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 period from
November 1, 1997 through April 30, 1998. The report begins with an investment
review, followed by the fund's portfolio 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
18.44%** through dividend income of $0.12 per share, capital gains of $1.38 per
share, and a $1.44 increase in net asset value. On the last day of the reporting
period, the fund's total net assets stood at $92.6 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,
/s/ Glen R. Johnson
Glen R. Johnson
President
June 15, 1998
*Federated 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," "S&P," "S&P Mid-Cap 400 Index," and "Standard &
Poor's Mid-Cap 400 Index" are trademarks of Standard & Poor's ("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 S&P. Its only
relationship to the fund is the licensing of the use of the index. Actual
investments may not be made in an 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.
INVESTMENT REVIEW
The fund's total return for the six months ended April 30, 1998 was 18.44%.* The
target index, the Standard & Poor's 400 Mid-Cap Index (the "Index"), had a total
return of 19.16% during the reporting period. Fund 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 strong climb during the last six months
despite concerns over the problems in Asia, possible increases in interest rates
and weaker corporate earnings. These issues troubled the market in late 1997 and
early 1998, but investors regained confidence, causing the market to surge early
in 1998 to all-time highs.
The U.S. economy, the underlying support for the stock market, shows many signs
of strength: 1) U.S. economic growth, as measured by gross domestic product
("GDP"), has been growing at a historically strong 4% per year during the last
six months; 2) price inflation, as measured by the Consumer Price Index ("CPI"),
has been running at 1-2% per year, well below historical averages; and 3) the
U.S. fiscal budget has begun to indicate a surplus for the first time in many
years, causing talk of possible tax cuts. Other positive economic indicators
include the U.S. dollar strengthening versus other foreign currencies, lower
long-term interest rates, lower oil/energy prices, and record-low unemployment.
Along with this very favorable economic background, a cut in capital gains taxes
in 1997 supports investors' enthusiasm for U.S. stocks, despite slower corporate
earnings growth. Most investors continue to be bullish and are channeling money
into the stock market through equity mutual funds with recordsetting cash
inflows.
However, investors still have reasons for caution. Although the "Asian Flu," or
downturn in Asian financial markets, has subsided somewhat, companies with
significant sales in Asia may suffer earnings declines. Also, the Federal
Reserve Board may increase short-term interest rates to offset wage inflation
pressures. Finally, some strategists are warning that the inability of computers
worldwide to handle the transition to the Year 2000, or the cost to fix the
problem, may trigger earnings problems.
Large company stocks continue to outperform stocks of medium and small-size
companies. There may be stronger demand for large "name brand" companies which
have the ability to take better advantage of a more-integrated global market.
However, some strategists believe that small company stocks will again be in
favor and currently could be selling at bargain prices.
During the last six months, long-distance telecommunications, computer software,
and computer special services were among the strongest performing sectors while
communications equipment, oil and gas drilling, and manufacturing/transport
systems 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.
SHAREHOLDER MEETING RESULTS
A Special Meeting of shareholders of Federated Mid-Cap Fund was held on February
13, 1998. On December 16, 1997, the record date for shareholders voting at the
meeting, there were 4,695,340 total outstanding shares. The following items were
considered by shareholders and the results of their voting were as follows:
<TABLE>
<CAPTION>
Abstentions and Withheld
Agenda Item For Against Broker Non-Votes Authority to Vote
- ------------------------------------------------------------------------ --------- ------- ---------------- -----------------
<S> <C> <C> <C> <C>
1. Election of Trustees*
Thomas G. Bigley 3,493,552 7,477
John E. Murray, Jr. 3,493,552 7,477
2. Approval of a sub-management contract between Federated Management and ANB
Investment Management and Trust Company (which changed its name to Northern
Trust Quantitative Investment
Advisors, Inc.) 3,473,555 5,933 21,541
</TABLE>
* The following Trustees of the Trust continued their terms as Trustees of the
Trust: John F. Donahue, J. Christopher Donahue, John T. Conroy, Jr., William
J. Copeland, James E. Dowd, Lawrence D. Ellis, M.D., Edward L. Flaherty, Jr.,
Peter E. Madden, Wesley W. Posvar, and Marjorie P. Smuts
PORTFOLIO OF INVESTMENTS
Federated Mid-Cap Fund
April 30, 1998 (unaudited)
<TABLE>
<CAPTION>
Shares Value
- ----------- ----------------------------------- --------
(a) Common Stocks--89.7%
<C> <S> <C>
Basic Industry--6.3%
4,400 AK Steel Holding Corp. $ 92,400
5,800 (b)Airgas, Inc. 89,900
2,500 Albany International Corp., Class A 71,250
4,500 Albemarle Corp. 111,938
4,500 Alumax, Inc. 222,188
2,400 Betz Laboratories, Inc. 128,700
3,300 Bowater, Inc. 184,594
1,300 Brush Wellman, Inc. 35,425
4,900 (b)Burlington Industries, Inc. 85,750
5,700 Cabot Corp. 204,844
1,900 CalMat Co. 49,756
3,300 Calgon Carbon Corp. 40,013
1,600 Carpenter Technology Corp. 92,900
1,900 Chesapeake Corp. 69,113
900 Cleveland Cliffs, Inc. 50,400
3,700 Consolidated Papers, Inc. 244,894
6,000 Crompton and Knowles Corp. 179,625
3,700 (b)Cytec Industries, Inc. 202,575
1,900 Dexter Corp. 78,494
4,100 Donaldson Co., Inc. 104,038
6,800 Ethyl Corp. 51,850
3,050 Ferro Corp. 87,878
1,100 Fuller (H.B.) Co. 69,025
2,700 Georgia Gulf Corp. 69,356
7,500 Georgia-Pacific Corp. 192,188
3,500 Glatfelter (P.H.) Co. 63,219
4,200 Hanna (M.A.) Co. 96,338
9,300 IMC Global, Inc. 334,800
3,300 (b)Imation Corp. 62,288
3,700 Lawter International, Inc. 38,850
4,200 Longview Fibre Co. 71,138
</TABLE>
Federated Mid-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ----------- ----------------------------------- --------
(a) Common Stocks--continued
<C> <S> <C>
Basic Industry--continued
4,700 Lubrizol Corp. $173,313
3,800 Martin Marietta Materials 178,363
700 (b)Maxxam, Inc. 42,919
1,800 Minerals Technologies, Inc. 97,988
600 NCH, Corp. 38,025
2,100 Oregon Steel Mills 49,875
8,050 RPM, Inc. 138,863
2,400 Rayonier, Inc. 120,300
2,925 Schulman (A.), Inc. 65,447
9,900 Solutia, Inc. 280,913
7,885 Sonoco Products Co. 316,878
1,900 Southdown, Inc. 134,425
5,000 Unifi, Inc. 191,563
2,800 Vulcan Materials Co. 322,175
2,500 Wellman, Inc. 56,563
4,700 Witco Corp. 186,238
-----------
Total 5,869,575
-----------
Consumer Durables--3.0%
2,000 Arvin Industries, Inc. 81,875
1,900 Bandag, Inc. 105,806
1,900 Borg-Warner Automotive, Inc. 118,156
6,100 Callaway Golf Co. 166,225
2,500 Carlisle Cos., Inc. 126,875
9,676 Clayton Homes, Inc. 194,125
2,000 (b)Culligan Water Technologies 116,125
4,800 (b)Electronic Arts, Inc. 222,000
3,300 Federal-Mogul Corp. 213,469
12,500 Harley Davidson, Inc. 450,000
9,500 International Game Technology 264,219
7,900 Leggett and Platt, Inc. 410,306
10,500 Shaw Industries, Inc. 169,969
1,400 Stanhome, Inc. 46,900
2,300 Superior Industries International, Inc. 73,888
-----------
Total 2,759,938
-----------
</TABLE>
Federated Mid-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ----------- ----------------------------------- --------
(a) Common Stocks--continued
<C> <S> <C>
Consumer Non-Durables--4.6%
1,600 Church and Dwight, Inc. $ 49,300
31,600 Coca Cola Enterprises, Inc. 1,192,850
3,300 Dean Foods Co. 154,688
8,300 Dial Corp. 202,313
4,900 Dole Food, Inc. 220,194
2,200 Dreyers Grand Ice Cream, Inc. 55,550
3,300 First Brands Corp. 88,481
7,225 Flowers Industries, Inc. 154,434
6,200 Hormel Foods Corp. 210,800
7,600 IBP, Inc. 156,750
1,500 International Multifoods Corp. 43,594
6,000 Interstate Bakeries Corp. 190,125
4,200 (b)Jones Apparel Group, Inc. 251,213
2,500 Lance, Inc. 53,750
6,100 McCormick & Co., Inc. 208,925
2,400 Smucker (J.M.) Co., Class A 58,950
19,200 Tyson Foods, Inc., Class A 370,800
3,800 (b)UCAR International, Inc. 123,500
2,900 Universal Corp. 108,569
2,100 Universal Foods Corp. 106,181
3,400 (b)Vlasic Foods International, Inc. 78,413
5,100 Warnaco Group, Inc., Class A 215,475
-----------
Total 4,294,855
-----------
Energy Minerals--5.1%
6,300 (b)BJ Services Co. 236,250
3,200 Camco International, Inc. 217,200
11,700 ENSCO International, Inc. 330,525
14,100 (b)Global Marine, Inc. 332,231
6,600 Lyondell Petrochemical Co. 216,975
3,700 Murphy Oil Corp. 190,319
8,200 (b)Nabors Industries, Inc. 206,538
4,700 Noble Affiliates, Inc. 202,688
10,800 (b)Noble Drilling Corp. 348,975
6,318 (b)Ocean Energy, Inc. 154,791
</TABLE>
Federated Mid-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ----------- ----------------------------------- --------
(a) Common Stocks--continued
<C> <S> <C>
Energy Minerals--continued
6,300 (b)Parker Drilling Co. $ 64,575
8,100 Pioneer Natural Resources, Inc. 193,894
2,900 Quaker State Corp. 52,381
10,300 Ranger Oil Ltd. 71,456
3,300 (b)Smith International, Inc. 193,875
12,800 Tosco Corp. 456,000
8,300 Transocean Offshore, Inc. 463,763
7,150 Ultramar Diamond Shamrock Corp. 231,034
4,600 Valero Energy Corp. 148,925
5,200 (b)Varco International, Inc. 159,900
4,281 (b)Weatherford Enterra, Inc. 214,318
-----------
Total 4,686,613
-----------
Finance--13.8%
5,700 AMBAC 323,119
11,075 Aflac, Inc. 719,875
2,700 Allstate Corp. 219,375
4,200 Associated Banc Corp. 220,500
9,630 Bear Stearns Cos., Inc. 549,512
5,400 Capital One Financial Corp. 518,738
5,270 Charter One Financial, Inc. 356,713
3,700 City National Corp. 137,594
6,125 Comdisco, Inc. 271,031
9,000 Crestar Financial Corp. 538,313
10,200 Dime Bancorp, Inc. 313,013
7,788 Edwards(AG), Inc. 350,438
4,600 Finova Group, Inc. 269,388
14,225 First Security Corp. 348,513
10,500 First Tennessee National Corp. 361,594
4,200 First Virginia Bank, Inc. 234,675
11,900 Firstar Corp. 444,019
2,000 GATX Corp. 165,750
1,600 HSB Group, Inc. 105,600
11,700 Hibernia Corp., Class A 239,119
8,300 Marshall & Ilsley Corp. 485,550
</TABLE>
Federated Mid-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ----------- ----------------------------------- --------
(a) Common Stocks--continued
<C> <S> <C>
Finance--continued
5,850 Mercantile Bankshares Corp. $ 224,494
5,500 North Fork Bancorp, Inc. 204,188
8,400 Northern Trust Corp. 613,200
7,700 Old Kent Financial Corp. 299,338
7,600 Old Republic International Corp. 343,900
6,600 Pacific Century Financial Corp. 162,938
10,850 PaineWebber Group, Inc. 486,216
1,500 (b)Policy Management System Corp. 120,938
11,100 Provident Cos., Inc. 433,594
11,160 Regions Financial Corp. 486,855
12,300 SouthTrust Corp. 525,056
4,700 T. Rowe Price Associates 354,850
7,600 TCF Financial Corp. 247,475
2,850 Transatlantic Holdings, Inc. 218,916
6,800 Union Planters Corp. 418,200
2,800 Wilmington Trust Corp. 180,950
5,600 Zions Bancorp 286,300
-----------
Total 12,779,837
-----------
Health Care--7.4%
1,200 (b)ATL Ultrasound, Inc. 58,050
2,400 (b)Acuson Corp. 45,000
4,800 Allegiance Corp. 219,000
4,200 (b)Apria Healthcare Group, Inc. 40,163
4,106 Bergen Brunswig Corp., Class A 186,310
9,000 (b)Beverly Enterprises, Inc. 141,750
6,100 (b)Biogen, Inc. 270,688
3,800 Carter Wallace, Inc. 68,638
5,700 (b)Centocor, Inc. 240,469
14,424 (b)Chiron Corp. 279,465
3,100 (b)Concentra Managed Care, Inc. 96,488
40 (b)Coram Healthcare Corp., Warrants 0
4,700 (b)Covance, Inc. 100,756
4,400 Dentsply International, Inc. 144,650
6,600 (b)Forest Laboratories, Inc., Class A 238,838
</TABLE>
Federated Mid-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ----------- ----------------------------------- --------
(a) Common Stocks--continued
<C> <S> <C>
Health Care--continued
9,940 (b)Foundation Health Systems, Inc.,
Class A $287,639
6,400 (b)Genzyme Corp. 198,000
13,350 (b)Health Management Association,
Class A 420,525
3,600 (b)Healthcare & Retirement Corp. 146,700
5,800 ICN Pharmaceuticals, Inc. 285,650
10,000 Ivax Corp. 97,500
7,600 McKesson Corp. 537,225
6,000 (b)Medaphis Corp. 55,125
10,000 Mylan Laboratories, Inc. 271,250
5,000 (b)NovaCare, Inc. 69,688
6,700 Omnicare, Inc. 229,475
6,500 (b)Oxford Health Plans, Inc. 111,313
3,398 (b)PacifiCare Health Systems, Inc.,
Class B 243,382
6,200 (b)Perrigo Co. 80,213
6,200 (b)Quintiles Transnational Corp. 300,700
6,100 (b)Quorum Health Group, Inc. 195,963
2,000 (b)Scherer (R.P.) Corp. 146,000
400 (b)SonoSight, Inc. 3,275
7,900 Stryker Corp. 355,500
7,900 (b)Sybron International Corp. 209,350
6,400 (b)Total Renal Care Holdings, Inc. 212,000
7,200 (b)Watson Pharmaceuticals, Inc. 309,600
-----------
Total 6,896,338
-----------
Producer Manufacturing--6.1%
5,200 AGCO Corp. 139,100
4,800 American Financial Group, Inc. 209,100
7,800 (b)American Power Conversion Corp. 251,063
2,700 Ametek, Inc. 82,181
4,800 Danaher Corp. 345,000
5,694 Diebold, Inc. 233,444
3,700 Federal Signal Corp. 79,319
3,300 Flowserve Corp. 98,588
5,000 HON Industries, Inc. 160,000
3,900 Harsco Corp. 179,400
</TABLE>
Federated Mid-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ----------- ----------------------------------- --------
(a) Common Stocks--continued
<C> <S> <C>
Producer Manufacturing--continued
5,480 Hubbell, Inc., Class B $ 270,233
2,800 Kaydon Corp. 122,675
2,200 Kennametal, Inc. 117,288
3,550 Lancaster Colony Corp. 137,099
5,800 (b)Lexmark Intl. Group, Class A 335,675
2,600 (b)Magnetek, Inc. 51,188
5,250 Mark IV Industries, Inc. 110,578
5,700 Meritor Automotive, Inc. 147,131
7,600 Miller Herman, Inc. 229,425
2,400 Modine Manufacturing Co. 89,250
1,400 Nordson Corp. 65,975
4,000 Olin Corp. 187,250
3,100 Pentair, Inc. 134,075
3,400 Pittston Brink's Group 133,025
1,950 Precision Castparts Corp. 121,144
2,700 Stewart & Stevenson Services 60,075
1,800 Tecumseh Products Co., Class A 90,675
3,000 Teleflex, Inc. 127,500
3,550 Trinity Industries, Inc. 181,050
7,700 (b)U.S. Filter Corp. 251,213
10,800 (b)U.S. Office Products Co. 191,025
7,900 Viad Corp. 203,919
2,200 Watts Industries, Inc., Class A 56,375
4,768 Wausau-Mosinee Paper Corp. 102,799
8,300 Whitman Corp. 162,369
3,400 York International Corp. 167,663
-----------
Total 5,623,869
-----------
Retail Trade--6.6%
3,100 (b)BJ's Wholesale Club, Inc. 124,194
5,600 (b)Barnes & Noble, Inc. 189,700
5,600 (b)Bed Bath & Beyond, Inc. 275,800
3,600 (b)Best Buy Co., Inc. 252,900
3,950 Claire's Stores, Inc. 86,159
7,500 (b)CompUSA, Inc. 139,219
</TABLE>
Federated Mid-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ----------- ----------------------------------- --------
(a) Common Stocks--continued
<C> <S> <C>
Retail Trade--continued
11,783 Dollar General Corp. $ 446,262
7,050 Family Dollar Stores, Inc. 239,700
3,100 Fastenal Co. 173,406
3,800 Fingerhut Companies, Inc. 112,575
6,700 (b)General Nutrition Cos., Inc. 240,363
3,500 Hannaford Brothers Co. 155,531
4,650 Heilig-Meyers Co. 65,391
13,000 (b)Kohl's Corp. 537,063
2,600 (b)Lands' End, Inc. 95,875
12,300 (b)Meyer (Fred), Inc. 551,963
2,800 (b)Micro Warehouse, Inc. 43,750
2,900 (b)Nine West Group, Inc. 80,656
12,925 (b)Office Depot, Inc. 428,141
10,150 (b)Officemax, Inc. 190,947
3,100 (b)Payless ShoeSource, Inc. 221,650
5,100 Premark International, Inc. 170,213
7,200 (b)Proffitts, Inc. 286,200
3,800 Ruddick Corp. 68,163
4,800 (b)Saks Holdings, Inc. 107,100
20,113 (b)Staples, Inc. 496,527
2,900 Tiffany & Co. 131,950
6,900 (b)Viking Office Products, Inc. 166,894
-----------
Total 6,078,292
-----------
Services--9.0%
4,700 (b)ACNielsen Corp. 131,600
14,318 (b)AES Corp. 790,175
1 (b)Ascent Entertainment Group, Inc. 8
2,450 Banta Corp. 78,400
5,100 Belo (A.H.) Corp., Series A 269,981
3,500 Bob Evans Farms, Inc. 71,313
5,375 (b)Brinker International, Inc. 129,000
3,700 (b)Buffets, Inc. 54,806
2,639 (b)Chris Craft Industries, Inc. 151,405
8,000 Cintas Corp. 381,000
</TABLE>
Federated Mid-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ----------- ----------------------------------- --------
(a) Common Stocks--continued
<C> <S> <C>
Services--continued
7,800 (b)Circus Circus Enterprises, Inc. $ 140,888
6,500 (b)Corrections Corp. America 180,375
5,050 Cracker Barrel Old Country Store 185,588
2,600 (b)First Health Group Corp. 153,400
1,500 Granite Construction, Inc. 44,344
3,400 (b)Gtech Holdings Corp. 121,975
2,500 Houghton Mifflin Co. 81,406
2,100 (b)Jacobs Engineering Group, Inc. 70,088
3,175 Kelly Services, Inc., Class A 117,475
3,800 Lee Enterprises, Inc. 118,988
3,400 (b)Lone Star Steakhouse & Saloon 72,250
6,600 Manpower, Inc. 290,813
2,200 Media General, Inc., Class A 104,500
0 (b)Midas, Inc. 6
4,100 Ogden Corp. 126,075
6,700 Olsten Corp. 91,706
3,900 (b)Outback Steakhouse, Inc. 148,688
8,862 Paychex, Inc. 481,317
7,115 (b)Promus Hotel Corp. 321,509
6,500 Reynolds & Reynolds Co., Class A 149,500
7,450 (b)Robert Half International, Inc. 403,231
2,800 Rollins, Inc. 55,825
1,700 Sbarro, Inc. 50,150
1,300 (b)Scholastic Corp. 48,425
6,100 Sensormatic Electronics Corp. 95,313
4,600 Sothebys Holdings, Inc., Class A 106,088
2,300 Standard Register 91,856
7,100 (b)Starbucks Corp. 341,688
8,000 Stewart Enterprises, Inc., Class A 206,000
5,300 (b)Synopsys, Inc. 227,900
3,600 (b)U.S. Foodservice, Inc. 127,125
17,700 (b)USA Waste Services, Inc. 868,406
5,500 Unisource Worldwide, Inc. 69,781
3,500 Wallace Computer, Inc. 126,219
</TABLE>
Federated Mid-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ----------- ----------------------------------- --------
(a) Common Stocks--continued
<C> <S> <C>
Services--continued
900 Washington Post Co., Class B $ 471,825
-----------
Total 8,348,411
-----------
Technology--14.5%
10,800 (b)ADC Telecommunications, Inc. 323,325
7,300 (b)Altera Corp. 295,650
16,800 (b)America Online, Inc. 1,344,000
13,266 (b)Analog Devices, Inc. 516,545
8,050 (b)Arrow Electronics, Inc. 219,866
8,200 (b)Atmel Corp. 165,538
3,300 Avnet, Inc. 203,569
8,300 (b)BMC Software, Inc. 776,569
2,300 Beckman Coulter, Inc. 128,081
17,100 (b)Cadence Design Systems, Inc. 620,944
3,400 Comverse Technology, Inc. 161,075
5,500 (b)Cirrus Logic, Inc. 57,406
14,300 (b)Compuware Corp. 698,913
7,400 (b)Cypress Semiconductor Corp. 74,000
4,300 (b)FIserv, Inc. 281,113
3,400 GenCorp, Inc. 103,488
5,600 Hillenbrand Industries, Inc. 349,300
2,400 (b)Information Resources, Inc. 44,850
12,500 (b)Informix Corp. 123,633
6,600 (b)Integrated Device Technology, Inc. 79,613
5,500 (b)Keane, Inc. 276,375
6,300 Linear Technology Corp. 507,150
3,800 (b)Litton Industries, Inc. 228,000
10,700 (b)Maxim Integrated Products, Inc. 432,013
5,300 (b)Mentor Graphics Corp. 55,650
12,868 Molex, Inc. 368,347
8,400 (b)NCR Corp. 308,175
5,700 (b)Network Associates, Inc. 390,450
2,900 NewPort News Shipbuilding, Inc. 78,844
1,700 OEA, Inc. 32,406
5,700 (b)Qualcomm, Inc. 320,625
</TABLE>
Federated Mid-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ----------- ----------------------------------- --------
(a) Common Stocks--continued
<C> <S> <C>
Technology--continued
11,200 (b)Quantum Corp. $ 263,200
4,900 (b)SCI Systems, Inc. 201,819
800 (b)Sequa Corp., Class A 59,200
3,500 (b)Sequent Computer System, Inc. 68,688
9,400 (b)Solectron Corp. 416,538
7,337 (b)Sterling Commerce, Inc. 312,284
6,400 (b)Sterling Software, Inc. 169,200
4,380 (b)Storage Technology Corp. 369,836
2,000 (b)Stratus Computer, Inc. 87,125
2,800 (b)Structural Dynamics Research Corp. 79,100
8,100 (b)SunGuard Data Systems, Inc. 288,563
4,900 Sundstrand Corp. 338,406
4,600 (b)Symantec Corp. 133,400
4,875 Symbol Technologies, Inc. 187,688
6,800 (b)Teradyne, Inc. 248,200
3,000 Thiokol Corp. 161,625
2,500 Varian Association, Inc. 122,344
5,272 (b)Vishay Intertechnology, Inc. 96,544
6,100 (b)Xilinx, Inc. 279,075
-----------
Total 13,448,348
-----------
Transportation--1.8%
2,500 ASA Holdings Ltd. 95,000
4,100 Airborne Freight Corp. 162,463
1,500 (b)Alaska Air Group, Inc. 84,188
3,700 Alexander and Baldwin, Inc. 105,913
2,100 Arnold Industries, Inc. 33,600
3,800 CNF Transportation, Inc. 146,775
3,000 Hunt (J.B.) Transportation Services,
Inc. 96,000
5,050 Illinois Central Corp. 200,738
8,800 Kansas City Southern Industries, Inc. 397,650
3,000 Overseas Shipholding Group, Inc. 63,750
5,000 Tidewater, Inc. 198,125
4,200 (b)Wisconsin Central Transportation
Corp. 102,900
-----------
Total 1,687,102
-----------
</TABLE>
Federated Mid-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ----------- ----------------------------------- --------
(a) Common Stocks--continued
<C> <S> <C>
Utilities--11.5%
10,000 (b)360 Communications Co. $ 305,625
4,600 AGL Resources, Inc. 95,738
3,000 Aliant Communications, Inc. 85,125
10,000 Allegheny Energy, Inc. 306,250
6,500 American Water Works Co., Inc. 194,594
1,800 Black Hills Corp. 37,688
7,900 CMS Energy Corp. 345,131
6,700 (b)CalEnergy Co., Inc. 218,588
2,700 Central Maine Power Co. 49,106
7,500 Century Telephone Enterprises, Inc. 319,219
11,100 Cincinnati Bell, Inc. 424,575
1,800 Cleco Corp. 57,825
4,100 Comsat Corp. 165,538
8,225 Conectiv, Inc. 172,211
1 Conectiv, Inc., Class A 16
9,800 El Paso Natural Gas 361,988
8,000 Florida Progress Corp. 325,000
2,600 Hawaiian Electric Industries, Inc. 105,300
3,100 Idaho Power Co. 110,438
5,900 Illinova Corp. 180,319
1,850 Indiana Energy, Inc. 58,275
5,800 Interstate Energy Corp. 183,063
3,700 Ipalco Enterprises, Inc. 161,181
5,100 Kansas City Power And Light Co. 151,725
4,100 Keyspan Energy Corp. 139,913
7,900 (b)LCI International, Inc. 314,025
5,500 LG&E Energy Corp. 145,750
6,400 MCN Corp. 241,600
8,222 MidAmerican Energy Holdings Co. 173,690
2,700 Minnesota Power And Light Co. 110,025
4,500 Montana Power Co. 167,344
10,300 NIPSCO Industries, Inc. 276,169
3,100 National Fuel Gas Co. 142,600
4,100 Nevada Power Co. 100,706
</TABLE>
Federated Mid-Cap Fund
<TABLE>
<CAPTION>
Shares or
Principal
Amount Value
- ----------- ----------------------------------- --------
(a) Common Stocks--continued
<C> <S> <C>
Utilities--continued
9,045 New Century Energies, Inc. $ 429,638
5,300 New England Electric System 230,550
5,500 New York State Electric and Gas
Corp. 229,625
10,600 Northeast Utilities Co. 149,725
3,300 OGE Energy Corp. 181,294
6,900 Pinnacle West Capital Corp. 305,325
9,700 Potomac Electric Power Co. 237,650
3,400 Public Service Co. New Mexico 78,413
6,900 Puget Sound Energy, Inc. 181,556
3,400 Questar Corp. 147,475
8,800 SCANA Corp. 262,900
5,200 (b)Seagull Energy Corp. 88,725
5,500 Southern New England
Telecommunications 385,000
2,000 TCA Cable TV, Inc. 123,500
10,700 TECO Energy, Inc. 284,888
4,900 Telephone and Data System, Inc. 232,750
4,400 Utilicorp United, Inc. 165,550
3,300 (b)Vanguard Cellular Systems, Inc.,
Class A 62,700
3,600 Washington Gas Light Co. 97,875
7,493 Williams Cos., Inc. (The) 236,950
9,100 Wisconsin Energy Corp. 277,550
-----------
Total 10,615,979
-----------
Total Common Stocks
(identified cost $52,799,075) 83,089,157
===========
(c) Short-Term U.S. Government Obligation--0.4%
400,000 United States Treasury Bill, 6/18/1998
(at amortized cost) 397,372
</TABLE>
Federated Mid-Cap Fund
<TABLE>
<CAPTION>
Principal
Amount Value
- ----------- ----------------------------------- --------
(d) Repurchase Agreement--8.9%
<C> <S> <C>
$8,265,000 BT Securities Corp., 5.53%, dated
4/30/1998, due 5/1/1998
(at amortized cost) $ 8,265,000
-----------
Total Investments
(identified cost $61,461,446)(e) $91,751,529
===========
</TABLE>
(a) The fund purchases Index futures contracts to efficiently manage cash flows
resulting from shareholder purchases and redemptions, dividend and capital
gain payments to shareholders and corporate actions while maintaining
exposure to the Index and minimizing trading costs. The total market value
of open Index futures contracts is $11,127,400 at April 30, 1998, which
represents 12.0% of net assets. Taking into consideration these open Index
futures contracts, the fund's effective total exposure to the Index is
101.7%.
(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 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 $61,461,446. The
net unrealized appreciation of investments on a federal tax basis amounts to
$30,290,083 which is comprised of $32,521,445 appreciation and $2,231,362
depreciation at April 30, 1998.
Note: The categories of investments are shown as a percentage of net assets
($92,636,523) at April 30, 1998.
The following acronym is used throughout this portfolio:
AMBAC--American Municipal Bond Assurance Corporation
(See Notes which are an integral part of the Financial Statements)
STATEMENT OF ASSETS AND LIABILITIES
Federated Mid-Cap Fund
April 30, 1998 (unaudited)
<TABLE>
<CAPTION>
<S> <C> <C>
Assets:
Investments in securities, at value
(identified and tax cost $61,461,446 $91,751,529
Income receivable 66,262
Receivable for investments sold 1,258,905
receivable for shares sold 41,609
Receivable for daily variation margin 136,094
Miscellaneous Receivable 20,533
-----------
Total assets 93,274,932
Liabilities:
Payable for investments purchased $ 457,513
Payable for shares redeemed 41,677
Payable to Bank 138,324
Payable for taxes withheld 38
Accrued expenses 857
---------
Total liabilities 638,409
-----------
Net Assets for 4,978,357 shares outstanding $92,636,523
===========
Net Assets Consist of:
Paid in capital $58,586,238
Net unrealized appreciation of investments and futures contracts 30,880,709
Accumulated net realized gain on investments and futures contracts 3,145,882
Undistributed net investment income 23,694
-----------
Total Net Assets $92,636,523
===========
Net Asset Value, Offering Price and Redemption Proceeds Per Share:
$92,636,523 divided by 4,978,357 shares outstanding
$18.61
===========
</TABLE>
(See Notes which are an integral part of the Financial Statements)
STATEMENT OF OPERATIONS
Federated Mid-Cap Fund
Six Months Ended April 30, 1998 (unaudited)
<TABLE>
<CAPTION>
Investment Income:
<S> <C> <C> <C>
Dividends (net of foreign taxes withheld of $351) $ 422,710
Interest 273,051
-----------
Total income 695,761
Expenses:
Investment advisory fee $ 160,699
Custodian fees 3,268
Transfer and dividend disbursing agent fees and expenses 15,293
Directors'/Trustees' fees 1,050
Auditing fees 7,421
Legal fees 1,875
Portfolio accounting fees 26,661
Shareholder services fee 100,437
Share registration costs 8,225
Printing and postage 7,964
Insurance premiums 2,490
Taxes 1,204
Miscellaneous 12,482
---------
Total expenses 349,069
Waivers --
Waiver of investment advisory fee $ (20,093)
Waiver of shareholder services fee (88,385)
-----------
Total waivers (108,478)
---------
Net expenses 240,591
-----------
Net investment income 455,170
-----------
Realized and Unrealized Gain (Loss) on Investments and Futures Contracts:
Net realized gain on investments and futures contracts 2,771,775
Net change in unrealized appreciation of investments and futures contracts 10,645,164
-----------
Net realized and unrealized gain on investments and futures contracts 13,416,939
-----------
Change in net assets resulting from operations $13,872,109
-----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
STATEMENT OF CHANGES IN NET ASSETS
Federated Mid-Cap Fund
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
(unaudited) October 31,
April 30, 1998 1997
-------------- -----------
<S> <C> <C>
Increase (Decrease) in Net Assets:
Operations--
Net investment income $ 455,170 $ 750,960
Net realized gain on investments and futures contracts ($2,771,775 and $6,019,168,
respectively, as computed for federal tax purposes) 2,771,775 6,609,158
Net change in unrealized appreciation of investments and futures contracts 10,645,164 9,715,619
-------------- -----------
Change in net assets resulting from operations 13,872,109 17,075,737
-------------- -----------
Distributions to Shareholders--
Distributions from net investment income (532,221) (690,737)
Distributions from net realized gains on investments and futures contracts (6,088,545) (2,561,934)
-------------- -----------
Change in net assets resulting from distributions to shareholders (6,620,766) (3,252,671)
-------------- -----------
Share Transactions--
Proceeds from sale of shares 48,335,091 42,261,338
Net asset value of shares issued to shareholders in payment of distributions declared 4,148,335 1,989,434
Cost of shares redeemed (40,972,449) (44,147,633)
-------------- -----------
Change in net assets resulting from share transactions 11,510,977 103,139
-------------- -----------
Change in net assets 18,762,320 13,926,205
Net Assets:
Beginning of period 73,874,203 59,947,998
-------------- -----------
End of period (including undistributed net investment
income of $23,694 and $100,745, respectively) $ 92,636,523 $ 73,874,203
-------------- -----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
<PAGE>
FINANCIAL HIGHLIGHTS
Federated Mid-Cap Fund
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months
Ended Year Ended October 31,
April 30, ---------------------------------------------
1998 1997 1996 1995 1994 1993
--------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 17.17 $ 13.75 $ 12.78 $ 11.02 $ 11.57 $ 9.99
Income from investment operations
Net investment income 0.10 0.18 0.18 0.22 0.21 0.25
Net realized and unrealized gain (loss)
on investments and futures 2.84 4.00 1.73 1.93 (0.07) 1.56
--------- ------- ------- ------- ------- -------
Total from investment operations 2.94 4.18 1.91 2.15 0.14 1.81
--------- ------- ------- ------- ------- -------
Less distributions
Distributions from net investment income (0.12) (0.17) (0.20) (0.20) (0.19) (0.23)
Distributions from net realized gain on
investments and futures contracts (1.38) (0.59) (0.74) (0.19) (0.50) --
Total distributions (1.50) (0.76) (0.94) (0.39) (0.69) (0.23)
--------- ------- ------- ------- ------- -------
Net asset value, end of period $ 18.61 $ 17.17 $ 13.75 $ 12.78 $ 11.02 $ 11.57
--------- ------- ------- ------- ------- -------
Total return (a) 18.44% 31.83% 15.80% 20.12% 1.25% 17.33%
Ratios to average net assets
Expenses 0.60%* 0.60% 0.60% 0.60% 0.54% 0.00%
Net investment income 1.13%* 1.19% 1.31% 1.89% 1.84% 2.33%
Expense waiver/reimbursement (b) 0.27%* 0.31% 0.34% 0.41% 0.59% 1.75%
Supplemental data
Net assets, end of period (000 omitted) $92,637 $73,874 $59,948 $62,580 $44,012 $16,192
Average commission rate paid (c) $0.0241 $0.0520 $0.0432 -- -- --
Portfolio turnover 9% 19% 17% 26% 30% 59%
</TABLE>
* Computed on an annualized basis.
(a) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(b) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(c) 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)
NOTES TO FINANCIAL STATEMENTS
Federated Mid-Cap Fund
April 30, 1998 (unaudited)
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.
Significant Accounting Policies
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
Investment Valuations
Listed equity securities are valued at the last sale price reported on a
national securities exchange. Short-term securities are valued at the prices
provided by an independent pricing service. However, short-term securities with
remaining maturities of sixty days or less at the time of purchase may be valued
at amortized cost, which approximates fair market value.
Repurchase Agreements
It is the policy of the Fund to require the custodian bank to take possession,
to have legally segregated in the Federal Reserve Book Entry System, or to have
segregated within the custodian bank's vault, all securities held as collateral
under repurchase agreement transactions. Additionally, procedures have been
established by the Fund to monitor, on a daily basis, the market value of each
repurchase agreement's collateral to ensure that the value of collateral at
least equals the repurchase price to be paid under the repurchase agreement
transaction.
The Fund will only enter into repurchase agreements with banks and other
recognized financial institutions, such as broker/dealers, which are deemed by
the Fund's adviser to be creditworthy pursuant to the guidelines and/or
standards reviewed or established by the Board of Trustees (the "Trustees").
Risks may arise from the potential inability of counterparties to honor the
terms of the repurchase agreement. Accordingly, the Fund could receive less than
the repurchase price on the sale of collateral securities.
Investment Income, Expenses and Distributions
Interest income and expenses are accrued daily. Bond premium and discount, if
applicable, are amortized as required by the Internal Revenue Code, as amended
(the "Code"). Dividend income and distributions to shareholders are recorded on
the ex-dividend date.
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.
Federated Mid-Cap Fund
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 Trust 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, 1998, the Fund had realized gains of $258,379.
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, 1998, the Fund had outstanding futures contracts as set forth
below:
<TABLE>
<CAPTION>
Federated Mid-Cap Fund
Expiration Date Contracts to Deliver/Receive Position Unrealized Appreciation
- --------------- ---------------------------- -------- -----------------------
<S> <C> <C> <C>
June 1998 59 Midcap 400 Index futures long $590,626
</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.
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>
Period Ended Year Ended
April 30, 1998 October 31, 1997
-------------- ----------------
<S> <C> <C>
Shares sold 2,785,215 2,703,076
Shares issued to shareholders in payment of distributions declared 256,193 145,409
Shares redeemed (2,366,688) (2,903,198)
-------------- ----------------
Net change resulting from share transactions 674,720 (54,713)
-------------- ----------------
</TABLE>
Investment Advisory Fee and Other Transactions with Affiliates
Management Fee
Federated Management, the Fund's manager, (the "Manager"), receives for its
services an annual investment advisory 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 Northern Trust Quantitative Investment Advisors, Inc. (the "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.
Year 2000 Issue
Similar to other financial organizations, the Fund could be adversely affected
if the computer systems used by the Fund's service providers do not properly
process and calculate date-related information and data from and after January
1, 2000. The Fund's Manager and administrator are taking measures that they
believe are reasonably designed to address the Year 2000 issue with respect to
computer systems that they use and to obtain reasonable assurances that
comparable steps are being taken by each of the Fund's other service providers.
At this time, however, there can be no assurance that these steps will be
sufficient to avoid any adverse impact to the Fund.
Investment Transactions
Purchases and sales of investments, excluding short-term securities, for the
period ended April 30, 1998, were as follows:
<TABLE>
<S> <C>
Purchases $13,893,807
-----------
Sales $ 6,234,785
-----------
</TABLE>
TRUSTEES OFFICERS
John F. Donahue John F. Donahue
Thomas G. Bigley Chairman
John T. Conroy, Jr. Glen R. Johnson
Nickolas P. Constantakis President
William J. Copeland J. Christopher Donahue
J. Christopher Donahue Executive Vice President
James E. Dowd Edward C. Gonzales
Lawrence D. Ellis, M.D. Executive Vice President
Edward L. Flaherty, Jr. John W. McGonigle
Peter E. Madden Executive Vice President, Treasurer,
John E. Murray, Jr. and Secretary
Wesley W. Posvar Richard B. Fisher
Marjorie P. Smuts Vice President
Nickolas J. Seitanakis
Assistant Secretary
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 Investors Logo]
Federated Mid-Cap Fund
Semi-Annual Report
to Shareholders
April 30, 1998
Cusip 31420E205
3042108 (6/98)
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 period
from November 1, 1997 through April 30, 1998. The report begins with an
investment review, followed by the fund's portfolio 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.
During the six-month reporting period, the fund's Institutional Shares produced
a total return of 11.21%.*** Contributing to this total return were dividend
income totaling $0.08 per share, capital gains totaling $1.46 per share, and a
net asset value increase of$0.12.
During the period from November 10, 1997 (date of inception) through April 30,
1998, the fund's Class C Shares produced a total return of 10.36%.***
Contributing to this total return were dividend income totaling $0.03 per share,
capital gains totaling $1.46 per share, and a net asset value increase of $0.04.
The fund's total net assets reached $152.1 million on the last day of the
reporting period.
Thank you for putting your money to work in dynamic small-company stocks through
the diversification and professional management of Federated Mini-Cap Fund. As
always, we invite your comments and suggestions.
Sincerely,
/s/ Glen R. Johnson
- ---------------------------------
Glen R. Johnson
President
June 15, 1998
* Small cap stocks have historically experienced greater volatility than
average.
** 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. Actual investments cannot be made
in an 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.
INVESTMENT REVIEW
The fund's total return for the Institutional Shares class for the six months
ended April 30, 1998 was 11.21%.* The total return of the Class C shares was
10.36% from inception (11/10/97) through April 30, 1998.*
The target index, the Russell 2000 Index (the "Index"), had a total return of
11.86% 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. It is
important to note that transaction 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 strong climb in the last six months despite
concerns over the problems in Asia, possible increases in interest rates and
weaker corporate earnings. These issues troubled the market in late 1997 and
early 1998, but investors regained confidence, causing the market to surge early
in 1998 to all-time highs.
The U.S. economy, the underlying support for the stock market, shows many signs
of strength: 1) U.S. economic growth, as measured by gross domestic product
("GDP"), has been growing at a historically strong 4% per year during the last
six months; 2) price inflation, as measured by the Consumer Price Index ("CPI"),
has been running at 1-2% per year, well below historical averages; and 3) the
U.S. fiscal budget has begun to indicate a surplus for the first time in many
years, causing talk of possible tax cuts. Other positive economic indicators
include the U.S. dollar strengthening versus other foreign currencies, lower
long-term interest rates, lower oil/energy prices, and record-low unemployment.
Along with this very favorable economic background, a cut in capital gains taxes
in 1997 supports investors' enthusiasm for U.S. stocks, despite slower corporate
earnings growth. Most investors continue to be bullish and are channeling money
into the stock market through equity mutual funds with record-setting cash
inflows.
However, investors still have reasons for caution. Although the "Asian Flu," or
downturn in Asian financial markets, has subsided somewhat, companies with
significant sales in Asia may suffer earnings declines. Also, the Federal
Reserve Board may increase short-term interest rates to offset wage inflation
pressures. Finally, some strategists are warning that the inability of computers
worldwide to handle the transition to the Year 2000, or the cost to fix the
problem, may trigger earnings problems.
Large company stocks continue to outperform stocks of medium and smaller-size
companies. There may be a stronger demand for large "name brand" companies which
have the ability to take better advantage of a more-integrated global market.
However, some strategists believe that small company stocks will again be in
favor and currently could be selling at bargain prices.
During the last six months, consumer/discretionary, utilities, and
automobile/transportation were among the strongest performing sectors while
energy, health care and technology 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.
SHAREHOLDER MEETING RESULTS
A Special Meeting of shareholders of Federated Mini-Cap Fund was held on
February 13, 1998. On December 16, 1997, the record date for shareholders voting
at the meeting, there were 8,862,691 total outstanding shares. The following
items were considered by shareholders and the results of their voting were as
follows:
<TABLE>
<CAPTION>
Abstentions and Withheld
Agenda Item For Against Broker Non-Votes Authority to Vote
- --------------------------------------------------- --------- ----------- ---------------- -----------------
<S> <C> <C> <C> <C>
1. Election of Trustees*
Thomas G. Bigley 6,761,468 52,919
John E. Murray, Jr. 6,761,468 52,919
2. Approval of a sub-management contract between Federated Management and
ANBInvestment Management and Trust Company (which changed its name to
Northern Trust Quantitative Investment
Advisors, Inc.) 6,665,556 88,136 60,695
</TABLE>
* The following Trustees of the Trust continued their terms as Trustees of the
Trust: John F. Donahue, J. Christopher Donahue, John T. Conroy, Jr., William
J. Copeland, James E. Dowd, Lawrence D. Ellis, M.D., Edward L. Flaherty, Jr.,
Peter E. Madden, Wesley W. Posvar, and Marjorie P. Smuts.
PORTFOLIO OF INVESTMENTS
Federated Mini-Cap Fund
April 30, 1998 (unaudited)
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--90.8%
Basic Industry--5.8%
500 AEP Industries, Inc. $ 17,250
7,400 AK Steel Holding Corp. 155,400
3,650 AMCOL International Corp. 49,959
2,600 Albany International Corp., Class A 74,100
3,100 Albemarle Corp. 77,113
8,200 (a) Amax Gold, Inc. 30,750
600 Ameron, Inc. 36,975
2,600 Aptargroup, Inc. 162,500
13,800 (a) Armco, Inc. 94,875
4,000 BMC Industries, Inc. 73,000
4,400 Ball Corp. 169,950
2,400 (a) Barnett, Inc. 48,600
4,300 Birmingham Steel Corp. 68,800
3,000 Brady (W.H.) Co. 91,500
2,300 Brush Wellman, Inc. 62,675
8,200 (a) Burlington Industries, Inc. 143,500
2,800 CalMat Co. 73,325
5,100 Calgon Carbon Corp. 61,838
1,650 Cambrex Corp. 91,575
3,700 Caraustar Industries, Inc. 126,725
1,300 (a) Carbide/Graphite Group, Inc. 41,925
3,300 Carpenter Technology Corp. 191,606
1,500 Centex Construction Products, Inc. 55,125
2,900 Century Aluminium Co. 49,119
1,300 Chemed Corp. 52,081
2,800 Chesapeake Corp. 101,850
300 (a) Christiana Companies, Inc. 11,944
1,500 Cleveland Cliffs, Inc. 84,000
3,200 Coeur d'Alene Mines Corp. 37,400
8,800 (a) Collins & Aikman Corp. 72,050
1,600 Columbus McKinnion Corp. 45,200
3,500 (a) Cone Mills Corp. 31,719
1,100 Culp, Inc. 20,900
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Basic Industry--continued
4,300 Dekalb Genetics Corp., Class B $ 293,206
5,497 Delta & Pine Land Co. 253,206
1,800 Deltic Timber Corp. 51,413
3,400 Dexter Corp. 140,463
5,700 Donaldson Company, Inc. 144,638
1,900 Elcor Corp. 52,844
2,000 (a) Embrace Systems Corp. 1,000
600 Fab Industries, Inc. 19,200
5,400 Ferro Corp. 155,588
1,900 Florida Rock Industries, Inc. 52,250
2,000 Foamex International, Inc. 35,000
2,000 Fuller (H.B.) Co. 125,500
2,700 Furon Co. 56,531
1,700 (a) Galey & Lord, Inc. 44,413
7,400 (a) Gaylord Container Corp. 71,225
1,600 General Chemical Group, Inc. 44,600
3,300 Geon Co. 78,788
4,700 Georgia Gulf Corp. 120,731
4,458 (a) Getchell Gold Corp. 109,778
1,400 (a) Giant Cement Holding, Inc. 39,550
3,700 Glatfelter (P.H.) Co. 66,831
2,000 Greif Brothers Corp., Class A 77,000
3,200 Guilford Mills, Inc. 90,400
6,400 Hanna (M.A.) Co. 146,800
8,000 (a) Hecla Mining Co. 51,000
5,900 (a) Imation Corp. 111,363
2,200 Imco Recycling, Inc. 40,700
2,300 (a) Ionics, Inc. 102,494
2,600 J&L Specialty Steel, Inc. 21,125
3,500 (a) Kaiser Aluminum Corp. 36,531
4,600 Lawter International, Inc. 48,300
1,350 Learonal 38,475
3,350 Lilly Industrial, Inc., Class A 63,022
600 Liqui Box Corp. 26,888
1,600 Lone Star Industries, Inc. 132,200
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Basic Industry--continued
3,300 (a) Lone Star Technologies, Inc. $ 72,394
7,500 Longview Fibre Co. 127,031
2,200 Lukens, Inc. 76,313
2,300 (a) Lydall, Inc. 42,694
2,800 MacDermid, Inc. 83,825
2,200 (a) Material Sciences Corp. 22,550
700 (a) Maxxam, Inc. 42,919
900 (a) McWhorter Technologies, Inc. 23,400
2,400 Medusa Corp. 147,600
500 Mine Safety Appliances Co. 36,000
3,300 Minerals Technologies, Inc. 179,644
3,969 Mississippi Chemical Corp. 71,938
2,400 (a) Mycogen Corp. 49,200
500 NCH, Corp. 31,688
3,400 NL Industries, Inc. 76,713
3,100 National Steel Corp., Class B 57,931
3,250 OM Group, Inc. 144,016
3,200 Oregon Steel Mills 76,000
5,996 (a) Paxar Corp. 88,816
4,100 (a) Polymer Group, Inc. 50,225
2,000 Pope & Talbot, Inc. 31,125
600 Puerto Rican Cement Co., Inc. 27,750
2,100 Quanex Corp. 61,556
1,400 Republic Group, Inc. 26,600
5,050 Rock-Tenn Co. 80,479
1,100 (a) Rogers Corp. 47,713
1,000 Rouge Industries, Inc., Class A 14,750
5,200 Schulman (A.), Inc. 116,350
2,100 (a) Shorewood Packaging Corp. 54,469
2,700 (a) Silgan Holdings, Inc. 94,500
3,500 Southdown, Inc. 247,625
1,900 Spartech Corp. 40,256
1,800 Springs Industries, Inc., Class A 99,113
5,300 (a) Steel Dynamics, Inc. 121,238
1,200 Stepen Chemical Co. 37,725
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Basic Industry--continued
2,700 (a) Stillwater Mining Co. $ 71,381
1,300 (a) Synthetic Industries, Inc. 29,738
1,200 Tejon Ranch Co. 34,800
5,900 Terra Industries, Inc. 63,425
3,100 Texas Industries, Inc. 199,756
2,400 (a) Titanium Metals Corp. 63,900
600 (a) Tremont Corp. 36,150
1,600 (a) U.S. Can Corp. 28,100
1,800 Universal Forest Products, Inc. 32,175
4,000 Wellman, Inc. 90,500
1,500 (a) Zoltek Cos., Inc. 51,938
------------
Total 8,752,391
------------
Consumer Durables--4.8%
6,000 (a) Acclaim Entertainment, Inc. 45,750
1,900 (a) Action Performance Cos., Inc. 65,788
2,300 (a) Activision, Inc. 25,013
2,500 (a) Aftermarket Technology Co. 48,750
1,637 (a) American Homestar Corp. 33,968
4,000 Apogee Enterprises, Inc. 58,000
3,050 Arctic Cat, Inc. 30,500
3,100 Arvin Industries, Inc. 126,906
1,000 (a) Avatar Holdings, Inc. 26,750
1,500 Barnes Group, Inc. 46,969
1,900 Bassett Furniture Industries, Inc. 59,375
2,000 Breed Technologies, Inc. 40,375
3,000 (a) Broderbund Software, Inc. 53,625
1,200 Bush Industries, Inc., Class A 32,400
3,500 CLARCOR, Inc. 78,531
3,800 Carlisle Cos., Inc. 192,850
2,200 (a) Castle & Cooke, Inc. 37,950
6,772 (a) Champion Enterprises, Inc. 168,454
2,200 Coachmen Industries, Inc. 54,725
1,300 (a) Coleman Co., Inc. 26,650
1,400 Cross (A.T.) Co., Class A 18,550
3,650 (a) Culligan Water Technologies 211,928
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Consumer Durables--continued
3,154 D. R. Horton, Inc. $ 58,546
2,800 (a) Department 56, Inc. 100,625
3,900 Ethan Allen Interiors, Inc. 198,656
1,600 Excel Industries, Inc. 33,400
2,400 Exide Corp. 46,350
6,600 (a) Fairfield Communities, Inc. 154,275
5,000 Fedders Corp. 26,875
5,900 Federal-Mogul Corp. 381,656
4,200 Fleetwood Enterprises, Inc. 193,988
1,150 (a) Fossil, Inc. 26,594
7,600 (a) Furniture Brands International, Inc. 223,250
3,800 (a) GT Interactive Software 40,138
5,200 (a) Gentex Corp. 175,500
2,720 Harman International Industries, Inc. 116,960
4,400 (a) Hayes Lemmerz International, Inc. 169,125
1,800 Huffy Corp. 29,475
5,600 Jostens, Inc. 132,650
2,117 K2, Inc. 48,029
5,700 Kaufman & Broad Homes Corp. 165,656
2,300 La-Z Boy Chair Co. 120,319
6,290 Lennar Corp. 172,576
2,600 (a) Lewis Galoob Toys, Inc. 28,113
2,600 Libbey, Inc. 98,150
2,700 (a) Lo-Jack Corp. 36,788
3,800 Mascotech, Inc. 88,588
900 Matthews International Corp., Class A 41,400
4,200 (a) MicroProse, Inc. 8,269
1,300 Mikasa, Inc. 17,306
4,750 (a) Mohawk Industries, Inc. 146,656
2,042 Myers Industries, Inc. 50,787
1,300 (a) NVR, Inc. 45,013
800 National Presto Industries, Inc. 31,800
2,100 (a) O'Sullivan Industries Holdings, Inc. 31,763
2,900 (a) Oakley, Inc. 38,244
6,800 Oakwood Homes Corp. 191,675
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Consumer Durables--continued
2,000 Oneida Ltd. $ 59,875
2,150 (a) Palm Harbor Homes, Inc. 95,406
2,800 (a) Panavision, Inc. 73,150
700 Pillowtex Corp. 35,131
3,800 Polaris Industries Partners, L.P., Class A 135,375
2,200 Pulte Corp. 112,613
1,400 (a) RockShox, Inc. 7,875
3,200 (a) Royal Appliance Manufacturing 17,600
1,500 Russ Berrie & Co., Inc. 42,938
2,200 Ryland Group, Inc. 46,063
1,600 SPX Corp. 115,800
2,300 (a) Samsonite Corp. 66,125
2,700 (a) Scotts Co. 98,550
2,400 Simpson Industries, Inc. 33,300
1,200 Skyline Corp. 36,450
1,600 Smith (A.O.) Corp. 72,200
3,600 (a) Sola International, Inc. 153,000
1,200 Standard Motor Products, Inc. 28,425
4,300 Standard Pacific Corp. 74,175
2,425 Standard Products Co. 77,600
2,500 Stanhome, Inc. 83,750
1,000 Starrett (L.S.) Co., Class A 39,938
2,800 Sturm Ruger & Co., Inc. 55,125
3,000 Superior Industries International, Inc. 96,375
3,350 (a) TBC Corp. 29,731
950 Thor Industries, Inc. 24,819
3,500 (a) Toll Brothers, Inc. 97,563
6,800 (a) Topps Co. 20,825
1,900 Toro Co. 71,963
1,500 (a) Toy Biz, Inc., Class A 15,656
1,701 (a) U.S. Home Corp. 70,592
2,000 WD 40 Co. 57,875
1,300 Walbro Corp. 16,331
2,200 Webb (Del) Corp. 57,613
2,600 Windmere Corp. 63,700
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Consumer Durables--continued
2,000 Winnebago Industries, Inc. $ 23,250
2,787 Wynns International, Inc. 62,708
2,200 X-Rite, Inc. 28,463
4,113 (a) Zenith Electronics Corp. 16,195
------------
Total 7,267,125
------------
Consumer Non-Durables--2.6%
2,300 Alberto-Culver Co., Class B 67,563
1,800 (a) American Safety Razor Co. 32,625
2,700 Authentic Fitness Corp. 48,938
962 Block Drug, Inc., Class A 40,524
2,600 Brown Group, Inc. 41,438
4,000 (a) Buckeye Technologies, Inc. 93,000
900 (a) Bush Boake Allen, Inc. 25,425
2,200 (a) Canandaigua Wine Co., Inc., Class A 115,225
2,900 ChemFirst, Inc. 77,213
2,600 Church and Dwight, Inc. 80,113
300 Coca-Cola Bottling Co. 18,338
900 (a) Consolidated Cigar Holdings, Inc. 12,431
2,500 (a) Converse, Inc. 14,688
5,200 Coors Adolph Co., Class B 185,900
666 Del Laboratories, Inc. 20,896
5,750 Dimon, Inc. 84,094
1,900 (a) Donna Karan International, Inc. 27,075
3,300 Dreyers Grand Ice Cream, Inc. 83,325
3,100 Earthgrains Co. 144,925
100 Farmer Brothers Co. 19,913
5,800 First Brands Corp. 155,513
2,467 (a) General Cigar Holdings, Inc. 34,075
1,000 (a) General Cigar Holdings, Inc., Class B 13,813
2,400 (a) Gibson Greetings, Inc. 62,775
1,000 (a) Guess ?, Inc. 5,938
3,600 (a) Gymboree Corp. 66,150
3,500 (a) Hartmarx Corp. 27,563
1,733 Herbalife International, Inc., Class A 46,800
3,800 Herbalife International, Inc., Class B 95,000
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Consumer Non-Durables--continued
254 Imperial Holly Corp. $ 2,365
2,500 International Multifoods Corp. 72,656
2,400 Justin Industries, Inc. 37,500
3,100 Kellwood Co. 99,006
1,100 (a) Kenneth Cole Productions, Inc., Class A 25,781
2,600 Lance, Inc. 55,900
2,000 (a) Martek Biosciences Corp. 30,500
1,900 Michael Foods, Inc. 55,575
600 (a) Mondavi Robert Corp., Class A 23,700
3,400 (a) NBTY, Inc. 68,000
600 (a) National Beverage Corp. 6,150
2,174 Natures Sunshine Products, Inc. 53,263
5,100 (a) Nautica Enterprise, Inc. 126,863
1,700 (a) North Face, Inc. 38,144
1,700 (a) Nu Skin Asia Pacific, Inc., Class A 46,325
1,100 OshKosh B'Gosh, Inc., Class A 42,350
1,000 Oxford Industries, Inc. 35,625
1,500 (a) Paragon Trade Brands, Inc. 8,063
3,500 Phillips Van Heusen Corp. 41,344
600 Pilgrims Pride Corp. 10,200
4,000 (a) Playtex Products, Inc. 61,750
1,900 (a) Quiksilver, Inc. 35,744
4,800 (a) Ralcorp Holdings, Inc. 95,400
1,000 Riviana Foods, Inc. 23,188
900 Sanderson Farms, Inc. 11,363
2,300 Schweitzer-Mauduit International, Inc. 76,475
100 Seaboard Corp. 34,000
4,500 (a) Smithfield Foods, Inc. 136,688
3,300 Smucker (J.M.) Co., Class A 81,056
2,400 St. John Knits, Inc. 107,100
6,900 Stride Rite Corp. 86,681
2,875 (a) Suiza Foods Corp. 170,344
1,800 (a) The Boston Beer Co., Inc., Class A 20,138
2,000 (a) Thermolase Corp. 11,500
800 (a) Timberland Co., Class A 68,500
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Consumer Non-Durables--continued
4,300 (a) Tultex Corp. $ 14,513
2,800 (a) Twinlab Corp. 109,900
1,000 (a) USA Detergents, Inc. 13,813
1,300 Unitog Co. 32,175
3,700 Universal Foods Corp. 187,081
1,466 Worthington Foods, Inc. 22,998
--------------
Total 4,020,993
--------------
Energy Minerals--2.7%
3,500 Arch Cola, Inc. 89,688
1,500 (a) Atwood Oceanics, Inc. 82,031
4,570 (a) Barrett Resources 169,661
91 Bayard Drilling Technologies 1,264
1,300 (a) Belco Oil & Gas Corp. 22,831
4,300 (a) Benton Oil & Gas Co. 52,406
2,500 Berry Petroleum Co., Class A 37,656
3,900 (a) Brown Tom, Inc. 80,438
3,300 Cabot Oil & Gas Corp., Class A 77,344
8,484 Chesapeake Energy Corp. 43,481
2,300 (a) Cliffs Drilling Co. 113,419
3,700 (a) Coho Energy Resources, Inc. 27,981
3,500 (a) Comstock Resources, Inc. 45,063
4,925 Cross Timbers Oil Co. 94,191
3,200 Devon Energy Corp. 127,600
2,000 (a) Forcenergy Gas Exploration, Inc. 46,125
4,100 (a) Forest Oil Corp. 64,063
1,200 Getty Realty Holding Corp. 26,775
7,700 (a) Global Industries Ltd. 174,694
333 Gulfport Energy Corp. 894
2,200 (a) HS Resources, Inc. 35,613
15,700 (a) Harken Energy Corp. 101,069
800 Holly Corp. 25,250
6,000 (a) Input/Output, Inc. 149,250
3,600 KCS Energy, Inc. 55,800
2,700 (a) Key Energy Group, Inc. 50,456
3,100 Lomak Petroleum, Inc. 42,819
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Energy Minerals--continued
2,784 (a) Louis Dreyfus Natural Gas Corp. $ 55,854
7,500 (a) Marine Drilling Cos., Inc. 182,344
4,892 (a) Meridian Resource Corp. 44,334
4,700 (a) Newfield Exploration Co. 113,975
2,900 (a) Nuevo Energy Co. 103,313
3,300 (a) Oceaneering International, Inc. 75,694
3,200 (a) Offshore Logistics, Inc. 75,600
9,900 (a) Parker Drilling Co. 101,475
3,200 (a) Patterson Energy Inc. 44,800
1 Pioneer Natural Resources, Inc. 27
2,400 (a) Plains Resources, Inc. 50,400
2,800 (a) Pool Energy Services Co. 73,850
5,100 Quaker State Corp. 92,119
1,700 RPC Energy Services, Inc. 22,631
900 (a) Rutherford-Moran Oil Corp. 22,500
2,000 (a) SEACOR SMIT, Inc. 117,250
3,200 (a) Seitel, Inc. 54,000
4,300 Snyder Oil Corp. 91,644
1,600 St. Mary Land & Exploration Co. 51,200
1,600 (a) Stone Energy Corp. 61,300
2,430 (a) Swift Energy Co. 48,448
3,900 (a) Tesoro Petroleum Corp. 77,513
1,200 (a) The Houston Exploration Co. 28,050
4,700 (a) Titan Exploration, Inc. 39,069
3,200 (a) Transmontaigne Oil Co. 46,800
3,000 (a) Trico Marine Services, Inc. 67,875
6,400 (a) Tuboscope Vetco International Corp. 151,600
3,700 (a) Unit Corp. 36,075
4,900 (a) Varco International, Inc. 150,675
4,700 Vintage Petroleum, Inc. 91,650
2,400 Zeigler Coal Holding Co. 43,350
--------------
Total 4,053,277
--------------
Finance--21.6%
1,441 1st Source Corp. 56,653
1,800 (a) AMERCO 57,600
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Finance--continued
3,350 Aames Financial Corp. $ 45,853
2,200 Aaron Rents, Inc. 44,688
1,800 (a) Acceptance Insurance Cos., Inc. 41,063
1,640 Albank Financial Corp. 86,100
400 (a) Alexander's, Inc. 36,200
1,100 Alexandria Real Estate Equities, Inc. 36,231
2,700 Alfa Corp. 48,263
3,300 Allied Group, Inc. 98,588
1,600 Ambassador Apartments, Inc. 32,800
3,425 Amcore Financial, Inc. 88,622
2,412 AmerUs Life Holdings, Inc., Class A 77,184
300 (a) AmeriTrade Holding Corp., Class A 8,475
1,247 American Annuity Group, Inc. 29,382
3,200 American General Hospitality Corp. 80,200
3,100 American Health Properties, Inc. 84,088
2,400 American Heritage Life Investments 55,050
4,400 (a) Americredit Corp. 146,025
3,300 (a) Amerin Corp. 104,981
2,000 Amli Residential Properties Trust 45,875
6,000 (a) Amresco, Inc. 217,500
1,300 Anchor Bancorp Wisconsin, Inc. 56,388
5,922 Apartment Investment & Management Co., Class A 221,335
5,700 (a) Arcadia Financial Ltd. 49,163
8,900 Arden Realty Group, Inc. 249,756
1,500 Area Bancshares Corp. 55,500
2,800 Argonaut Group, Inc. 95,900
7,347 Associated Banc Corp. 385,718
1,800 Associated Estates Realty Corp. 34,425
3,434 Astoria Financial Corp. 201,298
5,800 Avalon Properties, Inc. 163,125
700 (a) BA Merchant Services, Inc., Class A 10,500
702 (a) BOK Financial Corp. 35,714
6,094 BRE Properties, Inc., Class A 159,968
1,150 BSB Bancorp, Inc. 36,513
880 BT Financial Corp. 51,040
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Finance--continued
1,700 Baldwin & Lyons, Inc., Class B $ 39,950
500 BancFirst Corp. 22,500
2,860 Bancorpsouth, Inc. 127,449
1,325 Bank Granite Corp. 50,019
2,800 (a) Bank Plus Corp. 39,375
4,100 Bank United Corp., Class A 212,175
2,700 Bankatlantic Bancorp, Inc. 38,813
2,200 Banknorth Group, Inc. 79,750
3,600 Bay Apartment Communities, Inc. 133,200
1,700 Bay View Capital Corp. 55,463
3,500 Bedford Property Investors, Inc. 68,031
3,350 Berkley, W. R. Corp. 156,194
5,200 Berkshire Realty Co., Inc. 63,375
1,500 Blanch, E. W. Holdings, Inc. 52,500
2,000 Boykin Lodging Co. 47,000
3,446 Bradley Real Estate, Inc. 71,720
1,702 Brenton Bank, Inc. 37,019
2,700 (a) Budget Group, Inc., Class A 90,450
3,400 Burnham Pacific Properties, Inc. 48,025
2,200 (a) CB Commercial Real Estate Services Group, Inc. 80,713
3,200 CBL & Associates Properties, Inc. 78,600
900 CBT Corp., KY 31,500
3,000 (a) CCC Information Service Group, Inc. 72,000
3,300 CMAC Investment Corp. 213,056
5,100 (a) CNA Surety Corp. 85,425
2,585 CNB Bancshares, Inc. 126,665
1,900 (a) CORT Business Services Corp. 75,881
1,400 CPB, Inc. 28,000
1,400 CVB Financial Corp. 34,300
6,434 Camden Property Trust 188,582
200 Capital City Bank Group, Inc. 9,600
300 (a) Capital Factors Holdings, Inc. 5,925
1,600 Capital Re Corp. 118,100
1,300 Capitol Transamerica Corp. 26,000
8,650 Capstead Mortgage Corp. 164,891
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Finance--continued
2,500 Capstone Capital Trust, Inc. $ 59,688
2,500 CenterPoint Properties Corp. 81,563
3,200 (a) Century Business Services, Inc. 61,600
1,200 Chartwell Re Corp. 36,975
4,400 Chateau Communities, Inc. 130,075
2,100 Chelsea GCA Realty, Inc. 80,194
1,567 Chemical Financial Corp. 64,639
2,106 Chittenden Corp. 78,975
1,875 Citfed Bancorp, Inc. 99,375
900 Citizens Bancshares, Inc. 65,138
3,000 Citizens Banking Corp. 106,500
1,000 Citizens Corp. 32,000
2,900 (a) Cityscape Financial Corp. 1,631
5,200 Colonial BancGroup, Inc. 186,550
3,100 Colonial Properties Trust 92,031
2,426 Commerce Bancorp, Inc. 139,192
2,900 Commerce Group, Inc. 109,475
4,900 Commercial Federal Corp. 177,625
4,200 Commercial Net Lease Realty 68,513
2,369 Commonwealth Bancorp 55,968
1,100 Community Bank System, Inc. 39,119
3,000 Community First Bankshares, Inc. 151,125
1,295 Community Trust Bancorp, Inc. 41,764
14,000 Cornerstone Properties, Inc. 252,000
5,200 Cornerstone Realty Income Trust, Inc. 61,425
1,200 Corus Bankshares, Inc. 53,850
3,600 Cousins Properties, Inc. 108,900
5,150 Crawford & Co., Class B 93,344
3,200 (a) Credit Acceptance Corp. 34,400
6,800 Criimi Mae, Inc. 101,575
3,900 Crown American Realty Trust 39,488
3,240 Cullen Frost Bankers, Inc. 189,540
1,800 Dain Rauscher Corp. 108,338
2,028 (a) Delphi Financial Group, Inc., Class A 115,573
700 (a) Delta Financial Corp. 12,338
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Finance--continued
3,600 Developers Diversified Realty $ 142,875
1,800 Dime Community Bancorp, Inc. 50,850
2,200 Doral Financial Corp. 77,275
2,842 Downey Financial Corp. 98,594
6,600 Dynex Capital, Inc. 75,075
5,000 (a) E*Trade Group, Inc. 124,688
2,400 EastGroup Properties, Inc. 47,850
2,200 Eaton Vance Corp. 107,800
1,050 (a) Electro Rent Corp. 50,138
1,900 Enhance Financial Services Group, Inc. 130,388
5,200 Equity Inns, Inc. 76,700
2,000 Essex Property Trust, Inc. 66,000
900 Everen Capital Corp. 47,869
3,400 Excel Realty Trust, Inc. 90,950
1,600 Executive Risk, Inc. 106,700
1,443 F & M Bancorporation, Inc. 60,967
2,955 F & M National Corp. 95,299
4,900 FBL Financial Group, Inc., Class A 140,875
3,900 (a) FIRSTPLUS Financial Group, Inc. 189,150
2,264 FNB Corp. 84,347
5,800 Federal Realty Investment Trust 141,013
4,700 FelCor Suite Hotels, Inc. 164,500
2,048 Fidelity National Financial, Inc. 75,520
1,450 (a) Financial Federal Corp. 33,531
4,343 Financial Security Assurance Holdings Ltd. 260,037
2,250 First American Financial Corp. 159,891
1,400 First Citizens Bancshares, Inc., Class A 158,550
2,443 First Colorado Bancorp, Inc. 71,458
1,600 First Commerce Bancshares, Inc., Class B 45,600
3,200 First Commmonwealth Financial Corp. 89,200
1,200 First Federal Capital Corp. 42,600
2,396 First Financial Bancorp 135,357
1,206 First Financial Bankshares, Inc. 51,180
858 First Financial Corp. 44,595
2,000 First Financial Holdings, Inc. 48,000
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Finance--continued
1,307 First Indiana Corp. $ 32,838
5,300 First Industrial Realty Trust 172,250
2,550 First Midwest Bancorp, Inc. 132,281
1,400 (a) First Republic Bank 48,125
1,500 First Savings Bank of Washington Bancorp, Inc. 39,844
4,587 First Source Bancorp, Inc. 48,740
4,600 First Union Real Estate Equity 47,438
1,200 First United Bancshares 60,000
1,603 First Western Bancorp, Inc. 47,689
1,800 FirstBank Puerto Rico 102,150
1,400 (a) FirstFed Financial Corp. 64,050
700 FirstFederal Financial Services Corp. 28,919
2,300 Firstbank Illinois Co. 105,225
700 Flagstar Bancorp, Inc. 19,644
0 Fleet Financial Group, Inc. 4
3,100 Foremost Corp. 75,175
900 Forest City Enterprises, Inc., Class A 51,975
6,400 Franchise Finance Corp. of America 171,600
3,665 Fremont General Corp. 204,324
4,230 Frontier Insurance Group, Inc. 112,095
5,886 Fulton Financial Corp. 214,103
800 Fund American Enterprises, Inc. 111,700
1,000 GBC Bancorp 63,750
3,200 Gables Residential Trust 87,200
2,702 Gainsco, Inc. 23,305
2,400 Gallagher (Arthur J.) & Co. 105,300
5,200 General Growth Properties, Inc. 186,550
4,600 Glenborough Realty Trust, Inc. 123,338
3,400 Glimcher Realty Trust 72,250
1,500 Grand Premier Financial, Inc. 27,000
2,000 Great Lakes REIT, Inc. 36,625
2,900 (a) Grubb & Ellis Co. 39,694
1,300 Guarantee Mutual Life Co. 35,263
5,400 HCC Insurance Holdings, Inc. 117,450
2,500 HFNC Financial Corp. 33,750
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Finance--continued
2,800 HSB Group, Inc. $ 184,800
2,500 (a) Hambrecht & Qusit Group 83,594
1,100 (a) Hamilton Bancorp, Inc. 36,850
1,055 Hancock Holding Co. 65,806
4,507 Harbor Florida Bancshares, Inc. 57,464
1,900 Harleysville Group, Inc. 51,300
993 Harleysville National Corp. 41,830
1,200 Harris Financial, Inc. 30,825
3,800 Hartford Life, Inc., Class A 187,863
4,400 Health Care Property Investors, Inc. 148,500
3,500 Health Care REIT, Inc. 97,344
2,500 Healthcare Realty Trust, Inc. 70,313
1,500 Heritage Financial Services, Inc. 59,250
1,900 (a) Highlands Insurance Group, Inc. 51,538
7,100 Highwoods Properties, Inc. 241,400
1,800 Hilb Rogal & Hamilton Co. 32,175
1,300 Home Properties of New York, Inc. 34,856
2,572 Horizon Group, Inc. 31,346
3,300 Hospitality Properties Trust 106,013
3,307 Hubco, Inc. 121,532
1 Huntington Bancshares, Inc. 32
1,600 IBS Financial Corp. 30,600
3,700 (a) IMC Mortgage Co. 58,969
1,750 IMPAC Mortgage Holdings, Inc. 28,875
7,500 INMC Mortgage Holdings, Inc. 181,875
4,400 IRT Property Co. 51,150
4,778 (a) Imperial Bancorp 140,055
3,454 (a) Imperial Credit Industries, Inc. 87,214
3,200 (a) Insignia Financial Group, Inc., Class A 85,200
1,200 InterWest Bancorp, Inc. 53,325
1,950 Interpool, Inc. 30,834
500 (a) Investment Technology Group, Inc. 14,500
900 Investors Financial Services Corp. 48,488
2,600 Irvine Apartment Communities, Inc. 79,463
900 Irwin Financial Corp. 49,669
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Finance--continued
3,000 JDN Realty Corp. $ 95,438
2,200 JP Realty, Inc. 53,213
1,200 JSB Financial, Inc. 66,375
2,700 Jefferies Group, Inc. 133,481
3,600 John Alden Financial Corp. 78,750
700 John Nuveen & Co., Inc., Class A 25,375
500 Kansas City Life Insurance Co. 42,500
7,523 Keystone Financial, Inc. 293,397
3,200 Kilroy Realty Corp. 84,800
1,500 Klamath First Bancorp 32,063
3,200 Koger Equity, Inc. 68,600
3,800 LNR Property Corp. 101,650
3,800 LTC Properties, Inc. 74,100
3,466 Legg Mason, Inc. 204,494
1,748 Liberty Corp. 89,585
8,300 Liberty Property Trust 212,169
1,600 Life Re Corp. 115,200
3,000 Life USA Holdings, Inc. 45,375
3,200 (a) Long Beach Financial Corp. 41,800
3,500 Long Island Bancorp, Inc. 231,000
2,213 MAF Bancorp, Inc. 89,212
2,000 MGI Properties, Inc. 48,500
2,600 MMI Companies, Inc. 61,100
3,600 Macerich Co. (The) 101,025
7,300 Mack-Cali Realty Corp. 274,206
4,794 Magna Group, Inc. 283,445
1,700 Mainstreet Bankgroup, Inc. 54,400
3,300 Manufactured Home Communities, Inc. 83,325
600 (a) Markel Corp. 95,100
2,700 McDonald & Co. Investors, Inc. 77,625
1,500 McGrath Rentcorp. 29,625
800 Meadowbrook Insurance Group, Inc. 26,150
3,178 (a) Medical Assurance, Inc. 94,148
1 Mercantile Bancorporation, Inc. 76
1,100 Merchants New York Bancorp, Inc. 43,725
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Finance--continued
21,600 Mercury Finance Co. $ 13,500
4,400 Meridian Industrial Trust, Inc. 101,750
6,100 Merry Land and Investment Co. 128,481
3,419 Mid Am, Inc. 92,740
1,133 Mid American Bancorp 36,681
2,300 Mid-American Apartment Communities, Inc. 61,238
3,300 Mills Corp. 82,294
900 Mississippi Valley Bancshares, Inc. 36,534
3,562 Morgan Keegan, Inc. 81,703
2,100 NAC Re Corp. 105,000
1,270 NBT Bancorp, Inc. 42,545
1,960 (a) National Auto Credit, Inc. 2,634
2,400 National Bancorp Alaska, Inc. 88,200
1,547 National City Bancshares, Inc. 63,040
1 National City Corp. 52
1,800 National Golf Properties, Inc. 55,913
3,400 National Health Investors, Inc. 114,325
1,324 National Penn Bancshares, Inc. 45,513
300 (a) National Western Life Insurance Co., Class A 31,125
600 Nationwide Financial Services, Inc., Class A 26,025
6,300 Nationwide Health Properties, Inc. 148,050
600 Nymagic, Inc. 18,375
1,100 Ocean Financial Corp. 43,450
2,800 Ocwen Asset Investment Corp. 51,450
3,800 (a) Ocwen Financial Corp. 98,325
4,063 Old National Bancorp 194,008
1,200 Omega Financial Corp. 45,000
2,839 Omega Healthcare Investors 98,655
188 Omega Healthcare Investors, Rights 188
806 (a) Omega Worldwide, Inc. 6,801
3,943 One Valley Bancorp West Virginia, Inc. 153,284
1,500 Oriental Financial Group 62,438
4,012 Orion Capital Corp. 223,669
2,500 (a) PFF Bancorp, Inc. 50,625
1,763 PX Escrow Corp. 53,110
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Finance--continued
2,300 Pacific Gulf Properties, Inc. $ 50,600
1,000 Park National Corp. 96,125
800 (a) Penn Treaty American Corp. 24,400
4,000 Penncorp Financial Group, Inc. 104,000
1,700 Pennsylvania Real Estate Investment Trust 40,375
1,430 People First Corp. 54,251
6,576 Peoples Heritage Financial Group 317,273
900 (a) Philadelphia Consolidated Holding Corp. 20,813
3,200 Pioneer Group, Inc. 100,800
1,700 Piper Jaffray Cos., Inc. 63,113
1,450 Poe & Brown, Inc. 57,094
2,300 (a) Policy Management System Corp. 185,438
5,707 Post Properties, Inc. 232,917
4,100 Prentiss Properties Trust 104,038
3,600 Presidential Life Corp. 73,350
1,800 Price Enterprises, Inc. 33,075
1,700 Price REIT, Inc. 77,988
4,000 Prime Retail, Inc. 56,750
3,366 Provident Bankshares Corp. 109,379
1,848 Queens County Bancorp, Inc. 84,546
3,000 RFS Hotel Investors, Inc. 64,125
900 RLI Corp. 48,825
5,288 Raymond James Financial, Inc. 172,174
3,900 Realty Income Corp. 101,888
4,900 Reckson Associates Realty Corp. 120,050
2,000 Redwood Trust, Inc. 49,250
3,500 Regency Realty Corp. 90,125
3,700 Reinsurance Group of America 183,381
1,400 Reliance Bancorp, Inc. 55,300
1,700 (a) Rental Service Corp. 49,406
2,376 Republic Bancorp, Inc. 46,332
1,896 Resource Bancshares Mortgage Group, Inc. 33,654
2,900 Riggs National Corp. 83,556
2,500 (a) Risk Capital Holdings, Inc. 62,656
7,625 Rollins Truck Leasing Corp. 101,031
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Finance--continued
6,400 Roslyn Bancorp, Inc. $ 190,800
1,750 S & T Bancorp, Inc. 91,000
1,900 SCPIE Holdings, Inc. 64,481
2,000 Santa Barbara Bancorp 56,000
1,400 Saul Centers, Inc. 25,550
2,900 Security Capital Atlantic, Inc. 63,981
0 Security Capital Group, Inc., Warrants 1
4,300 Selective Insurance Group, Inc. 118,250
2,300 (a) Signature Resorts, Inc. 41,113
1,500 (a) Silicon Valley Bancshares 97,875
4,200 Smith (Charles E.) Residential Realty, Inc. 130,200
1,100 (a) Southern Pacific Funding 19,388
1,700 (a) Southwest Bancorp. of Texas, Inc. 68,000
22,887 Sovereign Bancorp, Inc. 431,989
1,100 Sovran Self Storage, Inc. 30,456
700 St. Francis Capital Corp. 30,888
4,945 St. Paul Bancorp, Inc. 123,625
0 Star Banc Corp. 15
950 State Auto Financial Corp. 34,556
3,000 Sterling Bancshares, Inc. 52,500
2,100 Storage Trust Realty 50,925
600 Student Loan Corp. 29,925
400 Sumitomo Bank California 14,850
3,100 Summit Properties, Inc. 63,356
2,400 Sun Communities, Inc. 84,000
5,500 Sunstone Hotel Investors, Inc. 85,250
3,237 Susquehanna Bankshares, Inc. 115,723
2,200 T R Financial Corp. 79,063
1,100 Tanger Factory Outlet Centers, Inc. 33,206
5,100 Taubman Centers, Inc. 69,169
2,100 Texas Regional Bancshares, Inc., Class A 69,300
2,400 The Trust Company of New Jersey 65,400
2,900 Thornburg Mortgage Asset Co. 44,769
2,300 Town & Country Trust 39,819
1,700 Trans Financial, Inc. 94,350
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Finance--continued
1,700 Trenwick Group, Inc. $ 65,450
1,900 (a) Triad Guaranty, Inc. 67,450
1,900 Triangle Bancorp, Inc. 55,575
3,000 Trinet Corporate Realty Trust, Inc. 107,438
3,445 Trustco Bank Corp. 99,044
9,500 Trustmark Corp. 219,094
1,500 (a) U.S. Rentals, Inc. 44,625
2,800 U.S. Trust Corp. 198,800
2,452 UMB Financial Corp. 144,668
3,700 UST Corp. 104,294
4,400 United Bankshares, Inc. 114,950
3,580 United Companies Financial Corp. 73,166
1,050 United Fire & Casualty Co. 43,313
1,300 Universal Health Realty Trust, Inc. 26,081
2,500 Urban Shopping Centers, Inc. 81,563
700 Usbancorp, Inc. 57,400
2,000 Vermont Financial Services Corp. 58,500
1,850 Vesta Insurance Group, Inc. 104,756
700 (a) WFS Financial, Inc. 7,656
1,500 (a) WSFS Financial Corp. 32,063
2,200 Walden Residential Properties, Inc. 53,625
5,200 Washington Real Estate Investment Trust 89,375
4,000 Webster Financial Corp. Waterbury 135,500
2,600 Weeks Corp. 81,900
2,350 Wesbanco, Inc. 62,863
1,600 West Coast Bancorp 41,800
6,290 WestAmerica Bancorporation 207,570
1,465 Westcorp, Inc. 22,250
2,500 Western Investment Real Estate Trust 35,625
6,100 Westernbank Puerto Rico 115,138
600 (a) White River Corp. 52,500
3,025 Whitney Holding Corp. 184,147
2,400 Winston Hotels, Inc. 29,850
2,200 Xtra Corp. 133,375
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Finance--continued
1,400 Zenith National Insurance Corp. $ 39,375
------------
Total 32,788,788
------------
Health Care--8.7%
2,766 ADAC Laboratories 60,161
2,100 (a) ATL Ultrasound, Inc. 101,588
4,400 (a) AXYS Pharmaceuticals, Inc. 34,100
2,750 (a) Access Health, Inc. 92,813
3,100 (a) Acuson Corp. 58,125
4,900 (a) Advanced Tissue Sciences, Inc., Class A 41,497
3,300 (a) Affymetrix, Inc. 103,950
4,500 (a) Agouron Pharmaceuticals, Inc. 153,000
1,700 (a) Algos Pharmaceuticals Corp. 55,888
3,000 (a) Alkermes, Inc. 71,625
4,600 (a) Alliance Pharmaceutical Corp. 36,800
2,300 Alpharma, Inc., Class A 52,325
2,400 (a) Alternative Living Services, Inc. 84,000
3,500 (a) AmeriSource Health Corp., Class A 190,750
1,550 (a) American HomePatient, Inc. 28,578
4,500 (a) American Oncology Resources, Inc. 67,500
4,200 (a) Amylin Pharmaceuticals, Inc. 22,050
1,300 (a) Andrx Corp. 48,750
1,000 (a) Aphton Corp. 14,125
1,300 (a) Applied Analytical Industries, Inc. 17,388
7,500 (a) Apria Healthcare Group, Inc. 71,719
1,500 (a) ArQule, Inc. 25,969
2,000 Arrow International, Inc. 66,000
9,100 (a) Arterial Vascular Engineering, Inc. 321,913
1,300 (a) Atria Communities, Inc. 25,025
4,200 Ballard Medical Products 105,525
1,175 (a) Barr Laboratories, Inc. 47,661
1,700 Bindley Western Industries, Inc. 66,088
1,250 (a) Bio Rad Laboratories, Inc., Class A 37,031
6,900 (a) Bio-Technology General Corp. 61,453
1,600 (a) Biomatrix, Inc. 50,800
2,700 (a) CNS, Inc. 13,500
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Health Care--continued
2,200 (a) CONMED Corp. $ 50,325
1,000 (a) Cadus Pharmaceutical Corp. 7,875
1,700 (a) Cardiothoracic Systems, Inc. 10,094
1,200 (a) CareMatrix Corp. 32,550
3,300 Carter Wallace, Inc. 59,606
1 (a) Cell Genesys, Inc. 4
3,900 (a) Cephalon, Inc. 46,556
3,800 (a) Cerner Corp. 113,288
1,900 (a) ClinTrials, Inc. 10,213
900 (a) Closure Medical Corp. 20,588
4,200 (a) Columbia Laboratories, Inc. 37,800
1,500 (a) Compdent Corp. 19,688
4,828 (a) Concentra Managed Care, Inc. 150,272
1,800 (a) Cooper Companies, Inc. 69,188
3,500 (a) Cor Therapeutics, Inc. 66,063
248 (a) Coram Healthcare Corp., Warrants 0
8,400 (a) Covance, Inc. 180,075
4,900 (a) Coventry Health Care, Inc. 82,994
4,900 (a) Creative BioMolecules, Inc. 36,444
1,800 (a) Curative Technologies, Inc. 55,800
2,900 (a) Cygnus, Inc. 31,900
6,609 (a) Cytogen Corp. 9,294
2,300 (a) Cytyc Corp. 33,350
2,000 (a) Datascope Corp. 56,250
1,600 Diagnostic Products Corp. 45,300
1,600 (a) Emisphere Technologies, Inc. 26,700
3,127 (a) Enzo Biochem, Inc. 45,727
4,000 (a) FPA Medical Management, Inc. 50,000
2,000 (a) Fuisz Technologies Ltd. 26,000
2,400 (a) Geltex Pharmaceuticals, Inc. 56,100
10,900 (a) Gensia, Inc. 49,731
4,300 (a) Gilead Sciences, Inc. 163,400
3,100 (a) Graham Field Health Products, Inc. 20,538
2,400 (a) Guilford Pharmaceuticals, Inc. 47,700
1,700 (a) HCIA, Inc. 19,019
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Health Care--continued
3,300 (a) Haemonetics Corp. $ 58,575
1,706 Healthplan Services Corporation 41,584
2,200 (a) Heartport, Inc. 23,375
1,500 (a) Henry Schein, Inc. 58,500
1,700 (a) Hologic, Inc. 39,950
3,200 (a) Human Genome Sciences, Inc. 116,400
1,900 (a) I-Stat Corp. 24,225
8,842 ICN Pharmaceuticals, Inc. 435,469
4,900 (a) ICOS Corp. 72,275
2,900 (a) IDEC Pharmaceuticals Corp. 104,400
5,100 (a) IDEXX Laboratories, Inc. 112,838
900 (a) IDX Systems Corp. 39,206
11,400 (a) Imatron, Inc. 30,994
3,400 (a) Immunomedics, Inc. 17,425
1,400 (a) Imnet Systems Inc. 22,575
3,000 (a) Incyte Pharmaceuticals, Inc. 135,000
2,300 (a) Inhale Therapeutic Systems 64,400
5,896 Integrated Health Services, Inc. 227,365
4,200 (a) Interneuron Pharmaceuticals 27,825
4,100 Invacare Corp. 114,288
3,900 (a) Isis Pharmaceuticals, Inc. 55,575
3,300 Jones Medical Industries, Inc. 97,350
1,600 (a) KV Pharmaceutical Co., Class B 34,800
700 (a) Kos Pharmaceuticals, Inc. 7,875
800 Lab Holdings, Inc. 18,600
300 Labone, Inc. 5,250
6,900 (a) Laboratory Corporation of America Holdings 17,250
1,550 Life Technologies, Inc. 54,250
4,192 (a) Ligand Pharmaceuticals, Inc., Class B 60,784
5,500 (a) Liposome Co., Inc. 32,656
800 (a) Lunar Corp. 15,000
4,400 (a) Magellan Health Services, Inc. 122,100
3,400 (a) Mariner Health Group, Inc. 61,625
2,100 (a) Marquette Medical Systems, Class A 56,700
2,600 (a) Maxicare Health Plans, Inc. 27,300
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Health Care--continued
10,700 (a) Medaphis Corp. $ 98,306
1,400 (a) Medical Manager Corp. 41,388
1,700 (a) Medical Resources, Inc. 8,181
2,700 (a) Medicis Pharmaceutical Corp., Class A 115,425
3,500 (a) Medimmune, Inc. 184,625
1,800 (a) Mediq, Inc. 25,200
1,650 (a) Medquist, Inc. 80,438
3,600 Mentor Corp. 97,875
7,100 (a) Mid Atlantic Medical Services, Inc. 90,969
4,000 (a) Millennium Pharmaceuticals, Inc. 76,000
1,000 (a) MiniMed, Inc. 50,000
850 (a) Miravant Medical Technologies 20,506
1,400 (a) Myriad Genetics, Inc. 29,050
4,800 (a) NABI, Inc. 18,900
2,800 (a) NCS HealthCare, Inc., Class A 82,250
2,350 (a) National Surgery Centers, Inc. 66,681
2,100 (a) NeoPath, Inc. 29,269
3,300 (a) Neoprobe Corp. 16,706
2,500 (a) Neurex Corp. 74,844
1,800 (a) Neurogen Corp. 33,300
4,500 (a) Neuromedical Systems, Inc. 9,703
4,000 (a) Nexstar Pharmaceuticals, Inc. 40,000
8,900 (a) NovaCare, Inc. 124,044
1,900 (a) OEC Medical Systems, Inc. 43,106
900 (a) OXiGENE, Inc. 9,225
4,133 (a) Organogenesis, Inc. 128,624
4,900 (a) Orthodontic Centers of America, Inc. 104,738
3,675 Owens & Minor, Inc. 65,461
900 (a) PHP Healthcare Corp. 15,806
10,000 (a) PSS World Medical, Inc. 224,375
3,700 (a) Paracelsus Healthcare Corp. 16,881
10,980 (a) Paragon Health Network, Inc. 205,190
3,000 (a) Parexel International Corp. 100,500
2,300 (a) Pathogenesis Corp. 91,138
3,000 (a) Patterson Dental Co. 88,313
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Health Care--continued
1,500 (a) Pediatrix Medical Group $ 63,281
1,000 (a) Perclose, Inc. 30,375
9,700 (a) Perrigo Co. 125,494
9,100 (a) PharMerica, Inc. 126,263
2,451 (a) Pharmaceutical Product Development, Inc. 61,428
2,700 (a) PhyMatrix Corp. 27,169
4,900 (a) Physician Computer Network, Inc. 7,656
3,500 (a) Physician Reliance Network, Inc. 42,438
4,400 (a) Physicians Resource Group, Inc. 20,350
2,500 (a) Physio-Control International Corp. 57,500
1,800 (a) Possis Corp. 26,100
2,300 (a) Prime Medical Services, Inc. 24,438
2,200 (a) Protein Design Laboratories, Inc. 70,400
2,100 Psychemedics Corp. 10,763
4,400 (a) Quest Diagnostic Inc. 84,700
3,100 (a) Regeneron Pharmaceuticals, Inc. 30,419
3,350 (a) Renal Care Group, Inc. 128,138
1,100 (a) Res-Care, Inc. 43,038
4,643 (a) Respironics, Inc. 77,480
1 (a) Response Technologies, Inc. 5
4,800 (a) Rexall Sundown, Inc. 153,300
500 (a) RightCHOICE Managed Care, Inc., Class A 5,813
3,200 (a) Roberts Pharmaceutical Corp. 54,400
1,300 (a) Sabratek Corp. 42,250
4,900 (a) Safeskin Corp. 174,563
2,300 (a) SangStat Medical Corp. 77,769
5,500 (a) Scios Nova, Inc. 64,625
4,000 (a) Sepracor, Inc. 185,000
4,400 (a) Sequus Pharmaceuticals, Inc. 52,250
2,300 (a) Serologicals Corp. 69,000
2,300 (a) Sierra Health Services, Inc. 88,406
2 (a) SonoSight, Inc. 13
800 (a) Sonus Pharmaceuticals, Inc. 15,500
1,400 (a) SpaceLabs Medical, Inc. 25,025
1,700 (a) Staar Surgical Co. 25,288
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Health Care--continued
4,600 (a) Summit Technology, Inc. $ 26,163
6,224 (a) Sun Healthcare Group, Inc. 104,252
500 (a) Sunquest Information Systems, Inc. 5,063
1,400 (a) Sunrise Assisted Living, Inc. 62,738
2,500 (a) Sunrise Medical, Inc. 37,031
700 (a) Superior Consultant Holdings Corp. 26,994
2,600 (a) Synetic, Inc. 160,063
2,600 (a) Techne Corp. 45,825
3,400 (a) Theragenics Corp. 96,900
2,300 (a) Theratech, Inc. 18,688
2,600 (a) Thermedics, Inc. 41,763
2,500 (a) Thermo Cardiosystems, Inc. 68,281
10,072 (a) Total Renal Care Holdings, Inc. 333,635
2,600 (a) Transitional Systems, Inc. 58,500
2,700 (a) Transkaryotic Therapies, Inc. 84,038
1,000 (a) Trex Medical Corp. 19,000
2,000 (a) Triangle Pharmaceuticals, Inc. 31,000
6,200 (a) Trigon Healthcare, Inc. 188,325
3,500 (a) U.S. Bioscience, Inc. 32,375
5,100 (a) Uniphase Corp. 276,675
1,250 United Wisconsin Services, Inc. 38,828
1,500 (a) VISX, Inc. 66,188
3,700 (a) Vertex Pharmaceuticals, Inc. 115,163
2,900 (a) Veterinary Centers of America 54,194
2,100 (a) Vical, Inc. 31,631
900 Vital Signs, Inc. 16,763
2,106 (a) Vitalink Pharmacy Services, Inc. 45,276
4,800 (a) Vivus, Inc. 51,000
500 (a) Wesley Jessen VisionCare, Inc. 15,438
1,900 West Co., Inc. 58,663
4,400 (a) Zila, Inc. 33,825
------------
Total 13,233,845
------------
Producer Manufacturing--5.8%
1,600 (a) ABT Building Products Corp. 25,500
1,900 (a) ACX Technologies, Inc. 45,363
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Producer Manufacturing--continued
900 (a) AFC Cable Systems, Inc. $ 31,275
1,700 (a) Acme Metals, Inc. 14,663
1,700 (a) Advanced Lighting Technologies, Inc. 47,175
600 (a) Ag-Chem Equipment Co., Inc. 9,600
1,200 Alamo Group, Inc. 21,825
3,500 (a) Allen Telecom, Inc. 56,219
1,500 Allied Products 34,406
1,100 (a) Alltrista Corp. 29,700
2,500 (a) Alpine Group, Inc. 52,031
1,300 Amcast Industrial Corp. 28,031
4,000 (a) American Pad & Paper Co. 28,750
4,800 Ametek, Inc. 146,100
5,200 (a) Anixter International, Inc. 103,675
3,700 Applied Power, Inc., Class A 138,288
1,600 (a) Avondale Industries, Inc. 43,000
3,713 Baldor Electric Co. 97,466
3,500 Belden, Inc. 145,031
3,000 Blount International, Inc., Class A 93,188
1,600 (a) Brown & Sharpe Manufacturing Co., Class A 21,900
900 C&D Technologies, Inc. 49,725
3,750 (a) Cable Design Technologies, Class A 99,844
1,500 Cascade Corp. 25,219
1,200 Chart Industries, Inc. 33,750
1,200 (a) Chase Industries, Inc. 38,625
2,050 (a) Chicago Miniature Lamp, Inc. 78,669
5,200 Cincinnati Milacron, Inc. 161,525
1,000 (a) Citation Corp. 20,875
1,900 Commercial Intertech Corp. 40,969
2,000 Commercial Metals Corp. 66,750
2,200 Commonwealth Industries, Inc. 37,400
2,300 (a) Cuno, Inc. 45,138
1,000 DT Industries, Inc. 33,500
5,100 (a) Dal-Tile International, Inc. 71,719
1,200 (a) Detroit Diesel Corp. 27,600
1,200 (a) Encore Wire Corp. 46,500
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Producer Manufacturing--continued
1,600 (a) Essex International, Inc. $ 57,400
2,100 (a) Fairchild Corp., Class A 42,788
2,700 (a) Figgie International Holdings, Inc., Class A 36,619
5,878 Flowserve Corp. 175,605
600 Franklin Electronics, Inc. 41,438
1,750 (a) Gardner Denver Machy, Inc. 49,328
700 General Binding Corp. 23,100
2,500 General Cable Corp. 113,281
500 (a) Gibraltar Steel Corp. 12,000
1,300 Gleason Corp. 43,063
3,200 (a) Global Industrial Technologies, Inc. 57,400
2,712 Graco, Inc. 93,395
4,500 (a) Griffon Corp. 60,188
800 (a) Halter Marine Group, Inc. 14,500
2,709 (a) Hexcel Corporation 75,683
900 (a) Hirsch Intl. Corp., Class A 8,888
1,550 (a) Holophane Corp. 42,625
4,300 IDEX Corp. 157,219
600 (a) Insilco Corp. 25,988
3,100 Interface, Inc. 131,556
2,700 Intermet Corp. 56,700
6,400 JLG Industries, Inc. 104,400
2,700 Juno Lighting, Inc. 58,388
3,300 Kaman Corp., Class A 63,113
4,900 Kaydon Corp. 214,681
3,800 Kennametal, Inc. 202,588
5,300 Kimball International, Inc., Class B 124,881
1,600 (a) Knoll Inc. 55,700
2,400 Kuhlman Corp. 117,600
3,600 Lincoln Electric Co., Class A 168,750
1,300 Lindsay Manufacturing Co. 60,938
2,900 (a) Littlefuse, Inc. 73,225
1,200 (a) MICROS Systems Corp. 70,650
3,700 (a) Magnetek, Inc. 72,844
2,550 Manitowoc, Inc. 118,894
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Producer Manufacturing--continued
1,300 (a) Maverick Tube Corp. $ 22,669
400 (a) Mestek, Inc. 8,875
4,500 (a) Miller Industries, Inc. 35,438
3,200 Modine Manufacturing Co. 119,000
2,600 (a) MotivePower Industries, Inc. 66,950
2,600 (a) Mueller Industries, Inc. 175,988
1,029 NACCO Industries, Inc., Class A 173,065
1,000 (a) NCI Building System, Inc. 52,000
1,650 NN Ball & Roller, Inc. 20,419
2,100 Nordson Corp. 98,963
1,300 (a) Nortek, Inc. 37,944
2,600 (a) Oak Industries, Inc. 94,413
2,100 OmniQuip International, Inc. 49,088
1,450 (a) Osmonics, Inc. 21,841
600 Penn Engineering & Manufacturing Corp. 14,925
3,300 ROHN Industries, Inc. 17,841
3,000 Regal Beloit Corp. 92,250
1,550 Reliance Steel & Aluminum Co. 62,581
1,100 Robbins & Myers, Inc. 36,438
1,700 (a) Rofin-Sinar Technologies, Inc. 38,144
4,500 Roper Industries, Inc. 139,500
800 (a) Ryerson Tull, Inc., Class A 16,300
1,500 (a) SPS Technologies, Inc. 92,719
1,500 Scotsman Industries, Inc. 42,938
1,400 (a) Shaw Group, Inc. 32,900
700 (a) Shiloh Industries, Inc. 15,313
700 (a) Simpson Manufacturing Co., Inc. 29,138
600 (a) Special Metals Corp. 9,375
1,600 (a) Specialty Equipment Cos., Inc. 36,000
1,700 Standex International Corp. 51,744
4,500 Stewart & Stevenson Services 100,125
1,150 Superior Telecom, Inc. 48,516
2,200 TJ International, Inc. 68,475
1,300 Tennant Co. 54,925
1,700 (a) Terex Corp. 52,063
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Producer Manufacturing--continued
1,100 (a) Thermadyne Holdings Corp. $ 37,331
1,700 (a) Thermo Fibertek, Inc. 19,550
2,300 Thomas Industries, Inc. 59,656
2,700 Titan International, Inc. 52,650
2,400 (a) Tower Automotive, Inc. 127,950
900 Tredegar Industries, Inc. 70,481
2,100 (a) Triangle Pacific Corp. 91,350
2,640 (a) Triarc Companies, Inc., Class A 68,145
900 (a) TurboChef, Inc. 9,675
19,368 (a) U.S. Office Products Co. 342,572
2,700 (a) Valence Technology, Inc. 13,163
1,500 Valhi, Inc. 14,813
3,000 Valmont Industries, Inc. 66,750
2,950 Wabash National Corp. 91,081
5,100 (a) Walter Industries, Inc. 105,188
2,500 Watsco, Inc. 73,125
2,700 Watts Industries, Inc., Class A 69,188
6,915 Wausau-Mosinee Paper Corp. 146,512
2,100 Westinghouse Electric Corp. 58,931
2,000 (a) Wolverine Tube, Inc. 78,750
1,500 Woodhead Industries, Inc. 28,125
1,300 Woodward Governor Co. 38,513
2,600 (a) Zebra Technologies Co., Class A 100,750
1,800 Zero Corp. 55,463
1,800 Zurn Industries, Inc. 77,625
------------
Total 8,842,610
------------
Retail Trade--4.3%
975 (a) 99 Cents Only Stores 37,172
1,000 (a) Abercrombie & Fitch Co., Class A 44,500
800 (a) Amazon.com, Inc. 73,400
3,200 (a) Ames Department Stores, Inc. 78,400
3,700 (a) Ann Taylor Stores Corp. 58,969
5,500 (a) BJ's Wholesale Club, Inc. 220,344
5,000 (a) Best Buy Co., Inc. 351,250
800 (a) Brylane, Inc. 47,000
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Retail Trade--continued
600 (a) Buckle, Inc. $ 30,375
2,940 Burlington Coat Factory Warehouse 56,963
1,000 (a) CDW Computer Centers, Inc. 48,500
1,750 CPI Corp. 45,391
1 CVS Corp. 49
7,700 Casey's General Stores, Inc. 126,088
3,570 Cash America International, Inc. 60,690
3,800 (a) Central Garden & Pet Co. 130,150
15,500 (a) Charming Shoppes, Inc. 72,172
2,300 (a) Circuit City Stores, Inc. 29,325
6,575 Claire's Stores, Inc. 143,417
2,100 (a) Cole National Corp., Class A 78,094
1,300 (a) Cost Plus, Inc. 42,088
700 (a) Cross-Continent Auto Retailers, Inc. 5,819
200 Dart Group Corp., Class A 32,000
400 (a) Delia's, Inc. 10,100
1,200 (a) Discount Auto Parts, Inc. 28,875
1,800 (a) Dominick's Supermarkets, Inc. 72,113
2,400 (a) Dress Barn, Inc. 69,900
3,500 (a) Eagle Hardware & Garden, Inc. 63,875
1,300 (a) Express Scripts, Inc., Class A 104,000
2,400 (a) Fabri-Centers of America, Class A 70,650
6,800 Fingerhut Companies, Inc. 201,450
2,400 (a) Finish Line, Inc., Class A 59,400
4,100 (a) Footstar, Inc. 163,231
1,500 (a) Friedmans, Inc., Class A 31,313
1,300 (a) Gadzooks, Inc. 34,125
2,600 (a) Garden Ridge Corp. 49,725
3,800 (a) Genesco, Inc. 64,363
1,320 Genovese Drug Stores, Inc., Class A 31,433
2,200 (a) Global DirectMail Corp. 39,050
900 (a) Goody's Family Clothing, Inc. 44,550
2,600 Great Atlantic & Pacific Tea Co., Inc. 80,925
2,200 (a) Guitar Center, Inc. 62,700
3,100 Hancock Fabrics, Inc. 46,113
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Retail Trade--continued
8,300 Heilig-Meyers Co. $ 116,719
3,700 (a) Hollywood Entertainment Corp. 46,481
4,800 (a) Homebase, Inc. 40,200
1,000 Ingles Markets, Inc., Class A 12,500
3,275 (a) Just For Feet, Inc. 72,050
2,100 (a) Lands' End, Inc. 77,438
1,900 (a) Linens `N Things, Inc. 114,475
4,400 Longs Drug Stores Corp. 127,325
2,025 (a) Mens Wearhouse, Inc. 85,303
3,600 (a) Michaels Stores, Inc. 108,900
5,000 (a) Micro Warehouse, Inc. 78,125
2,850 (a) Microage, Inc. 45,600
3,300 (a) National Media Corp. 4,950
1,800 New Engineers Business Service, Inc. 59,738
1,800 (a) O'Reilly Automotive, Inc. 49,500
1,950 (a) Pacific Sunwear of California 86,044
1,600 (a) Paul Harris Stores, Inc. 23,900
2,950 (a) Petco Animal Supplies, Inc. 58,263
9,792 Pier 1 Imports, Inc. 258,264
11,200 (a) Proffitts, Inc. 445,200
2,300 Regis Corp. Minnesota 65,263
2,200 (a) Renters Choice, Inc. 60,225
4,100 Ruddick Corp. 73,544
14,600 (a) Service Merchandise, Inc. 31,025
2,000 Shopko Stores, Inc. 69,250
1,500 Smart & Final, Inc. 26,250
2,400 Spiegal, Inc., Class A 14,100
4,600 (a) Sports Authority, Inc. 80,788
3,900 (a) Stage Stores, Inc. 200,606
1,350 (a) Stein Mart, Inc. 47,588
2,333 (a) Sunburst Hospitality Corp. 18,810
8,000 (a) Sunglass Hut International, Inc. 76,500
1,000 (a) Syms Corp. 14,813
1,700 Talbots, Inc. 32,300
600 (a) Tractor Supply Co. 15,450
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Retail Trade--continued
1,300 (a) Ugly Duckling Corp. $ 14,463
2,100 (a) United Auto Group, Inc. 38,063
1,400 (a) Urban Outfitters, Inc. 22,925
1,400 (a) Value City Department Stores, Inc. 26,600
1,200 (a) West Marine, Inc. 30,075
1,600 (a) Wet Seal, Inc., Class A 44,200
3,800 (a) Whole Foods Market, Inc. 235,125
2,800 (a) Williams-Sonoma, Inc. 153,825
5,200 (a) Zale Corp. 156,650
------------
Total 6,599,460
------------
Services--12.3%
2,300 ABM Industries, Inc. 66,556
3,400 (a) ABR Information Services, Inc. 98,388
8,300 (a) ACNielsen Corp. 232,400
3,300 (a) ADVO, Inc. 94,463
600 (a) AMC Entertainment, Inc. 11,550
2,400 (a) APAC Teleservices, Inc. 22,800
1,200 (a) Abacus Direct Corp. 68,250
1,400 Ackerley Communications, Inc. 27,913
800 (a) Administaff, Inc. 34,500
14,700 (a) Allied Waste Industries, Inc. 404,250
3,550 (a) American Business Information, Class B 50,588
1,750 American Business Products, Inc. 40,469
6,200 (a) American Media, Inc. 46,500
3,090 (a) American Radio Systems Corp. 204,906
2,200 (a) American Residential Services, Inc. 24,063
900 (a) Anchor Gaming 75,825
4,337 Apple South, Inc. 68,308
4,400 Applebee's International, Inc. 109,450
1,000 (a) Applied Graphics Technologies, Inc. 50,000
3,225 Applied Industrial Technologies, Inc. 81,834
4,300 (a) Ascent Entertainment Group, Inc. 50,525
1,000 (a) Aviation Sales Co. 35,625
6,600 (a) Aztar Corp. 51,563
1,550 (a) BARRA, Inc. 37,200
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Services--continued
900 (a) BET Holdings, Inc., Class A $ 55,800
1,500 (a) BT Office Products International, Inc. 17,719
1,300 (a) Banner Aerospace, Inc. 15,600
4,350 Banta Corp. 139,200
2,000 (a) Bell & Howell Group, Inc. 55,250
400 (a) Berlitz International, Inc. 11,200
2,500 (a) Big Flower Holdings, Inc. 75,781
4,800 (a) Billing Concepts Corp. 134,400
6,100 Bob Evans Farms, Inc. 124,288
1,900 (a) Borg Warner Security Corp. 38,713
2,600 Bowne & Co., Inc. 107,413
5,200 (a) Boyd Gaming Corp. 36,400
9,600 (a) Brinker International, Inc. 230,400
6,400 (a) Bristol Hotel Co. 172,800
6,625 (a) Buffets, Inc. 98,133
1,000 Butler Manufacturing Co. 37,313
1,500 (a) CDI Corp. 58,031
6,730 CKE Restaurants, Inc. 233,026
900 (a) CKS Group, Inc. 20,081
900 (a) CSS Industries, Inc. 29,813
4,600 (a) Cablevision Systems Corp., Class A 282,613
2,900 (a) Calpine Corp. 52,381
3,600 (a) CapStar Hotel Co. 115,650
700 Carbo Ceramics, Inc. 24,588
1,500 (a) Caribiner International, Inc. 30,000
1,300 (a) Carmike Cinemas, Inc., Class A 39,406
1,600 Castle (A.M.) & Co. 38,000
2,700 (a) Catalina Marketing Corp. 140,400
1,150 Central Parking Corp. 53,906
6,300 (a) Checkfree Holdings Corp. 162,225
2,200 (a) Cheesecake Factory, Inc. 55,550
7,100 (a) Choice Hotels International, Inc. 121,588
1,200 (a) Claremont Technology Group 28,200
1,800 (a) Coinmach Laundry Corp. 42,975
1,400 (a) Computer Learning Centers, Inc. 16,800
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Services--continued
1,200 (a) Consolidated Graphics, Inc. $ 69,225
3,066 (a) Consolidated Products, Inc. 62,470
1,100 (a) Copart, Inc. 22,172
1,300 (a) Cox Radio, Inc., Class A 62,888
1,500 (a) Daisytek International Corp. 36,375
1,900 Dames & Moore, Inc. 24,344
700 (a) Data Processing Resources Corp. 19,589
1,400 (a) Data Transmission Network Corp. 58,275
1,400 (a) Day Runner, Inc. 33,600
4,000 (a) DeVRY, Inc. 151,500
900 (a) Deltek Systems, Inc. 19,350
900 (a) Devon Group, Inc. 53,438
500 Dover Downs Entertainment 16,375
1,300 (a) Education Management Corp. 45,175
1,900 (a) Einstein/Noah Bagel's 6,650
1,200 (a) Emmis Broadcasting Corp., Class A 62,100
3,700 (a) Employee Solutions, Inc. 16,766
1,400 (a) Equity Corp. International 34,738
600 (a) FactSet Research Systems 21,000
1,500 Fair Isaac & Co., Inc. 59,625
1,300 (a) Family Golf Centers, Inc. 54,763
1,000 (a) Fine Host Corp. 4,813
900 (a) Firearms Training Systems, Inc. 7,875
5,800 Fisher Scientific International, Inc. 85,913
5,600 Fleming Cos., Inc. 105,000
5,100 (a) Florida Panthers Holdings, Inc. 111,563
5,700 (a) Foodmaker, Inc. 108,300
3,600 (a) Franklin Covey Co. 90,000
2,750 G & K Services, Inc., Class A 110,688
800 (a) GC Cos., Inc. 42,100
3,900 (a) Golden Books Family Entertainment, Inc. 44,119
4,800 (a) Grand Casinos, Inc. 84,300
1,750 Granite Construction, Inc. 51,734
100 Grey Advertising, Inc. 45,100
10,300 (a) Grey Wolf, Inc. 44,419
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
6,700 (a) Greyhound Lines, Inc. $ 33,500
2,400 (a) HA-LO Industries, Inc. 80,550
4,700 Handleman Co. 49,938
4,500 Harland (John H.) Co. 80,156
3,500 (a) Heftel Broadcasting Corp., Class A 153,563
2,800 (a) Hollywood Park, Inc. 32,725
2,700 (a) Homestead Village, Inc. 37,800
5,000 (a) Host Marriott Services Corp. 73,750
4,400 Houghton Mifflin Co. 143,275
1,900 Hughes Supply, Inc. 73,625
1,300 Hunt Corp. 32,175
1,300 (a) IHOP Corp. 57,200
675 (a) ITT Educational Services, Inc. 19,955
2,800 (a) Identix, Inc. 22,225
1,500 (a) Indus International, Inc. 12,375
3,800 (a) Industri-Matematik International Corp. 84,550
3,900 Innkeepers USA Trust 58,988
5,800 (a) Interim Services, Inc. 189,225
3,500 (a) Interstate Hotels Co. 115,500
3,100 (a) Jacobs Engineering Group, Inc. 103,463
7,300 (a) Jacor Communications, Inc., Class A 415,188
2,300 (a) Jones Intercable, Inc., Class A 46,288
7,100 (a) Journal Register Co. 160,194
2,400 Kelly Services, Inc., Class A 88,800
22,900 (a) Laidlaw Environmental Services, Inc. 90,169
2,950 (a) Lamar Advertising Co. 101,775
1,200 Landauer, Inc. 32,475
3,600 (a) Landrys Seafood Restaurants, Inc. 102,600
900 Lawson Products, Inc. 22,725
1,700 (a) Layne Christensen Co. 29,538
1,400 (a) Learning Tree International, Inc. 33,513
5,200 (a) Lone Star Steakhouse & Saloon 110,500
3,400 Luby's Cafeterias, Inc. 65,238
2,600 (a) Mail-Well, Inc. 125,775
7,100 (a) Malibu Entertainment Worldwide 24,406
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Services--continued
2,775 Marcus Corp. $ 49,083
1,650 (a) Mastec, Inc. 44,138
1,900 (a) May & Speh, Inc. 28,263
2,325 McClatchy Newspapers, Inc., Class A 69,605
1,700 Media General, Inc., Class A 80,750
1,500 (a) MemberWorks, Inc. 46,125
1,900 Merrill Corp. 39,425
4,150 (a) Metamor Worldwide, Inc. 158,738
500 Metris Cos., Inc. 28,344
1,200 (a) Metro Networks, Inc. 47,700
6,342 (a) Metromedia International Group, Inc. 105,436
1,250 (a) Metzler Group, Inc. 43,281
3,473 (a) Midway Games, Inc. 64,258
2,100 (a) MoneyGram Payment Systems, Inc. 35,963
1,600 Morrison Health Care, Inc. 32,800
1,900 (a) Morrison Knudsen Corp. 22,681
900 (a) NCO Group, Inc. 22,444
3,000 (a) NFO Worldwide, Inc. 62,813
2,900 (a) NOVA Corp. 98,600
1,300 (a) NPC International, Inc. 17,063
1,600 Nash Finch Co. 31,400
7,500 (a) National-Oilwell, Inc. 284,531
9,360 (a) Newpark Resources, Inc. 225,225
2,100 Norrell Corp. 44,231
1,800 (a) OHM Corp. 25,200
7,300 Ogden Corp. 224,475
1,600 (a) On Assignment, Inc. 51,600
1,700 (a) On Command Corp. 23,588
6,175 (a) Outdoor Systems, Inc. 196,056
800 (a) PEC Israel Economic Corp. 18,850
7,000 (a) PMT Services, Inc. 136,500
2,750 (a) Papa Johns International, Inc. 114,813
2,500 (a) Paxson Communications Corp. 33,594
700 (a) Pegasystems, Inc. 13,125
1,000 (a) Penn National Gaming, Inc. 10,625
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Services--continued
800 (a) Penske Motorsports, Inc. $ 27,450
1,850 (a) Performance Food Group Co. 37,463
3,500 (a) Personnel Group of America, Inc. 69,563
6,400 Phoenix Duff & Phelps Corp. 56,400
1,050 (a) Pinkertons, Inc. 22,969
2,500 (a) Playboy Enterprises, Inc., Class B 43,750
700 (a) Precision Response Corp. 5,863
1,700 (a) Premier Parks, Inc. 94,563
3,300 (a) Prepaid Legal Services, Inc. 124,781
6,700 (a) Pride International, Inc. 162,894
1,100 (a) Primadonna Resorts, Inc. 19,663
3,800 (a) Primark Corp. 141,313
5,900 (a) Prime Hospitality Corp. 122,056
1,200 (a) Profit Recovery Group International, Inc. 31,200
6,100 (a) PsiNet, Inc. 84,638
1,533 Pulitzer Publishing Co. 130,908
700 (a) Quintel Entertainment, Inc. 3,894
4,600 (a) RCN Corp. 104,075
3,200 (a) Rainforest Cafe Inc. 48,500
1,300 (a) Rare Hospitality International, Inc. 16,900
4,000 (a) Red Roof Inns, Inc. 70,750
6,900 Richfood Holdings, Inc. 189,319
2,400 (a) Rio Hotel & Casino, Inc. 54,300
2,900 Rollins, Inc. 57,819
5,211 (a) Romac International, Inc. 138,084
2,150 Ruby Tuesday, Inc. 72,025
2,000 (a) Rural / Metro Corp. 65,000
6,900 (a) Ryan's Family Steak Houses, Inc. 69,000
1,700 SEI Corp. 125,588
1,200 (a) SFX Broadcasting, Inc. 88,425
1,200 (a) SFX Entertainment, Inc., Class A 41,400
6,900 (a) SITEL Corp. 81,075
1,000 (a) SPS Transaction Services, Inc. 30,813
1,300 (a) Saga Communications, Inc., Class A 29,575
1,850 Sbarro, Inc. 54,575
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Services--continued
1,900 (a) Scholastic Corp. $ 70,775
1,400 (a) Scientific Games Holdings Corp. 31,150
3,000 (a) Scopus Technology, Inc. 56,250
2,150 (a) Seattle Filmworks, Inc. 21,500
1,600 (a) Service Experts, Inc. 53,200
6,400 (a) Shoney's, Inc. 34,400
2,150 (a) ShowBiz Pizza Time, Inc. 83,044
2,400 Showboat, Inc. 72,750
4,100 Shurgard Storage Centers, Inc., Class A 115,313
1,400 (a) Sinclair Broadcast Group, Inc. 72,625
2,200 (a) Snyder Communications, Inc. 93,500
1,500 (a) Sodak Gaming, Inc. 10,031
1,750 (a) Sonic Corp. 56,000
6,000 Sothebys Holdings, Inc., Class A 138,375
1,800 (a) Speedway Motorsports, Inc. 49,163
3,200 (a) Spelling Entertainment Group, Inc. 30,400
2,100 (a) StaffMark, Inc. 89,250
1,900 Standard Register 75,881
3,000 (a) Station Casinos, Inc. 44,625
1,000 Stone & Webster, Inc. 44,625
4,000 Storage USA, Inc. 151,500
800 Strayer Education, Inc. 29,400
1,500 (a) Suburban Lodges of America, Inc. 27,750
2,900 (a) Superior Services, Inc. 94,250
2,800 (a) Sylvan Learning Systems, Inc. 138,250
0 (a) Synopsys, Inc. 11
7,500 (a) TCI Satellite Entertainment, Inc. 59,063
1,200 (a) TMP Worldwide, Inc. 31,800
3,700 (a) TeleSpectrum Worldwide, Inc. 32,144
3,232 (a) Tetra Tech, Inc. 78,376
1,600 (a) Tetra Technologies, Inc. 38,300
600 (a) Thermo Ecotek Corp. 10,950
500 (a) Thermo Terratech, Inc. 3,188
1,575 Thomas Nelson, Inc. 20,967
1,500 (a) Ticketmaster Group, Inc. 41,250
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Services--continued
600 Trigen Energy Corp. $ 8,250
3,000 True North Communications, Inc. 91,500
3,300 (a) Trump Hotels & Casino Resorts, Inc. 27,225
5,255 (a) U.S. Foodservice, Inc. 185,567
5,700 (a) US Satellite Broadcasting Co., Class A 52,725
2,800 (a) USCS International, Inc. 56,350
1,300 Unifirst Corp. 35,100
800 (a) United Natural Foods, Inc. 22,600
2,300 (a) United Stationers, Inc. 145,188
600 United Television, Inc. 66,300
2,100 (a) VWR Scientific Products Corp. 69,038
3,900 (a) Vail Resorts, Inc. 114,075
300 Value Line, Inc. 13,500
6,300 (a) Vanstar Corp. 83,869
3,300 (a) Veritas DGC, Inc. 178,819
600 (a) Vincam Group, Inc. 16,275
900 (a) Vistana, Inc. 22,725
1,150 (a) Volt Information Science, Inc. 38,238
2,900 (a) WMS Industries, Inc. 14,863
1,900 Wackenhut Corp., Class A 45,125
1,400 (a) Wackenhut Corrections Corp. 36,575
400 Waverly, Inc. 15,475
3,500 (a) Westwood One, Inc. 105,000
1,900 Wiley (John) & Sons, Inc., Class A 105,213
1,600 (a) Wilmar Industries, Inc. 38,200
2,800 (a) World Access, Inc. 108,150
5,600 (a) World Color Press 179,200
1,700 (a) Young Broadcasting, Inc., Class A 85,000
------------
Total 18,661,748
------------
Technology--14.0%
3,650 AAR Corp. 95,584
500 (a) ACT Manufacturing, Inc. 6,125
2,600 (a) ATMI, Inc. 72,475
2,800 (a) Actel Corp. 41,650
5,300 (a) Acxiom Corp. 128,525
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Technology--continued
900 (a) Ade Corp. $ 16,088
2,700 (a) Adtran, Inc. 71,719
700 (a) Advanced Energy Industries, Inc. 10,413
500 (a) Advent Software, Inc. 21,313
7,000 (a) Affiliated Computer Services, Inc., Class A 245,875
3,600 (a) Alliance Semiconductor Corp. 28,575
1,300 (a) Alliant Techsystems, Inc. 83,119
2,100 (a) Alternative Resources Corp. 41,738
1,950 (a) Altron, Inc. 28,275
6,000 (a) American Management System, Inc. 173,625
325 (a) American Satellite Newwor, Warrants 0
5,700 (a) Ampex, Inc., Class A 15,319
2,600 (a) Amphenol Corp., Class A 160,225
2,150 (a) Anadigics, Inc. 35,878
1,000 Analogic Corp. 46,625
3,300 Analysts International Corp. 95,700
3,950 (a) Antec Corp. 78,013
700 (a) Apex MPC Solutions, Inc. 20,913
3,528 (a) Applied Magnetics Corp. 36,383
1,700 (a) Arbor Software Corp. 80,006
1,100 (a) Aspect Development, Inc. 69,644
7,200 (a) Aspect Telecommunications Corp. 207,000
3,100 (a) Aspen Technologies, Inc. 151,513
1,500 (a) Asyst Technologies, Inc. 31,594
3,700 (a) Auspex Systems, Inc. 26,825
3,419 (a) Avant! Corp. 99,137
2,300 Aviall, Inc. 32,200
3,400 (a) Avid Technology, Inc. 147,475
2,100 (a) Aware, Inc. 26,775
3,300 (a) BE Aerospace, Inc. 102,919
2,500 (a) BEA Systems, Inc. 55,625
0 (a) BMC Software, Inc. 37
1,600 (a) BRC Holdings, Inc. 32,000
600 (a) Bacou U.S.A., Inc. 11,400
3,179 (a) BancTec, Inc. 69,342
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Services--continued
1,700 (a) Benchmark Electronics, Inc. $ 38,144
2,600 (a) Berg Electronics Corp. 61,913
3,800 (a) Bisys Group, Inc. 150,100
2,400 (a) Black Box Corp. 79,800
3,831 (a) Boole & Babbage, Inc. 91,932
5,600 (a) Borland International, Inc. 56,000
7,474 (a) Brightpoint, Inc. 145,743
5,287 (a) Burr Brown Corp. 160,923
4,800 (a) C-Cube Microsystems, Inc. 116,100
1,000 (a) C/NET, Inc. 33,250
1,200 (a) CACI International, Inc., Class A 26,325
800 (a) CFM Technologies, Inc. 10,100
4,600 (a) CHS Electronics, Inc. 96,025
3,700 (a) CSG Systems International, Inc. 168,350
1,484 CTS Corp. 54,815
2,200 (a) California Microwave 49,913
5,200 (a) CellNet Data Systems, Inc. 71,825
1,950 (a) Cellstar Corp. 63,619
3,290 (a) Cellular Technical Services, Inc. 5,963
4,800 (a) Checkpoint System, Inc. 89,700
3,000 (a) Ciber, Inc. 97,500
2,000 (a) Cidco, Inc. 17,250
8,800 (a) Cirrus Logic, Inc. 91,850
5,600 (a) Citrix Systems Inc. 347,900
3,100 (a) Clarify, Inc. 42,625
5,000 (a) Cognex Corp. 120,938
1,400 (a) Coherent Communications Systems Corp. 68,863
3,400 (a) Coherent, Inc. 80,750
1,400 Cohu, Inc. 47,425
1,000 (a) Complete Business Solutions, Inc. 34,188
3,200 (a) Compucom System, Inc. 24,000
3,900 (a) Computer Horizons Corp. 147,956
300 (a) Computer Management Sciences 7,725
4,697 (a) Computer Products, Inc. 103,334
2,500 Computer Task Group, Inc. 97,188
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Services--continued
6,270 (a) Comverse Technology, Inc. $ 297,041
7,100 (a) CopyTele, Inc. 19,969
3,150 (a) Credence Systems Corp. 86,822
800 Cubic Corp. 21,550
700 Curtiss Wright Corp. 28,044
1,300 (a) CyberMedia, Inc. 9,709
2,700 (a) Cylink Corp. 38,138
4,200 (a) Cymer, Inc. 93,713
1,000 (a) DBT Online, Inc. 26,500
3,700 (a) DII Group, Inc. 86,025
5,800 (a) DSP Communications, Inc. 96,788
2,200 Daniel Industries, Inc. 43,038
1,400 (a) Data Dimensions, Inc. 20,650
6,600 (a) Data General Corp. 100,650
1,150 (a) Davox Corp. 25,731
1,300 (a) Dialog Corp. PLC 48,588
4,300 (a) Diamond Multimedia Systems, Inc. 49,988
900 (a) Digital Lightwave, Inc. 4,500
700 (a) Digital Link Corp. 7,000
5,600 (a) Digtial Microwave Corp. 63,700
1,700 (a) Dionex Corp. 90,738
1,600 (a) Documentum, Inc. 86,200
900 (a) Ducommun, Inc. 31,275
600 (a) Dupont Photomasks, Inc. 32,550
2,300 (a) Dynatech Corp. 112,125
6,600 EG & G, Inc. 198,825
2,300 (a) ESS Technology, Inc. 14,519
1,400 (a) Echostar Communications Corp., Class A 36,838
1,700 (a) Edify Corp. 18,488
1,600 (a) Electro Scientific Industries, Inc. 60,800
2,600 (a) Electroglas, Inc. 43,875
1,000 (a) Eltron International, Inc. 25,875
1,700 (a) Encad, Inc. 23,481
3,100 (a) Envoy Corp. 130,588
2,500 (a) Esterline Technologies Corp. 57,500
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Services--continued
3,200 (a) Etec Systems, Inc. $ 181,600
1,300 (a) Evans & Sutherland Computer Co. 37,538
3,000 (a) Exabyte Corp. 34,313
1,400 (a) Exar Corp. 35,175
2,100 (a) FEI Co. 20,344
3,300 (a) FSI International, Inc. 38,775
4,400 (a) FTP Software, Inc. 13,613
2,200 (a) Filenet Corp. 119,900
300 (a) Forrester Research, Inc. 11,250
2,800 (a) Forte Software, Inc. 19,775
4,800 GenCorp, Inc. 146,100
4,000 (a) GenRad, Inc. 80,250
2,800 (a) General DataComm Industries, Inc. 14,000
1,300 (a) GeoTel Communications Corp. 35,913
20,000 (a) Geotek Industries, Inc. 12,500
2,800 Gerber Scientific, Inc. 71,400
8,800 (a) Glenayre Technologies, Inc. 138,050
1,600 (a) HADCO Corp. 61,200
5,400 (a) HMT Technology Corp. 70,200
3,000 (a) HNC Software 117,000
1,250 Hach Co. 11,875
525 Hach Co., Class A 5,578
2,650 (a) Harbinger Corp. 96,394
2,400 Helix Technology Corp. 48,000
1,700 Henry Jack & Associates, Inc. 59,075
2,900 (a) Hutchinson Technology, Inc. 89,719
2,800 (a) Hyperion Software Corp. 121,450
800 (a) I2 Technologies, Inc. 53,400
1,200 (a) IKOS Systems, Inc. 7,650
3,200 (a) In Focus Systems, Inc. 27,600
2,000 (a) Inacom Corp. 71,625
1,450 (a) Information Management Resources 39,331
4,200 (a) Information Resources, Inc. 78,488
2,100 Innovex, Inc. 53,681
1,400 (a) Inso Corp. 25,200
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Services--continued
1,800 (a) Integrated Circuit System, Inc. $ 27,225
11,800 (a) Integrated Device Technology, Inc. 142,338
2,500 (a) Integrated Process Equipment Corp. 45,469
2,300 (a) Integrated Systems, Inc. 43,413
3,100 Inter-Tel, Inc. 73,238
7,000 (a) Interdigital Communications Corp. 48,125
6,100 (a) Intergraph Corp. 51,850
2,800 (a) International Network Services 94,150
7,500 (a) International Rectifier Corp. 88,125
3,300 (a) Intersolv, Inc. 50,738
2,100 (a) Intervoice, Inc. 28,350
400 (a) Intevac, Inc. 4,025
1,100 (a) Iron Mountain, Inc. 46,200
1,900 (a) Itron, Inc. 29,094
1,300 (a) JDA Software Group, Inc. 65,731
500 (a) JPM Co. 6,438
2,100 John Fluke Manufacturing, Co. 66,675
5,700 (a) Kemet Corp. 102,600
4,000 (a) Kent Electronics Corp. 88,000
1,200 (a) Kronos, Inc. 43,200
3,400 (a) Kulicke & Soffa Industries 73,100
1,000 (a) LHS Group, Inc. 121,500
5,400 (a) LTX Corp. 25,988
900 (a) LeCroy Corp. 20,925
5,100 (a) Legato Systems, Inc. 161,288
4,475 (a) Level One Communications, Inc. 139,284
2,300 (a) Lycos, Inc. 142,169
1,300 (a) MOOG Inc., Class A 56,225
2,900 (a) MRV Communications, Inc. 77,938
2,700 MTS Systems Corp. 46,238
4,600 (a) Macromedia, Inc. 68,713
2,400 (a) Manugistics Group, Inc. 144,000
2,400 (a) Marshall Industries 77,850
1,800 (a) Mastech Corp. 47,700
8,700 (a) Mentor Graphics Corp. 91,350
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Services--continued
2,400 (a) Mercury Interactive Corp. $ 97,200
4,100 Methode Electronics, Inc., Class A 65,600
700 (a) Metro Information Services, Inc. 24,325
1,800 (a) Micrel, Inc. 70,650
1,700 (a) Micro Linear Corp. 9,988
1,100 (a) MicroTouch Systems, Inc. 20,969
2,900 (a) Mylex Corp. 23,200
4,000 National Computer Systems, Inc. 100,000
1,950 (a) National Instruments Corp. 69,225
1,000 (a) National Processing, Inc. 12,563
2,300 (a) National TechTeam, Inc. 20,700
1,600 (a) Natural Microsystems Corp. 51,600
1,400 (a) NeoMagic Corp. 28,788
4,100 (a) Network Appliance, Inc. 147,856
2,200 (a) Network Computing Devices 20,488
3,100 (a) Network Equipment Technologies, Inc. 63,744
5,100 NewPort News Shipbuilding, Inc. 138,656
1,600 (a) Nichols Research Corp. 43,400
3,700 (a) Nimbus CD International, Inc. 39,544
1,400 (a) ODS Networks, Inc. 12,775
2,400 OEA, Inc. 45,750
2,700 (a) OIS Optical Imaging Systems, Inc. 4,641
5,400 (a) Oak Technology, Inc. 31,050
3,400 (a) Object Design, Inc. 21,463
1,400 (a) Objective Systems Integrator 15,575
4,300 (a) Omnipoint Corp. 105,350
2,600 (a) Open Market, Inc. 49,075
400 (a) Optical Cable Corp. 4,500
4,800 (a) Orbital Sciences Corp. 213,600
5,400 (a) P-COM, Inc. 106,313
4,400 (a) PMC-Sierra, Inc. 200,200
2,300 (a) PRI Automation, Inc. 61,525
1,500 Park Electrochemical Corp. 38,625
1,200 (a) Perceptron, Inc. 18,300
2,000 (a) Periphonics Corp. 23,250
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Services--continued
0 Perkin-Elmer Corp. $ 7
53 (a) Perkin-Elmer Corp., Warrants 252
2,300 (a) Phoenix Technology, Ltd. 26,881
2,600 (a) Photronic Labs, Inc. 95,875
5,500 (a) PictureTel Corp. 50,875
3,825 Pioneer Standard Electronics, Inc. 48,052
1,300 (a) Pixar, Inc. 53,950
2,400 (a) Plantronics, Inc. 102,000
9,398 (a) Platinum Technology, Inc. 239,649
2,200 (a) Plexus Corp. 48,400
600 (a) Powerwave Technologies, Inc. 11,325
3,700 (a) Premisys Communications, Inc. 107,994
1,700 (a) Progress Software Corp. 54,400
1,400 (a) Project Software & Development, Inc. 37,100
1,400 (a) Proxim, Inc. 21,000
1,000 (a) Quickresponse Services, Inc. 47,000
2,500 (a) REMEC, Inc. 62,188
2,100 (a) RMI Titanium Co. 46,856
900 (a) RadiSys Corp. 24,525
900 (a) Radiant Systems, Inc. 20,250
0 (a) Radius, Inc. 0
1,800 (a) Rambus, Inc. 80,888
4,400 (a) Ramtron International Corp. 19,800
11,452 (a) Rational Software Corp. 192,537
6,500 (a) Read-Rite Corp. 89,781
3,000 (a) Remedy Corp. 66,188
2,420 (a) Renaissance Worldwide, Inc. 43,409
3,400 (a) Robotic Vision Systems, Inc. 25,713
7,300 (a) S3, Inc. 53,381
1,900 (a) SDL, Inc. 47,025
900 (a) SPSS, Inc. 22,500
3,400 (a) Sabre Group Holdings, Inc. 123,675
4,000 (a) Safeguard Scientifics, Inc. 169,000
2,700 (a) Sandisk Corp. 56,363
3,000 (a) Sanmina Corp. 270,000
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Services--continued
2,700 (a) Santa Cruz Operation, Inc. $ 15,188
1,000 (a) Sapient Corp. 49,375
1,000 (a) Sawtek, Inc. 30,375
800 (a) SeaChange International, Inc. 10,100
1,500 (a) Semtech Corp. 35,813
1,200 (a) Sequa Corp., Class A 88,800
6,200 (a) Sequent Computer System, Inc. 121,675
1,300 (a) Sheldahl, Inc. 13,650
4,100 (a) Shiva Corp. 45,613
6,100 (a) Siebel Systems, Inc. 157,838
4,400 (a) Silicon Valley Group, Inc. 83,600
1,400 (a) Siliconix, Inc. 40,119
1,000 (a) Sipex Corp. 19,875
3,700 (a) Smart Modular Technologies, Inc. 91,344
1,600 (a) Spectrian Corp. 27,400
1,000 (a) Speedfam International, Inc. 29,000
1,700 (a) Splash Technology Holdings, Inc. 31,663
1,500 (a) Stanford Telcommunications, Inc. 26,250
3,500 (a) Stratus Computer, Inc. 152,469
4,917 (a) Structural Dynamics Research Corp. 138,905
1,800 (a) Supertex, Inc. 22,050
1,500 (a) Sykes Enterprises, Inc. 31,406
8,200 (a) Symantec Corp. 237,800
2,300 (a) Symmetricom, Inc. 16,963
4,850 System Software Association 42,134
2,400 (a) Systems & Computer Technology Corp. 135,600
3,100 (a) Systemsoft Corp. 11,625
900 (a) Tech-Sym Corp. 28,238
2,100 Technitrol, Inc. 85,838
3,800 (a) Technology Solutions Corp. 122,075
1,400 (a) Tekelec, Inc. 70,350
2,300 Telxon Corp. 74,319
6,100 (a) The Learning Co., Inc. 174,613
400 (a) Thermedics Detection, Inc. 3,750
500 (a) Thermo Optek Corp. 9,000
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Services--continued
500 (a) ThermoSpectra Corp. $ 4,500
500 (a) Thermoquest Corp. 8,938
1,350 (a) Thermotrex Corp. 26,916
2,400 (a) Tracor, Inc. 94,350
1,700 (a) Trident Microsystems, Inc. 13,016
3,200 (a) Trimble Navigation Ltd. 59,200
1,200 (a) Triquint Semiconductor, Inc. 27,450
1,700 (a) Triumph Group, Inc. 76,925
2,700 (a) Ultratech Stepper, Inc. 66,319
3,500 (a) Unitrode Corp. 56,000
1,400 (a) Vantive Corp. 44,800
1,200 (a) Veeco Instruments, Inc. 48,450
3,900 (a) Veritas Software Corp. 213,525
2,800 (a) Viasoft, Inc. 48,825
4,600 (a) Vicor Corp. 92,288
1,900 (a) VideoServer, Inc. 20,425
3,400 (a) Visio Corp. 168,300
1,900 (a) Walker Interactive Systems 34,794
1,400 (a) Wall Data, Inc. 21,525
5,600 (a) Wang Laboratories, Inc. 151,200
3,800 (a) Waters Corp. 203,300
1,200 Watkins Johnson Co. 33,375
2,200 (a) Westell Technologies, Inc., Class A 22,825
1,400 (a) Whitmann-Hart, Inc. 61,425
2,950 (a) Wind River Systems, Inc. 102,144
2,500 Wireless Telecom Group, Inc. 12,656
2,800 (a) Wyman Gordon Co. 56,700
3,300 (a) Xircom, Inc. 56,306
4,700 (a) Xylan Corp. 133,803
3,550 (a) Yahoo, Inc. 422,228
900 (a) Yurie Systems, Inc. 31,275
2,300 (a) Zitel Corp. 20,556
1,400 (a) Zoran Corp. 17,150
1,400 (a) Zygo Corp. 29,750
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Services--continued
2,200 (a) fonix Corp. $ 11,963
------------
Total 21,344,056
------------
Transportation--1.8%
3,300 ASA Holdings Ltd. 125,400
5,800 (a) AirTran Holdings, Inc. 51,294
7,200 Airborne Freight Corp. 285,300
4,500 Airlines Express International Corp. 118,125
1,200 (a) Airnet Systems, Inc. 32,400
2,700 (a) Alaska Air Group, Inc. 151,538
5,802 (a) America West Holdings Corp., Class B 175,511
3,100 (a) American Freightways Corp. 37,200
2,900 Arnold Industries, Inc. 46,400
1,300 (a) Atlas Air, Inc. 50,700
1,800 Circle International Group, Inc. 48,234
2,700 (a) Coach USA, Inc. 128,081
3,200 (a) Consolidated Freightways Corp. 57,400
1,500 (a) Covenant Transport, Inc., Class A 28,594
1,100 (a) Eagle USA Airfreight, Inc. 36,163
3,600 Expeditors International Washington, Inc. 153,000
400 Florida East Coast, Inc. 45,650
3,200 (a) Fritz Companies, Inc. 46,800
2,245 (a) Heartland Express, Inc. 55,844
3,100 Hunt (J.B.) Transportation Services, Inc. 99,200
1,700 (a) Hvide Marine, Inc., Class A 28,688
3,550 (a) Kirby Corp. 86,975
500 (a) Kitty Hawk, Inc. 9,313
600 (a) Knight Transportation, Inc. 19,500
1,700 (a) Landstar System, Inc. 55,675
1,300 (a) M.S. Carriers, Inc. 44,200
1,100 (a) Mesaba Holdings, Inc. 36,438
1,400 (a) Midwest Express Holdings, Inc. 66,588
5,600 (a) OMI Corp. 53,900
4,000 Overseas Shipholding Group, Inc. 85,000
3,000 Pittston Burlington Group 56,250
1,800 Roadway Express, Inc. 44,663
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Transportation--continued
2,950 (a) Swift Transportation Co. $ 67,481
7,400 (a) Trans World Airlines, Inc. 71,688
3,850 USFreightways Corp. 137,638
3,100 Werner Enterprises, Inc. 74,788
3,900 (a) Yellow Corp. 69,956
------------
Total 2,781,575
------------
Utilities--6.4%
8,300 AGL Resources, Inc. 172,744
800 (a) Aerial Communications, Inc. 5,800
5,300 Aliant Communications, Inc. 150,388
2,300 (a) American Mobile Satellite Corp. 24,725
1,100 Aquarion Co. 35,681
800 Aquila Gas Pipeline Co. 14,100
2,200 (a) Associated Group, Inc., Class A 79,750
4,350 Atmos Energy Corp. 128,053
2,000 Bay State Gas Co. 75,875
3,200 Black Hills Corp. 67,000
1,900 CFW Communications Co. 49,163
1,216 CTG Resources, Inc. 28,871
1,700 California Water Service Group 45,581
2,300 (a) Cellular Communications International, Inc. 101,200
2,205 (a) Centennial Cellular Corp., Class A 73,041
2,500 Central Hudson Gas & Electric Service 100,781
4,700 Central Maine Power Co. 85,481
4,700 (a) Century Communications, Corp., Class A 72,850
2,000 Cilcorp, Inc. 95,625
459 (a) Citizens Utilities Co., Class B 4,645
2,900 Cleco Corp. 93,163
1,300 Colonial Gas Co. 37,050
2,600 Commonwealth Energy System 99,450
1,533 (a) Commonwealth Telephone Enterprises, Inc. 46,000
7,200 Comsat Corp. 290,700
14,675 Conectiv, Inc. 307,258
1,500 Connecticut Energy Corp. 43,500
1,900 (a) Corecomm, Inc. 36,575
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Utilities--continued
1,200 E Town $ 40,650
2,800 Eastern Enterprises 118,650
3,000 Eastern Utilities Association 78,750
8,800 (a) El Paso Electric Co. 83,600
2,400 Empire Distribution Electric Co. 52,050
3,700 Energen Corp. 82,556
5,400 Equitable Resources, Inc. 175,500
1 (a) Excel Communications, Inc. 20
1,500 (a) General Communications, Inc., Class A 10,594
4,700 Hawaiian Electric Industries, Inc. 190,350
3,600 (a) HighwayMaster Communications, Inc. 21,600
2,400 (a) IXC Communications, Inc. 119,700
3,250 Indiana Energy, Inc. 102,375
2,600 (a) Intermedia Communications of Florida, Inc. 189,759
11,162 Interstate Energy Corp. 352,301
14,400 (a) Kelley Oil & Gas Corp. 36,900
2,600 Laclede Gas Co. 64,350
4,250 MDU Resources Group, Inc. 147,422
2,300 Madison Gas & Electric Co. 49,738
5,500 (a) McLeod, Inc., Class A 253,000
2,122 MetroCall, Inc., Rights 0
4,900 Minnesota Power And Light Co. 199,675
7,300 (a) Mobile Telecommunication Technologies Corp. 186,150
4,233 (a) NTL, Inc. 165,087
1,600 NUI Corp. 41,000
7,400 Nevada Power Co. 181,763
2,600 New Jersey Resources Corp. 98,150
1,500 North Carolina Natural Gas 36,844
2,200 North Pittsburgh Systems, Inc. 31,350
3,300 Northwest Natural Gas Co. 89,100
2,600 Northwestern Public Service Co. 57,850
3,900 Oneok, Inc. 157,950
2,000 Orange & Rockland Utilities, Inc. 82,625
1,700 Otter Tail Power Co. 62,263
1,200 (a) Pacific Gateway Exchange, Inc. 68,400
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Utilities--continued
5,000 (a) PageMart Wireless, Inc., Class A $ 50,000
15,000 (a) Paging Network, Inc. 210,938
1,400 Pennsylvania Enterprises 32,813
3,400 Philadelphia Suburban Corp. 71,825
4,400 Piedmont Natural Gas, Inc. 149,875
2,200 (a) Powertel, Inc. 50,325
3,200 (a) Premiere Technologies, Inc. 102,000
2,088 (a) PriceCellular Corp., Class A 27,405
2,200 (a) Primus Telecommunications Group, Inc. 52,525
6,100 Public Service Co. New Mexico 140,681
2,900 Public Service Co. North Carolina, Inc. 59,450
5,700 Rochester Gas & Electric Corp 177,413
3,400 SIG Corp., Inc. 100,513
1,937 Semco Energy, Inc. 34,862
4,500 Sierra Pacific Resources 157,500
1,400 SmarTalk Teleservices, Inc. 27,825
1,124 South Jersey Industries, Inc. 30,840
1,300 Southern CA Water Co. 30,225
1,320 (a) Southern Union Co. 34,650
4,000 Southwest Gas Corp. 92,250
3,600 Southwestern Energy Co. 41,625
2,400 TCA Cable TV, Inc. 148,200
1,500 TNP Enterprises, Inc. 48,375
4,900 (a) Tel-Save Holdings, Inc. 111,781
1 (a) Teleport Communications Group, Inc., Class A 30
1,250 (a) Transaction Network Services, Inc. 25,469
4,800 UGI Corp. 133,200
4,660 (a) UniSource Energy Corp. 82,424
2,100 United Illuminating Co. 103,163
3,800 (a) United International Holdings, Inc., Class A 64,600
1,700 (a) United Video Satellite Group, Inc., Class A 74,269
3,936 United Water Resources, Inc. 68,142
5,300 (a) Vanguard Cellular Systems, Inc., Class A 100,700
2,700 WICOR, Inc. 129,431
3,500 WPS Resources Corp. 115,500
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ---------- -------------------------------------------------- ---------------
<S> <C> <C>
*Common Stocks--continued
Utilities--continued
6,400 Washington Gas Light Co. $ 174,000
8,100 Washington Water Power Co. 186,300
2,600 (a) West TeleServices Corp. 42,575
3,000 Western Gas Resources, Inc. 56,250
10,400 (a) Western Wireless Corp., Class A 202,800
4,900 (a) WinStar Communications, Inc. 190,488
1 (a) WorldCom, Inc. 21
1,500 Yankee Energy Systems, Inc. 35,505
------------
Total 9,761,885
------------
Total Common Stocks (identified cost $95,656,027) $138,107,753
============
Principal
Amount Value
(b) Short-Term U.S. Government Obligation--0.5%
$700,000 United States Treasury Bill, 6/18/1998
(at amortized cost) 695,399
------------
Total Investments (identified cost $96,351,426) (c) $138,803,152
============
</TABLE>
* The fund purchases Index futures contracts to efficiently manage cash flows
resulting from shareholder purchases and redemptions, dividend and capital
gain payments to shareholders and corporate actions while maintaining
exposure to the Index and minimizing trading costs. The total market value of
open Index futures contracts is $15,340,500 at April 30, 1998, which
represents 10.1% of net assets. Taking into consideration these open Index
futures contracts, the fund's effective total exposure to the Index is
100.9%.
(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 cost of investments for federal tax purposes amounts to $96,351,426. The
net unrealized appreciation of investments on a federal tax basis amounts to
$42,451,726 which is comprised of $47,359,084 appreciation and $4,907,358
depreciation at April 30, 1998.
Note: The categories of investments are shown as a percentage of net assets
($152,178,005) at April 30, 1998.
The following acronyms are used throughout this portfolio:
PLC--Public Limited Company
REIT--Real Estate Investment Trust
(See Notes which are an integral part of the Financial Statements)
STATEMENT OF ASSETS AND LIABILITIES
Federated Mini-Cap Fund
April 30, 1998 (unaudited)
<TABLE>
<CAPTION>
Assets:
<S> <C> <C>
Total investments in securities, at value (identified cost and tax cost $96,351,426) $138,803,152
Cash 436,492
Cash in Other Banks 106,200
Income receivable 108,340
Receivable for investments sold 13,702,593
Receivable for shares sold 233,393
Receivable for daily variation margin 235,887
-------------
Total assets 153,626,057
Liabilities:
Payable for investments purchased $ 1,441,359
Payable for shares redeemed (6,290)
Payable for taxes withheld 13
Accrued expenses 12,970
------------
Total liabilities 1,448,052
-------------
Net Assets for 9,055,605 shares outstanding $152,178,005
-------------
Net Assets Consist of:
Paid in capital $105,106,607
Net unrealized appreciation of investments and futures contracts 42,728,033
Accumulated net realized gain on investments and futures contracts 4,298,013
Distributions in excess of net investment income 45,352
-------------
Total Net Assets $152,178,005
-------------
Net Asset Value, Offering Price and Redemption Proceeds Per Share:
Institutional Shares:
$151,945,391 / 9,041,754 shares outstanding $16.80
-------------
Class C Shares:
Net Asset Value, Offering Price and Redemption Proceeds Per Share: $16.79
-------------
$232,614 / 13,851 shares outstanding $16.79
-------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
STATEMENT OF OPERATIONS
Federated Mini-Cap Fund
Six Months Ended April 30, 1998 (unaudited)
<TABLE>
<CAPTION>
Investment Income:
<S> <C> <C>
Dividends $ 850,253
Interest 339,218
-----------
Total income 1,189,471
Expenses:
Investment advisory fee $ 371,265
Custodian fees 35,312
Transfer and dividend disbursing agent fees and expenses 20,187
Directors'/Trustees' fees 2,806
Auditing fees 7,421
Legal fees 1,780
Portfolio accounting fees 29,151
Distribution services fee--Class C Shares 315
Shareholder services fee--Institutional Shares 185,527
Shareholder services fee--Class C Shares 105
Share registration costs 13,728
Printing and postage 24,797
Insurance premiums 1,267
Taxes 3,199
Miscellaneous 4,647
-----------
Total expenses 701,507
Waivers --
Waiver of shareholder services fee--Institutional Shares (96,474)
-----------
Net expenses 605,033
-----------
Net investment income 584,438
-----------
Realized and Unrealized Gain (Loss) on Investments and Futures Contracts:
Net realized gain on investments and futures contracts 4,414,570
Net change in unrealized appreciation (depreciation) of investments and futures contracts 11,535,947
-----------
Net realized and unrealized gain on investments and futures contracts 15,950,517
-----------
Change in net assets resulting from operations $16,534,955
-----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
STATEMENT OF CHANGES IN NET ASSETS
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Six Months
Ended
(unaudited) Year Ended
April 30, 1998 October 31, 1997
-------------- ----------------
<S> <C> <C>
Increase (Decrease) in Net Assets:
Operations--
Net investment income $ 584,438 $ 1,331,787
Net realized gain on investments and futures contracts ($4,414,570 and $12,354,400
respectively, as computed for federal tax purposes) 4,414,570 12,898,401
Net change in unrealized appreciation on investments and futures contracts 11,535,947 17,302,166
-------------- ----------------
Change in net assets resulting from operations 16,534,955 31,532,354
-------------- ----------------
Distributions to Shareholders--
Distributions from net investment income
Institutional Shares (737,684) (1,249,969)
Class C Shares (137) --
Distributions from net realized gains and futures contracts
Institutional Shares (12,347,168) (12,838,180)
Class C Shares (3,988) --
-------------- ----------------
Change in net assets resulting from distributions to shareholders (13,088,977) (14,088,149)
-------------- ----------------
Share Transactions--
Proceeds from sale of shares 115,546,969 164,053,525
Net asset value of shares issued to shareholders in payment of distributions declared 6,085,282 6,372,039
Cost of shares redeemed (123,370,137) (182,089,956)
-------------- ----------------
Change in net assets resulting from share transactions (1,737,886) (11,664,392)
-------------- ----------------
Change in net assets 1,708,092 5,779,813
Net Assets:
Beginning of period 150,469,913 144,690,100
-------------- ----------------
End of period (including undistributed net investment
income of $45,352 and $198,735, respectively) $ 152,178,005 $ 150,469,913
-------------- ----------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FINANCIAL HIGHLIGHTS--INSTITUTIONAL SHARES
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months
Ended
(unaudited) Year Ended October 31,
April 30, --------------------------------------------------
1998 1997 1996 1995 1994 1993
--------- -------- -------- -------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 16.68 $ 14.39 $ 13.33 $ 11.65 $ 12.66 $ 10.39
Income from investment operations
Net investment income 0.06 0.15 0.16 0.15 0.11 0.17
Net realized and unrealized gain (loss) on
investments and futures 1.60 3.51 1.78 1.74 (0.23) 2.27
--------- -------- -------- -------- ------- -------
Total from investment operations 1.66 3.66 1.94 1.89 (0.12) 2.44
--------- -------- -------- -------- ------- -------
Less distributions
Distributions from net investment income (0.08) (0.14) (0.16) (0.14) (0.11) (0.17)
Distributions from net realized gain (loss) on
investments and futures contracts (1.46) (1.23) (0.72) (0.07) (0.78) --
--------- -------- -------- -------- ------- -------
Total distributions (1.54) (1.37) (0.88) (0.21) (0.89) (0.17)
--------- -------- -------- -------- ------- -------
Net asset value, end of period $ 16.80 $ 16.68 $ 14.39 $ 13.33 $ 11.65 $ 12.66
--------- -------- -------- -------- ------- -------
Total return (a) 11.21% 27.54% 15.09% 16.44% (0.91%) 23.73%
Ratios to average net assets
Expenses 0.81%* 0.76% 0.74% 0.75% 0.73% 0.37%
Net investment income 0.79%* 0.96% 1.14% 1.23% 0.98% 1.48%
Expense waiver/reimbursement (b) 0.13%* 0.18% 0.23% 0.05% 0.11% 0.86%
Supplemental data
Net assets, end of period (000 omitted) $151,945 $150,470 $144,690 $132,399 $98,441 $76,139
Average commission rate paid (c) $ 0.0378 $ 0.0398 $ 0.0277 -- -- --
Portfolio turnover 11% 52% 42% 42% 32% 48%
</TABLE>
* Computed on an annualized basis.
(a) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(b) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(c) 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)
FINANCIAL HIGHLIGHTS--CLASS C SHARES
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended
(unaudited)
April 30, 1998 (a)
------------------
<S> <C>
Net asset value, beginning of period $ 16.75
Income from investment operations
Net investment income --
Net realized and unrealized gain on investments and futures contracts 1.53
----------
Total from investment operations 1.53
----------
Less distributions
Distributions from net investment income (0.03)
Distributions from net realized gain (loss) on investments and futures contracts (1.46)
----------
Total distributions (1.49)
----------
Net asset value, end of period $ 16.79
----------
Total return (b) 10.36%
Ratios to average net assets
Expenses 1.71%*
Net investment income (0.01%)*
Expense waiver/reimbursement (c) 0.00%*
Supplemental data
Net assets, end of period (000 omitted) $ 233
Average commission rate paid (d) $ 0.0378
Portfolio turnover 11%
</TABLE>
* Computed on an annualized basis.
(a) Reflects operations for the period from November 10, 1997 (commencement of
operations) to April 30, 1998.
(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)
NOTES TO FINANCIAL STATEMENTS
Federated Mini-Cap Fund
April 30, 1998 (unaudited)
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.
Effective November 3, 1997, the Board of Trustees (the "Trustees") established a
new class of shares named Class C Shares, in addition to the Institutional
Shares already offered. The investment objective of the Fund is to provide
investment results that generally correspond to the aggregate price and dividend
performance of publicly traded common stocks comprising the small capitalization
sector of the United States equity market.
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 Trustees. Risks may arise from the
potential inability of counterparties to honor the terms of the repurchase
agreement. Accordingly, the Fund could receive less than the repurchase price on
the sale of collateral securities.
Investment Income, Expenses and Distributions
Interest income and expenses are accrued daily. Bond premium and discount, if
applicable, are amortized as required by the Internal Revenue Code, as amended
(the "Code"). Dividend income and distributions to shareholders are recorded on
the ex-dividend date.
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.
Federated Mini-Cap Fund
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, 1998, the Fund had realized gains on futures
contracts as follows $833,663.
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, 1998, the Fund had outstanding futures contracts as set forth
below:
<TABLE>
<CAPTION>
Unrealized
Contracts to Appreciation
Expiration Date Deliver/Receive Position (Depreciation)
- --------------- --------------- -------- --------------
<S> <C> <C> <C>
June 1998 63 Russell 2000 Long $276,307
</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.
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>
Period Ended Year Ended
April 30, 1998 October 31, 1997
-------------------------- ----------------------------
Institutional Shares Shares Amount Shares Amount
--------- ------------- ---------- -------------
<S> <C> <C> <C> <C>
Shares sold 7,264,139 $ 115,306,226 10,866,696 $ 164,053,525
Shares issued to shareholders in payment
of distributions declared 408,795 6,081,180 466,620 6,372,039
Shares redeemed (7,652,322) (123,351,855) (12,365,954) (182,089,956)
--------- ------------- ---------- -------------
Net change resulting from Institutional Share transactions 20,612 $ (1,964,449) (1,032,638) $ (11,664,392)
--------- ------------- ---------- -------------
</TABLE>
Federated Mini-Cap Fund
<TABLE>
<CAPTION>
Period Ended Year Ended
April 30, 1998(a) October 31, 1997
-------------------- --------------------------
Class C Shares Shares Amount Shares Amount
------- ----------- ---------- -------------
<S> <C> <C> <C> <C>
Shares sold 14,697 $ 240,743 -- $ --
Shares issued to shareholders in payment
of distributions declared 277 4,102 -- --
Shares redeemed (1,123) (18,282) -- --
------- ----------- ---------- -------------
Net change resulting from Class C Share transactions 13,851 $ 226,563 -- $ --
------- ----------- ---------- -------------
Net change resulting from share transactions 34,463 $(1,737,886) (1,032,638) $(11,664,392)
------- ----------- ---------- -------------
</TABLE>
(a) For the period from November 10, 1997 (commencement of operations) to
April 30, 1998.
Investment Advisory Fee and Other Transactions with Affiliates
Management Fee
Federated Management, the Fund's manager (the "Manager"), receives for its
services an annual investment advisory 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 Northern
Trust Quantitative Investment Advisors, Inc. (the "Sub-Manager"), the Sub-
Manager receives an annual fee from the Manager equal to.065% of the Fund's
average daily net assets. In addition, the Sub-Manager may voluntarily choose to
reduce itscompensation.
Distribution Services Fee
The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1
under the Act. Under the terms of the Plan, the Fund will compensate Federated
Securities Corp. ("FSC") the principal distributor, from the net assets of the
Fund to finance activities intended to result in the sale of the Fund's Class C
shares. The Plan provides that the Fund may incur distribution expenses
according to the following schedule annually, to compensate FSC.
<TABLE>
<CAPTION>
Federated Mini-Cap Fund
- -------------------------------------
percentage of
average daily net
Share Class Name assets of class
- ---------------- ------------------
<S> <C>
Class C Shares 0.75%
</TABLE>
Shareholder Services Fee
Under the terms of a Shareholder Services Agreement with Federated Shareholder
Services ("FSS"), the Fund will pay FSS up to 0.25% of average daily net assets
of the Fund shares for the period. The fee paid to FSS is used to finance
certain services for shareholders and to maintain shareholder accounts. FSS may
voluntarily choose to waive any portion of its fee. FSS can modify or terminate
this voluntary waiver at any time at its sole discretion.
Transfer and Dividend Disbursing Agent Fees and Expenses
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.
Federated Mini-Cap Fund
General
Certain Officers and Trustees of the Trust are Officers and Directors or
Trustees of the above companies.
Year 2000 Issue
Similar to other financial organizations, the Fund could be adversely affected
if the computer systems used by the Fund's service providers do not properly
process and calculate date-related information and data from and after January
1, 2000. The Fund's Manager and administrator are taking measures that they
believe are reasonably designed to address the Year 2000 issue with respect to
computer systems that they use and to obtain reasonable assurances that
comparable steps are being taken by each of the Fund's other service providers.
At this time, however, there can be no assurance that these steps will be
sufficient to avoid any adverse impact to the Fund.
Investment Transactions
Purchases and sales of investments, excluding short-term securities, for the
period ended April 30, 1998, were as follows:
<TABLE>
<CAPTION>
<S> <C>
Purchases $14,610,800
-----------
Sales $31,150,599
-----------
</TABLE>
TRUSTEES
John F. Donahue
Thomas G. Bigley
John T. Conroy, Jr.
Nicholas P. Constantakis
William J. Copeland
J. Christopher Donahue
James E. Dowd
Lawrence D. Ellis, M.D.
Edward L. Flaherty, Jr.
Peter E. Madden
John E. Murray, Jr.
Wesley W. Posvar
Marjorie P. Smuts
OFFICERS
John F. Donahue
Chairman
Glen R. Johnson
President
J. Christopher Donahue
Executive Vice President
Edward C. Gonzales
Executive Vice President
John W. McGonigle
Executive Vice President, Treasurer
and Secretary
Richard B. Fisher
Vice President
Nicholas J. Seitanakis
Assistant Secretary
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 Investors Logo]
Federated Mini-Cap Fund
Semi-Annual Report
to Shareholders
April 30, 1998
Cusip 31420E304
Cusip 31420E601
3052012 (6/98)
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 period from
November 1, 1997 through April 30, 1998. The report begins with an investment
review, followed by the fund's portfolio 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.*
During the six-month reporting period, the fund produced a total return of
22.21% for Institutional Shares and 22.04% for Institutional Service Shares.**
Institutional Shares paid dividend income distributions totaling $0.15 per share
and capital gains distributions totaling $0.62 per share, while net asset value
increased by $3.49. Institutional Service Shares paid dividend income
distributions totaling $0.13 per share and capital gains distributions totaling
$0.62 per share, while net asset value increased by $3.48.
During the period from November 10, 1997 (date of inception) through April 30,
1998, the fund's Class C Shares produced a totalreturn of 20.87%.** Class C
Shares paid dividend income distributions totaling $0.09 per share and capital
gains distributions totaling $0.62 per share, while net asset value increased by
$3.32.
The fund's total net assets reached $1.9 billion on the last day of the
reporting period.
Thank you for putting your money to work in the broad long-term growth potential
of stocks through the diversification and professional management of Federated
Max-Cap Fund. As always, we invite your comments and suggestions.
Sincerely,
/s/ Glen R. Johnson
- --------------------
Glen R. Johnson
President
June 15, 1998
* Federated 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," "S&P," "S&P 500," Standard
& Poor's 500," and "500" are trademarks of Standard & Poor's ("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 S&P. 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 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.
INVESTMENT REVIEW
The fund's total returns for Institutional Shares and Institutional Service
Shares for the six months ended April 30, 1998 were 22.21% and 22.04%,
respectively.* The total return of Class C Shares was 20.87% from inception
(11/10/97) through April 30, 1998.*
The target index, the Standard & Poor's 500 Index (the "Index") had a total
return of 22.50% 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 strong climb during the last six months
despite concerns over the problems in Asia, possible increases in interest rates
and weaker corporate earnings. These issues troubled the market in late 1997 and
early 1998, but investors regained confidence, causing the market to surge early
in 1998 to all-time highs.
The U.S. economy, the underlying support for the stock market, shows many signs
of strength: 1) U.S. economic growth, as measured by gross domestic product
("GDP"), has been growing at a historically strong 4% per year during the last
six months; 2) price inflation, as measured by the Consumer Price Index ("CPI"),
has been running at 1-2% per year, well below historical averages; and 3) the
U.S. fiscal budget has begun to indicate a surplus for the first time in many
years, causing talk of possible tax cuts. Other positive economic indicators
include the U.S. dollar strengthening versus other foreign currencies, lower
long-term interest rates, lower oil/energy prices, and record-low unemployment.
Along with this very favorable economic background, a cut in capital gains taxes
in 1997 supports investors' enthusiasm for U.S. stocks, despite slower corporate
earnings growth. Most investors continue to be bullish and are channeling money
into the stock market through equity mutual funds with record-setting cash
inflows.
However, investors still have reasons for caution. Although the "Asian Flu," or
downturn in Asian financial markets, has subsided somewhat, companies with
significant sales in Asia may suffer earnings declines. Also, the Federal
Reserve Board may increase short-term interest rates to offset wage inflation
pressures. Finally, some strategists are warning that the inability of computers
worldwide to handle the transition to the Year 2000, or the cost to fix the
problem, may trigger earnings problems.
Large company stocks continue to outperform stocks of medium and smaller-size
companies. There may be a stronger demand for large "name brand" companies which
have the ability to take better advantage of a more-integrated global market.
However, some strategists believe that small company stocks will again be in
favor and currently could be selling at bargain prices.
During the last six months, electronic defense, automobiles, and retail/apparel
were among the strongest performing sectors while oil and gas exploration,
metals, and tobacco 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.
SHAREHOLDER MEETING RESULTS
A Special Meeting of shareholders of Federated Max-Cap Fund was held on February
13, 1998. On December 16, 1997, the record date for shareholders voting at the
meeting, there were 73,869,952 total outstanding shares. The following items
were considered by shareholders and the results of their voting were as follows:
<TABLE>
<CAPTION>
Abstentions and Withheld
Agenda Item For Against Broker Non-Votes Authority to Vote
- -------------------------------------------------- ------------ --------- ------------------ ------------------
<S> <C> <C> <C> <C>
1. Election of Trustees*
Thomas G. Bigley 43,679,548 107,734
John E. Murray, Jr. 43,679,548 107,734
2. Approval of a sub-management contract between Federated Management and ANB
Investment Management and Trust Company (which changed its name to Northern
Trust Quantitative Investment
Advisors, Inc.) 59,523,212 227,579 598,650
</TABLE>
* The following Trustees of the Trust continued their terms as Trustees of the
Trust: John F. Donahue, J. Christopher Donahue, John T. Conroy, Jr., William
J. Copeland, James E. Dowd, Lawrence D. Ellis, M.D., Edward L. Flaherty, J r.,
Peter E. Madden, Wesley W. Posvar, and Marjorie P. Smuts
PORTFOLIO OF INVESTMENTS
Federated Max-Cap Fund
April 30, 1998 (unaudited)
<TABLE>
<CAPTION>
Shares Value
- ------------- -----------
(a) Common Stocks--96.2%
Basic Industry--4.9%
<C> <S> <C>
8,700 ASARCO, Inc. $ 216,956
25,200 Air Products & Chemicals, Inc. 2,187,675
48,700 Alcan Aluminum, Ltd. 1,582,750
41,992 Allegheny Teledyne, Inc. 1,065,547
37,000 Aluminum Co. of America 2,867,500
122,493 Archer-Daniels-Midland Co. 2,633,600
23,200 (b)Armco, Inc. 159,500
22,000 Avery Dennison Corp. 1,152,250
6,500 Ball Corp. 251,063
79,900 Barrick Gold Corp. 1,792,756
49,300 Battle Mountain Gold Co. 354,344
11,400 Bemis Co., Inc. 507,300
24,200 (b)Bethlehem Steel Corp. 376,613
12,100 Boise Cascade Corp. 454,506
20,600 Champion International Corp. 1,108,538
49,600 Corning, Inc. 1,984,000
27,500 Crown Cork & Seal Co., Inc. 1,431,719
20,050 Cyprus Amax Minerals 345,863
48,600 Dow Chemical Co. 4,699,013
242,600 Du Pont (E.I.) de Nemours & Co. 17,664,313
16,825 Eastman Chemical Co. 1,156,719
27,680 Ecolab, Inc. 877,110
30,962 Engelhard Corp. 654,072
44,800 Fort James Corp. 2,223,200
41,500 Freeport-McMoRan Copper & Gold, Inc., Class B 780,719
19,900 Georgia-Pacific Corp. 1,536,031
15,400 Goodrich (B.F.) Co. 828,713
15,900 (b)Grace (W.R.) & Co. 322,969
12,800 Great Lakes Chemical Corp. 643,200
20,700 Hercules, Inc. 989,719
31,500 Homestake Mining Co. 366,188
35,800 Inco Ltd. 628,738
10,500 Inland Steel Industries, Inc. 307,781
Federated Max-Cap Fund
Shares Value
---------- -----------
(a) Common Stocks--continued
Basic Industry--continued
<C> <S> <C>
64,776 International Paper Co. $ 3,380,498
23,500 Louisiana-Pacific Corp. 514,063
22,500 Mead Corp. 779,063
9,300 Millipore Corp. 320,850
127,200 Monsanto Co. 6,725,700
28,000 Morton International, Inc. 896,000
14,300 Nalco Chemical Co. 568,425
33,557 Newmont Mining Corp. 1,080,116
18,800 Nucor Corporation 1,126,825
11,500 Owens Corning 477,969
30,100 (b)Owens-Illinois, Inc. 1,190,831
38,200 PPG Industries, Inc. 2,700,263
26,733 Pall Corp. 524,635
12,600 Phelps Dodge Corp. 845,775
42,420 Pioneer Hi-Bred International 1,601,355
53,000 Placer Dome, Inc. 781,750
6,200 Potlatch Corp. 293,725
33,800 Praxair, Inc. 1,700,563
15,800 Reynolds Metals Co. 1,042,800
13,100 Rohm & Haas Co. 1,412,344
17,700 (b)Sealed Air Corp. 1,109,569
37,100 Sherwin-Williams Co. 1,321,688
21,500 Sigma-Aldrich Corp. 857,313
4,300 Springs Industries, Inc., Class A 236,769
21,308 Stone Container Corp. 348,919
12,100 Temple-Inland, Inc. 781,206
13,100 Tupperware Corp. 354,519
18,520 USX-U.S. Steel Group, Inc. 724,595
14,900 Union Camp Corp. 899,588
26,400 Union Carbide Corp. 1,280,400
21,850 Westvaco Corp. 662,328
42,800 Weyerhaeuser Co. 2,466,350
23,800 Willamette Industries, Inc. 923,738
20,750 Worthington Industries, Inc. 372,852
--------------
Total 94,454,349
--------------
Federated Max-Cap Fund
Shares Value
- ------------ -----------
(a) Common Stocks--continued
Consumer Durables--2.8%
<C> <S> <C>
20,400 Black & Decker Corp. $ 1,053,150
5,300 Briggs & Stratton Corp. 239,825
21,400 Brunswick Corp. 695,500
12,700 Centex Corp. 441,325
139,068 Chrysler Corp. 5,588,795
16,900 Cooper Tire & Rubber Co. 403,488
22,500 Dana Corp. 1,330,313
69,700 Eastman Kodak Co. 5,031,469
16,500 Eaton Corp. 1,524,188
13,500 Echlin, Inc. 638,719
7,800 Fleetwood Enterprises, Inc. 360,263
257,300 Ford Motor Co. 11,787,556
151,700 General Motors Corp. 10,220,788
38,350 Genuine Parts Co. 1,380,600
33,500 Goodyear Tire & Rubber Co. 2,345,000
27,100 Hasbro, Inc. 997,619
8,353 Jostens, Inc. 197,862
8,400 Kaufman & Broad Homes Corp. 244,125
62,325 Mattel, Inc. 2,387,827
20,400 Maytag Corp. 1,050,600
34,100 Newell Co. 1,647,456
9,600 Polaroid Corp. 422,400
4,600 Pulte Corp. 235,463
32,100 Rubbermaid, Inc. 918,863
13,100 Snap-On Tools Corp. 554,294
19,100 Stanley Works 977,681
26,400 TRW, Inc. 1,394,250
16,100 Whirlpool Corp. 1,159,200
--------------
Total 55,228,619
--------------
Consumer Non-Durables--9.9%
12,200 Alberto-Culver Co., Class B 358,375
15,600 American Greetings Corp., Class A 721,500
105,100 Anheuser-Busch Cos., Inc. 4,814,894
28,300 Avon Products, Inc. 2,325,906
61,600 BestFoods 3,380,300
</TABLE>
Federated Max-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ----------- -----------
(a) Common Stocks--continued
Consumer Non-Durables--continued
<C> <S> <C>
14,800 Brown-Forman Corp., Class B $ 838,050
97,900 Campbell Soup Co. 5,023,494
22,200 Clorox Co. 1,862,025
530,300 Coca-Cola Co. 40,236,513
63,400 Colgate-Palmolive Co. 5,686,188
102,000 ConAgra, Inc. 2,977,125
7,900 Coors Adolph Co., Class B 282,425
36,800 Fortune Brands, Inc. 1,357,000
15,700 (b)Fruit of the Loom, Inc., Class A 586,788
33,900 General Mills, Inc. 2,290,369
120,100 Gillette Co. 13,864,044
78,400 Heinz (H.J.) Co. 4,272,800
30,600 Hershey Foods Corp. 2,241,450
23,400 International Flavors & Fragrances, Inc. 1,145,138
88,100 Kellogg Co. 3,634,125
119,148 Kimberly-Clark Corp. 6,046,761
14,300 Liz Claiborne, Inc. 703,381
62,300 Nike, Inc., Class B 2,974,825
325,300 PepsiCo, Inc. 12,910,344
519,900 Philip Morris Cos., Inc. 19,398,769
287,800 Procter & Gamble Co. 23,653,563
29,700 Quaker Oats Co. 1,544,400
23,000 Ralston Purina Co. 2,438,000
12,100 (b)Reebok International Ltd. 355,438
7,800 Russell Corp. 210,600
101,500 Sara Lee Corp. 6,045,594
76,400 Seagram Co. Ltd. 3,261,325
39,500 UST, Inc. 1,088,719
137,300 Unilever N.V., ADR 10,246,013
26,200 V.F. Corp. 1,362,400
24,900 Wrigley (Wm.), Jr. Co. 2,216,100
--------------
Total 192,354,741
--------------
Energy Minerals--7.5%
19,700 Amerada-Hess Corp. 1,132,750
208,800 Amoco Corp. 9,239,400
</TABLE>
Federated Max-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ------------ -----------
(a) Common Stocks--continued
Energy Minerals--continued
<C> <S> <C>
12,800 Anadarko Petroleum Corp. $ 939,200
20,500 Apache Corp. 725,188
16,100 Ashland, Inc. 851,288
68,800 Atlantic Richfield Co. 5,366,400
36,300 Baker Hughes, Inc. 1,470,150
37,865 Burlington Resources, Inc. 1,779,655
140,800 Chevron Corp. 11,642,400
528,800 Exxon Corp. 38,569,350
56,200 Halliburton Co. 3,091,000
10,800 Helmerich & Payne, Inc. 329,400
10,200 Kerr-McGee Corp. 673,200
168,200 Mobil Corp. 13,287,800
72,600 Occidental Petroleum Corp. 2,137,163
22,700 (b)Oryx Energy Co. 593,038
10,200 Pennzoil Co. 653,438
56,400 Phillips Petroleum Co. 2,795,325
18,600 (b)Rowan Companies, Inc. 547,538
459,800 Royal Dutch Petroleum Co., ADR 26,007,438
106,700 Schlumberger Ltd. 8,842,763
15,337 Sun Co., Inc. 620,190
117,500 Texaco, Inc. 7,226,250
61,800 USX Corp. 2,213,213
54,394 Union Pacific Resources Group, Inc. 1,298,657
52,900 Unocal Corp. 2,165,594
11,700 (b)Western Atlas, Inc. 924,300
--------------
Total 145,122,088
--------------
Finance--16.7%
35,950 AON Corp. 2,318,775
23,500 Ahmanson (H.F.) & Co. 1,791,875
91,905 Allstate Corp. 8,845,856
99,700 American Express Co. 10,169,400
54,430 American General Corp. 3,626,399
150,389 American International Group, Inc. 19,785,553
74,266 Associates First Capital Corp., Class A 5,551,384
30,600 BB&T Corp. 2,057,850
</TABLE>
Federated Max-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ------------- -----------
(a) Common Stocks--continued
Finance--continued
<C> <S> <C>
138,400 Banc One Corp. $ 8,139,632
80,800 Bank of New York Co., Inc. 4,772,250
148,652 BankAmerica Corp. 12,635,420
31,200 BankBoston Corp. 3,367,650
21,000 Bankers Trust New York Corp. 2,711,625
11,400 Beneficial Corp. 1,486,275
22,500 Block (H&R), Inc. 1,012,500
15,900 CIGNA Corp. 3,290,306
90,370 Chase Manhattan Corp. 12,521,893
36,500 Chubb Corp. 2,881,219
11,800 Cincinnati Financial Corp. 1,503,025
98,000 Citicorp 14,749,000
33,750 Comerica, Inc. 2,259,141
40,400 Conseco, Inc. 2,004,850
23,300 Countrywide Credit Industries, Inc. 1,127,138
149,000 Federal Home Loan Mortgage Corp. 6,900,563
227,500 Federal National Mortgage Association 13,621,563
49,900 Fifth Third Bancorp 2,744,500
207,398 First Union Corp. 12,521,654
58,410 Fleet Financial Group, Inc. 5,045,164
45,600 Franklin Resources, Inc. 2,439,600
16,800 General RE Corp. 3,755,850
12,200 Golden West Financial Corp. 1,284,813
29,200 Green Tree Financial Corp. 1,189,900
25,300 Hartford Financial Services Group, Inc. 2,801,975
22,900 Household International, Inc. 3,009,919
41,000 Huntington Bancshares, Inc. 1,458,063
38,100 J.P. Morgan & Co., Inc. 5,000,625
22,837 Jefferson-Pilot Corp. 1,340,246
94,200 KeyCorp 3,738,563
21,900 Lehman Brothers Holdings, Inc. 1,556,269
21,900 Lincoln National Corp. 1,944,994
21,000 MBIA Insurance Corporation 1,567,125
107,518 MBNA Corp. 3,642,172
24,500 MGIC Investment Corp. 1,543,500
</TABLE>
Federated Max-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ----------- -----------
(a) Common Stocks--continued
Finance--continued
<C> <S> <C>
36,400 Marsh & McLennan Cos., Inc. $ 3,316,950
54,600 Mellon Bank Corp. 3,931,200
28,100 Mercantile Bancorporation, Inc. 1,556,038
71,400 Merrill Lynch & Co., Inc. 6,265,350
127,057 Morgan Stanley, Dean Witter & Co. 10,021,621
70,400 National City Corp. 4,875,200
201,583 NationsBank Corp. 15,269,912
162,000 Norwest Corp. 6,429,375
65,400 PNC Bank Corp. 3,952,613
15,500 Progressive Corp., OH 2,099,281
20,400 Providian Financial Corp. 1,227,825
11,700 Republic New York Corp. 1,564,875
30,300 SAFECO Corp. 1,513,106
56,950 Schwab (Charles) Corp. 1,993,250
24,727 St. Paul Cos., Inc. 2,095,598
34,500 State Street Corp. 2,466,750
37,700 Summit Bancorp 1,889,713
41,850 SunAmerica, Inc. 2,089,884
45,200 SunTrust Banks, Inc. 3,680,975
37,500 Synovus Financial Corp. 1,319,531
30,000 Torchmark Corp. 1,336,875
13,500 Transamerica Corp. 1,559,250
245,851 Travelers Group, Inc. 15,042,977
52,655 U.S. Bancorp, Inc. 6,687,185
29,800 UNUM Corp. 1,601,750
44,200 Wachovia Corp. 3,754,238
55,200 Washington Mutual, Inc. 3,867,450
18,566 Wells Fargo & Co. 6,841,571
--------------
Total 323,966,417
--------------
Health Care--11.3%
164,000 Abbott Laboratories 11,992,500
31,855 Aetna Services, Inc. 2,574,282
14,000 Allergan, Inc. 581,875
18,300 (b)Alza Corp. 877,256
139,300 American Home Products Corp. 12,972,313
</TABLE>
Federated Max-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ------------ -----------
(a) Common Stocks--continued
Health Care--continued
<C> <S> <C>
56,400 (b)Amgen, Inc. $ 3,362,850
12,200 Bard (C.R.), Inc. 436,913
11,800 Bausch & Lomb, Inc. 583,363
60,100 Baxter International, Inc. 3,331,794
26,200 Becton, Dickinson & Co. 1,824,175
24,000 Biomet, Inc. 720,000
41,700 (b)Boston Scientific Corp. 3,015,431
213,200 Bristol-Myers Squibb Co. 22,572,550
23,500 Cardinal Health, Inc. 2,261,875
138,807 Columbia/HCA Healthcare Corp. 4,571,956
32,300 Guidant Corp. 2,160,063
45,200 HBO & Co. 2,703,525
84,400 (b)Healthsouth Corp. 2,547,825
35,100 (b)Humana, Inc. 947,700
288,400 Johnson & Johnson 20,584,550
261 (b)Ligand Pharmaceuticals, Inc., Class B 3,786
536 Ligand Pharmaceuticals, Inc., Warrants 4,690
237,900 Lilly (Eli) & Co. 16,548,919
13,650 Manor Care, Inc. 478,603
100,500 Medtronic, Inc. 5,288,813
256,900 Merck & Co., Inc. 30,956,450
277,300 Pfizer, Inc. 31,560,206
108,855 Pharmacia & Upjohn, Inc. 4,578,713
157,000 Schering Plough Corp. 12,579,625
5,400 Shared Medical Systems Corp. 393,863
18,441 (b)St. Jude Medical, Inc. 653,517
65,700 (b)Tenet Healthcare Corp. 2,459,644
16,200 U.S. Surgical Corp. 510,300
40,400 United Healthcare Corp. 2,838,100
58,400 Warner-Lambert Co. 11,048,550
--------------
Total 220,526,575
--------------
Producer Manufacturing--7.2%
6,000 Aeroquip-Vickers, Inc. 381,375
121,000 Allied-Signal, Inc. 5,301,313
8,700 Armstrong World Industries, Inc. 746,025
</TABLE>
Federated Max-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ------------ -----------
(a) Common Stocks--continued
Producer Manufacturing--continued
<C> <S> <C>
16,100 Case Corp. $ 1,023,356
79,800 Caterpillar, Inc. 4,543,613
8,600 Cincinnati Milacron, Inc. 267,138
25,900 Cooper Industries, Inc. 1,732,063
9,850 Crane Co. 530,053
8,200 Cummins Engine Co., Inc. 445,875
53,500 Deere & Co. 3,126,406
47,700 Dover Corp. 1,884,150
37,600 Dresser Industries, Inc. 1,988,100
95,100 Emerson Electric Co. 6,050,738
7,900 (b)FMC Corp. 612,744
701,800 General Electric Co. 59,740,668
10,700 General Signal Corp. 470,800
10,278 Harnischfeger Industries, Inc. 290,354
27,300 Honeywell, Inc. 2,542,313
25,400 ITT Industries, Inc. 925,513
53,500 Illinois Tool Works, Inc. 3,771,750
35,500 Ingersoll-Rand Co. 1,635,219
18,000 Johnson Controls, Inc. 1,068,750
24,700 Loews Corp. 2,471,544
35,400 Masco Corp. 2,053,200
12,100 McDermott International, Inc. 500,638
87,600 Minnesota Mining & Manufacturing Co. 8,267,250
1,748 NACCO Industries, Inc., Class A 293,992
9,200 National Service Industries, Inc. 497,950
15,570 (b)Navistar International Corp. 465,154
16,680 PACCAR, Inc. 990,375
23,800 Parker-Hannifin Corp. 1,062,075
62,100 Pitney Bowes, Inc. 2,980,800
18,200 Raychem Corp. 731,413
36,500 Tenneco, Inc. 1,571,781
35,200 Textron, Inc. 2,754,400
32,400 (b)Thermo Electron Corp. 1,289,925
11,800 Thomas & Betts Corp. 688,825
13,500 Timken Co. 539,156
</TABLE>
Federated Max-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ------------ -----------
(a) Common Stocks--continued
Producer Manufacturing--continued
<C> <S> <C>
122,700 Tyco International, Ltd. $ 6,687,150
69,900 Xerox Corp. 7,933,650
--------------
Total 140,857,594
--------------
Retail Trade--4.9%
52,700 Albertsons, Inc. 2,635,000
58,600 American Stores Co. 1,406,400
32,600 (b)AutoZone, Inc. 984,113
41,000 CVS Corp. 3,023,750
21,200 Circuit City Stores, Inc. 861,250
23,100 (b)Consolidated Stores Corp. 924,000
45,950 (b)Costco Cos., Inc. 2,567,456
46,900 Dayton-Hudson Corp. 4,094,956
23,800 Dillards, Inc., Class A 871,675
45,000 (b)Federated Department Stores, Inc. 2,213,438
84,800 Gap (The), Inc. 4,361,900
12,900 Giant Foods, Inc., Class A 480,525
8,200 Great Atlantic & Pacific Tea Co., Inc. 255,225
15,200 Harcourt General, Inc. 793,250
156,850 Home Depot, Inc. 10,920,681
104,600 (b)K Mart Corp. 1,823,963
54,700 (b)Kroger Co., Inc. 2,290,563
58,464 Limited, Inc. 1,962,198
8,300 Longs Drug Stores Corp. 240,181
37,500 Lowe's Cos., Inc. 2,622,656
49,600 May Department Stores Co. 3,059,700
7,900 Mercantile Stores Co., Inc. 577,194
16,600 Nordstrom, Inc. 1,086,263
53,600 Penney (J.C.) Co., Inc. 3,808,950
13,600 Pep Boys-Manny Moe & Jack 295,800
55,300 Rite Aid Corp. 1,776,513
84,100 Sears, Roebuck & Co. 4,988,181
34,600 TJX Cos., Inc. 1,531,050
22,130 Tandy Corp. 1,100,968
60,900 (b)Toys `R' Us, Inc. 1,678,556
481,600 Wal-Mart Stores, Inc. 24,350,900
</TABLE>
Federated Max-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ------------ -----------
(a) Common Stocks--continued
Retail Trade--continued
<C> <S> <C>
106,200 Walgreen Co. $ 3,663,900
31,900 Winn-Dixie Stores, Inc. 1,200,238
28,900 (b)Woolworth (F.W.) Co. 664,700
--------------
Total 95,116,093
--------------
Services--5.3%
41,635 Browning-Ferris Industries, Inc. 1,420,794
151,000 CBS Corp. 5,379,375
173,729 (b)Cendant Corp. 4,343,225
26,500 (b)Clear Channel Communications, Inc. 2,497,625
34,800 Cognizant Corp. 1,790,025
31,900 Darden Restaurants, Inc. 510,400
17,400 Deluxe Corp. 582,900
144,800 Disney (Walt) Co. 18,000,450
31,300 Donnelley (R.R.) & Sons Co. 1,379,156
20,700 Dow Jones & Co. 1,007,831
36,500 Dun & Bradstreet Corp. 1,295,750
32,200 Equifax, Inc. 1,245,738
18,000 Fluor Corp. 850,500
8,700 Foster Wheeler Corp. 240,881
60,800 Gannett Co., Inc. 4,130,600
10,600 Grainger (W.W.), Inc. 1,154,738
21,650 (b)Harrah's Entertainment, Inc. 564,253
53,700 Hilton Hotels Corp. 1,715,044
28,900 Ikon Office Solutions, Inc. 699,019
27,050 Interpublic Group Cos., Inc. 1,727,819
15,800 (b)King World Productions, Inc. 421,663
17,400 Knight-Ridder, Inc. 1,014,638
70,500 Laidlaw, Inc. 982,594
54,700 (b)Marriott International, Inc. 1,805,100
147,700 McDonald's Corp. 9,138,938
21,200 McGraw-Hill Cos., Inc. 1,641,675
11,300 Meredith Corp. 485,900
38,500 (b)Mirage Resorts, Inc. 849,406
19,016 Moore Corp. Ltd. 298,314
20,600 New York Times Co., Class A 1,461,313
</TABLE>
Federated Max-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ------------ -----------
(a) Common Stocks--continued
Services--continued
<C> <S> <C>
34,700 Omnicom Group, Inc. $ 1,643,913
54,000 Service Corp. International 2,227,500
20,486 Starwood Lodging Trust 1,028,141
12,900 Super Valu Stores, Inc. 563,569
72,900 Sysco Corp. 1,735,931
124,040 Time Warner, Inc. 9,737,140
19,000 Times Mirror Co., Class A 1,162,563
26,400 Tribune Co. 1,742,400
32,530 (b)Tricon Global Restaurants, Inc. 1,032,828
130,200 (b)U.S. West Media Group 4,915,050
75,768 (b)Viacom, Inc., Class B 4,394,544
97,557 Waste Management, Inc. 3,268,160
28,300 Wendy's International, Inc. 680,969
--------------
Total 102,768,372
--------------
Technology--14.7%
76,000 (b)3Com Corp. 2,603,000
47,180 AMP, Inc. 1,854,764
15,100 Adobe System, Inc. 755,944
30,400 (b)Advanced Micro Devices, Inc. 843,600
18,962 (b)Andrew Corp. 433,756
28,500 (b)Apple Computer, Inc. 780,188
78,500 (b)Applied Materials, Inc. 2,835,813
10,000 Autodesk, Inc. 470,000
64,100 Automatic Data Processing, Inc. 4,290,694
47,100 (b)Bay Networks, Inc. 1,103,906
214,308 Boeing Co. 10,728,794
33,900 (b)Cabletron Systems, Inc. 449,175
16,400 (b)Ceridian Corp. 927,625
218,200 (b)Cisco Systems, Inc. 15,983,150
324,694 Compaq Computer Corp. 9,111,725
117,063 Computer Associates International, Inc. 6,855,473
33,400 (b)Computer Sciences Corp. 1,761,850
25,300 (b)DSC Communications Corp. 455,400
10,400 (b)Data General Corp. 158,600
140,000 (b)Dell Computer Corp. 11,305,000
</TABLE>
Federated Max-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ------------ -----------
(a) Common Stocks--continued
Technology--continued
<C> <S> <C>
31,500 (b)Digital Equipment Corp. $ 1,752,188
9,700 EG & G, Inc. 292,213
106,300 (b)EMC Corp. Mass 4,903,088
91,800 First Data Corp., Class 3,109,725
34,200 (b)Gateway 2000, Inc. 2,007,113
26,940 General Dynamics Corp. 1,138,215
31,700 (b)General Instrument Corp. 711,269
17,100 Harris Corp. 827,213
223,000 Hewlett-Packard Co. 16,794,688
350,800 Intel Corp. 28,349,025
208,500 International Business Machines Corp. 24,159,938
18,000 (b)KLA-Tencor Corp. 725,625
30,400 (b)LSI Logic Corp. 824,600
41,688 Lockheed Martin Corp. 4,643,001
279,034 Lucent Technologies, Inc. 21,241,463
15,700 Mallinckrodt, Inc. 506,325
45,400 Micron Technology, Inc. 1,410,238
522,100 (b)Microsoft Corp. 47,054,263
128,000 Motorola, Inc. 7,120,000
5,200 (b)National Semiconductor Corp. 774,400
111,600 Northern Telecom Ltd. 6,793,650
14,300 Northrop Corp. 1,511,331
75,300 (b)Novell, Inc. 753,000
210,975 (b)Oracle Corp. 5,458,978
55,000 (b)Parametric Technology Corp. 1,758,281
10,400 Perkin-Elmer Corp. 711,100
72,600 Raytheon Co., Class B 4,115,513
43,100 Rockwell International Corp. 2,410,906
17,000 Scientific-Atlanta, Inc. 405,875
52,000 (b)Seagate Technology, Inc. 1,387,750
1 (b)Siebel Systems, Inc. 35
40,300 (b)Silicon Graphics, Inc. 526,419
80,900 (b)Sun Microsystems, Inc. 3,332,069
10,800 Tektronix, Inc. 464,400
38,900 (b)Tellabs, Inc. 2,757,038
</TABLE>
Federated Max-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ----------- -----------
(a) Common Stocks--continued
Technology--continued
<C> <S> <C>
83,700 Texas Instruments, Inc. $ 5,362,031
53,500 (b)Unisys Corp. 1,200,406
50,000 United Technologies Corp. 4,921,875
--------------
Total 285,923,704
--------------
Transportation--1.1%
19,500 (b)AMR Corp. 2,971,313
33,511 Burlington Northern Santa Fe 3,317,589
46,800 CSX Corp. 2,457,000
16,000 Delta Air Lines, Inc. 1,860,000
31,440 (b)FDX Corp. 2,137,920
80,900 Norfolk Southern Corp. 2,705,094
16,400 Ryder Systems, Inc. 570,925
47,300 Southwest Airlines Co. 1,297,794
19,600 (b)USAir Group, Inc. 1,394,050
53,000 Union Pacific Corp. 2,901,750
--------------
Total 21,613,435
--------------
Utilities--9.9%
348,278 AT&T Corp. 20,918,447
121,000 (b)Airtouch Communications, Inc. 6,428,125
39,400 Alltel Corp. 1,684,350
29,400 Ameren Corp. 1,164,975
40,700 American Electric Power Co., Inc. 1,943,425
234,700 Ameritech Corp. 9,989,419
31,650 Baltimore Gas & Electric Co. 996,975
166,492 Bell Atlantic Corp. 15,577,408
212,600 BellSouth Corp. 13,646,263
32,200 Carolina Power & Light Co. 1,386,613
45,500 Central & SouthWest Corp. 1,185,844
33,840 Cinergy Corp. 1,180,170
22,700 Coastal Corp. 1,621,631
11,900 Columbia Gas System, Inc. 966,875
74,850 Comcast Corp., Class A 2,680,566
50,400 Consolidated Edison Co. 2,280,600
20,500 Consolidated Natural Gas Co. 1,178,750
31,100 DTE Energy Co. 1,218,731
</TABLE>
Federated Max-Cap Fund
<TABLE>
<CAPTION>
Shares Value
- ------------ -----------
(a) Common Stocks--continued
Utilities--continued
<C> <S> <C>
41,450 Dominion Resources, Inc. $ 1,639,866
77,172 Duke Energy Corp. 4,466,330
4,400 Eastern Enterprises 186,450
81,800 Edison International 2,438,663
66,700 Enron Corp. 3,280,806
52,300 Entergy Corp. 1,300,963
39,000 FPL Group, Inc. 2,420,438
49,400 FirstEnergy Corp. 1,494,350
35,200 Frontier Corp. 1,053,800
27,200 GPU, Inc. 1,077,800
205,300 GTE Corp. 11,997,219
60,651 Houston Industries, Inc. 1,762,668
149,300 MCI Communications Corp. 7,511,656
56,300 (b)NEXTEL Communications, Inc., Class A 1,615,106
10,400 NICOR, Inc. 425,750
31,000 Niagara Mohawk Power Corp. 379,750
16,000 Northern States Power Co. 902,000
6,600 ONEOK, Inc. 267,300
94,000 P G & E Corp. 3,043,250
35,600 P P & L Resources, Inc. 821,025
17,900 Pacific Enterprises 696,981
63,600 Pacificorp 1,478,700
47,700 Peco Energy Co. 1,135,856
7,600 Peoples Energy Corp. 275,500
49,700 Public Service Enterprises Group, Inc. 1,668,056
393,046 SBC Communications, Inc. 16,286,844
23,600 Sonat, Inc. 1,047,250
148,000 Southern Co. 3,922,000
92,200 Sprint Corp. 6,298,413
108,800 (b)Tele-Communications, Inc., Class A 3,508,800
52,825 Texas Utilities Co. 2,113,000
103,600 U.S. West, Inc. 5,464,900
46,400 Unicom Corp. 1,612,400
88,100 Williams Cos., Inc. (The) 2,786,163
</TABLE>
<TABLE>
Federated Max-Cap Fund
<CAPTION>
Shares or
Principal Amount Value
- ---------------- -----------
(a) Common Stocks--continued
Utilities--continued
<C> <S> <C>
217,200 (b)WorldCom, Inc. $ 9,292,088
--------------
Total 191,721,308
--------------
Total Common Stocks (identified cost $1,144,359,627) 1,869,653,295
--------------
(c) Short-term U.S. Government Obligation--0.3%
$ 5,000,000 United States Treasury Bill, 6/18/1998 (at amortized cost) 4,967,041
--------------
(d) Repurchase Agreement--4.0%
77,335,000 BT Securities Corp., 5.53%, dated 4/30/1998, due 5/1/1998 (at amortized cost) 77,335,000
--------------
Total Investments (identified cost $1,226,661,668)(e) $1,951,955,336
==============
</TABLE>
(a) The fund purchases Index futures contracts to efficiently manage cash flows
resulting from shareholder purchases and redemptions, dividend and capital
gain payments to shareholders and corporate actions while maintaining
exposure to the Index and minimizing trading costs. The total market value
of open Index futures contracts is $80,862,200 at April 30, 1998, which
represents 4.2% of net assets. Taking into consideration these open Index
futures con tracts, the fund's effective total exposure to the Index is
100.4%.
(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 $1,226,661,668.
The net unrealized appreciation/depreciation of investments on a federal
tax basis amounts to $725,293,668 which is comprised of $735,879,009
appreciation and $10,585,341 depreciation at April 30, 1998.
Note: The categories of investments are shown as a percentage of net assets
($1,943,215,538) at April 30, 1998. The following acronym is used throughout
this portfolio:
ADR--American Depositary Receipt
(See Notes which are an integral part of the Financial Statements)
STATEMENT OF ASSETS AND LIABILITIES
Federated Max-Cap Fund
April 30, 1998 (unaudited)
<TABLE>
<S> <C> <C>
Assets:
Total investments in securities, at value (identified and tax cost $1,226,661,668) $1,951,955,336
Income receivable 1,831,837
Receivable for shares sold 2,245,114
Receivable for daily variation margin 1,618,400
--------------
Total assets 1,957,650,687
Liabilities:
Payable for investments purchased $ 2,434,812
Payable for shares redeemed 129,223
Payable to Bank 11,555,345
Payable for taxes withheld 1,227
Accrued expenses 314,542
--------------
Total liabilities 14,435,149
--------------
Net Assets for 83,825,755 shares outstanding$ $1,943,215,538
==============
Net Assets Consist of:
Paid in capital $1,198,441,617
Net unrealized appreciation of investments and futures contracts 727,086,036
Accumulated net realized gain on investments and futures contracts 16,512,249
Undistributed net investment income 1,175,636
--------------
Total Net Assets $1,943,215,538
==============
Net Asset Value, Offering Price and Redemption Proceeds Per Share:
Institutional Shares:
$1,511,527,864 / 65,173,351 shares outstanding $ 23.19
==============
Institutional Service Shares:
$423,866,669 / 18,314,248 shares outstanding $ 23.14
==============
Class C Shares:
$7,821,005 / 338,156 shares outstanding $ 23.13
==============
</TABLE>
(See Notes which are an integral part of the Financial Statements)
STATEMENT OF OPERATIONS
Federated Max-Cap Fund
Six Months Ended April 30, 1998 (unaudited)
<TABLE>
<S> <C> <C> <C>
Investment Income:
Dividends (net of foreign taxes withheld of $7,452) $ 11,864,071
Interest 2,554,594
------------
Total income 14,418,665
Expenses:
Investment advisory fee $ 2,450,550
Custodian fees 33,909
Transfer and dividend disbursing agent fees and expenses 111,793
Directors'/Trustees' fees 7,694
Auditing fees 7,421
Legal fees 3,168
Portfolio accounting fees 82,717
Distribution services fee--Institutional Service Shares 477,261
Distribution services fee--Class C Shares 11,334
Shareholder services fee--Institutional Shares 1,640,630
Shareholder services fee--Institutional Service Shares 397,717
Shareholder services fee--Class C Shares 3,778
Share registration costs 58,243
Printing and postage 13,165
Insurance premiums 5,823
Taxes 7,135
Miscellaneous 6,297
Total expenses 5,318,635
-----------
Waivers --
Waiver of investment advisory fee $ (240,467)
Waiver of distribution services fee--Institutional Service Shares (349,991)
Waiver of shareholder services fee--Institutional Shares (1,640,630)
Waiver of shareholder services fee--Institutional Service Shares (47,726)
-----------
Total waivers (2,278,814)
-----------
Net expenses 3,039,821
------------
Net investment income 11,378,844
------------
Realized and Unrealized Gain (Loss) on Investments and Futures Contracts:
Net realized gain on investments and futures contracts 18,526,062
Net change in unrealized appreciation of investments and futures contracts 301,972,066
------------
Net realized and unrealized gain on investments and futures contracts 320,498,128
------------
Change in net assets resulting from operations $331,876,972
============
</TABLE>
(See Notes which are an integral part of the Financial Statements)
STATEMENT OF CHANGES IN NET ASSETS
Federated Max-Cap Fund
<TABLE>
<CAPTION>
Six Months Ended
(unaudited) Year Ended
April 30, 1998 October 31, 1997
---------------- ----------------
<S> <C> <C>
Increase (Decrease) in Net Assets:
Operations--
Net investment income $ 11,378,844 $ 20,091,885
Net realized gain on investments and futures contracts ($18,526,062 and $45,104,576,
respectively, as computed for federal tax purposes) 18,526,062 47,684,197
Net change in unrealized appreciation of investments and futures contracts 301,972,066 237,223,689
-------------- --------------
Change in net assets resulting from operations 331,876,972 304,999,771
-------------- --------------
Distributions to Shareholders--
Distributions from net investment income
Institutional Shares (9,456,519) (19,400,997)
Institutional Service Shares (1,895,746) (2,132,811)
Class C Shares (11,080) --
Distributions from net realized gains on investments and futures contracts
Institutional Shares (36,852,857) (13,509,884)
Institutional Service Shares (8,247,035) (1,138,590)
Class C Shares (554) --
-------------- --------------
Change in net assets resulting from distributions to shareholders (56,463,791) (36,182,282)
-------------- --------------
Share Transactions--
Proceeds from sale of shares 571,718,030 751,612,116
Net asset value of shares issued to shareholders in payment of distributions declared 33,903,268 17,547,453
Cost of shares redeemed (325,886,207) (608,777,760)
-------------- --------------
Change in net assets resulting from share transactions 279,735,091 160,381,809
-------------- --------------
Change in net assets 555,148,272 429,199,298
Net Assets:
Beginning of period 1,388,067,266 958,867,968
-------------- --------------
End of period (including undistributed net investment income of $1,175,637
and $1,160,137, respectively) $1,943,215,538 $1,388,067,266
============== ==============
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FINANCIAL HIGHLIGHTS -- INSTITUTIONAL SHARES
Federated Max-Cap Fund
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months
Ended
(unaudited)
April 30, Year Ended October 31,
------------------------------------------------------
1998 1997 1996 1995 1994 1993
---------- ----------- ---------- -------- --------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 19.70 $ 15.49 $ 14.74 $ 12.02 $ 12.24 $ 11.64
Income from investment operations
Net investment income 0.15 0.31 0.34 0.38 0.32 0.30
Net realized and unrealized gain (loss) on
investments and futures contracts 4.11 4.47 2.80 2.70 0.10 1.29
Total from investment operations 4.26 4.78 3.14 3.08 0.42 1.59
Less distributions
Distributions from net investment income (0.15) (0.33) (0.36) (0.34) (0.30) (0.30)
Distributions from net realized gain on
investments and futures contracts (0.62) (0.24) (2.03) (0.02) (0.34) (0.69)
Total distributions (0.77) (0.57) (2.39) (0.36) (0.64) (0.99)
Net asset value, end of period $ 23.19 $ 19.70 $ 15.49 $ 14.74 $ 12.02 $ 12.24
Total return (a) 22.21% 31.51% 23.71% 26.00% 3.59% 14.35%
Ratios to average net assets
Expenses 0.31%* 0.31% 0.31% 0.31% 0.32% 0.31%
Net investment income 1.46%* 1.70% 2.29% 2.91% 2.70% 2.60%
Expense waiver/reimbursement (b) 0.28%* 0.30% 0.31% 0.33% 0.07% 0.09%
Supplemental data
Net assets, end of period (000 omitted) $1,511,528 $1,142,081 $900,131 $679,237 $443,815 $407,246
Average commission rate paid (c) $ 0.0184 $ 0.0224 $ 0.0153 -- -- --
Portfolio turnover 1% 16% 3% 57% 2% 13%
</TABLE>
* Computed on an annualized basis.
(a) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(b) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(c) 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)
FINANCIAL HIGHLIGHTS -- INSTITUTIONAL SERVICE SHARES
Federated Max-Cap Fund
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months
Ended
(unaudited)
April 30, Year Ended October 31,
---------------------------------------------------
1998 1997 1996 1995 1994 1993(a)
-------- -------- ------- ------- ------ ---------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 19.66 $ 15.47 $ 14.72 $ 12.02 $12.24 $ 12.12
Income from investment operations
Net investment income 0.13 0.26 0.30 0.33 0.28(b) 0.07
Net realized and unrealized gain (loss) on
investments and futures contracts 4.10 4.45 2.79 2.69 0.11 0.12
-------- -------- ------- ------- ------ -------
Total from investment operations 4.23 4.71 3.09 3.02 0.39 0.19
-------- -------- ------- ------- ------ -------
Less distributions
Distributions from net investment income (0.13) (0.28) (0.31) (0.30) (0.27) (0.07)
Distributions from net realized gain on investments
and futures contracts (0.62) (0.24) (2.03) (0.02) (0.34) --
-------- -------- ------- ------- ------ -------
Total distributions (0.75) (0.52) (2.34) (0.32) (0.61) (0.07)
-------- -------- ------- ------- ------ -------
Net asset value, end of period $ 23.14 $ 19.66 $ 15.47 $ 14.72 $12.02 $ 12.24
======== ======== ======= ======= ====== =======
Total return (c) 22.04% 31.07% 23.39% 25.52% 3.30% 1.70%
Ratios to average net assets
Expenses 0.61%* 0.62% 0.61% 0.61% 0.62% 0.61%*
Net investment income 1.14%* 1.36% 1.97% 2.55% 2.35% 1.52%*
Expense waiver/reimbursement (d) 0.28%* 0.30% 0.31% 0.33% 0.26% 0.09%*
Supplemental data
Net assets, end of period (000 omitted) $423,867 $245,986 $58,741 $35,195 $8,617 $ 2,493
Average commission rate paid (e) $ 0.0184 $ 0.0224 $0.0153 -- -- --
Portfolio turnover 1% 16% 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.
(e) Represents total commissions paid on portfolio securities divided by total
portfolio shares purchased or sold on which commissions were charged.
(See Notes which are an integral part of the Financial Statements)
FINANCIAL HIGHLIGHTS -- CLASS C SHARES
Federated Max-Cap Fund
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
Period Ended
(unaudited)
April 30,
1998(a)
--------------
<S> <C>
Net asset value, beginning of period $ 19.81
Income from investment operations
Net investment income 0.07
Net realized and unrealized gain (loss) on investments and futures contracts 3.96
-------
Total from investment operations 4.03
-------
Less distributions
Distributions from net investment income (0.09)
Distributions from net realized gain on investments and futures contracts (0.62)
-------
Total distributions (0.71)
-------
Net asset value, end of period $ 23.13
=======
Total return (b) 20.87%
Ratios to average net assets
Expenses 1.32%*
Net investment income 0.38%*
Expense waiver/reimbursement (c) 0.03%*
Supplemental data
Net assets, end of period (000 omitted) $ 7,821
Average commission rate paid (d) $0.0184
Portfolio turnover 1%
</TABLE>
* Computed on an annualized basis.
(a) Reflects operations for the period from November 10, 1997 (date of initial
public investment) to April 30, 1998.
(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)
NOTES TO FINANCIAL STATEMENTS
Federated Max-Cap Fund
April 30, 1998 (unaudited)
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.
Effective November 3, 1997, the Board of Trustees (the "Trustees") established a
new class of shares named Class C Shares, in addition to the Institutional
Shares and Institutional Service Shares already offered. The investment
objective of the Fund is to provide investment results that correspond to the
aggregate price and dividend performance of publicly-traded common stocks, by
duplicating the composition of the Index.
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 agreements. Accordingly, the Fund could receive less
than the repurchase price on the sale of collateral securities.
Investment Income, Expenses and Distributions
Interest income and expenses are accrued daily. Bond premium and discount, if
applicable, are amortized as required by the Internal Revenue Code, as amended
(the "Code"). Dividend income and distributions to shareholders are recorded on
the ex-dividend date.
Federal Taxes
It is the Fund's policy to comply with the provisions of the Code applicable to
regulated investment companies and to distribute to shareholders each year
substantially all of its income. Accordingly, no provisions for federal tax are
necessary.
When-Issued and Delayed Delivery Transactions
The Fund may engage in when-issued or delayed delivery transactions. The Fund
records when-issued securities on the trade date and maintains security
positions such that sufficient liquid assets will be available to make payment
for the securities purchased. Securities purchased on a when-issued or delayed
delivery basis are marked to market daily and begin earning interest on the
settlement date.
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 inthe variation margin
account. When a contract is closed, the Fund recognizes a realized gain or loss.
For the period ended April 30, 1998, the Fund had realized gains of $14,988,390
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, 1998, the Fund had outstanding futures
contracts as set forth below:
<TABLE>
<CAPTION>
Unrealized
Contracts to Appreciation
Expiration Date Deliver/Receive Position (Depreciation)
- --------------- ------------------------- -------- --------------
<S> <C> <C> <C>
June 1998 289 S&P 500 Index Futures Long $1,792,368
</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.
Shares of Beneficial Interest
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest
<TABLE>
<CAPTION>
(without par value) for each class of shares.
Transactions in shares were as follows:
Six Months
Ended
(unaudited) Year Ended
April 30, 1998 October 31, 1997
---------------------------- ----------------------------
Institutional Shares Shares Amount Shares Amount
- ------------------------------------------------------------- ------------ ------------- ----------- -------------
<S> <C> <C> <C> <C>
Shares sold 17,352,740 $ 366,700,680 30,235,597 $ 544,279,687
Shares issued to shareholders in payment of
distributions declared 1,206,082 24,629,897 873,354 14,693,792
Shares redeemed (11,362,730) (242,376,722) (31,244,017) (559,167,698)
------------ ------------- ----------- -------------
Net change resulting from Institutional Shares transactions 7,196,092 $ 148,953,855 (135,066) $ (194,219)
============ ============= =========== ==============
Six Months
Ended
(unaudited) Year Ended
April 30, 1998 October 31, 1997
---------------------------- ----------------------------
Institutional Service Shares Shares Amount Shares Amount
- ------------------------------------------------------------- ------------ ------------- ----------- ------------
<S> <C> <C> <C> <C>
Shares sold 9,318,325 $ 197,621,108 11,212,771 $ 207,332,429
Shares issued to shareholders in payment of
distributions declared 453,739 9,261,809 165,190 2,853,661
Shares redeemed (3,966,933) (83,286,681) (2,667,078) (49,610,062)
------------ ------------- ----------- ------------
Net change resulting from Institutional Service
Shares transactions 5,805,131 $ 123,596,236 8,710,883 $ 160,576,028
============ ============= =========== =============
Six Months
Ended
(unaudited) Year Ended
April 30, 1998(a) October 31, 1997
---------------------------- ---------------------------
Class C Shares Shares Amount Shares Amount
- ------------------------------------------------------------- ------------ ------------- ----------- ------------
<S> <C> <C> <C> <C>
Shares sold 347,378 $ 7,396,239 -- --
Shares issued to shareholders in payment of
distributions declared 506 11,565 -- --
Shares redeemed (9,728) (222,804) -- --
------------ ------------- ----------- -------------
Net change resulting from Class C Shares transactions 338,156 $ 7,185,000 -- --
============ ============= =========== =============
Net change resulting from share transactions 13,339,379 $ 279,735,091 8,575,817 $ 160,381,809
============ ============= =========== =============
</TABLE>
(a) For the period from November 10, 1997 (commencement of operations) to April
30, 1998.
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 investment advisory fee equal to 0.30% of the Fund's
average daily net assets.
The Manager has entered into a sub-management contract with Northern Trust
Quantitative Investment Advisors, Inc. (the "Sub-Manager"). The Manager shall
pay the Sub-Manager a management advisory fee based on the average daily net
assets of the Fund as follows: 0.05% on the first $100 million, 0.02% on the
next $100 million, and 0.01% thereafter. The Manager may voluntarily choose to
waive any portion of its fee. The Manager 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 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 and Class C Shares. The Plan provides that the Fund
may incur distribution expenses according to the following schedule annually, to
compensate FSC.
<TABLE>
<CAPTION>
Federated Max-Cap Fund
- -------------------------------------------------------
Percent of Average
Share Class Name Daily Net Assets of Class
- ---------------------------- -------------------------
<S> <C>
Institutional Service Shares 0.30%
Class C Shares 0.75%
</TABLE>
FSC may voluntarily choose to waive any portion of its fee. FSC 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 shares for the period. The fee paid to FSS is used to finance
certain services for shareholders and to maintain shareholder accounts. FSS may
voluntarily choose to waive any portion of its fee. FSS can modify or terminate
this voluntary waiver at any time at its sole discretion. For the period ended
April 30, 1998, the Institutional Shares fully waived its shareholder services
fee.
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.
Year 2000 Issue
Similar to other financial organizations, the Fund could be adversely affected
if the computer systems used by the Fund's service providers do not properly
process and calculate date-related information and data from and after January
1, 2000. The Fund's Manager and administrator are taking measures that they
believe are reasonably designed to address the Year 2000 issue with respect to
computer systems that they use and to obtain reasonable assurances that
comparable steps are being taken by each of the Fund's other service providers.
At this time, however, there can be no assurance that these steps will be
sufficient to avoid any adverse impact to the Fund.
Investment Transactions
Purchases and sales of investments, excluding short-term securities, for the
period ended April 30, 1998, were as follows:
Purchases $230,702,005
- ----------------------------------------------------------------
Sales $15,722,575
- ----------------------------------------------------------------
TRUSTEES
John F. Donahue
Thomas G. Bigley
John T. Conroy, Jr.
Nicholas P. Constantakis
William J. Copeland
J. Christopher Donahue
James E. Dowd
Lawrence D. Ellis, M.D.
Edward L. Flaherty, Jr.
Peter E. Madden
John E. Murray, Jr.
Wesley W. Posvar
Marjorie P. Smuts
OFFICERS
John F. Donahue
Chairman
Glen R. Johnson
President
J. Christopher Donahue
Executive Vice President
Edward C. Gonzales
Executive Vice President
John W. McGonigle
Executive Vice President, Treasurer and Secretary
Richard B. Fisher
Vice President
Nicholas J. Seitanakis
Assistant Secretary
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.
NOTES
Federated
Max-Cap Fund
Semi-Annual Report
to Shareholders
April 30, 1998
[Federated logo copy]
Cusip 31420E106
Cusip 31420E403
Cusip 31420E502
2052905 (6/98)
