PRESIDENT'S MESSAGE
- --------------------------------------------------------------------------------
Dear Shareholder:
I am pleased to present the Semi-Annual Report to Shareholders of Federated
Max-Cap Fund, a portfolio of Federated Index Trust, for the six-month reporting
period from November 1, 1996 through April 30, 1997. The report begins with an
investment review, followed by the fund's portfolio of investments and its
financial statements.
Federated Max-Cap Fund gives you a highly efficient way to pursue the broad
performance of the U.S. stock market. The fund is managed passively to closely
mirror the Standard & Poor's 500 Index (the "S&P 500"), a classic benchmark of
overall stock market performance that includes 500 stocks in industry,
transportation, finance, 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 continued positive environment for stocks, the fund produced a six-month
total return of 14.46%** for Institutional Shares and 14.26%** for Institutional
Service Shares. Contributing to those returns were dividend income distributions
of $0.18 per share and capital gains distributions of $0.24 per share for
Institutional Shares and dividend income distributions of $0.16 per share and
capital gains distributions of $0.24 per share for Institutional Service Shares.
By the end of the reporting period, the fund's total net assets reached $1.18
billion.
Thank you for putting your money to work pursuing the long-term growth potential
of the S&P 500. As always, we invite your comments and suggestions.
Sincerely,
LOGO
Glen R. Johnson
President
June 15, 1997
* The Max-Cap Fund seeks investment results that correspond to the aggregate
price and total return performance of the Standard & Poor's Composite Stock
Price 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 Ratings Group ("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 Ratings Group. Its only relationship to the fund is the
licensing of the use of the Index. This index is unmanaged. Actual
investments may not be made in an index.
** Performance quoted reflects past performance and is not indicative of future
results. Investment return and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than their
original cost.
1
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
The fund's total returns for Institutional Shares and Institutional Service
Shares for the six-month reporting period ended April 30, 1997, were 14.46% and
14.26%, respectively.*
The target index, the Standard & Poor's 500 Index (the "Index"), had a total
return of 14.71% during the reporting 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 climb in the last six months despite
temporary setbacks from interest rate fears in December 1996 and March 1997. In
December, the Federal Reserve Board (the "Fed") Chairman's comment that the U.S.
stock market was fueled by "irrational exuberance" sent the market lower as
investors interpreted the comment as a signal of a likely hike in interest
rates. In March, the Fed raised its target rate for federal funds by a modest
1/4%, less than some analysts expected.
Most investors have shrugged off fears of increasing interest rates for now,
focusing on favorable economic data and strong corporate earnings. Cash flows
into equity mutual funds have remained strong, also supporting the market.
During the last six months, trucking, electronics, and consumer products were
among the strongest performing sectors while manufactured housing, engineering
and construction, and gold were among the worst performing sectors in the Index.
* Performance quoted reflects past performance and is not indicative of future
results. Investment return and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than their
original cost.
FEDERATED MAX-CAP FUND
PORTFOLIO OF INVESTMENTS
APRIL 30, 1997 (UNAUDITED)
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<TABLE>
<CAPTION>
SHARES VALUE
- ----------- -------------------------------------------------------------- --------------
<C> <C> <S> <C>
(A)COMMON STOCKS--96.1%
- ---------------------------------------------------------------------------------
BASIC INDUSTRY--5.8%
--------------------------------------------------------------
7,900 ASARCO, Inc. $ 225,150
--------------------------------------------------------------
20,800 Air Products & Chemicals, Inc. 1,492,400
--------------------------------------------------------------
42,100 Alcan Aluminum, Ltd. 1,426,137
--------------------------------------------------------------
32,292 Allegheny Teledyne, Inc. 859,774
--------------------------------------------------------------
32,400 Aluminum Co. of America 2,263,950
--------------------------------------------------------------
101,427 Archer-Daniels-Midland Co. 1,863,721
--------------------------------------------------------------
19,700 (b) Armco, Inc. 68,950
--------------------------------------------------------------
19,500 Avery Dennison Corp. 716,625
--------------------------------------------------------------
5,600 Ball Corp. 150,500
--------------------------------------------------------------
66,500 Barrick Gold Corp. 1,487,937
--------------------------------------------------------------
41,700 Battle Mountain Gold Co. 239,775
--------------------------------------------------------------
9,800 Bemis Co., Inc. 373,625
--------------------------------------------------------------
20,700 (b) Bethlehem Steel Corp. 170,775
--------------------------------------------------------------
9,000 Boise Cascade Corp. 299,250
--------------------------------------------------------------
17,800 Champion International Corp. 827,700
--------------------------------------------------------------
42,900 Corning, Inc. 2,069,925
--------------------------------------------------------------
23,900 Crown Cork & Seal Co., Inc. 1,308,525
--------------------------------------------------------------
17,250 Cyprus Amax Minerals 385,969
--------------------------------------------------------------
45,600 Dow Chemical Co. 3,870,300
--------------------------------------------------------------
104,400 Du Pont (E.I.) de Nemours & Co. 11,079,450
--------------------------------------------------------------
14,525 Eastman Chemical Co. 740,775
--------------------------------------------------------------
26,000 Echo Bay Mines Ltd. 141,375
--------------------------------------------------------------
11,840 Ecolab, Inc. 482,480
--------------------------------------------------------------
26,762 Engelhard Corp. 562,002
--------------------------------------------------------------
36,300 Freeport-McMoRan Copper & Gold, Inc., Class B 1,057,237
--------------------------------------------------------------
</TABLE>
FEDERATED MAX-CAP FUND
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<TABLE>
<CAPTION>
SHARES VALUE
- ----------- -------------------------------------------------------------- --------------
<C> <C> <S> <C>
(A)COMMON STOCKS--CONTINUED
- ---------------------------------------------------------------------------------
BASIC INDUSTRY--CONTINUED
--------------------------------------------------------------
17,000 Georgia-Pacific Corp. $ 1,326,000
--------------------------------------------------------------
10,000 Goodrich (B.F.) Co. 398,750
--------------------------------------------------------------
18,100 (b) Grace (W.R.) & Co. 941,200
--------------------------------------------------------------
11,800 Great Lakes Chemical Corp. 500,025
--------------------------------------------------------------
19,800 Hercules, Inc. 779,625
--------------------------------------------------------------
27,200 Homestake Mining Co. 360,400
--------------------------------------------------------------
31,400 Inco Ltd. 1,004,800
--------------------------------------------------------------
9,000 Inland Steel Industries, Inc. 204,750
--------------------------------------------------------------
55,776 International Paper Co. 2,356,536
--------------------------------------------------------------
15,800 James River Corp. of Virginia 472,025
--------------------------------------------------------------
20,200 Louisiana-Pacific Corp. 376,225
--------------------------------------------------------------
9,800 Mead Corp. 550,025
--------------------------------------------------------------
8,000 Millipore Corp. 302,000
--------------------------------------------------------------
109,000 Monsanto Co. 4,659,750
--------------------------------------------------------------
26,500 (b) Morton International, Inc. 1,109,688
--------------------------------------------------------------
12,600 Nalco Chemical Co. 453,600
--------------------------------------------------------------
18,511 Newmont Mining Corp. 640,943
--------------------------------------------------------------
16,300 Nucor Corporation 810,925
--------------------------------------------------------------
9,600 (b) Owens Corning 388,800
--------------------------------------------------------------
34,700 PPG Industries, Inc. 1,886,813
--------------------------------------------------------------
21,533 Pall Corp. 497,951
--------------------------------------------------------------
12,100 Phelps Dodge Corp. 928,675
--------------------------------------------------------------
15,400 Pioneer Hi-Bred International 1,087,625
--------------------------------------------------------------
44,500 Placer Dome, Inc. 728,688
--------------------------------------------------------------
5,400 Potlatch Corp. 221,400
--------------------------------------------------------------
29,000 Praxair, Inc. 1,497,125
--------------------------------------------------------------
11,800 Reynolds Metals Co. 800,925
--------------------------------------------------------------
</TABLE>
FEDERATED MAX-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- -------------------------------------------------------------- --------------
<C> <C> <S> <C>
(A)COMMON STOCKS--CONTINUED
- ---------------------------------------------------------------------------------
BASIC INDUSTRY--CONTINUED
--------------------------------------------------------------
12,000 Rohm & Haas Co. $ 999,000
--------------------------------------------------------------
24,435 Santa Fe Pacific Gold 360,416
--------------------------------------------------------------
31,800 Sherwin-Williams Co. 961,950
--------------------------------------------------------------
18,200 Sigma-Aldrich Corp. 546,000
--------------------------------------------------------------
3,700 Springs Industries, Inc., Class A 172,975
--------------------------------------------------------------
18,508 Stone Container Corp. 187,394
--------------------------------------------------------------
10,300 Temple-Inland, Inc. 571,650
--------------------------------------------------------------
11,500 Tupperware Corp. 382,375
--------------------------------------------------------------
15,720 USX-U.S. Steel Group, Inc. 459,810
--------------------------------------------------------------
12,800 Union Camp Corp. 622,400
--------------------------------------------------------------
24,100 Union Carbide Corp. 1,201,988
--------------------------------------------------------------
18,950 Westvaco Corp. 530,600
--------------------------------------------------------------
36,900 Weyerhaeuser Co. 1,688,175
--------------------------------------------------------------
10,300 Willamette Industries, Inc. 656,625
--------------------------------------------------------------
16,850 Worthington Industries, Inc. 318,044
-------------------------------------------------------------- --------------
Total 69,108,978
-------------------------------------------------------------- --------------
CONSUMER DURABLES--3.4%
--------------------------------------------------------------
16,300 Black & Decker Corp. 546,050
--------------------------------------------------------------
5,400 Briggs & Stratton Corp. 265,275
--------------------------------------------------------------
18,300 Brunswick Corp. 516,975
--------------------------------------------------------------
5,300 Centex Corp. 190,800
--------------------------------------------------------------
135,568 Chrysler Corp. 4,067,040
--------------------------------------------------------------
15,600 Cooper Tire & Rubber Co. 343,200
--------------------------------------------------------------
18,900 Dana Corp. 602,437
--------------------------------------------------------------
62,600 Eastman Kodak Co. 5,227,100
--------------------------------------------------------------
14,400 Eaton Corp. 1,078,200
--------------------------------------------------------------
11,400 Echlin, Inc. 371,925
--------------------------------------------------------------
</TABLE>
FEDERATED MAX-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- -------------------------------------------------------------- --------------
<C> <C> <S> <C>
(A)COMMON STOCKS--CONTINUED
- ---------------------------------------------------------------------------------
CONSUMER DURABLES--CONTINUED
--------------------------------------------------------------
6,500 Fleetwood Enterprises, Inc. $ 171,437
--------------------------------------------------------------
219,900 Ford Motor Co. 7,641,525
--------------------------------------------------------------
140,600 General Motors Corp. 8,137,225
--------------------------------------------------------------
33,750 Genuine Parts Co. 1,092,656
--------------------------------------------------------------
28,900 Goodyear Tire & Rubber Co. 1,520,863
--------------------------------------------------------------
24,000 Hasbro, Inc. 600,000
--------------------------------------------------------------
7,253 Jostens, Inc. 173,165
--------------------------------------------------------------
7,300 Kaufman & Broad Homes Corp. 101,288
--------------------------------------------------------------
50,825 Mattel, Inc. 1,416,747
--------------------------------------------------------------
18,900 Maytag Corp. 432,338
--------------------------------------------------------------
29,600 Newell Co. 1,036,000
--------------------------------------------------------------
8,400 Polaroid Corp. 407,400
--------------------------------------------------------------
4,400 Pulte Corp. 125,400
--------------------------------------------------------------
27,900 Rubbermaid, Inc. 669,600
--------------------------------------------------------------
11,300 Snap-On Tools Corp. 435,050
--------------------------------------------------------------
16,500 Stanley Works 641,438
--------------------------------------------------------------
23,900 TRW, Inc. 1,245,788
--------------------------------------------------------------
13,800 Whirlpool Corp. 645,150
-------------------------------------------------------------- --------------
Total 39,702,072
-------------------------------------------------------------- --------------
CONSUMER NON-DURABLES--12.0%
--------------------------------------------------------------
10,200 Alberto-Culver Co., Class B 297,075
--------------------------------------------------------------
31,800 American Brands, Inc. 1,709,250
--------------------------------------------------------------
13,900 American Greetings Corp., Class A 444,800
--------------------------------------------------------------
92,200 Anheuser-Busch Cos., Inc. 3,953,075
--------------------------------------------------------------
24,700 Avon Products, Inc. 1,522,137
--------------------------------------------------------------
12,900 Brown-Forman Corp., Class B 651,450
--------------------------------------------------------------
26,900 CPC International, Inc. 2,222,612
--------------------------------------------------------------
</TABLE>
FEDERATED MAX-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- -------------------------------------------------------------- --------------
<C> <C> <S> <C>
(A)COMMON STOCKS--CONTINUED
- ---------------------------------------------------------------------------------
CONSUMER NON-DURABLES--CONTINUED
--------------------------------------------------------------
85,600 Campbell Soup Co. $ 4,376,300
--------------------------------------------------------------
9,600 Clorox Co. 1,222,800
--------------------------------------------------------------
463,500 Coca-Cola Co. 29,490,187
--------------------------------------------------------------
27,300 Colgate-Palmolive Co. 3,030,300
--------------------------------------------------------------
45,300 ConAgra, Inc. 2,610,412
--------------------------------------------------------------
7,100 Coors Adolph Co., Class B 162,412
--------------------------------------------------------------
14,200 (b) Fruit of the Loom, Inc., Class A 511,200
--------------------------------------------------------------
29,500 General Mills, Inc. 1,829,000
--------------------------------------------------------------
103,300 Gillette Co. 8,780,500
--------------------------------------------------------------
68,700 Heinz (H.J.) Co. 2,851,050
--------------------------------------------------------------
28,600 Hershey Foods Corp. 1,551,550
--------------------------------------------------------------
20,600 International Flavors & Fragrances, Inc. 867,775
--------------------------------------------------------------
39,400 Kellogg Co. 2,748,150
--------------------------------------------------------------
104,848 Kimberly-Clark Corp. 5,373,460
--------------------------------------------------------------
13,600 Liz Claiborne, Inc. 615,400
--------------------------------------------------------------
53,400 Nike, Inc., Class B 3,003,750
--------------------------------------------------------------
291,200 PepsiCo, Inc. 10,155,600
--------------------------------------------------------------
456,600 Philip Morris Cos., Inc. 17,978,625
--------------------------------------------------------------
127,500 Procter & Gamble Co. 16,033,125
--------------------------------------------------------------
25,100 Quaker Oats Co. 1,004,000
--------------------------------------------------------------
19,600 Ralston Purina Co. 1,614,550
--------------------------------------------------------------
10,400 Reebok International Ltd. 397,800
--------------------------------------------------------------
7,200 Russell Corp. 199,800
--------------------------------------------------------------
90,300 Sara Lee Corp. 3,792,600
--------------------------------------------------------------
69,700 Seagram Co. Ltd. 2,666,025
--------------------------------------------------------------
9,200 Stride Rite Corp. 126,500
--------------------------------------------------------------
34,900 UST, Inc. 911,763
--------------------------------------------------------------
</TABLE>
FEDERATED MAX-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- -------------------------------------------------------------- --------------
<C> <C> <S> <C>
(A)COMMON STOCKS--CONTINUED
- ---------------------------------------------------------------------------------
CONSUMER NON-DURABLES--CONTINUED
--------------------------------------------------------------
29,800 Unilever N.V., ADR $ 5,848,250
--------------------------------------------------------------
11,800 V.F. Corp. 851,075
--------------------------------------------------------------
21,600 Wrigley (Wm.), Jr. Co. 1,258,200
-------------------------------------------------------------- --------------
Total 142,662,558
-------------------------------------------------------------- --------------
ENERGY MINERALS--8.5%
--------------------------------------------------------------
17,300 Amerada-Hess Corp. 841,212
--------------------------------------------------------------
92,500 Amoco Corp. 7,735,312
--------------------------------------------------------------
11,900 Ashland, Inc. 531,037
--------------------------------------------------------------
29,900 Atlantic Richfield Co. 4,070,137
--------------------------------------------------------------
26,900 Baker Hughes, Inc. 928,050
--------------------------------------------------------------
23,300 Burlington Resources, Inc. 987,337
--------------------------------------------------------------
121,400 Chevron Corp. 8,315,900
--------------------------------------------------------------
461,800 Exxon Corp. 26,149,425
--------------------------------------------------------------
21,500 Halliburton Co. 1,518,438
--------------------------------------------------------------
4,600 Helmerich & Payne, Inc. 219,650
--------------------------------------------------------------
9,100 Kerr-McGee Corp. 549,413
--------------------------------------------------------------
6,300 Louisiana Land & Exploration Co. 315,000
--------------------------------------------------------------
73,300 Mobil Corp. 9,529,000
--------------------------------------------------------------
60,200 Occidental Petroleum Corp. 1,331,925
--------------------------------------------------------------
19,400 (b) Oryx Energy Co. 388,000
--------------------------------------------------------------
8,700 Pennzoil Co. 428,475
--------------------------------------------------------------
48,900 Phillips Petroleum Co. 1,925,438
--------------------------------------------------------------
15,800 (b) Rowan Companies, Inc. 284,400
--------------------------------------------------------------
99,700 Royal Dutch Petroleum Co., ADR 17,970,925
--------------------------------------------------------------
16,812 (b) Santa Fe Energy Resource, Inc. 237,470
--------------------------------------------------------------
45,600 Schlumberger Ltd. 5,050,200
--------------------------------------------------------------
16,337 Sun Co., Inc. 447,225
--------------------------------------------------------------
</TABLE>
FEDERATED MAX-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- -------------------------------------------------------------- --------------
<C> <C> <S> <C>
(A)COMMON STOCKS--CONTINUED
- ---------------------------------------------------------------------------------
ENERGY MINERALS--CONTINUED
--------------------------------------------------------------
49,100 Texaco, Inc. $ 5,180,050
--------------------------------------------------------------
53,500 USX Corp. 1,477,938
--------------------------------------------------------------
46,594 Union Pacific Resources Group, Inc. 1,263,862
--------------------------------------------------------------
46,200 Unocal Corp. 1,761,375
--------------------------------------------------------------
9,900 (b) Western Atlas, Inc. 613,800
-------------------------------------------------------------- --------------
Total 100,050,994
-------------------------------------------------------------- --------------
FINANCE--14.1%
--------------------------------------------------------------
20,100 AON Corp. 1,336,650
--------------------------------------------------------------
19,800 Ahmanson (H.F.) & Co. 754,875
--------------------------------------------------------------
82,805 Allstate Corp. 5,423,727
--------------------------------------------------------------
88,300 American Express Co. 5,816,762
--------------------------------------------------------------
38,000 American General Corp. 1,657,750
--------------------------------------------------------------
87,293 American International Group, Inc. 11,217,150
--------------------------------------------------------------
80,827 Banc One Corp. 3,425,044
--------------------------------------------------------------
71,900 Bank of New York Co., Inc. 2,840,050
--------------------------------------------------------------
66,876 BankAmerica Corp. 7,816,132
--------------------------------------------------------------
28,300 BankBoston Corp. 2,058,825
--------------------------------------------------------------
15,000 Bankers Trust New York Corp. 1,220,625
--------------------------------------------------------------
35,800 Barnett Banks, Inc. 1,749,725
--------------------------------------------------------------
10,000 Beneficial Corp. 640,000
--------------------------------------------------------------
14,100 CIGNA Corp. 2,120,287
--------------------------------------------------------------
81,170 Chase Manhattan Corp. 7,518,371
--------------------------------------------------------------
32,400 Chubb Corp. 1,871,100
--------------------------------------------------------------
89,200 Citicorp 10,046,150
--------------------------------------------------------------
21,300 Comerica, Inc. 1,246,050
--------------------------------------------------------------
27,100 Conseco, Inc. 1,121,262
--------------------------------------------------------------
41,400 Corestates Financial Corp. 2,095,875
--------------------------------------------------------------
</TABLE>
FEDERATED MAX-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- -------------------------------------------------------------- --------------
<C> <C> <S> <C>
(A)COMMON STOCKS--CONTINUED
- ---------------------------------------------------------------------------------
FINANCE--CONTINUED
--------------------------------------------------------------
61,042 Dean Witter, Discover & Co. $ 2,334,856
--------------------------------------------------------------
133,300 Federal Home Loan Mortgage Corp. 4,248,937
--------------------------------------------------------------
203,100 Federal National Mortgage Association 8,352,487
--------------------------------------------------------------
19,600 Fifth Third Bancorp 1,462,650
--------------------------------------------------------------
26,100 First Bank System, Inc. 2,003,175
--------------------------------------------------------------
51,355 First Union Corp. 4,313,820
--------------------------------------------------------------
48,810 Fleet Financial Group, Inc. 2,977,410
--------------------------------------------------------------
14,700 General RE Corp. 2,458,575
--------------------------------------------------------------
10,800 Golden West Financial Corp. 702,000
--------------------------------------------------------------
25,500 Great Western Financial Corp. 1,071,000
--------------------------------------------------------------
25,500 Green Tree Financial Corp. 755,438
--------------------------------------------------------------
18,100 Household International, Inc. 1,592,800
--------------------------------------------------------------
21,900 ITT Hartford Group, Inc. 1,631,550
--------------------------------------------------------------
34,700 J.P. Morgan & Co., Inc. 3,535,063
--------------------------------------------------------------
13,225 Jefferson-Pilot Corp. 763,744
--------------------------------------------------------------
42,700 KeyCorp 2,225,738
--------------------------------------------------------------
19,400 Lincoln National Corp. 1,086,400
--------------------------------------------------------------
8,000 MBIA Insurance Corporation 779,000
--------------------------------------------------------------
61,012 MBNA Corp. 2,013,396
--------------------------------------------------------------
11,000 MGIC Investment Corp. 893,750
--------------------------------------------------------------
13,400 Marsh & McLennan Cos., Inc. 1,614,700
--------------------------------------------------------------
24,200 Mellon Bank Corp. 2,011,625
--------------------------------------------------------------
31,300 Merrill Lynch & Co., Inc. 2,981,325
--------------------------------------------------------------
28,200 Morgan Stanley Group, Inc. 1,780,125
--------------------------------------------------------------
41,300 National City Corp. 2,013,375
--------------------------------------------------------------
144,640 NationsBank Corp. 8,732,640
--------------------------------------------------------------
68,800 Norwest Corp. 3,431,400
--------------------------------------------------------------
</TABLE>
FEDERATED MAX-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- -------------------------------------------------------------- --------------
<C> <C> <S> <C>
(A)COMMON STOCKS--CONTINUED
- ---------------------------------------------------------------------------------
FINANCE--CONTINUED
--------------------------------------------------------------
63,300 PNC Financial Corp. $ 2,603,213
--------------------------------------------------------------
17,300 Providian Corp. 999,075
--------------------------------------------------------------
10,300 Republic New York Corp. 943,738
--------------------------------------------------------------
15,100 Ryder Systems, Inc. 469,988
--------------------------------------------------------------
23,400 SAFECO Corp. 936,000
--------------------------------------------------------------
15,600 St. Paul Cos., Inc. 1,045,200
--------------------------------------------------------------
41,500 SunTrust Banks, Inc. 2,106,125
--------------------------------------------------------------
13,350 Torchmark Corp. 829,369
--------------------------------------------------------------
12,400 Transamerica Corp. 1,050,900
--------------------------------------------------------------
119,189 Travelers Group, Inc. 6,600,091
--------------------------------------------------------------
28,650 U.S. Bancorp. 1,636,631
--------------------------------------------------------------
13,600 UNUM Corp. 1,047,200
--------------------------------------------------------------
21,800 USF&G Corp. 436,000
--------------------------------------------------------------
6,300 USLIFE Corp. 305,550
--------------------------------------------------------------
30,900 Wachovia Corp. 1,807,650
--------------------------------------------------------------
17,466 Wells Fargo & Co. 4,659,056
-------------------------------------------------------------- --------------
Total 167,219,175
-------------------------------------------------------------- --------------
HEALTH CARE--10.6%
--------------------------------------------------------------
145,000 Abbott Laboratories 8,845,000
--------------------------------------------------------------
27,955 Aetna Services Inc. 2,547,399
--------------------------------------------------------------
268 (b) Allergan Ligand Retinoid Therapeutics, Inc. 7,236
--------------------------------------------------------------
12,000 Allergan, Inc. 321,000
--------------------------------------------------------------
15,700 (b) Alza Corp. 459,225
--------------------------------------------------------------
118,400 American Home Products Corp. 7,844,000
--------------------------------------------------------------
49,200 (b) Amgen, Inc. 2,896,650
--------------------------------------------------------------
10,600 Bard (C.R.), Inc. 336,550
--------------------------------------------------------------
10,500 Bausch & Lomb, Inc. 423,937
--------------------------------------------------------------
</TABLE>
FEDERATED MAX-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- -------------------------------------------------------------- --------------
<C> <C> <S> <C>
(A)COMMON STOCKS--CONTINUED
- ---------------------------------------------------------------------------------
HEALTH CARE--CONTINUED
--------------------------------------------------------------
50,700 Baxter International, Inc. $ 2,427,262
--------------------------------------------------------------
23,200 Becton, Dickinson & Co. 1,067,200
--------------------------------------------------------------
18,500 (b) Beverly Enterprises, Inc. 268,250
--------------------------------------------------------------
21,500 (b) Biomet, Inc. 326,531
--------------------------------------------------------------
32,900 (b) Boston Scientific Corp. 1,587,425
--------------------------------------------------------------
186,400 Bristol-Myers Squibb Co. 12,209,200
--------------------------------------------------------------
124,807 Columbia/HCA Healthcare Corp. 4,368,245
--------------------------------------------------------------
13,700 Guidant Corp. 935,025
--------------------------------------------------------------
57,600 (b) HEALTHSOUTH Rehabilitation 1,137,600
--------------------------------------------------------------
30,200 (b) Humana, Inc. 656,850
--------------------------------------------------------------
247,800 Johnson & Johnson 15,177,750
--------------------------------------------------------------
101,800 Lilly (Eli) & Co. 8,945,675
--------------------------------------------------------------
11,650 Manor Care, Inc. 272,319
--------------------------------------------------------------
44,500 Medtronic, Inc. 3,081,625
--------------------------------------------------------------
226,000 Merck & Co., Inc. 20,453,000
--------------------------------------------------------------
119,400 Pfizer, Inc. 11,462,400
--------------------------------------------------------------
94,555 Pharmacia & Upjohn, Inc. 2,801,192
--------------------------------------------------------------
68,700 Schering Plough Corp. 5,496,000
--------------------------------------------------------------
4,400 Shared Medical Systems Corp. 185,350
--------------------------------------------------------------
15,050 (b) St. Jude Medical, Inc. 489,125
--------------------------------------------------------------
40,700 (b) Tenet Healthcare Corp. 1,058,200
--------------------------------------------------------------
11,600 U.S. Surgical Corp. 397,300
--------------------------------------------------------------
34,200 United Healthcare Corp. 1,662,975
--------------------------------------------------------------
50,500 Warner-Lambert Co. 4,949,000
-------------------------------------------------------------- --------------
Total 125,096,496
-------------------------------------------------------------- --------------
</TABLE>
FEDERATED MAX-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- -------------------------------------------------------------- --------------
<C> <C> <S> <C>
(A)COMMON STOCKS--CONTINUED
- ---------------------------------------------------------------------------------
PRODUCER MANUFACTURING--7.3%
--------------------------------------------------------------
5,300 Aeroquip-Vickers, Inc. $ 213,987
--------------------------------------------------------------
52,600 Allied-Signal, Inc. 3,800,350
--------------------------------------------------------------
6,900 Armstrong World Industries, Inc. 453,675
--------------------------------------------------------------
13,500 Case Corp. 747,562
--------------------------------------------------------------
35,800 Caterpillar, Inc. 3,186,200
--------------------------------------------------------------
7,400 Cincinnati Milacron, Inc. 149,850
--------------------------------------------------------------
20,100 Cooper Industries, Inc. 924,600
--------------------------------------------------------------
8,150 Crane Co. 304,606
--------------------------------------------------------------
7,400 Cummins Engine Co., Inc. 415,325
--------------------------------------------------------------
48,000 Deere & Co. 2,208,000
--------------------------------------------------------------
21,200 Dover Corp. 1,123,600
--------------------------------------------------------------
33,200 Dresser Industries, Inc. 991,850
--------------------------------------------------------------
83,400 Emerson Electric Co. 4,232,550
--------------------------------------------------------------
7,000 (b) FMC Corp. 469,875
--------------------------------------------------------------
307,000 General Electric Co. 34,038,625
--------------------------------------------------------------
9,200 General Signal Corp. 361,100
--------------------------------------------------------------
6,400 Giddings & Lewis, Inc. 129,600
--------------------------------------------------------------
8,778 Harnischfeger Industries, Inc. 365,384
--------------------------------------------------------------
23,500 Honeywell, Inc. 1,659,688
--------------------------------------------------------------
21,900 (b) ITT Industries, Inc. 552,975
--------------------------------------------------------------
22,700 Illinois Tool Works, Inc. 2,074,213
--------------------------------------------------------------
20,400 Ingersoll-Rand Co. 1,002,150
--------------------------------------------------------------
15,400 Johnson Controls, Inc. 590,975
--------------------------------------------------------------
21,400 Loews Corp. 1,966,125
--------------------------------------------------------------
29,900 Masco Corp. 1,128,725
--------------------------------------------------------------
10,200 McDermott International, Inc. 188,700
--------------------------------------------------------------
78,000 Minnesota Mining & Manufacturing Co. 6,786,000
--------------------------------------------------------------
</TABLE>
FEDERATED MAX-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- -------------------------------------------------------------- --------------
<C> <C> <S> <C>
(A)COMMON STOCKS--CONTINUED
- ---------------------------------------------------------------------------------
PRODUCER MANUFACTURING--CONTINUED
--------------------------------------------------------------
1,548 NACCO Industries, Inc., Class A $ 71,595
--------------------------------------------------------------
8,800 National Service Industries, Inc. 370,700
--------------------------------------------------------------
13,970 (b) Navistar International Corp. 157,163
--------------------------------------------------------------
7,240 PACCAR, Inc. 505,895
--------------------------------------------------------------
13,800 Parker-Hannifin Corp. 686,550
--------------------------------------------------------------
27,700 Pitney Bowes, Inc. 1,772,800
--------------------------------------------------------------
8,300 Raychem Corp. 535,350
--------------------------------------------------------------
31,800 Tenneco, Inc. 1,268,025
--------------------------------------------------------------
15,100 Textron, Inc. 1,681,763
--------------------------------------------------------------
27,800 (b) Thermo Electron Corp. 959,100
--------------------------------------------------------------
9,900 Thomas & Betts Corp. 449,213
--------------------------------------------------------------
5,800 Timken Co. 337,125
--------------------------------------------------------------
28,400 Tyco International, Ltd. 1,732,400
--------------------------------------------------------------
116,700 Westinghouse Electric Corp. 1,983,900
--------------------------------------------------------------
19,500 Whitman Corp. 450,938
--------------------------------------------------------------
60,400 Xerox Corp. 3,714,600
-------------------------------------------------------------- --------------
Total 86,743,407
-------------------------------------------------------------- --------------
RETAIL TRADE--4.3%
--------------------------------------------------------------
46,900 Albertsons, Inc. 1,547,700
--------------------------------------------------------------
27,100 American Stores Co. 1,233,050
--------------------------------------------------------------
27,900 (b) AutoZone, Inc. 683,550
--------------------------------------------------------------
19,600 CVS Corp. 972,650
--------------------------------------------------------------
19,300 Charming Shoppes, Inc. 113,991
--------------------------------------------------------------
18,300 Circuit City Stores, Inc. 725,137
--------------------------------------------------------------
36,450 (b) Costco Cos., Inc. 1,052,494
--------------------------------------------------------------
40,200 Dayton-Hudson Corp. 1,809,000
--------------------------------------------------------------
21,100 Dillard Department Stores, Inc., Class A 651,462
--------------------------------------------------------------
</TABLE>
FEDERATED MAX-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- -------------------------------------------------------------- --------------
<C> <C> <S> <C>
(A)COMMON STOCKS--CONTINUED
- ---------------------------------------------------------------------------------
RETAIL TRADE--CONTINUED
--------------------------------------------------------------
38,600 (b) Federated Department Stores, Inc. $ 1,312,400
--------------------------------------------------------------
53,300 Gap (The), Inc. 1,698,937
--------------------------------------------------------------
11,100 Giant Foods, Inc., Class A 357,975
--------------------------------------------------------------
7,200 Great Atlantic & Pacific Tea Co., Inc. 179,100
--------------------------------------------------------------
13,500 Harcourt General, Inc. 624,375
--------------------------------------------------------------
89,100 Home Depot, Inc. 5,167,800
--------------------------------------------------------------
90,400 K Mart Corp. 1,231,700
--------------------------------------------------------------
46,800 (b) Kroger Co., Inc. 1,287,000
--------------------------------------------------------------
50,864 Limited, Inc. 921,910
--------------------------------------------------------------
7,500 Longs Drug Stores Corp. 189,375
--------------------------------------------------------------
32,000 Lowe's Cos., Inc. 1,216,000
--------------------------------------------------------------
46,500 May Department Stores Co. 2,150,625
--------------------------------------------------------------
6,900 Mercantile Stores Co., Inc. 339,825
--------------------------------------------------------------
15,200 Nordstrom, Inc. 596,600
--------------------------------------------------------------
42,000 Penney (J.C.) Co., Inc. 2,005,500
--------------------------------------------------------------
11,500 Pep Boys-Manny Moe & Jack 375,188
--------------------------------------------------------------
15,600 Rite Aid Corp. 717,600
--------------------------------------------------------------
72,800 Sears, Roebuck & Co. 3,494,400
--------------------------------------------------------------
13,600 TJX Cos., Inc. 642,600
--------------------------------------------------------------
11,565 Tandy Corp. 605,717
--------------------------------------------------------------
50,900 (b) Toys "R" Us, Inc. 1,450,650
--------------------------------------------------------------
426,500 Wal-Mart Stores, Inc. 12,048,625
--------------------------------------------------------------
45,800 Walgreen Co. 2,106,800
--------------------------------------------------------------
28,200 Winn-Dixie Stores, Inc. 979,950
--------------------------------------------------------------
24,700 (b) Woolworth (F.W.) Co. 531,050
-------------------------------------------------------------- --------------
Total 51,020,736
-------------------------------------------------------------- --------------
</TABLE>
FEDERATED MAX-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- -------------------------------------------------------------- --------------
<C> <C> <S> <C>
(A)COMMON STOCKS--CONTINUED
- ---------------------------------------------------------------------------------
SERVICES--4.8%
--------------------------------------------------------------
19,200 Block (H&R), Inc. $ 619,200
--------------------------------------------------------------
39,600 Browning-Ferris Industries, Inc. 1,123,650
--------------------------------------------------------------
69,075 (b) CUC International, Inc. 1,459,209
--------------------------------------------------------------
31,700 (b) Cognizant Corp. 1,034,212
--------------------------------------------------------------
29,300 Darden Restaurants, Inc. 227,075
--------------------------------------------------------------
15,400 Deluxe Corp. 471,625
--------------------------------------------------------------
126,200 Disney (Walt) Co. 10,348,400
--------------------------------------------------------------
28,400 Donnelley (R.R.) & Sons Co. 972,700
--------------------------------------------------------------
18,000 Dow Jones & Co. 729,000
--------------------------------------------------------------
31,700 Dun & Bradstreet Corp. 780,612
--------------------------------------------------------------
7,100 Fleming Cos., Inc. 115,375
--------------------------------------------------------------
15,500 Fluor Corp. 852,500
--------------------------------------------------------------
7,600 Foster Wheeler Corp. 293,550
--------------------------------------------------------------
26,300 Gannett Co., Inc. 2,294,675
--------------------------------------------------------------
9,500 Grainger (W.W.), Inc. 716,063
--------------------------------------------------------------
23,100 (b) HFS, Inc. 1,368,675
--------------------------------------------------------------
5,700 Harland (John H.) Co. 117,563
--------------------------------------------------------------
19,150 (b) Harrah's Entertainment, Inc. 306,400
--------------------------------------------------------------
45,800 Hilton Hotels Corp. 1,236,600
--------------------------------------------------------------
21,700 (b) ITT Corp. 1,285,725
--------------------------------------------------------------
24,300 Ikon Office Solutions, Inc. 653,063
--------------------------------------------------------------
15,200 Interpublic Group Cos., Inc. 860,700
--------------------------------------------------------------
7,050 (b) King World Productions, Inc. 257,325
--------------------------------------------------------------
17,700 Knight-Ridder, Inc. 688,088
--------------------------------------------------------------
58,300 Laidlaw, Inc., Class B 794,338
--------------------------------------------------------------
23,900 Marriott Corp. 1,320,475
--------------------------------------------------------------
130,100 McDonald's Corp. 6,976,613
--------------------------------------------------------------
</TABLE>
FEDERATED MAX-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- -------------------------------------------------------------- --------------
<C> <C> <S> <C>
(A)COMMON STOCKS--CONTINUED
- ---------------------------------------------------------------------------------
SERVICES--CONTINUED
--------------------------------------------------------------
18,500 McGraw-Hill Cos., Inc. $ 941,188
--------------------------------------------------------------
10,200 Meredith Corp. 239,700
--------------------------------------------------------------
18,600 Moore Corp. Ltd. 374,325
--------------------------------------------------------------
18,200 New York Times Co., Class A 787,150
--------------------------------------------------------------
10,850 Safety-Kleen Corp. 161,394
--------------------------------------------------------------
43,800 Service Corp. International 1,500,150
--------------------------------------------------------------
12,600 Super Valu Stores, Inc. 385,875
--------------------------------------------------------------
33,800 Sysco Corp. 1,199,900
--------------------------------------------------------------
106,240 Time Warner, Inc. 4,780,800
--------------------------------------------------------------
19,200 Times Mirror Co., Class A 1,060,800
--------------------------------------------------------------
22,800 Tribune Co. 1,000,350
--------------------------------------------------------------
116,100 (b) U.S. West Media Group 2,002,725
--------------------------------------------------------------
66,268 (b) Viacom, Inc., Class B 1,772,669
--------------------------------------------------------------
91,200 WMX Technologies, Inc. 2,679,000
--------------------------------------------------------------
24,000 Wendy's International, Inc. 495,000
-------------------------------------------------------------- --------------
Total 57,284,437
-------------------------------------------------------------- --------------
TECHNOLOGY--14.5%
--------------------------------------------------------------
31,500 (b) 3Com Corp. 913,500
--------------------------------------------------------------
40,880 AMP, Inc. 1,466,570
--------------------------------------------------------------
25,100 (b) Advanced Micro Devices, Inc. 1,066,750
--------------------------------------------------------------
22,500 (b) Amdahl Corp. 192,656
--------------------------------------------------------------
16,762 (b) Andrew Corp. 414,859
--------------------------------------------------------------
23,200 (b) Apple Computer, Inc. 394,400
--------------------------------------------------------------
33,400 (b) Applied Materials, Inc. 1,832,825
--------------------------------------------------------------
8,500 Autodesk, Inc. 301,750
--------------------------------------------------------------
53,900 Automatic Data Processing, Inc. 2,438,975
--------------------------------------------------------------
35,100 (b) Bay Networks, Inc. 623,025
--------------------------------------------------------------
</TABLE>
FEDERATED MAX-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- -------------------------------------------------------------- --------------
<C> <C> <S> <C>
(A)COMMON STOCKS--CONTINUED
- ---------------------------------------------------------------------------------
TECHNOLOGY--CONTINUED
--------------------------------------------------------------
66,354 Boeing Co. $ 6,544,163
--------------------------------------------------------------
28,200 (b) Cabletron Systems, Inc. 972,900
--------------------------------------------------------------
12,800 (b) Ceridian Corp. 427,200
--------------------------------------------------------------
120,500 (b) Cisco Systems, Inc. 6,235,875
--------------------------------------------------------------
50,200 (b) Compaq Computer Corp. 4,285,825
--------------------------------------------------------------
67,775 Computer Associates International, Inc. 3,524,300
--------------------------------------------------------------
13,900 (b) Computer Sciences Corp. 868,750
--------------------------------------------------------------
21,700 (b) DSC Communications Corp. 442,137
--------------------------------------------------------------
7,300 (b) Data General Corp. 136,875
--------------------------------------------------------------
33,400 (b) Dell Computer Corp. 2,795,162
--------------------------------------------------------------
28,900 (b) Digital Equipment Corp. 863,387
--------------------------------------------------------------
8,800 EG & G, Inc. 166,100
--------------------------------------------------------------
43,100 (b) EMC Corp. Mass 1,567,762
--------------------------------------------------------------
83,300 First Data Corp., Class 2,873,850
--------------------------------------------------------------
11,620 General Dynamics Corp. 827,925
--------------------------------------------------------------
25,400 General Instrument Corp. 593,725
--------------------------------------------------------------
7,300 Harris Corp. 624,150
--------------------------------------------------------------
190,100 Hewlett-Packard Co. 9,980,250
--------------------------------------------------------------
152,900 Intel Corp. 23,412,813
--------------------------------------------------------------
8,800 (b) Intergraph Corp. 56,100
--------------------------------------------------------------
98,000 International Business Machines Corp. 15,753,500
--------------------------------------------------------------
25,300 (b) LSI Logic Corp. 967,725
--------------------------------------------------------------
37,088 Lockheed Martin Corp. 3,319,376
--------------------------------------------------------------
118,967 Lucent Technologies, Inc. 7,033,924
--------------------------------------------------------------
13,800 Mallinckrodt, Inc. 501,975
--------------------------------------------------------------
40,000 McDonnell-Douglas Corp. 2,375,000
--------------------------------------------------------------
38,800 Micron Technology, Inc. 1,367,700
--------------------------------------------------------------
</TABLE>
FEDERATED MAX-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- -------------------------------------------------------------- --------------
<C> <C> <S> <C>
(A)COMMON STOCKS--CONTINUED
- ---------------------------------------------------------------------------------
TECHNOLOGY--CONTINUED
--------------------------------------------------------------
222,500 (b) Microsoft Corp. $ 27,033,750
--------------------------------------------------------------
110,200 Motorola, Inc. 6,308,950
--------------------------------------------------------------
25,800 (b) National Semiconductor Corp. 645,000
--------------------------------------------------------------
48,000 Northern Telecom Ltd. 3,486,000
--------------------------------------------------------------
10,800 Northrop Corp. 901,800
--------------------------------------------------------------
65,600 (b) Novell, Inc. 496,100
--------------------------------------------------------------
121,750 (b) Oracle Corp. 4,839,563
--------------------------------------------------------------
25,000 (b) Parametric Technology Corp. 1,131,250
--------------------------------------------------------------
8,100 Perkin-Elmer Corp. 588,263
--------------------------------------------------------------
43,900 Raytheon Co. 1,915,138
--------------------------------------------------------------
40,600 Rockwell International Corp. 2,699,900
--------------------------------------------------------------
14,300 Scientific-Atlanta, Inc. 228,800
--------------------------------------------------------------
46,700 (b) Seagate Technology, Inc. 2,142,363
--------------------------------------------------------------
32,100 (b) Silicon Graphics, Inc. 477,488
--------------------------------------------------------------
68,500 (b) Sun Microsystems, Inc. 1,973,656
--------------------------------------------------------------
21,900 (b) Tandem Computers, Inc. 281,963
--------------------------------------------------------------
6,100 Tektronix, Inc. 330,163
--------------------------------------------------------------
33,200 (b) Tellabs, Inc. 1,323,850
--------------------------------------------------------------
35,300 Texas Instruments, Inc. 3,150,525
--------------------------------------------------------------
32,300 (b) Unisys Corp. 193,800
--------------------------------------------------------------
45,200 United Technologies Corp. 3,418,250
-------------------------------------------------------------- --------------
Total 171,730,331
-------------------------------------------------------------- --------------
TRANSPORTATION--1.3%
--------------------------------------------------------------
16,900 (b) AMR Corp. 1,573,812
--------------------------------------------------------------
28,411 Burlington Northern Santa Fe 2,237,366
--------------------------------------------------------------
39,400 CSX Corp. 1,837,025
--------------------------------------------------------------
7,300 Caliber System, Inc. 217,175
--------------------------------------------------------------
</TABLE>
FEDERATED MAX-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- -------------------------------------------------------------- --------------
<C> <C> <S> <C>
(A)COMMON STOCKS--CONTINUED
- ---------------------------------------------------------------------------------
TRANSPORTATION--CONTINUED
--------------------------------------------------------------
13,171 Consolidated Rail Corp. $ 1,504,787
--------------------------------------------------------------
14,600 Delta Air Lines, Inc. 1,345,025
--------------------------------------------------------------
21,100 (b) Federal Express Corp. 1,136,762
--------------------------------------------------------------
23,400 Norfolk Southern Corp. 2,103,075
--------------------------------------------------------------
26,900 Southwest Airlines Co. 739,750
--------------------------------------------------------------
11,800 (b) USAir Group, Inc. 382,025
--------------------------------------------------------------
45,300 Union Pacific Corp. 2,887,875
-------------------------------------------------------------- --------------
Total 15,964,677
-------------------------------------------------------------- --------------
UTILITIES--9.5%
--------------------------------------------------------------
299,978 AT&T Corp. 10,049,263
--------------------------------------------------------------
92,800 Airtouch Communications, Inc. 2,366,400
--------------------------------------------------------------
35,300 Alltel Corp. 1,111,950
--------------------------------------------------------------
34,800 American Electric Power Co., Inc. 1,409,400
--------------------------------------------------------------
102,200 Ameritech Corp. 6,246,975
--------------------------------------------------------------
27,350 Baltimore Gas & Electric Co. 697,425
--------------------------------------------------------------
81,400 Bell Atlantic Corp. 5,514,850
--------------------------------------------------------------
184,900 BellSouth Corp. 8,228,050
--------------------------------------------------------------
28,200 Carolina Power & Light Co. 958,800
--------------------------------------------------------------
39,100 Central & SouthWest Corp. 786,887
--------------------------------------------------------------
29,340 Cinergy Corp. 975,555
--------------------------------------------------------------
19,600 Coastal Corp. 931,000
--------------------------------------------------------------
10,200 Columbia Gas System, Inc. 631,125
--------------------------------------------------------------
60,750 Comcast Corp., Class A 956,812
--------------------------------------------------------------
43,700 Consolidated Edison Co. 1,212,675
--------------------------------------------------------------
17,600 Consolidated Natural Gas Co. 886,600
--------------------------------------------------------------
27,000 DTE Energy Co. 722,250
--------------------------------------------------------------
33,150 Dominion Resources, Inc. 1,139,531
--------------------------------------------------------------
</TABLE>
FEDERATED MAX-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- -------------------------------------------------------------- --------------
<C> <C> <S> <C>
(A)COMMON STOCKS--CONTINUED
- ---------------------------------------------------------------------------------
UTILITIES--CONTINUED
--------------------------------------------------------------
37,700 Duke Power Co. $ 1,654,087
--------------------------------------------------------------
3,700 Eastern Enterprises 125,337
--------------------------------------------------------------
81,500 Edison International 1,711,500
--------------------------------------------------------------
47,100 Enron Corp. 1,772,137
--------------------------------------------------------------
12,900 Enserch Corp. 253,162
--------------------------------------------------------------
42,500 Entergy Corp. 993,437
--------------------------------------------------------------
34,100 FPL Group, Inc. 1,521,712
--------------------------------------------------------------
30,400 Frontier Corp. 482,600
--------------------------------------------------------------
22,400 GPU, Inc. 722,400
--------------------------------------------------------------
179,800 GTE Corp. 8,248,325
--------------------------------------------------------------
48,400 Houston Industries, Inc. 968,000
--------------------------------------------------------------
127,800 MCI Communications Corp. 4,872,375
--------------------------------------------------------------
9,300 NICOR, Inc. 315,038
--------------------------------------------------------------
81,500 NYNEX Corp. 4,217,625
--------------------------------------------------------------
26,800 Niagara Mohawk Power Corp. 227,800
--------------------------------------------------------------
25,400 Noram Energy Corp. 371,475
--------------------------------------------------------------
12,800 Northern States Power Co. 582,400
--------------------------------------------------------------
28,300 Ohio Edison Co. 566,000
--------------------------------------------------------------
5,100 Oneok, Inc. 151,725
--------------------------------------------------------------
77,300 P G & E Corp. 1,855,200
--------------------------------------------------------------
30,000 P P & L Resources, Inc. 588,750
--------------------------------------------------------------
15,800 Pacific Enterprises 483,875
--------------------------------------------------------------
54,700 Pacificorp 1,087,163
--------------------------------------------------------------
28,100 Panenergy Corp. 1,243,425
--------------------------------------------------------------
41,400 Peco Energy Co. 817,650
--------------------------------------------------------------
6,400 Peoples Energy Corp. 216,000
--------------------------------------------------------------
45,300 Public Service Enterprises Group, Inc. 1,092,863
--------------------------------------------------------------
</TABLE>
FEDERATED MAX-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- -------------------------------------------------------------- --------------
<C> <C> <S> <C>
(A)COMMON STOCKS--CONTINUED
- ---------------------------------------------------------------------------------
UTILITIES--CONTINUED
--------------------------------------------------------------
171,323 SBC Communications, Inc. $ 9,508,427
--------------------------------------------------------------
19,600 Salomon, Inc. 980,000
--------------------------------------------------------------
16,000 Sonat, Inc. 914,000
--------------------------------------------------------------
125,200 Southern Co. 2,550,950
--------------------------------------------------------------
80,100 Sprint Corp. 3,514,388
--------------------------------------------------------------
121,600 (b) Tele-Communications, Inc., Class A 1,679,600
--------------------------------------------------------------
41,700 Texas Utilities Co. 1,407,375
--------------------------------------------------------------
88,900 U.S. West, Inc. 3,122,613
--------------------------------------------------------------
40,100 Unicom Corp. 872,175
--------------------------------------------------------------
19,000 Union Electric Co. 676,875
--------------------------------------------------------------
29,300 Williams Cos., Inc. (The) 1,285,539
--------------------------------------------------------------
162,300 (b) WorldCom, Inc. 3,895,200
-------------------------------------------------------------- --------------
Total 112,374,751
-------------------------------------------------------------- --------------
TOTAL COMMON STOCKS (IDENTIFIED COST $825,805,829) 1,138,958,612
-------------------------------------------------------------- --------------
</TABLE>
FEDERATED MAX-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------- -------------------------------------------------------------- --------------
<C> <C> <S> <C>
(C)SHORT-TERM U.S. GOVERNMENT OBLIGATIONS--0.2%
- ---------------------------------------------------------------------------------
$ 3,000,000 United States Treasury Bill, 9/11/1997 (AT AMORTIZED COST) $ 2,942,670
-------------------------------------------------------------- --------------
(D) REPURCHASE AGREEMENT--3.5%
- ---------------------------------------------------------------------------------
41,200,000 BT Securities Corporation, 3.60%, dated 4/30/97, due 05/01/97
(AT AMORTIZED COST) 41,200,000
-------------------------------------------------------------- --------------
TOTAL INVESTMENTS (IDENTIFIED COST $869,948,499)(E) $1,183,101,282
-------------------------------------------------------------- --------------
</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 stock market and minimizing trading costs. The
total market value of open futures contracts is $42,949,800 at April 30,
1997, which represents 3.6% of net assets. Taking into consideration these
open futures contracts, the Fund's effective total exposure to the stocks is
99.7%.
(b) Non-income producing security.
(c) Represents a security held as collateral which is used to ensure the Fund is
able to satisfy the obligations of its outstanding long futures contracts.
(d) 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.
(e) The cost of investments for federal tax purposes amounts to $869,948,499.
The net unrealized appreciation of investments on a federal tax basis
amounts to $313,152,783 which is comprised of $332,430,689 appreciation and
$19,277,906 depreciation at April 30, 1997.
Note: The categories of investments are shown as a percentage of net assets
($1,184,648,305) at April 30, 1997.
The following acronym is used throughout this portfolio:
ADR -- American Depositary Receipt
(See Notes which are an integral part of the Financial Statements)
FEDERATED MAX-CAP FUND
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- ------------------------------------------------------------------------------
Total investments in securities, at value (identified and tax cost
$869,948,499) $1,183,101,282
- ------------------------------------------------------------------------------
Income receivable 1,437,604
- ------------------------------------------------------------------------------
Receivable for shares sold 3,386,445
- ------------------------------------------------------------------------------
Receivable for daily variation margin 171,469
- ------------------------------------------------------------------------------
Deferred expenses 250
- ------------------------------------------------------------------------------ --------------
Total assets 1,188,097,050
- ------------------------------------------------------------------------------
LIABILITIES:
- ------------------------------------------------------------------------------
Payable for shares redeemed $ 13,871
- -----------------------------------------------------------------
Payable to Bank 3,293,232
- -----------------------------------------------------------------
Payable for taxes withheld 313
- -----------------------------------------------------------------
Accrued expenses 141,329
- ----------------------------------------------------------------- ----------
Total liabilities 3,448,745
- ------------------------------------------------------------------------------ --------------
NET ASSETS for 68,568,962 shares outstanding $1,184,648,305
- ------------------------------------------------------------------------------ --------------
NET ASSETS CONSIST OF:
- ------------------------------------------------------------------------------
Paid-in capital $ 869,447,960
- ------------------------------------------------------------------------------
Net unrealized appreciation of investments and futures contracts 313,976,654
- ------------------------------------------------------------------------------
Accumulated net realized gain on investments and futures contracts 464,194
- ------------------------------------------------------------------------------
Undistributed net investment income 759,497
- ------------------------------------------------------------------------------ --------------
Total Net Assets $1,184,648,305
- ------------------------------------------------------------------------------ --------------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PROCEEDS PER SHARE:
- ------------------------------------------------------------------------------
INSTITUTIONAL SHARES:
- ------------------------------------------------------------------------------
$1,057,448,633 / 61,194,940 shares outstanding $17.28
- ------------------------------------------------------------------------------ --------------
INSTITUTIONAL SERVICE SHARES:
- ------------------------------------------------------------------------------
$127,199,672 / 7,374,022 shares outstanding $17.25
- ------------------------------------------------------------------------------ --------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FEDERATED MAX-CAP FUND
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME:
- --------------------------------------------------------------------------------------------
Dividends $ 9,890,127
- --------------------------------------------------------------------------------------------
Interest 1,427,195
- -------------------------------------------------------------------------------------------- ------------
Total income 11,317,322
- --------------------------------------------------------------------------------------------
EXPENSES:
- --------------------------------------------------------------------------------------------
Management fee $ 1,619,294
- -----------------------------------------------------------------------------
Custodian fees 65,822
- -----------------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 71,737
- -----------------------------------------------------------------------------
Directors'/Trustees' fees 6,278
- -----------------------------------------------------------------------------
Auditing fees 6,939
- -----------------------------------------------------------------------------
Legal fees 4,043
- -----------------------------------------------------------------------------
Portfolio accounting fees 69,943
- -----------------------------------------------------------------------------
Distribution services fee--Institutional Service Shares 137,807
- -----------------------------------------------------------------------------
Shareholder services fee--Institutional Shares 1,234,573
- -----------------------------------------------------------------------------
Shareholder services fee--Institutional Service Shares 114,839
- -----------------------------------------------------------------------------
Share registration costs 67,036
- -----------------------------------------------------------------------------
Printing and postage 21,747
- -----------------------------------------------------------------------------
Insurance premiums 4,818
- -----------------------------------------------------------------------------
Taxes 21,358
- -----------------------------------------------------------------------------
Miscellaneous 3,801
- ----------------------------------------------------------------------------- -----------
Total expenses 3,450,035
- -----------------------------------------------------------------------------
Waivers and reimbursements--
- -----------------------------------------------------------------------------
Waiver of management fee $ (265,795)
- ---------------------------------------------------------------
Waiver of distribution services fee--Institutional Service
Shares (101,058)
- ---------------------------------------------------------------
Waiver of shareholder services fee--Institutional Shares (1,234,573)
- ---------------------------------------------------------------
Waiver of shareholder services fee--Institutional Service
Shares (13,781)
- --------------------------------------------------------------- -----------
Total waivers (1,615,207)
- ----------------------------------------------------------------------------- -----------
Net expenses 1,834,828
- -------------------------------------------------------------------------------------------- ------------
Net investment income 9,482,494
- -------------------------------------------------------------------------------------------- ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FUTURES CONTRACTS:
- --------------------------------------------------------------------------------------------
Net realized gain on investments and futures contracts 5,061,758
- --------------------------------------------------------------------------------------------
Net change in unrealized appreciation of investments and futures contracts 126,086,373
- -------------------------------------------------------------------------------------------- ------------
Net realized and unrealized gain on investments and futures contracts 131,148,131
- -------------------------------------------------------------------------------------------- ------------
Change in net assets resulting from operations $140,630,625
- -------------------------------------------------------------------------------------------- ------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FEDERATED MAX-CAP FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(UNAUDITED) YEAR ENDED
APRIL 30, 1997 OCTOBER 31, 1996
-------------- ----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- --------------------------------------------------------------------
OPERATIONS--
- --------------------------------------------------------------------
Net investment income $ 9,482,494 $ 17,495,782
- --------------------------------------------------------------------
Net realized gain (loss) on investments and futures contracts ($5,061,758 and
$14,649,222 net gains, respectively, as computed for
federal tax purposes) 5,061,758 13,947,611
- --------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) of investments 126,086,373 134,550,523
- -------------------------------------------------------------------- -------------- --------------
Change in net assets resulting from operations 140,630,625 165,993,916
- -------------------------------------------------------------------- -------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS--
- --------------------------------------------------------------------
Distributions from net investment income
- --------------------------------------------------------------------
Institutional Shares (10,467,018) (17,109,255)
- --------------------------------------------------------------------
Institutional Service Shares (858,039) (847,955)
- --------------------------------------------------------------------
Distributions from net realized gains on investment and futures
contracts
- --------------------------------------------------------------------
Institutional Shares (13,509,884) (98,597,371)
- --------------------------------------------------------------------
Institutional Service Shares (1,138,590) (4,696,377)
- -------------------------------------------------------------------- ------------- --------------
Change in net assets resulting from distributions to
shareholders (25,973,531) (121,250,958)
- -------------------------------------------------------------------- ------------- --------------
SHARE TRANSACTIONS--
- --------------------------------------------------------------------
Proceeds from sale of shares 324,465,825 680,420,450
- --------------------------------------------------------------------
Net asset value of shares issued to shareholders in payment of
distributions declared 12,280,738 65,168,316
- --------------------------------------------------------------------
Cost of shares redeemed (225,623,320) (545,896,207)
- -------------------------------------------------------------------- ------------- --------------
Change in net assets resulting from share transactions 111,123,243 199,692,559
- -------------------------------------------------------------------- ------------- --------------
Change in net assets 225,780,337 244,435,517
- --------------------------------------------------------------------
NET ASSETS:
- --------------------------------------------------------------------
Beginning of period 958,867,968 714,432,451
- -------------------------------------------------------------------- ------------- --------------
End of period (including undistributed net investment income of
$759,497 and $2,602,060, respectively) $1,184,648,305 $ 958,867,968
- -------------------------------------------------------------------- ------------- --------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FEDERATED 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, -------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992 1991 1990(A)
-------------- ------ ------ ------ ------ ------ ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD $15.49 $14.74 $12.02 $12.24 $11.64 $11.07 $ 8.60 $10.00
- -----------------------------
INCOME FROM INVESTMENT
OPERATIONS
- -----------------------------
Net investment income 0.15 0.34 0.38 0.32 0.30 0.32 0.37 0.12
- -----------------------------
Net realized and unrealized
gain (loss) on investments
and foreign currency 2.06 2.80 2.70 0.10 1.29 0.71 2.46 (1.43)
- ----------------------------- --------- ----- ----- ----- ----- ----- ----- ------
Total from investment
operations 2.21 3.14 3.08 0.42 1.59 1.03 2.83 (1.31)
- ----------------------------- --------- ----- ----- ----- ----- ----- ----- ------
LESS DISTRIBUTIONS
- -----------------------------
Distributions from net
investment income (0.18) (0.36) (0.34) (0.30) (0.30) (0.34) (0.36) (0.09)
- -----------------------------
Distributions from net
realized gain on investments
and foreign currency
transactions (0.24) (2.03) (0.02) (0.34) (0.69) (0.12) -- --
- ----------------------------- --------- ----- ----- ----- ----- ----- ----- ------
Total distributions (0.42) (2.39) (0.36) (0.64) (0.99) (0.46) (0.36) (0.09)
- ----------------------------- --------- ----- ----- ----- ----- ----- ----- ------
NET ASSET VALUE, END OF PERIOD $17.28 $15.49 $14.74 $12.02 $12.24 $11.64 $11.07 $ 8.60
- ----------------------------- --------- ----- ----- ----- ----- ----- ----- ------
TOTAL RETURN(B) 14.46% 23.71% 26.00% 3.59% 14.35% 9.51% 33.31% (14.46% )
- -----------------------------
RATIOS TO AVERAGE NET ASSETS
- -----------------------------
Expenses 0.31%* 0.31% 0.31% 0.32% 0.31% 0.30% 0.24% 0.00% *
- -----------------------------
Net investment income 1.78%* 2.29% 2.91% 2.70% 2.60% 2.92% 3.74% 5.19% *
- -----------------------------
Expense waiver/
reimbursement(c) 0.30%* 0.31% 0.33% 0.07% 0.09% 0.18% 0.45% 0.94% *
- -----------------------------
SUPPLEMENTAL DATA
- -----------------------------
Net assets, end of period
(000 omitted) $1,057,449 $900,131 $679,237 $443,815 $407,246 $309,614 $144,528 $25,129
- -----------------------------
Average commission rate paid $0.0375 $0.0153 -- -- -- -- -- --
- -----------------------------
Portfolio turnover 1% 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
FINANCIAL HIGHLIGHTS--INSTITUTIONAL SERVICE SHARES
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(UNAUDITED) YEAR ENDED OCTOBER 31,
APRIL 30, -------------------------------------------
1997 1996 1995 1994 1993(A)
-------------- ------ ------ ------ -------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $15.47 $14.72 $12.02 $12.24 $12.12
- ---------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ---------------------------------------------------
Net investment income 0.13 0.30 0.33 0.28(b) 0.07
- ---------------------------------------------------
Net realized and unrealized gain (loss) on
investments and foreign currency 2.05 2.79 2.69 0.11 0.12
- --------------------------------------------------- --------- ----- ----- ----- ------
Total from investment operations 2.18 3.09 3.02 0.39 0.19
- --------------------------------------------------- --------- ----- ----- ----- ------
LESS DISTRIBUTIONS
- ---------------------------------------------------
Distributions from net investment income (0.16) (0.31) (0.30) (0.27) (0.07)
- ---------------------------------------------------
Distributions from net realized gain on
investment and foreign currency transactions (0.24) (2.03) (0.02) (0.34) --
- --------------------------------------------------- --------- ----- ----- ----- ------
Total distributions (0.40) (2.34) (0.32) (0.61) (0.07)
- --------------------------------------------------- --------- ----- ----- ----- ------
NET ASSET VALUE, END OF PERIOD $17.25 $15.47 $14.72 $12.02 $12.24
- --------------------------------------------------- --------- ----- ----- ----- ------
TOTAL RETURN(C) 14.26% 23.39% 25.52% 3.30% 1.70%
- ---------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ---------------------------------------------------
Expenses 0.62%* 0.61% 0.61% 0.62% 0.61% *
- ---------------------------------------------------
Net investment income 1.46%* 1.97% 2.55% 2.35% 1.52% *
- ---------------------------------------------------
Expense waiver/reimbursement(d) 0.30%* 0.31% 0.33% 0.26% 0.09% *
- ---------------------------------------------------
SUPPLEMENTAL DATA
- ---------------------------------------------------
Net assets, end of period (000 omitted) $127,199 $58,741 $35,195 $8,617 $2,493
- ---------------------------------------------------
Average commission rate paid $0.0375 $0.0153 -- -- --
- ---------------------------------------------------
Portfolio turnover 1% 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
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1997 (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 Standard &
Poor's 500 Composite Stock Price Index.
(2) SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
INVESTMENT VALUATIONS--Listed equity securities are valued at the last sale
price reported on a national securities exchange. Short-term securities are
valued at the prices provided by an independent pricing service. However,
short-term securities with remaining maturities of sixty days or less at
the time of purchase may be valued at amortized cost, which approximates
fair market value.
REPURCHASE AGREEMENTS--It is the policy of the Fund to require the
custodian bank to take possession, to have legally segregated in the
Federal Reserve Book Entry System, or to have segregated within the
custodian bank's vault, all securities held as collateral under repurchase
agreement transactions. Additionally, procedures have been established by
the Fund to monitor, on a daily basis, the market value of each repurchase
agreement's collateral to ensure that the value of collateral at least
equals the repurchase price to be paid under the repurchase agreement
transaction.
The Fund will only enter into repurchase agreements with banks and other
recognized financial institutions, such as broker/dealers, which are deemed
by the Fund's adviser to be creditworthy pursuant to the guidelines and/or
standards reviewed or established by the Board of Trustees (the
"Trustees"). Risks may arise from the potential inability of counterparties
to honor the terms of the repurchase agreement. Accordingly, the Fund could
receive less than the repurchase price on the sale of collateral
securities.
INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS--Interest income and expenses
are accrued daily. Bond premium and discount, if applicable, are amortized
as required by the Internal
FEDERATED MAX-CAP FUND
- --------------------------------------------------------------------------------
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 over a period not to exceed 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, 1997, the Fund had realized gains of $4,022,885 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, 1997, the Fund had outstanding futures contracts as set forth
below:
<TABLE>
<CAPTION>
UNREALIZED
EXPIRATION CONTRACTS TO APPRECIATION
DATE DELIVER/RECEIVE POSITION (DEPRECIATION)
------------ --------------------------- --------- ---------------
<S> <C> <C> <C>
June 1997 107 S&P 500 Index Futures Long $823,871
</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 MAX-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) for each
class of shares.
Transactions in shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1997 OCTOBER 31, 1996
---------------------------- ----------------------------
INSTITUTIONAL SHARES SHARES AMOUNT SHARES AMOUNT
- ----------------------------------------- ----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
Shares sold 15,180,204 $ 251,728,460 42,819,916 $ 622,123,488
- -----------------------------------------
Shares issued to shareholders in payment
of distributions declared 664,843 10,565,092 4,444,520 60,563,340
- -----------------------------------------
Shares redeemed (12,762,432) (210,107,412) (35,228,936) (503,599,044)
- ----------------------------------------- ----------- ------------- ----------- -------------
Net change resulting from Institutional
Share transactions 3,082,615 $ 52,186,140 12,035,500 $ 179,087,784
- ----------------------------------------- ----------- ------------- ----------- -------------
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1997 OCTOBER 31, 1996
---------------------------- ----------------------------
INSTITUTIONAL SERVICE SHARES SHARES AMOUNT SHARES AMOUNT
- ----------------------------------------- ----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
Shares sold 4,402,837 $ 72,737,365 4,027,604 $ 58,296,962
- -----------------------------------------
Shares issued to shareholders in payment
of distributions declared 107,832 1,715,646 337,876 4,604,976
- -----------------------------------------
Shares redeemed (934,881) (15,515,908) (2,957,950) (42,297,163)
- ----------------------------------------- ----------- ------------- ----------- -------------
Net change resulting from Institutional
Service Share transactions 3,575,788 $ 58,937,103 1,407,530 $ 20,604,775
- ----------------------------------------- ----------- ------------- ----------- -------------
Net change resulting from share
transactions 6,658,402 $ 111,123,243 13,443,030 $ 199,692,559
- ----------------------------------------- ----------- ------------- ----------- -------------
</TABLE>
(4) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE--Federated Management, the Fund's manager (the
"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, (the
"Sub-Manager"). The Manager shall pay the Sub-Manager a management fee based on
the average daily net assets of the Funds 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 any portion of its fee. The Adviser can modify or
terminate this voluntary waiver at any time at its sole discretion.
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
FEDERATED MAX-CAP FUND
- --------------------------------------------------------------------------------
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 the average daily net assets of the Institutional Service Shares,
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--Federated Services
Company ("FServ"), through its subsidiary, Federated Shareholder Services
Company ("FSSC") serves as transfer and dividend disbursing agent for the Fund.
The fee paid to FSSC is based on the size, type, and number of accounts and
transactions made by shareholders.
PORTFOLIO ACCOUNTING FEES--FServ maintains the Fund's accounting records for
which it receives a fee. The fee is based on the level of the Fund's average
daily net assets for the period, plus out-of-pocket expenses.
GENERAL--Certain of the Officers and Trustees of the Trust are Officers and
Directors or Trustees of the above companies.
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the
period ended April 30, 1997, were as follows:
<TABLE>
<S> <C>
- ------------------------------------------------------------------------------
PURCHASES $122,458,297
- ------------------------------------------------------------------------------ ------------
SALES $ 15,337,179
- ------------------------------------------------------------------------------ ------------
</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
S. Elliott Cohan
Assistant Secretary
</TABLE>
Mutual funds are not bank deposits or obligations, are not guaranteed by any
bank, and are not insured or guaranteed by the U.S. government, the Federal
Deposit Insurance Corporation, the Federal Reserve Board, or any other
government agency. Investment in mutual funds involves investment risk,
including possible loss of principal.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by the fund's prospectus which contains facts concerning
its objective and policies, management fees, expenses and other information.
- -------------------------------------------------
FEDERATED
- -------------------------------------------------
MAX-CAP
- -------------------------------------------------
FUND
- -------------------------------------------------
SEMI-ANNUAL REPORT
TO SHAREHOLDERS
APRIL 30, 1997
[FEDERATED INVESTORS LOGO] ----------------
----------------
CUSIP 31420E106 ----------------
CUSIP 31420E403 ----------------
2052905 (6/97)
[RECYCLED LOGO]
- --------------------------------------------------------------------------------
FEDERATED
- --------------------------------------------------------------------------------
MID-CAP
- --------------------------------------------------------------------------------
FUND
================================================================================
SEMI-ANNUAL REPORT
TO SHAREHOLDERS
APRIL 30, 1997
LOGO
Cusip 31420E205
3042108 (6/97)
PRESIDENT'S MESSAGE
- --------------------------------------------------------------------------------
Dear Shareholder:
I am pleased to present the Semi-Annual Report to Shareholders of Federated
Mid-Cap Fund, a portfolio of Federated Index Trust, for the six-month reporting
period from November 1, 1996 through April 30, 1997. The report begins with an
investment review, followed by the fund's portfolio of investments and its
financial statements.
As its name implies, Federated Mid-Cap Fund gives you a highly efficient way to
pursue the performance of the mid-cap stock market. Stocks in the fund are
weighted in the same proportion as the stocks that make up the Standard & Poor's
Mid Cap 400 Index. This unmanaged index consists of 400 common stocks issued by
medium-sized domestic companies with a median market capitalization of $1.1
billion.*
Over the six-month reporting period, the fund produced a total return of 6.56%**
through dividend income distributions of $0.08 per share, capital gains
distributions of $0.59 per share, and a $0.20 increase in net asset value. On
the last day of the reporting period, the fund's total net assets stood at $55.1
million.
Thank you for putting your money to work in mid-cap stocks through the
efficiency and professional management of Federated Mid-Cap Fund. As always, we
invite your comments and suggestions.
Sincerely,
LOGO
Glen R. Johnson
President
June 15, 1997
* The Mid-Cap Fund seeks investment results that correspond to the aggregate
price and total return performance of the Standard & Poor's Mid-Cap Index.
"Standard & Poor's(R)," "S&P(R)," "S&P Mid-Cap 400 Index," and "Standard &
Poor's Mid-Cap 400 Index" are trademarks of Standard and Poor's Ratings Group
("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 Ratings Group. Its only relationship to the fund is the
licensing of the use of the Index. Actual investments cannot be made in an
index.
** Performance quoted reflects past performance and is not indicative of future
results. Investment return and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than their
original cost.
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
The fund's total return for the six-month reporting period ended April 30, 1997
was 6.56%.* The target index, the Standard & Poor's 400 MidCap Index (the
"Index") had a total return of 6.86% 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 climb in the last six months despite
temporary setbacks from interest rate fears in December 1996 and March 1997. In
December, the Federal Reserve Board (the "Fed") Chairman's comment that the U.S.
stock market was fueled by "irrational exuberance" sent the market lower as
investors interpreted the comment as a signal of a likely hike in interest
rates. In March, the Fed raised its target rate for federal funds by a modest
1/4%, less than some analysts expected.
Most investors have shrugged off fears of increasing interest rates for now,
focusing on favorable economic data and strong corporate earnings. Cash flows
into equity mutual funds have remained strong, also supporting the market.
During the last six months, air freight, independent power producers, and
discounters were among the strongest performing sectors while book publishers,
cellular telephones, and office products were among the worst performing sectors
in the Index.
* 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.
FEDERATED MID-CAP FUND
PORTFOLIO OF INVESTMENTS
APRIL 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ----------------------------------------------------------------- -----------
<C> <C> <S> <C>
(A) COMMON STOCKS--93.0%
- ------------------------------------------------------------------------------------
BASIC INDUSTRY--6.9%
-----------------------------------------------------------------
5,100 (b) Airgas, Inc. $ 75,862
-----------------------------------------------------------------
2,300 Albany International Corp., Class A 46,287
-----------------------------------------------------------------
4,100 Albemarle Corp. 72,262
-----------------------------------------------------------------
3,400 (b) Alumax, Inc. 124,100
-----------------------------------------------------------------
2,100 Betz Laboratories, Inc. 134,400
-----------------------------------------------------------------
3,100 Bowater, Inc. 134,075
-----------------------------------------------------------------
1,200 Brush Wellman, Inc. 22,800
-----------------------------------------------------------------
4,700 (b) Burlington Industries, Inc. 48,175
-----------------------------------------------------------------
5,300 Cabot Corp. 116,600
-----------------------------------------------------------------
1,700 CalMat Co. 30,387
-----------------------------------------------------------------
3,000 Calgon Carbon Corp. 36,750
-----------------------------------------------------------------
1,200 Carpenter Technology Corp. 48,750
-----------------------------------------------------------------
1,700 Chesapeake Corp. 58,012
-----------------------------------------------------------------
900 Cleveland Cliffs, Inc. 38,137
-----------------------------------------------------------------
3,300 Consolidated Papers, Inc. 177,375
-----------------------------------------------------------------
5,400 Crompton and Knowles Corp. 117,450
-----------------------------------------------------------------
3,500 (b) Cytec Industries, Inc. 131,687
-----------------------------------------------------------------
1,800 Dexter Corp. 53,775
-----------------------------------------------------------------
1,900 Donaldson Company, Inc. 65,075
-----------------------------------------------------------------
8,900 Ethyl Corp. 81,212
-----------------------------------------------------------------
1,900 Ferro Corp. 59,137
-----------------------------------------------------------------
1,100 Fuller (H.B.) Co. 58,987
-----------------------------------------------------------------
2,600 Georgia Gulf Corp. 63,050
-----------------------------------------------------------------
3,200 Glatfelter (P.H.) Co. 50,000
-----------------------------------------------------------------
3,900 Hanna (M.A.) Co. 81,412
-----------------------------------------------------------------
</TABLE>
FEDERATED MID-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ----------------------------------------------------------------- -----------
<C> <C> <S> <C>
(A) COMMON STOCKS--CONTINUED
- ------------------------------------------------------------------------------------
BASIC INDUSTRY--CONTINUED
-----------------------------------------------------------------
6,900 IMC Global, Inc. $ 254,437
-----------------------------------------------------------------
3,400 Lawter International, Inc. 36,125
-----------------------------------------------------------------
3,900 Longview Fibre Co. 62,888
-----------------------------------------------------------------
4,500 Lubrizol Corp. 147,375
-----------------------------------------------------------------
1,100 Lukens, Inc. 21,038
-----------------------------------------------------------------
700 (b) Maxxam, Inc. 30,100
-----------------------------------------------------------------
1,700 Minerals Technologies, Inc. 59,713
-----------------------------------------------------------------
600 NCH, Corp. 37,800
-----------------------------------------------------------------
1,900 Oregon Steel Mills 31,350
-----------------------------------------------------------------
5,800 RPM, Inc. 97,150
-----------------------------------------------------------------
2,200 Rayonier, Inc. 88,825
-----------------------------------------------------------------
2,825 Schulman (A.), Inc. 53,675
-----------------------------------------------------------------
3,200 (b) Sealed Air Corp. 148,000
-----------------------------------------------------------------
6,685 Sonoco Products Co. 179,659
-----------------------------------------------------------------
1,600 Southdown, Inc. 57,800
-----------------------------------------------------------------
4,800 Unifi, Inc. 148,800
-----------------------------------------------------------------
2,600 Vulcan Materials Co. 169,975
-----------------------------------------------------------------
2,768 Wausau Paper Mills Co. 48,431
-----------------------------------------------------------------
2,300 Wellman, Inc. 36,225
-----------------------------------------------------------------
4,200 Witco Corp. 156,975
----------------------------------------------------------------- -----------
Total 3,792,098
----------------------------------------------------------------- -----------
CONSUMER DURABLES--2.6%
-----------------------------------------------------------------
1,700 Arvin Industries, Inc. 44,200
-----------------------------------------------------------------
5,400 Callaway Golf Co. 161,325
-----------------------------------------------------------------
2,300 Carlisle Cos., Inc. 64,687
-----------------------------------------------------------------
8,876 Clayton Homes, Inc. 124,264
-----------------------------------------------------------------
4,000 (b) Electronic Arts, Inc. 96,500
-----------------------------------------------------------------
</TABLE>
FEDERATED MID-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ----------------------------------------------------------------- -----------
<C> <C> <S> <C>
(A) COMMON STOCKS--CONTINUED
- ------------------------------------------------------------------------------------
CONSUMER DURABLES--CONTINUED
-----------------------------------------------------------------
2,600 Federal-Mogul Corp. $ 71,825
-----------------------------------------------------------------
5,700 Harley Davidson, Inc. 225,150
-----------------------------------------------------------------
9,400 International Game Technology 149,225
-----------------------------------------------------------------
6,800 Leggett and Platt, Inc. 236,300
-----------------------------------------------------------------
600 National Presto Industries, Inc. 21,900
-----------------------------------------------------------------
10,100 Shaw Industries, Inc. 122,463
-----------------------------------------------------------------
1,300 Stanhome, Inc. 39,325
-----------------------------------------------------------------
2,100 Superior Industries International, Inc. 49,875
----------------------------------------------------------------- -----------
Total 1,407,039
----------------------------------------------------------------- -----------
CONSUMER NON-DURABLES--5.0%
-----------------------------------------------------------------
1,500 Church and Dwight, Inc. 38,250
-----------------------------------------------------------------
9,400 Coca Cola Enterprises, Inc. 567,525
-----------------------------------------------------------------
3,000 Dean Foods Co. 110,625
-----------------------------------------------------------------
4,500 Dole Food, Inc. 183,375
-----------------------------------------------------------------
1,000 Dreyers Grand Ice Cream, Inc. 31,359
-----------------------------------------------------------------
3,100 First Brands Corp. 78,662
-----------------------------------------------------------------
4,350 Flowers Industries, Inc. 106,031
-----------------------------------------------------------------
1,200 (b) Gibson Greetings, Inc. 24,600
-----------------------------------------------------------------
5,700 Hormel Foods Corp. 139,650
-----------------------------------------------------------------
7,200 IBP, Inc. 171,000
-----------------------------------------------------------------
1,300 International Multifoods Corp. 32,338
-----------------------------------------------------------------
2,800 Interstate Bakeries Corp. 145,250
-----------------------------------------------------------------
3,900 (b) Jones Apparel Group, Inc. 162,825
-----------------------------------------------------------------
2,200 Lance, Inc. 39,875
-----------------------------------------------------------------
6,000 McCormick & Co., Inc. 141,750
-----------------------------------------------------------------
2,000 Savannah Foods & Industries, Inc. 28,500
-----------------------------------------------------------------
2,200 Smucker (J.M.) Co., Class A 38,500
-----------------------------------------------------------------
</TABLE>
FEDERATED MID-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ----------------------------------------------------------------- -----------
<C> <C> <S> <C>
(A) COMMON STOCKS--CONTINUED
- ------------------------------------------------------------------------------------
CONSUMER NON-DURABLES--CONTINUED
-----------------------------------------------------------------
2,800 Tambrands, Inc. $ 131,600
-----------------------------------------------------------------
16,300 Tyson Foods, Inc., Class A 326,000
-----------------------------------------------------------------
2,600 Universal Corp. 72,800
-----------------------------------------------------------------
1,900 Universal Foods Corp. 66,975
-----------------------------------------------------------------
3,900 Warnaco Group, Inc., Class A 111,150
----------------------------------------------------------------- -----------
Total 2,748,640
----------------------------------------------------------------- -----------
ENERGY MINERALS--5.3%
-----------------------------------------------------------------
4,500 Anadarko Petroleum Corp. 246,937
-----------------------------------------------------------------
6,700 Apache Corp. 227,800
-----------------------------------------------------------------
2,800 (b) BJ Services Co. 131,950
-----------------------------------------------------------------
5,300 (b) ENSCO International, Inc. 251,750
-----------------------------------------------------------------
12,700 (b) Global Marine, Inc. 255,587
-----------------------------------------------------------------
6,000 Lyondell Petrochemical Co. 121,500
-----------------------------------------------------------------
4,200 Mapco, Inc. 124,425
-----------------------------------------------------------------
3,400 Murphy Oil Corp. 147,900
-----------------------------------------------------------------
6,500 (b) Nabors Industries, Inc. 121,875
-----------------------------------------------------------------
4,200 Noble Affiliates, Inc. 150,150
-----------------------------------------------------------------
2,700 Parker & Parsley Petroleum Co. 89,100
-----------------------------------------------------------------
4,900 (b) Parker Drilling Co. 37,975
-----------------------------------------------------------------
2,700 Quaker State Corp. 40,500
-----------------------------------------------------------------
7,400 Ranger Oil Ltd. 74,000
-----------------------------------------------------------------
3,000 (b) Smith International, Inc. 142,125
-----------------------------------------------------------------
9,900 Tosco Corp. 293,288
-----------------------------------------------------------------
5,550 Ultramar Diamond Shamrock Corp. 178,294
-----------------------------------------------------------------
3,300 Valero Energy Corp. 115,913
-----------------------------------------------------------------
</TABLE>
FEDERATED MID-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ----------------------------------------------------------------- -----------
<C> <C> <S> <C>
(A) COMMON STOCKS--CONTINUED
- ------------------------------------------------------------------------------------
ENERGY MINERALS--CONTINUED
-----------------------------------------------------------------
2,400 (b) Varco International, Inc. $ 55,200
-----------------------------------------------------------------
3,881 (b) Weatherford Enterra, Inc. 123,222
----------------------------------------------------------------- -----------
Total 2,929,491
----------------------------------------------------------------- -----------
FINANCE--16.3%
-----------------------------------------------------------------
2,600 AMBAC 168,350
-----------------------------------------------------------------
10,375 Aflac, Inc. 446,125
-----------------------------------------------------------------
2,600 Allstate Corp. 132,925
-----------------------------------------------------------------
9,130 Bear Stearns Cos., Inc. 278,465
-----------------------------------------------------------------
4,425 Central Fidelity Banks, Inc. 122,794
-----------------------------------------------------------------
3,300 City National Corp. 75,487
-----------------------------------------------------------------
3,750 Comdisco, Inc. 119,062
-----------------------------------------------------------------
10,000 Crestar Financial Corp. 370,000
-----------------------------------------------------------------
2,300 Dauphin Deposit Corp. 97,750
-----------------------------------------------------------------
4,725 Edwards(AG), Inc. 165,375
-----------------------------------------------------------------
5,700 First Security Corp. 203,062
-----------------------------------------------------------------
5,000 First Tennessee National Corp. 216,875
-----------------------------------------------------------------
2,400 First Virginia Bank, Inc. 124,200
-----------------------------------------------------------------
4,500 First of America Bank Corp. 299,250
-----------------------------------------------------------------
11,300 Firstar Corp. 331,937
-----------------------------------------------------------------
9,100 Franklin Resources, Inc. 538,037
-----------------------------------------------------------------
1,500 GATX Corp. 82,125
-----------------------------------------------------------------
1,500 Hartford Steam Boiler Insurance 72,187
-----------------------------------------------------------------
9,600 Hibernia Corp., Class A 123,600
-----------------------------------------------------------------
6,800 Marshall & Ilsley Corp. 260,950
-----------------------------------------------------------------
4,550 Mercantile Bancorporation, Inc. 263,900
-----------------------------------------------------------------
3,500 Mercantile Bankshares Corp. 128,625
-----------------------------------------------------------------
8,400 Northern Trust Corp. 373,800
-----------------------------------------------------------------
</TABLE>
FEDERATED MID-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ----------------------------------------------------------------- -----------
<C> <C> <S> <C>
(A) COMMON STOCKS--CONTINUED
- ------------------------------------------------------------------------------------
FINANCE--CONTINUED
-----------------------------------------------------------------
2,600 PHH Corp. $ 126,100
-----------------------------------------------------------------
3,050 Pacific Century Financial Corp. 130,388
-----------------------------------------------------------------
6,900 PaineWebber Group, Inc. 234,600
-----------------------------------------------------------------
1,400 (b) Policy Management System Corp. 60,900
-----------------------------------------------------------------
5,300 Progressive Corp. Ohio 403,463
-----------------------------------------------------------------
3,400 Provident Cos., Inc. 189,975
-----------------------------------------------------------------
4,730 Regions Financial Corp. 268,428
-----------------------------------------------------------------
13,150 Schwab (Charles) Corp. 481,619
-----------------------------------------------------------------
7,200 SouthTrust Corp. 269,100
-----------------------------------------------------------------
6,000 State Street Corp. 472,500
-----------------------------------------------------------------
6,900 Summit Bancorp 320,850
-----------------------------------------------------------------
8,900 SunAmerica, Inc. 409,400
-----------------------------------------------------------------
4,300 T. Rowe Price Associates 198,875
-----------------------------------------------------------------
1,700 Transatlantic Holdings, Inc. 140,675
-----------------------------------------------------------------
4,800 Union Planters Corp. 214,200
-----------------------------------------------------------------
2,500 Wilmington Trust Corp. 107,500
----------------------------------------------------------------- -----------
Total 9,023,454
----------------------------------------------------------------- -----------
HEALTH CARE--8.0%
-----------------------------------------------------------------
2,100 (b) Acuson Corp. 50,925
-----------------------------------------------------------------
1,100 (b) Advanced Technology Labs, Inc. 36,437
-----------------------------------------------------------------
4,100 (b) Allegiance Corp. 90,712
-----------------------------------------------------------------
3,800 (b) Apria Healthcare Group, Inc. 64,125
-----------------------------------------------------------------
2,965 Bergen Brunswig Corp., Class A 101,181
-----------------------------------------------------------------
5,400 (b) Biogen, Inc. 172,800
-----------------------------------------------------------------
7,362 Cardinal Health, Inc. 392,026
-----------------------------------------------------------------
3,500 Carter Wallace, Inc. 46,375
-----------------------------------------------------------------
5,200 (b) Centocor, Inc. 146,250
-----------------------------------------------------------------
</TABLE>
FEDERATED MID-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ----------------------------------------------------------------- -----------
<C> <C> <S> <C>
(A) COMMON STOCKS--CONTINUED
- ------------------------------------------------------------------------------------
HEALTH CARE--CONTINUED
-----------------------------------------------------------------
12,724 (b) Chiron Corp. $ 238,575
-----------------------------------------------------------------
1,200 (b) Datascope Corp. 21,600
-----------------------------------------------------------------
2,000 Dentsply International, Inc. 99,000
-----------------------------------------------------------------
1,000 Diagnostic Products Corp. 28,625
-----------------------------------------------------------------
3,100 (b) Forest Laboratories, Inc., Class A 105,787
-----------------------------------------------------------------
9,240 (b) Foundation Health Systems, Inc., Class A 249,480
-----------------------------------------------------------------
5,400 (b) Genzyme Corp. 124,875
-----------------------------------------------------------------
2,500 (b) HealthCare COMPARE Corp. 108,437
-----------------------------------------------------------------
3,400 (b) Healthcare & Retirement Corp. 107,525
-----------------------------------------------------------------
4,800 (b) Healthsource, Inc. 100,800
-----------------------------------------------------------------
3,934 (b) Horizon/CMS Healthcare Corp. 62,452
-----------------------------------------------------------------
9,100 Ivax Corp. 68,819
-----------------------------------------------------------------
9,200 (b) Laboratory Corporation of America Holdings 28,750
-----------------------------------------------------------------
3,100 McKesson Corp. 224,363
-----------------------------------------------------------------
5,400 (b) Medaphis Corp. 28,013
-----------------------------------------------------------------
9,100 Mylan Laboratories, Inc. 109,200
-----------------------------------------------------------------
4,500 (b) Nellcor, Inc. 76,500
-----------------------------------------------------------------
4,500 (b) NovaCare, Inc. 51,188
-----------------------------------------------------------------
5,700 (b) Oxford Health Plans, Inc. 375,488
-----------------------------------------------------------------
3,698 (b) PacifiCare Health Systems, Inc., Class B 296,765
-----------------------------------------------------------------
5,700 (b) Perrigo Co. 66,975
-----------------------------------------------------------------
1,800 (b) Scherer (R.P.) Corp. 82,800
-----------------------------------------------------------------
7,200 (b) Stryker Corp. 236,700
-----------------------------------------------------------------
160 Talbert Medical Management Corp., Rights 2,808
-----------------------------------------------------------------
4,094 (b) Value Health, Inc. 82,392
-----------------------------------------------------------------
5,200 (b) Vencor, Inc. 216,450
-----------------------------------------------------------------
</TABLE>
FEDERATED MID-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ----------------------------------------------------------------- -----------
<C> <C> <S> <C>
(A) COMMON STOCKS--CONTINUED
- ------------------------------------------------------------------------------------
HEALTH CARE--CONTINUED
-----------------------------------------------------------------
2,800 (b) Watson Pharmaceuticals, Inc. $ 100,100
----------------------------------------------------------------- -----------
Total 4,395,298
----------------------------------------------------------------- -----------
PRODUCER MANUFACTURING--5.8%
-----------------------------------------------------------------
4,600 American Financial Group, Inc. 160,425
-----------------------------------------------------------------
7,100 (b) American Power Conversion Corp. 136,675
-----------------------------------------------------------------
2,400 Ametek, Inc. 53,700
-----------------------------------------------------------------
4,400 Danaher Corp. 198,550
-----------------------------------------------------------------
7,100 Dial Corp. 110,050
-----------------------------------------------------------------
5,194 Diebold, Inc. 173,991
-----------------------------------------------------------------
1,800 Duriron, Inc. 44,775
-----------------------------------------------------------------
3,400 Federal Signal Corp. 82,875
-----------------------------------------------------------------
1,600 Goulds Pumps, Inc. 58,400
-----------------------------------------------------------------
2,300 HON Industries, Inc. 97,175
-----------------------------------------------------------------
3,700 Harsco Corp. 136,437
-----------------------------------------------------------------
4,980 Hubbell, Inc., Class B 216,630
-----------------------------------------------------------------
1,200 Kaydon Corp. 53,100
-----------------------------------------------------------------
2,000 Kennametal, Inc. 72,000
-----------------------------------------------------------------
2,700 Keystone International, Inc. 53,325
-----------------------------------------------------------------
2,233 Lancaster Colony Corp. 91,832
-----------------------------------------------------------------
1,900 Magnetek, Inc. 31,825
-----------------------------------------------------------------
4,951 Mark IV Industries, Inc. 115,107
-----------------------------------------------------------------
3,600 Miller Herman, Inc. 116,550
-----------------------------------------------------------------
2,200 Modine Manufacturing Co. 58,850
-----------------------------------------------------------------
2,600 (b) NewPort News Shipbuilding, Inc. 39,000
-----------------------------------------------------------------
1,300 Nordson Corp. 65,000
-----------------------------------------------------------------
3,700 Olin Corp. 152,163
-----------------------------------------------------------------
2,800 Pentair, Inc. 83,650
-----------------------------------------------------------------
</TABLE>
FEDERATED MID-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ----------------------------------------------------------------- -----------
<C> <C> <S> <C>
(A) COMMON STOCKS--CONTINUED
- ------------------------------------------------------------------------------------
PRODUCER MANUFACTURING--CONTINUED
-----------------------------------------------------------------
3,100 (b) Pittston Brink's Group $ 98,425
-----------------------------------------------------------------
1,750 Precision Castparts Corp. 93,625
-----------------------------------------------------------------
2,500 Stewart & Stevenson Services 60,000
-----------------------------------------------------------------
1,600 Tecumseh Products Co., Class A 86,400
-----------------------------------------------------------------
1,400 Teleflex, Inc. 80,850
-----------------------------------------------------------------
3,250 Trinity Industries, Inc. 85,313
-----------------------------------------------------------------
7,100 Viad Corp. 108,275
-----------------------------------------------------------------
2,000 Watts Industries, Inc., Class A 51,000
-----------------------------------------------------------------
3,200 York International Corp. 143,600
----------------------------------------------------------------- -----------
Total 3,209,573
----------------------------------------------------------------- -----------
RETAIL TRADE--5.4%
-----------------------------------------------------------------
1,900 (b) Ann Taylor Stores Corp. 46,075
-----------------------------------------------------------------
5,100 (b) Bed Bath & Beyond, Inc. 139,612
-----------------------------------------------------------------
3,200 (b) Best Buy Co., Inc. 43,200
-----------------------------------------------------------------
900 CPI Corp. 14,512
-----------------------------------------------------------------
3,550 Claire's Stores, Inc. 67,894
-----------------------------------------------------------------
5,025 (b) Consolidated Stores Corp. 201,000
-----------------------------------------------------------------
6,821 Dollar General Corp. 215,714
-----------------------------------------------------------------
2,000 Duty Free International, Inc. 28,250
-----------------------------------------------------------------
4,300 Family Dollar Stores, Inc. 112,337
-----------------------------------------------------------------
2,800 Fastenal Co. 109,200
-----------------------------------------------------------------
3,500 Fingerhut Companies, Inc. 52,062
-----------------------------------------------------------------
1,600 Hancock Fabrics, Inc. 19,200
-----------------------------------------------------------------
3,200 Hannaford Brothers Co. 102,000
-----------------------------------------------------------------
3,950 Heilig-Meyers Co. 59,250
-----------------------------------------------------------------
5,500 (b) Kohl's Corp. 268,813
-----------------------------------------------------------------
2,500 Lands' End, Inc. 66,875
-----------------------------------------------------------------
</TABLE>
FEDERATED MID-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ----------------------------------------------------------------- -----------
<C> <C> <S> <C>
(A) COMMON STOCKS--CONTINUED
- ------------------------------------------------------------------------------------
RETAIL TRADE--CONTINUED
-----------------------------------------------------------------
1,900 (b) MacFrugal's Bargains CloseOuts, Inc. $ 55,575
-----------------------------------------------------------------
2,300 (b) Meyer (Fred), Inc. 94,588
-----------------------------------------------------------------
2,600 (b) Micro Warehouse, Inc. 44,850
-----------------------------------------------------------------
2,700 (b) Nine West Group, Inc. 106,988
-----------------------------------------------------------------
11,725 (b) Office Depot, Inc. 164,150
-----------------------------------------------------------------
9,250 (b) Officemax Inc. 114,469
-----------------------------------------------------------------
3,000 (b) Payless ShoeSource, Inc. 127,500
-----------------------------------------------------------------
5,100 (b) Revco D. S., Inc. 221,850
-----------------------------------------------------------------
3,500 Ruddick Corp. 52,500
-----------------------------------------------------------------
7,500 (b) Service Merchandise, Inc. 19,688
-----------------------------------------------------------------
12,075 (b) Staples, Inc. 217,350
-----------------------------------------------------------------
2,600 Tiffany & Co. 103,025
-----------------------------------------------------------------
6,300 (b) Viking Office Products, Inc. 85,838
-----------------------------------------------------------------
2,400 (b) Waban, Inc. 64,200
----------------------------------------------------------------- -----------
Total 3,018,565
----------------------------------------------------------------- -----------
SERVICES--9.9%
-----------------------------------------------------------------
4,300 (b) ACNielsen Corp. 64,500
-----------------------------------------------------------------
5,759 (b) AES Corp. 375,775
-----------------------------------------------------------------
2,350 Banta Corp. 59,337
-----------------------------------------------------------------
4,600 Belo (A.H.) Corp., Series A 165,600
-----------------------------------------------------------------
3,200 Bob Evans Farms, Inc. 42,400
-----------------------------------------------------------------
5,775 (b) Brinker International, Inc. 67,134
-----------------------------------------------------------------
3,400 (b) Buffets, Inc. 25,925
-----------------------------------------------------------------
2,362 (b) Chris Craft Industries, Inc. 95,956
-----------------------------------------------------------------
3,500 Cintas Corp. 191,625
-----------------------------------------------------------------
7,400 (b) Circus Circus Enterprises, Inc. 178,525
-----------------------------------------------------------------
4,550 Cracker Barrel Old Country Store 121,712
-----------------------------------------------------------------
</TABLE>
FEDERATED MID-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ----------------------------------------------------------------- -----------
<C> <C> <S> <C>
(A) COMMON STOCKS--CONTINUED
- ------------------------------------------------------------------------------------
SERVICES--CONTINUED
-----------------------------------------------------------------
11,300 Equifax, Inc. $ 324,875
-----------------------------------------------------------------
1,900 (b) Golden Books Family Entertainment, Inc. 15,675
-----------------------------------------------------------------
1,400 Granite Construction, Inc. 27,825
-----------------------------------------------------------------
3,200 (b) Gtech Holdings Corp. 98,400
-----------------------------------------------------------------
1,100 Houghton Mifflin Co. 61,737
-----------------------------------------------------------------
1,700 (b) International Dairy Queen, Inc., Class A 36,125
-----------------------------------------------------------------
1,900 (b) Jacobs Engineering Group, Inc. 48,450
-----------------------------------------------------------------
2,875 Kelly Services, Inc., Class A 72,594
-----------------------------------------------------------------
900 Lawson Products, Inc. 20,363
-----------------------------------------------------------------
3,500 Lee Enterprises, Inc. 86,188
-----------------------------------------------------------------
3,000 (b) Lone Star Steakhouse & Saloon 59,250
-----------------------------------------------------------------
6,100 Manpower, Inc. 244,763
-----------------------------------------------------------------
2,000 Media General, Inc., Class A 59,000
-----------------------------------------------------------------
13,500 Mirage Resorts, Inc. 271,688
-----------------------------------------------------------------
3,700 Ogden Corp. 77,700
-----------------------------------------------------------------
6,000 Olsten Corp. 105,750
-----------------------------------------------------------------
6,000 Omnicom Group, Inc. 318,000
-----------------------------------------------------------------
3,600 (b) Outback Steakhouse, Inc. 70,650
-----------------------------------------------------------------
5,375 Paychex, Inc. 251,617
-----------------------------------------------------------------
3,800 (b) Promus Hotel Corp. 133,950
-----------------------------------------------------------------
6,100 Reynolds & Reynolds Co., Class A 126,575
-----------------------------------------------------------------
4,500 (b) Robert Half International, Inc. 176,625
-----------------------------------------------------------------
2,700 Rollins, Inc. 51,975
-----------------------------------------------------------------
1,500 Sbarro, Inc. 42,375
-----------------------------------------------------------------
1,200 (b) Scholastic Corp. 30,000
-----------------------------------------------------------------
5,500 Sensormatic Electronics Corp. 82,500
-----------------------------------------------------------------
4,200 Sothebys Holdings, Inc., Class A 66,675
-----------------------------------------------------------------
</TABLE>
FEDERATED MID-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ----------------------------------------------------------------- -----------
<C> <C> <S> <C>
(A) COMMON STOCKS--CONTINUED
- ------------------------------------------------------------------------------------
SERVICES--CONTINUED
-----------------------------------------------------------------
2,100 Standard Register $ 69,038
-----------------------------------------------------------------
3,900 Transocean Offshore, Inc. 236,438
-----------------------------------------------------------------
11,100 (b) USA Waste Services, Inc. 363,525
-----------------------------------------------------------------
4,900 (b) Unisource Worldwide, Inc. 72,275
-----------------------------------------------------------------
3,300 Wallace Computer, Inc. 88,275
-----------------------------------------------------------------
800 Washington Post Co., Class B 287,400
----------------------------------------------------------------- -----------
Total 5,466,765
----------------------------------------------------------------- -----------
TECHNOLOGY--13.7%
-----------------------------------------------------------------
9,700 (b) ADC Telecommunications, Inc. 253,412
-----------------------------------------------------------------
4,321 (b) AST Research, Inc. 22,280
-----------------------------------------------------------------
5,400 Adobe System, Inc. 211,275
-----------------------------------------------------------------
6,500 (b) Altera Corp. 322,156
-----------------------------------------------------------------
7,000 (b) America Online, Inc. 315,875
-----------------------------------------------------------------
11,866 (b) Analog Devices, Inc. 317,415
-----------------------------------------------------------------
3,775 (b) Arrow Electronics, Inc. 209,984
-----------------------------------------------------------------
7,400 (b) Atmel Corp. 184,075
-----------------------------------------------------------------
3,300 Avnet, Inc. 200,887
-----------------------------------------------------------------
7,600 (b) BMC Software, Inc. 328,700
-----------------------------------------------------------------
2,200 Beckman Instruments, Inc. 92,400
-----------------------------------------------------------------
6,200 (b) Cadence Design Systems, Inc. 198,400
-----------------------------------------------------------------
4,900 (b) Cirrus Logic, Inc. 45,019
-----------------------------------------------------------------
6,400 (b) Compuware Corp. 241,600
-----------------------------------------------------------------
4,300 (b) Covance, Inc. 63,425
-----------------------------------------------------------------
6,000 (b) Cypress Semiconductor Corp. 83,250
-----------------------------------------------------------------
1,700 (b) Exabyte Corp. 22,950
-----------------------------------------------------------------
3,400 (b) FIserv, Inc. 128,350
-----------------------------------------------------------------
2,500 GenCorp, Inc. 46,875
-----------------------------------------------------------------
</TABLE>
FEDERATED MID-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ----------------------------------------------------------------- -----------
<C> <C> <S> <C>
(A) COMMON STOCKS--CONTINUED
- ------------------------------------------------------------------------------------
TECHNOLOGY--CONTINUED
-----------------------------------------------------------------
3,200 (b) Imation Corp. $ 75,600
-----------------------------------------------------------------
2,100 (b) Information Resources, Inc. 27,825
-----------------------------------------------------------------
11,200 (b) Informix Corp. 81,900
-----------------------------------------------------------------
5,900 (b) Integrated Device Technology, Inc. 69,325
-----------------------------------------------------------------
2,600 Intelligent Electronics, Inc. 7,800
-----------------------------------------------------------------
5,600 Linear Technology Corp. 281,400
-----------------------------------------------------------------
3,500 (b) Litton Industries, Inc. 148,313
-----------------------------------------------------------------
4,600 (b) Maxim Integrated Products, Inc. 243,225
-----------------------------------------------------------------
4,800 (b) Mentor Graphics Corp. 33,900
-----------------------------------------------------------------
9,375 Molex, Inc. 290,625
-----------------------------------------------------------------
7,600 (b) NCR Corp. 220,400
-----------------------------------------------------------------
1,500 (b) OEA, Inc. 53,813
-----------------------------------------------------------------
3,800 (b) Octel Communications Corp. 61,750
-----------------------------------------------------------------
4,300 (b) Quantum Corp. 179,256
-----------------------------------------------------------------
1,900 (b) Rohr, Inc. 29,688
-----------------------------------------------------------------
700 (b) Sequa Corp., Class A 33,250
-----------------------------------------------------------------
2,500 (b) Sequent Computer System, Inc. 39,688
-----------------------------------------------------------------
4,200 (b) Solectron Corp. 240,975
-----------------------------------------------------------------
5,637 (b) Sterling Commerce, Inc. 145,859
-----------------------------------------------------------------
4,580 (b) Storage Technology Corp. 160,873
-----------------------------------------------------------------
1,800 (b) Stratus Computer, Inc. 69,975
-----------------------------------------------------------------
2,500 (b) Structural Dynamics Research Corp. 53,125
-----------------------------------------------------------------
3,100 (b) SunGuard Data Systems, Inc. 137,563
-----------------------------------------------------------------
4,500 Sundstrand Corp. 219,375
-----------------------------------------------------------------
4,100 (b) Symantec Corp. 58,938
-----------------------------------------------------------------
2,850 (b) Symbol Technologies, Inc. 92,269
-----------------------------------------------------------------
6,200 (b) Teradyne, Inc. 203,050
-----------------------------------------------------------------
</TABLE>
FEDERATED MID-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ----------------------------------------------------------------- -----------
<C> <C> <S> <C>
(A) COMMON STOCKS--CONTINUED
- ------------------------------------------------------------------------------------
TECHNOLOGY--CONTINUED
-----------------------------------------------------------------
1,400 Thiokol Corp. $ 91,350
-----------------------------------------------------------------
6,600 (b) U.S. Robotics Corp. 334,125
-----------------------------------------------------------------
2,300 Varian Association, Inc. 110,688
-----------------------------------------------------------------
1,800 (b) Verifone, Inc. 91,350
-----------------------------------------------------------------
4,545 (b) Vishay Intertechnology, Inc. 109,648
-----------------------------------------------------------------
5,500 (b) Xilinx, Inc. 269,500
----------------------------------------------------------------- -----------
Total 7,554,749
----------------------------------------------------------------- -----------
TRANSPORTATION--1.8%
-----------------------------------------------------------------
1,900 APL, Ltd. 55,812
-----------------------------------------------------------------
2,300 ASA Holdings Ltd. 48,875
-----------------------------------------------------------------
1,600 Airborne Freight Corp. 56,200
-----------------------------------------------------------------
1,100 (b) Alaska Air Group, Inc. 27,362
-----------------------------------------------------------------
3,400 Alexander and Baldwin, Inc. 90,100
-----------------------------------------------------------------
2,000 Arnold Industries, Inc. 29,500
-----------------------------------------------------------------
3,300 Consolidated Freightways, Inc. 98,175
-----------------------------------------------------------------
2,800 Hunt (J.B.) Transportation Services, Inc. 38,850
-----------------------------------------------------------------
4,550 Illinois Central Corp. 151,288
-----------------------------------------------------------------
2,800 Kansas City Southern Industries, Inc. 144,200
-----------------------------------------------------------------
2,700 Overseas Shipholding Group, Inc. 47,925
-----------------------------------------------------------------
4,600 Tidewater, Inc. 184,575
----------------------------------------------------------------- -----------
Total 972,862
----------------------------------------------------------------- -----------
UTILITIES--12.3%
-----------------------------------------------------------------
9,200 (b) 360 Communications Co. 159,850
-----------------------------------------------------------------
4,200 AGL Resources, Inc. 80,850
-----------------------------------------------------------------
2,700 Aliant Communications, Inc. 42,187
-----------------------------------------------------------------
9,100 Allegheny Power Systems, Inc. 238,875
-----------------------------------------------------------------
5,900 American Water Works Co., Inc. 125,375
-----------------------------------------------------------------
</TABLE>
FEDERATED MID-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ----------------------------------------------------------------- -----------
<C> <C> <S> <C>
(A) COMMON STOCKS--CONTINUED
- ------------------------------------------------------------------------------------
UTILITIES--CONTINUED
-----------------------------------------------------------------
3,900 Atlantic Energy, Inc. NJ $ 62,887
-----------------------------------------------------------------
1,100 Black Hills Corp. 30,937
-----------------------------------------------------------------
3,700 Brooklyn Union Gas Co. 101,287
-----------------------------------------------------------------
6,900 CMS Energy Corp. 219,075
-----------------------------------------------------------------
4,800 (b) Calenergy Co., Inc. 187,800
-----------------------------------------------------------------
1,700 Central LA Electric Co. 43,562
-----------------------------------------------------------------
2,400 Central Maine Power Co. 26,700
-----------------------------------------------------------------
4,500 Century Telephone Enterprises, Inc. 134,437
-----------------------------------------------------------------
3,600 Comsat Corp. 74,700
-----------------------------------------------------------------
4,500 Delmarva Power and Light Co. 78,750
-----------------------------------------------------------------
4,100 El Paso Natural Gas 238,312
-----------------------------------------------------------------
7,300 Florida Progress Corp. 224,475
-----------------------------------------------------------------
2,300 Hawaiian Electric Industries, Inc. 77,050
-----------------------------------------------------------------
2,800 Idaho Power Co. 81,900
-----------------------------------------------------------------
5,700 Illinova Corp. 128,250
-----------------------------------------------------------------
1,650 Indiana Energy, Inc. 40,013
-----------------------------------------------------------------
3,400 Ipalco Enterprises, Inc. 103,700
-----------------------------------------------------------------
4,600 Kansas City Power And Light Co. 129,950
-----------------------------------------------------------------
5,000 LG&E Energy Corp. 120,625
-----------------------------------------------------------------
5,000 MCN Corp. 143,125
-----------------------------------------------------------------
7,522 MidAmerican Energy Holdings Co. 125,994
-----------------------------------------------------------------
2,400 Minnesota Power And Light Co. 66,900
-----------------------------------------------------------------
4,100 Montana Power Co. 90,713
-----------------------------------------------------------------
16,900 (b) NEXTEL Communications, Inc. 222,869
-----------------------------------------------------------------
4,500 NIPSCO Industries, Inc. 177,750
-----------------------------------------------------------------
2,800 National Fuel Gas Co. 116,550
-----------------------------------------------------------------
3,600 Nevada Power Co. 72,000
-----------------------------------------------------------------
</TABLE>
FEDERATED MID-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ----------------------------------------------------------------- -----------
<C> <C> <S> <C>
(A) COMMON STOCKS--CONTINUED
- ------------------------------------------------------------------------------------
UTILITIES--CONTINUED
-----------------------------------------------------------------
4,900 New England Electric System $ 167,213
-----------------------------------------------------------------
5,200 New York State Electric and Gas Corp. 109,200
-----------------------------------------------------------------
9,600 Northeast Utilities Co. 79,200
-----------------------------------------------------------------
3,000 OGE Energy Corp. 124,500
-----------------------------------------------------------------
6,500 Pinnacle West Capital Corp. 185,250
-----------------------------------------------------------------
3,800 Portland General Corp. 138,700
-----------------------------------------------------------------
8,900 Potomac Electric Power Co. 200,250
-----------------------------------------------------------------
4,800 Public Service Co. Colo 186,000
-----------------------------------------------------------------
3,100 (b) Public Service Co. New Mexico 51,538
-----------------------------------------------------------------
6,300 Puget Sound Power & Light Co. 154,350
-----------------------------------------------------------------
3,100 Questar Corp. 117,800
-----------------------------------------------------------------
7,900 SCANA Corp. 190,588
-----------------------------------------------------------------
4,700 (b) Seagull Energy Corp. 80,488
-----------------------------------------------------------------
4,900 Southern New England Telecommunications 178,850
-----------------------------------------------------------------
3,100 Southwestern Public Service Co. 113,538
-----------------------------------------------------------------
1,900 TCA Cable TV, Inc. 60,800
-----------------------------------------------------------------
8,800 TECO Energy, Inc. 210,100
-----------------------------------------------------------------
4,600 Telephone and Data System, Inc. 170,200
-----------------------------------------------------------------
3,900 Utilicorp United, Inc. 101,400
-----------------------------------------------------------------
3,100 (b) Vanguard Cellular Systems, Inc., Class A 30,613
-----------------------------------------------------------------
2,300 WPL Holdings, Inc. 62,388
-----------------------------------------------------------------
3,300 Washington Gas Light Co. 75,900
-----------------------------------------------------------------
8,300 Wisconsin Energy Corp. 207,500
----------------------------------------------------------------- -----------
Total 6,763,814
----------------------------------------------------------------- -----------
TOTAL COMMON STOCKS (IDENTIFIED COST $39,155,122) 51,282,348
----------------------------------------------------------------- -----------
</TABLE>
FEDERATED MID-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- ----------------------------------------------------------------- -----------
<C> <C> <S> <C>
(C) U.S. GOVERNMENT OBLIGATIONS--0.4%
- ------------------------------------------------------------------------------------
$ 200,000 United States Treasury Bill, 9/11/1997 (IDENTIFIED COST $196,136) $ 196,178
----------------------------------------------------------------- -----------
(D) REPURCHASE AGREEMENT--6.2%
- ------------------------------------------------------------------------------------
3,435,000 BT Securities Corporation, 5.43%, dated 4/30/1997, due 5/1/1997
(AT AMORTIZED COST) 3,435,000
----------------------------------------------------------------- -----------
TOTAL INVESTMENTS (IDENTIFIED COST $42,786,258) (E) $54,913,526
----------------------------------------------------------------- -----------
</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 stock market and minimizing trading costs. The
total market value of open futures contracts is $3,988,925 at April 30,
1997, which represents 7.2% of net assets. Taking into consideration these
open futures contracts, the Fund's effective total exposure to the stocks is
100.0% of net assets.
(b) Non-income producing security.
(c) Represents a security held as collateral which is used to ensure the Fund is
able to satisfy the obligations of its outstanding long futures contracts.
(d) 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.
(e) The cost of investments for federal tax purposes amounts to $42,797,025. The
net unrealized appreciation of investments on a federal tax basis amounts to
$12,116,501 which is comprised of $15,396,495 appreciation and $3,279,994
depreciation at April 30, 1997.
Note: The categories of investments are shown as a percentage of net assets
($55,113,980) at April 30, 1997.
(See Notes which are an integral part of the Financial Statements)
FEDERATED MID-CAP FUND
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- --------------------------------------------------------------------------------
Total investments in securities, at value (identified cost $42,786,258, and tax
cost $42,797,025) $54,913,526
- --------------------------------------------------------------------------------
Cash 96,230
- --------------------------------------------------------------------------------
Income receivable 44,015
- --------------------------------------------------------------------------------
Receivable for shares sold 54,517
- --------------------------------------------------------------------------------
Deferred expenses 11,117
- -------------------------------------------------------------------------------- -----------
Total assets 55,119,405
- --------------------------------------------------------------------------------
LIABILITIES:
- --------------------------------------------------------------------------------
Payable for daily variation margin $ 5,425
- ---------------------------------------------------------------------- -------
Total liabilities 5,425
- -------------------------------------------------------------------------------- -----------
NET ASSETS for 3,950,809 shares outstanding $55,113,980
- -------------------------------------------------------------------------------- -----------
NET ASSETS CONSIST OF:
- --------------------------------------------------------------------------------
Paid-in capital $40,903,493
- --------------------------------------------------------------------------------
Net unrealized appreciation of investments and futures contracts 12,017,108
- --------------------------------------------------------------------------------
Accumulated net realized gain on investments and futures contracts 2,130,595
- --------------------------------------------------------------------------------
Undistributed net investment income 62,784
- -------------------------------------------------------------------------------- -----------
Total Net Assets $55,113,980
- -------------------------------------------------------------------------------- -----------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PROCEEDS PER SHARE:
($55,113,980 / 3,950,809 shares outstanding) $13.95
- -------------------------------------------------------------------------------- -----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FEDERATED MID-CAP FUND
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME:
- ----------------------------------------------------------------------------------------
Dividends $ 418,512
- ----------------------------------------------------------------------------------------
Interest 123,362
- ---------------------------------------------------------------------------------------- ----------
Total income 541,874
- ----------------------------------------------------------------------------------------
EXPENSES:
- ----------------------------------------------------------------------------------------
Management fee $118,711
- ----------------------------------------------------------------------------
Custodian fees 16,382
- ----------------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 13,207
- ----------------------------------------------------------------------------
Directors'/Trustees' fees 1,448
- ----------------------------------------------------------------------------
Auditing fees 7,240
- ----------------------------------------------------------------------------
Legal fees 1,991
- ----------------------------------------------------------------------------
Portfolio accounting fees 23,000
- ----------------------------------------------------------------------------
Shareholder services fee 74,194
- ----------------------------------------------------------------------------
Share registration costs 7,421
- ----------------------------------------------------------------------------
Printing and postage 8,507
- ----------------------------------------------------------------------------
Insurance premiums 543
- ----------------------------------------------------------------------------
Taxes 1,448
- ----------------------------------------------------------------------------
Miscellaneous 3,801
- ---------------------------------------------------------------------------- --------
Total expenses 277,893
- ----------------------------------------------------------------------------
Waivers--
- ----------------------------------------------------------------------------
Waiver of management fee $(33,230)
- -----------------------------------------------------------------
Waiver of shareholder services fee (65,291)
- ----------------------------------------------------------------- --------
Total waivers (98,521)
- ---------------------------------------------------------------------------- --------
Net expenses 179,372
- ---------------------------------------------------------------------------------------- ----------
Net investment income 362,502
- ---------------------------------------------------------------------------------------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FUTURES CONTRACTS:
- ----------------------------------------------------------------------------------------
Net realized gain on investments and futures contracts 2,277,101
- ----------------------------------------------------------------------------------------
Net change in unrealized appreciation of investments and futures contracts 1,497,182
- ---------------------------------------------------------------------------------------- ----------
Net realized and unrealized gain on investments and futures contracts 3,774,283
- ---------------------------------------------------------------------------------------- ----------
Change in net assets resulting from operations $4,136,785
- ---------------------------------------------------------------------------------------- ----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FEDERATED MID-CAP FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(UNAUDITED) YEAR ENDED
APRIL 30, 1997 OCTOBER 31, 1996
-------------- ----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- ---------------------------------------------------------
OPERATIONS--
- ---------------------------------------------------------
Net investment income $ 362,502 $ 740,093
- ---------------------------------------------------------
Net realized gain (loss) on investments and futures
contracts ($2,277,101 and $2,561,538 net gain,
respectively, as computed for federal tax purposes) 2,277,101 2,211,765
- ---------------------------------------------------------
Net change in unrealized appreciation and futures
contracts 1,497,182 5,352,243
- --------------------------------------------------------- -------------- ---------------
Change in net assets resulting from operations 4,136,785 8,304,101
- --------------------------------------------------------- -------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS--
- ---------------------------------------------------------
Distributions from net investment income (340,240) (846,844)
- ---------------------------------------------------------
Distributions from net realized gains and futures
contracts (2,561,934) (3,414,624)
- --------------------------------------------------------- -------------- ---------------
Change in net assets resulting from distributions to
shareholders (2,902,174) (4,261,468)
- --------------------------------------------------------- -------------- ---------------
SHARE TRANSACTIONS--
- ---------------------------------------------------------
Proceeds from sale of shares 15,879,075 52,748,566
- ---------------------------------------------------------
Net asset value of shares issued to shareholders in
payment of distributions declared 1,825,722 2,549,965
- ---------------------------------------------------------
Cost of shares redeemed (23,773,426) (61,972,769)
- --------------------------------------------------------- -------------- ---------------
Change in net assets resulting from share
transactions (6,068,629) (6,674,238)
- --------------------------------------------------------- -------------- ---------------
Change in net assets (4,834,018) (2,631,605)
- ---------------------------------------------------------
NET ASSETS:
- ---------------------------------------------------------
Beginning of period 59,947,998 62,579,603
- --------------------------------------------------------- -------------- ---------------
End of period (including undistributed net investment
income of $62,784 and $40,522, respectively) $ 55,113,980 $ 59,947,998
- --------------------------------------------------------- -------------- ---------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FEDERATED MID-CAP FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(UNAUDITED) YEAR ENDED OCTOBER 31,
APRIL 30, ---------------------------------------------------
1997 1996 1995 1994 1993 1992(A)
-------------- ------ ------ ------ ------ -------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $13.75 $12.78 $11.02 $11.57 $ 9.99 $10.00
- ---------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ---------------------------------------
Net investment income 0.09 0.18 0.22 0.21 0.25 0.08 0
- ---------------------------------------
Net realized and unrealized gain
(loss) on investments and futures
contracts 0.78 1.73 1.93 (0.07) 1.56 (0.08 6)
- --------------------------------------- ---------- ------ ------ ------ ------ ------
Total from investment operations 0.87 1.91 2.15 0.14 1.81 (0.00 6)
- --------------------------------------- ---------- ------ ------ ------ ------ ------
LESS DISTRIBUTIONS
- ---------------------------------------
Distributions from net investment
income (0.08) (0.20) (0.20) (0.19) (0.23) (0.00 4)
- ---------------------------------------
Distributions from net realized gain
on investments and futures contracts (0.59) (0.74) (0.19) (0.50) -- --
- --------------------------------------- ---------- ------ ------ ------ ------ ------
Total distributions (0.67) (0.94) (0.39) (0.69) (0.23) (0.00 4)
- --------------------------------------- ---------- ------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $13.95 $13.75 $12.78 $11.02 $11.57 $ 9.99
- --------------------------------------- ---------- ------ ------ ------ ------ ------
TOTAL RETURN (B) 6.56% 15.80% 20.12% 1.25% 17.33% 0.00%
- ---------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ---------------------------------------
Expenses 0.60%* 0.60% 0.60% 0.54% 0.00% 0.00%
- ---------------------------------------
Net investment income 1.21%* 1.31% 1.89% 1.84% 2.33% 0.93% *
- ---------------------------------------
Expense waiver/reimbursement(c) 0.33%* 0.34% 0.41% 0.59% 1.75% 0.40% *
- ---------------------------------------
SUPPLEMENTAL DATA
- ---------------------------------------
Net assets, end of period (000
omitted) $55,114 $59,948 $62,580 $44,012 $16,192 $3
- ---------------------------------------
Average commission rate paid(d) $0.0455 $0.0432 -- -- -- --
- ---------------------------------------
Portfolio turnover 7% 17% 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.
(d) Represents total commissions paid on portfolio securities divided by total
portfolio shares purchased or sold on which commissions were charged.
(See Notes which are an integral part of the Financial Statements)
FEDERATED MID-CAP FUND
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1997 (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.
(2) SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
INVESTMENT VALUATIONS--Listed equity securities are valued at the last sale
price reported on a national securities exchange. Short-term securities are
valued at the prices provided by an independent pricing service. However,
short-term securities with remaining maturities of sixty days or less at
the time of purchase may be valued at amortized cost, which approximates
fair market value.
REPURCHASE AGREEMENTS--It is the policy of the Fund to require the
custodian bank to take possession, to have legally segregated in the
Federal Reserve Book Entry System, or to have segregated within the
custodian bank's vault, all securities held as collateral under repurchase
agreement transactions. Additionally, procedures have been established by
the Fund to monitor, on a daily basis, the market value of each repurchase
agreement's collateral to ensure that the value of collateral at least
equals the repurchase price to be paid under the repurchase agreement
transaction.
The Fund will only enter into repurchase agreements with banks and other
recognized financial institutions, such as broker/dealers, which are deemed
by the Fund's adviser to be creditworthy pursuant to the guidelines and/or
standards reviewed or established by the Board of Trustees (the
"Trustees"). Risks may arise from the potential inability of counterparties
to honor the terms of the repurchase agreement. Accordingly, the Fund could
receive less than the repurchase price on the sale of collateral
securities.
INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS--Interest income and expenses
are accrued daily. Bond premium and discount, if applicable, are amortized
as required by the Internal
FEDERATED MID-CAP FUND
- --------------------------------------------------------------------------------
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 over a period not to exceed 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, 1997, the Fund had realized gains of $536,600 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, 1997, the Fund had outstanding futures contracts as set forth
below:
<TABLE>
<CAPTION>
CONTRACTS TO UNREALIZED
EXPIRATION DATE DELIVER/RECEIVE POSITION (DEPRECIATION)
---------------- ------------------------- ----------- ---------------
<S> <C> <C> <C>
June 20, 1997 31 S&P 400 Index Futures Long $(110,160)
</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 MID-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, 1997 OCTOBER 31, 1996
- ------------------------------------------------- ---------------- ----------------
<S> <C> <C>
Shares sold 1,119,953 4,023,215
- -------------------------------------------------
Shares issued to shareholders in payment of
distributions declared 135,596 206,046
- -------------------------------------------------
Shares redeemed (1,663,090) (4,766,402)
- ------------------------------------------------- -------------- --------------
Net change resulting from share transactions (407,541) (537,141)
- ------------------------------------------------- -------------- --------------
</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 0.40% 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 0.035% 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.
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--Federated Services
Company ("FServ"), through its subsidiary, Federated Shareholder Services
Company ("FSSC") serves as transfer and dividend disbursing agent for the Fund.
The fee paid to FSSC is based on the size, type, and number of accounts and
transactions made by shareholders.
PORTFOLIO ACCOUNTING FEES--FServ maintains the Fund's accounting records for
which it receives a fee. The fee is based on the level of the Fund's average
daily net assets for the period, plus out-of-pocket expenses.
GENERAL--Certain of the Officers and Trustees of the Trust are Officers and
Directors or Trustees of the above companies.
FEDERATED MID-CAP FUND
- --------------------------------------------------------------------------------
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the
period ended April 30, 1997, were as follows:
<TABLE>
<S> <C>
- --------------------------------------------------------------------------------
PURCHASES $3,896,413
- -------------------------------------------------------------------------------- ----------
SALES $9,731,898
- -------------------------------------------------------------------------------- ----------
</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
S. Elliott Cohan
Assistant Secretary
</TABLE>
Mutual funds are not bank deposits or obligations, are not guaranteed by any
bank, and are not insured or guaranteed by the U.S. government, the Federal
Deposit Insurance Corporation, the Federal Reserve Board, or any other
government agency. Investment in mutual funds involves investment risk,
including possible loss of principal.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by the fund's prospectus which contains facts concerning
its objective and policies, management fees, expenses and other information.
PRESIDENT'S MESSAGE
- --------------------------------------------------------------------------------
Dear Shareholder:
I am pleased to present the Semi-Annual Report to Shareholders of Federated
Mini-Cap Fund, a portfolio of Federated Index Trust, for the six-month reporting
period from November 1, 1996 through April 30, 1997. The report begins with an
investment review, followed by the fund's portfolio of investments and its
financial statements.
As its name implies, Federated Mini-Cap Fund gives you a highly efficient way to
pursue the broad performance of the small-company stock market. The fund is
managed passively to closely mirror the Russell 2000 Index,* an unmanaged index
consisting of the 2,000 common stocks that fall just below the top 1,000 large-
and mid-cap stocks.
The reporting period was a time to remember that the best measure of
small-company stock performance is years, rather than months. In pursuit of
long-term growth, investors in small-company stocks will experience short-term
volatility, and the six-month reporting period was a relatively volatile one for
small-company stocks.+ As a result, due to a decline in the value of the fund's
holdings, the fund's total return was 0.83%.** Over the reporting period, the
fund paid dividend income distributions totaling $0.07 per share and capital
gains distributions totaling $1.23 per share. The fund's total net assets stood
at $115.6 million on the last day of the reporting period.
Thank you for putting your money to work in small-company stocks through the
diversification and professional management of Federated Mini-Cap Fund. As
always, we invite your comments and suggestions.
Sincerely,
LOGO
Glen R. Johnson
President
June 15, 1997
* Actual investments can not be made in an index. The Russell 2000(R) Small
Stock Index is a trademark/service mark of the Frank Russell Company.
Russell(TM) 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.
** Performance quoted reflects past performance and is not indicative of future
results. Investment return and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than their
original cost.
+ Small Cap Stocks have historically experienced greater volatility than
average.
1
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
The fund's total return for the six-month reporting period ended April 30, 1997,
was 0.83%.* The target index, the Russell 2000 Index (the "Index"), had a total
return of 1.52% during the reporting 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 climb in the last six months despite
temporary setbacks from interest rate fears in December 1996 and March 1997. In
December, the Federal Reserve Board (the "Fed") Chairman's comment that the U.S.
stock market was fueled by "irrational exuberance" sent the market lower as
investors interpreted the comment as a signal of a likely hike in interest
rates. In March, the Fed raised its target for federal funds by a modest 1/4%,
less than some analysts expected.
Most investors have apparently shrugged off fears of increasing interest rates
for now, focusing on favorable economic data and strong corporate earnings. Cash
flows into equity mutual funds have remained strong, also supporting the market.
During the last six months, small company stocks have not fared as well as large
company stocks. One reason may be that the stocks of small technology companies
have been especially hard-hit during market downturns, so many would-be buyers
have been put off by their apparent high level of risk. Other sectors that did
poorly include integrated oil and utilities, while consumer staples, producer
durables, and auto/transportation were among the best performing sectors in the
Index.
* 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.
FEDERATED MINI-CAP FUND
PORTFOLIO OF INVESTMENTS
APRIL 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--91.9%
- -----------------------------------------------------------------------------------
BASIC INDUSTRY--6.6%
----------------------------------------------------------------
2,800 AMCOL International Corp. $ 47,600
----------------------------------------------------------------
2,600 (a) Advanced Polymer Systems, Inc. 19,175
----------------------------------------------------------------
4,200 Albany International Corp., Class A 84,525
----------------------------------------------------------------
8,300 (a) Amax Gold, Inc. 46,688
----------------------------------------------------------------
700 Ameron, Inc. 34,213
----------------------------------------------------------------
2,900 Aptargroup, Inc. 116,000
----------------------------------------------------------------
14,300 (a) Armco, Inc. 50,050
----------------------------------------------------------------
4,700 BMC Industries, Inc. 136,300
----------------------------------------------------------------
5,000 Ball Corp. 134,375
----------------------------------------------------------------
2,400 Barnett, Inc. 44,400
----------------------------------------------------------------
37,600 Battle Mountain Gold Co. 216,200
----------------------------------------------------------------
4,700 Birmingham Steel Corp. 68,738
----------------------------------------------------------------
3,600 Brady (W.H.) Co. 90,450
----------------------------------------------------------------
2,700 Brush Wellman, Inc. 51,300
----------------------------------------------------------------
2,600 (a) Buckeye Cellulose Corp. 78,325
----------------------------------------------------------------
10,300 (a) Burlington Industries, Inc. 105,575
----------------------------------------------------------------
3,100 CalMat Co. 55,413
----------------------------------------------------------------
5,000 Calgene, Inc. 39,844
----------------------------------------------------------------
6,600 Calgon Carbon Corp. 80,850
----------------------------------------------------------------
1,950 Cambrex Corp. 66,056
----------------------------------------------------------------
4,100 Caraustar Industries, Inc. 103,525
----------------------------------------------------------------
2,600 Carpenter Technology Corp. 105,625
----------------------------------------------------------------
1,800 (a) Centex Construction Products, Inc. 33,300
----------------------------------------------------------------
900 Chaparral Steel Co. 10,575
----------------------------------------------------------------
1,400 Chemed Corp. 47,250
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
BASIC INDUSTRY--CONTINUED
----------------------------------------------------------------
3,400 Chesapeake Corp. $ 116,025
----------------------------------------------------------------
1,800 Cleveland Cliffs, Inc. 76,275
----------------------------------------------------------------
3,600 Coeur d'Alene Mines Corp. 49,500
----------------------------------------------------------------
11,500 (a) Collins & Aikman Corp. 109,250
----------------------------------------------------------------
900 Columbus McKinnion Corporation 16,313
----------------------------------------------------------------
3,100 (a) Cone Mills Corp. 22,863
----------------------------------------------------------------
12,001 Crompton and Knowles Corp. 261,022
----------------------------------------------------------------
2,200 Dekalb Genetics Corp., Class B 138,600
----------------------------------------------------------------
4,398 Delta & Pine Land Co. 109,950
----------------------------------------------------------------
3,900 Dexter Corp. 116,513
----------------------------------------------------------------
3,400 Donaldson Company, Inc. 116,450
----------------------------------------------------------------
2,200 (a) Dravo Corp. 21,175
----------------------------------------------------------------
1,400 Elcor Corp. 36,575
----------------------------------------------------------------
2,000 (a) Embrace Systems Corp. 1,000
----------------------------------------------------------------
1,700 (a) Energy Conversion Devices, Inc. 14,875
----------------------------------------------------------------
700 Fab Industries, Inc. 21,350
----------------------------------------------------------------
4,300 Ferro Corp. 133,838
----------------------------------------------------------------
1,500 (a) Fibreboard Corp. 55,125
----------------------------------------------------------------
1,500 (a) Fieldcrest Cannon, Inc. 27,000
----------------------------------------------------------------
1,100 Florida Rock Industries, Inc. 33,688
----------------------------------------------------------------
2,300 (a) Foamex International, Inc. 33,063
----------------------------------------------------------------
2,300 Fuller (H.B.) Co. 123,338
----------------------------------------------------------------
1,500 Furon Co. 31,313
----------------------------------------------------------------
8,600 (a) Gaylord Container Corp. 47,838
----------------------------------------------------------------
1,000 (a) Geneva Steel Co., Class A 2,250
----------------------------------------------------------------
3,500 Geon Co. 76,563
----------------------------------------------------------------
4,258 (a) Getchell Gold Corp. 163,401
----------------------------------------------------------------
4,300 Glatfelter (P.H.) Co. 67,188
----------------------------------------------------------------
</TABLE>
f
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
BASIC INDUSTRY--CONTINUED
----------------------------------------------------------------
3,000 Greif Brothers Corp., Class A $ 76,500
----------------------------------------------------------------
2,000 Guilford Mills, Inc. 56,500
----------------------------------------------------------------
8,400 (a) Hecla Mining Co. 45,150
----------------------------------------------------------------
1,800 Imco Recycling, Inc. 27,000
----------------------------------------------------------------
2,014 (a) Intermagnetics General Corp. 17,623
----------------------------------------------------------------
1,100 (a) International Imaging Materials, Inc. 18,700
----------------------------------------------------------------
2,700 (a) Ionics, Inc. 124,200
----------------------------------------------------------------
2,900 J&L Specialty Steel, Inc. 36,250
----------------------------------------------------------------
1,600 (a) Kaiser Aluminum Corp. 17,200
----------------------------------------------------------------
500 (a) Landec Corp. 2,625
----------------------------------------------------------------
5,000 Lawter International, Inc. 53,125
----------------------------------------------------------------
1,100 Learonal 24,063
----------------------------------------------------------------
3,150 Lilly Industrial, Inc., Class A 54,731
----------------------------------------------------------------
700 Liqui Box Corp. 22,750
----------------------------------------------------------------
1,900 Lone Star Industries, Inc. 75,050
----------------------------------------------------------------
3,400 (a) Lone Star Technologies, Inc. 63,325
----------------------------------------------------------------
8,500 Longview Fibre Co. 137,063
----------------------------------------------------------------
2,400 Lukens, Inc. 45,900
----------------------------------------------------------------
2,900 (a) Lydall, Inc. 58,725
----------------------------------------------------------------
900 MacDermid, Inc. 38,700
----------------------------------------------------------------
2,600 (a) Material Sciences Corp. 38,675
----------------------------------------------------------------
1,000 (a) Maxxam, Inc. 43,000
----------------------------------------------------------------
1,000 (a) McWhorter Technologies, Inc. 22,000
----------------------------------------------------------------
2,600 Medusa Corp. 98,475
----------------------------------------------------------------
2,100 (a) Mercer International, Inc. 17,325
----------------------------------------------------------------
500 Mine Safety Appliances Co. 28,250
----------------------------------------------------------------
3,700 Minerals Technologies, Inc. 129,963
----------------------------------------------------------------
4,569 Mississippi Chemical Corp. 100,518
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
BASIC INDUSTRY--CONTINUED
----------------------------------------------------------------
1,553 Mosinee Paper Corp. $ 62,897
----------------------------------------------------------------
2,700 (a) Mycogen Corp. 48,938
----------------------------------------------------------------
600 NCH, Corp. 37,800
----------------------------------------------------------------
3,900 NL Industries, Inc. 37,050
----------------------------------------------------------------
3,500 (a) National Steel Corp., Class B 34,563
----------------------------------------------------------------
2,100 Northland Cranberries, Inc., Class A 24,150
----------------------------------------------------------------
2,000 O'Sullivan Corp. 16,625
----------------------------------------------------------------
3,150 OM Group, Inc. 87,806
----------------------------------------------------------------
1,600 Optical Coating Laboratories, Inc. 15,000
----------------------------------------------------------------
3,800 Oregon Steel Mills 62,700
----------------------------------------------------------------
0 Pall Corp. 1
----------------------------------------------------------------
3,957 (a) Paxar Corp. 76,172
----------------------------------------------------------------
1,000 Petrolite Corp. 60,625
----------------------------------------------------------------
3,050 Pittway Corp., Class A 162,413
----------------------------------------------------------------
2,200 Pope & Talbot, Inc. 32,725
----------------------------------------------------------------
700 Puerto Rican Cement Co., Inc. 21,263
----------------------------------------------------------------
2,000 Quanex Corp. 50,500
----------------------------------------------------------------
3,100 Rexene Corp. 45,725
----------------------------------------------------------------
5,550 Rock-Tenn Co. 79,083
----------------------------------------------------------------
1,300 (a) Rogers Corp. 38,513
----------------------------------------------------------------
1,400 Rouge Steel Co., Class A 22,050
----------------------------------------------------------------
2,000 (a) Royal Gold, Inc. 17,500
----------------------------------------------------------------
800 Schnitzer Steel Industries, Inc., Class A 17,800
----------------------------------------------------------------
6,200 Schulman (A.), Inc. 117,800
----------------------------------------------------------------
2,500 (a) Shorewood Packaging Corp. 47,500
----------------------------------------------------------------
3,400 Southdown, Inc. 122,825
----------------------------------------------------------------
2,700 Spartech Corp. 31,388
----------------------------------------------------------------
2,300 Springs Industries, Inc., Class A 107,525
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
BASIC INDUSTRY--CONTINUED
----------------------------------------------------------------
1,500 Stepen Chemical Co. $ 27,563
----------------------------------------------------------------
2,500 (a) Stillwater Mining Co. 50,313
----------------------------------------------------------------
40,500 (a) Sunshine Mining Co. 35,438
----------------------------------------------------------------
1,500 Tejon Ranch Co. 26,250
----------------------------------------------------------------
3,700 Texas Industries, Inc. 85,100
----------------------------------------------------------------
800 (a) Tremont Corp. 28,000
----------------------------------------------------------------
1,900 (a) U.S. Can Corp. 28,975
----------------------------------------------------------------
2,000 Universal Forest Products, Inc. 25,500
----------------------------------------------------------------
5,000 Valspar Corp. 142,500
----------------------------------------------------------------
3,600 (a) WHX Corp. 20,700
----------------------------------------------------------------
4,575 Wausau Paper Mills Co. 80,063
----------------------------------------------------------------
4,500 Wellman, Inc. 70,875
----------------------------------------------------------------
2,800 (a) WestPoint Stevens, Inc. 109,550
----------------------------------------------------------------
1,300 (a) Zoltek Cos., Inc. 37,639
---------------------------------------------------------------- ------------
Total 7,609,482
---------------------------------------------------------------- ------------
CONSUMER DURABLES--4.5%
----------------------------------------------------------------
2,900 (a) 3DO Co. 9,969
----------------------------------------------------------------
5,300 (a) Acclaim Entertainment, Inc. 17,888
----------------------------------------------------------------
1,100 Action Performance Companies, Inc. 29,013
----------------------------------------------------------------
2,000 (a) Activision, Inc. 23,500
----------------------------------------------------------------
1,025 American Homestar Corporation 16,656
----------------------------------------------------------------
4,500 Apogee Enterprises, Inc. 67,500
----------------------------------------------------------------
3,650 Arctic Cat, Inc. 36,500
----------------------------------------------------------------
3,700 Arvin Industries, Inc. 96,200
----------------------------------------------------------------
1,100 (a) Avatar Holdings, Inc. 35,750
----------------------------------------------------------------
1,800 Barnes Group, Inc. 41,850
----------------------------------------------------------------
2,200 Bassett Furniture Industries, Inc. 49,775
----------------------------------------------------------------
2,300 Borg-Warner Automotive, Inc. 96,600
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
CONSUMER DURABLES--CONTINUED
----------------------------------------------------------------
2,200 Breed Technologies, Inc. $ 39,875
----------------------------------------------------------------
2,800 (a) Broderbund Software, Inc. 52,500
----------------------------------------------------------------
1,600 Bush Industries, Inc., Class A 32,200
----------------------------------------------------------------
2,400 CLARCOR, Inc. 53,100
----------------------------------------------------------------
1,100 (a) Cannondale Corp. 21,450
----------------------------------------------------------------
4,600 Carlisle Cos., Inc. 129,375
----------------------------------------------------------------
2,500 (a) Castle & Cooke, Inc. 34,375
----------------------------------------------------------------
2,075 Cavalier Homes, Inc. 20,491
----------------------------------------------------------------
4,800 Centex Corp. 172,800
----------------------------------------------------------------
8,072 (a) Champion Enterprises, Inc. 123,098
----------------------------------------------------------------
5,366 (a) Chyron Corporation 21,464
----------------------------------------------------------------
2,600 Coachmen Industries, Inc. 44,525
----------------------------------------------------------------
1,100 (a) Coastcast Corp. 10,725
----------------------------------------------------------------
700 (a) Comforce Corp. 4,200
----------------------------------------------------------------
1,100 Continental Homes Holding Corp. 17,463
----------------------------------------------------------------
2,000 Cross (A.T.) Co., Class A 19,750
----------------------------------------------------------------
2,900 (a) Culligan Water Technologies 118,538
----------------------------------------------------------------
3,054 D. R. Horton, Inc. 29,777
----------------------------------------------------------------
3,500 (a) Department 56, Inc. 65,625
----------------------------------------------------------------
2,400 Ethan Allen Interiors, Inc. 106,200
----------------------------------------------------------------
3,000 Exide Corp. 48,375
----------------------------------------------------------------
6,900 Fedders Corp. 40,538
----------------------------------------------------------------
5,700 Federal-Mogul Corp. 157,463
----------------------------------------------------------------
800 (a) Fossil, Inc. 10,400
----------------------------------------------------------------
9,900 (a) Furniture Brands International, Inc. 146,025
----------------------------------------------------------------
4,900 (a) Gentex Corp. 88,200
----------------------------------------------------------------
2,520 Harman International Industries, Inc. 96,390
----------------------------------------------------------------
2,200 Huffy Corp. 28,325
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
CONSUMER DURABLES--CONTINUED
----------------------------------------------------------------
1,500 (a) ITI Technologies, Inc. $ 22,313
----------------------------------------------------------------
5,600 Jostens, Inc. 133,700
----------------------------------------------------------------
2,317 K2, Inc. 60,532
----------------------------------------------------------------
6,500 Kaufman & Broad Homes Corp. 90,188
----------------------------------------------------------------
1,100 (a) L.L. Knickerbocker Company 5,638
----------------------------------------------------------------
2,200 La-Z Boy Chair Co. 71,775
----------------------------------------------------------------
4,400 Lennar Corp. 118,250
----------------------------------------------------------------
2,900 Lewis Galoob Toys, Inc. 48,938
----------------------------------------------------------------
2,400 Libbey, Inc. 74,400
----------------------------------------------------------------
3,500 (a) Lo-Jack Corp. 34,563
----------------------------------------------------------------
5,600 Mascotech, Inc. 107,100
----------------------------------------------------------------
1,200 Matthews International Corp., Class A 35,100
----------------------------------------------------------------
1,300 (a) Mikasa, Inc. 14,788
----------------------------------------------------------------
3,500 (a) Mohawk Industries, Inc. 78,313
----------------------------------------------------------------
2,047 Myers Industries, Inc. 35,823
----------------------------------------------------------------
1,800 (a) NVR, Inc. 22,950
----------------------------------------------------------------
600 National Presto Industries, Inc. 21,900
----------------------------------------------------------------
1,600 Oneida Ltd. 29,600
----------------------------------------------------------------
3,300 Outboard Marine Corp. 42,900
----------------------------------------------------------------
1,900 (a) Palm Harbor Homes, Inc. 46,550
----------------------------------------------------------------
4,500 Polaris Industries Partners, L.P., Class A 123,750
----------------------------------------------------------------
2,700 Pulte Corp. 76,950
----------------------------------------------------------------
1,599 (a) Recoton Corp. 18,389
----------------------------------------------------------------
1,600 Rival Co. 21,800
----------------------------------------------------------------
1,600 Russ Berrie & Co., Inc. 30,800
----------------------------------------------------------------
2,500 Ryland Group, Inc. 29,063
----------------------------------------------------------------
1,900 SPX Corp. 103,788
----------------------------------------------------------------
1,900 (a) Samsonite Corp. 78,850
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
CONSUMER DURABLES--CONTINUED
----------------------------------------------------------------
3,100 (a) Scotts Co. $ 79,438
----------------------------------------------------------------
2,700 Simpson Industries, Inc. 24,975
----------------------------------------------------------------
1,400 Skyline Corp. 29,575
----------------------------------------------------------------
2,500 Smith (A.O.) Corp. 86,875
----------------------------------------------------------------
4,200 (a) Sola International, Inc. 105,000
----------------------------------------------------------------
1,500 (a) Southern Energy Homes, Inc. 15,563
----------------------------------------------------------------
4,600 (a) Spectrum Holobyte, Inc. 28,175
----------------------------------------------------------------
1,300 Standard Motor Products, Inc. 17,875
----------------------------------------------------------------
4,900 Standard Pacific Corp. 39,200
----------------------------------------------------------------
2,325 Standard Products Co. 50,859
----------------------------------------------------------------
2,900 Stanhome, Inc. 87,725
----------------------------------------------------------------
2,700 Stant Corp. 58,388
----------------------------------------------------------------
1,200 Starrett (L.S.) Co., Class A 35,400
----------------------------------------------------------------
3,200 Sturm Ruger & Co., Inc. 49,200
----------------------------------------------------------------
3,500 Superior Industries International, Inc. 83,125
----------------------------------------------------------------
3,950 (a) TBC Corp. 29,625
----------------------------------------------------------------
800 Thor Industries, Inc. 17,300
----------------------------------------------------------------
3,700 (a) Toll Brothers, Inc. 67,525
----------------------------------------------------------------
4,600 (a) Top Source Technologies, Inc. 8,050
----------------------------------------------------------------
6,900 (a) Topps Co. 26,738
----------------------------------------------------------------
2,000 Toro Co. 70,000
----------------------------------------------------------------
2,900 (a) Toy Biz, Inc., Class A 28,275
----------------------------------------------------------------
1,901 (a) U.S. Home Corp. 46,812
----------------------------------------------------------------
1,100 WD 40 Co. 63,525
----------------------------------------------------------------
1,400 Walbro Corp. 23,100
----------------------------------------------------------------
2,900 Webb (Del) Corp. 45,675
----------------------------------------------------------------
3,000 Windmere Corp. 39,375
----------------------------------------------------------------
2,400 Winnebago Industries, Inc. 15,000
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
CONSUMER DURABLES--CONTINUED
----------------------------------------------------------------
2,325 Wynns International, Inc. $ 56,091
----------------------------------------------------------------
2,200 X-Rite, Inc. 36,300
----------------------------------------------------------------
4,413 (a) Zenith Electronics Corp. 47,440
---------------------------------------------------------------- ------------
Total 5,245,363
---------------------------------------------------------------- ------------
CONSUMER NON-DURABLES--3.5%
----------------------------------------------------------------
3,200 Authentic Fitness Corp. 46,400
----------------------------------------------------------------
2,134 Block Drug, Inc., Class A 89,628
----------------------------------------------------------------
2,900 Brown Group, Inc. 48,213
----------------------------------------------------------------
1,000 (a) Bush Boake Allen, Inc. 27,500
----------------------------------------------------------------
2,800 (a) Canandaigua Wine Co., Inc., Class B 79,100
----------------------------------------------------------------
3,400 (a) ChemFirst, Inc. 78,625
----------------------------------------------------------------
4,900 Chiquita Brands International 70,438
----------------------------------------------------------------
2,900 Church and Dwight, Inc. 73,950
----------------------------------------------------------------
900 Coca-Cola Bottling Co. 34,875
----------------------------------------------------------------
6,200 Coors Adolph Co., Class B 141,825
----------------------------------------------------------------
400 (a) Culbro Corp. 38,600
----------------------------------------------------------------
6,600 Dean Foods Co. 243,375
----------------------------------------------------------------
5,550 Dimon, Inc. 109,613
----------------------------------------------------------------
1,500 (a) Donnkenny, Inc. 5,344
----------------------------------------------------------------
1,800 Dreyers Grand Ice Cream, Inc. 56,447
----------------------------------------------------------------
1,500 Earthgrains Co. 85,875
----------------------------------------------------------------
100 Farmer Brothers Co. 13,100
----------------------------------------------------------------
9,450 Flowers Industries, Inc. 230,344
----------------------------------------------------------------
2,600 (a) Gibson Greetings, Inc. 53,300
----------------------------------------------------------------
4,200 (a) Gymboree Corp. 116,288
----------------------------------------------------------------
4,100 (a) Hartmarx Corp. 32,800
----------------------------------------------------------------
2,100 Herbalife International, Inc. 33,863
----------------------------------------------------------------
3,500 Hudson Foods, Inc., Class A 54,250
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
CONSUMER NON-DURABLES--CONTINUED
----------------------------------------------------------------
2,700 International Multifoods Corp. $ 67,163
----------------------------------------------------------------
3,100 Justin Industries, Inc. 34,488
----------------------------------------------------------------
3,400 Kellwood Co. 80,750
----------------------------------------------------------------
1,100 (a) Kenneth Cole Productions, Inc., Class A 18,288
----------------------------------------------------------------
2,500 Lance, Inc. 45,313
----------------------------------------------------------------
1,000 (a) Marisa Christina, Inc. 9,750
----------------------------------------------------------------
2,200 (a) Martek Biosciences Corp. 32,175
----------------------------------------------------------------
2,200 Michael Foods, Inc. 23,100
----------------------------------------------------------------
1,300 (a) Mondavi Robert Corp., Class A 48,750
----------------------------------------------------------------
1,200 (a) Morningstar Group, Inc. 29,100
----------------------------------------------------------------
2,800 (a) NBTY, Inc. 53,200
----------------------------------------------------------------
2,574 Natures Sunshine Products, Inc. 35,071
----------------------------------------------------------------
6,200 (a) Nautica Enterprise, Inc. 137,175
----------------------------------------------------------------
1,500 OshKosh B'Gosh, Inc., Class A 25,500
----------------------------------------------------------------
1,800 (a) Paragon Trade Brands, Inc. 28,800
----------------------------------------------------------------
2,700 Pepsi-Cola Puerto Rico Bottling Co., Class B 13,163
----------------------------------------------------------------
1,400 (a) Pete's Brewing Co. 7,525
----------------------------------------------------------------
3,900 Phillips Van Heusen Corp. 51,188
----------------------------------------------------------------
700 Pilgrims Pride Corp. 7,175
----------------------------------------------------------------
3,900 (a) Playtex Products, Inc. 36,075
----------------------------------------------------------------
1,100 (a) Quiksilver, Inc. 23,925
----------------------------------------------------------------
5,100 (a) Ralcorp Holdings, Inc. 52,275
----------------------------------------------------------------
1,500 (a) Redhook Ale Brewery, Inc. 12,938
----------------------------------------------------------------
1,200 Riviana Foods, Inc. 19,200
----------------------------------------------------------------
1,200 Sanderson Farms, Inc. 17,100
----------------------------------------------------------------
3,400 Savannah Foods & Industries, Inc. 48,450
----------------------------------------------------------------
2,600 (a) Schweitzer-Mauduit International, Inc. 84,825
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
CONSUMER NON-DURABLES--CONTINUED
----------------------------------------------------------------
100 Seaboard Corp. $ 24,750
----------------------------------------------------------------
2,700 (a) Smithfield Foods, Inc. 124,538
----------------------------------------------------------------
4,800 Smucker (J.M.) Co., Class A 84,000
----------------------------------------------------------------
2,500 St. John Knits, Inc. 95,938
----------------------------------------------------------------
1,900 (a) Starter Corp. 9,025
----------------------------------------------------------------
8,200 Stride Rite Corp. 112,750
----------------------------------------------------------------
2,800 (a) The Boston Beer Co., Inc., Class A 25,550
----------------------------------------------------------------
1,400 (a) Timberland Co., Class A 68,075
----------------------------------------------------------------
2,921 Tootsie Roll Industries, Inc. 138,382
----------------------------------------------------------------
1,000 (a) USA Detergents, Inc. 11,375
----------------------------------------------------------------
1,500 Unitog Co. 30,375
----------------------------------------------------------------
5,700 Universal Corp. 159,600
----------------------------------------------------------------
4,200 Universal Foods Corp. 148,050
----------------------------------------------------------------
1,800 (a) Vans, Inc. 17,325
----------------------------------------------------------------
2,664 WLR Foods, Inc. 24,641
----------------------------------------------------------------
4,737 Wolverine World Wide, Inc. 190,664
---------------------------------------------------------------- ------------
Total 4,071,253
---------------------------------------------------------------- ------------
ENERGY MINERALS--3.7%
----------------------------------------------------------------
1,400 Ashland Coal, Inc. 37,275
----------------------------------------------------------------
800 (a) Atwood Oceanics, Inc. 49,000
----------------------------------------------------------------
6,281 (a) BJ Services Co. 295,992
----------------------------------------------------------------
5,170 (a) Barrett Resources 169,318
----------------------------------------------------------------
1,000 Belco Oil & Gas Corporation 20,250
----------------------------------------------------------------
1,600 (a) Belden & Blake Corp. 41,200
----------------------------------------------------------------
5,000 (a) Benton Oil & Gas Co. 73,125
----------------------------------------------------------------
3,200 Berry Petroleum Co., Class A 46,800
----------------------------------------------------------------
3,000 (a) Box Energy Corp., Class B 20,625
----------------------------------------------------------------
3,100 (a) Brown Tom, Inc. 56,575
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
ENERGY MINERALS--CONTINUED
----------------------------------------------------------------
3,400 Cabot Oil & Gas Corp., Class A $ 56,950
----------------------------------------------------------------
2,400 (a) Cairn Energy USA, Inc. 26,700
----------------------------------------------------------------
4,100 Camco International, Inc. 181,938
----------------------------------------------------------------
1,200 (a) Cliffs Drilling Co. 73,200
----------------------------------------------------------------
3,450 Cross Timbers Oil Co. 53,475
----------------------------------------------------------------
1,100 (a) Crown Center Petroleum Corp., Class A 13,888
----------------------------------------------------------------
3,100 Devon Energy Corp. 102,300
----------------------------------------------------------------
2,300 Energy Ventures, Inc. 153,813
----------------------------------------------------------------
2,100 (a) Falcon Drilling Co., Inc. 80,325
----------------------------------------------------------------
1,900 (a) Flores & Rucks, Inc. 82,888
----------------------------------------------------------------
1,500 Forcenergy Gas Exploration, Inc. 46,500
----------------------------------------------------------------
3,900 (a) Forest Oil Corp. 51,675
----------------------------------------------------------------
1,100 Getty Petroleum Corp. 18,425
----------------------------------------------------------------
1,100 Giant Industries, Inc. 13,200
----------------------------------------------------------------
3,700 (a) Global Industries Ltd. 77,700
----------------------------------------------------------------
13,300 (a) Harken Energy Corp. 60,681
----------------------------------------------------------------
4,100 Helmerich & Payne, Inc. 195,775
----------------------------------------------------------------
900 Holly Corp. 22,050
----------------------------------------------------------------
500 (a) Hondo Oil & Gas Co. 4,563
----------------------------------------------------------------
2,000 (a) Hugoton Energy Corp. 21,750
----------------------------------------------------------------
1,700 KCS Energy, Inc. 55,250
----------------------------------------------------------------
2,500 Lomak Petroleum, Inc. 42,188
----------------------------------------------------------------
1,200 (a) Louis Dreyfus Natural Gas Corp. 18,900
----------------------------------------------------------------
6,800 (a) Marine Drilling Cos., Inc. 107,100
----------------------------------------------------------------
10,500 (a) Mesa, Inc. 53,813
----------------------------------------------------------------
6,100 Mitchell Energy & Development, Class A 115,900
----------------------------------------------------------------
6,200 (a) Newfield Exploration Co. 118,575
----------------------------------------------------------------
2,100 (a) Nuevo Energy Co. 72,188
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
ENERGY MINERALS--CONTINUED
----------------------------------------------------------------
4,000 (a) Oceaneering International, Inc. $ 58,000
----------------------------------------------------------------
3,200 (a) Offshore Logistics, Inc. 57,600
----------------------------------------------------------------
5,800 Parker & Parsley Petroleum Co. 191,400
----------------------------------------------------------------
9,100 (a) Parker Drilling Co. 70,525
----------------------------------------------------------------
3,000 (a) Plains Resources, Inc. 38,625
----------------------------------------------------------------
2,900 (a) Pool Energy Services Co. 37,700
----------------------------------------------------------------
4,900 (a) Pride Petroleum Services, Inc. 84,525
----------------------------------------------------------------
1,400 Production Operations Corp. 80,500
----------------------------------------------------------------
5,900 Quaker State Corp. 88,500
----------------------------------------------------------------
1,100 (a) RPC Energy Services, Inc. 13,888
----------------------------------------------------------------
1,800 (a) Seacor Holdings, Inc. 77,400
----------------------------------------------------------------
1,800 (a) Seitel, Inc. 60,300
----------------------------------------------------------------
4,500 Snyder Oil Corp. 71,438
----------------------------------------------------------------
2,500 (a) Solv Ex Corp. 26,563
----------------------------------------------------------------
1,400 (a) Stone Energy Corp. 37,450
----------------------------------------------------------------
2,500 (a) Swift Energy Co. 52,813
----------------------------------------------------------------
4,400 (a) Tesoro Petroleum Corp. 47,300
----------------------------------------------------------------
1,600 (a) TransTexas Gas Corp. 22,400
----------------------------------------------------------------
7,000 (a) Tuboscope Vetco International Corp. 98,000
----------------------------------------------------------------
5,309 (a) United Meridian Corp. 150,643
----------------------------------------------------------------
3,000 (a) Varco International, Inc. 69,000
----------------------------------------------------------------
1,800 Vintage Petroleum, Inc. 50,850
----------------------------------------------------------------
2,500 Zeigler Coal Holding Co. 62,813
---------------------------------------------------------------- ------------
Total 4,280,103
---------------------------------------------------------------- ------------
FINANCE--23.7%
----------------------------------------------------------------
1,501 1st Source Corp. 34,898
----------------------------------------------------------------
7,900 20th Century Industries 140,225
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
FINANCE--CONTINUED
----------------------------------------------------------------
3,000 (a) AMERCO $ 74,250
----------------------------------------------------------------
4,050 Aames Financial Corp 62,269
----------------------------------------------------------------
2,500 Aaron Rents, Inc. 26,563
----------------------------------------------------------------
2,000 (a) Acceptance Insurance Cos., Inc. 38,500
----------------------------------------------------------------
2,300 Acordia, Inc. 72,738
----------------------------------------------------------------
1,940 Albank Financial Corp. 70,810
----------------------------------------------------------------
3,550 Alex Brown, Inc. 228,531
----------------------------------------------------------------
600 (a) Alexander's, Inc. 39,900
----------------------------------------------------------------
3,300 Alfa Corp. 39,600
----------------------------------------------------------------
2,300 Allied Capital Commercial 55,200
----------------------------------------------------------------
3,300 Allied Group, Inc. 122,100
----------------------------------------------------------------
2,200 AmVestors Financial Corp. 35,200
----------------------------------------------------------------
1,950 Amcore Financial, Inc. 52,163
----------------------------------------------------------------
1,447 American Annuity Group, Inc. 24,237
----------------------------------------------------------------
3,400 American Bankers Insurance Group, Inc. 179,775
----------------------------------------------------------------
1,800 American Federal Bank, FSB SC 52,200
----------------------------------------------------------------
3,500 American Health Properties, Inc. 82,250
----------------------------------------------------------------
1,300 American Heritage Life Investments 32,825
----------------------------------------------------------------
5,000 (a) Americredit Corp. 71,875
----------------------------------------------------------------
3,700 (a) Amerin Corp. 72,150
----------------------------------------------------------------
1,500 Amli Residential Properties Trust 33,188
----------------------------------------------------------------
750 Anchor Bancorp Wisconsin, Inc. 32,250
----------------------------------------------------------------
2,200 Apartment Investment & Management Co., Class A 61,050
----------------------------------------------------------------
2,900 Argonaut Group, Inc. 83,375
----------------------------------------------------------------
3,334 Associated Banc Corp. 124,192
----------------------------------------------------------------
1,700 Associated Estates Realty Corp. 37,400
----------------------------------------------------------------
2,800 Astoria Financial Corp. 109,550
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
FINANCE--CONTINUED
----------------------------------------------------------------
4,800 Avalon Properties, Inc. $ 126,600
----------------------------------------------------------------
879 (a) BOK Financial Corp. 26,974
----------------------------------------------------------------
5,394 BRE Properties, Inc., Class A 126,759
----------------------------------------------------------------
2,300 Baldwin & Lyons, Inc., Class B 40,825
----------------------------------------------------------------
3,060 Bancorpsouth, Inc. 83,385
----------------------------------------------------------------
1,525 Bank Granite Corp. 42,319
----------------------------------------------------------------
1,700 Bankatlantic Bancorp, Inc. 20,825
----------------------------------------------------------------
2,112 Bankers Corp. 52,536
----------------------------------------------------------------
1,300 Banknorth Group, Inc. 55,250
----------------------------------------------------------------
3,100 Bay Apartment Communities, Inc. 103,850
----------------------------------------------------------------
1,000 Bay View Capital Corp. 48,563
----------------------------------------------------------------
6,400 Beacon Properties Corp. 197,600
----------------------------------------------------------------
2,300 Berkley, W. R. Corp. 113,275
----------------------------------------------------------------
4,200 Berkshire Realty Co., Inc. 45,150
----------------------------------------------------------------
1,700 Blanch, E. W. Holdings, Inc. 37,825
----------------------------------------------------------------
3,346 Bradley Real Estate, Inc. 63,992
----------------------------------------------------------------
865 Brenton Bank, Inc. 24,004
----------------------------------------------------------------
2,800 Burnham Pacific Properties, Inc. 35,000
----------------------------------------------------------------
3,400 CBL & Associates Properties, Inc. 80,325
----------------------------------------------------------------
1,300 CBT Corp., KY 29,900
----------------------------------------------------------------
2,450 CCB Financial Corp. 166,294
----------------------------------------------------------------
3,800 CMAC Investment Corp. 144,400
----------------------------------------------------------------
3,167 CNB Bancshares, Inc. 138,952
----------------------------------------------------------------
2,200 CORT Business Services Corp. 56,375
----------------------------------------------------------------
800 CPB, Inc. 27,200
----------------------------------------------------------------
8,000 CWM Mortgage Holdings, Inc. 159,000
----------------------------------------------------------------
4,300 Cali Realty Corp. 126,850
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
FINANCE--CONTINUED
----------------------------------------------------------------
4,136 Camden Property Trust $ 112,706
----------------------------------------------------------------
700 CapMAC Holdings, Inc. 18,200
----------------------------------------------------------------
1,800 Capital Re Corp. 71,325
----------------------------------------------------------------
5,950 Capstead Mortgage Corp. 131,644
----------------------------------------------------------------
1,900 (a) Capsure Holdings Corp. 22,563
----------------------------------------------------------------
1,800 Carolina First Corporation 28,800
----------------------------------------------------------------
5,500 Carr Realty Corp. 153,313
----------------------------------------------------------------
12,600 (a) Catellus Development Corp. 185,850
----------------------------------------------------------------
2,300 CenterPoint Properties Corp. 69,288
----------------------------------------------------------------
3,800 Centura Banks, Inc. 148,675
----------------------------------------------------------------
1,900 Chelsea GCA Realty, Inc. 66,738
----------------------------------------------------------------
1,593 Chemical Financial Corp. 53,752
----------------------------------------------------------------
1,725 Chittenden Corp. 48,947
----------------------------------------------------------------
1,250 Citfed Bancorp, Inc. 41,250
----------------------------------------------------------------
1,800 Citizens Banking Corp. 55,800
----------------------------------------------------------------
1,100 Citizens Corp. 29,150
----------------------------------------------------------------
6,300 City National Corp. 144,113
----------------------------------------------------------------
900 Cityscape Financial Corporation 12,038
----------------------------------------------------------------
3,000 (a) Coast Savings Financial, Inc. 120,750
----------------------------------------------------------------
3,350 Collective Bancorp, Inc. 136,931
----------------------------------------------------------------
3,900 Colonial BancGroup, Inc. 87,750
----------------------------------------------------------------
4,300 Colonial Properties Trust 122,013
----------------------------------------------------------------
1,900 Columbus Realty Trust 40,138
----------------------------------------------------------------
2,101 Commerce Bancorp, Inc. 65,394
----------------------------------------------------------------
3,300 Commerce Group, Inc. 72,600
----------------------------------------------------------------
3,600 Commercial Federal Corp. 120,600
----------------------------------------------------------------
3,400 Commercial Net Lease Realty 49,725
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
FINANCE--CONTINUED
----------------------------------------------------------------
2,969 Commonwealth Bancorp $ 42,679
----------------------------------------------------------------
1,900 Community First Bankshares, Inc. 61,038
----------------------------------------------------------------
1,395 Community Trust Bancorp, Inc. 34,875
----------------------------------------------------------------
1,300 Corus Bankshares, Inc. 36,563
----------------------------------------------------------------
3,800 Cousins Properties, Inc. 97,375
----------------------------------------------------------------
5,850 Crawford & Co., Class B 84,825
----------------------------------------------------------------
3,500 (a) Credit Acceptance Corp. 37,844
----------------------------------------------------------------
10,400 Crescent Real Estate Equities, Inc. 273,000
----------------------------------------------------------------
5,000 Criimi Mae, Inc. 78,125
----------------------------------------------------------------
4,000 Crown American Realty Trust 30,500
----------------------------------------------------------------
3,740 Cullen Frost Bankers, Inc. 130,900
----------------------------------------------------------------
5,100 Dauphin Deposit Corp. 216,750
----------------------------------------------------------------
2,040 (a) Delphi Financial Group, Inc., Class A 72,420
----------------------------------------------------------------
6,300 Deposit Guaranty Corp. 192,938
----------------------------------------------------------------
3,100 Developers Diversified Realty 114,313
----------------------------------------------------------------
2,707 Downey Financial Corp. 52,448
----------------------------------------------------------------
4,800 Duke Realty Investments, Inc. 176,400
----------------------------------------------------------------
1,300 Eaton Vance Corp. 57,525
----------------------------------------------------------------
1,250 (a) Electro Rent Corp. 28,750
----------------------------------------------------------------
2,000 Enhance Financial Services Group, Inc. 77,000
----------------------------------------------------------------
3,900 Equity Inns, Inc. 52,650
----------------------------------------------------------------
3,000 Evans Withycombe Residential, Inc. 59,250
----------------------------------------------------------------
2,400 Excel Realty Trust, Inc. 58,200
----------------------------------------------------------------
1,600 Executive Risk, Inc. 72,400
----------------------------------------------------------------
1,130 F & M Bancorporation, Inc. 34,183
----------------------------------------------------------------
3,155 F & M National Corp. 67,438
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
FINANCE--CONTINUED
----------------------------------------------------------------
1,200 (a) FIRSTPLUS Financial Group, Inc. $ 26,550
----------------------------------------------------------------
1,548 FNB Corp. 37,145
----------------------------------------------------------------
5,600 Federal Realty Investment Trust 144,200
----------------------------------------------------------------
3,800 FelCor Suite Hotels, Inc. 136,325
----------------------------------------------------------------
1,680 Fidelity National Financial, Inc. 20,790
----------------------------------------------------------------
1,800 (a) Financial Federal Corp. 30,375
----------------------------------------------------------------
4,943 Financial Security Assurance Holdings Ltd. 160,030
----------------------------------------------------------------
1,348 Financial Trust Corp. 56,616
----------------------------------------------------------------
1,600 First American Financial Corp. 51,000
----------------------------------------------------------------
1,900 First Citizens Bancshares, Inc., Class A 150,100
----------------------------------------------------------------
2,443 First Colorado Bancorp, Inc. 39,088
----------------------------------------------------------------
2,000 First Commerce Bancshares, Inc., Class A 53,000
----------------------------------------------------------------
3,668 First Commercial Corp. 143,511
----------------------------------------------------------------
3,600 First Commmonwealth Financial Corp. 67,500
----------------------------------------------------------------
2,487 First Financial Bancorp 89,532
----------------------------------------------------------------
1,125 First Financial Bankshares, Inc. 45,563
----------------------------------------------------------------
912 First Financial Corp. 30,894
----------------------------------------------------------------
6,099 First Financial Corp. Wisconsin 160,870
----------------------------------------------------------------
3,800 First Hawaiian, Inc. 116,850
----------------------------------------------------------------
1,273 First Indiana Corp. 23,869
----------------------------------------------------------------
4,000 First Industrial Realty Trust 118,000
----------------------------------------------------------------
4,639 First Michigan Bank Corp. 132,209
----------------------------------------------------------------
2,450 First Midwest Bancorp, Inc. 75,338
----------------------------------------------------------------
1,600 First Savings Bank of Washington Bancorp, Inc. 33,600
----------------------------------------------------------------
1,000 First United Bancshares 38,000
----------------------------------------------------------------
1,302 First Western Bancorp, Inc. 42,315
----------------------------------------------------------------
2,100 FirstBank Puerto Rico 54,863
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
FINANCE--CONTINUED
----------------------------------------------------------------
1,600 (a) FirstFed Financial Corp. $ 37,400
----------------------------------------------------------------
1,700 Firstbank Illinois Co. 62,900
----------------------------------------------------------------
5,000 Firstmerit Corp. 213,750
----------------------------------------------------------------
1,400 Foremost Corp. 74,375
----------------------------------------------------------------
900 Forest City Enterprises, Inc., Class A 38,925
----------------------------------------------------------------
1,950 Fort Wayne National Corp. 81,169
----------------------------------------------------------------
6,700 Franchise Finance Corporation of America 161,638
----------------------------------------------------------------
3,465 Fremont General Corp. 97,453
----------------------------------------------------------------
1,815 Frontier Insurance Group, Inc. 93,473
----------------------------------------------------------------
5,351 Fulton Financial Corp. 137,788
----------------------------------------------------------------
1,000 Fund American Enterprises, Inc. 99,875
----------------------------------------------------------------
3,400 GATX Corp. 186,150
----------------------------------------------------------------
3,200 Gables Residential Trust 79,200
----------------------------------------------------------------
3,102 Gainsco, Inc. 27,143
----------------------------------------------------------------
2,700 Gallagher (Arthur J.) & Co. 84,375
----------------------------------------------------------------
4,500 General Growth Properties, Inc. 143,438
----------------------------------------------------------------
7,240 (a) Glendale Federal Bank 180,095
----------------------------------------------------------------
3,600 Glimcher Realty Trust 64,350
----------------------------------------------------------------
2,300 Great Financial Corp. 74,750
----------------------------------------------------------------
1,600 (a) Guarantee Mutual Life Co. 30,200
----------------------------------------------------------------
2,421 Guaranty National Corp. 45,999
----------------------------------------------------------------
4,800 HCC Insurance Holdings, Inc. 120,600
----------------------------------------------------------------
1,555 Hancock Holding Co. 63,755
----------------------------------------------------------------
1,000 Harleysville Group, Inc. 31,938
----------------------------------------------------------------
1,137 Harleysville National Corp. 31,268
----------------------------------------------------------------
400 Harris Savings Bank, PA 8,200
----------------------------------------------------------------
3,300 Hartford Steam Boiler Insurance 158,813
----------------------------------------------------------------
4,700 Health Care Property Investors, Inc. 155,688
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
FINANCE--CONTINUED
----------------------------------------------------------------
2,400 Health Care REIT, Inc. $ 57,900
----------------------------------------------------------------
2,000 Healthcare Realty Trust, Inc. 51,750
----------------------------------------------------------------
800 Heritage Financial Services, Inc. 19,800
----------------------------------------------------------------
1,900 (a) Highlands Insurance Group, Inc. 33,488
----------------------------------------------------------------
5,300 Highwoods Properties, Inc. 164,963
----------------------------------------------------------------
2,200 Hilb Rogal & Hamilton Co. 30,525
----------------------------------------------------------------
3,900 Horace Mann Educators Corp. 182,813
----------------------------------------------------------------
3,172 Horizon Group, Inc. 40,840
----------------------------------------------------------------
3,700 Hospitality Properties Trust 114,238
----------------------------------------------------------------
3,202 Hubco, Inc. 78,849
----------------------------------------------------------------
4,200 IRT Property Co. 47,775
----------------------------------------------------------------
3,152 (a) Imperial Bancorp 74,072
----------------------------------------------------------------
3,954 (a) Imperial Credit Industries, Inc. 57,580
----------------------------------------------------------------
5,400 (a) Insignia Financial Group, Inc., Class A 94,500
----------------------------------------------------------------
2,100 Integon Corp. 21,263
----------------------------------------------------------------
2,550 Interpool, Inc. 32,513
----------------------------------------------------------------
2,100 Interra Financial, Inc. 74,813
----------------------------------------------------------------
600 (a) Investment Technology Group, Inc. 11,400
----------------------------------------------------------------
3,000 Irvine Apartment Communities, Inc. 80,250
----------------------------------------------------------------
1,000 Irwin Financial Corp. 27,250
----------------------------------------------------------------
1,800 JDN Realty Corp. 50,400
----------------------------------------------------------------
2,200 JP Realty, Inc. 55,825
----------------------------------------------------------------
1,400 JSB Financial, Inc. 59,500
----------------------------------------------------------------
1,700 (a) Jayhawk Acceptance Corp. 1,913
----------------------------------------------------------------
1,700 Jefferies Group, Inc. 78,838
----------------------------------------------------------------
2,450 Jefferson Bankshares, Inc. 68,600
----------------------------------------------------------------
3,800 John Alden Financial Corp. 66,025
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
FINANCE--CONTINUED
----------------------------------------------------------------
900 John Nuveen & Co., Inc., Class A $ 26,438
----------------------------------------------------------------
500 Kansas City Life Insurance Co. 34,563
----------------------------------------------------------------
6,199 Keystone Financial, Inc. 158,075
----------------------------------------------------------------
4,400 Kimco Realty Corp. 136,950
----------------------------------------------------------------
2,000 Klamath First Bancorp 35,500
----------------------------------------------------------------
2,600 Koger Equity, Inc. 40,625
----------------------------------------------------------------
3,300 LTC Properties, Inc. 55,275
----------------------------------------------------------------
2,575 Legg Mason, Inc. 122,313
----------------------------------------------------------------
900 Liberty Bancorp, Inc.-Oklahoma 44,550
----------------------------------------------------------------
2,400 Liberty Corp. 93,000
----------------------------------------------------------------
800 Liberty Financial Cos., Inc. 31,500
----------------------------------------------------------------
4,900 Liberty Property Trust 118,213
----------------------------------------------------------------
1,600 Life Re Corp. 61,800
----------------------------------------------------------------
2,900 (a) Life USA Holdings, Inc. 30,088
----------------------------------------------------------------
4,100 Long Island Bancorp, Inc. 139,400
----------------------------------------------------------------
1,809 MAF Bancorp, Inc. 71,456
----------------------------------------------------------------
1,411 (a) MAIC Holdings, Inc. 47,798
----------------------------------------------------------------
1,900 MGI Properties, Inc. 39,425
----------------------------------------------------------------
1,900 ML Bancorp, Inc. 30,875
----------------------------------------------------------------
1,800 MMI Companies, Inc. 39,375
----------------------------------------------------------------
3,500 Macerich Co. (The) 91,000
----------------------------------------------------------------
2,200 Magna Bancorp 39,875
----------------------------------------------------------------
5,094 Magna Group, Inc. 157,277
----------------------------------------------------------------
4,000 Manufactured Home Communities, Inc. 84,000
----------------------------------------------------------------
700 (a) Markel Corp. 77,000
----------------------------------------------------------------
1,500 McDonald & Co. Investors, Inc. 54,000
----------------------------------------------------------------
2,000 McGrath Rentcorp. 29,000
----------------------------------------------------------------
800 Meadowbrook Insurance Group, Inc. 19,100
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
FINANCE--CONTINUED
----------------------------------------------------------------
2,142 Mercantile Bancorporation, Inc. $ 124,236
----------------------------------------------------------------
1,900 Meridian Industrial Trust, Inc. 38,950
----------------------------------------------------------------
6,000 Merry Land and Investment Co. 123,000
----------------------------------------------------------------
3,427 Mid Am, Inc. 59,116
----------------------------------------------------------------
1,700 Mid-American Apartment Communities, Inc. 43,988
----------------------------------------------------------------
2,500 Mills Corp. 62,813
----------------------------------------------------------------
2,475 Morgan Keegan, Inc. 44,859
----------------------------------------------------------------
2,500 NAC Re Corp. 96,875
----------------------------------------------------------------
1,100 (a) NHP, Inc. 24,956
----------------------------------------------------------------
2,060 (a) National Auto Credit, Inc. 16,223
----------------------------------------------------------------
700 National Bancorp Alaska, Inc. 52,150
----------------------------------------------------------------
1,579 National City Bancshares, Inc. 50,923
----------------------------------------------------------------
4,050 National Community Bancorp 173,138
----------------------------------------------------------------
1,900 National Golf Properties, Inc. 58,663
----------------------------------------------------------------
3,100 National Health Investors, Inc. 115,475
----------------------------------------------------------------
1,168 National Penn Bancshares, Inc. 33,288
----------------------------------------------------------------
400 (a) National Western Life Insurance Co., Class A 33,700
----------------------------------------------------------------
6,800 Nationwide Health Properties, Inc. 136,000
----------------------------------------------------------------
2,261 New York Bancorp, Inc. 65,852
----------------------------------------------------------------
2,300 North American Mortgage Co. 41,688
----------------------------------------------------------------
5,277 North Fork Bancorp, Inc. 209,101
----------------------------------------------------------------
800 Nymagic, Inc. 14,800
----------------------------------------------------------------
2,500 Oasis Residential, Inc. 55,625
----------------------------------------------------------------
4,365 Old National Bancorp 165,870
----------------------------------------------------------------
6,200 (a) Olympic Financial Ltd. 59,675
----------------------------------------------------------------
1,000 Omega Financial Corp. 40,750
----------------------------------------------------------------
2,839 Omega Healthcare Investors 86,944
----------------------------------------------------------------
2,095 Onbancorp, Inc. 102,393
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
FINANCE--CONTINUED
----------------------------------------------------------------
3,175 One Valley Bancorp West Virginia, Inc. $ 121,841
----------------------------------------------------------------
2,256 Orion Capital Corp. 141,282
----------------------------------------------------------------
5,800 PHH Corp. 281,300
----------------------------------------------------------------
2,163 PXRE Corp. 54,886
----------------------------------------------------------------
700 Park National Corp. 38,850
----------------------------------------------------------------
3,800 Penncorp Financial Group, Inc. 130,625
----------------------------------------------------------------
1,200 Pennsylvania Real Estate Investment Trust 26,700
----------------------------------------------------------------
1,430 People First Corp. 34,320
----------------------------------------------------------------
2,000 Peoples Bank Bridgeport 60,000
----------------------------------------------------------------
4,141 Peoples Heritage Financial Group 129,924
----------------------------------------------------------------
1,400 Pioneer Financial Services, Inc. 37,100
----------------------------------------------------------------
3,500 Pioneer Group, Inc. 91,875
----------------------------------------------------------------
1,900 Piper Jaffray Cos., Inc. 30,638
----------------------------------------------------------------
900 Poe & Brown, Inc. 23,625
----------------------------------------------------------------
2,500 (a) Policy Management System Corp. 108,750
----------------------------------------------------------------
3,600 Post Properties, Inc. 139,500
----------------------------------------------------------------
4,100 Presidential Life Corp. 58,938
----------------------------------------------------------------
2,000 Price Enterprises, Inc. 35,750
----------------------------------------------------------------
1,500 Price REIT, Inc. 56,625
----------------------------------------------------------------
2,900 Provident Bancorp, Inc. 113,100
----------------------------------------------------------------
1,305 Provident Bankshares Corp. 46,007
----------------------------------------------------------------
10,400 Public Storage, Inc. 279,500
----------------------------------------------------------------
1,699 Queens County Bancorp, Inc. 62,651
----------------------------------------------------------------
2,598 Quick & Reilly Group, Inc. 57,481
----------------------------------------------------------------
2,000 RCSB Financial, Inc. 59,500
----------------------------------------------------------------
4,000 RFS Hotel Investors, Inc. 72,000
----------------------------------------------------------------
1,000 RLI Corp. 32,375
----------------------------------------------------------------
3,825 Raymond James Financial, Inc. 89,409
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
FINANCE--CONTINUED
----------------------------------------------------------------
3,800 Realty Income Corp. $ 94,050
----------------------------------------------------------------
3,200 Reckson Associates Realty Corp. 74,000
----------------------------------------------------------------
1,600 Redwood Trust, Inc. 75,200
----------------------------------------------------------------
1,700 Regency Realty Corp. 44,200
----------------------------------------------------------------
2,800 Reinsurance Group of America 139,300
----------------------------------------------------------------
1,300 Reliance Acceptance Group, Inc. 11,213
----------------------------------------------------------------
10,200 Reliance Group Holdings, Inc. 113,475
----------------------------------------------------------------
2,433 Republic Bancorp, Inc. 32,237
----------------------------------------------------------------
1,806 (a) Resource Bancshares Mortgage Group, Inc. 23,704
----------------------------------------------------------------
3,400 Resource Mortgage Capital, Inc. 93,500
----------------------------------------------------------------
3,300 Riggs National Corp. 61,050
----------------------------------------------------------------
2,800 (a) Risk Capital Holdings, Inc. 53,200
----------------------------------------------------------------
6,050 Rollins Truck Leasing Corp. 79,406
----------------------------------------------------------------
5,713 Roosevelt Financial Group, Inc. 132,827
----------------------------------------------------------------
1,800 S & T Bancorp, Inc. 59,400
----------------------------------------------------------------
1,600 Saul Centers, Inc. 25,000
----------------------------------------------------------------
1,500 Security Capital Corp. 133,500
----------------------------------------------------------------
1,400 Security Connecticut Corp. 64,575
----------------------------------------------------------------
2,400 Selective Insurance Group, Inc. 96,600
----------------------------------------------------------------
1,500 (a) Silicon Valley Bancshares 52,500
----------------------------------------------------------------
1,200 Sirrom Capital Corp. 37,350
----------------------------------------------------------------
1,600 Smith (Charles E.) Residential Realty, Inc. 43,400
----------------------------------------------------------------
8,249 Sovereign Bancorp, Inc. 101,050
----------------------------------------------------------------
1,800 Sovran Self Storage, Inc. 50,850
----------------------------------------------------------------
5,000 Spieker Properties, Inc. 174,375
----------------------------------------------------------------
3,730 St. Paul Bancorp, Inc. 102,109
----------------------------------------------------------------
2,700 Standard Financial, Inc. 61,763
----------------------------------------------------------------
950 State Auto Financial Corp. 16,625
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
FINANCE--CONTINUED
----------------------------------------------------------------
2,000 Storage Trust Realty $ 48,000
----------------------------------------------------------------
700 Student Loan Corp. 25,288
----------------------------------------------------------------
700 Sumitomo Bank California 17,325
----------------------------------------------------------------
2,900 Summit Properties, Inc. 57,275
----------------------------------------------------------------
2,500 Sun Communities, Inc. 80,000
----------------------------------------------------------------
2,125 Susquehanna Bankshares, Inc. 71,188
----------------------------------------------------------------
1,300 T R Financial Corp. 48,263
----------------------------------------------------------------
5,200 Taubman Centers, Inc. 65,650
----------------------------------------------------------------
3,200 The Trust Company of New Jersey 58,400
----------------------------------------------------------------
2,700 Thornburg Mortgage Asset Co. 51,975
----------------------------------------------------------------
2,500 Town & Country Trust 37,813
----------------------------------------------------------------
1,900 Trans Financial, Inc. 44,175
----------------------------------------------------------------
1,500 Trenwick Group, Inc. 48,938
----------------------------------------------------------------
2,000 Trinet Corporate Realty Trust, Inc. 66,750
----------------------------------------------------------------
3,344 Trustco Bank Corp. 69,388
----------------------------------------------------------------
4,500 Trustmark Corp. 113,625
----------------------------------------------------------------
3,200 U.S. Trust Corp. 140,800
----------------------------------------------------------------
5,600 (a) UICI 148,400
----------------------------------------------------------------
2,631 UMB Financial Corp. 101,951
----------------------------------------------------------------
2,700 UST Corp. 50,625
----------------------------------------------------------------
900 (a) Union Acceptance Corp., Class A 9,450
----------------------------------------------------------------
2,500 United Bankshares, Inc. 87,813
----------------------------------------------------------------
3,950 United Carolina Bancshares 172,813
----------------------------------------------------------------
4,380 United Companies Financial Corp. 85,958
----------------------------------------------------------------
12,966 United Dominion Realty Trust, Inc. 178,283
----------------------------------------------------------------
1,550 United Fire & Casualty Co. 57,738
----------------------------------------------------------------
1,400 Universal Health Realty Trust, Inc. 26,600
----------------------------------------------------------------
2,300 Urban Shopping Centers, Inc. 64,975
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
FINANCE--CONTINUED
----------------------------------------------------------------
800 Usbancorp, Inc. $ 36,200
----------------------------------------------------------------
3,050 Vesta Insurance Group, Inc. 127,338
----------------------------------------------------------------
4,000 Vornado Realty Trust 254,500
----------------------------------------------------------------
700 (a) WFS Financial, Inc. 8,225
----------------------------------------------------------------
2,000 Walden Residential Properties, Inc. 44,000
----------------------------------------------------------------
7,620 Washington Federal, Inc. 182,880
----------------------------------------------------------------
1,800 Washington National Corp. 51,300
----------------------------------------------------------------
5,200 Washington Real Estate Investment Trust 92,300
----------------------------------------------------------------
2,100 Weeks Corp. 65,888
----------------------------------------------------------------
3,800 Weingarten Realty Investors 161,975
----------------------------------------------------------------
2,850 Wellsford Residential Properties 84,431
----------------------------------------------------------------
1,500 Wesbanco, Inc. 51,188
----------------------------------------------------------------
2,330 WestAmerica Bancorporation 152,033
----------------------------------------------------------------
1,565 Westcorp, Inc. 23,475
----------------------------------------------------------------
2,800 Western Investment Real Estate Trust 35,350
----------------------------------------------------------------
1,100 (a) Western Water Co. 14,850
----------------------------------------------------------------
700 (a) White River Corp. 44,100
----------------------------------------------------------------
2,825 Whitney Holding Corp. 102,406
----------------------------------------------------------------
500 Winthrop Resources Corp. 15,188
----------------------------------------------------------------
3,200 World Acceptance Corp. 16,200
----------------------------------------------------------------
2,500 Xtra Corp. 110,313
----------------------------------------------------------------
1,700 Zenith National Insurance Corp. 43,350
----------------------------------------------------------------
1,800 (a) Zurich Reinsurance Centre Holdings, Inc. 69,075
---------------------------------------------------------------- ------------
Total 27,370,815
---------------------------------------------------------------- ------------
HEALTH CARE--8.4%
----------------------------------------------------------------
2,200 A. L. Pharma, Inc., Class A 31,900
----------------------------------------------------------------
3,066 ADAC Laboratories 70,901
----------------------------------------------------------------
2,600 (a) ATS Medical, Inc. 16,900
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
HEALTH CARE--CONTINUED
----------------------------------------------------------------
2,050 (a) Access Health, Inc. $ 29,213
----------------------------------------------------------------
3,500 (a) Acuson Corp. 84,875
----------------------------------------------------------------
2,500 (a) Advanced Technology Labs, Inc. 82,813
----------------------------------------------------------------
6,100 (a) Advanced Tissue Sciences, Inc., Class A 64,813
----------------------------------------------------------------
2,200 (a) Agouron Pharmaceuticals, Inc. 140,800
----------------------------------------------------------------
2,400 (a) Alkermes, Inc. 26,400
----------------------------------------------------------------
4,900 (a) Alliance Pharmaceutical Corp. 37,363
----------------------------------------------------------------
2,600 (a) Alteon, Inc. 8,775
----------------------------------------------------------------
4,000 (a) AmeriSource Health Corp., Class A 178,500
----------------------------------------------------------------
1,450 (a) American HomePatient, Inc. 27,913
----------------------------------------------------------------
7,800 (a) American Oncology Resources, Inc. 69,225
----------------------------------------------------------------
1,300 Amisys Managed Care Systems 24,375
----------------------------------------------------------------
3,500 (a) Amylin Pharmaceuticals, Inc. 35,875
----------------------------------------------------------------
4,700 (a) Angeion Corp. 18,800
----------------------------------------------------------------
900 (a) Aphton Corp. 12,600
----------------------------------------------------------------
900 (a) Arbor Health Care Co. 22,050
----------------------------------------------------------------
1,900 Arrow International, Inc. 57,475
----------------------------------------------------------------
800 Arthrocare Corporation 5,000
----------------------------------------------------------------
4,500 Ballard Medical Products 85,500
----------------------------------------------------------------
850 (a) Barr Laboratories, Inc. 38,463
----------------------------------------------------------------
1,400 Bindley Western Industries, Inc. 26,250
----------------------------------------------------------------
1,650 (a) Bio Rad Laboratories, Inc., Class A 39,394
----------------------------------------------------------------
8,000 (a) Bio-Technology General Corp. 115,000
----------------------------------------------------------------
1,100 Biomatrix, Inc. 12,513
----------------------------------------------------------------
3,300 (a) CNS, Inc. 27,638
----------------------------------------------------------------
2,500 (a) CONMED Corp. 37,188
----------------------------------------------------------------
600 CRA Managed Care, Inc. 21,150
----------------------------------------------------------------
2,300 (a) Capstone Pharmacy Services 19,406
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
HEALTH CARE--CONTINUED
----------------------------------------------------------------
1,300 (a) Carrington Laboratories, Inc. $ 6,825
----------------------------------------------------------------
3,700 Carter Wallace, Inc. 49,025
----------------------------------------------------------------
2,300 (a) Cellpro, Inc. 11,500
----------------------------------------------------------------
4,000 (a) Cephalon, Inc. 67,000
----------------------------------------------------------------
4,100 (a) Cerner Corp. 66,113
----------------------------------------------------------------
1,663 Chad Therapeutics Inc. 10,810
----------------------------------------------------------------
1,700 (a) Circon Corp. 21,888
----------------------------------------------------------------
1,500 (a) ClinTrials, Inc. 11,625
----------------------------------------------------------------
2,600 (a) Coastal Physician Group, Inc. 3,575
----------------------------------------------------------------
3,100 Cocensys, Inc. 9,300
----------------------------------------------------------------
1,500 Collagen Corp. 25,500
----------------------------------------------------------------
4,600 (a) Columbia Laboratories, Inc. 63,250
----------------------------------------------------------------
1,700 (a) Compdent Corp. 27,413
----------------------------------------------------------------
400 Conceptus, Inc. 4,000
----------------------------------------------------------------
1,151 (a) Copley Pharmaceutical 5,899
----------------------------------------------------------------
3,200 (a) Cor Therapeutics, Inc. 24,400
----------------------------------------------------------------
6,900 (a) Coram Healthcare Corp. 15,525
----------------------------------------------------------------
4,800 (a) Coventry Corp. 62,100
----------------------------------------------------------------
4,800 Creative BioMolecules, Inc. 36,300
----------------------------------------------------------------
1,200 Cryolife, Inc. 10,500
----------------------------------------------------------------
1,800 (a) Curative Technologies, Inc. 42,525
----------------------------------------------------------------
2,700 (a) Cygnus, Inc. 36,113
----------------------------------------------------------------
3,200 (a) Cytel Corp. 4,600
----------------------------------------------------------------
7,909 (a) Cytogen Corp. 39,051
----------------------------------------------------------------
500 Cytyc Corp. 10,625
----------------------------------------------------------------
2,300 (a) Datascope Corp. 41,400
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
HEALTH CARE--CONTINUED
----------------------------------------------------------------
1,900 Depotech Corp. $ 27,788
----------------------------------------------------------------
1,800 Diagnostic Products Corp. 51,525
----------------------------------------------------------------
6,900 (a) Dura Pharmaceuticals, Inc. 200,100
----------------------------------------------------------------
1,100 (a) EmCare Holdings, Inc. 30,938
----------------------------------------------------------------
1,300 Emeritus Corp. 15,925
----------------------------------------------------------------
2,200 (a) Endosonics Corp. 19,250
----------------------------------------------------------------
700 Enterprise Systems, Inc. 16,275
----------------------------------------------------------------
3,373 (a) Enzo Biochem, Inc. 47,222
----------------------------------------------------------------
2,100 (a) Epitope, Inc. 14,700
----------------------------------------------------------------
2,300 (a) Equimed, Inc. 6,325
----------------------------------------------------------------
1,400 (a) Ergo Science Corp. 13,825
----------------------------------------------------------------
2,100 (a) Fuisz Technologies Ltd. 17,588
----------------------------------------------------------------
2,200 (a) Geltex Pharmaceuticals, Inc. 36,300
----------------------------------------------------------------
6,000 (a) Genelabs Technologies, Inc. 15,000
----------------------------------------------------------------
5,900 (a) Genesis Health Ventures, Inc. 176,263
----------------------------------------------------------------
4,300 (a) Gensia, Inc. 15,050
----------------------------------------------------------------
5,000 (a) Gilead Sciences, Inc. 110,625
----------------------------------------------------------------
3,362 (a) GranCare, Inc. 26,056
----------------------------------------------------------------
2,200 (a) Gulf South Medical Supplies, Inc. 31,350
----------------------------------------------------------------
400 (a) HCIA, Inc. 8,250
----------------------------------------------------------------
2,300 HPR Inc. 32,488
----------------------------------------------------------------
3,800 (a) Haemonetics Corp. 63,175
----------------------------------------------------------------
2,425 (a) Health Management Systems, Inc. 13,338
----------------------------------------------------------------
2,091 (a) Healthdyne Technologies, Inc. 30,842
----------------------------------------------------------------
2,007 Healthplan Services Corporation 33,113
----------------------------------------------------------------
1,200 (a) Henry Schein, Inc. 33,300
----------------------------------------------------------------
2,000 (a) Hologic, Inc. 41,500
----------------------------------------------------------------
8,508 (a) Horizon/CMS Healthcare Corp. 135,065
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
HEALTH CARE--CONTINUED
----------------------------------------------------------------
3,100 (a) Human Genome Sciences, Inc. $ 97,263
----------------------------------------------------------------
4,000 (a) Hybridon, Inc. 22,000
----------------------------------------------------------------
2,200 (a) I-Stat Corp. 28,050
----------------------------------------------------------------
5,828 ICN Pharmaceuticals, Inc. 123,117
----------------------------------------------------------------
4,900 (a) ICOS Corp. 33,994
----------------------------------------------------------------
1,200 (a) ICU Medical, Inc. 9,000
----------------------------------------------------------------
2,000 (a) IDEC Pharmaceuticals Corp. 35,500
----------------------------------------------------------------
900 (a) IDX Systems Corp. 26,775
----------------------------------------------------------------
12,500 (a) Imatron, Inc. 25,391
----------------------------------------------------------------
3,200 (a) Imclone Systems, Inc. 16,400
----------------------------------------------------------------
3,100 (a) Immulogic Pharmaceutical Corp. 11,238
----------------------------------------------------------------
2,500 (a) Immune Response Corp. 16,875
----------------------------------------------------------------
2,900 (a) Immunex Corp. 80,838
----------------------------------------------------------------
3,400 (a) Immunomedics, Inc. 14,025
----------------------------------------------------------------
1,600 (a) Imnet Systems Inc. 29,400
----------------------------------------------------------------
2,100 (a) InControl, Inc. 18,638
----------------------------------------------------------------
1,450 (a) Inbrand Corp. 19,575
----------------------------------------------------------------
1,200 (a) Incyte Pharmaceuticals, Inc. 51,000
----------------------------------------------------------------
1,900 (a) Inhale Therapeutic Systems 35,150
----------------------------------------------------------------
1,900 (a) Inphynet Medical Management, Inc. 43,700
----------------------------------------------------------------
4,700 (a) Integra Lifesciences Corp. 14,100
----------------------------------------------------------------
3,700 Integrated Health Services, Inc. 118,863
----------------------------------------------------------------
400 (a) Intercardia, Inc. 7,400
----------------------------------------------------------------
5,000 Invacare Corp. 99,375
----------------------------------------------------------------
4,200 (a) Isis Pharmaceuticals, Inc. 61,950
----------------------------------------------------------------
3,700 (a) Isolyser Co., Inc. 13,875
----------------------------------------------------------------
3,800 Jones Medical Industries, Inc. 133,950
----------------------------------------------------------------
2,000 (a) KeraVision, Inc. 17,000
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
HEALTH CARE--CONTINUED
----------------------------------------------------------------
2,600 Kinetic Concepts, Inc. $ 38,675
----------------------------------------------------------------
300 (a) LCA Vision, Inc. 1,725
----------------------------------------------------------------
400 Labone, Inc. 6,400
----------------------------------------------------------------
13,900 (a) Laboratory Corporation of America Holdings 43,438
----------------------------------------------------------------
1,750 Life Technologies, Inc. 44,406
----------------------------------------------------------------
2,000 (a) Lifescore Biomedical, Inc. 25,000
----------------------------------------------------------------
3,992 (a) Ligand Pharmaceuticals, Inc., Class B 40,918
----------------------------------------------------------------
5,500 (a) Liposome Co., Inc. 122,031
----------------------------------------------------------------
2,200 (a) Living Centers of America, Inc. 78,650
----------------------------------------------------------------
900 (a) Lunar Corp. 15,750
----------------------------------------------------------------
5,300 (a) Magellan Health Services, Inc. 139,125
----------------------------------------------------------------
4,800 (a) Mariner Health Group, Inc. 42,000
----------------------------------------------------------------
1,700 (a) Marquette Medical Systems, Class A 34,213
----------------------------------------------------------------
5,700 (a) Matria Healthcare, Inc. 22,088
----------------------------------------------------------------
3,000 (a) Matrix Pharmaceuticals, Inc. 17,250
----------------------------------------------------------------
2,900 (a) Maxicare Health Plans, Inc. 67,425
----------------------------------------------------------------
1,900 (a) MedCath, Inc. 25,175
----------------------------------------------------------------
2,400 (a) Medimmune, Inc. 31,200
----------------------------------------------------------------
3,600 Mentor Corp. 83,250
----------------------------------------------------------------
1,500 Meridian Diagnostics, Inc. 10,688
----------------------------------------------------------------
6,800 (a) Mid Atlantic Medical Services, Inc. 80,750
----------------------------------------------------------------
600 (a) MiniMed, Inc. 14,850
----------------------------------------------------------------
2,200 (a) Multicare Cos., Inc. 40,975
----------------------------------------------------------------
1,400 (a) Myriad Genetics, Inc. 34,825
----------------------------------------------------------------
5,200 (a) NABI, Inc. 31,200
----------------------------------------------------------------
1,500 (a) National Surgery Centers, Inc. 45,000
----------------------------------------------------------------
1,900 (a) NeoPath, Inc. 29,925
----------------------------------------------------------------
3,100 (a) Neoprobe Corp. 39,138
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
HEALTH CARE--CONTINUED
----------------------------------------------------------------
2,300 (a) Neurex Corp. $ 25,300
----------------------------------------------------------------
1,900 (a) Neurogen Corp. 27,075
----------------------------------------------------------------
4,800 (a) Neuromedical Systems, Inc. 31,800
----------------------------------------------------------------
4,600 (a) Nexstar Pharmaceuticals, Inc. 43,125
----------------------------------------------------------------
2,000 (a) Northfield Laboratories, Inc. 17,750
----------------------------------------------------------------
10,300 (a) NovaCare, Inc. 117,163
----------------------------------------------------------------
2,500 (a) Noven Pharmaceuticals, Inc. 18,750
----------------------------------------------------------------
3,200 (a) OccuSystems, Inc. 66,000
----------------------------------------------------------------
3,300 (a) Oncogene Science, Inc. 15,675
----------------------------------------------------------------
2,100 (a) Organogenesis, Inc. 45,675
----------------------------------------------------------------
3,400 (a) OrthoLogic Corp. 19,550
----------------------------------------------------------------
2,500 (a) Orthodontic Centers of America, Inc. 30,000
----------------------------------------------------------------
1,500 (a) Ostex International, Inc. 3,750
----------------------------------------------------------------
4,375 Owens & Minor, Inc. 56,875
----------------------------------------------------------------
950 (a) PDT, Inc. 24,225
----------------------------------------------------------------
1,900 (a) PHP Healthcare Corp. 26,600
----------------------------------------------------------------
3,500 (a) Palomar Medical Technologies, Inc. 12,469
----------------------------------------------------------------
2,600 (a) Parexel International Corp. 72,800
----------------------------------------------------------------
1,800 (a) Pathogenesis Corp. 47,250
----------------------------------------------------------------
2,200 (a) Patterson Dental Co. 73,700
----------------------------------------------------------------
1,500 (a) Pediatrix Medical Group 49,500
----------------------------------------------------------------
1,200 (a) Perclose, Inc. 29,700
----------------------------------------------------------------
10,900 (a) Perrigo Co. 128,075
----------------------------------------------------------------
2,151 (a) Pharmaceutical Product Development, Inc. 36,029
----------------------------------------------------------------
1,800 (a) Pharmacopedia, Inc. 25,200
----------------------------------------------------------------
1,300 (a) PhyMatrix Corp. 14,950
----------------------------------------------------------------
3,000 (a) Physician Computer Network, Inc. 15,938
----------------------------------------------------------------
6,300 (a) Physician Corp. of America 30,713
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
HEALTH CARE--CONTINUED
----------------------------------------------------------------
1,100 (a) Physicians Health Services, Inc., Class A $ 25,850
----------------------------------------------------------------
3,700 (a) Physicians Resource Group, Inc. 40,238
----------------------------------------------------------------
2,700 (a) Physio-Control International Corp. 33,750
----------------------------------------------------------------
2,000 (a) Possis Corp. 28,000
----------------------------------------------------------------
1,600 (a) Prime Medical Services 14,800
----------------------------------------------------------------
1,800 (a) Protein Design Laboratories, Inc. 45,225
----------------------------------------------------------------
1,400 (a) Protocol Systems, Inc. 10,850
----------------------------------------------------------------
1,900 (a) RTW, Inc. 15,913
----------------------------------------------------------------
500 (a) Raptor Systems, Inc. 5,750
----------------------------------------------------------------
2,700 (a) Regency Health Services, Inc. 28,350
----------------------------------------------------------------
3,400 (a) Regeneron Pharmaceuticals, Inc. 22,100
----------------------------------------------------------------
4,800 (a) Renal Treatment Centers, Inc. 103,800
----------------------------------------------------------------
900 (a) Res-Care, Inc. 14,513
----------------------------------------------------------------
2,800 (a) Resound Corp. 11,200
----------------------------------------------------------------
2,900 (a) Respironics, Inc. 54,013
----------------------------------------------------------------
1,700 (a) Rexall Sundown, Inc. 33,788
----------------------------------------------------------------
600 (a) RightCHOICE Managed Care, Inc., Class A 6,450
----------------------------------------------------------------
2,000 (a) Roberts Pharmaceutical Corp. 22,000
----------------------------------------------------------------
4,200 (a) Rotech Medical Corp. 66,150
----------------------------------------------------------------
2,400 (a) Safeskin Corp. 53,700
----------------------------------------------------------------
2,100 (a) SangStat Medical Corp. 35,963
----------------------------------------------------------------
3,800 (a) Scherer (R.P.) Corp. 174,800
----------------------------------------------------------------
2,300 (a) SciClone Pharmaceuticals, Inc. 14,375
----------------------------------------------------------------
6,000 (a) Scios Nova, Inc. 28,125
----------------------------------------------------------------
800 Seafield Capital Corp. 25,400
----------------------------------------------------------------
4,400 (a) Sepracor, Inc. 85,800
----------------------------------------------------------------
4,800 (a) Sequus Pharmaceuticals, Inc. 28,200
----------------------------------------------------------------
1,400 (a) Serologicals Corp. 22,575
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
HEALTH CARE--CONTINUED
----------------------------------------------------------------
2,400 (a) Sierra Health Services, Inc. $ 61,800
----------------------------------------------------------------
3,700 (a) Sofamor Danek Group, Inc. 144,300
----------------------------------------------------------------
3,500 (a) Somatix Therapy Corp. 5,141
----------------------------------------------------------------
3,000 (a) Somatogen, Inc. 16,688
----------------------------------------------------------------
1,700 SpaceLabs Medical, Inc. 35,700
----------------------------------------------------------------
1,600 (a) Spine-Tech, Inc. 46,000
----------------------------------------------------------------
2,300 (a) Staar Surgical Co. 26,450
----------------------------------------------------------------
600 (a) Summit Care Corp. 8,100
----------------------------------------------------------------
1,200 (a) Summit Medical Systems 2,850
----------------------------------------------------------------
5,100 (a) Summit Technology, Inc. 31,556
----------------------------------------------------------------
6,624 (a) Sun Healthcare Group, Inc. 93,564
----------------------------------------------------------------
2,800 (a) Sunrise Medical, Inc. 30,450
----------------------------------------------------------------
2,700 (a) Synetic, Inc. 105,300
----------------------------------------------------------------
1,500 (a) Techne Corp. 36,375
----------------------------------------------------------------
2,500 (a) Technological Medical Products, Inc. 44,063
----------------------------------------------------------------
1,600 (a) Theragenics Corp. 27,200
----------------------------------------------------------------
2,600 (a) Theratech, Inc. 24,050
----------------------------------------------------------------
1,300 (a) Thoratec Laboratories Corp. 7,313
----------------------------------------------------------------
3,100 (a) Transcend Services, Inc. 9,688
----------------------------------------------------------------
3,500 (a) U.S. Bioscience, Inc. 30,844
----------------------------------------------------------------
2,500 (a) UROHEALTH Systems, Inc., Class A 19,688
----------------------------------------------------------------
2,700 (a) Uniphase Corp. 107,325
----------------------------------------------------------------
900 (a) United Dental Care, Inc. 19,800
----------------------------------------------------------------
1,150 United Wisconsin Services, Inc. 31,481
----------------------------------------------------------------
5,400 (a) Universal Health Services, Inc., Class B 204,525
----------------------------------------------------------------
3,500 (a) Uromed Corp. 13,563
----------------------------------------------------------------
1,800 (a) VISX, Inc. 40,500
----------------------------------------------------------------
3,100 (a) Ventritex, Inc. 49,988
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
HEALTH CARE--CONTINUED
----------------------------------------------------------------
3,200 (a) Vertex Pharmaceuticals, Inc. $ 101,600
----------------------------------------------------------------
2,600 (a) Veterinary Centers of America 26,975
----------------------------------------------------------------
2,400 (a) Vical, Inc. 25,200
----------------------------------------------------------------
1,000 Vital Signs, Inc. 19,000
----------------------------------------------------------------
2,037 (a) Vitalink Pharmacy Services, Inc. 37,430
----------------------------------------------------------------
2,900 (a) Vivus, Inc. 107,119
----------------------------------------------------------------
2,100 West Co., Inc. 58,538
----------------------------------------------------------------
5,500 XOMA Corp. 24,750
----------------------------------------------------------------
3,700 (a) Zila, Inc. 24,744
---------------------------------------------------------------- ------------
Total 9,706,591
---------------------------------------------------------------- ------------
MISCELLANEOUS--0.1%
----------------------------------------------------------------
400 American Financial Enterprises 14,400
----------------------------------------------------------------
400 Capital Southwest Corp. 27,250
----------------------------------------------------------------
2,900 (a) Chancellor Corp., Class A 81,200
---------------------------------------------------------------- ------------
Total 122,850
---------------------------------------------------------------- ------------
PRODUCER MANUFACTURING--7.1%
----------------------------------------------------------------
1,400 (a) ABC Rail Products Corp. 24,325
----------------------------------------------------------------
1,700 (a) ABT Building Products Corp. 36,550
----------------------------------------------------------------
2,200 (a) ACX Technologies, Inc. 42,075
----------------------------------------------------------------
1,900 (a) Acme Metals, Inc. 26,363
----------------------------------------------------------------
700 (a) Advanced Lighting Technologies, Inc. 13,300
----------------------------------------------------------------
4,600 Aeroquip-Vickers, Inc. 185,725
----------------------------------------------------------------
600 (a) Ag-Chem Equipment Co., Inc. 12,000
----------------------------------------------------------------
1,300 Alamo Group, Inc. 20,150
----------------------------------------------------------------
3,800 (a) Allen Telecom, Inc. 65,550
----------------------------------------------------------------
1,500 Allied Products 47,625
----------------------------------------------------------------
1,300 (a) Alltrista Corp. 27,950
----------------------------------------------------------------
1,400 Amcast Industrial Corp. 31,850
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
PRODUCER MANUFACTURING--CONTINUED
----------------------------------------------------------------
700 (a) American Buildings Co. $ 18,200
----------------------------------------------------------------
5,300 Ametek, Inc. 118,588
----------------------------------------------------------------
5,900 (a) Anixter International, Inc. 84,075
----------------------------------------------------------------
2,100 Applied Power, Inc., Class A 88,988
----------------------------------------------------------------
10,800 (a) Aura System, Inc. 16,538
----------------------------------------------------------------
1,800 (a) Avondale Industries, Inc. 31,950
----------------------------------------------------------------
4,000 BW/IP Holding, Inc. 65,000
----------------------------------------------------------------
3,410 Baldor Electric Co. 87,381
----------------------------------------------------------------
3,900 Belden, Inc. 119,925
----------------------------------------------------------------
1,850 Blount International, Inc., Class A 74,925
----------------------------------------------------------------
2,900 (a) Cable Design Technologies, Class A 54,738
----------------------------------------------------------------
1,600 Cascade Corp. 23,200
----------------------------------------------------------------
900 Charter Power Systems, Inc. 25,650
----------------------------------------------------------------
1,500 (a) Chase Brass Industries, Inc. 29,813
----------------------------------------------------------------
700 Chicago Miniature Lamp, Inc. 16,363
----------------------------------------------------------------
6,600 Cincinnati Milacron, Inc. 133,650
----------------------------------------------------------------
1,200 (a) Citation Corp. 16,125
----------------------------------------------------------------
8,000 (a) Coltec Industries, Inc. 162,000
----------------------------------------------------------------
2,300 Commercial Intertech Corp. 27,313
----------------------------------------------------------------
2,000 Commercial Metals Corp. 55,500
----------------------------------------------------------------
1,500 Commonwealth Aluminum Corp. 25,875
----------------------------------------------------------------
2,100 (a) Cuno, Inc. 29,138
----------------------------------------------------------------
900 DT Industries, Inc. 23,400
----------------------------------------------------------------
1,400 (a) Detroit Diesel Corp. 23,975
----------------------------------------------------------------
4,000 Duriron, Inc. 99,500
----------------------------------------------------------------
2,300 (a) Fairchild Corp., Class A 28,175
----------------------------------------------------------------
1,000 (a) Falcon Building Products, Inc. 17,375
----------------------------------------------------------------
3,100 (a) Figgie International Holdings, Inc., Class A 36,813
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
PRODUCER MANUFACTURING--CONTINUED
----------------------------------------------------------------
800 Franklin Electronics, Inc. $ 34,100
----------------------------------------------------------------
4,000 Freeport McMoRan, Inc. 117,000
----------------------------------------------------------------
1,000 General Binding Corp. 27,750
----------------------------------------------------------------
500 (a) Gibraltar Steel Corp. 12,250
----------------------------------------------------------------
5,400 Giddings & Lewis, Inc. 109,350
----------------------------------------------------------------
600 Gleason Corp. 19,425
----------------------------------------------------------------
3,700 (a) Global Industrial Technologies, Inc. 67,525
----------------------------------------------------------------
3,500 Goulds Pumps, Inc. 127,750
----------------------------------------------------------------
2,075 Graco, Inc. 49,022
----------------------------------------------------------------
900 Greenbrier Cos., Inc. 8,438
----------------------------------------------------------------
2,700 Greenfield Industries, Inc. 55,013
----------------------------------------------------------------
5,100 (a) Griffon Corp. 61,838
----------------------------------------------------------------
3,800 HON Industries, Inc. 160,550
----------------------------------------------------------------
2,200 Handy & Harman 30,250
----------------------------------------------------------------
1,000 Hardinge, Inc. 25,250
----------------------------------------------------------------
6,200 Hexcel Corporation 110,825
----------------------------------------------------------------
1,650 (a) Holophane Corp. 33,413
----------------------------------------------------------------
1,400 Hunt Manufacturers Co. 25,900
----------------------------------------------------------------
900 Huntco, Inc., Class A 11,700
----------------------------------------------------------------
4,300 IDEX Corp. 112,875
----------------------------------------------------------------
1,500 (a) Insilco Corp. 55,875
----------------------------------------------------------------
3,400 Interface, Inc. 76,075
----------------------------------------------------------------
2,900 Intermet Corp. 35,888
----------------------------------------------------------------
3,000 Juno Lighting, Inc. 46,500
----------------------------------------------------------------
2,900 Kaman Corp., Class A 37,338
----------------------------------------------------------------
2,700 Kaydon Corp. 119,475
----------------------------------------------------------------
4,400 Kennametal, Inc. 158,400
----------------------------------------------------------------
5,100 Keystone International, Inc. 100,725
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
PRODUCER MANUFACTURING--CONTINUED
----------------------------------------------------------------
3,000 Kimball International, Inc., Class B $ 105,750
----------------------------------------------------------------
2,300 Kuhlman Corp. 58,075
----------------------------------------------------------------
1,200 LSI Industries, Inc. 13,050
----------------------------------------------------------------
4,100 Lincoln Electric Co. 157,850
----------------------------------------------------------------
1,700 Lindsay Manufacturing Co. 48,450
----------------------------------------------------------------
1,900 (a) Littlefuse, Inc. 87,875
----------------------------------------------------------------
1,300 (a) MICROS Systems Corp. 43,713
----------------------------------------------------------------
3,500 Magnetek, Inc. 58,625
----------------------------------------------------------------
1,900 Manitowoc, Inc. 76,950
----------------------------------------------------------------
7,800 Miller Herman, Inc. 252,525
----------------------------------------------------------------
2,900 (a) Miller Industries, Inc. 34,438
----------------------------------------------------------------
3,600 Modine Manufacturing Co. 96,300
----------------------------------------------------------------
3,200 (a) Mueller Industries, Inc. 120,000
----------------------------------------------------------------
1,229 NACCO Industries, Inc., Class A 56,841
----------------------------------------------------------------
1,100 (a) NCI Building System, Inc. 34,100
----------------------------------------------------------------
1,450 NN Ball & Roller, Inc. 15,406
----------------------------------------------------------------
12,100 (a) Navistar International Corp. 136,125
----------------------------------------------------------------
3,600 (a) Nu-Kote Holdings, Inc., Class A 10,350
----------------------------------------------------------------
3,000 (a) Oak Industries, Inc. 56,250
----------------------------------------------------------------
1,300 (a) Oregon Metallurgical Corp. 29,900
----------------------------------------------------------------
1,750 (a) Osmonics, Inc. 27,563
----------------------------------------------------------------
2,000 Pacific Scientific Co. 25,250
----------------------------------------------------------------
1,200 (a) Park Ohio Industries, Inc. 14,550
----------------------------------------------------------------
1,400 Penn Engineering & Manufacturing Corp. 27,825
----------------------------------------------------------------
6,200 Pentair, Inc. 185,225
----------------------------------------------------------------
3,200 Pittston Co. 72,800
----------------------------------------------------------------
1,700 Ply Gem Industries, Inc. 21,675
----------------------------------------------------------------
3,650 Precision Castparts Corp. 195,275
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
PRODUCER MANUFACTURING--CONTINUED
----------------------------------------------------------------
3,400 Regal Beloit Corp. $ 80,750
----------------------------------------------------------------
1,300 Reliance Steel & Aluminum Co. 41,438
----------------------------------------------------------------
1,300 Robbins & Myers, Inc. 35,750
----------------------------------------------------------------
2,200 Roper Industries, Inc. 89,925
----------------------------------------------------------------
1,000 (a) SPS Technologies, Inc. 67,500
----------------------------------------------------------------
1,700 Scotsman Industries, Inc. 43,350
----------------------------------------------------------------
800 (a) Shiloh Industries, Inc. 12,400
----------------------------------------------------------------
600 (a) Simpson Manufacturing Co., Inc. 14,400
----------------------------------------------------------------
2,100 (a) Specialty Equipment Cos., Inc. 26,513
----------------------------------------------------------------
200 (a) Spinnaker Industries, Inc. 10,800
----------------------------------------------------------------
2,000 Standex International Corp. 50,000
----------------------------------------------------------------
1,200 Steel Technologies, Inc. 12,300
----------------------------------------------------------------
5,100 Stewart & Stevenson Services 122,400
----------------------------------------------------------------
2,500 TJ International, Inc. 55,625
----------------------------------------------------------------
3,000 Teleflex, Inc. 173,250
----------------------------------------------------------------
1,400 Tennant Co. 37,800
----------------------------------------------------------------
800 (a) Thermo Power Corp. 5,100
----------------------------------------------------------------
1,700 Thomas Industries, Inc. 39,950
----------------------------------------------------------------
1,900 Titan Wheel International, Inc. 27,550
----------------------------------------------------------------
1,100 (a) Tower Automotive, Inc. 40,700
----------------------------------------------------------------
1,300 Tredegar Industries, Inc. 59,963
----------------------------------------------------------------
2,500 (a) Triangle Pacific Corp. 67,813
----------------------------------------------------------------
3,940 Triarc Companies, Inc., Class A 73,383
----------------------------------------------------------------
2,600 Trimas Corp. 64,025
----------------------------------------------------------------
700 (a) TurboChef, Inc. 10,763
----------------------------------------------------------------
8,700 (a) U.S. Filter Corp. 264,263
----------------------------------------------------------------
5,700 (a) U.S. Office Products Co. 145,350
----------------------------------------------------------------
3,700 UNR Industries, Inc. 22,663
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
PRODUCER MANUFACTURING--CONTINUED
----------------------------------------------------------------
1,700 Valhi, Inc. $ 14,238
----------------------------------------------------------------
1,500 Valmont Industries, Inc. 59,813
----------------------------------------------------------------
3,050 Wabash National Corp. 54,519
----------------------------------------------------------------
6,600 (a) Walter Industries, Inc. 90,750
----------------------------------------------------------------
2,100 Watsco, Inc. 52,238
----------------------------------------------------------------
3,000 Watts Industries, Inc., Class A 76,500
----------------------------------------------------------------
2,300 Westinghouse Electric Corp. 33,063
----------------------------------------------------------------
2,300 (a) Wolverine Tube, Inc. 59,800
----------------------------------------------------------------
3,200 Zebra Technologies Co., Class A 73,600
----------------------------------------------------------------
1,600 Zero Corp. 31,200
----------------------------------------------------------------
2,000 Zurn Industries, Inc. 49,500
---------------------------------------------------------------- ------------
Total 8,251,817
---------------------------------------------------------------- ------------
RETAIL TRADE--4.2%
----------------------------------------------------------------
700 (a) American Eagle Outfitters, Inc. 8,313
----------------------------------------------------------------
3,800 (a) Ann Taylor Stores Corp. 92,150
----------------------------------------------------------------
4,375 Arbor Drugs, Inc. 80,391
----------------------------------------------------------------
1,950 (a) BMC West Corp. 20,963
----------------------------------------------------------------
5,200 (a) Best Buy Co., Inc. 70,200
----------------------------------------------------------------
1,300 Blair Corp. 19,663
----------------------------------------------------------------
6,200 (a) Bombay Co., Inc. 22,475
----------------------------------------------------------------
1,700 (a) Books-A-Million, Inc. 8,500
----------------------------------------------------------------
600 (a) Buckle, Inc. 8,850
----------------------------------------------------------------
2,600 (a) Burlington Coat Factory Warehouse 49,400
----------------------------------------------------------------
8,200 CML Group, Inc. 17,425
----------------------------------------------------------------
2,300 CPI Corp. 37,088
----------------------------------------------------------------
2,700 (a) Carson Pirie Scott & Co. 80,325
----------------------------------------------------------------
4,300 Casey's General Stores, Inc. 81,163
----------------------------------------------------------------
3,970 Cash America International, Inc. 35,234
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
RETAIL TRADE--CONTINUED
----------------------------------------------------------------
3,900 Cato Corp., Class A $ 18,038
----------------------------------------------------------------
15,500 Charming Shoppes, Inc. 91,547
----------------------------------------------------------------
2,200 (a) Chronimed, Inc. 17,325
----------------------------------------------------------------
7,775 Claire's Stores, Inc. 148,697
----------------------------------------------------------------
2,000 (a) Cole National Corp., Class A 66,000
----------------------------------------------------------------
200 Dart Group Corp., Class A 20,800
----------------------------------------------------------------
900 Delchamps, Inc. 20,813
----------------------------------------------------------------
1,400 (a) Discount Auto Parts, Inc. 22,750
----------------------------------------------------------------
2,600 (a) Dress Barn, Inc. 36,075
----------------------------------------------------------------
3,300 Duty Free International, Inc. 46,613
----------------------------------------------------------------
3,100 (a) Eagle Hardware & Garden, Inc. 58,125
----------------------------------------------------------------
2,400 (a) Egghead, Inc. 11,100
----------------------------------------------------------------
1,200 Elcom International, Inc. 6,000
----------------------------------------------------------------
2,700 (a) Express Scripts, Inc., Class A 99,225
----------------------------------------------------------------
2,400 (a) Fabri-Centers of America, Class A 48,300
----------------------------------------------------------------
6,800 Family Dollar Stores, Inc. 177,650
----------------------------------------------------------------
7,900 Fingerhut Companies, Inc. 117,513
----------------------------------------------------------------
2,400 (a) Friedmans, Inc., Class A 40,500
----------------------------------------------------------------
1,500 Gadzooks, Inc. 41,813
----------------------------------------------------------------
2,900 (a) Garden Ridge Corp. 23,563
----------------------------------------------------------------
4,200 (a) Genesco, Inc. 48,825
----------------------------------------------------------------
10,300 HEARx, Ltd. 19,956
----------------------------------------------------------------
3,500 Hancock Fabrics, Inc. 42,000
----------------------------------------------------------------
5,000 (a) Hechinger Co., Class A 8,125
----------------------------------------------------------------
8,100 Heilig-Meyers Co. 121,500
----------------------------------------------------------------
3,600 (a) Hollywood Entertainment Corp. 76,950
----------------------------------------------------------------
1,100 Ingles Markets, Inc., Class A 15,125
----------------------------------------------------------------
1,200 (a) Jenny Craig, Inc. 6,600
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
RETAIL TRADE--CONTINUED
----------------------------------------------------------------
3,350 (a) Jumbosports, Inc. $ 15,494
----------------------------------------------------------------
3,075 (a) Just For Feet, Inc. 48,816
----------------------------------------------------------------
2,600 Lands' End, Inc. 69,550
----------------------------------------------------------------
4,500 Longs Drug Stores Corp. 113,625
----------------------------------------------------------------
4,300 (a) MacFrugal's Bargains CloseOuts, Inc. 125,775
----------------------------------------------------------------
2,125 (a) Mens Wearhouse, Inc. 52,859
----------------------------------------------------------------
4,500 (a) Meyer (Fred), Inc. 185,063
----------------------------------------------------------------
3,300 (a) Michaels Stores, Inc. 63,525
----------------------------------------------------------------
2,350 (a) Microage, Inc. 29,669
----------------------------------------------------------------
800 (a) Movie Gallery, Inc. 4,100
----------------------------------------------------------------
3,200 (a) National Media Corp. 25,600
----------------------------------------------------------------
2,000 New Engineers Business Service, Inc. 52,750
----------------------------------------------------------------
700 (a) O'Reilly Automotive, Inc. 24,500
----------------------------------------------------------------
6,500 (a) Payless Cashway, Inc., Class A 11,375
----------------------------------------------------------------
2,650 (a) Petco Animal Supplies, Inc. 56,644
----------------------------------------------------------------
7,395 Pier 1 Imports, Inc. 146,051
----------------------------------------------------------------
10,000 Premark International, Inc. 245,000
----------------------------------------------------------------
2,700 (a) Proffitts, Inc. 100,913
----------------------------------------------------------------
1,450 Quality Food Centers, Inc. 58,181
----------------------------------------------------------------
1,900 Regis Corp. Minnesota 38,950
----------------------------------------------------------------
2,300 (a) Renters Choice, Inc. 32,200
----------------------------------------------------------------
1,300 Riser Foods, Inc., Class A 45,013
----------------------------------------------------------------
8,400 Ross Stores, Inc. 236,250
----------------------------------------------------------------
4,400 Ruddick Corp. 66,000
----------------------------------------------------------------
16,400 (a) Service Merchandise, Inc. 43,050
----------------------------------------------------------------
2,800 Shopko Stores, Inc. 56,000
----------------------------------------------------------------
1,600 Smart & Final, Inc. 31,000
----------------------------------------------------------------
2,067 Smith's Food & Drug Centers, Inc., Class B 69,245
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
RETAIL TRADE--CONTINUED
----------------------------------------------------------------
5,300 (a) Sports Authority, Inc. $ 94,075
----------------------------------------------------------------
1,550 (a) Stein Mart, Inc. 44,950
----------------------------------------------------------------
1,136 Strawbridge & Clothier, Inc., Class A 19,312
----------------------------------------------------------------
700 (a) Tractor Supply Co. 13,125
----------------------------------------------------------------
1,500 (a) Urban Outfitters, Inc. 18,750
----------------------------------------------------------------
1,600 (a) Value City Department Stores, Inc. 13,600
----------------------------------------------------------------
4,900 (a) Valuevision International, Inc., Class A 16,844
----------------------------------------------------------------
5,100 (a) Waban, Inc. 136,425
----------------------------------------------------------------
1,400 (a) West Marine, Inc. 36,400
----------------------------------------------------------------
900 (a) Wet Seal, Inc., Class A 22,275
----------------------------------------------------------------
3,100 Whole Foods Market, Inc. 71,300
----------------------------------------------------------------
3,200 (a) Williams-Sonoma, Inc. 99,200
----------------------------------------------------------------
5,400 (a) Zale Corp. 99,900
---------------------------------------------------------------- ------------
Total 4,817,022
---------------------------------------------------------------- ------------
SERVICES--9.6%
----------------------------------------------------------------
2,200 (a) 7th Level, Inc. 5,225
----------------------------------------------------------------
2,500 ABM Industries, Inc. 46,875
----------------------------------------------------------------
3,400 (a) ABR Information Services, Inc. 68,425
----------------------------------------------------------------
3,700 (a) ADVO, Inc. 44,863
----------------------------------------------------------------
500 (a) AMC Entertainment, Inc. 9,688
----------------------------------------------------------------
2,200 (a) APS Holding Corp., Class A 20,900
----------------------------------------------------------------
2,900 (a) ATC Communications, Inc. 9,063
----------------------------------------------------------------
3,200 Ackerley Communications, Inc. 32,800
----------------------------------------------------------------
3,100 (a) Air and Water Technology Corp., Class A 12,788
----------------------------------------------------------------
2,800 (a) Alliance Entertainment Corp. 3,500
----------------------------------------------------------------
10,100 (a) Allied Waste Industries, Inc. 112,363
----------------------------------------------------------------
5,100 (a) Allwaste, Inc. 45,263
----------------------------------------------------------------
1,750 (a) American Business Information 33,250
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
SERVICES--CONTINUED
----------------------------------------------------------------
2,050 American Business Products, Inc. $ 49,200
----------------------------------------------------------------
6,800 American Media, Inc. 37,400
----------------------------------------------------------------
3,790 (a) American Radio Systems Corp. 110,858
----------------------------------------------------------------
400 (a) Ameristar Casinos, Inc. 2,150
----------------------------------------------------------------
2,400 Amresco, Inc. 34,950
----------------------------------------------------------------
1,000 (a) Anchor Gaming 25,000
----------------------------------------------------------------
1,500 Angelica Corp. 23,625
----------------------------------------------------------------
4,137 Apple South, Inc. 53,781
----------------------------------------------------------------
5,100 Applebee's International, Inc. 119,213
----------------------------------------------------------------
2,050 Applied Industrial Technologies, Inc. 64,831
----------------------------------------------------------------
2,400 (a) Argosy Gaming Corp. 8,400
----------------------------------------------------------------
1,900 (a) Argyle Television, Inc., Class A 47,738
----------------------------------------------------------------
900 Ascent Entertainment Group, Inc. 8,775
----------------------------------------------------------------
2,294 (a) Avatex Corp. 2,007
----------------------------------------------------------------
7,500 (a) Aztar Corp. 48,750
----------------------------------------------------------------
900 (a) BARRA, Inc. 23,400
----------------------------------------------------------------
1,100 (a) BET Holdings, Inc., Class A 31,763
----------------------------------------------------------------
1,600 (a) BT Office Products International, Inc. 12,200
----------------------------------------------------------------
200 (a) Bally's Grand, Inc. 7,675
----------------------------------------------------------------
5,150 Banta Corp. 130,038
----------------------------------------------------------------
2,300 Bell & Howell Group, Inc. 54,338
----------------------------------------------------------------
500 Berlitz International, Inc. 12,063
----------------------------------------------------------------
2,600 Big Flower Press Holdings, Inc. 49,400
----------------------------------------------------------------
2,500 (a) Billing Information Concepts 59,688
----------------------------------------------------------------
7,000 Bob Evans Farms, Inc. 92,750
----------------------------------------------------------------
1,900 (a) Borg Warner Security Corp. 26,363
----------------------------------------------------------------
2,900 Bowne & Co., Inc. 76,850
----------------------------------------------------------------
4,200 Boyd Gaming Corporation 24,150
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
SERVICES--CONTINUED
----------------------------------------------------------------
2,800 Bristol Hotel Company $ 105,700
----------------------------------------------------------------
7,425 (a) Buffets, Inc. 56,616
----------------------------------------------------------------
1,000 Butler Manufacturing Co. 33,250
----------------------------------------------------------------
1,600 (a) CDI Corp. 60,600
----------------------------------------------------------------
4,900 CKE Restaurants, Inc. 96,163
----------------------------------------------------------------
500 (a) CKS Group, Inc. 10,563
----------------------------------------------------------------
1,100 CMG Information Services, Inc. 14,025
----------------------------------------------------------------
1,200 (a) CSS Industries, Inc. 38,850
----------------------------------------------------------------
1,600 (a) Carmike Cinemas, Inc., Class A 49,600
----------------------------------------------------------------
3,850 (a) Casino American, Inc. 8,422
----------------------------------------------------------------
1,700 (a) Casino Data Systems 7,438
----------------------------------------------------------------
4,200 (a) Casino Magic Corp. 5,119
----------------------------------------------------------------
1,800 Castle (A.M.) & Co. 31,050
----------------------------------------------------------------
3,200 (a) Catalina Marketing Corp. 100,800
----------------------------------------------------------------
800 Central Parking Corp. 22,000
----------------------------------------------------------------
3,400 Checkfree Corp. 47,175
----------------------------------------------------------------
1,400 (a) Cheesecake Factory, Inc. 25,550
----------------------------------------------------------------
2,073 (a) Consolidated Products, Inc. 29,799
----------------------------------------------------------------
1,300 (a) Copart, Inc. 16,900
----------------------------------------------------------------
2,150 (a) Corestaff, Inc. 37,356
----------------------------------------------------------------
700 (a) Daisytek International Corp. 19,075
----------------------------------------------------------------
1,800 (a) Daka International, Inc. 14,625
----------------------------------------------------------------
2,400 Dames & Moore, Inc. 30,600
----------------------------------------------------------------
4,400 (a) Data Broadcasting Corp. 24,750
----------------------------------------------------------------
500 Data Processing Resources Corp. 9,188
----------------------------------------------------------------
1,500 Data Transmission Network Corp. 34,688
----------------------------------------------------------------
900 (a) Day Runner, Inc. 24,750
----------------------------------------------------------------
4,400 (a) DeVRY, Inc. 96,800
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
SERVICES--CONTINUED
----------------------------------------------------------------
1,400 (a) Dendrite International, Inc. $ 11,725
----------------------------------------------------------------
1,100 (a) Desktop Data, Inc. 7,975
----------------------------------------------------------------
2,200 (a) Destec Energy, Inc. 45,925
----------------------------------------------------------------
1,100 (a) Devon Group, Inc. 31,075
----------------------------------------------------------------
6,673 (a) Doubletree Corp. 280,058
----------------------------------------------------------------
800 Eagle River Interactive, Inc. 8,700
----------------------------------------------------------------
1,300 (a) Emmis Broadcasting Corp., Class A 45,500
----------------------------------------------------------------
3,200 Employee Solutions, Inc. 16,050
----------------------------------------------------------------
2,700 Ennis Business Forms, Inc. 27,000
----------------------------------------------------------------
1,400 (a) Equity Corporation International 30,100
----------------------------------------------------------------
3,550 (a) Evergreen Media Corp., Class A 114,931
----------------------------------------------------------------
7,402 (a) Extended Stay America, Inc. 111,955
----------------------------------------------------------------
1,300 Fair Isaac & Co., Inc. 41,113
----------------------------------------------------------------
3,400 Fisher Scientific International, Inc. 144,075
----------------------------------------------------------------
6,200 Fleming Cos., Inc. 100,750
----------------------------------------------------------------
6,500 (a) Foodmaker, Inc. 70,688
----------------------------------------------------------------
1,300 (a) Franklin Electronic Publishers, Inc. 13,000
----------------------------------------------------------------
2,600 (a) Franklin Quest Co. 54,925
----------------------------------------------------------------
3,050 G & K Services, Inc., Class A 88,450
----------------------------------------------------------------
900 (a) GC Cos., Inc. 36,113
----------------------------------------------------------------
1,500 GRC International 6,750
----------------------------------------------------------------
3,200 (a) Golden Books Family Entertainment, Inc. 26,400
----------------------------------------------------------------
1,850 Granite Construction, Inc. 36,769
----------------------------------------------------------------
100 Grey Advertising, Inc. 26,300
----------------------------------------------------------------
7,600 (a) Greyhound Lines, Inc. 27,075
----------------------------------------------------------------
1,400 HA-LO Industries, Inc. 23,450
----------------------------------------------------------------
8,010 (a) HSN, Inc. 188,235
----------------------------------------------------------------
5,500 Handleman Co. 34,375
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
SERVICES--CONTINUED
----------------------------------------------------------------
5,100 Harland (John H.) Co. $ 105,188
----------------------------------------------------------------
2,737 Harte-Hanks 74,583
----------------------------------------------------------------
1,000 Harveys Casino Resorts 15,125
----------------------------------------------------------------
1,200 (a) Heftel Broadcasting Corp. , Class A 60,000
----------------------------------------------------------------
5,500 (a) Heritage Media Corp., Class A 100,375
----------------------------------------------------------------
4,100 Hollinger International Publishing, Inc. 41,000
----------------------------------------------------------------
2,500 (a) Hollywood Park, Inc. 31,250
----------------------------------------------------------------
4,700 (a) Host Marriott Services Corp. 41,713
----------------------------------------------------------------
2,300 Houghton Mifflin Co. 129,088
----------------------------------------------------------------
1,100 Hughes Supply, Inc. 36,438
----------------------------------------------------------------
1,400 (a) IHOP Corp. 36,750
----------------------------------------------------------------
775 (a) ITT Educational Services, Inc. 17,631
----------------------------------------------------------------
3,100 (a) Identix, Inc. 23,444
----------------------------------------------------------------
1,300 (a) Inference Corp. 6,663
----------------------------------------------------------------
1,300 (a) Infinium Software, Inc. 8,044
----------------------------------------------------------------
3,400 (a) Insituform Technologies, Inc., Class A 18,700
----------------------------------------------------------------
400 (a) Intelliquest Information Group, Inc. 6,500
----------------------------------------------------------------
2,600 (a) Interim Services, Inc. 100,750
----------------------------------------------------------------
2,500 (a) International Dairy Queen, Inc., Class A 53,125
----------------------------------------------------------------
2,300 (a) JP Foodservice, Inc. 64,113
----------------------------------------------------------------
3,500 (a) Jacobs Engineering Group, Inc. 89,250
----------------------------------------------------------------
1,100 (a) Jacor Communications, Inc., Class A 30,938
----------------------------------------------------------------
1,700 (a) KFX, Inc. 6,588
----------------------------------------------------------------
2,300 (a) Katz Media Group 14,231
----------------------------------------------------------------
1,400 Landauer, Inc. 30,625
----------------------------------------------------------------
2,700 (a) Landrys Seafood Restaurants, Inc. 37,927
----------------------------------------------------------------
1,100 Lawson Products, Inc. 24,888
----------------------------------------------------------------
1,100 (a) Learning Tree International, Inc. 34,650
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
SERVICES--CONTINUED
----------------------------------------------------------------
2,100 (a) Lin Television Corp. $ 86,888
----------------------------------------------------------------
3,900 Luby's Cafeterias, Inc. 71,175
----------------------------------------------------------------
1,200 (a) Mail Boxes, ETC. 22,200
----------------------------------------------------------------
400 (a) Manhattan Bagel Co., Inc. 2,150
----------------------------------------------------------------
1,950 Marcus Corp. 43,388
----------------------------------------------------------------
1,650 (a) Mastec, Inc. 47,850
----------------------------------------------------------------
1,100 (a) May & Speh, Inc. 8,113
----------------------------------------------------------------
6,225 McClatchy Newspapers, Inc. , Class A 156,403
----------------------------------------------------------------
1,900 Media General, Inc., Class A 56,050
----------------------------------------------------------------
900 Merrill Corp. 20,925
----------------------------------------------------------------
6,042 (a) Metromedia International Group, Inc. 56,266
----------------------------------------------------------------
2,400 (a) Molten Metal Technology 13,500
----------------------------------------------------------------
1,600 (a) Morrison Health Care, Inc. 23,800
----------------------------------------------------------------
2,600 (a) Morrison Knudsen Corp. 32,500
----------------------------------------------------------------
1,500 (a) NFO Research, Inc. 27,375
----------------------------------------------------------------
2,800 (a) NPC International, Inc. 30,800
----------------------------------------------------------------
1,800 Nash Finch Co. 31,725
----------------------------------------------------------------
6,000 (a) National Education Corp. 121,500
----------------------------------------------------------------
1,815 (a) Newpark Resources, Inc. 81,448
----------------------------------------------------------------
3,300 (a) Noel Group, Inc. 10,725
----------------------------------------------------------------
2,300 Norrell Corp. 60,663
----------------------------------------------------------------
3,200 (a) OHM Corp. 23,600
----------------------------------------------------------------
8,100 Ogden Corp. 170,100
----------------------------------------------------------------
900 (a) On Assignment, Inc. 27,900
----------------------------------------------------------------
900 (a) PEC Israel Economic Corp. 17,100
----------------------------------------------------------------
4,800 (a) PMT Services, Inc. 57,000
----------------------------------------------------------------
2,150 (a) Papa Johns International, Inc. 55,363
----------------------------------------------------------------
7,300 Patriot American Hospitality, Inc. 156,950
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
SERVICES--CONTINUED
----------------------------------------------------------------
200 (a) Paxson Communications Corp. $ 2,000
----------------------------------------------------------------
900 (a) Penn National Gaming, Inc. 12,375
----------------------------------------------------------------
1,450 (a) Performance Food Group Co. 27,550
----------------------------------------------------------------
2,000 (a) Personnel Group of America, Inc. 48,000
----------------------------------------------------------------
3,700 Petroleum Heat & Power, Inc., Class A 10,175
----------------------------------------------------------------
7,300 Phoenix Duff & Phelps Corp. 53,838
----------------------------------------------------------------
800 (a) Pinkertons, Inc. 21,200
----------------------------------------------------------------
3,300 (a) Playboy Enterprises, Inc., Class B 45,788
----------------------------------------------------------------
4,800 (a) Players International, Inc. 17,400
----------------------------------------------------------------
3,700 (a) Prepaid Legal Services, Inc. 52,725
----------------------------------------------------------------
1,300 (a) Primadonna Resorts, Inc. 24,375
----------------------------------------------------------------
4,300 (a) Primark Corp. 78,475
----------------------------------------------------------------
5,100 (a) Prime Hospitality Corp. 84,788
----------------------------------------------------------------
800 (a) Profit Recovery Group International, Inc. 11,400
----------------------------------------------------------------
4,000 (a) PsiNet, Inc. 23,000
----------------------------------------------------------------
933 Pulitzer Publishing Co. 41,883
----------------------------------------------------------------
1,500 (a) Quality Dining, Inc. 11,250
----------------------------------------------------------------
700 (a) Quintel Entertainment, Inc. 6,913
----------------------------------------------------------------
1,500 (a) Rainforest Cafe Inc. 35,813
----------------------------------------------------------------
1,300 (a) Rare Hospitality International, Inc. 15,113
----------------------------------------------------------------
1,600 (a) Red Roof Inns, Inc. 24,600
----------------------------------------------------------------
4,437 (a) Regal Cinemas, Inc. 120,908
----------------------------------------------------------------
400 (a) Renaissance Solutions, Inc. 8,700
----------------------------------------------------------------
2,100 (a) Rexel, Inc. 37,013
----------------------------------------------------------------
2,700 (a) Rio Hotel & Casino, Inc. 37,463
----------------------------------------------------------------
9,900 (a) Rollins Environmental Services, Inc. 28,463
----------------------------------------------------------------
3,400 Rollins, Inc. 65,450
----------------------------------------------------------------
1,000 (a) Romac International, Inc. 19,500
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
SERVICES--CONTINUED
----------------------------------------------------------------
2,350 Ruby Tuesday, Inc. $ 46,413
----------------------------------------------------------------
1,700 (a) Rural / Metro Corp. 48,875
----------------------------------------------------------------
8,400 (a) Ryan's Family Steak Houses, Inc. 74,550
----------------------------------------------------------------
4,400 Rykoff Sexton, Inc. 79,750
----------------------------------------------------------------
2,200 SEI Corp. 46,200
----------------------------------------------------------------
900 (a) SFX Broadcasting, Inc. 28,350
----------------------------------------------------------------
1,200 (a) SPS Transaction Services, Inc. 21,600
----------------------------------------------------------------
9,600 Safety-Kleen Corp. 142,800
----------------------------------------------------------------
1,500 (a) Saga Communications, Inc., Class A 26,438
----------------------------------------------------------------
2,050 Sbarro, Inc. 57,913
----------------------------------------------------------------
2,000 (a) Scholastic Corp. 50,000
----------------------------------------------------------------
2,100 (a) Scientific Games Holdings Corp. 46,200
----------------------------------------------------------------
1,950 (a) Seattle Filmworks, Inc. 19,013
----------------------------------------------------------------
6,600 (a) Shoney's, Inc. 30,525
----------------------------------------------------------------
2,550 (a) ShowBiz Pizza Time, Inc. 49,088
----------------------------------------------------------------
2,700 Showboat, Inc. 55,013
----------------------------------------------------------------
1,800 (a) Shuffle Master, Inc. 14,175
----------------------------------------------------------------
3,800 Shurgard Storage Centers, Inc., Class A 99,750
----------------------------------------------------------------
3,500 (a) Sitel Corp. 34,563
----------------------------------------------------------------
1,500 (a) Sodak Gaming, Inc. 17,625
----------------------------------------------------------------
2,250 (a) Sonic Corp. 29,813
----------------------------------------------------------------
7,300 Sothebys Holdings, Inc., Class A 115,888
----------------------------------------------------------------
2,200 Spelling Entertainment Group, Inc. 12,100
----------------------------------------------------------------
2,100 Standard Register 69,038
----------------------------------------------------------------
3,000 (a) Station Casinos, Inc. 26,625
----------------------------------------------------------------
400 (a) Steck-Vaughn Publishing Corp. 5,150
----------------------------------------------------------------
1,200 Stone & Webster, Inc. 45,900
----------------------------------------------------------------
4,000 Storage USA, Inc. 150,500
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
SERVICES--CONTINUED
----------------------------------------------------------------
1,900 (a) Strategic Distribution, Inc. $ 7,570
----------------------------------------------------------------
1,700 (a) Stratosphere Corp. 476
----------------------------------------------------------------
3,700 (a) SunRiver Corp. 4,047
----------------------------------------------------------------
600 (a) Superior Services, Inc. 13,200
----------------------------------------------------------------
3,000 (a) Sylvan Learning Systems, Inc. 90,375
----------------------------------------------------------------
2,106 (a) Tetra Tech, Inc. 30,011
----------------------------------------------------------------
2,100 (a) Tetra Technologies, Inc. 48,825
----------------------------------------------------------------
800 (a) Thermo Ecotek Corp. 11,200
----------------------------------------------------------------
250 Thermo Remediation, Inc. 1,906
----------------------------------------------------------------
600 (a) Thermo Terratech, Inc. 5,550
----------------------------------------------------------------
2,175 Thomas Nelson, Inc. 19,847
----------------------------------------------------------------
7,300 (a) Transitional Hospitals Corp. 73,000
----------------------------------------------------------------
700 Trigen Energy Corp. 17,063
----------------------------------------------------------------
3,100 True North Communications, Inc. 59,288
----------------------------------------------------------------
4,000 (a) Trump Hotels & Casino Resorts, Inc. 34,500
----------------------------------------------------------------
3,400 Unifirst Corp. 64,600
----------------------------------------------------------------
2,400 (a) United Stationers, Inc. 49,800
----------------------------------------------------------------
700 United Television, Inc. 62,388
----------------------------------------------------------------
6,500 (a) United Waste Systems, Inc. 219,375
----------------------------------------------------------------
3,000 (a) VWR Scientific Products Corp. 45,000
----------------------------------------------------------------
3,500 (a) Valassis Communication, Inc. 85,750
----------------------------------------------------------------
300 Value Line, Inc. 9,975
----------------------------------------------------------------
2,600 (a) Vanstar Corp. 19,175
----------------------------------------------------------------
2,500 (a) Veritas DGC, Inc. 48,125
----------------------------------------------------------------
900 (a) Volt Information Science, Inc. 46,800
----------------------------------------------------------------
750 (a) WHG Resorts & Casinos, Inc. 7,031
----------------------------------------------------------------
3,000 (a) WMS Industries, Inc. 53,625
----------------------------------------------------------------
1,900 (a) Wackenhut Corp., Class A 30,638
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
SERVICES--CONTINUED
----------------------------------------------------------------
1,000 Wackenhut Corrections Corp. $ 15,750
----------------------------------------------------------------
500 Waverly, Inc. 10,250
----------------------------------------------------------------
5,000 (a) Westwood One, Inc. 119,375
----------------------------------------------------------------
2,200 Wiley (John) & Sons, Inc., Class A 66,275
----------------------------------------------------------------
1,500 (a) Wilmar Industries, Inc. 24,750
----------------------------------------------------------------
5,700 (a) World Color Press 136,800
----------------------------------------------------------------
1,400 (a) Young Broadcasting, Inc., Class A 37,100
----------------------------------------------------------------
1,100 (a) Youth Services International, Inc. 10,863
---------------------------------------------------------------- ------------
Total 11,126,623
---------------------------------------------------------------- ------------
TECHNOLOGY--13.0%
----------------------------------------------------------------
1,200 (a) 3D Systems Corp. 7,800
----------------------------------------------------------------
2,600 AAR Corp. 77,350
----------------------------------------------------------------
1,500 (a) ACT Networks, Inc. 20,250
----------------------------------------------------------------
5,722 (a) AST Research, Inc. 29,504
----------------------------------------------------------------
3,100 (a) Actel Corp. 55,413
----------------------------------------------------------------
7,200 (a) Acxiom Corp. 94,500
----------------------------------------------------------------
1,000 Advanced Energy Industries, Inc. 8,875
----------------------------------------------------------------
500 (a) Advent Software, Inc. 12,438
----------------------------------------------------------------
4,200 (a) Affiliated Computer Services, Inc., Class A 109,200
----------------------------------------------------------------
3,700 (a) Alliance Semiconductor Corp. 25,669
----------------------------------------------------------------
1,600 Alliant Techsystems, Inc. 67,000
----------------------------------------------------------------
2,200 (a) Alternative Resources Corp. 31,900
----------------------------------------------------------------
2,150 (a) Altron, Inc. 35,744
----------------------------------------------------------------
325 (a) American Satellite Network, Warrants 0
----------------------------------------------------------------
4,800 (a) Ampex, Inc., Class A 27,000
----------------------------------------------------------------
1,150 Anadigics, Inc. 32,488
----------------------------------------------------------------
1,300 Analogic Corp. 38,025
----------------------------------------------------------------
2,400 Analysts International Corp. 68,400
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
TECHNOLOGY--CONTINUED
----------------------------------------------------------------
1,000 (a) Ancor Communications, Inc. $ 4,125
----------------------------------------------------------------
4,150 (a) Antec Corp. 36,313
----------------------------------------------------------------
2,000 (a) Applied Digital Access, Inc. 7,750
----------------------------------------------------------------
1,500 (a) Applied Innovation, Inc. 7,500
----------------------------------------------------------------
4,000 (a) Applied Magnetics Corp. 100,500
----------------------------------------------------------------
1,400 (a) Applix, Inc. 4,900
----------------------------------------------------------------
1,900 (a) Arbor Software Corp. 47,263
----------------------------------------------------------------
3,400 (a) Aspen Technologies, Inc. 103,275
----------------------------------------------------------------
600 (a) Astea International, Inc. 1,163
----------------------------------------------------------------
4,200 (a) Auspex Systems, Inc. 33,600
----------------------------------------------------------------
2,919 (a) Avant Corp. 41,406
----------------------------------------------------------------
2,600 Aviall, Inc. 30,875
----------------------------------------------------------------
3,500 (a) Avid Technology, Inc. 67,813
----------------------------------------------------------------
3,400 (a) BBN Corp. 79,050
----------------------------------------------------------------
5,000 (a) BDM International, Inc. 116,250
----------------------------------------------------------------
3,000 BE Aerospace, Inc. 73,875
----------------------------------------------------------------
900 (a) BRC Holdings, Inc. 26,775
----------------------------------------------------------------
500 Bacou U.S.A., Inc. 7,375
----------------------------------------------------------------
3,479 (a) BancTec, Inc. 79,582
----------------------------------------------------------------
1,000 (a) Berg Electronics Corp. 30,000
----------------------------------------------------------------
4,100 (a) Bisys Group, Inc. 131,200
----------------------------------------------------------------
2,800 (a) Black Box Corp. 66,150
----------------------------------------------------------------
800 (a) Boca Research, Inc. 4,100
----------------------------------------------------------------
2,787 (a) Boole & Babbage, Inc. 59,224
----------------------------------------------------------------
5,100 (a) Borland International, Inc. 34,744
----------------------------------------------------------------
4,000 (a) Boston Technology, Inc. 80,000
----------------------------------------------------------------
2,787 (a) Brightpoint, Inc. 60,966
----------------------------------------------------------------
1,500 (a) Brite Voice Systems, Inc. 11,813
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
TECHNOLOGY--CONTINUED
----------------------------------------------------------------
2,000 (a) Broadband Technologies, Inc. $ 18,750
----------------------------------------------------------------
1,400 Brooktrout Technology, Inc. 15,925
----------------------------------------------------------------
4,125 (a) Burr Brown Corp. 121,688
----------------------------------------------------------------
1,600 (a) C-COR Electronics, Inc. 15,400
----------------------------------------------------------------
1,600 (a) C.P. Clare Corp. 14,400
----------------------------------------------------------------
500 CSG Systems International, Inc. 8,875
----------------------------------------------------------------
700 CTS Corp. 43,750
----------------------------------------------------------------
2,200 (a) Caere Corp. 14,300
----------------------------------------------------------------
2,000 California Amplifier, Inc. 7,000
----------------------------------------------------------------
2,600 (a) California Microwave 33,800
----------------------------------------------------------------
1,500 (a) Cellstar Corp. 36,000
----------------------------------------------------------------
3,490 (a) Cellular Technical Services, Inc. 50,605
----------------------------------------------------------------
3,700 (a) Chips & Technologies, Inc. 30,294
----------------------------------------------------------------
1,400 (a) Ciber, Inc. 50,050
----------------------------------------------------------------
2,000 (a) Cidco, Inc. 25,500
----------------------------------------------------------------
3,900 (a) Citrix Systems Inc. 58,256
----------------------------------------------------------------
1,700 Clarify, Inc. 14,556
----------------------------------------------------------------
5,400 (a) Cognex Corp. 132,975
----------------------------------------------------------------
1,500 (a) Coherent Communications Systems Corp. 24,563
----------------------------------------------------------------
1,800 (a) Coherent, Inc. 74,700
----------------------------------------------------------------
1,500 Cohu, Inc. 36,938
----------------------------------------------------------------
3,900 (a) Compucom System, Inc. 22,913
----------------------------------------------------------------
2,400 (a) Computer Horizons Corp. 104,400
----------------------------------------------------------------
500 Computer Language Research, Inc. 5,063
----------------------------------------------------------------
700 Computer Management Sciences 9,188
----------------------------------------------------------------
3,900 (a) Computer Network Technology 19,744
----------------------------------------------------------------
4,000 (a) Computer Products, Inc. 68,500
----------------------------------------------------------------
1,200 Computer Task Group, Inc. 51,750
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
TECHNOLOGY--CONTINUED
----------------------------------------------------------------
10,600 (a) Computervision Corp. $ 37,100
----------------------------------------------------------------
1,600 Comshare, Inc. 18,600
----------------------------------------------------------------
3,500 (a) Comverse Technology, Inc. 137,375
----------------------------------------------------------------
2,200 (a) Control Data Systems, Inc. 29,150
----------------------------------------------------------------
1,200 Cooper & Chyan Technology, Inc. 29,100
----------------------------------------------------------------
7,600 (a) CopyTele, Inc. 34,200
----------------------------------------------------------------
3,550 (a) Credence Systems Corp. 56,356
----------------------------------------------------------------
1,900 (a) Cree Research, Inc. 22,800
----------------------------------------------------------------
900 Cubic Corp. 18,900
----------------------------------------------------------------
400 Curtiss Wright Corp. 23,200
----------------------------------------------------------------
1,000 (a) Cybercash, Inc. 14,000
----------------------------------------------------------------
2,800 (a) Cyrix Corp. 58,100
----------------------------------------------------------------
1,250 (a) D H Technology, Inc. 17,188
----------------------------------------------------------------
2,000 (a) DII Group, Inc. 59,500
----------------------------------------------------------------
7,300 (a) DSP Communications, Inc. 57,944
----------------------------------------------------------------
4,600 Dallas Semiconductor Corp. 167,900
----------------------------------------------------------------
2,400 Daniel Industries, Inc. 30,600
----------------------------------------------------------------
6,300 (a) Data General Corp. 118,125
----------------------------------------------------------------
600 (a) Datastream Systems, Inc. 7,650
----------------------------------------------------------------
900 Davox Corp. 29,700
----------------------------------------------------------------
1,200 DecisionOne Corp. 17,700
----------------------------------------------------------------
1,300 (a) Dialogic Corp. 25,675
----------------------------------------------------------------
5,000 Diamond Multimedia Systems, Inc. 34,375
----------------------------------------------------------------
2,000 (a) Digi International, Inc. 13,250
----------------------------------------------------------------
2,500 (a) Digtial Microwave Corp. 64,375
----------------------------------------------------------------
2,100 (a) Dionex Corp. 102,638
----------------------------------------------------------------
1,600 (a) Documentum, Inc. 29,600
----------------------------------------------------------------
2,900 (a) Dynatech Corp. 100,775
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
TECHNOLOGY--CONTINUED
----------------------------------------------------------------
1,500 (a) EIS International, Inc. $ 7,313
----------------------------------------------------------------
3,000 (a) ESS Technology, Inc. 41,250
----------------------------------------------------------------
1,400 (a) Electro Scientific Industries, Inc. 39,025
----------------------------------------------------------------
3,000 (a) Electroglas, Inc. 47,625
----------------------------------------------------------------
900 (a) Eltron International, Inc. 18,000
----------------------------------------------------------------
1,500 (a) Encad, Inc. 55,125
----------------------------------------------------------------
1,900 (a) Envoy Corp. 39,663
----------------------------------------------------------------
1,400 (a) Esterline Technologies Corp. 39,550
----------------------------------------------------------------
2,500 (a) Etec Systems, Inc. 72,813
----------------------------------------------------------------
1,500 (a) Evans & Sutherland Computer Co. 34,875
----------------------------------------------------------------
3,600 (a) Exabyte Corp. 48,600
----------------------------------------------------------------
1,400 (a) Excalibur Technologies Corp. 8,925
----------------------------------------------------------------
600 Excite, Inc. 5,475
----------------------------------------------------------------
7,600 (a) Executone Information Systems, Inc. 16,150
----------------------------------------------------------------
3,800 (a) FSI International, Inc. 45,600
----------------------------------------------------------------
5,200 (a) FTP Software, Inc. 23,400
----------------------------------------------------------------
1,600 FastComm Communications Corp. 8,000
----------------------------------------------------------------
2,500 (a) Filenet Corp. 27,813
----------------------------------------------------------------
1,300 (a) Fusion Systems Corp. 34,288
----------------------------------------------------------------
1,100 Galileo Electro-Optics Corp. 5,638
----------------------------------------------------------------
1,350 (a) Gasonics International Corp. 11,475
----------------------------------------------------------------
4,400 GenCorp, Inc. 82,500
----------------------------------------------------------------
4,400 (a) GenRad, Inc. 72,600
----------------------------------------------------------------
3,400 (a) General DataComm Industries, Inc. 22,950
----------------------------------------------------------------
2,200 (a) General Magic, Inc. 2,338
----------------------------------------------------------------
1,300 General Scanning, Inc. 14,950
----------------------------------------------------------------
2,700 (a) Genus, Inc. 10,125
----------------------------------------------------------------
9,400 Geotek Industries, Inc. 35,250
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
TECHNOLOGY--CONTINUED
----------------------------------------------------------------
1,800 Geoworks $ 13,050
----------------------------------------------------------------
2,800 Gerber Scientific, Inc. 46,200
----------------------------------------------------------------
1,200 Greenwich Air Services, Inc., Class A 33,000
----------------------------------------------------------------
1,400 (a) HADCO Corp. 59,850
----------------------------------------------------------------
1,600 HMT Technology Corp. 17,600
----------------------------------------------------------------
3,100 HNC Software 82,150
----------------------------------------------------------------
625 Hach Co. 9,063
----------------------------------------------------------------
2,350 (a) Harbinger Corp. 47,000
----------------------------------------------------------------
1,700 (a) Harmonic Lightwaves, Inc. 28,050
----------------------------------------------------------------
1,200 Helix Technology Corp. 36,450
----------------------------------------------------------------
1,800 Henry Jack & Associates, Inc. 34,200
----------------------------------------------------------------
2,700 (a) Hutchinson Technology, Inc. 73,238
----------------------------------------------------------------
2,800 (a) Hyperion Software Corp. 45,500
----------------------------------------------------------------
800 (a) IDT Corp. 4,400
----------------------------------------------------------------
1,400 (a) IKOS Systems, Inc. 23,100
----------------------------------------------------------------
4,700 (a) IMP, Inc. 7,931
----------------------------------------------------------------
600 (a) IPC Information Systems, Inc. 7,500
----------------------------------------------------------------
1,400 (a) In Focus Systems, Inc. 25,025
----------------------------------------------------------------
1,500 (a) Inacom Corp. 33,188
----------------------------------------------------------------
500 (a) Individual, Inc. 2,938
----------------------------------------------------------------
600 (a) Indus Group, Inc. 9,075
----------------------------------------------------------------
4,500 (a) Information Resources, Inc. 59,625
----------------------------------------------------------------
1,300 (a) Inso Corp. 27,300
----------------------------------------------------------------
12,800 (a) Integrated Device Technology, Inc. 150,400
----------------------------------------------------------------
400 (a) Integrated Measurement Systems, Inc 5,300
----------------------------------------------------------------
1,500 (a) Integrated Packaging Assembly Corp. 6,375
----------------------------------------------------------------
2,300 (a) Integrated Process Equipment Corp. 31,338
----------------------------------------------------------------
2,500 (a) Integrated Silicon Solution, Inc. 18,125
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
TECHNOLOGY--CONTINUED
----------------------------------------------------------------
2,500 (a) Integrated Systems, Inc. $ 24,063
----------------------------------------------------------------
2,600 (a) Intelidata Technologies Corp. 12,025
----------------------------------------------------------------
5,100 Intelligent Electronics, Inc. 15,300
----------------------------------------------------------------
1,400 (a) Inter-Tel, Inc. 17,500
----------------------------------------------------------------
7,600 (a) Interdigital Communications Corp. 35,625
----------------------------------------------------------------
6,600 (a) Intergraph Corp. 42,075
----------------------------------------------------------------
3,200 (a) Intersolv, Inc. 24,400
----------------------------------------------------------------
2,700 (a) Intervoice, Inc. 25,650
----------------------------------------------------------------
500 (a) Intevac, Inc. 6,500
----------------------------------------------------------------
700 (a) Iron Mountain, Inc. 16,450
----------------------------------------------------------------
1,600 (a) Itron, Inc. 33,600
----------------------------------------------------------------
400 (a) JDA Software Group, Inc. 10,100
----------------------------------------------------------------
1,000 (a) Jabil Circuit, Inc. 48,375
----------------------------------------------------------------
1,000 John Fluke Manufacturing, Co. 45,125
----------------------------------------------------------------
5,500 (a) Keane, Inc. 255,063
----------------------------------------------------------------
6,400 (a) Kemet Corp. 124,800
----------------------------------------------------------------
4,100 (a) Kent Electronics Corp. 102,500
----------------------------------------------------------------
1,400 (a) Kronos, Inc. 30,100
----------------------------------------------------------------
3,200 (a) Kulicke & Soffa Industries 89,400
----------------------------------------------------------------
5,900 (a) LTX Corp. 29,131
----------------------------------------------------------------
3,650 (a) Lattice Semiconductor Corp. 203,944
----------------------------------------------------------------
3,100 (a) Legato Systems, Inc. 41,269
----------------------------------------------------------------
2,300 (a) Level One Communications, Inc. 73,600
----------------------------------------------------------------
1,100 (a) Logic Works, Inc. 5,775
----------------------------------------------------------------
2,100 Logicon, Inc. 83,475
----------------------------------------------------------------
2,100 (a) MRV Communications, Inc. 43,313
----------------------------------------------------------------
1,500 MTS Systems Corp. 32,813
----------------------------------------------------------------
800 (a) Mafco Consolidated Group, Inc. 26,200
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
TECHNOLOGY--CONTINUED
----------------------------------------------------------------
1,300 (a) Manugistics Group, Inc. $ 69,875
----------------------------------------------------------------
2,800 (a) Marshall Industries 91,350
----------------------------------------------------------------
1,700 (a) Mattson Technology, Inc. 13,175
----------------------------------------------------------------
1,000 (a) Maxis, Inc. 6,875
----------------------------------------------------------------
1,100 (a) Media 100, Inc. 5,775
----------------------------------------------------------------
2,700 (a) Mercury Interactive Corp. 33,075
----------------------------------------------------------------
600 (a) Merix Corp. 9,150
----------------------------------------------------------------
1,500 (a) MetaTools, Inc. 13,688
----------------------------------------------------------------
5,100 Methode Electronics, Inc., Class A 72,038
----------------------------------------------------------------
1,900 (a) Metricom, Inc. 12,113
----------------------------------------------------------------
1,300 (a) MicroTouch Systems, Inc. 27,788
----------------------------------------------------------------
8,450 (a) Microchip Technology, Inc. 264,063
----------------------------------------------------------------
2,700 (a) Microcom, Inc. 43,369
----------------------------------------------------------------
900 (a) Microware Systems Corp. 6,300
----------------------------------------------------------------
900 (a) Mosaix, Inc. 11,250
----------------------------------------------------------------
3,400 Mylex Corp. 31,663
----------------------------------------------------------------
2,200 National Computer Systems, Inc. 55,275
----------------------------------------------------------------
4,300 National Data Corp. 161,250
----------------------------------------------------------------
1,400 (a) National Instruments Corp. 42,350
----------------------------------------------------------------
1,300 (a) Neose Technologies, Inc. 15,763
----------------------------------------------------------------
5,100 (a) Netmanage, Inc. 13,706
----------------------------------------------------------------
2,800 (a) Network Appliance, Inc. 81,550
----------------------------------------------------------------
3,500 (a) Network Equipment Technologies, Inc. 49,875
----------------------------------------------------------------
1,700 (a) Network Peripherals, Inc. 16,150
----------------------------------------------------------------
1,600 (a) Nichols Research Corp. 28,400
----------------------------------------------------------------
2,400 (a) Nimbus CD International, Inc. 21,300
----------------------------------------------------------------
1,800 Novadigm, Inc. 7,425
----------------------------------------------------------------
2,600 (a) Novellus Systems, Inc. 150,150
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
TECHNOLOGY--CONTINUED
----------------------------------------------------------------
2,700 OEA, Inc. $ 96,863
----------------------------------------------------------------
3,000 (a) OIS Optical Imaging Systems, Inc. 6,938
----------------------------------------------------------------
5,900 (a) Oak Technology, Inc. 47,569
----------------------------------------------------------------
700 (a) OnTrak Systems, Inc. 16,275
----------------------------------------------------------------
1,500 Optical Data Systems, Inc. 18,188
----------------------------------------------------------------
4,400 (a) Orbital Sciences Corp. 64,900
----------------------------------------------------------------
1,200 (a) Ortel Corp. 15,600
----------------------------------------------------------------
2,800 (a) P-COM, Inc. 80,150
----------------------------------------------------------------
1,000 (a) PRI Automation, Inc. 51,250
----------------------------------------------------------------
1,600 Park Electrochemical Corp. 35,200
----------------------------------------------------------------
1,500 (a) Peak Technologies Group, Inc. 26,438
----------------------------------------------------------------
1,300 (a) Perceptron, Inc. 36,725
----------------------------------------------------------------
1,600 (a) Periphonics Corp. 22,000
----------------------------------------------------------------
3,000 (a) Phoenix Technology, Ltd. 34,125
----------------------------------------------------------------
1,500 (a) Photronic Labs, Inc. 51,938
----------------------------------------------------------------
1,100 (a) Pinnacle Systems, Inc. 16,775
----------------------------------------------------------------
3,725 Pioneer Standard Electronics, Inc. 45,631
----------------------------------------------------------------
1,400 (a) Pixar, Inc. 21,350
----------------------------------------------------------------
1,300 (a) Planar Systems, Inc. 13,163
----------------------------------------------------------------
1,400 (a) Plantronics, Inc. 58,800
----------------------------------------------------------------
8,098 (a) Platinum Technology, Inc. 97,176
----------------------------------------------------------------
3,400 (a) Power Control Technologies, Inc. 25,075
----------------------------------------------------------------
2,800 (a) Precision Systems, Inc. 10,675
----------------------------------------------------------------
1,000 (a) Premenos Technology Corp. 6,500
----------------------------------------------------------------
700 (a) Prism Solutions, Inc. 3,238
----------------------------------------------------------------
1,800 (a) Progress Software Corp. 29,700
----------------------------------------------------------------
1,000 (a) Project Software & Development, Inc. 13,375
----------------------------------------------------------------
1,600 (a) Proxim, Inc. 32,200
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
TECHNOLOGY--CONTINUED
----------------------------------------------------------------
4,325 (a) Pure Atria Corp. $ 42,169
----------------------------------------------------------------
5,500 (a) Quarterdeck Office Systems 13,406
----------------------------------------------------------------
1,100 (a) Quickresponse Services, Inc. 29,700
----------------------------------------------------------------
2,300 (a) Quickturn Design Systems, Inc. 15,669
----------------------------------------------------------------
2,000 (a) RMI Titanium Co. 42,750
----------------------------------------------------------------
3,600 (a) ROSS Technology, Inc. 6,750
----------------------------------------------------------------
900 (a) RadiSys Corp. 26,438
----------------------------------------------------------------
1,000 (a) Rainbow Technologies, Inc. 14,625
----------------------------------------------------------------
4,400 (a) Ramtron International Corp. 25,850
----------------------------------------------------------------
2,100 (a) Red Brick Systems, Inc. 16,275
----------------------------------------------------------------
1,800 (a) Remedy Corp. 58,275
----------------------------------------------------------------
6,100 (a) Riscorp, Inc., Class A 16,775
----------------------------------------------------------------
3,000 (a) Robotic Vision Systems, Inc. 26,063
----------------------------------------------------------------
4,300 (a) Rohr, Inc. 67,188
----------------------------------------------------------------
8,400 (a) S3, Inc. 80,325
----------------------------------------------------------------
1,400 (a) SDL, Inc. 18,200
----------------------------------------------------------------
1,000 (a) SPSS, Inc. 26,500
----------------------------------------------------------------
2,900 (a) Sandisk Corp. 36,975
----------------------------------------------------------------
2,900 (a) Sanmina Corp. 145,000
----------------------------------------------------------------
3,200 (a) Santa Cruz Operation, Inc. 14,800
----------------------------------------------------------------
300 (a) Sapient Corp. 10,763
----------------------------------------------------------------
2,100 (a) Scopus Technology, Inc. 56,175
----------------------------------------------------------------
2,400 (a) Secure Computing Corp. 17,400
----------------------------------------------------------------
500 (a) Segue Software, Inc. 4,750
----------------------------------------------------------------
1,150 (a) Semitool, Inc. 11,213
----------------------------------------------------------------
1,300 (a) Sequa Corp., Class A 61,750
----------------------------------------------------------------
4,900 (a) Sequent Computer System, Inc. 77,788
----------------------------------------------------------------
1,500 (a) Sheldahl, Inc. 34,875
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
TECHNOLOGY--CONTINUED
----------------------------------------------------------------
4,900 (a) Sierra Semiconductor Corp. $ 82,688
----------------------------------------------------------------
3,400 (a) Silicon Storage Technology 11,263
----------------------------------------------------------------
5,000 (a) Silicon Valley Group, Inc. 102,813
----------------------------------------------------------------
1,600 (a) Siliconix, Inc. 40,000
----------------------------------------------------------------
800 (a) Simula, Inc. 11,500
----------------------------------------------------------------
2,400 (a) Smart Modular Technologies, Inc. 80,400
----------------------------------------------------------------
600 (a) Smith Micro Software, Inc. 2,400
----------------------------------------------------------------
800 (a) Speedfam International, Inc. 19,400
----------------------------------------------------------------
2,100 (a) Spyglass, Inc. 14,700
----------------------------------------------------------------
3,400 (a) Stac Electronics 13,600
----------------------------------------------------------------
2,300 (a) Standard Microsystems Corp. 19,694
----------------------------------------------------------------
1,600 (a) Stanford Telcommunications, Inc. 23,600
----------------------------------------------------------------
1,700 (a) State of the Art, Inc. 15,725
----------------------------------------------------------------
3,000 (a) StorMedia, Inc. 37,875
----------------------------------------------------------------
600 (a) Storage Computer Corp. 7,200
----------------------------------------------------------------
3,900 (a) Stratus Computer, Inc. 151,613
----------------------------------------------------------------
5,700 (a) Structural Dynamics Research Corp. 121,125
----------------------------------------------------------------
1,900 (a) SubMicron Systems, Inc. 5,938
----------------------------------------------------------------
1,200 (a) Supertex, Inc. 12,750
----------------------------------------------------------------
9,000 (a) Symantec Corp. 129,375
----------------------------------------------------------------
2,700 (a) Symmetricom, Inc. 36,450
----------------------------------------------------------------
2,600 (a) Sync Research, Inc. 7,556
----------------------------------------------------------------
4,750 System Software Association 25,531
----------------------------------------------------------------
2,300 (a) Systems & Computer Technology Corp. 45,425
----------------------------------------------------------------
2,800 (a) Systemsoft Corp. 21,350
----------------------------------------------------------------
1,900 (a) TCSI Corp. 9,144
----------------------------------------------------------------
6,300 (a) Tech Data Corp. 154,350
----------------------------------------------------------------
1,000 (a) Tech-Sym Corp. 28,375
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
TECHNOLOGY--CONTINUED
----------------------------------------------------------------
2,200 Technitrol, Inc. $ 44,275
----------------------------------------------------------------
2,800 (a) Technology Solutions Corp. 73,850
----------------------------------------------------------------
1,200 (a) Tekelec, Inc. 27,600
----------------------------------------------------------------
1,800 (a) Telco System, Inc. 23,400
----------------------------------------------------------------
1,100 (a) Teltrend, Inc. 20,350
----------------------------------------------------------------
2,600 Telxon Corp. 41,275
----------------------------------------------------------------
5,200 Tencor Instruments 230,750
----------------------------------------------------------------
500 (a) ThermoSpectra Corp. 6,000
----------------------------------------------------------------
1,550 (a) Thermotrex Corp. 28,869
----------------------------------------------------------------
3,100 Thiokol Corp. 202,275
----------------------------------------------------------------
3,500 (a) Tracor, Inc. 76,125
----------------------------------------------------------------
1,900 (a) TranSwitch Corp. 8,313
----------------------------------------------------------------
4,400 (a) Transaction Systems Architects, Inc., Class A 132,000
----------------------------------------------------------------
1,800 (a) Trident Microsystems, Inc. 24,300
----------------------------------------------------------------
3,200 (a) Trimble Navigation Ltd. 37,200
----------------------------------------------------------------
1,300 (a) Triquint Semiconductor, Inc. 38,675
----------------------------------------------------------------
2,200 (a) Tseng Laboratories, Inc. 6,463
----------------------------------------------------------------
1,000 (a) USDATA Corp., Inc. 3,750
----------------------------------------------------------------
2,900 (a) Ultratech Stepper, Inc. 52,019
----------------------------------------------------------------
850 (a) Unison Software, Inc. 5,419
----------------------------------------------------------------
1,700 (a) Unitrode Corp. 67,150
----------------------------------------------------------------
7,500 (a) VLSI Technology, Inc. 149,063
----------------------------------------------------------------
1,500 (a) Vantive Corp. 29,813
----------------------------------------------------------------
1,600 (a) Veritas Software Corp. 53,800
----------------------------------------------------------------
1,500 (a) Verity, Inc. 8,344
----------------------------------------------------------------
2,900 (a) Viasoft, Inc. 123,250
----------------------------------------------------------------
5,200 (a) Vicor Corp. 82,550
----------------------------------------------------------------
2,000 (a) VideoLan Technologies, Inc. 1,250
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
TECHNOLOGY--CONTINUED
----------------------------------------------------------------
2,000 (a) VideoServer, Inc. $ 33,750
----------------------------------------------------------------
2,700 (a) Viewlogic Systems, Inc. 37,800
----------------------------------------------------------------
1,300 (a) Visio Corp. 65,975
----------------------------------------------------------------
700 (a) Visioneer, Inc. 2,450
----------------------------------------------------------------
4,500 (a) Vitesse Semiconductor Corp. 141,750
----------------------------------------------------------------
1,300 (a) Wall Data, Inc. 27,219
----------------------------------------------------------------
5,900 (a) Wang Laboratories, Inc. 102,513
----------------------------------------------------------------
4,200 (a) Waters Corp. 124,425
----------------------------------------------------------------
1,400 Watkins Johnson Co. 38,500
----------------------------------------------------------------
1,800 (a) Whittaker Corp. 17,775
----------------------------------------------------------------
2,450 (a) Wind River Systems, Inc. 56,350
----------------------------------------------------------------
2,300 Wireless Telecom Group, Inc. 22,138
----------------------------------------------------------------
2,300 (a) Wonderware Corp. 20,988
----------------------------------------------------------------
600 (a) Workgroup Technology Corp. 2,663
----------------------------------------------------------------
2,100 Wyle Labs 71,138
----------------------------------------------------------------
3,300 (a) Wyman Gordon Co. 69,300
----------------------------------------------------------------
3,000 (a) Xicor, Inc. 16,125
----------------------------------------------------------------
2,700 Xircom, Inc. 24,975
----------------------------------------------------------------
400 (a) Yahoo, Inc. 13,650
----------------------------------------------------------------
3,400 Zilog, Inc. 62,900
----------------------------------------------------------------
800 (a) Zoran Corp. 10,400
----------------------------------------------------------------
1,300 (a) Zygo Corp. 28,925
----------------------------------------------------------------
1,100 (a) Zytec Corp. 14,300
---------------------------------------------------------------- ------------
Total 15,028,342
---------------------------------------------------------------- ------------
TRANSPORTATION--1.6%
----------------------------------------------------------------
3,600 APL, Ltd. 105,750
----------------------------------------------------------------
3,700 ASA Holdings Ltd. 78,625
----------------------------------------------------------------
3,300 Airborne Freight Corp. 115,913
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
TRANSPORTATION--CONTINUED
----------------------------------------------------------------
3,100 Airlines Express International Corp. $ 106,175
----------------------------------------------------------------
2,400 (a) Alaska Air Group, Inc. 59,700
----------------------------------------------------------------
7,702 (a) America West Holdings Corp., Class B 118,418
----------------------------------------------------------------
3,400 (a) American Freightways Corp. 48,025
----------------------------------------------------------------
3,700 Arnold Industries, Inc. 54,575
----------------------------------------------------------------
1,700 (a) Covenant Transport, Inc. , Class A 23,375
----------------------------------------------------------------
800 Eagle USA Airfreight, Inc. 16,000
----------------------------------------------------------------
4,000 Expeditors International Washington, Inc. 100,000
----------------------------------------------------------------
600 Florida East Coast, Inc. 52,200
----------------------------------------------------------------
1,482 Frozen Food Express Industries, Inc. 13,153
----------------------------------------------------------------
1,800 Harper Group 42,300
----------------------------------------------------------------
2,545 (a) Heartland Express, Inc. 55,036
----------------------------------------------------------------
3,700 Hunt (J.B.) Transportation Services, Inc. 51,338
----------------------------------------------------------------
4,100 (a) Kirby Corp. 74,825
----------------------------------------------------------------
300 (a) Knight Transportation, Inc. 6,525
----------------------------------------------------------------
2,100 (a) Landstar System, Inc. 53,813
----------------------------------------------------------------
1,400 (a) M.S. Carriers, Inc. 27,650
----------------------------------------------------------------
4,200 (a) Mesa Air Group, Inc. 22,313
----------------------------------------------------------------
800 (a) Midwest Express Holdings, Inc. 33,000
----------------------------------------------------------------
5,200 (a) OMI Corp. 52,000
----------------------------------------------------------------
4,600 Overseas Shipholding Group, Inc. 81,650
----------------------------------------------------------------
1,500 (a) Railtex, Inc. 24,375
----------------------------------------------------------------
2,200 Roadway Express, Inc. 38,500
----------------------------------------------------------------
1,200 SkyWest, Inc. 15,300
----------------------------------------------------------------
1,900 (a) Swift Transportation Co. 54,150
----------------------------------------------------------------
2,700 (a) Trans World Airlines, Inc. 19,575
----------------------------------------------------------------
3,650 USFreightways Corp. 98,550
----------------------------------------------------------------
5,900 (a) ValuJet, Inc. 37,613
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
TRANSPORTATION--CONTINUED
----------------------------------------------------------------
3,500 Werner Enterprises, Inc. $ 66,938
----------------------------------------------------------------
1,200 (a) Western Pacific Airlines, Inc. 7,650
----------------------------------------------------------------
3,600 (a) Yellow Corp. 69,300
---------------------------------------------------------------- ------------
Total 1,824,310
---------------------------------------------------------------- ------------
UTILITIES--5.9%
----------------------------------------------------------------
2,400 ACC Corp. 38,100
----------------------------------------------------------------
9,100 AGL Resources, Inc. 175,175
----------------------------------------------------------------
2,600 (a) Adelphia Communications Corp., Class A 14,625
----------------------------------------------------------------
6,000 Aliant Communications, Inc. 93,750
----------------------------------------------------------------
2,500 (a) American Mobile Satellite Corp. 24,375
----------------------------------------------------------------
600 (a) American Paging, Inc. 2,175
----------------------------------------------------------------
1,600 (a) American Telecasting, Inc. 2,100
----------------------------------------------------------------
1,100 Aquarion Co. 27,363
----------------------------------------------------------------
900 Aquila Gas Pipeline Co. 12,713
----------------------------------------------------------------
3,346 (a) Arch Communications Group, Inc. 19,449
----------------------------------------------------------------
1,000 (a) Associated Group, Inc., Class A 37,000
----------------------------------------------------------------
8,600 Atlantic Energy, Inc. NJ 138,675
----------------------------------------------------------------
800 (a) Atlantic Telephone Network, Inc. 8,400
----------------------------------------------------------------
2,650 Atmos Energy Corp. 59,956
----------------------------------------------------------------
2,200 Bay State Gas Co. 56,100
----------------------------------------------------------------
2,400 Black Hills Corp. 67,500
----------------------------------------------------------------
2,000 (a) C-Tec Corp. 54,563
----------------------------------------------------------------
4,465 (a) CAI Wireless Systems, Inc. 7,814
----------------------------------------------------------------
2,100 CFW Communications Co. 38,325
----------------------------------------------------------------
1,700 CTG Resources, Inc. 36,338
----------------------------------------------------------------
1,000 California Water Service Corp. 43,250
----------------------------------------------------------------
1,700 (a) Cellular Communications International, Inc. 42,500
----------------------------------------------------------------
800 Cellularvision USA, Inc. 5,700
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
UTILITIES--CONTINUED
----------------------------------------------------------------
2,705 (a) Centennial Cellular Corp., Class A $ 25,359
----------------------------------------------------------------
2,900 Central Hudson Gas & Electric Service 89,175
----------------------------------------------------------------
3,700 Central LA Electric Co. 94,813
----------------------------------------------------------------
5,300 Central Maine Power Co. 58,963
----------------------------------------------------------------
5,200 (a) Century Communications, Corp., Class A 21,125
----------------------------------------------------------------
2,200 Cilcorp, Inc. 84,975
----------------------------------------------------------------
12,870 (a) Citizens Utilities Co., Class B 151,228
----------------------------------------------------------------
1,400 Colonial Gas Co. 28,000
----------------------------------------------------------------
3,000 Commonwealth Energy System 65,625
----------------------------------------------------------------
2,300 (a) Comnet Cellular, Inc. 59,225
----------------------------------------------------------------
1,500 Connecticut Energy Corp. 32,625
----------------------------------------------------------------
2,000 (a) Corecomm, Inc. 29,250
----------------------------------------------------------------
1,300 E Town 38,675
----------------------------------------------------------------
3,400 Eastern Enterprises 115,175
----------------------------------------------------------------
3,300 Eastern Utilities Association 56,513
----------------------------------------------------------------
9,800 El Paso Electric Co. 61,863
----------------------------------------------------------------
2,700 Empire Distribution Electric Co. 47,588
----------------------------------------------------------------
1,600 Energen Corp. 50,600
----------------------------------------------------------------
2,600 Executive Telecard Ltd. 17,388
----------------------------------------------------------------
3,900 (a) General Communications, Inc., Class A 26,325
----------------------------------------------------------------
2,200 (a) Heartland Wireless Communications, Inc. 4,950
----------------------------------------------------------------
3,600 HighwayMaster Communications, Inc. 39,600
----------------------------------------------------------------
4,900 IES Industries, Inc. 142,100
----------------------------------------------------------------
3,250 Indiana Energy, Inc. 78,813
----------------------------------------------------------------
1,600 (a) Intercel, Inc. 15,600
----------------------------------------------------------------
2,600 (a) Intermedia Communications of Florida, Inc. 51,350
----------------------------------------------------------------
4,700 (a) International Family Entertainment, Inc., Class B 95,175
----------------------------------------------------------------
1,600 Interstate Power Co. 45,800
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
UTILITIES--CONTINUED
----------------------------------------------------------------
3,482 Jones Intercable, Inc. $ 33,950
----------------------------------------------------------------
3,401 K N Energy, Inc. 126,687
----------------------------------------------------------------
3,600 (a) Kelley Oil & Gas Corp. 7,200
----------------------------------------------------------------
2,900 Laclede Gas Co. 64,525
----------------------------------------------------------------
4,650 MDU Resources Group, Inc. 108,113
----------------------------------------------------------------
2,600 (a) MIDCOM Communications, Inc. 18,850
----------------------------------------------------------------
2,600 Madison Gas & Electric Co. 52,000
----------------------------------------------------------------
2,521 (a) MetroCall, Inc. 10,084
----------------------------------------------------------------
2,122 MetroCall, Inc., Rights 0
----------------------------------------------------------------
4,900 Minnesota Power And Light Co. 136,588
----------------------------------------------------------------
8,900 (a) Mobile Telecommunication Technologies Corp. 86,775
----------------------------------------------------------------
7,300 MobileMedia Communications, Inc. 3,878
----------------------------------------------------------------
1,900 (a) NETCOM On-line Communication Services, Inc. 19,713
----------------------------------------------------------------
4,933 (a) NTL, Inc. 96,194
----------------------------------------------------------------
1,600 NUI Corp. 31,400
----------------------------------------------------------------
8,000 Nevada Power Co. 160,000
----------------------------------------------------------------
3,000 New Jersey Resources Corp. 86,625
----------------------------------------------------------------
1,100 North Carolina Natural Gas 32,588
----------------------------------------------------------------
3,700 Northwest Natural Gas Co. 89,725
----------------------------------------------------------------
1,500 Northwestern Public Service Co. 55,313
----------------------------------------------------------------
3,800 Oneok, Inc. 113,050
----------------------------------------------------------------
2,200 Orange & Rockland Utilities, Inc. 68,750
----------------------------------------------------------------
1,800 Otter Tail Power Co. 57,150
----------------------------------------------------------------
1,200 (a) Palmer Wireless, Inc. 14,100
----------------------------------------------------------------
1,600 Pennsylvania Enterprises 35,400
----------------------------------------------------------------
1,800 (a) Peoples Choice TV Corp. 2,700
----------------------------------------------------------------
2,750 Philadelphia Suburban Corp. 55,000
----------------------------------------------------------------
4,800 Piedmont Natural Gas, Inc. 112,800
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
UTILITIES--CONTINUED
----------------------------------------------------------------
1,100 (a) Premiere Technologies, Inc. $ 26,263
----------------------------------------------------------------
3,588 (a) PriceCellular Corp., Class A 26,686
----------------------------------------------------------------
1,800 (a) ProNet, Inc. 5,513
----------------------------------------------------------------
6,100 Public Service Co. New Mexico 101,413
----------------------------------------------------------------
3,100 Public Service Co. North Carolina, Inc. 53,863
----------------------------------------------------------------
6,400 Rochester Gas & Electric Corp 119,200
----------------------------------------------------------------
3,900 SIG Corp., Inc. 94,088
----------------------------------------------------------------
10,032 (a) Seagull Energy Corp. 171,798
----------------------------------------------------------------
5,000 Sierra Pacific Resources 141,875
----------------------------------------------------------------
1,324 South Jersey Industries, Inc. 28,135
----------------------------------------------------------------
2,035 Southeastern Michigan Gas Energy 39,683
----------------------------------------------------------------
1,300 Southern CA Water Co. 28,113
----------------------------------------------------------------
1,420 (a) Southern Union Co. 33,903
----------------------------------------------------------------
4,400 Southwest Gas Corp. 73,150
----------------------------------------------------------------
4,000 Southwestern Energy Co. 50,500
----------------------------------------------------------------
4,100 (a) Starsight Telecast, Inc. 30,750
----------------------------------------------------------------
2,700 TCA Cable TV, Inc. 86,400
----------------------------------------------------------------
2,000 TNP Enterprises, Inc. 42,000
----------------------------------------------------------------
2,440 (a) Tejas Gas Corp. 101,260
----------------------------------------------------------------
2,800 (a) Tel-Save Holdings, Inc. 39,200
----------------------------------------------------------------
1,150 (a) Transaction Network Services, Inc. 12,938
----------------------------------------------------------------
2,000 Trescomm International, Inc. 10,750
----------------------------------------------------------------
5,260 (a) Tucson Electric Power Co. 74,955
----------------------------------------------------------------
2,600 (a) U.S. Long Distance Corp. 31,525
----------------------------------------------------------------
5,400 UGI Corp. 122,850
----------------------------------------------------------------
2,200 United Cities Gas Co. 47,300
----------------------------------------------------------------
2,300 United Illuminating Co. 56,925
----------------------------------------------------------------
6,400 (a) United International Holdings, Inc., Class A 61,600
----------------------------------------------------------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
*COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
UTILITIES--CONTINUED
----------------------------------------------------------------
1,700 (a) United Video Satellite Group, Inc., Class A $ 26,350
----------------------------------------------------------------
4,136 United Water Resources, Inc. 67,727
----------------------------------------------------------------
4,800 (a) Vanguard Cellular Systems, Inc., Class A 47,400
----------------------------------------------------------------
3,000 WICOR, Inc. 105,375
----------------------------------------------------------------
5,000 WPL Holdings, Inc. 135,625
----------------------------------------------------------------
3,900 WPS Resources Corp. 96,038
----------------------------------------------------------------
7,200 Washington Gas Light Co. 165,600
----------------------------------------------------------------
2,600 Western Gas Resources, Inc. 39,975
----------------------------------------------------------------
4,600 (a) WinStar Communications, Inc. 47,725
----------------------------------------------------------------
2,600 (a) Wireless One, Inc. 9,100
----------------------------------------------------------------
600 (a) Xpedite Systems, Inc. 12,075
----------------------------------------------------------------
1,700 Yankee Energy Systems, Inc. 36,125
---------------------------------------------------------------- ------------
Total 6,814,733
---------------------------------------------------------------- ------------
TOTAL COMMON STOCKS (IDENTIFIED COST $92,795,786) 106,269,304
---------------------------------------------------------------- ------------
</TABLE>
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
(B) U.S. TREASURY--0.4%
- -----------------------------------------------------------------------------------
$ 500,000 United States Treasury Bill, 9/11/1997 (IDENTIFIED COST
$490,339) $ 490,445
---------------------------------------------------------------- ------------
(C) REPURCHASE AGREEMENT--7.6%
- -----------------------------------------------------------------------------------
8,770,000 BT Securities Corporation, 5.43%, dated 4/30/1997, due 5/1/1997
(AT AMORTIZED COST) 8,770,000
---------------------------------------------------------------- ------------
TOTAL INVESTMENTS (IDENTIFIED COST $102,056,125)(D) $115,529,749
---------------------------------------------------------------- ------------
</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 $9,139,850 at April 30, 1997, which
represents 7.9% of net assets. Taking into consideration these open futures
contracts, the Fund's effective total exposure to stocks is 99.8%.
(a) Non-income producing security.
(b) Represents a security held as collateral which is used to ensure the Fund is
able to satisfy the obligations of its outstanding long futures contracts.
(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 $102,073,265.
The net unrealized appreciation of investments on a federal tax basis
amounts to $13,456,484 which is comprised of $25,702,100 appreciation and
$12,245,616 depreciation at April 30, 1997.
Note: The categories of investments are shown as a percentage of net assets
($115,614,426) at April 30, 1997.
The following acronyms are used throughout this portfolio:
REIT -- Real Estate Investment Trust
(See Notes which are an integral part of the Financial Statements)
FEDERATED MINI-CAP FUND
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- -------------------------------------------------------------------------------
Total investments in securities, at value (identified cost
$102,056,125, and tax cost $102,073,265) $ 115,529,749
- -------------------------------------------------------------------------------
Income receivable 83,913
- -------------------------------------------------------------------------------
Receivable for investments sold 100,753
- -------------------------------------------------------------------------------
Receivable for shares sold 168,146
- -------------------------------------------------------------------------------
Receivable for daily variation margin 17,225
- -------------------------------------------------------------------------------
Deferred expenses 1,938
- ------------------------------------------------------------------------------- -------------
Total assets 115,901,724
- -------------------------------------------------------------------------------
LIABILITIES:
- -------------------------------------------------------------------------------
Payable for investments purchased $44,347
- ---------------------------------------------------------------------
Payable to Bank 169,522
- ---------------------------------------------------------------------
Payable for taxes withheld 160
- ---------------------------------------------------------------------
Accrued expenses 73,269
- --------------------------------------------------------------------- -------
Total liabilities 287,298
- ------------------------------------------------------------------------------- -------------
NET ASSETS for 8,730,945 shares outstanding $ 115,614,426
- ------------------------------------------------------------------------------- -------------
NET ASSETS CONSIST OF:
- -------------------------------------------------------------------------------
Paid-in capital $ 99,912,057
- -------------------------------------------------------------------------------
Net unrealized appreciation on investments and futures contracts 13,197,304
- -------------------------------------------------------------------------------
Accumulated net realized gain on investments and
futures contracts 2,406,221
- -------------------------------------------------------------------------------
Undistributed net investment income 98,844
- ------------------------------------------------------------------------------- -------------
Total Net Assets $ 115,614,426
- ------------------------------------------------------------------------------- -------------
NET ASSET VALUE, Offering Price and Redemption Proceeds Per Share:
$115,614,426 / 8,730,945 shares outstanding $13.24
- ------------------------------------------------------------------------------- -------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FEDERATED MINI-CAP FUND
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME:
- -------------------------------------------------------------------------------------
Dividends $ 981,612
- -------------------------------------------------------------------------------------
Interest 252,488
- ------------------------------------------------------------------------------------- -----------
Total income 1,234,100
- -------------------------------------------------------------------------------------
EXPENSES--
- -------------------------------------------------------------------------------------
Management fee $356,814
- -------------------------------------------------------------------------
Custodian fees 37,533
- -------------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 32,080
- -------------------------------------------------------------------------
Directors'/Trustees' fees 1,991
- -------------------------------------------------------------------------
Auditing fees 7,059
- -------------------------------------------------------------------------
Legal fees 1,991
- -------------------------------------------------------------------------
Portfolio accounting fees 28,405
- -------------------------------------------------------------------------
Shareholder services fee 178,407
- -------------------------------------------------------------------------
Share registration costs 12,360
- -------------------------------------------------------------------------
Printing and postage 20,910
- -------------------------------------------------------------------------
Insurance premiums 2,353
- -------------------------------------------------------------------------
Taxes 3,258
- -------------------------------------------------------------------------
Miscellaneous 7,944
- ------------------------------------------------------------------------- --------
Total expenses 691,105
- -------------------------------------------------------------------------
Waivers--
- -------------------------------------------------------------------------
Waiver of shareholder service fee (149,862)
- ------------------------------------------------------------------------- --------
Net expenses 541,243
- ------------------------------------------------------------------------------------- -----------
Net investment income 692,857
- ------------------------------------------------------------------------------------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FUTURES CONTRACTS:
- -------------------------------------------------------------------------------------
Net realized gain on investments and futures contracts 3,070,023
- -------------------------------------------------------------------------------------
Net change in unrealized appreciation of investments and futures contracts (692,616)
- ------------------------------------------------------------------------------------- -----------
Net realized and unrealized gain on investments and futures contracts 2,377,407
- ------------------------------------------------------------------------------------- -----------
Change in net assets resulting from operations $ 3,070,264
- ------------------------------------------------------------------------------------- -----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FEDERATED MINI-CAP FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
(UNAUDITED) YEAR ENDED
APRIL 30, 1997 OCTOBER 31, 1996
---------------- -----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- -------------------------------------------------------------
OPERATIONS--
- -------------------------------------------------------------
Net investment income $ 692,857 $ 1,683,178
- -------------------------------------------------------------
Net realized gain (loss) on investments and futures contracts
($3,070,023 and $12,836,707 net gains respectively, as
computed for federal tax purposes) 3,070,023 11,326,674
- -------------------------------------------------------------
Net change in unrealized appreciation (depreciation) (692,616) 5,852,231
- ------------------------------------------------------------- -------------- --------------
Change in net assets resulting from operations 3,070,264 18,862,083
- ------------------------------------------------------------- -------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS--
- -------------------------------------------------------------
Distributions from net investment income (710,930) (1,673,293)
- -------------------------------------------------------------
Distributions from net realized gains on investments and
futures contracts (12,838,180) (7,105,514)
- ------------------------------------------------------------- -------------- --------------
Change in net assets resulting from distributions to
shareholders (13,549,110) (8,778,807)
- ------------------------------------------------------------- -------------- --------------
SHARE TRANSACTIONS--
- -------------------------------------------------------------
Proceeds from sale of shares 83,853,826 151,332,868
- -------------------------------------------------------------
Net asset value of shares issued to shareholders in payment
of
distributions declared 6,121,488 3,949,341
- -------------------------------------------------------------
Cost of shares redeemed (108,572,142) (153,074,545)
- ------------------------------------------------------------- -------------- --------------
Change in net assets resulting from share transactions (18,596,828) 2,207,664
- ------------------------------------------------------------- -------------- --------------
Change in net assets (29,075,674) 12,290,940
- -------------------------------------------------------------
NET ASSETS:
- -------------------------------------------------------------
Beginning of period 144,690,100 132,399,160
- ------------------------------------------------------------- -------------- --------------
End of period (including undistributed net investment income
of
$98,844 and $116,917, respectively) $115,614,426 $ 144,690,100
- ------------------------------------------------------------- -------------- --------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FEDERATED MINI-CAP FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(UNAUDITED) YEAR ENDED OCTOBER 31,
APRIL 30, ------------------------------------------------
1997 1996 1995 1994 1993 1992(A)
-------------- ------ ------ ------ ------ -------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $14.39 $13.33 $11.65 $12.66 $10.39 $10.00
- -----------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- -----------------------------------------
Net investment income 0.07 0.16 0.15 0.11 0.17 0.02
- -----------------------------------------
Net realized and unrealized gain (loss)
on investments and futures contracts 0.08 1.78 1.74 (0.23) 2.27 0.38
- ----------------------------------------- ---------- ------ ------ ------ ------ -------
Total from investment operations 0.15 1.94 1.89 (0.12) 2.44 0.40
- ----------------------------------------- ---------- ------ ------ ------ ------ -------
LESS DISTRIBUTIONS
- -----------------------------------------
Distributions from net investment
income (0.07) (0.16) (0.14) (0.11) (0.17) (0.01)
- -----------------------------------------
Distributions from net realized gain on
investments and futures contracts (1.23) (0.72) (0.07) (0.78) -- --
- ----------------------------------------- ---------- ------ ------ ------ ------ -------
Total distributions (1.30) (0.88) (0.21) (0.89) (0.17) (0.01)
- ----------------------------------------- ---------- ------ ------ ------ ------ -------
NET ASSET VALUE, END OF PERIOD $13.24 $14.39 $13.33 $11.65 $12.66 $10.39
- ----------------------------------------- ---------- ------ ------ ------ ------ -------
TOTAL RETURN (B) 0.83% 15.09% 16.44% (0.91)% 23.73% 4.00%
- -----------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -----------------------------------------
Expenses 0.76%* 0.74% 0.75% 0.73% 0.37% 0.00% *
- -----------------------------------------
Net investment income 0.97%* 1.14% 1.23% 0.98% 1.48% 2.04% *
- -----------------------------------------
Expense waiver/reimbursement (c) 0.21%* 0.23% 0.05% 0.11% 0.86% 0.87% *
- -----------------------------------------
SUPPLEMENTAL DATA
- -----------------------------------------
Net assets, end of period (000 omitted) $115,614 $144,690 $132,399 $98,441 $76,139 $7,751
- -----------------------------------------
Average commission rate paid (d) $0.0482 $0.0277 -- -- -- --
- -----------------------------------------
Portfolio turnover 6% 42% 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.
(d) Represents total commissions paid on portfolio securities divided by total
portfolio shares purchased or sold on which commissions were charged.
(See Notes which are an integral part of the Financial Statements)
FEDERATED MINI-CAP FUND
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1997 (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
investment objective of the Fund is to provide investment results that
correspond to the aggregate price and dividend performance of the approximately
2,000 publicly traded common stocks that are ranked in terms of capitalization
below the top 1,000 stocks that comprise the large and mid-range capitalization
sector of the United States equity market.
(2) SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
INVESTMENT VALUATIONS--Listed equity securities are valued at the last sale
price reported on a national securities exchange. Short-term securities are
valued at the prices provided by an independent pricing service. However,
short-term securities with remaining maturities of sixty days or less at
the time of purchase may be valued at amortized cost, which approximates
fair market value.
REPURCHASE AGREEMENTS--It is the policy of the Fund to require the
custodian bank to take possession, to have legally segregated in the
Federal Reserve Book Entry System, or to have segregated within the
custodian bank's vault, all securities held as collateral under repurchase
agreement transactions. Additionally, procedures have been established by
the Fund to monitor, on a daily basis, the market value of each repurchase
agreement's collateral to ensure that the value of collateral at least
equals the repurchase price to be paid under the repurchase agreement
transaction.
The Fund will only enter into repurchase agreements with banks and other
recognized financial institutions, such as broker/dealers, which are deemed
by the Fund's adviser to be creditworthy pursuant to the guidelines and/or
standards reviewed or established by the Board of Trustees (the
"Trustees"). Risks may arise from the potential inability of counterparties
to honor the terms of the repurchase agreement. Accordingly, the Fund could
receive less than the repurchase price on the sale of collateral
securities.
INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS--Interest income and expenses
are accrued daily. Bond premium and discount, if applicable, are amortized
as required by the Internal
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
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 over a period not to exceed 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, 1997, the Fund had realized losses on futures contracts of
$67,690.
Futures contracts have market risks, including the risk that the change in
the value of the contract may not correlate with changes in the value of
the underlying securities.
At April 30, 1997, the Fund had outstanding futures contracts as set forth
below:
<TABLE>
<CAPTION>
UNREALIZED
EXPIRATION CONTRACTS TO APPRECIATION
DATE DELIVER/RECEIVE POSITION (DEPRECIATION)
----------- --------------- --------- --------------
<C> <S> <C> <C>
53 Russell
June 1997 2000 Long ($ 276,320)
</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, 1997 OCTOBER 31, 1996
- ----------------------------------------------------- ---------------- ----------------
<S> <C> <C>
Shares sold 5,943,633 10,678,931
- -----------------------------------------------------
Shares issued to shareholders in payment of
distributions declared 451,152 295,486
- -----------------------------------------------------
Shares redeemed (7,717,620) (10,852,665)
- ----------------------------------------------------- ------------- --------------
Net change resulting from share transactions (1,322,835) 121,752
- ----------------------------------------------------- ------------- -------------
</TABLE>
(4) MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEE--Federated Management, the Fund's investment adviser (the
"Manager"), receives for its services an annual management fee equal to 0.50% of
the Fund's average daily net assets. 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.
Under the terms of a sub-advisory agreement between the Manager and the Trust
Division of ANB Investment Management & Trust Company, ANB Investment Management
& Trust Company receives an annual fee from the Manager equal to 0.065% of the
Fund's average daily net assets.
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--Federated Services
Company ("FServ"), through its subsidiary, Federated Shareholder Services
Company ("FSSC") serves as transfer and dividend disbursing agent for the Fund.
The fee paid to FSSC is based on the size, type, and number of accounts and
transactions made by shareholders.
PORTFOLIO ACCOUNTING FEES--FServ maintains the Trust's accounting records for
which it receives a fee. The fee is based on the level of the Trust's average
daily net assets for the period, plus out-of-pocket expenses.
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
FEDERATED MINI-CAP FUND
- --------------------------------------------------------------------------------
period following effective date. For the period ended April 30, 1997, 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, 1997, were as follows:
<TABLE>
<S> <C>
- -------------------------------------------------------------------------------
PURCHASES $ 7,611,167
- ------------------------------------------------------------------------------- -----------
SALES $41,558,924
- ------------------------------------------------------------------------------- -----------
</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
S. Elliott Cohan
Assistant Secretary
</TABLE>
Mutual funds are not bank deposits or obligations, are not guaranteed by any
bank, and are not insured or guaranteed by the U.S. government, the Federal
Deposit Insurance Corporation, the Federal Reserve Board, or any other
government agency. Investment in mutual funds involves risk, including possible
loss of principal.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by the fund's prospectus which contains facts concerning
its objective and policies, management fees, expenses and other information.
- -------------------------------------------------
FEDERATED
- -------------------------------------------------
MINI-CAP
- -------------------------------------------------
FUND
- -------------------------------------------------
SEMI-ANNUAL REPORT
TO SHAREHOLDERS
APRIL 30, 1997
[FEDERATED INVESTORS LOGO] ----------------
----------------
CUSIP 31420E304 ----------------
3052012 (6/97) ----------------
[RECYCLED LOGO]
FEDERATED INDEX TRUST
Federated Investors
Federated Investors Tower
Pittsburgh, Pennsylvania 15222-3779
(412) 288-1900
June 30, 1997
EDGAR Operations Branch
Securities and Exchange Commission
Division of Investment Management
450 Fifth Street, Northwest
Washington, DC 20549
RE: FEDERATED INDEX TRUST (the "Trust")
Federated Max-Cap Fund
Federated Mid-Cap Fund
Federated Mini-Cap Fund
1933 Act File No. 33-33852
1940 Act File No. 811-6061
The Semi-Annual Reports to Shareholders of Federated Max-Cap Fund,
Federated Mid-Cap Fund, and Federated Mini-Cap Fund, portfolios of the
above-referenced Trust, dated April 30, 1997, are hereby electronically
transmitted pursuant to Section 30(b)(2) of the Investment Company Act of 1940
and Rule 30b2-1 thereunder.
Very truly yours,
/s/ Mark R. Thompson
Mark R. Thompson
Compliance Analyst
Enclosures
