SEMI-ANNUAL REPORT
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, which covers the six-month
period from November 1, 1998 through April 30, 1999. 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 Composite Stock Price Index, 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. 1
During the six-month reporting period, the fund produced a very strong total
return of 21.99% for Institutional Shares, 21.78% for Institutional Service
Shares and 21.38% for Class C Shares. 2 Institutional Shares paid dividend
income distributions totaling $0.14 per share and capital gains distributions
totaling $0.22 per share, while net asset value increased by $4.63.
Institutional Service Shares paid dividend income distributions totaling $0.11
per share and capital gains distributions totaling $0.22 per share, while net
asset value increased by $4.61. Class C Shares paid dividend income
distributions totaling $0.03 per share and capital gains distributions totaling
$0.22 per share, while net asset value increased by $4.59. The fund's net assets
reached $2.7 billion on the last day of the reporting period.
Thank you for investing your money 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,
[Graphic]
Glen R. Johnson
President
June 15, 1999
1 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 Ratings Group ("S&P") and
have been licensed for use by Federated Securities Corp. The fund is neither
affiliated with nor promoted, sponsored, sold, or endorsed by 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.
2 Performance quoted reflects past performance and is not indicative of future
results. Investment return and principal value will fluctuate, so that an
investor's shares, when redeemed, may be worth more or less than their original
cost.
Investment Review
The fund's total return for Institutional, Institutional Service, and Class C
Shares for the six months ended April 30, 1999 were 21.99%, 21.78% and 21.38%
respectively. 1 The target index, the Standard & Poor's 500 Composite Stock
Price Index (the "Index"), had a total return of 22.31% 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.
Despite a downturn early in 1999, the U.S. stock market continued its strong
climb in the last six months. A much-anticipated milestone, the Dow Jones
Industrials Average reaching 10,000, was surpassed in the first quarter of 1999.
Investors found reasons for optimism in the strength of the U.S. economy, a
stabilization in some of the problem economies in Asia, signs of stronger
corporate earnings, and relatively stable interest rates.
During the last reporting period large company stocks continued to outperform
stocks of medium and smaller-size companies. However, the month of April showed
a reversal of this pattern. Investors may be losing faith in "nifty fifty"
large-cap growth stocks and turning their attention to medium and smaller
companies which look relatively cheap.
During the reporting period investment banking, broadcast/media, and
transportation were among the strongest performing sectors while distribution,
tobacco, and gold were among the worst performing sectors in the Index.
1 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.
Portfolio of Investments
APRIL 30, 1999 (UNAUDITED)
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SHARES VALUE
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COMMON STOCKS-92.2% 1
BASIC MATERIALS-3.3%
52,100 Air Products & Chemicals,
Inc. $ 2,448,700
51,200 Alcan Aluminum, Ltd. 1,625,600
82,600 Alcoa, Inc. 5,141,850
44,192 Allegheny Teledyne, Inc. 988,796
133,582 Archer-Daniels-Midland Co. 2,003,730
8,700 ASARCO, Inc. 159,863
84,000 Barrick Gold Corp. 1,690,500
51,700 Battle Mountain Gold Co. 145,406
11,800 Bemis Co., Inc. 413,000
29,300 2 Bethlehem Steel Corp. 267,362
12,700 Boise Cascade Corp. 511,175
21,500 Champion International Corp. 1,175,781
20,050 Cyprus Amax Minerals 308,269
49,800 Dow Chemical Co. 6,533,137
255,700 Du Pont (E.I.) de Nemours & Co. 18,058,812
17,825 Eastman Chemical Co. 992,630
29,080 Ecolab, Inc. 1,219,543
32,262 Engelhard Corp. 619,027
7,400 2 FMC Corp. 481,000
38,000 Freeport-McMoRan Copper &
Gold, Inc., Class B 581,875
20,100 Georgia-Pacific Corp. 1,859,250
16,700 Goodrich (B.F.) Co. 663,825
16,500 2 Grace (W.R.) & Co. 262,969
13,300 Great Lakes Chemical Corp. 635,906
22,600 Hercules, Inc. 854,562
53,800 Homestake Mining Co. 514,462
23,900 International Flavors &
Fragrances, Inc. 944,050
69,176 International Paper Co. 3,687,945
24,500 Louisiana-Pacific Corp. 509,906
23,100 Mead Corp. 965,869
141,000 Monsanto Co. 6,380,250
28,000 Morton International, Inc. 1,130,500
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COMMON STOCKS-continued 1
BASIC MATERIALS-CONTINUED
14,700 Nalco Chemical Co. $ 537,469
37,657 Newmont Mining Corp. 906,122
19,700 Nucor Corp. 1,156,143
39,900 PPG Industries, Inc. 2,591,006
13,000 Phelps Dodge Corp. 822,250
54,420 Pioneer Hi-Bred International 2,033,947
56,300 Placer Dome, Inc. 795,237
6,500 Potlatch Corp. 269,344
35,500 Praxair, Inc. 1,837,125
15,500 Reynolds Metals Co. 966,812
38,100 Rohm & Haas Co. 1,707,356
22,600 Sigma-Aldrich Corp. 734,500
12,500 Temple-Inland, Inc. 862,500
19,920 USX-U.S. Steel Group, Inc. 602,580
15,600 Union Camp Corp. 1,238,250
29,900 Union Carbide Corp. 1,551,062
22,750 Westvaco Corp. 679,656
44,800 Weyerhaeuser Co. 3,007,200
25,000 Willamette Industries, Inc. 1,168,750
20,750 Worthington Industries, Inc. 286,609
TOTAL 87,529,468
CAPITAL GOODS-7.6%
126,100 Allied-Signal, Inc. 7,408,375
26,200 Avery Dennison Corp. 1,788,150
6,900 Ball Corp. 379,069
224,908 Boeing Co. 9,136,887
5,300 Briggs & Stratton Corp. 349,469
39,135 Browning-Ferris
Industries, Inc. 1,560,508
16,400 Case Corp. 567,850
80,700 Caterpillar, Inc. 5,195,062
25,000 Cooper Industries, Inc. 1,209,375
52,000 Corning, Inc. 2,977,000
15,475 Crane Co. 447,808
27,500 Crown Cork & Seal Co., Inc. 893,750
9,400 Cummins Engine Co., Inc. 502,900
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COMMON STOCKS-continued 1
CAPITAL GOODS-CONTINUED
53,700 Deere & Co. $ 2,309,100
50,200 Dover Corp. 1,854,262
16,100 Eaton Corp. 1,476,169
99,100 Emerson Electric Co. 6,391,950
17,000 Fluor Corp. 567,375
9,200 Foster Wheeler Corp. 124,200
28,540 General Dynamics Corp. 2,004,935
744,200 General Electric Co. 78,513,100
10,278 Harnischfeger Industries, Inc. 100,210
28,300 Honeywell, Inc. 2,681,425
56,300 Illinois Tool Works, Inc. 4,335,100
37,400 Inco Ltd. 717,612
37,000 Ingersoll-Rand Co. 2,559,937
19,100 Johnson Controls, Inc. 1,393,105
88,376 Lockheed Martin Corp. 3,805,691
13,300 McDermott International, Inc. 385,700
8,600 Milacron, Inc. 197,800
9,900 Millipore Corp. 303,806
90,300 Minnesota Mining &
Manufacturing Co. 8,036,700
19,917 Moore Corp. Ltd. 199,170
1,848 NACCO Industries, Inc., Class A 149,341
9,200 National Service
Industries, Inc. 358,225
15,570 2 Navistar International Corp. 814,506
15,500 Northrop Grumman, Corp. 991,031
35,000 2 Owens-Illinois, Inc. 1,015,000
17,580 PACCAR, Inc. 984,480
27,933 Pall Corp. 515,015
24,500 Parker-Hannifin Corp. 1,149,969
61,400 Pitney Bowes, Inc. 4,294,162
18,200 Raychem Corp. 481,162
43,000 Rockwell International Corp. 2,219,874
18,800 2 Sealed Air Corp. 1,143,275
57,100 2 Solectron Corp. 2,769,350
38,300 Tenneco, Inc. 1,034,100
35,700 Textron, Inc. 3,288,862
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COMMON STOCKS-continued 1
CAPITAL GOODS-CONTINUED
35,700 2 Thermo Electron Corp. $ 573,431
12,800 Thomas & Betts Corp. 537,600
14,000 Timken Co. 312,375
185,115 Tyco International Ltd. 15,040,594
50,800 United Technologies Corp. 7,359,650
135,928 Waste Management, Inc. 7,679,932
TOTAL 203,085,484
COMMUNICATION SERVICES-8.4%
714,772 AT&T Corp. 36,095,986
128,800 2 Airtouch Communications, Inc. 12,026,700
61,800 Alltel Corp. 4,167,637
248,300 Ameritech Corp. 16,993,031
352,584 Bell Atlantic Corp. 20,317,653
442,900 BellSouth Corp. 19,819,775
31,200 Century Telephone
Enterprises, Inc. 1,255,800
59,300 2 Clear Channel
Communications, Inc. 4,121,350
38,600 Frontier Corp. 2,130,237
219,200 GTE Corp. 14,672,700
416,397 2 MCI Worldcom, Inc. 34,222,628
136,600 2 MediaOne Group, Inc. 11,141,438
64,700 2 NEXTEL Communications,
Inc., Class A 2,648,656
444,246 SBC Communications, Inc. 24,877,776
101,500 Sprint Corp. 10,410,094
98,950 2 Sprint PCS Group 4,193,006
113,155 U.S. West, Inc. 5,919,421
TOTAL 225,013,888
CONSUMER CYCLICALS-8.2%
15,900 American Greetings Corp.,
Class A 416,381
9,000 Armstrong World
Industries, Inc. 492,750
34,400 2 AutoZone, Inc. 1,032,000
20,400 Black & Decker Corp. 1,157,700
22,900 Block (H&R), Inc. 1,102,062
21,600 Brunswick Corp. 518,400
192,029 2 Cendant Corp. 3,456,522
13,400 Centex Corp. 489,937
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COMMON STOCKS-continued 1
CONSUMER CYCLICALS-CONTINUED
22,600 Circuit City Stores, Inc. $ 1,389,900
24,600 2 Consolidated Stores Corp. 845,625
16,900 Cooper Tire & Rubber Co. 370,744
48,750 2 Costco Cos., Inc. 3,945,703
37,245 Dana Corp. 1,755,171
30,100 Danaher Corp. 1,999,769
99,000 Dayton-Hudson Corp. 6,663,937
24,000 Dillards, Inc., Class A 664,500
41,550 Dollar General Corp. 1,456,847
21,100 Dow Jones & Co. 1,149,950
37,600 Dun & Bradstreet Corp. 1,381,800
46,100 2 Federated Department
Stores, Inc. 2,152,294
7,800 Fleetwood Enterprises, Inc. 192,562
274,800 Ford Motor Co. 17,570,025
16,200 2 Fruit of the Loom, Inc.,
Class A 173,137
63,400 Gannett Co., Inc. 4,489,512
130,450 Gap (The), Inc. 8,683,078
147,300 General Motors Corp. 13,100,494
40,450 Genuine Parts Co. 1,213,500
35,100 Goodyear Tire & Rubber Co. 2,007,281
16,000 Harcourt General, Inc. 763,000
28,450 2 Harrah's Entertainment, Inc. 625,900
44,100 Hasbro, Inc. 1,504,912
58,700 Hilton Hotels Corp. 917,187
334,800 Home Depot, Inc. 20,067,075
72,100 IMS Health, Inc. 2,163,000
25,400 ITT Industries, Inc. 914,400
31,250 Interpublic Group Cos., Inc. 2,423,828
8,352 Jostens, Inc. 179,046
111,000 2 K Mart Corp. 1,651,125
10,800 Kaufman & Broad Homes Corp. 262,575
17,700 Knight-Ridder, Inc. 952,481
35,600 2 Kohl's Corp. 2,365,175
74,200 Laidlaw, Inc. 468,387
51,264 Limited, Inc. 2,242,800
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COMMON STOCKS-continued 1
CONSUMER CYCLICALS-CONTINUED
14,500 Liz Claiborne, Inc. $ 479,406
79,300 Lowe's Cos., Inc. 4,183,075
56,300 Marriott International,
Inc., Class A 2,357,562
76,400 Masco Corp. 2,244,250
64,725 Mattel, Inc. 1,674,759
78,900 May Department Stores Co. 3,141,206
20,300 Maytag Corp. 1,388,012
44,200 McGraw-Hill Cos., Inc. 2,442,050
11,800 Meredith Corp. 432,912
40,500 2 Mirage Resorts, Inc. 908,719
41,200 New York Times Co., Class A 1,421,400
64,400 Nike, Inc., Class B 4,004,875
33,500 Nordstrom, Inc. 1,178,781
38,000 Omnicom Group, Inc. 2,755,000
12,200 Owens Corning 434,625
57,200 Penney (J.C.) Co., Inc. 2,609,750
11,556 Pep Boys-Manny Moe & Jack 165,395
9,700 Pulte Corp. 219,462
12,700 2 Reebok International Ltd. 238,919
8,100 Russell Corp. 179,212
86,200 Sears, Roebuck & Co. 3,965,200
61,500 Service Corp. International 1,276,125
38,700 Sherwin-Williams Co. 1,204,537
13,100 Snap-On Tools Corp. 426,569
4,300 Springs Industries, Inc.,
Class A 160,712
20,000 Stanley Works 608,750
105,200 2 Staples, Inc. 3,156,000
72,500 TJX Cos., Inc. 2,415,156
27,000 TRW, Inc. 1,132,312
22,230 Tandy Corp. 1,610,286
19,000 Times Mirror Co., Class A 1,111,500
59,300 2 Toys 'R' Us, Inc. 1,289,775
26,700 Tribune Co. 2,227,781
27,000 V.F. Corp. 1,390,500
1,014,200 Wal-Mart Stores, Inc. 46,653,200
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COMMON STOCKS-continued 1
CONSUMER CYCLICALS-CONTINUED
17,100 Whirlpool Corp. $ 1,135,012
TOTAL 219,595,257
CONSUMER STAPLES-11.1%
12,400 Alberto-Culver Co., Class B 308,450
55,300 Albertsons, Inc. 2,847,950
61,800 American Stores Co. 1,950,562
107,600 Anheuser-Busch Cos., Inc. 7,868,250
59,100 Avon Products, Inc. 3,209,869
64,300 BestFoods 3,227,056
15,500 Brown-Forman Corp., Class B 1,142,156
87,800 CVS Corp. 4,181,475
100,800 Campbell Soup Co. 4,132,800
60,950 Cardinal Health, Inc. 3,645,572
26,400 Clorox Co. 3,045,900
88,200 Coca Cola Enterprises, Inc. 3,042,900
559,900 Coca-Cola Co. 38,073,200
65,900 Colgate-Palmolive Co. 6,750,631
110,100 ConAgra, Inc. 2,738,737
8,200 Coors Adolph Co., Class B 438,700
31,300 Darden Restaurants, Inc. 698,381
18,100 Deluxe Corp. 626,713
466,900 Disney (Walt) Co. 14,824,075
30,600 Donnelley (R.R.) & Sons Co. 1,082,475
49,600 Fort James Corp. 1,884,800
38,500 Fortune Brands, Inc. 1,520,750
34,400 General Mills, Inc. 2,515,500
251,900 Gillette Co. 13,146,031
8,600 Great Atlantic & Pacific
Tea Co., Inc. 264,450
81,500 Heinz (H.J.) Co. 3,805,031
32,200 Hershey Foods Corp. 1,694,525
91,200 Kellogg Co. 3,374,400
121,948 Kimberly-Clark Corp. 7,476,937
16,500 2 King World Productions, Inc. 581,625
57,700 2 Kroger Co., Inc. 3,133,831
8,800 Longs Drug Stores Corp. 302,500
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COMMON STOCKS-continued 1
CONSUMER STAPLES-CONTINUED
304,600 McDonald's Corp. $ 12,907,425
61,126 McKesson HBOC, Inc. 2,139,410
34,800 2 Meyer (Fred), Inc. 1,883,550
63,244 Newell Rubbermaid, Inc. 3,000,137
330,300 PepsiCo, Inc. 12,200,456
553,000 Philip Morris Cos., Inc. 19,389,563
301,600 Procter & Gamble Co. 28,293,850
30,700 Quaker Oats Co. 1,982,069
73,100 RJR Nabisco Holdings Corp. 1,882,325
74,600 Ralston Purina Co. 2,275,300
58,200 Rite Aid Corp. 1,356,787
109,400 2 Safeway, Inc. 5,900,762
205,600 Sara Lee Corp. 4,574,600
88,700 Seagram Co. Ltd. 5,089,163
27,100 Supervalu, Inc. 565,713
75,200 Sysco Corp. 2,232,500
278,680 Time Warner, Inc. 19,507,600
34,330 2 Tricon Global Restaurants, Inc. 2,209,994
13,100 Tupperware Corp. 310,306
41,900 UST, Inc. 1,167,963
144,100 Unilever N.V. 9,357,494
156,536 2 Viacom, Inc., Class B 6,398,409
224,500 Walgreen Co. 6,033,438
28,300 Wendy's International, Inc. 765,869
33,400 Winn-Dixie Stores, Inc. 1,196,138
26,200 Wrigley (Wm.), Jr. Co. 2,323,613
TOTAL 298,480,666
ENERGY -5.8%
40,600 2 AES Corp. 2,030,000
20,300 Amerada-Hess Corp. 1,157,100
27,100 Anadarko Petroleum Corp. 1,028,106
22,000 Apache Corp 675,125
17,200 Ashland, Inc. 726,700
72,300 Atlantic Richfield Co. 6,068,681
73,590 Baker Hughes, Inc. 2,198,501
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COMMON STOCKS-continued 1
ENERGY-CONTINUED
39,865 Burlington Resources, Inc. $ 1,836,282
23,400 CMS Energy Corp. 1,030,068
146,900 Chevron Corp. 14,653,275
552,200 Exxon Corp. 45,867,113
99,000 Halliburton Co. 4,219,875
11,300 Helmerich & Payne, Inc. 290,975
19,476 Kerr-McGee Corp. 825,296
177,100 Mobil Corp. 18,551,225
77,900 Occidental Petroleum Corp. 1,572,606
57,300 Phillips Petroleum Co. 2,900,813
18,600 2 Rowan Companies, Inc. 297,600
487,000 Royal Dutch Petroleum Co., ADR 28,580,813
122,900 Schlumberger Ltd. 7,850,238
21,037 Sunoco, Inc. 752,073
120,300 Texaco, Inc. 7,548,825
69,200 USX Marathon Group 2,162,500
56,494 Union Pacific Resources
Group, Inc. 790,916
54,300 Unocal Corp. 2,256,844
TOTAL 155,871,550
FINANCIALS-15.2%
38,250 AON Corp. 2,620,125
32,155 Aetna, Inc. 2,819,592
184,710 Allstate Corp. 6,718,826
102,800 American Express Co. 13,434,675
56,730 American General Corp. 4,198,020
278,133 American International
Group, Inc. 32,663,244
26,000 Amsouth Bancorporation 1,236,625
165,332 Associates First Capital
Corp., Class A 7,326,274
70,600 BB&T Corp. 2,819,588
267,086 Bank One Corporation 15,758,056
393,092 Bank of America Corp. 28,302,624
171,200 Bank of New York Co., Inc. 6,848,000
66,300 BankBoston Corp. 3,248,700
21,500 Bankers Trust New York Corp. 1,936,344
26,625 Bear Stearns Cos., Inc. 1,241,391
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COMMON STOCKS-continued 1
FINANCIALS-CONTINUED
46,500 CIGNA Corp. $ 4,054,219
14,800 Capital One Financial Corp. 2,570,575
192,140 Chase Manhattan Corp. 15,899,585
36,700 Chubb Corp. 2,174,475
37,600 Cincinnati Financial Corp. 1,518,100
511,450 Citigroup, Inc. 38,486,613
35,050 Comerica, Inc. 2,280,441
70,761 Conseco, Inc. 2,233,394
25,200 Countrywide Credit
Industries, Inc. 1,141,875
152,800 Federal Home Loan Mortgage
Corp. 9,588,200
235,500 Federal National Mortgage
Association 16,705,781
60,000 Fifth Third Bancorp 4,301,250
222,998 First Union Corp. 12,348,514
155,400 Firstar Corp. 4,671,713
127,920 Fleet Financial Group, Inc. 5,508,555
57,000 Franklin Resources, Inc. 2,280,000
12,800 Golden West Financial Corp. 1,281,600
52,500 Hartford Financial
Services Group, Inc. 3,094,219
108,659 Household International, Inc. 5,466,906
47,500 Huntington Bancshares, Inc. 1,683,281
39,300 J.P. Morgan & Co., Inc. 5,295,675
23,837 Jefferson-Pilot Corp. 1,606,018
102,500 KeyCorp 3,171,094
26,100 Lehman Brothers Holdings, Inc. 1,450,181
22,700 Lincoln National Corp. 2,180,619
25,600 Loews Corp. 1,873,600
22,400 MBIA Inc. 1,506,400
180,427 MBNA Corp. 5,085,786
24,700 MGIC Investment Corp. 1,199,494
57,900 Marsh & McLennan Cos., Inc. 4,432,969
58,800 Mellon Bank Corp. 4,369,575
35,400 Mercantile Bancorporation, Inc. 2,017,800
79,800 Merrill Lynch & Co., Inc. 6,698,213
130,057 Morgan Stanley, Dean
Witter & Co. 12,900,029
74,400 National City Corp. 5,338,200
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COMMON STOCKS-continued 1
FINANCIALS-CONTINUED
67,700 PNC Bank Corp. $ 3,918,138
16,300 Progressive Corp., Ohio 2,339,050
30,400 Provident Cos., Inc. 1,197,000
31,900 Providian Financial Corp. 4,117,094
49,800 Regions Financial Corp. 1,879,950
24,100 Republic New York Corp. 1,415,875
30,700 SAFECO Corp. 1,220,325
37,300 SLM Holding Corp. 1,592,244
90,275 Schwab (Charles) Corp. 9,907,681
37,000 SouthTrust Corp. 1,474,219
53,052 St. Paul Cos., Inc. 1,521,929
36,100 State Street Corp. 3,158,750
39,100 Summit Bancorp 1,656,863
71,500 SunTrust Banks, Inc. 5,112,250
60,150 Synovus Financial Corp. 1,330,819
31,600 Torchmark Corp. 1,080,325
28,100 Transamerica Corp. 2,002,125
163,365 U.S. Bancorp, Inc. 6,054,715
31,100 UNUM Corp. 1,698,838
30,600 Union Planters Corp. 1,310,063
45,600 Wachovia Corp. 4,007,100
133,576 Washington Mutual, Inc. 5,493,313
373,360 Wells Fargo Co. 16,124,485
TOTAL 407,200,184
HEALTH CARE-9.9%
344,700 Abbott Laboratories 16,696,406
14,900 Allergan, Inc. 1,339,138
22,500 2 Alza Corp. 755,156
299,300 American Home Products Corp. 18,257,300
114,600 2 Amgen, Inc. 7,040,738
12,200 Bard (C.R.), Inc. 597,800
12,600 Bausch & Lomb, Inc. 945,000
64,400 Baxter International, Inc. 4,057,200
55,700 Becton, Dickinson & Co. 2,071,344
25,300 Biomet, Inc. 1,037,300
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COMMON STOCKS-continued 1
HEALTH CARE-CONTINUED
88,400 2 Boston Scientific Corp. $ 3,762,525
451,300 Bristol-Myers Squibb Co. 28,685,756
145,307 Columbia/HCA Healthcare Corp. 3,587,267
67,800 Guidant Corp. 3,640,013
24,950 2 HCR Manor Care, Inc. 692,363
95,200 2 HEALTHSOUTH, Corp. 1,279,250
37,700 2 Humana, Inc. 513,663
305,400 Johnson & Johnson 29,776,500
536 Ligand Pharmaceuticals,
Inc., Warrants 2,144
249,800 Lilly (Eli) & Co. 18,391,525
16,100 Mallinckrodt, Inc. 564,506
131,500 Medtronic, Inc. 9,459,781
541,000 Merck & Co., Inc. 38,005,250
294,800 Pfizer, Inc. 33,920,425
114,355 Pharmacia & Upjohn, Inc. 6,403,880
333,800 Schering Plough Corp. 16,126,713
18,941 2 St. Jude Medical, Inc. 527,980
69,700 2 Tenet Healthcare Corp. 1,646,663
42,000 United Healthcare Corp. 2,357,250
186,600 Warner-Lambert Co. 12,677,138
21,500 2 Watson Pharmaceuticals, Inc. 870,750
TOTAL 265,688,724
TECHNOLOGY-18.6%
80,700 2 3Com Corp. 2,108,288
14,800 Adobe System, Inc. 937,950
32,600 2 Advanced Micro Devices, Inc. 535,863
233,300 2 America Online, Inc. 33,303,575
19,362 2 Andrew Corp. 269,858
30,300 2 Apple Computer, Inc. 1,393,800
83,200 2 Applied Materials, Inc. 4,461,600
48,800 2 Ascend Communications 4,715,300
13,300 Autodesk, Inc. 395,675
139,900 Automatic Data Processing, Inc. 6,225,550
48,500 2 BMC Software, Inc. 2,088,531
37,100 2 Cabletron Systems, Inc. 350,131
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
TECHNOLOGY-CONTINUED
32,200 2 Ceridian Corp. $ 1,179,325
358,600 2 Cisco Systems, Inc. 40,902,813
382,661 Compaq Computer Corp. 8,538,124
121,162 Computer Associates
International, Inc. 5,172,103
35,700 2 Computer Sciences Corp. 2,126,381
82,800 2 Compuware Corp. 2,018,250
11,100 2 Data General Corp. 129,731
577,900 2 Dell Computer Corp. 23,802,256
10,100 EG & G, Inc. 315,625
113,000 2 EMC Corp. Mass 12,309,938
72,900 Eastman Kodak Co. 5,440,163
110,900 Electronic Data Systems Corp. 5,960,875
33,200 Equifax, Inc. 1,193,125
99,600 First Data Corp. 4,226,775
35,200 2 Gateway 2000, Inc. 2,329,800
37,700 2 General Instrument Corp. 1,376,050
21,400 Grainger (W.W.), Inc. 1,074,013
18,000 Harris Corp. 622,125
233,400 Hewlett-Packard Co. 18,409,425
33,100 Ikon Office Solutions, Inc. 399,269
757,200 Intel Corp. 46,331,175
210,000 International Business
Machines Corp. 43,929,375
19,700 2 KLA-Tencor Corp. 977,613
31,800 2 LSI Logic Corp. 1,081,200
600,268 Lucent Technologies, Inc. 36,091,114
55,700 Micron Technology, Inc. 2,067,863
1,146,200 2 Microsoft Corp. 93,200,388
992 2 Momentum Business
Applications, Inc. 7,316
135,100 Motorola, Inc. 10,824,888
37,400 2 National Semiconductor Corp. 467,500
150,760 Northern Telecom Ltd. 10,279,948
79,300 2 Novell, Inc. 1,764,425
328,162 2 Oracle Corp. 8,880,884
61,300 2 Parametric Technology Corp. 800,731
36,800 Paychex, Inc. 1,879,100
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
TECHNOLOGY-CONTINUED
52,500 2 Peoplesoft, Inc. $ 718,594
11,200 Perkin-Elmer Corp. 1,211,000
9,900 Polaroid Corp. 204,188
75,800 Raytheon Co., Class B 5,324,950
17,000 Scientific-Atlanta, Inc. 539,750
55,200 2 Seagate Technology, Inc. 1,538,700
6,000 Shared Medical Systems Corp. 325,875
42,200 2 Silicon Graphics, Inc. 538,050
175,000 2 Sun Microsystems, Inc. 10,467,188
10,800 Tektronix, Inc. 261,900
43,700 2 Tellabs, Inc. 4,787,881
87,800 Texas Instruments, Inc. 8,966,575
57,400 2 Unisys Corp. 1,804,513
149,000 Xerox Corp. 8,753,750
TOTAL 498,338,721
TRANSPORTATION-1.2%
41,000 2 AMR Corp. 2,862,313
105,633 Burlington Northern Santa Fe 3,868,809
49,100 CSX Corp. 2,418,175
134,030 Carnival Corp., Class A 5,528,738
32,600 Delta Air Lines, Inc. 2,068,063
33,240 2 FDX Corp. 3,741,578
24,700 Kansas City Southern
Industries, Inc. 1,471,194
85,400 Norfolk Southern Corp. 2,791,513
16,400 Ryder Systems, Inc. 432,550
75,750 Southwest Airlines Co. 2,466,609
20,200 2 US Airways Group, Inc. 1,099,638
55,700 Union Pacific Corp. 3,342,000
TOTAL 32,091,180
UTILITIES-2.9%
30,900 Ameren Corp. 1,195,444
43,100 American Electric Power
Co., Inc. 1,785,956
33,550 Baltimore Gas & Electric Co. 943,594
158,900 CBS Corp. 7,239,881
34,100 Carolina Power & Light Co. 1,374,656
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
UTILITIES-CONTINUED
47,900 Central & SouthWest Corp. $ 1,188,519
35,740 Cinergy Corp. 1,065,499
47,900 Coastal Corp. 1,832,175
18,750 Columbia Energy Group 901,172
83,050 Comcast Corp., Class A 5,455,347
52,500 Consolidated Edison Co. 2,385,469
21,600 Consolidated Natural Gas Co. 1,285,200
32,700 DTE Energy Co. 1,334,569
43,950 Dominion Resources, Inc. 1,807,444
81,472 Duke Energy Corp. 4,562,432
5,100 Eastern Enterprises 183,281
79,400 Edison International 1,945,300
74,400 Enron Corp. 5,598,600
55,500 Entergy Corp. 1,734,375
40,700 FPL Group, Inc. 2,294,463
53,400 FirstEnergy Corp. 1,585,313
28,800 GPU, Inc. 1,098,000
10,700 NICOR, Inc. 389,213
25,700 New Century Energies, Inc. 899,500
42,200 Niagara Mohawk Holdings, Inc. 564,425
34,300 Northern States Power Co. 827,488
7,100 ONEOK, Inc. 198,356
86,100 P G & E Corp. 2,674,481
33,991 P P & L Resources, Inc. 949,624
66,900 Pacificorp 1,116,394
50,400 Peco Energy Co. 2,390,850
8,000 Peoples Energy Corp. 299,000
51,400 Public Service Enterprises
Group, Inc. 2,056,000
64,051 Reliant Energy, Inc. 1,813,442
54,018 Sempra Energy 1,120,874
24,800 Sonat, Inc. 886,600
156,900 Southern Co. 4,246,106
63,525 Texas Utilities Co. 2,525,119
<CAPTION>
SHARES OR
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
UTILITIES-CONTINUED
48,900 Unicom Corp. $ 1,897,931
96,300 Williams Cos., Inc. (The) 4,550,175
TOTAL 78,202,267
TOTAL COMMON STOCKS
(IDENTIFIED COST $1,352,795,318) 2,471,097,389
SHORT-TERM U.S. GOVERNMENT
OBLIGATION-0.3% 3
$ 7,500,000 United States Treasury
Bill, 6/24/1999
(identified cost $7,450,837) 7,454,475
REPURCHASE AGREEMENT-7.4% 4
197,715,000 ABN AMRO, Inc., 4.94%,
dated 4/30/1999, due
5/3/1999 (at amortized cost) 197,715,000
TOTAL INVESTMENTS
(IDENTIFIED COST
$1,557,961,155) 5 $ 2,676,266,864
</TABLE>
1 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 $212,102,952 at April 30, 1999, which represents 7.9% of net
assets. Taking into consideration these open Index futures contracts, the Fund's
effective total exposure to the Index is 100.1%.
2 Non-income producing security.
3 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.
4 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.
5 The cost of investments for federal tax purposes amounts to $1,557,961,155.
The net unrealized appreciation of investments on a federal tax basis amounts to
$1,118,305,709 which is comprised of $1,148,527,992 appreciation and $30,222,283
depreciation at April 30, 1999.
Note: The categories of investments are shown as a percentage of net assets
($2,680,299,979) at April 30, 1999.
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
APRIL 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
<S> <C> <C>
ASSETS:
Total investments in
securities, at value
(identified and tax cost
$1,557,961,155) $ 2,676,266,864
Income receivable 2,008,274
Receivable for shares sold 3,254,776
Receivable for daily
variation margin 1,981,250
TOTAL ASSETS 2,683,511,164
LIABILITIES:
Payable for investments
purchased $ 1,030,068
Payable to Bank 1,835,608
Accrued expenses 345,509
TOTAL LIABILITIES 3,211,185
Net assets for 97,404,982
shares outstanding $ 2,680,299,979
NET ASSETS CONSIST OF:
Paid in capital $ 1,547,860,662
Net unrealized
appreciation of
investments and futures
contracts 1,122,013,619
Accumulated net realized
gain on investments and
futures contracts 9,237,954
Undistributed net
investment income 1,187,744
TOTAL NET ASSETS $ 2,680,299,979
NET ASSET VALUE, OFFERING
PRICE AND REDEMPTION
PROCEEDS PER SHARE
INSTITUTIONAL SHARES:
Net asset value and
offering price per share
($1,927,535,432 /
70,000,552 shares
outstanding) $27.54
Redemption Proceeds Per
Share $27.54
INSTITUTIONAL SERVICE
SHARES:
Net asset value and
offering price per share
($699,946,285 / 25,477,409
shares outstanding) $27.47
Redemption Proceeds Per
Share $27.47
CLASS C SHARES:
Net asset value and
offering price per share
($52,818,262 / 1,927,021
shares outstanding) $27.41
Redemption Proceeds Per
Share (99.00/100 of
$27.41) 1 $27.14
</TABLE>
1 See "What Do Shares Cost?" in the Prospectus.
See Notes which are an integral part of the Financial Statements
Statement of Operations
SIX MONTHS ENDED APRIL 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends (net of foreign
taxes withheld of $21,361) $ 14,255,886
Interest 2,172,061
TOTAL INCOME 16,427,947
EXPENSES:
Investment advisory fee $ 3,415,613
Custodian fees 63,063
Transfer and dividend
disbursing agent fees and
expenses 225,971
Directors'/Trustees' fees 7,575
Auditing fees 7,458
Legal fees 3,956
Portfolio accounting fees 101,358
Distribution services fee-
Institutional Service Shares 873,520
Distribution services fee-
Class C Shares 111,103
Shareholder services fee-
Institutional Shares 2,079,978
Shareholder services fee-
Institutional Service Shares 727,933
Shareholder services fee-
Class C Shares 37,034
Share registration costs 101,934
Printing and postage 23,953
Insurance premiums 4,755
Miscellaneous 10,645
TOTAL EXPENSES 7,795,849
WAIVERS:
Waiver of investment
advisory fee $ (387,010)
Waiver of distribution
services fee-Institutional
Service Shares (640,581)
Waiver of shareholder
services fee-Institutional
Shares (2,079,978)
Waiver of shareholder
services fee-Institutional
Service Shares (87,352)
TOTAL WAIVERS (3,194,921)
Net expenses 4,600,928
Net investment income 11,827,019
REALIZED AND UNREALIZED
GAIN ON INVESTMENTS AND
FUTURES CONTRACTS:
Net realized gain on
investments and futures
contracts 15,917,861
Net change in unrealized
appreciation of investments
and futures contracts 412,487,481
Net realized and unrealized
gain on investments and
futures contracts 428,405,342
Change in net assets
resulting from operations $ 440,232,361
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR
(unaudited) ENDED
APRIL 30, OCTOBER 31,
1999 1998
<S> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS
OPERATIONS:
Net investment income $ 11,827,019 $ 23,545,370
Net realized gain on
investments and futures
contracts ($15,917,861 and
$18,621,157, respectively,
as computed for federal tax
purposes) 15,917,861 15,258,606
Net change in unrealized
appreciation of
investments and futures
contracts 412,487,481 284,412,168
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS 440,232,361 323,216,144
DISTRIBUTIONS TO
SHAREHOLDERS:
Distributions from net
investment income
Institutional Shares (9,195,439) (19,446,188)
Institutional Service Shares (2,431,807) (4,226,227)
Class C Shares (41,434) (43,855)
Distributions from net
realized gains on investments
and futures contracts
Institutional Shares (13,803,989) (36,852,857)
Institutional Service Shares (4,665,974) (8,247,035)
Class C Shares (161,152) (554)
CHANGE IN NET ASSETS
RESULTING FROM DISTRIBUTIONS
TO SHAREHOLDERS (30,299,795) (68,816,716)
SHARE TRANSACTIONS:
Proceeds from sale of shares 814,768,072 1,232,374,399
Net asset value of shares
issued to shareholders in
payment of distributions
declared 19,985,462 40,899,081
Cost of shares redeemed (503,105,078) (977,021,217)
CHANGE IN NET ASSETS
RESULTING FROM SHARE
TRANSACTIONS 331,648,456 296,252,263
Change in net assets 741,581,022 550,651,691
NET ASSETS:
Beginning of period 1,938,718,957 1,388,067,266
End of period (including
undistributed net investment
income of $1,187,744 and
$1,029,405, respectively) $ 2,680,299,979 $ 1,938,718,957
</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)
APRIL 30, YEAR ENDED OCTOBER 31,
1999 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $22.91 $19.70 $15.49 $14.74 $12.02 $12.24
INCOME FROM
INVESTMENT OPERATIONS:
Net investment income 0.14 0.31 0.31 0.34 0.38 0.32
Net realized and unrealized
gain on investments and
futures contracts 4.85 3.83 4.47 2.80 2.70 0.10
TOTAL FROM
INVESTMENT OPERATIONS 4.99 4.14 4.78 3.14 3.08 0.42
LESS DISTRIBUTIONS:
Distributions from net
investment income (0.14) (0.31) (0.33) (0.36) (0.34) (0.30)
Distributions from net
realized gain on investments
and futures contracts (0.22) (0.62) (0.24) (2.03) (0.02) (0.34)
TOTAL DISTRIBUTIONS (0.36) (0.93) (0.57) (2.39) (0.36) (0.64)
NET ASSET VALUE, END OF
PERIOD $27.54 $22.91 $19.70 $15.49 $14.74 $12.02
TOTAL RETURN 1 21.99% 21.56% 31.51% 23.71% 26.00% 3.59%
RATIOS TO AVERAGE NET ASSETS:
Expenses 2 0.59% 3 0.58% 0.61% 0.62% 0.64% 0.39%
Net investment income 2 0.85% 3 1.13% 1.40% 1.98% 2.58% 2.63%
Expenses (after waivers) 0.31% 3 0.31% 0.31% 0.31% 0.31% 0.32%
Net investment income
(after waivers) 1.13% 3 1.40% 1.70% 2.29% 2.91% 2.70%
SUPPLEMENTAL DATA:
Net assets, end of period
(000 omitted) $1,927,535 $1,445,175 $1,142,081 $900,131 $679,237 $443,815
Portfolio turnover 1% 3% 16% 3% 57% 2%
</TABLE>
1 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
2 During the period, certain fees were voluntarily waived. If such voluntary
waivers had not occurred, the ratios would have been as indicated.
3 Computed on an annualized basis.
See Notes which are an integral part of the Financial Statements
Financial Highlights-Institutional Service Shares
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(unaudited)
APRIL 30, YEAR ENDED OCTOBER 31,
1999 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $22.86 $19.66 $15.47 $14.72 $12.02 $12.24
INCOME FROM
INVESTMENT OPERATIONS:
Net investment income 0.11 0.25 0.26 0.30 0.33 0.28 1
Net realized and
unrealized gain on
investments and
futures contracts 4.83 3.82 4.45 2.79 2.69 0.11
TOTAL FROM
INVESTMENT OPERATIONS 4.94 4.07 4.71 3.09 3.02 0.39
LESS DISTRIBUTIONS:
Distributions from net
investment income (0.11) (0.25) (0.28) (0.31) (0.30) (0.27)
Distributions from net
realized gain on
investments and
futures contracts (0.22) (0.62) (0.24) (2.03) (0.02) (0.34)
TOTAL DISTRIBUTIONS (0.33) (0.87) (0.52) (2.34) (0.32) (0.61)
NET ASSET VALUE, END OF
PERIOD $27.47 $22.86 $19.66 $15.47 $14.72 $12.02
TOTAL RETURN 2 21.78% 21.21% 31.07% 23.39% 25.52% 3.30%
RATIOS TO AVERAGE NET
ASSETS:
Expenses 3 0.89% 4 0.88% 0.92% 0.92% 0.94% 0.88%
Net investment income 3 0.55% 4 0.82% 1.06% 1.66% 2.22% 2.09%
Expenses (after waivers) 0.61% 4 0.61% 0.62% 0.61% 0.61% 0.62%
Net investment income
(after waivers) 0.83% 4 1.09% 1.36% 1.97% 2.55% 2.35%
SUPPLEMENTAL DATA:
Net assets, end of period
(000 omitted) $699,946 $477,760 $245,986 $58,741 $35,195 $8,617
Portfolio turnover 1% 3% 16% 3% 57% 2%
</TABLE>
1 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.
2 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
3 During the period, certain fees were voluntarily waived. If such voluntary
waivers had not occurred, the ratios would have been as indicated.
4 Computed on an annualized basis.
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 PERIOD
(unaudited) ENDED
APRIL 30, OCTOBER 31,
1999 1998 1
<S> <C> <C>
NET ASSET VALUE, BEGINNING
OF PERIOD $22.82 $19.81
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income 0.04 0.12
Net realized and
unrealized gain on
investments and futures
contracts 4.80 3.66
TOTAL FROM INVESTMENT
OPERATIONS 4.84 3.78
LESS DISTRIBUTIONS:
Distributions from net
investment income (0.03) (0.15)
Distributions from net
realized gain on
investments and futures
contracts (0.22) (0.62)
TOTAL DISTRIBUTIONS (0.25) (0.77)
NET ASSET VALUE, END OF
PERIOD $27.41 $22.82
TOTAL RETURN 2 21.38% 19.57%
RATIOS TO AVERAGE NET
ASSETS:
Expenses 3 1.35% 4 1.34%
Net investment income 3 0.07% 4 0.33%
Expenses (after waivers) 1.32% 4 1.32% 4
Net investment income
(after waivers) 0.10% 4 0.35% 4
SUPPLEMENTAL DATA:
Net assets, end of period
(000 omitted) $52,818 $15,784
Portfolio turnover 1% 3%
</TABLE>
1 Reflects operations for the period from November 10, 1997 (date of initial
public investment) to October 31, 1998.
2 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
3 During the period, certain fees were voluntarily waived. If such voluntary
waivers had not occurred, the ratios would have been as indicated.
4 Computed on an annualized basis.
See Notes which are an integral part of the Financial Statements
Notes to Financial Statements
APRIL 30, 1999 (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. The
investment objective of the Fund is to provide investment results that
correspond to the aggregate price and dividend performance of publicly-traded
common stocks, by duplicating the composition of the Standard & Poor's 500
Composite Stock Price Index.
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 60 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 manager 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.
FUTURES CONTRACTS
The Fund purchases stock index futures contracts to manage cash flows, 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, 1999, the Fund had realized gains on futures
contracts of $8,427,566.
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, 1999, the Fund had outstanding futures
contracts as set forth below:
<TABLE>
<CAPTION>
EXPIRATION CONTRACTS TO UNREALIZED
DATE DELIVER/RECEIVE POSITION APPRECIATION
<S> <C> <C> <C>
635 S&P 500
June 1999 Index Futures Long $3,707,910
</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>
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1999 OCTOBER 31, 1998
INSTITUTIONAL SHARES: SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
Shares sold 20,443,236 $ 529,936,212 37,421,180 $ 818,155,777
Shares issued to
shareholders in payment of
distributions declared 546,425 13,345,674 1,421,571 29,500,992
Shares redeemed (14,075,453) (361,431,764) (33,733,666) (751,275,289)
NET CHANGE RESULTING FROM
INSTITUTIONAL SHARE
TRANSACTIONS 6,914,208 $ 181,850,122 5,109,085 $ 96,381,480
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1999 OCTOBER 31, 1998
INSTITUTIONAL SERVICE
SHARES: SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
Shares sold 9,361,589 $ 241,619,200 18,076,229 $ 397,272,246
Shares issued to
shareholders in payment of
distributions declared 264,828 6,443,710 546,583 11,354,168
Shares redeemed (5,050,477) (130,459,841) (10,230,460) (223,926,039)
NET CHANGE RESULTING
FROM INSTITUTIONAL SERVICE
SHARE TRANSACTIONS 4,575,940 $ 117,603,069 8,392,352 $ 184,700,375
<CAPTION>
SIX MONTHS ENDED PERIOD ENDED
APRIL 30, 1999 OCTOBER 31, 1998 1
CLASS C SHARES: SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
Shares sold 1,653,771 $ 43,212,660 771,237 $ 16,946,376
Shares issued to
shareholders in payment of
distributions declared 8,102 196,078 1,948 43,921
Shares redeemed (426,506) (11,213,473) (81,531) (1,819,889)
NET CHANGE RESULTING FROM
CLASS C SHARE TRANSACTIONS 1,235,367 $ 32,195,265 691,654 $ 15,170,408
NET CHANGE RESULTING FROM
SHARE TRANSACTIONS 12,725,515 $ 331,648,456 14,193,091 $ 296,252,263
</TABLE>
1 Reflects operations for the period from November 10, 1997 (date of initial
public investment) to October 31, 1998.
INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEE
Federated Investment Management Company, 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. Under the terms of a sub-advisory agreement
between the Manager and Northern Trust Quantitative Advisors, Inc. (the
"Sub-Manager"), the Sub-Manager receives an annual fee from the Manager 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 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 Shareholders
Services Company ("FSSC"), the Fund will pay FSSC up to 0.25% of average daily
net assets of the Fund for the period. The fee paid to FSSC is used to finance
certain services for shareholders and to maintain shareholder accounts. FSSC may
voluntarily choose to waive any portion of its fee. FSSC 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. 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.
<TABLE>
<CAPTION>
PERCENTAGE OF
AVERAGE DAILY NET
SHARE CLASS NAME ASSETS OF CLASS
<S> <C>
Institutional Service Shares 0.30%
Class C Shares 0.75%
</TABLE>
TRANSFER AND DIVIDEND DISBURSING AGENT FEES AND EXPENSES
Federated Services Company ("FServ"), through its subsidiary, 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.
INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the
period ended April 30, 1999, were as follows:
<TABLE>
<CAPTION>
<S> <C>
Purchases $177,585,093
Sales $ 26,904,365
</TABLE>
YEAR 2000
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.
Trustees
JOHN F. DONAHUE
THOMAS G. BIGLEY
JOHN T. CONROY, JR.
NICHOLAS P. CONSTANTAKIS
JOHN F. CUNNINGHAM
J. CHRISTOPHER DONAHUE
LAWRENCE D. ELLIS, M.D.
PETER E. MADDEN
CHARLES F. MANSFIELD, JR.
JOHN E. MURRAY, JR., J.D., S.J.D.
MARJORIE P. SMUTS
JOHN S. WALSH
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 and Secretary
RICHARD B. FISHER
Vice President
RICHARD J. THOMAS
Treasurer
GAIL CAGNEY
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 investment risk,
including the possible loss of principal.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by the fund's prospectus which contains facts concerning
its objective and policies, management fees, expenses, and other information.
[Graphic]
Federated
World-Class Investment Manager
SEMI-ANNUAL REPORT
Federated Max-Cap Fund
SEMI-ANNUAL REPORT TO SHAREHOLDERS
APRIL 30, 1999
[Graphic]
Federated
Federated Max-Cap Fund
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
1-800-341-7400
WWW.FEDERATEDINVESTORS.COM
Federated Securities Corp., Distributor
Cusip 31420E106
Cusip 31420E403
Cusip 31420E502
2052905 (6/99)
[Graphic]
SEMI-ANNUAL REPORT
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, which covers the six-month
period from November 1, 1998 through April 30, 1999. 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. 1
Over the six-month reporting period, the fund produced a total return of 18.32%
2 through dividend income of $0.07 per share, capital gains of $1.83 per share,
and a $0.90 increase in net asset value. On the last day of the reporting
period, the fund's net assets totaled $108 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,
[Graphic]
Glen R. Johnson
President
June 15, 1999
1 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.
2 Performance quoted reflects past performance and is not indicative of future
results. Investment return and principal value will fluctuate, so that an
investor's shares, when redeemed, may be worth more or less than their original
cost.
Investment Review
The fund's total return for the six months ended April 30, 1999 was 18.32%. 1
The target index, the Standard & Poor's Mid-Cap 400 Index (the "Index"), had a
total return of 18.86% 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.
Despite a downturn early in 1999, the U.S. stock market continued its strong
climb in the last six months. A much-anticipated milestone, the Dow Jones
Industrials Average reaching 10,000, was surpassed in the first quarter of 1999.
Investors found reasons for optimism in the strength in the U.S. economy, a
stabilization in some of the problem economies in Asia, signs of stronger
corporate earnings, and relatively stable interest rates.
During the last six months, large company stocks continued to outperform stocks
of medium and smaller-sized companies. However, the month of April showed a
reversal of this pattern. Investors may be losing faith in "nifty fifty"
large-cap growth stocks and turning their attention to medium and smaller
companies which look relatively cheap.
1 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.
Portfolio of Investments
APRIL 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-87.0% 1
BASIC MATERIALS-5.6%
6,200 AK Steel Holding Corp. $ 161,200
7,500 2 Airgas, Inc. 88,125
4,475 Albemarle Corp. 98,450
5,700 Bowater, Inc. 305,662
7,000 Cabot Corp. 189,000
2,300 Carpenter Technology Corp. 72,019
2,300 Chesapeake Corp. 74,750
1,200 Cleveland Cliffs, Inc. 47,775
9,500 Consolidated Papers, Inc. 287,375
7,600 Crompton and Knowles Corp. 153,900
4,500 2 Cytec Industries, Inc. 127,969
2,400 Dexter Corp. 98,550
8,800 Ethyl Corp. 45,100
3,750 Ferro Corp. 103,828
1,500 Fuller (H.B.) Co. 102,187
3,200 Georgia Gulf Corp. 51,000
9,200 Georgia-Pacific Corp. 236,900
4,400 Glatfelter (P.H.) Co. 56,375
5,200 Hanna (M.A.) Co. 84,175
12,000 IMC Global, Inc. 300,000
3,700 Lawter International, Inc. 44,400
5,400 Longview Fibre Co. 70,200
5,800 Lubrizol Corp. 160,587
8,100 Lyondell Chemical Co. 157,950
4,900 Martin Marietta Materials 302,881
700 2 Maxxam, Inc. 40,119
2,300 Minerals Technologies, Inc. 124,200
7,600 NOVA Corp. 197,600
4,900 Olin Corp. 71,662
2,700 Oregon Steel Mills 44,212
11,650 RPM, Inc. 163,828
2,900 Rayonier, Inc. 132,312
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
BASIC MATERIALS-CONTINUED
3,425 Schulman (A.), Inc. $ 59,937
12,700 Solutia, Inc. 309,562
10,673 Sonoco Products Co. 275,497
4,000 Southdown, Inc. 256,250
4,700 2 UCAR International, Inc. 107,806
3,500 Universal Corp. 89,031
10,600 Vulcan Materials Co. 506,150
5,667 Wausau-Mosinee Paper Corp. 93,505
6,100 Witco Corp. 116,281
TOTAL 6,008,310
CAPITAL GOODS-8.0%
6,300 AGCO Corp. 62,212
3,400 AMETEK, Inc. 77,562
3,076 Albany International
Corp., Class A 74,593
19,200 2 Allied Waste Industries, Inc. 339,600
10,100 2 American Power Conversion
Corp. 333,300
7,400 2 American Standard Cos. 338,550
3,200 Carlisle Cos., Inc. 156,800
3,800 Cordant Technologies, Inc. 175,275
7,293 Diebold, Inc. 175,488
5,000 Donaldson Co., Inc. 111,875
4,800 Federal Signal Corp. 118,800
4,000 Flowserve Corp. 74,500
4,400 GenCorp, Inc. 101,750
2,950 Granite Construction, Inc. 84,259
7,600 2 Gulfstream Aerospace Corp. 370,500
6,500 HON Industries, Inc. 175,500
4,700 Harsco Corp. 154,219
7,000 Hillenbrand Industries, Inc. 328,562
6,880 Hubbell, Inc., Class B 328,950
8,600 2 Jabil Circuit, Inc. 400,437
2,700 2 Jacobs Engineering Group,
Inc. 106,481
3,400 Kaydon Corp. 114,750
3,100 Kennametal, Inc. 82,344
3,300 2 Magnetek, Inc. 35,681
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
CAPITAL GOODS-CONTINUED
8,900 Miller Herman, Inc. $ 177,444
16,268 Molex, Inc. 524,643
3,700 Newport News Shipbuilding,
Inc. 96,894
1,800 Nordson Corp. 108,450
4,000 Pentair, Inc. 188,000
2,550 Precision Castparts Corp. 109,012
6,500 Premark International, Inc. 239,281
8,100 Reynolds & Reynolds Co.,
Class A 184,781
2,440 Ryerson Tull, Inc. 55,357
6,300 2 SCI Systems, Inc. 239,794
3,200 SPX Corp. 209,000
7,900 Sensormatic Electronics Corp. 94,800
1,100 2 Sequa Corp., Class A 62,356
14,800 Shaw Industries, Inc. 268,250
2,900 Standard Register 88,450
2,900 Stewart & Stevenson
Services 29,725
5,800 Sundstrand Corp. 416,150
6,175 Symbol Technologies, Inc. 294,856
2,200 Tecumseh Products Co.,
Class A 134,475
3,900 Teleflex, Inc. 169,894
4,550 Trinity Industries, Inc. 158,397
7,400 Unisource Worldwide, Inc. 60,125
7,135 2 Vishay Intertechnology, Inc. 124,417
4,400 Wallace Computer Services,
Inc. 101,475
2,800 Watts Industries, Inc.,
Class A 43,050
4,200 York International Corp. 173,250
TOTAL 8,674,314
COMMUNICATION SERVICES-1.0%
3,700 Aliant Communications, Inc. 163,725
14,300 Cincinnati Bell, Inc. 323,537
5,500 Comsat Corp. 178,750
6,400 Telephone and Data System,
Inc. 383,200
3,900 2 Vanguard Cellular Systems,
Inc., Class A 88,969
TOTAL 1,138,181
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
CONSUMER CYCLICALS-14.9%
6,000 2 ACNielsen Corp. $ 167,250
5,400 2 Abercrombie & Fitch Co.,
Class A 513,675
8,200 2 Apollo Group, Inc., Class A 202,950
2,700 Arvin Industries, Inc. 98,887
7,800 2 BJ's Wholesale Club, Inc. 207,187
2,300 Bandag, Inc. 73,312
7,200 2 Barnes & Noble, Inc. 250,200
14,600 2 Bed Bath & Beyond, Inc. 521,037
12,700 Belo (A.H.) Corp., Series A 274,637
21,300 2 Best Buy Co., Inc. 1,017,075
8,100 2 Borders Group, Inc. 116,944
2,800 Borg-Warner Automotive,
Inc. 158,900
6,100 2 Burlington Industries,
Inc. 49,562
7,900 Callaway Golf Co. 118,994
11,100 Cintas Corp. 763,125
9,900 2 Circus Circus Enterprises,
Inc. 208,519
5,350 Claire's Stores, Inc. 177,219
15,195 Clayton Homes, Inc. 169,044
9,600 2 CompUSA, Inc. 67,200
6,200 2 Dollar Tree Stores, Inc. 226,300
1,700 Enesco Group, Inc. 35,700
18,100 Family Dollar Stores, Inc. 436,662
4,000 Fastenal Co. 191,000
7,400 Federal-Mogul Corp. 324,675
5,400 2 Furniture Brands
International, Inc. 135,337
7,200 2 General Nutrition Cos.,
Inc. 119,250
4,200 2 Gtech Holdings Corp. 109,462
16,100 Harley Davidson, Inc. 959,962
6,250 Heilig-Meyers Co. 36,719
3,200 Houghton Mifflin Co. 142,800
3,000 2 Information Resources,
Inc. 23,250
11,300 International Game
Technology 200,575
11,000 2 Jones Apparel Group, Inc. 363,000
4,349 Lancaster Colony Corp. 128,295
3,200 2 Lands' End, Inc. 122,400
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
CONSUMER CYCLICALS-
CONTINUED
7,000 2 Lear Corp. $ 321,125
4,700 Lee Enterprises, Inc. 134,537
20,700 Leggett and Platt, Inc. 477,394
5,650 Mark IV Industries, Inc. 100,994
2,800 Media General, Inc., Class A 145,600
7,300 Meritor Automotive, Inc. 154,669
3,700 2 Micro Warehouse, Inc. 62,669
3,100 Modine Manufacturing Co. 96,875
6,400 2 Mohawk Industries, Inc. 206,400
600 NCH Corp. 32,700
3,600 2 Nine West Group, Inc. 102,600
2,200 OEA, Inc. 21,587
38,737 2 Office Depot, Inc. 852,214
13,150 2 Officemax, Inc. 133,144
5,200 Ogden Corp. 134,225
3,500 2 Payless ShoeSource, Inc. 169,531
4,300 Pittston Brink's Group 113,412
9,015 2 Promus Hotel Corp. 324,540
3,200 Rollins, Inc. 54,000
4,800 Ross Stores, Inc. 220,500
15,036 2 Saks, Inc. 425,707
1,700 2 Scholastic Corp. 80,378
7,100 2 Snyder Communications, Inc. 208,562
6,000 Sothebys Holdings, Inc.,
Class A 255,750
11,500 Stewart Enterprises, Inc.,
Class A 228,562
2,900 Superior Industries
International, Inc. 72,500
5,400 2 Tech Data Corp. 126,225
3,600 Tiffany & Co. 302,400
5,200 U.S.G. Corp. 303,550
6,300 Unifi, Inc. 88,200
10,400 Viad Corp. 343,850
6,300 Warnaco Group, Inc., Class A 168,131
1,100 Washington Post Co., Class B 631,400
3,300 Wellman, Inc. 47,231
5,900 2 WestPoint Stevens, Inc. 202,075
TOTAL 16,054,341
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
CONSUMER STAPLES-6.8%
3,050 Banta Corp. $ 65,003
11,512 Bergen Brunswig Corp.,
Class A 218,728
4,300 Bob Evans Farms, Inc. 78,744
6,975 2 Brinker International, Inc. 192,684
4,700 2 Buffets, Inc. 47,000
6,450 CBRL Group, Inc. 130,209
4,700 Carter Wallace, Inc. 82,544
3,531 2 Chris Craft Industries,
Inc. 165,957
2,000 Church and Dwight, Inc. 85,625
4,200 Dean Foods Co. 149,887
10,800 Dial Corp. 367,200
6,200 Dole Food, Inc. 196,850
2,900 Dreyers Grand Ice Cream, Inc. 39,512
10,525 Flowers Industries, Inc. 223,656
4,400 Hannaford Brothers Co. 191,950
7,700 Hormel Foods Corp. 282,975
9,800 IBP, Inc. 198,450
2,000 International Multifoods
Corp. 44,250
7,600 Interstate Bakeries Corp. 169,100
3,875 Kelly Services, Inc.,
Class A 98,086
3,200 Lance, Inc. 44,400
4,100 2 Lone Star Steakhouse &
Saloon 44,587
8,300 Manpower, Inc. 187,787
7,600 McCormick & Co., Inc. 230,375
11,700 2 Modis Professional
Services, Inc. 135,281
8,500 Olsten Corp. 57,375
7,700 2 Outback Steakhouse, Inc. 275,756
7,400 2 PSS World Medical, Inc. 72,150
3,100 2 Papa Johns International,
Inc. 124,581
7,700 2 Perrigo Co. 58,712
9,650 2 Robert Half International,
Inc. 230,394
4,900 Ruddick Corp. 86,669
2,200 Sbarro, Inc. 57,612
3,100 Smucker (J.M.) Co., Class A 66,650
19,000 2 Starbucks Corp. 701,812
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
CONSUMER STAPLES-CONTINUED
3,700 2 Suiza Foods Corp. $ 138,981
5,200 TCA Cable TV, Inc. 259,025
24,200 Tyson Foods, Inc., Class A 500,638
5,100 2 U.S. Foodservice, Inc. 214,519
5,400 Universal Foods Corp. 113,400
9,400 2 Univision Communications,
Inc., Class A 544,025
4,800 2 Vlasic Foods
International, Inc. 39,300
10,600 Whitman Corp. 173,575
TOTAL 7,386,014
ENERGY-3.9%
7,400 2 BJ Services Co. 197,950
14,400 ENSCO International, Inc. 267,300
18,200 2 Global Marine, Inc. 270,725
6,300 2 MidAmerican Energy
Holdings Co. 202,781
4,700 Murphy Oil Corp. 220,606
10,600 2 Nabors Industries, Inc. 217,963
6,000 Noble Affiliates, Inc. 192,375
13,800 2 Noble Drilling Corp. 270,825
17,418 2 Ocean Energy, Inc. 162,205
8,100 2 Parker Drilling Co. 32,400
8,125 Pennzoil-Quaker State Co. 105,117
10,500 Pioneer Natural Resources,
Inc. 122,719
13,200 Ranger Oil Ltd. 68,475
5,100 2 Smith International, Inc. 228,863
5,800 Tidewater, Inc. 153,700
16,100 Tosco Corp. 430,675
10,600 Transocean Offshore, Inc. 314,688
9,250 Ultramar Diamond Shamrock
Corp. 213,328
5,900 Valero Energy Corp. 131,644
6,800 2 Varco International, Inc. 76,925
10,666 Weatherford International,
Inc. 361,311
TOTAL 4,242,575
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
FINANCIALS-13.7%
27,850 Aflac, Inc. $ 1,510,863
7,300 Ambac Financial Group,
Inc. 440,738
6,400 American Financial Group,
Inc. 232,400
6,650 Associated Banc Corp. 241,894
5,700 Astoria Financial Corp. 285,713
4,300 CCB Financial Corp. 248,325
17,667 Charter One Financial,
Inc. 552,094
4,800 City National Corp. 185,400
13,400 2 Concord EFS, Inc. 447,225
12,000 Dime Bancorp, Inc. 276,750
12,100 2 E*Trade Group, Inc. 1,397,550
9,987 Edwards (AG), Inc. 349,545
5,300 Everest Re Holdings, Inc. 160,656
6,500 Finova Group, Inc. 314,031
19,825 First Security Corp. 376,675
13,500 First Tennessee National
Corp. 582,188
5,300 First Virginia Bank, Inc. 264,669
11,300 Greenpoint Financial Corp. 395,500
3,100 HSB Group, Inc. 117,413
16,400 Hibernia Corp., Class A 218,325
4,500 Horace Mann Educators Corp. 102,375
3,300 Investment Technology
Group, Inc. 114,263
5,400 Keystone Financial, Inc. 173,475
11,100 Marshall & Ilsley Corp. 777,000
7,550 Mercantile Bankshares
Corp. 279,350
14,950 North Fork Bancorp, Inc. 336,375
11,085 Old Kent Financial Corp. 523,766
14,300 Old Republic International
Corp. 279,744
3,200 PMI Group, Inc. 178,600
8,400 Pacific Century Financial
Corp. 182,700
15,050 PaineWebber Group, Inc. 706,409
6,800 Protective Life Corp. 266,475
4,500 Provident Financial Group,
Inc. 188,438
9,600 Reliastar Financial Corp. 352,800
16,700 Sovereign Bancorp, Inc. 227,538
<CAPTION>
SHARES VALUE
COMMON STOCKS-continued 1
FINANCIALS-CONTINUED
12,600 T. Rowe Price Associates $ 474,863
9,100 TCF Financial Corp. 263,900
3,500 Wilmington Trust Corp. 215,031
8,200 Zions Bancorp 546,838
TOTAL 14,787,894
HEALTH CARE-7.3%
2,900 2 Acuson Corp. 44,225
3,400 2 Agouron Pharmaceuticals, Inc. 200,813
5,400 2 Apria Healthcare Group, Inc. 84,375
3,000 Beckman Coulter, Inc. 144,563
10,800 2 Beverly Enterprises, Inc. 70,200
7,700 2 Biogen, Inc. 731,981
7,400 2 Centocor, Inc. 328,375
18,724 2 Chiron Corp. 376,821
4,900 2 Concentra Managed Care, Inc. 66,456
6,100 2 Covance, Inc. 133,819
5,500 Dentsply International, Inc. 144,031
6,400 2 First Health Group Corp. 104,400
8,700 2 Forest Labratories, Inc.,
Class A 387,150
12,840 2 Foundation Health Systems,
Inc., Class A 177,353
8,500 2 Genzyme Corp. 320,875
26,425 2 Health Management
Association, Class A 412,891
8,000 ICN Pharmaceuticals, Inc. 264,500
12,300 Ivax Corp. 161,438
6,100 2 Lincare Holdings, Inc. 180,713
5,600 2 Medimmune, Inc. 308,700
13,600 Mylan Laboratories, Inc. 308,550
9,400 Omnicare, Inc. 226,188
8,400 2 Oxford Health Plans, Inc. 167,475
4,798 2 PacifiCare Health Systems,
Inc., Class B 382,790
11,700 2 Quintiles Transnational
Corp. 474,581
7,600 2 Quorum Health Group, Inc. 94,050
3,000 2 Sepracor, Inc. 253,500
7,200 2 Steris Corp. 127,800
<CAPTION>
SHARES VALUE
COMMON STOCKS-continued 1
HEALTH CARE-CONTINUED
10,100 Stryker Corp. $ 617,994
10,800 2 Sybron International Corp. 299,025
8,500 2 Total Renal Care Holdings,
Inc. 117,938
4,400 2 Trigon Healthcare, Inc. 139,700
TOTAL 7,853,270
TECHNOLOGY-15.5%
14,200 2 ADC Telecommunications,
Inc. 678,938
10,200 2 Altera Corp. 736,950
16,866 2 Analog Devices, Inc. 592,418
10,050 2 Arrow Electronics, Inc. 182,784
10,500 2 Atmel Corp. 191,625
3,700 Avnet, Inc. 157,019
23,300 2 Cadence Design Systems, Inc. 316,006
6,200 2 Cambridge Technology
Partners, Inc. 89,513
6,400 2 Cirrus Logic, Inc. 45,200
9,000 2 Citrix Systems, Inc. 382,500
15,950 Comdisco, Inc. 419,684
7,050 2 Comverse Technology, Inc. 452,081
16,000 2 Convergys Corp. 298,000
9,000 2 Cypress Semiconductor
Corp. 92,250
6,400 2 Electronic Arts, Inc. 325,200
8,650 2 FIserv, Inc. 506,566
11,700 2 FORE Systems, Inc. 394,875
4,300 2 Imation Corp. 76,056
18,900 2 Informix Corp. 137,025
8,700 2 Integrated Device
Technology, Inc. 64,163
6,300 2 Intuit, Inc. 542,588
7,400 2 Keane, Inc. 183,613
4,000 2 Legato Systems, Inc. 161,750
6,900 2 Lexmark Intl. Group, Class A 852,150
15,800 Linear Technology Corp. 898,625
4,800 2 Litton Industries, Inc. 300,600
14,000 2 Maxim Integrated Products,
Inc. 784,000
6,900 2 Mentor Graphics Corp. 83,663
5,300 2 Microchip Technology, Inc. 185,500
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
TECHNOLOGY-CONTINUED
10,300 2 NCR Corp. $ 422,300
13,650 2 Network Associates, Inc. 180,863
10,600 2 Platinum Technology, Inc. 270,300
3,800 2 Policy Management System
Corp. 119,463
7,500 2 Qualcomm, Inc. 1,500,000
17,700 2 Quantum Corp. 316,388
9,000 2 Rational Software Corp. 266,625
4,600 2 Sequent Computer System,
Inc. 50,313
9,300 2 Siebel Systems, Inc. 357,469
10,037 2 Sterling Commerce, Inc. 314,284
8,700 2 Sterling Software, Inc. 179,981
10,560 2 Storage Technology Corp. 203,940
3,800 2 Structural Dynamics
Research Corp. 73,863
11,800 2 SunGard Data Systems, Inc. 376,863
5,800 2 Symantec Corp. 115,275
7,400 2 Synopsys, Inc. 348,725
8,800 2 Teradyne, Inc. 415,250
7,800 2 Vitesse Semiconductor
Corp. 361,238
15,200 2 Xilinx, Inc. 693,500
TOTAL 16,697,982
TRANSPORTATION-1.2%
5,100 Airborne Freight Corp. 163,200
2,800 2 Alaska Air Group, Inc. 123,375
4,700 Alexander and Baldwin,
Inc. 102,225
2,600 Arnold Industries, Inc. 41,275
5,000 CNF Transportation, Inc. 218,438
10,350 Comair Holdings, Inc. 228,347
5,200 GATX Corp. 178,750
3,700 Hunt (J.B.) Transportation
Services, Inc. 77,006
3,900 Overseas Shipholding
Group, Inc. 48,750
5,400 2 Wisconsin Central
Transportation Corp. 99,731
TOTAL 1,281,097
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
UTILITIES-9.1%
6,000 AGL Resources, Inc. $ 109,125
12,900 Allegheny Energy, Inc. 439,406
8,500 American Water Works Co.,
Inc. 241,719
2,300 Black Hills Corp. 52,038
3,400 CMP Group, Inc. 65,875
10,900 CMS Energy Corp. 479,600
2,400 Cleco Corp. 74,100
11,325 Conectiv, Inc. 271,092
16,900 DPL, Inc. 302,088
12,600 El Paso Energy Corp. 463,050
13,200 Energy East Corp. 348,975
10,200 Florida Progress Corp. 392,700
3,400 Hawaiian Electric
Industries, Inc. 120,913
4,000 Idacorp, Inc. 126,000
7,500 Illinova Corp. 196,875
3,166 Indiana Energy, Inc. 67,673
8,100 Interstate Energy Corp. 233,381
9,400 Ipalco Enterprises, Inc. 216,788
7,250 K N Energy, Inc. 149,531
6,500 Kansas City Power And Light Co. 173,875
15,400 Keyspan Energy Corp. 411,950
13,600 LG&E Energy Corp. 296,650
8,300 MCN Energy Group, Inc. 165,481
7,600 Minnesota Power And Light Co. 160,075
5,800 Montana Power Co. 432,463
4,100 National Fuel Gas Co. 179,375
5,400 Nevada Power Co. 139,388
6,300 New England Electric
System 311,850
13,500 NiSource, Inc. 374,625
13,700 Northeast Utilities Co. 219,200
8,500 OGE Energy Corp. 201,344
8,900 Pinnacle West Capital Corp. 345,431
12,500 Potomac Electric Power Co. 365,625
4,400 Public Service Co. New
Mexico 78,650
8,900 Puget Sound Energy, Inc. 219,719
<CAPTION>
SHARES OR
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
UTILITIES-CONTINUED
8,700 Questar Corp. $ 158,231
10,900 SCANA Corp. 256,150
13,900 TECO Energy, Inc. 296,244
9,500 Utilicorp United, Inc. 232,156
4,900 Washington Gas Light Co. 115,456
12,100 Wisconsin Energy Corp. 325,188
TOTAL 9,810,055
TOTAL COMMON STOCKS
(IDENTIFIED COST
$75,639,136) 93,934,033
SHORT-TERM U.S. GOVERNMENT
OBLIGATION-0.5%
$ 500,000 3 United States Treasury
Bill, 6/24/1999
(identified cost $496,722) 496,965
REPURCHASE AGREEMENT-12.4%
13,355,000 4 ABN AMRO, Inc., 4.94%, dated 4/30/1999, due 5/3/1999 (at
amortized
cost) 13,355,000
TOTAL INVESTMENTS
(IDENTIFIED COST
$89,490,858) 5 $ 107,785,998
</TABLE>
1 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 underlying face amount, at value, of
open Index futures contracts is $13,863,500 at April 30, 1999, which represents
12.8% of net assets. Taking into consideration these open Index futures
contracts, the Fund's effective total exposure to the Index is 99.8%.
2 Non-income producing security.
3 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.
4 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.
5 The cost of investments for federal tax purposes amounts to $89,490,858. The
net unrealized appreciation of investments on a federal tax basis amounts to
$18,295,140 which is comprised of $25,252,429 appreciation and $6,957,289
depreciation at April 30, 1999.
Note: The categories of investments are shown as a percentage of net assets
($108,017,287) at April 30, 1999.
See Notes which are an integral part of the Financial Statements
Statement of Assets and Liabilities
APRIL 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
<S> <C> <C>
ASSETS:
Total investments in
securities, at value
(identified and tax cost
$89,490,858) $ 107,785,998
Cash 1,095
Income receivable 74,388
Receivable for investments
sold 21,914
Receivable for shares sold 190,032
Receivable for daily
variation margin 90,500
TOTAL ASSETS 108,163,927
LIABILITIES:
Payable for investments
purchased $ 133,130
Accrued expenses 13,510
TOTAL LIABILITIES 146,640
Net assets for 6,197,509
shares outstanding $ 108,017,287
NET ASSETS CONSIST OF:
Paid in capital $ 77,972,512
Net unrealized
appreciation of
investments and futures
contracts 18,985,480
Accumulated net realized
gain on investments and
futures contracts 10,939,261
Undistributed net
investment income 120,034
TOTAL NET ASSETS $ 108,017,287
NET ASSET VALUE, OFFERING
PRICE AND REDEMPTION
PROCEEDS PER SHARE:
$108,017,287 / 6,197,509
shares outstanding $17.43
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Operations
SIX MONTHS ENDED APRIL 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 503,225
Interest 250,257
TOTAL INCOME 753,482
EXPENSES:
Investment advisory fee $ 183,022
Custodian fees 5,575
Transfer and dividend
disbursing agent fees and
expenses 13,995
Directors'/Trustees' fees 2,364
Auditing fees 7,459
Legal fees 1,218
Portfolio accounting fees 25,101
Shareholder services fee 114,389
Share registration costs 13,527
Printing and postage 15,101
Insurance premiums 1,017
Miscellaneous 2,006
TOTAL EXPENSES 384,774
WAIVERS:
Waiver of investment
advisory fee $ (7,684)
Waiver of shareholder
services fee (100,662)
TOTAL WAIVERS (108,346)
Net expenses 276,428
Net investment income 477,054
REALIZED AND UNREALIZED
GAIN ON INVESTMENTS
AND FUTURES CONTRACTS:
Net realized gain on
investments and futures
contracts 11,850,098
Net change in unrealized
appreciation of
investments
and futures contracts 3,326,883
Net realized and
unrealized gain on
investments
and futures contracts 15,176,981
Change in net assets
resulting from operations $ 15,654,035
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR
(unaudited) ENDED
APRIL 30, OCTOBER 31,
1999 1998
<S> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS
OPERATIONS:
Net investment income $ 477,054 $ 920,297
Net realized gain on
investments and futures
contracts ($11,850,098 and
$9,366,731, respectively,
as computed for federal tax
purposes) 11,850,098 8,082,541
Net change in unrealized
appreciation
(depreciation) of
investments
and futures contracts 3,326,883 (4,576,948)
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS 15,654,035 4,425,890
DISTRIBUTIONS TO
SHAREHOLDERS:
Distributions from net
investment income (409,184) (969,014)
Distributions from net
realized gains on
investments and futures
contracts (9,367,351) (6,088,545)
CHANGE IN NET ASSETS
RESULTING FROM
DISTRIBUTIONS
TO SHAREHOLDERS (9,776,535) (7,057,559)
SHARE TRANSACTIONS:
Proceeds from sale of
shares 34,908,137 81,315,222
Net asset value of shares
issued to shareholders in
payment of
distributions declared 6,334,903 4,352,710
Cost of shares redeemed (22,732,836) (73,280,883)
CHANGE IN NET ASSETS
RESULTING FROM SHARE
TRANSACTIONS 18,510,204 12,387,049
Change in net assets 24,387,704 9,755,380
NET ASSETS:
Beginning of period 83,629,583 73,874,203
End of period (including
undistributed net
investment income of
$120,034
and $52,164, respectively) $ 108,017,287 $ 83,629,583
</TABLE>
See Notes which are an integral part of the Financial Statements
Financial Highlights
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(unaudited)
APRIL 30, YEAR ENDED OCTOBER 31,
1999 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $16.53 $17.17 $13.75 $12.78 $11.02 $11.57
INCOME FROM
INVESTMENT OPERATIONS:
Net investment income 0.08 0.20 0.18 0.18 0.22 0.21
Net realized and unrealized
gain (loss) on investments and futures contracts 2.72 0.74 4.00 1.73 1.93 (0.07)
TOTAL FROM
INVESTMENT OPERATIONS 2.80 0.94 4.18 1.91 2.15 0.14
LESS DISTRIBUTIONS:
Distributions from net
investment income (0.07) (0.20) (0.17) (0.20) (0.20) (0.19)
Distributions from net
realized gain on investments and futures contracts (1.83) (1.38) (0.59) (0.74) (0.19) (0.50)
TOTAL DISTRIBUTIONS (1.90) (1.58) (0.76) (0.94) (0.39) (0.69)
NET ASSET VALUE, END OF PERIOD $17.43 $16.53 $17.17 $13.75 $12.78 $11.02
TOTAL RETURN 1 18.32% 5.73% 31.83% 15.80% 20.12% 1.25%
RATIOS TO AVERAGE NET ASSETS:
Expenses 2 0.84% 3 0.89% 0.91% 0.94% 1.01% 1.13%
Net investment income 2 0.80% 3 0.84% 0.88% 0.97% 1.48% 1.25%
Expenses (after waivers) 0.60% 3 0.61% 0.60% 0.60% 0.60% 0.54%
Net investment income
(after waivers) 1.04% 3 1.12% 1.19% 1.31% 1.89% 1.84%
SUPPLEMENTAL DATA:
Net assets, end of period
(000 omitted) $108,017 $83,630 $73,874 $59,948 $62,580 $44,012
Portfolio turnover 20% 25% 19% 17% 26% 30%
</TABLE>
1 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
2 During the period, certain fees were voluntarily waived. If such voluntary
waivers had not occurred, the ratios would have been as indicated.
3 Computed on an annualized basis.
See Notes which are an integral part of the Financial Statements
Notes to Financial Statements
APRIL 30, 1999 (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 60 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 manager 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.
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, 1999, the Fund had realized gains on futures
contracts of $1,354,736.
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, 1999, the Fund had outstanding futures contracts as set forth
below:
<TABLE>
<CAPTION>
EXPIRATION CONTRACTS TO UNREALIZED
DATE DELIVER/RECEIVE POSITION APPRECIATION
<S> <C> <C> <C>
70 S&P 400
June 1999 Index Futures Long $690,340
</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>
SIX MONTHS YEAR
ENDED ENDED
APRIL 30, OCTOBER 31,
1999 1998
<S> <C> <C>
Shares sold 2,119,922 4,760,000
Shares issued to
shareholders in payment of
distributions declared 404,579 268,514
Shares redeemed (1,385,629) (4,273,514)
NET CHANGE RESULTING FROM
SHARE TRANSACTIONS 1,138,872 755,000
</TABLE>
INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEE
Federated Investment Management Company, the Fund's manager (the "Manager"),
receives for its services an annual management fee equal to 0.40% of the Fund's
average daily net assets. Under the terms of a sub- advisory agreement between
the Manager and Northern Trust Quantitative 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. 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 Company ("FSSC"), the Fund will pay FSSC up to 0.25% of average daily
net assets of the Fund for the period. The fee paid to FSSC is used to finance
certain services for shareholders and to maintain shareholder accounts. FSSC may
voluntarily choose to waive any portion of its fee. FSSC 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 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.
INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the
period ended April 30, 1999, were as follows:
Purchases $ 22,214,368
Sales $ 16,291,332
YEAR 2000
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.
Trustees
JOHN F. DONAHUE
THOMAS G. BIGLEY
JOHN T. CONROY, JR.
NICHOLAS P. CONSTANTAKIS
JOHN F. CUNNINGHAM
J. CHRISTOPHER DONAHUE
LAWRENCE D. ELLIS, M.D.
PETER E. MADDEN
CHARLES F. MANSFIELD, JR.
JOHN E. MURRAY, JR., J.D., S.J.D.
MARJORIE P. SMUTS
JOHN S. WALSH
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 and Secretary
RICHARD B. FISHER
Vice President
RICHARD J. THOMAS
Treasurer
GAIL CAGNEY
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 investment risk,
including the possible loss of principal.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by the fund's prospectus which contains facts concerning
its objective and policies, management fees, expenses, and other information.
[Graphic]
Federated
World-Class Investment Manager
SEMI-ANNUAL REPORT
Federated Mid-Cap Fund
SEMI-ANNUAL REPORT
TO SHAREHOLDERS
APRIL 30, 1999
[Graphic]
Federated
Federated
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
1-800-341-7400
WWW.FEDERATEDINVESTORS.COM
Federated Securities Corp., Distributor
Cusip 31420E205
3042108 (6/99)
[Graphic]
SEMI-ANNUAL REPORT
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, which covers the six-month
period from November 1, 1998 through April 30, 1999. 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. 1 The fund is
managed passively to closely mirror the Russell 2000 Index,2 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 produced a total return of
13.60% for Institutional Shares and 13.08% for Class C Shares. 3 Institutional
Shares paid dividend income distributions totaling $0.07 per share and capital
gains distributions totaling $0.82 per share, while net asset value increased by
$0.80. Class C Shares paid dividend income distributions totaling $0.01 per
share and capital gains distributions totaling $0.82 per share, while net asset
value increased by $0.79. The fund's net assets reached $129.2 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,
[Graphic]
Glen R. Johnson
President
June 15, 1999
1 Small cap stocks have historically experienced greater volatility than
average.
2 The Russell 2000(R) 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.
3 Performance quoted reflects past performance and is not indicative of future
results. Investment return and principal value will fluctuate, so that an
investor's shares, when redeemed, may be worth more or less than their original
cost.
Investment Review
The fund's total returns for Institutional and Class C Shares for the six months
ended April 30, 1999 were 13.60% and 13.08%, respectively. 1
The target index, the Russell 2000 Index (the "Index"), had a total return of
15.16% 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.
Despite a downturn early in 1999, the U.S. stock market continued its strong
climb in the last six months. A much-anticipated milestone, the Dow Jones
Industrials Average reaching 10,000, was surpassed in the first quarter of 1999.
Investors found reasons for optimism in the strength in the U.S. economy, a
stabilization in some of the problem economies in Asia, signs of stronger
corporate earnings, and relatively stable interest rates.
During the last six months, large company stocks continued to outperform stocks
of medium and smaller-sized companies. However, the month of April showed a
reversal of this pattern. Investors may be losing faith in "nifty fifty"
large-cap growth stocks and turning their attention to medium and smaller
companies which look relatively cheap.
During the last six months, utilities, technology, and consumer/discretionary
were among the strongest performing sectors while oil, consumer staples, and
materials processing were among the worst performing sectors in the Index.
1 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.
Portfolio of Investments
APRIL 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-87.7% 1
Basic Materials-4.6%
1,800 2 ACX Technologies, Inc. $ 20,587
1,000 2 AFC Cable Systems, Inc. 33,000
5,900 AK Steel Holding Corp. 153,400
4,800 ASARCO, Inc. 88,200
2,100 2 ATMI, Inc. 48,300
8,000 2 Airgas, Inc. 94,000
2,535 Albemarle Corp. 55,770
2,100 2 Alpine Group, Inc. 29,137
2,400 Arch Coal, Inc. 29,100
11,800 2 Armco, Inc. 60,475
30,000 Battle Mountain Gold Co. 84,375
17,006 2 Bethlehem Steel Corp. 155,180
3,600 Birmingham Steel Corp. 22,050
1,600 2 Boise Cascade Office Products Corp. 19,800
3,100 2 Buckeye Technologies, Inc. 44,950
800 2 Bush Boake Allen, Inc. 21,950
900 2 CSS Industries, Inc. 22,725
4,400 2 Cadiz, Inc. 43,725
4,500 Calgon Carbon Corp. 26,156
3,000 Cambrex Corp. 76,875
3,300 Caraustar Industries, Inc. 84,150
400 Carbo Ceramics, Inc. 9,850
2,500 Carpenter Technology Corp. 78,281
6,200 2 Catalytica, Inc. 84,862
1,200 Centex Construction Products, Inc. 42,450
2,500 ChemFirst, Inc. 59,687
2,500 Chesapeake Corp. 81,250
1,400 2 Citation Corp. 16,625
1,500 Cleveland Cliffs, Inc. 59,719
1,500 Commonwealth Industries, Inc. 14,437
4,700 Corn Products International, Inc. 135,712
700 Curtiss Wright Corp. 25,156
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Basic Materials-continued
1,500 2 Daisytek International Corp. $ 25,125
1,600 Deltic Timber Corp. 44,400
3,000 Dexter Corp. 123,187
5,850 Dimon, Inc. 25,594
3,500 2 Earthshell Corp. 34,125
2,000 2 Embrace Systems Corp. 2
8,100 Ethyl Corp. 41,512
4,600 Ferro Corp. 127,362
1,800 Florida Rock Industries, Inc. 61,875
1,700 Fuller (H.B.) Co. 115,812
7,000 2 Gaylord Container Corp. 58,625
1,200 General Chemical Group, Inc. 21,975
3,100 Geon Co. 94,937
4,000 Georgia Gulf Corp. 63,750
4,058 2 Getchell Gold Corp. 138,479
1,200 2 Giant Cement Holding, Inc. 26,550
800 2 Gibraltar Steel Corp. 18,750
3,300 Glatfelter (P.H.) Co. 42,281
1,800 Greif Brothers Corp., Class A 45,675
5,800 Hanna (M.A.) Co. 93,887
7,200 2 Hecla Mining Co. 21,600
3,800 2 Kaiser Aluminum Corp. 29,687
13,100 LTV Corp. 83,512
3,200 Lawter International, Inc. 38,400
2,950 Lilly Industries, Inc., Class A 51,625
2,400 Lone Star Industries, Inc. 85,650
2,900 2 Lone Star Technologies, Inc. 49,844
6,800 Longview Fibre Co. 88,400
1,900 MacDermid, Inc. 79,681
5,000 2 Mail-Well, Inc. 65,312
2,100 Matthews International Corp., Class A 55,912
2,000 2 Maverick Tube Corp. 20,250
500 2 Maxxam, Inc. 28,656
1,100 2 McWhorter Technologies, Inc. 16,294
2,600 Minerals Technologies, Inc. 140,400
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Basic Materials-continued
3,469 Mississippi Chemical Corp. $ 31,655
2,800 NL Industries, Inc. 33,075
9,047 2 NOVA Corp. 235,222
2,600 2 NS Group, Inc. 21,612
2,800 National Steel Corp., Class B 26,250
3,050 OM Group, Inc. 110,944
1,800 2 Octel Corp. 25,200
300 2 Optical Cable Corp. 3,150
2,900 Oregon Steel Mills 47,487
1,000 Penford Corp. 13,062
4,300 2 Playtex Products, Inc. 70,950
3,800 Potlatch Corp. 157,462
1,900 Quanex Corp. 48,569
3,600 Rayonier, Inc. 164,250
1,200 Republic Group, Inc. 21,000
1,400 Roanoke Electric Corp. 18,812
1,550 Rock-Tenn Co. 19,375
1,000 2 Rogers Corp. 29,625
1,100 Rouge Industries, Inc., Class A 12,169
600 Schnitzer Steel Industries, Inc., Class A 8,587
4,200 Schulman (A.), Inc. 73,500
2,850 2 Shorewood Packaging Corp. 56,287
3,300 Southern Peru Copper Corp. 47,025
4,600 2 Steel Dynamics, Inc. 77,625
3,950 2 Stillwater Mining Co. 111,834
2,800 Texas Industries, Inc. 86,450
4,800 2 United Stationers, Inc. 81,900
4,400 Universal Corp. 111,925
1,200 Valhi, Inc. 14,550
2,700 2 Veterinary Centers of America 35,437
2,100 2 WHX Corp. 17,719
5,300 2 Walter Industries, Inc. 60,287
7,115 Wausau-Mosinee Paper Corp. 117,397
1,400 2 Zoltek Cos., Inc. 9,712
TOTAL 5,881,164
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Capital Goods-9.1%
3,550 AAR Corp. $ 67,450
3,150 AMCOL International Corp. 38,587
4,200 AMETEK, Inc. 95,812
1,000 2 Aavid Thermal Technologies 19,062
900 2 Advanced Energy Industries, Inc. 24,919
1,900 2 Advanced Lighting Technologies, Inc. 12,350
2,268 Albany International Corp., Class A 54,999
1,100 2 Alliant Techsystems, Inc. 90,062
1,300 Allied Products 7,150
2,050 American Business Products, Inc. 31,391
2,100 2 Amphenol Corp., Class A 72,581
5,060 Applied Power, Inc., Class A 159,706
4,100 Aptargroup, Inc. 114,800
24,200 2 Aqua Alliance, Inc. 51,425
4,297 2 Artesyn Technologies, Inc. 77,346
1,900 2 Astec Industries, Inc. 73,625
2,400 Aviall, Inc. 38,250
1,200 2 Aviation Sales Co. 48,000
3,200 2 BE Aerospace, Inc. 54,600
3,600 BMC Industries, Inc. 32,175
800 2 BWay Corp. 12,000
4,313 Baldor Electric Co. 83,295
4,000 Ball Corp. 219,750
1,900 Barnes Group, Inc. 40,019
3,200 Belden, Inc. 61,600
1,900 2 Bell & Howell Co. 63,531
1,400 2 Benchmark Electronics, Inc. 47,075
3,200 Blount International, Inc., Class A 89,200
2,700 Brady (W.H.) Co. 69,862
3,000 Briggs & Stratton Corp. 197,812
2,100 Brush Wellman, Inc. 31,631
700 Butler Manufacturing Co. 20,781
1,600 C&D Technologies, Inc. 41,300
3,200 CLARCOR, Inc. 60,000
1,484 CTS Corp. 79,208
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Capital Goods-continued
1,100 2 Carbide/Graphite Group, Inc. $ 14,300
900 2 Casella Waste Systems, Inc. 22,500
1,500 Castle (A.M.) & Co. 22,125
1,600 Century Aluminium Co. 12,800
2,150 Chart Industries, Inc. 21,366
1,300 2 Chase Industries, Inc. 12,106
3,900 2 Checkpoint System, Inc. 38,269
4,400 2 Cognex Corp. 127,600
1,300 2 Coleman Co., Inc. 9,425
1,500 Columbus McKinnon Corp. 31,500
4,800 2 Comfort Systems USA, Inc. 75,600
1,700 Commercial Intertech Corp. 21,781
1,700 Commercial Metals Corp. 40,056
700 Cubic Corp. 15,662
2,100 2 Cuno, Inc. 38,456
3,200 2 DII Group, Inc. 99,200
1,900 Daniel Industries, Inc. 31,231
2,800 2 Delco-Remy International, Inc. 27,475
1,100 2 Detroit Diesel Corp. 25,162
2,900 2 Dionex Corp. 118,900
5,000 Donaldson Co., Inc. 111,875
1,150 2 Ducommun, Inc. 13,081
600 2 Dupont Photomasks, Inc. 26,250
2,350 2 Dycom Industries, Inc. 107,366
1,500 2 Electro Scientific Industries, Inc. 57,187
1,700 2 Encore Wire Corp. 18,700
1,300 2 Evans & Sutherland Computer Co. 22,750
2,300 Exide Corp. 28,606
2,588 2 Fairchild Corp., Class A 34,776
5,900 Federal Signal Corp. 146,025
5,200 Fisher Scientific International, Inc. 96,850
4,978 Flowserve Corp. 92,715
4,500 2 Forest Oil Corp. 45,000
5,300 Foster Wheeler Corp. 71,550
600 Franklin Electronics, Inc. 37,500
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Capital Goods-continued
2,400 Furon Co. $ 42,900
1,850 2 Gardner Denver, Inc. 32,953
4,500 GenCorp, Inc. 104,062
800 General Binding Corp. 16,000
4,850 General Cable Corp. 72,144
1,600 2 Genlyte Group, Inc. 30,400
1,200 Gleason Corp. 20,475
3,200 2 Global Industrial Technologies, Inc. 42,200
1,912 Graco, Inc. 60,228
2,475 Granite Construction, Inc. 70,692
4,000 2 Griffon Corp. 29,250
3,600 2 Group Maintenance America Corp. 48,150
1,800 2 HADCO Corp. 47,250
3,800 2 Halter Marine Group, Inc. 23,037
1,300 Hardinge, Inc. 21,450
2,320 Harman International Industries, Inc. 106,575
1,400 Harmon Industries, Inc. 30,800
800 Heico Corp. 17,750
1,450 2 Holophane Corp. 37,428
2,400 2 Horizon Offshore, Inc. 17,100
6,700 Hussmann International, Inc. 106,362
1,400 2 Hypercom Corp. 9,100
3,800 IDEX Corp. 101,412
2,000 2 ITEQ, Inc. 3,375
2,000 Imco Recycling, Inc. 34,000
2,700 2 Insituform Technologies, Inc., Class A 51,469
2,600 2 Integrated Electrical Services 44,687
2,100 2 Ionics, Inc. 71,662
1,500 2 Itron, Inc. 12,375
5,300 JLG Industries, Inc. 85,131
600 2 JLK Direct Distribution, Inc., Class A 5,587
5,400 2 Jabil Circuit, Inc. 251,437
2,800 2 Jacobs Engineering Group, Inc. 110,425
2,300 Juno Lighting, Inc. 52,325
3,000 Kaman Corp., Class A 39,375
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Capital Goods-continued
4,200 Kaydon Corp. $ 141,750
1,500 2 Kellstrom Industries, Inc. 27,656
5,000 2 Kemet Corp. 77,187
4,700 Kimball International, Inc., Class B 75,200
1,800 2 Knoll, Inc. 43,200
2,000 2 LCC International, Inc., Class A 9,250
1,800 2 Ladish Co., Inc. 12,037
800 Lawson Products, Inc. 18,100
2,300 Libbey, Inc. 69,144
6,300 Lincoln Electric Holdings 129,937
1,550 Lindsay Manufacturing Co. 33,034
2,500 2 Littelfuse, Inc. 50,312
900 Lufkin Industries, Inc. 16,031
2,000 2 Lydall, Inc. 18,000
900 2 MOOG, Inc., Class A 28,012
3,500 2 Magnetek, Inc. 37,844
3,375 Manitowoc, Inc. 128,672
1,650 2 Mastec, Inc. 42,900
3,600 Metal Management, Inc. 8,550
3,700 2 Metals USA, Inc. 39,544
5,000 2 Mettler Toledo International, Inc., ADR 130,625
5,000 Milacron, Inc. 115,000
5,200 2 Miller Industries, Inc. 26,325
4,400 2 Morrison Knudsen Corp. 47,850
4,700 2 Mueller Industries, Inc. 148,050
2,441 Myers Industries, Inc. 55,228
829 NACCO Industries, Inc., Class A 66,994
1,700 New England Business Service, Inc. 46,431
8,960 2 Newpark Resources, Inc. 82,320
4,600 Newport News Shipbuilding, Inc. 120,462
1,500 2 Nichols Research Corp. 31,687
1,800 Nordson Corp. 108,450
1,200 2 Nortek, Inc. 34,725
2,300 2 Oak Industries, Inc. 96,025
1,300 OmniQuip International, Inc. 16,412
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Capital Goods-continued
700 2 PEC Israel Economic Corp. $ 21,306
1,200 Park Electrochemical Corp. 28,650
800 2 Parkervision, Inc. 21,700
4,596 2 Paxar Corp. 41,077
2,000 2 Plexus Corp. 66,750
3,200 Precision Castparts Corp. 136,800
3,600 2 Presstek, Inc. 26,550
1,200 Primex Technologies, Inc. 25,050
3,100 ROHN Industries, Inc. 6,200
1,900 RTI International Metals 25,294
3,600 2 Rayovac Corp. 97,200
1,300 2 Recoton Corp. 20,800
2,700 Regal Beloit Corp. 58,387
1,350 Reliance Steel & Aluminum Co. 49,191
1,000 Robbins & Myers, Inc. 21,562
4,000 Roper Industries, Inc. 114,000
3,311 Ryerson Tull, Inc. 75,118
1,950 2 SLI, Inc. 53,503
1,400 2 SPS Technologies, Inc. 61,075
4,000 SPX Corp. 261,250
3,900 Safety-Kleen Corp. 61,912
1,331 2 Samsonite Corp. 7,986
1,200 Sauer, Inc., ADR 11,400
1,400 Scotsman Industries, Inc. 28,262
2,300 Scott Technologies, Inc. 42,694
8,800 Sensormatic Electronics Corp. 105,600
800 2 Sequa Corp., Class A 45,350
2,000 2 Service Experts, Inc. 32,375
800 2 Shaw Group, Inc. 11,200
600 2 Shiloh Industries, Inc. 8,437
1,600 2 Silgan Holdings, Inc. 27,600
1,800 Smith (A.O.) Corp. 45,450
1,700 Spartech Corp. 40,375
500 2 Special Metals Corp. 2,781
1,500 2 Specialty Equipment Cos., Inc. 44,812
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Capital Goods-continued
1,700 Standard Register $ 51,850
1,500 Standex International Corp. 36,844
3,700 Stewart & Stevenson Services 37,925
900 Stone & Webster, Inc. 19,744
1,500 2 Stoneridge, Inc. 25,125
3,600 2 Superior Services, Inc. 66,150
1,537 Superior Telecom, Inc. 38,329
1,900 Technitrol, Inc. 55,575
2,500 Tecumseh Products Co., Class A 152,812
1,200 Tennant Co. 41,100
2,300 2 Terex Corp. 72,737
3,715 2 Tetra Tech, Inc. 89,857
1,400 2 Tetra Technologies, Inc. 13,125
2,100 2 Thermedics, Inc. 15,750
1,300 2 Thermo Fibertek, Inc. 9,262
2,100 Thomas Industries, Inc. 41,737
2,200 Titan International, Inc. 21,862
2,900 Titanium Metals Corp. 21,387
6,000 2 Tower Automotive, Inc. 138,000
2,700 Tredegar Industries, Inc. 72,056
500 Tremont Corp. 10,125
1,800 2 TriStar Aerospace Co. 19,125
1,600 2 Triumph Group, Inc. 43,400
4,800 2 UNOVA, Inc. 65,100
1,600 URS Corp. 36,900
9,200 Unisource Worldwide, Inc. 74,750
1,900 2 VWR Scientific Products Corp. 48,687
2,400 Valmont Industries, Inc. 40,200
2,500 2 Vicor Corp. 35,156
660 Virco Manufacturing Corp. 12,375
6,800 2 Vishay Intertechnology, Inc. 118,575
3,050 Wabash National Corp. 47,847
5,600 Wallace Computer Services, Inc. 129,150
500 2 Waste Industries, Inc. 9,250
16,800 2 Wastemasters, Inc. 3,150
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Capital Goods-continued
3,000 Watsco, Inc. $ 58,875
2,100 Watts Industries, Inc., Class A 32,287
1,723 West Pharmaceutical Services, Inc. 56,967
1,800 2 Wolverine Tube, Inc. 45,450
1,100 Woodward Governor Co. 27,225
2,600 2 Wyman Gordon Co. 36,400
3,100 2 Zebra Technologies Corp., Class A 103,075
TOTAL 11,782,602
Communication Services-1.0%
4,700 Aliant Communications, Inc. 207,975
1,700 CFW Communications Co. 39,312
1,233 2 Commonwealth Telephone Enterprises, Inc. 46,546
6,400 2 E.Spire Communications, Inc. 80,000
4,700 2 General Communications, Inc., Class A 21,737
2,200 2 IDT Corp. 62,700
6,700 2 ITC DeltaCom, Inc. 167,500
3,500 2 IXC Communications, Inc. 138,687
500 2 MGC Communications, Inc. 17,000
2,000 North Pittsburgh Systems, Inc. 33,750
3,000 2 PLD Telekom, Inc. 7,875
1,100 2 Pacific Gateway Exchange, Inc. 44,000
2,800 2 Primus Telecommunications Group, Inc. 46,725
2,800 2 Star Telecommunications, Inc. 27,125
4,000 2 Tel-Save Holdings, Inc. 48,000
1,000 2 Telegroup, Inc. 240
700 2 US LEC Corp., Class A 16,187
3,400 2 USN Communications, Inc. 102
3,400 2 Vanguard Cellular Systems, Inc., Class A 77,562
5,600 2 WinStar Communications, Inc. 272,300
TOTAL 1,355,323
Consumer Cyclicals-15.2%
400 2 800-JR CIGAR, Inc. 3,375
1,093 2 99 Cents Only Stores 51,508
2,900 2 ADVO, Inc. 57,275
1,100 2 AMERCO 24,750
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Consumer Cyclicals-continued
2,800 2 APAC Teleservices, Inc. $ 9,100
1,900 Aaron Rents, Inc. 31,587
2,000 Ackerley Communications, Inc. 34,375
1,900 2 Action Performance Cos., Inc. 64,362
6,720 2 Acxiom Corp. 169,680
2,600 2 Aftermarket Technology Co. 23,887
5,400 2 AgriBioTech, Inc. 41,512
2,000 2 Alternative Living Services, Inc. 44,500
2,000 2 AmeriPath, Inc. 18,750
1,800 2 American Eagle Outfitters, Inc. 134,550
1,737 2 American Homestar Corp. 12,159
5,600 2 American Media, Inc. 38,500
2,200 2 American Retirement Corp. 36,575
1,900 2 American Skiing Co. 9,737
500 Ameron, Inc. 20,156
3,000 2 Ames Department Stores, Inc. 104,812
4,800 2 Amkor Technology, Inc. 46,800
1,000 2 Anchor Gaming 47,250
2,500 2 Ann Taylor Stores Corp. 118,750
3,600 Apogee Enterprises, Inc. 44,100
1,340 2 Applied Graphics Technologies, Inc. 13,567
2,825 Applied Industrial Technologies, Inc. 42,022
2,650 Arctic Cat, Inc. 22,856
3,000 Arvin Industries, Inc. 109,875
2,000 2 Assisted Living Concepts, Inc. 5,750
2,500 Authentic Fitness Corp. 43,125
800 2 Avatar Holdings, Inc. 15,500
3,500 2 Avis Rent A Car, Inc. 109,812
5,900 2 Aztar Corp. 40,931
3,000 2 Bally Total Fitness Holding Corp. 72,750
1,700 Bandag, Inc. 54,187
1,200 2 Barnett, Inc. 11,550
1,700 Bassett Furniture Industries, Inc. 40,800
300 2 Berlitz International, Inc. 6,731
2,300 2 Black Box Corp. 78,775
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Consumer Cyclicals-continued
1,000 Blair Corp. $ 18,250
4,681 Borg-Warner Automotive, Inc. 265,647
1,700 2 Borg-Warner Security Corp. 29,962
1,400 2 Boron, LePore & Associates, Inc. 14,350
4,700 2 Boyd Gaming Corp. 24,969
2,100 Breed Technologies, Inc. 11,419
1,300 2 Brookdale Living Communities 19,662
2,400 Brown Group, Inc. 39,150
900 2 Buckle, Inc. 21,037
3,600 2 Budget Group, Inc., Class A 44,775
2,740 Burlington Coat Factory Warehouse 42,299
7,400 2 Burlington Industries, Inc. 60,125
1,300 Bush Industries, Inc., Class A 19,744
1,800 2 CB Richard Ellis Services 36,225
900 2 CDW Computer Centers, Inc. 80,550
2,445 2 CDnow, Inc. 47,372
4,600 2 CMG Information Services, Inc. 1,170,987
1,700 2 CORT Business Services Corp. 39,206
1,250 CPI Corp. 33,203
2,500 2 CSK Auto Corp. 62,500
1,400 2 Capital Senior Living Corp. 13,825
1,300 2 CareMatrix Corp. 22,262
3,100 2 Caribiner International, Inc. 20,344
1,200 2 Carriage Services, Inc. 23,025
6,900 Casey's General Stores, Inc. 91,425
1,700 2 Castle & Cooke, Inc. 25,075
2,400 2 Catalina Marketing Corp. 205,050
2,100 Cato Corp., Class A 23,625
2,600 Cavalier Homes, Inc. 24,537
4,700 2 CellNet Data Systems, Inc. 36,425
3,900 2 Central Garden & Pet Co. 54,600
1,450 Central Parking Corp. 45,947
6,600 2 Century Business Services, Inc. 79,200
3,400 2 Cerner Corp. 57,800
5,372 2 Champion Enterprises, Inc. 99,718
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Consumer Cyclicals-continued
1,300 2 Championship Auto Racing Teams, Inc. $ 40,056
12,800 2 Charming Shoppes, Inc. 49,600
1,100 Chemed Corp. 32,794
1,700 2 Children's Place Retail Stores, Inc. 61,625
4,900 2 Choice Hotels International, Inc. 76,562
1,000 Churchill Downs, Inc. 30,750
5,375 Claire's Stores, Inc. 178,047
2,200 Coachmen Industries, Inc. 41,525
1,700 2 Coinmach Laundry Corp. 20,825
1,300 2 Coldwater Creek, Inc. 19,175
1,800 2 Cole National Corp., Class A 27,900
7,800 2 Collins & Aikman Corp. 37,050
800 2 Columbia Sportswear Co. 10,850
2,300 2 Computer Learning Centers, Inc. 10,350
2,900 2 Cone Mills Corp. 17,581
4,900 2 Copart, Inc. 88,812
13,600 2 Corporate Express, Inc. 68,000
1,800 2 Cost Plus, Inc. 63,450
1,300 2 Crescent Operating, Inc. 5,119
1,000 2 Crossmann Communities, Inc. 26,250
1,200 Culp, Inc. 9,900
5,054 D. R. Horton, Inc. 97,605
4,600 2 Dal-Tile International, Inc. 51,750
2,600 2 Dan River, Inc., Class A 25,350
1,000 2 Day Runner, Inc. 12,500
7,800 2 DeVRY, Inc. 205,725
400 2 Delia's, Inc. 8,100
2,400 2 Department 56, Inc. 64,950
900 2 Diamond Technology Partners, Class A 19,125
1,100 2 Discount Auto Parts, Inc. 25,094
3,200 2 Dollar Thrifty Automotive Group 59,600
1,700 2 Donna Karan International, Inc. 14,556
3,800 2 DoubleClick, Inc. 531,287
1,300 Dover Downs Entertainment 21,694
2,500 2 Dress Barn, Inc. 36,562
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Consumer Cyclicals-continued
600 Duff & Phelps Credit Rating $ 34,200
488 2 Dura Automotive Systems, Inc. 13,969
400 2 EduTrek International, Inc., Class A 2,050
2,300 2 Education Management Corp. 45,856
1,700 Elcor Corp. 65,662
2,100 2 Elder-Beerman Stores Corp. 17,719
2,000 2 Electro Rent Corp. 22,750
2,100 Enesco Group, Inc. 44,100
9,300 2 Extended Stay America, Inc. 97,650
1,500 2 F.Y.I., Inc. 46,500
5,800 2 Fairfield Communities, Inc. 74,675
2,550 2 Family Golf Centers, Inc. 18,328
4,200 Fedders Corp. 24,150
2,200 2 Finish Line, Inc., Class A 33,137
900 2 Finlay Enterprises, Inc. 9,900
2,100 2 First Consulting Group, Inc. 24,150
3,200 2 Footstar, Inc. 108,200
1,800 Forest City Enterprises, Inc., Class A 44,437
300 2 Forrester Research, Inc. 10,200
1,150 2 Fossil, Inc. 35,362
2,800 2 Franklin Covey Co. 27,125
1,100 Freds, Inc. 12,856
1,500 2 Friedmans, Inc., Class A 15,750
2,450 G & K Services, Inc., Class A 114,537
1,200 2 Gadzooks, Inc. 11,400
1,500 2 Galey & Lord, Inc. 6,844
1,900 2 Garden Ridge Corp. 13,775
3,200 2 Genesco, Inc. 34,800
1,500 2 Genesis Direct, Inc. 5,859
9,400 2 Gentex Corp. 282,587
2,900 2 Getty Images, Inc. 75,400
1,000 Getty Realty Holding Corp. 13,625
2,100 2 Gibson Greetings, Inc. 13,256
2,100 2 Global DirectMail Corp. 32,025
2,400 2 Goody's Family Clothing, Inc. 21,600
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Consumer Cyclicals-continued
100 Grey Advertising, Inc. $ 32,294
1,600 2 Group 1 Automotive, Inc. 41,200
2,600 2 Grubb & Ellis Co. 15,762
5,300 2 Gtech Holdings Corp. 138,131
1,000 2 Guess ?, Inc. 7,625
2,200 Guilford Mills, Inc. 20,900
2,200 2 Guitar Center, Inc. 34,375
3,200 2 Gymboree Corp. 33,200
4,650 2 HA-LO Industries, Inc. 54,637
1,500 2 Hagler Bailly, Inc. 9,750
2,600 Hancock Fabrics, Inc. 16,412
4,100 Handleman Co. 57,656
3,700 2 Hanover Compressor Co. 106,144
15,300 2 Hanover Direct, Inc. 43,031
2,500 2 Harrah's Entertainment, Inc. 55,000
3,500 2 Hartmarx Corp. 16,625
1,100 Haverty Furniture Cos., Inc. 25,987
2,400 2 Hayes Lemmerz International, Inc. 69,000
7,800 Heilig-Meyers Co. 45,825
3,200 2 Henry Schein, Inc. 83,800
1,909 2 Hexcel Corporation 16,942
5,200 Hollinger International, Inc. 73,125
2,500 2 Hollywood Park, Inc. 32,187
5,000 2 Homebase, Inc. 25,000
2,300 2 Homestead Village, Inc. 9,200
3,200 Houghton Mifflin Co. 142,800
2,800 Hughes Supply, Inc. 65,100
1,200 Hunt Corp. 12,750
2,275 2 ITT Educational Services, Inc. 55,880
1,400 2 Igen, Inc. 35,175
5,548 2 Inacom Corp. 53,746
3,650 2 InfoUSA, Inc., Class B 26,234
3,700 2 Information Resources, Inc. 28,675
2,475 2 Insight Enterprises, Inc. 66,825
2,067 2 Insignia Financial Group, Inc. 25,964
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Consumer Cyclicals-continued
6,100 Interface, Inc. $ 43,081
2,500 Intermet Corp. 36,875
2,400 International Speedway Corp., Class A 123,600
1,600 2 International Telecommunication Data Systems, Inc. 18,100
1,750 Interpool, Inc. 25,703
2,200 Jo-Ann Stores, Inc. 35,475
2,100 2 Jones Lang LaSalle, Inc. 56,044
4,600 Jostens, Inc. 98,612
1,500 2 Journal Register Co. 21,844
3,175 2 Just For Feet, Inc. 40,084
2,300 Justin Industries, Inc. 31,050
800 2 K & G Men's Center, Inc. 8,700
1,517 K2, Inc. 15,454
5,200 Kaufman & Broad Homes Corp. 126,425
2,800 Kellwood Co. 72,100
900 2 Kenneth Cole Productions, Inc., Class A 24,862
2,000 2 Keystone Automotive Industries, Inc. 30,000
1,200 2 Kroll-O'Gara Co. 28,725
3,400 LNR Property Corp. 66,725
6,900 La-Z Boy Chair Co. 135,844
1,000 Landauer, Inc. 27,000
1,800 2 Lands' End, Inc. 68,850
1,600 2 Lason Holdings, Inc. 63,300
1,400 2 Learning Tree International, Inc. 13,650
5,800 Lee Enterprises, Inc. 166,025
5,100 2 Linens 'N Things, Inc. 233,325
3,500 Lodgian, Inc. 21,219
2,112 Lowe's Cos., Inc. 111,408
2,400 M.D.C. Holdings, Inc. 47,100
1,100 2 META Group, Inc. 10,037
231 2 MGM Grand, Inc. 10,164
2,975 Marcus Corp. 37,002
7,000 Mark IV Industries, Inc. 125,125
1,000 2 Marvel Enterprises, Inc. 9,375
4,800 Mascotech, Inc. 83,400
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Consumer Cyclicals-continued
2,500 2 Maxim Group, Inc. $ 20,156
1,200 2 Maximus, Inc. 31,200
2,925 McClatchy, Co., Class A 104,934
1,000 McGrath Rentcorp. 19,000
500 2 Meadowcraft, Inc. 3,531
3,100 Media General, Inc., Class A 161,200
1,600 2 MemberWorks, Inc. 70,000
2,837 2 Mens Wearhouse, Inc. 77,663
6,027 MeriStar Hospitality Corp. 138,621
6,942 2 Metromedia International Group, Inc. 40,784
2,250 2 Metzler Group, Inc. 62,719
3,200 2 Michaels Stores, Inc. 72,400
4,600 2 Micro Warehouse, Inc. 77,912
2,650 2 Microage, Inc. 13,912
2,200 Midas, Inc. 77,000
3,673 2 Midway Games, Inc. 31,454
1,200 Mikasa, Inc. 13,650
2,900 Modine Manufacturing Co. 90,625
1,650 2 Monaco Coach Corp. 45,787
1,200 Movado Group 28,950
4,700 2 Musicland Stores, Inc. 51,112
300 NCH Corp. 16,350
2,400 2 NCI Building System, Inc. 57,750
1,100 2 NCO Group, Inc. 35,887
2,300 2 NFO Worldwide, Inc. 26,019
1,200 2 NVR, Inc. 57,750
1,350 2 National RV Holdings, Inc. 34,931
4,400 2 Nautica Enterprise, Inc. 59,675
3,100 2 Nine West Group, Inc. 88,350
1,200 2 Norstan, Inc. 12,000
1,700 2 North Face, Inc. 19,975
3,600 2 NovaCare Employee Services 18,562
1,800 2 O'Reilly Automotive, Inc. 82,350
2,100 2 O'Sullivan Industries Holdings, Inc. 33,075
2,200 OEA, Inc. 21,587
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Consumer Cyclicals-continued
500 2 ONSALE, Inc. $ 12,687
6,200 Oakwood Homes Corp. 86,025
1,600 OshKosh B'Gosh, Inc., Class A 31,700
900 Oxford Industries, Inc. 23,794
2,725 2 Pacific Sunwear of California 101,080
2,462 2 Palm Harbor Homes, Inc. 49,548
1,100 2 Party City Corp. 3,987
2,100 2 Paymentech, Inc. 50,137
281 Penney (J.C.) Co., Inc. 12,821
700 2 Penske Motorsports, Inc. 25,375
15,200 2 PetSmart, Inc. 141,550
2,750 2 Petco Animal Supplies, Inc. 36,094
3,000 Phillips Van Heusen Corp. 26,250
900 Pillowtex Corp. 14,794
2,300 2 Playboy Enterprises, Inc., Class B 74,031
3,000 Polaris Industries, Inc., Class A 113,062
3,500 2 Polymer Group, Inc. 36,312
8,200 2 Premier Parks, Inc. 283,412
2,600 2 Prepaid Legal Services, Inc. 74,100
909 Price Enterprises, Inc. 5,284
2,800 2 Primark Corp. 64,575
7,000 2 Prime Hospitality Corp. 85,312
1,400 2 ProBusiness Services, Inc. 50,225
1,500 2 Profit Recovery Group International, Inc. 54,750
2,800 2 Protection One, Inc. 13,300
600 Puerto Rican Cement Co., Inc. 19,987
3,200 Pulte Corp. 72,400
1,600 2 Quaker Fabric Corp. 9,200
2,700 2 Quiksilver, Inc. 71,719
600 2 RWD Technologies, Inc. 10,350
1,900 2 Rambus, Inc. 114,237
3,600 2 Red Roof Inns, Inc. 59,400
3,450 Regis Corp. Minnesota 88,406
1,900 2 Rent-A-Center, Inc. 58,900
2,099 2 Rent-Way, Inc. 57,198
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Consumer Cyclicals-continued
3,100 2 Rental Service Corp. $ 69,944
2,300 Rollins, Inc. 38,812
1,400 Russ Berrie & Co., Inc. 38,062
4,000 Russell Corp. 88,500
1,900 Ryland Group, Inc. 49,875
4,900 2 SITEL Corp. 16,537
500 2 SM&A Corp. 3,750
1,400 Schawk, Inc. 16,100
1,700 2 Scholastic Corp. 80,378
2,400 2 Scotts Co. 98,700
3,400 Shopko Stores, Inc. 116,662
500 2 Silverleaf Resorts, Inc. 3,969
2,200 Simpson Industries, Inc. 22,550
600 2 Simpson Manufacturing Co., Inc. 27,750
1,000 Skyline Corp. 29,312
5,200 Sothebys Holdings, Inc., Class A 221,650
1,600 2 Speedway Motorsports, Inc. 69,400
3,700 Spiegel, Inc., Class A 27,750
4,200 2 Sports Authority, Inc. 29,137
1,400 Springs Industries, Inc., Class A 52,325
2,200 St. John Knits, Inc. 59,812
2,000 2 Staff Leasing, Inc. 25,500
3,500 2 Stage Stores, Inc. 22,531
1,300 Standard Motor Products, Inc. 30,225
3,300 Standard Pacific Corp. 45,581
2,125 Standard Products Co. 38,250
900 Starrett (L.S.) Co., Class A 25,931
2,700 2 Station Casinos, Inc. 44,381
3,600 2 Stein Mart, Inc. 36,000
1,200 2 Steinway Musical Instruments 28,275
900 Strayer Education, Inc. 31,162
6,100 Stride Rite Corp. 71,294
2,500 Sturm Ruger & Co., Inc. 26,562
1,400 2 Suburban Lodges of America, Inc. 9,625
5,600 2 Sunglass Hut International, Inc. 70,700
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Consumer Cyclicals-continued
1,800 2 Sunrise Assisted Living, Inc. $ 72,000
3,600 2 Sunterra Corp. 38,700
2,700 Superior Industries International, Inc. 67,500
4,900 2 Sylvan Learning Systems, Inc. 123,112
1,000 2 Syms Corp. 8,062
2,900 2 Syntroleum Corp. 18,125
1,600 TJ International, Inc. 44,400
1,600 2 TMP Worldwide, Inc. 107,600
1,500 Talbots, Inc. 47,250
2,700 2 TeleTech Holdings, Inc. 17,887
4,200 Terra Industries, Inc. 19,425
950 Thor Industries, Inc. 28,737
700 2 Timberland Co., Class A 48,475
3,100 2 Toll Brothers, Inc. 66,262
1,700 Toro Co. 59,181
3,700 2 Trammell Crow Co. 66,600
2,000 2 Trans World Entertainment Corp. 30,625
500 2 Trendwest Resorts, Inc. 9,000
3,400 Tyler Corp. 19,975
1,801 2 U.S. Home Corp. 61,684
1,500 2 U.S.A. Floral Products, Inc. 10,219
1,200 Unifirst Corp. 20,925
2,100 2 United Auto Group, Inc. 20,475
3,855 2 United Rentals, Inc. 114,927
1,900 Universal Forest Products, Inc. 37,822
1,300 2 Urban Outfitters, Inc. 25,187
3,500 2 Vail Resorts, Inc. 67,812
1,600 2 Value City Department Stores, Inc. 13,800
1,000 2 Vistana, Inc. 14,875
1,800 WD 40 Co. 48,150
1,300 Wackenhut Corp., Class A 29,169
1,900 Webb (Del) Corp. 43,937
4,100 Wellman, Inc. 58,681
2,200 2 Wellsford Real Properties 22,000
1,200 2 West Marine, Inc. 11,700
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Consumer Cyclicals-continued
2,300 2 West TeleServices Corp. $ 19,406
1,400 2 Wet Seal, Inc., Class A 57,050
3,300 Wiley (John) & Sons, Inc., Class A 133,444
1,400 2 Wilmar Industries, Inc. 16,975
2,900 Windmere-Durable Holdings 33,350
1,700 Winnebago Industries, Inc. 24,331
5,300 Wolverine World Wide, Inc. 63,600
1,887 Wynns International, Inc. 31,607
2,000 Xtra Corp. 82,750
4,700 2 Zale Corp. 177,719
TOTAL 19,578,740
Consumer Staples-6.9%
2,500 2 Adelphia Communications Corp., Class A 170,625
2,200 ABM Industries, Inc. 66,825
800 2 AMC Entertainment, Inc. 14,150
800 2 Administaff, Inc. 12,850
5,200 2 Advantica Restaurant Group 25,350
1,400 2 Agribrands International, Inc. 49,000
1,900 2 Alternative Resources Corp. 12,825
2,400 2 American Italian Pasta Co., Class A 64,500
3,300 Applebee's International, Inc. 85,181
3,900 2 Ascent Entertainment Group, Inc. 41,437
3,437 Avado Brands, Inc. 26,637
3,750 Banta Corp. 79,922
2,448 Bergen Brunswig Corp., Class A 46,502
2,400 2 Beringer Wine Estates Holdings, Inc., Class B 94,500
2,200 2 Big Flower Holdings, Inc. 78,375
2,166 Bindley Western Industries, Inc. 66,875
1,917 Block Drug, Inc., Class A 67,335
5,400 Bob Evans Farms, Inc. 98,887
4,800 Bowne & Co., Inc. 90,000
5,925 2 Buffets, Inc. 59,250
3,752 2 Building One Services Corp. 57,217
1,800 2 CD Radio, Inc. 44,100
1,400 2 CDI Corp. 37,187
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Consumer Staples-continued
2,350 2 CEC Entertainment, Inc. $ 88,125
2,100 2 Canandaigua Wine Co., Inc., Class A 108,150
1,000 2 Carmike Cinemas, Inc., Class A 21,562
2,900 Carter Wallace, Inc. 50,931
4,100 2 Century Communications Corp., Class A 201,156
2,100 2 Cheesecake Factory, Inc. 58,800
4,900 Chiquita Brands International 49,000
2,300 Church and Dwight, Inc. 98,469
300 Coca-Cola Bottling Co. 16,500
4,100 2 Computer Horizons Corp. 57,912
1,500 2 Consolidated Graphics, Inc. 63,937
2,657 2 Consolidated Products, Inc. 47,992
4,600 Coors Adolph Co., Class B 246,100
1,200 2 Cox Radio, Inc., Class A 58,500
2,100 Dames & Moore, Inc. 24,675
700 2 Data Processing Resources Corp. 8,837
1,700 2 Dave & Buster's, Inc. 34,850
2,700 Dreyers Grand Ice Cream, Inc. 36,787
2,200 2 Duane Reade, Inc. 58,987
5,600 Earthgrains Co. 118,650
1,500 2 Emmis Communications, Corp., Class A 67,500
1,200 2 Entertainment, Inc. 10,800
100 Farmer Brothers Co. 19,875
5,000 Fleming Cos., Inc. 43,750
3,600 2 Florida Panthers Holdings, Inc. 31,950
1,800 Foamex International, Inc. 10,462
4,400 2 Foodmaker, Inc. 106,150
1,100 2 French Fragrances, Inc. 8,319
700 2 GC Cos., Inc. 24,587
2,600 Gaylord Entertainment Co. 80,600
834 2 General Cigar Holdings, Inc. 7,037
700 Gray Communications 11,419
2,300 Great Atlantic & Pacific Tea Co., Inc. 70,725
1,800 2 Hain Food Group, Inc. 32,175
4,100 Harland (John H.) Co. 67,906
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Consumer Staples-continued
1,633 Herbalife International, Inc., Class A $ 16,942
3,800 Herbalife International, Inc., Class B 32,775
3,800 2 Hollywood Entertainment Corp. 93,812
3,700 2 Host Marriott Services Corp. 26,362
1,200 2 IHOP Corp. 54,900
2,554 Imperial Sugar Co. 18,197
1,200 Ingles Markets, Inc., Class A 13,800
6,200 2 Interim Services, Inc. 107,725
2,200 International Multifoods Corp. 48,675
2,400 2 Ivex Packaging Corp. 47,250
1,900 Jones Intercable, Inc., Class A 88,112
3,000 2 Labor Ready, Inc. 117,750
2,900 Lance, Inc. 40,237
3,400 2 Landrys Seafood Restaurants, Inc. 27,625
5,100 2 Lone Star Steakhouse & Saloon 55,462
4,000 Longs Drug Stores Corp. 137,500
3,000 Luby's Cafeterias, Inc. 50,250
1,582 McKesson HBOC, Inc. 55,370
600 2 Media Arts Group, Inc. 5,250
1,800 Merrill Corp. 26,775
3,750 2 Metamor Worldwide, Inc. 73,359
900 2 Metro Networks, Inc. 40,500
1,700 Michael Foods, Inc. 38,887
1,000 2 Mondavi Robert Corp., Class A 36,250
7,300 2 NBTY, Inc. 36,956
1,200 2 NPC International, Inc. 21,600
5,433 2 NTL, Inc. 414,266
900 National Presto Industries, Inc. 31,444
1,874 Natures Sunshine Products, Inc. 20,028
2,000 Norrell Corp. 30,000
8,800 Olsten Corp. 59,400
1,100 2 Omega Protein Corp. 5,569
1,400 2 On Assignment, Inc. 42,437
1,300 2 On Command Corp. 17,144
1,800 Oneida Ltd. 43,425
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Consumer Staples-continued
2,575 Owens & Minor, Inc. $ 25,428
500 2 P. J. America, Inc. 11,750
9,200 2 PSS World Medical, Inc. 89,700
2,650 2 Papa Johns International, Inc. 106,497
2,800 2 Patterson Dental Co. 100,975
2,400 2 Paxson Communications Corp. 25,650
1,100 2 Pegasus Communications Corp. 45,100
1,650 2 Performance Food Group Co. 43,725
8,400 2 Perrigo Co. 64,050
500 Pilgrims Pride Corp. 9,312
4,800 2 Planet Hollywood International, Inc., Class A 4,500
5,200 2 Prociurenet, Inc. 780
4,400 2 RCN Corp. 213,950
3,000 2 Rainforest Cafe, Inc. 16,500
4,100 2 Ralcorp Holdings, Inc. 75,337
600 2 RemedyTemp, Inc., Class A 7,012
1,820 2 Renaissance Worldwide, Inc. 12,057
6,200 Richfood Holdings, Inc. 77,500
1,000 Riviana Foods, Inc. 19,500
4,610 2 Romac International, Inc. 51,862
3,800 Ruby Tuesday, Inc. 69,350
3,600 Ruddick Corp. 63,675
5,200 2 Ryan's Family Steak Houses, Inc. 64,350
1,400 2 SCB Computer Technology, Inc. 9,450
3,000 2 SFX Entertainment, Inc., Class A 185,250
1,300 2 SOS Staffing Services, Inc. 9,100
1,750 Sbarro, Inc. 45,828
1,800 Schweitzer-Mauduit International, Inc. 29,812
1,300 2 Scientific Games Holdings Corp. 20,800
1,300 Smart & Final, Inc. 13,081
4,800 2 Smithfield Foods, Inc. 113,400
3,400 Smucker (J.M.) Co., Class A 73,100
2,425 2 Sonic Corp. 68,203
18,700 2 Southland Corp. 46,750
3,100 2 Spelling Entertainment Group, Inc. 27,512
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Consumer Staples-continued
2,200 2 StaffMark, Inc. $ 22,275
900 Stepan, Co. 22,725
2,600 2 Synetic, Inc. 245,537
1,700 TCBY Enterprises, Inc. 11,581
8,200 2 TCI Satellite Entertainment, Inc. 24,087
1,200 Tejon Ranch Co. 27,150
1,900 2 The Boston Beer Co., Inc., Class A 16,031
1,900 2 Thermolase Corp. 4,869
1,482 2 Triarc Companies, Inc., Class A 29,362
4,500 2 US Satellite Broadcasting Co., Class A 80,437
5,300 2 United International Holdings, Inc., Class A 316,675
600 2 United Natural Foods, Inc. 15,075
500 United Television, Inc. 50,250
6,700 Universal Foods Corp. 140,700
4,700 2 Valassis Communications, Inc. 263,200
3,300 2 Vlasic Foods International, Inc. 27,019
1,050 2 Volt Information Science, Inc. 18,375
1,300 2 Wackenhut Corrections Corp. 24,131
900 2 Westaff, Inc. 6,637
2,800 2 Westwood One, Inc. 95,900
1,200 2 Young Broadcasting, Inc., Class A 50,850
5,000 2 World Color Press 127,812
1,400 2 Wild Oats Markets, Inc. 38,762
2,000 Zapata Corp. 17,625
4,600 2 Zila, Inc. 18,400
TOTAL 8,945,050
Energy-2.2%
1,400 2 Atwood Oceanics, Inc. 48,825
4,170 2 Barrett Resources 126,664
900 2 Belco Oil & Gas Corp. 6,862
3,500 2 Benton Oil & Gas Co. 14,656
2,400 Berry Petroleum Co., Class A 30,300
3,500 2 Brown Tom, Inc. 52,281
3,000 Cabot Oil & Gas Corp., Class A 52,500
600 2 Cal Dive International, Inc. 19,200
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Energy-continued
2,600 2 Calpine Corp. $ 110,825
7,284 Chesapeake Energy Corp. 16,844
35 Chevron Corp. 3,491
3,200 2 Comstock Resources, Inc. 15,000
5,125 Cross Timbers Oil Co. 56,055
2,900 Devon Energy Corp. 96,425
5,500 EEX Corp. 35,750
2,000 2 Forcenergy, Inc. 2,437
1,600 2 Friede Goldman International, Inc. 29,900
3,700 2 Frontier Oil Corp. 19,887
19,100 2 Grey Wolf, Inc. 45,362
1,000 2 Gulf Island Fabrication, Inc. 15,000
2,200 2 HS Resources, Inc. 23,375
17,300 2 Harken Energy Corp. 38,925
6,500 Helmerich & Payne, Inc. 167,375
700 Holly Corp. 9,844
2,100 2 IRI International Corp. 11,681
5,900 2 Input/Output, Inc. 42,775
3,300 KCS Energy, Inc. 4,537
2,400 2 Key Energy Group, Inc. 8,250
2,584 2 Louis Dreyfus Natural Gas Corp. 49,419
6,800 2 Marine Drilling Cos., Inc. 116,875
5,792 2 Meridian Resource Corp. 33,666
2,600 Mitchell Energy & Development Corp., Class A 39,162
4,700 2 Newfield Exploration Co. 126,312
2,600 2 Nuevo Energy Co. 41,275
500 2 OMNI Energy Services Corp. 2,250
8,300 2 Ocean Energy, Inc. 77,294
3,000 2 Oceaneering International, Inc. 49,500
2,800 2 Offshore Logistics, Inc. 34,650
8,100 2 Parker Drilling Co. 32,400
4,100 2 Patterson Energy, Inc. 33,056
800 Penn Virginia Corp. 15,800
2,200 2 Plains Resources, Inc. 37,537
5,200 Pogo Producing Co. 99,775
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Energy-continued
2,800 2 Pool Energy Services Co. $ 50,225
6,600 2 Pride International, Inc. 77,137
4,600 Range Resources Corp. 23,575
13,400 2 Santa Fe Energy Resource, Inc. 120,600
3,100 2 Seitel, Inc. 53,862
4,400 Snyder Oil Corp. 80,025
1,400 St. Mary Land & Exploration Co. 26,950
1,800 2 Stone Energy Corp. 61,087
2,800 2 Superior Energy Services, Inc. 14,350
1,930 2 Swift Energy Co. 22,195
4,200 2 Tesoro Petroleum Corp. 47,512
1,100 2 The Houston Exploration Co. 20,900
800 2 Thermo Ecotek Corp. 5,300
4,700 2 Titan Exploration, Inc. 26,437
1,500 2 TransTexas Gas Corp. 937
3,400 2 Transmontaigne, Co. 48,450
5,800 2 Tuboscope, Inc. 79,025
1,600 2 UTI Energy Corp. 21,400
3,000 2 Veritas DGC, Inc. 60,750
4,900 Vintage Petroleum, Inc. 52,675
TOTAL 2,787,389
Financials-19.8%
1,695 1st Source Corp. 50,002
3,350 Aames Financial Corp. 5,862
1,500 2 Acceptance Insurance Cos., Inc. 21,094
1,100 2 Advance Paradigm, Inc. 57,750
3,100 Advanta Corp., Class A 41,850
1,000 Advest Group, Inc. 20,250
2,300 2 Affiliated Managers Group 66,844
1,000 Alabama National Bancorp 24,625
400 2 Alexander's, Inc. 29,275
1,400 Alexandria Real Estate Equities, Inc. 39,462
3,200 Alfa Corp. 54,000
3,825 Amcore Financial, Inc. 80,325
2,012 AmerUs Life Holdings, Inc., Class A 45,018
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Financials-continued
2,400 2 AmeriTrade Holding Corp., Class A $ 320,550
1,047 American Annuity Group, Inc. 23,034
3,000 American Health Properties, Inc. 59,437
2,100 American Heritage Life Investments 48,694
8,200 2 Americredit Corp. 135,812
3,100 2 Amerin Corp. 72,656
1,800 Amli Residential Properties Trust 39,262
2,200 Anchor Bancorp Wisconsin, Inc. 40,425
900 Andover Bancorp, Inc. 27,675
2,600 Anthracite Capital, Inc. 19,662
5,100 2 Arcadia Financial Ltd. 34,744
1,300 Area Bancshares Corp. 34,287
2,300 Argonaut Group, Inc. 57,500
3,100 Arm Financial Group, Inc., Class A 43,012
2,300 Associated Estates Realty Corp. 26,594
2,124 BB&T Corp. 84,827
1,446 2 BOK Financial Corp. 37,234
5,794 BRE Properties, Inc., Class A 144,126
950 BSB Bancorp, Inc. 24,403
1,660 BT Financial Corp. 42,019
1,600 Baldwin & Lyons, Inc., Class B 37,600
600 BancFirst Corp. 21,300
900 BancFirst Ohio Corp. 23,737
2,800 BancWest Corp. 111,475
5,820 Bancorpsouth, Inc. 96,757
1,456 Bank Granite Corp. 34,944
2,500 2 Bank Plus Corp. 11,562
4,800 BankAtlantic Bancorp, Inc., Class B 38,550
1,600 BankUnited Financial Corp., Class A 14,000
3,070 Banknorth Group, Inc. 81,163
2,500 Bay View Capital Corp. 44,531
3,000 Bedford Property Investors, Inc. 51,562
2,750 Berkley, W. R. Corp. 75,625
4,800 Berkshire Realty Co., Inc. 55,200
1,700 Blanch, E. W. Holdings, Inc. 100,087
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Financials-continued
2,200 Boykin Lodging Co. $ 33,688
3,146 Bradley Real Estate, Inc. 62,723
4,400 Brandywine Realty Trust 83,050
1,572 Brenton Banks, Inc. 24,956
1,800 Brookline Bancorp, Inc. 20,250
4,200 Burnham Pacific Properties, Inc. 48,300
3,000 CBL & Associates Properties, Inc. 73,688
1,100 CFSB Bancorp, Inc. 32,175
3,000 CMAC Investment Corp. 137,625
2,200 CNA Surety Corp. 29,700
4,074 CNB Bancshares, Inc. 172,890
1,440 CVB Financial Corp. 33,120
2,400 Cabot Industrial Trust 48,900
5,833 Camden Property Trust 157,491
2,400 Capital Automotive 31,200
500 Capital City Bank Group, Inc. 11,688
2,900 Capital Re Corp. 56,731
1,100 Capitol Transamerica Corp. 16,638
8,050 Capstead Mortgage Corp. 46,791
2,900 Carolina First Corp. 78,300
3,270 Cash America International, Inc. 41,693
900 Cathay Bancorp, Inc. 31,388
2,420 2 Centennial Bancorp 31,006
2,300 CenterPoint Properties Corp. 82,656
3,400 CenterTrust Retail Properties, Inc. 37,400
1,200 Century South Banks, Inc. 31,200
2,700 Charter Municipal Mortgage Acceptance Co. 34,763
1,100 Chartwell Re Corp. 20,350
2,800 Chateau Communities, Inc. 81,375
2,000 Chelsea GCA Realty, Inc. 65,875
1,757 Chemical Financial Corp. 57,981
1,800 Chicago Title Corp. 70,313
1,906 Chittenden Corp. 54,798
1,900 2 ChoicePoint, Inc. 112,813
3,200 Citizens Banking Corp. 104,200
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Financials-continued
2,233 City Holding Co. $ 65,874
3,400 Colonial Properties Trust 93,075
1,300 2 Columbia Banking Systems, Inc. 22,100
3,420 Commerce Bancorp, Inc. 150,887
3,400 Commerce Group, Inc. 77,350
7,910 Commercial Federal Corp. 191,818
3,800 Commercial Net Lease Realty 47,738
1,969 Commonwealth Bancorp 30,520
1,000 Community Bank System, Inc. 25,313
6,200 Community First Bankshares, Inc. 126,713
1,425 Community Trust Bancorp, Inc. 30,983
1,700 Conning Corp. 28,050
1,500 2 ContiFinancial Corp. 9,188
5,100 Cornerstone Realty Income Trust, Inc. 50,681
1,000 Corus Bankshares, Inc. 31,000
3,300 Cousins Properties, Inc. 114,675
4,650 Crawford & Co., Class B 54,347
2,900 2 Credit Acceptance Corp. 20,300
6,500 Criimi Mae, Inc. 15,031
3,000 Crown American Realty Trust 21,750
3,540 Cullen Frost Bankers, Inc. 190,939
1,100 D & N Financial Corp. 25,300
1,500 2 DVI, Inc. 21,281
1,600 Dain Rauscher Corp. 68,600
1,965 2 Delphi Financial Group, Inc., Class A 61,161
600 2 Delta Financial Corp. 4,725
7,500 Developers Diversified Realty 118,594
1,900 Dime Community Bancorp, Inc. 42,750
4,100 Doral Financial Corp. 72,263
2,684 Downey Financial Corp. 53,680
5,700 Dynex Capital, Inc. 16,744
19,800 2 E*Trade Group, Inc. 2,286,900
2,100 EastGroup Properties, Inc. 37,931
3,800 Eaton Vance Corp. 86,688
3,200 Enhance Financial Services Group, Inc. 66,200
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Financials-continued
1,800 Entertainment Properties Trust $ 33,075
4,800 Equity Inns, Inc. 44,100
1,900 Essex Property Trust, Inc. 59,969
1,700 Everen Capital Corp. 49,938
1,400 Executive Risk, Inc. 100,450
840 F & M Bancorp 27,300
2,067 F & M Bancorporation, Inc. 81,647
2,855 F & M National Corp. 79,405
4,100 FBL Financial Group, Inc., Class A 81,488
2,364 FNB Corp. 58,214
1,200 2 FPIC Insurance Group, Inc. 54,000
900 Farmers Capital Bank Corp. 32,231
400 2 Federal Agricultural Mortgage Association, Class C 22,775
5,200 Federal Realty Investment Trust 124,150
8,478 FelCor Lodging Trust, Inc. 202,942
3,052 Fidelity National Financial, Inc. 55,699
1,250 2 Financial Federal Corp. 26,094
6,750 First American Financial Corp. 120,656
2,100 First Charter Corp. 45,413
800 First Citizens Bancshares, Inc., Class A 64,200
1,600 First Commerce Bancshares, Inc., Class B 40,400
4,000 First Commmonwealth Financial Corp. 87,500
2,100 First Federal Capital Corp. 29,925
3,729 First Financial Bancorp 80,640
1,216 First Financial Bankshares, Inc. 39,216
857 First Financial Corp. 34,494
1,800 First Financial Holdings, Inc. 35,775
1,207 First Indiana Corp. 23,537
5,000 First Industrial Realty Trust 134,375
1,500 First Liberty Financial Corp. 48,000
1,300 First Merchants Corp. 27,950
3,304 First Midwest Bancorp, Inc. 131,954
1,200 2 First Republic Bank 30,900
4,087 First Sentinel Bancorp, Inc. 31,166
1,500 2 First Sierra Financial, Inc. 37,313
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Financials-continued
4,100 First Union Real Estate Equity $ 16,913
1,640 First Union Real Estate Equity, Rights 205
2,800 First United Bancshares 42,350
1,540 First Washington Bancorp, Inc. 30,993
1,503 First Western Bancorp, Inc. 50,914
700 2 FirstCity Financial Corp. 7,438
2,600 2 FirstFed Financial Corp. 45,013
3,300 Firstbank Corp. 85,181
1,815 Firstmerit Corp. 50,480
700 Flagstar Bancorp, Inc. 17,850
2,300 Foremost Corp. of America 47,869
6,400 Franchise Finance Corp. of America 148,400
1,300 2 Franchise Mortgage Acceptance Co. LLC 10,969
1,700 Freedom Securities Corp. 30,919
3,100 2 Friedman, Billings, Ramsey Group, Inc., Class A 46,113
1,600 2 Frontier Financial Corp. 36,200
4,153 Frontier Insurance Group, Inc. 57,363
700 Fund American Enterprises, Inc. 100,800
1,900 GBC Bancorp 33,606
3,400 Gables Residential Trust 80,963
2,300 Gallagher (Arthur J.) & Co. 109,250
4,700 General Growth Properties, Inc. 173,019
4,100 Glenborough Realty Trust, Inc. 70,469
3,100 Glimcher Realty Trust 52,506
1,100 Gold Banc Corp., Inc. 17,050
1,000 Golf Trust of America, Inc. 22,188
2,180 Grand Premier Financial, Inc. 24,525
2,200 Great Lakes REIT, Inc. 33,963
1,300 Greater Bay Bancorp 39,163
1,612 Greenpoint Financial Corp. 56,420
1,200 Guarantee Life Co., Inc. 24,000
5,000 HCC Insurance Holdings, Inc. 105,625
3,800 HSB Group, Inc. 143,925
2,300 2 Hambrecht & Quist Group 81,075
1,000 2 Hamilton Bancorp, Inc. 25,750
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Financials-continued
1,255 Hancock Holding Co. $ 55,848
1,907 Harbor Florida Bancshares, Inc. 22,407
1,500 Harleysville Group, Inc. 27,938
893 Harleysville National Corp. 31,255
1,100 Harris Financial, Inc. 13,200
1,200 Haven Bancorp, Inc. 16,125
4,100 Health Care Property Investors, Inc. 126,075
3,700 Health Care REIT, Inc. 86,950
1,500 HealthCare Financial Partners, Inc. 50,625
5,199 Healthcare Realty Trust, Inc. 113,403
1,106 Healthplan Services Corp. 7,189
1,700 2 Highlands Insurance Group, Inc. 18,700
1,600 Hilb Rogal & Hamilton Co. 29,800
2,200 Home Properties of New York, Inc. 56,925
4,800 Hospitality Properties Trust 138,300
5,309 Hubco, Inc. 187,806
4,300 2 IMC Mortgage Co. 672
3,250 IMPAC Mortgage Holdings, Inc. 17,875
1,350 2 INSpire Insurance Solutions, Inc. 29,363
4,100 IRT Property Co. 38,694
4,652 2 Imperial Bancorp 89,551
4,500 Imperial Credit Commercial Mortgage Investment Corp. 44,156
3,654 2 Imperial Credit Industries, Inc. 29,460
9,900 Independence Community Bank 144,169
1,600 Independent Bank Corp. 21,500
4,200 Innkeepers USA Trust 43,313
1,850 InterWest Bancorp, Inc. 43,013
1,400 International Bancshares Corp. 69,825
638 Investment Technology Group, Inc. 22,098
1,800 Investors Financial Services Corp. 65,475
2,400 Irvine Apartment Communities, Inc. 80,400
1,500 Irwin Financial Corp. 35,813
4,350 JDN Realty Corp. 96,244
1,700 JP Realty, Inc. 34,106
1,000 JSB Financial, Inc. 49,313
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Financials-continued
1,033 Jeffbanks, Inc. $ 21,951
3,600 2 Jefferies Group, Inc. 82,350
1,200 Jefferson Savings Bancorp, Inc. 16,425
800 John Nuveen & Co., Inc., Class A 31,800
500 Kansas City Life Insurance Co. 41,031
3,600 Kilroy Realty Corp. 84,825
3,500 Koger Equity, Inc. 51,406
3,600 LTC Properties, Inc. 48,375
1,500 LaSalle Hotel Properties 20,531
2,000 LandAmerica Financial Group, Inc. 56,000
2,400 Laser Mortgage Management, Inc. 13,050
2,200 Lexington Corporate Properties Trust 25,163
1,448 Liberty Corp. 74,934
2,700 Life USA Holdings, Inc. 27,000
2,700 2 Local Financial Corp. 25,650
2,700 2 Long Beach Financial Corp. 30,038
3,369 MAF Bancorp, Inc. 74,960
1,800 MGI Properties, Inc. 49,725
2,100 MMI Companies, Inc. 32,550
3,800 Macerich Co. (The) 97,138
800 Mahoning National Bancorp 22,600
2,800 Manufactured Home Communities, Inc. 70,875
500 2 Markel Corp. 93,250
700 Meadowbrook Insurance Group, Inc. 9,494
1,500 Medallion Financial Corp. 25,313
3,085 2 Medical Assurance, Inc. 84,838
1,000 Merchants New York Bancorp, Inc. 34,750
2,482 Metris Cos., Inc. 151,712
400 Michigan Financial Corp. 12,450
1,063 Mid American Bancorp 26,044
2,500 Mid-American Apartment Communities, Inc. 59,531
600 Midland Co. 16,538
2,000 Mills Corp. 39,125
800 Mississippi Valley Bancshares, Inc. 26,000
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Financials-continued
3,562 Morgan Keegan, Inc. $ 59,664
2,000 NAC Re Corp. 109,000
1,677 NBT Bancorp, Inc. 35,846
2,000 National Bancorp Alaska, Inc. 53,500
700 2 National City Bancorporation 14,525
1,519 National City Bancshares, Inc. 42,247
1,600 National Golf Properties, Inc. 40,200
2,900 National Health Investors, Inc. 72,863
2,255 National Penn Bancshares, Inc. 51,865
1,000 2 National Processing, Inc. 5,875
300 2 National Western Life Insurance Co., Class A 29,775
5,700 Nationwide Health Properties, Inc. 115,781
12,760 New Plan Excel Realty Trust 236,858
1,900 Northwest Bancorp, Inc. 17,219
500 Nymagic, Inc. 7,469
1,600 Ocean Financial Corp. 25,200
2,300 Ocwen Asset Investment Corp. 11,069
3,761 Old National Bancorp 191,349
1,200 Omega Financial Corp. 42,600
2,639 Omega Healthcare Investors 69,604
4,543 One Valley Bancorp West Virginia, Inc. 174,906
1,433 Oriental Financial Group 41,288
1,800 2 PBOC Holdings, Inc. 15,750
2,000 2 PFF Bancorp, Inc. 37,438
1,900 PMA Capital Corp. 38,475
3,100 PS Business Parks, Inc. 72,463
1,463 PX Escrow Corp. 27,797
3,200 Pacific Capital Bancorp 85,400
2,300 Pacific Gulf Properties, Inc. 47,869
1,300 Pan Pacific Retail Properties, Inc. 23,400
1,100 Park National Corp. 106,425
1,300 Parkway Properties, Inc. 37,700
800 2 Penn Treaty American Corp. 22,450
3,400 Penncorp Financial Group, Inc. 2,125
1,500 Pennsylvania Real Estate Investment Trust 30,938
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Financials-continued
4,800 Peoples Bancorp, Inc. $ 50,700
800 Peoples Holding Co. 26,700
800 2 Philadelphia Consolidated Holding Corp. 19,750
5,700 Phoenix Investment Partners Ltd. 56,288
600 Pinnacle Banc Group, Inc. 19,875
2,900 Pioneer Group, Inc. 54,013
1,350 Poe & Brown, Inc. 44,128
3,300 Premier Bankshares, Inc. 64,763
5,100 Prentiss Properties Trust 110,288
2,900 Presidential Life Corp. 52,019
1,200 Prime Bancorp, Inc. 33,075
700 Prime Bancshares, Inc. 11,113
600 Prime Group Realty Trust 8,775
5,635 Prime Retail, Inc. 48,602
12,500 Prison Realty Corp. 243,750
4,510 Prologis Trust 94,710
3,324 Provident Bankshares Corp. 82,679
1,634 Public Storage, Inc. 45,548
2,272 Queens County Bancorp, Inc. 79,804
2,900 RFS Hotel Investors, Inc. 40,963
1,025 RLI Corp. 32,608
3,500 Realty Income Corp. 81,813
5,200 Reckson Associates Realty Corp. 117,000
1,300 Redwood Trust, Inc. 21,856
1,800 Regency Realty Corp. 38,925
4,950 Reinsurance Group of America 211,613
1,100 Reliance Bancorp, Inc. 31,350
2,770 Republic Bancorp, Inc. 35,144
600 2 Republic Bancshares, Inc. 13,200
1,100 Republic Banking Corp. of Florida 20,488
6,135 Republic Security Financial Corp. 53,301
2,900 Resource America, Inc., Class A 35,888
1,896 Resource Bancshares Mortgage Group, Inc. 23,226
3,500 Richmond County Financial Corp. 57,531
2,500 Riggs National Corp. 42,188
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Financials-continued
1,700 2 Risk Capital Holdings, Inc. $ 24,650
9,910 Roslyn Bancorp, Inc. 180,858
3,600 S & T Bancorp, Inc. 91,800
1,600 SCPIE Holdings, Inc. 38,400
1,700 SEI Investments, Co. 161,500
3,100 SL Green Realty Corp. 61,613
500 SLM Corp. 20,313
1,300 Sandy Spring Bancorp, Inc. 36,969
5,300 2 Security Capital Group, Inc. 80,163
3,700 Selective Insurance Group, Inc. 71,688
900 Shoreline Financial Corp. 24,075
3,700 Shurgard Storage Centers, Inc., Class A 99,669
2,500 2 Silicon Valley Bancshares 43,906
800 Simmons 1st National Corp., Class A 28,200
5,162 Sky Financial Group, Inc. 145,181
2,300 Smith (Charles E.) Residential Realty, Inc. 74,750
2,700 2 Southwest Bancorp. of Texas, Inc. 45,563
1,370 Southwest Securities Group, Inc. 72,524
1,600 Sovran Self Storage, Inc. 39,100
5,445 St. Paul Bancorp, Inc. 132,041
1,900 State Auto Financial Corp. 19,238
5,800 Staten Island Bancorp, Inc. 104,763
1,100 Sterling Bancorp 22,825
2,900 Sterling Bancshares, Inc. 36,250
700 Sterling Financial Corp. 23,275
800 Stewart Information Services Corp. 31,950
3,600 Storage USA, Inc. 115,650
2,800 Summit Properties, Inc. 51,100
2,200 Sun Communities, Inc. 77,000
4,900 Sunstone Hotel Investors, Inc. 45,019
4,805 Susquehanna Bankshares, Inc. 88,893
700 Tanger Factory Outlet Centers, Inc. 18,025
5,100 Taubman Centers, Inc. 69,169
1,900 Texas Regional Bancshares, Inc., Class A 54,447
2,100 The Trust Company of New Jersey 48,038
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Financials-continued
2,800 Thornburg Mortgage Asset Co. $ 24,500
2,200 Tower Realty Trust, Inc. 45,100
2,100 Town & Country Trust 37,931
1,400 Trenwick Group, Inc. 39,200
1,700 2 Triad Guaranty, Inc. 26,775
3,300 Triangle Bancorp, Inc. 53,625
3,000 Trinet Corporate Realty Trust, Inc. 82,313
3,456 Trustco Bank Corp. 92,448
4,900 2 UICI 120,050
1,852 UMB Financial Corp. 76,974
1,600 US Restaurant Properties 32,100
1,190 USB Holdings Co., Inc. 16,883
1,800 USBANCORP, Inc. 28,575
5,628 UST Corp. 136,127
5,800 2 Unicapital Corp. 36,250
5,600 United Bankshares, Inc. 151,200
3,280 United Companies Financial Corp. 590
13,500 United Dominion Realty Trust, Inc. 146,813
850 United Fire & Casualty Co. 22,525
1,410 United National Bancorp 31,725
1,800 2 United Payors & United Providers, Inc. 31,725
1,300 Urban Shopping Centers, Inc. 41,600
300 Value Line, Inc. 11,138
7,100 2 Ventas, Inc. 31,950
1,700 Vermont Financial Services Corp. 52,381
1,650 Vesta Insurance Group, Inc. 8,353
1,300 WSFS Financial Corp. 20,313
2,200 Walden Residential Properties, Inc. 42,075
4,700 Washington Real Estate Investment Trust 79,606
1,350 Washington Trust Bancorp 23,625
5,000 Webster Financial Corp. Waterbury 153,750
2,600 Weeks Corp. 80,763
3,500 Weingarten Realty Investors 145,031
2,750 Wesbanco, Inc. 78,719
1,850 West Coast Bancorp 31,913
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Financials-continued
5,290 WestAmerica Bancorporation $ 176,554
1,265 Westcorp, Inc. 12,650
2,700 Western Bancorp 97,031
2,200 Western Investment Real
Estate Trust 25,163
5,500 Westernbank Puerto Rico 81,125
3,900 Westfield America, Inc. 61,669
3,025 Whitney Holding Corp. 122,513
500 2 Wilshire Financial
Services Group 188
1,300 Zenith National Insurance
Corp. 30,875
TOTAL 25,602,259
Health Care-6.7%
2,666 ADAC Laboratories 19,329
3,900 2 AXYS Pharmaceuticals, Inc. 15,478
2,800 2 Acuson Corp. 42,700
4,700 2 Advanced Tissue Sciences,
Inc., Class A 23,500
2,000 2 Affymetrix, Inc. 81,750
4,100 2 Agouron Pharmaceuticals,
Inc. 242,156
5,900 2 Alaris Medical, Inc. 18,438
1,400 2 Algos Pharmaceuticals
Corp. 40,775
2,500 2 Alkermes, Inc. 66,875
2,300 Alpharma, Inc., Class A 67,850
1,680 2 Alza Corp. 56,385
5,600 2 AmeriSource Health Corp.,
Class A 155,050
1,450 2 American HomePatient, Inc. 1,495
1,150 American Medical Security
Group, Inc. 17,178
3,600 2 American Oncology
Resources, Inc. 32,175
900 2 Andrx Corp. 70,875
5,400 2 Apria Healthcare Group,
Inc. 84,375
1,800 Arrow International, Inc. 40,500
1,700 2 Aviron 32,088
600 2 Bacou U.S.A., Inc. 8,588
4,000 Ballard Medical Products 95,500
1,175 2 Barr Laboratories, Inc. 35,323
6,300 2 Bio-Technology General
Corp. 44,691
1,800 2 Biomatrix, Inc. 59,288
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Health Care-continued
2,000 2 CONMED Corp. $ 57,750
3,100 2 Cell Genesys, Inc. 15,500
1,600 2 Centennial Healthcare
Corp. 8,700
3,500 2 Cephalon, Inc. 42,438
1,200 2 Chattem, Inc. 46,875
1,400 2 Chirex, Inc. 36,400
800 2 Closure Medical Corp. 25,800
3,000 2 Columbia Laboratories,
Inc. 23,438
6,128 2 Concentra Managed Care,
Inc. 83,111
1,900 2 Cooper Companies, Inc. 29,925
3,200 2 Cor Therapeutics, Inc. 37,400
1,800 2 Coulter Pharmaceutical,
Inc. 36,225
7,600 2 Covance, Inc. 166,725
7,700 2 Coventry Health Care, Inc. 70,744
1,700 2 Curative Health Services,
Inc. 9,563
1,700 2 Datascope Corp. 48,344
1,500 Diagnostic Products Corp. 34,500
6,100 2 Dura Pharmaceuticals, Inc. 73,200
1,300 2 Entremed, Inc. 34,694
2,826 2 Enzo Biochem, Inc. 29,320
4,400 2 Express Scripts, Inc.,
Class A 323,950
2,500 2 Fuisz Technologies Ltd. 18,125
1,700 2 Geltex Pharmaceuticals,
Inc. 29,113
4,600 2 Genesis Health Ventures,
Inc. 31,913
10,400 2 Gensia, Inc. 36,400
4,000 2 Gilead Sciences, Inc. 184,250
2,100 2 Guilford Pharmaceuticals,
Inc. 22,575
3,000 2 Haemonetics Corp. 47,063
2,400 2 Hanger Orthopedic Group,
Inc. 35,100
2,300 2 Heska Corp. 8,913
1,800 2 Hologic, Inc. 12,263
5,500 Hooper Holmes, Inc. 87,656
2,900 2 Human Genome Sciences,
Inc. 107,300
4,600 2 ICOS Corp. 182,850
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Health Care-continued
2,300 2 IDEC Pharmaceuticals Corp. $ 116,725
4,600 2 IDEXX Laboratories, Inc. 104,075
3,200 2 Imclone Systems, Inc. 57,800
3,000 2 Immune Response Corp. 33,750
1,100 2 Impath, Inc. 27,500
3,100 2 Incyte Pharmaceuticals,
Inc. 55,994
2,100 2 Inhale Therapeutic Systems 60,375
3,100 Invacare Corp. 71,688
3,500 2 Isis Pharmaceuticals, Inc. 36,531
12,500 Ivax Corp. 164,063
3,000 Jones Pharma, Inc. 96,375
1,800 2 KV Pharmaceutical Co.,
Class B 27,900
1,000 2 Kendle International, Inc. 18,438
300 Labone, Inc. 3,225
6,300 2 Laboratory Corporation of
America Holdings 13,388
1,550 Life Technologies, Inc. 56,963
1,300 2 Lifecore Biomedical, Inc. 10,888
5,292 2 Ligand Pharmaceuticals,
Inc., Class B 52,259
5,000 2 Liposome Co., Inc. 62,500
2,400 2 Macrochem Corp. 23,700
4,100 2 Magellan Health Services,
Inc. 22,294
9,580 2 Mariner Post-Acute
Network, Inc. 32,931
1,900 2 Maxxim Medical, Inc. 30,281
3,750 2 Medicis Pharmaceutical
Corp., Class A 91,172
6,200 2 Medimmune, Inc. 341,775
3,000 Mentor Corp. 43,500
5,800 2 Mid Atlantic Medical
Services, Inc. 52,925
4,300 2 Millennium
Pharmaceuticals, Inc. 159,906
500 Mine Safety Appliances Co. 30,500
2,000 2 MiniMed, Inc. 125,000
1,050 2 Miravant Medical
Technologies 9,384
1,900 2 NCS HealthCare, Inc.,
Class A 24,700
800 National Healthcare Corp. 6,500
1,500 2 Neurogen Corp. 16,125
3,700 2 Nexstar Pharmaceuticals,
Inc. 64,056
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Health Care-continued
8,200 2 NovaCare, Inc. $ 13,838
1,000 2 Novoste Corp. 22,250
1,700 2 OEC Medical Systems, Inc. 40,269
4,100 2 Oakley, Inc. 28,188
1,200 2 Ocular Sciences, Inc. 36,600
3,832 2 Organogenesis, Inc. 43,829
4,700 2 Orthodontic Centers of
America, Inc. 58,163
10,500 2 Oxford Health Plans, Inc. 209,344
3,200 2 Parexel International
Corp. 77,000
2,100 2 Pathogenesis Corp. 27,563
2,000 2 Pediatrix Medical Group 37,875
900 2 Perclose, Inc. 34,200
2,251 2 Pharmaceutical Product
Development, Inc. 65,560
1,600 2 Pharmacyclics, Inc. 22,800
2,700 2 PhyMatrix Corp. 4,303
10,000 2 Phycor, Inc. 50,000
3,700 2 Physician Reliance
Network, Inc. 30,525
1,600 2 Priority HealthCare Corp.,
Class B 81,100
2,400 2 Protein Design
Laboratories, Inc. 37,050
1,100 2 Province Heathcare Co. 24,475
3,900 2 Quest Diagnostic, Inc. 89,213
3,265 2 Quintiles Transnational
Corp. 132,428
3,000 2 Regeneron Pharmaceuticals,
Inc. 19,875
5,275 2 Renal Care Group, Inc. 110,116
1,550 2 Res-Care, Inc. 28,675
1,900 2 ResMed, Inc. 50,231
3,643 2 Respironics, Inc. 51,457
3,300 2 Roberts Pharmaceutical
Corp. 56,100
1,900 2 Rural/Metro Corp. 15,438
1,300 2 Sabratek Corp. 21,206
2,100 2 SangStat Medical Corp. 30,450
600 2 Schein Pharmaceutical,
Inc. 7,688
5,000 2 Scios, Inc. 19,375
3,500 2 Sepracor, Inc. 295,750
3,200 2 Serologicals Corp. 24,000
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Health Care-continued
3,050 2 Sierra Health Services,
Inc. $ 38,125
3,200 2 Sola International, Inc. 47,600
1,300 2 Sugen, Inc. 23,075
6,824 2 Sun Healthcare Group, Inc. 10,236
2,600 2 Sunrise Medical, Inc. 18,850
1,500 2 SuperGen, Inc. 20,344
2,500 2 Techne Corp. 68,594
3,400 2 Theragenics Corp. 24,650
2,400 2 Thermo Cardiosystems, Inc. 17,550
1,250 2 Thermotrex Corp. 10,469
2,200 2 Transkaryotic Therapies,
Inc. 68,200
900 2 Trex Medical Corp. 4,444
2,500 2 Triangle Pharmaceuticals,
Inc. 36,250
3,000 2 Twinlab Corp. 25,500
3,200 2 U.S. Bioscience, Inc. 34,400
3,500 2 VISX, Inc. 450,625
8,000 2 Vencor, Inc. 7,000
1,800 2 Ventana Medical Systems 43,875
3,300 2 Vertex Pharmaceuticals,
Inc. 69,713
2,100 2 Vical, Inc. 23,888
1,500 2 ViroPharma, Inc. 9,938
800 Vital Signs, Inc. 16,800
4,200 2 Vivus, Inc. 19,950
1,200 Weider Nutrition
International, Inc. 6,675
1,400 2 Wesley Jessen VisionCare,
Inc. 42,875
1,550 2 Xomed Surgical Products,
Inc. 64,519
1,500 2 Zonagen, Inc. 34,313
TOTAL 8,671,063
Technology-16.0%
1,900 2 3DFX Interactive, Inc. 33,013
3,800 2 ABR Information Services,
Inc. 66,500
800 2 ARIS Corp. 6,525
1,200 2 AVT Corp. 32,625
1,100 2 Abacus Direct Corp. 81,400
5,800 2 Acclaim Entertainment,
Inc. 37,700
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Technology-continued
2,400 2 Actel Corp. $ 32,400
2,500 2 Adtran, Inc. 43,438
1,000 2 Advantage Learning
Systems, Inc. 26,375
700 2 Advent Software, Inc. 43,138
1,600 2 Aerial Communications,
Inc. 12,800
3,600 2 Allen Telecom, Inc. 33,750
1,300 2 Alydaar Software Corp. 5,363
5,500 2 American Management
System, Inc. 189,063
2,400 2 American Mobile Satellite
Corp. 41,400
13,270 2 American Tower Systems
Corp. 281,158
500 Amplicon, Inc. 6,625
1,500 2 Anacomp, Inc. 24,375
800 Analogic Corp. 29,400
2,800 Analysts International
Corp. 36,400
2,400 2 Anicom, Inc. 21,300
3,300 2 Anixter International,
Inc. 51,975
500 2 AnswerThink Consulting
Group, Inc. 11,094
3,050 2 Antec Corp. 82,731
1,050 2 Apex PC Solutions, Inc. 17,456
3,000 2 Applied Micro Circuits
Corp. 159,938
900 2 Artisan Components, Inc. 6,188
1,700 2 Aspec Technology, Inc. 1,488
2,200 2 Aspect Development, Inc. 24,063
6,700 2 Aspect Telecommunications
Corp. 53,391
3,300 2 Aspen Technology, Inc. 28,256
3,700 2 Associated Group, Inc.,
Class A 210,900
12,100 2 Aura System, Inc. 3,403
503 Automatic Data Processing,
Inc. 22,384
3,619 2 Avant! Corp. 48,857
3,000 2 Avid Technology, Inc. 48,750
3,300 2 Axent Technologies, Inc. 30,938
1,450 2 BARRA, Inc. 28,366
5,700 2 BEA Systems, Inc. 86,213
2,450 2 BMC Software, Inc. 105,503
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Technology-continued
2,579 2 BancTec, Inc. $ 41,909
4,800 2 Billing Concepts Corp. 59,400
1,350 2 Bio Rad Laboratories,
Inc., Class A 37,800
3,200 2 Bisys Group, Inc. 162,400
6,874 2 Brightpoint, Inc. 42,318
2,300 2 Broadvision, Inc. 133,544
3,187 2 Burr Brown Corp. 84,456
4,400 2 C-Cube Microsystems, Inc. 99,550
3,100 2 CCC Information Service
Group, Inc. 40,300
4,200 2 CHS Electronics, Inc. 21,263
2,200 2 CNET, Inc. 282,700
6,800 2 CSG Systems International,
Inc. 262,650
3,850 2 Cable Design Technologies,
Class A 57,269
1,700 2 California Microwave 25,713
4,400 2 Cellstar Corp. 32,450
1,400 2 Cellular Communications of
Puerto Rico 33,250
5,200 2 Checkfree Holdings Corp. 249,600
8,700 2 Cirrus Logic, Inc. 61,444
2,900 2 Clarify, Inc. 68,150
3,100 2 Coherent, Inc. 46,113
1,300 Cohu, Inc. 37,050
600 2 Com21, Inc. 18,675
2,700 2 CommNet Cellular, Inc. 56,700
5,000 2 CommScope, Inc. 121,875
1,600 2 Complete Business
Solutions, Inc. 35,800
2,900 2 Compucom System, Inc. 8,791
2,200 Computer Task Group, Inc. 40,975
1,900 2 Concentric Network Corp. 158,650
1,700 2 Concord Communications,
Inc. 76,075
1,600 2 Cotelligent, Inc. 18,700
2,850 2 Credence Systems Corp. 73,209
2,500 2 Cylink Corp. 10,000
3,500 2 Cymer, Inc. 63,875
11,200 2 Cypress Semiconductor
Corp. 114,800
2,100 2 Cytyc Corp. 41,081
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Technology-continued
1,000 2 DBT Online, Inc. $ 33,688
5,000 2 DSP Communications, Inc. 136,250
1,200 DT Industries, Inc. 10,800
3,700 Dallas Semiconductor Corp. 157,250
6,500 2 Data General Corp. 75,969
1,300 2 Data Transmission Network
Corp. 27,463
2,000 2 Datastream Systems, Inc. 16,875
1,450 2 Davox Corp. 12,325
1,600 2 DecisionOne Holdings Corp. 3,100
1,000 2 Deltek Systems, Inc. 8,625
2,400 2 Dendrite International,
Inc. 62,100
1,300 2 Dialog Corp. 36,319
4,600 2 Diamond Multimedia
Systems, Inc. 21,419
1,700 2 Digi International, Inc. 12,963
8,100 2 Digtial Microwave Corp. 103,275
1,400 2 Dispatch Management
Services Corp. 4,331
1,600 2 Documentum, Inc. 25,000
2,200 2 EarthLink Network, Inc. 151,663
1,600 2 Echostar Communications
Corp., Class A 160,500
1,100 2 Electric Lightwave, Inc.,
Class A 15,400
2,600 2 Electroglas, Inc. 35,588
6,900 2 Electronics for Imaging,
Inc. 326,456
1,000 2 Engineering Animation,
Inc. 14,875
2,300 2 Esterline Technologies
Corp. 32,488
2,800 2 Etec Systems, Inc. 86,450
700 2 Excel Switching Corp. 14,525
3,500 2 Excite, Inc. 511,000
3,000 2 FSI International, Inc. 20,813
1,550 FactSet Research Systems 72,269
1,300 Fair Isaac & Co., Inc. 44,200
3,900 2 Filenet Corp. 33,394
3,500 2 GT Interactive Software 12,250
3,800 2 GenRad, Inc. 70,300
4,000 2 General Magic, Inc. 21,500
3,700 2 General Semiconductor,
Inc. 27,750
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Technology-continued
1,200 2 Genesys Telecommunications
Laboratories, Inc. $ 21,450
2,500 2 GeoTel Communications
Corp. 140,625
2,600 Gerber Scientific, Inc. 48,913
8,100 2 Glenayre Technologies,
Inc. 26,831
1,100 2 Great Plains Software,
Inc. 33,619
1,300 2 H.T.E., Inc. 3,819
5,000 2 HMT Technology Corp. 14,375
3,400 2 HNC Software 73,100
525 Hach Co. 9,581
525 Hach Co., Class A 9,253
4,075 2 Harbinger Corp. 44,570
2,500 Helix Technology Corp. 44,141
1,700 Henry Jack & Associates,
Inc. 56,100
2,600 2 Hutchinson Technology,
Inc. 57,363
3,880 2 Hyperion Solutions Corp. 58,685
6,000 2 ICG Communications, Inc. 132,375
1,200 2 IDX Systems Corp. 19,500
1,550 2 IMRglobal Corp. 26,738
600 2 ISS Group, Inc. 31,838
1,100 2 ITI Technologies, Inc. 29,288
5,300 2 Imation Corp. 93,744
4,100 2 Indus International, Inc. 17,681
3,400 2 Industri-Matematik
International Corp. 6,375
21,500 2 Informix Corp. 155,875
3,200 2 Infoseek Corp. 163,400
1,900 Innovex, Inc. 26,363
6,300 2 Inprise Corp. 25,397
10,800 2 Integrated Device
Technology, Inc. 79,650
2,400 2 Integrated Systems, Inc. 32,700
600 2 Intelligroup, Inc. 4,050
2,700 Inter-Tel, Inc. 37,463
6,300 2 Interdigital
Communications Corp. 28,744
5,600 2 Intergraph Corp. 37,450
3,900 2 International Network
Services 148,200
6,700 2 International Rectifier
Corp. 65,325
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Technology-continued
2,600 2 JDA Software Group, Inc. $ 20,638
3,700 2 Kent Electronics Corp. 34,456
7,000 2 Komag, Inc. 26,250
1,400 2 Kopin Corp. 26,425
1,650 2 Kronos, Inc. 56,100
3,100 2 Kulicke & Soffa Industries 70,913
700 2 L-3 Communications
Holdings, Inc. 34,169
5,100 2 Lam Research Corp. 160,650
2,900 2 Lattice Semiconductor
Corp. 118,538
700 2 Leasing Solutions, Inc. 1,050
4,900 2 Legato Systems, Inc. 198,144
4,675 2 Level One Communications,
Inc. 240,178
2,400 2 Lo-Jack Corp. 18,600
5,600 2 Lycos, Inc. 558,250
2,300 2 MAPICS, Inc. 12,866
2,500 2 MEMC Electronic Materials 15,000
2,100 2 MICROS Systems Corp. 61,950
3,900 2 MMC Networks, Inc. 95,794
3,000 2 MRV Communications, Inc. 30,000
3,300 2 MTI Technology Corp. 27,225
2,400 MTS Systems Corp. 27,750
4,500 2 Macromedia, Inc. 186,469
500 2 Manhattan Associates, Inc. 5,125
2,600 2 Manugistics Group, Inc. 20,475
2,200 2 Marshall Industries 35,475
2,600 2 Mastech Corp. 38,188
10,300 2 Medaphis Corp. 36,050
1,400 2 Medical Manager Corp. 39,900
3,000 2 Medquist, Inc. 102,750
8,200 2 Mentor Graphics Corp. 99,425
4,000 2 Mercury Interactive Corp. 112,750
10,500 2 Merisel, Inc. 16,734
4,600 Methode Electronics, Inc.,
Class A 68,425
800 2 Metro Information
Services, Inc. 17,250
3,600 2 MetroCall, Inc. 11,250
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Technology-continued
3,300 2 Metromedia Fiber Network,
Inc. $ 278,025
1,800 2 Micrel, Inc. 105,975
6,700 2 Microchip Technology, Inc. 234,500
1,300 2 Micromuse, Inc. 44,769
4,600 2 Micron Electronics, Inc. 46,863
2,200 2 Mindspring Enterprises,
Inc. 213,263
400 2 Mobius Management Systems,
Inc. 3,600
3,600 National Computer Systems,
Inc. 100,800
4,400 National Data Corp. 202,950
1,950 2 National Instruments Corp. 66,300
1,400 2 Natural Microsystems Corp. 7,175
2,600 2 NeoMagic Corp. 30,388
8,000 2 Network Appliance, Inc. 402,500
2,800 2 Network Equipment
Technologies, Inc. 21,525
1,000 2 Network Solutions, Inc. 77,750
1,800 2 New Era of Networks, Inc. 67,613
4,500 2 Novellus Systems, Inc. 212,625
4,800 2 Oak Technology, Inc. 14,250
1,700 2 Objective Systems
Integrator 5,525
4,000 2 Omnipoint Corp. 71,000
3,000 2 Open Market, Inc. 40,500
5,700 2 P-COM, Inc. 33,309
4,000 2 PMC-Sierra, Inc. 383,500
2,300 2 PRI Automation, Inc. 57,069
4,500 2 PageMart Wireless, Inc.,
Class A 20,531
9,300 2 Pairgain Technologies,
Inc. 119,156
333 2 Panavision, Inc. 2,914
1,400 2 Pegasus Systems, Inc. 65,450
900 2 Pegasystems, Inc. 4,050
2,300 2 Peregrine Systems, Inc. 51,750
53 2 Perkin-Elmer Corp.,
Warrants 610
4,300 2 Personnel Group of
America, Inc. 39,238
2,800 2 Photronics, Inc. 67,025
5,000 2 PictureTel Corp. 41,250
1,100 2 Pinnacle Systems, Inc. 59,813
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Technology-continued
3,425 Pioneer Standard
Electronics, Inc. $ 28,684
2,200 2 Plantronics, Inc. 148,500
4,449 2 Platinum Software Corp. 31,699
2,000 2 Polycom, Inc. 48,875
1,200 2 Pomeroy Computer Resources 16,950
2,000 2 Powertel, Inc. 43,500
600 2 Powerwave Technologies,
Inc. 18,225
4,400 2 Premiere Technologies,
Inc. 65,450
3,100 2 Premisys Communications,
Inc. 26,350
1,600 2 Preview Travel, Inc. 41,600
2,200 2 Progress Software Corp. 50,050
900 2 Project Software &
Development, Inc. 19,800
5,700 2 PsiNet, Inc. 287,850
1,100 2 QAD, Inc. 4,263
1,000 2 QRS Corp. 55,000
2,200 2 Qlogic Corp. 153,863
2,500 2 QuadraMed Corp. 24,219
2,600 2 REMEC, Inc. 33,638
900 2 Radiant Systems, Inc. 10,238
11,052 2 Rational Software Corp. 327,416
5,900 2 Read-Rite Corp. 36,506
1,200 2 RealNetworks, Inc. 265,800
2,900 2 Remedy Corp. 50,750
6,700 2 S3, Inc. 48,156
1,500 2 SCM Microsystems, Inc. 98,813
1,700 2 SDL, Inc. 185,725
1,000 2 SPR, Inc. 5,250
1,200 2 SS&C Technologies, Inc. 17,250
3,600 2 Safeguard Scientifics,
Inc. 291,600
800 2 Sanchez Computer
Associates 46,800
2,500 2 Sandisk Corp. 50,625
1,300 2 Sapient Corp. 81,575
1,600 2 Sawtek, Inc. 56,400
5,000 2 Security Dynamics
Technologies, Inc. 108,750
1,600 2 Semtech Corp. 52,200
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Technology-continued
5,700 2 Sequent Computer System,
Inc. $ 62,344
4,300 2 Silicon Valley Group, Inc. 56,975
1,300 2 Siliconix, Inc. 34,125
2,300 2 Sipex Corp. 32,200
7,800 2 SkyTel Communications,
Inc. 133,575
3,400 2 Smart Modular
Technologies, Inc. 45,475
4,000 2 Software AG 33,000
1,400 2 Spectra-Physics Lasers,
Inc. 12,775
3,433 2 SpeedFam-IPEC, Inc. 39,480
1,800 2 Splash Technology
Holdings, Inc. 16,875
1,700 2 Sportsline USA, Inc. 68,000
4,717 2 Structural Dynamics
Research Corp. 91,687
900 2 Superior Consultant
Holdings Corp. 24,300
10,700 2 Sybase, Inc. 82,925
2,200 2 Sykes Enterprises, Inc. 45,100
7,200 2 Symantec Corp. 143,100
700 2 Syntel, Inc. 5,688
4,250 System Software
Association 7,969
4,300 2 Systems & Computer
Technology Corp. 59,125
2,900 2 Tava Technologies, Inc. 20,481
5,400 2 Technology Solutions Corp. 42,863
4,500 2 Tekelec, Inc. 40,641
2,100 Telxon Corp. 21,000
800 2 Thermo Bioanalysis Corp. 13,600
500 2 Thermo Optek Corp. 4,375
500 2 Thermoquest Corp. 5,469
1,250 2 Transaction Network
Services, Inc. 33,438
4,100 2 Transaction Systems
Architects, Inc., Class A 132,994
2,900 2 Trimble Navigation Ltd. 33,622
7,950 2 USWeb Corp. 178,378
2,800 2 Ultratech Stepper, Inc. 38,850
4,100 2 Unitrode Corp. 72,519
5,600 2 VLSI Technology, Inc. 105,700
3,400 2 Vantive Corp. 27,200
1,200 2 Veeco Instruments, Inc. 46,200
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Technology-continued
700 2 Verio, Inc. $ 49,700
500 2 Verisign, Inc. 57,500
2,400 2 Viasoft, Inc. 10,350
3,300 2 Visio Corp. 89,100
2,600 2 Visual Networks, Inc. 72,963
6,000 2 Wang Laboratories, Inc. 150,375
2,400 2 WavePhore, Inc. 18,000
1,800 2 Westell Technologies,
Inc., Class A 11,363
9,900 2 Western Wireless Corp.,
Class A 406,519
3,700 2 Whittman-Hart, Inc. 104,525
5,725 2 Wind River Systems, Inc. 85,875
3,400 2 World Access, Inc. 40,800
2,200 X-Rite, Inc. 15,125
3,100 2 Xircom, Inc. 69,750
TOTAL 20,674,067
Transportation-2.3%
700 2 AHL Services, Inc. 21,175
4,400 Air Express International
Corp. 96,250
7,300 2 AirTran Holdings, Inc. 38,325
1,000 2 Airnet Systems, Inc. 10,500
3,400 2 Alaska Air Group, Inc. 149,813
5,200 Alexander and Baldwin,
Inc. 113,100
600 2 Ambassadors International 8,925
5,402 2 America West Holdings
Corp., Class B 112,767
900 2 American Classic Voyages 16,088
2,700 2 American Freightways Corp. 46,406
400 2 Amtran, Inc. 9,050
2,500 Arnold Industries, Inc. 39,688
1,600 2 Atlantic Coast Airlines
Holdings 49,400
2,350 2 Atlas Air, Inc. 68,150
1,247 2 Avondale Industries, Inc. 38,423
5,400 C.H. Robinson Worldwide,
Inc. 161,663
1,700 Circle International
Group, Inc. 28,900
3,100 2 Coach USA, Inc. 73,625
2,800 2 Consolidated Freightways
Corp. 31,500
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Transportation-continued
900 2 Covenant Transport, Inc.,
Class A $ 12,375
800 2 Dril-Quip, Inc. 19,500
1,000 2 Eagle USA Airfreight, Inc. 36,500
3,200 Expeditors International
Washington, Inc. 194,000
1,500 Florida East Coast
Industries, Inc. 47,813
3,000 2 Fritz Companies, Inc. 30,375
700 Greenbrier Cos., Inc. 6,300
800 2 Gulfmark Offshore, Inc. 13,600
2,245 2 Heartland Express, Inc. 31,290
2,800 Hunt (J.B.) Transportation
Services, Inc. 58,275
1,800 2 Hvide Marine, Inc., Class A 4,725
2,250 2 Iron Mountain, Inc. 62,578
2,750 2 Kirby Corp. 52,250
2,200 2 Kitty Hawk, Inc. 18,150
800 2 Knight Transportation,
Inc. 16,400
1,400 2 Landstar System, Inc. 54,513
1,200 2 M.S. Carriers, Inc. 38,250
3,300 2 Mesa Air Group, Inc. 22,275
1,550 2 Mesaba Holdings, Inc. 22,572
1,800 2 Midwest Express Holdings,
Inc. 56,250
3,450 2 MotivePower Industries,
Inc. 58,866
3,600 Overseas Shipholding
Group, Inc. 45,000
1,000 2 Pierce Leahy Corp. 25,188
2,500 Pittston BAX Group 22,344
1,800 RPC Energy Services, Inc. 14,850
2,000 Roadway Express, Inc. 36,000
6,225 Rollins Truck Leasing
Corp. 64,584
1,700 2 SEACOR SMIT, Inc. 89,994
2,700 SkyWest, Inc. 70,200
4,725 2 Swift Transportation Co. 86,822
7,500 2 Trans World Airlines, Inc. 40,781
1,000 2 Travel Services
International, Inc. 8,875
2,700 2 Trico Marine Services,
Inc. 21,431
1,000 2 US Xpress Enterprises,
Inc., Class A 11,375
3,450 USFreightways Corp. 129,375
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Transportation-continued
2,250 Varlen Corp. $ 63,000
3,775 Werner Enterprises, Inc. 72,669
2,200 Westinghouse Air Brake,
Co. 49,088
6,700 2 Wisconsin Central
Transportation Corp. 123,741
3,000 2 Yellow Corp. 53,250
TOTAL 2,999,172
Utilities-3.9%
7,500 AGL Resources, Inc. 136,406
1,500 Aquarion Co. 38,906
700 Aquila Gas Pipeline Co. 5,600
3,950 Atmos Energy Corp. 99,738
7,300 Avista Corp. 109,500
2,800 Black Hills Corp. 63,350
4,200 CMP Group, Inc. 81,375
16 CTG Resources, Inc. 375
1,500 California Water Service
Group 34,406
2,200 Central Hudson Gas &
Electric Corp. 81,675
1,800 Cilcorp, Inc. 108,900
466 2 Citizens Utilities Co.,
Class B 4,686
2,900 Cleco Corp. 89,538
1,200 Colonial Gas Co. 42,000
2,400 Commonwealth Energy System 97,350
1,400 Connecticut Energy Corp. 52,325
1,100 E'Town Corp. 43,931
2,900 Eastern Enterprises 104,219
2,700 Eastern Utilities
Association 77,288
7,300 2 El Paso Electric Co. 58,400
2,200 Empire Distribution
Electric Co. 48,263
3,400 Energen Corp. 58,650
4,900 Equitable Resources, Inc. 129,850
4,200 Hawaiian Electric
Industries, Inc. 149,363
4,900 Idacorp, Inc. 154,350
3,933 Indiana Energy, Inc. 84,068
16,500 2 Kelley Oil & Gas Corp. 8,250
2,300 Laclede Gas Co. 46,431
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Utilities-continued
6,925 MDU Resources Group, Inc. $ 147,589
2,100 Madison Gas & Electric Co. 39,113
9,400 Minnesota Power and Light
Co. 197,988
1,700 NUI Corp. 36,869
6,700 Nevada Power Co. 172,944
2,300 New Jersey Resources Corp. 84,813
1,300 North Carolina Natural Gas 40,625
3,200 Northwest Natural Gas Co. 72,200
3,000 Northwestern Corp. 77,625
4,100 ONEOK, Inc. 114,544
1,800 Orange & Rockland
Utilities, Inc. 104,738
1,500 Otter Tail Power Co. 57,375
1,300 Pennsylvania Enterprises 33,150
4,600 Peoples Energy Corp. 171,925
3,100 Philadelphia Suburban
Corp. 69,944
4,000 Piedmont Natural Gas, Inc. 127,500
5,500 Public Service Co. New
Mexico 98,313
2,700 Public Service Co. North
Carolina, Inc. 76,444
5,000 Rochester Gas & Electric
Corp. 127,500
3,100 SIGCORP, Inc. 89,319
2,132 Semco Energy, Inc. 31,980
4,000 Sierra Pacific Resources 142,500
1,024 South Jersey Industries,
Inc. 24,576
2,280 2 Southern Union Co. 50,730
4,000 Southwest Gas Corp. 114,250
3,300 Southwestern Energy Co. 25,988
1,400 TNP Enterprises, Inc. 43,750
4,300 UGI Corp. 73,906
4,260 2 UniSource Energy Corp. 46,061
1,900 United Illuminating Co. 74,813
3,536 United Water Resources,
Inc. 73,593
4,900 WICOR, Inc. 115,763
3,500 WPS Resources Corp. 104,781
6,000 Washington Gas Light Co. 141,375
2,800 Western Gas Resources,
Inc. 24,500
<CAPTION>
SHARES OR
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
COMMON STOCKS-continued 1
Utilities-continued
1,400 Yankee Energy Systems,
Inc. $ 38,763
TOTAL 5,077,040
TOTAL COMMON STOCKS
(IDENTIFIED COST
$91,482,183) 113,353,869
PREFERRED STOCKS-0.1%
Consumer Staples-0.1%
2,353 Superior Trust I,
Cumulative Pfd., Series A,
$4.25 104,120
Health Care-0.0%
76 Genesis Health Ventures,
Inc. 0
TOTAL PREFERRED STOCKS
(IDENTIFIED COST $129,667) 104,120
SHORT-TERM U.S. GOVERNMENT
OBLIGATION-0.5% 3
$ 700,000 United States Treasury
Bill, 6/24/1999
(identified cost $695,411) 695,751
REPURCHASE AGREEMENT-11.4%
4
14,670,000 ABN AMRO, Inc., 4.94%,
dated 4/30/1999, due
5/3/1999 (at amortized
cost) 14,670,000
TOTAL INVESTMENTS
(IDENTIFIED COST
$106,977,261) 5 $ 128,823,740
</TABLE>
1 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 $16,455,900 at April 30, 1999, which represents 12.7% of net
assets. Taking into consideration these open Index futures contracts, the Fund's
effective total exposure to the Index is 100.4%.
2 Non-income producing security.
3 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.
4 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.
5 The cost of investments for federal tax purposes amounts to $106,977,261. The
net unrealized appreciation of investments on a federal tax basis amounts to
$21,846,479 which is comprised of $35,451,857 appreciation and $13,605,378
depreciation at April 30, 1999.
Note: The categories of investments are shown as a percentage of net
assets ($129,244,185) at April 30, 1999.
The following acronyms are used throughout this portfolio:
ADR -American Depositary Receipt
REIT -Real Estate Investment Trust
See Notes which are an integral part of the Financial Statements
Statement of Assets and Liabilities
APRIL 30, 1999 (UNAUDITED)
<TABLE>
<S> <C> <C>
ASSETS:
Investments in repurchase
agreements $ 14,670,000
Investments in securities 114,153,740
Total investments in
securities, at value
(identified and tax cost
$106,977,261) $ 128,823,740
Income receivable 79,561
Receivable for investments
sold 81,251
Receivable for shares sold 276,590
Receivable for daily
variation margin 153,400
Prepaid expenses 33,460
TOTAL ASSETS 129,448,002
LIABILITIES:
Payable for investments
purchased $ 2,487
Payable to Bank 201,330
TOTAL LIABILITIES 203,817
Net assets for 9,354,655
shares outstanding $ 129,244,185
NET ASSETS CONSIST OF:
Paid in capital $ 108,267,239
Net unrealized
appreciation of
investments and futures
contracts 22,352,521
Accumulated net realized
loss on investments and
futures contracts (1,358,312)
Distributions in excess of
net investment income (17,263)
TOTAL NET ASSETS $ 129,244,185
NET ASSET VALUE, OFFERING
PRICE AND REDEMPTION
PROCEEDS PER SHARE
INSTITUTIONAL SHARES:
Net Asset Value and
Offering Price Per Share
($126,786,171 / 9,176,443
shares outstanding) $13.82
Redemption Proceeds Per
Share $13.82
CLASS C SHARES:
Net Asset Value and
Offering Price Per Share
($2,458,014 / 178,212
shares outstanding) $13.79
Redemption Proceeds Per
Share (99.00/100 of
$13.79) 1 $13.65
</TABLE>
1 See "What Do Shares Cost?" in the Prospectus.
See Notes which are an integral part of the Financial Statements
Statement of Operations
SIX MONTHS ENDED APRIL 30, 1999 (UNAUDITED)
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Dividends (net of foreign
taxes withheld of $122) $ 761,888
Interest 294,408
TOTAL INCOME 1,056,296
EXPENSES:
Investment advisory fee $ 308,104
Custodian fees 49,963
Transfer and dividend
disbursing agent fees and
expenses 38,534
Directors'/Trustees' fees 2,545
Auditing fees 7,518
Legal fees 1,558
Portfolio accounting fees 32,335
Distribution services fee-
Class C Shares 5,923
Shareholder services fee-
Institutional Shares 152,078
Shareholder services fee-
Class C Shares 1,974
Share registration costs 16,208
Printing and postage 19,360
Insurance premiums 1,434
Miscellaneous 4,730
TOTAL EXPENSES 642,264
WAIVER:
Waiver of shareholder
services fee-Institutional
Shares (79,080)
Net expenses 563,184
Net investment income 493,112
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
AND FUTURES CONTRACTS:
Net realized loss on
investments and futures
contracts (1,166,868)
Net change in unrealized
appreciation of
investments and futures
contracts 15,620,125
Net realized and
unrealized gain on
investments and
futures contracts 14,453,257
Change in net assets
resulting from operations $ 14,946,369
</TABLE>
See Notes which are an integral part of the Financial Statements
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
SIX MONTHS YEAR
ENDED ENDED
(unaudited) OCTOBER 31,
APRIL 30, 1999 1998
<S> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS
OPERATIONS:
Net investment income $ 493,112 $ 1,082,998
Net realized gain (loss) on
investments and futures
contracts ($(1,166,868)
and $7,778,675,
respectively, as computed
for federal tax purposes) (1,166,868) 7,723,489
Net change in unrealized
appreciation
(depreciation) of
investments and futures
contracts 15,620,125 (24,459,690)
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS 14,946,369 (15,653,203)
DISTRIBUTIONS TO
SHAREHOLDERS:
Distributions from net
investment income
Institutional Shares (594,276) (1,195,686)
Class C Shares (1,640) (506)
Distributions from net
realized gains on
investments and futures
contracts
Institutional Shares (7,701,941) (12,347,168)
Class C Shares (77,652) (3,988)
CHANGE IN NET ASSETS
RESULTING FROM
DISTRIBUTIONS
TO SHAREHOLDERS (8,375,509) (13,547,348)
SHARE TRANSACTIONS:
Proceeds from sale of
shares 117,303,303 234,148,863
Net asset value of shares
issued to shareholders in
payment of
distributions declared 5,415,461 6,316,298
Cost of shares redeemed (119,640,744) (242,139,218)
CHANGE IN NET ASSETS
RESULTING FROM SHARE
TRANSACTIONS 3,078,020 (1,674,057)
Change in net assets 9,648,880 (30,874,608)
NET ASSETS:
Beginning of period 119,595,305 150,469,913
End of period (including
undistributed net
investment income of $0 and
$85,541, respectively) $ 129,244,185 $ 119,595,305
</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)
APRIL 30, YEAR ENDED OCTOBER 31,
1999 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING
OF PERIOD $13.02 $16.68 $14.39 $13.33 $11.65 $12.66
INCOME FROM
INVESTMENT OPERATIONS:
Net investment income 0.05 0.13 0.15 0.16 0.15 0.11
Net realized and
unrealized gain (loss) on
investments and futures
contracts 1.64 (2.19) 3.51 1.78 1.74 (0.23)
TOTAL FROM INVEST-MENT
OPERATIONS 1.69 (2.06) 3.66 1.94 1.89 (0.12)
LESS DISTRIBUTIONS:
Distributions from net
investment income (0.07) (0.14) (0.14) (0.16) (0.14) (0.11)
Distributions from net
realized gain on
investments and
futures contracts (0.82) (1.46) (1.23) (0.72) (0.07) (0.78)
TOTAL DISTRIBUTIONS (0.89) (1.60) (1.37) (0.88) (0.21) (0.89)
NET ASSET VALUE,
END OF PERIOD $13.82 $13.02 $16.68 $14.39 $13.33 $11.65
TOTAL RETURN 1 13.60% (13.46%) 27.54% 15.09% 16.44% (0.91%)
RATIOS TO AVERAGE
NET ASSETS:
Expenses 2 1.03% 3 0.95% 0.94% 0.97% 0.80% 0.84%
Net investment income 2 0.68% 3 0.67% 0.78% 0.91% 1.18% 0.87%
Expenses (after waivers) 0.90% 3 0.82% 0.76% 0.74% 0.75% 0.73%
Net investment income
(after waivers) 0.81% 3 0.80% 0.96% 1.14% 1.23% 0.98%
SUPPLEMENTAL DATA:
Net assets, end of period
(000 omitted) $126,786 $118,494 $150,470 $144,690 $132,399 $98,441
Portfolio turnover 11% 48% 52% 42% 42% 32%
</TABLE>
1 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
2 During the period, certain fees were voluntarily waived. If such voluntary
waivers had not occurred, the ratios would have been as indicated.
3 Computed on an annualized basis.
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 PERIOD
(unaudited) ENDED
APRIL 30, OCTOBER 31,
1999 1998 1
<S> <C> <C>
NET ASSET VALUE, BEGINNING
OF PERIOD $13.00 $16.75
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income (net
operating loss) (0.00) 2 0.00 2
Net realized and
unrealized gain (loss) on
investments and futures
contracts 1.62 (2.25)
TOTAL FROM INVESTMENT
OPERATIONS 1.62 (2.25)
LESS DISTRIBUTIONS:
Distributions from net
investment income (0.01) (0.04)
Distributions from net
realized gain on
investments and futures
contracts (0.82) (1.46)
TOTAL DISTRIBUTIONS (0.83) (1.50)
NET ASSET VALUE, END OF
PERIOD $13.79 $13.00
TOTAL RETURN 3 13.08% (14.47% )
RATIOS TO AVERAGE NET
ASSETS:
Expenses 1.82% 4 1.72% 4
Net investment income (net
operating loss) (0.10%) 4 0.00% 4
SUPPLEMENTAL DATA:
Net assets, end of period
(000 omitted) $2,458 $1,101
Portfolio turnover 11% 48%
</TABLE>
1 Reflects operations for the period from November 10, 1997 (date of initial
public investment) to October 31, 1998.
2 Amount of net investment income (net operating loss) per share does not round
to $0.01.
3 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
4 Computed on an annualized basis.
See Notes which are an integral part of the Financial Statements
Notes to Financial Statements
APRIL 30, 1999 (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. The
investment objective of the Fund is to provide investment results that
correspond to the aggregate price and dividend performance of approximately
2,000 publicly traded common stocks that are ranked in terms of capitalization
below the top 1,000 stocks that comprise the large and mid-range capitalization
sector of the United States equity market.
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 60 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 Manager 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.
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, 1999, the Fund had realized gains on futures
contracts of $49,042. 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, 1999, the Fund had outstanding futures contracts as set forth
below:
<TABLE>
<CAPTION>
CONTRACTS TO
EXPIRATION DELIVER/ UNREALIZED
DATE RECEIVE POSITION APPRECIATION
<S> <C> <C> <C>
June 1999 76 Russell 2000 Long $506,042
</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>
SIX MONTHS YEAR
ENDED ENDED
APRIL 30, OCTOBER 31,
1999 1998
<S> <C> <C>
INSTITUTIONAL SHARES:
Shares sold 8,594,131 15,678,221
Shares issued to
shareholders in payment of
distributions declared 420,466 425,161
Shares redeemed (8,938,672) (16,024,006)
NET CHANGE RESULTING FROM
INSTITUTIONAL SHARE
TRANSACTIONS 75,925 79,376
<CAPTION>
SIX MONTHS PERIOD
ENDED ENDED
APRIL 30, OCTOBER 31,
1999 1998 1
<S> <C> <C>
CLASS C SHARES:
Shares sold 255,556 95,668
Shares issued to
shareholders in payment of
distributions declared 5,613 303
Shares redeemed (167,665) (11,263)
NET CHANGE RESULTING FROM
CLASS C SHARE TRANSACTIONS 93,504 84,708
NET CHANGE RESULTING FROM
SHARE TRANSACTIONS 169,429 164,084
</TABLE>
1 Reflects operations for the period from November 10, 1997 (date of initial
public investment) to October 31, 1998.
INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEE
Federated Investment Management Company, 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. Under the terms of a sub-advisory agreement
between the Manager and Northern Trust Quantitative Advisors, Inc., (the
"Sub-Manager"), the Sub-Manager receives an annual fee from the Manager equal to
0.065% of the Fund's average daily net assets. 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.
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>
PERCENTAGE OF
AVERAGE DAILY
NET ASSETS
SHARE CLASS NAME 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 Company ("FSSC"), the Fund will pay FSSC up to 0.25% of average daily
net assets of the Fund for the period. The fee paid to FSSC is used to finance
certain services for shareholders and to maintain shareholder accounts. FSSC may
voluntarily choose to waive any portion of its fee. FSSC 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 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.
INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the
period ended April 30, 1999, were as follows:
Purchases $12,220,616
Sales $13,607,299
YEAR 2000
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.
Trustees
JOHN F. DONAHUE
THOMAS G. BIGLEY
JOHN T. CONROY, JR.
NICHOLAS P. CONSTANTAKIS
JOHN F. CUNNINGHAM
J. CHRISTOPHER DONAHUE
LAWRENCE D. ELLIS, M.D.
PETER E. MADDEN
CHARLES F. MANSFIELD
JOHN E. MURRAY, JR., J.D., S.J.D.
MARJORIE P. SMUTS
JOHN S. WALSH
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 and Secretary
RICHARD B. FISHER
Vice President
RICHARD J. THOMAS
Treasurer
GAIL CAGNEY
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 investment risk,
including the possible loss of principal.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by the fund's prospectus which contains facts concerning
its objective and policies, management fees, expenses, and other information.
[Graphic]
Federated
World-Class Investment Manager
SEMI-ANNUAL REPORT
Federated Mini-Cap Fund
SEMI-ANNUAL REPORT
TO SHAREHOLDERS
APRIL 30, 1999
[Graphic]
Federated
Federated
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
1-800-341-7400
WWW.FEDERATEDINVESTORS.COM
Federated Securities Corp., Distributor
Cusip 31420E304
Cusip 31420E601
3052012 (6/99)
[Graphic]
