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ANNUAL REPORT
President's Message
Dear Shareholder:
I am pleased to present the Annual Report to Shareholders for Federated Managed
Allocation Portfolios (formerly, Managed Series Trust) for the 12-month period
from December 1, 1998 through November 30, 1999.
It begins with investment reviews by each Portfolio's manager, which describes
economic and market conditions and their impact on fund strategy. Following the
investment reviews are a complete list of each Portfolio's holdings and the
financial statements.
These Portfolios offer you an extremely well-diversified approach to investing
for a range of objectives--from income to conservative growth, moderate growth,
and growth.
Fund-by-fund highlights over the period are as follows:
Federated Managed Income Portfolio (formerly, Federated Managed Income Fund)
invests in a well- diversified portfolio that focuses on bonds. At the end of
the reporting period, approximately 80% of the fund's $130 million in assets was
invested across a broad range of U.S. and foreign government and corporate
bonds. The remainder of the portfolio was invested across U.S. stocks.
Over the fund's fiscal year, Institutional Shares delivered a total return of
1.22%1 through dividends totaling $0.54 per share and capital gains totaling
$0.31 per share. Select Shares produced a total return of 0.52%1 through
dividends totaling $0.47 per share and capital gains totaling $0.31 per share.
Federated Managed Conservative Growth Portfolio (formerly, Federated Managed
Growth and Income Fund) invests in a well-diversified portfolio of stocks and
bonds. At the end of the reporting period, 57.3% of the fund's $217 million in
assets was invested in U.S. and foreign bonds, with the remainder diversified
across a range of US and foreign stocks.2
Over the fund's fiscal year, Institutional Shares delivered a total return of
5.11%1 through dividends totaling $0.45 per share and capital gains totaling
$0.47 per share. Select Shares produced a total return of 4.29%1 through,
dividends totaling $0.37 per share and capital gains totaling $0.47 per share.
Federated Managed Moderate Growth Portfolio (formerly, Federated Managed Growth
Fund) invests in a well-diversified portfolio of stocks and bonds. At the end of
the reporting period, 61.9% of the fund's $265 million in assets was invested
across stocks, including large-company value, large-company growth, small-
company value, small-company growth, and foreign. The rest of the portfolio was
diversified among U.S. and foreign bonds.2
Over the fund's fiscal year, Institutional Shares delivered a total return of
11.00%/1/ through a $0.40 increase in share price, dividends totaling $0.35 per
share and capital gains totaling $0.60 per share. Select Shares produced a total
return of 10.26%1 through a $0.40 increase in share price, dividends totaling
$0.26 per share and capital gains totaling $0.60 per share.
Federated Managed Growth Portfolio (formerly, Federated Managed Aggressive
Growth Fund) invests in a well-diversified portfolio that focuses on stocks. At
the end of the reporting period, 81.1% of the fund's $162 million in assets was
invested across stocks, including large-cap value, large-cap growth, small-cap
value, small-cap growth, and foreign stocks. The rest of the portfolio consisted
of U.S. and foreign bonds./2/
Over the fund's fiscal year, Institutional Shares delivered a total return of
14.83%1 through a $1.05 increase in share price, dividends totaling $0.20 per
share and capital gains totaling $0.72 per share. Select Shares produced a total
return of 14.05%1 through a $1.05 increase in share price, dividends totaling
$0.10 per share and capital gains totaling $0.72 per share.
Thank you for pursuing your financial goals through the high level of
diversification and professional management of Federated Managed Allocation
Portfolios. As always, we invite your comments and suggestions.
Sincerely,
/s/ Glen R. Johnson
Glen R. Johnson
President
January 15, 2000
1 Performance quoted represents past performance and is no guarantee 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.
2 Foreign investing involves special risks including currency risk, increased
volatility of foreign securities, and differences in auditing and other
financial standards.
Investment Review
PERFORMANCE FOR 12 MONTHS ENDED NOVEMBER 30, 1999
The 12-month reporting period ended November 30, 1999 was a generally favorable
one for financial assets, and Federated Managed Income Portfolio participated in
the advance. For the 12 months ended November 30, 1999, an investor in the
Institutional Shares had a total return of 1.22%,* while an investor in the
Select Shares had a total return of 0.52%.* As usual, performance among asset
classes showed wide variation. Stocks of large U.S. companies did especially
well as investors continued to favor large capitalization growth stocks, while
utility stocks had an exceptionally poor year. The U.S. stock markets set new
all-time highs during the summer, but then embarked on a decline for several
months before rebounding in October. Bonds, in contrast to stocks, spent much of
the 12 months under pressure as interest rates rose in response to increases in
short-term interest rates by the Federal Reserve Board (the "Fed").
ASSET ALLOCATION AS OF NOVEMBER 30, 1999
Federated Managed Income Portfolio operates on an investment philosophy that,
over time, an investor with a diversified portfolio will achieve better returns
with the same risk, or the same returns with lower risk, than an investor in a
single asset category. Therefore, to ensure proper diversification of its
portfolio, the fund's investment policies require management to allocate the
portfolio among as many as nine asset categories and limit the weight of each
asset category. In allocating the fund's portfolio among asset categories, fund
management analyzes the relative value offered by each category under prevailing
market conditions. Fund management seeks to improve the fund's performance by
weighting most heavily the asset categories that management believes will
provide the best relative value. The following table shows the allocation of the
portfolio among different asset categories at November 30, 1999.
Asset Categories as a Percentage of Total Assets
Asset Category Percentage as of
November 30, 1999
Bonds/1/ 81
U.S. Treasury Securities 31
Mortgage-Backed Securities 23
Investment Grade Corporate Bonds 18
High Yield Corporate Bonds 5
Foreign Bonds 4
Equities/1/ 18
Large Company Stocks 13
Utility Stocks 5
1 Bonds convertible into equity securities at a price below the closing price
of the underlying equity securities on November 30, 1999 have been included
under the appropriate equity asset category.
The fund has a normal allocation to stocks in recognition of the risks
associated with the rise in interest rates which occurred during the past twelve
months. During this period, the Fed acted to increase short- term interest rates
on three occasions. Historically, a sequence of interest rate increases by the
Fed has been a precursor to a fall in stock prices. While the current strength
of the U.S. economy is likely to provide support for stock prices in the near
term, the combination of rising interest rates and an overvalued stock market
has substantially increased the risk of holding an overweight position in
stocks.
*Performance quoted represents past performance and is no guarantee 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.
Structure of the Bond Portfolio
Management has kept a defensive bond position to reduce interest rate risk,
since bond prices fall when interest rates rise. During the past year, the
continued strong growth in the U.S. economy and the strengthening growth rates
in the economies of Europe and Asia have increased concerns among investors that
higher global demand will lead to higher inflation rates. Anticipating that
these concerns would also lead to higher interest rates, fund management has
maintained a shorter than normal bond duration for most of the past twelve
months.
Within the bond portfolio, higher yielding bonds such as mortgage-backed
securities and high yield bonds were emphasized during the first part of the
year because of the higher than normal yield advantage which these securities
offered. These overweight positions helped performance as investors were
gradually willing to pay more for these securities when the global economy
continued to grow without incident. As the yield advantage declined, the
emphasis on these securities was reduced.
Structure of the Equity Portfolio
Within the equity portfolio, the large cap stock and utility categories are
currently held at their normal weights. Large cap stocks have been strong
performers for much of this year as the large cap growth sector led by
technology stocks continued to exhibit remarkable price appreciation. Utility
stocks significantly trailed the rise in large cap stocks in recent months. This
is partly due to the sensitivity of utility stocks to increases in interest
rates. However, the higher yield advantage that utility stocks offer and the
improved relative valuation following their weaker performance make a normal
weight in utilities appropriate at this time.
Investment Review
Performance For 12 Months Ended November 30, 1999
The 12-month reporting period ended November 30, 1999 was a generally favorable
one for financial assets, and Federated Managed Conservative Growth Portfolio
participated in the advance. For the 12 months ended November 30, 1999, an
investor in the Institutional Shares had a total return of 5.11%,* while an
investor in the Select Shares had a total return of 4.29%.* As usual,
performance among asset classes showed wide variation. Stocks of large U.S.
companies did especially well as investors continued to favor large
capitalization growth stocks, while utility stocks had an exceptionally poor
year. The U.S. stock markets set new all-time highs during the summer, but then
embarked on a decline for several months before rebounding in October. Bonds, in
contrast to stocks, spent much of the 12 months under pressure as interest rates
rose in response to increases in short-term interest rates by the Federal
Reserve Board (the "Fed").
Asset Allocation as of November 30, 1999
Federated Managed Conservative Growth Portfolio operates on an investment
philosophy that, over time, an investor with a diversified portfolio will
achieve better returns with the same risk, or the same returns with lower risk,
than an investor in a single asset category. Therefore, to ensure proper
diversification of its portfolio, the fund's investment policies require
management to allocate the portfolio among as many as nine asset categories and
limit the weight of each asset category. In allocating the fund's portfolio
among asset categories, fund management analyzes the relative value offered by
each category under prevailing market conditions. Fund management seeks to
improve the fund's performance by weighting most heavily the asset categories
that management believes will provide the best relative value. The following
table shows the allocation of the portfolio among different asset categories at
November 30, 1999.
Asset Categories as a Percentage of Total Assets
Asset Category Percentage as of
November 30, 1999
Bonds/1/ 57
U.S. Treasury Securities 19
Mortgage-Backed Securities 16
Investment Grade Corporate Bonds 14
High Yield Corporate Bonds 4
Foreign Bonds 4
Equities/1/ 42
Large Company Stocks 31
Utility Stocks 4
Small Company Stocks 3
Foreign Stocks 4
1 Bonds convertible into equity securities at a price below the closing price
of the underlying equity securities on November 30, 1999 have been included
under the appropriate equity asset category.
The fund has a normal allocation to stocks in recognition of the risks
associated with the rise in interest rates which occurred during the past twelve
months. During this period, the Fed acted to increase short- term interest rates
on three occasions. Historically, a sequence of interest rate increases by the
Fed has been a precursor to a fall in stock prices. While the current strength
of the U.S. economy is likely to provide support for stock prices in the near
term, the combination of rising interest rates and an overvalued stock market
has substantially increased the risk of holding an overweight position in
stocks.
*Performance quoted represents past performance and is no guarantee 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.
Structure of the Bond Portfolio
Management has kept a defensive bond position to reduce interest rate risk,
since bond prices fall when interest rates rise. During the past year, the
continued strong growth in the U.S. economy and the strengthening growth rates
in the economies of Europe and Asia have increased concerns among investors that
higher global demand will lead to higher inflation rates. Anticipating that
these concerns would also lead to higher interest rates, fund management has
maintained a shorter than normal bond duration for most of the past twelve
months.
Within the bond portfolio, higher yielding bonds such as mortgage-backed
securities and high yield bonds were emphasized during the first part of the
year because of the higher than normal yield advantage which these securities
offered. These overweight positions helped performance as investors were
gradually willing to pay more for these securities when the global economy
continued to grow without incident. As the yield advantage declined, the
emphasis on these securities was reduced.
Structure of the Equity Portfolio
Within the equity portfolio, the foreign stock and large cap growth stock
categories are currently held at above their normal allocations. Large cap
stocks have been strong performers for much of this year as the large cap growth
sector led by technology stocks continued to exhibit remarkable price
appreciation. The recovery of the Japanese economy and the strengthening of the
European economies has also improved the relative performance of foreign stock
markets. This stronger relative performance combined with a weaker U.S. dollar
has made foreign stocks especially attractive for U.S. investors.
Investment Review
Performance For 12 Months Ended November 30, 1999
The 12-month reporting period ended November 30, 1999 was a generally favorable
one for financial assets, and Federated Managed Moderated Growth Portfolio
participated in the advance. For the 12 months ended November 30, 1999, an
investor in the Institutional Shares had a total return of 11.00%,* while an
investor in the Select Shares had a total return of 10.26%.* As usual,
performance among asset classes showed wide variation. Stocks of large U.S.
companies did especially well as investors continued to favor large
capitalization growth stocks. The U.S. stock markets set new all-time highs
during the summer, but then embarked on a decline for several months before
rebounding in October. Bonds, in contrast to stocks, spent much of the 12 months
under pressure as interest rates rose in response to increases in short-term
interest rates by the Federal Reserve Board (the "Fed").
Asset Allocation as of November 30, 1999
Federated Managed Moderate Growth Portfolio operates on an investment philosophy
that, over time, an investor with a diversified portfolio will achieve better
returns with the same risk, or the same returns with lower risk, than an
investor in a single asset category. Therefore, to ensure proper diversification
of its portfolio, the fund's investment policies require management to allocate
the portfolio among as many as nine asset categories and limit the weight of
each asset category. In allocating the fund's portfolio among asset categories,
fund management analyzes the relative value offered by each category under
prevailing market conditions. Fund management seeks to improve the fund's
performance by weighting most heavily the asset categories that management
believes will provide the best relative value. The following table shows the
allocation of the portfolio among different asset categories at November 30,
1999.
Asset Categories as a Percentage of Total Assets
Asset Category Percentage as of
November 30, 1999
Bonds/1/ 37
U.S. Treasury Securities 13
Mortgage-Backed Securities 8
Investment Grade Corporate Bonds 7
High Yield Corporate Bonds 5
Foreign Bonds 4
Equities/1/ 62
Large Company Stocks 36
Small Company Stocks 12
Foreign Stocks 13
1 Bonds convertible into equity securities at a price below the closing price
of the underlying equity securities on November 30, 1999 have been included
under the appropriate equity asset category.
The fund has a normal allocation to stocks in recognition of the risks
associated with the rise in interest rates which occurred during the past twelve
months. During this period, the Fed acted to increase short- term interest rates
on three occasions. Historically, a sequence of interest rate increases by the
Fed has been a precursor to a fall in stock prices. While the current strength
of the U.S. economy is likely to provide support for stock prices in the near
term, the combination of rising interest rates and an overvalued stock market
has substantially increased the risk of holding an overweight position in
stocks.
*Performance quoted represents past performance and is no guarantee 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.
Structure of the Bond Portfolio
Management has kept a defensive bond position to reduce interest rate risk,
since bond prices fall when interest rates rise. During the past year, the
continued strong growth in the U.S. economy and the strengthening growth rates
in the economies of Europe and Asia have increased concerns among investors that
higher global demand will lead to higher inflation rates. Anticipating that
these concerns would also lead to higher interest rates, fund management has
maintained a shorter than normal bond duration for most of the past twelve
months.
Within the bond portfolio, higher yielding bonds such as mortgage-backed
securities and high yield bonds were emphasized during the first part of the
year because of the higher than normal yield advantage which these securities
offered. These overweight positions helped performance as investors were
gradually willing to pay more for these securities when the global economy
continued to grow without incident. As the yield advantage declined, the
emphasis on these securities was reduced.
Structure of the Equity Portfolio
Within the equity portfolio, the foreign stock and large cap growth stock
categories are currently held at above their normal allocations. Large cap
stocks have been strong performers for much of this year as the large cap growth
sector led by technology stocks continued to exhibit remarkable price
appreciation. The recovery of the Japanese economy and the strengthening of the
European economies has also improved the relative performance of foreign stock
markets. This stronger relative performance combined with a weaker U.S. dollar
has made foreign stocks especially attractive for U.S. investors.
Investment Review
Performance For 12 Months Ended November 30, 1999
The 12 month reporting period ended November 30, 1999 was a generally favorable
one for financial assets, and Federated Managed Growth Portfolio participated in
the advance. For the 12 months ended November 30, 1999, an investor in the
Institutional Shares had a total return of 14.83%,* while an investor in the
Select Shares had a total return of 14.05%.* As usual, performance among asset
classes showed wide variation. Stocks of large U.S. companies did especially
well as investors continued to favor large capitalization growth stocks. The
U.S. stock markets set new all-time highs during the summer, but then embarked
on a decline for several months before rebounding in October. Bonds, in contrast
to stocks, spent much of the 12 months under pressure as interest rates rose in
response to increases in short-term interest rates by the Federal Reserve Board
(the "Fed").
Asset Allocation as of November 30, 1999
Federated Managed Growth Portfolio operates on an investment philosophy that,
over time, an investor with a diversified portfolio will achieve better returns
with the same risk, or the same returns with lower risk, than an investor in a
single asset category. Therefore, to ensure proper diversification of its
portfolio, the fund's investment policies require management to allocate the
portfolio among as many as nine asset categories and limit the weight of each
asset category. In allocating the fund's portfolio among asset categories, fund
management analyzes the relative value offered by each category under prevailing
market conditions. Fund management seeks to improve the fund's performance by
weighting most heavily the asset categories that management believes will
provide the best relative value. The following table shows the allocation of the
portfolio among different asset categories at November 30, 1999.
Asset Categories as a Percentage of Total Assets
Asset Category Percentage as of
November 30, 1999
Bonds/1/ 17
U.S. Treasury Securities 10
High Yield Corporate Bonds 4
Foreign Bonds 3
Equities/1/ 81
Large Company Stocks 49
Small Company Stocks 15
Foreign Stocks 17
1 Bonds convertible into equity securities at a price below the closing price
of the underlying equity securities on November 30, 1999 have been included
under the appropriate equity asset category.
The fund has a normal allocation to stocks in recognition of the risks
associated with the rise in interest rates which occurred during the past twelve
months. During this period, the Fed acted to increase short- term interest rates
on three occasions. Historically, a sequence of interest rate increases by the
Fed has been a precursor to a fall in stock prices. While the current strength
of the U.S. economy is likely to provide support for stock prices in the near
term, the combination of rising interest rates and an overvalued stock market
has substantially increased the risk of holding an overweight position in
stocks.
*Performance quoted represents past performance and is no guarantee 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.
Structure of the Bond Portfolio
Management has kept a defensive bond position to reduce interest rate risk,
since bond prices fall when interest rates rise. During the past year, the
continued strong growth in the U.S. economy and the strengthening growth rates
in the economies of Europe and Asia have increased concerns among investors that
higher global demand will lead to higher inflation rates. Anticipating that
these concerns would also lead to higher interest rates, fund management has
maintained a shorter than normal bond duration for most of the past twelve
months.
Within the bond portfolio, higher yielding bonds such as mortgage-backed
securities and high yield bonds were emphasized during the first part of the
year because of the higher than normal yield advantage which these securities
offered. These overweight positions helped performance as investors were
gradually willing to pay more for these securities when the global economy
continued to grow without incident. As the yield advantage declined, the
emphasis on these securities was reduced.
Structure of the Equity Portfolio
Within the equity portfolio, the foreign stock and large cap growth stock
categories are currently held at above their normal allocations. Large cap
stocks have been strong performers for much of this year as the large cap growth
sector led by technology stocks continued to exhibit remarkable price
appreciation. The recovery of the Japanese economy and the strengthening of the
European economies has also improved the relative performance of foreign stock
markets. This stronger relative performance combined with a weaker U.S. dollar
has made foreign stocks especially attractive for U.S. investors.
Shareholder Meeting Results
A Special Meeting of Shareholders of Federated Managed Income Portfolio
(formerly, Federated Managed Income Fund) (the "Fund"), a portfolio of Federated
Managed Allocation Portfolios (formerly, Managed Series Trust) (the "Trust"),
was held on November 23, 1999. On September 24, 1999, the record date for
shareholders voting at the meeting, there were 12,571,505 total outstanding
shares. The following items were considered by shareholders of the Fund and the
results of their voting were as follows:
AGENDA ITEM 1: To elect seven Trustees.
<TABLE>
<CAPTION>
Shares Voted For Shares Withheld Authority
<S> <C> <C>
Thomas G. Bigley 7,420,689 47,123
Nicholas P. Constantakis 7,421,688 46,124
John F. Cunningham 7,416,382 51,430
J. Christopher Donahue 7,428,082 39,730
Charles F. Mansfield, Jr. 7,419,926 47,886
John E. Murray, Jr., J.D., S.J.D. 7,422,782 45,030
John S. Walsh 7,426,225 41,587
</TABLE>
AGENDA ITEM 2: To make changes to the Fund's fundamental investment policies:
(a) To approve amending the Fund's fundamental investment policy regarding
diversification:
<TABLE>
<CAPTION>
Shares Shares Shares Broker
Voted Voted Abstaining Non-Vote
For Against
<S> <C> <C> <C> <C>
7,014,368 94,398 60,915 298,131
</TABLE>
(b) To approve amending the Fund's fundamental investment policy regarding
borrowing money and issuing senior securities:
<TABLE>
<CAPTION>
Shares Shares Shares Broker
Voted Voted Abstaining Non-Vote
For Against
<S> <C> <C> <C> <C>
6,962,249 123,041 84,392 298,131
</TABLE>
(c) To approve amending the Fund's fundamental investment policy regarding
investments in real estate:
<TABLE>
<CAPTION>
Shares Shares Shares Broker
Voted Voted Abstaining Non-Vote
For Against
<S> <C> <C> <C> <C>
6,982,684 118,814 68,184 298,131
</TABLE>
(d) To approve amending the Fund's fundamental investment policy regarding
investments in commodities:
<TABLE>
<CAPTION>
Shares Shares Shares Broker
Voted Voted Abstaining Non-Vote
For Against
<S> <C> <C> <C> <C>
6,962,795 153,283 53,605 298,130
</TABLE>
(e) To approve amending the Fund's fundamental investment policy regarding
underwriting securities:
<TABLE>
<CAPTION>
Shares Shares Shares Broker
Voted Voted Abstaining Non-Vote
For Against
<S> <C> <C> <C> <C>
6,985,132 120,030 64,521 298,130
</TABLE>
(f) To approve amending the Fund's fundamental investment policy regarding
lending by the Fund:
<TABLE>
<CAPTION>
Shares Shares Shares Broker
Voted Voted Abstaining Non-Vote
For Against
<S> <C> <C> <C> <C>
6,992,233 125,633 51,816 298,131
</TABLE>
(g) To approve amending the Fund's fundamental investment policy regarding
concentration of the Fund's investments in the securities of companies in the
same industry: <TABLE> <CAPTION>
Shares Shares Shares Broker
Voted Voted Abstaining Non-Vote
For Against
<S> <C> <C> <C> <C>
7,009,241 102,303 58,138 298,131
</TABLE>
(h) To approve amending, and making non-fundamental, the Fund's fundamental
investment policy regarding buying securities on margin:
<TABLE>
<CAPTION>
Shares Shares Shares Broker
Voted Voted Abstaining Non-Vote
For Against
<S> <C> <C> <C> <C>
6,963,432 137,336 68,915 298,130
</TABLE>
(i) To approve amending, and making non-fundamental, the Fund's fundamental
investment policy regarding pledging assets:
<TABLE>
<CAPTION>
Shares Shares Shares Broker
Voted Voted Abstaining Non-Vote
For Against
<S> <C> <C> <C> <C>
6,960,902 139,885 68,895 298,131
</TABLE>
AGENDA ITEM 3: To approve eliminating the Fund's fundamental investment policy
regarding selling securities short:
<TABLE>
<CAPTION>
Shares Shares Shares Broker
Voted Voted Abstaining Non-Vote
For Against
<S> <C> <C> <C> <C>
6,963,650 146,673 59,359 298,131
</TABLE>
AGENDA ITEM 4: To approve restating the Fund's fundamental investment objective
to provide that the Fund shall seek total return with an emphasis on income and
potential for capital appreciation:
<TABLE>
<CAPTION>
Shares Shares Shares Broker
Voted Voted Abstaining Non-Vote
For Against
<S> <C> <C> <C> <C>
7,013,258 93,601 62,823 298,131
</TABLE>
AGENDA ITEM 5: To approve amendments to, and a restatement of, the Trust's
Declaration of Trust:
(a) To approve an amendment to, and restatement of, the Trust's Declaration of
Trust to require the approval by a majority of the outstanding voting shares in
the event of the sale or conveyance of the assets of the Trust to another trust
or corporation: <TABLE> <CAPTION>
Shares Shares Shares Broker
Voted Voted Abstaining Non-Vote
For Against
<S> <C> <C> <C> <C>
7,033,388 74,778 61,517 298,130
</TABLE>
(b) To approve an amendment to, and restatement of, the Trust's Declaration of
Trust to permit the Board of Trustees to liquidate assets of the Trust, or of
its series or classes, and distribute the proceeds of such assets without
seeking shareholder approval: <TABLE> <CAPTION>
Shares Shares Shares Broker
Voted Voted Abstaining Non-Vote
For Against
<S> <C> <C> <C> <C>
6,746,364 356,760 66,558 298,131
</TABLE>
Shareholder Meeting Results
A Special Meeting of Shareholders of Federated Managed Conservative Growth
Portfolio (formerly, Federated Managed Growth and Income Fund) (the "Fund"), a
portfolio of Federated Managed Allocation Portfolios (formerly, Managed Series
Trust) (the "Trust"), was held on November 23, 1999. On September 24, 1999, the
record date for shareholders voting at the meeting, there were 18,786,274 total
outstanding shares. The following items were considered by shareholders of the
Fund and the results of their voting were as follows:
AGENDA ITEM 1: To elect seven Trustees.
<TABLE>
<CAPTION>
Shares Voted For Shares Withheld Authority
<S> <C> <C>
Thomas G. Bigley 11,927,255 45,337
Nicholas P. Constantakis 11,927,255 45,337
John F. Cunningham 11,926,501 46,091
J. Christopher Donahue 11,919,368 53,224
Charles F. Mansfield, Jr. 11,926,523 46,069
John E. Murray, Jr., J.D., S.J.D. 11,927,255 45,337
John S. Walsh 11,927,255 45,337
</TABLE>
AGENDA ITEM 2: To make changes to the Fund's fundamental investment policies:
(a) To approve amending the Fund's fundamental investment policy regarding
diversification:
<TABLE>
<CAPTION>
Shares Shares Shares Broker
Voted Voted Abstaining Non-Vote
For Against
<S> <C> <C> <C> <C>
11,036,946 139,967 359,881 435,799
</TABLE>
(b) To approve amending the Fund's fundamental investment policy regarding
borrowing money and issuing senior securities:
<TABLE>
<CAPTION>
Shares Shares Shares Broker
Voted Voted Abstaining Non-Vote
For Against
<S> <C> <C> <C> <C>
10,949,857 183,324 403,613 435,799
</TABLE>
(c) To approve amending the Fund's fundamental investment policy regarding
investments in real estate:
<TABLE>
<CAPTION>
Shares Shares Shares Broker
Voted Voted Abstaining Non-Vote
For Against
<S> <C> <C> <C> <C>
10,959,225 203,125 374,444 435,799
</TABLE>
(d) To approve amending the Fund's fundamental investment policy regarding
investments in commodities:
<TABLE>
<CAPTION>
Shares Shares Shares Broker
Voted Voted Abstaining Non-Vote
For Against
<S> <C> <C> <C> <C>
10,913,873 220,041 402,879 435,799
</TABLE>
(e) To approve amending the Fund's fundamental investment policy regarding
underwriting securities:
<TABLE>
<CAPTION>
Shares Shares Shares Broker
Voted Voted Abstaining Non-Vote
For Against
<S> <C> <C> <C> <C>
11,013,597 160,467 362,730 435,799
</TABLE>
(f) To approve amending the Fund's fundamental investment policy regarding
lending by the Fund:
<TABLE>
<CAPTION>
Shares Shares Shares Broker
Voted Voted Abstaining Non-Vote
For Against
<S> <C> <C> <C> <C>
10,940,452 201,314 395,028 435,799
</TABLE>
(g) To approve amending the Fund's fundamental investment policy regarding
concentration of the Fund's investments in the securities of companies in the
same industry: <TABLE> <CAPTION>
Shares Shares Shares Broker
Voted Voted Abstaining Non-Vote
For Against
<S> <C> <C> <C> <C>
10,978,013 156,559 402,222 435,799
</TABLE>
(h) To approve amending, and making non-fundamental, the Fund's fundamental
investment policy regarding buying securities on margin:
<TABLE>
<CAPTION>
Shares Shares Shares Broker
Voted Voted Abstaining Non-Vote
For Against
<S> <C> <C> <C> <C>
10,816,084 212,214 508,496 435,799
</TABLE>
(i) To approve amending, and making non-fundamental, the Fund's fundamental
investment policy regarding pledging assets:
<TABLE>
<CAPTION>
Shares Shares Shares Broker
Voted Voted Abstaining Non-Vote
For Against
<S> <C> <C> <C> <C>
10,946,459 190,170 400,165 435,799
</TABLE>
AGENDA ITEM 3: To approve eliminating the Fund's fundamental investment policy
regarding selling securities short:
<TABLE>
<CAPTION>
Shares Shares Shares Broker
Voted Voted Abstaining Non-Vote
For Against
<S> <C> <C> <C> <C>
10,897,183 240,675 398,936 435,799
</TABLE>
AGENDA ITEM 4: To approve restating the Fund's fundamental investment objective
to provide that the Fund shall seek total return with an emphasis on income and
capital appreciation:
<TABLE>
<CAPTION>
Shares Shares Shares Broker
Voted Voted Abstaining Non-Vote
For Against
<S> <C> <C> <C> <C>
11,322,851 132,073 81,870 435,799
</TABLE>
AGENDA ITEM 5: To approve amendments to, and a restatement of, the Trust's
Declaration of Trust:
(a) To approve an amendment to, and restatement of, the Trust's Declaration of
Trust to require the approval by a majority of the outstanding voting shares in
the event of the sale or conveyance of the assets of the Trust to another trust
or corporation: <TABLE> <CAPTION>
Shares Shares Shares Broker
Voted Voted Abstaining Non-Vote
For Against
<S> <C> <C> <C> <C>
11,327,752 131,715 77,327 435,799
</TABLE>
(b) To approve an amendment to, and restatement of, the Trust's Declaration of
Trust to permit the Board of Trustees to liquidate assets of the Trust, or of
its series or classes, and distribute the proceeds of such assets without
seeking shareholder approval: <TABLE> <CAPTION>
Shares Shares Shares Broker
Voted Voted Abstaining Non-Vote
For Against
<S> <C> <C> <C> <C>
10,565,741 872,887 98,166 435,799
</TABLE>
Shareholder Meeting Results
A Special Meeting of Shareholders of Federated Managed Moderate Growth Portfolio
(formerly, Federated Managed Growth Fund) (the "Fund"), a portfolio of Federated
Managed Allocation Portfolios (formerly, Managed Series Trust) (the "Trust"),
was held on November 23, 1999. On September 24, 1999, the record date for
shareholders voting at the meeting, there were 19,889,054 total outstanding
shares. The following items were considered by shareholders of the Fund and the
results of their voting were as follows:
AGENDA ITEM 1: To elect seven Trustees.
<TABLE>
<CAPTION>
Shares Voted For Shares Withheld Authority
<S> <C> <C>
Thomas G. Bigley 12,600,141 72,114
Nicholas P. Constantakis 12,596,906 75,349
John F. Cunningham 12,600,141 72,114
J. Christopher Donahue 12,598,896 73,359
Charles F. Mansfield, Jr. 12,600,141 72,114
John E. Murray, Jr., J.D., S.J.D. 12,600,141 72,114
John S. Walsh 12,600,141 72,114
</TABLE>
AGENDA ITEM 2: To make changes to the Fund's fundamental investment policies:
(a) To approve amending the Fund's fundamental investment policy regarding
diversification:
<TABLE>
<CAPTION>
Shares Shares Shares Broker
Voted Voted Abstaining Non-Vote
For Against
<S> <C> <C> <C> <C>
11,597,522 441,989 89,967 542,778
</TABLE>
(b) To approve amending the Fund's fundamental investment policy regarding
borrowing money and issuing senior securities:
<TABLE>
<CAPTION>
Shares Shares Shares Broker
Voted Voted Abstaining Non-Vote
For Against
<S> <C> <C> <C> <C>
11,555,335 459,066 115,077 542,778
</TABLE>
(c) To approve amending the Fund's fundamental investment policy regarding
investments in real estate:
<TABLE>
<CAPTION>
Shares Shares Shares Broker
Voted Voted Abstaining Non-Vote
For Against
<S> <C> <C> <C> <C>
11,624,656 417,163 87,659 542,778
</TABLE>
(d) To approve amending the Fund's fundamental investment policy regarding
investments in commodities:
<TABLE>
<CAPTION>
Shares Shares Shares Broker
Voted Voted Abstaining Non-Vote
For Against
<S> <C> <C> <C> <C>
11,565,320 453,449 110,709 542,778
</TABLE>
(e) To approve amending the Fund's fundamental investment policy regarding
underwriting securities:
<TABLE>
<CAPTION>
Shares Shares Shares Broker
Voted Voted Abstaining Non-Vote
For Against
<S> <C> <C> <C> <C>
11,588,378 447,672 93,428 542,778
</TABLE>
(f) To approve amending the Fund's fundamental investment policy regarding
lending by the Fund:
<TABLE>
<CAPTION>
Shares Shares Shares Broker
Voted Voted Abstaining Non-Vote
For Against
<S> <C> <C> <C> <C>
11,582,594 437,068 109,816 542,778
</TABLE>
(g) To approve amending the Fund's fundamental investment policy regarding
concentration of the Fund's investments in the securities of companies in the
same industry: <TABLE> <CAPTION>
Shares Shares Shares Broker
Voted Voted Abstaining Non-Vote
For Against
<S> <C> <C> <C> <C>
11,602,930 433,227 93,321 542,778
</TABLE>
(h) To approve amending, and making non-fundamental, the Fund's fundamental
investment policy regarding buying securities on margin:
<TABLE>
<CAPTION>
Shares Shares Shares Broker
Voted Voted Abstaining Non-Vote
For Against
<S> <C> <C> <C> <C>
11,533,252 455,075 141,151 542,778
</TABLE>
(i) To approve amending, and making non-fundamental, the Fund's fundamental
investment policy regarding pledging assets:
<TABLE>
<CAPTION>
Shares Shares Shares Broker
Voted Voted Abstaining Non-Vote
For Against
<S> <C> <C> <C> <C>
11,567,928 447,829 113,721 542,778
</TABLE>
AGENDA ITEM 3: To approve eliminating the Fund's fundamental investment policy
regarding selling securities short:
<TABLE>
<CAPTION>
Shares Shares Shares Broker
Voted Voted Abstaining Non-Vote
For Against
<S> <C> <C> <C> <C>
11,549,034 477,969 102,475 542,778
</TABLE>
AGENDA ITEM 4: To approve restating the Fund's fundamental investment objective
to provide that the Fund shall seek capital appreciation with income as a
secondary objective:
<TABLE>
<CAPTION>
Shares Shares Shares Broker
Voted Voted Abstaining Non-Vote
For Against
<S> <C> <C> <C> <C>
11,867,564 164,708 97,206 542,778
</TABLE>
AGENDA ITEM 5: To approve amendments to, and a restatement of, the Trust's
Declaration of Trust:
(a) To approve an amendment to, and restatement of, the Trust's Declaration of
Trust to require the approval by a majority of the outstanding voting shares in
the event of the sale or conveyance of the assets of the Trust to another trust
or corporation: <TABLE> <CAPTION>
Shares Shares Shares Broker
Voted Voted Abstaining Non-Vote
For Against
<S> <C> <C> <C> <C>
11,630,036 409,669 89,773 542,778
</TABLE>
(b) To approve an amendment to, and restatement of, the Trust's Declaration of
Trust to permit the Board of Trustees to liquidate assets of the Trust, or of
its series or classes, and distribute the proceeds of such assets without
seeking shareholder approval: <TABLE> <CAPTION>
Shares Shares Shares Broker
Voted Voted Abstaining Non-Vote
For Against
<S> <C> <C> <C> <C>
10,892,241 1,146,203 91,034 542,778
</TABLE>
Shareholder Meeting Results
A Special Meeting of Shareholders of Federated Managed Growth Portfolio
(formerly, Federated Managed Aggressive Growth Fund) (the "Fund"), a portfolio
of Federated Managed Allocation Portfolios (formerly, Managed Series Trust) (the
"Trust"), was held on November 23, 1999. On September 24, 1999, the record date
for shareholders voting at the meeting, there were 10,560,466 total outstanding
shares. The following items were considered by shareholders of the Fund and the
results of their voting were as follows:
AGENDA ITEM 1: To elect seven Trustees.
<TABLE>
<CAPTION>
Shares Voted For Shares Withheld Authority
<S> <C> <C>
Thomas G. Bigley 5,761,502 58,278
Nicholas P. Constantakis 5,758,328 61,452
John F. Cunningham 5,760,131 59,649
J. Christopher Donahue 5,761,496 58,284
Charles F. Mansfield, Jr. 5,761,492 58,288
John E. Murray, Jr., J.D., S.J.D. 5,761,492 58,288
John S. Walsh 5,761,492 58,288
</TABLE>
AGENDA ITEM 2: To make changes to the Fund's fundamental investment policies:
(a) To approve amending the Fund's fundamental investment policy regarding
diversification:
<TABLE>
<CAPTION>
Shares Shares Shares Broker
Voted Voted Abstaining Non-Vote
For Against
<S> <C> <C> <C> <C>
5,432,755 143,640 20,386 222,999
</TABLE>
(b) To approve amending the Fund's fundamental investment policy regarding
borrowing money and issuing senior securities:
<TABLE>
<CAPTION>
Shares Shares Shares Broker
Voted Voted Abstaining Non-Vote
For Against
<S> <C> <C> <C> <C>
5,358,764 163,982 74,035 222,999
</TABLE>
(c) To approve amending the Fund's fundamental investment policy regarding
investments in real estate:
<TABLE>
<CAPTION>
Shares Shares Shares Broker
Voted Voted Abstaining Non-Vote
For Against
<S> <C> <C> <C> <C>
5,425,466 148,235 23,080 222,999
</TABLE>
(d) To approve amending the Fund's fundamental investment policy regarding
investments in commodities:
<TABLE>
<CAPTION>
Shares Shares Shares Broker
Voted Voted Abstaining Non-Vote
For Against
<S> <C> <C> <C> <C>
5,359,194 214,576 23,011 222,999
</TABLE>
(e) To approve amending the Fund's fundamental investment policy regarding
underwriting securities:
<TABLE>
<CAPTION>
Shares Shares Shares Broker
Voted Voted Abstaining Non-Vote
For Against
<S> <C> <C> <C> <C>
5,328,850 207,440 60,491 222,999
</TABLE>
(f) To approve amending the Fund's fundamental investment policy regarding
lending by the Fund:
<TABLE>
<CAPTION>
Shares Shares Shares Broker
Voted Voted Abstaining Non-Vote
For Against
<S> <C> <C> <C> <C>
5,409,924 162,715 24,142 222,999
</TABLE>
(g) To approve amending the Fund's fundamental investment policy regarding
concentration of the Fund's investments in the securities of companies in the
same industry: <TABLE> <CAPTION>
Shares Shares Shares Broker
Voted Voted Abstaining Non-Vote
For Against
<S> <C> <C> <C> <C>
5,373,003 184,135 39,643 222,999
</TABLE>
(h) To approve amending, and making non-fundamental, the Fund's fundamental
investment policy regarding buying securities on margin:
<TABLE>
<CAPTION>
Shares Shares Shares Broker
Voted Voted Abstaining Non-Vote
For Against
<S> <C> <C> <C> <C>
5,335,243 212,326 49,212 222,999
</TABLE>
(i) To approve amending, and making non-fundamental, the Fund's fundamental
investment policy regarding pledging assets:
<TABLE>
<CAPTION>
Shares Shares Shares Broker
Voted Voted Abstaining Non-Vote
For Against
<S> <C> <C> <C> <C>
5,406,935 162,455 27,391 222,999
</TABLE>
AGENDA ITEM 3: To approve eliminating the Fund's fundamental investment policy
regarding selling securities short:
<TABLE>
<CAPTION>
Shares Shares Shares Broker
Voted Voted Abstaining Non-Vote
For Against
<S> <C> <C> <C> <C>
5,343,934 228,710 24,137 222,999
</TABLE>
AGENDA ITEM 4: To approve amendments to, and a restatement of, the Trust's
Declaration of Trust:
(a) To approve an amendment to, and restatement of, the Trust's Declaration of
Trust to require the approval by a majority of the outstanding voting shares in
the event of the sale or conveyance of the assets of the Trust to another trust
or corporation: <TABLE> <CAPTION>
Shares Shares Shares Broker
Voted Voted Abstaining Non-Vote
For Against
<S> <C> <C> <C> <C>
5,441,606 126,209 28,966 222,999
</TABLE>
(b) To approve an amendment to, and restatement of, the Trust's Declaration of
Trust to permit the Board of Trustees to liquidate assets of the Trust, or of
its series or classes, and distribute the proceeds of such assets without
seeking shareholder approval: <TABLE> <CAPTION>
Shares Shares Shares Broker
Voted Voted Abstaining Non-Vote
For Against
<S> <C> <C> <C> <C>
5,015,283 559,733 21,765 222,999
</TABLE>
Federated Managed Income Portfolio-Institutional Shares
(formerly, Federated Managed Income Fund)
Growth of $25,000 Invested in Federated Managed Income Portfolio
"Graphic representation "A" omitted. See Appendix."
The graph below illustrates the hypothetical investment of $25,000* in Federated
Managed Income Portfolio (Institutional Shares) (the "Fund") from May 25, 1994
(start of performance) to November 30, 1999 compared to the Lehman Brothers
Government/Corporate Index (LBG/CI)+ and the Managed Income Indices Blend
(MIIB).++
Average Annual Total Return for the Period Ended
November 30, 1999
1 Year 1.22%
5 Years 8.29%
Start of Performance (5/25/94) 7.59%
Past performance is no guarantee of future results. Your investment return and
principal value will fluctuate so when shares are redeemed, they may be worth
more or less than original cost. Mutual funds are not obligations of or
guaranteed by any bank and are not federally insured. * The Fund's performance
assumes the reinvestment of all dividends and
distributions. The LBG/CI and the MIIB have been adjusted to reflect
reinvestment of dividends on securities in the indices.
+ The LBG/CI is not adjusted to reflect sales charges, expenses, or other fees
that the Securities and Exchange Commission requires to be reflected in the
Fund's performance. This index is unmanaged.
++The MIIB is a blend of index total returns that represent the Fund's
allocation in the market sectors. The blend is comprised of 15% Standard and
Poor's 500 Index, 5% Standard and Poor's Utility Index, 15% Lehman Brothers
Long Treasury Index, 15% Lehman Brothers Intermediate Treasury Index, 20%
Lehman Brothers Mortgage Index, 20% Lehman Brothers Intermediate Corporate
Index, 5% Lehman Brothers Single B Rated Index, and 5% JP Morgan Global Traded
Index Excluding U.S. Each index is reported net of sales charges, expenses or
other fees that the Securities and Exchange Commission requires to be
reflected in a fund's performance. These indices are unmanaged.
Federated Managed Income Portfolio-Select Shares
(formerly, Federated Managed Income Fund)
Growth of $10,000 Invested in Federated Managed Income Portfolio
"Graphic representation "B" omitted. See Appendix."
The graph below illustrates the hypothetical investment of $10,000* in Federated
Managed Income Portfolio (Select Shares) (the "Fund") from May 25, 1994 (start
of performance) to November 30, 1999 compared to the Lehman Brothers
Government/Corporate Index (LBG/CI)+ and the Managed Income Indices Blend
(MIIB).++
Average Annual Total Return for the Period Ended
November 30, 1999
1 Year 0.52%
5 Years 7.50%
Start of Performance (5/25/94) 6.82%
Past performance is no guarantee of future results. Your investment return and
principal value will fluctuate so when shares are redeemed, they may be worth
more or less than original cost. Mutual funds are not obligations of or
guaranteed by any bank and are not federally insured.
* The Fund's performance assumes the reinvestment of all dividends and
distributions. The LBG/CI and the MIIB have been adjusted to reflect
reinvestment of dividends on securities in the indices.
+ The LBG/CI is not adjusted to reflect sales charges, expenses, or other fees
that the Securities and Exchange Commission requires to be reflected in the
Fund's performance. This index is unmanaged.
++The MIIB is a blend of index total returns that represent the Fund's
allocation in the market sectors. The blend is comprised of 15% Standard and
Poor's 500 Index, 5% Standard and Poor's Utility Index, 15% Lehman Brothers
Long Treasury Index, 15% Lehman Brothers Intermediate Treasury Index, 20%
Lehman Brothers Mortgage Index, 20% Lehman Brothers Intermediate Corporate
Index, 5% Lehman Brothers Single B Rated Index, and 5% JP Morgan Global Traded
Index Excluding U.S. Each index is reported net of sales charges, expenses or
other fees that the Securities and Exchange Commission requires to be
reflected in a fund's performance. These indices are unmanaged.
Federated Managed Conservative Growth Portfolio-
Institutional Shares
(formerly, Federated Managed Growth and Income Fund)
Growth of $25,000 Invested in Federated Managed Conservative Growth Portfolio
"Graphic representation "C" omitted. See Appendix."
The graph below illustrates the hypothetical investment of $25,000* in Federated
Managed Conservative Growth Portfolio (Institutional Shares) (the "Fund") from
May 25, 1994 (start of performance) to November 30, 1999 compared to the Lehman
Brothers Government/Corporate Index (LBG/CI)+ and the Managed Conservative
Growth Indices Blend (MCGIB).++
Average Annual Total Return for the Period Ended
November 30, 1999
1 Year 5.11%
5 Years 10.84%
Start of Performance (5/25/94) 9.77%
Past performance is no guarantee of future results. Your investment return and
principal value will fluctuate so when shares are redeemed, they may be worth
more or less than original cost. Mutual funds are not obligations of or
guaranteed by any bank and are not federally insured.
* The Fund's performance assumes the reinvestment of all dividends and
distributions. The LBG/CI and the MCGIB have been adjusted to reflect
reinvestment of dividends on securities in the indices.
+ The LBG/CI is not adjusted to reflect sales charges, expenses, or other fees
that the Securities and Exchange Commission requires to be reflected in the
Fund's performance. This index is unmanaged.
++The MCGIB is a blend of index total returns that represent the Fund's
allocation in the market sectors. The blend is comprised of 30% Standard and
Poor's 500 Index, 2.5% Russell 2000 Index, 5% Standard and Poor's Utility
Index, 2.5% Morgan Stanley Capital International Europe Australia Far East
Index, 10% Lehman Brothers Long Treasury Index, 10% Lehman Brothers
Intermediate Treasury Index, 15% Lehman Brothers Mortgage Index, 15% Lehman
Brothers Intermediate Corporate Index, 5% Lehman Brothers Single B Rated
Index, and 5% JP Morgan Global Traded Index Excluding U.S. Each index is
reported net of sales charges, expenses or other fees that the Securities and
Exchange Commission requires to be reflected in a fund's performance. These
indices are unmanaged.
Federated Managed Conservative Growth Portfolio-Select Shares
(formerly, Federated Managed Growth and Income Fund)
Growth of $10,000 Invested in Federated Managed conservative growth portfolio
"Graphic representation "D" omitted. See Appendix."
The graph below illustrates the hypothetical investment of $10,000* in Federated
Managed Conservative Growth Portfolio (Select Shares) (the "Fund") from May 25,
1994 (start of performance) to November 30, 1999 compared to the Lehman Brothers
Government/Corporate Index (LBG/CI)+ and the Managed Conservative Growth Indices
Blend (MCGIB).++
Average Annual Total Return for the Period Ended
November 30, 1999
1 Year 4.29%
5 Years 10.09%
Start of Performance (5/25/94) 9.02%
Past performance is no guarantee of future results. Your investment return and
principal value will fluctuate so when shares are redeemed, they may be worth
more or less than original cost. Mutual funds are not obligations of or
guaranteed by any bank and are not federally insured.
* The Fund's performance assumes the reinvestment of all dividends and
distributions. The LBG/CI and the MCGIB have been adjusted to reflect
reinvestment of dividends on securities in the indices.
+ The LBG/CI is not adjusted to reflect sales charges, expenses, or other fees
that the Securities and Exchange Commission requires to be reflected in the
Fund's performance. This index is unmanaged.
++The MCGIB is a blend of index total returns that represent the Fund's
allocation in the market sectors. The blend is comprised of 30% Standard and
Poor's 500 Index, 2.5% Russell 2000 Index, 5% Standard and Poor's Utility
Index, 2.5% Morgan Stanley Capital International Europe Australia Far East
Index, 10% Lehman Brothers Long Treasury Index, 10% Lehman Brothers
Intermediate Treasury Index, 15% Lehman Brothers Mortgage Index, 15% Lehman
Brothers Intermediate Corporate Index, 5% Lehman Brothers Single B Rated
Index, and 5% JP Morgan Global Traded Index Excluding U.S. Each index is
reported net of sales charges, expenses or other fees that the Securities and
Exchange Commission requires to be reflected in a fund's performance. These
indices are unmanaged.
Federated Managed Moderate Growth Portfolio-
Institutional Shares
(formerly, Federated Managed Growth Fund)
Growth of $25,000 Invested in Federated Managed Moderate Growth Portfolio
"Graphic representation "E" omitted. See Appendix."
The graph below illustrates the hypothetical investment of $25,000* in Federated
Managed Moderate Growth Portfolio (Institutional Shares) (the "Fund") from May
25, 1994 (start of performance) to November 30, 1999 compared to the Standard
and Poor's 500 Index (S&P 500)+ and the Managed Moderate Growth Indices Blend
(MMGIB).++
Average Annual Total Return for the Period Ended
November 30, 1999
1 Year 11.00%
5 Years 13.79%
Start of Performance (5/25/94) 12.29%
Past performance is no guarantee of future results. Your investment return and
principal value will fluctuate so when shares are redeemed, they may be worth
more or less than original cost. Mutual funds are not obligations of or
guaranteed by any bank and are not federally insured.
* The Fund's performance assumes the reinvestment of all dividends and
distributions. The S&P 500 and the MMGIB have been adjusted to reflect
reinvestment of dividends on securities in the indices.
+ The S&P 500 is not adjusted to reflect sales charges, expenses, or other fees
that the Securities and Exchange Commission requires to be reflected in the
Fund's performance. This index is unmanaged.
++The MMGIB is a blend of index total returns that represent the Fund's
allocation in the market sectors. The blend is comprised of 40% Standard and
Poor's 500 Index, 10% Russell 2000 Index, 10% Morgan Stanley Capital
International Europe Australia Far East Index, 7.5% Lehman Brothers
Intermediate Treasury Index, 7.5% Lehman Brothers Long Treasury Index, 7.5%
Lehman Brothers Mortgage Index, 7.5% Lehman Brothers Intermediate Corporate
Index, 5% Lehman Brothers Single B Rated Index, and 5% JP Morgan Global Traded
Index Excluding U.S. Each index is reported net of sales charges, expenses or
other fees that the Securities and Exchange Commission requires to be
reflected in a fund's performance. These indices are unmanaged.
Federated Managed Moderate Growth Portfolio-Select Shares
(formerly, Federated Managed Growth Fund)
Growth of $10,000 Invested in Federated Managed Moderate Growth Portfolio
"Graphic representation "F" omitted. See Appendix."
The graph below illustrates the hypothetical investment of $10,000* in the
Federated Managed Moderate Growth Portfolio (Select Shares) (the "Fund") from
May 25, 1994 (start of performance) to November 30, 1999 compared to the
Standard and Poor's 500 Index (S&P 500)+ and the Managed Moderate Growth Indices
Blend (MMGIB).++
Average Annual Total Return for the Period Ended
November 30, 1999
1 Year 10.26%
5 Years 12.99%
Start of Performance (5/25/94) 11.52%
Past performance is no guarantee of future results. Your investment return and
principal value will fluctuate so when shares are redeemed, they may be worth
more or less than original cost. Mutual funds are not obligations of or
guaranteed by any bank and are not federally insured.
* The Fund's performance assumes the reinvestment of all dividends and
distributions. The S&P 500 and the MMGIB have been adjusted to reflect
reinvestment of dividends on securities in the indices.
+ The S&P 500 is not adjusted to reflect sales charges, expenses, or other fees
that the Securities and Exchange Commission requires to be reflected in the
Fund's performance. This index is unmanaged.
++The MMGIB is a blend of index total returns that represent the Fund's
allocation in the market sectors. The blend is comprised of 40% Standard and
Poor's 500 Index, 10% Russell 2000 Index, 10% Morgan Stanley Capital
International Europe Australia Far East Index, 7.5% Lehman Brothers
Intermediate Treasury Index, 7.5% Lehman Brothers Long Treasury Index, 7.5%
Lehman Brothers Mortgage Index, 7.5% Lehman Brothers Intermediate Corporate
Index, 5% Lehman Brothers Single B Rated Index, and 5% JP Morgan Global Traded
Index Excluding U.S. Each index is reported net of sales charges, expenses or
other fees that the Securities and Exchange Commission requires to be
reflected in a fund's performance. These indices are unmanaged.
Federated Managed Growth portfolio-Institutional Shares
(formerly, federated Managed Aggressive Growth Fund)
Growth of $25,000 Invested in Federated Managed Growth Portfolio
"Graphic representation "G" omitted. See Appendix."
The graph below illustrates the hypothetical investment of $25,000* in the
Federated Managed Growth Portfolio (Institutional Shares) (the "Fund") from May
25, 1994 (start of performance) to November 30, 1999 compared to the Standard
and Poor's 500 Index (S&P 500)+ and the Managed Growth Indices Blend (MGIB).++
Average Annual Total Return for the Period Ended
November 30, 1999
1 Year 14.83%
Years 15.28%
Start of Performance (5/25/94) 13.56%
Past performance is no guarantee of future results. Your investment return and
principal value will fluctuate so when shares are redeemed, they may be worth
more or less than original cost. Mutual funds are not obligations of or
guaranteed by any bank and are not federally insured.
* The Fund's performance assumes the reinvestment of all dividends and
distributions. The S&P 500 and the MGIB have been adjusted to reflect
reinvestment of dividends on securities in the indices.
+ The S&P 500 is not adjusted to reflect sales charges, expenses, or other fees
that the Securities and Exchange Commission requires to be reflected in the
Fund's performance. This index is unmanaged.
++The MGIB is a blend of index total returns that represent the Fund's
allocation in the market sectors. The blend is comprised of 50% Standard and
Poor's 500 Index, 15% Russell 2000 Index, 15% Morgan Stanley Capital
International Europe Australia Far East Index, 5% Lehman Brothers Intermediate
Treasury Index, 5% Lehman Brothers Long Treasury Index, 5% Lehman Brothers
Single B Rated Index, and 5% JP Morgan Global Traded Index Excluding U.S. Each
index is reported net of sales charges, expenses or other fees that the
Securities and Exchange Commission requires to be reflected in a fund's
performance. These indices are unmanaged.
Federated Managed Growth Portfolio-Select Shares
(formerly, Federated Managed Aggressive Growth Fund)
Growth of $10,000 In Federated managed Growth portfolio
"Graphic representation "H" omitted. See Appendix."
The graph below illustrates the hypothetical investment of $10,000* in the
Federated Managed Growth Portfolio (Select Shares) (the "Fund") from May 25,
1994 (start of performance) to November 30, 1999 compared to the Standard and
Poor's 500 Index (S&P 500)+ and the Managed Growth Indices Blend (MGIB).++
Average Annual Total Return for the Period Ended
November 30, 1999
1 Year 14.05%
5 Years 14.52%
Start of Performance (5/25/94) 12.82%
Past performance is no guarantee of future results. Your investment return and
principal value will fluctuate so when shares are redeemed, they may be worth
more or less than original cost. Mutual funds are not obligations of or
guaranteed by any bank and are not federally insured.
* The Fund's performance assumes the reinvestment of all dividends and
distributions. The S&P 500 and the MGIB have been adjusted to reflect
reinvestment of dividends on securities in the indices.
+ The S&P 500 is not adjusted to reflect sales charges, expenses, or other fees
that the Securities and Exchange Commission requires to be reflected in the
Fund's performance. This index is unmanaged.
++The MGIB is a blend of index total returns that represent the Fund's
allocation in the market sectors. The blend is comprised of 50% Standard and
Poor's 500 Index, 15% Russell 2000 Index, 15% Morgan Stanley Capital
International Europe Australia Far East Index, 5% Lehman Brothers Intermediate
Treasury Index, 5% Lehman Brothers Long Treasury Index, 5% Lehman Brothers
Single B Rated Index, and 5% JP Morgan Global Traded Index Excluding U.S. Each
index is reported net of sales charges, expenses or other fees that the
Securities and Exchange Commission requires to be reflected in a fund's
performance. These indices are unmanaged.
Portfolio of Investments
Federated Managed Income Portfolio
(FORMERLY, FEDERATED MANAGED INCOME FUND)
NOVEMBER 30, 1999
<TABLE>
<CAPTION>
Shares Value in
U.S. Dollars
STOCKS-18.1%
LARGE-COMPANY GROWTH STOCKS-5.7%
Basic Materials-0.0%
<C> <S> <C>
600 Monsanto Co. $ 25,313
Capital Goods-0.5%
800 Allied-Signal, Inc. 47,850
500 Avery Dennison Corp. 29,687
3,500 General Electric Co. 455,000
1,000 Miller Herman, Inc. 22,875
500 /1/SCI Systems, Inc. 33,938
1,000 United Technologies Corp. 56,500
710 Waste Management, Inc. 11,538
TOTAL 657,388
Communication Services-0.4%
600 BroadWing Inc. 17,475
2,370 /1/MCI Worldcom, Inc. 195,969
2,884 SBC Communications, Inc. 149,788
1,750 Vodafone AirTouch PLC, ADR 82,578
TOTAL 445,810
Consumer Cyclicals-0.5%
400 /1/Abercrombie & Fitch Co., Class A 12,950
600 Block (H&R), Inc. 25,800
600 /1/Convergys Corp. 16,388
300 Costco Wholesale Corp. 27,506
500 Dayton-Hudson Corp. 35,281
900 Gap (The), Inc. 36,450
700 Harley Davidson, Inc. 42,700
1,400 Home Depot, Inc. 110,688
500 Lowe's Cos., Inc. 24,906
400 Maytag Corp. 19,075
750 /1/Staples, Inc. 17,625
1,600 TJX Cos., Inc. 41,900
2,600 Wal-Mart Stores, Inc. 149,825
TOTAL 561,094
Consumer Staples-0.9%
800 /1/AT&T Corp. - Liberty Media Group, Inc., Class A 33,450
500 Avon Products, Inc. 18,219
1,000 Campbell Soup Co. 44,625
300 Cardinal Health, Inc. 15,694
2,200 Coca-Cola Co. 148,086
400 Colgate-Palmolive Co. 21,950
600 Comcast Corp., Class A 27,111
1,100 Dial Corp. 30,869
800 Gillette Co. 32,150
500 Heinz (H.J.) Co. 20,937
1,900 McDonald's Corp. 85,500
888 McKesson HBOC, Inc. 20,757
1,600 PepsiCo, Inc. 55,300
3,000 Philip Morris Cos., Inc. 78,938
1,400 Procter & Gamble Co. 151,200
600 Quaker Oats Co. 39,150
1,400 /1/Safeway, Inc. 51,625
1,200 Sara Lee Corp. 29,100
600 Sysco Corp. 22,838
1,400 Time Warner, Inc. 86,363
760 /1/Tricon Global Restaurants, Inc. 31,540
2,100 UST, Inc. 55,913
800 /1/Viacom, Inc., Class A 39,850
3,200 Walt Disney Co. 89,200
TOTAL 1,230,365
Energy-0.0%
600 Halliburton Co. 23,212
Financials-0.4%
300 American Express Co. 45,394
1,935 American International Group, Inc. 199,789
714 Associates First Capital Corp., Class A 23,740
1,500 Fannie Mae 99,938
600 Household International, Inc. 23,738
1,800 MBNA Corp. 45,450
600 Providian Financial Corp. 47,475
500 Schwab (Charles) Corp. 18,969
TOTAL 504,493
Health Care-0.9%
1,600 Abbott Laboratories 60,800
1,000 American Home Products Corp. 52,000
1,600 /1/Amgen, Inc. 72,900
400 Baxter International, Inc. 27,025
2,400 Bristol-Myers Squibb Co. 175,350
1,200 Guidant Corp. 60,000
700 /1/HEALTHSOUTH, Corp. 3,981
1,200 Johnson & Johnson 124,500
700 Lilly (Eli) & Co. 50,225
1,600 Medtronic, Inc. 62,200
2,800 Merck & Co., Inc. 219,800
2,700 Pfizer, Inc. 97,706
1,600 Schering Plough Corp. 81,800
500 United Healthcare Corp. 25,969
800 /1/Universal Health Services, Inc., Class B 26,350
700 Warner-Lambert Co. 62,781
TOTAL 1,203,387
Technology-2.1%
2,400 /1/America Online, Inc. 174,450
700 /1/Applied Materials, Inc. 68,206
800 /1/BMC Software, Inc. 58,250
3,900 /1/Cisco Systems, Inc. 347,831
600 /1/Compuware Corp. 20,287
2,000 /1/Dell Computer Corp. 86,000
300 /1/EMC Corp. Mass 25,069
1,600 First Data Corp. 69,200
600 /1/Gateway, Inc. 45,825
1,000 Hewlett-Packard Co. 94,875
3,200 Intel Corp. 245,400
2,400 International Business Machines Corp. 247,350
800 /1/Lexmark International Group, Class A 66,400
3,860 Lucent Technologies, Inc. 282,021
4,400 /1/Microsoft Corp. 400,606
1,350 /1/Oracle Corp. 91,547
400 /1/PanAmSat Corp. 17,025
800 /1/Seagate Technology, Inc. 29,600
1,200 /1/Sun Microsystems, Inc. 158,700
1,200 /1/Tellabs, Inc. 77,850
1,000 Texas Instruments, Inc. 96,063
800 Xerox Corp. 21,650
200 /1/Yahoo, Inc. 42,550
TOTAL 2,766,755
TOTAL LARGE-COMPANY GROWTH STOCKS 7,417,817
LARGE-COMPANY VALUE STOCKS-4.6%
Basic Materials-0.3%
800 Air Products & Chemicals, Inc. 25,900
1,000 Alcoa, Inc. 65,500
4,079 Archer-Daniels-Midland Co. 50,733
500 Bemis Co., Inc. 15,750
600 Dow Chemical Co. 70,275
825 Du Pont (E.I.) de Nemours & Co. 49,036
600 Hercules, Inc. 14,250
600 International Paper Co. 31,313
600 Martin Marietta Materials 22,763
300 PPG Industries, Inc. 17,569
TOTAL 363,089
Capital Goods-0.3%
1,100 Boeing Co. 44,894
900 Caterpillar, Inc. 41,738
400 Cooper Industries, Inc. 17,175
600 Crown Cork & Seal Co., Inc. 12,225
800 Dover Corp. 34,700
400 Emerson Electric Co. 22,800
500 Hillenbrand Industries, Inc. 17,094
800 Ingersoll-Rand Co. 38,750
500 Johnson Controls, Inc. 27,250
500 Minnesota Mining & Manufacturing Co. 47,781
500 Northrop Grumman, Corp. 28,094
1,100 Parker-Hannifin Corp. 51,769
TOTAL 384,270
Communication Services-0.6%
3,690 AT&T Corp. 206,179
3,400 Bell Atlantic Corp. 215,263
1,900 BellSouth Corp. 87,756
1,900 GTE Corp. 138,700
800 Sprint Corp. (FON Group) 55,500
1,000 U.S. West, Inc. 62,063
TOTAL 765,461
Consumer Cyclicals-0.2%
1,600 Ford Motor Co. 80,800
500 Gannett Co., Inc. 35,781
900 General Motors Corp. 64,800
3,100 /1/K Mart Corp. 30,806
789 Limited, Inc. 33,483
1,200 Masco Corp. 30,300
450 May Department Stores Co. 15,131
500 Sears, Roebuck & Co. 17,094
1,400 Service Corp. International 10,588
TOTAL 318,783
Consumer Staples-0.1%
300 /1/AMFM, Inc. 21,206
1,367 CBS Corp. 71,084
600 Dole Food, Inc. 9,600
1,100 Kimberly-Clark Corp. 70,263
100 /1/MediaOne Group, Inc. 7,925
1,300 Nabisco Group Holdings Corp. 15,031
TOTAL 195,109
Energy-0.5%
700 Atlantic Richfield Co. 67,463
1,000 /1/BJ Services Co. 34,875
900 Chevron Corp. 79,706
1,106 Conoco, Inc., Class B 28,963
2,800 Exxon Corp. 222,075
900 Mobil Corp. 93,881
1,700 Occidental Petroleum Corp. 37,294
600 Phillips Petroleum Co. 28,688
1,300 Sunoco, Inc. 33,231
400 Texaco, Inc. 24,375
1,500 USX-Marathon Group 39,656
TOTAL 690,207
Financials-1.1%
2,296 Allstate Corp. 60,127
2,065 Bank of America Corp. 120,803
1,000 Bank of New York Co., Inc. 39,875
441 Bear Stearns Cos., Inc. 17,998
900 CIGNA Corp. 74,025
900 Chase Manhattan Corp. 69,525
4,975 Citigroup, Inc. 268,028
2,000 First Union Corp. 77,375
1,710 Fleet Boston Financial Corp. 64,659
900 /1/Golden State Bancorp, Inc. 17,494
900 KeyCorp 24,300
500 Loews Corp. 32,000
800 MBIA, Inc. 40,000
300 MGIC Investment Corp. 16,950
950 Marsh & McLennan Cos., Inc. 74,694
1,400 Mellon Financial Corp. 51,013
200 Merrill Lynch & Co., Inc. 16,125
200 Morgan, J.P. & Co., Inc. 26,300
700 Morgan Stanley, Dean Witter, Discover & Co. 84,438
1,200 Old Republic International Corp. 15,000
500 PNC Bank Corp. 27,875
400 SunTrust Banks, Inc. 27,950
800 Torchmark Corp. 25,400
1,512 Washington Mutual, Inc. 43,848
1,400 Wells Fargo Co. 65,100
TOTAL 1,380,902
Health Care-0.1%
1,800 Pharmacia & Upjohn, Inc. 98,438
Technology-0.2%
900 Eastman Kodak Co. 55,687
900 Electronic Data Systems Corp. 57,881
500 Motorola, Inc. 57,125
1,000 Raytheon Co., Class A 29,125
TOTAL 199,818
Transportation-0.1%
600 /1/AMR Corp. 36,525
1,800 Burlington Northern Santa Fe 52,200
1,600 Ryder Systems, Inc. 36,100
TOTAL 124,825
Utilities-1.1%
1,100 CMS Energy Corp. 36,575
6,500 Coastal Corp. 229,125
750 Columbia Energy Group 47,063
900 Constellation Energy Group 26,494
6,200 Dominion Resources, Inc. 281,325
9,700 Reliant Energy, Inc. 240,681
13,400 Southern Co. 313,225
9,200 Texas Utilities Co. 329,475
TOTAL 1,503,963
TOTAL LARGE-COMPANY VALUE STOCKS 6,024,865
UTILITY STOCKS-3.2%
Electric Utilities: Central-0.3%
4,000 Ameren Corp. 138,500
6,000 Central & SouthWest Corp. 120,000
4,400 Unicom Corp. 140,525
TOTAL 399,025
Electric Utilities: East-0.7%
4,300 /1/AES Corp. 249,131
4,400 Consolidated Edison Co. 151,800
3,200 GPU, Inc. 102,400
6,800 Peco Energy Co. 223,975
3,700 Public Service Enterprises Group, Inc. 129,500
TOTAL 856,806
Electric Utilities: South-0.5%
2,100 Carolina Power & Light Co. 63,263
7,600 Duke Energy Corp. 385,225
4,500 Entergy Corp. 124,031
3,600 FPL Group, Inc. 157,500
TOTAL 730,019
Electric Utilities: West-0.8%
3,800 American Electric Power Co., Inc. 119,225
3,500 DTE Energy Co. 115,719
9,500 Edison International 251,750
6,800 FirstEnergy Corp. 158,525
11,100 P G & E Corp. 248,363
8,200 Pacificorp 167,764
TOTAL 1,061,346
Natural Gas Distribution-0.3%
3,200 Consolidated Natural Gas Co. 205,200
6,800 Sempra Energy 125,800
TOTAL 331,000
Shares or Value in
Principal U.S. Dollars
Amount
14,000 Enron Corp. $ 532,875
8,400 Williams Companies, Inc. 283,500
TOTAL 816,375
TOTAL UTILITY STOCKS 4,194,571
FUTURES CONTRACTS COLLATERAL-24.6%
$ 6,000,000 United States Treasury Bill, 12/16/1999 5,993,940
TOTAL STOCKS (IDENTIFIED COST $14,224,799) 23,631,193
BONDS-80.8%
TREASURY AND GOVERNMENT SECURITIES-30.6%
Repurchase Agreement-5.3%/3/
6,915,000 Societe Generale, New York, 5.680%, dated 11/30/1999, due 6,915,000
12/1/1999 (at amortized cost)
U.S. Treasury Securities-25.3%
493,000 United States Treasury Bond, 6.125%, 11/15/2027 469,735
10,200,000 United States Treasury Bond, 7.250%, 5/15/2004 10,619,934
3,900,000 United States Treasury Note, 5.500%, 3/31/2003 3,831,009
9,097,000 United States Treasury Note, 6.000%, 8/15/2009 8,984,652
2,000,000 United States Treasury Note, 6.500%, 10/15/2006 2,023,700
6,879,000 United States Treasury Note, 6.625%, 5/15/2007 7,010,595
TOTAL 32,939,625
TOTAL TREASURY AND GOVERNMENT SECURITIES 39,854,625
HIGH YIELD BONDS-5.2%/4/
773,987 The High Yield Bond Portfolio 6,749,166
MORTGAGE-BACKED SECURITIES-23.2%/4/
3,149,691 Federated Mortgage Core Portfolio 30,363,017
INVESTMENT GRADE BONDS-18.3%
Aerospace & Defense-0.2%
250,000 McDonnell Douglas Finance, Note, 9.4%, 10/15/2001 250,000
Automobiles-0.3%
400,000 Dana Corp., Note, 7.%, 3/15/2028 356,284
Banking-1.8%
100,000 City National Bank, Sub. Note, 6.375%, 1/15/2008 92,612
470,000 /5/Den Danske Bank, Note, 7.40% 6/15/2010 462,001
200,000 National Bank of Canada, Sub. Note, 8.125%, 8/15/2004 205,878
285,000 PNC Funding Corp, Sub. Note, 6.875%, 7/15/2007 275,546
Principal Value in
Amount U.S. Dollars
$ 500,000 Republic New York Corp., Sub. Note, 7.75%, 5/15/2009 502,770
350,000 Santander Finance Issuances, Bank Guarantee, 7.875%, 4/15/2005 356,261
470,000 /5/Swedbank, Sub., 7.50% 11/1/2006 447,258
TOTAL 2,342,326
Beverage & Tobacco-0.2%
100,000 Philip Morris Cos., Inc., Deb., 6.00%, 7/15/2001 97,411
200,000 Phillip Morris Cos., Inc., Deb., 9.25%, 2/15/2000 200,978
TOTAL 298,389
Cable Television-0.7%
800,000 Continental Cablevision, Sr. Deb., 9.5%, 8/1/2013 894,336
Chemicals & Plastics-0.3%
350,000 /5/Bayer Corp., Deb., 6.5%, 10/1/2002 347,105
Consumer Products-0.3%
400,000 /5/International Speedway, Series C, 7.875%, 10/15/2004 398,348
Ecological Services & Equipment-0.2%
250,000 USA Waste Services, Inc., Note, 6.125%, 7/15/2001 236,520
Education-0.2%
300,000 Boston University, 7.625%, 7/15/2097 277,917
Electronics-0.5%
700,000 Anixter Intl., Inc., Company Guarantee, 8%, 9/15/2003 687,974
Entertainment-0.1%
200,000 Viacom, Inc., Sr. Note, 7.75%, 6/1/2005 204,064
Finance - Automotive-0.7%
700,000 Ford Motor Credit Corp., Unsub., 6.875%, 6/05/2001 696,911
165,000 GMAC, Medium Term Note, 7.50%, 5/25/2000 165,934
TOTAL 862,845
Finance - Retail-0.4%
250,000 Household Finance, Deb., 6.45%, 2/1/2009 233,990
300,000 Sears Roebuck Acceptance, Medium Term Note, 6.56%, 9/05/2000 299,703
TOTAL 533,693
Financial Intermediaries-2.2%
1,000,000 Bear Stearns Cos., Inc., Sr. Note, 6.75%, 5/1/2001 996,540
250,000 Capital One Financial, Note, 7.125%, 8/01/2008 230,185
400,000 DLJ, Note, 6.875%, 11/1/2005 389,628
725,000 Lehman Brothers Holdings Inc., Note, 6.9%, 1/29/2001 724,340
175,000 Lehman Brothers Holdings, Bond, 6.20%, 1/15/2002 171,675
325,000 Lehman Brothers, Inc., Sr. Sub. Note, 7.375%, 1/15/2007 320,115
100,000 Salomon, Inc., Note, 7.2%, 2/1/2004 100,080
TOTAL 2,932,563
Food & Drug Retailers-0.6%
850,000 Meyer (Fred), Inc., Company Guarantee, 7.45%, 3/01/2008 844,670
Forest Products-1.1%
950,000 Fort James Corp., Sr. Note, 7.65%, 12/26/2000 958,901
400,000 Quno Corp., Sr. Note, 9.125%, 5/15/2005 421,312
TOTAL 1,380,213
Health Care-0.8%
1,000,000 COL HCA Healthcare Corp, Sr. Note, 6.41%, 6/15/2000 994,260
Insurance-1.6%
250,000 AFC Capital Trust I, Bond, 8.207%, 2/3/2027 248,025
350,000 Conseco, Inc., Sr. Note, 10.5%, 12/15/2004 377,324
250,000 Conseco, Inc., Sr. Sub. Note, 10.25%, 6/01/2002 258,996
250,000 Delphi Funding, 9.31%, 3/25/2027 238,422
170,000 Geico Corp, Deb., 9.15%, 9/15/2021 183,505
400,000 Provident Cos., Inc., Bond, 7.405%, 3/15/2038 341,672
250,000 Sunamerica Inc, Medium Term Note, 7.34%, 8/30/2005 250,762
250,000 USF&G Corp., Company Guarantee, 8.47%, 1/10/2027 244,580
TOTAL 2,143,286
Leisure & Entertainment-0.1%
125,000 Paramount Communications Inc, Sr. Deb., 8.25%, 8/1/2022 124,312
Metals & Mining-0.6%
725,000 Barrick Gold Corp., Deb., 7.5%, 5/1/2007 726,900
Oil & Gas-0.4%
515,000 Conoco, Inc., Sr. Note, 5.9%, 4/15/2004 495,317
Pharmaceutical-0.5%
700,000 American Home Products Corp., Note, 7.7%, 2/15/2000 702,457
Printing & Publishing-0.2%
200,000 News America Holdings, Sr. Note, 8.50%, 2/15/2005 208,030
Principal Value im
Amount U.S. Dollars
or Foreign
Currency
Par Amount
$ 1,000,000 SUSA Partnership, L.P., Deb., 7.50%, 12/1/2027 $
837,960
Retailers-1.0%
350,000 Harcourt General, Sr. Deb., 7.20%, 8/1/2027
307,996
190,000 Safeway, Inc., Note, 7.25%, 9/15/2004
189,810
200,000 Sears, Roebuck & Co., Medium Term Note, 7.32%, 4/24/2000
200,702
660,000 Shopko Stores, 8.5%, 3/15/2002
676,454
TOTAL
1,374,962
Sovereign Government-0.5%
250,000 Colombia, Government of, Note, 7.25%, 2/15/2003
226,875
400,000 South Africa, Government of, Global Bond Deb., 9.625%, 12/15/1999
400,736
TOTAL
627,611
Technology Services-0.4%
500,000 Dell Computer Corp., Deb., 7.1%, 4/15/2028
465,595
Telecommunications & Cellular-1.1%
800,000 BellSouth Telecommunication, Note, 6.%, 6/15/2002
786,512
720,000 Telecom de Puerto Rico, Note, 6.65%, 5/15/2006
686,153
TOTAL
1,472,665
Utilities-0.7%
250,000 Enersis SA, Note, 7.4%, 12/1/2016
219,022
750,000 National Rural Utilities, Medium Term Note, 5.75%, 12/01/2008
681,045
TOTAL
900,067
TOTAL INVESTMENT GRADE BONDS
23,920,669
FOREIGN BONDS-3.5%
Australian Dollar-0.1%
140,000 Queensland, State of, 8%, 9/14/2007
95,257
74,000 Queensland, State of, Deb., 10.5%, 5/15/2003
52,706
25,000 West Australia, State of, Local Government. Guarantee, 8%, 7/15/2003
16,604
TOTAL
164,567
British Pound-0.4%
80,000 British Gas PLC, 8.875%, 7/8/2008
144,210
185,000 United Kingdom, Government of, Bond, 8%, 12/07/2015
398,470
TOTAL
542,680
Foreign Value
Currency in
Par Amount U.S.
$ 167,000 Canada, Government of, Deb., 6.50%, 6/1/2004 $
114,990
200,000 Ontario Hydro, 9.00%, 6/24/2002
145,247
TOTAL
260,237
Danish Krone-0.2%
600,000 Denmark, Government of, 8%, 5/15/2003
88,899
898,000 Denmark, Government of, Bullet, 8%, 3/15/2006
138,404
TOTAL
227,303
Deutsche Mark-0.1%
245,000 Austria, Government of, Unsub., 6.5%, 1/10/2024
132,865
60,000 Baden Wurt L-Finance NV, Bank Guarantee, 6%, 1/25/2006
31,997
TOTAL
164,862
Euro-1.6%
49,578 Belgium, Government of, 7.75%, 10/15/2004
55,988
12,741 Belgium, Government of, Bond, 6.5%, 3/31/2005
13,712
99,701 Depfa-Bank, 5.5%, 1/15/2013
97,962
86,877 France, Government of, 8.5%, 10/25/2019
116,854
62,888 Germany, Government of, Deb., 6.25%, 1/04/2024
66,322
57,138 Ireland, Government of, Deb., 9%, 9/01/2006
70,257
247,898 Italy, Government of, 9.5%, 1/01/2005
299,783
41,316 Italy, Government of, Bond, 10.5%, 11/01/2000
44,093
30,987 Italy, Government of, Deb., 12%, 1/01/2002
35,871
51,129 KFW International Finance, Bank Guarantee, 6.75%, 6/20/2005
55,978
35,000 Netherlands, Government, 5.5%, 1/15/2028
33,366
158,823 Netherlands, Government of, 5.75%, 1/15/2004
166,296
27,226 Netherlands, Government of, 6%, 1/15/2006
28,877
45,000 Portugal, Government of, Ot's, 6.625%, 2/23/2007
48,977
240,404 Spain, Government of, 6.15%, 1/31/2013
254,826
29,750 Spain, Government of, Deb., 10.1%, 2/28/2001
32,186
357,904 Treuhandanstalt, 7.75%, 10/01/2002
391,732
208,607 Treuhandanstalt, Foreign Government Guarantee, 6.875%, 6/11/2003
225,349
TOTAL
2,038,429
Greek Drachma-0.0%
11,400,000 Greece, Government of, Floating Rate Note,10.24%, 10/23/2003
35,809
Hungarian Forint-0.4%
$ 6,700,000 Hungary, Government of, Bond, 14%, 12/12/2002 $
27,966
100,000,000 Hungary, Government of, Bond, Series 03/I, 13%, 7/24/2003
414,550
TOTAL
442,516
New Zealand Dollar-0.0%
41,000 New Zealand, Government of, 8%, 2/15/2001
21,403
Norwegian Krone-0.1%
195,000 Norway, Government of, 5.5%, 5/15/2009
23,108
420,000 Norway, Government of, Bond, 7%, 5/31/2001
52,945
315,000 Norway, Government of, Foreign Government Guarantee, 5.75%, 11/30/2004
38,853
TOTAL
114,906
Polish Zloty-0.2%
80,000 Poland, Government of, Bond, 12%, 10/12/2003
18,193
195,000 Poland, Government of, Bond, Series 0603, 12%, 6/12/2003
43,980
1,075,000 Poland, Government of, Series 0604, 10%, 6/12/2004
232,856
TOTAL
295,029
Swedish Krona-0.2%
900,000 Sweden, Government of, 6%, 2/09/2005
108,713
200,000 Sweden, Government of, Deb., 13%, 6/15/2001
26,371
800,000 Sweden, Government of, Deb., 9%, 4/20/2009
116,472
TOTAL
251,556
TOTAL FOREIGN BONDS
4,559,297
TOTAL BONDS (IDENTIFIED COST $115,694,884)
105,446,774
TOTAL INVESTMENTS (IDENTIFIED COST $129,919,683)6 $
129,077,967
</TABLE>
/1/ Non-income producing security.
/2/ The Fund purchases index futures contracts to efficiently manage cash flows
resulting from shareholder purchases and redemptions, dividends and capital
gain payment to shareholders and corporate actions while maintaining
exposure to the index and to minimize trading costs. The underlying face
amount, at value, of open index futures contracts is $5,940,875 as of
November 30, 1999.
/3/ 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.
/4/ Pursuant to an Exemptive order, the Fund may invest in Federated Core Trust
(the "Trust") which is also managed by Federated Investment Management
Company, the Fund's adviser. The Trust is an open-end management
investment company under the Investment Company Act of 1940 available only
registered investment companies and other institutional investors. High
Yield Bond Portfolio and Federated Mortgage Core Portfolio (the
"Portfolios") are two series of the Trust. Federated receives no fees on
behalf of the Portfolios. Income distributions from the Portfolios are
declared daily and paid monthly. Income distributions earned by the Fund
are recorded as dividend income in the accompanying financial statements.
Additional information regarding High Yield Bond Portfolio and Federated
Mortgage Core Portfolio is available upon request.
/5/ Denotes a restricted security which is subject to restrictions on resale
under Federal Securities laws. These securities have been deemed liquid
based upon criteria approved by the Fund's Board of Trustees. At November
30, 1999, these securities amounted to $1,654,712 which represents 1.3% of
net assets.
/6/ The cost of investments for federal tax purposes amounts to $129,958,519.
The net unrealized depreciation of investments on a federal tax basis
amounts to $880,552 which is comprised of $4,554,154 appreciation and
$5,434,706 depreciation at November 30, 1999.
Note: The categories of investments are shown as a percentage of net assets
($130,442,002) at November 30, 1999.
The following acronyms are used throughout this portfolio:
ADR -American Depositary Receipt
COL -Collateralized
MBIA-Municipal Bond Investors Assurance
See Notes which are an integral part of the Financial Statements
Portfolio of Investments
Federated Managed Conservative Growth Portfolio
(FORMERLY, FEDERATED MANAGED GROWTH AND INCOME FUND)
NOVEMBER 30, 1999
<TABLE>
<CAPTION>
Shares Value in
U.S. Dollars
STOCKS-41.8%
LARGE-CAP VALUE STOCKS-15.8%
Basic Materials-0.9%
<S> <C> <C>
4,200 Air Products & Chemicals, Inc. $ 135,975
5,600 Alcoa, Inc. 366,800
21,498 Archer-Daniels-Midland Co. 267,381
2,700 Bemis Co., Inc. 85,050
3,300 Dow Chemical Co. 386,512
4,201 Du Pont (E.I.) de Nemours & Co. 249,697
3,200 Hercules, Inc. 76,000
3,400 International Paper Co. 177,437
3,800 Martin Marietta Materials 144,162
1,900 PPG Industries, Inc. 111,269
TOTAL 2,000,283
Capital Goods-0.9%
5,200 Boeing Co. 212,225
4,200 Caterpillar, Inc. 194,775
2,400 Cooper Industries, Inc. 103,050
3,400 Crown Cork & Seal Co., Inc. 69,275
4,400 Dover Corp. 190,850
2,200 Emerson Electric Co. 125,400
2,900 Hillenbrand Industries, Inc. 99,144
4,800 Ingersoll-Rand Co. 232,500
2,800 Johnson Controls, Inc. 152,600
2,400 Minnesota Mining & Manufacturing Co. 229,350
2,500 Northrop Grumman, Corp. 140,469
6,000 Parker-Hannifin Corp. 282,375
TOTAL 2,032,013
Communication Services-2.4%
20,665 AT&T Corp. 1,154,657
11,200 Bell Atlantic Corp. 709,100
9,800 BellSouth Corp. 452,637
9,200 GTE Corp. 671,600
12,078 /1/MCI Worldcom, Inc. 998,700
15,380 SBC Communications, Inc. 798,799
4,400 Sprint Corp. (FON Group) 305,250
2,600 U.S. West, Inc. 161,362
TOTAL 5,252,105
Consumer Cyclicals-0.8%
8,500 Ford Motor Co. 429,250
2,900 Gannett Co., Inc. 207,531
4,600 General Motors Corp. 331,200
16,300 /1/K Mart Corp. 161,981
4,420 Limited, Inc. 187,574
6,400 Masco Corp. 161,600
2,550 May Department Stores Co. 85,744
3,100 Sears, Roebuck & Co. 105,981
7,700 Service Corp. International 58,231
TOTAL 1,729,092
Consumer Staples-1.1%
1,700 /1/AMFM, Inc. 120,169
7,721 CBS Corp. 401,492
3,500 Dole Food, Inc. 56,000
6,200 Kimberly-Clark Corp. 396,025
9,200 McDonald's Corp. 414,000
7,200 Nabisco Group Holdings Corp. 83,250
11,700 Philip Morris Cos., Inc. 307,856
7,800 UST, Inc. 207,675
16,900 Walt Disney Co. 471,087
TOTAL 2,457,554
Energy-1.5%
3,600 Atlantic Richfield Co. 346,950
4,600 /1/BJ Services Co. 160,425
4,900 Chevron Corp. 433,956
5,897 Conoco, Inc., Class B 154,428
10,700 Exxon Corp. 848,644
4,500 Mobil Corp. 469,406
9,200 Occidental Petroleum Corp. 201,825
3,200 Phillips Petroleum Co. 153,000
6,100 Sunoco, Inc. 155,931
1,900 Texaco, Inc. 115,781
8,100 USX-Marathon Group 214,144
TOTAL 3,254,490
Financials-4.4%
12,704 Allstate Corp. 332,686
1,700 American Express Co. 257,231
10,453 American International Group, Inc. 1,079,272
12,134 Bank of America Corp. 709,839
4,600 Bank of New York Co., Inc. 183,425
2,756 Bear Stearns Cos., Inc. 112,489
3,000 CIGNA Corp. 246,750
5,100 Chase Manhattan Corp. 393,975
27,425 Citigroup, Inc. 1,477,522
7,000 Fannie Mae 466,375
11,200 First Union Corp. 433,300
9,008 Fleet Boston Financial Corp. 340,615
5,700 /1/Golden State Bancorp, Inc. 110,794
4,500 KeyCorp 121,500
2,900 Loews Corp. 185,600
4,100 MBIA, Inc. 205,000
1,900 MGIC Investment Corp. 107,350
4,850 Marsh & McLennan Cos., Inc. 381,331
8,200 Mellon Financial Corp. 298,787
1,700 Merrill Lynch & Co., Inc. 137,062
1,100 Morgan, J.P. & Co., Inc. 144,650
6,000 Morgan Stanley, Dean Witter, Discover & Co. 723,750
7,650 Old Republic International Corp. 95,625
2,800 PNC Bank Corp. 156,100
2,200 SunTrust Banks, Inc. 153,725
4,700 Torchmark Corp. 149,225
9,576 Washington Mutual, Inc. 277,704
7,200 Wells Fargo Co. 334,800
TOTAL 9,616,482
Health Care-0.3%
5,000 American Home Products Corp. 260,000
5,100 Pharmacia & Upjohn, Inc. 278,906
TOTAL 538,906
Technology-1.5%
4,700 Eastman Kodak Co. 290,812
4,200 Electronic Data Systems Corp. 270,112
9,500 First Data Corp. 410,875
5,300 Hewlett-Packard Co. 502,838
12,600 International Business Machines Corp. 1,298,587
2,500 Motorola, Inc. 285,625
4,300 Raytheon Co., Class A 125,237
TOTAL 3,184,086
Transportation-0.3%
3,000 /1/AMR Corp. 182,625
7,500 Burlington Northern Santa Fe 217,500
8,300 Ryder Systems, Inc. 187,269
TOTAL 587,394
Utilities-1.7%
5,900 CMS Energy Corp. 196,175
15,400 Coastal Corp. 542,850
4,150 Columbia Energy Group 260,412
4,500 Constellation Energy Group 132,469
12,600 Dominion Resources, Inc. 571,725
21,700 Reliant Energy, Inc. 538,431
33,700 Southern Co. 787,737
17,100 Texas Utilities Co. 612,394
TOTAL 3,642,193
TOTAL LARGE-CAP VALUE STOCKS 34,294,598
LARGE-COMPANY GROWTH STOCKS-15.0%
Basic Materials-0.1%
2,900 Monsanto Co. 122,344
Capital Goods-1.6%
4,400 Allied-Signal, Inc. 263,175
3,000 Avery Dennison Corp. 178,125
17,900 General Electric Co. 2,327,000
5,200 Miller Herman, Inc. 118,950
3,000 /1/SCI Systems, Inc. 203,625
5,800 United Technologies Corp. 327,700
3,410 Waste Management, Inc. 55,412
TOTAL 3,473,987
Communication Services-0.2%
3,200 BroadWing Inc. 93,200
8,250 Vodafone AirTouch PLC, ADR 389,297
TOTAL 482,497
Consumer Cyclicals-1.5%
2,100 /1/Abercrombie & Fitch Co., Class A 67,987
3,400 Block (H&R), Inc. 146,200
3,200 /1/Convergys Corp. 87,400
1,600 Costco Wholesale Corp. 146,700
2,700 Dayton-Hudson Corp. 190,519
4,275 Gap (The), Inc. 173,137
4,000 Harley Davidson, Inc. 244,000
8,100 Home Depot, Inc. 640,406
2,400 Lowe's Cos., Inc. 119,550
1,900 Maytag Corp. 90,606
4,050 /1/Staples, Inc. 95,175
8,900 TJX Cos., Inc. 233,069
15,600 Wal-Mart Stores, Inc. 898,950
TOTAL 3,133,699
Consumer Staples-2.2%
4,200 /1/AT&T Corp. - Liberty Media Group, Inc., Class A 175,612
2,600 Avon Products, Inc. 94,737
5,600 Campbell Soup Co. 249,900
1,200 Cardinal Health, Inc. 62,775
11,800 Coca-Cola Co. 794,287
1,800 Colgate-Palmolive Co. 98,775
3,600 Comcast Corp., Class A 162,675
6,100 Dial Corp. 171,181
4,200 Gillette Co. 168,788
2,700 Heinz (H.J.) Co. 113,063
5,032 McKesson HBOC, Inc. 117,623
7,700 PepsiCo, Inc. 266,131
7,600 Procter & Gamble Co. 820,800
3,500 Quaker Oats Co. 228,375
7,600 Safeway, Inc. 280,250
6,400 Sara Lee Corp. 155,200
3,300 Sysco Corp. 125,606
7,000 Time Warner, Inc. 431,813
4,600 /1/Tricon Global Restaurants, Inc. 190,900
2,800 Viacom, Inc., Class A 139,475
TOTAL 4,847,966
Energy-0.1%
3,700 Halliburton Co. 143,144
Financials-0.4%
4,182 Associates First Capital Corp., Class A $ 139,052
3,600 Household International, Inc. 142,425
11,375 MBNA Corp. 287,219
3,250 Providian Financial Corp. 257,156
2,100 Schwab (Charles) Corp. 79,669
TOTAL 905,521
Health Care-2.7%
7,100 Abbott Laboratories 269,800
8,800 /1/Amgen, Inc. 400,950
1,500 Baxter International, Inc. 101,344
12,000 Bristol-Myers Squibb Co. 876,750
6,800 Guidant Corp. 340,000
3,900 /1/HEALTHSOUTH Corp. 22,181
6,500 Johnson & Johnson 674,375
4,000 Lilly (Eli) & Co. 287,000
7,200 Medtronic, Inc. 279,900
14,400 Merck & Co., Inc. 1,130,400
13,500 Pfizer, Inc. 488,531
8,800 Schering Plough Corp. 449,900
2,700 United Healthcare Corp. 140,231
4,400 /1/Universal Health Services, Inc., Class B 144,925
3,700 Warner-Lambert Co. 331,844
TOTAL 5,938,131
Technology-6.2%
13,600 /1/America Online, Inc. 988,550
4,300 /1/Applied Materials, Inc. 418,981
4,400 /1/BMC Software, Inc. 320,375
19,800 /1/Cisco Systems, Inc. 1,765,913
3,200 /1/Compuware Corp. 108,200
10,000 /1/Dell Computer Corp. 430,000
10,200 /1/EMC Corp. Mass 852,338
3,200 /1/Gateway, Inc. $ 244,400
17,400 Intel Corp. 1,334,363
5,400 /1/Lexmark Intl. Group, Class A 448,200
18,970 Lucent Technologies, Inc. 1,385,996
23,600 /1/Microsoft Corp. 2,148,706
7,350 /1/Oracle Corp. 498,422
2,300 /1/PanAmSat Corp. 97,894
5,100 /1/Seagate Technology, Inc. 188,700
7,600 /1/Sun Microsystems, Inc. 1,005,100
7,400 /1/Tellabs, Inc. 480,075
4,800 Texas Instruments, Inc. 461,100
3,800 Xerox Corp. 102,838
1,200 /1/Yahoo, Inc. 255,300
TOTAL 13,535,451
TOTAL LARGE-COMPANY GROWTH STOCKS 32,582,740
UTILITY STOCKS-3.5%
Electric Utilities: Central-0.3%
7,000 Ameren Corp. 242,375
12,000 Central & SouthWest Corp. 240,000
7,900 Unicom Corp. 252,306
TOTAL 734,681
Electric Utilities: East-0.5%
8,500 Consolidated Edison Co. 293,250
7,400 GPU, Inc. 236,800
9,200 Peco Energy Co. 303,025
7,300 Public Service Enterprises Group, Inc. 255,500
TOTAL 1,088,575
</TABLE>
<TABLE>
<CAPTION>
Shares Value
or Units in
U.S.
Dollars
<S> <C> <C>
4,400 Carolina Power & Light Co. $ 132,550
12,600 Duke Energy Corp. 638,662
17,600 Edison International 466,400
8,400 Entergy Corp. 231,525
5,900 FPL Group, Inc. 258,125
TOTAL 1,727,262
Electric Utilities: West-0.7%
6,100 American Electric Power Co., Inc. 191,387
11,500 First Energy Corp. 268,094
17,100 P G & E Corp. 382,612
15,700 Pacificorp 321,206
13,400 Sempra Energy 247,900
TOTAL 1,411,199
Energy-0.3%
7,100 /1/AES Corp. 411,356
8,100 DTE Energy Co. 267,806
TOTAL 679,162
Natural Gas Distribution-0.2%
5,600 Consolidated Natural Gas Co. 359,100
Oil/Gas Transmission-0.7%
27,800 Enron Corp. 1,058,137
13,500 Williams Companies, Inc. 455,625
TOTAL 1,513,762
TOTAL UTILITY STOCKS 7,513,741
FOREIGN EQUITY-3.6%
Australia-0.1%
36,000 /1/Davnet Ltd. 35,975
21,700 /1/Novogen Ltd. 42,817
15,000 Solution 6 Holdings Ltd. 105,977
34,646 /1/Westel Group Ltd. 22,052
TOTAL 206,821
Denmark-0.0%
850 Tele Danmark AS 54,802
Finland-0.1%
11,600 JOT Automation Group Oyj $ 78,907
670 Nokia Oyj 94,932
TOTAL 173,839
France-0.4%
400 Alcatel 77,597
821 Axa 110,784
150 Bouygues 69,232
390 Carrefour SPA 67,993
560 Casino Ord 69,978
990 Ciments Francais Ord A 60,858
300 M6 Metropole Television 98,860
430 Pinault-Printemps-Redoute SA 89,700
980 /1/STMicroelectronics N.V. (NY Reg Shs) 122,378
654 Total Fina SA, Class B 87,063
800 Vivendi 64,093
TOTAL 918,536
Germany, Federal Republic Of-0.2%
2,000 Continental Ag 39,907
1,000 Deutsche Bank AG 65,957
870 /1/Epcos AG 53,481
600 Mannesmann AG 124,800
15 Porsche Vorzug 40,814
1,990 /1/Thyssen Krupp AG 52,342
TOTAL 377,301
Hong Kong-0.1%
22,000 /1/China Telecommunications 117,556
7,000 Hutchison Whampoa 86,300
TOTAL 203,856
India-0.0%
2,000 /1/Gas Authority of India Ltd., GDR 18,975
900 NIIT Limited Demat shares 48,727
TOTAL 67,702
Indonesia-0.0%
40,000 PT Indosat $ 55,913
Ireland-0.0%
600 /1/Esat Telecom Group PLC, ADR 39,038
Israel-0.0%
2,500 /1/Orckit Communications, Inc. 72,500
Italy-0.1%
5,300 Arn Mondadori Edit 108,637
17,400 ENI SPA 95,390
TOTAL 204,027
Japan-1.1%
12,000 Asahi Bank Ltd. 84,287
1,700 Capcom Co., Ltd. 100,368
5,000 Chugai Pharmaceutical Co., Ltd. 54,570
6,000 Daiwa Securities Co. Ltd. 85,937
2,000 Daiwabo Information System Co., Ltd. 55,209
600 Enix Corp. 56,054
3,000 Fujitsu Ltd. 106,685
7,000 Furukawa Electric Co 75,023
400 Hirose Electric Co 66,997
1,000 Kyocera Corp. 120,929
21,000 Marubeni Corp. 81,900
500 Matsushita Communication 96,272
2,000 Megachips Corp. 154,232
500 Murata Manufacturing Co. Ltd. 83,108
2,000 Mycal Card, Inc. 96,272
4,000 NEC Corp. 93,718
7,000 Nikko Securities Co. Ltd. 87,332
500 Nintendo Corp. Ltd. 83,550
2,000 Nitori Co. 81,536
500 Sanix, Inc. 55,504
2,000 Sega Enterprises 70,337
5,000 Sharp Corp. 102,412
500 Sony Corp. 92,834
2,000 Taiyo Yuden Co $ 87,627
15,000 Toho Bank Ltd. 68,225
11,000 Toyo Trust & Banking 58,569
1,000 Yamada Denki 103,148
1,500 Yokowo, Co., Ltd. 30,060
TOTAL 2,332,695
Korea, Republic Of-0.2%
4,180 /1/Haansoft Inc. 82,933
2,900 Hyundai Electronics Industries Co. 59,538
1,131 Hyundai Electronics Industries Co. 6,146
3,450 Kookmin Bank 57,438
4,714 Korea Data Systems 91,901
400 Samsung Electronics Co. 82,812
TOTAL 380,768
Netherlands-0.3%
750 /1/ASM Lithography Holding NV 72,936
2,116 KPN NV 117,922
550 /1/KPNQUEST NV 21,038
640 Koninklijke (Royal) Philips Electronics NV 77,943
2,150 Laurus NV 40,192
100 OpenTV Corp., ADR 7,725
1,050 Unique International NV 24,126
2,200 VNU - Verenigde Nederlandse Uitgeversbedrijven Verenigd Bezit 87,241
6,300 Vendex International A 166,339
TOTAL 615,462
Norway-0.0%
2,300 /1/Tandberg Television 29,964
Portugal-0.1%
4,100 Banco Pinto & Sotto Mayor 88,007
13,500 Banco Portugues do Atlantico 54,282
3,900 Telecel - Comunicacoes Pessoais SA 51,643
TOTAL 193,932
Singapore-0.2%
6,000 Chartered Semiconductor Manufacturing $ 33,918
3,000 DBS Group Holdings Ltd. 38,917
37,000 DBS Land Ltd. 72,217
25,000 Delgro Corporation Ltd. 78,102
10,000 /1/MediaRing.com Ltd. 9,878
11,000 Natsteel Electronics Ltd. 45,492
56,000 Neptune Orient Lines Ltd. 83,309
4,000 Singapore Press Holdings Ltd. 74,978
TOTAL 436,811
Spain-0.1%
5,014 Banco Santander Central Hispano, S.A. 55,127
1,750 Continente (centros Com) 39,557
550 Ence Empr Nac Celulosas 10,420
4,672 Telefonica SA 97,366
93 Telefonica SA 1,938
6,400 Union Electrica Fenosa 107,966
TOTAL 312,374
Sweden-0.1%
800 /1/HIQ International AB 33,474
29,000 Rotternos AB 33,404
1,200 Telefonaktiebolaget LM Ericsson 58,181
TOTAL 125,059
Switzerland-0.0%
13 /1/Kudelski SA 60,016
United Kingdom-0.5%
1,350 AstraZeneca 60,149
7,768 BP Amoco PLC 79,340
3,075 British Telecommunication PLC 61,687
1,600 CMG PLC 84,580
3,443 /1/Cable & Wireless 43,731
5,200 Cable & Wireless Communications 58,460
1,800 /1/Energis PLC 73,338
10,300 Enterprise Oil 73,912
Shares,
Value
Units or in
Principal
U.S.
Amount
Dollars
8,200 Halifax
PLC $ 93,756
6,100 Invensys
PLC 27,723
10,000 Norwich Union
PLC 71,121
3,400 /1/Orange
PLC 103,014
1,300 /1/PowderJect Pharmaceuticals
PLC 20,585
3,582 Prudential Corp.
PLC 59,120
4,996 Smithkline Beecham
PLC 67,161
15,960 Vodafone AirTouch
PLC 75,207
TOTAL 1,052,884
TOTAL FOREIGN
EQUITY 7,914,300
FUTURES CONTRACTS COLLATERAL-3.9%/2/
$ 8,396,036 United States Treasury Bill,
12/16/1999 8,404,525
TOTAL STOCKS (IDENTIFIED COST
$69,480,865) 90,709,904
BONDS-57.4%
TREASURY AND GOVERNMENT SECURITIES-19.5%
Repurchase Agreement-3.0%/3/
6,385,000 Societe Generale, New York, 5.680%, dated 11/30/1999, due 12/1/1999 (at amortized
cost) 6,385,000
U.S. Treasury Securities-16.5%
4,403,964 United States Treasury Bill
12/16/1999 4,382,547
1,100,000 United States Treasury Bond, 7.250%,
5/15/2004 1,145,287
950,000 United States Treasury Note, 4.000%,
10/31/2000 935,009
2,000,000 United States Treasury Note, 5.625%,
5/15/2008 1,913,480
10,701,000 United States Treasury Note, 6.000%,
8/15/2009 10,568,843
4,300,000 United States Treasury Note, 6.125%,
8/15/2007 4,254,549
2,200,000 United States Treasury Note, 6.500%,
10/15/2006 2,226,070
10,200,000 United States Treasury Note, 6.625%,
5/15/2007 10,395,126
TOTAL 35,820,911
TOTAL TREASURY AND GOVERNMENT
SECURITIES 42,205,911
HIGH YIELD BONDS-4.6%/4/
1,150,664 The High Yield Bond
Portfolio 10,033,789
MORTGAGE-BACKED SECURITIES-15.7%/4/
3,535,878 Federated Mortgage Core
Portfolio 34,085,863
Principal Value
Amount in
U.S.
Dollars
Aerospace & Defense-0.1%
$ 250,000 McDonnell Douglas Finance, Note, 9.4%, 10/15/2001 $ 250,000
Automobiles-0.6%
750,000 Arvin Capital, 9.50%, 2/1/2027 718,560
600,000 Dana Corp., Note, 7.%, 3/15/2028 534,426
TOTAL 1,252,986
Banking-1.2%
100,000 City National Bank, Sub. Note, 6.375%, 1/15/2008 92,612
250,000 Crestar Financial Corp, Sub. Note, 8.75%, 11/15/2004 266,343
400,000 /5/Den Danske Bank, Note, 7.40% 6/15/2010 393,192
300,000 National Bank of Canada, Sub. Note, 8.125%, 8/15/2004 308,817
285,000 PNC Funding Corp, Sub. Note, 6.875%, 7/15/2007 275,547
500,000 Republic New York Corp., Sub. Note, 7.75%, 5/15/2009 502,770
400,000 Santander Finance Issuances, Bank Guarantee, 7.875%, 4/15/2005 407,156
400,000 /5/Swedbank, Sub., 7.50% 11/1/2006 380,646
TOTAL 2,627,083
Beverage & Tobacco-0.2%
150,000 Philip Morris Cos., Inc., Deb., 6.00%, 7/15/2001 146,117
350,000 Phillip Morris Cos., Inc., Deb., 9.25%, 2/15/2000 351,712
TOTAL 497,829
Cable Television-0.5%
600,000 Continental Cablevision, Sr. Deb., 9.5%, 8/1/2013 670,752
350,000 Continental Cablevision, Sr. Note, 8.50%, 9/15/2001 360,871
TOTAL 1,031,623
Chemicals & Plastics-0.2%
450,000 /5/Bayer Corp., Deb., 6.5%, 10/1/2002 446,279
Consumer Products-0.3%
600,000 /5/International Speedway, Series C, 7.875%, 10/15/2004 597,522
Ecological Services & Equipment-0.3%
350,000 USA Waste Services, Inc., Note, 6.125%, 7/15/2001 331,128
275,000 Waste Management, Deb., 8.75%, 5/1/2018 247,869
TOTAL 578,997
Education-0.2%
375,000 Boston University, 7.625%, 7/15/2097 347,396
Electronics-0.3%
700,000 Anixter International, Inc., Company Guarantee, 8%, 9/15/2003 687,974
Finance - Automotive-0.3%
$ 350,000 GMAC, Medium Term Note, 7.50%, 5/25/2000 $ 351,981
360,000 General Motors Acceptance, Sr. Note, 5.75%, 11/10/2003 344,768
TOTAL 696,749
Finance - Retail-0.2%
150,000 Household Finance, Deb., 6.45%, 2/1/2009 140,394
200,000 Sears Roebuck Acceptance, Medium Term Note, 6.56%, 9/05/2000 199,802
TOTAL 340,196
Financial Intermediaries-1.2%
350,000 Capital One Financial, Note, 7.125%, 8/01/2008 322,259
400,000 Lehman Brothers Holdings Inc, Note, 6.9%, 1/29/2001 399,636
300,000 Lehman Brothers Holdings, Bond, 6.20%, 1/15/2002 294,300
300,000 Lehman Brothers, Inc., Sr. Sub. Note, 7.375%, 1/15/2007 295,491
250,000 PaineWebber Group, Inc., Medium Term Note, 6.34%, 2/15/2000 250,040
505,000 Salomon, Inc., 7.%, 5/15/2000 506,459
225,000 Salomon, Inc., Note, 7.2%, 2/1/2004 225,180
331,363 /5/World Financial, Pass Thru Cert., Series 96 WFP-B, 6.91%, 9/1/2013 317,597
TOTAL 2,610,962
Food & Drug Retailers-0.4%
950,000 Meyer (Fred), Inc., Company Guarantee, 7.45%, 3/01/2008 944,044
Forest Products-0.8%
960,000 Fort James Corp., Sr. Note, 7.65%, 12/26/2000 968,995
650,000 Quno Corp., Sr. Note, 9.125%, 5/15/2005 684,632
TOTAL 1,653,627
Health Care-0.3%
600,000 COL HCA Healthcare Corp, Sr. Note, 6.41%, 6/15/2000 596,556
Insurance-1.1%
250,000 AFC Capital Trust I, Bond, 8.207%, 2/3/2027 248,025
350,000 Conseco, Inc., Sr. Note, 10.5%, 12/15/2004 377,325
400,000 Conseco, Inc., Sr. Sub. Note, 10.25%, 6/01/2002 414,394
365,000 Geico Corp, Deb., 9.15%, 9/15/2021 393,996
600,000 Provident Cos., Inc., Bond, 7.405%, 3/15/2038 512,508
250,000 Sunamerica Inc, Medium Term Note, 7.34%, 8/30/2005 250,763
250,000 USF&G Corp., Company Guarantee, 8.47%, 1/10/2027 244,580
TOTAL 2,441,591
Leisure & Entertainment-0.1%
$ 125,000 Paramount Communications Inc, Sr. Deb., 8.25%, 8/1/2022 $ 124,313
150,000 /1/Viacom, Inc., Sr. Note, 7.75%, 6/1/2005 153,048
TOTAL 277,361
Metals & Mining-0.4%
400,000 Barrick Gold Corp., Deb., 7.5%, 5/1/2007 401,048
450,000 Santa Fe Pacific Gold, Note, 8.375%, 7/01/2005 434,525
TOTAL 835,573
Pharmaceutical-0.3%
750,000 American Home Products Corp., Note, 7.7%, 2/15/2000 752,633
Printing & Publishing-0.2%
440,000 News America Holdings, Sr. Note, 8.50%, 2/15/2005 457,666
Real Estate-0.3%
800,000 SUSA Partnership, L.P., Deb., 7.50%, 12/1/2027 670,368
Retailers-1.4%
450,000 Harcourt General, Sr. Deb., 7.20%, 8/1/2027 395,996
400,000 May Department Stores, Deb., 8.125%, 8/15/2035 404,324
270,000 /1/Safeway, Inc., Note, 7.25%, 9/15/2004 269,730
750,000 Sears, Roebuck & Co., Medium Term Note, 7.32%, 4/24/2000 752,633
1,090,000 Shopko Stores, 8.5%, 3/15/2002 1,117,173
TOTAL 2,939,856
Sovereign-0.2%
400,000 Export-Import Bank Korea, Note, 6.5%, 5/15/2000 398,129
Sovereign Government-0.7%
400,000 Colombia, Government of, Note, 7.25%, 2/15/2003 363,000
360,000 Quebec, Province of, Deb., 9.125%, 8/22/2001 372,120
750,000 South Africa, Government of, Global Bond Deb., 9.625%, 12/15/1999 751,380
TOTAL 1,486,500
Technology Services-0.2%
500,000 Dell Computer Corp., Deb., 7.1%, 4/15/2028 465,595
Telecommunications & Cellular-1.1%
800,000 BellSouth Telecommunication, Note, 6.%, 6/15/2002 786,512
30,588 TCI Communications Inc., 9.72%, Pfd., $2.43 818,229
840,000 Telecom de Puerto Rico, Note, 6.65%, 5/15/2006 800,512
TOTAL 2,405,253
Principal
Value
Amount
in
or
Foreign
U.S.
Currency
Dollars
Par Amount
Utilities-0.4%
$ 250,000 Enersis S.A., Note, 7.4%, 12/1/2016 $
219,023
750,000 National Rural Utilities, Medium Term Note, 5.75%, 12/01/2008
681,045
TOTAL
900,068
TOTAL INVESTMENT GRADE BONDS
29,190,416
FOREIGN BONDS-4.1%
Australian Dollar-0.1%
270,000 Queensland, State of, 8%, 9/14/2007
183,711
128,000 Queensland, State of, Deb., 10.5%,
5/15/2003 91,167
25,000 West Australia, State of, Local Government Guarantee, 8%,
7/15/2003 16,604
TOTAL
291,482
Austrian Schilling-0.2%
730,000 Austria, Government of, Unsub., 6.5%, 1/10/2024
395,883
Belgian Franc-0.1%
148,736 Belgium, Government of, 7.75%, 10/15/2004
167,965
52,355 Belgium, Government of, Bond, 6.5%,
3/31/2005 56,343
TOTAL
224,308
British Pound-0.5%
127,000 British Gas Plc, 8.875%, 7/8/2008
228,934
425,000 United Kingdom, Government of, Bond, 8%, 12/07/2015
915,405
TOTAL
1,144,339
Canadian Dollar-0.2%
290,000 Canada, Government of, Deb., 6.50%, 6/1/2004
199,684
375,000 Ontario Hydro, 9.00%, 6/24/2002
272,338
TOTAL
472,022
Danish Krone-0.2%
1,200,000 Denmark, Government of, 8%, 5/15/2003
177,798
1,844,000 Denmark, Government of, Bullet, 8%, 3/15/2006
284,205
TOTAL
462,003
French Franc-0.1%
191,463 France, Government of, 8.5%, 10/25/2019
257,529
500 France, Government of, O.A.T., 7.5%,
4/25/2005 565
TOTAL
258,094
Foreign Value
Currency in
Par Amount U.S.
Dollars
Deutsche Mark-0.8%
$ 90,000 Baden Wurt L-Finance NV, Bank Guarantee, 6%, 1/25/2006
$ 47,996
230,081 Depfa-Bank, 5.5%,
1/15/2013 226,067
174,861 Germany, Government of, Deb., 6.25%,
1/04/2024 184,410
178,952 KFW International Finance, Bank Guarantee, 6.75%,
6/20/2005 195,922
562,421 Treuhandanstalt, 7.75%,
10/01/2002 615,579
380,401 Treuhandanstalt, Foreign Government Guarantee, 6.875%,
6/11/2003 410,931
TOTAL
1,680,905
Greek Drachma-0.1%
34,000,000 Greece, Government of, Floating Rate Note, 10.24%,
10/23/2003 106,799
52,000,000 Greece, Government of, Floating Rate Note, 12.40%,
11/26/2003 163,419
TOTAL 270,218
Hungarian Forint-0.0%
19,600,000 Hungary, Government of, Bond, 14%,
12/12/2002 81,812
Irish Pound-0.1%
152,368 Ireland, Government of, Deb., 9%,
9/01/2006 187,353
Italian Lira-0.4%
537,114 Italy, Government of, 9.5%,
1/01/2005 649,532
56,810 Italy, Government of, Bond, 10.5%,
11/01/2000 60,628
46,481 Italy, Government of, Deb., 12%,
1/01/2002 53,806
TOTAL 763,966
Netherlands Guilder-0.3%
50,000 Netherlands, Government, 5.5%,
1/15/2028 47,667
317,646 Netherlands, Government of, 5.75%,
1/15/2004 332,592
95,293 Netherlands, Government of, 6%,
1/15/2006 101,073
TOTAL 481,332
New Zealand Dollar-0.0%
143,000 New Zealand, Government of, 8%,
2/15/2001 74,651
Norwegian Krone-0.1%
585,000 Norway, Government of, 5.5%,
5/15/2009 69,325
630,000 Norway, Government of, Bond, 7%,
5/31/2001 79,418
473,000 Norway, Government of, Foreign Gov't. Guarantee, 5.75%,
11/30/2004 58,342
TOTAL 207,085
Polish Zloty-0.3%
280,000 Poland, Government of, Bond, 12%,
10/12/2003 63,677
$ 585,000 Poland, Government of, Bond, Series 0603, 12%, 6/12/2003
$ 131,939
2,375,000 Poland, Government of, Series 0604, 10%,
6/12/2004 514,448
TOTAL 710,064
Portugese Escutos-0.1%
170,000 Portugal, Government of, Ot's, 6.625%,
2/23/2007 185,023
Spanish Peseta-0.3%
540,910 Spain, Government of, 6.15%,
1/31/2013 573,359
38,945 Spain, Government of, Deb., 10.1%,
2/28/2001 42,133
TOTAL 615,492
Swedish Krona-0.2%
2,300,000 Sweden, Government of, 6%,
2/09/2005 277,822
600,000 Sweden, Government of, Deb., 13%,
6/15/2001 79,114
800,000 Sweden, Government of, Deb., 9%,
4/20/2009 116,472
TOTAL 473,408
TOTAL FOREIGN BONDS
8,979,440
TOTAL BONDS (IDENTIFIED COST $128,940,947)
124,495,419
TOTAL INVESTMENTS (IDENTIFIED COST $198,421,812)6 $
215,205,323
</TABLE>
/1/ Non-income producing security.
/2/ The Fund purchases index futures contracts to efficiently manage cash flows
from shareholder purchases and redemptions, dividends and capital payments
to shareholders and corporate actions while maintaining exposure to the
index and minimize trading costs. The underlying face amount, at value, of
open futures contract is $8,404,525 at November 30, 1999.
/3/ The repurchase agreements are fully collateralized by U.S. government
and/or agency obligations based on market prices at the date of the
portfolio. The investments in the repurchase agreements are through
participation in joint accounts with other Federated funds.
/4/ Pursuant to an Exemptive order, the Fund may invest in Federated Core Trust
(the "Trust") which is also managed by Federated Investment Management
Company, the Fund's adviser. The Trust is an open-end management
investment company under the Investment Company Act of 1940 available only
registered investment companies and other institutional investors. High
Yield Bond Portfolio and Federated Mortgage Core Portfolio (the
"Portfolios") are two series of the Trust. Federated receives no fees on
behalf of the Portfolios. Income distributions from the Portfolios are
declared daily and paid monthly. Income distributions earned by the Fund
are recorded as dividend income in the accompanying financial statements.
/5/ Denotes a restricted security which is subject to restrictions on resale
under Federal Securities laws. These securities have been deemed liquid
based upon criteria approved by the Fund's Board of Trustees. At November
30, 1999, these securities amounted to $2,135,236 which represents 1.0% of
net assets.
/6/ The cost of investments for federal tax purposes amounts to $198,514,304.
The net unrealized appreciation of investments on a federal tax basis
amounts to $16,691,019 which is comprised of $26,327,409 appreciation and
$9,636,390 depreciation at November 30, 1999.
Note: The categories of investments are shown as a percentage of net assets
($216,932,877) at November 30, 1999.
The following acronyms are used throughout this portfolio:
ADR -American Depositary Receipt
COL -Collateralized
GDR -Global Depositary Receipt
MBIA-Municipal Bond Investors Assurance
SPA -Standby Purchase Agreement
See Notes which are an integral part of the Financial Statements
Portfolio of Investments
Federated Managed Moderate Growth Portfolio
(FORMERLY, FEDERATED MANAGED GROWTH FUND)
NOVEMBER 30, 1999
<TABLE>
<CAPTION>
Shares Value in
U.S. Dollars
STOCKS-61.9%
LARGE-COMPANY VALUE STOCKS-17.9%
Basic Materials-1.0%
<S> <C> <C>
5,800 Air Products & Chemicals, Inc. $ 187,775
7,700 Alcoa, Inc. 504,350
29,326 Archer-Daniels-Midland Co. 364,742
3,600 Bemis Co., Inc. 113,400
4,400 Dow Chemical Co. 515,350
5,910 Du Pont (E.I.) de Nemours & Co. 351,276
4,400 Hercules, Inc. 104,500
4,600 International Paper Co. 240,062
5,300 Martin Marietta Materials 201,069
2,600 PPG Industries, Inc. 152,262
TOTAL 2,734,786
Capital Goods-1.1%
8,400 Boeing Co. 342,825
5,700 Caterpillar, Inc. 264,337
3,300 Cooper Industries, Inc. 141,694
4,700 Crown Cork & Seal Co., Inc. 95,762
6,200 Dover Corp. 268,925
3,100 Emerson Electric Co. 176,700
4,100 Hillenbrand Industries, Inc. 140,169
6,500 Ingersoll-Rand Co. 314,844
3,900 Johnson Controls, Inc. 212,550
3,900 Minnesota Mining & Manufacturing Co. 372,694
3,500 Northrop Grumman, Corp. 196,656
8,200 Parker-Hannifin Corp. 385,912
TOTAL 2,913,068
Communication Services-3.0%
28,779 AT&T Corp. 1,608,027
21,200 Bell Atlantic Corp. 1,342,225
13,400 BellSouth Corp. 618,912
14,000 GTE Corp. 1,022,000
16,697 /1/MCI Worldcom, Inc. 1,380,633
21,448 SBC Communications, Inc. 1,113,955
6,200 Sprint Corp. (FON Group) 430,125
7,900 U.S. West, Inc. 490,294
TOTAL 8,006,171
Consumer Cyclicals-1.0%
11,600 Ford Motor Co. 585,800
4,100 Gannett Co., Inc. 293,406
6,200 General Motors Corp. 446,400
22,400 /1/K Mart Corp. 222,600
6,099 Limited, Inc. 258,826
9,000 Masco Corp. 227,250
3,450 May Department Stores Co. 116,006
4,200 Sears, Roebuck & Co. 143,587
10,700 Service Corp. International 80,919
TOTAL 2,374,794
Consumer Staples-1.5%
2,300 /1/AMFM, Inc. 162,581
11,436 CBS Corp. 594,672
4,700 Dole Food, Inc. 75,200
8,600 Kimberly-Clark Corp. 549,325
13,700 McDonald's Corp. 616,500
700 /1/MediaOne Group, Inc. 55,475
9,800 Nabisco Group Holdings Corp. 113,312
23,200 Philip Morris Cos., Inc. 610,450
16,000 UST, Inc. 426,000
25,600 Walt Disney Co. 713,600
TOTAL 3,917,115
Energy-1.9%
5,100 Atlantic Richfield Co. 491,512
7,200 /1/BJ Services Co. 251,100
6,700 Chevron Corp. 593,369
8,230 Conoco, Inc., Class B 215,523
21,800 Exxon Corp. 1,729,012
6,100 Mobil Corp. 636,306
12,500 Occidental Petroleum Corp. 274,219
4,400 Phillips Petroleum Co. 210,375
8,800 Sunoco, Inc. 224,950
2,600 Texaco, Inc. 158,437
11,000 USX-Marathon Group 290,812
TOTAL 5,075,615
Financials-5.1%
17,200 Allstate Corp. 450,425
2,300 American Express Co. 348,019
14,432 American International Group, Inc. 1,490,104
17,018 Bank of America Corp. 995,553
7,500 Bank of New York Co., Inc. 299,062
3,859 Bear Stearns Cos., Inc. 157,485
6,100 CIGNA Corp. 501,725
6,900 Chase Manhattan Corp. 533,025
38,175 Citigroup, Inc. 2,056,678
12,000 Fannie Mae 799,500
15,600 First Union Corp. 603,525
12,329 Fleet Boston Financial Corp. 466,190
7,900 /1/Golden State Bancorp, Inc. 153,556
6,200 KeyCorp 167,400
3,900 Loews Corp. 249,600
5,600 MBIA, Inc. 280,000
2,700 MGIC Investment Corp. 152,550
6,750 Marsh & McLennan Cos., Inc. 530,719
11,400 Mellon Financial Corp. 415,387
2,600 Merrill Lynch & Co., Inc. 209,625
1,600 Morgan, J.P. & Co., Inc. 210,400
6,900 Morgan Stanley, Dean Witter, Discover & Co. 832,312
10,650 Old Republic International Corp. 133,125
3,800 PNC Bank Corp. 211,850
3,100 SunTrust Banks, Inc. 216,612
6,600 Torchmark Corp. 209,550
13,272 Washington Mutual, Inc. 384,888
10,000 Wells Fargo Co. 465,000
TOTAL 13,523,865
Health Care-0.5%
8,000 American Home Products Corp. 416,000
13,300 Pharmacia & Upjohn, Inc. 727,344
TOTAL 1,143,344
Technology-1.7%
6,800 Eastman Kodak Co. 420,750
5,700 Electronic Data Systems Corp. 366,581
12,100 First Data Corp. 523,325
7,800 Hewlett-Packard Co. 740,025
17,600 International Business Machines Corp. 1,813,900
3,500 Motorola, Inc. 399,875
7,200 Raytheon Co., Class A 209,700
TOTAL 4,474,156
Transportation-0.3%
4,100 /1/AMR Corp. 249,587
13,000 Burlington Northern Santa Fe 377,000
11,400 Ryder Systems, Inc. 257,212
TOTAL 883,799
Utilities-0.8%
8,000 CMS Energy Corp. 266,000
10,000 Coastal Corp. 352,500
5,650 Columbia Energy Group 354,537
6,200 Constellation Energy Group 182,512
4,600 Dominion Resources, Inc. 208,725
11,700 Reliant Energy, Inc. 290,306
11,400 Southern Co. 266,475
7,800 Texas Utilities Co. 279,337
TOTAL 2,200,392
TOTAL LARGE-COMPANY VALUE STOCKS 47,247,105
LARGE-COMPANY GROWTH STOCKS-17.5%
Basic Materials-0.1%
4,700 Monsanto Co. 198,281
Capital Goods-1.8%
6,200 Allied-Signal, Inc. 370,837
4,000 Avery Dennison Corp. 237,500
24,800 General Electric Co. 3,224,000
7,400 Miller Herman, Inc. 169,275
4,200 /1/SCI Systems, Inc. 285,075
8,200 United Technologies Corp. 463,300
5,030 Waste Management, Inc. 81,737
TOTAL 4,831,724
Communication Services-0.3%
4,500 BroadWing Inc. 131,062
13,000 Vodafone AirTouch PLC, ADR 613,437
TOTAL 744,499
Consumer Cyclicals-1.6%
3,000 /1/Abercrombie & Fitch Co., Class A 97,125
4,700 Block (H&R), Inc. 202,100
4,500 /1/Convergys Corp. 122,906
2,300 Costco Wholesale Corp. 210,881
3,800 Dayton-Hudson Corp. 268,137
6,075 Gap (The), Inc. 246,037
5,300 Harley Davidson, Inc. 323,300
11,200 Home Depot, Inc. 885,500
3,400 Lowe's Cos., Inc. 169,362
2,700 Maytag Corp. 128,756
5,700 /1/Staples, Inc. 133,950
12,400 TJX Cos., Inc. 324,725
20,600 Wal-Mart Stores, Inc. 1,187,075
TOTAL 4,299,854
Consumer Staples-2.6%
6,800 /1/AT&T Corp. - Liberty Media Group, Inc., Class A 284,325
4,300 Avon Products, Inc. 156,681
7,800 Campbell Soup Co. 348,075
2,100 Cardinal Health, Inc. 109,856
16,300 Coca-Cola Co. 1,097,194
2,900 Colgate-Palmolive Co. 159,137
5,000 Comcast Corp., Class A 225,937
8,400 Dial Corp. 235,725
5,600 Gillette Co. 225,050
3,800 Heinz (H.J.) Co. 159,125
7,104 McKesson HBOC, Inc. 166,056
11,300 PepsiCo, Inc. 390,556
10,600 Procter & Gamble Co. 1,144,800
4,500 Quaker Oats Co. 293,625
10,600 /1/Safeway, Inc. 390,875
8,800 Sara Lee Corp. 213,400
4,600 Sysco Corp. 175,087
11,200 Time Warner, Inc. 690,900
6,200 /1/Tricon Global Restaurants, Inc. 257,300
6,400 /1/Viacom, Inc., Class A 318,800
TOTAL 7,042,504
Energy-0.1%
5,000 Halliburton Co. 193,437
Financials-0.5%
5,810 Associates First Capital Corp., Class A 193,183
5,100 Household International, Inc. 201,769
16,300 MBNA Corp. 411,575
4,600 Providian Financial Corp. 363,975
3,400 Schwab (Charles) Corp. 128,988
TOTAL 1,299,490
Health Care-3.2%
10,000 Abbott Laboratories 380,000
12,400 /1/Amgen, Inc. 564,975
2,400 Baxter International, Inc. 162,150
16,200 Bristol-Myers Squibb Co. 1,183,613
9,400 Guidant Corp. 470,000
5,600 /1/HEALTHSOUTH, Corp. 31,850
9,200 Johnson & Johnson 954,500
5,600 Lilly (Eli) & Co. 401,800
12,473 Medtronic, Inc. 484,888
19,800 Merck & Co., Inc. 1,554,300
18,000 Pfizer, Inc. 651,375
12,000 Schering Plough Corp. 613,500
3,800 United Healthcare Corp. 197,362
7,700 /1/Universal Health Services, Inc., Class B 253,619
6,300 Warner-Lambert Co. 565,031
TOTAL 8,468,963
Technology-7.3%
19,200 /1/America Online, Inc. 1,395,600
6,000 /1/Applied Materials, Inc. 584,625
6,200 /1/BMC Software, Inc. 451,437
30,950 /1/Cisco Systems, Inc. 2,760,353
4,400 /1/Compuware Corp. 148,775
14,800 /1/Dell Computer Corp. 636,400
14,000 /1/EMC Corp. Mass 1,169,875
4,400 /1/Gateway, Inc. 336,050
24,000 Intel Corp. 1,840,500
7,000 /1/Lexmark International Group, Class A 581,000
26,890 Lucent Technologies, Inc. 1,964,651
32,800 /1/Microsoft Corp. 2,986,337
10,200 /1/Oracle Corp. 691,687
3,100 /1/PanAmSat Corp. 131,944
6,700 /1/Seagate Technology, Inc. 247,900
10,400 /1/Sun Microsystems, Inc. 1,375,400
10,600 /1/Tellabs, Inc. 687,675
8,503 Texas Instruments, Inc. 816,819
6,000 Xerox Corp. 162,375
1,600 /1/Yahoo, Inc. 340,400
TOTAL 19,309,803
TOTAL LARGE-COMPANY GROWTH STOCKS 46,388,555
SMALL-COMPANY STOCKS-2.1%
Basic Materials-0.1%
1,200 Cambrex Corp. 37,800
900 ChemFirst, Inc. 21,037
700 Commercial Metals Corp. 22,400
800 Commonwealth Industries, Inc. 10,300
1,800 Corn Products International, Inc. 56,475
900 Florida Rock Industries, Inc. 28,125
800 Imco Recycling, Inc. 10,300
1,100 Lilly Industries, Inc., Class A 15,331
700 /1/Material Sciences Corp. 7,656
500 /1/McWhorter Technologies, Inc. 6,875
1,200 OM Group, Inc. 40,500
400 Penford Corporation 6,050
700 Pope & Talbot, Inc. 8,356
400 Quaker Chemical Corp. 6,250
700 Quanex Corp. 14,831
600 Republic Group, Inc. 9,525
500 Steel Technologies, Inc. 5,625
1,000 Texas Industries, Inc. 36,250
800 /1/WHX Corp. 7,100
TOTAL 350,786
Capital Goods-0.3%
1,300 AAR Corp. 21,450
1,300 AMCOL International Corp. 23,075
1,900 Applied Power, Inc., Class A 60,681
1,800 Aptargroup, Inc. 48,825
1,200 /1/BE Aerospace, Inc. 8,400
1,300 BMC Industries, Inc. 7,069
800 /1/Benchmark Electronics, Inc. 17,800
1,100 Brady (W.H.) Co. 33,756
300 Butler Manufacturing Co. 6,431
1,200 CLARCOR, Inc. 20,850
1,500 /1/Checkpoint System, Inc. 11,906
600 /1/Electro Scientific Industries, Inc. 35,062
700 /1/Flow International Corp. 7,175
700 /1/Gardner Denver, Inc. 11,462
1,100 /1/Global Industrial Technologies, Inc. 13,887
700 /1/HADCO Corp. 33,075
900 Harman International Industries, Inc. 46,350
500 Harmon Industries, Inc. 6,187
400 Insteel Industries, Inc. 3,375
600 /1/Intermagnetics General Corp. 4,012
700 /1/Itron, Inc. 4,419
1,100 Kaman Corp., Class A 13,062
1,900 /1/Kemet Corp. 68,875
500 Lawson Products, Inc. 11,375
800 /1/Lydall, Inc. 7,150
2,600 /1/Morrison Knudsen Corp. 22,587
1,700 /1/Mueller Industries, Inc. 61,200
990 Myers Industries, Inc. 14,850
300 /1/Nashua Corp. 2,212
500 Park Electrochemical Corp. 16,437
2,300 /1/Paxar Corp. 19,550
1,350 Reliance Steel & Aluminum Co. 32,906
600 /1/SPS Technologies, Inc. 19,650
1,100 Smith (A.O.) Corp. 24,200
600 Spartan Motors, Inc. 2,512
600 Standex International Corp. 12,675
600 Stone & Webster, Inc. 9,825
800 Technitrol, Inc. 34,300
800 Thomas Industries, Inc. 12,900
500 /1/Three-Five Systems, Inc. 21,250
800 URS Corp. 15,600
1,200 Valmont Industries, Inc. 21,300
1,100 Wabash National Corp. 16,156
1,400 Watsco, Inc. 15,225
TOTAL 901,044
Communication Services-0.0%
2,400 /1/General Communications, Inc., Class A 9,900
Consumer Cyclicals-0.5%
400 Angelica Corp. 4,000
1,000 Applied Industrial Technologies, Inc. 17,125
1,300 Arctic Cat, Inc. 13,325
1,100 Authentic Fitness Corp. 22,756
700 Baker (J.), Inc. 3,587
600 Bassett Furniture Industries, Inc. 9,562
1,800 /1/Bombay Co., Inc. 9,000
900 /1/Books-A-Million, Inc. 9,337
900 Brown Shoe Co., Inc. 14,175
600 /1/Building Materials Holding Corp. 5,925
2,600 Casey's General Stores, Inc. 33,150
1,300 Cato Corp., Class A 17,062
1,600 /1/Cerner Corp. 30,400
2,400 /1/Champion Enterprises, Inc. 20,550
500 Chemed Corp. 13,000
800 Coachmen Industries, Inc. 11,450
1,200 /1/Cone Mills Corp. 5,925
800 /1/Cyrk International, Inc. 5,900
3,100 D. R. Horton, Inc. 42,625
300 /1/Damark International, Inc., Class A 2,925
800 /1/Discount Auto Parts, Inc. 11,050
600 Dixie Group, Inc. 4,162
1,000 /1/Dress Barn, Inc. 17,062
1,800 Fedders Corp. 9,675
1,600 /1/Goody's Family Clothing, Inc. 10,600
600 /1/Gottschalks, Inc. 5,400
1,000 /1/Group 1 Automotive, Inc. 14,500
2,400 /1/HA-LO Industries, Inc. 15,000
300 Haggar Corp. 3,637
1,100 Hughes Supply, Inc. 26,056
1,400 /1/Information Resources, Inc. 14,000
600 /1/Insurance Automotive Auctions, Inc. 8,700
1,200 Intermet Corp. 12,150
1,300 /1/Jan Bell Marketing, Inc. 3,656
900 Jo-Ann Stores, Inc. 11,756
1,200 Justin Industries, Inc. 18,675
600 K Swiss, Inc., Class A 8,550
800 K2, Inc. 5,900
1,300 Kellwood Co. 26,975
400 Lillian Vernon Corp. 4,800
1,100 M.D.C. Holdings, Inc. 16,431
1,400 /1/Michaels Stores, Inc. 43,925
1,100 /1/NFO Worldwide, Inc. 14,369
1,700 /1/Nautica Enterprise, Inc. 22,312
400 Oxford Industries, Inc. 8,525
1,300 Phillips Van Heusen Corp. 11,050
700 Pillowtex Corp. 2,800
1,000 /1/Primark Corp. 26,563
2,500 /1/Prime Hospitality Corp. 21,719
1,000 Russ Berrie & Co., Inc. 25,500
700 Ryland Group, Inc. 15,925
900 /1/Service Experts, Inc. 5,625
1,400 Shopko Stores, Inc. 31,763
900 Simpson Industries, Inc. 9,478
400 Skyline Corp. 9,925
600 Standard Motor Products, Inc. 10,988
1,400 Standard Pacific Corp. 15,400
2,200 /1/Stein Mart, Inc. 13,338
2,300 Stride Rite Corp. 14,663
1,300 Sturm Ruger & Co., Inc. 11,700
400 /1/Swiss Army Brands, Inc. 3,250
1,000 /1/TBC Corp. 5,875
800 TJ International, Inc. 33,350
700 Thomas Nelson, Inc. 6,213
600 Thor Industries, Inc. 16,763
1,800 /1/Toll Brothers, Inc. 32,175
600 Toro Co. 19,463
2,300 /1/Tower Automotive, Inc. 34,500
700 /1/U.S. Home Corp. 18,025
1,000 Universal Forest Products, Inc. 15,375
2,000 Wolverine World Wide, Inc. 21,875
900 Wynns International, Inc. 13,613
1,800 /1/Zale Corp. 91,125
TOTAL 1,167,684
Consumer Staples-0.2%
1,100 ABM Industries, Inc. 23,650
500 /1/Agribrands International, Inc. 23,531
1,666 Bindley Western Industries, Inc. 22,075
900 /1/CDI Corp. 21,825
2,500 CKE Restaurants, Inc. 16,094
900 /1/Canandaigua Wine Co., Inc., Class A 47,925
600 /1/Carmike Cinemas, Inc., Class A 7,500
2,100 Earthgrains Co. 38,063
400 /1/GC Cos., Inc. 11,275
1,000 /1/IHOP Corp. 15,500
3,160 /1/Interim Services, Inc. 58,263
500 /1/J & J Snack Foods Corp. 9,375
1,200 /1/Landrys Seafood Restaurants, Inc. 10,575
1,100 Luby's Cafeterias, Inc. 12,788
1,000 Michael Foods, Inc. 25,063
3,300 /1/NBTY, Inc. 32,278
600 Nash Finch Co. 4,350
400 National Presto Industries, Inc. 14,100
1,600 Owens & Minor, Inc. 15,000
600 /1/Panera Bread Co. 4,650
700 /1/Performance Food Group Co. 17,500
672 /1/Priority HealthCare Corp., Class A 14,112
1,500 /1/Ralcorp Holdings, Inc. 29,344
900 /1/Royal Appliance Manufacturing 5,231
1,800 /1/Ryan's Family Steak Houses, Inc. 17,775
800 Schweitzer-Mauduit International, Inc. 10,600
2,000 /1/Smithfield Foods, Inc. 51,250
1,400 /1/StaffMark, Inc. 11,156
700 /1/Volt Information Science, Inc. 15,619
TOTAL 586,467
Energy-0.1%
1,200 Cabot Oil & Gas Corp., Class A 18,375
800 /1/Dril-Quip, Inc. 19,700
77 /1/Eagle Geophysical, Inc. 4
900 /1/HS Resources, Inc. 11,644
1,000 /1/Remington Oil & Gas Corp. 5,000
600 /1/SEACOR SMIT, Inc. 31,125
1,200 /1/Seitel, Inc. 8,100
500 St. Mary Land & Exploration Co. 10,438
3,000 Vintage Petroleum, Inc. 32,063
TOTAL 136,449
Financials-0.3%
1,100 Banknorth Group, Inc. 33,516
1,200 Carolina First Corporation 24,525
2,300 Community First Bankshares, Inc. 41,831
600 Dain Rauscher Corp. 29,213
958 /1/Delphi Financial Group, Inc., Class A 29,735
1,400 Downey Financial Corp. 28,175
1,900 Enhance Financial Services Group, Inc. 32,538
1,500 Fidelity National Financial, Inc. 22,594
3,200 First American Financial Corp. 41,200
3,400 Fremont General Corp. 17,213
1,200 /1/Hambrecht & Quist Group 59,700
500 JSB Financial, Inc. 29,563
1,200 MAF Bancorp, Inc. 26,625
1,260 Provident Bankshares Corp. 24,964
1,800 Radiant Group, Inc. 87,975
2,300 Raymond James Financial, Inc. 43,269
1,400 Riggs National Corp. 19,863
1,000 /1/Silicon Valley Bancshares 36,813
1,800 Susquehanna Bankshares, Inc. 31,163
2,100 UST Corp. 66,281
2,100 United Bankshares, Inc. 51,975
1,100 Whitney Holding Corp. 41,800
TOTAL 820,531
Health Care-0.1%
700 Cooper Companies, Inc. 17,675
2,900 /1/Coventry Health Care Inc. 16,675
700 /1/Datascope Corp. 25,966
700 Diagnostic Products Corp. 17,631
900 /1/Hanger Orthopedica Group, Inc. 9,225
1,400 Invacare Corp. 29,488
1,000 /1/NCS HealthCare, Inc., Class A 2,656
2,300 /1/Orthodontic Centers of America, Inc. 28,031
800 /1/Pediatrix Medical Group 6,200
1,500 /1/Regeneron Pharmaceuticals, Inc. 11,438
1,600 /1/Roberts Pharmaceutical Corp. 51,700
700 /1/Rural / Metro Corp. 3,981
1,200 /1/Sola International, Inc. 17,100
500 /1/SpaceLabs Medical, Inc. 6,938
4,200 /1/US Oncology, Inc. 19,819
1,200 /1/Vertex Pharmaceuticals, Inc. 31,875
600 Vital Signs, Inc. 13,950
TOTAL 310,348
Technology-0.2%
600 Analogic Corp. 17,906
1,800 /1/Anixter International, Inc. 36,675
1,200 /1/Avid Technology, Inc. 13,275
270 Avnet, Inc. 14,833
1,400 /1/Cable Design Technologies, Class A 33,513
300 /1/Centigram Communications Corp. 4,200
1,200 /1/Coherent, Inc. 31,800
700 /1/Digi International, Inc. 11,288
1,000 /1/Electroglas, Inc. 28,469
2,000 /1/Epicor Software Corp. 11,688
1,600 /1/Filenet Corp. 32,000
1,100 Gerber Scientific, Inc. 21,175
1,200 /1/Hutchinson Technology, Inc. 22,200
2,500 /1/International Rectifier Corp. 50,625
1,100 /1/Kulicke & Soffa Industries 39,256
900 /1/Lason Holdings, Inc. 21,938
2,300 /1/Lattice Semiconductor Corp. 102,925
1,300 Pioneer Standard Electronics, Inc. 17,550
3,500 /1/S3, Inc. 29,313
1,600 /1/Silicon Valley Group, Inc. 22,900
800 /1/Standard Microsystems Corp. 9,800
700 /1/Symmetricom, Inc. 5,381
1,000 /1/Ultratech Stepper, Inc. 18,938
300 Watkins Johnson Co. 11,644
TOTAL 609,292
Transportation-0.1%
1,600 /1/American Freightways Corp. 27,700
1,000 /1/Arkansas Best Corp. 12,500
1,800 /1/Fritz Companies, Inc. 17,775
1,500 /1/Heartland Express, Inc. 22,125
600 /1/M.S. Carriers, Inc. 15,750
1,600 /1/Mesa Air Group, Inc. 8,200
1,000 Pittston BAX Group 9,500
500 /1/Railtex, Inc. 8,438
2,800 Rollins Truck Leasing Corp. 32,900
1,200 SkyWest, Inc. 29,400
1,300 USFreightways Corp. 54,275
2,300 Werner Enterprises, Inc. 34,500
1,200 /1/Yellow Corp. 20,175
TOTAL 293,238
Utilities-0.2%
400 American States Water Co. 15,175
600 Aquarion Co. 22,050
1,500 Atmos Energy Corp. 33,469
400 Bangor Hydro Electric Co. 6,425
500 Cascade Natural Gas Corp. 8,781
800 Central Hudson Gas & Electric Corp. 26,750
600 Central VT Public Service Corp. 7,425
500 Connecticut Energy Corp. 19,719
1,000 Eastern Utilities Association 30,375
1,500 Energen Corp. 28,875
900 New Jersey Resources Corp. 36,225
1,200 Northwest Natural Gas Co. 30,150
1,100 Northwestern Corp. 23,238
795 /1/Southern Union Co. 15,304
1,500 Southwest Gas Corp. 35,156
1,200 Southwestern Energy Co. 8,925
700 TNP Enterprises, Inc. 28,569
700 United Illuminating Co. 36,225
1,900 United Water Resources, Inc. 63,650
1,800 WICOR, Inc. 54,000
TOTAL 530,486
TOTAL SMALL-COMPANY STOCKS 5,716,225
SMALL-COMPANY GROWTH STOCKS-2.8%
Basic Materials-0.1%
1,500 /1/Buckeye Technologies Inc. 23,813
1,700 Delta & Pine Land Co. 43,456
1,000 Geon Co. 30,250
1,100 MacDermid, Inc. 41,869
1,200 /1 Shorewood Packaging Corp. 19,650
1,600 /1 Stillwater Mining Co. 38,800
TOTAL 197,838
Capital Goods-0.3%
400 /1/Alliant Techsystems, Inc. 21,975
1,600 /1/Artesyn Technologies, Inc. 34,900
800 /1/Astec Industries, Inc. 19,900
600 /1/Aviation Sales Co. 8,475
1,600 Baldor Electric Co. 31,300
800 /1/Black Box Corp. 47,600
500 C&D Technologies, Inc. 19,563
500 /1/C-COR Electronics, Inc. 25,531
1,200 CTS Corp. 96,225
1,000 /1/Dionex Corp. 38,875
1,050 /1/Dycom Industries, Inc. 42,263
1,800 GenCorp, Inc. 19,688
900 Graco, Inc. 29,644
1,300 IDEX Corp. 35,831
1,100 /1/Insituform Technologies, Inc., Class A 27,569
1,900 JLG Industries, Inc. 26,006
500 Lindsay Manufacturing Co. 8,406
1,100 Manitowoc, Inc. 33,550
600 New England Business Service, Inc. 13,575
800 /1/Oak Industries, Inc. 60,250
800 /1/Plexus Corp. 31,500
1,300 Roper Industries, Inc. 48,344
1,500 /1/SLI, Inc. 19,406
800 Scott Technologies, Inc. 16,500
800 /1/Specialty Equipment Cos., Inc. 17,700
1,600 Tredegar Industries, Inc. 30,900
1,800 /1/Vicor Corp. 58,275
TOTAL 863,751
Communication Services-0.0%
900 /1/Powerwave Technologies, Inc. 53,831
2,600 /1/Talk.com, Inc. 43,875
TOTAL 97,706
Consumer Cyclicals-0.5%
900 /1/ADVO, Inc. 18,506
700 /1/Action Performance Companies, Inc. 11,856
3,700 /1/Acxiom Corp. 65,791
1,200 /1/Ames Department Stores, Inc. 31,875
1,100 /1/Ann Taylor Stores Corp. 47,506
400 CPI Corp. 9,900
800 /1/Catalina Marketing Corp. 76,250
1,600 Central Parking Corp. 41,400
1,200 /1/ChoicePoint, Inc. 40,050
3,000 /1/DeVRY, Inc. 60,563
700 /1/Department 56, Inc. 13,081
800 Elcor Corp. 25,900
1,750 Ethan Allen Interiors, Inc. 58,188
900 /1/Footstar, Inc. 29,869
1,400 /1/Fossil, Inc. 29,400
900 G & K Services, Inc., Class A 30,488
3,200 /1/Gentex Corp. 59,800
1,100 /1/Insight Enterprises, Inc. 36,919
2,200 La-Z Boy Chair Co. 39,600
1,700 /1/Linens 'N Things, Inc. 57,375
1,900 Mascotech, Inc. 22,800
1,800 /1/Mens Wearhouse, Inc. 46,350
800 /1/Monaco Coach Corp. 17,200
1,100 /1/O'Reilly Automotive, Inc. 50,600
700 OshKosh B'Gosh, Inc., Class A 14,175
1,300 /1/Pacific Sunwear of California 40,138
4,200 Pier 1 Imports, Inc. 29,138
1,100 Polaris Industries, Inc. 42,350
1,000 /1/Prepaid Legal Services, Inc. 23,875
2,000 /1/Profit Recovery Group International, Inc. 74,094
1,000 /1/Quiksilver, Inc. 15,125
1,650 Regis Corp. Minnesota 34,031
800 /1/Scotts Co. 32,150
500 /1/Simpson Manufacturing Co., Inc. 20,844
900 /1/Timberland Co., Class A 43,200
2,100 True North Communications, Inc. 83,606
700 WD 40 Co. 16,275
1,000 Winnebago Industries, Inc. 18,875
TOTAL 1,409,143
Consumer Staples-0.2%
1,200 Applebee's International, Inc. 36,150
1,200 /1/CEC Entertainment, Inc. 36,000
900 /1/Cheesecake Factory, Inc. 27,900
700 /1/Consolidated Graphics, Inc. 15,706
1,125 /1/Consolidated Products, Inc. 11,813
1,300 Harland (John H.) Co. 24,131
1,600 /1/Jack in the Box, Inc. 33,700
1,800 /1/Labor Ready, Inc. 22,838
700 Libbey, Inc. 18,550
800 Natures Sunshine Products, Inc. 6,750
1,400 /1/Patterson Dental Co. 64,225
900 /1/Priority HealthCare Corp., Class B 22,275
1,400 Ruby Tuesday, Inc. 28,175
800 /1/Sonic Corp. 21,600
600 /1/Taco Cabana, Inc., Class A 5,213
1,625 /1/Tetra Tech, Inc. 18,484
1,100 /1/Triarc Companies, Inc., Class A 21,381
600 /1/USA Detergents, Inc. 2,550
2,400 /1/Valassis Communications, Inc. 94,500
1,100 /1/Whole Foods Market, Inc. 43,244
TOTAL 555,185
Energy-0.1%
1,400 /1/Barrett Resources 37,188
1,800 /1/Newfield Exploration Co. 46,463
700 /1/Plains Resources, Inc. 7,700
1,700 Pogo Producing Co. 30,600
800 /1/Stone Energy Corp. 31,150
TOTAL 153,101
Financials-0.4%
3,100 /1/Americredit Corp. 52,700
600 Blanch, E. W. Holdings, Inc. 34,800
1,200 Centura Banks, Inc. 55,800
1,200 Chittenden Corp. 38,775
1,155 Commerce Bancorp, Inc. 49,665
2,300 Cullen Frost Bankers, Inc. 65,550
1,500 Eaton Vance Corp. 53,906
1,200 First Midwest Bancorp, Inc. 50,400
1,200 First Bancorp 24,300
3,900 Firstmerit Corp. 101,278
800 Gallagher (Arthur J.) & Co. 43,600
600 Hilb Rogal & Hamilton Co. 16,275
1,751 Hudson United Bancorp 54,062
2,400 Legg Mason, Inc. 84,450
1,900 Mutual Risk Management Ltd. 29,094
1,100 Pioneer Group, Inc. 16,363
950 Queens County Bancorp, Inc. 27,550
800 SEI Investments, Co. 81,150
2,300 Trustco Bank Corp. 33,494
800 U.S. Trust Corp. 63,650
TOTAL 976,862
Health Care-0.3%
1,200 Alpharma, Inc., Class A 38,400
1,000 /1/Barr Laboratories, Inc. 31,500
2,300 /1/Bio-Technology General Corp. 27,600
1,000 /1/Biomatrix, Inc. 23,500
1,300 /1/Cephalon, Inc. 28,925
1,000 /1/Cygnus, Inc. 9,938
1,100 /1/Enzo Biochem, Inc. 28,738
1,700 /1/Express Scripts, Inc., Class A 86,275
1,200 Hooper Holmes, Inc. 28,350
900 /1/IDEC Pharmaceuticals Corp. 114,075
1,700 /1/IDEXX Laboratories, Inc. 31,450
1,100 /1/Immune Response Corp. 4,881
1,850 Jones Pharma, Inc. 64,056
1,100 /1/Laser Vision Centers, Inc. 15,950
1,700 /1/Liposome Co., Inc. 21,144
900 /1/Maximus, Inc. 25,200
180 /1/Medimmune, Inc. 21,634
1,000 Mentor Corp. 23,375
900 /1/Noven Pharmaceuticals, Inc. 11,644
600 /1/Osteotech, Inc. 8,400
1,100 /1/Parexel International Corp. 13,200
1,100 /1/Pharmaceutical Product Development, Inc. 13,613
1,900 /1/Renal Care Group, Inc. 38,950
2,000 /1/Summit Technology, Inc. 38,375
500 /1/Syncor International Corp. 14,031
700 /1/Wesley Jessen VisionCare, Inc. 19,994
TOTAL 783,198
Technology-0.8%
800 /1/Alpha Industries, Inc. 48,400
1,800 /1/American Management System, Inc 52,875
900 /1/Apex, Inc. 21,150
1,200 /1/Bisys Group, Inc. 69,525
1,600 /1/Burr Brown Corp. 70,900
2,500 /1/Ciber, Inc. 53,281
1,000 /1/Clarify, Inc. 93,203
2,200 /1/CommScope, Inc. 92,675
900 Computer Task Group, Inc. 13,331
600 /1/Concord Communications, Inc. 32,100
800 /1/DBT Online, Inc. 15,400
1,200 Dallas Semiconductor Corp. 69,225
1,650 /1/Dendrite International, Inc. 45,375
2,700 /1/Digtial Microwave Corp. 42,525
700 FactSet Research Systems 43,400
600 Fair Isaac & Co., Inc. 25,500
1,600 /1/General Semiconductor, Inc. 22,000
1,000 /1/HNC Software 71,000
1,000 Helix Technology Corp. 40,484
900 Henry Jack & Associates, Inc. 35,606
1,100 Inter-Tel, Inc. 21,931
1,400 /1/Intervoice, Inc. 21,088
500 /1/Kronos, Inc. 25,938
700 /1/MICROS Systems Corp. 35,394
1,800 /1/Macromedia, Inc. 118,350
1,500 /1/Medquist, Inc. 42,750
1,600 /1/Mercury Interactive Corp. 133,000
1,500 Methode Electronics, Inc., Class A 40,500
1,800 /1/Micrel, Inc. 88,650
1,400 National Computer Systems, Inc. 53,725
1,500 National Data Corp. 49,125
2,100 /1/National Instruments Corp. 63,000
700 /1/Plantronics, Inc. 44,100
700 /1/Progress Software Corp. 27,913
600 /1/QRS Corp. 34,875
1,200 /1/Remedy Corp. 41,850
1,000 /1/Trimble Navigation Ltd. 16,875
1,300 /1/Visio Corp. 46,638
2,300 /1/Whittman-Hart, Inc. 141,306
1,000 /1/Xircom, Inc. 52,500
1,300 /1/Zebra Technologies Co., Class A 78,488
Transportation-0.1%
800 /1/Atlantic Coast Airlines Holdings 16,600
2,200 Expeditors International Washington, Inc. 89,650
900 /1/Kirby Corp. 16,538
400 /1/Landstar System, Inc. 16,025
600 /1/Midwest Express Holdings, Inc. 17,363
TOTAL 156,176
Utilities-0.0%
1,800 Philadelphia Suburban Corp. 41,625
900 Public Service Co. North Carolina, Inc. 28,913
TOTAL 70,538
TOTAL SMALL-COMPANY GROWTH STOCKS 7,399,449
FOREIGN STOCKS-13.3%
Australia-0.3%
160,000 /1/Davnet Ltd. 159,889
95,600 /1/Novogen Ltd. 188,633
68,600 Solution 6 Holdings Ltd. 484,669
160,200 /1/Westel Group Ltd. 101,967
TOTAL 935,158
Denmark-0.1%
3,800 Tele Danmark AS 244,995
Finland-0.3%
52,800 JOT Automation Group Oyj 359,162
2,780 Nokia Oyj 393,897
TOTAL 753,059
France-1.6%
1,950 Alcatel 378,284
4,140 Axa 558,642
700 Bouygues 323,085
1,770 Carrefour SA 308,583
2,550 Casino Ord 318,650
4,500 Ciments Francais Ord A 276,627
1,335 M6 Metropole Television 439,928
1,700 Pinault-Printemps-Redoute SA 354,627
4,500 /1/STMicroelectronics N.V. (NY Reg Shs) 561,938
3,226 Total Fina SA, Class B 429,457
3,400 Vivendi 272,395
TOTAL 4,222,216
Germany, Federal Republic of-0.6%
9,100 Continental AG 181,576
4,500 Deutsche Bank AG 296,807
3,800 /1/Epcos AG 233,596
2,700 Mannesmann AG 561,599
80 Porsche Vorzug 217,674
8,980 /1/Thyssen Krupp AG 236,194
TOTAL 1,727,446
Hong Kong-0.4%
100,000 /1/China Telecommunications 534,346
32,000 Hutchison Whampoa 394,515
TOTAL 928,861
India-0.1%
10,000 /1/Gas Authority of India Ltd., GDR 94,875
3,400 NIIT Limited Demat shares 184,080
TOTAL 278,955
Indonesia-0.1%
182,000 PT Indosat 254,402
Ireland-0.1%
2,900 /1/Esat Telecom Group PLC, ADR 188,681
Israel-0.1%
12,000 /1/Orckit Communications, Inc. 348,000
Italy-0.3%
22,700 Arn Mondadori Edit 465,296
78,800 ENI SPA 431,994
TOTAL 897,290
Japan-3.9%
55,000 Asahi Bank Ltd. 386,316
6,700 Capcom Co., Ltd. 395,570
26,000 Chugai Pharmaceutical Co., Ltd. 283,766
29,000 Daiwa Securities Co., Ltd. 415,364
9,000 Daiwabo Information System Co., Ltd. 248,440
3,000 Enix Corp. 280,269
15,000 Fujitsu Ltd. 533,425
31,000 Furukawa Electric Co. 332,246
2,000 Hirose Electric Co. 334,987
3,200 Kyocera Corp. 386,974
96,000 Marubeni Corp. 374,400
2,000 Matsushita Communication 385,088
4,000 Megachips Corp. 308,463
2,000 Murata Manufacturing Co. Ltd. 332,433
9,800 Mycal Card, Inc. 471,732
16,000 NEC Corp. 374,871
33,000 Nikko Securities Co. Ltd. 411,710
2,400 Nintendo Corp. Ltd. 401,041
8,000 Nitori Co. 326,146
2,000 Sanix, Inc. 222,015
9,000 Sega Enterprises 316,518
20,000 Sharp Corp. 409,647
300 Softbank Corporation 217,201
100 /1/Softbank Technology Corp. 194,509
2,400 Sony Corp. 445,601
9,000 Taiyo Yuden Co. 394,322
65,000 Toho Bank Ltd. 295,643
51,000 Toyo Trust & Banking 271,546
4,000 Yamada Denki 412,594
7,000 Yokowo Co., Ltd. 140,282
TOTAL 10,303,119
Korea, Republic of-0.7%
18,650 /1/Haansoft Inc. 370,024
13,000 Hyundai Electronics Industries Co. 266,897
5,070 Hyundai Electronics Industries Co. 27,553
15,450 Kookmin Bank 257,222
21,501 Korea Data Systems 419,170
11,000 Korea Technology Banking Co. 149,925
550 /1/Korea Thrunet Co. Ltd., Class A 30,594
1,900 Samsung Electronics Co. 393,358
TOTAL 1,914,743
Netherlands-0.8%
3,100 /1/ASM Lithography Holding N.V. 301,468
9,879 KPN N.V. 550,542
2,550 /1/KPNQUEST N.V. 97,538
2,920 Koninklijke (Royal) Philips Electronics N.V. 355,617
9,800 Laurus N.V. 183,199
500 OpenTV Corp., ADR 38,625
4,900 Unique International N.V. 112,586
9,800 VNU - Verenigde Nederlandse Uitgeversbedrijven Verenigd 388,618
Bezit
7,850 Vendex International A 207,264
TOTAL 2,235,457
Norway-0.1%
10,450 /1/Tandberg Television 136,142
Philippines-0.0%
50 /1/Filinvest Land, Inc. 4
Portugal-0.4%
21,000 Banco Pinto & Sotto Mayor 450,766
62,500 Banco Portugues do Atlantico 251,308
17,500 Telecel - Comunicacoes Pessoais SA 231,732
TOTAL 933,806
Singapore-0.8%
27,000 Chartered Semiconductor Manufacturing 152,633
250 /1/Chartered Semiconductor Manufacturing ADR 13,313
13,000 DBS Group Holdings Ltd. 168,640
165,000 DBS Land Ltd. 322,047
114,000 Delgro Corporation Ltd. 356,144
44,000 /1/MediaRing.com Ltd. 43,463
49,000 Natsteel Electronics Ltd 202,648
255,000 Neptune Orient Lines Ltd. 379,351
18,300 Singapore Press Holdings Ltd. 343,023
TOTAL 1,981,262
Spain-0.5%
23,464 Banco Santander Central Hispano, S.A. 257,976
8,000 Continente (centros Com) 180,831
2,550 Ence Empr Nac Celulosas 48,312
454 Telefonica SA 9,461
22,704 Telefonica SA 473,157
29,000 Union Electrica Fenosa 489,222
TOTAL 1,458,959
Sweden-0.2%
3,500 /1/HIQ International AB 146,450
132,000 Rotternos AB 152,045
5,300 Telefonaktiebolaget LM Ericsson 256,964
TOTAL 555,459
Switzerland-0.1%
44 /1/Kudelski SA 203,132
United Kingdom-1.8%
6,200 AstraZeneca 276,238
32,996 BP Amoco PLC 337,012
11,893 British Telecommunication PLC 238,582
7,400 CMG PLC 391,183
16,002 Cable & Wireless PLC 203,248
24,100 /1/Cable & Wireless Communications PLC 270,939
8,500 /1/Energis PLC 346,318
31,400 Enterprise Oil 225,324
37,800 Halifax PLC 432,191
26,700 Invensys PLC 121,345
44,000 Norwich Union PLC 312,934
15,200 /1/Orange PLC 460,535
5,800 /1/PowderJect Pharmaceuticals PLC 91,842
<CAPTION>
Shares or Value
Principal in
Amount U.S.
Dollars
<S> <C> <C>
17,329 Prudential Corp. PLC 286,009
23,170 Smithkline Beecham PLC 311,472
70,040 Vodafone AirTouch PLC 330,042
TOTAL 4,635,214
TOTAL FOREIGN STOCKS 35,136,360
FUTURES CONTRACTS COLLATERAL-8.3%/2/
$ 21,955,128 United States Treasury Bill, 12/16/1999 21,977,325
TOTAL STOCKS (IDENTIFIED COST $153,590,455) 163,865,019
BONDS-36.7%
TREASURY AND GOVERNMENT SECURITIES-12.9%
Repurchase Agreement-3.2%/3/
8,450,000 Societe Generale, New York, 5.680%, dated 11/30/1999, 8,450,000
due 12/1/1999 (at amortized cost)
U.S. Treasury Securities-9.7%
5,444,872 United States Treasury Bill, 12/16/1999 5,395,001
2,200,000 United States Treasury Bond, 8.875%, 8/15/2017 2,708,552
493,000 United States Treasury Note, 5.750%, 8/15/2003 487,064
10,105,000 United States Treasury Note, 6.000%, 8/15/2009 9,980,203
675,000 United States Treasury Note, 6.250%, 2/15/2003 677,970
6,405,000 United States Treasury Note, 6.500%, 10/15/2006 6,480,899
TOTAL 25,729,689
TOTAL TREASURY AND GOVERNMENT SECURITIES 34,179,689
HIGH YIELD BONDS-4.7%/4/
1,433,061 The High Yield Bond Portfolio 12,496,294
MORTGAGE-BACKED SECURITIES-7.8%/4/
2,135,014 Federated Mortgage Core Portfolio 20,581,534
INVESTMENT GRADE BONDS-7.5%
Automobile-0.2%
205,000 Arvin Capital, 9.50%, 2/1/2027 196,406
450,000 Dana Corp., Note, 7.%, 3/15/2028 400,820
TOTAL 597,226
Banking-0.7%
100,000 City National Bank, Sub. Note, 6.375%, 1/15/2008 92,612
<CAPTION>
Principal Value
Amount in
U.S.
Dollars
<S> <C> <C>
$ 330,000 /5/Den Danske Bank, Note, 7.40% 6/15/2010 324,383
250,000 National Bank of Canada, Sub. Note, 8.125%, 8/15/2004 257,348
375,000 Republic New York Corp., Sub. Note, 7.75%, 5/15/2009 377,078
500,000 Santander Finance Issuances, Bank Guarantee, 7.875%, 508,945
4/15/2005
330,000 /5/Swedbank, Sub., 7.50% 11/29/2049 314,033
TOTAL 1,874,399
Beverage & Tobacco-0.2%
50,000 Philip Morris Cos., Inc., Deb., 6.00%, 7/15/2001 48,706
450,000 Phillip Morris Cos., Inc., Deb., 9.25%, 2/15/2000 452,201
TOTAL 500,907
Cable Television-0.4%
960,000 Continental Cablevision, Sr. Deb., 9.5%, 8/1/2013 1,073,203
Chemicals & Plastic-0.2%
500,000 /5/Bayer Corp., Deb., 6.5%, 10/1/2002 495,865
Consumer Products-0.2%
450,000 /5/International Speedway, Series C, 7.875%, 10/15/2004 448,142
Education-0.2%
500,000 Boston University, 7.625%, 7/15/2097 463,195
Electronics-0.3%
700,000 Anixter Intl., Inc., Company Guarantee, 8%, 9/15/2003 687,974
Finance-Automotive-0.2%
470,000 General Motors Acceptance, Sr. Note, 5.75%, 11/10/2003 450,114
Finance-Retail-0.2%
550,000 Sears, Roebuck & Co., Medium Term Note, 7.32%, 4/24/2000 551,931
Financial Intermediaries-0.7%
600,000 Capital One Financial, Note, 7.125%, 8/01/2008 552,444
450,000 DLJ, Note, 6.875%, 11/1/2005 438,332
250,000 Lehman Brothers Holdings Inc, Note, 6.9%, 1/29/2001 249,773
300,000 Lehman Brothers Holdings, Bond, 6.20%, 1/15/2002 294,300
300,000 Lehman Brothers, Inc., Sr. Sub. Note, 7.375%, 1/15/2007 295,491
150,000 Salomon, Inc., Note, 7.2%, 2/1/2004 150,120
TOTAL 1,980,460
Food & Drug Retailers-0.1%
175,000 Meyer (Fred), Inc., Company Guarantee, 7.45%, 3/01/2008 173,903
Forest Products-0.2%
180,000 Fort James Corp., Sr. Note, 7.65%, 12/26/2000 181,687
450,000 Quno Corp., Sr. Note, 9.125%, 5/15/2005 473,976
TOTAL 655,663
Government Agency-0.3%
840,000 TVA, 8.625%, 11/15/2029 906,998
Healthcare-0.2%
400,000 COL HCA Healthcare Corp, Sr. Note, 6.41%, 6/15/2000 397,704
Insurance-0.8%
225,000 Conseco, Inc., Sr. Note, 10.5%, 12/15/2004 242,566
450,000 Conseco, Inc., Sr. Sub. Note, 10.25%, 6/01/2002 466,193
465,000 Geico Corp, Deb., 9.15%, 9/15/2021 501,940
450,000 Provident Cos., Inc., Bond, 7.405%, 3/15/2038 384,381
250,000 Sunamerica Inc, Medium Term Note, 7.34%, 8/30/2005 250,763
100,000 SUSA Partnership, L.P., Deb., 7.50%, 12/1/2027 83,796
250,000 /5/USF&G Cap, 8.312%, 7/1/2046 249,425
TOTAL 2,179,064
Leisure & Entertainment-0.2%
500,000 Viacom, Inc., Sr. Note, 7.75%, 6/1/2005 510,160
Metals & Mining-0.2%
275,000 Barrick Gold Corp., Deb., 7.5%, 5/1/2007 275,721
250,000 Santa Fe Pacific Gold, Note, 8.375%, 7/01/2005 241,403
TOTAL 517,124
Pharmaceutical-0.2%
550,000 American Home Products Corp., Note, 7.7%, 2/15/2000 551,931
Printing & Publishing-0.1%
360,000 News America Holdings, Sr. Note, 8.50%, 2/15/2005 374,454
Retailers-0.4%
400,000 Harcourt General, Sr. Deb., 7.20%, 8/1/2027 351,996
540,000 Safeway, Inc., Note, 7.25%, 9/15/2004 539,460
105,000 Sears Roebuck Acceptance, Medium Term Note, 6.56%, 104,896
9/05/2000
TOTAL 996,352
Foreign Value
Currency Par in
Amount or U.S.
Principal Dollars
Amount
<S> <C> <C>
Sovereign-0.6%
535,000 Colombia, Government of, Note, 7.25%, 2/15/2003 485,513
500,000 Export-Import Bank Korea, Note, 6.5%, 5/15/2000 497,662
530,000 South Africa, Government of, Global Bond Deb., 9.625%, 530,975
12/15/1999
TOTAL 1,514,150
Technology Services-0.2%
500,000 Dell Computer Corp., Deb., 7.1%, 4/15/2028 465,595
100,000 Paramount Communications Inc, Sr. Deb., 8.25%, 8/1/2022 99,450
TOTAL 565,045
Telecommunications & Cellular-0.5%
800,000 BellSouth Telecommunication, Note, 6.0%, 6/15/2002 786,512
540,000 Telecom de Puerto Rico, Note, 6.65%, 5/15/2006 514,615
TOTAL 1,301,127
TOTAL INVESTMENT GRADE BONDS 19,767,091
FOREIGN BONDS-3.8%
Australian Dollar-0.2%
340,000 Queensland, State of, 8%, 9/14/2007 231,339
213,000 Queensland, State of, Deb., 10.5%, 5/15/2003 151,708
310,000 West Australia, State of, Local Government Guarantee, 205,890
8%, 7/15/2003
TOTAL 588,937
Austrian Schilling-0.2%
915,000 Austria, Government of, Unsub., 6.5%, 1/10/2024 496,209
Belgian Franc-0.0%
63,708 Belgium, Government of, Bond, 6.5%, 3/31/2005 68,561
British Pound-0.4%
303,000 British Gas PLC, 8.875%, 7/8/2008 546,197
210,000 United Kingdom, Government of, Bond, 8%, 12/07/2015 452,318
TOTAL 998,515
Canadian Dollar-0.3%
569,000 Canada, Government of, Deb., 6.50%, 6/1/2004 391,793
400,000 Ontario Hydro, 9.00%, 6/24/2002 290,493
TOTAL 682,286
Foreign Value
Currency Par in
Amount U.S.
Dollars
<S> <C> <C>
Danish Krone-0.1%
1,200,000 Denmark, Government of, 8%, 5/15/2003 177,798
Deutsche Mark-0.3%
132,935 Depfa-Bank, 5.5%, 1/15/2013 130,616
410,567 Germany, Government of, Deb., 6.25%, 1/04/2024 432,988
255,645 KFW International Finance, Bank Guarantee, 6.75%, 279,888
6/20/2005
TOTAL 843,492
French Franc-0.1%
245,138 France, Government of, 8.5%, 10/25/2019 329,724
Greek Drachma-0.3%
181,800,000 Greece, Government of, Floating Rate Note, 10.24% 571,060
10/23/2003
23,000,000 Greece, Government of, Floating Rate Note, 12.40%, 72,281
11/26/2003
TOTAL 643,341
Hungarian Forint-0.1%
25,000,000 Hungary, Government of, Bond, 14%, 12/12/2002 104,352
50,000,000 Hungary, Government of, Series HUNG, 9.5%, 2/12/2009 196,301
TOTAL 300,653
Irish Pound-0.2%
450,757 Ireland, Government of, Deb., 9%, 9/01/2006 554,254
Italian Lira-0.3%
632,658 Italy, Government of, 9.5%, 1/01/2005 765,073
Netherlands Guilder-0.2%
220,000 Baden Wurt L-Finance N.V., Bank Guarantee, 6%, 1/25/2006 117,323
350,000 Netherlands, Government of, 5.5%, 1/15/2028 333,666
136,134 Netherlands, Government of, 6%, 1/15/2006 144,391
TOTAL 595,380
New Zealand Dollar-0.0%
205,000 New Zealand, Government of, 8%, 2/15/2001 107,018
Norwegian Krone-0.2%
730,000 Norway, Government of, 5.5%, 5/15/2009 86,508
1,620,000 Norway, Government of, Bond, 7%, 5/31/2001 204,219
1,215,000 Norway, Government of, Foreign Government Guarantee, 149,862
5.75%, 11/30/2004
TOTAL 440,589
Polish Zloty-0.3%
1,460,000 Poland, Government of, Bond, 12%, 10/12/2003 332,029
730,000 Poland, Government of, Bond, Series 0603, 12%, 6/12/2003 164,642
850,000 Poland, Government of, Series 0604, 10%, 6/12/2004 184,118
TOTAL 680,789
Portugese Escutos-0.1%
330,000 Portugal, Government of, Ot's, 6.625%, 2/23/2007 359,162
Spanish Peseta-0.4%
240,404 Spain, Government of, 10%, 2/28/2005 297,544
781,315 Spain, Government of, 6.15%, 1/31/2013 828,186
TOTAL 1,125,730
Swedish Krona-0.1%
700,000 Sweden, Government of, Deb., 13%, 6/15/2001 92,300
800,000 Sweden, Government of, Deb., 9%, 4/20/2009 116,472
TOTAL 208,772
TOTAL FOREIGN BONDS 9,966,283
TOTAL BONDS (IDENTIFIED COST $72,410,637) 96,990,891
TOTAL INVESTMENTS (IDENTIFIED COST $226,001,092)/6/ $ 260,855,910
</TABLE>
/1/ Non-income producing security.
/2/ The Fund purchases index futures contracts to efficiently manage cash flows
resulting from shareholder purchases and redemptions, dividends and capital
gain payment to shareholders and corporate actions while maintaining
exposure to the index and to minimize trading costs. The underlying face
amount, at value, of open index futures contracts is $21,977,325 at
November 30, 1999.
/3/ The repurchase agreements are fully collateralized by U.S. Treasury
obligations based on market prices at the date of the portfolio. The
investment in the repurchase agreement are through participation in joint
accounts with other Federated funds.
/4/ Pursuant to an Exemptive order, the Fund may invest in Federated Core Trust
(the "Trust") which is also managed by Federated Investment Management
Company, the Fund's adviser. The Trust is an open-end management investment
company under the Investment Company Act of 1940 available only registered
investment companies and other institutional investors. High Yield Bond
Portfolio and Federated Mortgage Core Portfolio (the "Portfolios") are two
series of the Trust. Federated receives no fees on behalf of the
Portfolios. Income distributions from the Portfolios are declared daily and
paid monthly. Income distributions earned by the Fund are recorded as
dividend income in the accompanying financial statements.
/5/ Denotes a restricted security which is subject to restrictions on resale
under Federal Securities laws. These securities have been deemed liquid
based upon criteria approved by the Fund's Board of Trustees. At November
30, 1999, these securities amounted to $1,831,848 which represents 0.7% of
net assets.
/6/ The cost of investments for federal tax purposes amounts to $226,591,989.
The net unrealized appreciation of investments on a federal tax basis
amounts to $34,263,921 which is comprised of $44,307,916 appreciation and
$10,043,995 depreciation at November 30, 1999.
Note: The categories of investments are shown as a percentage of net assets
($264,525,856) at November 30, 1999.
The following acronyms are used throughout this portfolio:
ADR -American Depositary Receipt
COL -Collateralized
GDR -Global Depositary Receipt
MBIA -Municipal Bond Investors Assurance
SPA -Standby Purchase Agreement
See Notes which are an integral part of the Financial Statements
Portfolio of Investments
Federated Managed Growth Portfolio
(FORMERLY, FEDERATED MANAGED AGGRESSIVE GROWTH FUND)
NOVEMBER 30, 1999
<TABLE>
<CAPTION>
Shares
Value in
U.S.
Dollars
<S> <C> <C>
STOCKS-81.1%
LARGE-CAP VALUE STOCKS-21.6%
Basic Materials-1.3%
4,800 Air Products & Chemicals, Inc.
$ 155,400
5,700 Alcoa,
Inc. 373,350
22,821 Archer-Daniels-Midland
Co. 283,836
3,000 Bemis Co.,
Inc. 94,500
3,400 Dow Chemical
Co. 398,225
4,260 Du Pont (E.I.) de Nemours &
Co. 253,204
3,200 Hercules,
Inc. 76,000
3,400 International Paper
Co. 177,437
3,500 Martin Marietta
Materials 132,781
1,900 PPG Industries,
Inc. 111,269
TOTAL 2,056,002
Capital Goods-1.4%
6,800 Boeing
Co. 277,525
4,200 Caterpillar,
Inc. 194,775
2,400 Cooper Industries,
Inc. 103,050
3,200 Crown Cork & Seal Co.,
Inc. 65,200
5,100 Dover
Corp. 221,212
2,300 Emerson Electric
Co. 131,100
3,300 Hillenbrand Industries,
Inc. 112,819
4,700 Ingersoll-Rand
Co. 227,656
3,000 Johnson Controls,
Inc. 163,500
3,100 Minnesota Mining & Manufacturing
Co. 296,244
2,600 Northrop Grumman,
Corp. 146,087
5,900 Parker-Hannifin
Corp. 277,669
TOTAL 2,216,837
Communication Services-3.7%
21,565 AT&T
Corp. 1,204,944
17,200 Bell Atlantic
Corp. 1,088,975
9,900 BellSouth
Corp. 457,256
10,400 GTE
Corp. 759,200
12,678 /1/MCI Worldcom,
Inc. 1,048,312
15,780 SBC Communications,
Inc. 819,574
4,600 Sprint Corp. (FON
Group) 319,125
6,000 U.S. West,
Inc. 372,375
TOTAL 6,069,761
Consumer Cyclicals-1.1%
8,500 Ford Motor
Co. 429,250
2,900 Gannett Co.,
Inc. 207,531
4,800 General Motors
Corp. 345,600
16,500 /1/K Mart
Corp. 163,969
4,520 Limited,
Inc. 191,817
7,400 Masco
Corp. 186,850
2,550 May Department Stores
Co. 85,744
3,100 Sears, Roebuck &
Co. 105,981
8,900 Service Corp.
International 67,306
TOTAL 1,784,048
Consumer Staples-1.8%
1,600 /1/AMFM,
Inc. 113,100
8,321 CBS
Corp. 432,692
3,500 Dole Food,
Inc. 56,000
6,400 Kimberly-Clark
Corp. 408,800
10,700 McDonald's
Corp. 481,500
600 /1/MediaOne Group,
Inc. 47,550
7,300 Nabisco Group Holdings
Corp. 84,406
18,000 Philip Morris Cos.,
Inc. 473,625
11,800 UST,
Inc. 314,175
20,100 Walt Disney
Co. 560,288
TOTAL 2,972,136
Energy-2.4%
3,800 Atlantic Richfield
Co. 366,225
5,400 /1/BJ Services
Co. 188,325
5,100 Chevron
Corp. 451,669
6,018 Conoco, Inc., Class
B 157,596
16,500 Exxon
Corp. 1,308,656
4,500 Mobil
Corp. 469,406
10,000 Occidental Petroleum
Corp. 219,375
3,200 Phillips Petroleum
Co. 153,000
6,600 Sunoco,
Inc. 168,712
2,000 Texaco,
Inc. 121,875
8,400 USX-Marathon
Group 222,075
TOTAL 3,826,914
Financials-6.0%
12,400 Allstate
Corp. 324,725
1,900 American Express
Co. 287,494
11,126 American International Group,
Inc. 1,148,760
12,194 Bank of America
Corp. 713,349
6,000 Bank of New York Co.,
Inc. 239,250
2,867 Bear Stearns Cos.,
Inc. 116,989
4,700 CIGNA
Corp. 386,575
5,300 Chase Manhattan
Corp. 409,425
27,275 Citigroup,
Inc. 1,469,441
8,100 Fannie
Mae 539,663
11,800 First Union
Corp. 456,512
9,126 Fleet Boston Financial
Corp. 345,077
5,300 /1/Golden State Bancorp,
Inc. 103,019
4,400
KeyCorp 118,800
3,000 Loews
Corp. 192,000
4,200 MBIA,
Inc. 210,000
2,000 MGIC Investment
Corp. 113,000
4,750 Marsh & McLennan Cos.,
Inc. 373,469
7,600 Mellon Financial
Corp. 276,925
1,000 Merrill Lynch & Co.,
Inc. 80,625
1,100 Morgan, J.P. & Co.,
Inc. 144,650
4,300 Morgan Stanley, Dean Witter, Discover &
Co. 518,687
6,900 Old Republic International
Corp. 86,250
2,800 PNC Bank
Corp. 156,100
2,300 SunTrust Banks,
Inc. 160,712
4,100 Torchmark
Corp. 130,175
8,400 Washington Mutual,
Inc. 243,600
7,400 Wells Fargo
Co. 344,100
TOTAL 9,689,372
Health Care-0.5%
6,100 American Home Products
Corp. 317,200
9,600 Pharmacia & Upjohn,
Inc. 525,000
TOTAL 842,200
Technology-2.0%
5,100 Eastman Kodak
Co. 315,562
4,200 Electronic Data Systems
Corp. 270,112
9,200 First Data
Corp. 397,900
6,100 Hewlett-Packard
Co. 578,738
12,800 International Business Machines
Corp. 1,319,200
2,500 Motorola,
Inc. 285,625
5,400 Raytheon Co., Class
A 157,275
TOTAL 3,324,412
Transportation-0.4%
2,900 /1/AMR
Corp. 176,537
9,600 Burlington Northern Santa
Fe 278,400
8,700 Ryder Systems,
Inc. 196,294
TOTAL 651,231
Utilities-1.0%
6,100 CMS Energy
Corp. 202,825
7,300 Coastal
Corp. 257,325
4,350 Columbia Energy
Group 272,962
4,400 Constellation Energy
Group 129,525
3,300 Dominion Resources,
Inc. 149,737
8,700 Reliant Energy,
Inc. 215,869
8,400 Southern
Co. 196,350
5,900 Texas Utilities
Co. 211,294
TOTAL 1,635,887
TOTAL LARGE-CAP VALUE
STOCKS 35,068,800
SMALL-CAP VALUE STOCKS-4.0%
Basic Materials-0.3%
1,400 Cambrex
Corp. 44,100
1,000 ChemFirst,
Inc. 23,375
800 Commercial Metals
Corp. 25,600
900 Commonwealth Industries,
Inc. 11,587
2,100 Corn Products International,
Inc. 65,887
1,000 Florida Rock Industries,
Inc. 31,250
900 Imco Recycling,
Inc. 11,587
1,300 Lilly Industries, Inc., Class
A 18,119
800 /1/Material Sciences
Corp. 8,750
600 /1/McWhorter Technologies,
Inc. 8,250
1,300 OM Group,
Inc. 43,875
400 Penford
Corporation 6,050
700 Pope & Talbot,
Inc. 8,356
500 Quaker Chemical
Corp. 7,812
800 Quanex
Corp. 16,950
700 Republic Group,
Inc. 11,112
600 Steel Technologies,
Inc. 6,750
1,200 Texas Industries,
Inc. 43,500
900 /1/WHX
Corp. 7,987
TOTAL 400,897
Capital Goods-0.6%
1,500 AAR
Corp. 24,750
1,500 AMCOL International
Corp. 26,625
2,200 Applied Power, Inc., Class
A 70,262
2,000 Aptargroup,
Inc. 54,250
1,400 /1/BE Aerospace,
Inc. 9,800
1,500 BMC Industries,
Inc. 8,156
900 /1/Benchmark Electronics,
Inc. 20,025
1,200 Brady (W.H.)
Co. 36,825
400 Butler Manufacturing
Co. 8,575
1,300 CLARCOR,
Inc. 22,587
1,700 /1/Checkpoint System,
Inc. 13,494
700 /1/Electro Scientific Industries,
Inc. 40,906
800 /1/Flow International
Corp. 8,200
800 /1/Gardner Denver,
Inc. 13,100
1,200 /1/Global Industrial Technologies,
Inc. 15,150
700 /1/HADCO
Corp. 33,075
1,000 Harman International Industries,
Inc. 51,500
600 Harmon Industries,
Inc. 7,425
500 Insteel Industries,
Inc. 4,219
700 /1/Intermagnetics General
Corp. 4,681
800 /1/Itron,
Inc. 5,050
1,300 Kaman Corp., Class
A 15,437
2,200 /1/Kemet
Corp. 79,750
600 Lawson Products,
Inc. 13,650
900 /1/Lydall,
Inc. 8,044
2,900 /1/Morrison Knudsen
Corp. 25,194
2,000 /1/Mueller Industries,
Inc. 72,000
1,110 Myers Industries,
Inc. 16,650
300 /1/Nashua
Corp. 2,212
600 Park Electrochemical
Corp. 19,725
2,600 /1/Paxar
Corp. 22,100
1,550 Reliance Steel & Aluminum
Co. 37,781
700 /1/SPS Technologies,
Inc. 22,925
1,300 Smith (A.O.)
Corp. 28,600
700 Spartan Motors,
Inc. 2,931
700 Standex International
Corp. 14,787
700 /1/Stone & Webster,
Inc. 11,462
900 Technitrol,
Inc. 38,587
900 Thomas Industries,
Inc. 14,512
500 /1/Three-Five Systems,
Inc. 21,250
900 URS
Corp. 17,550
1,300 Valmont Industries,
Inc. 23,075
1,300 Wabash National
Corp. 19,094
1,600 Watsco,
Inc. 17,400
TOTAL 1,023,371
Communication Services-0.0%
2,800 /1/General Communications, Inc., Class
A 11,550
Consumer Cyclicals-0.8%
500 Angelica
Corp. 5,000
1,200 Applied Industrial Technologies,
Inc. 20,550
1,400 Arctic Cat,
Inc. 14,350
1,300 Authentic Fitness
Corp. 26,894
800 Baker (J.),
Inc. 4,100
700 Bassett Furniture Industries,
Inc. 11,156
2,000 /1/Bombay Co.,
Inc. 10,000
1,000 /1/Books-A-Million,
Inc. 10,375
1,000 Brown Shoe Co.,
Inc. 15,750
700 /1/Building Materials Holding
Corp. 6,912
2,900 Casey's General Stores,
Inc. 36,975
1,500 Cato Corp., Class
A 19,687
1,900 /1/Cerner
Corp. 36,100
2,700 /1/Champion Enterprises,
Inc. 23,119
600 Chemed
Corp. 15,600
900 Coachmen Industries,
Inc. 12,881
1,400 /1/Cone Mills
Corp. 6,912
900 /1/Cyrk International,
Inc. 6,637
3,500 D. R. Horton,
Inc. 48,125
300 /1/Damark International, Inc., Class
A 2,925
900 /1/Discount Auto Parts,
Inc. 12,431
600 Dixie Group,
Inc. 4,162
1,100 /1/Dress Barn,
Inc. 18,769
2,000 Fedders
Corp. 10,750
1,800 /1/Goody's Family Clothing,
Inc. 11,925
700 /1/Gottschalks,
Inc. 6,300
1,200 /1/Group 1 Automotive,
Inc. 17,400
2,700 /1/HA-LO Industries,
Inc. 16,875
400 Haggar
Corp. 4,850
1,300 Hughes Supply,
Inc. 30,794
1,600 /1/Information Resources,
Inc. 16,000
600 /1/Insurance Automotive Auctions,
Inc. 8,700
1,400 Intermet
Corp. 14,175
1,500 /1/Jan Bell Marketing,
Inc. 4,219
1,000 Jo-Ann Stores,
Inc. 13,062
1,400 Justin Industries,
Inc. 21,787
600 K Swiss, Inc., Class
A 8,550
900 K2,
Inc. 6,637
1,500 Kellwood
Co. 31,125
500 Lillian Vernon
Corp. 6,000
1,200 M.D.C. Holdings,
Inc. 17,925
1,600 /1/Michaels Stores,
Inc. 50,200
1,200 /1/NFO Worldwide,
Inc. 15,675
1,900 Nautica Enterprise,
Inc. 24,937
400 Oxford Industries,
Inc. 8,525
1,500 Phillips Van Heusen
Corp. 12,750
800 Pillowtex
Corp. 3,200
1,100 /1/Primark
Corp. 29,219
2,900 /1/Prime Hospitality
Corp. 25,194
1,100 Russ Berrie & Co.,
Inc. 28,050
800 Ryland Group,
Inc. 18,200
1,000 /1/Service Experts,
Inc. 6,250
1,600 Shopko Stores,
Inc. 36,300
1,000 Simpson Industries,
Inc. 10,531
500 Skyline
Corp. 12,406
700 Standard Motor Products,
Inc. 12,819
1,600 Standard Pacific
Corp. 17,600
2,500 /1/Stein Mart,
Inc. 15,156
2,600 Stride Rite
Corp. 16,575
1,500 Sturm Ruger & Co.,
Inc. 13,500
400 /1/Swiss Army Brands,
Inc. 3,250
1,200 /1/TBC
Corp. 7,050
900 TJ International,
Inc. 37,519
800 Thomas Nelson,
Inc. 7,100
700 Thor Industries,
Inc. 19,556
2,000 /1/Toll Brothers,
Inc. 35,750
700 Toro
Co. 22,706
2,600 /1/Tower Automotive,
Inc. 39,000
700 /1/U.S. Home
Corp. 18,025
1,100 Universal Forest Products,
Inc. 16,912
2,300 Wolverine World Wide,
Inc. 25,156
1,000 Wynns International,
Inc. 15,125
2,000 /1/Zale
Corp. 101,250
TOTAL 1,321,970
Consumer Staples-0.4%
1,200 ABM Industries,
Inc. 25,800
600 /1/Agribrands International,
Inc. 28,237
1,833 Bindley Western Industries,
Inc. 24,287
1,100 /1/CDI
Corp. 26,675
2,900 CKE Restaurants,
Inc. 18,669
1,000 /1/Canandaigua Wine Co., Inc., Class
A 53,250
600 /1/Carmike Cinemas, Inc., Class
A 7,500
2,400 Earthgrains
Co. 43,500
400 /1/GC Cos.,
Inc. 11,275
1,100 /1/IHOP
Corp. 17,050
3,640 /1/Interim Services,
Inc. 67,112
500 /1/J & J Snack Foods
Corp. 9,375
1,400 /1/Landrys Seafood Restaurants,
Inc. 12,337
1,200 Luby's Cafeterias,
Inc. 13,950
1,100 Michael Foods,
Inc. 27,569
3,700 /1/NBTY,
Inc. 36,191
600 Nash Finch
Co. 4,350
400 National Presto Industries,
Inc. 14,100
1,800 Owens & Minor,
Inc. 16,875
700 /1/Panera Bread
Co. 5,425
800 /1/Performance Food Group
Co. 20,000
805 /1/Priority HealthCare Corp., Class
A 16,905
1,700 /1/Ralcorp Holdings,
Inc. 33,256
1,000 /1/Royal Appliance
Manufacturing 5,812
2,000 /1/Ryan's Family Steak Houses,
Inc. 19,750
900 Schweitzer-Mauduit International,
Inc. 11,925
2,300 /1/Smithfield Foods,
Inc. 58,937
1,600 /1/StaffMark,
Inc. 12,750
800 /1/Volt Information Science,
Inc. 17,850
TOTAL 660,712
Energy-0.1%
1,400 Cabot Oil & Gas Corp., Class
A 21,437
1,000 /1/Dril-Quip,
Inc. 24,625
89 /1/Eagle Geophysical,
Inc. 4
1,000 /1/HS Resources,
Inc. 12,937
1,200 /1/Remington Oil & Gas
Corp. 6,000
700 /1/SEACOR SMIT,
Inc. 36,312
1,300 /1/Seitel,
Inc. 8,775
600 St. Mary Land & Exploration
Co. 12,525
3,400 Vintage Petroleum,
Inc. 36,337
TOTAL 158,952
Financials-0.6%
1,300 Banknorth Group,
Inc. 39,609
1,400 Carolina First
Corporation 28,612
2,600 Community First Bankshares,
Inc. 47,287
700 Dain Rauscher
Corp. 34,081
1,168 /1/Delphi Financial Group, Inc., Class
A 36,237
1,600 Downey Financial
Corp. 32,200
2,100 Enhance Financial Services Group,
Inc. 35,962
1,700 Fidelity National Financial,
Inc. 25,606
3,600 First American Financial
Corp. 46,350
3,900 Fremont General
Corp. 19,744
1,400 /1/Hambrecht & Quist
Group 69,650
500 JSB Financial,
Inc. 29,562
1,300 MAF Bancorp,
Inc. 28,844
1,370 Provident Bankshares
Corp. 27,143
2,000 Radian Group,
Inc. 97,750
2,600 Raymond James Financial,
Inc. 48,912
1,600 Riggs National
Corp. 22,700
1,200 /1/Silicon Valley
Bancshares 44,175
2,000 Susquehanna Bankshares,
Inc. 34,625
2,400 UST
Corp. 75,750
2,400 United Bankshares,
Inc. 59,400
1,300 Whitney Holding
Corp. 49,400
TOTAL 933,599
Health Care-0.2%
800 Cooper Companies,
Inc. 20,200
3,300 /1/Coventry Health Care
Inc. 18,975
800 /1/Datascope
Corp. 29,675
800 Diagnostic Products
Corp. 20,150
1,000 /1/Hanger Orthopedica Group,
Inc. 10,250
1,600 Invacare
Corp. 33,700
1,100 /1/NCS HealthCare, Inc., Class
A 2,922
2,700 /1/Orthodontic Centers of America,
Inc. 32,906
900 /1/Pediatrix Medical
Group 6,975
1,700 /1/Regeneron Pharmaceuticals,
Inc. 12,962
1,800 /1/Roberts Pharmaceutical
Corp. 58,162
800 /1/Rural / Metro
Corp. 4,550
1,400 /1/Sola International,
Inc. 19,950
500 /1/SpaceLabs Medical,
Inc. 6,937
4,700 /1/US Oncology,
Inc. 22,178
1,400 /1/Vertex Pharmaceuticals,
Inc. 37,187
700 Vital Signs,
Inc. 16,275
TOTAL 353,954
Technology-0.4%
700 Analogic
Corp. 20,891
2,000 /1/Anixter International,
Inc. 40,750
1,300 /1/Avid Technology,
Inc. 14,381
304 Avnet,
Inc. 16,701
1,600 /1/Cable Design Technologies, Class
A 38,300
300 /1/Centigram Communications
Corp. 4,200
1,300 /1/Coherent,
Inc. 34,450
800 /1/Digi International,
Inc. 12,900
1,100 /1/Electroglas,
Inc. 31,316
2,300 /1/Epicor Software
Corp. 13,441
1,800 /1/Filenet
Corp. 36,000
1,200 Gerber Scientific,
Inc. 23,100
1,400 /1/Hutchinson Technology,
Inc. 25,900
2,900 /1/International Rectifier
Corp. 58,725
1,300 /1/Kulicke & Soffa
Industries 46,394
1,000 /1/Lason Holdings,
Inc. 24,375
2,600 /1/Lattice Semiconductor
Corp. 116,350
1,500 Pioneer Standard Electronics,
Inc. 20,250
4,000 /1/S3,
Inc. 33,500
1,800 /1/Silicon Valley Group,
Inc. 25,762
900 /1/Standard Microsystems
Corp. 11,025
800 /1/Symmetricom,
Inc. 6,150
1,200 /1/Ultratech Stepper,
Inc. 22,725
400 Watkins Johnson
Co. 15,525
TOTAL 693,111
Transportation-0.2%
1,800 /1/American Freightways
Corp. 31,162
1,100 /1/Arkansas Best
Corp. 13,750
2,000 /1/Fritz Companies,
Inc. 19,750
1,700 /1/Heartland Express,
Inc. 25,075
700 /1/M.S. Carriers,
Inc. 18,375
1,900 /1/Mesa Air Group,
Inc. 9,737
1,200 Pittston BAX
Group 11,400
500 /1/Railtex,
Inc. 8,437
3,200 Rollins Truck Leasing
Corp. 37,600
1,400 SkyWest,
Inc. 34,300
1,500 USFreightways
Corp. 62,625
2,600 Werner Enterprises,
Inc. 39,000
1,400 Yellow
Corp. 23,537
TOTAL 334,748
Utilities-0.4%
500 American States Water
Co. 18,969
600 Aquarion
Co. 22,050
1,700 Atmos Energy
Corp. 37,931
400 Bangor Hydro Electric
Co. 6,425
600 Cascade Natural Gas
Corp. 10,537
900 Central Hudson Gas & Electric
Corp. 30,094
600 Central VT Public Service
Corp. 7,425
600 Connecticut Energy
Corp. 23,662
1,100 Eastern Utilities
Association 33,412
1,600 Energen
Corp. 30,800
1,000 New Jersey Resources
Corp. 40,250
1,400 Northwest Natural Gas
Co. 35,175
1,300 Northwestern
Corp. 27,462
954 /1/Southern Union
Co. 18,365
1,700 Southwest Gas
Corp. 39,844
1,400 Southwestern Energy
Co. 10,412
700 TNP Enterprises,
Inc. 28,569
800 United Illuminating
Co. 41,400
2,100 United Water Resources,
Inc. 70,350
2,100 WICOR,
Inc. 63,000
TOTAL 596,132
TOTAL SMALL-CAP VALUE
STOCKS 6,488,996
LARGE-CAP GROWTH STOCKS-22.1%
Basic Materials-0.1%
3,400 Monsanto
Co. 143,437
Capital Goods-2.3%
4,600 Allied-Signal,
Inc. 275,138
3,000 Avery Dennison
Corp. 178,125
19,300 General Electric
Co. 2,509,000
5,500 Miller Herman,
Inc. 125,813
2,100 /1/SCI Systems,
Inc. 142,538
6,600 United Technologies
Corp. 372,900
3,412 Waste Management,
Inc. 55,445
TOTAL 3,658,959
Communication Services-0.4%
3,500 BroadWing
Inc. 101,938
10,000 Vodafone AirTouch PLC,
ADR 471,875
TOTAL 573,813
Consumer Cyclicals-2.0%
2,300 /1/Abercrombie & Fitch Co., Class
A 74,463
3,400 Block (H&R),
Inc. 146,200
3,500 /1/Convergys
Corp. 95,594
1,800 Costco Wholesale
Corp. 165,038
2,900 Dayton-Hudson
Corp. 204,631
4,725 Gap (The),
Inc. 191,363
3,500 Harley Davidson,
Inc. 213,500
7,900 Home Depot,
Inc. 624,594
2,600 Lowe's Cos.,
Inc. 129,513
2,100 Maytag
Corp. 100,144
4,350 /1/Staples,
Inc. 102,225
10,200 TJX Cos.,
Inc. 267,113
17,200 Wal-Mart Stores,
Inc. 991,150
TOTAL 3,305,528
Consumer Staples-3.4%
5,000 /1/AT&T Corp. - Liberty Media Group, Inc., Class
A 209,063
3,100 Avon Products,
Inc. 112,956
6,400 Campbell Soup
Co. 285,600
1,500 Cardinal Health,
Inc. 78,469
13,000 Coca-Cola
Co. 875,063
2,400 Colgate-Palmolive
Co. 131,700
3,800 Comcast Corp., Class
A 171,713
6,900 Dial
Corp. 193,631
4,200 Gillette
Co. 168,788
3,000 Heinz (H.J.)
Co. 125,625
5,106 McKesson HBOC,
Inc. 119,353
9,200 PepsiCo,
Inc. 317,975
8,300 Procter & Gamble
Co. 896,400
3,300 Quaker Oats
Co. 215,325
8,700 /1/Safeway,
Inc. 320,813
7,400 Sara Lee
Corp. 179,450
3,500 Sysco
Corp. 133,219
8,900 Time Warner,
Inc. 549,019
5,100 /1/Tricon Global Restaurants,
Inc. 211,650
5,000 /1/Viacom, Inc., Class
A 249,063
TOTAL 5,544,875
Energy-0.1%
3,300 Halliburton
Co. 127,669
Financials-0.6%
4,486 Associates First Capital Corp., Class
A 149,160
3,600 Household International,
Inc. 142,425
11,000 MBNA
Corp. 277,750
3,450 Providian Financial
Corp. 272,981
2,700 Schwab (Charles)
Corp. 102,431
TOTAL 944,747
Health Care-4.0%
8,900 Abbott
Laboratories 338,200
9,200 /1/Amgen,
Inc. 419,175
1,800 Baxter International,
Inc. 121,613
12,600 Bristol-Myers Squibb
Co. 920,588
6,600 Guidant
Corp. 330,000
4,000 /1/HEALTHSOUTH,
Corp. 22,750
7,200 Johnson &
Johnson 747,000
4,000 Lilly (Eli) &
Co. 287,000
10,448 Medtronic,
Inc. 406,179
16,000 Merck & Co.,
Inc. 1,256,000
12,900 Pfizer,
Inc. 466,819
8,600 Schering Plough
Corp. 439,675
3,100 United Healthcare
Corp. 161,006
6,100 /1/Universal Health Services, Inc., Class
B 200,919
4,500 Warner-Lambert
Co. 403,594
TOTAL 6,520,518
Technology-9.2%
13,600 /1/America Online,
Inc. 988,550
4,300 /1/Applied Materials,
Inc. 418,981
5,100 /1/BMC Software,
Inc. 371,344
25,250 /1/Cisco Systems,
Inc. 2,251,984
3,400 /1/Compuware
Corp. 114,963
12,400 /1/Dell Computer
Corp. 533,200
11,600 /1/EMC Corp.
Mass 969,325
3,400 /1/Gateway,
Inc. 259,675
18,200 Intel
Corp. 1,395,713
4,800 /1/Lexmark International Group, Class
A 398,400
19,500 Lucent Technologies,
Inc. 1,424,719
26,000 /1/Microsoft
Corp. 2,367,219
7,950 /1/Oracle
Corp. 539,109
2,300 /1/PanAmSat
Corp. 97,894
4,600 /1/Seagate Technology,
Inc. 170,200
9,000 /1/Sun Microsystems,
Inc. 1,190,250
7,200 /1/Tellabs,
Inc. 467,100
6,200 Texas Instruments,
Inc. 595,588
4,400 Xerox
Corp. 119,075
1,200 /1/Yahoo,
Inc. 255,300
TOTAL 14,928,589
TOTAL LARGE-CAP GROWTH
STOCKS 35,748,135
SMALL-CAP GROWTH STOCKS-5.3%
Basic Materials-0.1%
1,700 /1/Buckeye Technologies
Inc. 26,988
1,900 Delta & Pine Land
Co. 48,569
1,200 Geon
Co. 36,300
1,200 MacDermid,
Inc. 45,675
1,400 /1/Shorewood Packaging
Corp. 22,925
1,850 /1/Stillwater Mining
Co. 44,863
TOTAL 225,320
Capital Goods-0.6%
500 /1/Alliant Techsystems,
Inc. 27,469
1,800 /1/Artesyn Technologies,
Inc. 39,263
900 /1/Astec Industries,
Inc. 22,388
700 /1/Aviation Sales
Co. 9,888
1,800 Baldor Electric
Co. 35,213
900 /1/Black Box
Corp. 53,550
600 C&D Technologies,
Inc. 23,475
500 /1/C-COR Electronics,
Inc. 25,531
1,400 CTS
Corp. 112,263
1,100 /1/Dionex
Corp. 42,763
1,300 /1/Dycom Industries,
Inc. 52,325
2,100 GenCorp,
Inc. 22,969
1,000 Graco,
Inc. 32,938
1,500 IDEX
Corp. 41,344
1,200 /1/Insituform Technologies, Inc., Class
A 30,075
2,200 JLG Industries,
Inc. 30,113
600 Lindsay Manufacturing
Co. 10,088
1,250 Manitowoc,
Inc. 38,125
700 New England Business Service,
Inc. 15,838
900 /1/Oak Industries,
Inc. 67,781
900 /1/Plexus
Corp. 35,438
1,500 Roper Industries,
Inc. 55,781
1,800 /1/SLI,
Inc. 23,288
900 Scott Technologies,
Inc. 18,563
900 /1/Specialty Equipment Cos.,
Inc. 19,913
1,800 Tredegar Industries,
Inc. 34,763
2,000 /1/Vicor
Corp. 64,750
TOTAL 985,895
Communication Services-0.1%
1,000 /1/Powerwave Technologies,
Inc. 59,813
3,000 /1/Talk.com,
Inc. 50,625
TOTAL 110,438
Consumer Cyclicals-1.0%
1,000 /1/ADVO,
Inc. 20,563
800 /1/Action Performance Companies,
Inc. 13,550
4,200 /1/Acxiom
Corp. 74,681
1,400 /1/Ames Department Stores,
Inc. 37,188
1,300 /1/Ann Taylor Stores
Corp. 56,144
500 CPI
Corp. 12,375
900 /1/Catalina Marketing
Corp. 85,781
1,800 Central Parking
Corp. 46,575
1,400 /1/ChoicePoint,
Inc. 46,725
3,400 /1/DeVRY,
Inc. 68,638
900 /1/Department 56,
Inc. 16,819
1,000 Elcor
Corp. 32,375
2,000 Ethan Allen Interiors,
Inc. 66,500
1,100 /1/Footstar,
Inc. 36,506
1,600 /1/Fossil,
Inc. 33,600
1,000 G & K Services, Inc., Class
A 33,875
3,600 /1/Gentex
Corp. 67,275
1,250 /1/Insight Enterprises,
Inc. 41,953
2,600 La-Z Boy Chair
Co. 46,800
1,900 /1/Linens 'N Things,
Inc. 64,125
2,200 Mascotech,
Inc. 26,400
2,100 /1/Mens Wearhouse,
Inc. 54,075
900 /1/Monaco Coach
Corp. 19,350
1,200 /1/O'Reilly Automotive,
Inc. 55,200
800 OshKosh B'Gosh, Inc., Class
A 16,200
1,550 /1/Pacific Sunwear of
California 47,856
4,700 Pier 1 Imports,
Inc. 32,606
1,200 Polaris Industries,
Inc. 46,200
1,100 /1/Prepaid Legal Services,
Inc. 26,263
2,300 /1/Profit Recovery Group International,
Inc. 85,208
1,100 /1/Quiksilver,
Inc. 16,638
1,850 Regis Corp.
Minnesota 38,156
900 /1/Scotts
Co. 36,169
600 /1/Simpson Manufacturing Co.,
Inc. 25,013
1,000 /1/Timberland Co., Class
A 48,000
2,300 True North Communications,
Inc. 91,569
800 WD 40
Co. 18,600
1,100 Winnebago Industries,
Inc. 20,763
TOTAL 1,606,314
Consumer Staples-0.4%
1,400 Applebee's International,
Inc. 42,175
1,350 /1/CEC Entertainment,
Inc. 40,500
1,000 /1/Cheesecake Factory,
Inc. 31,000
800 /1/Consolidated Graphics,
Inc. 17,950
1,275 /1/Consolidated Products,
Inc. 13,388
1,500 Harland (John H.)
Co. 27,844
1,900 /1/Jack in the Box,
Inc. 40,019
2,100 /1/Labor Ready,
Inc. 26,644
800 Libbey,
Inc. 21,200
900 Natures Sunshine Products,
Inc. 7,594
1,700 /1/Patterson Dental
Co. 77,988
1,100 /1/Priority HealthCare Corp., Class
B 27,225
1,600 Ruby Tuesday,
Inc. 32,200
900 /1/Sonic
Corp. 24,300
700 /1/Taco Cabana, Inc., Class
A 6,081
1,875 /1/Tetra Tech,
Inc. 21,328
1,300 /1/Triarc Companies, Inc., Class
A 25,269
700 /1/USA Detergents,
Inc. 2,975
2,800 /1/Valassis Communications,
Inc. 110,250
1,300 /1/Whole Foods Market,
Inc. 51,106
TOTAL 647,036
Energy-0.1%
1,600 /1/Barrett
Resources 42,500
2,000 /1/Newfield Exploration
Co. 51,625
800 /1/Plains Resources,
Inc. 8,800
2,000 Pogo Producing
Co. 36,000
900 Stone Energy
Corp. 35,044
TOTAL 173,969
Financials-0.7%
3,500 /1/Americredit
Corp. 59,500
600 Blanch, E. W. Holdings,
Inc. 34,800
1,400 Centura Banks,
Inc. 65,100
1,400 Chittenden
Corp. 45,238
1,360 Commerce Bancorp,
Inc. 58,480
2,600 Cullen Frost Bankers,
Inc. 74,100
1,800 Eaton Vance
Corp. 64,688
1,400 First Midwest Bancorp,
Inc. 58,800
1,400 Firstbank
Corp. 28,350
4,400 Firstmerit
Corp. 114,263
900 Gallagher (Arthur J.) &
Co. 49,050
600 Hilb Rogal & Hamilton
Co. 16,275
1,957 Hudson United
Bancorp 60,422
2,800 Legg Mason,
Inc. 98,525
2,100 Mutual Risk Management
Ltd. 32,156
1,300 Pioneer Group,
Inc. 19,338
1,050 Queens County Bancorp,
Inc. 30,450
900 SEI Investments,
Co. 91,294
2,560 Trustco Bank
Corp. 37,280
900 U.S. Trust
Corp. 71,606
TOTAL 1,109,715
Health Care-0.6%
1,400 Alpharma, Inc., Class
A 44,800
1,100 /1/Barr Laboratories,
Inc. 34,650
2,600 /1/Bio-Technology General
Corp. 31,200
1,100 /1/Biomatrix,
Inc. 25,850
1,500 /1/Cephalon,
Inc. 33,375
1,200 /1/Cygnus,
Inc. 11,925
1,200 /1/Enzo Biochem,
Inc. 31,350
1,900 /1/Express Scripts, Inc., Class
A 96,425
1,400 Hooper Holmes,
Inc. 33,075
1,000 /1/IDEC Pharmaceuticals
Corp. 126,750
1,900 /1/IDEXX Laboratories,
Inc. 35,150
1,200 /1/Immune Response
Corp. 5,325
2,150 Jones Pharma,
Inc. 74,444
1,200 /1/Laser Vision Centers,
Inc. 17,400
1,900 /1/Liposome Co.,
Inc. 23,631
1,000 /1/Maximus,
Inc. 28,000
195 /1/Medimmune,
Inc. 23,437
1,200 Mentor
Corp. 28,050
1,100 /1/Noven Pharmaceuticals,
Inc. 14,231
700 /1/Osteotech,
Inc. 9,800
1,200 /1/Parexel International
Corp. 14,400
1,200 /1/Pharmaceutical Product Development,
Inc. 14,850
2,200 /1/Renal Care Group,
Inc. 45,100
2,300 /1/Summit Technology,
Inc. 44,131
600 /1/Syncor International
Corp. 16,838
800 /1/Wesley Jessen VisionCare,
Inc. 22,850
TOTAL 887,037
Technology-1.6%
1,000 /1/Alpha Industries,
Inc. 60,500
2,100 /1/American Management System,
Inc 61,688
1,000 /1/Apex,
Inc. 23,500
1,300 /1/Bisys Group,
Inc. 75,319
1,800 /1/Burr Brown
Corp. 79,763
2,900 /1/Ciber,
Inc. 61,806
1,100 /1/Clarify,
Inc. 102,523
2,500 /1/CommScope,
Inc. 105,313
1,000 Computer Task Group,
Inc. 14,813
700 /1/Concord Communications,
Inc. 37,450
900 /1/DBT Online,
Inc. 17,325
1,400 Dallas Semiconductor
Corp. 80,763
1,950 /1/Dendrite International,
Inc. 53,625
3,100 /1/Digtial Microwave
Corp. 48,825
800 FactSet Research
Systems 49,600
700 Fair Isaac & Co.,
Inc. 29,750
1,800 /1/General Semiconductor,
Inc. 24,750
1,200 /1/HNC
Software 85,200
1,100 Helix Technology
Corp. 44,533
1,000 Henry Jack & Associates,
Inc. 39,563
1,300 Inter-Tel,
Inc. 25,919
1,600 /1/Intervoice,
Inc. 24,100
600 /1/Kronos,
Inc. 31,125
800 /1/MICROS Systems
Corp. 40,450
2,100 /1/Macromedia,
Inc. 138,075
1,800 /1/Medquist,
Inc. 51,300
1,900 /1/Mercury Interactive
Corp. 157,938
1,700 Methode Electronics, Inc., Class
A 45,900
2,000 /1/Micrel,
Inc. 98,500
1,600 National Computer Systems,
Inc. 61,400
1,700 National Data
Corp. 55,675
2,400 National Instruments
Corp. 72,000
800 Plantronics,
Inc. 50,400
800 Progress Software
Corp. 31,900
700 QRS
Corp. 40,688
1,400 Remedy
Corp. 48,825
803 Texas Instruments,
Inc. 77,138
1,100 Trimble Navigation
Ltd. 18,563
1,500 /1/Visio
Corp. 53,813
2,700 /1/Whittman-Hart,
Inc. 165,881
1,200 /1/Xircom,
Inc. 63,000
1,500 Zebra Technologies Co., Class
A 90,563
TOTAL 2,539,762
Transportation-0.1%
900 /1/Atlantic Coast Airlines
Holdings 18,675
2,500 Expeditors International Washington,
Inc. 101,875
1,000 /1/Kirby
Corp. 18,375
500 /1/Landstar System,
Inc. 20,031
700 /1/Midwest Express Holdings,
Inc. 20,256
TOTAL 179,212
Utilities-0.0%
2,000 Philadelphia Suburban
Corp. 46,250
1,000 Public Service Co. North Carolina,
Inc. 32,125
TOTAL 78,375
TOTAL SMALL-CAP GROWTH
STOCKS 8,543,073
FOREIGN EQUITY-17.1%
Australia-0.5%
127,000 /1/Davnet
Ltd. 126,912
76,800 /1/Novogen
Ltd. 151,538
55,000 Solution 6 Holdings
Ltd. 388,583
127,100 /1/Westel Group
Ltd. 80,899
TOTAL 747,932
Denmark-0.1%
3,000 Tele Danmark
AS 193,417
Finland-0.4%
42,500 JOT Automation Group
Oyj 289,098
2,050 Nokia
Oyj 290,464
TOTAL 579,562
France-1.9%
1,550
Alcatel 300,687
2,628
Axa 354,616
550
Bouygues 253,852
140 Carrefour
SA 24,408
2,200 Casino
Ord 274,914
3,990 Ciments Francais Ord
A 245,276
1,060 /1/M6 Metropole
Television 349,306
1,670 Pinault-Printemps-Redoute
SA 348,369
3,600 /1/STMicroelectronics N.V. (NY Reg
Shs) 449,550
2,530 Total Fina SA, Class
B 336,803
2,700
Vivendi 216,313
TOTAL 3,154,094
Germany, Federal Republic Of-0.8%
7,200 Continental
Ag 143,665
3,600 Deutsche Bank
AG 237,446
3,000 /1/Epcos
AG 184,418
1,945 Mannesmann
AG 404,559
65 Porsche
Vorzug 176,860
7,120 /1/Thyssen Krupp
AG 187,272
TOTAL 1,334,220
Hong Kong-0.5%
82,000 /1/China
Telecommunications 438,164
26,000 Hutchison
Whampoa 320,543
TOTAL 758,707
India-0.1%
8,000 /1/Gas Authority of India Ltd.,
GDR 75,900
2,700 NIIT Limited Demat
shares 146,181
TOTAL 222,081
Indonesia-0.1%
143,500 PT
Indosat 200,586
Ireland-0.1%
2,200 /1/Esat Telecom Group PLC,
ADR 143,138
Israel-0.2%
9,000 /1/Orckit Communications,
Inc. 261,000
Italy-0.4%
17,500 Arn Mondadori
Edit 358,708
63,000 ENI
SPA 345,376
TOTAL 704,084
Japan-5.1%
44,000 Asahi Bank
Ltd. 309,052
5,800 Capcom Co.,
Ltd. 342,433
20,000 Chugai Pharmaceutical Co.,
Ltd. 218,282
24,000 Daiwa Securities Co.
Ltd. 343,750
7,000 Daiwabo Information System Co.,
Ltd. 193,231
2,400 Enix
Corp. 224,215
10,000 Fujitsu
Ltd. 355,617
25,000 Furukawa Electric
Co 267,940
1,500 Hirose Electric
Co 251,240
2,500 Kyocera
Corp. 302,323
76,000 Marubeni
Corp. 296,400
1,500 Matsushita
Communication 288,816
4,000 Megachips
Corp. 308,463
1,500 Murata Manufacturing Co.
Ltd. 249,325
7,400 Mycal Card,
Inc. 356,206
13,000 NEC
Corp. 304,583
26,000 Nikko Securities Co.
Ltd. 324,377
1,900 Nintendo Corp.
Ltd. 317,491
6,000 Nitori
Co. 244,609
1,600 Sanix,
Inc. 177,612
7,000 Sega
Enterprises 246,181
16,000 Sharp
Corp. 327,717
300 /1/Softbank
Corporation 217,201
100 Softbank Technology
Corp. 194,509
2,000 Sony
Corp. 371,335
7,000 Taiyo Yuden
Co 306,695
53,000 Toho Bank
Ltd. 241,063
44,000 Toyo Trust &
Banking 234,275
3,000 Yamada
Denki 309,445
5,500 Yokowo, Co.,
Ltd. 110,222
TOTAL 8,234,608
Korea, Republic Of-0.9%
14,870 /1/Haansoft
Inc. 295,027
4,056 Hyundai Electronics Industries
Co. 22,043
10,400 Hyundai Electronics Industries
Co. 213,517
12,350 Kookmin
Bank 205,611
16,902 Korea Data
Systems 329,511
9,000 Korea Technology Banking
Co. 122,666
450 /1/Korea Thrunet Co. Ltd., Class
A 25,031
1,500 Samsung Electronics
Co. 310,546
TOTAL 1,523,952
Malaysia-0.0%
1,000 Malayan United Industries
Bhd 242
Netherlands-1.0%
2,700 /1/ASM Lithography Holding
NV 262,569
7,862 KPN
NV 438,138
2,050 /1/KPNQUEST
NV 78,413
2,350 Koninklijke (Royal) Philips Electronics
NV 286,198
7,850 Laurus
NV 146,746
400 OpenTV Corp.,
ADR 30,900
3,850 Unique International
NV 88,460
7,800 VNU - Verenigde Nederlandse Uitgeversbedrijven Verenigd
Bezit 309,309
1,750 Vendex International
A 46,205
TOTAL 1,686,938
Norway-0.1%
8,350 /1/Tandberg
Television 108,783
Portugal-0.5%
16,400 Banco Pinto & Sotto
Mayor 352,027
50,000 Banco Portugues do
Atlantico 201,046
14,000 Telecel - Comunicacoes Pessoais
SA 185,386
TOTAL 738,459
Singapore-1.0%
22,000 Chartered Semiconductor
Manufacturing 124,368
200 /1/Chartered Semiconductor Manufacturing
ADR 10,650
11,000 DBS Group Holdings
Ltd. 142,696
132,000 DBS Land
Ltd. 257,638
91,000 Delgro Corporation
Ltd. 284,290
36,000 /1/MediaRing.com
Ltd. 35,561
39,000 Natsteel Electronics
Ltd 161,291
203,000 Neptune Orient Lines
Ltd. 301,993
14,600 Singapore Press Holdings
Ltd. 273,669
TOTAL 1,592,156
Spain-0.7%
18,450 Banco Santander Central Hispano,
S.A. 202,849
6,600 Continente (centros
Com) 149,185
2,000 Ence Empr Nac
Celulosas 37,891
350 Telefonica
SA 7,294
17,500 Telefonica
SA 364,705
23,000 Union Electrica
Fenosa 388,004
TOTAL 1,149,928
Sweden-0.3%
3,000 /1/HIQ International
AB 125,529
105,000 Rotternos
AB 120,945
4,200 Telefonaktiebolaget LM
Ericsson 203,632
TOTAL 450,106
Switzerland-0.1%
38 /1/Kudelski
SA 175,432
United Kingdom-2.3%
4,950
AstraZeneca 220,545
25,230 BP Amoco
PLC 257,692
10,151 British Telecommunication
PLC 203,636
5,900 CMG
PLC 311,890
12,559 Cable & Wireless
PLC 159,517
18,900 /1/Cable & Wireless Communications
PLC 212,479
6,700 /1/Energis
PLC 272,980
CAPTION>
Shares,
Value in
Principal
U.S.Dollars
Amount or
Foreign
Currency Par
Amount
<S> <C> <C>
25,000 Enterprise
Oil 179,398
30,000 Halifax
PLC 343,009
21,400 Invensys
PLC 97,258
35,000 Norwich Union
PLC 248,925
12,000 /1/Orange
PLC 363,580
4,600 /1/PowderJect Pharmaceuticals
PLC 72,840
13,819 Prudential Corp.
PLC 228,077
18,145 Smithkline Beecham
PLC 243,921
55,480 Vodafone AirTouch
PLC 261,432
TOTAL 3,677,179
TOTAL FOREIGN
STOCKS 27,636,604
FUTURES CONTRACTS COLLATERAL-11.0%/2/
$ 17,900,000 United States Treasury Bill,
12/16/1999 17,881,921
TOTAL STOCKS (IDENTIFIED COST $101,868,728)
131,367,529
BONDS-17.3%
TREASURY AND GOVERNMENT SECURITIES-10.3%
Repurchase Agreement-7.3%/3/
11,745,000 Societe Generale, New York, 5.680%, dated 11/30/1999, due 12/1/1999 (at
amortized 11,745,000
cost)
U.S. Treasury Securities-3.0%
2,550,000 United States Treasury Bond, 8.125%,
5/15/2021 2,991,227
97,000 United States Treasury Note, 6.000%,
8/15/2009 95,802
1,375,000 United States Treasury Note, 6.375%,
8/15/2002 1,385,093
405,000 United States Treasury Note, 6.500%,
10/15/2006 409,799
TOTAL 4,881,921
TOTAL TREASURY AND GOVERNMENT
SECURITIES 16,626,921
HIGH YIELD BONDS-3.7%/4/
685,847 The High Yield Bond
Portfolio 5,980,582
FOREIGN BONDS-3.3%
Australian Dollar-0.2%
100,000 Queensland, State of, 8%,
9/14/2007 68,041
85,000 Queensland, State of, Deb., 10.5%,
5/15/2003 60,541
<CAPTION>
Foreign
Value in
Currency
Par
U.S.Dollars
Amount
<S> <C> <C>
$ 260,000 West Australia, State of, Local Government Guarantee, 8%,
7/15/2003 172,682
TOTAL 301,264
British Pound-0.2%
135,000 United Kingdom, Government of, Bond, 8%,
12/07/2015 290,776
Canadian Dollar-0.3%
204,000 Canada, Government of, Deb., 6.50%,
6/1/2004 140,467
405,000 Ontario Hydro, 9.00%,
6/24/2002 294,125
TOTAL 434,592
Danish Krone-0.2%
500,000 Denmark, Government of, 8%,
5/15/2003 74,082
1,927,000 Denmark, Government of, Bullet, 8%,
3/15/2006 296,998
TOTAL 371,080
Deutsche Mark-0.2%
610,000 Austria, Government of, Unsub., 6.5%,
1/10/2024 330,806
130,000 Baden Wurt L-Finance NV, Bank Guarantee, 6%,
1/25/2006 69,327
TOTAL 400,133
Euro-1.4%
12,741 Belgium, Government of, Bond, 6.5%,
3/31/2005 13,711
99,701 Depfa-Bank, 5.5%,
1/15/2013 97,962
176,522 France, Government of, 8.5%,
10/25/2019 237,432
50,617 Germany, Government of, Deb., 6.25%,
1/04/2024 53,381
101,579 Ireland, Government of, Deb., 9%,
9/01/2006 124,902
196,253 Italy, Government of, 9.5%,
1/01/2005 237,329
76,693 KFW International Finance, Bank Guarantee, 6.75%,
6/20/2005 83,966
310,000 Netherlands, Government , 5.5%,
1/15/2028 295,533
40,840 Netherlands, Government of, 6%,
1/15/2006 43,317
355,000 Portugal, Government of, Ot's, 6.625%,
2/23/2007 386,371
96,161 Spain, Government of, 10.%,
2/28/2005 119,017
360,607 Spain, Government of, 6.15%,
1/31/2013 382,240
255,645 Treuhandanstalt, Foreign Government Guarantee, 6.875%,
6/11/2003 276,162
TOTAL 2,351,323
Greek Drachma-0.2%
22,800,000 Greece, Government of, Floating Rate Note, 13.10%
10/23/2003 71,618
75,000,000 Greece, Government of, Floating Rate Note, 12.40%,
11/26/2003 235,700
TOTAL 307,318
Hungarian Forint-0.2%
16,200,000 Hungary, Government of, Bond, 14%,
12/12/2002 67,620
50,000,000 Hungary, Government of, Series HUNG, 9.5%,
2/12/2009 196,301
TOTAL 263,921
New Zealand Dollar-0.0%
61,000 New Zealand, Government of, 8%,
2/15/2001 31,844
Norwegian Krone-0.1%
490,000 Norway, Government of, 5.5%,
5/15/2009 58,067
330,000 Norway, Government of, Bond, 7%,
5/31/2001 41,600
247,000 Norway, Government of, Foreign Government Guarantee, 5.75%,
11/30/2004 30,466
TOTAL 130,133
Polish Zloty-0.2%
180,000 Poland, Government of, Bond, 12%,
10/12/2003 40,935
490,000 Poland, Government of, Bond, Series 0603, 12%,
6/12/2003 110,513
600,000 Poland, Government of, Series 0604, 10%,
6/12/2004 129,966
TOTAL 281,414
Swedish Krona-0.1%
800,000 Sweden, Government of, 6%,
2/09/2005 96,634
500,000 Sweden, Government of, Deb., 13%,
6/15/2001 65,929
TOTAL 162,563
TOTAL FOREIGN
BONDS 5,326,361
TOTAL BONDS (IDENTIFIED COST
$28,958,802) 27,933,864
TOTAL INVESTMENTS (IDENTIFIED COST $130,827,530)5 $
159,301,393
</TABLE>
/1/ Non-income producing security.
/2/ The Fund purchases index futures contracts to efficiently manage cash flows
resulting from shareholder purchases and redemptions, dividends and capital
payments to shareholders and corporate actions while maintaining exposure
to the index and minimize trading costs. The underlying face amount, at
value of open index futures contracts is $14,480,850 at November 30, 1999.
/3/ 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.
/4/ Pursuant to an Exemptive order, the Fund may invest in Federated Core Trust
(the "Trust") which is also managed by Federated Investment Management
Company, the Fund's adviser. The Trust is an open-end management investment
company under the Investment Company Act of 1940 available only registered
investment companies and other institutional investors. High Yield Bond
Portfolio (the "Portfolio") is a series of the Trust. Federated receives no
fees on behalf of the Portfolios. Income distributions from the Portfolios
are declared daily and paid monthly. Income distributions earned by the
Fund are recorded as dividend income in the accompanying financial
statements.
/5/ The cost of investments for federal tax purposes amounts to $131,470,348.
The net unrealized appreciation of investments on a federal tax basis
amounts to $27,831,045 which is comprised of $33,828,915 appreciation and
$5,997,870 depreciation at November 30, 1999.
Note: The categories of investments are shown as a percentage of net assets
($161,964,953) at November 30, 1999.
The following acronyms are used throughout this portfolio:
ADR -American Depositary Receipt
GDR -Global Depositary Receipt
MBIA -Municipal Bond Investors Assurance
SPA -Standby Purchase Agreement
See Notes which are an integral part of the Financial Statements
Statement of Assets and Liabilities
NOVEMBER 30, 1999
<TABLE>
<CAPTION>
Federated
Federated
Federated Managed
Managed Federated
Managed Conservative
Moderate Managed
Income Growth
Growth Growth
Portfolio Portfolio
Portfolio Portfolio
<S> <C> <C>
<C> <C>
Assets:
Total investments in securities, at value $ 129,077,967 $ 215,205,323 $
260,855,910 $ 159,301,393
Cash 2,573 1,159
3,296 2,939
Cash denominated in foreign currency (identified 3,127 70,636
59,865 62,265
cost $3,159, $74,111, $60,127, $62,590,
respectively)
Income receivable 1,019,592 1,429,472
1,258,383 391,195
Receivable for investments sold 380,619 656,668
4,521,576 3,113,163
Receivable for shares sold 292,219 209,413
271,886 319,904
TOTAL ASSETS 130,776,097 217,572,671
266,970,916 163,190,859
Liabilities:
Payable for investments purchased -- 247,507
1,666,637 899,622
Payable for shares redeemed 183,111 210,992
395,522 53,749
Income distribution payable -- --
2,804 6,669
Payable for taxes withheld 322 1,820
5,302 4,650
Payable for daily variation margin 80,476 102,026
265,543 180,352
Accrued expenses 70,186 77,449
109,252 80,864
TOTAL LIABILITIES 334,095 639,794
2,445,060 1,225,906
Net Assets Consist of:
Paid in capital 130,137,305 194,624,155
217,526,504 125,563,675
Net unrealized appreciation (depreciation) of
investments, translation of assets and liabilities (786,010) 16,882,721
35,137,785 28,662,098
in foreign currency and futures contracts
Accumulated net realized gain on investments,
foreign currency transactions and futures contracts 964,882 4,584,453
11,025,896 7,542,424
Undistributed net investment income 125,825 841,548
835,671 196,756
TOTAL NET ASSETS $ 130,442,002 $ 216,932,877 $
264,525,856 $ 161,964,953
Net Assets:
Institutional Shares $ 86,919,246 $ 151,960,460 $
168,701,726 $ 93,453,220
Select Shares $ 43,522,756 $ 64,972,417 $
95,824,130 $ 68,511,733
Shares Outstanding:
Institutional Shares 8,352,389 12,859,113
12,449,743 6,158,827
Select Shares 4,180,450 5,504,081
7,094,627 4,522,083
Net Asset Value, Offering Price and Redemption
Proceeds Per Share:
Institutional Shares $10.41 $11.82
$13.55 $15.17
Select Shares $10.41 $11.80
$13.51 $15.15
Investments, at identified cost $ 129,919,683 $ 198,421,812 $
226,001,092 $ 130,827,530
</TABLE>
See Notes which are an integral part of the Financial Statements
Statements of Operations
NOVEMBER 30, 1999
<TABLE>
<CAPTION>
Federated
Federated Managed
Managed Conservative
Income Growth
Portfolio Portfolio
<S> <C>
<C>
Investment Income:
Dividends (net of foreign taxes withheld of $21 and $10,848, respectively) $ 2,650,536
$ 4,317,464
Interest (net of foreign taxes withheld of $620 and $1,469 and net of dollar roll
5,302,543 7,047,431
expense of $11,574 and $10,008, respectively)
TOTAL INCOME
7,953,079 11,364,895
Expenses:
Investment adviser fee
994,855 1,767,694
Administrative personnel and services fee
155,000 177,712
Custodian fees
19,958 68,564
Transfer and dividend disbursing agent fees and expenses
93,649 100,428
Directors'/Trustees' fees
5,497 5,518
Auditing fees
17,824 17,547
Legal fees
5,235 7,331
Portfolio accounting fees
76,768 87,080
Distribution services fee - Select Shares
354,680 494,542
Shareholder services fee - Institutional Shares
212,891 424,384
Shareholder services fee - Select Shares
118,227 164,848
Share registration costs
30,763 33,728
Printing and postage
32,256 48,385
Insurance premiums
718 1,716
Taxes
- -- 763
Miscellaneous
18,507 16,954
TOTAL EXPENSES
2,136,828 3,417,194
Waivers:
Waiver of investment adviser fee
(448,968) --
Waiver of distribution services fee - Select Shares
(118,227) (164,848)
Waiver of shareholder services fee - Institutional Shares
(170,313) (339,507)
TOTAL WAIVERS
(737,508) (504,355)
Net expenses
1,399,320 2,912,839
Net investment income
6,553,759 8,452,056
Realized and Unrealized Gain (Loss) on Investments, Foreign Currency Transactions and
Futures Contracts:
Net realized gain on investments, foreign currency transactions and futures contracts
1,544,962 5,231,044
Net change in unrealized appreciation (depreciation) of investments, translation of
(6,816,145) (2,621,660)
assets and liabilities in foreign currency and futures contracts
Net realized and unrealized gain (loss) on investments, foreign currency transactions
(5,271,183) 2,609,384
and futures contracts
Change in net assets resulting from operations $ 1,282,576
$ 11,061,440
</TABLE>
See Notes which are an integral part of the Financial Statements
Statements of Operations-continued
NOVEMBER 30, 1999
<TABLE>
<CAPTION>
Federated
Managed Federated
Moderate Managed
Growth Growth
Portfolio Portfolio
<S>
<C> <C>
Investment
Income:
Dividends (net of foreign taxes withheld of $50,460 and $39, 674, respectively) $
4,015,495 $ 2,008,200
Interest (net of foreign taxes withheld of $4,078 and $3,516, respectively and net of
5,957,515 2,210,343
dollar roll expense of $6,887 for Federated Managed Moderate Growth
Portfolio)
TOTAL INCOME
9,973,010 4,218,543
Expenses:
Investment adviser fee
1,994,215 1,178,534
Administrative personnel and services fee
200,485 155,000
Custodian fees
90,434 67,476
Transfer and dividend disbursing agent fees and expenses
175,963 156,141
Directors'/Trustees' fees
4,332 3,953
Auditing fees
16,503 17,724
Legal fees
8,120 6,823
Portfolio accounting fees
96,201 70,321
Distribution services fee - Select Shares
686,157 501,841
Shareholder services fee - Institutional Shares
436,019 225,564
Shareholder services fee - Select Shares
228,719 167,280
Share registration costs
30,669 31,926
Printing and postage
50,770 51,667
Insurance premiums
1,545 1,980
Miscellaneous
23,129 21,466
TOTAL EXPENSES
4,043,261 2,657,696
Waivers:
Waiver of investment adviser fee
- -- (27,768)
Waiver of distribution services fee - Select Shares
(228,719) (167,280)
Waiver of shareholder services fee - Institutional Shares
(348,815) (180,452)
TOTAL WAIVERS
(577,534) (375,500)
Net expenses
3,465,727 2,282,196
Net investment income
6,507,283 1,936,347
Realized and Unrealized Gain on Investments, Foreign Currency Transactions and
Futures
Contracts:
Net realized gain on investments, foreign currency transactions and futures contracts
13,574,364 9,227,919
Net change in unrealized appreciation (depreciation) of investments, translation of assets
7,099,118 10,008,783
and liabilities in foreign currency and futures
contracts
Net realized and unrealized gain on investments, foreign currency transactions and futures
20,673,482 19,236,702
contracts
Change in net assets resulting from operations $
27,180,765 $ 21,173,049
</TABLE>
See Notes which are an integral part of the Financial Statements
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Federated
Managed
Federated Managed
Conservative
Income Portfolio Growth
Portfolio
Year Ended November 30 1999 1998
1999 1998
<S> <C> <C>
<C> <C>
Increase (Decrease) in Net Assets
Operations:
Net investment income $ 6,553,759 $ 5,687,002 $ 8,452,056
$ 8,181,016
Net realized gain on investments, foreign currency 1,544,962 2,934,091
5,231,044 8,450,467
transactions and futures contracts
Net change in unrealized appreciation (depreciation) (6,816,145) 2,267,518
(2,621,660) 6,894,559
of investments, translation of assets and
liabilities in foreign currency and futures contracts
CHANGE IN NET ASSETS RESULTING FROMOPERATIONS 1,282,576 10,888,611
11,061,440 23,526,042
Distributions to Shareholders:
Distributions from net investment income
Institutional Shares (4,324,201) (3,861,664)
(6,514,079) (6,641,933)
Select Shares (2,062,940) (1,805,745)
(2,035,929) (1,703,959)
Distributions from net realized gain on investments,
foreign currency transactions andfutures contracts
Institutional Shares (2,276,942) (868,541)
(6,849,466) (8,553,202)
Select Shares (1,309,740) (458,242)
(2,422,569) (2,485,155)
CHANGE IN NET ASSETS FROM DISTRIBUTIONS TO (9,973,823) (6,994,192)
(17,822,043) (19,384,249)
SHAREHOLDERS
Share Transactions:
Proceeds from sale of shares 58,015,985 50,306,550
60,253,270 77,810,850
Net asset value of shares issued to shareholders in 6,076,858 3,766,809
12,528,265 12,827,257
payment of distribution declared
Cost of shares redeemed (52,573,553) (38,019,640)
(90,395,625) (65,699,127)
CHANGE IN NET ASSETS FROM SHARETRANSACTIONS 11,519,290 16,053,719
(17,614,090) 24,938,980
Change in net assets 2,828,043 19,948,138
(24,374,693) 29,080,773
Net Assets:
Beginning of period 127,613,959 107,665,821
241,307,570 212,226,797
End of period $ 130,442,002 $ 127,613,959 $ 216,932,877
$ 241,307,570
Undistributed net investment income included in net $ 125,825 $ 54,061 $ 841,548
$ 1,131,267
assets at end of period
Net gain as computed for federal tax purposes $ 1,070,112 $ 3,585,572 $ 4,975,262
$ 9,275,785
</TABLE>
See Notes which are an integral part of the Financial Statements
Statements of Changes in Net Assets-continued
<TABLE>
<CAPTION>
Federated Managed
Moderate Federated
Managed
Growth Portfolio Growth
Portfolio
Year Ended November 30 1999 1998
1999 1998
<S> <C> <C> <C>
<C>
Increase (Decrease) in Net Assets
Operations:
Net investment income $ 6,507,283 $ 6,133,893 $ 1,936,347
$ 1,944,139
Net realized gain on investments, foreign 13,574,364 9,323,284
9,227,919 6,142,566
currencytransactions and futures contracts
Net change in unrealized appreciation (depreciation) 7,099,118 8,589,516
10,008,783 6,099,080
of investments, translation of assets and
liabilities in foreign currency and futures
contracts
CHANGE IN NET ASSETS RESULTING FROMOPERATIONS 27,180,765 24,046,693
21,173,049 14,185,785
Distributions to Shareholders:
Distributions from net investment income
Institutional Shares (4,669,273) (4,424,186)
(1,272,714) (1,356,572)
Select Shares (1,813,373) (1,540,266)
(480,763) (480,406)
Distributions from net realized gain on investments,
foreign currency transactions andfutures contracts
Institutional Shares (7,963,532) (10,981,749)
(4,452,963) (3,897,324)
Select Shares (4,086,575) (4,961,147)
(3,174,545) (2,343,704)
CHANGE IN NET ASSETS FROM DISTRIBUTIONS TO (18,532,753) (21,907,348)
(9,380,985) (8,078,006)
SHAREHOLDERS
Share Transactions:
Proceeds from sale of shares 105,170,271 95,503,988
52,520,002 59,338,862
Net asset value of shares issued to shareholders in 14,641,151 17,037,904
8,255,739 7,109,318
payment of distribution declared
Cost of shares redeemed (126,035,411) (88,843,876)
(61,123,300) (43,820,551)
CHANGE IN NET ASSETS FROM SHARETRANSACTIONS (6,223,989) 23,698,016
(347,559) 22,627,629
Change in net assets 2,424,023 25,837,361
11,444,505 28,735,408
Net Assets:
Beginning of period 262,101,833 236,264,472
150,520,448 121,785,040
End of period $ 264,525,856 $ 262,101,833 $ 161,964,953
$ 150,520,448
Undistributed net investment income included in net $ 835,671 $ 973,333 $ 196,756
$ 94,811
assets at end of period
Net gain as computed for federal tax purposes $ 11,900,033 $ 12,048,850 $ 8,388,081
$ 7,626,184
</TABLE>
See Notes which are an integral part of the Financial Statements
Financial Highlights-Institutional Shares
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
Distributions
Net Realized
from Net
and Unrealized
Realized
Gain/(Loss) on
Gain on
Net Asset Investments, Distributions
Investments,
Value, Net Foreign Currency Total from from Net
Foreign Currency
Year Ended beginning Investment Transactions and Investment Investment
Transactions and
November 30, of period Income Futures Contracts Operations Income
Futures Contracts
<S> <C> <C> <C> <C> <C> <C>
Federated Managed Income Portfolio
1995 $ 9.76 0.62 0.78 1.40 (0.62)
- --
1996 $10.54 0.59 0.12 0.71 (0.62)
(0.07)
1997 $10.56 0.60 0.30 0.90 (0.62)
(0.07)
1998 $10.77 0.55 0.49 1.04 (0.55)
(0.13)
1999/1/ $11.13 0.55 (0.42) 0.13 (0.54)
(0.31)
Federated Managed Conservative Growth Portfolio
1995 $ 9.85 0.50 1.28 1.78 (0.49)
- --
1996 $11.14 0.50 0.41 0.91 (0.52)
(0.16)
1997 $11.37 0.49 0.74 1.23 (0.50)
(0.12)
1998 $11.98 0.44 0.81 1.25 (0.46)
(0.62)
1999/1/ $12.15 0.45 0.14 0.59 (0.45)
(0.47)
Federated Managed Moderate Growth Portfolio
1995 $ 9.82 0.40 1.70 2.10 (0.40)
- --
1996 $11.52 0.41 0.97 1.38 (0.44)
(0.23)
1997 $12.23 0.38 1.19 1.57 (0.40)
(0.30)
1998 $13.10 0.35 0.92 1.27 (0.34)
(0.88)
1999/1/ $13.15 0.35 1.00 1.35 (0.35)
(0.60)
Federated Managed Growth Portfolio
1995 $ 9.82 0.35 1.77 2.12 (0.33)
(0.02)
1996 $11.59 0.33 1.24 1.57 (0.38)
(0.26)
1997 $12.52 0.30 1.43 1.73 (0.31)
(0.36)
1998 $13.58 0.23 1.22 1.45 (0.22)
(0.69)
1999/1/ $14.12 0.22 1.75 1.97 (0.20)
(0.72)
</TABLE>
/1/ For the year ended November 30, 1999, the Funds were audited by Deloitte &
Touche LLP. Each of the previous years were audited by other auditors.
/2/ Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
/3/ This voluntary expense decrease is reflected in both the expense and the
net investment income ratios shown above.
See Notes which are an integral part of the Financial Statements
<TABLE>
<CAPTION>
Ratios to Average Net Assets
----------------------------
Net Asset
Value, Net Expense Net
Assets, Portfolio
Total end of Total Investment Waiver/ end of
period Turnover
Distributions period Return/2/ Expenses Income Reimbursement/3/ (000
omitted) Rate
<S> <C> <C> <C> <C> <C>
<C> <C>
(0.62) $10.54 14.74% 0.75% 6.26% 1.06% $
50,852 165%
(0.69) $10.56 6.98% 0.80% 5.72% 0.80% $
67,122 164%
(0.69) $10.77 8.88% 0.80% 5.63% 0.70% $
71,058 99%
(0.68) $11.13 10.06% 0.80% 5.09% 0.62% $
81,421 122%
(0.85) $10.41 1.22% 0.80% 5.21% 0.54% $
86,919 95%
(0.49) $11.14 18.51% 1.00% 5.10% 0.55%
$103,715 157%
(0.68) $11.37 8.54% 1.05% 4.72% 0.31%
$156,635 154%
(0.62) $11.98 11.25% 1.05% 4.27% 0.25%
$164,728 130%
(1.08) $12.15 11.19% 1.08% 3.77% 0.20%
$178,521 117%
(0.92) $11.82 5.11% 1.04% 3.78% 0.20%
$151,961 94%
(0.40) $11.52 21.79% 1.00% 4.29% 0.76% $
68,313 106%
(0.67) $12.23 12.54% 1.05% 3.77% 0.40%
$136,255 95%
(0.70) $13.10 13.39% 1.05% 3.07% 0.26%
$163,519 136%
(1.22) $13.15 10.56% 1.07% 2.67% 0.20%
$173,514 111%
(0.95) $13.55 11.00% 1.06% 2.69% 0.20%
$168,702 113%
(0.35) $11.59 21.96% 1.00% 3.42% 1.71% $
25,611 139%
(0.64) $12.52 14.13% 1.05% 2.96% 0.88% $
49,715 86%
(0.67) $13.58 14.40% 1.05% 2.27% 0.52% $
76,271 115%
(0.91) $14.12 11.34% 1.12% 1.66% 0.33% $
88,113 123%
(0.92) $15.17 14.83% 1.15% 1.53% 0.22% $
93,453 113%
</TABLE>
Financial Highlights-Select Shares
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
Distributions
Net Realized
from Net
and Unrealized
Realized
Gain/(Loss) on
Gain on
Net Asset Investments, Distributions
Investments,
Value, Net Foreign Currency Total from from Net
Foreign Currency
Year Ended beginning Investment Transactions and Investment Investment
Transactions and
November 30, of period Income Futures Contracts Operations Income
Futures Contracts
<S> <C> <C> <C> <C> <C> <C>
Federated Managed Income Portfolio
1995 $ 9.77 0.48 0.83 1.31 (0.54) --
1996 $10.54 0.53 0.10 0.63 (0.54)
(0.07)
1997 $10.56 0.51 0.31 0.82 (0.54)
(0.07)
1998 $10.77 0.48 0.49 0.97 (0.48)
(0.13)
1999/1/ $11.13 0.48 (0.42) 0.06 (0.47)
(0.31)
Federated Managed Conservative Growth Portfolio
1995 $ 9.83 0.37 1.34 1.71 (0.42) --
1996 $11.12 0.43 0.41 0.84 (0.44)
(0.16)
1997 $11.36 0.40 0.74 1.14 (0.42)
(0.12)
1998 $11.96 0.37 0.81 1.18 (0.38)
(0.62)
1999/1/ $12.14 0.37 0.13 0.50 (0.37)
(0.47)
Federated Managed Moderate Growth Portfolio
1995 $ 9.81 0.23 1.79 2.02 (0.33)
1996 $11.50 0.36 0.94 1.30 (0.37)
(0.23)
1997 $12.20 0.30 1.18 1.48 (0.32)
(0.30)
1998 $13.06 0.26 0.92 1.18 (0.25)
(0.88)
1999/1/ $13.11 0.26 1.00 1.26 (0.26)
(0.60)
Federated Managed Growth Portfolio
1995 $ 9.80 0.17 1.89 2.06 (0.25)
(0.02)
1996 $11.59 0.28 1.19 1.47 (0.30)
(0.26)
1997 $12.50 0.18 1.46 1.64 (0.22)
(0.36)
1998 $13.56 0.15 1.21 1.36 (0.13)
(0.69)
1999/1/ $14.10 0.12 1.75 1.87 (0.10)
(0.72)
</TABLE>
/1/ For the year ended November 30, 1999, the Funds were audited by Deloitte &
Touche LLP. Each of the previous years were audited by other auditors.
/2/ Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
/3/ This voluntary expense decrease is reflected in both the expense and the
net investment income ratios shown above.
See Notes which are an integral part of the Financial Statements
<TABLE>
<CAPTION>
Ratios to Average Net Assets
----------------------------
Net Asset
Value, Net Expense Net
Assets, Portfolio
Total end of Total Investment Waiver/ end of
period Turnover
Distributions period Return/2/ Expenses Income Reimbursement/3/ (000
omitted) Rate
<S> <C> <C> <C> <C> <C>
<C> <C>
(0.54) $10.54 13.76% 1.50% 5.56% 1.06%
$13,927 165%
(0.61) $10.56 6.23% 1.50% 5.02% 0.85%
$25,459 164%
(0.61) $10.77 8.14% 1.50% 4.93% 0.75%
$36,608 99%
(0.61) $11.13 9.29% 1.50% 4.39% 0.67%
$46,193 122%
(0.78) $10.41 0.52% 1.50% 4.50% 0.59%
$43,523 95%
(0.42) $11.12 17.76% 1.75% 4.37% 0.55%
$24,787 157%
(0.60) $11.36 7.92% 1.75% 4.02% 0.36%
$44,248 154%
(0.54) $11.96 10.41% 1.75% 3.51% 0.30%
$47,499 130%
(1.00) $12.14 10.51% 1.78% 3.07% 0.25%
$62,787 117%
(0.84) $11.80 4.29% 1.74% 3.08% 0.25%
$64,972 94%
(0.33) $11.50 20.95% 1.75% 3.48% 0.76%
$27,358 106%
(0.60) $12.20 11.75% 1.75% 3.06% 0.45%
$60,208 95%
(0.62) $13.06 12.56% 1.75% 2.37% 0.31%
$72,746 136%
(1.13) $13.11 9.80% 1.77% 2.00% 0.25%
$88,588 111%
(0.86) $13.51 10.26% 1.76% 1.99% 0.25%
$95,824 113%
(0.27) $11.59 21.36% 1.75% 2.65% 1.71%
$12,342 139%
(0.56) $12.50 13.22% 1.75% 2.26% 0.93%
$31,390 86%
(0.58) $13.56 13.66% 1.75% 1.29% 0.57%
$45,514 115%
(0.82) $14.10 10.58% 1.82% 0.96% 0.38%
$66,407 123%
(0.82) $15.15 14.05% 1.85% 0.83% 0.27%
$68,512 113%
</TABLE>
Notes to Financial Statements
NOVEMBER 30, 1999
ORGANIZATION
Federated Managed Allocation Portfolios (formerly known as Managed Series 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
four diversified portfolios, (individually referred to as the "Fund" or
collectively as the "Funds") which are presented here in:
<TABLE>
<CAPTION>
Portfolio Name Investment Objective
- -----------------------------------------------------------
Federated Managed Income To seek total return Portfolio (formerly with an
emphasis on "Federated Managed Income income and potential for Fund") ("Income
Portfolio") capital appreciation.
- -----------------------------------------------------------
<S> <C>
Federated Managed To seek total return
Conservative Growth with an emphasis on
Portfolio (formerly income and capital
"Federated Managed Growth appreciation.
and Income Fund")
("Conservative Growth
Portfolio")
- -----------------------------------------------------------
Federated Managed Moderate To seek capital
Growth Portfolio (formerly appreciation with income
"Federated Managed Growth as a secondary objective.
Fund") ("Moderate Growth
Portfolio")
- -----------------------------------------------------------
Federated Managed Growth To seek capital
Portfolio (formerly appreciation.
"Federated Managed
Aggressive Growth Fund")
("Growth Portfolio")
- -----------------------------------------------------------
</TABLE>
The Funds offer two classes of shares: Institutional Shares and Select Shares.
Effective January 31, 2000, the Trust changed its name from Managed Series
Trust to Federated Managed Allocation Portfolios and the Funds changed their
names as set forth above.
SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds 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. U.S. government securities, listed corporate
bonds, other fixed income and asset-backed securities, and unlisted securities
and private placement securities are generally valued at the mean of the latest
bid and asked price as furnished by an independent pricing service. Short-term
securities are valued at the prices provided by an independent pricing service.
However, short-term securities with remaining maturities of sixty days or less
at the time of purchase may be valued at amortized cost, which approximates fair
market value. Investments in other open-end regulated investment companies are
valued at net asset value.
With respect to valuation of foreign securities, trading in foreign cities may
be completed at times which vary from the closing of the New York Stock
Exchange. Therefore, foreign securities are valued at the latest closing price
on the exchange on which they are traded prior to the closing of the New York
Stock Exchange. Foreign securities quoted in foreign currencies are translated
into U.S. Dollars at the foreign exchange rate in effect at noon, eastern time,
on the day the value of the foreign security is determined.
Repurchase Agreements
It is the policy of the Funds to require the custodian bank or broker 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 Funds 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.
The Funds will only enter into repurchase agreements with banks and other
recognized financial institutions, such as broker/dealers, which are deemed by
the Funds' adviser to be creditworthy pursuant to the guidelines and/or
standards reviewed or established by the Board of Trustees (the "Trustees").
Risks may arise from the potential inability of counterparties to honor the
terms of the repurchase agreements. Accordingly, the Funds could receive less
than the repurchase price on the sale of collateral securities. The Funds, along
with other affiliated investment companies may utilize a joint trading account
for the purpose of entering into one or more repurchase agreements.
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. Non-cash dividends included in dividend income, if any,
are recorded at fair value. The Funds offer multiple classes of shares, which
differ in their respective distribution and service fees. All shareholders bear
the common expenses of the Funds based on average daily net assets of each
class, without distinction between share classes. Dividends are declared
separately for each class. No class has preferential dividend rights;
differences in per share dividend rates are generally due to differences in
separate class expenses.
Distributions are determined in accordance with income tax regulations which
may differ from generally accepted accounting principles. These distributions do
not represent a return of capital for federal income tax purposes.
Income and capital gain distributions are determined in accordance with income
tax regulations which may differ from generally accepted accounting principles.
These differences are primarily due to differing treatments for mortgage-backed
securities, market discount, foreign currency transactions, partnerships,
non-taxable dividends, net operating losses, expiring capital loss
carryforwards, wash sales, futures and options, tax equalization accounting and
post-October losses. The following reclassifications have been made to the
financial statements.
<TABLE>
<CAPTION>
Increase (Decrease)
-----------------------------------------------------
Undistributed
Accumulated Net
Net Realized Investment Paid
In
Fund Gain Income Capital
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Income
Portfolio $ 94,848 $ (94,854) $ 6
- -------------------------------------------------------------------------------
Conservative
Growth
Portfolio 191,767 (191,767) --
- -------------------------------------------------------------------------------
Moderate
Growth
Portfolio 162,299 (162,299) --
- -------------------------------------------------------------------------------
Growth
Portfolio 306,820 (80,925) (225,895)
- -------------------------------------------------------------------------------
</TABLE>
Net investment income, net realized gains/losses and net assets were not
affected by this reclassification.
Federal Taxes
It is the Funds' policy to comply with the provisions of the Code applicable to
regulated investment companies and to distribute to shareholders each year
substantially all of their income. Accordingly, no provision for federal tax is
necessary.
Withholding taxes on foreign interest and dividends have been provided for in
accordance with the Funds' applicable country's tax rules and rates.
When-Issued and Delayed Delivery Transactions
The Funds may engage in when-issued or delayed delivery transactions. The Funds
record 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. Losses may occur on these transactions due to changes in market conditions
or the failure of counterparties to perform under contract.
Futures Contracts
The Funds may purchase 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 Funds are 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 Funds receive from or pay to the
broker a specified amount of cash based upon changes in the variation margin
account. When a contract is closed, the Funds recognize a realized gain or loss.
For the period ended November 30, 1999, the Funds had realized gains on
futures contracts as follows:
<TABLE>
<S> <C>
- --------------------------------------------------------------
Income Portfolio $1,597,453
- --------------------------------------------------------------
Conservative Growth Portfolio 2,307,199
- --------------------------------------------------------------
Moderate Growth Portfolio 5,835,126
- --------------------------------------------------------------
Growth Portfolio 4,045,270
- --------------------------------------------------------------
</TABLE>
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 November 30, 1999, the Funds had outstanding futures contracts as set forth
below:
INCOME PORTFOLIO
<TABLE>
<CAPTION>
Expiration Date Contracts to Deliver/Receive Position Unrealized Appreciation
(Depreciation)
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
December 1999 11 S&P 500 Index Futures Long $ 85,425
- -------------------------------------------------------------------------------------------------------------------------
March 2000 6 S&P 500 Index Futures Long (23,250)
- -------------------------------------------------------------------------------------------------------------------------
$ 62,175
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
CONSERVATIVE GROWTH PORTFOLIO
<TABLE>
<CAPTION>
Expiration Date Contracts to Deliver/Receive Position Unrealized Appreciation
(Depreciation)
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
December 1999 12 Russell 2000 Index Futures Short $ 81,313
- -------------------------------------------------------------------------------------------------------------------------
March 2000 5 Russell 2000 Index Futures Long (12,050)
- -------------------------------------------------------------------------------------------------------------------------
December 1999 8 S&P 500 Index Futures Short 68,400
- -------------------------------------------------------------------------------------------------------------------------
March 2000 5 S&P 500 Index Futures Long (19,375)
- -------------------------------------------------------------------------------------------------------------------------
$118,288
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
MODERATE GROWTH PORTFOLIO
<TABLE>
<CAPTION>
Expiration Date Contracts to Deliver/Receive Position Unrealized Appreciation
(Depreciation)
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
December 1999 31 Russell 2000 Index Futures Short $204,150
- -------------------------------------------------------------------------------------------------------------------------
March 2000 15 Russell 2000 Index Futures Long (34,700)
- -------------------------------------------------------------------------------------------------------------------------
December 1999 22 S&P 500 Index Futures Long 182,260
- -------------------------------------------------------------------------------------------------------------------------
March 2000 11 S&P 500 Index Futures Short (42,625)
- -------------------------------------------------------------------------------------------------------------------------
$309,085
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
GROWTH PORTFOLIO
<TABLE>
<CAPTION>
Expiration Date Contracts to Deliver/Receive Position Unrealized Appreciation
(Depreciation)
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
December 1999 22 Russell 2000 Index Futures Short $143,712
- -------------------------------------------------------------------------------------------------------------------------
March 2000 14 Russell 2000 Index Futures Long 115,712
- -------------------------------------------------------------------------------------------------------------------------
December 1999 10 S&P 500 Index Futures Short (22,650)
- -------------------------------------------------------------------------------------------------------------------------
March 2000 8 S&P 500 Index Futures Long (31,000)
- -------------------------------------------------------------------------------------------------------------------------
$205,775
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
Foreign Exchange Contracts
The Funds may enter into foreign currency commitments for the delayed delivery
of securities or foreign currency exchange transactions. The Funds may enter
into foreign currency contract transactions to protect assets against adverse
changes in foreign currency exchange rates or exchange control regulations.
Purchased contracts are used to acquire exposure to foreign currencies; whereas,
contracts to sell are used to hedge the Funds' securities against currency
fluctuations. Risks may arise upon entering these transactions from the
potential inability of counterparts to meet the terms of their commitments and
from unanticipated movements in security prices or foreign exchange rates. The
foreign currency transactions are adjusted by the daily exchange rate of the
underlying currency and any gains or losses are recorded for financial statement
purposes as unrealized until the settlement date. For the year ended November
30, 1999, there were no outstanding foreign exchange contracts.
Foreign Currency Translation
The accounting records of the Funds are maintained in U.S. dollars. All assets
and liabilities denominated in foreign currencies ("FC") are translated into
U.S. dollars based on the rate of exchange of such currencies against U.S.
dollars on the date of valuation. Purchases and sales of securities, income and
expenses are translated at the rate of exchange quoted on the respective date
that such transactions are recorded. The Funds do not isolate that portion of
the results of operations resulting from changes in foreign exchange rates on
investments from the fluctuations arising from changes in market prices of
securities held. Such fluctuations are included with the net realized and
unrealized gain or loss from investments.
Reported net realized foreign exchange gains or losses arise from sales of
portfolio securities, sales and maturities of short-term securities, sales of
FCs, currency gains or losses realized between the trade and settlement dates on
securities transactions, the difference between the amounts of dividends,
interest, and foreign withholding taxes recorded on the books, and the U.S.
dollar equivalent of the amounts actually received or paid. Net unrealized
foreign exchange gains and losses arise from changes in the value of assets and
liabilities other than investments in securities at fiscal year end, resulting
from changes in the exchange rate.
Dollar Roll Transactions
The Funds may enter into dollar roll transactions, with respect to mortgage
securities issued by GNMA, FNMA and FHLMC, in which the Funds sell mortgage
securities to financial institutions and simultaneously agrees to accept
substantially similar (same type, coupon and maturity) securities at a later
date at an agreed upon price. Dollar roll transactions involve "to be announced"
securities and are treated as short-term financing arrangements which will not
exceed twelve months. The Funds will use the proceeds generated from the
transactions to invest in short-term investments, which may enhance the Funds'
current yield and total return.
Restricted Securities
Restricted securities are securities that may only be resold upon registration
under federal securities laws or in transactions exempt from such registration.
In some cases, the issuer of restricted securities has agreed to register such
securities for resale, at the issuer's expense either upon demand by the Funds
or in connection with another registered offering of the securities. Many
restricted securities may be resold in the secondary market in transactions
exempt from registration. Such restricted securities may be determined to be
liquid under criteria established by the Trustees. The Funds will not incur any
registration costs upon such resales. The Funds' restricted securities are
valued at the price provided by dealers in the secondary market or, if no market
prices are available, at the fair value as determined by the Funds' pricing
committee.
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 a trade date basis.
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>
Income Portfolio
- ----------------------------------------------------------
Year Ended November 30 1999 1998
- -----------------------------------------------------------------------------------------------------------------------------
Institutional Shares Shares Amount
Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
<C>
Shares sold 3,910,942 $ 41,820,942 2,994,554
$ 32,643,234
- -------------------------------------------------------------
Shares issued to shareholders in payment of distributions
declared 356,933 3,817,907
223,280 2,420,840
- -------------------------------------------------------------
Shares redeemed (3,231,903) (34,562,713) (2,496,345)
(27,198,765)
- -----------------------------------------------------------------------------------------------------------------------------
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS 1,035,972 $ 11,076,136 721,489
$ 7,865,309
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Year Ended November 30 1999 1998
- -----------------------------------------------------------------------------------------------------------------------------
Select Shares Shares Amount
Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
<C>
Shares sold 1,511,648 $ 16,195,043 1,622,667
$ 17,663,316
- -------------------------------------------------------------
Shares issued to shareholders in payment of distributions
declared 210,519 2,258,951
124,219 1,345,969
- -------------------------------------------------------------
Shares redeemed (1,690,983) (18,010,840) (995,122)
(10,820,875)
- -----------------------------------------------------------------------------------------------------------------------------
NET CHANGE RESULTING FROM SELECT SHARE TRANSACTIONS 31,184 $ 443,154 751,764
$ 8,188,410
- -----------------------------------------------------------------------------------------------------------------------------
NET CHANGE RESULTING FROM SHARE TRANSACTIONS 1,067,156 $ 11,519,290 1,473,253
$ 16,053,719
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Conservative Growth Portfolio
- ----------------------------------------------------------
Year Ended November 30 1999 1998
- -----------------------------------------------------------------------------------------------------------------------------
Institutional Shares Shares Amount
Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
<C>
Shares sold 3,354,992 $ 39,647,637 4,601,113
$ 54,040,432
- -------------------------------------------------------------
Shares issued to shareholders in payment of distributions
declared 728,470 8,481,382
793,142 9,082,092
- -------------------------------------------------------------
Shares redeemed (5,918,228) (69,640,434) (4,451,572)
(52,304,895)
- -----------------------------------------------------------------------------------------------------------------------------
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE
TRANSACTIONS (1,834,766) $(21,511,415) 942,683
$ 10,817,629
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Year Ended November 30 1999 1998
- -----------------------------------------------------------------------------------------------------------------------------
Select Shares Shares Amount
Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
<C>
Shares sold 1,742,322 $ 20,605,633 2,018,630
$ 23,770,418
- -------------------------------------------------------------
Shares issued to shareholders in payment of distributions
declared 347,320 4,046,883
326,837 3,745,165
- -------------------------------------------------------------
Shares redeemed (1,759,212) (20,755,191) (1,141,885)
(13,394,232)
- -----------------------------------------------------------------------------------------------------------------------------
NET CHANGE RESULTING FROM SELECT SHARE TRANSACTIONS 330,430 $ 3,897,325 1,203,582
$ 14,121,351
- -----------------------------------------------------------------------------------------------------------------------------
NET CHANGE RESULTING FROM SHARE TRANSACTIONS (1,504,336) $(17,614,090) 2,146,265
$ 24,938,980
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Moderate Growth Portfolio
- ----------------------------------------------------------
Year Ended November 30 1999 1998
- -----------------------------------------------------------------------------------------------------------------------------
Institutional Shares Shares Amount
Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
<C>
Shares sold 6,036,374 $ 79,200,918 5,057,393
$ 64,381,325
- -------------------------------------------------------------
Shares issued to shareholders in payment of distributions
declared 725,753 9,138,768
901,670 11,036,443
- -------------------------------------------------------------
Shares redeemed (7,512,230) (98,734,110) (5,245,337)
(66,680,577)
- -----------------------------------------------------------------------------------------------------------------------------
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS (750,103) $(10,394,424) 713,726
$ 8,737,191
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Year Ended November 30 1999 1998
- -----------------------------------------------------------------------------------------------------------------------------
Select Shares Shares Amount
Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
<C>
Shares sold 1,984,608 $ 25,969,353 2,438,806
$ 31,122,663
- -------------------------------------------------------------
Shares issued to shareholders in payment of distributions 438,611 5,502,383
491,916 6,001,461
declared
- -------------------------------------------------------------
Shares redeemed (2,088,033) (27,301,301) (1,742,294)
(22,163,299)
- -----------------------------------------------------------------------------------------------------------------------------
NET CHANGE RESULTING FROM SELECT SHARE TRANSACTIONS 335,186 $ 4,170,435 1,188,428
$ 14,960,825
- -----------------------------------------------------------------------------------------------------------------------------
NET CHANGE RESULTING FROM SHARE TRANSACTIONS (414,917) $ (6,223,989) 1,902,154
$ 23,698,016
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Growth Portfolio
- ----------------------------------------------------------
Year Ended November 30 1999 1998
- -----------------------------------------------------------------------------------------------------------------------------
Institutional Shares Shares Amount
Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
<C>
Shares sold 2,005,583 $ 29,171,009 2,569,836
$ 34,985,268
- -------------------------------------------------------------
Shares issued to shareholders in payment of distributions
declared 362,222 4,875,142
345,374 4,473,527
- -------------------------------------------------------------
Shares redeemed (2,448,764) (35,216,512) (2,291,789)
(31,303,549)
- -----------------------------------------------------------------------------------------------------------------------------
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS (80,959) $ (1,170,361) 623,421
$ 8,155,246
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Year Ended November 30 1999 1998
- -----------------------------------------------------------------------------------------------------------------------------
Select Shares Shares Amount
Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
<C>
Shares sold 1,637,849 $ 23,348,993 1,786,848
$ 24,353,594
- -------------------------------------------------------------
Shares issued to shareholders in payment of distributions
declared 252,468 3,380,597
204,251 2,635,791
- -------------------------------------------------------------
Shares redeemed (1,793,905) (25,906,788) (921,602)
(12,517,002)
- -----------------------------------------------------------------------------------------------------------------------------
NET CHANGE RESULTING FROM SELECT SHARE TRANSACTIONS 96,412 $ 822,802 1,069,497
$ 14,472,383
- -----------------------------------------------------------------------------------------------------------------------------
NET CHANGE RESULTING FROM SHARE TRANSACTIONS 15,453 $ (347,559) 1,692,918
$ 22,627,629
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
INVESTMENT ADVISER FEE AND OTHER
TRANSACTIONS WITH AFFILIATES
Investment Adviser Fee
Federated Investment Management Company, the Funds' investment adviser (the
"Adviser"), receives for its services an annual investment adviser fee equal to
0.75% of the Funds' average daily net assets.
The Adviser may voluntarily choose to waive any portion of its fee. The
Adviser can modify or terminate this voluntary waiver at any time at its sole
discretion.
Under the terms of a sub-adviser agreement between the Adviser and Federated
Global Investment Management Corp. (the "Sub-Adviser"), the Sub-Adviser,
receives an allocable portion of the Funds' advisory fee. Such allocation is
based on the amount of foreign securities which the Sub-Adviser manages for the
Funds. This fee is paid by the Adviser out of its resources and is not an
incremental Fund expense.
Administrative Fee
Federated Services Company ("FServ"), under the Administrative Services
Agreement, provides the Funds with administrative personnel and services. The
fee paid to FServ is based on a scale that ranges from 0.15% to 0.075% of the
average aggregate daily net assets of all funds advised by subsidiaries of
Federated Investors, Inc. subject to a $125,000 minimum per portfolio and
$30,000 per each additional class.
Distribution Services Fee
The Funds have adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1
under the Act. Under the terms of the Plan, the Funds 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 Funds' Select
Shares. The Plan provides that the Funds may incur distribution expenses of up
to 0.75% of average net assets, annually, to compensate FSC. The distributor may
voluntarily choose to waive any portion of its fee. The distributor can modify
or terminate this voluntary waiver at any time at its sole discretion.
Shareholder Services Fee
Under the terms of a Shareholder Services Agreement with Federated Shareholder
Services Company ("FSSC"), the Funds will pay FSSC up to 0.25% of average daily
net assets of the Funds' shares 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
FServ, through its subsidiary, Federated Shareholder Services Company ("FSSC")
serves as transfer and dividend disbursing agent for the Funds. 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 Funds' accounting records for which it receives a fee. The
fee is based on the level of the Funds' average daily net assets for the period,
plus out-of-pocket expenses.
Interfund Transactions
During the period ended November 30, 1999, Income Portfolio and Conservative
Growth Portfolio, engaged in purchase and sale transactions with funds that have
a common investment adviser (or affiliated investment advisers), common
Directors/Trustees and/or common Officers. These purchase and sale transactions
complied with Rule 17a-7 under the Act. Interfund transactions were as follows:
<TABLE>
<CAPTION>
Portfolio Name Purchases Sales
- ---------------------------------------------------------------------
<S> <C> <C>
Income Portfolio $35,465,657 $28,599,817
- ---------------------------------------------------------------------
Conservative Growth Portfolio $40,905,118 $43,296,765
- ---------------------------------------------------------------------
</TABLE>
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 November 30, 1999, were as follows:
<TABLE>
<CAPTION>
Portfolio Name Purchases Sales
- --------------------------------------------------------------------------------
<S> <C> <C>
Income Portfolio $127,404,830 $116,614,220
- --------------------------------------------------------------------------------
Conservative Growth Portfolio $208,566,885 $224,936,286
- --------------------------------------------------------------------------------
Moderate Growth Portfolio $284,026,924 $296,889,149
- --------------------------------------------------------------------------------
Growth Portfolio $165,643,385 $176,273,314
- --------------------------------------------------------------------------------
</TABLE>
CONCENTRATION OF CREDIT RISK
The Fund invests in securities of non-U.S. issuers. Although the Fund maintains
a diversified investment portfolio, the political or economic developments
within a particular country or region may have an adverse effect on the ability
of domiciled issuers to meet their obligations. Additionally, political or
economic developments may have an effect on the liquidity and volatility of
portfolio securities and currency holdings.
At November 30, 1999, the diversification of industries for non-U.S. issuers
was as follows:
<TABLE>
<CAPTION>
Income Portfolio
- ------------------------------------------------------------
Percent of
Industry Net Assets
- ------------------------------------------------------------
<S> <C>
Agency 0.2%
- ------------------------------------------------------------
Banking 1.1
- ------------------------------------------------------------
Cellular 0.1
- ------------------------------------------------------------
Financial Intermediaries 0.1
- ------------------------------------------------------------
Forest Products 0.3
- ------------------------------------------------------------
Metals & Mining 0.6
- ------------------------------------------------------------
Sovereign 2.8
- ------------------------------------------------------------
Sovereign Government 0.7
- ------------------------------------------------------------
Supranational 0.1
- ------------------------------------------------------------
Utilities 0.1
- ------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Conservative Growth Portfolio
- ----------------------------------------------------------------------------------------------------------------------------------
Percent
of Percent of
Industry Net Assets
Industry Net Assets
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C>
<C> <C>
Agency 0.2% Industrial
Components 0.1%
- ----------------------------------------------------------------------------------------------------------------------------------
Appliances & Household Durables 0.2
Insurance 0.1
- ----------------------------------------------------------------------------------------------------------------------------------
Banking 0.9
Merchandising 0.3
- ----------------------------------------------------------------------------------------------------------------------------------
Broadcasting & Publishing 0.2 Metals &
Mining 0.2
- ----------------------------------------------------------------------------------------------------------------------------------
Business & Public Services 0.2 Recreation, Other Consumer
Goods 0.1
- ----------------------------------------------------------------------------------------------------------------------------------
Cellular/Wireless 0.2
Sovereign 3.5
- ----------------------------------------------------------------------------------------------------------------------------------
Data Processing & Reproduction 0.1 Sovereign
Government 1.0
- ----------------------------------------------------------------------------------------------------------------------------------
Electrical & Electronics 0.3
State/Provincial 0.1
- ----------------------------------------------------------------------------------------------------------------------------------
Electrical Components, Instruments 0.5
Telecommunications 0.5
- ----------------------------------------------------------------------------------------------------------------------------------
Energy Sources 0.2
Transportation 0.1
- ----------------------------------------------------------------------------------------------------------------------------------
Financial Intermediaries 0.1
Utilities 0.1
- ----------------------------------------------------------------------------------------------------------------------------------
Financial Services 0.2 Utilities Electric &
Gas 0.1
- ----------------------------------------------------------------------------------------------------------------------------------
Forest Products 0.3 Wholesale & International
Trade 0.1
- ----------------------------------------------------------------------------------------------------------------------------------
Health & Personal Care 0.1
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Moderate
- ----------------------------------------------------------------------------------------------------------------------------------
Percent
of Percent of
Industry Net Assets
Industry Net Assets
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C>
<C> <C>
Agency 0.2%
Insurance 0.3
- ----------------------------------------------------------------------------------------------------------------------------------
Appliances & Household Durables 0.6 Leisure and
Tourism 0.1
- ----------------------------------------------------------------------------------------------------------------------------------
Automobile 0.1 Machinery &
Engineering 0.1
- ----------------------------------------------------------------------------------------------------------------------------------
Banking 1.5
Merchandising 0.7
- ----------------------------------------------------------------------------------------------------------------------------------
Broadcasting & Publishing 0.6 Metals &
Mining 0.1
- ----------------------------------------------------------------------------------------------------------------------------------
Building Materials 0.1 Metals Non
Ferrous 0.1
- ----------------------------------------------------------------------------------------------------------------------------------
Business & Public Services 0.9
Multi-Industry 0.2
- ----------------------------------------------------------------------------------------------------------------------------------
Cellular 0.2
Other 0.3
- ----------------------------------------------------------------------------------------------------------------------------------
Construction & Housing 0.1 Real
Estate 0.1
- ----------------------------------------------------------------------------------------------------------------------------------
Data Processing & Reproduction 0.4 Recreation, Other Consumer
Goods 0.3
- ----------------------------------------------------------------------------------------------------------------------------------
Electrical & Electronics 1.0
Sovereign 2.9
- ----------------------------------------------------------------------------------------------------------------------------------
Electrical Components, Instruments 1.5 Sovereign
Government 0.7
- ----------------------------------------------------------------------------------------------------------------------------------
Energy Sources 0.6
State/Provincial 0.2
- ----------------------------------------------------------------------------------------------------------------------------------
Financial Intermediaries 0.1
Telecommunications 2.0
- ----------------------------------------------------------------------------------------------------------------------------------
Financial Services 0.9
Transportation 0.3
- ----------------------------------------------------------------------------------------------------------------------------------
Food & Household Products 0.1
Utilities 0.2
- ----------------------------------------------------------------------------------------------------------------------------------
Forest Products 0.3 Utilities Electric &
Gas 0.2
- ----------------------------------------------------------------------------------------------------------------------------------
Health & Personal Care 0.4 Wholesale & International
Trade 0.3
- ----------------------------------------------------------------------------------------------------------------------------------
Industrial Components 0.2
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Growth Portfolio
- ----------------------------------------------------------------------------------------------------------------------------------
Percent
of Percent of
Industry Net Assets
Industry Net Assets
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C>
<C> <C>
Agency 0.2% Industrial
Components 0.3%
- ----------------------------------------------------------------------------------------------------------------------------------
Appliances & Household Durables 0.8
Insurance 0.2
- ----------------------------------------------------------------------------------------------------------------------------------
Automobile 0.1 Leisure and
Tourism 0.1
- ----------------------------------------------------------------------------------------------------------------------------------
Banking 1.3 Machinery &
Engineering 0.2
- ----------------------------------------------------------------------------------------------------------------------------------
Broadcasting & Publishing 0.6
Merchandising 0.7
- ----------------------------------------------------------------------------------------------------------------------------------
Building Materials 0.2 Metal -
Steel 0.1
- ----------------------------------------------------------------------------------------------------------------------------------
Business & Public Services 1.3
Multi-Industry 0.2
- ----------------------------------------------------------------------------------------------------------------------------------
Cellular 0.3
Other 0.3
- ----------------------------------------------------------------------------------------------------------------------------------
Construction & Housing 0.2 Publishing -
Newspapers 0.2
- ----------------------------------------------------------------------------------------------------------------------------------
Data Processing & Reproduction 0.4 Real
Estate 0.2
- ----------------------------------------------------------------------------------------------------------------------------------
Electrical & Electronics 1.3 Recreation, Other Consumer
Goods 0.4
- ----------------------------------------------------------------------------------------------------------------------------------
Electrical Components, Instruments 2.0
Sovereign 2.5
- ----------------------------------------------------------------------------------------------------------------------------------
Energy Sources 0.7 Sovereign
Government 0.4
- ----------------------------------------------------------------------------------------------------------------------------------
Financial Intermediaries 0.1
State/Provincial 0.1
- ----------------------------------------------------------------------------------------------------------------------------------
Financial Services 1.1
Telecommunications 2.6
- ----------------------------------------------------------------------------------------------------------------------------------
Food & Household Products 0.1
Transportation 0.4
- ----------------------------------------------------------------------------------------------------------------------------------
Forest Products 0.1 Utilities Electric &
Gas 0.2
- ----------------------------------------------------------------------------------------------------------------------------------
Health & Personal Care 0.6 Wholesale & International
Trade 0.3
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
CHANGE OF INDEPENDENT AUDITORS (UNAUDITED)
On May 19, 1999, the Trust's Board of Trustees, upon the recommendation of its
Audit Committee requested and subsequently accepted the resignation of Arthur
Andersen ("AA") as the Funds' independent auditors. AA's reports on the Funds'
financial statements for the fiscal year ended November 30, 1997 and November
30, 1998, contained no adverse opinion or disclaimer of opinion nor was it
qualified or modified as to uncertainty, audit scope or accounting principles.
During the Trust's fiscal years ended November 30, 1997 and November 30, 1998:
(i) there was no disagreements with AA on any matter of accounting principles or
practices, financial statement disclosure or auditing scope or procedure, which
disagreements, if not resolved to the satisfaction of AA, would have caused it
to make reference to the subject matter of the disagreements in connection with
is reports on the financial statements for such years; and (ii) there were no
reportable events of the kind described in Item 304(a)(1)(v) of Regulated S-K
under the Securities Exchange Act of 1934, as amended.
The Trust, by action of its Directors, upon the recommendation of its Audit
Committee of the Board, has engaged Deloitte & Touche LLP ("D&T") as the
independent auditors to audit the Funds' financial statements for the fiscal
year ended November 30, 1999. During the Funds' fiscal years ended November 30,
1997 and November 30, 1998, neither the Trust nor anyone on its behalf has
consulted D&T on items which (i) concerned the application of accounting
principles to a specified transaction, either completed or proposed, or the type
of audit opinion that might be rendered on the Trust's financial statements or
(ii) concerned the subject of a disagreement (as defined in paragraph (a)(1)(iv)
of Item 304 of Regulation S-K) of reportable events (as described in paragraph
(a)(1)(v) of said Item 304).
Independent Auditors' Report
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF MANAGED SERIES TRUST:
Federated Managed Income Portfolio
Federated Managed Conservative Growth Portfolio
Federated Managed Moderate Growth Portfolio
Federated Managed Growth Portfolio
We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of Federated Managed Income Portfolio, Federated
Managed Conservative Growth Portfolio, Federated Managed Moderate Growth
Portfolio and Federated Managed Growth Portfolio (the "Funds") as of November
30, 1999, and the related statements of operations, changes in net assets and
the financial highlights for the year then ended. These financial statements and
financial highlights are the responsibility of the Funds management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audit. The statement of changes in net assets
for the year ended November 30, 1998, and the financial highlights for each of
the periods in the four years ended November 30, 1998, were audited by other
auditors whose report, dated January 15, 1999, expressed an unqualified opinion
on those statements.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to provide reasonable
assurance about whether the financial statements and financial highlights are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of the securities owned at November 30, 1999,
by correspondence with the custodian and brokers; where replies were not
received from brokers, we performed other auditing procedures. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe our audit provides a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of Federated Managed
Income Portfolio, Federated Managed Conservative Growth Portfolio, Federated
Managed Moderate Growth Portfolio and Federated Managed Growth Portfolio as of
November 30, 1999, the results of its operations, the changes in its net assets
and its financial highlights for the year then ended in conformity with
generally accepted accounting principles.
Deloitte & Touche LLP
Boston, Massachusetts
January 14, 2000
Trustees/1/
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
1 Trustees as of January 1, 2000.
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
C. GRANT ANDERSON
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 funds' prospectuses which contain facts
concerning each fund's objectives and policies, management fees, expenses, and
other information.
Notes
[LOGO OF FEDERATED INVESTORS]
Federated Managed Allocation Portfolios
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
1-800-341-7400
www.federatedinvestors.com
Federated Securities Corp., Distributor
Cusip 314212804 Cusip 314212705 Cusip 314212408 Cusip 314212309 Cusip 314212606
Cusip 314212507 Cusip 314212200 Cusip 314212101
G00873-06 (1/00)
Federated is a registered mark
of Federated Investors, Inc.
2000 (C)Federated Investors, Inc.
[RECYCLED PAPER LOGO]
[LOGO OF FEDERATED INVESTORS]
World-Class Investment Manager(R)
Federated
Managed
Allocation
Portfolios
Federated Managed Income Portfolio
Federated Managed Conservative Growth Portfolio
Federated Managed Moderate Growth Portfolio
Federated Managed Growth Portfolio
ANNUAL REPORT
TO SHAREHOLDERS
A N N U A L R E P O R T
APPENDIX
A. The graphic representation here displayed consists of a legend in the top
left indicating the components of the corresponding line graph. Federated
Managed Income Portfolio (formerly, Federated Managed Income Fund)
(Institutional Shares) (the "Fund") is represented by a solid black line. The
Lehman Brothers Government/Corporate Index (LBG/CI) is represented by a dotted
line. Managed Income Indices Blend (MIIB) is represented by a series of dashes.
The line graph is a visual representation of a comparison of a change in value
of a hypothetical$25,000 investment in the Fund, the LBG/CI, and the MIIB. The
"x" axis reflects computation periods from 5/25/94 to 11/30/99. The "y" axis
reflects the cost of investment in $5,000 increments ranging from $20,000 to
$40,000. The right margin reflects the ending value of the hypothetical
investment in the Fund as compared to the LBG/CI and the MIIB; the ending values
are $37,427, $36,522,and $39,163, respectively. Above the line graph are the
one-year, five-years and Start of Performance (5/25/94) Average Annual Total
Returns for the for the period ended November 30, 1999; the Average Annual Total
Returns are 1.22%, 8.29% and 7.59%,respectively.
B. The graphic representation here displayed consists of a boxed legend in the
top left indicating the components of the corresponding line graph. Federated
Managed Income Portfolio (formerly, Federated Managed Income Fund) (Select
Shares) (the "Fund") is represented by a solid black line. The Lehman Brothers
Government/Corporate Index (LBG/CI) is represented by a dotted line. The Managed
Income Indices Blend (MIIB) is represented by a series of dashes. The line graph
is a visual representation of a comparison of a change in value of a
hypothetical $10,000 investment in the Fund, the LBG/CI, and the MIIB. The "x"
axis reflects computation periods from5/25/94 to 11/30/99. The "y" axis reflects
the cost of investment in $5,000increments ranging from $5,000 to $20,000. The
right margin reflects the ending value of the hypothetical investment in the
Fund as compared to the LBG/CI and the MIIB; the ending values are $14,394,
$14,609, and $15,665, respectively. Above the legend are the one-year,
five-years and Start of Performance (5/25/94) Average Annual Total Returns for
the for the period ended November 30, 1999; the Average Annual Total Returns are
0.52%, 7.50% and 6.82%, respectively.
C. The graphic representation here displayed consists of a boxed legend in the
top left indicating the components of the corresponding line graph. Federated
Managed Conservative Growth Portfolio (formerly, Federated Managed Growth and
Income Fund) (Institutional Shares) (the "Fund") is represented by a solid black
line. The Lehman Brothers Government/Corporate Index (LBG/CI) is represented by
a dotted line. Managed Conservative Growth Indices Blend (MCGIB) is represented
by a series of dashes. The line graph is a visual representation of a comparison
of a change in value of a hypothetical $25,000 investment in the Fund, the
LBG/CI, and the MCGIB. The "x" axis reflects computation periods from5/25/94 to
11/30/99. The "y" axis reflects the cost of investment in $10,000increments
ranging from $20,000 to $50,000. The right margin reflects the ending value of
the hypothetical investment in the Fund as compared to the LBG/CI and the MCGIB;
the ending values are $41,820, $36,522, and $45,647, respectively. Above the
legend are the one-year, five-years and Start of Performance (5/25/94) Average
Annual Total Returns for the period ended November 30, 1999; the Average Annual
Total Returns are 5.11%, 10.84% and 9.77%, respectively.
D. The graphic representation here displayed consists of a boxed legend in the
top left indicating the components of the corresponding line graph. Federated
Managed Conservative Growth Portfolio (formerly, Federated Managed Growth and
Income Fund) (Select Shares) (the "Fund") is represented by a solid black line.
The Lehman Brothers Government/Corporate Index (LBG/CI) is represented by a
dotted line. Managed Conservative Growth Indices Blend (MCGIB) is represented by
a series of dashes. The line graph is a visual representation of a comparison of
a change in value of a hypothetical $10,000 investment in the Fund, the LBG/CI,
and the MCGIB. The "x" axis reflects computation periods from5/25/94 to
11/30/99. The "y" axis reflects the cost of investment in $5,000increments
ranging from $5,000 to $20,000. The right margin reflects the ending value of
the hypothetical investment in the Fund as compared to the LBG/CI and the MCGIB;
the ending values are $16,107, $14,609, and $18,259, respectively. Above the
legend are the one-year, five-years and Start of Performance (5/25/94) Average
Annual Total Returns for the period ended November 30, 1999; the Average Annual
Total Returns are 4.29%, 10.09% and 9.02%, respectively.
E. The graphic representation here displayed consists of a boxed legend in
thetop left indicating the components of the corresponding line graph. Federated
Managed Moderate Growth Portfolio (formerly, Federated Managed Growth Fund
(Institutional Shares) (the "Fund") is represented by a solid black line. The
Standard and Poor's 500 (S&P 500) is represented by a dotted line. Managed
Moderate Growth Indices Blend (MMGIB) is represented by a series of dashes. The
line graph is a visual representation of a comparison of a change in value of a
hypothetical $25,000 investment in the Fund, the S&P 500, and the MMGIB. The "x"
axis reflects computation periods from 5/25/94 to 11/30/99. The "y" axis
reflects the cost of investment in $20,000 increments ranging from$20,000 to
$100,000. The right margin reflects the ending value of the hypothetical
investment in the Fund as compared to the S&P 500 and the MMGIB; the ending
values are $47,401, $85,178, and $52,751, respectively. Above the legend are the
one-year, five-years and Start of Performance (5/25/94) Average Annual Total
Returns for the for the period ended November 30, 1999; the Average Annual Total
Returns are 11.00%, 13.79% and 12.29%, respectively.
F. The graphic representation here displayed consists of a boxed legend in
thetop left indicating the components of the corresponding line graph. Federated
Managed Moderate Growth Portfolio (formerly, Federated Managed Growth Fund
(Select Shares) (the "Fund") is represented by a solid black line. The Standard
and Poor's 500 (S&P 500) is represented by a dotted line. Managed Moderate
Growth Indices Blend (MMGIB) is represented by a series of dashes. The line
graph is a visual representation of a comparison of a change in value of a
hypothetical $10,000 investment in the Fund, the S&P 500, and the MMGIB. The "x"
axis reflects computation periods from 5/25/94 to 11/30/99. The "y" axis
reflects the cost of investment in $5,000 increments ranging from$5,000 to
$35,000. The right margin reflects the ending value of the hypothetical
investment in the Fund as compared to the S&P 500 and the MMGIB; the ending
values are $18,253, $34,071, and $21,100, respectively. Above the legend are the
one-year, five-years and Start of Performance (5/25/94) Average Annual Total
Returns for the for the period ended November 30, 1999; the Average Annual Total
Returns are 10.26%, 12.99% and 11.52%, respectively.
G. The graphic representation here displayed consists of a boxed legend in the
top left indicating the components of the corresponding line graph. Federated
Managed Growth Fund (formerly, Federated Managed Aggressive Growth Fund)
(Institutional Shares) (the "Fund") is represented by a solid black line. The
Standard and Poor's 500 (S&P 500) is represented by a dotted line. Managed
Growth Indices Blend (MGIB) is represented by a series of dashes. The line graph
is a visual representation of a comparison of a change in value of a
hypothetical $25,000 investment in the Fund, the S&P 500, and the MGIB. The "x"
axis reflects computation periods from 5/25/94 to 11/30/98. The "y" axis
reflects the cost of investment in $10,000increments ranging from $20,000 to
$80,000. The right margin reflects the ending value of the hypothetical
investment in the Fund as compared to the S&P 500 and the MGIB; the ending
values are $50,454, $85,178, and $57,101, respectively. Above the legend are the
one-year, five-year and Start of Performance (5/25/94) Average Annual Total
Returns for the for the period ended November 30, 1999; the Average Annual Total
Returns are 14.83%, 15.28% and 13.56%, respectively.
H. The graphic representation here displayed consists of a boxed legend in the
top left indicating the components of the corresponding line graph. Federated
Managed Growth Fund (formerly, Federated Managed Aggressive Growth Fund) (Select
Shares) (the "Fund") is represented by a solid black line. The Standard and
Poor's 500 (S&P 500) is represented by a dotted line. Managed Growth Indices
Blend (MGIB) is represented by a series of dashes. The line graph is a visual
representation of a comparison of a change in value of a hypothetical $10,000
investment in the Fund, the S&P 500, and the MGIB. The "x" axis reflects
computation periods from 5/25/94 to 11/30/98. The "y" axis reflects the cost of
investment in $5,000 increments ranging from $5,000 to $35,000. The right margin
reflects the ending value of the hypothetical investment in the Fund as compared
to the S&P 500 and the MGIB; the ending values are $19,593, $34,071, and
$22,840, respectively. Above the legend are the one-year, five-year and Start of
Performance (5/25/94) Average Annual Total Returns for the for the period ended
November 30, 1999; the Average Annual Total Returns are 14.05%, 14.52% and
12.82%, respectively.
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