------------------------------------------------------------- -----------
<S> <C> <C> <C>
(A) COMMON STOCKS--CONTINUED
- ------------------------------------------------------------------------------------
FINANCE--CONTINUED
-----------------------------------------------------------------
14,750 Schwab (Charles) Corp. $ 361,375
-----------------------------------------------------------------
7,900 SouthTrust Corp. 214,288
-----------------------------------------------------------------
7,000 State Street Boston Corp. 349,125
-----------------------------------------------------------------
7,700 Summit Bancorp 273,350
-----------------------------------------------------------------
4,600 Sunamerica, Inc. 250,700
-----------------------------------------------------------------
2,400 T. Rowe Price Associates 133,800
-----------------------------------------------------------------
1,900 Transatlantic Holdings, Inc. 124,450
-----------------------------------------------------------------
3,000 Wilmington Trust Corp. 94,875
----------------------------------------------------------------- -----------
Total 6,677,731
----------------------------------------------------------------- -----------
HEALTH CARE--9.5%
-----------------------------------------------------------------
2,400 (b) Acuson Corp. 45,600
-----------------------------------------------------------------
1,100 (b) Advanced Technology Labs, Inc. 35,750
-----------------------------------------------------------------
2,500 (b) Applied Bioscience International, Inc. 22,344
-----------------------------------------------------------------
4,000 (b) Apria Healthcare Group, Inc. 136,000
-----------------------------------------------------------------
3,365 Bergen Brunswig Corp., Class A 91,695
-----------------------------------------------------------------
3,000 (b) Biogen, Inc. 197,625
-----------------------------------------------------------------
4,075 Cardinal Health, Inc. 255,705
-----------------------------------------------------------------
3,900 Carter Wallace, Inc. 61,425
-----------------------------------------------------------------
4,900 (b) Centocor, Inc. 196,000
-----------------------------------------------------------------
3,556 (b) Chiron Corp. 342,709
-----------------------------------------------------------------
3,427 (b) Coram Healthcare Corp. 17,562
-----------------------------------------------------------------
1,400 (b) Datascope Corp. 24,675
-----------------------------------------------------------------
2,300 Dentsply International, Inc. 96,025
-----------------------------------------------------------------
1,100 Diagnostic Products Corp. 46,063
-----------------------------------------------------------------
3,400 (b) FHP International Corp. 100,300
-----------------------------------------------------------------
3,800 (b) Forest Labratories, Inc., Class A 175,275
-----------------------------------------------------------------
</TABLE>
FEDERATED MID-CAP FUND
(FORMERLY, MID-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ----------------------------------------------------------------- -----------
<S> <C> <C> <C>
(A) COMMON STOCKS--CONTINUED
- ------------------------------------------------------------------------------------
HEALTH CARE--CONTINUED
-----------------------------------------------------------------
4,800 (b) Foundation Health Corp $ 187,800
-----------------------------------------------------------------
2,500 (b) Genzyme Corp. 140,625
-----------------------------------------------------------------
12,886 (b) HEALTHSOUTH Rehabilitation 478,393
-----------------------------------------------------------------
2,900 (b) HealthCare COMPARE Corp. 136,663
-----------------------------------------------------------------
2,600 (b) Healthcare & Retirement Corp. 95,875
-----------------------------------------------------------------
5,300 (b) Healthsource, Inc. 180,863
-----------------------------------------------------------------
4,334 (b) Horizon/CMS Healthcare Corp. 57,426
-----------------------------------------------------------------
10,000 Ivax Corp. 291,250
-----------------------------------------------------------------
10,400 (b) Laboratory Corporation of America Holdings 88,400
-----------------------------------------------------------------
3,700 McKesson Corp. 176,212
-----------------------------------------------------------------
4,200 (b) Medaphis Corp. 193,725
-----------------------------------------------------------------
10,200 Mylan Laboratories, Inc. 198,900
-----------------------------------------------------------------
2,400 (b) Nellcor, Inc. 117,600
-----------------------------------------------------------------
5,500 (b) NovaCare, Inc. 39,875
-----------------------------------------------------------------
2,600 (b) PacifiCare Health Systems, Inc., Class B 218,075
-----------------------------------------------------------------
6,400 (b) Perrigo Co. 80,000
-----------------------------------------------------------------
2,000 (b) Scherer (R.P.) Corp. 79,000
-----------------------------------------------------------------
4,100 Stryker Corp. 198,338
-----------------------------------------------------------------
4,494 (b) Value Health, Inc. 130,888
-----------------------------------------------------------------
6,100 (b) Vencor, Inc. 205,875
-----------------------------------------------------------------
3,000 (b) Watson Pharmaceuticals, Inc. 142,500
----------------------------------------------------------------- -----------
Total 5,283,036
----------------------------------------------------------------- -----------
PRODUCER MANUFACTURING--6.4%
-----------------------------------------------------------------
5,000 American Financial Group, Inc. 153,125
-----------------------------------------------------------------
7,900 (b) American Power Conversion Corp. 98,750
-----------------------------------------------------------------
2,800 Ametek, Inc. 53,900
-----------------------------------------------------------------
</TABLE>
FEDERATED MID-CAP FUND
(FORMERLY, MID-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ----------------------------------------------------------------- -----------
<S> <C> <C> <C>
(A) COMMON STOCKS--CONTINUED
- ------------------------------------------------------------------------------------
PRODUCER MANUFACTURING--CONTINUED
-----------------------------------------------------------------
1,900 Arvin Industries, Inc. $ 42,750
-----------------------------------------------------------------
4,900 Danaher Corp. 192,938
-----------------------------------------------------------------
3,863 Diebold, Inc. 148,705
-----------------------------------------------------------------
1,900 Duriron, Inc. 49,875
-----------------------------------------------------------------
3,800 Federal Signal Corp. 99,275
-----------------------------------------------------------------
3,000 Federal-Mogul Corp. 57,000
-----------------------------------------------------------------
1,800 Goulds Pumps, Inc. 41,850
-----------------------------------------------------------------
2,600 HON Industries, Inc. 67,600
-----------------------------------------------------------------
2,100 Harsco Corp. 144,638
-----------------------------------------------------------------
2,740 Hubbell, Inc., Class B 177,073
-----------------------------------------------------------------
1,400 Kaydon Corp. 55,650
-----------------------------------------------------------------
2,200 Kennametal, Inc. 83,325
-----------------------------------------------------------------
3,000 Keystone International, Inc. 65,625
-----------------------------------------------------------------
2,533 Lancaster Colony Corp. 85,489
-----------------------------------------------------------------
2,100 (b) Magnetek, Inc. 22,050
-----------------------------------------------------------------
5,315 Mark IV Industries, Inc. 110,287
-----------------------------------------------------------------
2,100 Miller Herman, Inc. 64,313
-----------------------------------------------------------------
2,500 Modine Manufacturing Co. 68,125
-----------------------------------------------------------------
1,500 Nordson Corp. 90,750
-----------------------------------------------------------------
2,100 Olin Corp. 185,850
-----------------------------------------------------------------
3,200 Pentair, Inc. 87,200
-----------------------------------------------------------------
3,500 Pittston Brink's Group 97,563
-----------------------------------------------------------------
1,750 Precision Castparts Corp. 75,905
-----------------------------------------------------------------
2,800 Stewart & Stevenson Services 82,250
-----------------------------------------------------------------
2,500 Superior Industries International, Inc. 68,438
-----------------------------------------------------------------
1,900 Tecumseh Products Co., Class A 107,350
-----------------------------------------------------------------
</TABLE>
FEDERATED MID-CAP FUND
(FORMERLY, MID-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ----------------------------------------------------------------- -----------
<S> <C> <C> <C>
(A) COMMON STOCKS--CONTINUED
- ------------------------------------------------------------------------------------
PRODUCER MANUFACTURING--CONTINUED
-----------------------------------------------------------------
1,500 Teleflex, Inc. $ 69,563
-----------------------------------------------------------------
7,300 (b) Thermo Electron Corp. 449,863
-----------------------------------------------------------------
3,550 Trinity Industries, Inc. 123,805
-----------------------------------------------------------------
2,500 Watts Industries, Inc., Class A 51,250
-----------------------------------------------------------------
3,500 York International Corp. 168,000
----------------------------------------------------------------- -----------
Total 3,540,130
----------------------------------------------------------------- -----------
RETAIL TRADE--5.3%
-----------------------------------------------------------------
2,000 (b) Ann Taylor Stores Corp. 34,250
-----------------------------------------------------------------
2,900 (b) Bed Bath & Beyond, Inc. 171,280
-----------------------------------------------------------------
3,600 (b) Best Buy Co., Inc. 69,300
-----------------------------------------------------------------
4,150 CML Group, Inc. 18,675
-----------------------------------------------------------------
1,200 CPI Corp. 20,850
-----------------------------------------------------------------
2,700 Claire's Stores, Inc. 58,725
-----------------------------------------------------------------
6,098 Dollar General Corp. 160,822
-----------------------------------------------------------------
2,300 Duty Free International, Inc. 30,763
-----------------------------------------------------------------
4,800 Family Dollar Stores, Inc. 73,200
-----------------------------------------------------------------
3,200 Fastenal Co. 122,400
-----------------------------------------------------------------
3,900 Fingerhut Companies, Inc. 49,725
-----------------------------------------------------------------
1,800 Hancock Fabrics, Inc. 19,800
-----------------------------------------------------------------
3,600 Hannaford Brothers Co. 100,800
-----------------------------------------------------------------
4,150 Heilig-Meyers Co. 85,594
-----------------------------------------------------------------
7,679 (b) Home Shopping Network, Inc. 90,227
-----------------------------------------------------------------
6,200 (b) Kohl's Corp. 213,125
-----------------------------------------------------------------
2,900 Lands' End, Inc. 57,275
-----------------------------------------------------------------
2,200 (b) MacFrugal's Bargains CloseOuts, Inc. 29,425
-----------------------------------------------------------------
2,300 (b) Meyer (Fred), Inc. 66,125
-----------------------------------------------------------------
</TABLE>
FEDERATED MID-CAP FUND
(FORMERLY, MID-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ----------------------------------------------------------------- -----------
<S> <C> <C> <C>
(A) COMMON STOCKS--CONTINUED
- ------------------------------------------------------------------------------------
RETAIL TRADE--CONTINUED
-----------------------------------------------------------------
2,900 (b) Micro Warehouse, Inc. $ 124,700
-----------------------------------------------------------------
3,000 (b) Nine West Group, Inc. 128,625
-----------------------------------------------------------------
13,125 (b) Office Depot, Inc. 293,672
-----------------------------------------------------------------
5,700 (b) Revco D. S., Inc. 134,662
-----------------------------------------------------------------
3,900 Ruddick Corp. 51,675
-----------------------------------------------------------------
8,400 (b) Service Merchandise, Inc. 39,900
-----------------------------------------------------------------
13,275 (b) Staples, Inc. 252,225
-----------------------------------------------------------------
1,300 Tiffany & Co. 84,825
-----------------------------------------------------------------
3,500 (b) Viking Office Products, Inc. 207,813
-----------------------------------------------------------------
3,700 (b) Vons Companies, Inc. 118,400
-----------------------------------------------------------------
2,800 (b) Waban, Inc. 68,600
----------------------------------------------------------------- -----------
Total 2,977,458
----------------------------------------------------------------- -----------
SERVICES--11.7%
-----------------------------------------------------------------
6,359 AES Corp. 144,666
-----------------------------------------------------------------
2,700 (b) Air and Water Technology Corp., Class A 15,187
-----------------------------------------------------------------
800 Angelica Corp. 17,100
-----------------------------------------------------------------
2,400 (b) BJ Services Co. 92,100
-----------------------------------------------------------------
2,550 Banta Corp. 62,475
-----------------------------------------------------------------
3,300 Belo (A.H.) Corp., Series A 122,925
-----------------------------------------------------------------
3,600 Bob Evans Farms, Inc. 56,700
-----------------------------------------------------------------
6,475 (b) Brinker International, Inc. 113,312
-----------------------------------------------------------------
2,600 (b) Buffets, Inc. 36,075
-----------------------------------------------------------------
4,200 (b) Calenergy, Inc. 109,200
-----------------------------------------------------------------
2,494 (b) Chris Craft Industries, Inc. 106,603
-----------------------------------------------------------------
4,000 Cintas Corp. 215,000
-----------------------------------------------------------------
8,700 (b) Circus Circus Enterprises, Inc. 319,725
-----------------------------------------------------------------
</TABLE>
FEDERATED MID-CAP FUND
(FORMERLY, MID-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ----------------------------------------------------------------- -----------
<S> <C> <C> <C>
(A) COMMON STOCKS--CONTINUED
- ------------------------------------------------------------------------------------
SERVICES--CONTINUED
-----------------------------------------------------------------
5,050 Cracker Barrel Old Country Store $ 119,305
-----------------------------------------------------------------
5,100 (b) ENSCO International, Inc. 153,000
-----------------------------------------------------------------
1,400 Ennis Business Forms, Inc. 15,050
-----------------------------------------------------------------
13,300 Equifax, Inc. 325,850
-----------------------------------------------------------------
2,600 Flightsafety International, Inc. 143,975
-----------------------------------------------------------------
14,000 (b) Global Marine, Inc. 159,250
-----------------------------------------------------------------
1,500 Granite Construction, Inc. 29,625
-----------------------------------------------------------------
8,600 (b) HFS, Inc. 441,825
-----------------------------------------------------------------
1,200 Houghton Mifflin Co. 55,650
-----------------------------------------------------------------
1,900 (b) International Dairy Queen, Inc., Class A 40,138
-----------------------------------------------------------------
2,100 (b) Jacobs Engineering Group, Inc. 58,275
-----------------------------------------------------------------
3,175 Kelly Services, Inc., Class A 99,219
-----------------------------------------------------------------
1,000 Lawson Products, Inc. 22,750
-----------------------------------------------------------------
4,000 Lee Enterprises, Inc. 88,000
-----------------------------------------------------------------
3,000 (b) Lone Star Steakhouse & Saloon 124,125
-----------------------------------------------------------------
6,400 Manpower, Inc. 236,800
-----------------------------------------------------------------
2,200 Media General, Inc., Class A 84,700
-----------------------------------------------------------------
7,700 (b) Mirage Resorts, Inc. 403,288
-----------------------------------------------------------------
7,100 (b) Nabors Industries, Inc. 109,162
-----------------------------------------------------------------
5,400 Olsten Corp. 164,025
-----------------------------------------------------------------
6,100 Omnicom Group, Inc. 264,588
-----------------------------------------------------------------
3,700 (b) Outback Steakhouse, Inc. 148,463
-----------------------------------------------------------------
4,700 (b) Parker Drilling Co. 35,838
-----------------------------------------------------------------
3,850 Paychex, Inc. 260,838
-----------------------------------------------------------------
4,300 (b) Promus Hotel Corp. 122,013
-----------------------------------------------------------------
3,500 Reynolds & Reynolds Co., Class A 161,875
-----------------------------------------------------------------
</TABLE>
FEDERATED MID-CAP FUND
(FORMERLY, MID-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ----------------------------------------------------------------- -----------
<S> <C> <C> <C>
(A) COMMON STOCKS--CONTINUED
- ------------------------------------------------------------------------------------
SERVICES--CONTINUED
-----------------------------------------------------------------
5,100 Rollins Environmental Services, Inc. $ 13,387
-----------------------------------------------------------------
3,000 Rollins, Inc. 67,500
-----------------------------------------------------------------
1,700 Sbarro, Inc. 44,625
-----------------------------------------------------------------
1,300 (b) Scholastic Corp. 85,150
-----------------------------------------------------------------
6,200 Sensormatic Electronics Corp. 126,325
-----------------------------------------------------------------
3,300 (b) Smith International, Inc. 98,175
-----------------------------------------------------------------
4,700 Sothebys Holdings, Inc., Class A 66,387
-----------------------------------------------------------------
2,400 Standard Register 61,200
-----------------------------------------------------------------
2,100 TCA Cable TV, Inc. 61,425
-----------------------------------------------------------------
2,600 (b) Varco International, Inc. 43,225
-----------------------------------------------------------------
1,900 Wallace Computer, Inc. 112,338
-----------------------------------------------------------------
900 Washington Post Co., Class B 264,600
-----------------------------------------------------------------
4,281 (b) Weatherford Enterra, Inc. 150,904
-----------------------------------------------------------------
1,800 (b) Western Publishing Group, Inc. 23,625
----------------------------------------------------------------- -----------
Total 6,497,561
----------------------------------------------------------------- -----------
TECHNOLOGY--15.8%
-----------------------------------------------------------------
5,300 (b) ADC Telecommunications, Inc. 222,600
-----------------------------------------------------------------
3,821 (b) AST Research, Inc. 28,658
-----------------------------------------------------------------
6,100 Adobe System, Inc. 262,300
-----------------------------------------------------------------
3,700 (b) Altera Corp. 195,175
-----------------------------------------------------------------
6,800 (b) America Online, Inc. 435,200
-----------------------------------------------------------------
9,650 (b) Analog Devices, Inc. 248,487
-----------------------------------------------------------------
4,275 (b) Arrow Electronics, Inc. 214,283
-----------------------------------------------------------------
8,200 (b) Atmel Corp. 328,000
-----------------------------------------------------------------
3,700 Avnet, Inc. 195,175
-----------------------------------------------------------------
4,300 (b) BMC Software, Inc. 261,763
-----------------------------------------------------------------
</TABLE>
FEDERATED MID-CAP FUND
(FORMERLY, MID-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ----------------------------------------------------------------- -----------
<S> <C> <C> <C>
(A) COMMON STOCKS--CONTINUED
- ------------------------------------------------------------------------------------
TECHNOLOGY--CONTINUED
-----------------------------------------------------------------
2,400 Beckman Instruments, Inc. $ 88,800
-----------------------------------------------------------------
2,400 (b) Borland International, Inc. 39,300
-----------------------------------------------------------------
4,600 (b) Cadence Design Systems, Inc. 240,350
-----------------------------------------------------------------
5,300 (b) Cirrus Logic, Inc. 110,637
-----------------------------------------------------------------
3,600 (b) Compuware Corp. 102,600
-----------------------------------------------------------------
7,100 (b) Cypress Semiconductor Corp. 100,288
-----------------------------------------------------------------
7,800 (b) Dell Computer Corp. 357,825
-----------------------------------------------------------------
1,800 (b) Exabyte Corp. 31,500
-----------------------------------------------------------------
3,800 (b) FIserv, Inc. 115,900
-----------------------------------------------------------------
2,800 GenCorp, Inc. 37,450
-----------------------------------------------------------------
2,300 (b) Information Resources, Inc. 33,063
-----------------------------------------------------------------
12,500 (b) Informix Corp. 329,688
-----------------------------------------------------------------
6,500 (b) Integrated Device Technology, Inc. 96,688
-----------------------------------------------------------------
2,900 Intelligent Electronics, Inc. 18,488
-----------------------------------------------------------------
6,200 Linear Technology Corp. 213,125
-----------------------------------------------------------------
3,900 (b) Litton Industries, Inc. 176,962
-----------------------------------------------------------------
5,100 (b) Maxim Integrated Products, Inc. 174,675
-----------------------------------------------------------------
1,300 Measurex Corp. 37,700
-----------------------------------------------------------------
5,200 Mentor Graphics Corp. 83,200
-----------------------------------------------------------------
8,500 Molex, Inc. 276,250
-----------------------------------------------------------------
1,700 OEA, Inc. 66,725
-----------------------------------------------------------------
2,000 (b) Octel Communications Corp. 89,500
-----------------------------------------------------------------
10,400 (b) Parametric Technology Corp. 418,600
-----------------------------------------------------------------
4,500 (b) Quantum Corp. 95,625
-----------------------------------------------------------------
1,500 (b) Rohr, Inc. 27,375
-----------------------------------------------------------------
8,277 (b) Seagate Technology, Inc. 480,066
-----------------------------------------------------------------
</TABLE>
FEDERATED MID-CAP FUND
(FORMERLY, MID-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ----------------------------------------------------------------- -----------
<S> <C> <C> <C>
(A) COMMON STOCKS--CONTINUED
- ------------------------------------------------------------------------------------
TECHNOLOGY--CONTINUED
-----------------------------------------------------------------
800 Sequa Corp., Class A $ 28,100
-----------------------------------------------------------------
2,700 (b) Sequent Computer System, Inc. 39,487
-----------------------------------------------------------------
4,200 (b) Solectron Corp. 186,900
-----------------------------------------------------------------
4,480 (b) Storage Technology Corp. 137,760
-----------------------------------------------------------------
6,200 (b) StrataCom, Inc. 322,400
-----------------------------------------------------------------
1,900 (b) Stratus Computer, Inc. 53,438
-----------------------------------------------------------------
2,600 (b) Structural Dynamics Research Corp. 82,875
-----------------------------------------------------------------
5,200 Sundstrand Corp. 191,100
-----------------------------------------------------------------
4,400 (b) Symantec Corp. 70,950
-----------------------------------------------------------------
2,200 (b) Symbol Technologies, Inc. 101,750
-----------------------------------------------------------------
7,000 (b) Teradyne, Inc. 143,500
-----------------------------------------------------------------
1,500 Thiokol Corp. 64,125
-----------------------------------------------------------------
3,600 (b) U.S. Robotics Corp. 563,400
-----------------------------------------------------------------
2,600 Varian Association, Inc. 148,525
-----------------------------------------------------------------
1,900 (b) Verifone, Inc. 79,800
-----------------------------------------------------------------
4,900 (b) Vishay Intertechnology, Inc. 147,000
-----------------------------------------------------------------
6,000 (b) Xilinx, Inc. 221,250
----------------------------------------------------------------- -----------
Total 8,816,381
----------------------------------------------------------------- -----------
TRANSPORTATION--1.8%
-----------------------------------------------------------------
1,800 Airborne Freight Corp. 47,475
-----------------------------------------------------------------
1,100 Alaska Air Group, Inc. 27,912
-----------------------------------------------------------------
3,900 Alexander and Baldwin, Inc. 95,550
-----------------------------------------------------------------
2,200 American President Cos., Ltd. 52,525
-----------------------------------------------------------------
2,300 Arnold Industries, Inc. 37,375
-----------------------------------------------------------------
2,800 Atlantic Southeast Airlines, Inc. 70,000
-----------------------------------------------------------------
3,300 Hunt (J.B.) Transportation Services, Inc. 67,238
-----------------------------------------------------------------
</TABLE>
FEDERATED MID-CAP FUND
(FORMERLY, MID-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ----------------------------------------------------------------- -----------
<S> <C> <C> <C>
(A) COMMON STOCKS--CONTINUED
- ------------------------------------------------------------------------------------
TRANSPORTATION--CONTINUED
-----------------------------------------------------------------
5,250 Illinois Central Corp. $ 157,500
-----------------------------------------------------------------
3,400 Kansas City Southern Industries, Inc. 164,900
-----------------------------------------------------------------
3,100 Overseas Shipholding Group, Inc. 62,388
-----------------------------------------------------------------
5,300 Tidewater, Inc. 225,250
----------------------------------------------------------------- -----------
Total 1,008,113
----------------------------------------------------------------- -----------
UTILITIES--14.0%
-----------------------------------------------------------------
9,900 (b) 360 Communications Co. 232,650
-----------------------------------------------------------------
4,600 AGL Resources, Inc. 86,825
-----------------------------------------------------------------
10,200 Allegheny Power Systems, Inc. 298,350
-----------------------------------------------------------------
2,800 American Water Works Co., Inc. 106,400
-----------------------------------------------------------------
4,400 Atlantic Energy, Inc. NJ 71,500
-----------------------------------------------------------------
1,200 Black Hills Corp. 30,000
-----------------------------------------------------------------
4,100 Brooklyn Union Gas Co. 107,625
-----------------------------------------------------------------
7,700 CMS Energy Corp. 224,263
-----------------------------------------------------------------
1,900 Central LA Electric Co. 48,687
-----------------------------------------------------------------
2,700 Central Maine Power Co. 38,475
-----------------------------------------------------------------
5,000 Century Telephone Enterprises, Inc. 163,750
-----------------------------------------------------------------
4,000 Comsat Corp. 122,000
-----------------------------------------------------------------
5,100 Delmarva Power and Light Co. 100,088
-----------------------------------------------------------------
2,900 El Paso Natural Gas 107,300
-----------------------------------------------------------------
8,100 Florida Progress Corp. 267,300
-----------------------------------------------------------------
13,300 Frontier Corp. 420,613
-----------------------------------------------------------------
2,500 Hawaiian Electric Industries, Inc. 86,250
-----------------------------------------------------------------
3,200 Idaho Power Co. 92,800
-----------------------------------------------------------------
6,400 Illinova Corp. 163,200
-----------------------------------------------------------------
1,950 Indiana Energy, Inc. 46,555
-----------------------------------------------------------------
</TABLE>
FEDERATED MID-CAP FUND
(FORMERLY, MID-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ----------------------------------------------------------------- -----------
<S> <C> <C> <C>
(A) COMMON STOCKS--CONTINUED
- ------------------------------------------------------------------------------------
UTILITIES--CONTINUED
-----------------------------------------------------------------
4,800 Ipalco Enterprises, Inc. $ 121,200
-----------------------------------------------------------------
5,200 Kansas City Power And Light Co. 136,500
-----------------------------------------------------------------
5,600 LG&E Energy Corp. 118,300
-----------------------------------------------------------------
3,100 Lincoln Telecommunications Co. 52,700
-----------------------------------------------------------------
5,600 MCN Corp. 137,900
-----------------------------------------------------------------
8,522 MidAmerican Energy Co. 145,939
-----------------------------------------------------------------
2,600 Minnesota Power And Light Co. 69,550
-----------------------------------------------------------------
4,600 Montana Power Co. 101,775
-----------------------------------------------------------------
18,100 (b) NEXTEL Communications, Inc. 328,063
-----------------------------------------------------------------
5,300 NIPSCO Industries, Inc. 190,137
-----------------------------------------------------------------
3,200 National Fuel Gas Co. 112,400
-----------------------------------------------------------------
4,000 Nevada Power Co. 80,000
-----------------------------------------------------------------
5,500 New England Electric System 193,875
-----------------------------------------------------------------
6,000 New York State Electric and Gas Corp. 137,250
-----------------------------------------------------------------
10,700 Northeast Utilities Co. 169,863
-----------------------------------------------------------------
3,400 Oklahoma Gas and Electric Co. 128,350
-----------------------------------------------------------------
7,400 Pinnacle West Capital Corp. 197,025
-----------------------------------------------------------------
4,300 Portland General Corp. 126,313
-----------------------------------------------------------------
10,000 Potomac Electric Power Co. 248,750
-----------------------------------------------------------------
5,400 Public Service Co. Colo 178,875
-----------------------------------------------------------------
3,500 Public Service Co. New Mexico 61,250
-----------------------------------------------------------------
5,400 Puget Sound Power & Light Co. 128,250
-----------------------------------------------------------------
3,400 Questar Corp. 119,000
-----------------------------------------------------------------
8,700 SCANA Corp. 222,937
-----------------------------------------------------------------
3,100 (b) Seagull Energy Corp. 75,562
-----------------------------------------------------------------
5,500 Southern New England Telecommunications 244,750
-----------------------------------------------------------------
</TABLE>
FEDERATED MID-CAP FUND
(FORMERLY, MID-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ----------------------------------------------------------------- -----------
<S> <C> <C> <C>
(A) COMMON STOCKS--CONTINUED
- ------------------------------------------------------------------------------------
UTILITIES--CONTINUED
-----------------------------------------------------------------
3,500 Southwestern Public Service Co. $ 111,562
-----------------------------------------------------------------
9,900 TECO Energy, Inc. 230,175
-----------------------------------------------------------------
4,900 Telephone and Data System, Inc. 227,850
-----------------------------------------------------------------
3,900 Utilicorp United, Inc. 109,688
-----------------------------------------------------------------
3,500 (b) Vanguard Cellular System, Inc., Class A 75,250
-----------------------------------------------------------------
2,600 WPL Holdings, Inc. 77,350
-----------------------------------------------------------------
3,600 Washington Gas Light Co. 75,600
-----------------------------------------------------------------
9,300 Wisconsin Energy Corp. 247,612
----------------------------------------------------------------- -----------
Total 7,796,232
----------------------------------------------------------------- -----------
TOTAL COMMON STOCKS (IDENTIFIED COST $42,167,570) 52,194,233
----------------------------------------------------------------- -----------
</TABLE>
FEDERATED MID-CAP FUND
(FORMERLY, MID-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- ----------------------------------------------------------------- -----------
<S> <C> <C> <C>
SHORT-TERM U.S. GOVERNMENT OBLIGATIONS--0.4%
- ------------------------------------------------------------------------------------
$ 200,000 United States Treasury Bill, 6/20/1996 (AT AMORTIZED COST) $ 198,686
----------------------------------------------------------------- -----------
(C)REPURCHASE AGREEMENT--4.7%
- ------------------------------------------------------------------------------------
2,625,000 BT Securities Corporation, 5.35%, dated 4/30/1996, due 5/1/1996
(AT AMORTIZED COST) 2,625,000
----------------------------------------------------------------- -----------
TOTAL INVESTMENTS (IDENTIFIED COST $44,991,256)(D) $55,017,919
----------------------------------------------------------------- -----------
</TABLE>
(a) The Fund purchases Stock index futures contracts to efficiently manage cash
flows resulting from shareholder purchases and redemptions, dividend and
capital gain payments to shareholders and corporate actions while
maintaining exposure to the Index and minimizing trading costs. The total
market value of open Index futures contracts is $2,732,975 at April 30,
1996, which represents 4.9% of net assets. Taking into consideration these
open Index futures contracts, the Fund's effective total exposure to the
index is 98.7%.
(b) Non-income producing security.
(c) 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.
(d) The cost of investments for federal tax purposes amounts to $44,991,256. The
net unrealized appreciation of investments on a federal tax basis amounts to
$10,026,663 which is comprised of $11,608,472 appreciation and $1,581,809
depreciation at April 30, 1996.
Note: The categories of investments are shown as a percentage of net assets
($55,626,848) at April 30, 1996.
(See Notes which are an integral part of the Financial Statements)
FEDERATED MID-CAP FUND
(FORMERLY, MID-CAP FUND)
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- --------------------------------------------------------------------------------
Total investments in securities, at value (identified cost and tax cost
$44,991,256) $55,017,919
- --------------------------------------------------------------------------------
Income receivable 47,851
- --------------------------------------------------------------------------------
Receivable for shares sold 581,424
- --------------------------------------------------------------------------------
Deferred expenses 11,117
- -------------------------------------------------------------------------------- -----------
Total assets 55,658,311
- --------------------------------------------------------------------------------
LIABILITIES:
- --------------------------------------------------------------------------------
Payable to Bank $17,133
- ----------------------------------------------------------------------
Payable for daily variation margin 10,875
- ----------------------------------------------------------------------
Accrued expenses 3,455
- ---------------------------------------------------------------------- -------
Total liabilities 31,463
- -------------------------------------------------------------------------------- -----------
NET ASSETS for 4,129,843 shares outstanding $55,626,848
- -------------------------------------------------------------------------------- -----------
NET ASSETS CONSIST OF:
- --------------------------------------------------------------------------------
Paid-in capital $43,924,196
- --------------------------------------------------------------------------------
Net unrealized appreciation of investments and futures contracts 10,074,490
- --------------------------------------------------------------------------------
Accumulated net realized gain on investments and futures contracts 1,623,328
- --------------------------------------------------------------------------------
Undistributed net investment income 4,834
- -------------------------------------------------------------------------------- -----------
Total Net Assets $55,626,848
- -------------------------------------------------------------------------------- -----------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PROCEEDS PER SHARE:
($55,626,848 / 4,129,843 shares outstanding) $13.47
- -------------------------------------------------------------------------------- -----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FEDERATED MID-CAP FUND
(FORMERLY, MID-CAP FUND)
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME:
- ------------------------------------------------------------------------------------------------------
Dividends $ 451,135
- ------------------------------------------------------------------------------------------------------
Interest 80,404
- ------------------------------------------------------------------------------------------------------ ---------
Total income 531,539
- ------------------------------------------------------------------------------------------------------
EXPENSES:
- ------------------------------------------------------------------------------------------------------
Management fee $ 111,863
- ------------------------------------------------------------------------------------------
Custodian fees 14,809
- ------------------------------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 14,422
- ------------------------------------------------------------------------------------------
Directors'/Trustees' fees 1,456
- ------------------------------------------------------------------------------------------
Auditing fees 7,462
- ------------------------------------------------------------------------------------------
Legal fees 2,912
- ------------------------------------------------------------------------------------------
Portfolio accounting fees 23,099
- ------------------------------------------------------------------------------------------
Shareholder service fee 69,914
- ------------------------------------------------------------------------------------------
Share registration costs 9,152
- ------------------------------------------------------------------------------------------
Printing and postage 7,462
- ------------------------------------------------------------------------------------------
Insurance premiums 1,820
- ------------------------------------------------------------------------------------------
Taxes 546
- ------------------------------------------------------------------------------------------
Miscellaneous 6,552
- ------------------------------------------------------------------------------------------ --------
Total expenses 271,469
- ------------------------------------------------------------------------------------------
Waiver--
- ------------------------------------------------------------------------------------------
Waiver of management fee $(52,107)
- --------------------------------------------------------------------------------
Waiver of shareholder services fee (50,338)
- -------------------------------------------------------------------------------- -------
Total waivers (102,445)
- ------------------------------------------------------------------------------------------ --------
Net expenses 169,024
- ------------------------------------------------------------------------------------------------------ ---------
Net investment income 362,515
- ------------------------------------------------------------------------------------------------------ ---------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FUTURES CONTRACTS:
- ------------------------------------------------------------------------------------------------------
Net realized gain on investments and futures contracts 1,419,665
- ------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation of investments and futures contracts 4,906,807
- ------------------------------------------------------------------------------------------------------ ---------
Net realized and unrealized gain on investments and futures contracts 6,326,472
- ------------------------------------------------------------------------------------------------------ ---------
Change in net assets resulting from operations $6,688,987
- ------------------------------------------------------------------------------------------------------ ---------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FEDERATED MID-CAP FUND
(FORMERLY, MID-CAP FUND)
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(UNAUDITED) YEAR ENDED
APRIL 30, 1996 OCTOBER 31, 1995
-------------- ----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- ---------------------------------------------------------
OPERATIONS--
- ---------------------------------------------------------
Net investment income $ 362,515 $ 987,497
- ---------------------------------------------------------
Net realized gain (loss) on investment transactions and
futures contracts ($1,419,665 and $3,414,170 net gains,
respectively, as computed for federal tax purposes) 1,419,665 3,630,556
- ---------------------------------------------------------
Net change in unrealized appreciation (depreciation) on
investments and futures contracts 4,906,807 5,366,839
- --------------------------------------------------------- -------------- ---------------
Change in net assets resulting from operations 6,688,987 9,984,892
- --------------------------------------------------------- -------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS--
- ---------------------------------------------------------
Distributions from net investment income (504,954) (893,649)
- ---------------------------------------------------------
Distributions from net realized gains on investment
transactions and futures contracts (3,414,624) (778,952)
- --------------------------------------------------------- -------------- ---------------
Change in net assets resulting from distributions to
shareholders (3,919,578) (1,672,601)
- --------------------------------------------------------- -------------- ---------------
SHARE TRANSACTIONS--
- ---------------------------------------------------------
Proceeds from sale of shares 24,113,641 48,339,864
- ---------------------------------------------------------
Net asset value of shares issued to shareholders in
payment of distributions declared 2,376,374 858,211
- ---------------------------------------------------------
Cost of shares redeemed (36,212,179) (38,942,349)
- --------------------------------------------------------- -------------- ---------------
Change in net assets resulting from share
transactions (9,722,164) 10,255,726
- --------------------------------------------------------- -------------- ---------------
Change in net assets (6,952,755) 18,568,017
- ---------------------------------------------------------
NET ASSETS:
- ---------------------------------------------------------
Beginning of period 62,579,603 44,011,586
- --------------------------------------------------------- -------------- ---------------
End of period (including undistributed net investment
income of $4,834 and $147,273 respectively) $ 55,626,848 $ 62,579,603
- --------------------------------------------------------- -------------- ---------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FEDERATED MID-CAP FUND
(FORMERLY, MID-CAP FUND)
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(UNAUDITED) YEAR ENDED OCTOBER 31,
APRIL 30, -------------------------------------------
1996 1995 1994 1993 1992(A)
-------------- ------ ------ ------ -------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $12.78 $11.02 $11.57 $ 9.99 $10.00
- -----------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- -----------------------------------------
Net investment income 0.09 0.22 0.21 0.25 0.08 0
- -----------------------------------------
Net realized and unrealized gain (loss)
on investments and futures contracts 1.46 1.93 (0.07) 1.56 (0.08 6)
- ----------------------------------------- ---------- ------ ------ ------ ------
Total from investment operations 1.55 2.15 0.14 1.81 (0.00 6)
- -----------------------------------------
LESS DISTRIBUTIONS
- -----------------------------------------
Distributions from net investment
income (0.12) (0.20) (0.19) (0.23) (0.00 4)
- -----------------------------------------
Distributions from net realized gain on
investment transactions and futures
contracts (0.74) (0.19) (0.50) -- --
- ----------------------------------------- ---------- ------ ------ ------ ------
Total distributions (0.86) (0.39) (0.69) (0.23) (0.00 4)
- ----------------------------------------- ---------- ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $13.47 $12.78 $11.02 $11.57 $ 9.99
- ----------------------------------------- ---------- ------ ------ ------ ------
TOTAL RETURN (B) 12.77% 20.12% 1.25% 17.33% 0.00 %
- -----------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -----------------------------------------
Expenses 0.60%* 0.60% 0.54% 0.00% 0.00 %*
- -----------------------------------------
Net investment income 1.30%* 1.89% 1.84% 2.33% 0.93 %*
- -----------------------------------------
Expense waiver/reimbursement(c) 0.37%* 0.41% 0.59% 1.75% 0.40 %*
- -----------------------------------------
SUPPLEMENTAL DATA
- -----------------------------------------
Net assets, end of period (000 omitted) $55,627 $62,580 $44,012 $16,192 $3
- -----------------------------------------
Average commission rate paid $0.0413 -- -- -- --
- -----------------------------------------
Portfolio turnover 10% 26% 30% 59% 0 %
- -----------------------------------------
</TABLE>
* Computed on an annualized basis.
(a) Reflects operations for the period from September 3, 1992 (date of initial
public investment) to October 31, 1992.
(b) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(See Notes which are an integral part of the Financial Statements)
FEDERATED MID-CAP FUND
(FORMERLY, MID-CAP FUND)
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
(1) ORGANIZATION
Federated Index Trust (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 three portfolios. The financial statements
included herein are only those of Federated Mid-Cap 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
investment objective of the Fund is to provide investment results generally
corresponding to the aggregate price and dividend performance of the publicly
traded common stocks that comprise the mid-level stock capitalization sector of
the United States equity market.
Effective December 5, 1994, the Board of Trustees ("Trustees") changed the name
of the fund from Mid-Cap Fund to Federated Mid-Cap Fund.
(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 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
FEDERATED MID-CAP FUND
(FORMERLY, MID-CAP FUND)
- --------------------------------------------------------------------------------
repurchase agreement. Accordingly, the Fund could receive less than the
repurchase price on the sale of collateral securities.
INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS--Interest income and expenses
are accrued daily. Bond premium and discount, if applicable, are amortized
as required by the Internal Revenue Code, as amended (the "Code"). Dividend
income and distributions to shareholders are recorded on the ex-dividend
date.
FEDERAL TAXES--It is the Fund's policy to comply with the provisions of the
Code applicable to regulated investment companies and to distribute to
shareholders each year substantially all of its income. Accordingly, no
provisions for federal tax are necessary.
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.
DEFERRED EXPENSES--The costs incurred by the Fund with respect to
registration of its shares in its first fiscal year, excluding the initial
expense of registering its shares, have been deferred and are being
amortized using the straight-line method over a period of five years from
the Fund's commencement date.
FUTURES CONTRACTS--The Fund purchases stock index futures contracts to
manage cashflows, enhance yield, and to potentially reduce transaction
costs. Upon entering into a stock index futures contract with a broker, the
Fund is required to deposit in a segregated account a specified amount of
cash or U.S. government securities. Futures contracts are valued daily and
unrealized gains or losses are recorded in a "variation margin" account.
Daily, the Fund receives from or pays to the broker a specified amount of
cash based upon changes in the variation margin account. When a contract is
closed, the Fund recognizes a realized gain or loss. For the period ended
April 30, 1996, the Fund had realized losses of $212,135 on futures
contracts.
Futures contracts have market risks, including the risk that the change in
the value of the contract may not correlate with changes in the value of
the underlying securities.
At April 30, 1996, the Fund had outstanding futures contracts as set forth
below:
<TABLE>
<CAPTION>
UNREALIZED
CONTRACTS TO APPRECIATION
EXPIRATION DATE DELIVER/RECEIVE VALUE (DEPRECIATION)
---------------- ------------------------- ----------- ---------------
<S> <C> <C> <C>
June 15, 1996 29 S&P 400 Index Futures Long $44,350
</TABLE>
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
FEDERATED MID-CAP FUND
(FORMERLY, MID-CAP FUND)
- --------------------------------------------------------------------------------
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).
Transactions in shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1996 OCTOBER 31, 1995
- ------------------------------------------------- ---------------- ----------------
<S> <C> <C>
Shares sold 1,874,902 4,033,313
- -------------------------------------------------
Shares issued to shareholders in payment of
distributions declared 193,160 78,357
- -------------------------------------------------
Shares redeemed (2,833,710) (3,208,182)
- ------------------------------------------------- -------------- --------------
Net change resulting from share transactions (765,648) 903,488
- ------------------------------------------------- -------------- --------------
</TABLE>
(4) MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEE--Federated Management, the Fund's manager, ("Manager"), receives
for its services an annual management fee equal to .40% of the Fund's average
daily net assets. Under the terms of a sub-advisory agreement between the
Manager and the Trust Division of ANB Investment Management and Trust Company
("Sub-Manager"), the Sub-Manager receives an annual fee from the Manager equal
to .035% of the Fund's average daily net assets. In addition, the Sub-Manager
may voluntarily choose to reduce its compensation. The Manager may voluntarily
choose to waive any portion of its fee. The Manager can modify or terminate this
voluntary waiver 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.
SHAREHOLDER SERVICES FEE--Under the terms of a Shareholder Services Agreement
with Federated Shareholder Services, the Fund will pay Federated Shareholder
Services up to .25% of average daily net
FEDERATED MID-CAP FUND
(FORMERLY, MID-CAP FUND)
- --------------------------------------------------------------------------------
assets of the Fund shares for the period. The fee paid to Federated Shareholder
Services 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 serves as transfer and
dividend disbursing agent for the Fund. The fee paid to FServ 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 Trust's average
daily net assets for the period, plus out-of-pocket expenses.
ORGANIZATIONAL EXPENSES--Organizational expenses of $23,784 were borne initially
by the Manager. The Fund has agreed to reimburse the Manager for the
organizational expenses at an annual rate of .005% of average daily net assets
until expenses initially borne are fully reimbursed or the expiration of five
years after effective date whichever occurs earlier. For the period ended April
30, 1996, the Fund paid $5,285 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, 1996, were as follows:
<TABLE>
<S> <C>
- -------------------------------------------------------------------------------
PURCHASES $ 5,663,897
- ------------------------------------------------------------------------------- -----------
SALES $15,189,549
- ------------------------------------------------------------------------------- -----------
</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
J. Christopher Donahue J. Christopher Donahue
James E. Dowd Executive Vice President
Lawrence D. Ellis, M.D. Edward C. Gonzales
Edward L. Flaherty, Jr. Executive Vice President
Peter E. Madden John W. McGonigle
Gregor F. Meyer Executive Vice President,
John E. Murray, Jr. Secretary and Treasurer
Wesley W. Posvar Richard B. Fisher
Marjorie P. Smuts Vice President
J. Crilley Kelly
Assistant Secretary
</TABLE>
FEDERATED
- --------------------------------------------------------------------------------
MAX-CAP
- --------------------------------------------------------------------------------
FUND
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
TO SHAREHOLDERS
APRIL 30, 1996
LOGO
31420E106
31420E403 2052905 (6/95)
PRESIDENT'S MESSAGE
- --------------------------------------------------------------------------------
Dear Shareholder:
I am pleased to present the Semi-Annual Report to Shareholders of Federated
Max-Cap Fund for the six-month period from November 1, 1995 through April 30,
1996. The report begins with an investment review, followed by the fund's
portfolio and its financial investments.
Federated Max-Cap Fund is managed passively to closely mirror the Standard &
Poor's 500 Index (S&P 500), an unmanaged index composed of 500 common stocks of
the nation's largest corporations. The S&P 500, a classic benchmark of overall
stock market performance, includes stocks in industry, transportation,
financial, and public utilities. Stocks in the fund's portfolio are generally
weighted in the same proportions as stocks in the S&P 500.**
In a highly positive environment for stocks, the fund produced a total return of
13.54% for Institutional Shares and 13.47% for Institutional Service Shares for
the six-month period ended April 30, 1996.* Contributing to those returns were
dividend income of $0.22 per share and capital gains of $2.03 per share for
Institutional Shares and dividend income of $0.19 per share and capital gains of
$2.03 per share for Institutional Shares. Between the first and last day of the
report period, the fund's net assets rose from $714.4 million to $755.4 million.
Thank you for participating in this efficient approach to pursuing the growth
potential of the S&P 500. As always, we invite your comments and suggestions.
Sincerely,
LOGO
Glen R. Johnson
President
June 15, 1996
* Performance quoted represents past performance and is not indicative of
future results. Investment return and principal value will fluctuate so that
an investor's shares, when redeemed, may be worth more or less than their
original cost.
** The Max-Cap Fund seeks investment results that correspond to the aggregate
price and total return performance of the Standard & Poor's Composite Stock
Index. "Standard & Poor's(R)," "S&P(R)," "S&P 500(R)," "Standard & Poor's
500" and "500" are trademarks of Standard and Poor's Corporation ("S&P") and
have been licensed for use by Federated Securities Corp. The Fund is neither
affiliated with nor promoted, sponsored, sold, or endorsed by Standard &
Poor's Corporation. Its only relationship to the Fund is the licensing of the
use of the Index.
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
The fund's total returns for Institutional Shares and Institutional Service
Shares for the 6 months ended April 30, 1996, were 13.54% and 13.47%,
respectively.*
The target index, the Standard & Poor's 500 Index (the "Index") had a total
return of 13.76% during the period.** Share class performance varied from the
Index due to transaction costs, administrative expenses, and holdings of stock
index futures contracts, which are held to enhance fund liquidity.
The U.S. stock market continued its steady climb in the last six months. The
market appears to be driven by strong cash flows into equity mutual funds and
mostly favorable economic news, despite a recent increase in interest rates.
Some investment strategists are warning that strong cash flows from sources such
as 401(k) plans have pushed stock prices to unsustainable levels, making the
market subject to a significant price correction. However, most investors have
shrugged off these warnings and continue to believe the stock market will
provide strong investment returns over the long-term.
During the last six months, oil and gas, apparel retailing, and electronic
defense were among the strongest performing sectors, while trucking,
broadcast/media, and homebuilding were among the worst performing sectors in the
Index.
During the period, management also lowered the target range for the fund's
liquidity position, i.e., the percentage of the fund held in cash and stock
index futures contracts. It is intended that this policy change reduce the level
of short-term capital gains, which are generated from rolling (regularly buying
and selling) stock index futures in a rising market. Since the fund must
distribute all capital gains at the end of the calendar year, management hopes
this policy change will then reduce the tax liabilities of those investors
subject to income taxes.
* Performance quoted represents past performance and is not indicative of
future results. Investment return and principal value will fluctuate, so that
an investor's shares, when redeemed, may be worth more or less than their
original cost.
** This Index is unmanaged. Actual investments may not be made in an index.
FEDERATED MAX-CAP FUND
(FORMERLY, MAX-CAP FUND)
PORTFOLIO OF INVESTMENTS
APRIL 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
(A)COMMON STOCKS--94.7%
- -----------------------------------------------------------------------------------
BASIC INDUSTRY--6.8%
----------------------------------------------------------------
6,200 ASARCO, Inc. $ 205,375
----------------------------------------------------------------
16,300 Air Products & Chemicals, Inc. 931,137
----------------------------------------------------------------
32,900 Alcan Aluminum Ltd. 1,048,687
----------------------------------------------------------------
26,200 Aluminum Co. of America 1,634,225
----------------------------------------------------------------
78,979 Archer-Daniels-Midland Co. 1,490,729
----------------------------------------------------------------
15,400 (b) Armco, Inc. 86,625
----------------------------------------------------------------
7,800 Avery Dennison Corp. 444,600
----------------------------------------------------------------
4,300 Ball Corp. 133,837
----------------------------------------------------------------
51,200 Barrick Gold Corp. 1,568,000
----------------------------------------------------------------
7,500 Bemis Co., Inc. 242,812
----------------------------------------------------------------
16,000 (b) Bethlehem Steel Corp. 218,000
----------------------------------------------------------------
6,900 Boise Cascade Corp. 320,850
----------------------------------------------------------------
13,600 Champion International Corp. 656,200
----------------------------------------------------------------
33,300 Corning, Inc. 1,157,175
----------------------------------------------------------------
13,300 Crown Cork & Seal Co., Inc. 626,762
----------------------------------------------------------------
13,650 Cyprus Amax Minerals 370,256
----------------------------------------------------------------
40,500 Dow Chemical Co. 3,599,437
----------------------------------------------------------------
81,000 Du Pont (E.I.) de Nemours & Co. 6,510,375
----------------------------------------------------------------
12,125 Eastman Chemical Co. 815,406
----------------------------------------------------------------
16,500 Echo Bay Mines, Ltd. 216,562
----------------------------------------------------------------
9,540 Ecolab, Inc. 310,050
----------------------------------------------------------------
20,862 Engelhard Corp. 524,158
----------------------------------------------------------------
30,200 Freeport-McMoRan Copper & Gold, Inc., Class B 992,825
----------------------------------------------------------------
13,200 Georgia-Pacific Corp. 1,026,300
----------------------------------------------------------------
7,600 Goodrich (B.F.) Co. 302,100
----------------------------------------------------------------
</TABLE>
FEDERATED MAX-CAP FUND
(FORMERLY, MAX-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
BASIC INDUSTRY--CONTINUED
----------------------------------------------------------------
13,800 Grace (W.R.) & Co. $ 1,069,500
----------------------------------------------------------------
10,000 Great Lakes Chemical Corp. 682,500
----------------------------------------------------------------
17,100 Hercules, Inc. 1,034,550
----------------------------------------------------------------
20,200 Homestake Mining Co. 406,525
----------------------------------------------------------------
17,100 Inco Ltd. 574,988
----------------------------------------------------------------
6,600 Inland Steel Industries, Inc. 162,525
----------------------------------------------------------------
42,776 International Paper Co. 1,705,693
----------------------------------------------------------------
12,000 James River Corp. of Virginia 321,000
----------------------------------------------------------------
16,400 Louisiana-Pacific Corp. 412,050
----------------------------------------------------------------
8,300 Mead Corp. 461,688
----------------------------------------------------------------
6,800 Millipore Corp. 284,750
----------------------------------------------------------------
17,000 Monsanto Co. 2,575,500
----------------------------------------------------------------
21,600 Morton International, Inc. 764,100
----------------------------------------------------------------
10,100 Nalco Chemical Co. 308,050
----------------------------------------------------------------
12,711 Newmont Mining Corp. 735,649
----------------------------------------------------------------
12,700 Nucor Corp. 714,375
----------------------------------------------------------------
6,500 (b) Owens Corning 261,625
----------------------------------------------------------------
30,100 PPG Industries, Inc. 1,523,813
----------------------------------------------------------------
16,933 Pall Corp. 474,124
----------------------------------------------------------------
10,400 Phelps Dodge Corp. 764,400
----------------------------------------------------------------
12,400 Pioneer Hi-Bred International 691,300
----------------------------------------------------------------
34,900 Placer Dome, Inc. 968,475
----------------------------------------------------------------
4,300 Potlatch Corp. 183,288
----------------------------------------------------------------
20,100 Praxair, Inc. 776,363
----------------------------------------------------------------
9,100 Reynolds Metals Co. 489,125
----------------------------------------------------------------
10,000 Rohm & Haas Co. 663,750
----------------------------------------------------------------
19,235 Santa Fe Pacific Gold 286,121
----------------------------------------------------------------
</TABLE>
FEDERATED MAX-CAP FUND
(FORMERLY, MAX-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
BASIC INDUSTRY--CONTINUED
----------------------------------------------------------------
12,400 Sherwin-Williams Co. $ 579,700
----------------------------------------------------------------
7,300 Sigma-Aldrich Corp. 394,200
----------------------------------------------------------------
2,700 Springs Industries, Inc., Class A 124,200
----------------------------------------------------------------
13,308 Stone Container Corp. 226,236
----------------------------------------------------------------
8,300 Temple-Inland, Inc. 402,550
----------------------------------------------------------------
11,220 USX-U.S. Steel Group, Inc. 370,260
----------------------------------------------------------------
10,200 Union Camp Corp. 554,625
----------------------------------------------------------------
21,500 Union Carbide Corp. 978,250
----------------------------------------------------------------
14,750 Westvaco Corp. 457,250
----------------------------------------------------------------
30,000 Weyerhaeuser Co. 1,485,000
----------------------------------------------------------------
8,200 Willamette Industries, Inc. 504,300
----------------------------------------------------------------
13,250 Worthington Industries, Inc. 269,969
---------------------------------------------------------------- ------------
Total 51,074,850
---------------------------------------------------------------- ------------
CONSUMER DURABLES--2.9%
----------------------------------------------------------------
12,400 Black & Decker Corp. 499,100
----------------------------------------------------------------
4,200 Briggs & Stratton Corp. 190,575
----------------------------------------------------------------
14,000 Brunswick Corp. 308,000
----------------------------------------------------------------
4,100 Centex Corp. 110,700
----------------------------------------------------------------
52,084 Chrysler Corp. 3,268,271
----------------------------------------------------------------
12,200 Cooper Tire & Rubber Co. 298,900
----------------------------------------------------------------
49,700 Eastman Kodak Co. 3,802,050
----------------------------------------------------------------
8,700 Echlin, Inc. 299,062
----------------------------------------------------------------
6,800 Fleetwood Enterprises, Inc. 178,500
----------------------------------------------------------------
150,200 Ford Motor Co. 5,388,425
----------------------------------------------------------------
18,000 Genuine Parts Co. 796,500
----------------------------------------------------------------
22,200 Goodyear Tire & Rubber Co. 1,157,175
----------------------------------------------------------------
12,900 Hasbro, Inc. 474,075
----------------------------------------------------------------
</TABLE>
FEDERATED MAX-CAP FUND
(FORMERLY, MAX-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
CONSUMER DURABLES--CONTINUED
----------------------------------------------------------------
5,953 Jostens, Inc. $ 133,943
----------------------------------------------------------------
4,800 Kaufman & Broad Homes Corp. 67,800
----------------------------------------------------------------
40,725 Mattel, Inc. 1,058,850
----------------------------------------------------------------
15,700 Maytag Corp. 337,550
----------------------------------------------------------------
23,100 Newell Co. 658,350
----------------------------------------------------------------
2,900 Outboard Marine Corp. 57,275
----------------------------------------------------------------
6,800 Polaroid Corp. 306,000
----------------------------------------------------------------
4,000 Pulte Corp. 106,000
----------------------------------------------------------------
23,500 Rubbermaid, Inc. 663,875
----------------------------------------------------------------
6,200 Snap-On Tools Corp. 297,600
----------------------------------------------------------------
6,600 Stanley Works 414,150
----------------------------------------------------------------
11,000 Whirlpool Corp. 661,375
---------------------------------------------------------------- ------------
Total 21,534,101
---------------------------------------------------------------- ------------
CONSUMER NON-DURABLES--11.0%
----------------------------------------------------------------
4,000 Alberto-Culver Co., Class B 151,500
----------------------------------------------------------------
27,800 American Brands, Inc. 1,157,175
----------------------------------------------------------------
10,900 American Greetings Corp., Class A 301,112
----------------------------------------------------------------
37,800 Anheuser-Busch Cos., Inc. 2,537,325
----------------------------------------------------------------
10,100 Avon Products, Inc. 897,637
----------------------------------------------------------------
2,500 Brown Group, Inc. 40,000
----------------------------------------------------------------
10,200 Brown-Forman Corp., Class B 402,900
----------------------------------------------------------------
21,500 CPC International, Inc. 1,486,187
----------------------------------------------------------------
36,400 Campbell Soup Co. 2,275,000
----------------------------------------------------------------
7,700 Clorox Co. 636,212
----------------------------------------------------------------
187,500 Coca-Cola Co. 15,281,250
----------------------------------------------------------------
21,300 Colgate-Palmolive Co. 1,632,112
----------------------------------------------------------------
36,300 ConAgra, Inc. 1,402,087
----------------------------------------------------------------
</TABLE>
FEDERATED MAX-CAP FUND
(FORMERLY, MAX-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
CONSUMER NON-DURABLES--CONTINUED
----------------------------------------------------------------
5,500 Coors Adolph Co., Class B $ 104,500
----------------------------------------------------------------
10,300 (b) Fruit of the Loom, Inc., Class A 271,662
----------------------------------------------------------------
23,100 General Mills, Inc. 1,282,050
----------------------------------------------------------------
64,800 Gillette Co. 3,499,200
----------------------------------------------------------------
53,400 Heinz (H.J.) Co. 1,808,925
----------------------------------------------------------------
12,500 Hershey Foods Corp. 948,437
----------------------------------------------------------------
16,300 International Flavors & Fragrances, Inc. 800,738
----------------------------------------------------------------
32,400 Kellogg Co. 2,312,550
----------------------------------------------------------------
40,824 Kimberly-Clark Corp. 2,964,843
----------------------------------------------------------------
11,300 Liz Claiborne, Inc. 411,038
----------------------------------------------------------------
21,200 Nike, Inc., Class B 1,855,000
----------------------------------------------------------------
115,700 PepsiCo, Inc. 7,346,950
----------------------------------------------------------------
124,300 Philip Morris Cos., Inc. 11,202,538
----------------------------------------------------------------
100,400 Procter & Gamble Co. 8,483,800
----------------------------------------------------------------
19,600 Quaker Oats Co. 673,750
----------------------------------------------------------------
14,800 Ralston Purina Co. 863,950
----------------------------------------------------------------
11,800 Reebok International, Ltd. 342,200
----------------------------------------------------------------
5,900 Russell Corp. 153,400
----------------------------------------------------------------
70,100 Sara Lee Corp. 2,173,100
----------------------------------------------------------------
54,500 Seagram Co., Ltd. 1,846,188
----------------------------------------------------------------
7,100 Stride Rite Corp. 68,338
----------------------------------------------------------------
29,300 UST, Inc. 937,600
----------------------------------------------------------------
23,400 Unilever N.V., ADR 3,194,100
----------------------------------------------------------------
9,400 V.F. Corp. 535,800
----------------------------------------------------------------
17,100 Wrigley (Wm.), Jr. Co. 899,888
---------------------------------------------------------------- ------------
Total 83,181,042
---------------------------------------------------------------- ------------
</TABLE>
FEDERATED MAX-CAP FUND
(FORMERLY, MAX-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
ENERGY MINERALS--7.8%
----------------------------------------------------------------
13,700 Amerada-Hess Corp. $ 775,762
----------------------------------------------------------------
72,700 Amoco Corp. 5,307,100
----------------------------------------------------------------
8,900 Ashland, Inc. 366,012
----------------------------------------------------------------
23,500 Atlantic Richfield Co. 2,767,125
----------------------------------------------------------------
18,500 Burlington Resources, Inc. 689,125
----------------------------------------------------------------
95,300 Chevron Corp. 5,527,400
----------------------------------------------------------------
181,500 Exxon Corp. 15,427,500
----------------------------------------------------------------
7,500 Kerr-McGee Corp. 479,063
----------------------------------------------------------------
4,900 Louisiana Land & Exploration Co. 265,213
----------------------------------------------------------------
57,800 Mobil Corp. 6,647,000
----------------------------------------------------------------
45,700 Occidental Petroleum Corp. 1,176,775
----------------------------------------------------------------
14,500 (b) Oryx Energy Co. 232,000
----------------------------------------------------------------
6,700 Pennzoil Co. 296,475
----------------------------------------------------------------
38,300 Phillips Petroleum Co. 1,589,450
----------------------------------------------------------------
78,300 Royal Dutch Petroleum Co., ADR 11,216,475
----------------------------------------------------------------
13,112 (b) Santa Fe Energy Resource, Inc. 157,344
----------------------------------------------------------------
15,137 Sun Co., Inc. 469,247
----------------------------------------------------------------
38,000 Texaco, Inc. 3,249,000
----------------------------------------------------------------
42,000 USX Corp. 924,000
----------------------------------------------------------------
35,600 Unocal Corp. 1,143,650
---------------------------------------------------------------- ------------
Total 58,705,716
---------------------------------------------------------------- ------------
FINANCE--12.2%
----------------------------------------------------------------
15,800 AON Corp. 847,275
----------------------------------------------------------------
16,400 Aetna Life & Casualty Co. 1,168,500
----------------------------------------------------------------
17,100 Ahmanson (H.F.) & Co. 406,125
----------------------------------------------------------------
6,500 Alexander & Alexander Services, Inc. 122,687
----------------------------------------------------------------
66,105 Allstate Corp. 2,569,832
----------------------------------------------------------------
</TABLE>
FEDERATED MAX-CAP FUND
(FORMERLY, MAX-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
FINANCE--CONTINUED
----------------------------------------------------------------
72,300 American Express Co. $ 3,506,550
----------------------------------------------------------------
29,800 American General Corp. 1,046,725
----------------------------------------------------------------
69,393 American International Group, Inc. 6,340,785
----------------------------------------------------------------
65,327 Banc One Corp. 2,270,113
----------------------------------------------------------------
15,700 Bank of Boston Corp. 759,487
----------------------------------------------------------------
27,500 Bank of New York Co., Inc. 1,333,750
----------------------------------------------------------------
54,676 BankAmerica Corp. 4,141,707
----------------------------------------------------------------
11,400 Bankers Trust New York Corp. 790,875
----------------------------------------------------------------
14,100 Barnett Banks, Inc. 893,587
----------------------------------------------------------------
7,600 Beneficial Corp. 419,900
----------------------------------------------------------------
18,900 Boatmen's Bancshares, Inc. 732,375
----------------------------------------------------------------
10,600 CIGNA Corp. 1,201,775
----------------------------------------------------------------
62,770 Chase Manhattan Corp. 4,323,284
----------------------------------------------------------------
12,700 Chubb Corp. 1,201,737
----------------------------------------------------------------
58,300 Citicorp 4,591,125
----------------------------------------------------------------
15,800 Comerica, Inc. 687,300
----------------------------------------------------------------
21,800 Corestates Financial Corp. 850,200
----------------------------------------------------------------
24,921 Dean Witter, Discover & Co. 1,358,194
----------------------------------------------------------------
26,400 Federal Home Loan Mortgage Corp. 2,201,100
----------------------------------------------------------------
159,800 Federal National Mortgage Association 4,893,875
----------------------------------------------------------------
13,800 Fifth Third Bancorp 762,450
----------------------------------------------------------------
20,000 First Bank System, Inc. 1,205,000
----------------------------------------------------------------
41,755 First Union Corp. 2,567,932
----------------------------------------------------------------
36,410 Fleet Financial Group, Inc. 1,565,630
----------------------------------------------------------------
12,000 General RE Corp. 1,714,500
----------------------------------------------------------------
8,800 Golden West Financial Corp. 463,100
----------------------------------------------------------------
19,600 Great Western Financial Corp. 450,800
----------------------------------------------------------------
</TABLE>
FEDERATED MAX-CAP FUND
(FORMERLY, MAX-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
FINANCE--CONTINUED
----------------------------------------------------------------
20,100 Green Tree Financial Corp. $ 678,375
----------------------------------------------------------------
14,000 Household International, Inc. 967,750
----------------------------------------------------------------
15,700 (b) ITT Hartford Group, Inc. 767,338
----------------------------------------------------------------
27,600 J.P. Morgan & Co., Inc. 2,321,850
----------------------------------------------------------------
10,725 Jefferson-Pilot Corp. 565,744
----------------------------------------------------------------
35,200 KeyCorp 1,359,600
----------------------------------------------------------------
14,000 Lincoln National Corp. 675,500
----------------------------------------------------------------
32,475 MBNA Corp. 921,478
----------------------------------------------------------------
10,800 Marsh & McLennan Cos., Inc. 1,015,200
----------------------------------------------------------------
21,400 Mellon Bank Corp. 1,150,250
----------------------------------------------------------------
27,300 Merrill Lynch & Co., Inc. 1,648,238
----------------------------------------------------------------
22,500 Morgan Stanley Group, Inc. 1,130,625
----------------------------------------------------------------
21,600 National City Corp. 796,500
----------------------------------------------------------------
40,546 NationsBank Corp. 3,233,544
----------------------------------------------------------------
45,500 Norwest Corp. 1,643,688
----------------------------------------------------------------
35,200 PNC Financial Corp. 1,064,800
----------------------------------------------------------------
14,100 Providian Corp. 650,363
----------------------------------------------------------------
7,700 Republic New York Corp. 457,188
----------------------------------------------------------------
11,600 Ryder Systems, Inc. 337,850
----------------------------------------------------------------
18,200 SAFECO Corp. 600,600
----------------------------------------------------------------
15,500 Salomon, Inc. 629,688
----------------------------------------------------------------
12,300 St. Paul Cos., Inc. 653,438
----------------------------------------------------------------
17,100 SunTrust Banks, Inc. 1,205,550
----------------------------------------------------------------
10,350 Torchmark Corp. 445,050
----------------------------------------------------------------
10,300 Transamerica Corp. 782,800
----------------------------------------------------------------
46,778 Travelers Group, Inc. 2,876,847
----------------------------------------------------------------
14,750 U.S. Bancorp. 477,531
----------------------------------------------------------------
</TABLE>
FEDERATED MAX-CAP FUND
(FORMERLY, MAX-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
FINANCE--CONTINUED
----------------------------------------------------------------
10,600 UNUM Corp. $ 630,700
----------------------------------------------------------------
14,000 USF&G Corp. 222,250
----------------------------------------------------------------
5,100 USLIFE Corp. 143,438
----------------------------------------------------------------
25,000 Wachovia Corp. 1,100,000
----------------------------------------------------------------
15,066 Wells Fargo & Co. 3,655,388
---------------------------------------------------------------- ------------
Total 92,197,436
---------------------------------------------------------------- ------------
HEALTH CARE--9.7%
----------------------------------------------------------------
117,100 Abbott Laboratories 4,757,187
----------------------------------------------------------------
268 (b) Allergan Ligand Retinoid Therapeutics, Inc. 6,968
----------------------------------------------------------------
9,300 Allergan, Inc. 328,987
----------------------------------------------------------------
12,000 (b) Alza Corp. 342,000
----------------------------------------------------------------
44,700 American Home Products Corp. 4,715,850
----------------------------------------------------------------
38,800 (b) Amgen, Inc. 2,231,000
----------------------------------------------------------------
7,700 Bard (C.R.), Inc. 281,050
----------------------------------------------------------------
8,600 Bausch & Lomb, Inc. 342,925
----------------------------------------------------------------
41,000 Baxter International, Inc. 1,814,250
----------------------------------------------------------------
9,700 Becton, Dickinson & Co. 782,062
----------------------------------------------------------------
12,600 (b) Beverly Enterprises, Inc. 152,775
----------------------------------------------------------------
17,100 (b) Biomet, Inc. 252,225
----------------------------------------------------------------
22,100 (b) Boston Scientific Corp. 953,062
----------------------------------------------------------------
74,600 Bristol-Myers Squibb Co. 6,135,850
----------------------------------------------------------------
64,638 Columbia/HCA Healthcare Corp. 3,433,894
----------------------------------------------------------------
6,500 (b) Community Psychiatric Centers 60,125
----------------------------------------------------------------
22,100 (b) Humana, Inc. 544,213
----------------------------------------------------------------
94,100 Johnson & Johnson 8,704,250
----------------------------------------------------------------
85,100 Lilly (Eli) & Co. 5,020,900
----------------------------------------------------------------
11,200 Mallinckrodt Group, Inc. 441,000
----------------------------------------------------------------
</TABLE>
FEDERATED MAX-CAP FUND
(FORMERLY, MAX-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
HEALTH CARE--CONTINUED
----------------------------------------------------------------
9,150 Manor Care, Inc. $ 367,144
----------------------------------------------------------------
33,700 Medtronic, Inc. 1,790,313
----------------------------------------------------------------
183,600 Merck & Co., Inc. 11,107,800
----------------------------------------------------------------
91,900 Pfizer, Inc. 6,329,613
----------------------------------------------------------------
74,455 (b) Pharmacia & Upjohn, Inc. 2,847,904
----------------------------------------------------------------
54,400 Schering Plough Corp. 3,121,200
----------------------------------------------------------------
3,400 Shared Medical Systems Corp. 232,900
----------------------------------------------------------------
10,050 (b) St. Jude Medical, Inc. 366,825
----------------------------------------------------------------
29,300 (b) Tenet Healthcare Corp. 600,650
----------------------------------------------------------------
23,400 U.S. Healthcare, Inc. 1,219,725
----------------------------------------------------------------
8,300 U.S. Surgical Corp. 307,100
----------------------------------------------------------------
25,200 United Healthcare Corp. 1,474,200
----------------------------------------------------------------
19,700 Warner-Lambert Co. 2,201,475
---------------------------------------------------------------- ------------
Total 73,267,422
---------------------------------------------------------------- ------------
PRODUCER MANUFACTURING--7.5%
----------------------------------------------------------------
41,300 Allied-Signal, Inc. 2,400,562
----------------------------------------------------------------
5,500 Armstrong World Industries, Inc. 313,500
----------------------------------------------------------------
9,600 Case Corp. 484,800
----------------------------------------------------------------
29,300 Caterpillar, Inc. 1,875,200
----------------------------------------------------------------
4,900 Cincinnati Milacron, Inc. 129,237
----------------------------------------------------------------
17,000 Cooper Industries, Inc. 722,500
----------------------------------------------------------------
4,300 Crane Co. 178,450
----------------------------------------------------------------
6,100 Cummins Engine Co., Inc. 285,175
----------------------------------------------------------------
14,500 Dana Corp. 482,125
----------------------------------------------------------------
37,900 Deere & Co. 1,473,362
----------------------------------------------------------------
13,600 Dial Corp. Del. 382,500
----------------------------------------------------------------
16,700 Dover Corp. 860,050
----------------------------------------------------------------
</TABLE>
FEDERATED MAX-CAP FUND
(FORMERLY, MAX-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
PRODUCER MANUFACTURING--CONTINUED
----------------------------------------------------------------
26,700 Dresser Industries, Inc. $ 851,062
----------------------------------------------------------------
11,400 Eaton Corp. 689,700
----------------------------------------------------------------
32,700 Emerson Electric Co. 2,734,537
----------------------------------------------------------------
5,300 (b) FMC Corp. 367,687
----------------------------------------------------------------
249,600 General Electric Co. 19,344,000
----------------------------------------------------------------
6,900 General Signal Corp. 262,200
----------------------------------------------------------------
5,000 Giddings & Lewis, Inc. 92,812
----------------------------------------------------------------
6,778 Harnischfeger Industries, Inc. 274,509
----------------------------------------------------------------
18,800 Honeywell, Inc. 989,350
----------------------------------------------------------------
15,700 (b) ITT Corp. 955,738
----------------------------------------------------------------
15,700 (b) ITT Industries, Inc. 431,750
----------------------------------------------------------------
16,700 Illinois Tool Works, Inc. 1,123,075
----------------------------------------------------------------
15,500 Ingersoll-Rand Co. 600,625
----------------------------------------------------------------
6,000 Johnson Controls, Inc. 429,000
----------------------------------------------------------------
17,000 Loews Corp. 1,296,250
----------------------------------------------------------------
23,400 Masco Corp. 637,650
----------------------------------------------------------------
61,500 Minnesota Mining & Manufacturing Co. 4,043,625
----------------------------------------------------------------
1,400 NACCO Industries, Inc., Class A 88,375
----------------------------------------------------------------
7,200 National Service Industries, Inc. 266,400
----------------------------------------------------------------
10,970 (b) Navistar International Corp. 131,640
----------------------------------------------------------------
5,740 PACCAR, Inc. 284,130
----------------------------------------------------------------
10,800 Parker-Hannifin Corp. 456,300
----------------------------------------------------------------
22,700 Pitney Bowes, Inc. 1,106,625
----------------------------------------------------------------
6,500 Raychem Corp. 506,188
----------------------------------------------------------------
9,400 TRW, Inc. 882,425
----------------------------------------------------------------
8,100 Teledyne, Inc. 300,713
----------------------------------------------------------------
27,400 Tenneco, Inc. 1,503,575
----------------------------------------------------------------
</TABLE>
FEDERATED MAX-CAP FUND
(FORMERLY, MAX-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
PRODUCER MANUFACTURING--CONTINUED
----------------------------------------------------------------
12,800 Textron, Inc. $ 1,097,600
----------------------------------------------------------------
5,500 Thomas & Betts Corp. 216,563
----------------------------------------------------------------
4,600 Timken Co. 182,275
----------------------------------------------------------------
4,200 Trinova Corp. 148,050
----------------------------------------------------------------
21,500 Tyco International, Ltd. 830,438
----------------------------------------------------------------
6,180 (b) Varity Corp. 263,423
----------------------------------------------------------------
52,400 Westinghouse Electric Corp. 989,050
----------------------------------------------------------------
15,500 Whitman Corp. 391,375
----------------------------------------------------------------
17,300 Xerox Corp. 2,534,450
---------------------------------------------------------------- ------------
Total 56,890,626
---------------------------------------------------------------- ------------
RETAIL TRADE--4.7%
----------------------------------------------------------------
37,200 Albertsons, Inc. 1,432,200
----------------------------------------------------------------
21,700 American Stores Co. 724,238
----------------------------------------------------------------
15,000 Charming Shoppes, Inc. 96,562
----------------------------------------------------------------
14,000 Circuit City Store, Inc. 444,500
----------------------------------------------------------------
10,400 Dayton-Hudson Corp. 993,200
----------------------------------------------------------------
16,600 Dillard Department Stores, Inc., Class A 666,075
----------------------------------------------------------------
29,600 (b) Federated Department Stores, Inc. 987,900
----------------------------------------------------------------
42,400 Gap (The), Inc. 1,277,300
----------------------------------------------------------------
8,700 Giant Foods, Inc., Class A 277,312
----------------------------------------------------------------
5,500 Great Atlantic & Pacific Tea Co., Inc. 191,812
----------------------------------------------------------------
10,000 Harcourt General, Inc. 440,000
----------------------------------------------------------------
66,500 Home Depot, Inc. 3,150,437
----------------------------------------------------------------
66,800 K Mart Corp. 676,350
----------------------------------------------------------------
17,200 (b) Kroger Co., Inc. 707,350
----------------------------------------------------------------
46,264 Limited, Inc. 959,978
----------------------------------------------------------------
3,100 Longs Drug Stores Corp. 140,275
----------------------------------------------------------------
</TABLE>
FEDERATED MAX-CAP FUND
(FORMERLY, MAX-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
RETAIL TRADE--CONTINUED
----------------------------------------------------------------
23,300 Lowe's Cos., Inc. $ 754,338
----------------------------------------------------------------
36,300 May Department Stores Co. 1,851,300
----------------------------------------------------------------
15,400 Melville Corp. 598,675
----------------------------------------------------------------
5,300 Mercantile Stores Co., Inc. 330,588
----------------------------------------------------------------
12,000 Nordstrom, Inc. 610,500
----------------------------------------------------------------
33,800 Penney (J.C.) Co., Inc. 1,673,100
----------------------------------------------------------------
8,900 Pep Boys-Manny Moe & Jack 297,038
----------------------------------------------------------------
9,200 Premark International, Inc. 472,650
----------------------------------------------------------------
28,450 (b) Price/Costco, Inc. 540,550
----------------------------------------------------------------
12,300 Rite Aid Corp. 364,388
----------------------------------------------------------------
56,600 Sears, Roebuck & Co. 2,822,925
----------------------------------------------------------------
10,600 TJX Cos., Inc. 312,700
----------------------------------------------------------------
10,565 Tandy Corp. 548,059
----------------------------------------------------------------
40,500 (b) Toys "R" Us, Inc. 1,128,938
----------------------------------------------------------------
335,900 Wal-Mart Stores, Inc. 8,019,613
----------------------------------------------------------------
35,900 Walgreen Co. 1,148,800
----------------------------------------------------------------
21,900 Winn-Dixie Stores, Inc. 722,700
----------------------------------------------------------------
19,400 (b) Woolworth (F.W.) Co. 371,025
---------------------------------------------------------------- ------------
Total 35,733,376
---------------------------------------------------------------- ------------
SERVICES--6.2%
----------------------------------------------------------------
16,100 Alco Standard Corp. 931,787
----------------------------------------------------------------
20,600 Baker Hughes, Inc. 654,050
----------------------------------------------------------------
6,900 (b) Bally Entertainment Group 144,037
----------------------------------------------------------------
15,400 Block (H&R), Inc. 540,925
----------------------------------------------------------------
29,100 Browning-Ferris Industries, Inc. 938,475
----------------------------------------------------------------
24,550 (b) CUC International, Inc. 807,081
----------------------------------------------------------------
35,050 Comcast Corp., Class A 613,375
----------------------------------------------------------------
</TABLE>
FEDERATED MAX-CAP FUND
(FORMERLY, MAX-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
SERVICES--CONTINUED
----------------------------------------------------------------
23,100 (b) Darden Restaurants, Inc. $ 317,625
----------------------------------------------------------------
12,100 Deluxe Corp. 423,500
----------------------------------------------------------------
98,500 Disney (Walt) Co. 6,107,000
----------------------------------------------------------------
22,200 Donnelley (R.R.) & Sons Co. 799,200
----------------------------------------------------------------
14,300 Dow Jones & Co. 534,462
----------------------------------------------------------------
24,800 Dun & Bradstreet Corp. 1,509,700
----------------------------------------------------------------
5,500 Fleming Cos., Inc. 75,625
----------------------------------------------------------------
12,100 Fluor Corp. 800,112
----------------------------------------------------------------
5,300 Foster Wheeler Corp. 245,125
----------------------------------------------------------------
20,400 Gannett Co., Inc. 1,394,850
----------------------------------------------------------------
7,400 Grainger (W.W.), Inc. 510,600
----------------------------------------------------------------
16,600 Halliburton Co. 952,425
----------------------------------------------------------------
4,500 Harland (John H.) Co. 118,125
----------------------------------------------------------------
14,950 (b) Harrah's Entertainment, Inc. 515,775
----------------------------------------------------------------
3,600 Helmerich & Payne, Inc. 132,750
----------------------------------------------------------------
7,100 Hilton Hotels Corp. 749,050
----------------------------------------------------------------
11,200 Interpublic Group Cos., Inc. 523,600
----------------------------------------------------------------
5,350 (b) King World Productions, Inc. 232,725
----------------------------------------------------------------
7,800 Knight-Ridder, Inc. 564,525
----------------------------------------------------------------
40,700 Laidlaw, Inc., Class B 427,350
----------------------------------------------------------------
3,550 Luby's Cafeterias, Inc. 85,200
----------------------------------------------------------------
18,200 Marriott Corp. 887,250
----------------------------------------------------------------
7,800 McDermott International, Inc. 163,800
----------------------------------------------------------------
102,000 McDonald's Corp. 4,883,250
----------------------------------------------------------------
14,600 McGraw-Hill Cos., Inc. 644,225
----------------------------------------------------------------
4,000 Meredith Corp. 181,500
----------------------------------------------------------------
14,600 Moore Corp. Ltd. 266,450
----------------------------------------------------------------
</TABLE>
FEDERATED MAX-CAP FUND
(FORMERLY, MAX-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
SERVICES--CONTINUED
----------------------------------------------------------------
14,500 New York Times Co., Class A $ 471,250
----------------------------------------------------------------
7,100 Ogden Corp. 143,775
----------------------------------------------------------------
12,300 (b) Rowan Companies, Inc. 181,425
----------------------------------------------------------------
7,800 (b) Ryan's Family Steak Houses, Inc. 75,075
----------------------------------------------------------------
8,550 Safety-Kleen Corp. 128,250
----------------------------------------------------------------
35,500 Schlumberger, Ltd. 3,132,875
----------------------------------------------------------------
14,000 Service Corp. International 743,750
----------------------------------------------------------------
6,000 (b) Shoney's, Inc. 66,750
----------------------------------------------------------------
10,300 Super Valu Stores, Inc. 329,600
----------------------------------------------------------------
26,700 Sysco Corp. 857,738
----------------------------------------------------------------
92,800 (b) Tele-Communications, Inc., Class A 1,774,800
----------------------------------------------------------------
55,440 Time Warner, Inc. 2,266,110
----------------------------------------------------------------
16,300 Times Mirror Co., Class A 694,788
----------------------------------------------------------------
9,800 Tribune Co. 683,550
----------------------------------------------------------------
66,800 (b) U.S. West Media Group 1,302,600
----------------------------------------------------------------
52,268 (b) Viacom, Inc., Class B 2,142,988
----------------------------------------------------------------
70,700 WMX Technologies, Inc. 2,456,825
----------------------------------------------------------------
15,000 Wendy's International, Inc. 286,875
----------------------------------------------------------------
7,700 Western Atlas, Inc. 462,000
---------------------------------------------------------------- ------------
Total 46,876,553
---------------------------------------------------------------- ------------
TECHNOLOGY--13.1%
----------------------------------------------------------------
23,100 (b) 3Com Corp. 1,065,488
----------------------------------------------------------------
31,780 AMP, Inc. 1,422,155
----------------------------------------------------------------
15,900 (b) Advanced Micro Devices, Inc. 298,125
----------------------------------------------------------------
17,100 (b) Amdahl Corp. 218,025
----------------------------------------------------------------
8,375 (b) Andrew Corp. 402,000
----------------------------------------------------------------
17,700 Apple Computer, Inc. 431,437
----------------------------------------------------------------
</TABLE>
FEDERATED MAX-CAP FUND
(FORMERLY, MAX-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
TECHNOLOGY--CONTINUED
----------------------------------------------------------------
24,700 (b) Applied Materials, Inc. $ 988,000
----------------------------------------------------------------
6,900 Autodesk, Inc. 281,175
----------------------------------------------------------------
41,800 Automatic Data Processing, Inc. 1,624,975
----------------------------------------------------------------
26,500 (b) Bay Networks, Inc. 834,750
----------------------------------------------------------------
49,700 Boeing Co. 4,081,612
----------------------------------------------------------------
10,400 (b) Cabletron Systems, Inc. 783,900
----------------------------------------------------------------
6,700 (b) Ceridian Corp. 319,925
----------------------------------------------------------------
78,800 (b) Cisco Systems, Inc. 4,087,750
----------------------------------------------------------------
38,300 (b) Compaq Computer Corp. 1,785,737
----------------------------------------------------------------
39,850 Computer Associates International, Inc. 2,923,994
----------------------------------------------------------------
8,100 (b) Computer Sciences Corp. 599,400
----------------------------------------------------------------
770 (b) Cray Research, Inc. 22,715
----------------------------------------------------------------
16,600 (b) DSC Communications Corp. 522,900
----------------------------------------------------------------
5,400 (b) Data General Corp. 83,025
----------------------------------------------------------------
21,500 (b) Digital Equipment Corp. 1,284,625
----------------------------------------------------------------
8,000 EG & G, Inc. 176,000
----------------------------------------------------------------
31,900 (b) EMC Corp. Mass 653,950
----------------------------------------------------------------
32,100 First Data Corp., Class 2,439,600
----------------------------------------------------------------
9,120 General Dynamics Corp. 575,700
----------------------------------------------------------------
18,000 General Instrument Corp. 589,500
----------------------------------------------------------------
110,100 General Motors Corp. 5,972,925
----------------------------------------------------------------
5,700 Harris Corp. 351,975
----------------------------------------------------------------
74,600 Hewlett-Packard Co. 7,898,275
----------------------------------------------------------------
121,100 Intel Corp. 8,204,525
----------------------------------------------------------------
6,600 (b) Intergraph Corp. 83,738
----------------------------------------------------------------
85,700 International Business Machines Corp. 9,212,750
----------------------------------------------------------------
23,100 (b) LSI Logic Corp. 831,600
----------------------------------------------------------------
</TABLE>
FEDERATED MAX-CAP FUND
(FORMERLY, MAX-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
TECHNOLOGY--CONTINUED
----------------------------------------------------------------
33,088 Lockheed Martin Corp. $ 2,667,720
----------------------------------------------------------------
25,000 (b) Loral Space & Communications 359,375
----------------------------------------------------------------
17,200 McDonnell-Douglas Corp. 1,659,800
----------------------------------------------------------------
30,100 Micron Technology, Inc. 1,094,888
----------------------------------------------------------------
85,000 (b) Microsoft Corp. 9,636,875
----------------------------------------------------------------
85,800 Motorola, Inc. 5,255,250
----------------------------------------------------------------
18,300 (b) National Semiconductor Corp. 288,225
----------------------------------------------------------------
37,000 Northern Telecom, Ltd. 1,905,500
----------------------------------------------------------------
7,200 Northrop Corp. 445,500
----------------------------------------------------------------
53,600 (b) Novell, Inc. 777,200
----------------------------------------------------------------
94,350 (b) Oracle Corp. 3,184,313
----------------------------------------------------------------
6,200 Perkin-Elmer Corp. 340,225
----------------------------------------------------------------
36,000 Raytheon Co. 1,822,500
----------------------------------------------------------------
31,700 Rockwell International Corp. 1,854,450
----------------------------------------------------------------
11,100 Scientific-Atlanta, Inc. 205,350
----------------------------------------------------------------
21,200 (b) Silicon Graphics, Inc. 628,050
----------------------------------------------------------------
27,900 (b) Sun Microsystems, Inc. 1,513,575
----------------------------------------------------------------
17,000 (b) Tandem Computers, Inc. 216,750
----------------------------------------------------------------
4,600 Tektronix, Inc. 182,275
----------------------------------------------------------------
12,900 (b) Tellabs, Inc. 712,725
----------------------------------------------------------------
27,100 Texas Instruments, Inc. 1,531,150
----------------------------------------------------------------
25,100 (b) Unisys Corp. 150,600
----------------------------------------------------------------
17,900 United Technologies Corp. 1,977,950
---------------------------------------------------------------- ------------
Total 99,462,497
---------------------------------------------------------------- ------------
TRANSPORTATION--1.5%
----------------------------------------------------------------
11,100 (b) AMR Corp. 990,675
----------------------------------------------------------------
22,111 Burlington Northern Santa Fe 1,934,712
----------------------------------------------------------------
</TABLE>
FEDERATED MAX-CAP FUND
(FORMERLY, MAX-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
TRANSPORTATION--CONTINUED
----------------------------------------------------------------
30,700 CSX Corp. $ 1,573,375
----------------------------------------------------------------
5,800 (b) Caliber System, Inc. 232,725
----------------------------------------------------------------
6,300 Consolidated Freightways, Inc. 164,587
----------------------------------------------------------------
11,500 Consolidated Rail Corp. 802,125
----------------------------------------------------------------
7,400 Delta Air Lines, Inc. 594,775
----------------------------------------------------------------
8,300 (b) Federal Express Corp. 670,225
----------------------------------------------------------------
19,700 Norfolk Southern Corp. 1,654,800
----------------------------------------------------------------
20,900 Southwest Airlines Co. 621,775
----------------------------------------------------------------
8,800 (b) USAir Group, Inc. 156,200
----------------------------------------------------------------
30,100 Union Pacific Corp. 2,050,563
----------------------------------------------------------------
4,100 (b) Yellow Corp. 50,225
---------------------------------------------------------------- ------------
Total 11,496,762
---------------------------------------------------------------- ------------
UTILITIES--11.3%
----------------------------------------------------------------
228,878 AT&T Corp. 14,018,777
----------------------------------------------------------------
72,100 Airtouch Communications, Inc. 2,253,125
----------------------------------------------------------------
27,600 Alltel Corp. 907,350
----------------------------------------------------------------
27,000 American Electric Power Co., Inc. 1,096,875
----------------------------------------------------------------
80,700 Ameritech Corp. 4,710,862
----------------------------------------------------------------
21,550 Baltimore Gas & Electric Co. 568,381
----------------------------------------------------------------
63,800 Bell Atlantic Corp. 4,147,000
----------------------------------------------------------------
145,200 BellSouth Corp. 5,808,000
----------------------------------------------------------------
22,900 Carolina Power & Light Co. 824,400
----------------------------------------------------------------
27,900 Central & SouthWest Corp. 760,275
----------------------------------------------------------------
22,640 Cinergy Corp. 656,560
----------------------------------------------------------------
15,300 Coastal Corp. 606,262
----------------------------------------------------------------
7,400 (b) Columbia Gas System, Inc. 359,825
----------------------------------------------------------------
34,300 Consolidated Edison Co. 1,007,562
----------------------------------------------------------------
</TABLE>
FEDERATED MAX-CAP FUND
(FORMERLY, MAX-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
UTILITIES--CONTINUED
----------------------------------------------------------------
13,600 Consolidated Natural Gas Co. $ 635,800
----------------------------------------------------------------
21,200 DTE Energy Co. 657,200
----------------------------------------------------------------
25,150 Dominion Resources, Inc. 968,275
----------------------------------------------------------------
30,000 Duke Power Co. 1,410,000
----------------------------------------------------------------
3,100 Eastern Enterprises 111,212
----------------------------------------------------------------
65,400 Edison International 1,046,400
----------------------------------------------------------------
37,000 Enron Corp. 1,489,250
----------------------------------------------------------------
9,900 Enserch Corp. 212,850
----------------------------------------------------------------
33,200 Entergy Corp. 879,800
----------------------------------------------------------------
27,300 FPL Group, Inc. 1,177,312
----------------------------------------------------------------
140,800 GTE Corp. 6,107,200
----------------------------------------------------------------
16,900 General Public Utilities 536,575
----------------------------------------------------------------
38,400 Houston Industries, Inc. 820,800
----------------------------------------------------------------
99,400 MCI Communications Corp. 2,926,088
----------------------------------------------------------------
7,600 NICOR, Inc. 211,850
----------------------------------------------------------------
61,700 NYNEX Corp. 3,031,013
----------------------------------------------------------------
21,000 Niagara Mohawk Power Corp. 157,500
----------------------------------------------------------------
17,800 Noram Energy Corp. 195,800
----------------------------------------------------------------
9,900 Northern States Power Co. 462,825
----------------------------------------------------------------
22,400 Ohio Edison Co. 467,600
----------------------------------------------------------------
3,900 Oneok, Inc. 100,425
----------------------------------------------------------------
23,000 P P & L Resources, Inc. 520,375
----------------------------------------------------------------
12,000 Pacific Enterprises 309,000
----------------------------------------------------------------
63,100 Pacific Gas & Electric Co. 1,435,525
----------------------------------------------------------------
62,000 Pacific Telesis Group 2,123,500
----------------------------------------------------------------
41,500 Pacificorp 830,000
----------------------------------------------------------------
21,800 Panenergy Corp. 711,225
----------------------------------------------------------------
</TABLE>
FEDERATED MAX-CAP FUND
(FORMERLY, MAX-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
UTILITIES--CONTINUED
----------------------------------------------------------------
32,400 Peco Energy Co. $ 805,950
----------------------------------------------------------------
5,100 Peoples Energy Corp. 160,650
----------------------------------------------------------------
35,700 Public Service Enterprises Group, Inc. 932,663
----------------------------------------------------------------
87,800 SBC Communications, Inc. 4,390,000
----------------------------------------------------------------
12,700 Sonat, Inc. 554,038
----------------------------------------------------------------
95,700 Southern Co. 2,105,400
----------------------------------------------------------------
51,000 Sprint Corp. 2,148,375
----------------------------------------------------------------
33,000 Texas Utilities Co. 1,328,250
----------------------------------------------------------------
66,800 U.S. West, Inc. 2,187,700
----------------------------------------------------------------
31,300 Unicom Corp. 860,750
----------------------------------------------------------------
14,900 Union Electric Co. 575,513
----------------------------------------------------------------
14,800 Williams Cos., Inc. (The) 756,650
----------------------------------------------------------------
28,400 (b) WorldCom, Inc. 1,334,801
---------------------------------------------------------------- ------------
Total 85,401,394
---------------------------------------------------------------- ------------
TOTAL COMMON STOCKS (IDENTIFIED COST $589,006,661) 715,821,775
---------------------------------------------------------------- ------------
</TABLE>
FEDERATED MAX-CAP FUND
(FORMERLY, MAX-CAP FUND)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------- ---------------------------------------------------------------- ------------
<S> <C> <C> <C>
SHORT-TERM U.S. GOVERNMENT OBLIGATIONS--0.4%
- -----------------------------------------------------------------------------------
$ 3,000,000 United States Treasury Bill, 8/29/1996(at amortized cost) $ 2,950,770
---------------------------------------------------------------- ------------
(C)REPURCHASE AGREEMENT--4.7%
- -----------------------------------------------------------------------------------
35,755,000 BT Securities Corporation, 5.35%, dated 4/30/1996, due 5/1/1996
(at amortized cost) 35,755,000
---------------------------------------------------------------- ------------
TOTAL INVESTMENTS (IDENTIFIED COST $627,712,431)(D) $754,527,545
---------------------------------------------------------------- ------------
</TABLE>
(a) The Fund purchases Index futures contracts to efficiently manage cash flows
resulting from shareholder purchases and redemptions, dividend and capital
gain payments to shareholders and corporate actions while maintaining
exposure to the Index and minimizing trading costs. The total market value
of open Index futures contracts is $38,320,425 at April 30, 1996, which
represents 5.1% of net assets. Taking into consideration these open Index
futures contracts, the Fund's effective, total exposure to the Index is
99.8%.
(b) Non-income producing security.
(c) 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 is through participation in a joint
account with other Federated funds.
(d) The cost of investments for federal tax purposes amounts to $627,712,431.
The net unrealized appreciation of investments on a federal tax basis
amounts to $126,815,114 which is comprised of $135,482,002 appreciation and
$8,666,888 depreciation at April 30, 1996.
Note: The categories of investments are shown as a percentage of net assets
($755,442,912) at April 30, 1996.
The following acronym is used throughout this portfolio:
ADR -- American Depository Receipt
(See Notes which are an integral part of the Financial Statements)
FEDERATED MAX-CAP FUND
(FORMERLY, MAX-CAP FUND)
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- -------------------------------------------------------------------------------
Total investments in securities at value (identified and tax cost $627,712,431) $754,527,545
- -------------------------------------------------------------------------------
Income receivable 894,468
- -------------------------------------------------------------------------------
Receivable for shares sold 509,193
- -------------------------------------------------------------------------------
Deferred expenses 250
- ------------------------------------------------------------------------------- ------------
Total assets 755,931,456
- -------------------------------------------------------------------------------
LIABILITIES:
- -------------------------------------------------------------------------------
Payable to Bank $466,042
- --------------------------------------------------------------------
Payable for daily variable margin 5,850
- --------------------------------------------------------------------
Accrued expenses 16,652
- -------------------------------------------------------------------- --------
Total liabilities 488,544
- ------------------------------------------------------------------------------- ------------
NET ASSETS for 52,642,184 shares outstanding $755,442,912
- ------------------------------------------------------------------------------- ------------
NET ASSETS CONSIST OF:
- -------------------------------------------------------------------------------
Paid-in capital $618,212,320
- -------------------------------------------------------------------------------
Net unrealized appreciation of investments and futures contracts 127,749,505
- -------------------------------------------------------------------------------
Accumulated net realized gain on investments and futures contracts 8,341,817
- -------------------------------------------------------------------------------
Undistributed net investment income 1,139,270
- ------------------------------------------------------------------------------- ------------
Total Net Assets $755,442,912
- ------------------------------------------------------------------------------- ------------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PROCEEDS PER SHARE:
- -------------------------------------------------------------------------------
INSTITUTIONAL SHARES:
- -------------------------------------------------------------------------------
$716,448,735 / 49,922,335 shares outstanding $14.35
- ------------------------------------------------------------------------------- ------------
INSTITUTIONAL SERVICE SHARES:
- -------------------------------------------------------------------------------
$38,994,177 / 2,719,849 shares outstanding $14.34
- ------------------------------------------------------------------------------- ------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FEDERATED MAX-CAP FUND
(FORMERLY, MAX-CAP FUND)
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME:
- --------------------------------------------------------------------------------------------
Dividends $ 7,195,994
- --------------------------------------------------------------------------------------------
Interest 2,658,976
- -------------------------------------------------------------------------------------------- -----------
Total income 9,854,970
- --------------------------------------------------------------------------------------------
EXPENSES:
- --------------------------------------------------------------------------------------------
Management fee $ 1,106,905
- -----------------------------------------------------------------------------
Custodian fees 50,082
- -----------------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 45,012
- -----------------------------------------------------------------------------
Directors'/Trustees' fees 3,217
- -----------------------------------------------------------------------------
Auditing fees 6,552
- -----------------------------------------------------------------------------
Legal fees 4,550
- -----------------------------------------------------------------------------
Portfolio accounting fees 61,774
- -----------------------------------------------------------------------------
Distribution service fee--Institutional Service Shares 52,194
- -----------------------------------------------------------------------------
Shareholder services fee--Institutional Shares 878,925
- -----------------------------------------------------------------------------
Shareholder services fee--Institutional Service Shares 43,496
- -----------------------------------------------------------------------------
Share registration costs 38,948
- -----------------------------------------------------------------------------
Printing and postage 22,022
- -----------------------------------------------------------------------------
Insurance premiums 5,642
- -----------------------------------------------------------------------------
Taxes 30,274
- -----------------------------------------------------------------------------
Miscellaneous 3,761
- ----------------------------------------------------------------------------- -----------
Total expenses 2,353,354
- -----------------------------------------------------------------------------
Waivers--
- -----------------------------------------------------------------------------
Waiver of management fee $(218,702)
- -----------------------------------------------------------------
Waiver of distribution services fee--Institutional Service
Shares (43,496)
- -----------------------------------------------------------------
Waiver of shareholder services fee--Institutional Shares (878,925)
- ----------------------------------------------------------------- ---------
Total waivers (1,142,123)
- ----------------------------------------------------------------------------- -----------
Net expenses 1,212,231
- -------------------------------------------------------------------------------------------- -----------
Net investment income 8,642,739
- -------------------------------------------------------------------------------------------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FUTURES CONTRACTS:
- --------------------------------------------------------------------------------------------
Net realized gain on investments and futures contracts 12,291,689
- --------------------------------------------------------------------------------------------
Net change in unrealized appreciation of investments and futures contracts 74,409,747
- -------------------------------------------------------------------------------------------- -----------
Net realized and unrealized gain on investments and futures contracts 86,701,436
- -------------------------------------------------------------------------------------------- -----------
Change in net assets resulting from operations $95,344,175
- -------------------------------------------------------------------------------------------- -----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FEDERATED MAX-CAP FUND
(FORMERLY, MAX-CAP FUND)
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(UNAUDITED) YEAR ENDED
APRIL 30, 1996 OCTOBER 31, 1995
-------------- ----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- --------------------------------------------------------------------
OPERATIONS--
- --------------------------------------------------------------------
Net investment income $ 8,642,739 $ 16,679,223
- --------------------------------------------------------------------
Net realized gain (loss) on investments and futures contracts
($12,291,689 and $103,347,377 net gains, respectively, as computed
for federal income tax purposes) 12,291,689 99,787,657
- --------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on investments
and futures contracts 74,409,747 21,104,700
- -------------------------------------------------------------------- -------------- --------------
Change in net assets resulting from operations 95,344,175 137,571,580
- -------------------------------------------------------------------- -------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS--
- --------------------------------------------------------------------
Distributions from net investment income
- --------------------------------------------------------------------
Institutional Shares (10,108,141) (14,071,338)
- --------------------------------------------------------------------
Institutional Service Shares (458,816) (505,602)
- --------------------------------------------------------------------
Distributions from net realized gains on investment transactions and
futures contracts
- --------------------------------------------------------------------
Institutional Shares (98,650,542) (729,209)
- --------------------------------------------------------------------
Institutional Service Shares (4,696,378) (14,188)
- -------------------------------------------------------------------- -------------- --------------
Change in net assets resulting from distributions to
shareholders (113,913,877) (15,320,337)
- -------------------------------------------------------------------- -------------- --------------
SHARE TRANSACTIONS--
- --------------------------------------------------------------------
Proceeds from sale of shares 306,244,982 374,533,702
- --------------------------------------------------------------------
Net asset value of shares issued to shareholders in payment of
distributions declared 61,753,944 6,003,498
- --------------------------------------------------------------------
Cost of shares redeemed (308,418,763) (240,788,349)
- -------------------------------------------------------------------- -------------- --------------
Change in net assets resulting from share transactions 59,580,163 139,748,851
- -------------------------------------------------------------------- -------------- --------------
Change in net assets 41,010,461 260,000,094
- --------------------------------------------------------------------
NET ASSETS:
- --------------------------------------------------------------------
Beginning of period 714,432,451 452,432,357
- -------------------------------------------------------------------- -------------- --------------
End of period (including undistributed net investment income of
$1,139,270 and $3,063,488, respectively) $ 755,442,912 $ 714,432,451
- -------------------------------------------------------------------- -------------- --------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FEDERATED MAX-CAP FUND
(FORMERLY, MAX-CAP FUND)
FINANCIAL HIGHLIGHTS--INSTITUTIONAL SHARES
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(UNAUDITED) YEAR ENDED OCTOBER 31,
APRIL 30, --------------------------------------------------------------
1996 1995 1994 1993 1992 1991 1990(A)
-------------- ------ ------ ------ ------ ------ -------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $14.74 $12.02 $12.24 $11.64 $11.07 $ 8.60 $10.00
- ---------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ---------------------------------------
Net investment income 0.18 0.38 0.32 0.30 0.32 0.37 0.12
- ---------------------------------------
Net realized and unrealized gain
(loss) on investments and futures
contracts 1.68 2.70 0.10 1.29 0.71 2.46 (1.43)
- --------------------------------------- --------- ----- ----- ----- ----- ----- ------
Total from investment operations 1.86 3.08 0.42 1.59 1.03 2.83 (1.31)
- --------------------------------------- --------- ----- ----- ----- ----- ----- ------
LESS DISTRIBUTIONS
- ---------------------------------------
Distributions from net investment
income (0.22) (0.34) (0.30) (0.30) (0.34) (0.36) (0.09)
- ---------------------------------------
Distributions from net realized gain
on investment transactions and futures
contracts (2.03) (0.02) (0.34) (0.69) (0.12) -- --
- --------------------------------------- --------- ----- ----- ----- ----- ----- ------
Total distributions (2.25) (0.36) (0.64) (0.99) (0.46) (0.36) (0.09)
- --------------------------------------- --------- ----- ----- ----- ----- ----- ------
NET ASSET VALUE, END OF PERIOD $14.35 $14.74 $12.02 $12.24 $11.64 $11.07 $ 8.60
- --------------------------------------- --------- ----- ----- ----- ----- ----- ------
TOTAL RETURN(B) 13.54% 26.00% 3.59% 14.35% 9.51% 33.31% (14.46%)
- ---------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ---------------------------------------
Expenses 0.31%* 0.31% 0.32% 0.31% 0.30% 0.24% 0.00%*
- ---------------------------------------
Net investment income 2.36%* 2.91% 2.70% 2.60% 2.92% 3.74% 5.19%*
- ---------------------------------------
Expense waiver/reimbursement(c) 0.31%* 0.33% 0.07% 0.09% 0.18% 0.45% 0.94%*
- ---------------------------------------
SUPPLEMENTAL DATA
- ---------------------------------------
Net assets, end of period (000
omitted) $716,449 $679,237 $443,815 $407,246 $309,614 $144,528 $25,129
- ---------------------------------------
Average commission rate paid $0.0384 -- -- -- -- -- --
- ---------------------------------------
Portfolio turnover 3% 57% 2% 13% 46% 6% 0%
- ---------------------------------------
</TABLE>
* Computed on an annualized basis.
(a) Reflects operations for the period from July 5, 1990 (date of initial public
offering) to October 31, 1990. For the period from the start of business
June 26, 1990 to July 4, 1990, net investment income per share aggregating
$0.02 per share ($155) was distributed to the Fund's manager. Such
distribution represented the net income of the Fund prior to the initial
public offering of Fund shares which commenced on July 5, 1990.
(b) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(See Notes which are an integral part of the Financial Statements)
FEDERATED MAX-CAP FUND
(FORMERLY, MAX-CAP FUND)
FINANCIAL HIGHLIGHTS--INSTITUTIONAL SERVICE SHARES
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(UNAUDITED) YEAR ENDED OCTOBER 31,
APRIL 30, -------------------------------
1996 1995 1994 1993(A)
-------------- ------ ------ -------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $14.72 $12.02 $12.24 $12.12
- ------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ------------------------------------------------------------
Net investment income 0.15 0.33 0.28(b) 0.07
- ------------------------------------------------------------
Net realized and unrealized gain (loss) on investments and
futures contracts 1.69 2.69 0.11 0.12
- ------------------------------------------------------------ --------- ----- ----- ------
Total from investment operations 1.84 3.02 0.39 0.19
- ------------------------------------------------------------ --------- ----- ----- ------
LESS DISTRIBUTIONS
- ------------------------------------------------------------
Distributions from net investment income (0.19) (0.30) (0.27) (0.07)
- ------------------------------------------------------------
Distributions from net realized gain on investment
transactions and futures contracts (2.03) (0.02) (0.34) --
- ------------------------------------------------------------ --------- ----- ----- ------
Total distributions (2.22) (0.32) (0.61) (0.07)
- ------------------------------------------------------------ --------- ----- ----- ------
NET ASSET VALUE, END OF PERIOD $14.34 $14.72 $12.02 $12.24
- ------------------------------------------------------------ --------- ----- ----- ------
TOTAL RETURN(C) 13.47% 25.52% 3.30% 1.70%
- ------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ------------------------------------------------------------
Expenses 0.61%* 0.61% 0.62% 0.61%*
- ------------------------------------------------------------
Net investment income 2.05%* 2.55% 2.35% 1.52%*
- ------------------------------------------------------------
Expense waiver/reimbursement(d) 0.31%* 0.33% 0.26% 0.09%*
- ------------------------------------------------------------
SUPPLEMENTAL DATA
- ------------------------------------------------------------
Net assets, end of period (000 omitted) $38,994 35,195 $8,617 $2,493
- ------------------------------------------------------------
Average commission rate paid $0.0384 -- -- --
- ------------------------------------------------------------
Portfolio turnover 3% 57% 2% 13%
- ------------------------------------------------------------
</TABLE>
* Computed on an annualized basis.
(a) Reflects operations for the period from August 30, 1993 (date of initial
public investment) to October 31, 1993.
(b) Per share information presented is based upon the monthly average number of
shares outstanding due to large fluctuations in the number of shares
outstanding during the period.
(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.
(See Notes which are an integral part of the Financial Statements)
FEDERATED MAX-CAP FUND
(FORMERLY, MAX-CAP FUND)
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
(1) ORGANIZATION
Federated Index Trust (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 three portfolios. The financial statements
included herein are only those of Federated Max-Cap 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 two classes of shares: Institutional Shares and Institutional
Service Shares. The investment objective of the Fund is to provide investment
results that correspond to the aggregate price and dividend performance of
publicly-traded common stocks, by duplicating the composition of the Index.
Effective December 5, 1994, the Board of Trustees ("Trustees") changed the name
of the Fund from Max-Cap Fund to Federated Max-Cap Fund.
(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.
FEDERATED MAX-CAP FUND
(FORMERLY, MAX-CAP FUND)
- --------------------------------------------------------------------------------
INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS--Interest income and expenses
are accrued daily. Bond premium and discount, if applicable, are amortized
as required by the Internal Revenue Code, as amended (the "Code"). Dividend
income and distributions to shareholders are recorded on the ex-dividend
date.
FEDERAL TAXES--It is the Fund's policy to comply with the provisions of the
Code applicable to regulated investment companies and to distribute to
shareholders each year substantially all of its income. Accordingly, no
provisions for federal tax are necessary.
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.
DEFERRED EXPENSES--The costs incurred by the Fund with respect to
registration of its shares in its first fiscal year, excluding the initial
expense of registering its shares, have been deferred and are being
amortized using the straight-line method over a period of five years from
the Fund's commencement date.
FUTURES CONTRACTS--The Fund purchases stock index futures contracts to
manage cashflows, enhance yield, and to potentially reduce transaction
costs. Upon entering into a stock index futures contract with a broker, the
Fund is required to deposit in a segregated account a specified amount of
cash or U.S. government securities. Futures contracts are valued daily and
unrealized gains or losses are recorded in a "variation margin" account.
Daily, the Fund receives from or pays to the broker a specified amount of
cash based upon changes in the variation margin account. When a contract is
closed, the Fund recognizes a realized gain or loss. For the period ended
April 30, 1996, the Fund had realized gains $10,659,183 on future
contracts.
Futures contracts have market risks, including the risk that the change in
the value of the contract may not correlate with changes in the value of
the underlying securities. At April 30, 1996, the Fund had outstanding
futures contracts as set forth below:
<TABLE>
<CAPTION>
UNREALIZED
CONTRACTS TO APPRECIATION
EXPIRATION DATE DELIVER/RECEIVE POSITION (DEPRECIATION)
---------------- ----------------------------- ----------- ---------------
<S> <C> <C> <C>
June 1996 117 S&P 500 Index Futures Long $934,405
</TABLE>
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.
FEDERATED MAX-CAP FUND
(FORMERLY, MAX-CAP FUND)
- --------------------------------------------------------------------------------
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>
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1996 OCTOBER 31, 1995
---------------------------- ----------------------------
INSTITUTIONAL SHARES SHARES AMOUNT SHARES AMOUNT
- ----------------------------------------- ----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
Shares sold 20,159,294 $ 286,746,745 26,132,335 $ 343,592,917
- -----------------------------------------
Shares issued to shareholders in payment
of distributions declared 4,235,633 57,460,396 420,935 5,512,947
- -----------------------------------------
Shares redeemed (20,549,417) (289,255,112) (17,407,051) (230,818,438)
- ----------------------------------------- ----------- ------------- ----------- -------------
Net change resulting from Institutional
share transactions 3,845,510 $ 54,952,029 9,146,219 $ 118,287,426
- ----------------------------------------- ----------- ------------- ----------- -------------
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1996 OCTOBER 31, 1995
-------------------------- --------------------------
INSTITUTIONAL SERVICE SHARES SHARES AMOUNT SHARES AMOUNT
- --------------------------------------------- ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Shares sold 1,373,917 $ 19,498,237 2,368,216 $ 30,940,785
- ---------------------------------------------
Shares issued to shareholders in payment of
distributions declared 316,883 4,293,548 36,486 490,551
- ---------------------------------------------
Shares redeemed (1,361,655) (19,163,651) (730,897) (9,969,911)
- --------------------------------------------- ---------- ------------ ---------- ------------
Net change resulting from Institutional
Service share transactions 329,145 $ 4,628,134 1,673,805 $ 21,461,425
- --------------------------------------------- ---------- ------------ ---------- ------------
Net change resulting from share
transactions 4,174,655 $ 59,580,163 10,820,024 $139,748,851
- --------------------------------------------- ---------- ------------ ---------- ------------
</TABLE>
(4) MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEE--Federated Management, the Fund's manager, ("Manager"), receives
for its services an annual management fee equal to 0.30% of the Fund's average
daily net assets.The Manager has entered into a sub-management contract with ANB
Investment Management and Trust Company ("Sub-Manager"). The Manager shall pay
the Sub-Manager an investment advisory fee based on the average daily net assets
of the Fund as follows: 0.05% on the first $100 million, 0.02% on the next $100
million, and 0.01% thereafter. The Manager may voluntarily choose to waive a
portion of its fees. The Manager can modify or terminate this voluntary waiver
at any time at its sole discretion.
FEDERATED MAX-CAP FUND
(FORMERLY, MAX-CAP FUND)
- --------------------------------------------------------------------------------
ADMINISTRATIVE FEE--Federated Services Company ("FServ"), under the
Administrative Services Agreement, provides the Fund with administrative
personnel and services. The fee paid to FServ is based on the level of average
aggregate daily net assets of all funds advised by subsidiaries of Federated
Investors for the period. The administrative fee received during the period of
the Administrative Services Agreement shall be at least $125,000 per portfolio
and $30,000 per each additional class of shares.
DISTRIBUTION SERVICES FEE--The Fund has adopted a Distribution Plan (the "Plan")
pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will
compensate Federated Securities Corp. ("FSC"), the principal distributor, from
the net assets of the Fund to finance activities intended to result in the sale
of the Fund's Institutional Service shares. The Plan provides that the Fund may
incur distribution expenses up to 0.30% of average daily net assets of the
Institutional Service shares, annually, to compensate FSC. The distributor may
voluntarily choose to waive any portion of its fee. The distributor can modify
or terminate this voluntary waiver at any time at its sole discretion.
SHAREHOLDER SERVICES FEE--Under the terms of a Shareholder Services Agreement
with Federated Shareholder Services ("FSS"), the Fund will pay FSS up to 0.25%
of average daily net assets of the Fund for the period. The fee paid to FSS is
used to finance certain services for shareholders and to maintain shareholder
accounts. FSS may voluntarily choose to waive any portion of its fee. FSS can
modify or terminate this voluntary waiver at any time at its sole discretion.
TRANSFER AND DIVIDEND DISBURSING AGENT FEES AND EXPENSES--FServ, through its
subsidiary, Federated Shareholder Services Company serves as transfer and
dividend disbursing agent for the Fund. The fee paid to FServ is based on the
size, type, and number of accounts and transactions made by shareholders.
PORTFOLIO ACCOUNTING FEES--FServ maintains the Fund's accounting records for
which it receives a fee. The fee is based on the level of the Fund's average
daily net assets for the period, plus out-of-pocket expenses.
GENERAL--Certain of the Officers and 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, 1996, were as follows:
<TABLE>
<S> <C>
- -------------------------------------------------------------------------------
PURCHASES $66,998,333
- ------------------------------------------------------------------------------- -----------
SALES $18,830,155
- ------------------------------------------------------------------------------- -----------
</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
J. Christopher Donahue J. Christopher Donahue
James E. Dowd Executive Vice President
Lawrence D. Ellis, M.D. Edward C. Gonzales
Edward L. Flaherty, Jr. Executive Vice President
Peter E. Madden John W. McGonigle
Gregor F. Meyer Executive Vice President,
John E. Murray, Jr. Treasurer and Secretary
Wesley W. Posvar Richard B. Fisher
Marjorie P. Smuts Vice President
J. Crilley Kelly
Assistant Secretary
</TABLE>
