United States
Securities and Exchange Commission
Washington, D.C. 20549
Form N-CSR
Certified Shareholder Report of Registered Management Investment Companies
811-6061
(Investment Company Act File Number)
Federated Index Trust
_______________________________________________________________
(Exact Name of Registrant as Specified in Charter)
Federated Investors Funds
4000 Ericsson Drive
Warrendale, Pennsylvania 15086-7561
(Address of Principal Executive Offices)
(412) 288-1900
(Registrant's Telephone Number)
Peter J. Germain, Esquire
Federated Investors Tower
1001 Liberty Avenue
Pittsburgh, Pennsylvania 15222-3779
(Name and Address of Agent for Service)
(Notices should be sent to the Agent for Service)
Date of Fiscal Year End: 10/31/18
Date of Reporting Period: 10/31/18
Item 1. | Reports to Stockholders |
Share Class | Ticker | C | MXCCX | R | FMXKX | Institutional | FISPX | Service | FMXSX |
1 | Please see the footnotes to the line graphs below for definitions of, and further information about, the S&P 500. |
2 | The S&P Composite 1500® Index combines three leading indices, the S&P 500®, the S&P MidCap 400® Index and the S&P SmallCap 600® Index to cover approximately 90% of the U.S. market capitalization.* |
3 | The S&P 100® Index, a sub-set of the S&P 500® Index, measures the performance of large cap companies in the United States. The Index comprises 100 major, blue chip companies across multiple industry groups. Individual stock options are listed for each index constituent.* |
4 | The S&P SmallCap 600® Index measures the small cap segment of the U.S. equity market. The index is designed to be an investable portfolio of companies that meet specific inclusion criteria to ensure that they are liquid and financially viable.* |
5 | The S&P MidCap 400® Index is an unmanaged capitalization weighted index of common stocks representing all major industries in the mid-range of the U.S. stock market.* |
6 | The S&P Composite 1500® Value Index measures value stocks using three factors: the ratios of book value, earnings, and sales to price. S&P Style Indices divide the complete market capitalization of each parent index into growth and value segments. Constituents are drawn from the S&P 1500® Index, which combines the S&P 500 ® Index, S&P MidCap 400® Index and the S&P SmallCap 600® Index.* |
7 | The S&P Composite 1500® Growth Index measures growth stocks using three factors: sales growth, the ratio of earnings change to price, and momentum. S&P Style Indices divide the complete market capitalization of each parent index into growth and value segments. Constituents are drawn from the S&P 1500® Index which combines the S&P 500® Index, S&P MidCap 400® Index and the S&P SmallCap 600® Index.* |
8 | Sector classifications are based upon the classification of the Standard & Poor's Global Industry Classification Standard. |
9 | The Fund's use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional instruments. |
* | The index is unmanaged, and it is not possible to invest directly in an index. |
Federated Max-Cap Index Fund - | Institutional Shares | Class C Shares | NA | S&P 500 |
F | F | NA | I | |
10/31/2008 | 10,000 | 10,000 | 10,000 | |
10/31/2009 | 10,978 | 10,855 | 10,980 | |
10/31/2010 | 12,776 | 12,496 | 12,794 | |
10/31/2011 | 13,793 | 13,354 | 13,829 | |
10/31/2012 | 15,826 | 15,148 | 15,932 | |
10/31/2013 | 20,179 | 19,115 | 20,261 | |
10/31/2014 | 23,596 | 22,124 | 23,760 | |
10/31/2015 | 24,745 | 22,946 | 24,995 | |
10/31/2016 | 25,808 | 23,679 | 26,123 | |
10/31/2017 | 31,887 | 28,941 | 32,296 | |
10/31/2018 | 34,170 | 30,703 | 34,668 |
■ | Total returns shown for Class C Shares include the maximum contingent deferred sales charge of 1.00%, as applicable. |
1 Year | 5 Years | 10 Years | |
Class C Shares | 5.24% | 9.94% | 11.87% |
Class R Shares | 6.31% | 10.27% | 12.23% |
Institutional Shares | 7.16% | 11.11% | 13.07% |
Service Shares | 6.85% | 10.78% | 12.73% |
S&P 500 | 7.35% | 11.34% | 13.24% |
1 | Represents a hypothetical investment of $10,000 in the Fund after deducting applicable sales charges: for Class C Shares, a 1.00% contingent deferred sales charge would be applied to any redemption less than one year from the purchase date. The Fund's performance assumes the reinvestment of all dividends and distributions. The S&P 500 has been adjusted to reflect reinvestment of dividends on securities in the index. |
2 | The S&P 500 is an unmanaged capitalization weighted index of 500 stocks designated to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. The S&P 500 is not adjusted to reflect taxes, expenses or other fees that the Securities and Exchange Commission requires to be reflected in the Fund's performance. The S&P 500 is unmanaged and, unlike the Fund, is not affected by cash flows. It is not possible to invest directly in an index. |
Sector | Percentage of Total Net Assets |
Information Technology | 20.3% |
Health Care | 14.7% |
Financials | 13.4% |
Communication Services | 9.9% |
Consumer Discretionary | 9.6% |
Industrials | 9.2% |
Consumer Staples | 7.3% |
Energy | 5.7% |
Utilities | 3.1% |
Real Estate | 2.8% |
Materials | 2.6% |
Securities Lending Collateral2 | 0.1% |
Derivative Contracts3 | (0.1)% |
Cash Equivalents4 | 1.5% |
Other Assets and Liabilities—Net5 | (0.1)% |
TOTAL6 | 100.0% |
1 | Except for Derivative Contracts, Cash Equivalents, Securities Lending Collateral and Other Assets and Liabilities, sector classifications are based upon, and individual portfolio securities are assigned to, the classifications of the Global Industry Classification Standard (GICS) except that the Manager assigns a classification to securities not classified by the GICS and to securities for which the Manager does not have access to the classification made by the GICS. |
2 | Represents cash collateral received for portfolio securities on loan that may be invested in affiliated money market funds, other money market instruments and/or repurchase agreements. |
3 | Based upon net unrealized appreciation (depreciation) or value of the derivative contracts, as applicable. Derivative contracts may consist of futures, forwards, options and swaps. The impact of a derivative contract on the Fund's performance may be larger than its unrealized appreciation (depreciation) may indicate. In many cases, the notional value or notional principal amount of a derivative contract may provide a better indication of the contract's significance to the portfolio. More complete information regarding the Fund's direct investments in derivative contracts, including unrealized appreciation (depreciation) and notional values or amounts of such contracts, can be found in the table at the end of the Portfolio of Investments included in this Report. |
4 | Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreement other than those representing securities lending collateral. |
5 | Assets, other than investments in securities and derivative contracts, less liabilities. See Statement of Assets and Liabilities. |
6 | The Fund purchases index futures contracts to efficiently manage cash flows resulting from shareholder purchases and redemptions, dividend and capital gain payments to shareholders and corporate actions while maintaining exposure to the Standard & Poor's 500 Composite Stock Price (S&P 500) Index and minimizing trading costs. Taking into consideration these open index futures contracts, the Fund's effective total exposure to the S&P 500 Index is effectively 100.0%. |
Shares | Value | ||
1 | COMMON STOCKS—98.6% | ||
Communication Services—9.9% | |||
103,115 | AT&T, Inc. | $3,163,568 | |
8,562 | Activision Blizzard, Inc. | 591,206 | |
4,216 | 2 | Alphabet, Inc., Class A Shares | 4,597,885 |
4,343 | 2 | Alphabet, Inc., Class C Shares | 4,676,412 |
5,371 | CBS Corp., Class B | 308,027 | |
14,900 | CenturyLink, Inc. | 307,536 | |
1,983 | 2 | Charter Communications, Inc. | 635,294 |
65,190 | Comcast Corp., Class A | 2,486,347 | |
4,169 | 2 | DISH Network Corp., Class A | 128,155 |
1,854 | 2,3 | Discovery, Inc., Class A | 60,051 |
5,439 | 2 | Discovery, Inc., Class C | 159,417 |
4,379 | 2 | Electronic Arts, Inc. | 398,401 |
32,853 | 2 | Facebook, Inc. | 4,986,757 |
6,026 | 2 | NetFlix, Inc. | 1,818,526 |
8,371 | News Corp. | 111,669 | |
12,272 | News Corp., Class A | 161,868 | |
3,653 | Omnicom Group, Inc. | 271,491 | |
1,335 | 2 | Take-Two Interactive Software, Inc. | 172,041 |
881 | 2 | TripAdvisor, Inc. | 45,935 |
15,206 | Twenty-First Century Fox, Inc. | 692,177 | |
7,240 | Twenty-First Century Fox, Inc., Class B | 327,103 | |
8,956 | 2 | Twitter, Inc. | 311,221 |
58,723 | Verizon Communications | 3,352,496 | |
10,426 | Viacom, Inc., Class B - New | 333,424 | |
21,216 | Walt Disney Co. | 2,436,233 | |
TOTAL | 32,533,240 | ||
Consumer Discretionary—9.6% | |||
2,066 | Advance Auto Parts, Inc. | 330,064 | |
5,742 | 2 | Amazon.com, Inc. | 9,175,773 |
3,978 | Aptiv PLC | 305,510 | |
354 | 2 | AutoZone, Inc. | 259,648 |
5,601 | Best Buy Co., Inc. | 392,966 | |
9,638 | Block (H&R), Inc. | 255,793 | |
685 | 2 | Booking Holdings, Inc. | 1,284,087 |
3,523 | BorgWarner, Inc. | 138,842 |
Shares | Value | ||
1 | COMMON STOCKS—continued | ||
Consumer Discretionary—continued | |||
267 | 2 | CarMax, Inc. | $18,132 |
6,187 | Carnival Corp. | 346,720 | |
706 | 2 | Chipotle Mexican Grill, Inc. | 324,993 |
4,071 | D.R. Horton, Inc. | 146,393 | |
1,446 | Darden Restaurants, Inc. | 154,071 | |
3,415 | Dollar General Corp. | 380,363 | |
3,747 | 2 | Dollar Tree, Inc. | 315,872 |
14,089 | 2 | eBay, Inc. | 409,004 |
379 | Expedia Group, Inc. | 47,538 | |
5,317 | Foot Locker, Inc. | 250,643 | |
58,567 | Ford Motor Co. | 559,315 | |
4,314 | Gap (The), Inc. | 117,772 | |
1,329 | Garmin Ltd. | 87,927 | |
19,407 | General Motors Co. | 710,102 | |
351 | Genuine Parts Co. | 34,370 | |
4,127 | Goodyear Tire & Rubber Co. | 86,915 | |
5,503 | Hanesbrands, Inc. | 94,432 | |
3,106 | Harley Davidson, Inc. | 118,711 | |
18 | Hasbro, Inc. | 1,651 | |
3,763 | Hilton Worldwide Holdings, Inc. | 267,813 | |
16,247 | Home Depot, Inc. | 2,857,522 | |
4,601 | Kohl's Corp. | 348,434 | |
4,372 | L Brands, Inc. | 141,740 | |
2,585 | Leggett and Platt, Inc. | 93,861 | |
4,650 | Lennar Corp., Class A | 199,857 | |
9,911 | Lowe's Cos., Inc. | 943,725 | |
7,176 | MGM Resorts Intl. | 191,456 | |
3,437 | Macy's, Inc. | 117,855 | |
3,785 | Marriott International, Inc., Class A Shares | 442,429 | |
5,285 | 2,3 | Mattel, Inc. | 71,770 |
11,121 | McDonald's Corp. | 1,967,305 | |
4,488 | 2 | Michael Kors Holdings Ltd. | 248,680 |
20,034 | Nike, Inc., Class B | 1,503,351 | |
1,369 | Nordstrom, Inc. | 90,039 | |
3,007 | 2 | Norwegian Cruise Line Holdings Ltd. | 132,519 |
1,039 | 2 | O'Reilly Automotive, Inc. | 333,259 |
834 | PVH Corp. | 100,739 | |
4,027 | Pulte Group, Inc. | 98,943 |
Shares | Value | ||
1 | COMMON STOCKS—continued | ||
Consumer Discretionary—continued | |||
521 | Ralph Lauren Corp. | $67,527 | |
5,245 | Ross Stores, Inc. | 519,255 | |
1,094 | Royal Caribbean Cruises, Ltd. | 114,575 | |
19,579 | Starbucks Corp. | 1,140,868 | |
8,498 | TJX Cos., Inc. | 933,760 | |
3,359 | Tapestry, Inc. | 142,119 | |
7,049 | Target Corp. | 589,508 | |
1,258 | Tiffany & Co. | 140,015 | |
1,819 | Tractor Supply Co. | 167,148 | |
867 | 2 | Ulta Beauty, Inc. | 238,009 |
6,959 | 2,3 | Under Armour, Inc., Class A | 153,864 |
7,467 | 2 | Under Armour, Inc., Class C | 148,071 |
4,191 | V.F. Corp. | 347,350 | |
1,223 | Wynn Resorts Ltd. | 123,034 | |
2,508 | Yum! Brands, Inc. | 226,748 | |
TOTAL | 31,550,755 | ||
Consumer Staples—7.3% | |||
23,708 | Altria Group, Inc. | 1,541,968 | |
4,416 | Archer-Daniels-Midland Co. | 208,656 | |
1,946 | Brown-Forman Corp., Class B | 90,178 | |
3,567 | Campbell Soup Co. | 133,441 | |
2,883 | Church and Dwight, Inc. | 171,164 | |
1,838 | Clorox Co. | 272,851 | |
12,702 | Colgate-Palmolive Co. | 756,404 | |
6,401 | Conagra Brands, Inc. | 227,876 | |
2,201 | Constellation Brands, Inc., Class A | 438,505 | |
6,016 | Costco Wholesale Corp. | 1,375,438 | |
2,907 | Estee Lauder Cos., Inc., Class A | 399,538 | |
12,292 | General Mills, Inc. | 538,390 | |
2,301 | Hershey Foods Corp. | 246,552 | |
3,509 | Hormel Foods Corp. | 153,133 | |
1,171 | Kellogg Co. | 76,677 | |
5,185 | Kimberly-Clark Corp. | 540,796 | |
5,722 | Kraft Heinz Co./The | 314,538 | |
10,007 | Kroger Co. | 297,808 | |
1,437 | McCormick & Co., Inc. | 206,928 | |
5,307 | Molson Coors Brewing Co., Class B | 339,648 | |
21,407 | Mondelez International, Inc. | 898,666 |
Shares | Value | ||
1 | COMMON STOCKS—continued | ||
Consumer Staples—continued | |||
8,470 | 2 | Monster Beverage Corp. | $447,640 |
20,182 | PepsiCo., Inc. | 2,268,053 | |
22,272 | Philip Morris International, Inc. | 1,961,495 | |
35,396 | Procter & Gamble Co. | 3,138,917 | |
1,916 | Smucker (J.M.) Co. | 207,541 | |
6,587 | Sysco Corp. | 469,851 | |
54,546 | The Coca-Cola Co. | 2,611,663 | |
6,948 | Tyson Foods, Inc., Class A | 416,324 | |
12,334 | Walgreens Boots Alliance, Inc. | 983,883 | |
20,387 | Walmart, Inc. | 2,044,408 | |
TOTAL | 23,778,930 | ||
Energy—5.7% | |||
6,789 | Anadarko Petroleum Corp. | 361,175 | |
1,573 | Apache Corp. | 59,507 | |
5,844 | Baker Hughes a GE Co. LLC | 155,976 | |
7,718 | Cabot Oil & Gas Corp., Class A | 187,007 | |
27,225 | Chevron Corp. | 3,039,671 | |
1,724 | Cimarex Energy Co. | 137,006 | |
4,031 | 2 | Concho Resources, Inc. | 560,672 |
18,640 | ConocoPhillips | 1,302,936 | |
7,252 | Devon Energy Corp. | 234,965 | |
8,433 | EOG Resources, Inc. | 888,332 | |
128 | EQT Corp. | 4,348 | |
59,921 | Exxon Mobil Corp. | 4,774,505 | |
12,589 | Halliburton Co. | 436,587 | |
1,013 | Helmerich & Payne, Inc. | 63,100 | |
3,038 | Hess Corp. | 174,381 | |
4,913 | HollyFrontier Corp. | 331,333 | |
28,602 | Kinder Morgan, Inc. | 486,806 | |
10,394 | Marathon Oil Corp. | 197,382 | |
8,723 | Marathon Petroleum Corp. | 614,535 | |
9,428 | National Oilwell Varco, Inc. | 346,951 | |
1,052 | Noble Energy, Inc. | 26,142 | |
6,119 | ONEOK, Inc. | 401,407 | |
10,581 | Occidental Petroleum Corp. | 709,668 | |
7,578 | Phillips 66 | 779,170 | |
2,477 | Pioneer Natural Resources, Inc. | 364,788 | |
20,020 | Schlumberger Ltd. | 1,027,226 |
Shares | Value | ||
1 | COMMON STOCKS—continued | ||
Energy—continued | |||
437 | TechnipFMC PLC | $11,493 | |
7,580 | Valero Energy Corp. | 690,462 | |
10,849 | Williams Companies, Inc. | 263,956 | |
TOTAL | 18,631,487 | ||
Financials—13.4% | |||
1,941 | Affiliated Managers Group | 220,614 | |
10,067 | Aflac, Inc. | 433,586 | |
6,569 | Allstate Corp. | 628,785 | |
9,979 | American Express Co. | 1,025,143 | |
9,290 | American International Group, Inc. | 383,584 | |
1,998 | Ameriprise Financial, Inc. | 254,226 | |
3,484 | Aon PLC | 544,131 | |
11,560 | BB&T Corp. | 568,290 | |
124,998 | Bank of America Corp. | 3,437,445 | |
26,618 | 2 | Berkshire Hathaway, Inc., Class B | 5,464,143 |
1,685 | BlackRock, Inc. | 693,243 | |
4,589 | CME Group, Inc. | 840,888 | |
6,375 | Capital One Financial Corp. | 569,287 | |
6,760 | Chubb Ltd. | 844,392 | |
2,566 | Cincinnati Financial Corp. | 201,790 | |
35,839 | Citigroup, Inc. | 2,346,021 | |
5,843 | Citizens Financial Group, Inc. | 218,236 | |
2,042 | Comerica, Inc. | 166,546 | |
7,006 | Discover Financial Services | 488,108 | |
6,740 | E*Trade Financial Corp. | 333,091 | |
15,198 | Fifth Third Bancorp | 410,194 | |
5,352 | Franklin Resources, Inc. | 163,236 | |
2,110 | Gallagher (Arthur J.) & Co. | 156,161 | |
5,082 | Goldman Sachs Group, Inc. | 1,145,330 | |
5,658 | Hartford Financial Services Group, Inc. | 256,986 | |
13,991 | Huntington Bancshares, Inc. | 200,491 | |
7,616 | Intercontinental Exchange, Inc. | 586,737 | |
7,198 | Invesco Ltd. | 156,269 | |
47,533 | JPMorgan Chase & Co. | 5,182,048 | |
5,543 | Jefferies Financial Group, Inc. | 119,008 | |
15,193 | KeyCorp | 275,905 | |
2,550 | Lincoln National Corp. | 153,484 | |
3,242 | Loews Corp. | 150,948 |
Shares | Value | ||
1 | COMMON STOCKS—continued | ||
Financials—continued | |||
2,186 | M & T Bank Corp. | $361,586 | |
1,052 | MSCI, Inc., Class A | 158,200 | |
9,140 | Marsh & McLennan Cos., Inc. | 774,615 | |
17,572 | MetLife, Inc. | 723,791 | |
1,375 | Moody's Corp. | 200,035 | |
19,240 | Morgan Stanley | 878,498 | |
1,232 | NASDAQ, Inc. | 106,827 | |
3,359 | Northern Trust Corp. | 315,981 | |
6,767 | PNC Financial Services Group | 869,492 | |
6,834 | People's United Financial, Inc. | 107,020 | |
4,133 | Principal Financial Group | 194,540 | |
7,705 | Progressive Corp. Ohio | 537,038 | |
5,992 | Prudential Financial | 561,930 | |
26 | Raymond James Financial, Inc. | 1,994 | |
24,411 | Regions Financial Corp. | 414,255 | |
3,373 | S&P Global, Inc. | 614,965 | |
217 | 2 | SVB Financial Group | 51,479 |
13,566 | Schwab (Charles) Corp. | 627,292 | |
5,607 | State Street Corp. | 385,481 | |
8,926 | SunTrust Banks, Inc. | 559,303 | |
14,749 | Synchrony Financial | 425,951 | |
3,107 | T. Rowe Price Group, Inc. | 301,348 | |
13,583 | The Bank of New York Mellon Corp. | 642,883 | |
3,504 | The Travelers Cos, Inc. | 438,455 | |
3,424 | Torchmark Corp. | 289,876 | |
18,386 | U.S. Bancorp | 961,036 | |
2,194 | Unum Group | 79,554 | |
61,552 | Wells Fargo & Co. | 3,276,413 | |
2,072 | Willis Towers Watson PLC | 296,628 | |
2,070 | Zions Bancorporation, N.A. | 97,393 | |
TOTAL | 43,872,205 | ||
Health Care—14.7% | |||
24,154 | Abbott Laboratories | 1,665,177 | |
20,910 | AbbVie, Inc. | 1,627,843 | |
1,086 | 2 | Abiomed, Inc. | 370,543 |
4,660 | Aetna, Inc. | 924,544 | |
4,969 | Agilent Technologies, Inc. | 321,941 | |
1,738 | 2 | Alexion Pharmaceuticals, Inc. | 194,778 |
Shares | Value | ||
1 | COMMON STOCKS—continued | ||
Health Care—continued | |||
936 | 2 | Align Technology, Inc. | $207,043 |
5,388 | Allergan PLC | 851,358 | |
2,539 | AmerisourceBergen Corp. | 223,432 | |
9,268 | Amgen, Inc. | 1,786,778 | |
3,571 | Anthem, Inc. | 984,060 | |
7,431 | Baxter International, Inc. | 464,512 | |
3,894 | Becton, Dickinson & Co. | 897,567 | |
2,730 | 2 | Biogen, Inc. | 830,657 |
18,660 | 2 | Boston Scientific Corp. | 674,372 |
23,116 | Bristol-Myers Squibb Co. | 1,168,283 | |
12,122 | CVS Health Corp. | 877,512 | |
4,970 | Cardinal Health, Inc. | 251,482 | |
9,823 | 2 | Celgene Corp. | 703,327 |
2,642 | 2 | Centene Corp. | 344,305 |
7,326 | 2 | Cerner Corp. | 419,633 |
3,248 | Cigna Corp. | 694,455 | |
670 | Cooper Cos., Inc. | 173,068 | |
8,978 | Danaher Corp. | 892,413 | |
1,289 | 2 | Davita, Inc. | 86,801 |
3,454 | Dentsply Sirona, Inc. | 119,612 | |
2,714 | 2 | Edwards Lifesciences Corp. | 400,586 |
9,731 | 2 | Express Scripts Holding Co. | 943,615 |
18,687 | Gilead Sciences, Inc. | 1,274,080 | |
5,104 | HCA Healthcare, Inc. | 681,537 | |
130 | 2 | Henry Schein, Inc. | 10,790 |
8,045 | 2 | Hologic, Inc. | 313,675 |
1,422 | Humana, Inc. | 455,623 | |
1,074 | 2 | IDEXX Laboratories, Inc. | 227,817 |
2,005 | 2 | IQVIA Holdings, Inc. | 246,475 |
1,969 | 2 | Illumina, Inc. | 612,654 |
2,368 | 2 | Incyte Genomics, Inc. | 153,494 |
1,537 | 2 | Intuitive Surgical, Inc. | 801,054 |
37,954 | Johnson & Johnson | 5,313,180 | |
1,349 | 2 | Laboratory Corp. of America Holdings | 216,582 |
15,073 | Lilly (Eli) & Co. | 1,634,516 | |
3,064 | McKesson Corp. | 382,265 | |
17,201 | Medtronic PLC | 1,544,994 | |
37,793 | Merck & Co., Inc. | 2,781,943 |
Shares | Value | ||
1 | COMMON STOCKS—continued | ||
Health Care—continued | |||
72 | 2 | Mettler Toledo International, Inc. | $39,371 |
6,350 | 2 | Mylan NV | 198,437 |
5,398 | 2 | Nektar Therapeutics | 208,795 |
1,299 | Perrigo Co. PLC | 91,320 | |
82,143 | Pfizer, Inc. | 3,537,078 | |
2,243 | Quest Diagnostics, Inc. | 211,089 | |
641 | 2 | Regeneron Pharmaceuticals, Inc. | 217,453 |
1,700 | ResMed, Inc. | 180,064 | |
3,362 | Stryker Corp. | 545,384 | |
5,520 | Thermo Fisher Scientific, Inc. | 1,289,748 | |
13,398 | UnitedHealth Group, Inc. | 3,501,567 | |
2,843 | 2 | Varian Medical Systems, Inc. | 339,369 |
4,555 | 2 | Vertex Pharmaceuticals, Inc. | 771,890 |
1,260 | 2 | Waters Corp. | 239,009 |
1,277 | 2 | Wellcare Health Plans, Inc. | 352,439 |
1,531 | Zimmer Biomet Holdings, Inc. | 173,906 | |
6,386 | Zoetis, Inc. | 575,698 | |
TOTAL | 48,222,993 | ||
Industrials—9.2% | |||
8,407 | 3M Co. | 1,599,516 | |
2,832 | Ametek, Inc. | 189,971 | |
953 | Allegion PLC | 81,701 | |
5,158 | American Airlines Group, Inc. | 180,943 | |
5,221 | Arconic, Inc. | 106,143 | |
7,983 | Boeing Co. | 2,832,847 | |
1,587 | C.H. Robinson Worldwide, Inc. | 141,291 | |
13,847 | CSX Corp. | 953,504 | |
7,240 | Caterpillar, Inc. | 878,357 | |
390 | Cintas Corp. | 70,929 | |
2,342 | Cummins, Inc. | 320,128 | |
3,394 | Deere & Co. | 459,683 | |
8,846 | Delta Air Lines, Inc. | 484,142 | |
1,696 | Dover Corp. | 140,497 | |
4,124 | Eaton Corp. PLC | 295,567 | |
11,050 | Emerson Electric Co. | 750,074 | |
1,444 | Equifax, Inc. | 146,479 | |
1,979 | Expeditors International Washington, Inc. | 132,949 | |
3,460 | Fastenal Co. | 177,879 |
Shares | Value | ||
1 | COMMON STOCKS—continued | ||
Industrials—continued | |||
3,454 | FedEx Corp. | $761,054 | |
1,216 | Flowserve Corp. | 55,814 | |
6,312 | Fortive Corp. | 468,666 | |
2,632 | Fortune Brands Home & Security, Inc. | 117,993 | |
3,058 | General Dynamics Corp. | 527,750 | |
124,952 | General Electric Co. | 1,262,015 | |
1,438 | Harris Corp. | 213,845 | |
11,481 | Honeywell International, Inc. | 1,662,678 | |
939 | Hunt (J.B.) Transportation Services, Inc. | 103,863 | |
470 | Huntington Ingalls Industries, Inc. | 102,686 | |
5,647 | 2 | IHS Markit Ltd. | 296,637 |
4,571 | Illinois Tool Works, Inc. | 583,122 | |
3,784 | Ingersoll-Rand PLC | 363,037 | |
1,223 | Jacobs Engineering Group, Inc. | 91,835 | |
17,650 | Johnson Controls International PLC | 564,270 | |
1,231 | Kansas City Southern Industries, Inc. | 125,513 | |
1,211 | L3 Technologies, Inc. | 229,448 | |
3,587 | Lockheed Martin Corp. | 1,054,040 | |
8,821 | Masco Corp. | 264,630 | |
5,313 | Nielsen Holdings PLC | 138,032 | |
3,748 | Norfolk Southern Corp. | 629,027 | |
2,452 | Northrop Grumman Corp. | 642,301 | |
5,407 | Paccar, Inc. | 309,334 | |
1,976 | Parker-Hannifin Corp. | 299,621 | |
3,094 | 2 | Quanta Services, Inc. | 96,533 |
4,183 | Raytheon Co. | 732,192 | |
3,529 | Republic Services, Inc. | 256,488 | |
4,192 | Robert Half International, Inc. | 253,742 | |
1,588 | Rockwell Automation, Inc. | 261,591 | |
2,556 | Rockwell Collins | 327,219 | |
1,380 | Rollins, Inc. | 81,696 | |
1,341 | Roper Technologies, Inc. | 379,369 | |
2,339 | Smith (A.O.) Corp. | 106,495 | |
608 | Snap-On, Inc. | 93,596 | |
7,053 | Southwest Airlines Co. | 346,302 | |
1,022 | Stanley Black & Decker, Inc. | 119,083 | |
1,770 | 2 | Stericycle, Inc. | 88,447 |
3,001 | Textron, Inc. | 160,944 |
Shares | Value | ||
1 | COMMON STOCKS—continued | ||
Industrials—continued | |||
1,152 | 2 | Transdigm Group, Inc. | $380,448 |
10,182 | Union Pacific Corp. | 1,488,812 | |
5,169 | 2 | United Continental Holdings, Inc. | 442,001 |
8,288 | United Parcel Service, Inc. | 883,003 | |
961 | 2 | United Rentals, Inc. | 115,387 |
9,347 | United Technologies Corp. | 1,160,991 | |
3,753 | 2 | Verisk Analytics, Inc. | 449,760 |
1,128 | W. W. Grainger, Inc. | 320,318 | |
5,922 | Waste Management, Inc. | 529,841 | |
2,426 | Xylem, Inc. | 159,097 | |
TOTAL | 30,043,166 | ||
Information Technology—20.3% | |||
9,206 | Accenture PLC | 1,451,050 | |
6,753 | 2 | Adobe, Inc. | 1,659,617 |
10,944 | 2 | Advanced Micro Devices, Inc. | 199,290 |
1,914 | 2 | Akamai Technologies, Inc. | 138,287 |
804 | Alliance Data Systems Corp. | 165,769 | |
4,584 | Amphenol Corp., Class A | 410,268 | |
5,390 | Analog Devices, Inc. | 451,197 | |
996 | 2 | Ansys, Inc. | 148,952 |
64,447 | Apple, Inc. | 14,104,880 | |
13,841 | Applied Materials, Inc. | 455,092 | |
1,362 | 2 | Arista Networks, Inc. | 313,737 |
2,846 | 2 | Autodesk, Inc. | 367,845 |
6,145 | Automatic Data Processing, Inc. | 885,372 | |
5,359 | Broadcom, Inc. | 1,197,683 | |
1,374 | Broadridge Financial Solutions | 160,676 | |
462 | CA, Inc. | 20,494 | |
4,165 | 2 | Cadence Design Systems, Inc. | 185,634 |
64,055 | Cisco Systems, Inc. | 2,930,516 | |
3,385 | Citrix Systems, Inc. | 346,861 | |
8,606 | Cognizant Technology Solutions Corp. | 594,072 | |
6,577 | Corning, Inc. | 210,135 | |
5,784 | DXC Technology Co. | 421,249 | |
5,658 | 2 | FIserv, Inc. | 448,679 |
1,376 | FLIR Systems, Inc. | 63,723 | |
677 | 2 | F5 Networks, Inc. | 118,665 |
4,938 | Fidelity National Information Services, Inc. | 514,046 |
Shares | Value | ||
1 | COMMON STOCKS—continued | ||
Information Technology—continued | |||
1,086 | 2 | FleetCor Technologies, Inc. | $217,233 |
2,022 | 2 | Fortinet, Inc. | 166,168 |
169 | 2 | Gartner Group, Inc., Class A | 24,931 |
1,951 | Global Payments, Inc. | 222,863 | |
23,595 | HP, Inc. | 569,583 | |
10,387 | Hewlett Packard Enterprise Co. | 158,402 | |
321 | 2 | IPG Photonics Corp. | 42,870 |
64,077 | Intel Corp. | 3,003,930 | |
13,060 | International Business Machines Corp. | 1,507,516 | |
4,420 | Intuit, Inc. | 932,620 | |
6,022 | Juniper Networks, Inc. | 176,264 | |
1,998 | KLA-Tencor Corp. | 182,897 | |
2,050 | Lam Research Corp. | 290,546 | |
12,667 | Mastercard, Inc., Class A | 2,503,886 | |
1,228 | Microchip Technology, Inc. | 80,778 | |
20,075 | 2 | Micron Technology, Inc. | 757,229 |
107,750 | Microsoft Corp. | 11,508,777 | |
2,006 | Motorola Solutions, Inc. | 245,855 | |
8,415 | Nvidia Corp. | 1,774,134 | |
3,237 | NetApp, Inc. | 254,072 | |
40,421 | Oracle Corp. | 1,974,162 | |
2,176 | Paychex, Inc. | 142,506 | |
14,721 | 2 | PayPal Holdings, Inc. | 1,239,361 |
3,975 | 2 | Qorvo, Inc. | 292,202 |
19,775 | Qualcomm, Inc. | 1,243,650 | |
3,422 | 2 | Red Hat, Inc. | 587,352 |
344 | Symantec Corp. | 6,244 | |
11,754 | 2 | Salesforce.com, Inc. | 1,613,119 |
2,965 | Seagate Technology | 119,282 | |
2,769 | Skyworks Solutions, Inc. | 240,238 | |
347 | 2 | Synopsys, Inc. | 31,067 |
5,273 | TE Connectivity Ltd. | 397,690 | |
13,345 | Texas Instruments, Inc. | 1,238,816 | |
2,002 | Total System Services, Inc. | 182,482 | |
1,291 | 2 | Verisign, Inc. | 184,019 |
24,741 | Visa, Inc., Class A Shares | 3,410,547 | |
6,989 | Western Digital Corp. | 301,016 | |
15,567 | Western Union Co. | 280,829 |
Shares | Value | ||
1 | COMMON STOCKS—continued | ||
Information Technology—continued | |||
3,640 | Xilinx, Inc. | $310,747 | |
TOTAL | 66,379,672 | ||
Materials—2.6% | |||
3,286 | Air Products and Chemicals, Inc. | 507,194 | |
1,166 | Avery Dennison Corp. | 105,780 | |
5,104 | Ball Corp. | 228,659 | |
6,541 | CF Industries Holdings, Inc. | 314,164 | |
32,259 | DowDuPont, Inc. | 1,739,405 | |
1,637 | Eastman Chemical Co. | 128,259 | |
3,792 | Ecolab, Inc. | 580,745 | |
32,439 | Freeport-McMoRan, Inc. | 377,914 | |
1,359 | International Flavors & Fragrances, Inc. | 196,593 | |
2,564 | International Paper Co. | 116,303 | |
7,559 | Linde Public Limited Company | 1,250,788 | |
6,151 | LyondellBasell Industries NV, Class A | 549,100 | |
1,038 | Martin Marietta Materials | 177,789 | |
10,362 | Mosaic Co./The | 320,600 | |
8,558 | Newmont Mining Corp. | 264,613 | |
3,907 | Nucor Corp. | 230,982 | |
1,903 | PPG Industries, Inc. | 199,986 | |
1,622 | Packaging Corp. of America | 148,916 | |
2,026 | Sealed Air Corp. | 65,561 | |
1,083 | Sherwin-Williams Co. | 426,128 | |
2,161 | Vulcan Materials Co. | 218,564 | |
4,197 | WestRock Co. | 180,345 | |
TOTAL | 8,328,388 | ||
Real Estate—2.8% | |||
110 | Alexandria Real Estate Equities, Inc. | 13,445 | |
6,430 | American Tower Corp. | 1,001,858 | |
2,994 | Apartment Investment & Management Co., Class A | 128,862 | |
2,124 | Avalonbay Communities, Inc. | 372,507 | |
3,553 | Boston Properties, Inc. | 429,060 | |
3,682 | 2 | CBRE Group, Inc. | 148,348 |
4,285 | Crown Castle International Corp. | 465,951 | |
1,471 | Digital Realty Trust, Inc. | 151,895 | |
1,196 | Equinix, Inc. | 452,973 | |
7,735 | Equity Residential Properties Trust | 502,466 | |
989 | Essex Property Trust, Inc. | 248,021 |
Shares | Value | ||
1 | COMMON STOCKS—continued | ||
Real Estate—continued | |||
3,766 | Extra Space Storage, Inc. | $339,166 | |
762 | Federal Realty Investment Trust | 94,526 | |
7,922 | HCP, Inc. | 218,251 | |
18,612 | Host Hotels & Resorts, Inc. | 355,675 | |
7,093 | Kimco Realty Corp. | 114,126 | |
874 | Macerich Co. (The) | 45,116 | |
1,714 | Mid-American Apartment Communities, Inc. | 167,475 | |
8,333 | ProLogis, Inc. | 537,229 | |
1,937 | Public Storage | 397,995 | |
4,406 | Realty Income Corp. | 265,550 | |
5,041 | Regency Centers Corp. | 319,398 | |
2,695 | 2 | SBA Communications Corp. | 437,048 |
1,000 | SL Green Realty Corp. | 91,260 | |
4,398 | Simon Property Group, Inc. | 807,121 | |
3,430 | UDR, Inc. | 134,422 | |
5,572 | Ventas, Inc. | 323,399 | |
2,551 | Vornado Realty Trust | 173,672 | |
2,580 | Welltower, Inc., REIT | 170,461 | |
11,682 | Weyerhaeuser Co. | 311,092 | |
TOTAL | 9,218,368 | ||
Utilities—3.1% | |||
21,880 | AES Corp. | 319,010 | |
3,241 | Ameren Corp. | 209,304 | |
4,485 | American Electric Power Co., Inc. | 329,020 | |
2,536 | American Water Works Co., Inc. | 224,512 | |
4,480 | CMS Energy Corp. | 221,850 | |
7,147 | CenterPoint Energy, Inc. | 193,040 | |
4,780 | Consolidated Edison Co. | 363,280 | |
2,778 | DTE Energy Co. | 312,247 | |
9,610 | Dominion Energy, Inc. | 686,346 | |
10,230 | Duke Energy Corp. | 845,305 | |
5,092 | Edison International | 353,334 | |
2,259 | Entergy Corp. | 189,643 | |
6,935 | Evergy, Inc. | 388,291 | |
4,991 | EverSource Energy | 315,731 | |
17,581 | Exelon Corp. | 770,224 | |
2,119 | FirstEnergy Corp. | 78,996 | |
9,114 | NRG Energy, Inc. | 329,836 |
Shares | Value | ||
1 | COMMON STOCKS—continued | ||
Utilities—continued | |||
6,795 | NextEra Energy, Inc. | $1,172,137 | |
6,660 | 2 | P G & E Corp. | 311,755 |
3,954 | PPL Corp. | 120,202 | |
1,984 | Pinnacle West Capital Corp. | 163,184 | |
6,566 | Public Service Enterprises Group, Inc. | 350,821 | |
6,144 | SCANA Corp. | 246,067 | |
3,990 | Sempra Energy | 439,379 | |
14,878 | Southern Co. | 669,956 | |
1,848 | WEC Energy Group, Inc. | 126,403 | |
7,836 | Xcel Energy, Inc. | 384,042 | |
TOTAL | 10,113,915 | ||
TOTAL COMMON STOCKS (IDENTIFIED COST $93,839,124) | 322,673,119 | ||
INVESTMENT COMPANIES—1.6% | |||
294,759 | Federated Government Obligations Fund, Premier Shares, 2.08%4 | 294,759 | |
4,962,155 | Federated Institutional Prime Value Obligations Fund, Institutional Shares, 2.31%4 | 4,962,651 | |
TOTAL INVESTMENT COMPANIES (IDENTIFIED COST $5,257,273) | 5,257,410 | ||
TOTAL INVESTMENT IN SECURITIES—100.2% (IDENTIFIED COST $99,096,397)5 | 327,930,529 | ||
OTHER ASSETS AND LIABILITIES - NET—(0.2)%6 | (606,887) | ||
TOTAL NET ASSETS—100% | $327,323,642 |
Description | Number of Contracts | Notional Value | Expiration Date | Value and Unrealized Depreciation |
2S&P 500 Index Long Futures | 7 | $4,744,425 | December 2018 | $(393,598) |
Federated Government Obligations Fund, Premier Shares* | Federated Institutional Prime Value Obligations Fund, Institutional Shares | Total of Affiliated Transactions | |
Balance of Shares Held 10/31/2017 | 236,380 | 9,041,083 | 9,277,463 |
Purchases/Additions | 78,881,990 | 223,402,141 | 302,284,131 |
Sales/Reductions | (78,823,611) | (227,481,069) | (306,304,680) |
Balance of Shares Held 10/31/2018 | 294,759 | 4,962,155 | 5,256,914 |
Value | $294,759 | $4,962,651 | $5,257,410 |
Change in Unrealized Appreciation/Depreciation | N/A | $137 | $137 |
Net Realized Gain/(Loss) | N/A | $(3,017) | $(3,017) |
Dividend Income | $28,312 | $235,611 | $263,923 |
* | All or a portion of the balance/activity for the fund relates to cash collateral received on securities lending transactions. |
1 | The Fund purchases index futures contracts to efficiently manage cash flows resulting from shareholder purchases and redemptions, dividend and capital gain payments to shareholders and corporate actions while maintaining exposure to the S&P 500 Index and minimizing trading costs. The underlying face amount, at value, of open index futures contracts is $4,744,425 at October 31, 2018, which represents 1.4% of total net assets. Taking into consideration these open index futures contracts, the Fund's effective total exposure to the S&P 500 Index is 100.0%. |
2 | Non-income-producing security. |
3 | All or a portion of these securities are temporarily on loan to unaffiliated broker/dealers. |
4 | 7-day net yield. |
5 | The cost of investments for federal tax purposes amounts to $103,001,633. |
6 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
REIT | —Real Estate Investment Trust |
Year Ended October 31 | 2018 | 2017 | 2016 | 2015 | 2014 |
Net Asset Value, Beginning of Period | $15.09 | $14.54 | $16.06 | $17.27 | $16.34 |
Income From Investment Operations: | |||||
Net investment income | 0.061 | 0.09 | 0.11 | 0.11 | 0.09 |
Net realized and unrealized gain | 0.75 | 2.75 | 0.32 | 0.51 | 2.29 |
TOTAL FROM INVESTMENT OPERATIONS | 0.81 | 2.84 | 0.43 | 0.62 | 2.38 |
Less Distributions: | |||||
Distributions from net investment income | (0.07) | (0.09) | (0.11) | (0.11) | (0.09) |
Distributions from net realized gain | (3.09) | (2.20) | (1.84) | (1.72) | (1.36) |
TOTAL DISTRIBUTIONS | (3.16) | (2.29) | (1.95) | (1.83) | (1.45) |
Net Asset Value, End of Period | $12.74 | $15.09 | $14.54 | $16.06 | $17.27 |
Total Return2 | 6.09% | 22.22% | 3.19% | 3.71% | 15.74% |
Ratios to Average Net Assets: | |||||
Net expenses | 1.41% | 1.42% | 1.42% | 1.42% | 1.42% |
Net investment income | 0.48% | 0.60% | 0.75% | 0.61% | 0.56% |
Expense waiver/reimbursement3 | 0.06% | 0.05% | 0.05% | 0.04% | 0.04% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $37,324 | $41,904 | $36,956 | $40,273 | $38,684 |
Portfolio turnover | 30% | 31% | 31% | 31% | 28% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
3 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. |
Year Ended October 31 | 2018 | 2017 | 2016 | 2015 | 2014 |
Net Asset Value, Beginning of Period | $15.27 | $14.68 | $16.19 | $17.39 | $16.45 |
Income From Investment Operations: | |||||
Net investment income | 0.101 | 0.12 | 0.15 | 0.16 | 0.13 |
Net realized and unrealized gain | 0.74 | 2.80 | 0.34 | 0.52 | 2.31 |
TOTAL FROM INVESTMENT OPERATIONS | 0.84 | 2.92 | 0.49 | 0.68 | 2.44 |
Less Distributions: | |||||
Distributions from net investment income | (0.10) | (0.13) | (0.16) | (0.16) | (0.14) |
Distributions from net realized gain | (3.09) | (2.20) | (1.84) | (1.72) | (1.36) |
TOTAL DISTRIBUTIONS | (3.19) | (2.33) | (2.00) | (1.88) | (1.50) |
Net Asset Value, End of Period | $12.92 | $15.27 | $14.68 | $16.19 | $17.39 |
Total Return2 | 6.31% | 22.65% | 3.56% | 4.05% | 16.05% |
Ratios to Average Net Assets: | |||||
Net expenses | 1.11% | 1.11% | 1.10% | 1.10% | 1.10% |
Net investment income | 0.79% | 0.92% | 1.07% | 0.93% | 0.87% |
Expense waiver/reimbursement3 | 0.07% | 0.07% | 0.08% | 0.06% | 0.04% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $41,765 | $47,867 | $47,998 | $45,190 | $43,501 |
Portfolio turnover | 30% | 31% | 31% | 31% | 28% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value. |
3 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. |
Year Ended October 31 | 2018 | 2017 | 2016 | 2015 | 2014 |
Net Asset Value, Beginning of Period | $15.42 | $14.80 | $16.31 | $17.50 | $16.54 |
Income From Investment Operations: | |||||
Net investment income | 0.211 | 0.25 | 0.28 | 0.27 | 0.27 |
Net realized and unrealized gain | 0.75 | 2.80 | 0.31 | 0.54 | 2.31 |
TOTAL FROM INVESTMENT OPERATIONS | 0.96 | 3.05 | 0.59 | 0.81 | 2.58 |
Less Distributions: | |||||
Distributions from net investment income | (0.20) | (0.23) | (0.26) | (0.28) | (0.26) |
Distributions from net realized gain | (3.09) | (2.20) | (1.84) | (1.72) | (1.36) |
TOTAL DISTRIBUTIONS | (3.29) | (2.43) | (2.10) | (2.00) | (1.62) |
Net Asset Value, End of Period | $13.09 | $15.42 | $14.80 | $16.31 | $17.50 |
Total Return2 | 7.16% | 23.55% | 4.30% | 4.87% | 16.94% |
Ratios to Average Net Assets: | |||||
Net expenses | 0.36% | 0.36% | 0.35% | 0.35% | 0.35% |
Net investment income | 1.56% | 1.67% | 1.82% | 1.68% | 1.62% |
Expense waiver/reimbursement3 | 0.11% | 0.08% | 0.09% | 0.07% | 0.07% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $137,792 | $201,836 | $208,577 | $257,742 | $266,292 |
Portfolio turnover | 30% | 31% | 31% | 31% | 28% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value. |
3 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. |
Year Ended October 31 | 2018 | 2017 | 2016 | 2015 | 2014 |
Net Asset Value, Beginning of Period | $15.28 | $14.69 | $16.20 | $17.40 | $16.45 |
Income From Investment Operations: | |||||
Net investment income | 0.161 | 0.17 | 0.21 | 0.21 | 0.22 |
Net realized and unrealized gain | 0.75 | 2.81 | 0.34 | 0.54 | 2.30 |
TOTAL FROM INVESTMENT OPERATIONS | 0.91 | 2.98 | 0.55 | 0.75 | 2.52 |
Less Distributions: | |||||
Distributions from net investment income | (0.16) | (0.19) | (0.22) | (0.23) | (0.21) |
Distributions from net realized gain | (3.09) | (2.20) | (1.84) | (1.72) | (1.36) |
TOTAL DISTRIBUTIONS | (3.25) | (2.39) | (2.06) | (1.95) | (1.57) |
Net Asset Value, End of Period | $12.94 | $15.28 | $14.69 | $16.20 | $17.40 |
Total Return2 | 6.85% | 23.14% | 4.01% | 4.52% | 16.62% |
Ratios to Average Net Assets: | |||||
Net expenses | 0.66% | 0.66% | 0.65% | 0.65% | 0.65% |
Net investment income | 1.24% | 1.39% | 1.52% | 1.38% | 1.32% |
Expense waiver/reimbursement3 | 0.35% | 0.35% | 0.36% | 0.35% | 0.35% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $110,443 | $144,226 | $180,503 | $218,171 | $270,634 |
Portfolio turnover | 30% | 31% | 31% | 31% | 28% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value. |
3 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. |
Assets: | ||
Investment in securities, at value including $279,729 of securities loaned and including $5,257,410 of investment in affiliated holdings (identified cost $99,096,397) | $327,930,529 | |
Restricted cash (Note 2) | 210,000 | |
Income receivable | 290,699 | |
Income receivable from affiliated holdings | 25,609 | |
Receivable for investments sold | 62,895 | |
Receivable for shares sold | 184,282 | |
Receivable for daily variation margin on futures contracts | 52,460 | |
TOTAL ASSETS | 328,756,474 | |
Liabilities: | ||
Payable for investments purchased | $571,638 | |
Payable for shares redeemed | 311,040 | |
Bank overdraft | 1,933 | |
Payable for collateral due to broker for securities lending | 294,759 | |
Payable for investment adviser fee (Note 5) | 1,981 | |
Payable for transfer agent fee | 82,600 | |
Payable for distribution services fee (Note 5) | 48,310 | |
Payable for other service fees (Notes 2 and 5) | 44,945 | |
Payable for portfolio accounting fees | 40,617 | |
Accrued expenses (Note 5) | 35,009 | |
TOTAL LIABILITIES | 1,432,832 | |
Net assets for 25,226,178 shares outstanding | $327,323,642 | |
Net Assets Consist of: | ||
Paid-in capital | $5,775,416 | |
Total distributable earnings | 321,548,226 | |
TOTAL NET ASSETS | $327,323,642 |
Net Asset Value, Offering Price and Redemption Proceeds Per Share | ||
Class C Shares: | ||
Net asset value per share ($37,323,890 ÷ 2,930,615 shares outstanding), no par value, unlimited shares authorized | $12.74 | |
Offering price per share | $12.74 | |
Redemption proceeds per share (99.00/100 of $12.74) | $12.61 | |
Class R Shares: | ||
Net asset value per share ($41,765,237 ÷ 3,231,676 shares outstanding), no par value, unlimited shares authorized | $12.92 | |
Offering price per share | $12.92 | |
Redemption proceeds per share | $12.92 | |
Institutional Shares: | ||
Net asset value per share ($137,791,640 ÷ 10,529,227 shares outstanding), no par value, unlimited shares authorized | $13.09 | |
Offering price per share | $13.09 | |
Redemption proceeds per share | $13.09 | |
Service Shares: | ||
Net asset value per share ($110,442,875 ÷ 8,534,660 shares outstanding), no par value, unlimited shares authorized | $12.94 | |
Offering price per share | $12.94 | |
Redemption proceeds per share | $12.94 |
Investment Income: | |||
Dividends (including $235,611 received from affiliated holdings*) | $7,426,706 | ||
Net income on securities loaned (includes $28,312 received from affiliated holdings related to cash collateral balances*) | 8,308 | ||
Interest | 3,670 | ||
TOTAL INCOME | 7,438,684 | ||
Expenses: | |||
Administrative fee (Note 5) | $1,171,769 | ||
Custodian fees | 49,041 | ||
Transfer agent fee (Note 2) | 406,789 | ||
Directors'/Trustees' fees (Note 5) | 7,350 | ||
Auditing fees | 26,700 | ||
Legal fees | 14,819 | ||
Portfolio accounting fees | 115,837 | ||
Distribution services fee (Note 5) | 928,140 | ||
Other service fees (Notes 2 and 5) | 423,051 | ||
Share registration costs | 61,725 | ||
Printing and postage | 26,761 | ||
Miscellaneous (Note 5) | 39,377 | ||
TOTAL EXPENSES | 3,271,359 | ||
Waivers and Reimbursements: | |||
Waiver/reimbursement of investment adviser fee (Note 5) | $(243,855) | ||
Waiver/reimbursement of other operating expenses (Notes 2 and 5) | (455,015) | ||
TOTAL WAIVERS AND REIMBURSEMENTS | (698,870) | ||
Net expenses | 2,572,489 | ||
Net investment income | 4,866,195 | ||
Realized and Unrealized Gain (Loss) on Investments and Futures Contracts: | |||
Net realized gain on investments (including net realized loss of $(3,017) on sales of investments in an affiliated holdings*) | 95,922,194 | ||
Net realized gain on futures contracts | 1,600,661 | ||
Net change in unrealized appreciation of investments (including net change in unrealized appreciation of $137 on investments in affiliated holdings*) | (72,337,657) | ||
Net change in unrealized appreciation of futures contracts | (597,640) | ||
Net realized and unrealized gain on investments and futures contracts | 24,587,558 | ||
Change in net assets resulting from operations | $29,453,753 |
* | See information listed after the Fund's Portfolio of Investments. |
Year Ended October 31 | 2018 | 2017 |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income | $4,866,195 | $6,507,681 |
Net realized gain | 97,522,855 | 85,741,629 |
Net change in unrealized appreciation/depreciation | (72,935,297) | 5,133,417 |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 29,453,753 | 97,382,727 |
Distributions to Shareholders (Note 2): | ||
Class C Shares | (8,697,887) | (5,832,449) |
Class R Shares | (9,941,025) | (7,461,326) |
Institutional Shares | (42,057,608) | (33,821,637) |
Service Shares | (29,040,886) | (27,961,930) |
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | (89,737,406) | (75,077,342) |
Share Transactions: | ||
Proceeds from sale of shares | 67,012,997 | 139,201,893 |
Proceeds from shares issued in connection with the tax-free transfer of assets from First Financial Trust and Asset Management Co (FFTAM) Common Trust Fund | — | 7,208,911 |
Net asset value of shares issued to shareholders in payment of distributions declared | 85,243,020 | 70,146,532 |
Cost of shares redeemed | (200,481,482) | (277,063,258) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | (48,225,465) | (60,505,922) |
Change in net assets | (108,509,118) | (38,200,537) |
Net Assets: | ||
Beginning of period | 435,832,760 | 474,033,297 |
End of period | $327,323,642 | $435,832,760 |
Shares of the Fund Issued | FFTAM Net Assets Received | Unrealized Appreciation1 | Net Assets of the Fund Immediately Prior to Combination | Net Assets of the Fund Immediately After Combination |
503,416 | $7,208,911 | $2,257,239 | $476,825,299 | $484,034,210 |
1 | Unrealized Appreciation is included in the Net Assets Received amount shown above. |
Net investment income (loss)* | $66,858 |
Net realized and unrealized gain on investments | 2,257,239 |
Net increase in net assets resulting from operations | 2,324,097 |
* | Net investment income includes $6,300 of pro forma eliminated expenses. |
■ | 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. |
■ | Fixed-income securities are fair valued using price evaluations provided by a pricing service approved by the Fund's Board of Trustees (the “Trustees”). |
■ | Shares of other mutual funds or non-exchange-traded investment companies are valued based upon their reported NAVs. |
■ | 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. |
■ | 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. |
Transfer Agent Fees Incurred | Transfer Agent Fees Reimbursed | |
Class C Shares | $36,080 | $— |
Class R Shares | 137,171 | (3,992) |
Institutional Shares | 141,991 | (82,835) |
Service Shares | 91,547 | (47,746) |
TOTAL | $406,789 | $(134,573) |
Net investment income | |
Class C Shares | $(257,275) |
Class R Shares | (458,750) |
Institutional Shares | (3,496,986) |
Service Shares | (2,212,323) |
Net realized gain | |
Class C Shares | $(5,575,174) |
Class R Shares | (7,002,576) |
Institutional Shares | (30,324,651) |
Service Shares | (25,749,607) |
Other Service Fees Incurred | |
Class C Shares | $102,609 |
Service Shares | 320,442 |
TOTAL | $423,051 |
Market Value of Securities Loaned | Market Value of Collateral |
$279,729 | $294,759 |
Fair Value of Derivative Instruments | ||
Asset | ||
Statement of Assets and Liabilities Location | Fair Value | |
Derivatives not accounted for as hedging instruments under ASC Topic 815 | ||
Equity contracts | Receivable for daily variation margin | $(393,598)* |
* | Includes cumulative depreciation of futures contracts as reported in the footnotes to the Portfolio of Investments. Only the current day's variation margin is reported within the Statement of Assets and Liabilities. |
Amount of Realized Gain or (Loss) on Derivatives Recognized in Income | |
Futures Contracts | |
Equity contracts | 1,600,661 |
Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income | |
Futures Contracts | |
Equity contracts | (597,640) |
Year Ended October 31 | 2018 | 2017 | ||
Class C Shares: | Shares | Amount | Shares | Amount |
Shares sold | 496,332 | $6,437,756 | 673,057 | $9,395,628 |
Shares issued to shareholders in payment of distributions declared | 662,653 | 8,182,670 | 422,085 | 5,467,279 |
Shares redeemed | (1,004,914) | (13,037,505) | (859,721) | (12,043,207) |
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS | 154,071 | $1,582,921 | 235,421 | $2,819,700 |
Year Ended October 31 | 2018 | 2017 | ||
Class R Shares: | Shares | Amount | Shares | Amount |
Shares sold | 764,486 | $10,050,608 | 871,972 | $12,215,613 |
Shares issued to shareholders in payment of distributions declared | 750,323 | 9,405,085 | 538,500 | 7,064,402 |
Shares redeemed | (1,418,383) | (18,664,398) | (1,544,038) | (21,871,691) |
NET CHANGE RESULTING FROM CLASS R SHARE TRANSACTIONS | 96,426 | $791,295 | (133,566) | $(2,591,676) |
Year Ended October 31 | 2018 | 2017 | ||
Institutional Shares: | Shares | Amount | Shares | Amount |
Shares sold | 2,615,564 | $37,400,961 | 6,704,054 | $97,044,780 |
Proceeds from shares issued in connection with the tax-free transfer of assets from First Financial Trust and Asset Management Co (FFTAM) Common Trust Fund | — | — | 503,416 | 7,208,911 |
Shares issued to shareholders in payment of distributions declared | 3,071,318 | 39,050,085 | 2,288,211 | 30,433,852 |
Shares redeemed | (8,249,556) | (112,742,563) | (10,496,156) | (152,219,908) |
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS | (2,562,674) | $(36,291,517) | (1,000,475) | $(17,532,365) |
Year Ended October 31 | 2018 | 2017 | ||
Service Shares: | Shares | Amount | Shares | Amount |
Shares sold | 989,046 | $13,123,672 | 1,451,496 | $20,545,872 |
Shares issued to shareholders in payment of distributions declared | 2,276,922 | 28,605,180 | 2,066,666 | 27,180,999 |
Shares redeemed | (4,169,255) | (56,037,016) | (6,366,723) | (90,928,452) |
NET CHANGE RESULTING FROM SERVICE SHARE TRANSACTIONS | (903,287) | $(14,308,164) | (2,848,561) | $(43,201,581) |
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | (3,215,464) | $(48,225,465) | (3,747,181) | $(60,505,922) |
Increase (Decrease) | ||
Paid-In Capital | Undistributed Net Investment Income (Loss) | Accumulated Net Realized Gain (Loss) |
$(1,853) | $(104,667) | $106,520 |
2018 | 2017 | |
Ordinary income1 | $10,425,596 | $6,975,097 |
Long-term capital gains | $79,311,810 | $68,102,245 |
1 | For tax purposes, short-term capital gain distributions are considered ordinary income distributions. |
Undistributed ordinary income2 | $3,991,545 |
Net unrealized appreciation | $224,928,896 |
Undistributed long-term capital gains | $92,627,785 |
2 | For tax purposes, short-term capital gains are considered ordinary income in determining distributable earnings. |
Share Class Name | Percentage of Average Daily Net Assets of Class |
Class C Shares | 0.75% |
Class R Shares | 0.50% |
Service Shares | 0.30% |
Distribution Services Fees Incurred | Distribution Services Fees Waived | |
Class C Shares | $307,942 | $— |
Class R Shares | 234,426 | — |
Service Shares | 385,772 | (320,442) |
TOTAL | $928,140 | $(320,442) |
Purchases | $113,760,640 |
Sales | $240,550,720 |
December 21, 2018
Beginning Account Value 5/1/2018 | Ending Account Value 10/31/2018 | Expenses Paid During Period1 | |
Actual: | |||
Class C Shares | $1,000 | $1,028.90 | $7.21 |
Class R Shares | $1,000 | $1,029.90 | $5.68 |
Institutional Shares | $1,000 | $1,034.20 | $1.85 |
Service Shares | $1,000 | $1,032.20 | $3.38 |
Hypothetical (assuming a 5% return before expenses): | |||
Class C Shares | $1,000 | $1,018.10 | $7.17 |
Class R Shares | $1,000 | $1,019.60 | $5.65 |
Institutional Shares | $1,000 | $1,023.40 | $1.84 |
Service Shares | $1,000 | $1,021.90 | $3.36 |
1 | Expenses are equal to the Fund's annualized net expense ratios, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half-year period). The annualized net expense ratios are as follows: |
Class C Shares | 1.41% |
Class R Shares | 1.11% |
Institutional Shares | 0.36% |
Service Shares | 0.66% |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s) |
J. Christopher Donahue* Birth Date: April 11, 1949 President and Trustee Indefinite Term Began serving: January 1990 | Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Fund Family; Director or Trustee of the Funds in the Federated Fund Family; President, Chief Executive Officer and Director, Federated Investors, Inc.; Chairman and Trustee, Federated Investment Management Company; Trustee, Federated Investment Counseling; Chairman and Director, Federated Global Investment Management Corp.; Chairman and Trustee, Federated Equity Management Company of Pennsylvania; Trustee, Federated Shareholder Services Company; Director, Federated Services Company. Previous Positions: President, Federated Investment Counseling; President and Chief Executive Officer, Federated Investment Management Company, Federated Global Investment Management Corp. and Passport Research, Ltd; Chairman, Passport Research, Ltd. |
John B. Fisher* Birth Date: May 16, 1956 Trustee Indefinite Term Began serving: May 2016 | Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Fund Family; Director or Trustee of certain of the Funds in the Federated Fund Family; Vice President, Federated Investors, Inc.; President, Director/Trustee and CEO, Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company; President of some of the Funds in the Federated Fund Complex and Director, Federated Investors Trust Company. Previous Positions: President and Director of the Institutional Sales Division of Federated Securities Corp.; President and Director of Federated Investment Counseling; President and CEO of Passport Research, Ltd.; Director, Edgewood Securities Corp.; Director, Federated Services Company; Director, Federated Investors, Inc.; Chairman and Director, Southpointe Distribution Services, Inc. and President, Technology, Federated Services Company. |
* | Reasons for “interested” status: J. Christopher Donahue and John B. Fisher are interested due to their beneficial ownership of shares of Federated Investors, Inc. and due to positions they hold with Federated and its subsidiaries. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
John T. Collins Birth Date: January 24, 1947 Trustee Indefinite Term Began serving: October 2013 | Principal Occupations: Director or Trustee of the Federated Fund Family; formerly, Chairman and CEO, The Collins Group, Inc. (a private equity firm) (Retired). Other Directorships Held: Director, Current Chair of the Compensation Committee, KLX Corp. Qualifications: Mr. Collins has served in several business and financial management roles and directorship positions throughout his career. Mr. Collins previously served as Chairman and CEO, The Collins Group, Inc. (a private equity firm). Mr. Collins serves as Chairman Emeriti, Bentley University. Mr. Collins previously served as Director and Audit Committee Member, Bank of America Corp.; Director, FleetBoston Financial Corp.; and Director, Beth Israel Deaconess Medical Center (Harvard University Affiliate Hospital). |
G. Thomas Hough Birth Date: February 28, 1955 Trustee Indefinite Term Began serving: August 2015 | Principal Occupations: Director or Trustee of the Federated Fund Family; formerly, Vice Chair, Ernst & Young LLP (public accounting firm) (Retired). Other Directorships Held: Director, Chair of the Audit Committee, Governance Committee, Publix Super Markets, Inc.; Director, Member of the Audit Committee and Technology Committee of Equifax, Inc. Qualifications: Mr. Hough has served in accounting, business management and directorship positions throughout his career. Mr. Hough most recently held the position of Americas Vice Chair of Assurance with Ernst & Young LLP (public accounting firm). Mr. Hough is an Executive Committee member of the United States Golf Association, he serves on the President's Cabinet and Business School Board of Visitors for the University of Alabama and is on the Business School Board of Visitors for Wake Forest University. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
Maureen Lally-Green Birth Date: July 5, 1949 Trustee Indefinite Term Began serving: August 2009 | Principal Occupations: Director or Trustee of the Federated Fund Family; Dean of the Duquesne University School of Law; Professor and Adjunct Professor of Law, Duquesne University School of Law; formerly, Interim Dean of the Duquesne University School of Law; formerly, Associate General Secretary and Director, Office of Church Relations, Diocese of Pittsburgh. Other Directorships Held: Director, CNX Resources Corporation (formerly known as CONSOL Energy Inc.). Qualifications: Judge Lally-Green has served in various legal and business roles and directorship positions throughout her career. Judge Lally-Green previously served as a member of the Superior Court of Pennsylvania and as a Professor of Law, Duquesne University School of Law. Judge Lally-Green also currently holds the positions on not for profit or for profit boards of directors as follows: Director and Chair, UPMC Mercy Hospital; Director and Vice Chair, Our Campaign for the Church Alive!, Inc.; Director, Saint Vincent College; Member, Pennsylvania State Board of Education (public); and Director CNX Resources Corporation (formerly known as CONSOL Energy Inc.). Judge Lally-Green has held the positions of: Director, Auberle; Director, Epilepsy Foundation of Western and Central Pennsylvania; Director, Ireland Institute of Pittsburgh; Director, Saint Thomas More Society; Director and Chair, Catholic High Schools of the Diocese of Pittsburgh, Inc.; Director, Pennsylvania Bar Institute; Regent, St. Vincent Seminary; and Director and Chair, North Catholic High School, Inc. |
Charles F. Mansfield, Jr. Birth Date: April 10, 1945 Trustee Indefinite Term Began serving: January 1999 | Principal Occupations: Director or Trustee of the Federated Fund Family; Management Consultant. Other Directorships Held: None. Qualifications: Mr. Mansfield has served as a Marine Corps officer and in several banking, business management, educational roles and directorship positions throughout his long career. He remains active as a Management Consultant. |
Thomas M. O'Neill Birth Date: June 14, 1951 Trustee Indefinite Term Began serving: August 2006 | Principal Occupations: Director or Trustee, Chair of the Audit Committee of the Federated Fund Family; Sole Proprietor, Navigator Management Company (investment and strategic consulting). Other Directorships Held: None. Qualifications: Mr. O'Neill has served in several business, mutual fund and financial management roles and directorship positions throughout his career. Mr. O'Neill serves as Director, Medicines for Humanity and Director, The Golisano Children's Museum of Naples, Florida. Mr. O'Neill previously served as Chief Executive Officer and President, Managing Director and Chief Investment Officer, Fleet Investment Advisors; President and Chief Executive Officer, Aeltus Investment Management, Inc.; General Partner, Hellman, Jordan Management Co., Boston, MA; Chief Investment Officer, The Putnam Companies, Boston, MA; Credit Analyst and Lending Officer, Fleet Bank; Director and Consultant, EZE Castle Software (investment order management software); and Director, Midway Pacific (lumber). |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
P. Jerome Richey Birth Date: February 23, 1949 Trustee Indefinite Term Began serving: October 2013 | Principal Occupations: Director or Trustee of the Federated Fund Family; Management Consultant; formerly, Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh and Executive Vice President and Chief Legal Officer, CNX Resources Corporation (formerly known as CONSOL Energy Inc.). Other Directorships Held: None. Qualifications: Mr. Richey has served in several business and legal management roles and directorship positions throughout his career. Mr. Richey most recently held the positions of Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh. Mr. Richey previously served as Chairman of the Board, Epilepsy Foundation of Western Pennsylvania and Chairman of the Board, World Affairs Council of Pittsburgh. Mr. Richey previously served as Chief Legal Officer and Executive Vice President, CNX Resources Corporation (formerly known as CONSOL Energy Inc.); and Board Member, Ethics Counsel and Shareholder, Buchanan Ingersoll & Rooney PC (a law firm). |
John S. Walsh Birth Date: November 28, 1957 Trustee Indefinite Term Began serving: January 1999 | Principal Occupations: Director or Trustee, and Chair of the Board of Directors or Trustees, of the Federated Fund Family; President and Director, Heat Wagon, Inc. (manufacturer of construction temporary heaters); President and Director, Manufacturers Products, Inc. (distributor of portable construction heaters); President, Portable Heater Parts, a division of Manufacturers Products, Inc. Other Directorships Held: None. Qualifications: Mr. Walsh has served in several business management roles and directorship positions throughout his career. Mr. Walsh previously served as Vice President, Walsh & Kelly, Inc. (paving contractors). |
Name Birth Date Address Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
Lori A. Hensler Birth Date: January 6, 1967 TREASURER Officer since: April 2013 | Principal Occupations: Principal Financial Officer and Treasurer of the Federated Fund Family; Senior Vice President, Federated Administrative Services; Financial and Operations Principal for Federated Securities Corp. and Edgewood Services, Inc.; and Assistant Treasurer, Federated Investors Trust Company. Ms. Hensler has received the Certified Public Accountant designation. Previous Positions: Controller of Federated Investors, Inc.; Senior Vice President and Assistant Treasurer, Federated Investors Management Company; Treasurer, Federated Investors Trust Company; Assistant Treasurer, Federated Administrative Services, Federated Administrative Services, Inc., Federated Securities Corp., Edgewood Services, Inc., Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company, Passport Research, Ltd., and Federated MDTA, LLC; Financial and Operations Principal for Federated Securities Corp., Edgewood Services, Inc. and Southpointe Distribution Services, Inc. |
Peter J. Germain Birth Date: September 3, 1959 CHIEF LEGAL OFFICER, SECRETARY and EXECUTIVE VICE PRESIDENT Officer since: January 2005 | Principal Occupations: Mr. Germain is Chief Legal Officer, Secretary and Executive Vice President of the Federated Fund Family. He is General Counsel, Chief Legal Officer, Secretary and Executive Vice President, Federated Investors, Inc.; Trustee and Senior Vice President, Federated Investors Management Company; Trustee and President, Federated Administrative Services; Director and President, Federated Administrative Services, Inc.; Director and Vice President, Federated Securities Corp.; Director and Secretary, Federated Private Asset Management, Inc.; Secretary, Federated Shareholder Services Company; and Secretary, Retirement Plan Service Company of America. Mr. Germain joined Federated in 1984 and is a member of the Pennsylvania Bar Association. Previous Positions: Deputy General Counsel, Special Counsel, Managing Director of Mutual Fund Services, Federated Investors, Inc.; Senior Vice President, Federated Services Company; and Senior Corporate Counsel, Federated Investors, Inc. |
Stephen Van Meter Birth Date: June 5, 1975 CHIEF COMPLIANCE OFFICER AND SENIOR VICE PRESIDENT Officer since: July 2015 | Principal Occupations: Senior Vice President and Chief Compliance Officer of the Federated Fund Family; Vice President and Chief Compliance Officer of Federated Investors, Inc. and Chief Compliance Officer of certain of its subsidiaries. Mr. Van Meter joined Federated in October 2011. He holds FINRA licenses under Series 3, 7, 24 and 66. Previous Positions: Mr. Van Meter previously held the position of Compliance Operating Officer, Federated Investors, Inc. Prior to joining Federated, Mr. Van Meter served at the United States Securities and Exchange Commission in the positions of Senior Counsel, Office of Chief Counsel, Division of Investment Management and Senior Counsel, Division of Enforcement. |
Name Birth Date Address Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
Stephen F. Auth Birth Date: September 13, 1956 101 Park Avenue 41st Floor New York, NY 10178 CHIEF INVESTMENT OFFICER Officer since: November 2002 | Principal Occupations: Stephen F. Auth is Chief Investment Officer of various Funds in the Federated Fund Family; Executive Vice President, Federated Investment Counseling, Federated Global Investment Management Corp. and Federated Equity Management Company of Pennsylvania. Previous Positions: Executive Vice President, Federated Investment Management Company and Passport Research, Ltd. (investment advisory subsidiary of Federated); Senior Vice President, Global Portfolio Management Services Division; Senior Vice President, Federated Investment Management Company and Passport Research, Ltd.; Senior Managing Director and Portfolio Manager, Prudential Investments. |
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
CUSIP 31420E809
CUSIP 31420E106
CUSIP 31420E403
2018 ©Federated Investors, Inc.
Share Class | Ticker | Institutional | FMCRX | Service | FMDCX | R6 | FMCLX |
1 | Please see the footnotes to the line graphs below for definitions of, and further information about, the S&P 400. |
2 | The S&P Composite 1500® Index combines three leading indices: the S&P 500®, the S&P MidCap 400® Index and the S&P SmallCap 600® Index to cover approximately 90% of the U.S. market capitalization.* |
3 | The S&P 100® Index, a sub-set of the S&P 500® Index, measures the performance of large cap companies in the United States. The Index comprises 100 major, blue chip companies across multiple industry groups. Individual stock options are listed for each index constituent.* |
4 | The S&P 500® Index is an unmanaged capitalization weighted index of 500 stocks designated to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.* |
5 | The S&P SmallCap 600® Index measures the small cap segment of the U.S. equity market. The index is designed to be an investable portfolio of companies that meet specific inclusion criteria to ensure that they are liquid and financially viable.* |
6 | The S&P Composite 1500® Value Index measures value stocks using three factors: the ratios of book value, earnings, and sales to price. S&P Style Indices divide the complete market capitalization of each parent index into growth and value segments. Constituents are drawn from the S&P 1500® Index.* |
7 | The S&P Composite 1500® Growth Index measures growth stocks using three factors: sales growth, the ratio of earnings change to price, and momentum. S&P Style Indices divide the complete market capitalization of each parent index into growth and value segments. Constituents are drawn from the S&P 1500® Index.* |
8 | Sector classifications are based upon the classification of the Standard & Poor's Global Industry Classification Standard. |
9 | The Fund's use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional instruments. |
* | The index is unmanaged, and it is not possible to invest directly in an index. |
Federated Mid-Cap Index Fund - | Institutional Shares | Service Shares | S&P 400 |
F | F | I | |
10/31/2008 | 10,000 | 10,000 | 10,000 |
10/31/2009 | 11,780 | 11,780 | 11,818 |
10/31/2010 | 14,969 | 14,969 | 15,084 |
10/31/2011 | 16,160 | 16,160 | 16,374 |
10/31/2012 | 18,059 | 18,033 | 18,357 |
10/31/2013 | 24,103 | 24,018 | 24,503 |
10/31/2014 | 26,902 | 26,730 | 27,358 |
10/31/2015 | 27,753 | 27,507 | 28,295 |
10/31/2016 | 29,377 | 29,057 | 30,065 |
10/31/2017 | 36,190 | 35,701 | 37,123 |
10/31/2018 | 36,491 | 35,902 | 37,502 |
1 Year | 5 Years | 10 Years | |
Institutional Shares3 | 0.83% | 8.65% | 13.82% |
Service Shares | 0.56% | 8.37% | 13.64% |
Class R6 Shares3 | 0.83% | 8.49% | 13.70% |
S&P 400 | 1.02% | 8.89% | 14.13% |
1 | The Fund's performance assumes the reinvestment of all dividends and distributions. The S&P 400 has been adjusted to reflect reinvestment of dividends on securities in the index. |
2 | The Standard & Poor's MidCap 400® Index is an unmanaged capitalization weighted index of common stocks representing all major industries in the mid-range of the U.S. stock market. The index is unmanaged, and it is not possible to invest directly in an index. The S&P 400 is not adjusted to reflect taxes, expenses or other fees that the Securities and Exchange Commission requires to be reflected in the Fund's performance. The S&P 400 is unmanaged and, unlike the Fund, is not affected by cash flows. It is not possible to invest directly in an index. |
3 | The Fund's Institutional Shares commenced operations on January 4, 2012. The Fund's Class R6 Shares commenced operations on October 18, 2016. The Fund offers one other class of shares: Service Shares. For the period prior to the commencement of operations of Institutional Shares, the performance information shown is for the Fund's Service Shares, adjusted to remove any voluntary waiver of Fund expenses related to the Service Shares that occurred during the period prior to the commencement of Institutional Shares. For the period prior to the commencement of operations of the R6 Shares, the performance information shown is for the Fund's Service Shares, adjusted to remove any voluntary waiver of Fund expenses related to the Service Shares that occurred during the period prior to the commencement of the R6 Shares. |
Sector Composition | Percentage of Total Net Assets |
Financials | 16.0% |
Information Technology | 15.5% |
Industrials | 14.2% |
Consumer Discretionary | 11.8% |
Health Care | 9.8% |
Real Estate | 9.1% |
Materials | 6.5% |
Utilities | 5.0% |
Energy | 4.8% |
Consumer Staples | 3.7% |
Communication Services | 2.3% |
Securities Lending Collateral2 | 10.5% |
Cash Equivalents3 | 1.3% |
Derivative Contracts4,5 | 0.0% |
Other Assets and Liabilities—Net6 | (10.5)% |
TOTAL7 | 100.0% |
1 | Except for Securities Lending Collateral, Cash Equivalents, Derivative Contracts and Other Assets and Liabilities, sector classifications are based upon, and individual portfolio securities are assigned to, the classifications of the Global Industry Classification Standard (GICS), except that the Manager assigns a classification to securities not classified by the GICS and to securities for which the Manager does not have access to the classification made by the GICS. |
2 | Represents cash collateral received for portfolio securities on loan that may be invested in affiliated money market funds, other money market instruments and/or repurchase agreements. |
3 | Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements other than those representing securities lending collateral. |
4 | Based upon net unrealized appreciation (depreciation) or value of the derivative contracts as, applicable. Derivative contracts may consist of futures, forwards, options and swaps. The impact of a derivative contract on the Fund's performance may be larger than its unrealized appreciation (depreciation) may indicate. In many cases, the notional value or amount of a derivative contract may provide a better indication of the contract's significance to the portfolio. More complete information regarding the Fund's direct investments in derivative contracts, including unrealized appreciation (depreciation) and notional values or amounts of such contracts, can be found in the table at the end of the Portfolio of Investments included in this Report. |
5 | Represents less than 0.1%. |
6 | Assets, other than investments in securities and derivative contracts, less liabilities. See Statement of Assets and Liabilities. |
7 | The Fund purchases index futures contracts to efficiently manage cash flows resulting from shareholder purchases and redemptions, dividend and capital gain payments to shareholders and corporate actions while maintaining exposure to the Standard & Poor's MidCap 400 Index (S&P 400) and minimizing trading costs. Taking into consideration these open index futures contracts, the Fund's effective total exposure to the S&P 400 is effectively 100.1%. |
Shares | Value | ||
1 | COMMON STOCKS—98.7% | ||
Communication Services—2.3% | |||
22,853 | 2,3 | AMC Networks, Inc. | $1,338,729 |
1,979 | Cable One, Inc. | 1,772,669 | |
27,297 | 2,3 | Cars.com, Inc. W/I | 712,725 |
42,528 | 3 | Cinemark Holdings, Inc. | 1,767,889 |
51,462 | 2,3 | Live Nation Entertainment, Inc. | 2,691,463 |
8,655 | Meredith Corp. | 446,252 | |
41,683 | 3 | New York Times Co., Class A | 1,100,431 |
88,223 | Tegna, Inc. | 1,018,093 | |
37,541 | Telephone and Data System, Inc. | 1,157,389 | |
17,932 | Wiley (John) & Sons, Inc., Class A | 972,632 | |
20,533 | 3 | World Wrestling Entertainment, Inc. | 1,490,490 |
TOTAL | 14,468,762 | ||
Consumer Discretionary—11.8% | |||
27,802 | Aaron's, Inc. | 1,310,308 | |
34,853 | 3 | Adient PLC | 1,060,228 |
29,315 | 2 | Adtalem Global Education, Inc. | 1,484,218 |
61,526 | American Eagle Outfitters, Inc. | 1,418,789 | |
23,597 | 2,3 | AutoNation, Inc. | 955,206 |
35,215 | 3 | Bed Bath & Beyond, Inc. | 483,854 |
6,933 | 3 | Big Lots, Inc. | 287,858 |
41,162 | Boyd Gaming Corp. | 1,093,263 | |
17,069 | Brinker International, Inc. | 739,941 | |
32,153 | Brunswick Corp. | 1,671,634 | |
17,988 | Carter's, Inc. | 1,726,488 | |
17,441 | 3 | Cheesecake Factory, Inc. | 843,098 |
4,315 | Churchill Downs, Inc. | 1,077,067 | |
7,182 | Cracker Barrel Old Country Store, Inc. | 1,139,640 | |
58,724 | Dana, Inc. | 914,333 | |
14,027 | 2 | Deckers Outdoor Corp. | 1,783,814 |
35,202 | Delphi Technologies PLC | 754,731 | |
30,757 | Dick's Sporting Goods, Inc. | 1,087,875 | |
8,278 | 3 | Dillards, Inc., Class A | 582,937 |
15,777 | Domino's Pizza, Inc. | 4,240,700 | |
27,311 | 3 | Dunkin' Brands Group, Inc. | 1,981,686 |
23,409 | 2 | Eldorado Resorts, Inc. | 854,428 |
Shares | Value | ||
1 | COMMON STOCKS—continued | ||
Consumer Discretionary—continued | |||
20,771 | 2 | Five Below, Inc. | $2,364,155 |
99,818 | Gentex Corp. | 2,101,169 | |
1,797 | Graham Holdings, Co. | 1,044,147 | |
9,545 | 2,3 | Helen of Troy Ltd. | 1,184,725 |
10,924 | International Speedway Corp., Class A | 409,759 | |
6,248 | Jack in the Box, Inc. | 493,155 | |
46,742 | KB Home | 933,438 | |
16,273 | Marriott Vacations Worldwide Corp. | 1,439,998 | |
41,670 | 2,3 | Michaels Cos, Inc./The | 660,469 |
11,225 | 2,3 | Murphy USA, Inc. | 905,072 |
1,320 | 2 | NVR, Inc. | 2,955,520 |
18,919 | 2 | Ollie's Bargain Outlet Holdings, Inc. | 1,757,575 |
2,479 | 3 | Papa John's International, Inc. | 135,205 |
38,614 | 2,3 | Penn National Gaming, Inc. | 937,548 |
22,030 | 3 | Polaris Industries, Inc. | 1,960,229 |
15,037 | 3 | Pool Corp. | 2,191,643 |
49,814 | 2,3 | Sally Beauty Holdings, Inc. | 887,187 |
23,569 | 2,3 | Scientific Games Corp. | 524,646 |
67,415 | Service Corp. International | 2,795,700 | |
25,116 | Signet Jewelers Ltd. | 1,407,752 | |
27,131 | Six Flags Entertainment Corp. | 1,461,276 | |
54,355 | 2 | Skechers USA, Inc., Class A | 1,552,922 |
21,093 | 2 | Sothebys Holdings, Inc., Class A | 885,906 |
63,453 | 2,3 | TRI Pointe Group, Inc. | 755,091 |
11,010 | 2,3 | Tempur Sealy International, Inc. | 508,772 |
24,450 | Texas Roadhouse, Inc. | 1,478,247 | |
75,684 | The Wendy's Co. | 1,304,792 | |
19,925 | Thor Industries, Inc. | 1,387,577 | |
53,851 | 3 | Toll Brothers, Inc. | 1,812,625 |
10,867 | Tupperware Brands Corp. | 381,432 | |
37,567 | 2 | Urban Outfitters, Inc. | 1,482,394 |
11,299 | 2,3 | Visteon Corp. | 893,073 |
19,762 | 2 | Weight Watchers International, Inc. | 1,306,268 |
29,770 | 3 | Williams-Sonoma, Inc. | 1,767,743 |
39,650 | Wyndham Destinations, Inc. | 1,422,642 | |
37,009 | Wyndham Hotels & Resorts, Inc. | 1,824,174 | |
TOTAL | 74,806,122 |
Shares | Value | ||
1 | COMMON STOCKS—continued | ||
Consumer Staples—3.7% | |||
14,555 | Casey's General Stores, Inc. | $1,835,531 | |
22,142 | 2,3 | Edgewell Personal Care Co. | 1,062,373 |
21,741 | Energizer Holdings, Inc. | 1,277,719 | |
70,495 | Flowers Foods, Inc. | 1,361,258 | |
36,866 | 2,3 | Hain Celestial Group, Inc. | 917,226 |
27,855 | Ingredion, Inc. | 2,818,369 | |
54,973 | Lamb Weston Holdings, Inc. | 4,296,690 | |
7,011 | Lancaster Colony Corp. | 1,201,545 | |
20,627 | Nu Skin Enterprises, Inc. | 1,448,428 | |
29,042 | 2,3 | Post Holdings, Inc. | 2,567,894 |
4,205 | 3 | Sanderson Farms, Inc. | 413,730 |
47,025 | 2 | Sprouts Farmers Market, Inc. | 1,264,502 |
4,286 | 2,3 | The Boston Beer Co., Inc., Class A | 1,317,045 |
22,850 | 2,3 | TreeHouse Foods, Inc. | 1,041,046 |
21,393 | 2 | United Natural Foods, Inc. | 464,870 |
TOTAL | 23,288,226 | ||
Energy—4.8% | |||
28,033 | 2 | Apergy Corp. | 1,093,007 |
86,334 | 2 | CNX Resources Corp. | 1,351,127 |
56,775 | 2 | Callon Petroleum Corp. | 566,047 |
365,120 | 2,3 | Chesapeake Energy Corp. | 1,281,571 |
16,283 | 3 | Core Laboratories NV | 1,387,963 |
20,894 | 2 | Diamond Offshore Drilling, Inc. | 296,277 |
12,944 | 2,3 | Dril-Quip, Inc. | 550,897 |
35,734 | 2 | Energen Corp. | 2,571,776 |
131,536 | 3 | Ensco PLC | 939,167 |
66,367 | 2 | Gulfport Energy Corp. | 604,603 |
38,591 | 2 | Matador Resources Co. | 1,112,964 |
72,762 | 2 | McDermott International, Inc. | 562,450 |
71,227 | 3 | Murphy Oil Corp. | 2,269,292 |
135,770 | 3 | Nabors Industries Ltd. | 674,777 |
96,712 | 2 | Oasis Petroleum, Inc. | 972,923 |
38,170 | 2 | Oceaneering International, Inc. | 722,940 |
53,302 | PBF Energy, Inc. | 2,230,689 | |
88,146 | Patterson-UTI Energy, Inc. | 1,466,749 | |
58,492 | 2 | QEP Resources, Inc. | 521,164 |
59,471 | 3 | Range Resources Corp. | 942,615 |
52,593 | 2,3 | Rowan Companies PLC | 836,755 |
Shares | Value | ||
1 | COMMON STOCKS—continued | ||
Energy—continued | |||
37,365 | 3 | SM Energy Co. | $909,464 |
236,882 | 2 | Southwestern Energy Co. | 1,264,950 |
22,480 | 2,3 | Superior Energy Services, Inc. | 176,018 |
192,293 | Transocean Ltd. | 2,117,146 | |
147,277 | 2,3 | WPX Energy, Inc. | 2,362,323 |
28,531 | World Fuel Services Corp. | 912,992 | |
TOTAL | 30,698,646 | ||
Financials—16.0% | |||
5,607 | Alleghany Corp. | 3,368,013 | |
26,320 | American Financial Group, Inc., Ohio | 2,632,790 | |
14,367 | Aspen Insurance Holdings Ltd. | 601,690 | |
67,243 | Associated Banc Corp. | 1,558,693 | |
33,036 | BancorpSouth Bank | 948,133 | |
15,992 | Bank of Hawaii Corp. | 1,254,412 | |
48,012 | Bank OZK | 1,313,608 | |
35,936 | Berkley, W. R. Corp. | 2,727,542 | |
86,395 | Brown & Brown | 2,434,611 | |
79,076 | CNO Financial Group, Inc. | 1,494,536 | |
29,649 | Cathay Bancorp, Inc. | 1,116,878 | |
21,116 | Chemical Financial Corp. | 989,496 | |
35,298 | Commerce Bancshares, Inc. | 2,244,953 | |
27,654 | Cullen Frost Bankers, Inc. | 2,707,880 | |
54,743 | East West Bancorp, Inc. | 2,870,723 | |
51,716 | Eaton Vance Corp. | 2,329,806 | |
12,240 | Evercore, Inc. | 999,886 | |
129,397 | FNB Corp. | 1,530,767 | |
14,379 | FactSet Research Systems | 3,217,445 | |
36,618 | 3 | Federated Investors, Inc. | 903,366 |
49,418 | First American Financial Corp. | 2,190,700 | |
105,071 | 3 | First Horizon National Corp. | 1,695,846 |
87,231 | Fulton Financial Corp. | 1,396,568 | |
205,962 | 2 | Genworth Financial, Inc., Class A | 881,517 |
39,693 | Hancock Whitney Corp. | 1,665,518 | |
15,676 | Hanover Insurance Group, Inc. | 1,745,993 | |
76,509 | Home Bancshares, Inc. | 1,456,731 | |
27,536 | 3 | Interactive Brokers Group, Inc., Class A | 1,360,554 |
19,532 | International Bancshares Corp. | 755,888 | |
66,931 | 3 | Janus Henderson Group PLC | 1,644,495 |
Shares | Value | ||
1 | COMMON STOCKS—continued | ||
Financials—continued | |||
22,418 | Kemper Corp. | $1,685,609 | |
34,890 | Legg Mason, Inc. | 984,596 | |
1,318 | 2,3 | LendingTree.com, Inc. | 265,827 |
24,979 | MB Financial, Inc. | 1,108,818 | |
12,906 | Marketaxess Holdings, Inc. | 2,706,001 | |
11,783 | Mercury General Corp. | 698,850 | |
114,551 | Navient Corp. | 1,326,501 | |
155,585 | New York Community Bancorp, Inc. | 1,490,504 | |
111,885 | Old Republic International Corp. | 2,467,064 | |
53,786 | PacWest Bancorp | 2,184,787 | |
29,107 | Pinnacle Financial Partners, Inc. | 1,522,296 | |
15,913 | Primerica, Inc. | 1,746,293 | |
25,565 | 3 | Prosperity Bancshares, Inc. | 1,662,492 |
24,843 | Reinsurance Group of America, Inc. | 3,536,898 | |
12,807 | RenaissanceRe Holdings Ltd. | 1,564,503 | |
49,294 | SEI Investments Co. | 2,634,764 | |
165,917 | 2,3 | SLM Holding Corp. | 1,682,398 |
21,772 | Signature Bank | 2,392,743 | |
71,010 | Sterling Bancorp | 1,276,760 | |
28,516 | Stifel Financial Corp. | 1,303,752 | |
43,786 | Synovus Financial Corp. | 1,644,602 | |
78,071 | TCF Financial Corp. | 1,630,122 | |
19,081 | 2 | Texas Capital Bancshares, Inc. | 1,244,654 |
27,884 | Trustmark Corp. | 858,827 | |
18,208 | UMB Financial Corp. | 1,162,581 | |
87,462 | Umpqua Holdings Corp. | 1,679,270 | |
41,571 | 3 | United Bankshares, Inc. | 1,378,910 |
132,717 | Valley National Bancorp | 1,324,516 | |
34,078 | Washington Federal, Inc. | 959,636 | |
34,163 | Webster Financial Corp. Waterbury | 2,010,151 | |
21,218 | Wintrust Financial Corp. | 1,615,539 | |
TOTAL | 101,789,302 | ||
Health Care—9.8% | |||
25,980 | 2,3 | Acadia Healthcare Co., Inc. | 1,078,170 |
71,730 | 2 | Allscripts Healthcare Solutions, Inc. | 854,304 |
13,024 | 2 | Avanos Medical, Inc. | 737,158 |
7,433 | 2 | Bio Rad Laboratories, Inc., Class A | 2,028,094 |
16,211 | 3 | Bio-Techne Corp. | 2,718,909 |
Shares | Value | ||
1 | COMMON STOCKS—continued | ||
Health Care—continued | |||
14,266 | Cantel Medical Corp. | $1,129,154 | |
53,806 | 2 | Catalent, Inc. | 2,170,534 |
17,836 | 2,3 | Charles River Laboratories International, Inc. | 2,172,782 |
5,932 | Chemed Corp. | 1,805,286 | |
42,396 | Encompass Health Corp. | 2,853,251 | |
117,458 | 2 | Exelixis, Inc. | 1,629,142 |
26,712 | 2 | Globus Medical, Inc. | 1,411,729 |
22,955 | 2 | Haemonetics Corp. | 2,398,109 |
24,518 | 2,3 | HealthEquity, Inc. | 2,250,752 |
24,714 | Hill-Rom Holdings, Inc. | 2,077,953 | |
6,079 | 2 | ICU Medical, Inc. | 1,548,504 |
6,700 | 2 | Inogen, Inc. | 1,270,119 |
25,932 | 2,3 | Integra Lifesciences Corp. | 1,389,177 |
15,889 | 2 | LifePoint Health, Inc. | 1,030,561 |
18,014 | 2 | Livanova PLC | 2,017,388 |
34,213 | 2 | Mallinckrodt PLC | 857,378 |
17,791 | 2 | Masimo Corp. | 2,056,640 |
18,145 | 2,3 | Medidata Solutions, Inc. | 1,275,593 |
37,254 | 2 | Mednax, Inc. | 1,538,218 |
26,013 | 2 | Molina Healthcare, Inc. | 3,297,668 |
20,695 | 2,3 | NuVasive, Inc. | 1,162,438 |
25,421 | 2 | PRA Health Sciences, Inc. | 2,462,532 |
17,734 | 3 | Patterson Companies, Inc. | 400,434 |
10,521 | 2 | Prestige Consumer Healthcare, Inc. | 380,439 |
31,743 | Steris PLC | 3,469,827 | |
24,009 | 2 | Syneos Health, Inc. | 1,095,531 |
17,628 | Teleflex, Inc. | 4,243,765 | |
29,271 | 2,3 | Tenet Healthcare Corp. | 753,143 |
17,240 | 2 | United Therapeutics Corp. | 1,911,226 |
27,559 | 3 | West Pharmaceutical Services, Inc. | 2,919,049 |
TOTAL | 62,394,957 | ||
Industrials—14.2% | |||
63,667 | 2,3 | AECOM | 1,855,256 |
26,589 | AGCO Corp. | 1,490,048 | |
20,021 | 2 | ASGN, Inc. | 1,343,009 |
15,816 | Acuity Brands, Inc. Holding Company | 1,987,122 | |
27,512 | 2 | Avis Budget Group, Inc. | 773,637 |
19,767 | 3 | Brinks Co. (The) | 1,310,947 |
Shares | Value | ||
1 | COMMON STOCKS—continued | ||
Industrials—continued | |||
22,295 | Carlisle Cos., Inc. | $2,153,474 | |
18,522 | 2 | Clean Harbors, Inc. | 1,260,237 |
18,665 | Crane Co. | 1,624,602 | |
19,392 | Curtiss-Wright Corp. | 2,122,648 | |
19,480 | Deluxe Corp. | 919,651 | |
48,154 | Donaldson Co., Inc. | 2,469,337 | |
16,668 | Dun & Bradstreet Corp. | 2,371,523 | |
12,784 | 2 | Dycom Industries, Inc. | 867,778 |
21,322 | Emcor Group, Inc. | 1,513,436 | |
15,287 | EnerSys, Inc. | 1,216,387 | |
10,919 | 2 | Esterline Technologies Corp. | 1,281,454 |
10,315 | GATX Corp. | 772,903 | |
23,005 | 2,3 | Genesee & Wyoming, Inc., Class A | 1,822,686 |
71,399 | Graco, Inc. | 2,900,941 | |
9,891 | Granite Construction, Inc. | 452,217 | |
16,828 | HNI Corp. | 637,613 | |
20,187 | 3 | Healthcare Services Group, Inc. | 819,390 |
21,207 | Hubbell, Inc. | 2,156,752 | |
31,594 | IDEX Corp. | 4,006,751 | |
32,369 | 3 | ITT, Inc. | 1,634,635 |
123,271 | 2 | Jet Blue Airways Corp. | 2,062,324 |
36,771 | KBR, Inc. | 727,330 | |
23,405 | Kennametal, Inc. | 829,707 | |
19,761 | 2 | Kirby Corp. | 1,421,606 |
39,342 | 3 | Knight-Swift Transportation Holdings, Inc. | 1,258,944 |
15,156 | Landstar System, Inc. | 1,516,964 | |
13,545 | Lennox International, Inc. | 2,856,505 | |
24,217 | Lincoln Electric Holdings | 1,959,398 | |
16,665 | MSA Safety, Inc. | 1,740,493 | |
21,624 | MSC Industrial Direct Co. | 1,752,841 | |
25,661 | Manpower Group, Inc. | 1,957,678 | |
24,030 | Miller Herman, Inc. | 791,789 | |
20,539 | 2 | NOW, Inc. | 263,721 |
22,454 | Nordson Corp. | 2,754,432 | |
59,940 | nVent Electric PLC | 1,463,735 | |
27,333 | Old Dominion Freight Lines, Inc. | 3,564,770 | |
28,900 | OshKosh Truck Corp. | 1,622,446 | |
25,047 | 3 | Pitney Bowes, Inc. | 165,811 |
Shares | Value | ||
1 | COMMON STOCKS—continued | ||
Industrials—continued | |||
17,449 | Regal Beloit Corp. | $1,251,093 | |
47,356 | 2 | Resideo Technologies, Inc. | 996,844 |
15,609 | 3 | Ryder Systems, Inc. | 863,334 |
15,176 | 2 | Teledyne Technologies, Inc. | 3,358,145 |
26,481 | Terex Corp. | 884,201 | |
27,926 | Timken Co. | 1,104,473 | |
39,131 | Toro Co. | 2,204,249 | |
47,055 | Trinity Industries, Inc. | 1,343,420 | |
8,513 | Valmont Industries, Inc. | 1,058,251 | |
32,162 | Wabtec Corp. | 2,637,927 | |
11,874 | Watsco, Inc. | 1,759,489 | |
16,355 | 3 | Werner Enterprises, Inc. | 526,467 |
20,388 | Woodward, Inc. | 1,501,372 | |
TOTAL | 89,964,193 | ||
Information Technology—15.5% | |||
41,832 | 2,3 | ACI Worldwide, Inc. | 1,049,565 |
67,531 | 2 | Arris International PLC | 1,679,496 |
28,937 | 2,3 | Arrow Electronics, Inc. | 1,959,324 |
42,798 | Avnet, Inc. | 1,714,916 | |
10,650 | 3 | Belden, Inc. | 575,633 |
17,903 | Blackbaud, Inc. | 1,284,003 | |
50,659 | CDK Global, Inc. | 2,899,721 | |
43,208 | 2,3 | Ciena Corp. | 1,350,682 |
25,104 | 2 | Cirrus Logic, Inc. | 939,894 |
66,939 | Cognex Corp. | 2,867,667 | |
9,679 | 2,3 | Coherent, Inc. | 1,191,872 |
14,853 | 2 | Commvault Systems, Inc. | 864,742 |
37,934 | 2 | CoreLogic, Inc. | 1,540,879 |
37,249 | 2,3 | Cree, Inc. | 1,446,006 |
133,989 | Cypress Semiconductor Corp. | 1,733,818 | |
12,688 | 2 | Fair Isaac & Co., Inc. | 2,445,104 |
35,885 | 2 | First Solar, Inc. | 1,499,993 |
29,098 | Henry Jack & Associates, Inc. | 4,359,753 | |
56,981 | 2 | Integrated Device Technology, Inc. | 2,667,281 |
17,691 | InterDigital, Inc. | 1,255,176 | |
18,757 | 3 | j2 Global, Inc. | 1,366,260 |
61,033 | Jabil, Inc. | 1,509,346 | |
70,645 | 2 | Keysight Technologies, Inc. | 4,032,417 |
Shares | Value | ||
1 | COMMON STOCKS—continued | ||
Information Technology—continued | |||
57,071 | Leidos Holdings, Inc. | $3,697,059 | |
11,272 | 3 | Littelfuse, Inc. | 2,042,036 |
28,248 | 2 | LiveRamp Holdings, Inc. | 1,290,369 |
15,821 | LogMeIn, Inc. | 1,362,505 | |
24,117 | 2,3 | Lumentum Holdings, Inc. | 1,317,994 |
21,812 | MKS Instruments, Inc. | 1,607,326 | |
23,954 | 2,3 | Manhattan Associates, Inc. | 1,143,564 |
25,509 | Maximus, Inc. | 1,657,320 | |
14,374 | Monolithic Power Systems | 1,697,857 | |
47,531 | 2 | NCR Corp. | 1,276,207 |
41,561 | National Instruments Corp. | 2,035,242 | |
30,471 | 2,3 | NetScout Systems, Inc. | 769,697 |
39,902 | 2 | PTC, Inc. | 3,288,324 |
57,277 | Perspecta, Inc. | 1,402,714 | |
18,501 | Plantronics, Inc. | 1,091,004 | |
94,478 | Sabre Corp. | 2,328,883 | |
11,700 | Science Applications International Corp. | 813,267 | |
15,855 | 2 | Silicon Laboratories, Inc. | 1,292,658 |
6,079 | 2,3 | Synaptics, Inc. | 228,206 |
14,894 | Synnex Corp. | 1,155,923 | |
15,616 | 2 | Tech Data Corp. | 1,103,427 |
36,620 | 2,3 | Teradata Corporation | 1,332,968 |
69,487 | Teradyne, Inc. | 2,393,827 | |
13,061 | 2 | The Ultimate Sortware Group, Inc. | 3,482,454 |
94,051 | 2 | Trimble, Inc. | 3,515,626 |
14,502 | 2 | Tyler Technologies, Inc. | 3,069,493 |
32,116 | Versum Materials, Inc. | 1,013,581 | |
15,901 | 2,3 | ViaSat, Inc. | 1,013,848 |
47,310 | 3 | Vishay Intertechnology, Inc. | 865,773 |
16,134 | 2 | WEX, Inc. | 2,838,939 |
22,565 | 2 | Zebra Technologies Co., Class A | 3,752,559 |
TOTAL | 98,114,198 | ||
Materials—6.5% | |||
35,745 | 2 | Allegheny Technologies, Inc. | 925,438 |
23,161 | Aptargroup, Inc. | 2,361,496 | |
27,983 | Ashland Global Holdings, Inc. | 2,070,182 | |
33,375 | Bemis Co., Inc. | 1,527,574 | |
22,482 | Cabot Corp. | 1,094,424 |
Shares | Value | ||
1 | COMMON STOCKS—continued | ||
Materials—continued | |||
16,902 | Carpenter Technology Corp. | $737,096 | |
69,378 | Chemours Co./The | 2,290,168 | |
43,586 | 3 | Commercial Metals Corp. | 830,749 |
7,900 | Compass Minerals International, Inc. | 383,229 | |
30,628 | Domtar Corp. | 1,418,383 | |
18,693 | Eagle Materials, Inc. | 1,380,291 | |
3,939 | Greif, Inc., Class A | 186,315 | |
66,929 | Louisiana-Pacific Corp. | 1,457,044 | |
14,518 | Minerals Technologies, Inc. | 794,861 | |
3,593 | Newmarket Corp. | 1,386,754 | |
66,445 | Olin Corp. | 1,342,189 | |
64,511 | 2,3 | Owens-Illinois, Inc. | 1,010,887 |
31,627 | Polyone Corp. | 1,021,868 | |
50,028 | RPM International, Inc. | 3,060,213 | |
28,492 | Reliance Steel & Aluminum Co. | 2,248,589 | |
29,567 | 3 | Royal Gold, Inc. | 2,265,719 |
10,692 | Scotts Co. | 713,584 | |
11,615 | Sensient Technologies Corp. | 753,349 | |
32,082 | Silgan Holdings, Inc. | 770,930 | |
36,887 | Sonoco Products Co. | 2,013,293 | |
97,457 | Steel Dynamics, Inc. | 3,859,297 | |
69,900 | United States Steel Corp. | 1,854,447 | |
56,804 | Valvoline, Inc. | 1,131,536 | |
16,982 | Worthington Industries, Inc. | 711,206 | |
TOTAL | 41,601,111 | ||
Real Estate—9.1% | |||
10,647 | Alexander & Baldwin, Inc. | 208,042 | |
54,123 | American Campus Communities, Inc. | 2,138,400 | |
34,766 | Camden Property Trust | 3,138,327 | |
48,109 | CoreCivic, Inc. | 1,080,528 | |
14,623 | Coresite Realty Corp., REIT | 1,372,515 | |
41,860 | Corporate Office Properties Trust | 1,081,662 | |
155,189 | Cousins Properties, Inc. | 1,289,621 | |
43,134 | Cyrusone, Inc. | 2,296,023 | |
59,946 | Douglas Emmett, Inc. | 2,169,446 | |
29,478 | EPR Properties | 2,026,318 | |
46,267 | First Industrial Realty Trust | 1,420,397 | |
49,379 | Geo Group, Inc. | 1,091,770 |
Shares | Value | ||
1 | COMMON STOCKS—continued | ||
Real Estate—continued | |||
50,304 | Healthcare Realty Trust, Inc. | $1,401,469 | |
46,933 | Highwoods Properties, Inc. | 2,001,223 | |
65,348 | Hospitality Properties Trust | 1,674,216 | |
39,567 | JBG Smith Properties | 1,482,971 | |
16,945 | Jones Lang LaSalle, Inc. | 2,241,146 | |
43,479 | Kilroy Realty Corp. | 2,994,833 | |
31,744 | Lamar Advertising Co., Class A | 2,327,470 | |
40,207 | LaSalle Hotel Properties | 1,327,233 | |
54,944 | Liberty Property Trust | 2,300,505 | |
17,101 | Life Storeage, Inc. | 1,610,230 | |
38,018 | Mack-Cali Realty Corp. | 771,765 | |
144,428 | Medical Properties Trust, Inc. | 2,146,200 | |
58,498 | National Retail Properties, Inc. | 2,734,781 | |
65,934 | 3 | Omega Healthcare Investors | 2,198,899 |
22,507 | PotlatchDeltic Corp. REIT | 815,879 | |
59,793 | Rayonier, Inc. | 1,805,749 | |
30,364 | 3 | Realogy Hldgs. Corp. | 579,041 |
53,170 | 3 | Sabra Health Care REIT, Inc. | 1,151,130 |
71,465 | Senior Housing Properties Trust | 1,148,443 | |
39,022 | 3 | Tanger Factory Outlet Centers, Inc. | 868,630 |
29,120 | Taubman Centers, Inc. | 1,601,891 | |
84,176 | Uniti Group, Inc. | 1,611,129 | |
46,816 | Urban Edge Properties | 959,260 | |
33,731 | Weingarten Realty Investors | 948,516 | |
TOTAL | 58,015,658 | ||
Utilities—5.0% | |||
18,731 | Allete | 1,386,094 | |
58,600 | Aqua America, Inc. | 1,906,258 | |
41,804 | Atmos Energy Corp. | 3,891,116 | |
21,709 | Black Hills Corp. | 1,291,686 | |
31,710 | Hawaiian Electric Industries, Inc. | 1,182,783 | |
18,572 | Idacorp, Inc. | 1,732,025 | |
77,691 | MDU Resources Group, Inc. | 1,939,167 | |
20,449 | Northwestern Corp. | 1,201,583 | |
34,145 | 3 | National Fuel Gas Co. | 1,853,732 |
35,311 | 3 | New Jersey Resources Corp. | 1,592,526 |
78,367 | 3 | OGE Energy Corp. | 2,832,967 |
20,099 | ONE Gas, Inc. | 1,586,012 |
Shares | Value | ||
1 | COMMON STOCKS—continued | ||
Utilities—continued | |||
32,272 | PNM Resources, Inc. | $1,239,568 | |
19,688 | 3 | Southwest Gas Holdings, Inc. | 1,521,292 |
73,038 | UGI Corp. | 3,875,396 | |
36,732 | Vectren Corp. | 2,627,440 | |
TOTAL | 31,659,645 | ||
TOTAL COMMON STOCKS (IDENTIFIED COST $416,367,399) | 626,800,820 | ||
INVESTMENT COMPANIES—11.8% | |||
31,461,320 | Federated Government Obligations Fund, Premier Shares, 2.08%4 | 31,461,320 | |
43,162,327 | Federated Institutional Prime Value Obligations Fund, Institutional Shares, 2.31%4 | 43,166,643 | |
TOTAL INVESTMENT COMPANIES (IDENTIFIED COST $74,625,884) | 74,627,963 | ||
TOTAL INVESTMENT IN SECURITIES—110.5% (IDENTIFIED COST $490,993,283)5 | 701,428,783 | ||
OTHER ASSETS AND LIABILITIES - NET—(10.5)%6 | ($66,547,413) | ||
TOTAL NET ASSETS—100% | $634,881,370 |
Description | Number of Contracts | Notional Value | Expiration Date | Value and Unrealized Depreciation |
2S&P MidCap 400 E-Mini Long Futures | 49 | $8,941,520 | December 2018 | $(721,059) |
Federated Investors, Inc. | Federated Government Obligations Fund, Premier Shares* | Federated Institutional Prime Value Obligations Fund, Institutional Shares* | Total of Affiliated Transactions | |
Balance of Shares Held 10/31/2017 | 45,245 | 19,704,830 | 15,761,271 | 35,511,346 |
Purchases/Additions | — | 344,552,261 | 722,642,011 | 1,067,194,272 |
Sales/Reductions | (8,627) | (332,795,771) | (695,240,955) | (1,028,045,353) |
Balance of Shares Held 10/31/2018 | 36,618 | 31,461,320 | 43,162,327 | 74,660,265 |
Value | $903,366 | $31,461,320 | $43,166,643 | $75,531,329 |
Change in Unrealized Appreciation/ Depreciation | $(327,872) | N/A | $3,477 | $(324,395) |
Net Realized Gain/(Loss) | $103,095 | N/A | $(2,454) | $100,641 |
Dividend Income | $42,342 | $452,725 | $1,295,544 | $1,790,611 |
* | All or a portion of the balance/activity for the fund relates to cash collateral received on securities lending transactions. |
1 | The Fund purchases index futures contracts to efficiently manage cash flows resulting from shareholder purchases and redemptions, dividend and capital gain payments to shareholders and corporate actions while maintaining exposure to the S&P MidCap 400 Index and minimizing trading costs. The underlying face amount, at value, of open index futures contracts is $8,941,520 at October 31, 2018, which represents 1.4% of total net assets. Taking into consideration these open index futures contracts, the Fund's effective total exposure to the S&P MidCap 400 Index is 100.1%. |
2 | Non-income-producing security. |
3 | All or a portion of these securities are temporarily on loan to unaffiliated broker/dealers. |
4 | 7-day net yield. |
5 | The cost of investments for federal tax purposes amounts to $496,261,084. |
6 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. A significant portion of this balance represents loans to unaffiliated qualified brokers for securities lending. The Fund receives cash from the broker as collateral for the loaned securities and reinvests the collateral in certain short-term securities such as affiliated money market funds, other money market instruments and/or repurchase agreements. |
REIT | —Real Estate Investment Trust |
Year Ended October 31 | 2018 | 2017 | 2016 | 2015 | 2014 |
Net Asset Value, Beginning of Period | $27.75 | $25.13 | $27.25 | $29.32 | $27.33 |
Income From Investment Operations: | |||||
Net investment income | 0.32 | 0.261 | 0.341 | 0.32 | 0.32 |
Net realized and unrealized gain (loss) | (0.01) | 5.22 | 1.03 | 0.57 | 2.76 |
TOTAL FROM INVESTMENT OPERATIONS | 0.31 | 5.48 | 1.37 | 0.89 | 3.08 |
Less Distributions: | |||||
Distributions from net investment income | (0.31) | (0.28) | (0.32) | (0.33) | (0.31) |
Distributions from net realized gain | (4.06) | (2.58) | (3.17) | (2.63) | (0.78) |
TOTAL DISTRIBUTIONS | (4.37) | (2.86) | (3.49) | (2.96) | (1.09) |
Net Asset Value, End of Period | $23.69 | $27.75 | $25.13 | $27.25 | $29.32 |
Total Return2 | 0.83% | 23.19% | 5.85% | 3.17% | 11.61% |
Ratios to Average Net Assets: | |||||
Net expenses | 0.31% | 0.31% | 0.30% | 0.30% | 0.29% |
Net investment income | 1.28% | 1.01% | 1.40% | 1.15% | 1.14% |
Expense waiver/reimbursement3 | 0.10% | 0.12% | 0.10% | 0.10% | 0.11% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $154,139 | $166,962 | $161,135 | $153,751 | $138,394 |
Portfolio turnover | 29% | 35% | 33% | 36% | 37% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value. |
3 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. |
Year Ended October 31 | 2018 | 2017 | 2016 | 2015 | 2014 |
Net Asset Value, Beginning of Period | $27.77 | $25.15 | $27.26 | $29.33 | $27.35 |
Income From Investment Operations: | |||||
Net investment income | 0.26 | 0.20 | 0.281 | 0.25 | 0.25 |
Net realized and unrealized gain (loss) | (0.02) | 5.21 | 1.04 | 0.57 | 2.75 |
TOTAL FROM INVESTMENT OPERATIONS | 0.24 | 5.41 | 1.32 | 0.82 | 3.00 |
Less Distributions: | |||||
Distributions from net investment income | (0.24) | (0.21) | (0.26) | (0.26) | (0.24) |
Distributions from net realized gain | (4.06) | (2.58) | (3.17) | (2.63) | (0.78) |
TOTAL DISTRIBUTIONS | (4.30) | (2.79) | (3.43) | (2.89) | (1.02) |
Net Asset Value, End of Period | $23.71 | $27.77 | $25.15 | $27.26 | $29.33 |
Total Return2 | 0.56% | 22.86% | 5.64% | 2.91% | 11.29% |
Ratios to Average Net Assets: | |||||
Net expenses | 0.56% | 0.56% | 0.55% | 0.55% | 0.54% |
Net investment income | 1.03% | 0.76% | 1.16% | 0.91% | 0.89% |
Expense waiver/reimbursement3 | 0.10% | 0.09% | 0.10% | 0.10% | 0.11% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $434,678 | $639,787 | $660,471 | $763,853 | $902,685 |
Portfolio turnover | 29% | 35% | 33% | 36% | 27% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value. |
3 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. |
Year Ended October 31, | Period Ended 10/31/20161 | ||
2018 | 2017 | ||
Net Asset Value, Beginning of Period | $27.78 | $25.15 | $25.29 |
Income From Investment Operations: | |||
Net investment income | 0.32 | 0.262 | 0.012 |
Net realized and unrealized gain (loss) | (0.01) | 5.23 | (0.15) |
TOTAL FROM INVESTMENT OPERATIONS | 0.31 | 5.49 | (0.14) |
Less Distributions: | |||
Distributions from net investment income | (0.31) | (0.28) | — |
Distributions from net realized gain | (4.06) | (2.58) | — |
TOTAL DISTRIBUTIONS | (4.37) | (2.86) | — |
Net Asset Value, End of Period | $23.72 | $27.78 | $25.15 |
Total Return3 | 0.83% | 23.23% | (0.55)% |
Ratios to Average Net Assets: | |||
Net expenses | 0.30% | 0.30% | 0.26%4 |
Net investment income | 1.26% | 0.96% | 0.52%4 |
Expense waiver/reimbursement5 | 0.07% | 0.06% | —% |
Supplemental Data: | |||
Net assets, end of period (000 omitted) | $46,064 | $29,384 | $06 |
Portfolio turnover | 29% | 35% | 33%7 |
1 | Reflects operations for the period from October 18, 2016 (date of initial investment) to October 31, 2016. |
2 | Per share numbers have been calculated using the average shares method. |
3 | Based on net asset value. Total returns for periods of 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 the net investment income ratios shown above. |
6 | Represents less than $1,000. |
7 | Portfolio turnover is calculated at the Fund level. Percentage indicated was calculated for the period from November 1, 2015 to October 31, 2016. |
Assets: | ||
Investment in securities, at value including $64,573,947 of securities loaned and including $75,531,329 of investment in affiliated holdings (identified cost $490,993,283) | $701,428,783 | |
Restricted cash (Note 2) | 401,800 | |
Income receivable | 407,011 | |
Income receivable from affiliated holdings | 52,642 | |
Receivable for investments sold | 144,747 | |
Receivable for shares sold | 506,377 | |
Receivable for daily variation margin on futures contracts | 46,447 | |
TOTAL ASSETS | 702,987,807 | |
Liabilities: | ||
Payable for shares redeemed | $1,373,464 | |
Bank overdraft | 3,491 | |
Payable for collateral due to broker for securities lending | 66,448,973 | |
Payable for investment adviser fee (Note 5) | 3,572 | |
Payable for other service fees (Notes 2 and 5) | 97,477 | |
Accrued expenses (Note 5) | 179,460 | |
TOTAL LIABILITIES | 68,106,437 | |
Net assets for 26,781,049 shares outstanding | $634,881,370 | |
Net Assets Consist of: | ||
Paid-in capital | $314,803,939 | |
Total distributable earnings | 320,077,431 | |
TOTAL NET ASSETS | $634,881,370 | |
Net Asset Value, Offering Price and Redemption Proceeds Per Share | ||
Institutional Shares: | ||
Net asset value per share ($154,139,421 ÷ 6,506,498 shares outstanding), no par value, unlimited shares authorized | $23.69 | |
Service Shares: | ||
Net asset value per share ($434,678,097 ÷ 18,332,359 shares outstanding), no par value, unlimited shares authorized | $23.71 | |
Class R6 Shares: | ||
Net asset value per share ($46,063,852 ÷ 1,942,192 shares outstanding), no par value, unlimited shares authorized | $23.72 |
Investment Income: | |||
Dividends (including $444,843 received from affiliated holdings* and net of foreign taxes withheld of $5,600) | $11,530,536 | ||
Net income on securities loaned (includes $1,345,768 received from affiliated holdings related to cash collateral balances*) | 268,315 | ||
Interest | 7,508 | ||
TOTAL INCOME | 11,806,359 | ||
Expenses: | |||
Management fee (Note 5) | $2,232,965 | ||
Custodian fees | 62,091 | ||
Transfer agent fee (Note 2) | 389,424 | ||
Directors'/Trustees' fees (Note 5) | 10,421 | ||
Auditing fees | 26,700 | ||
Legal fees | 11,633 | ||
Portfolio accounting fees | 131,387 | ||
Other service fees (Notes 2 and 5) | 1,304,510 | ||
Share registration costs | 54,989 | ||
Printing and postage | 43,364 | ||
Miscellaneous (Note 5) | 60,681 | ||
TOTAL EXPENSES | 4,328,165 | ||
Waiver and Reimbursements: | |||
Waiver/reimbursement of investment adviser fee (Note 5) | $(530,440) | ||
Reimbursement of other operating expenses (Note 2) | (184,955) | ||
TOTAL WAIVER AND REIMBURSEMENTS | (715,395) | ||
Net expenses | 3,612,770 | ||
Net investment income | 8,193,589 | ||
Realized and Unrealized Gain (Loss) on Investments and Futures Contracts: | |||
Net realized gain on investments (including net realized gain of $100,641 on sales of investments in affiliated holdings*) | 114,191,165 | ||
Net realized gain on futures contracts | 2,906,995 | ||
Net change in unrealized appreciation of investments (including net change in unrealized appreciation of $(324,395) on investments in affiliated holdings*) | (110,765,095) | ||
Net change in unrealized appreciation of futures contracts | (1,363,125) | ||
Net realized and unrealized gain on investments and futures contracts | 4,969,940 | ||
Change in net assets resulting from operations | $13,163,529 |
* | See information listed after the Fund's Portfolio of Investments. |
Year Ended October 31 | 2018 | 2017 |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income | $8,193,589 | $7,019,379 |
Net realized gain | 117,098,160 | 113,619,308 |
Net change in unrealized appreciation/depreciation | (112,128,220) | 56,776,439 |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 13,163,529 | 177,415,126 |
Distributions to Shareholders (Note 2): | ||
Institutional Shares | (24,273,850) | (18,416,779) |
Service Shares | (91,881,445) | (72,886,449) |
Class R6 Shares | (6,232,678) | (91,837) |
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | (122,387,973) | (91,395,065) |
Share Transactions: | ||
Proceeds from sale of shares | 167,111,673 | 259,799,095 |
Net asset value of shares issued to shareholders in payment of distributions declared | 118,419,740 | 88,735,483 |
Cost of shares redeemed | (377,559,501) | (420,027,304) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | (92,028,088) | (71,492,726) |
Change in net assets | (201,252,532) | 14,527,335 |
Net Assets: | ||
Beginning of period | 836,133,902 | 821,606,567 |
End of period | $634,881,370 | $836,133,902 |
■ | 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. |
■ | Fixed-income securities are fair valued using price evaluations provided by a pricing service approved by the Fund's Board of Trustees (the “Trustees”). |
■ | Shares of other mutual funds or non-exchange-traded investment companies are valued based upon their reported NAVs. |
■ | 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. |
■ | 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. |
Transfer Agent Fees Incurred | Transfer Agent Fees Reimbursed | |
Institutional Shares | $86,889 | $(48,569) |
Service Shares | 294,662 | (136,386) |
Class R6 Shares | 7,873 | — |
TOTAL | $389,424 | $(184,955) |
Net investment income | |
Institutional Shares | $1,871,938 |
Service Shares | 5,688,666 |
Class R6 Shares | 91,827 |
Net realized gain | |
Institutional Shares | $16,544,841 |
Service Shares | 67,197,783 |
Class R6 Shares | 10 |
Other Service Fees Incurred | |
Service Shares | $1,304,510 |
Market Value of Securities Loaned | Market Value of Collateral |
$64,573,947 | $66,448,973 |
Asset | ||
Statement of Assets and Liabilities Location | Fair Value | |
Derivatives not accounted for as hedging instruments under ASC Topic 815 | ||
Equity contracts | Receivable for daily variation margin on futures contracts | $(721,059)* |
* | Includes cumulative depreciation of futures contracts as reported in the footnotes to the Portfolio of Investments. Only the current day's variation margin is reported within the Statement of Assets and Liabilities. |
Amount of Realized Gain or (Loss) on Derivatives Recognized in Income | |
Futures Contracts | |
Equity contracts | 2,906,995 |
Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income | |
Futures Contracts | |
Equity contracts | $(1,363,125) |
Year Ended October 31 | 2018 | 2017 | ||
Institutional Shares: | Shares | Amount | Shares | Amount |
Shares sold | 2,288,309 | $56,901,517 | 3,718,801 | $96,776,499 |
Shares issued to shareholders in payment of distributions declared | 940,978 | 23,001,459 | 713,882 | 17,792,081 |
Shares redeemed | (2,738,687) | (70,682,142) | (4,827,622) | (125,467,979) |
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS | 490,600 | $9,220,834 | (394,939) | $(10,899,399) |
Year Ended October 31 | 2018 | 2017 | ||
Service Shares: | Shares | Amount | Shares | Amount |
Shares sold | 2,668,040 | $67,711,023 | 5,107,039 | $132,953,192 |
Shares issued to shareholders in payment of distributions declared | 3,648,221 | 89,186,527 | 2,845,266 | 70,851,576 |
Shares redeemed | (11,021,808) | (281,309,674) | (11,177,895) | (291,881,845) |
NET CHANGE RESULTING FROM SERVICE SHARE TRANSACTIONS | (4,705,547) | $(124,412,124) | (3,225,590) | $(88,077,077) |
Year Ended October 31 | 2018 | 2017 | ||
Class R6 Shares: | Shares | Amount | Shares | Amount |
Shares sold | 1,656,177 | $42,499,133 | 1,155,787 | $30,069,404 |
Shares issued to shareholders in payment of distributions declared | 254,380 | 6,231,754 | 3,478 | 91,826 |
Shares redeemed | (1,026,244) | (25,567,685) | (101,390) | (2,677,480) |
NET CHANGE RESULTING FROM CLASS R6 SHARE TRANSACTIONS | 884,313 | $23,163,202 | 1,057,875 | $27,483,750 |
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | (3,330,634) | $(92,028,088) | (2,562,654) | $(71,492,726) |
2018 | 2017 | |
Ordinary income1 | $15,094,907 | $7,652,431 |
Long-term capital gains | $107,293,066 | $83,742,634 |
1 | For tax purposes, short-term capital gain distributions are treated as ordinary income distributions. |
Undistributed ordinary income2 | $6,677,505 |
Net unrealized appreciation | $205,167,699 |
Undistributed long-term capital gains | $108,232,227 |
2 | For tax purposes, short-term capital gains are considered ordinary income in determining distributable earnings. |
Purchases | $208,927,861 |
Sales | $403,505,335 |
December 21, 2018
Beginning Account Value 5/1/2018 | Ending Account Value 10/31/2018 | Expenses Paid During Period1 | |
Actual: | |||
Institutional Shares | $1,000 | $981.30 | $1.55 |
Service Shares | $1,000 | $980.00 | $2.79 |
Class R6 Shares | $1,000 | $981.30 | $1.50 |
Hypothetical (assuming a 5% return before expenses): | |||
Institutional Shares | $1,000 | $1,023.60 | $1.58 |
Service Shares | $1,000 | $1,022.40 | $2.85 |
Class R6 Shares | $1,000 | $1,023.70 | $1.53 |
1 | Expenses are equal to the Fund's annualized net expense ratios, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half-year period). The annualized net expense ratios are as follows: |
Institutional Shares | 0.31% |
Service Shares | 0.56% |
Class R6 Shares | 0.30% |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s) |
J. Christopher Donahue* Birth Date: April 11, 1949 President and Trustee Indefinite Term Began serving: January 1990 | Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Fund Family; Director or Trustee of the Funds in the Federated Fund Family; President, Chief Executive Officer and Director, Federated Investors, Inc.; Chairman and Trustee, Federated Investment Management Company; Trustee, Federated Investment Counseling; Chairman and Director, Federated Global Investment Management Corp.; Chairman and Trustee, Federated Equity Management Company of Pennsylvania; Trustee, Federated Shareholder Services Company; Director, Federated Services Company. Previous Positions: President, Federated Investment Counseling; President and Chief Executive Officer, Federated Investment Management Company, Federated Global Investment Management Corp. and Passport Research, Ltd; Chairman, Passport Research, Ltd. |
John B. Fisher* Birth Date: May 16, 1956 Trustee Indefinite Term Began serving: May 2016 | Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Fund Family; Director or Trustee of certain of the Funds in the Federated Fund Family; Vice President, Federated Investors, Inc.; President, Director/Trustee and CEO, Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company; President of some of the Funds in the Federated Fund Complex and Director, Federated Investors Trust Company. Previous Positions: President and Director of the Institutional Sales Division of Federated Securities Corp.; President and Director of Federated Investment Counseling; President and CEO of Passport Research, Ltd.; Director, Edgewood Securities Corp.; Director, Federated Services Company; Director, Federated Investors, Inc.; Chairman and Director, Southpointe Distribution Services, Inc. and President, Technology, Federated Services Company. |
* | Reasons for “interested” status: J. Christopher Donahue and John B. Fisher are interested due to their beneficial ownership of shares of Federated Investors, Inc. and due to positions they hold with Federated and its subsidiaries. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
John T. Collins Birth Date: January 24, 1947 Trustee Indefinite Term Began serving: October 2013 | Principal Occupations: Director or Trustee of the Federated Fund Family; formerly, Chairman and CEO, The Collins Group, Inc. (a private equity firm) (Retired). Other Directorships Held: Director, Current Chair of the Compensation Committee, KLX Corp. Qualifications: Mr. Collins has served in several business and financial management roles and directorship positions throughout his career. Mr. Collins previously served as Chairman and CEO, The Collins Group, Inc. (a private equity firm). Mr. Collins serves as Chairman Emeriti, Bentley University. Mr. Collins previously served as Director and Audit Committee Member, Bank of America Corp.; Director, FleetBoston Financial Corp.; and Director, Beth Israel Deaconess Medical Center (Harvard University Affiliate Hospital). |
G. Thomas Hough Birth Date: February 28, 1955 Trustee Indefinite Term Began serving: August 2015 | Principal Occupations: Director or Trustee of the Federated Fund Family; formerly, Vice Chair, Ernst & Young LLP (public accounting firm) (Retired). Other Directorships Held: Director, Chair of the Audit Committee, Governance Committee, Publix Super Markets, Inc.; Director, Member of the Audit Committee and Technology Committee of Equifax, Inc. Qualifications: Mr. Hough has served in accounting, business management and directorship positions throughout his career. Mr. Hough most recently held the position of Americas Vice Chair of Assurance with Ernst & Young LLP (public accounting firm). Mr. Hough is an Executive Committee member of the United States Golf Association, he serves on the President's Cabinet and Business School Board of Visitors for the University of Alabama and is on the Business School Board of Visitors for Wake Forest University. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
Maureen Lally-Green Birth Date: July 5, 1949 Trustee Indefinite Term Began serving: August 2009 | Principal Occupations: Director or Trustee of the Federated Fund Family; Dean of the Duquesne University School of Law; Professor and Adjunct Professor of Law, Duquesne University School of Law; formerly, Interim Dean of the Duquesne University School of Law; formerly, Associate General Secretary and Director, Office of Church Relations, Diocese of Pittsburgh. Other Directorships Held: Director, CNX Resources Corporation (formerly known as CONSOL Energy Inc.). Qualifications: Judge Lally-Green has served in various legal and business roles and directorship positions throughout her career. Judge Lally-Green previously served as a member of the Superior Court of Pennsylvania and as a Professor of Law, Duquesne University School of Law. Judge Lally-Green also currently holds the positions on not for profit or for profit boards of directors as follows: Director and Chair, UPMC Mercy Hospital; Director and Vice Chair, Our Campaign for the Church Alive!, Inc.; Director, Saint Vincent College; Member, Pennsylvania State Board of Education (public); and Director CNX Resources Corporation (formerly known as CONSOL Energy Inc.). Judge Lally-Green has held the positions of: Director, Auberle; Director, Epilepsy Foundation of Western and Central Pennsylvania; Director, Ireland Institute of Pittsburgh; Director, Saint Thomas More Society; Director and Chair, Catholic High Schools of the Diocese of Pittsburgh, Inc.; Director, Pennsylvania Bar Institute; Regent, St. Vincent Seminary; and Director and Chair, North Catholic High School, Inc. |
Charles F. Mansfield, Jr. Birth Date: April 10, 1945 Trustee Indefinite Term Began serving: January 1999 | Principal Occupations: Director or Trustee of the Federated Fund Family; Management Consultant. Other Directorships Held: None. Qualifications: Mr. Mansfield has served as a Marine Corps officer and in several banking, business management, educational roles and directorship positions throughout his long career. He remains active as a Management Consultant. |
Thomas M. O'Neill Birth Date: June 14, 1951 Trustee Indefinite Term Began serving: August 2006 | Principal Occupations: Director or Trustee, Chair of the Audit Committee of the Federated Fund Family; Sole Proprietor, Navigator Management Company (investment and strategic consulting). Other Directorships Held: None. Qualifications: Mr. O'Neill has served in several business, mutual fund and financial management roles and directorship positions throughout his career. Mr. O'Neill serves as Director, Medicines for Humanity and Director, The Golisano Children's Museum of Naples, Florida. Mr. O'Neill previously served as Chief Executive Officer and President, Managing Director and Chief Investment Officer, Fleet Investment Advisors; President and Chief Executive Officer, Aeltus Investment Management, Inc.; General Partner, Hellman, Jordan Management Co., Boston, MA; Chief Investment Officer, The Putnam Companies, Boston, MA; Credit Analyst and Lending Officer, Fleet Bank; Director and Consultant, EZE Castle Software (investment order management software); and Director, Midway Pacific (lumber). |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
P. Jerome Richey Birth Date: February 23, 1949 Trustee Indefinite Term Began serving: October 2013 | Principal Occupations: Director or Trustee of the Federated Fund Family; Management Consultant; formerly, Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh and Executive Vice President and Chief Legal Officer, CNX Resources Corporation (formerly known as CONSOL Energy Inc.). Other Directorships Held: None. Qualifications: Mr. Richey has served in several business and legal management roles and directorship positions throughout his career. Mr. Richey most recently held the positions of Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh. Mr. Richey previously served as Chairman of the Board, Epilepsy Foundation of Western Pennsylvania and Chairman of the Board, World Affairs Council of Pittsburgh. Mr. Richey previously served as Chief Legal Officer and Executive Vice President, CNX Resources Corporation (formerly known as CONSOL Energy Inc.); and Board Member, Ethics Counsel and Shareholder, Buchanan Ingersoll & Rooney PC (a law firm). |
John S. Walsh Birth Date: November 28, 1957 Trustee Indefinite Term Began serving: January 1999 | Principal Occupations: Director or Trustee, and Chair of the Board of Directors or Trustees, of the Federated Fund Family; President and Director, Heat Wagon, Inc. (manufacturer of construction temporary heaters); President and Director, Manufacturers Products, Inc. (distributor of portable construction heaters); President, Portable Heater Parts, a division of Manufacturers Products, Inc. Other Directorships Held: None. Qualifications: Mr. Walsh has served in several business management roles and directorship positions throughout his career. Mr. Walsh previously served as Vice President, Walsh & Kelly, Inc. (paving contractors). |
Name Birth Date Address Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
Lori A. Hensler Birth Date: January 6, 1967 TREASURER Officer since: April 2013 | Principal Occupations: Principal Financial Officer and Treasurer of the Federated Fund Family; Senior Vice President, Federated Administrative Services; Financial and Operations Principal for Federated Securities Corp. and Edgewood Services, Inc.; and Assistant Treasurer, Federated Investors Trust Company. Ms. Hensler has received the Certified Public Accountant designation. Previous Positions: Controller of Federated Investors, Inc.; Senior Vice President and Assistant Treasurer, Federated Investors Management Company; Treasurer, Federated Investors Trust Company; Assistant Treasurer, Federated Administrative Services, Federated Administrative Services, Inc., Federated Securities Corp., Edgewood Services, Inc., Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company, Passport Research, Ltd., and Federated MDTA, LLC; Financial and Operations Principal for Federated Securities Corp., Edgewood Services, Inc. and Southpointe Distribution Services, Inc. |
Peter J. Germain Birth Date: September 3, 1959 CHIEF LEGAL OFFICER, SECRETARY and EXECUTIVE VICE PRESIDENT Officer since: January 2005 | Principal Occupations: Mr. Germain is Chief Legal Officer, Secretary and Executive Vice President of the Federated Fund Family. He is General Counsel, Chief Legal Officer, Secretary and Executive Vice President, Federated Investors, Inc.; Trustee and Senior Vice President, Federated Investors Management Company; Trustee and President, Federated Administrative Services; Director and President, Federated Administrative Services, Inc.; Director and Vice President, Federated Securities Corp.; Director and Secretary, Federated Private Asset Management, Inc.; Secretary, Federated Shareholder Services Company; and Secretary, Retirement Plan Service Company of America. Mr. Germain joined Federated in 1984 and is a member of the Pennsylvania Bar Association. Previous Positions: Deputy General Counsel, Special Counsel, Managing Director of Mutual Fund Services, Federated Investors, Inc.; Senior Vice President, Federated Services Company; and Senior Corporate Counsel, Federated Investors, Inc. |
Stephen Van Meter Birth Date: June 5, 1975 CHIEF COMPLIANCE OFFICER AND SENIOR VICE PRESIDENT Officer since: July 2015 | Principal Occupations: Senior Vice President and Chief Compliance Officer of the Federated Fund Family; Vice President and Chief Compliance Officer of Federated Investors, Inc. and Chief Compliance Officer of certain of its subsidiaries. Mr. Van Meter joined Federated in October 2011. He holds FINRA licenses under Series 3, 7, 24 and 66. Previous Positions: Mr. Van Meter previously held the position of Compliance Operating Officer, Federated Investors, Inc. Prior to joining Federated, Mr. Van Meter served at the United States Securities and Exchange Commission in the positions of Senior Counsel, Office of Chief Counsel, Division of Investment Management and Senior Counsel, Division of Enforcement. |
Name Birth Date Address Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
Stephen F. Auth Birth Date: September 13, 1956 101 Park Avenue 41st Floor New York, NY 10178 CHIEF INVESTMENT OFFICER Officer since: November 2002 | Principal Occupations: Stephen F. Auth is Chief Investment Officer of various Funds in the Federated Fund Family; Executive Vice President, Federated Investment Counseling, Federated Global Investment Management Corp. and Federated Equity Management Company of Pennsylvania. Previous Positions: Executive Vice President, Federated Investment Management Company and Passport Research, Ltd. (investment advisory subsidiary of Federated); Senior Vice President, Global Portfolio Management Services Division; Senior Vice President, Federated Investment Management Company and Passport Research, Ltd.; Senior Managing Director and Portfolio Manager, Prudential Investments. |
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
CUSIP 31420E205
CUSIP 31420E874
2018 ©Federated Investors, Inc.
Item 2. | Code of Ethics |
(a) As of the end of the period covered by this report, the registrant has adopted a code of ethics (the "Section 406 Standards for Investment Companies - Ethical Standards for Principal Executive and Financial Officers") that applies to the registrant's Principal Executive Officer and Principal Financial Officer; the registrant's Principal Financial Officer also serves as the Principal Accounting Officer.
(c) There was no amendment to the registrant’s code of ethics described in Item 2(a) above during the period covered by the report.
(d) There was no waiver granted, either actual or implicit, from a provision to the registrant’s code of ethics described in Item 2(a) above during the period covered by the report.
(e) Not Applicable
(f)(3) The registrant hereby undertakes to provide any person, without charge, upon request, a copy of the code of ethics. To request a copy of the code of ethics, contact the registrant at 1-800-341-7400, and ask for a copy of the Section 406 Standards for Investment Companies - Ethical Standards for Principal Executive and Financial Officers.
Item 3. Audit Committee Financial Expert
The registrant's Board has determined that each of the following members of the Board's Audit Committee is an “audit committee financial expert,” and is "independent," for purposes of this Item: John T. Collins, G. Thomas Hough and Thomas M. O'Neill.
Item 4. | Principal Accountant Fees and Services |
(a) Audit Fees billed to the registrant for the two most recent fiscal years:
Fiscal year ended 2018 - $54,400
Fiscal year ended 2017 - $53,400
(b) Audit-Related Fees billed to the registrant for the two most recent fiscal years:
Fiscal year ended 2018 - $0
Fiscal year ended 2017 - $0
Amount requiring approval of the registrant’s audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $0 and $0 respectively.
(c) Tax Fees billed to the registrant for the two most recent fiscal years:
Fiscal year ended 2018 - $0
Fiscal year ended 2017 - $0
Amount requiring approval of the registrant’s audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $0 and $0 respectively.
(d) All Other Fees billed to the registrant for the two most recent fiscal years:
Fiscal year ended 2018 - $0
Fiscal year ended 2017 - $0
Amount requiring approval of the registrant’s audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $24,438 and $25,226 respectively. Fiscal year ended 2018- Service fee for analysis of potential Passive Foreign Investment Company holdings. Fiscal year ended 2017- Service fee for analysis of potential Passive Foreign Investment Company holdings.
(e)(1) Audit Committee Policies regarding Pre-approval of Services.
The Audit Committee is required to pre-approve audit and non-audit services performed by the independent auditor in order to assure that the provision of such services do not impair the auditor’s independence. Unless a type of service to be provided by the independent auditor has received general pre-approval, it will require specific pre-approval by the Audit Committee. Any proposed services exceeding pre-approved cost levels will require specific pre-approval by the Audit Committee.
Certain services have the general pre-approval of the Audit Committee. The term of the general pre-approval is 12 months from the date of pre-approval, unless the Audit Committee specifically provides for a different period. The Audit Committee will annually review the services that may be provided by the independent auditor without obtaining specific pre-approval from the Audit Committee and may grant general pre-approval for such services. The Audit Committee will revise the list of general pre-approved services from time to time, based on subsequent determinations. The Audit Committee will not delegate its responsibilities to pre-approve services performed by the independent auditor to management.
The Audit Committee has delegated pre-approval authority to its Chairman. The Chairman will report any pre-approval decisions to the Audit Committee at its next scheduled meeting. The Committee will designate another member with such pre-approval authority when the Chairman is unavailable.
AUDIT SERVICES
The annual Audit services engagement terms and fees will be subject to the specific pre-approval of the Audit Committee. The Audit Committee must approve any changes in terms, conditions and fees resulting from changes in audit scope, registered investment company (RIC) structure or other matters.
In addition to the annual Audit services engagement specifically approved by the Audit Committee, the Audit Committee may grant general pre-approval for other Audit Services, which are those services that only the independent auditor reasonably can provide. The Audit Committee has pre-approved certain Audit services, all other Audit services must be specifically pre-approved by the Audit Committee.
AUDIT-RELATED SERVICES
Audit-related services are assurance and related services that are reasonably related to the performance of the audit or review of the Company’s financial statements or that are traditionally performed by the independent auditor. The Audit Committee believes that the provision of Audit-related services does not impair the independence of the auditor, and has pre-approved certain Audit-related services, all other Audit-related services must be specifically pre-approved by the Audit Committee.
TAX SERVICES
The Audit Committee believes that the independent auditor can provide Tax services to the Company such as tax compliance, tax planning and tax advice without impairing the auditor’s independence. However, the Audit Committee will not permit the retention of the independent auditor in connection with a transaction initially recommended by the independent auditor, the purpose of which may be tax avoidance and the tax treatment of which may not be supported in the Internal Revenue Code and related regulations. The Audit Committee has pre-approved certain Tax services, all Tax services involving large and complex transactions must be specifically pre-approved by the Audit Committee.
ALL OTHER SERVICES
With respect to the provision of services other than audit, review or attest services the pre-approval requirement is waived if:
(1) | The aggregate amount of all such services provided constitutes no more than five percent of the total amount of revenues paid by the registrant, the registrant’s adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant to its accountant during the fiscal year in which the services are provided; |
(2) | Such services were not recognized by the registrant, the registrant’s adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant at the time of the engagement to be non-audit services; and |
(3) | Such services are promptly brought to the attention of the Audit Committee of the issuer and approved prior to the completion of the audit by the Audit Committee or by one or more members of the Audit Committee who are members of the board of directors to whom authority to grant such approvals has been delegated by the Audit Committee. |
The Audit Committee may grant general pre-approval to those permissible non-audit services classified as All Other services that it believes are routine and recurring services, and would not impair the independence of the auditor.
The SEC’s rules and relevant guidance should be consulted to determine the precise definitions of prohibited non-audit services and the applicability of exceptions to certain of the prohibitions.
PRE-APPROVAL FEE LEVELS
Pre-approval fee levels for all services to be provided by the independent auditor will be established annually by the Audit Committee. Any proposed services exceeding these levels will require specific pre-approval by the Audit Committee.
PROCEDURES
Requests or applications to provide services that require specific approval by the Audit Committee will be submitted to the Audit Committee by both the independent auditor and the Principal Accounting Officer and/or Internal Auditor, and must include a joint statement as to whether, in their view, the request or application is consistent with the SEC’s rules on auditor independence.
(e)(2) Percentage of services identified in items 4(b) through 4(d) that were approved by the registrants audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X:
4(b)
Fiscal year ended 2018 – 0%
Fiscal year ended 2017 - 0%
Percentage of services provided to the registrants investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were approved by the registrants audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, 0% and 0% respectively.
4(c)
Fiscal year ended 2018 – 0%
Fiscal year ended 2017 – 0%
Percentage of services provided to the registrants investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were approved by the registrants audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, 0% and 0% respectively.
4(d)
Fiscal year ended 2018 – 0%
Fiscal year ended 2017 – 0%
Percentage of services provided to the registrants investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were approved by the registrants audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, 0% and 0% respectively.
(f) | NA |
(g) | Non-Audit Fees billed to the registrant, the registrant’s investment adviser, and certain entities controlling, controlled by or under common control with the investment adviser: |
Fiscal year ended 2018 - $871,365
Fiscal year ended 2017 - $122,455
(h) | The registrant’s Audit Committee has considered that the provision of non-audit services that were rendered to the registrant’s adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence. |
The registrant’s management and Audit Committee continue to believe that the registrant’s registered public accounting firm, Ernst & Young LLP (“EY”), has the ability to exercise objective and impartial judgment on all issues encompassed within their audit services. EY is required to make a determination that it satisfies certain independence requirements under the federal securities laws. Like other registrants, there is a risk that activities or relationships of EY, or its partners or employees, can prevent a determination from being made that it satisfies such independence requirements with respect to the registrant, which could render it ineligible to serve as the registrant’s independent public accountant.
In its required communications to the Audit Committee of the registrant’s Board, EY informed the Audit Committee that EY and/ or covered person professionals within EY maintain lending relationships with certain owners of greater than 10% of the shares of the registrant and/or certain investment companies within the “investment company complex” as defined under Rule 2-01(f)(14) of Regulation S-X, which are affiliates of the registrant. EY has advised the Audit Committee that these lending relationships implicate Rule 2-01(c)(1)(ii)(A) of Regulation S-X (referred to as the “Loan Rule”). The Loan Rule prohibits an independent public accountant, or covered person professionals at such firm, from having a financial relationship (such as a loan) with a lender that is a record or beneficial owner of more than 10% of an audit client’s equity securities. For purposes of the Loan Rule, audit clients include the registrant, as well as all registered investment companies advised by advisory subsidiaries of Federated Investors, Inc., the Adviser (for which EY serves as independent public accountant), and their respective affiliates (collectively, the “Federated Fund Complex”).
EY informed the Audit Committee that EY believes that these lending relationships described above do not and will not impair EY’s ability to exercise objective and impartial judgment in connection with the audits of the financial statements for the registrant and a reasonable investor with knowledge of all relevant facts and circumstances would conclude that EY has been and is capable of objective and impartial judgment on all issues encompassed within EY’s audits.
On June 20, 2016, the Division of Investment Management of the Securities and Exchange Commission (“SEC”) issued a no-action letter to another mutual fund complex (see Fidelity Management & Research Company et al., No-Action Letter) related to similar Loan Rule matters as those described above (the “Letter”). In the Letter, the SEC Staff confirmed that it would not recommend enforcement action against an investment company that relied on the audit services performed by an independent public accountant where the Loan Rule was implicated in certain specified circumstances provided that: (1) the auditor has complied with PCAOB Rule 3526(b)(1) and 3526(b)(2); (2) the Loan Rule is implicated because of lending relationships; and (3) notwithstanding such lending relationships that implicate the Loan Rule, the auditor has concluded that it is objective and impartial with respect to the issues encompassed within its engagement as auditor of the funds. The circumstances described in the Letter are substantially similar to the circumstances that implicated the Loan Rule with respect to EY and the registrant. On September 22, 2017, the SEC extended the expiration of the Letter until the effectiveness of any amendments to the Loan Rule designed to address the concerns in the Letter. On May 2, 2018, the SEC proposed amendments to the Loan Rule, which, if adopted as proposed, would refocus the analysis that must be conducted to determine whether an auditor is independent when the auditor has a lending relationship with certain shareholders of an audit client at any time during an audit or professional engagement period.
Additionally, on July 18, 2018, EY informed the registrant that Rule 2-01(c)(1)(i)(A) of Regulation S-X (“Investment Rule”) also has been implicated since July 2, 2018. The Investment Rule prohibits public accounting firms, or covered person professionals and their immediate family members, from having certain direct financial investments in their audit clients and affiliated entities. EY informed the registrant that a pension trust of a non-US affiliated entity of EY had previously made, and as of July 18, 2018 maintained, an investment in a fund (“Hermes Fund”) managed by Hermes Alternative Investment Management Limited (“HAIML”), which is a wholly owned subsidiary of Hermes Fund Managers Limited (“HFML”). The pension trust’s investment in the Hermes Fund involved the Investment Rule because an indirect wholly owned subsidiary of Federated Investors, Inc. (an affiliate of the registrant’s adviser), acquired a 60% majority interest in HFML on July 2, 2018, effective July 1, 2018 (“Hermes Acquisition”). The pension trust first invested in the Hermes Fund in 2007, well prior to the Hermes Acquisition. The pension trust’s investment represented less than 3.3% of the Hermes Fund’s assets as of July 18, 2018. EY subsequently informed the registrant that EY’s affiliated entity’s pension trust had submitted an irrevocable redemption notice to redeem its investment in the Hermes Fund. Pursuant to the redemption terms of the Hermes Fund, the pension trust’s redemption would not be effected until December 26, 2018 at the earliest. The redemption notice could not be revoked by the pension trust. The redemption notice would only be revoked by HAIML, as the adviser for Hermes Fund, if, and to the extent, the pension trust successfully sold its interest in the Hermes Fund in a secondary market transaction. EY also informed the registrant that the pension trust simultaneously submitted a request to HAIML to conduct a secondary market auction for the pension trust’s interests in the Hermes Fund. In addition, the only voting rights shareholders of the Hermes Fund had under the Hermes Fund’s governing documents relate to key appointments, including the election of the non-executive members of the Hermes Fund’s committee, the appointment of the Hermes Fund’s trustee and the adoption of the Hermes Fund’s financial statements. The next meeting of the Hermes Fund at which shareholders could vote on the election of members to the Hermes Fund’s committee was not until June 2019, and the size of the pension trust’s investment in the Hermes Fund would not allow it to unilaterally elect a committee member or the trustee. EY does not audit the Hermes Fund and the Hermes Fund’s assets and operations are not consolidated in the registrant’s financial statements that are subject to audit by EY. Finally, no member of EY’s audit team that provides audit services to the registrant is a beneficiary of EY’s affiliated entity’s pension trust. Management reviewed this matter with the registrant’s Audit Committee, and, based on that review, as well as a letter from EY to the registrant dated July 26, 2018, in which EY indicated that it had determined that this matter does not impair EY’s ability to exercise objective and impartial judgment in connection with the audit of the financial statements for the registrant and the belief that a reasonable investor with knowledge of all relevant facts and circumstances would conclude that EY has been and is capable of exercising objective and impartial judgment on all issues encompassed within EY’s audit, the registrant’s management and Audit Committee made a determination that such matter does not impair EY’s ability to exercise objective and impartial judgment in connection with the audit of the financial statements for the registrant. On August 29, 2018, EY informed the registrant that EY’s affiliated entity’s pension trust sold its entire interest in the Hermes Fund, effective as of August 29, 2018.
If it were to be determined that, with respect to the Loan Rule, the relief available under the Letter was improperly relied upon, or that the independence requirements under the federal securities laws were not complied with regarding the registrant, for certain periods, and/or given the implication of the Investment Rule for certain periods, any of the registrant’s filings with the SEC which contain financial statements of the registrant for such periods may be determined not to be consistent with or comply with applicable federal securities laws, the registrant’s ability to offer shares under its current registration statement may be impacted, and certain financial reporting and/or other covenants with, and representations and warranties to, the registrant’s lender under its committed line of credit may be impacted. Such events could have a material adverse effect on the registrant and the Federated Fund Complex.
Item 5. | Audit Committee of Listed Registrants |
Not Applicable
Item 6. | Schedule of Investments |
(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this form.
(b) Not Applicable; Fund had no divestments during the reporting period covered since the previous Form N-CSR filing.
Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies |
Not Applicable
Item 8. | Portfolio Managers of Closed-End Management Investment Companies |
Not Applicable
Item 9. | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers |
Not Applicable
Item 10. | Submission of Matters to a Vote of Security Holders |
No Changes to Report
Item 11. | Controls and Procedures |
(a) The registrant’s President and Treasurer have concluded that the
registrant’s disclosure controls and procedures (as defined in rule 30a-3(c) under the Act) are effective in design and operation and are sufficient to form the basis of the certifications required by Rule 30a-(2) under the Act, based on their evaluation of these disclosure controls and procedures within 90 days of the filing date of this report on Form N-CSR.
(b) There were no changes in the registrant’s internal control over financial reporting (as defined in rule 30a-3(d) under the Act) during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies |
Not Applicable
Item 13. | Exhibits |
(a)(1) Code of Ethics- Not Applicable to this Report.
(a)(2) Certifications of Principal Executive Officer and Principal Financial Officer.
(a)(3) Not Applicable.
(b) Certifications pursuant to 18 U.S.C. Section 1350.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant Federated Index Trust
By /S/ Lori A. Hensler
Lori A. Hensler, Principal Financial Officer
Date December 21, 2018
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By /S/ J. Christopher Donahue
J. Christopher Donahue, Principal Executive Officer
Date December 21, 2018
By /S/ Lori A. Hensler
Lori A. Hensler, Principal Financial Officer
Date December 21, 2018