File No. __________
As filed with the SEC on August 9, 2017
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-14
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
Pre-Effective Amendment No. __
Post-Effective Amendment No. __
(Check appropriate box or boxes)
FEDERATED MDT EQUITY TRUST
(Exact Name of Registrant as Specified in Charter)
1-800-341-7400
(Area Code and Telephone Number)
4000 Ericsson Drive
Warrendale, PA 15086-7561
(Address of Principal Executive Offices)
John W. McGonigle, Esquire
Federated Investors Tower
1001 Liberty Avenue
Pittsburgh, Pennsylvania 15222-3779
(Name and Address of Agent for Service)
Copies to:
Thomas Early, Esquire
Goodwin Procter LLP
601 S. Figueroa St.
41st Floor
Los Angeles, CA 90017
Acquisition of the assets of
FEDERATED CLOVER VALUE FUND
(A Portfolio of Federated Equity Funds)
By and in exchange for
Class A Shares, Class B Shares, Class C Shares, Class R Shares and Institutional Shares
of
FEDERATED MDT LARGE CAP VALUE FUND
(A Portfolio of Federated MDT Equity Trust)
And
Acquisition of the assets of
FEDERATED MDT LARGE CAP VALUE FUND
By and in exchange for
Class A Shares, Institutional Shares, Service Shares and Class R6 Shares
of
FEDERATED MDT LARGE CAP VALUE FUND
(A Portfolio of Federated MDT Equity Trust)
Approximate Date of Proposed Public Offering: As soon as
practicable after this Registration Statement becomes effective
under the Securities Act of 1933, as amended.
Title of Securities Being Registered:
Class A Shares, Class B Shares, Class C Shares, Class R Shares, Institutional Shares, Service Shares, and Class R6 Shares,
without par value, of
Federated MDT Large Cap Value Fund
It is proposed that this filing will become effective
on September 8, 2017 pursuant to Rule 488.
No filing fee is due because Registrant is relying on Section 24(f) of the Investment Company Act of 1940, as amended.
Please Vote Today!
We recommend that you read the Prospectus/Proxy Statement in its entirety; the explanation will help you decide on the proposal.
• | The Board of Trustees of Federated Equity Funds and the Board of Trustees of FMLCV, including the Independent Trustees of each, respectively, unanimously recommend that you vote in favor of the proposal because each Board believes that the Reorganization is in the best interests of the Reorganizing Funds and their shareholders and that the interests of the existing shareholders of the Reorganizing Funds will not be diluted as a result of the Reorganization. |
• | After the Reorganization, shareholders of the Reorganizing Funds will be invested in a fund with greater assets, net share class expense ratios lower than or equal to the existing ratios in FCVF and equivalent to those in FMLCV and the stronger historical performance of FMLCV's strategy. |
• | The value of your investment will not change as a result of the Reorganization and you will not have to pay any sales charge in connection with the exchange of your shares. You will receive shares of the Surviving Fund (“Shares”) with a total dollar value equal to the total dollar value of the Reorganizing Fund shares (“Shares”) that you own at the time of the Reorganization. |
If you own Shares in: | If you own Shares in | You will receive Shares of: |
Federated Clover Value Fund | Federated MDT Large Cap Value Fund | Surviving Fund |
Class A Shares | Class A Shares | Class A Shares |
Class B Shares | Class B Shares | |
Class C Shares | Class C Shares | |
Class R Shares | Class R Shares | |
Institutional Shares | Institutional Shares | Institutional Shares |
Service Shares | Service Shares | |
Class R6 Shares | Class R6 Shares |
• | The Reorganization is expected to be tax-free under the Internal Revenue Code of 1986, as amended. |
• | FCVF will distribute any undistributed income and net capital gains accumulated prior to the Reorganization to its shareholders. All or a portion of any net capital gain realized by FMLCV as of October 31, 2017 will be distributed to its shareholders prior to the Reorganization. These distributions, if any, will be taxable. |
• | Online –Use the web address on the proxy card; |
• | Telephone –Use the toll-free telephone number on the proxy card; |
• | Mail –Complete and return the proxy card in the enclosed postage paid envelope; or |
• | In Person at the November 6, 2017, meeting. |
1. | Sign and return the proxy card without indicating a preference, your vote will be cast “for” the proposal. |
2. | Do not respond at all, we may contact you by telephone to ask you to cast your vote. |
and vote FOR the proposal.
Warrendale, PA 15086-7561
Telephone No: 1-800-341-7400
TO BE HELD NOVEMBER 6, 2017
Secretary
PROXY CARD. IF YOU ARE UNABLE TO ATTEND THE MEETING, PLEASE MARK, SIGN,
MAY BE REPRESENTED AT THE MEETING. THE ENCLOSED ENVELOPE REQUIRES
NO POSTAGE IF MAILED IN THE UNITED STATES.
4000 Ericsson Drive
Warrendale, PA 15086-7561
Telephone No: 1-800-341-7400
4000 Ericsson Drive
Warrendale, PA 15086-7561
Telephone No: 1-800-341-7400
4000 Ericsson Drive
Warrendale, PA 15086-7561
Telephone No: 1-800-341-7400
Investment Objectives | ||
FCVF Reorganizing Fund | FMLCV Reorganizing Fund | “New” FMLCV Surviving Fund |
To seek capital appreciation | To seek to provide growth of income and capital | To seek to provide growth of income and capital* |
* | Non-fundamental policy |
Name of Fund | Share Class | Total Net Assets |
Federated Clover Value Fund | Class A Shares | $509,533,428 |
Class B Shares | $ 18,071,561 | |
Class C Shares | $ 28,603,431 | |
Class R Shares | $ 21,819,892 | |
Institutional Shares | $102,017,558 |
Name of Fund | Share Class | Total Net Assets |
Federated MDT Large Cap Value Fund | Class A Shares | $ 25,040,214 |
Class R6 Shares | $379,519,232 | |
Institutional Shares | $ 50,339,255 | |
Service Shares | $283,733,579 |
• | The Reorganizing Funds are being requested to bear direct proxy expenses (e.g., mailing, processing, tabulation, printing and solicitation costs and expenses and the costs of filing, printing and mailing supplements to the Funds' registration statements) associated with the Reorganization estimated at $213,401 (or $0.0075 per share) for FCVF and $74,355 (or $0.0028 per share) for FMLCV (after operation of the contractual expense cap); |
• | The Advisers will pay certain of the other direct and indirect expenses of the Reorganization on behalf of the Reorganizing Funds (consisting primarily of legal and accounting fees); |
• | Brokerage expenses for the Reorganizing Funds related to the disposition of portfolio securities by the Reorganizing Funds prior to the Reorganization to better align their portfolios with the Surviving Fund's portfolio. It is not anticipated that FMLCV will engage in any such portfolio transactions specifically attributable to the Reorganization. It is anticipated that FCVF will reallocate its portfolio prior to the Reorganization and bear the associated brokerage expenses, which are estimated to be $200,000 (or $0.00705 per share). |
• | There will be no dilution to shareholders in the transaction because shareholders of both the Reorganizing Funds and the Surviving Fund will, after the Reorganization, be the owners of shares of the Surviving Fund having a total net asset value equal to the total net asset value of their holdings in the Reorganizing Funds or the Surviving Fund, as applicable, on the date of the Reorganization. |
HAVE BOTH UNANIMOUSLY RECOMMENDED THAT YOU VOTE “FOR” THE
APPROVAL OF THE REORGANIZATION.
INVESTMENT OBJECTIVES AND POLICIES | ||
FCVF (Reorganizing Fund) | FMLCV (Reorganizing Fund) | Federated MDT Large Cap Value Fund (Surviving Fund) |
The Fund's investment objective is to seek capital appreciation. The Fund seeks to achieve its investment objective by investing primarily in common stocks and other equity securities of U.S. companies with large market capitalizations. The Adviser seeks to invest in companies that it believes are undervalued relative to the market or their historic valuations. Securities with mid- or small-market capitalizations may also be held. Large-cap companies are considered to be companies with market capitalizations similar to those in the Russell 1000® Index. The Fund seeks to invest in securities of U.S. companies operating in a broad range of industries based primarily on value characteristics such as price-cash flow, price-earnings and price-book value ratios. In selecting securities for the Fund, the Adviser will seek to identify companies whose stock is out of favor with investors. In searching for undervalued companies in which to invest, the Adviser seeks companies with the fundamental strength to capitalize on change agents, such as internal changes (e.g., management changes, restructuring or merger and acquisition activity or sales mix shifts), external changes (e.g., regulatory changes, marketplace shifts or technological advances) or companies with deep seated advantages (e.g., captive customers, pricing power, patents or strong brand names) that are undergoing short-term challenges. The Adviser generally will consider selling a security when its price target for the security has been achieved, its investment thesis has been invalidated or if it finds a more compelling investment alternative. Under normal market conditions, the Fund invests its assets in a diversified portfolio of equity securities including common stocks, preferred stocks which are convertible into common stock, and ADRs and other domestically traded securities of foreign companies which may constitute up to 20% of the Fund's assets. In addition to these equity securities, the Fund may also invest in debt securities convertible into common stock, and may invest up to 5% of its net assets in warrants and rights to purchase common stocks, and up to 10% of its net assets in equity interests issued by real estate investment trusts (REITs). Assets of the Fund not invested in the equity securities described above may be invested in other securities such as money market funds, exchange-traded funds and repurchase agreements. | The Fund's investment objective is to provide growth of income and capital. The Fund seeks to achieve its objective by investing primarily in the common stock of large-sized, U.S. companies undervalued relative to the market. The strategy seeks to maximize return while controlling risk. Individual stocks are selected for inclusion in the Fund based upon the Optimum Q process, a proprietary, quantitative model that is designed to facilitate an objective, disciplined, quantitative analysis of every stock in the Fund's investment universe. The quantitative model constructs the portfolio by considering fundamental measures, analyzing expected trading costs and employing risk controls to promote diversification. Fundamental measures used in the Optimum Q process are derived from sources that include company financial statements, analyst analyses and market performance. Risk is controlled through diversification constraints which limit exposure to individual companies as well as to groups of correlated companies. The Optimum Q process also estimates trading costs in an effort to ensure that trades are generated only to the extent they are expected to be profitable on an after-trading-cost basis. The Adviser reviews the proposed trades produced by the process in an effort to ensure that they are based on accurate and current information. If a proposed trade is deemed to be based on inaccurate or stale information, the trade decision is deferred until the model incorporates timely and accurate information. The Adviser selects most of its investments from companies listed in the Russell 1000® Value Index, an index that measures the performance of those companies with lower price-to-book ratios and lower forecasted growth values within the large-cap segment of the U.S. equity universe, which includes the 1,000 largest U.S. companies by market capitalization. Because the Fund invests in companies that are defined largely by reference to the Russell 1000® Value Index, the market capitalization of companies in which the Fund may invest will vary with market conditions. The Russell Index is reconstituted on an annual basis. As of October 31, 2016, companies in the Russell 1000® Value Index ranged in market capitalization from $642.2 million to $605.9 billion. | The Fund's investment objective is to provide growth of income and capital. The Fund seeks to achieve its objective by investing principally in the common stock of large-sized, U.S. companies undervalued relative to the market. The strategy seeks to maximize return while controlling risk. Individual stocks are selected for inclusion in the Fund based a proprietary, quantitative model that is designed to facilitate an objective, disciplined, quantitative analysis of every stock in the Fund's investment universe. The quantitative model constructs the portfolio by considering fundamental measures, analyzing expected trading costs and employing risk controls to promote diversification. Fundamental measures used in the process are derived from sources that include company financial statements, analyst analyses and market performance. Risk is controlled through diversification constraints which limit exposure to individual companies as well as to groups of correlated companies. The process also estimates trading costs in an effort to ensure that trades are generated only to the extent they are expected to be profitable on an after-trading-cost basis. The Adviser reviews the proposed trades produced by the process in an effort to ensure that they are based on accurate and current information. If a proposed trade is deemed to be based on inaccurate or stale information, the trade decision is deferred until the model incorporates timely and accurate information. The Adviser selects most of its investments from companies listed in the Russell 1000® Value Index, an index that measures the performance of those companies with lower price-to-book ratios and lower forecasted growth values within the large-cap segment of the U.S. equity universe, which includes the 1,000 largest U.S. companies by market capitalization. Because the Fund invests in companies that are defined largely by reference to the Russell 1000® Value Index, the market capitalization of companies in which the Fund may invest will vary with market conditions. The Russell Index is reconstituted on an annual basis. As of October 31, 2016, companies in the Russell 1000® Value Index ranged in market capitalization from $642.2 million to $605.9 billion. |
INVESTMENT OBJECTIVES AND POLICIES - continued | ||
FCVF (Reorganizing Fund) | FMLCV (Reorganizing Fund) | Federated MDT Large Cap Value Fund (Surviving Fund) |
The Fund may use derivative contracts and/or hybrid instruments to implement elements of its investment strategy. For example, the Fund may use derivative contracts or hybrid instruments to increase or decrease the portfolio's exposure to the investment(s) underlying the derivative or hybrid instruments in an attempt to benefit from changes in the value of the underlying investments(s). Additionally, by way of example, the Fund may use derivative contracts in an attempt to: 1. obtain premiums from the sale of derivative contracts; 2. realize gains from trading a derivative contract; or 3. hedge against potential losses. There can be no assurance that the Fund's use of derivative contracts or hybrid instruments will work as intended. The Fund actively trades its portfolio securities in an attempt to achieve its investment objective. Active trading will cause the Fund to have an increased portfolio turnover rate, which is likely to generate shorter-term gains (losses) for its shareholders, which are taxed at a higher rate than longer-term gains (losses). Actively trading portfolio securities increases the Fund's trading costs and may have an adverse impact on the Fund's performance. Temporary Investments The Fund may temporarily depart from its principal investment strategies by investing its assets in shorter-term debt securities and similar obligations or holding cash. It may do this in response to unusual circumstances, such as: adverse market, economic or other conditions (for example, to help avoid potential losses, or during periods when there is a shortage of appropriate securities); to maintain liquidity to meet shareholder redemptions; or to accommodate cash inflows. It is possible that such investments could affect the Fund's investment returns and/or the ability to achieve the Fund's investment objectives. | The Fund will invest its assets so that at least 80% of its net assets (plus any borrowings for investment purposes) are invested in large-cap investments. The Fund will notify shareholders at least 60 days in advance of any change in its investment policies that would enable the Fund to normally invest less than 80% of its net assets (plus any borrowings for investment purposes) in large-cap investments. The Fund actively trades its portfolio securities in an attempt to achieve its investment objective. Active trading will cause the Fund to have an increased portfolio turnover rate, which is likely to generate shorter-term gains (losses) for its shareholders, which are taxed at a higher rate than longer-term gains (losses). Actively trading portfolio securities increases the Fund's trading costs and may have an adverse impact on the Fund's performance. Temporary Investments The Fund may temporarily depart from its principal investment strategies by investing its assets in shorter-term debt securities and similar obligations or holding cash. It may do this in response to unusual circumstances, such as: adverse market, economic or other conditions (for example, to help avoid potential losses, or during periods when there is a shortage of appropriate securities); to maintain liquidity to meet shareholder redemptions; or to accommodate cash inflows. It is possible that such investments could affect the Fund's investment returns and/or the ability to achieve the Fund's investment objectives. | The Fund will invest its assets so that at least 80% of its net assets (plus any borrowings for investment purposes) are invested in large-cap investments. The Fund will notify shareholders at least 60 days in advance of any change in its investment policies that would enable the Fund to normally invest less than 80% of its net assets (plus any borrowings for investment purposes) in large-cap investments. The Fund actively trades its portfolio securities in an attempt to achieve its investment objective. Active trading will cause the Fund to have an increased portfolio turnover rate, which is likely to generate shorter-term gains (losses) for its shareholders, which are taxed at a higher rate than longer-term gains (losses). Actively trading portfolio securities increases the Fund's trading costs and may have an adverse impact on the Fund's performance. Temporary Investments The Fund may temporarily depart from its principal investment strategies by investing its assets in shorter-term debt securities and similar obligations or holding cash. It may do this in response to unusual circumstances, such as: adverse market, economic or other conditions (for example, to help avoid potential losses, or during periods when there is a shortage of appropriate securities); to maintain liquidity to meet shareholder redemptions; or to accommodate cash inflows. It is possible that such investments could affect the Fund's investment returns and/or the ability to achieve the Fund's investment objectives. |
Principal Investment Risks | Applies to FCVF Reorganizing Fund | Applies to FMLCV Reorganizing Fund | Applies to Federated MDT Large Cap Value Fund Surviving Fund |
Stock Market Risk. The value of equity securities in the Fund's portfolio will fluctuate and, as a result, the Fund's Share price may decline suddenly or over a sustained period of time. Information publicly available about a company whether from the company's financial statements or other disclosures or from third parties, or information available to some but not all market participants, can affect the price of a company's shares in the market. *[Among other factors, equity securities may decline in value because of an increase in interest rates or changes in the stock market. Recent and potential future changes in industry and/or economic trends, as well as changes in monetary policy made by central banks and/or their governments, also can affect the level of interest rates and contribute to the development of or increase in volatility, illiquidity, shareholder redemptions and other adverse effects (such as a decline in a company's stock price), which could negatively impact the Fund's performance.] | Yes | *Yes (with additional bracketed language) | *Yes (with additional bracketed language) |
Large-Cap Company Risk. The Fund may invest in large capitalization (or “large-cap”) companies. In addition, large cap companies may have fewer opportunities to expand the market for their products or services, may focus their competitive efforts on maintaining or expanding their market share, and may be less capable of responding quickly to competitive challenges. These factors could result in the share price of large companies not keeping pace with the overall stock market or growth in the general economy, and could have a negative effect on the Fund's portfolio, performance and Share price. | Yes | Yes | Yes |
Mid-Cap Company Risk. The Fund may invest in mid-capitalization (or “mid-cap”) companies. Mid-cap companies often have narrower markets, limited managerial and financial resources, more volatile performance and greater risk of failure, compared to larger, more established companies. These factors could increase the volatility of the Fund's portfolio, performance and Share price. | Yes | No | No |
Small-Cap Company Risk. The Fund may invest in small capitalization (or “small-cap”) companies. Small-cap companies may have less liquid stock, a more volatile share price, unproven track records, a limited product or service base, and limited access to capital. The above factors could make small-cap companies more likely to fail than larger companies, and increase the volatility of the Fund's portfolio, performance and Share price. | Yes | No | No |
Risk Related to Investing for Value. Due to their relatively low valuations, value stocks are typically less volatile than growth stocks. Additionally, value stocks tend to have higher dividends than growth stocks. This means they depend less on price changes for returns and may lag behind growth stocks in an up market. | Yes | Yes | Yes |
Sector Risk. Because the Fund may allocate relatively more assets to certain industry sectors than others, the Fund's performance may be more susceptible to any developments which affect those sectors emphasized by the Fund. | Yes | Yes | Yes |
Risk of Investing in Derivative Contracts and Hybrid Instruments. Derivative contracts and hybrid instruments involve risks different from, or possibly greater than, risks associated with investing directly in securities and other traditional investments. Specific risk issues related to the use of such contracts and instruments include valuation and tax issues, increased potential for losses and/or costs to the Fund, and a potential reduction in gains to the Fund. Each of these issues is described in greater detail in this Prospectus. Derivative contracts and hybrid instruments may also involve other risks described in this Prospectus or the Fund's Statement of Additional Information (SAI), such as stock market, interest rate, credit, currency, liquidity and leverage risks. | Yes | No | No |
Counterparty Credit Risk. A party to a transaction (such as a derivative transaction) involving the Fund may fail to meet its obligations. This could cause the Fund to lose money or to lose the benefit of the transaction or prevent the Fund from selling or buying other securities to implement its investment strategy. | Yes | No | No |
Liquidity Risk. The securities in which the Fund invests may be less readily marketable and may be subject to greater fluctuation in price than other securities. Liquidity risk also refers to the possibility that the Fund may not be able to sell a security or close out a derivative contract when it wants to. | Yes | No | No |
Leverage Risk. Leverage risk is created when an investment (such as a derivative transaction) exposes the Fund to a level of risk that exceeds the amount invested. Changes in the value of such an investment magnify the Fund's risk of loss and potential for gain. | Yes | No | No |
Risk of Investing in ADRs and Domestically Traded Securities of Foreign Issuers. Because the Fund may invest in ADRs and other domestically traded securities of foreign companies, the Fund's Share price may be more affected by foreign economic and political conditions, taxation policies and accounting and auditing standards than would otherwise be the case. | Yes | No | No |
Exchange-Traded Funds Risk. An investment in an ETF generally presents the same primary risks as an investment in a conventional fund (i.e., one that is not exchange traded) that has the same investment objectives, strategies and policies. The price of an ETF can fluctuate up or down, and the Fund could lose money investing in an ETF if the prices of the securities owned by the ETF go down. | Yes | No | No |
Principal Investment Risks - CONTINUED | Applies to FCVF Reorganizing Fund | Applies to FMLCV Reorganizing Fund | Applies to Federated MDT Large Cap Value Fund Surviving Fund |
Technology Risk. The Adviser uses various technologies in managing the Fund, consistent with its investment objective and strategy described in this Prospectus. For example, proprietary and third-party data and systems are utilized to support decision making for the Fund. Data imprecision, software or other technology malfunctions, programming inaccuracies and similar circumstances may impair the performance of these systems, which may negatively affect Fund performance. | Yes | No | No |
Quantitative Modeling Risk. The Fund employs quantitative models as a management technique. These models examine multiple economic factors using various proprietary and third-party data. The results generated by quantitative analysis may perform differently than expected and may negatively affect Fund performance for various reasons (for example, human judgment, data imprecision, software or other technology malfunctions, or programming inaccuracies). | No | Yes | Yes |
INVESTMENT LIMITATIONS | ||
Fundamental Policies | ||
FCVF Reorganizing Fund | FMLCV Reorganizing Fund | Federated MDT Large Cap Value Fund Surviving Fund |
Borrowing Money and Issuing Senior Securities. The Fund may borrow money, directly or indirectly, and issue senior securities to the maximum extent permitted under the 1940 Act, any rule or order thereunder, or any SEC staff interpretation thereof. | Borrowing Money and Issuing Senior Securities. The Fund may borrow money, directly or indirectly, and issue senior securities to the maximum extent permitted under the Investment Company Act of 1940 (“1940 Act”). | Borrowing Money and Issuing Senior Securities. The Fund may borrow money, directly or indirectly, and issue senior securities to the maximum extent permitted under the Investment Company Act of 1940 (“1940 Act”). |
Diversification. With respect to securities comprising 75% of the value of its total assets, the Fund will not purchase securities of any one issuer (other than cash, cash items, securities issued or guaranteed by the government of the United States or its agencies or instrumentalities and repurchase agreements collateralized by such U.S. government securities, and securities of other investment companies) if as a result more than 5% of the value of its total assets would be invested in the securities of that issuer, or the Fund would own more than 10% of the outstanding voting securities of that issuer. | Diversification. With respect to securities comprising 75% of the value of its total assets, the Fund will not purchase securities of any one issuer (other than cash; cash items; securities issued or guaranteed by the government of the United States or its agencies or instrumentalities and repurchase agreements collateralized by such U.S. government securities; and securities of other investment companies) if, as a result, more than 5% of the value of its total assets would be invested in the securities of that issuer, or the Fund would own more than 10% of the outstanding voting securities of that issuer. | Diversification. With respect to securities comprising 75% of the value of its total assets, the Fund will not purchase securities of any one issuer (other than cash; cash items; securities issued or guaranteed by the government of the United States or its agencies or instrumentalities and repurchase agreements collateralized by such U.S. government securities; and securities of other investment companies) if, as a result, more than 5% of the value of its total assets would be invested in the securities of that issuer, or the Fund would own more than 10% of the outstanding voting securities of that issuer. |
Investing in Commodities. The Fund may invest in commodities to the maximum extent permitted under the 1940 Act. | Investing in Commodities. The Fund may not purchase or sell physical commodities, provided that the Fund may purchase securities of companies that deal in commodities. | Investing in Commodities. The Fund may not purchase or sell physical commodities, provided that the Fund may purchase securities of companies that deal in commodities. |
INVESTMENT LIMITATIONS | ||
Fundamental Policies | ||
Underwriting. The Fund may not underwrite the securities of other issuers, except that the Fund may engage in transactions involving the acquisition, disposition or resale of its portfolio securities, under circumstances where it may be considered to be an underwriter under the Securities Act of 1933. | Underwriting. The Fund may not underwrite the securities of other issuers, except that the Fund may engage in transactions involving the acquisition, disposition or resale of its portfolio securities, under circumstances where it may be considered to be an underwriter under the Securities Act of 1933. | Underwriting. The Fund may not underwrite the securities of other issuers, except that the Fund may engage in transactions involving the acquisition, disposition or resale of its portfolio securities, under circumstances where it may be considered to be an underwriter under the Securities Act of 1933. |
Lending. The Fund may not make loans, provided that this restriction does not prevent the Fund from purchasing debt obligations, entering into repurchase agreements, lending its assets to broker/dealers or institutional investors and investing in loans, including assignments and participation interests. | Lending. The Fund may not make loans, provided that this restriction does not prevent the Fund from purchasing debt obligations, entering into repurchase agreements, lending its assets to broker/dealers or institutional investors and investing in loans, including assignments and participation interests. | Lending. The Fund may not make loans, provided that this restriction does not prevent the Fund from purchasing debt obligations, entering into repurchase agreements, lending its assets to broker/dealers or institutional investors and investing in loans, including assignments and participation interests. |
Concentration. The Fund will not make investments that will result in the concentration of its investments in the securities of issuers primarily engaged in the same industry. For purposes of this restriction, the term concentration has the meaning set forth in the 1940 Act, any rule or order thereunder, or any SEC staff interpretation thereof. Government securities and municipal securities will not be deemed to constitute an industry. | Concentration. The Fund will not make investments that will result in the concentration of its investments in the securities of issuers primarily engaged in the same industry. Government securities, municipal securities and bank instruments will not be deemed to constitute an industry. | Concentration. The Fund will not make investments that will result in the concentration of its investments in the securities of issuers primarily engaged in the same industry. Government securities, municipal securities and bank instruments will not be deemed to constitute an industry. |
Investing in Real Estate. The Fund may not purchase or sell real estate, provided that this restriction does not prevent the Fund from investing in issuers which invest, deal or otherwise engage in transactions in real estate or interests therein, or investing in securities that are secured by real estate or interests therein. The Fund may exercise its rights under agreements relating to such securities, including the right to enforce security interests and to hold real estate acquired by reason of such enforcement until that real estate can be liquidated in an orderly manner. | Investing in Real Estate. The Fund may not purchase or sell real estate, provided that this restriction does not prevent the Fund from investing in issuers which invest, deal, or otherwise engage in transactions in real estate or interests therein, or investing in securities that are secured by real estate or interests therein. The Fund may exercise its rights under agreements relating to such securities, including the right to enforce security interests and to hold real estate acquired by reason of such enforcement until that real estate can be liquidated in an orderly manner. | Investing in Real Estate. The Fund may not purchase or sell real estate, provided that this restriction does not prevent the Fund from investing in issuers which invest, deal, or otherwise engage in transactions in real estate or interests therein, or investing in securities that are secured by real estate or interests therein. The Fund may exercise its rights under agreements relating to such securities, including the right to enforce security interests and to hold real estate acquired by reason of such enforcement until that real estate can be liquidated in an orderly manner. |
INVESTMENT LIMITATIONS | ||
Non-Fundamental Policies | ||
FCVF Reorganizing Fund | FMLCV Reorganizing Fund | Federated MDT Large Cap Value Fund Surviving Fund |
No corresponding limitation. | Non-Fundamental Names Rule Policy. The Fund will invest its assets so that at least 80% of its net assets (plus any borrowings for investment purposes) are invested in equity investments. The Fund will notify shareholders at least 60 days in advance of any change in its investment policies that would enable the Fund to normally invest less than 80% of its net assets (plus any borrowings for investment purposes) in equity investments. | Non-Fundamental Names Rule Policy. The Fund will invest its assets so that at least 80% of its net assets (plus any borrowings for investment purposes) are invested in equity investments. The Fund will notify shareholders at least 60 days in advance of any change in its investment policies that would enable the Fund to normally invest less than 80% of its net assets (plus any borrowings for investment purposes) in equity investments. |
INVESTMENT LIMITATIONS | ||
Non-Fundamental Policies | ||
No corresponding limitation. | Concentration. In applying the Fund's concentration restriction: (a) utility companies will be divided according to their services, for example, gas, gas transmission, electric and telephone will each be considered a separate industry; (b) financial service companies will be classified according to the end users of their services, for example, automobile finance, bank finance and diversified finance will each be considered a separate industry; and (c) asset-backed securities will be classified according to the underlying assets securing such securities. To conform to the current view of the SEC staff that only domestic bank instruments may be excluded from industry concentration limitations, as a matter of non-fundamental policy, the Fund will not exclude foreign bank instruments from industry concentration limitation tests as long as the policy of the SEC remains in effect. In addition, investments in bank instruments, and investments in certain industrial development bonds funded by activities in a single industry, will be deemed to constitute investment in an industry, except when held for temporary defensive purposes. The investment of more than 25% of the value of the Fund's total assets in any one industry will constitute “concentration.” | Concentration. In applying the Fund's concentration restriction: (a) utility companies will be divided according to their services, for example, gas, gas transmission, electric and telephone will each be considered a separate industry; (b) financial service companies will be classified according to the end users of their services, for example, automobile finance, bank finance and diversified finance will each be considered a separate industry; and (c) asset-backed securities will be classified according to the underlying assets securing such securities. To conform to the current view of the SEC staff that only domestic bank instruments may be excluded from industry concentration limitations, as a matter of non-fundamental policy, the Fund will not exclude foreign bank instruments from industry concentration limitation tests as long as the policy of the SEC remains in effect. In addition, investments in bank instruments, and investments in certain industrial development bonds funded by activities in a single industry, will be deemed to constitute investment in an industry, except when held for temporary defensive purposes. The investment of more than 25% of the value of the Fund's total assets in any one industry will constitute “concentration.” |
No corresponding limitation. | Restricted Securities. The Fund may invest in restricted securities. Restricted securities are any securities in which the Fund may invest pursuant to its investment objective and policies but which are subject to restrictions on resale under federal securities law. Under criteria established by the Board, certain restricted securities are determined to be liquid. To the extent that restricted securities are not determined to be liquid, the Fund will limit their purchase, together with other illiquid securities, to 15% of its net assets. | Restricted Securities. The Fund may invest in restricted securities. Restricted securities are any securities in which the Fund may invest pursuant to its investment objective and policies but which are subject to restrictions on resale under federal securities law. Under criteria established by the Board, certain restricted securities are determined to be liquid. To the extent that restricted securities are not determined to be liquid, the Fund will limit their purchase, together with other illiquid securities, to 15% of its net assets. |
Illiquid Securities. The Fund will not purchase securities for which there is no readily available market, or enter into repurchase agreements or purchase time deposits that the Fund cannot dispose of within seven days, if immediately after and as a result, the value of such securities would exceed, in the aggregate, 15% of the Fund's assets. | Illiquid Securities. The Fund will not purchase securities for which there is no readily available market, or enter into repurchase agreements or purchase time deposits that the fund cannot dispose of within seven days, if immediately after and as a result, the value of such securities would exceed, in the aggregate, 15% of the Fund's net assets. | Illiquid Securities. The Fund will not purchase securities for which there is no readily available market, or enter into repurchase agreements or purchase time deposits that the fund cannot dispose of within seven days, if immediately after and as a result, the value of such securities would exceed, in the aggregate, 15% of the Fund's net assets. |
Investing in Other Investment Companies. The Fund may invest its assets in securities of other investment companies as an efficient means of carrying out its investment policies. It should be noted that investment companies incur certain expenses, such as management fees, and, therefore, any investment by the Fund in shares of other investment companies may be subject to such additional expenses. At the present time, the Fund expects that its investments in other investment companies may include shares of money market funds, including funds affiliated with the Fund's investment adviser. | No corresponding limitation. | No corresponding limitation. |
INVESTMENT LIMITATIONS | ||
Non-Fundamental Policies | ||
Purchases on Margin. The Fund will not purchase securities on margin, provided that the Fund may obtain short-term credits necessary for the clearance of purchases and sales of securities, and further provided that the Fund may make margin deposits in connection with its use of financial options and futures, forward and spot currency contracts, swap transactions and other financial contracts or derivative instruments. | Purchases on Margin. The Fund will not purchase securities on margin, provided that the Fund may obtain short-term credits necessary for the clearance of purchases and sales of securities, and further provided that the Trust may make margin deposits in connection with its use of financial options and futures, forward and spot currency transactions and other financial contracts or derivative instruments. | Purchases on Margin. The Fund will not purchase securities on margin, provided that the Fund may obtain short-term credits necessary for the clearance of purchases and sales of securities, and further provided that the Trust may make margin deposits in connection with its use of financial options and futures, forward and spot currency transactions and other financial contracts or derivative instruments. |
Pledging Assets. The Fund will not mortgage, pledge or hypothecate any of its assets, provided that this shall not apply to the transfer of securities in connection with any permissible borrowing or to collateral arrangements in connection with permissible activities. | Pledging Assets. The Fund will not mortgage, pledge, or hypothecate any of its assets, provided that this shall not apply to the transfer of securities in connection with any permissible borrowing or to collateral arrangements in connection with permissible activities. | Pledging Assets. The Fund will not mortgage, pledge, or hypothecate any of its assets, provided that this shall not apply to the transfer of securities in connection with any permissible borrowing or to collateral arrangements in connection with permissible activities. |
Additional Information. For purposes of the above limitations, the Fund considers certificates of deposit and demand and time deposits issued by a U.S. branch of a domestic bank or savings association having capital, surplus and undivided profits in excess of $100,000,000 at the time of investment to be “cash items.” For purposes of the above limitation regarding investing in commodities, the 1940 Act requires that a Fund state in its registration statement a fundamental policy as to whether it reserves freedom of action to invest in commodities and prohibits a fund from purchasing commodities without shareholder approval, except in accordance with that policy. The 1940 Act does not otherwise specifically prohibit or restrict investment in commodities. For purposes of the above limitation regarding borrowing money and issuing senior securities, the 1940 Act allows a Fund to borrow up to one-third of its assets from banks and may borrow money and issue senior securities in certain circumstances to the extent that certain conditions are met. | Additional Information. For purposes of the above limitations, the Fund considers certificates of deposit and demand and time deposits issued by a U.S. branch of a domestic bank or savings association having capital, surplus and undivided profits in excess of $100,000,000 at the time of investment to be “cash items.” Except with respect to borrowing money, if a percentage limitation is adhered to at the time of investment, a later increase or decrease in percentage resulting from any change in value or net assets will not result in a violation of such limitation. | Additional Information. For purposes of the above limitations, the Fund considers certificates of deposit and demand and time deposits issued by a U.S. branch of a domestic bank or savings association having capital, surplus and undivided profits in excess of $100,000,000 at the time of investment to be “cash items.” Except with respect to borrowing money, if a percentage limitation is adhered to at the time of investment, a later increase or decrease in percentage resulting from any change in value or net assets will not result in a violation of such limitation. |
Shareholder Fees | Federated Clover Value Fund-A | Federated MDT Large Cap Value Fund-A | Surviving Fund, Pro Forma Combined-A | |
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | 5.50% | 5.50% | 5.50% | |
Maximum Deferred Sales Charge (Load) (as a percentage of original purchase price or redemption proceeds, as applicable) | 0.00% | 0.00% | 0.00% | |
Maximum Sales Charge (Load) Imposed on Reinvested Dividends (and other Distributions) (as a percentage of offering price) | None | None | None | |
Redemption Fee (as a percentage of amount redeemed, if applicable) | None | None | None | |
Exchange Fee | None | None | None | |
Annual Fund Operating Expenses (expense that you pay each year as a percentage of the value of your investment) | ||||
Management Fee | 0.75% | 0.75% | 0.68% | |
Distribution (12b-1) Fee | 0.00%1 | 0.00%1 | 0.00%1 | |
Other Expenses | 0.55% | 0.47% | 0.51% | |
Acquired Fund Fees and Expenses | 0.02% | 0.01% | 0.01% | |
Total Annual Fund Operating Expenses | 1.32% | 1.23% | 1.20% | |
Contractual Fee Waiver and Expense Reimbursements | N/A | (0.22)%2 | N/A | |
Fee Waivers and/or Expense Reimbursements | (0.11)%3 | (0.02)%2 | (0.21)%4 | |
Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements | 1.21% | 0.99% | 0.99% |
1 | The Fund has adopted a Distribution (12b-1) Plan for its A class pursuant to which the A class of the Fund may incur or charge a Distribution (12b-1) fee of up to a maximum amount of 0.05%. No such fee is currently incurred or charged by the A class of the Fund. The A class of the Fund will not incur or charge such a Distribution (12b-1) fee until such time as approved by the Fund's Board of Trustees (the “Trustees”). |
2 | Under the investment advisory contract, the Adviser is required to reimburse/waive the amount, limited to the amount of the management fee, by which the Fund's aggregate annual operating expenses, including the management fee, but excluding interest, taxes, brokerage commissions, expenses of registering and qualifying the Fund and its Shares under federal and state laws, expenses of withholding taxes and extraordinary expenses, exceed (after voluntary waivers and reimbursements) 1.00% of its average daily net assets. Shareholders must approve any changes to this contractual waiver/reimbursement. It should be noted that this contractual fee cap does not exist in the Surviving Fund. In addition, the Adviser and certain of its affiliates on their own initiative have agreed to waive certain amounts of their respective fees and/or reimburse expenses. Total annual fund operating expenses (excluding Acquired Fund Fees and Expenses, interest expense, extraordinary expenses, and proxy-related expenses, paid by the Fund, if any) paid by the Fund's A class (after the voluntary waivers and/or reimbursements) will not exceed 0.98% (the “Fee Limit”), respectively, up to but not including the later of (the “Termination Date”): (a) February 1, 2018; or (b) the date of the Fund's next effective Prospectus. While the Adviser and its affiliates currently do not anticipate terminating or increasing these additional arrangements prior to the Termination Date, these additional arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the agreement of the Fund's Board of Trustees. |
The Adviser and certain of its affiliates on their own initiative have agreed to waive certain amounts of their respective fees and/or reimburse expenses. Total annual fund operating expenses (excluding Acquired Fund Fees and Expenses, interest expense, extraordinary expenses, line of credit expenses and proxy-related expenses paid by the Fund, if any) paid by the Fund's A class (after the voluntary waivers and/or reimbursements) will not exceed 1.19% (the “Fee Limit”), respectively, up to but not including the later of (the “Termination Date”): (a) December 1, 2017; or (b) the date of the Fund's next effective Prospectus. While the Adviser and its affiliates currently do not anticipate terminating or increasing these arrangements prior to the Termination Date, these arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the agreement of the Trustees. | 3 |
The Adviser and certain of its affiliates on their own initiative have agreed to waive certain amounts of their respective fees and/or reimburse expenses. Total annual fund operating expenses (excluding Acquired Fund Fees and Expenses, interest expense, extraordinary expenses, and proxy-related expenses, paid by the Fund, if any) paid by the Fund's A class (after the voluntary waivers and/or reimbursements) will not exceed 0.98% (the “Fee Limit”), respectively, up to but not including the later of (the “Termination Date”): (a) December 1, 2018 (or one year from the date of the Reorganization, with respect to the Surviving Fund pro forma information); or (b) the date of the Fund's next effective Prospectus. While the Adviser and its affiliates currently do not anticipate terminating or increasing these additional arrangements prior to the Termination Date, these additional arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the agreement of the Fund's Board of Trustees. | 4 |
Shareholder Fees | Federated Clover Value Fund-B | Federated MDT Large Cap Value Fund-N/A | Surviving Fund, Pro Forma Combined-B | |
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | None | N/A | None | |
Maximum Deferred Sales Charge (Load) (as a percentage of original purchase price or redemption proceeds, as applicable) | 5.50% | N/A | 5.50% | |
Maximum Sales Charge (Load) Imposed on Reinvested Dividends (and other Distributions) (as a percentage of offering price) | None | N/A | None | |
Redemption Fee (as a percentage of amount redeemed, if applicable) | None | N/A | None | |
Exchange Fee | None | N/A | None | |
Annual Fund Operating Expenses (expense that you pay each year as a percentage of the value of your investment) | ||||
Management Fee | 0.75% | N/A | 0.68% | |
Distribution (12b-1) Fee | 0.75% | N/A | 0.75% | |
Other Expenses | 0.63% | N/A | 0.58% | |
Acquired Fund Fees and Expenses | 0.02% | N/A | 0.01% | |
Total Annual Fund Operating Expenses | 2.15% | N/A | 2.02% | |
Fee Waivers and/or Expense Reimbursements | (0.21)%1 | N/A | (0.16)%2 | |
Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements | 1.94% | N/A | 1.86% |
1 | The Adviser and certain of its affiliates on their own initiative have agreed to waive certain amounts of their respective fees and/or reimburse expenses. Total annual fund operating expenses (excluding Acquired Fund Fees and Expenses, interest expense, extraordinary expenses, line of credit expenses and proxy-related expenses paid by the Fund, if any) paid by the Fund's B class (after the voluntary waivers and/or reimbursements) will not exceed 1.92% (the “Fee Limit”), respectively, up to but not including the later of (the “Termination Date”): (a) December 1, 2017 (or one year from the date of the Reorganization, with respect to the Surviving Fund pro forma information); or (b) the date of the Fund's next effective Prospectus. While the Adviser and its affiliates currently do not anticipate terminating or increasing these arrangements prior to the Termination Date, these arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the agreement of the Trustees. |
The Adviser and certain of its affiliates on their own initiative have agreed to waive certain amounts of their respective fees and/or reimburse expenses. Total annual fund operating expenses (excluding Acquired Fund Fees and Expenses, interest expense, extraordinary expenses, and proxy-related expenses, paid by the Fund, if any) paid by the Fund's B class (after the voluntary waivers and/or reimbursements) will not exceed 1.85% (the “Fee Limit”), respectively, up to but not including the later of (the “Termination Date”): (a) December 1, 2018 (or one year from the date of the Reorganization, with respect to the Surviving Fund pro forma information); or (b) the date of the Fund's next effective Prospectus. While the Adviser and its affiliates currently do not anticipate terminating or increasing these additional arrangements prior to the Termination Date, these additional arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the agreement of the Fund's Board of Trustees. | 2 |
Shareholder Fees | Federated Clover Value Fund-C | Federated MDT Large Cap Value Fund-N/A | Surviving Fund, Pro Forma Combined-C | |
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | None | N/A | None | |
Maximum Deferred Sales Charge (Load) (as a percentage of original purchase price or redemption proceeds, as applicable) | 1.00% | N/A | 1.00% | |
Maximum Sales Charge (Load) Imposed on Reinvested Dividends (and other Distributions) (as a percentage of offering price) | None | N/A | None | |
Redemption Fee (as a percentage of amount redeemed, if applicable) | None | N/A | None | |
Exchange Fee | None | N/A | None | |
Annual Fund Operating Expenses (expense that you pay each year as a percentage of the value of your investment) | ||||
Management Fee | 0.75% | N/A | 0.68% | |
Distribution (12b-1) Fee | 0.75% | N/A | 0.75% | |
Other Expenses | 0.59% | N/A | 0.53% | |
Acquired Fund Fees and Expenses | 0.02% | N/A | 0.01% | |
Total Annual Fund Operating Expenses | 2.11% | N/A | 1.97% | |
Fee Waivers and/or Expense Reimbursements | (0.17)%1 | N/A | (0.16)%2 | |
Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements | 1.94% | N/A | 1.81% |
1 | The Adviser and certain of its affiliates on their own initiative have agreed to waive certain amounts of their respective fees and/or reimburse expenses. Total annual fund operating expenses (excluding Acquired Fund Fees and Expenses, interest expense, extraordinary expenses, line of credit expenses and proxy-related expenses paid by the Fund, if any) paid by the Fund's C class (after the voluntary waivers and/or reimbursements) will not exceed 1.92% (the “Fee Limit”), respectively, up to but not including the later of (the “Termination Date”): (a) December 1, 2017; or (b) the date of the Fund's next effective Prospectus. While the Adviser and its affiliates currently do not anticipate terminating or increasing these arrangements prior to the Termination Date, these arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the agreement of the Trustees. |
2 | The Adviser and certain of its affiliates on their own initiative have agreed to waive certain amounts of their respective fees and/or reimburse expenses. Total annual fund operating expenses (excluding Acquired Fund Fees and Expenses, interest expense, extraordinary expenses, and proxy-related expenses, paid by the Fund, if any) paid by the Fund's C class (after the voluntary waivers and/or reimbursements) will not exceed 1.80% (the “Fee Limit”), respectively, up to but not including the later of (the “Termination Date”): (a) December 1, 2018 (or one year from the date of the Reorganization, with respect to the Surviving Fund pro forma information); or (b) the date of the Fund's next effective Prospectus. While the Adviser and its affiliates currently do not anticipate terminating or increasing these additional arrangements prior to the Termination Date, these additional arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the agreement of the Fund's Board of Trustees. |
Shareholder Fees | Federated Clover Value Fund-IS | Federated MDT Large Cap Value Fund-IS | Surviving Fund, Pro Forma Combined-IS | |
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | None | None | None | |
Maximum Deferred Sales Charge (Load) (as a percentage of original purchase price or redemption proceeds, as applicable) | None | None | None | |
Maximum Sales Charge (Load) Imposed on Reinvested Dividends (and other Distributions) (as a percentage of offering price) | None | None | None | |
Redemption Fee (as a percentage of amount redeemed, if applicable) | None | None | None | |
Exchange Fee | None | None | None | |
Annual Fund Operating Expenses (expense that you pay each year as a percentage of the value of your investment) | ||||
Management Fee | 0.75% | 0.75% | 0.68% | |
Distribution (12b-1) Fee | None | None | None | |
Other Expenses | 0.25% | 0.23% | 0.25% | |
Acquired Fund Fees and Expenses | 0.02% | 0.01% | 0.01% | |
Total Annual Fund Operating Expenses | 1.02% | 0.99% | 0.94% | |
Contractual Fee Waiver and Expense Reimbursements | N/A | 0.00%1 | N/A | |
Fee Waivers and/or Expense Reimbursements | (0.06)%2 | (0.22)%1 | (0.17)%3 | |
Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements | 0.96% | 0.77% | 0.77% |
1 | Under the investment advisory contract, the Adviser is required to reimburse/waive the amount, limited to the amount of the management fee, by which the Fund's aggregate annual operating expenses, including the management fee, but excluding interest, taxes, brokerage commissions, expenses of registering and qualifying the Fund and its Shares under federal and state laws, expenses of withholding taxes and extraordinary expenses, exceed (after voluntary waivers and reimbursements) 1.00% of its average daily net assets. Shareholders must approve any changes to this contractual waiver/reimbursement. In addition, the Adviser and certain of its affiliates on their own initiative have agreed to waive certain amounts of their respective fees and/or reimburse expenses. Total annual fund operating expenses (excluding Acquired Fund Fees and Expenses, interest expense, extraordinary expenses, and proxy-related expenses, paid by the Fund, if any) paid by the Fund's IS class (after the voluntary waivers and/or reimbursements) will not exceed 0.76% (the “Fee Limit”), respectively, up to but not including the later of (the “Termination Date”): (a) February 1, 2018; or (b) the date of the Fund's next effective Prospectus. While the Adviser and its affiliates currently do not anticipate terminating or increasing these additional arrangements prior to the Termination Date, these additional arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the agreement of the Fund's Board of Trustees. |
2 | The Adviser and certain of its affiliates on their own initiative have agreed to waive certain amounts of their respective fees and/or reimburse expenses. Total annual fund operating expenses (excluding Acquired Fund Fees and Expenses, interest expense, extraordinary expenses, line of credit expenses and proxy-related expenses paid by the Fund, if any) paid by the Fund's IS class (after the voluntary waivers and/or reimbursements) will not exceed 0.94% (the “Fee Limit”), respectively, up to but not including the later of (the “Termination Date”): (a) December 1, 2017; or (b) the date of the Fund's next effective Prospectus. While the Adviser and its affiliates currently do not anticipate terminating or increasing these arrangements prior to the Termination Date, these arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the agreement of the Trustees. |
3 | The Adviser and certain of its affiliates on their own initiative have agreed to waive certain amounts of their respective fees and/or reimburse expenses. Total annual fund operating expenses (excluding Acquired Fund Fees and Expenses, interest expense, extraordinary expenses, and proxy-related expenses, paid by the Fund, if any) paid by the Fund's IS class (after the voluntary waivers and/or reimbursements) will not exceed 0.76% (the “Fee Limit”), respectively, up to but not including the later of (the “Termination Date”): (a) December 1, 2018 (or one year from the date of the Reorganization, with respect to the Surviving Fund pro forma information); or (b) the date of the Fund's next effective Prospectus. While the Adviser and its affiliates currently do not anticipate terminating or increasing these additional arrangements prior to the Termination Date, these additional arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the agreement of the Fund's Board of Trustees. |
Shareholder Fees | Federated Clover Value Fund-R | Federated MDT Large Cap Value Fund-NA | Surviving Fund, Pro Forma Combined-R | |
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | None | N/A | None | |
Maximum Deferred Sales Charge (Load) (as a percentage of original purchase price or redemption proceeds, as applicable) | None | N/A | None | |
Maximum Sales Charge (Load) Imposed on Reinvested Dividends (and other Distributions) (as a percentage of offering price) | None | N/A | None | |
Redemption Fee (as a percentage of amount redeemed, if applicable) | None | N/A | None | |
Exchange Fee | None | N/A | None | |
Annual Fund Operating Expenses (expense that you pay each year as a percentage of the value of your investment) | ||||
Management Fee | 0.75% | N/A | 0.68% | |
Distribution (12b-1) Fee | 0.50% | N/A | 0.50% | |
Other Expenses | 0.47% | N/A | 0.41% | |
Acquired Fund Fees and Expenses | 0.02% | N/A | 0.01% | |
Total Annual Fund Operating Expenses | 1.74% | N/A | 1.60% | |
Fee Waivers and/or Expense Reimbursements | (0.30)%1 | N/A | (0.16)%2 | |
Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements | 1.44% | N/A | 1.44% |
1 | The Adviser and certain of its affiliates on their own initiative have agreed to waive certain amounts of their respective fees and/or reimburse expenses. Total annual fund operating expenses (excluding Acquired Fund Fees and Expenses, interest expense, extraordinary expenses, line of credit expenses and proxy-related expenses paid by the Fund, if any) paid by the Fund's R class (after the voluntary waivers and/or reimbursements) will not exceed 1.42% (the “Fee Limit”), respectively, up to but not including the later of (the “Termination Date”): (a) December 1, 2017; or (b) the date of the Fund's next effective Prospectus. While the Adviser and its affiliates currently do not anticipate terminating or increasing these arrangements prior to the Termination Date, these arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the agreement of the Trustees. |
2 | The Adviser and certain of its affiliates on their own initiative have agreed to waive certain amounts of their respective fees and/or reimburse expenses. Total annual fund operating expenses (excluding Acquired Fund Fees and Expenses, interest expense, extraordinary expenses, and proxy-related expenses, paid by the Fund, if any) paid by the Fund's R class (after the voluntary waivers and/or reimbursements) will not exceed 1.43% (the “Fee Limit”), respectively, up to but not including the later of (the “Termination Date”): (a) December 1, 2018 (or one year from the date of the Reorganization, with respect to the Surviving Fund pro forma information); or (b) the date of the Fund's next effective Prospectus. While the Adviser and its affiliates currently do not anticipate terminating or increasing these additional arrangements prior to the Termination Date, these additional arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the agreement of the Fund's Board of Trustees. |
Shareholder Fees | Federated Clover Value Fund-NA | Federated MDT Large Cap Value Fund-R6 | Surviving Fund, Pro Forma Combined-R6 | |
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | N/A | None | None | |
Maximum Deferred Sales Charge (Load) (as a percentage of original purchase price or redemption proceeds, as applicable) | N/A | None | None | |
Maximum Sales Charge (Load) Imposed on Reinvested Dividends (and other Distributions) (as a percentage of offering price) | N/A | None | None | |
Redemption Fee (as a percentage of amount redeemed, if applicable) | N/A | None | None | |
Exchange Fee | N/A | None | None | |
Annual Fund Operating Expenses (expense that you pay each year as a percentage of the value of your investment) | ||||
Management Fee | N/A | 0.75% | 0.68% | |
Distribution (12b-1) Fee | N/A | None | None | |
Other Expenses | N/A | 0.18% | 0.17% | |
Acquired Fund Fees and Expenses | N/A | 0.01% | 0.01% | |
Total Annual Fund Operating Expenses | N/A | 0.94% | 0.86% | |
Contractual Fee Waiver and Expense Reimbursements | N/A | 0.00%1 | N/A | |
Fee Waivers and/or Expense Reimbursements | N/A | (0.24)%1 | (0.16)%2 | |
Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements | N/A | 0.70% | 0.70% |
1 | Under the investment advisory contract, the Adviser is required to reimburse/waive the amount, limited to the amount of the management fee, by which the Fund's aggregate annual operating expenses, including the management fee, but excluding interest, taxes, brokerage commissions, expenses of registering and qualifying the Fund and its Shares under federal and state laws, expenses of withholding taxes and extraordinary expenses, exceed (after voluntary waivers and reimbursements) 1.00% of its average daily net assets. Shareholders must approve any changes to this contractual waiver/reimbursement. In addition, the Adviser and certain of its affiliates on their own initiative have agreed to waive certain amounts of their respective fees and/or reimburse expenses. Total annual fund operating expenses (excluding Acquired Fund Fees and Expenses, interest expense, extraordinary expenses, and proxy-related expenses, paid by the Fund, if any) paid by the Fund's R6 class (after the voluntary waivers and/or reimbursements) will not exceed 0.69% (the “Fee Limit”), respectively, up to but not including the later of (the “Termination Date”): (a) February 1, 2018; or (b) the date of the Fund's next effective Prospectus. While the Adviser and its affiliates currently do not anticipate terminating or increasing these additional arrangements prior to the Termination Date, these additional arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the agreement of the Fund's Board of Trustees. |
2 | The Adviser and certain of its affiliates on their own initiative have agreed to waive certain amounts of their respective fees and/or reimburse expenses. Total annual fund operating expenses (excluding Acquired Fund Fees and Expenses, interest expense, extraordinary expenses, and proxy-related expenses, paid by the Fund, if any) paid by the Fund's R6 class (after the voluntary waivers and/or reimbursements) will not exceed 0.69% (the “Fee Limit”), respectively, up to but not including the later of (the “Termination Date”): (a) December 1, 2018 (or one year from the date of the Reorganization, with respect to the Surviving Fund pro forma information); or (b) the date of the Fund's next effective Prospectus. While the Adviser and its affiliates currently do not anticipate terminating or increasing these additional arrangements prior to the Termination Date, these additional arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the agreement of the Fund's Board of Trustees. |
Shareholder Fees | Federated Clover Value Fund-NA | Federated MDT Large Cap Value Fund-SS | Surviving Fund, Pro Forma Combined-SS | |
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | N/A | None | None | |
Maximum Deferred Sales Charge (Load) (as a percentage of original purchase price or redemption proceeds, as applicable) | N/A | None | None | |
Maximum Sales Charge (Load) Imposed on Reinvested Dividends (and other Distributions) (as a percentage of offering price) | N/A | None | None | |
Redemption Fee (as a percentage of amount redeemed, if applicable) | N/A | None | None | |
Exchange Fee | N/A | None | None | |
Annual Fund Operating Expenses (expense that you pay each year as a percentage of the value of your investment) | ||||
Management Fee | N/A | 0.75% | 0.68% | |
Distribution (12b-1) Fee | N/A | None | None | |
Other Expenses | N/A | 0.49% | 0.49% | |
Acquired Fund Fees and Expenses | N/A | 0.01% | 0.01% | |
Total Annual Fund Operating Expenses | N/A | 1.25% | 1.18% | |
Contractual Fee Waiver and Expense Reimbursements | N/A | (0.24)%1 | N/A | |
Fee Waivers and/or Expense Reimbursements | N/A | (0.02)%1 | (0.19)%2 | |
Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements | N/A | 0.99% | 0.99% |
1 | Under the investment advisory contract, the Adviser is required to reimburse/waive the amount, limited to the amount of the management fee, by which the Fund's aggregate annual operating expenses, including the management fee, but excluding interest, taxes, brokerage commissions, expenses of registering and qualifying the Fund and its Shares under federal and state laws, expenses of withholding taxes and extraordinary expenses, exceed (after voluntary waivers and reimbursements) 1.00% of its average daily net assets. Shareholders must approve any changes to this contractual waiver/reimbursement. In addition, the Adviser and certain of its affiliates on their own initiative have agreed to waive certain amounts of their respective fees and/or reimburse expenses. Total annual fund operating expenses (excluding Acquired Fund Fees and Expenses, interest expense, extraordinary expenses, and proxy-related expenses, paid by the Fund, if any) paid by the Fund's SS class (after the voluntary waivers and/or reimbursements) will not exceed 0.98% (the “Fee Limit”), respectively, up to but not including the later of (the “Termination Date”): (a) February 1, 2018; or (b) the date of the Fund's next effective Prospectus. While the Adviser and its affiliates currently do not anticipate terminating or increasing these additional arrangements prior to the Termination Date, these additional arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the agreement of the Fund's Board of Trustees. |
2 | The Adviser and certain of its affiliates on their own initiative have agreed to waive certain amounts of their respective fees and/or reimburse expenses. Total annual fund operating expenses (excluding Acquired Fund Fees and Expenses, interest expense, extraordinary expenses, and proxy-related expenses, paid by the Fund, if any) paid by the Fund's SS class (after the voluntary waivers and/or reimbursements) will not exceed 0.98% (the “Fee Limit”), respectively, up to but not including the later of (the “Termination Date”): (a) December 1, 2018 (or one year from the date of the Reorganization, with respect to the Surviving Fund pro forma information); or (b) the date of the Fund's next effective Prospectus. While the Adviser and its affiliates currently do not anticipate terminating or increasing these additional arrangements prior to the Termination Date, these additional arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the agreement of the Fund's Board of Trustees. |
1 Year | 3 Years | 5 Years | 10 Years | |
FCVF- Class A | ||||
Expenses assuming redemption | $677 | $945 | $1,234 | $2,053 |
Expenses assuming no redemption | $677 | $945 | $1,234 | $2,053 |
FMLCV- Class A | ||||
Expenses assuming redemption | $647 | $854 | $1,077 | $1,718 |
Expenses assuming no redemption | $647 | $854 | $1,077 | $1,718 |
Surviving Fund Class A, Pro Forma Combined |
1 Year | 3 Years | 5 Years | 10 Years | |
Expenses assuming redemption | $666 | $910 | $1,173 | $1,925 |
Expenses assuming no redemption | $666 | $910 | $1,173 | $1,925 |
FCVF- Class B | ||||
Expenses assuming redemption | $768 | $1,073 | $1,354 | $2,272 |
Expenses assuming no redemption | $218 | $673 | $1,154 | $2,272 |
Surviving Fund Class B, Pro Forma Combined | ||||
Expenses assuming redemption | $755 | $1,034 | $1,288 | $2,137 |
Expenses assuming no redemption | $205 | $634 | $1,088 | $2,137 |
FCVF- Class C | ||||
Expenses assuming redemption | $314 | $661 | $1,134 | $2,441 |
Expenses assuming no redemption | $214 | $661 | $1,134 | $2,441 |
Surviving Fund Class C, Pro Forma Combined | ||||
Expenses assuming redemption | $300 | $618 | $1,062 | $2,296 |
Expenses assuming no redemption | $200 | $618 | $1,062 | $2,296 |
FCVF- Institutional Shares | ||||
Expenses assuming redemption | $104 | $325 | $563 | `$1,248 |
Expenses assuming no redemption | $104 | $325 | $563 | `$1,248 |
FMLCV- Institutional Shares | ||||
Expenses assuming redemption | $101 | $315 | $547 | $1,213 |
Expenses assuming no redemption | $101 | $315 | $547 | $1,213 |
Surviving Fund Institutional Shares, Pro Forma Combined | ||||
Expenses assuming redemption | $96 | $300 | $520 | $1,155 |
Expenses assuming no redemption | $96 | $300 | $520 | $1,155 |
FCVF- Class R | ||||
Expenses assuming redemption | $177 | $548 | $944 | $2,052 |
Expenses assuming no redemption | $177 | $548 | $944 | $2,052 |
Surviving Fund Class R, Pro Forma Combined | ||||
Expenses assuming redemption | $163 | $505 | $871 | $1,900 |
Expenses assuming no redemption | $163 | $505 | $871 | $1,900 |
FMLCV- Class R6 | ||||
Expenses assuming redemption | $96 | $300 | $520 | $1,155 |
Expenses assuming no redemption | $96 | $300 | $520 | $1,155 |
Surviving Fund Class R6, Pro Forma Combined | ||||
Expenses assuming redemption | $88 | $274 | $477 | $1,061 |
Expenses assuming no redemption | $88 | $274 | $477 | $1,061 |
FMLCV- SS Shares | ||||
Expenses assuming redemption | $103 | $322 | $558 | $1,236 |
Expenses assuming no redemption | $103 | $322 | $558 | $1,236 |
Surviving Fund SS Shares, Pro Forma Combined | ||||
Expenses assuming redemption | $120 | $375 | $649 | $1,432 |
Expenses assuming no redemption | $120 | $375 | $649 | $1,432 |
Federated Clover Value Fund - | A Class |
2007 | 8.28% |
2008 | -35.77% |
2009 | 21.68% |
2010 | 10.83% |
2011 | 1.66% |
2012 | 14.52% |
2013 | 32.78% |
2014 | 7.37% |
2015 | -9.08% |
2016 | 10.32% |
1 Year | 5 Years | 10 Years | |
A: | |||
Return Before Taxes | 4.25% | 9.12% | 3.97% |
Return After Taxes on Distributions | 3.48% | 8.80% | 3.57% |
Return After Taxes on Distributions and Sale of Fund Shares | 2.36% | 7.13% | 3.09% |
B: | |||
Return Before Taxes | 4.00% | 9.28% | 3.94% |
C: | |||
Return Before Taxes | 8.49% | 9.56% | 3.82% |
R: | |||
Return Before Taxes | 10.10% | 10.13% | 4.22% |
IS: | |||
Return Before Taxes | 10.62% | 10.64% | 4.76% |
Russell 1000® Value Index1 (reflects no deduction for fees, expenses or taxes) | 17.34% | 14.80% | 5.72% |
Morningstar Large Value Funds Average2 | 14.81% | 12.97% | 5.38% |
1 | The Russell 1000® Value Index measures the performance of the large-cap value segment of the U.S. equity universe. |
2 | Morningstar figures represent the average of the total returns reported by all the mutual funds designated by Morningstar as falling into the respective category indicated. They do not reflect sales charges. |
Federated MDT Large Cap Value Fund - | SS Class |
2007 | 1.27% |
2008 | -31.86% |
2009 | 18.87% |
2010 | 9.88% |
2011 | 2.01% |
2012 | 19.85% |
2013 | 39.71% |
2014 | 14.08% |
2015 | -5.00% |
2016 | 15.09% |
1 Year | 5 Years | 10 Years | |
SS: | |||
Return Before Taxes | 15.09% | 15.87% | 6.74% |
Return After Taxes on Distributions | 13.03% | 13.27% | 4.92% |
Return After Taxes on Distributions and Sale of Fund Shares | 8.96% | 12.09% | 5.03% |
A: | |||
Return Before Taxes | 8.76% | 14.57% | 6.14% |
IS: | |||
Return Before Taxes | 15.31% | 16.12% | 6.90% |
R6: | |||
Return Before Taxes | 15.20% | 15.89% | 6.75% |
Russell 1000® Value Index1 (reflects no deduction for fees, expenses or taxes) | 17.34% | 14.80% | 5.72% |
Morningstar Large Value Funds Average2 (reflects no deduction for fees, expenses or taxes) | 14.81% | 12.97% | 5.38% |
1 | The Russell 1000® Value Index measures the performance of the large-cap value segment of the U.S. equity universe. |
2 | Morningstar figures represent the average of the total returns reported by all the mutual funds designated by Morningstar as falling into the respective category indicated. They do not reflect sales charges. |
Federated MDT Large Cap Value Fund - | SS Class |
2007 | 1.27% |
2008 | -31.86% |
2009 | 18.87% |
2010 | 9.88% |
2011 | 2.01% |
2012 | 19.85% |
2013 | 39.71% |
2014 | 14.08% |
2015 | -5.00% |
2016 | 15.09% |
1 Year | 5 Years | 10 Years | |
SS: | |||
Return Before Taxes | 15.09% | 15.87% | 6.74% |
Return After Taxes on Distributions | 13.03% | 13.27% | 4.92% |
Return After Taxes on Distributions and Sale of Fund Shares | 8.96% | 12.09% | 5.03% |
A: | |||
Return Before Taxes | 8.76% | 14.57% | 6.14% |
B: | |||
Return Before Taxes | 15.09% | 15.87% | 6.74% |
C: | |||
Return Before Taxes | 15.09% | 15.87% | 6.74% |
R: | |||
Return Before Taxes | 15.09% | 15.87% | 6.74% |
IS: | |||
Return Before Taxes | 15.31% | 16.12% | 6.90% |
R6: | |||
Return Before Taxes | 15.20% | 15.89% | 6.75% |
Russell 1000® Value Index1 (reflects no deduction for fees, expenses or taxes) | 17.34% | 14.80% | 5.72% |
Morningstar Large Value Funds Average2 (reflects no deduction for fees, expenses or taxes) | 14.81% | 12.97% | 5.38% |
1 | The Russell 1000® Value Index measures the performance of the large-cap value segment of the U.S. equity universe. |
2 | Morningstar figures represent the average of the total returns reported by all the mutual funds designated by Morningstar as falling into the respective category indicated. They do not reflect sales charges. |
FCVF Reorganizing Fund | FMLCV Reorganizing Fund | Federated MDT Large Cap Value Fund Surviving Fund |
Matthew P. Kaufler. Matthew P. Kaufler, Portfolio Manager, managed the predecessor fund to the Fund, Touchstone Value Fund, since January 2000, and has continued to manage the Fund as an employee of the Adviser since March 2009. He is Vice President of the Fund's Adviser and is jointly responsible for the day-to-day management of the Fund. Prior to joining Federated, Mr. Kaufler was employed by Clover Capital Management, Inc. (“Clover”), where he co-managed Clover's all cap value investment strategy. Mr. Kaufler joined Clover in 1991 and was a senior member of Clover's research team. Mr. Kaufler also worked in the trust investment division at Chase Manhattan Bank and in the brokerage industry prior to his employment with Clover. Mr. Kaufler received his B.S. in Business from the New York Institute of Technology, M.B.A. from the Rochester Institute of Technology and M.S. from the William E. Simon School at the University of Rochester. Mr. Kaufler is the recipient of the Financial Executives Institute award for academic excellence. He has received the Chartered Financial Analyst designation. | Daniel J. Mahr, CFA, joined the Investment Team in 2002.He is Vice President of the Trust and is a Senior Vice President of the Fund's Adviser. He is responsible for leading the Investment Team as it relates to the ongoing design, development and implementation of the Optimum Q process. He received his A.B., Computer Science from Harvard College and his S.M., Computer Science from Harvard University. | Daniel J. Mahr, CFA, joined the Investment Team in 2002.He is Vice President of the Trust and is a Senior Vice President of the Fund's Adviser. He is responsible for leading the Investment Team as it relates to the ongoing design, development and implementation of the Optimum Q process. He received his A.B., Computer Science from Harvard College and his S.M., Computer Science from Harvard University. |
FCVF Reorganizing Fund | FMLCV Reorganizing Fund | Federated MDT Large Cap Value Fund Surviving Fund |
Paul W. Spindler. Paul W. Spindler, Portfolio Manager, managed the predecessor fund to the Fund, Touchstone Value Fund, since October 2006, and has continued to manage the Fund as an employee of the Adviser since March 2009. He is Vice President of the Fund's Adviser and is jointly responsible for the day-to-day management of the Fund. Prior to joining Federated, Mr. Spindler was employed by Clover, where he co-managed Clover's all cap value investment strategy. Mr. Spindler joined Clover in 1988 and served on Clover's research team. Mr. Spindler earned his B.S. in Business from the Rochester Institute of Technology and his M.B.A. from The Ohio State University. Mr. Spindler has received the Chartered Financial Analyst designation. The Fund's SAI provides additional information about the Portfolio Managers' compensation, management of other accounts and ownership of securities in the Fund. | Frederick L. Konopka, CFA, joined the Investment Team in 1997. Mr. Konopka is a Vice President of the Fund's Adviser. He is responsible for ongoing improvement of the research processes and software development for the Optimum Q process, focusing on trading impact evaluation and implementation. He received his A.B., Mathematics from Dartmouth College and his M.S., Concentration in Information Technology and Finance from MIT Sloan School of Management. | Frederick L. Konopka, CFA, joined the Investment Team in 1997. Mr. Konopka is a Vice President of the Fund's Adviser. He is responsible for ongoing improvement of the research processes and software development for the Optimum Q process, focusing on trading impact evaluation and implementation. He received his A.B., Mathematics from Dartmouth College and his M.S., Concentration in Information Technology and Finance from MIT Sloan School of Management. |
Brian M.Greenberg joined the Investment Team in 2004. Mr. Greenberg is a Vice President of the Fund's Adviser. As a Group Leader, he is responsible for ongoing evaluation and enhancement of the Optimum Q process, including software code design and development. Mr. Greenberg received his A.B., Computer Science from Harvard College and his S.M., Computer Science from Harvard University. | Brian M.Greenberg joined the Investment Team in 2004. Mr. Greenberg is a Vice President of the Fund's Adviser. As a Group Leader, he is responsible for ongoing evaluation and enhancement of the Optimum Q process, including software code design and development. Mr. Greenberg received his A.B., Computer Science from Harvard College and his S.M., Computer Science from Harvard University. | |
John Paul Lewicke joined the Investment Team in 2007. Mr. Lewicke is a Vice President of the Fund's Adviser. As Research Manager, he is responsible for ongoing evaluation and enhancement of the Optimum Q process, including software code design and development. Mr. Lewicke received his A.B., Mathematics and Computer Science from Dartmouth College. | John Paul Lewicke joined the Investment Team in 2007. Mr. Lewicke is a Vice President of the Fund's Adviser. As Research Manager, he is responsible for ongoing evaluation and enhancement of the Optimum Q process, including software code design and development. Mr. Lewicke received his A.B., Mathematics and Computer Science from Dartmouth College. |
FMLCV - ADVISORY FEE AS A PERCENTAGE OF AVERAGE DAILY NET ASSETS | |
Average Daily Net Assets | Advisory Fee |
First $500 million | 0.750% |
Second $500 million | 0.675% |
Third $500 million | 0.600% |
Fourth $500 million | 0.525% |
Over $2 billion | 0.400% |
SURVIVING FUND PROPOSED ADVISORY FEE AS A PERCENTAGE OF AVERAGE DAILY NET ASSETS | |
Average Daily Net Assets | Advisory Fee |
First $500 million | 0.750% |
Second $500 million | 0.675% |
Third $500 million | 0.600% |
Fourth $500 million | 0.525% |
Over $2 billion | 0.400% |
Class A Shares: | |
Purchase Amount | Dealer Reallowance as a Percentage of Public Offering Price |
Less than $50,000 | 5.00% |
$50,000 but less than $100,000 | 4.00% |
$100,000 but less than $250,000 | 3.25% |
$250,000 but less than $500,000 | 2.25% |
$500,000 but less than $1 million | 1.80% |
$1 million or greater | 0.00% |
Class A Shares (for purchases over $1 million): | |
Purchase Amount | Advance Commission as a Percentage of Public Offering Price |
First $1 million - $5 million | 0.75% |
Next $5 million - $20 million | 0.50% |
Over $20 million | 0.25% |
FCVF Class B Shares: | |
Advance Commission as a Percentage of Public Offering Price | |
All Purchase Amounts | Up to 5.00% |
FCVF Class C Shares: | |
Advance Commission as a Percentage of Public Offering Price | |
All Purchase Amounts | 1.00% |
• | An investor participating in a wrap program or other fee-based program sponsored by a financial intermediary; |
• | An investor participating in a no-load network or platform sponsored by a financial intermediary where Federated has entered into an agreement with the intermediary; |
• | A Trustee/Director, employee or former employee of the Fund, the Adviser, the Distributor and their affiliates; an immediate family member of these individuals or a trust, pension or profit-sharing plan for these individuals; |
• | An employer-sponsored retirement plan; |
• | A trust institution investing on behalf of its trust customers; |
• | Additional sales to an investor (including a natural person) who owned the IS class of the Fund as of December 31, 2008; |
• | A Federated Fund; |
• | An investor (including a natural person) who acquired an IS class of a Federated fund pursuant to the terms of an agreement and plan of reorganization which permits the investor to acquire such shares; and |
• | In connection with an acquisition of an investment management or advisory business, or related investment services, products or assets, by Federated or its investment advisory subsidiaries, an investor (including a natural person) who: |
(1) becomes a client of an investment advisory subsidiary of Federated; or (2) is a shareholder or interest holder of a pooled investment vehicle or product that becomes advised or subadvised by a Federated investment advisory subsidiary as a result of such an acquisition other than as a result of a fund reorganization transaction pursuant to an agreement and plan of reorganization. |
• | An investor, other than a natural person, purchasing IS classes directly from the Fund; and |
• | In connection with an initial purchase of IS classes through an exchange, an investor (including a natural person) who owned SS classes of another Federated fund as of December 31, 2008. |
• | The ownership of the account receiving the purchase is not required to be identical to that of the account in which the redemption was placed; however, the registration of the account receiving the purchase must include at least one registered shareholder of the account from which the redemption occurred. |
• | You will not be reimbursed for any fees originally incurred on the redemption (e.g., CDSC or redemption fees) by subsequently participating in the 120 Day Reinstatement Program. |
• | The 120 Day Reinstatement Program does not supersede or override any restrictions placed on an account due to frequent trading and/or client contractual issues. |
• | you redeem 12% or less of your account value in a single year; |
• | you reinvest all dividends and capital gains distributions; |
• | your account has at least a $10,000 balance when you establish the SWP. (You cannot aggregate multiple Class B Share accounts to meet this minimum balance.); and |
• | for all Class B Share accounts established on or after August 2, 2010, the minimum SWP redemption amount is $50 per transaction, per fund, including transactions that qualify for a CDSC waiver as outlined each Fund's Prospectus. |
• | The Reorganization of FMLCV is intended to be structured as a tax-free Reorganization under Section 368(a)(1)(F) of the IRC and is a preferable tax result for shareholders as compared to a liquidation of the FMLCV (which would be a taxable redemption). |
• | The Reorganization of FCVF is intended to be structured as a tax-free Reorganization under Section 368(a)(1)(C) of the IRC and is a preferable tax result for shareholders as compared to a liquidation of FCVF (which would be a taxable redemption); |
• | Although the investment policies of FCVF and the Surviving Fund are different in certain respects, the broad focus of the Surviving Fund's investment strategy allows the various investment strategies currently pursued by FCVF to be permissible investments for the Surviving Fund. Additionally, the investment policies of the Surviving Fund are anticipated to be substantially identical to those of FMLCV. In addition, under Rule 17a-8(a)(3), the Reorganization will subject to approval by the shareholders of both Reorganizing Funds. |
• | Generally, FMLCV has outperformed FCVF. The Surviving Fund's investment objective and strategy is modeled after FMLCV and there is no anticipated decline in services to Reorganizing Fund shareholders as a result of the Reorganization. The range and quality of the services that Reorganizing Fund shareholders will receive as shareholders of the Surviving Fund is anticipated to be comparable to the range and quality of services that they currently receive. |
• | The Reorganization requires shareholder approval because under Rule 17a-8(a)(3), the material differences between FCVF's fundamental investment policy regarding investing in commodities and the Surviving Fund's investment policy requires that the Reorganization be subject to approval by FCVF's shareholders. Additionally, the material differences between the terms of FMLCV's investment advisory contract and the investment advisory contract of the Surviving Fund requires that the Reorganization be subject to approval by FMLCV's shareholders. |
• | The Boards considered alternatives to the Reorganization, such as liquidation of the Reorganizing Funds, and the reasons for favoring the Reorganization instead of the alternatives. |
• | The Boards considered the terms and conditions of the Plans, as presented to the Boards. |
• | The Reorganizing Funds will pay direct proxy expenses (e.g., mailing, processing, tabulation, printing and solicitation costs and expenses and the costs of filing, printing and mailing supplements to the Funds' registration statements) associated with the Reorganization estimated at $213,401 (or $0.0075 per share) for FCVF and $74,355 (or $0.0028 per share) for FMLCV(after operation of the contractual expense cap); |
• | The Adviser will pay certain other direct and indirect expenses of the Reorganization on behalf of the Reorganizing Funds (consisting primarily of legal and accounting fees); |
• | Brokerage expenses for the Reorganizing Funds related to the disposition of portfolio securities by the Reorganizing Funds prior to the Reorganization to better align their portfolios with the Surviving Fund's portfolio. It is not anticipated that FMLCV will engage in any such portfolio transactions specifically attributable to the Reorganization. It is anticipated that FCVF will reallocate its portfolio prior to the Reorganization and bear the associated brokerage expenses which are currently estimated to be $200,000 or $0.00705 per share; |
• | There will be no dilution to shareholders in the transaction because shareholders of both the Reorganizing Funds and |
the Surviving Fund will, after the Reorganization, be the owners of shares of the Surviving Fund having a total net asset value equal to the total net asset value of his or her holdings in the Reorganizing Funds or the Surviving Fund, as applicable, on the date of the Reorganization; and | |
• | Based upon all the foregoing considerations and other information in this Prospectus/Proxy Statement, the Boards concluded that the Reorganization will not result in dilution of the Reorganizing Funds' or the Surviving Fund's shareholders and is in the best interests of each Reorganizing Fund and the Surviving Fund and their respective shareholders. The Boards, including the Trustees who are not “interested persons” (within the meaning of Section 2(a)(9) of the 1940 Act), have reviewed and unanimously approved the Plans. The Boards recommend that the Reorganizing Funds' shareholders approve the Plans. |
Fund | Total Net Assets | Shares Outstanding | Net Asset Value Per Share1 |
FCVF–Class A Shares | $510,189,144 | 21,609,652 | $23.61 |
Reorganization costs2 | (380,637) | ||
Share Adjustment | (3,277,810) | ||
FMLCV–Class A Shares | $24,841,134 | 893,314 | $27.81 |
Reorganization costs2 | (1,689) | ||
Surviving Fund–Class A Shares | 0 | 0 | $27.81 |
Surviving Fund, Pro Forma Combined–Class A Shares | $534,647,952 | 19,225,156 | $27.81 |
Fund | Total Net Assets | Shares Outstanding | Net Asset Value Per Share1 |
FCVF–Class B Shares | $19,074,473 | 816,565 | $23.36 |
Reorganization costs2 | (14,231) | ||
Share Adjustment | (131,438) | ||
FMLCV–Class B Shares | N/A | N/A | N/A |
Surviving Fund–Class B Shares | 0 | 0 | $27.82 |
Surviving Fund, Pro Forma Combined–Class B Shares | $19,060,242 | 685,127 | $27.82 |
Fund | Total Net Assets | Shares Outstanding | Net Asset Value Per Share1 |
FCVF–Class C Shares | $32,057,575 | 1,370,045 | $23.40 |
Reorganization costs2 | (23,917) | ||
Share Adjustment | (218,584) | ||
FMLCV–Class C Shares | N/A | N/A | N/A |
Surviving Fund–Class C Shares | 0 | 0 | $27.82 |
Surviving Fund, Pro Forma Combined–Class C Shares | $32,033,658 | 1,151,461 | $27.82 |
Fund | Total Net Assets | Shares Outstanding | Net Asset Value Per Share1 |
FCVF–Class R Shares | $22,375,193 | 947,885 | $23.61 |
Reorganization costs2 | (16,693) | ||
Share Adjustment | (144,201) | ||
FMLCV–Class R Shares | N/A | N/A | N/A |
Surviving Fund–Class R Shares | 0 | 0 | $27.82 |
Surviving Fund, Pro Forma Combined–Class R Shares | $22,358,500 | 803,684 | $27.82 |
Fund | Total Net Assets | Shares Outstanding | Net Asset Value Per Share1 |
FCVF–Class IS Shares | $111,948,597 | 4,732,297 | $23.66 |
Reorganization costs2 | (83,522) | ||
Share Adjustment | (711,266) | ||
FMLCV–Class IS Shares | $378,011,865 | 13,589,252 | $27.82 |
Reorganization costs2 | (48,069) | ||
Surviving Fund–Class IS Shares | 0 | 0 | $27.82 |
Surviving Fund, Pro Forma Combined–Class IS Shares | $489,828,871 | 17,610,283 | $27.81 |
Fund | Total Net Assets | Shares Outstanding | Net Asset Value Per Share1 |
FCVF–Class SS Shares | N/A | N/A | N/A |
FMLCV–Class SS Shares | $288,321,093 | 10,361,571 | $27.83 |
Reorganization costs2 | (19,218) | ||
Surviving Fund–Class SS Shares | 0 | 0 | $27.83 |
Surviving Fund, Pro Forma Combined–Class SS Shares | $288,301,875 | 10,361,571 | $27.82 |
Fund | Total Net Assets | Shares Outstanding | Net Asset Value Per Share1 |
FCVF–Class R6 Shares | N/A | N/A | N/A |
FMLCV–Class R6 Shares | $42,494,877 | 1,527,249 | $27.82 |
Reorganization costs2 | (5,379) |
Fund | Total Net Assets | Shares Outstanding | Net Asset Value Per Share1 |
Surviving Fund–Class R6 Shares | 0 | 0 | $27.82 |
Surviving Fund, Pro Forma Combined–Class R6 Shares | $42,489,498 | 1,527,249 | $27.82 |
• | the Reorganization as set forth in the Plan will constitute a tax-free reorganization under section 368(a) of the Code, and each of the Reorganizing Funds and the Surviving Funds will be a “party to a reorganization” within the meaning of section 368(b) of the Code; |
• | no gain or loss will be recognized by the Surviving Fund upon its receipt of the Reorganizing Funds' assets in exchange for Shares of the Surviving Fund; however, to the extent that the Surviving Fund is required to engage in reallocation of portfolio securities received from the Surviving Funds after the Reorganization, the Surviving Fund shareholders may realize capital gains; |
• | no gain or loss will be recognized by either of the Reorganizing Funds upon transfer of their assets to the Surviving Fund solely in exchange for the Shares of the Surviving Fund or upon the distribution of Surviving Fund Shares to Reorganizing Fund shareholders in exchange for their respective Reorganizing Fund Shares; |
• | no gain or loss will be recognized by shareholders of the Reorganizing Funds upon exchange of their Reorganizing Fund Shares for Surviving Fund Shares; |
• | the tax basis of the assets of the Reorganizing Funds in the hands of the Surviving Funds will be the same as the tax basis of such assets to each respective Reorganizing Fund immediately prior to the Reorganization; |
• | the aggregate tax basis of Surviving Fund Shares received by each shareholder of the Reorganizing Funds pursuant to the Reorganization will be the same as the aggregate tax basis of the Shares of the respective Reorganizing Fund held by such shareholder immediately prior to the Reorganization; |
• | the holding period of Surviving Fund's Shares received by each shareholder of the Reorganizing Funds will include the period during which the Reorganizing Fund's Shares exchanged therefor were held by such shareholder, provided the Shares of the Reorganizing Fund were held as capital assets on the date of the Reorganization; and |
• | the holding period of the assets of the Reorganizing Funds in the hands of the Surviving Fund will include the period during which those assets were held by the respective Reorganizing Fund. |
Realized / Unrealized Gains As of June 23, 2017 | ||
FCVF | FMLCV | |
Net Assets | $677,696,096 | $730,199,585 |
Net Realized Capital Gains (Loss) | $56,771,854 | $41,897,047 |
Unrealized Appreciation (Depreciation) | $77,151,533 | $63,822,460 |
Capital Loss Carryforwards As of September 30, 2016 (FCVF) As of October 31, 2016 (FMLCV) | ||
FCVF | FMLCV | |
No Expiration | $57,816,931 | $0 |
2 Year Expiration* | $12,401,481 | $0 |
* | This loss amount would, under normal circumstances, expire on September 30, 2018. However, consummation of the Reorganization will accelerate this expiration to the date of closing on the transaction. |
CATEGORY | SHAREHOLDER RIGHTS - FMLCV | SHAREHOLDER RIGHTS - FCVF | SHAREHOLDER RIGHTS – Surviving Fund |
Preemptive Rights | None | None | None |
Preferences | None | None | None |
Appraisal Rights | None | None | None |
Conversion Rights (other than intra-fund share conversion rights as provided in the prospectuses of the Funds) | None | None | None |
Exchange Rights (other than the right to exchange for shares of other Federated mutual funds as provided in the prospectuses of the Funds) | None | None | None |
Minimum Account Size | $1,500 for A class (in the case of IRAs, $250); $1,000,000 for the IS and SS classes; there is no minimum account size for the R6 class. | $1,500 for A, B, and C classes (in the case of IRAs, $250); $250 for IRA rollovers and no minimum for employer sponsored retirement plans in the R class; and $1,000,000 for the IS class. | $1,500 for A, B, and C classes (in the case of IRAs, $250); $250 for IRA rollovers and no minimum for employer sponsored retirement plans in the R class; $1,000,000 for the IS and SS classes; there is no minimum account size for the R6 class. |
Annual Meeting | Not required | Not required | Not required |
Right to Call Shareholder Meetings | Special Meeting of Shareholders of the Trust or of a particular Series or Class shall be called by the Secretary whenever ordered by the Trustees, the Chairman or requested in writing by the holder or holders of at least one-tenth of the outstanding shares of the Trust or of the relevant Series or Class, entitled to vote. | Special Meetings of Shareholders of the Trust or of a particular Series or Class shall be called by the Secretary whenever ordered by the Trustees, the Chairman or requested in writing by the holder or holders of at least one-tenth of the outstanding shares of the Trust or of the relevant Series or Class, entitled to vote. | Special Meetings of Shareholders of the Trust or of a particular Series or Class shall may be called at any time by the President, and shall be called by the President or the Secretary at the request, in writing or by resolution, of a majority of the Trustees, or at the written request of the holder or holders of twenty-five percent (25%) or more of the total number of the then issued and outstanding shares of the Trust entitled to vote at such meeting. |
Notice of Meeting | Notices of any Special Meeting of Shareholders of the Trust or a particular Series or Class, shall be given by the Secretary by delivering or mailing, postage prepaid, to each shareholder entitled to vote at said meeting, a written or printed notification of such meeting, at least seven business days before the meeting, to such address as may be registered with the Trust by the shareholder. | Notices of any Special Meeting of Shareholders of the Trust or a particular Series or Class, shall be given by the Secretary by delivering or mailing, postage prepaid, to each shareholder entitled to vote at said meeting, a written or printed notification of such meeting, at least fifteen days before the meeting, to such address as may be registered with the Trust by the shareholder. | Notices of any Special Meeting of Shareholders of the Trust or a particular Series or Class, shall be given by the Secretary by delivering or mailing, postage prepaid, to each shareholder entitled to vote at said meeting, a written or printed notification of such meeting, not less than seven (7) nor more than sixty (60) days before the date of the meeting and not more than one hundred and twenty days before the date of the meeting, to such address as may be registered with the Trust by the shareholder. |
CATEGORY | SHAREHOLDER RIGHTS - FMLCV | SHAREHOLDER RIGHTS - FCVF | SHAREHOLDER RIGHTS – Surviving Fund |
Record Date for Meetings | The Board of Trustees may fix a date not more than 60 days before the meeting date as the record date for determining shareholders entitled to notice of or to vote at any meeting of shareholders. | The Board of Trustees may fix a date not more than 60 days before the meeting date as the record date for determining shareholders entitled to notice of or to vote at any meeting of shareholders. | The Board of Trustees may fix a date not more than 60 days before the meeting date as the record date for determining shareholders entitled to notice of or to vote at any meeting of shareholders. |
Quorum for Meetings | Except as otherwise provided by law, to constitute a quorum for the transaction of any business at any meeting of Shareholders there must be present, in person or by proxy, holders of one-fourth of the total number of Shares of the Trust outstanding and entitled to vote at such meeting without regard to Class except with respect to any matter which by law requires the separate approval of one or more Series or Classes, in which case the presence in person or by proxy of the holders of one-fourth, as set forth above, of the Shares of each Series or Class entitled to vote separately on the matter shall constitute a quorum. | Except as otherwise provided by law, to constitute a quorum for the transaction of any business at any meeting of Shareholders there must be present, in person or by proxy, holders of one-fourth of the total number of Shares of the Trust outstanding and entitled to vote at such meeting without regard to Class except with respect to any matter which by law requires the separate approval of one or more Series or Classes, in which case the presence in person or by proxy of the holders of one-fourth, as set forth above, of the Shares of each Series or Class entitled to vote separately on the matter shall constitute a quorum. | Except as otherwise provided by law, to constitute a quorum for the transaction of any business at any meeting of Shareholders there must be present, in person or by proxy, holders of thirty-three and one-third percent (33-1/3%) of the Shares outstanding and entitled to vote present in person or represented by proxy at a Shareholders' meeting shall constitute a quorum at such meeting. When a separate vote by one or more Series or Classes is required, thirty-three and one-third percent (33-1/3%) of the outstanding Shares of each such Series or Class entitled to vote present in person or represented by proxy at a Shareholders' meeting shall constitute a quorum of such Series or Class. |
Vote Required for Election of Trustees | A plurality of shares cast at a meeting of shareholders of the Trust. | A plurality of shares cast at a meeting of shareholders of the Trust. | A plurality of shares cast at a meeting of shareholders of the Trust. There shall be no cumulative voting in the election of Trustees. |
Adjournment of Meetings | In the absence of a quorum, Shareholders present in person or by proxy and entitled to vote at such meeting on such matter holding a majority of Shares present entitled to vote on such matter may by vote adjourn the meeting from time to time to be held at the same place without further notice than by announcement to be given at the meeting until a quorum, as defined above, entitled to vote on such matter shall be present. | In the absence of a quorum, Shareholders present in person or by proxy and entitled to vote at such meeting on such matter holding a majority of Shares present entitled to vote on such matter may by vote adjourn the meeting from time to time to be held at the same place without further notice than by announcement to be given at the meeting until a quorum, as defined above, entitled to vote on such matter shall be present. | Any Shareholders' meeting, whether or not a quorum is present, may be adjourned with respect to one or more matters to be considered at such meeting by action of the chairman of the meeting. Any business that might have been transacted at the original meeting may be transacted at any adjourned meeting. An adjournment may be made with respect to one or more proposals, but not necessarily all proposals, to be voted or acted upon at such meeting and any such adjournment shall not delay or otherwise affect the effectiveness and validity of a vote or other action taken prior to adjournment. |
Removal of Trustees by Shareholders | A Trustee may be removed at any meeting of shareholders of the Trust by a vote of two-thirds of the outstanding shares. | A Trustee may be removed at any meeting of shareholders of the Trust by a vote of two-thirds of the outstanding shares. | A Trustee may be removed at any meeting of shareholders of the Trusty by a plurality of shares cast at a meeting of shareholders of the Trust. There shall be no cumulative voting in the removal of Trustees. |
CATEGORY | SHAREHOLDER RIGHTS - FMLCV | SHAREHOLDER RIGHTS - FCVF | SHAREHOLDER RIGHTS – Surviving Fund |
Personal Liability of Officers and Trustees | The Trust agrees to indemnify each person who at any time serves as a Trustee or officer of the Trust (each such person being an “indemnitee”) against any liabilities and expenses, including amounts paid in satisfaction of judgments, in compromise or as fines and penalties and counsel fees incurred by such indemnitee in connection with the defense or disposition of any action, suit or other proceeding, whether civil or criminal, before any court or administrative or investigative body in which he may be or may have been involved as a party or otherwise or with which he may be or may have been threatened, by virtue of his being or having been a Trustee or officer of the Trust or his serving or having served as a trustee, director, officer, partner, or fiduciary of another trust, corporation, partnership, joint venture, or other enterprise at the request of the Trust, provided, however, that no indemnitee shall be indemnified hereunder against any liability to any person or any expense of such indemnitee arising by reason of: (i) willful misfeasance; (ii) bad faith; (iii) gross negligence; or (iv) reckless disregard of the duties involved in the conduct of his position (the conduct referred to in such clauses (i) through (iv) being sometimes referred to herein as “disabling conduct”). | The Trust agrees to indemnify each person who at any time serves as a Trustee or officer of the Trust (each such person being an “indemnitee”) against any liabilities and expenses, including amounts paid in satisfaction of judgments, in compromise or as fines and penalties and counsel fees incurred by such indemnitee in connection with the defense or disposition of any action, suit or other proceeding, whether civil or criminal, before any court or administrative or investigative body in which he may be or may have been involved as a party or otherwise or with which he may be or may have been threatened, by virtue of his being or having been a Trustee or officer of the Trust or his serving or having served as a trustee, director, officer, partner, or fiduciary of another trust, corporation, partnership, joint venture, or other enterprise at the request of the Trust, provided, however, that no indemnitee shall be indemnified hereunder against any liability to any person or any expense of such indemnitee arising by reason of: (i) willful misfeasance; (ii) bad faith; (iii) gross negligence; or (iv) reckless disregard of the duties involved in the conduct of his position (the conduct referred to in such clauses (i) through (iv) being sometimes referred to herein as “disabling conduct”). | The Trust agrees to indemnify each person who at any time serves as a Trustee or officer of the Trust (each such person being an “indemnitee”) against any liabilities and expenses, including amounts paid in satisfaction of judgments, in compromise or as fines and penalties and counsel fees incurred by such indemnitee in connection with the defense or disposition of any action, suit or other proceeding, whether civil or criminal, before any court or administrative or investigative body in which he may be or may have been involved as a party or otherwise or with which he may be or may have been threatened, by virtue of his being or having been a Trustee or officer of the Trust or his serving or having served as a trustee, director, officer, partner, or fiduciary of another trust, corporation, partnership, joint venture, or other enterprise at the request of the Trust, provided, however, that no indemnitee shall be indemnified hereunder against any liability to any person or any expense of such indemnitee arising by reason of: (i) willful misfeasance; (ii) bad faith; (iii) gross negligence; or (iv) reckless disregard of the duties involved in the conduct of his position (the conduct referred to in such clauses (i) through (iv) being sometimes referred to herein as “disabling conduct”). |
CATEGORY | SHAREHOLDER RIGHTS - FMLCV | SHAREHOLDER RIGHTS - FCVF | SHAREHOLDER RIGHTS – Surviving Fund |
Personal Liability of Shareholders | Under certain circumstances, shareholders may be held personally liable as partners under Massachusetts law for obligations of the Trust. To protect its shareholders, the Trust has filed legal documents with Massachusetts that expressly disclaim the liability of its shareholders for acts or obligationsof the Trust. In the unlikely event a shareholder is held personally liable for the Trust's obligations, the Trust is required by its Declaration of Trust to use its property to protect or compensate the shareholder. On request, the Trust will defend any claim made and pay any judgment against a shareholder for any act or obligation of the Trust. Therefore, financial loss resulting from liability as a shareholder will occur only if the Trust itself cannot meet its obligations to indemnify shareholders and pay judgments against them. | Under certain circumstances, shareholders may be held personally liable as partners under Massachusetts law for obligations of the Trust. To protect its shareholders, the Trust has filed legal documents with Massachusetts that expressly disclaim the liability of its shareholders for acts or obligations of the Trust. In the unlikely event a shareholder is held personally liable for the Trust's obligations, the Trust is required by its Declaration of Trust to use its property to protect or compensate the shareholder. On request, the Trust will defend any claim made and pay any judgment against a shareholder for any act or obligation of the Trust. Therefore, financial loss resulting from liability as a shareholder will occur only if the Trust itself cannot meet its obligations to indemnify shareholders and pay judgments against them. | No Shareholder shall be subject to any personal liability whatsoever to any Person in connection with Trust Property or the acts, obligations or affairs of the Trust. No Shareholder or former Shareholder of any Series or Class shall be liable solely by reason of his or her being or having been a Shareholder for any debt, claim, action, demand, suit, proceeding, judgment, decree, liability or obligation of any kind, against, or with respect to the Trust or any Series or Class arising out of any action taken or omitted for or on behalf of the Trust or such Series or Class, and the Trust or such Series or Class shall be solely liable therefor and resort shall be had solely to the Trust Property of the relevant Series or Class for the payment or performance thereof.If any Shareholder or former Shareholder of any Series or Class is held personally liable solely by reason of his or her being or having been a Shareholder and not because of his or her acts or omissions or for some other reason, the Shareholder or former Shareholder (or his or her heirs, executors, administrators or other legal representatives or, in the case of any entity, its general successor) shall be entitled out of the assets belonging to the applicable Series or Class to be held harmless from and indemnified against all claims and liabilities and reimbursed all legal and other expenses reasonably incurred by him or her in connection with such claim or liability. The Trust, on behalf of the affected Series or Class, shall, upon request by such Shareholder or former Shareholder, assume the defense of any claim made against him or her for any act or obligation of the Series or Class and satisfy any judgment thereon from the assets belonging to the Series or Class. |
CATEGORY | SHAREHOLDER RIGHTS - FMLCV | SHAREHOLDER RIGHTS - FCVF | SHAREHOLDER RIGHTS – Surviving Fund |
Right of Inspection | Under Massachusetts law, and under the Bylaws of the Trust, the trustees of a Massachusetts business trust may from time to time determine whether and to what extent, and at what times and places, and under what conditions and regulations the accounts and books of the Trust maintained on behalf of each series and class of shares of the Trust or any of them may be open to the inspection of the shareholders of any series or class; and no shareholder may have any right to inspect any account or book or document of the Trust except that, to the extent such account or book or document relates to the series or class in which he is a shareholder or the Trust generally, such shareholder will have such right of inspection as conferred by laws or authorized by the trustees or by resolution of the shareholders of the relevant series or class. | Under Massachusetts law, and under the Bylaws of the Trust, the trustees of a Massachusetts business trust may from time to time determine whether and to what extent, and at what times and places, and under what conditions and regulations the accounts and books of the Trust maintained on behalf of each series and class of shares of the Trust or any of them may be open to the inspection of the shareholders of any series or class; and no shareholder may have any right to inspect any account or book or document of the Trust except that, to the extent such account or book or document relates to the series or class in which he is a shareholder or the Trust generally, such shareholder will have such right of inspection as conferred by laws or authorized by the trustees or by resolution of the shareholders of the relevant series or class. | Under Delaware law and under the Bylaws of the Trust, the trustees of a Delaware business trust shall have the right at any reasonable time to inspect all books, records and documents of every kind and the physical properties of the Trust. This inspection by a Trustee may be made in person or by an agent or attorney and the right of inspection includes the right to copy and make extracts of documents. No Shareholder shall have any right to inspect any account, book or document of the Trust that is not publicly available, except as conferred by the Trustees. The books and records of the Trust may be kept at such place or places as the Trustees may from time to time determine, except as otherwise required by law. |
Number of Authorized Shares; Par Value | Unlimited; No Par Value | Unlimited; No Par Value | Unlimited; No Par Value |
Name of Fund | Share Class | Outstanding Shares |
Federated Clover Value Fund | Class A Shares | |
Class B Shares | ||
Class C Shares | ||
Class R Shares | ||
Institutional Shares | ||
Class R6 Shares |
Title of Class | Name and Address | Shares | Percentage of Shares |
Federated Clover Value Fund–Class A Shares | |||
Federated Clover Value Fund–Class B Shares | |||
Federated Clover Value Fund–Class C Shares | |||
Federated Clover Value Fund–Class R Shares |
Title of Class | Name and Address | Shares | Percentage of Shares |
Federated Clover Value Fund–Institutional Shares | |||
Federated Clover Value Fund–Class R6 Shares | |||
Name of Fund | Share Class | Outstanding Shares |
Federated MDT Large Cap Value Fund | Class A Shares | |
Institutional Shares | ||
Service Shares | ||
Class R6 Shares |
Title of Class | Name and Address | Shares | Percentage of Shares |
Federated MDT Large Cap Value Fund – Class A Shares | |||
Federated MDT Large Cap Value Fund – Institutional Shares | |||
Federated MDT Large Cap Value Fund – Service Shares | |||
Federated MDT Large Cap Value Fund – Class R6 Shares | |||
Name of Fund | Share Class | Outstanding Shares |
Federated Clover Value Fund | Class A Shares | |
Class B Shares | ||
Class C Shares | ||
Class R Shares | ||
Institutional Shares | ||
Service Shares | ||
Class R6 Shares | ||
Class T Shares | None |
Title of Class | Name and Address | Shares | Percentage of Shares |
Surviving Fund–Class A Shares | text | ||
Surviving Fund–Class B Shares | |||
Surviving Fund–Class C Shares | |||
Surviving Fund–Class R Shares | |||
Surviving Fund–Institutional Shares | |||
Surviving Fund–Service Shares | |||
Surviving Fund–Class R6 Shares | |||
Surviving Fund–Class T Shares | None | None | None |
Secretary
By: |
Name: John W. McGonigle |
Title: Secretary |
By: |
Name: John W. McGonigle |
Title: Secretary |
By: |
Name: John W. McGonigle |
Title: Secretary |
By: |
Name: John W. McGonigle |
Title: Secretary |
Six Months Ended (unaudited) 3/31/2017 | Year Ended September 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | ||
Net Asset Value, Beginning of Period | $21.04 | $20.09 | $22.54 | $19.57 | $16.10 | $12.57 |
Income From Investment Operations: | ||||||
Net investment income1 | 0.07 | 0.40 | 0.07 | 0.28 | 0.14 | 0.14 |
Net realized and unrealized gain (loss) on investments and foreign currency transactions | 2.34 | 0.98 | (2.28) | 2.81 | 3.47 | 3.44 |
TOTAL FROM INVESTMENT OPERATIONS | 2.41 | 1.38 | (2.21) | 3.09 | 3.61 | 3.58 |
Less Distributions: | ||||||
Distributions from net investment income | (0.04) | (0.43) | (0.24) | (0.12) | (0.15) | (0.14) |
Return of capital | — | — | — | — | (0.00)2,3 | — |
TOTAL DISTRIBUTIONS | (0.04) | (0.43) | (0.24) | (0.12) | (0.15) | (0.14) |
Regulatory Settlement Proceeds | — | — | — | — | 0.014 | 0.094 |
Net Asset Value, End of Period | $23.41 | $21.04 | $20.09 | $22.54 | $19.57 | $16.10 |
Total Return5 | 11.47% | 6.96% | (9.93)% | 15.79% | 22.55%4 | 29.28%4 |
Ratios to Average Net Assets: | ||||||
Net expenses | 1.20%6 | 1.19% | 1.19% | 1.19% | 1.19% | 1.19%7 |
Net investment income | 0.62%6 | 1.96% | 0.31% | 1.26% | 0.81% | 0.93% |
Expense waiver/reimbursement8 | 0.11%6 | 0.11% | 0.08% | 0.08% | 0.11% | 0.14% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $510,836 | $506,552 | $578,048 | $709,502 | $664,588 | $614,914 |
Portfolio turnover | 27% | 78% | 102% | 98% | 81% | 63% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Represents less than $0.01. |
3 | Represents a return of capital for federal income tax purposes. |
4 | On September 9, 2013 and June 12, 2012, the Fund received a residual distribution from a regulatory settlement which had a total return impact of less than 0.00% and 0.40%, respectively. During the year ended September 30, 2012, the Fund received a regulatory settlement from an unaffiliated third party, which had an impact of 0.24% on the total return. |
5 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods of less than one year are not annualized. |
6 | Computed on an annualized basis. |
7 | The net expense ratio is calculated without reduction for fees paid indirectly for expense offset arrangements. The net expense ratio is 1.19% for the year ended September 30, 2012 after taking into account these expense reductions. |
8 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. |
Six Months Ended (unaudited) 3/31/2017 | Year Ended September 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | ||
Net Asset Value, Beginning of Period | $20.87 | $19.94 | $22.38 | $19.48 | $16.03 | $12.52 |
Income From Investment Operations: | ||||||
Net investment income (loss)1 | (0.01) | 0.25 | (0.10) | 0.12 | 0.01 | 0.03 |
Net realized and unrealized gain (loss) on investments and foreign currency transactions | 2.32 | 0.97 | (2.24) | 2.78 | 3.45 | 3.42 |
TOTAL FROM INVESTMENT OPERATIONS | 2.31 | 1.22 | (2.34) | 2.90 | 3.46 | 3.45 |
Less Distributions: | ||||||
Distributions from net investment income | (0.00)2 | (0.29) | (0.10) | (0.00)2 | (0.02) | (0.03) |
Return of capital | — | — | — | — | (0.00)2,3 | — |
TOTAL DISTRIBUTIONS | (0.00)2 | (0.29) | (0.10) | (0.00)2 | (0.02) | (0.03) |
Regulatory Settlement Proceeds | — | — | — | — | 0.014 | 0.094 |
Net Asset Value, End of Period | $23.18 | $20.87 | $19.94 | $22.38 | $19.48 | $16.03 |
Total Return5 | 11.08% | 6.16% | (10.54)% | 14.90% | 21.70%4 | 28.29%4 |
Ratios to Average Net Assets: | ||||||
Net expenses | 1.93%6 | 1.92% | 1.92% | 1.92% | 1.92% | 1.92%7 |
Net investment income (loss) | (0.09)%6 | 1.25% | (0.44)% | 0.53% | 0.08% | 0.19% |
Expense waiver/reimbursement8 | 0.20%6 | 0.21% | 0.15% | 0.17% | 0.26% | 0.30% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $19,551 | $20,983 | $24,426 | $31,788 | $33,452 | $33,658 |
Portfolio turnover | 27% | 78% | 102% | 98% | 81% | 63% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Represents less than $0.01. |
3 | Represents a return of capital for federal income tax purposes. |
4 | On September 9, 2013 and June 12, 2012, the Fund received a residual distribution from a regulatory settlement which had a total return impact of 0.06% and 0.40%, respectively. During the year ended September 30, 2012, the Fund received a regulatory settlement from an unaffiliated third party, which had an impact of 0.32% on the total return. |
5 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods of less than one year are not annualized. |
6 | Computed on an annualized basis. |
7 | The net expense ratio is calculated without reduction for fees paid indirectly for expense offset arrangements. The net expense ratio is 1.92% for the year ended September 30, 2012 after taking into account these expense reductions. |
8 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. |
Six Months Ended (unaudited) 3/31/2017 | Year Ended September 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | ||
Net Asset Value, Beginning of Period | $20.90 | $19.96 | $22.41 | $19.50 | $16.06 | $12.54 |
Income From Investment Operations: | ||||||
Net investment income (loss)1 | (0.01) | 0.25 | (0.10) | 0.12 | 0.01 | 0.03 |
Net realized and unrealized gain (loss) on investments and foreign currency transactions | 2.33 | 0.97 | (2.26) | 2.79 | 3.45 | 3.43 |
TOTAL FROM INVESTMENT OPERATIONS | 2.32 | 1.22 | (2.36) | 2.91 | 3.46 | 3.46 |
Less Distributions: | ||||||
Distributions from net investment income | (0.00)2 | (0.28) | (0.09) | (0.00)2 | (0.03) | (0.03) |
Return of capital | — | — | — | — | (0.00)2,3 | — |
TOTAL DISTRIBUTIONS | (0.00)2 | (0.28) | (0.09) | (0.00)2 | (0.03) | (0.03) |
Regulatory Settlement Proceeds | — | — | — | — | 0.014 | 0.094 |
Net Asset Value, End of Period | $23.22 | $20.90 | $19.96 | $22.41 | $19.50 | $16.06 |
Total Return5 | 11.10% | 6.17% | (10.57)% | 14.94% | 21.61%4 | 28.34%4 |
Ratios to Average Net Assets: | ||||||
Net expenses | 1.93%6 | 1.92% | 1.92% | 1.92% | 1.92% | 1.92%7 |
Net investment income (loss) | (0.11)%6 | 1.24% | (0.42)% | 0.53% | 0.08% | 0.19% |
Expense waiver/reimbursement8 | 0.16%6 | 0.17% | 0.13% | 0.13% | 0.16% | 0.19% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $32,391 | $32,263 | $36,916 | $46,022 | $41,237 | $37,331 |
Portfolio turnover | 27% | 78% | 102% | 98% | 81% | 63% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Represents less than $0.01. |
3 | Represents a return of capital for federal income tax purposes. |
4 | On September 9, 2013 and June 12, 2012, the Fund received a residual distribution from a regulatory settlement which had a total return impact of less than 0.00% and 0.40%, respectively. During the year ended September 30, 2012, the Fund received a regulatory settlement from an unaffiliated third party, which had an impact of 0.32% on the total return. |
5 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods of less than one year are not annualized. |
6 | Computed on an annualized basis. |
7 | The net expense ratio is calculated without reduction for fees paid indirectly for expense offset arrangements. The net expense ratio is 1.92% for the year ended September 30, 2012 after taking into account these expense reductions. |
8 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. |
Six Months Ended (unaudited) 3/31/2017 | Year Ended September 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | ||
Net Asset Value, Beginning of Period | $21.06 | $20.11 | $22.57 | $19.60 | $16.12 | $12.58 |
Income From Investment Operations: | ||||||
Net investment income1 | 0.09 | 0.45 | 0.12 | 0.34 | 0.19 | 0.18 |
Net realized and unrealized gain (loss) on investments and foreign currency transactions | 2.37 | 0.98 | (2.28) | 2.81 | 3.47 | 3.45 |
TOTAL FROM INVESTMENT OPERATIONS | 2.46 | 1.43 | (2.16) | 3.15 | 3.66 | 3.63 |
Less Distributions: | ||||||
Distributions from net investment income | (0.06) | (0.48) | (0.30) | (0.18) | (0.18) | (0.18) |
Return of capital | — | — | — | — | (0.01)2 | — |
TOTAL DISTRIBUTIONS | (0.06) | (0.48) | (0.30) | (0.18) | (0.19) | (0.18) |
Regulatory Settlement Proceeds | — | — | — | — | 0.013 | 0.093 |
Net Asset Value, End of Period | $23.46 | $21.06 | $20.11 | $22.57 | $19.60 | $16.12 |
Total Return4 | 11.67% | 7.22% | (9.72)% | 16.06% | 22.90%3 | 29.66%3 |
Ratios to Average Net Assets: | ||||||
Net expenses | 0.95%5 | 0.94% | 0.94% | 0.94% | 0.94% | 0.94%6 |
Net investment income | 0.82%5 | 2.19% | 0.54% | 1.54% | 1.06% | 1.18% |
Expense waiver/reimbursement7 | 0.05%5 | 0.06% | 0.03% | 0.03% | 0.04% | 0.06% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $114,040 | $93,042 | $131,623 | $173,598 | $204,251 | $174,998 |
Portfolio turnover | 27% | 78% | 102% | 98% | 81% | 63% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Represents a return of capital for federal income tax purposes. |
3 | On September 9, 2013 and June 12, 2012, the Fund received a residual distribution from a regulatory settlement which had a total return impact of 0.06% and 0.40%, respectively. During the year ended September 30, 2012, the Fund received a regulatory settlement from an unaffiliated third party, which had an impact of 0.24% on the total return. |
4 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
5 | Computed on an annualized basis. |
6 | The net expense ratio is calculated without reduction for fees paid indirectly for expense offset arrangements. The net expense ratio is 0.93% for the year ended September 30, 2012 after taking into account these expense reductions. |
7 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. |
Six Months Ended (unaudited) 3/31/2017 | Year Ended September 30, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | ||
Net Asset Value, Beginning of Period | $21.05 | $20.10 | $22.54 | $19.58 | $16.11 | $12.57 |
Income From Investment Operations: | ||||||
Net investment income1 | 0.05 | 0.35 | 0.02 | 0.24 | 0.11 | 0.10 |
Net realized and unrealized gain (loss) on investments and foreign currency transactions | 2.35 | 0.99 | (2.28) | 2.80 | 3.46 | 3.46 |
TOTAL FROM INVESTMENT OPERATIONS | 2.40 | 1.34 | (2.26) | 3.04 | 3.57 | 3.56 |
Less Distributions: | ||||||
Distributions from net investment income | (0.03) | (0.39) | (0.18) | (0.08) | (0.11) | (0.11) |
Return of capital | — | — | — | — | (0.00)2,3 | — |
TOTAL DISTRIBUTIONS | (0.03) | (0.39) | (0.18) | (0.08) | (0.11) | (0.11) |
Regulatory Settlement Proceeds | — | — | — | — | 0.014 | 0.094 |
Net Asset Value, End of Period | $23.42 | $21.05 | $20.10 | $22.54 | $19.58 | $16.11 |
Total Return5 | 11.41% | 6.73% | (10.13)% | 15.52% | 22.32%4 | 29.07%4 |
Ratios to Average Net Assets: | ||||||
Net expenses | 1.40%6 | 1.41% | 1.42% | 1.38% | 1.38% | 1.42%7 |
Net investment income | 0.42%6 | 1.73% | 0.08% | 1.06% | 0.62% | 0.70% |
Expense waiver/reimbursement8 | 0.29%6 | 0.30% | 0.27% | 0.28% | 0.29% | 0.31% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $22,129 | $22,123 | $21,968 | $27,505 | $24,706 | $20,830 |
Portfolio turnover | 27% | 78% | 102% | 98% | 81% | 63% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Represents less than $0.01. |
3 | Represents a return of capital for federal income tax purposes. |
4 | On September 9, 2013 and June 12, 2012, the Fund received a residual distribution from a regulatory settlement which had a total return impact of 0.06% and 0.40%, respectively. During the year ended September 30, 2012, the Fund received a regulatory settlement from an unaffiliated third party, which had an impact of 0.24% on the total return. |
5 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
6 | Computed on an annualized basis. |
7 | The net expense ratio is calculated without reduction for fees paid indirectly for expense offset arrangements. The net expense ratio is 1.42% for the year ended September 30, 2012 after taking into account these expense reductions. |
8 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. |
Six Months Ended (unaudited) 4/30/2017 | Year Ended October 31, | Period Ended 10/31/20141 | ||
2016 | 2015 | |||
Net Asset Value, Beginning of Period | $26.09 | $27.84 | $29.89 | $28.47 |
Income From Investment Operations: | ||||
Net investment income | 0.19 | 0.422 | 0.37 | 0.13 |
Net realized and unrealized gain (loss) on investments | 2.73 | 0.16 | (0.00)3 | 1.44 |
TOTAL FROM INVESTMENT OPERATIONS | 2.92 | 0.58 | 0.37 | 1.57 |
Less Distributions: | ||||
Distributions from net investment income | (0.20) | (0.42) | (0.36) | (0.15) |
Distributions from net realized gain on investments | (1.00) | (1.91) | (2.06) | — |
TOTAL DISTRIBUTIONS | (1.20) | (2.33) | (2.42) | (0.15) |
Net Asset Value, End of Period | $27.81 | $26.09 | $27.84 | $29.89 |
Total Return4 | 11.35% | 2.47% | 1.12% | 5.51% |
Ratios to Average Net Assets: | ||||
Net expenses | 0.98%5 | 0.98% | 0.99% | 0.99%5 |
Net investment income | 1.31%5 | 1.65% | 1.28% | 1.04%5 |
Expense waiver/reimbursement6 | 0.20%5 | 0.22% | 0.24% | 0.26%5 |
Supplemental Data: | ||||
Net assets, end of period (000 omitted) | $24,841 | $14,389 | $12,035 | $3,518 |
Portfolio turnover | 56% | 88% | 77% | 34%7 |
1 | Reflects operations for the period from May 1, 2014 (date of initial investment) to October 31, 2014. |
2 | Per share number has been calculated using the average shares method. |
3 | Represents less than $0.01. |
4 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized. |
5 | Computed on an annualized basis. |
6 | This expense decrease is reflected in both the net expense and net investment income ratios shown above. |
7 | Portfolio turnover is calculated at the Fund level. Percentage indicated was calculated for the fiscal year ended October 31, 2014. |
Six Months Ended (unaudited) 4/30/2017 | Year Ended October 31, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | ||
Net Asset Value, Beginning of Period | $26.10 | $27.85 | $29.90 | $28.56 | $22.30 | $22.52 |
Income From Investment Operations: | ||||||
Net investment income | 0.23 | 0.481 | 0.42 | 0.37 | 0.411 | 0.26 |
Net realized and unrealized gain (loss) on investments | 2.72 | 0.15 | (0.00)2 | 4.54 | 7.58 | 2.69 |
TOTAL FROM INVESTMENT OPERATIONS | 2.95 | 0.63 | 0.42 | 4.91 | 7.99 | 2.95 |
Less Distributions: | ||||||
Distributions from net investment income | (0.23) | (0.47) | (0.41) | (0.34) | (0.41) | (0.30) |
Distributions from net realized gain on investments | (1.00) | (1.91) | (2.06) | (3.23) | (1.32) | (2.87) |
TOTAL DISTRIBUTIONS | (1.23) | (2.38) | (2.47) | (3.57) | (1.73) | (3.17) |
Net Asset Value, End of Period | $27.82 | $26.10 | $27.85 | $29.90 | $28.56 | $22.30 |
Total Return3 | 11.46% | 2.70% | 1.32% | 18.93% | 38.21% | 14.88% |
Ratios to Average Net Assets: | ||||||
Net expenses | 0.76%4 | 0.76% | 0.77% | 0.77% | 0.77% | 0.77% |
Net investment income | 1.63%4 | 1.87% | 1.50% | 1.26% | 1.62% | 1.28% |
Expense waiver/reimbursement5 | 0.21%4 | 0.22% | 0.22% | 0.23% | 0.24% | 0.28% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $378,012 | $241,699 | $244,104 | $165,122 | $39,056 | $33,523 |
Portfolio turnover | 56% | 88% | 77% | 34% | 77% | 121% |
1 | Per share number has been calculated using the average shares method. |
2 | Represents less than $0.01. |
3 | Based on net asset value. Total returns for periods less than one year are not annualized. |
4 | Computed on an annualized basis. |
5 | This expense decrease is reflected in both the net expense and net investment income ratios shown above. |
Six Months Ended (unaudited) 4/30/2017 | Period Ended 10/31/20161 | |
Net Asset Value, Beginning of Period | $26.11 | $24.51 |
Income From Investment Operations: | ||
Net investment income | 0.23 | 0.082 |
Net realized and unrealized gain (loss) on investments | 2.72 | 1.62 |
TOTAL FROM INVESTMENT OPERATIONS | 2.95 | 1.70 |
Less Distributions: | ||
Distributions from net investment income | (0.24) | (0.10) |
Distributions from net realized gain on investments | (1.00) | — |
TOTAL DISTRIBUTIONS | (1.24) | (0.10) |
Net Asset Value, End of Period | $27.82 | $26.11 |
Total Return3 | 11.46% | 6.95% |
Ratios to Average Net Assets: | ||
Net expenses | 0.69%4 | 0.69%4 |
Net investment income | 1.65%4 | 0.85%4 |
Expense waiver/reimbursement5 | 0.19%4 | 0.24%4 |
Supplemental Data: | ||
Net assets, end of period (000 omitted) | $42,495 | $28,838 |
Portfolio turnover | 56% | 88%6 |
1 | Reflects operations for the period from June 29, 2016 (date of initial investment) to October 31, 2016. |
2 | Per share number has been calculated using the average shares method. |
3 | Based on net asset value. Total returns for periods less than one year are not annualized. |
4 | Computed on an annualized basis. |
5 | This expense decrease is reflected in both the net expense and net investment income ratios shown above. |
6 | Portfolio turnover is calculated at the Fund level. Percentage indicated was calculated for the fiscal year ended October 31, 2016. |
Six Months Ended (unaudited) 4/30/2017 | Year Ended October 31, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | ||
Net Asset Value, Beginning of Period | $26.11 | $27.85 | $29.90 | $28.56 | $22.31 | $22.53 |
Income From Investment Operations: | ||||||
Net investment income | 0.19 | 0.421 | 0.37 | 0.30 | 0.351 | 0.23 |
Net realized and unrealized gain (loss) on investments | 2.73 | 0.17 | (0.01) | 4.55 | 7.57 | 2.67 |
TOTAL FROM INVESTMENT OPERATIONS | 2.92 | 0.59 | 0.36 | 4.85 | 7.92 | 2.90 |
Less Distributions: | ||||||
Distributions from net investment income | (0.20) | (0.42) | (0.35) | (0.28) | (0.35) | (0.25) |
Distributions from net realized gain on investments | (1.00) | (1.91) | (2.06) | (3.23) | (1.32) | (2.87) |
TOTAL DISTRIBUTIONS | (1.20) | (2.33) | (2.41) | (3.51) | (1.67) | (3.12) |
Net Asset Value, End of Period | $27.83 | $26.11 | $27.85 | $29.90 | $28.56 | $22.31 |
Total Return2 | 11.34% | 2.50% | 1.10% | 18.68% | 37.85% | 14.63% |
Ratios to Average Net Assets: | ||||||
Net expenses | 0.98%3 | 0.98% | 0.99% | 0.99% | 0.99% | 0.99% |
Net investment income | 1.39%3 | 1.66% | 1.28% | 1.06% | 1.39% | 1.08% |
Expense waiver/reimbursement4 | 0.21%3 | 0.24% | 0.23% | 0.23% | 0.25% | 0.28% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $288,321 | $251,246 | $277,253 | $313,714 | $228,665 | $178,109 |
Portfolio turnover | 56% | 88% | 77% | 34% | 77% | 121% |
1 | Per share number has been calculated using the average shares method. |
2 | Based on net asset value. Total returns for periods less than one year are not annualized. |
3 | Computed on an annualized basis. |
4 | This expense decrease is reflected in both the net expense and net investment income ratios shown above. |
• | Employer-sponsored retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan |
• | Shares purchased by or through a 529 Plan |
• | Shares purchased through a Merrill Lynch affiliated investment advisory program |
• | Shares purchased by third-party investment advisors on behalf of their advisory clients through Merrill Lynch's platform |
• | Shares of funds purchased through the Merrill Edge Self-Directed platform |
• | Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not any other fund within the fund family) |
• | Shares exchanged from Class C shares of the same fund in the month of or following the 10-year anniversary of the purchase date |
• | Employees and registered representatives of Merrill Lynch or its affiliates and their family members |
• | Directors or Trustees of the Fund, and employees of the Fund's investment adviser or any of its affiliates, as described in this prospectus |
• | Shares purchased from the proceeds of redemptions within the same fund family, provided: (1) the repurchase occurs within 90 days following the redemption; (2) the redemption and purchase occur in the same account; and (3) redeemed shares were subject to a front-end or deferred sales load (known as Rights of Reinstatement) |
• | Death or disability of the shareholder |
• | Shares sold as part of a systematic withdrawal plan as described in the Fund's prospectus |
• | Return of excess contributions from an IRA Account |
• | Shares sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching age 70 1⁄2 |
• | Shares sold to pay Merrill Lynch fees but only if the transaction is initiated by Merrill Lynch |
• | Shares acquired through a right of reinstatement |
• | Shares held in retirement brokerage accounts, that are converted to a lower cost share class due to transfer to certain fee based accounts or platforms (applicable to A and C shares only). The CDSC applicable to the converted shares will be waived, and Merrill Lynch will remit to the Fund's Distributor a portion of the waived CDSC. Such portion shall be equal to the number of months remaining on the CDSC period divided by the total number of months of the CDSC period. |
Breakpoints, Rights of Accumulation and Letters of Intent
• | Breakpoints as described in this prospectus |
• | Rights of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of fund family assets held by accounts within the purchaser's household at Merrill Lynch. Eligible fund family assets not held at Merrill Lynch may be included in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets. |
• | Letters of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Merrill Lynch, over a 13-month period of time |
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
314209 206
314209 305
314209 404
314209 503
314209 602
314209 701
314209 800
2017 ©Federated Investors, Inc.
4000 Ericsson Drive
Warrendale, Pennsylvania 15086-7561
Telephone No: 1-800-341-7400
4000 Ericsson Drive
Warrendale, Pennsylvania 15086-7561
Telephone No: 1-800-341-7400
4000 Ericsson Drive
Warrendale, Pennsylvania 15086-7561
Telephone No: 1-800-341-7400
1. | Statement of Additional Information of Federated Clover Value Fund, dated November 30, 2016. |
2. | Statement of Additional Information of Federated MDT Large Cap Value Fund, dated January 17, 2017. |
3. | Statement of Additional Information of the Fund, dated [August 31], 2017. |
4. | Audited Financial Statements of Federated Clover Value Fund, dated September 30, 2016. |
5. | Audited Financial Statements of Federated MDT Large Cap Value Fund, dated October 31, 2016. |
6. | Semi-Annual Report for Federated Clover Value Fund dated March 31, 2017 (File Nos.: 2-91090 and 811-4017). |
7. | Semi-Annual Report for Federated MDT Large Cap Value Fund dated April 30, 2017 (File Nos.: 2-75756 and 811-3385). |
■ | Fixed-income securities are fair valued using price evaluations provided by a pricing service approved by the Funds' Board of Trustees (the “Trustees”). |
■ | Derivative contracts listed on exchanges are valued at their reported settlement or closing price, except that options are valued at the mean of closing bid and asked quotations. |
■ | Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Trustees. |
■ | Shares of other mutual funds or non-exchange-traded investment companies are valued based upon their reported NAVs. |
■ | Equity securities listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market. |
■ | For securities that are fair valued in accordance with procedures established by and under the general supervision of the Trustees, certain factors may be considered such as: the last traded or purchase price of the security, information obtained by contacting the issuer or dealers, analysis of the issuer's financial statements or other available documents, fundamental analytical data, the nature and duration of restrictions on disposition, the movement of the market in which the security is normally traded, public trading in similar securities or derivative contracts of the issuer or comparable issuers, movement of a relevant index, or other factors including but not limited to industry changes and relevant government actions. |
■ | With respect to securities traded principally in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures contracts; |
■ | Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; |
■ | Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, or a natural disaster affecting the issuer's operations or regulatory changes or market developments affecting the issuer's industry. |
101 Park Avenue, 41st Floor
New York, NY 10178
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21st Floor
Boston, MA 02110
Federated Investors Tower
1001 Liberty Avenue
Pittsburgh, PA 15222-3779
Federated Investors Tower
1001 Liberty Avenue
Pittsburgh, PA 15222-3779
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
2017 ©Federated Investors, Inc.
PART C. OTHER INFORMATION.
Item 15. Indemnification
Indemnification is provided to Trustees and officers of the Registrant pursuant to the Registrant's Declaration of Trust and Bylaws, except where such indemnification is not permitted by law. However, the Declaration of Trust and Bylaws do not protect the Trustees or officers from liability based on willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of their office. Trustees and officers of the Registrant are insured against certain liabilities, including liabilities arising under the Securities Act of 1933 (the "Act").
The Investment Advisory Contract between the Registrant and Federated MDTA LLC ("Adviser"), provides that, in the absence of willful misfeasance, bad faith, gross negligence, or reckless disregard of the obligations or duties under the Investment Advisory Contract on the part of Adviser, Adviser shall not be liable to the Registrant or to any shareholder for any act or omission in the course of or connected in any way with rendering services or for any losses that may be sustained in the purchase, holding, or sale of any security.
The Registrant’s distribution contract, to be filed by amendment, is expected to contain provisions limiting the liability, and providing for indemnification, of the Officers and Trustees under certain circumstances.
Registrant's Trustees and Officers are covered by an Investment Trust Errors and Omissions Policy.
Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to Trustees, Officers, and controlling persons of the Registrant by the Registrant pursuant to the Declaration of Trust or otherwise, the Registrant is aware that in the opinion of the Securities and Exchange Commission, such indemnification is against public policy as expressed in the Act and, therefore, is unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by Trustees), Officers, or controlling persons of the Registrant in connection with the successful defense of any act, suit, or proceeding) is asserted by such Trustees, Officers, or controlling persons in connection with the shares being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issues.
Insofar as indemnification for liabilities may be permitted pursuant to Section 17 of the Investment Company Act of 1940 for Trustees, Officers, and controlling persons of the Registrant by the Registrant pursuant to the Declaration of Trust or otherwise, the Registrant is aware of the position of the Securities and Exchange Commission as set forth in Investment Company Act Release No. IC-11330. Therefore, the Registrant undertakes that in addition to complying with the applicable provisions of the Declaration of Trust or otherwise, in the absence of a final decision on the merits by a court or other body before which the proceeding was brought, that an indemnification payment will not be made unless in the absence of such a decision, a reasonable determination based upon factual review has been made (i) by a majority vote of a quorum of non-party Trustees who are not interested persons of the Registrant or (ii) by independent legal counsel in a written opinion that the indemnitee was not liable for an act of willful misfeasance, bad faith, gross negligence, or reckless disregard of duties. The Registrant further undertakes that advancement of expenses incurred in the defense of a proceeding (upon undertaking for repayment unless it is ultimately determined that indemnification is appropriate) against an Officer, Trustee or controlling person of the Registrant will not be made absent the fulfillment of at least one of the following conditions: (i) the indemnitee provides security for his undertaking; (ii) the Registrant is insured against losses arising by reason of any lawful advances; or (iii) a majority of a quorum of disinterested non-party Trustees or independent legal counsel in a written opinion makes a factual determination that there is reason to believe the indemnitee will be entitled to indemnification.
Item 16. Exhibits
Exhibit Number | DESCRIPTION |
(1) | |||
1.1 | Form of Agreement and Declaration of Trust of the Registrant; | (1) | |
1.2 | Conformed copy of Agreement and Declaration of Trust of the Registrant dated July 12, 2017; | + | |
1.3 | Conformed copy of Certificate of Trust of the Registrant dated July 12, 2017; | + |
(2) | |||
2.1 | Form of By-Laws; | (1) | |
2.2 | Conformed copy of By-Laws dated July 12, 2017; | + |
(3) | Not applicable |
(4) | Forms of Agreements and Plans of Reorganization are filed herein as Annex A to the Prospectus/Proxy Statement; | + |
(5) | Federated Securities Corp. does not issue share certificates for the Fund. |
(6) | |||
6.1 | Form of Investment Advisory Contract of the Registrant; | (1) | |
6.2 | Conformed copy of Investment Advisory Contract of the Registrant dated June 1, 2017; | + |
(7) | |||
7.1 | Conformed copy Distributor’s Contract of the Registrant (to be filed by amendment); |
(8) | Not applicable |
(9) | |||
9.1 | Conformed copy of Custodian Agreement of the Registrant (to be filed by amendment); |
(10) | |||
10.1 | Conformed copy of Rule 12b-1 Distribution Plan (to be filed by amendment); | ||
10.2 | Conformed copy of Multiple Class Plan and Exhibits (to be filed by amendment); |
(11) | Conformed Copy of Opinion and Consent of Counsel Regarding the Legality of Shares being Issued dated August 8, 2017; | + |
(12) | Form of Opinion regarding Tax Consequences of the Reorganizations; | + |
(13) | |||
13.1 | Conformed copy of Agreement for Administrative Services between Registrant and Federated Administrative Services (to be filed by amendment); | ||
13.2 | Conformed copy of Transfer Agency and Service Agreement between the Federated Funds and State Street Bank and Trust Company (to be filed by amendment); | ||
13.3 | Conformed copy of Financial Administration and Accounting Services Agreement between Registrant and State Street Bank and Trust Company (to be filed by amendment); | ||
13.4 | Conformed copy of Amended and Restated Services Agreement between Registrant and Federated Shareholder Services Company (to be filed by amendment); | ||
13.5 | Conformed copy of Principal Shareholder Services Agreement between Registrant and Federated Securities Corp. (to be filed by amendment); | ||
13.6 | Conformed copy of Shareholder Services Agreement between Registrant and Federated Shareholder Services Company (to be filed by amendment); |
(14) | Conformed copy of Consent of KPMG LLP, Independent Registered Public Accounting Firm; | + |
(15) | Not Applicable |
(16) | |||
16.1 | Conformed copy of Power of Attorney of the Registrant relating to the proposed reorganization pursuant to Form N-14 of Federated MDT Large Cap Value Fund into Federated MDT Large Cap Value Fund, a portfolio of the Registrant; | + | |
16.2 | Conformed copy of Unanimous Consent of Trustees of the Registrant authorizing the Secretary and Assistant Secretaries to sign the Registrant’s Registration Statement on Form N-14 with respect to the proposed reorganization of Federated MDT Large Cap Value Fund into Federated MDT Large Cap Value Fund, a portfolio of the Registrant; | + | |
16.3 | Conformed copy of Power of Attorney of the Registrant relating to the proposed reorganization pursuant to Form N-14 of Federated Clover Value Fund, a portfolio of Federated Equity Funds, into Federated MDT Large Cap Value Fund, a portfolios of the Registrant; | + |
16.4 | Conformed copy of Unanimous Consent of Trustees of the Registrant authorizing the Secretary and Assistant Secretaries to sign the Registrant’s Registration Statement on Form N-14 with respect to the proposed reorganization of Federated Clover Value Fund, a portfolio of Federated Equity Funds, into Federated MDT Large Cap Value Fund, a portfolio of the Registrant; | + |
(17) | Form of Ballot | ||
17.1 | Form of Ballot for Federated MDT Large Cap Value Fund; | + | |
17.2 | Form of Ballot for Federated Clover Value Fund, a portfolio of Federated Equity Funds; | + |
+ | Exhibit is being filed electronically with registration statement; indicate by footnote |
ALL RESPONSES ARE INCORPORATED BY REFERENCE TO A POST-EFFECTIVE AMENDMENT (PEA) OF THE REGISTRANT FILED ON FORM N-1A (FILE NOS. 33-52149 and 811-7141) | ||
1. | Initial Registration Statement filed May 31, 2017. |
Item 17. Undertakings
(1) The undersigned Registrant agrees that prior to any public reoffering of the securities registered through the use of a prospectus which is a part of this Registration Statement by any person or party who is deemed to be an underwriter within the meaning of Rule 145(c) of the Securities Act of 1933, the reoffering prospectus will contain the information called for by the applicable registration form for reofferings by persons who may be deemed underwriters, in addition to the information called for by the other items of the applicable form.
(2) The undersigned Registrant agrees that every prospectus that is filed under paragraph (1) above will be filed as a part of an amendment to the Registration Statement and will not be used until the amendment is effective, and that, in determining any liability under the Securities Act of 1933, each post-effective amendment shall be deemed to be a new Registration Statement for the securities offered therein, and the offering of the securities at that time shall be deemed to be the initial bona fide offering of them.
(3) The undersigned Registrant agrees to file by Post-Effective Amendment the opinion of counsel regarding the tax consequences of the proposed reorganization required by Item (16)(12) of Form N-14 prior to the closing date of the reorganization.
SIGNATURES Pursuant to the requirements of the Securities Act of 1933, the Registrant, FEDERATED MDT EQUITY TRUST, has duly caused this Registration Statement on Form N-14 to be signed on its behalf by the undersigned, duly authorized, in the City of Pittsburgh and Commonwealth of Pennsylvania, on the 9th day of August, 2017. |
FEDERATED MDT EQUITY TRUST |
BY:/s/ Edward C. Bartley Edward C. Bartley, Assistant Secretary |
Pursuant to the requirements of the Securities Act of 1933, this Registration Statement on Form N-14 has been signed below by the following person in the capacity and on the date indicated: |
NAME | TITLE | DATE |
BY:/s/ Edward C. Bartley Assistant Secretary | Attorney In Fact For the Persons Listed Below | August 9, 2017 |
J. Christopher Donahue *
| President and Trustee (Principal Executive Officer) | |
John B. Fisher* | Trustee | |
Lori A. Hensler* | Treasurer (Principal Financial Officer/Principal Accounting Officer) | |
John T. Collins* | Trustee | |
G. Thomas Hough* | Trustee | |
Maureen Lally-Green* | Trustee | |
Peter E. Madden* | Trustee | |
Charles F. Mansfield, Jr.* | Trustee | |
Thomas O’Neill* | Trustee | |
P. Jerome Richey* | Trustee | |
John S. Walsh* | Trustee | |
*By Power of Attorney |