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Federated Index Trust

Filed: 26 Dec 19, 8:18am

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:10/31/19

 

 

Date of Reporting Period:10/31/19

 

 

 

 

 

 

 

 

Item 1.Reports to Stockholders

 

 

 

 

 

Annual Shareholder Report
October 31, 2019
Share Class | TickerC | MXCCXR | FMXKXInstitutional | FISPXService | FMXSX

Federated Max-Cap Index Fund
Fund Established 1990

A Portfolio of Federated Index Trust
IMPORTANT NOTICE REGARDING REPORT DELIVERY
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund's shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund or your financial intermediary electronically by contacting your financial intermediary (such as a broker-dealer or bank); other shareholders may call the Fund at 1-800-341-7400, Option 4.
You may elect to receive all future reports in paper free of charge. You can inform the Fund or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by contacting your financial intermediary (such as a broker-dealer or bank); other shareholders may call the Fund at 1-800-341-7400, Option 4. Your election to receive reports in paper will apply to all funds held with the Fund complex or your financial intermediary.

Not FDIC Insured ■ May Lose Value ■ No Bank Guarantee

J. Christopher
Donahue
President
Federated Max-Cap Index Fund
Letter from the President
Dear Valued Shareholder,
I am pleased to present the Annual Shareholder Report for your fund covering the period from November 1, 2018 through October 31, 2019. This report includes Management's Discussion of Fund Performance, a complete listing of your fund's holdings, performance information and financial statements along with other important fund information.
In addition, our website, FederatedInvestors.com, offers easy access to Federated resources that include timely fund updates, economic and market insights from our investment strategists, and financial planning tools.
Thank you for investing with Federated. I hope you find this information useful and look forward to keeping you informed.
Sincerely,
J. Christopher Donahue, President
         


Management's Discussion of Fund Performance (unaudited)
The total return of Federated Max-Cap Index Fund (the “Fund”), based on net asset value for the 12-month reporting period ended October 31, 2019, was 12.59% for Class C Shares, 13.00% for Class R Shares,13.76% for Institutional Shares and 13.41% for Service Shares. The total return of the Standard & Poor's 500® Index (S&P 500),1 the Fund's broad-based securities market index, was 14.33% for the same period. The Fund's total return for the most recently completed fiscal year reflected actual cash flows, transaction costs and other expenses which were not reflected in the total return of the S&P 500.
The Fund normally invests its assets primarily in the common stocks included in the S&P 500. Under normal circumstances, Fund management will also use enhanced strategies (discussed further below) in an attempt to improve the performance of the portfolio relative to the S&P 500 to compensate for Fund expenses and tracking error (difference in the Fund's performance relative to the performance of the S&P 500). During the reporting period, the Fund's investment strategy focused on the use of enhanced strategies, which was the most significant factor affecting the Fund's performance relative to the S&P 500.
The following discussion will focus on the performance of the Fund's Institutional Shares.
MARKET OVERVIEW
During the reporting period, the domestic equity market had positive performance as evidenced by the 13.66% return of the S&P Composite 1500® Index (S&P 1500).2 The large-cap portion of the S&P 1500, as represented by the S&P 500, led the market with a 14.33% return for the reporting period. The largest stocks in the S&P 1500, as represented by the S&P 100® Index,3 followed with a return of 14.06%. Mid-cap stock performance trailed its larger peers as the S&P Mid-Cap 400® Index4 returned 9.02%. Small-cap stocks in the S&P 1500, as represented by the S&P SmallCap 600® Index,5 had the worst performance of the market cap segments, returning 3.24% for the reporting period. Value stocks slightly outperformed growth stocks as the S&P Composite 1500® Value Index6 returned 13.69% versus the 13.67% return of the S&P Composite 1500® Growth Index.7
Within the S&P 500, sector8 performance was mixed during the reporting period. Utilities, Information Technology, Consumer Staples, Real Estate, Health Care, Consumer Discretionary, Industrials, Materials, Communication Services and Financials all had positive performance for the reporting period while Energy had negative performance. Real Estate led the way, advancing 26.73%, followed by Utilities (23.71%) and Information Technology (22.59%). The Energy sector posted the weakest results (-11.04%), followed by Health Care (8.63%) and Financials (11.72%). Microsoft Corporation (Information
Annual Shareholder Report
1

Technology), Facebook, Inc. Class A (Communication Services) and Procter & Gamble Company (Consumer Staples) posted the strongest contribution to performance in the S&P 500, while Exxon Mobil Corporation (Energy), Altria Group Inc (Consumer Staples) and PG&E Corporation (Utilities) detracted the most from the performance of the S&P 500 for the reporting period.
Enhanced Strategies
Portfolio management of the enhanced strategies of the Fund consisted of overweighting and underweighting stocks relative to the S&P 500 based upon Fund management's quantitative analysis of the securities. During the reporting period, the Fund underperformed the S&P 500 by 0.57% on a net basis and underperformed the S&P 500 by 0.14% on a gross basis. This underperformance on a gross basis was primarily due to the underperformance of the quantitative strategy. The Fund invested in a stock-based strategy that also utilized S&P 500 futures9 to provide equity exposure on the Fund's cash balances. The S&P 500 had positive performance for the reporting period; therefore, the trading of futures contracts had a positive effect on the Fund's performance.
1Please see the footnotes to the line graphs below for definitions of, and further information about, the S&P 500.
2The S&P Composite 1500® Index combines three leading indices, the S&P 500® Index, the S&P MidCap 400® Index and the S&P SmallCap 600® Index to cover approximately 90% of the U.S. market capitalization.*
3The 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.*
4The 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.*
5The 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.*
6The 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.*
7The 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.*
8Sector classifications are based upon the classification of the Standard & Poor's Global Industry Classification Standard.
9The 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.
Annual Shareholder Report
2

FUND PERFORMANCE AND GROWTH OF A $10,000 INVESTMENT
The graph below illustrates the hypothetical investment of $10,0001 in the Federated Max-Cap Index Fund from October 31, 2009 to October 31, 2019, compared to the Standard & Poor's 500® Index (S&P 500).2The Average Annual Total Return table below shows returns for each class averaged over the stated periods.
Growth of a $10,000 Investment
Growth of $10,000 as of October 31, 2019
Federated Max-Cap Index Fund -Institutional SharesClass C SharesNAS&P 500
FFNAI
10/31/200910,00010,00010,000
10/31/201011,63811,51111,652
10/31/201112,56412,30212,594
10/31/201214,41613,95414,509
10/31/201318,38117,60918,452
10/31/201421,49420,38121,638
10/31/201522,54121,13822,764
10/31/201623,50921,81323,790
10/31/201729,04626,66029,412
10/31/201831,12728,28431,573
10/31/201935,40831,84536,096
41 graphic description end -->
■ Total returns shown for Class C Shares include the maximum contingent deferred sales charge of 1.00%, as applicable.
    
The Fund offers multiple share classes whose performance may be greater than or less than its other share class(es) due to differences in sales charges and expenses. See the Average Annual Total Return table below for the returns of additional classes not shown in the line graph above.
Annual Shareholder Report
3

Average Annual Total Returnsfor the Period Ended 10/31/2019
(returns reflect all applicable sales charges and contingent deferred sales charges as specified below in footnote #1)
 1 Year5 Years10 Years
Class C Shares11.81%9.34%12.28%
Class R Shares13.00%9.69%12.64%
Institutional Shares13.76%10.50%13.48%
Service Shares13.41%10.16%13.14%
S&P 50014.33%10.78%13.70%
Performance data quoted represents past performance which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For current to the most recent month-end performance and after-tax returns, visit FederatedInvestors.com or call 1-800-341-7400. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Mutual funds are not obligations of or guaranteed by any bank and are not federally insured.
1Represents 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.
2The 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.
Annual Shareholder Report
4

Portfolio of Investments Summary Table (unaudited)
At October 31, 2019, the Fund's sector composition1 for its equity securities investments was as follows:
SectorPercentage of
Total Net Assets
Information Technology21.9%
Health Care13.8%
Financials12.7%
Communication Services10.3%
Consumer Discretionary9.9%
Industrials9.1%
Consumer Staples7.3%
Energy4.3%
Utilities3.4%
Real Estate3.1%
Materials2.6%
Derivative Contracts2,30.0%
Cash Equivalents41.6%
Other Assets and Liabilities—Net3,50.0%
TOTAL6100.0%
1Except for Derivative Contracts, Cash Equivalents 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.
2Based 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.
3Represents less than 0.1%.
4Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements other than those representing securities lending collateral.
5Assets, other than investments in securities and derivative contracts, less liabilities. See Statement of Assets and Liabilities.
6The 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 100.0%.
Annual Shareholder Report
5

Portfolio of Investments
October 31, 2019
Shares  
Value
 1COMMON STOCKS—98.4% 
  Communication Services—10.3% 
6,656 Activision Blizzard, Inc.$372,936
3,7032Alphabet, Inc., Class A4,661,336
3,7362Alphabet, Inc., Class C4,707,771
90,251 AT&T, Inc.3,473,761
4,757 CBS Corp., Class B171,442
14,493 CenturyLink, Inc.187,539
2,3512Charter Communications, Inc.1,099,939
55,215 Comcast Corp., Class A2,474,736
1,3712Discovery, Inc., Class A36,955
3,6582Discovery, Inc., Class C92,328
2,0972DISH Network Corp., Class A72,095
2,0902Electronic Arts, Inc.201,476
29,6002Facebook, Inc.5,672,840
3,887 Fox Corp., Class A124,539
1,519 Fox Corp., Class B47,454
11,977 Interpublic Group of Cos., Inc.260,500
4,8582NetFlix, Inc.1,396,238
3,649 News Corp., Inc., Class A50,028
430 News Corp., Inc., Class B6,072
2,698 Omnicom Group, Inc.208,259
3,5732T-Mobile USA, Inc.295,344
2,5712Take-Two Interactive Software, Inc.309,420
1,2032TripAdvisor, Inc.48,601
9,0262Twitter, Inc.270,509
51,464 Verizon Communications, Inc.3,112,028
10,456 Viacom, Inc., Class B225,431
21,962 Walt Disney Co.2,853,303
  TOTAL32,432,880
  Consumer Discretionary—9.9% 
5,1362Amazon.com, Inc.9,124,926
3,186 Aptiv PLC285,306
4352AutoZone, Inc.497,805
2,856 Best Buy Co., Inc.205,146
2,893 Block (H&R), Inc.72,296
5302Booking Holdings, Inc.1,085,848
Annual Shareholder Report
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Shares  
Value
 1COMMON STOCKS—continued 
  Consumer Discretionary—continued 
3,229 BorgWarner, Inc.$134,585
2592CarMax, Inc.24,131
1,757 Carnival Corp.75,358
2772Chipotle Mexican Grill, Inc.215,550
3,541 D. R. Horton, Inc.185,442
1,400 Darden Restaurants, Inc.157,178
2,971 Dollar General Corp.476,370
2,6402Dollar Tree, Inc.291,456
8,953 eBay, Inc.315,593
2,865 Expedia Group, Inc.391,531
45,617 Ford Motor Co.391,850
3,577 Garmin Ltd.335,344
15,050 General Motors Co.559,258
1,592 Genuine Parts Co.163,307
6,575 Hanesbrands, Inc.100,006
2,815 Harley-Davidson, Inc.109,532
1,191 Hasbro, Inc.115,896
3,213 Hilton Worldwide Holdings, Inc.311,533
13,357 Home Depot, Inc.3,133,285
2,353 Kohl's Corp.120,615
11,012 L Brands, Inc.187,644
4,171 Las Vegas Sands Corp.257,935
1,697 Leggett and Platt, Inc.87,056
2,932 Lennar Corp., Class A174,747
4,2992LKQ Corp.146,123
9,480 Lowe's Cos., Inc.1,058,063
4,702 Macy's, Inc.71,282
3,531 Marriott International, Inc., Class A446,848
9,210 McDonald's Corp.1,811,607
5,806 MGM Resorts International165,471
9852Mohawk Industries, Inc.141,229
13,293 Newell Brands, Inc.252,168
15,773 Nike, Inc., Class B1,412,472
2,054 Nordstrom, Inc.73,739
5,5142Norwegian Cruise Line Holdings Ltd.279,891
422NVR, Inc.152,737
8642O'Reilly Automotive, Inc.376,281
2,308 Pulte Group, Inc.90,566
Annual Shareholder Report
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Shares  
Value
 1COMMON STOCKS—continued 
  Consumer Discretionary—continued 
1,268 PVH Corp.$110,519
888 Ralph Lauren Corp.85,301
4,564 Ross Stores, Inc.500,534
751 Royal Caribbean Cruises, Ltd.81,731
16,425 Starbucks Corp.1,388,898
6,009 Target Corp.642,422
15,437 TJX Cos., Inc.889,943
1,136 Tractor Supply Co.107,943
1,3922Ulta Beauty, Inc.324,545
6,1192Under Armour, Inc., Class A126,357
6,5652Under Armour, Inc., Class C121,453
2,257 V.F. Corp.185,729
575 Whirlpool Corp.87,469
1,309 Wynn Resorts Ltd.158,834
3,479 Yum! Brands, Inc.353,849
  TOTAL31,230,533
  Consumer Staples—7.3% 
19,184 Altria Group, Inc.859,251
3,105 Archer-Daniels-Midland Co.130,534
4,632 Brown-Forman Corp., Class B303,489
1,736 Campbell Soup Co.80,394
2,680 Church and Dwight, Inc.187,439
1,748 Clorox Co.258,162
11,004 Colgate-Palmolive Co.754,874
6,945 Conagra Brands, Inc.187,862
2,208 Constellation Brands, Inc., Class A420,249
5,311 Costco Wholesale Corp.1,577,951
5,375 Coty, Inc. - CL A62,834
2,566 Estee Lauder Cos., Inc., Class A477,969
6,870 General Mills, Inc.349,408
2,836 Hershey Foods Corp.416,523
3,412 Hormel Foods Corp.139,517
3,545 Kellogg Co.225,214
3,095 Kimberly-Clark Corp.411,264
13,124 Kraft Heinz Co./The424,299
10,642 Kroger Co.262,219
1,574 Lamb Weston Holdings, Inc.122,835
1,324 McCormick & Co., Inc.212,754
Annual Shareholder Report
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Shares  
Value
 1COMMON STOCKS—continued 
  Consumer Staples—continued 
17,208 Mondelez International, Inc.$902,560
5,2882Monster Beverage Corp.296,815
16,091 PepsiCo, Inc.2,207,202
21,310 Philip Morris International, Inc.1,735,486
30,652 Procter & Gamble Co.3,816,481
1,129 Smucker (J.M.) Co.119,313
6,714 Sysco Corp.536,247
47,973 The Coca-Cola Co.2,611,170
3,282 Tyson Foods, Inc., Class A271,717
9,909 Walgreens Boots Alliance, Inc.542,815
17,545 WalMart Inc.2,057,327
  TOTAL22,962,174
  Energy—4.3% 
5,189 Apache Corp.112,394
5,766 Baker Hughes a GE Co. LLC123,392
13,611 Cabot Oil & Gas Corp., Class A253,709
23,343 Chevron Corp.2,711,056
1,495 Cimarex Energy Co.63,119
2,900 Concho Resources, Inc.195,808
16,238 ConocoPhillips896,338
5,346 Devon Energy Corp.108,417
430 Diamondback Energy, Inc.36,877
7,527 EOG Resources, Inc.521,696
50,000 Exxon Mobil Corp.3,378,500
3,446 Halliburton Co.66,335
4,921 Helmerich & Payne, Inc.184,537
5,531 Hess Corp.363,663
1,867 HollyFrontier Corp.102,573
31,410 Kinder Morgan, Inc.627,572
9,949 Marathon Oil Corp.114,712
8,160 Marathon Petroleum Corp.521,832
5,040 National Oilwell Varco, Inc.114,005
5,227 Noble Energy, Inc.100,672
11,691 Occidental Petroleum Corp.473,485
3,041 ONEOK, Inc.212,353
5,584 Phillips 66652,323
929 Pioneer Natural Resources, Inc.114,286
17,852 Schlumberger Ltd.583,582
Annual Shareholder Report
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Shares  
Value
 1COMMON STOCKS—continued 
  Energy—continued 
3,890 TechnipFMC PLC$76,750
5,408 Valero Energy Corp.524,468
15,688 Williams Cos., Inc.349,999
  TOTAL13,584,453
  Financials—12.7% 
969 Affiliated Managers Group77,404
8,537 Aflac, Inc.453,827
4,339 Allstate Corp.461,756
9,685 American Express Co.1,135,857
10,396 American International Group, Inc.550,572
1,657 Ameriprise Financial, Inc.250,025
2,747 Aon PLC530,610
510 Assurant, Inc.64,296
103,493 Bank of America Corp.3,236,226
11,030 Bank of New York Mellon Corp.515,652
6,528 BB&T Corp.346,310
23,4222Berkshire Hathaway, Inc., Class B4,979,049
1,516 BlackRock, Inc.699,937
5,601 Capital One Financial Corp.522,293
1,112 Cboe Global Markets, Inc.128,047
10,752 Charles Schwab Corp.437,714
5,624 Chubb Ltd.857,210
1,602 Cincinnati Financial Corp.181,362
30,033 Citigroup, Inc.2,158,171
9,756 Citizens Financial Group, Inc.343,021
4,266 CME Group, Inc.877,729
4,168 Comerica, Inc.272,671
5,756 Discover Financial Services461,977
3,637 E*Trade Financial Corp.151,990
8,019 Fifth Third Bancorp233,193
461 First Republic Bank49,032
4,514 Franklin Resources, Inc.124,361
574 Gallagher (Arthur J.) & Co.52,360
911 Globe Life, Inc.88,668
4,052 Goldman Sachs Group, Inc.864,616
13,204 Huntington Bancshares, Inc.186,573
6,576 Intercontinental Exchange, Inc.620,248
39,648 JPMorgan Chase & Co.4,952,828
Annual Shareholder Report
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Shares  
Value
 1COMMON STOCKS—continued 
  Financials—continued 
12,544 KeyCorp$225,416
4,989 Lincoln National Corp.281,779
2,749 Loews Corp.134,701
1,842 M & T Bank Corp.288,328
913 Marketaxess Holdings, Inc.336,523
4,735 Marsh & McLennan Cos., Inc.490,641
13,017 MetLife, Inc.609,065
1,863 Moody's Corp.411,145
16,173 Morgan Stanley744,767
913 MSCI, Inc., Class A214,153
2,968 Northern Trust Corp.295,850
4,395 PNC Financial Services Group644,746
2,756 Principal Financial Group, Inc.147,115
7,608 Progressive Corp., OH530,278
5,092 Prudential Financial, Inc.464,085
1,729 Raymond James Financial, Inc.144,354
11,953 Regions Financial Corp.192,443
2,915 S&P Global, Inc.752,041
2,075 State Street Corp.137,095
5,253 SunTrust Banks, Inc.358,990
7292SVB Financial Group161,459
12,034 Synchrony Financial425,643
3,167 T. Rowe Price Group, Inc.366,739
1,920 The Hartford Financial Services Group, Inc.109,594
4,253 The Travelers Cos., Inc.557,398
17,406 U.S. Bancorp992,490
7,768 Unum Group213,931
50,023 Wells Fargo & Co.2,582,687
1,434 Willis Towers Watson PLC268,015
1,993 Zions Bancorporation, N.A.96,601
  TOTAL40,043,657
  Health Care—13.8% 
21,404 Abbott Laboratories1,789,588
20,358 AbbVie, Inc.1,619,479
1,3582Abiomed, Inc.281,894
3,419 Agilent Technologies, Inc.258,989
2,5772Alexion Pharmaceuticals, Inc.271,616
1,6002Align Technology, Inc.403,664
Annual Shareholder Report
11

Shares  
Value
 1COMMON STOCKS—continued 
  Health Care—continued 
3,855 Allergan PLC$678,904
1,914 AmerisourceBergen Corp.163,417
7,231 Amgen, Inc.1,542,011
3,150 Anthem, Inc.847,602
5,938 Baxter International, Inc.455,445
3,445 Becton Dickinson & Co.881,920
2,3452Biogen, Inc.700,475
13,5922Boston Scientific Corp.566,786
20,278 Bristol-Myers Squibb Co.1,163,349
3,875 Cardinal Health, Inc.191,619
8,5022Celgene Corp.918,471
5,4072Centene Corp.287,004
4,180 Cerner Corp.280,562
4,839 CIGNA Corp.863,568
1,121 Cooper Cos., Inc.326,211
16,221 CVS Health Corp.1,076,912
7,654 Danaher Corp.1,054,874
1,2492Davita, Inc.73,191
5,841 Dentsply Sirona, Inc.319,970
2,4192Edwards Lifesciences Corp.576,641
10,265 Eli Lilly & Co.1,169,697
15,690 Gilead Sciences, Inc.999,610
3,519 HCA Healthcare, Inc.469,927
1,3402Henry Schein, Inc.83,864
6,3662Hologic, Inc.307,541
1,112 Humana, Inc.327,150
4992IDEXX Laboratories, Inc.142,220
1,3072Illumina, Inc.386,245
4,1662Incyte Genomics, Inc.349,611
1,1302Intuitive Surgical, Inc.624,833
3,2422IQVIA Holdings, Inc.468,210
32,748 Johnson & Johnson4,324,046
1,3832Laboratory Corp. of America Holdings227,877
3,332 McKesson Corp.443,156
16,251 Medtronic PLC1,769,734
31,176 Merck & Co., Inc.2,701,712
2592Mettler-Toledo International, Inc.182,579
5,3302Mylan NV102,070
Annual Shareholder Report
12

Shares  
Value
 1COMMON STOCKS—continued 
  Health Care—continued 
1,505 PerkinElmer, Inc.$129,370
1,241 Perrigo Co. PLC65,798
68,414 Pfizer, Inc.2,625,045
1,950 Quest Diagnostics, Inc.197,438
9862Regeneron Pharmaceuticals, Inc.301,992
1,540 ResMed, Inc.227,797
3,814 Stryker Corp.824,854
479 Teleflex, Inc.166,409
4,830 Thermo Fisher Scientific, Inc.1,458,563
11,015 UnitedHealth Group, Inc.2,783,490
964 Universal Health Services, Inc., Class B132,511
1,0392Varian Medical Systems, Inc.125,522
2,2952Vertex Pharmaceuticals, Inc.448,627
1512Waters Corp.31,955
512WellCare Health Plans, Inc.15,127
2,309 Zimmer Biomet Holdings, Inc.319,173
7,119 Zoetis, Inc.910,662
  TOTAL43,438,577
  Industrials—9.1% 
7,271 3M Co.1,199,642
3,898 Alaska Air Group, Inc.270,638
850 Allegion PLC98,634
4,517 Ametek, Inc.413,983
6,524 Boeing Co.2,217,573
1,734 C.H. Robinson Worldwide, Inc.131,160
7,167 Caterpillar, Inc.987,613
942 Cintas Corp.253,087
2,1102Copart, Inc.174,370
12,004 CSX Corp.843,521
1,754 Cummins, Inc.302,530
3,699 Deere & Co.644,144
7,368 Delta Air Lines, Inc.405,829
1,482 Dover Corp.153,965
5,145 Eaton Corp. PLC448,181
8,049 Emerson Electric Co.564,637
402 Equifax, Inc.54,957
1,838 Expeditors International Washington, Inc.134,064
2,322 Fastenal Co.83,453
Annual Shareholder Report
13

Shares  
Value
 1COMMON STOCKS—continued 
  Industrials—continued 
3,158 FedEx Corp.$482,100
1,485 Flowserve Corp.72,527
5,872 Fortive Corp.405,168
2,163 Fortune Brands Home & Security, Inc.129,888
2,066 General Dynamics Corp.365,269
108,578 General Electric Co.1,083,608
8,733 Honeywell International, Inc.1,508,451
750 IDEX Corp.116,648
4,4882IHS Markit Ltd.314,250
3,446 Illinois Tool Works, Inc.580,927
2,728 Ingersoll-Rand PLC346,156
1,336 Jacobs Engineering Group, Inc.125,023
13,292 Johnson Controls International PLC575,942
1,007 Kansas City Southern Industries, Inc.141,766
3,468 L3Harris Technologies Inc.715,483
2,995 Lockheed Martin Corp.1,128,157
2,817 Masco Corp.130,286
5,532 Nielsen Holdings PLC111,525
3,101 Norfolk Southern Corp.564,382
2,348 Northrop Grumman Corp.827,623
4,420 PACCAR, Inc.336,185
1,598 Parker-Hannifin Corp.293,217
2,735 Pentair PLC113,421
2,660 Raytheon Co.564,479
2,251 Republic Services, Inc.196,985
1,630 Rockwell Automation, Inc.280,344
2,618 Rollins, Inc.99,772
1,712 Roper Technologies, Inc.576,876
2,091 Smith (A.O.) Corp.103,881
6,500 Southwest Airlines Co.364,845
1,934 Stanley Black & Decker Inc.292,672
3,432 Textron Inc.158,181
901 Transdigm Group, Inc.474,178
8,588 Union Pacific Corp.1,420,971
2,7862United Airlines Holdings, Inc.253,080
8,861 United Parcel Service, Inc.1,020,521
2,1792United Rentals, Inc.291,049
10,216 United Technologies Corp.1,466,813
Annual Shareholder Report
14

Shares  
Value
 1COMMON STOCKS—continued 
  Industrials—continued 
2,983 Verisk Analytics, Inc.$431,640
650 W.W. Grainger, Inc.200,746
2,107 Wabtec Corp.146,163
6,148 Waste Management, Inc.689,867
247 Xylem, Inc.18,942
  TOTAL28,901,988
  Information Technology—21.9% 
7,691 Accenture PLC1,426,065
5,9932Adobe, Inc.1,665,635
8,3012Advanced Micro Devices, Inc.281,653
3,7542Akamai Technologies, Inc.324,721
740 Alliance Data Systems Corp.74,000
3,552 Amphenol Corp., Class A356,372
4,286 Analog Devices, Inc.457,016
3352Ansys, Inc.73,750
52,440 Apple, Inc.13,044,974
10,786 Applied Materials, Inc.585,248
412Arista Networks, Inc.10,027
3,7072Autodesk, Inc.546,264
5,213 Automatic Data Processing, Inc.845,705
4,798 Broadcom, Inc.1,405,094
1,416 Broadridge Financial Solutions177,312
2,9922Cadence Design Systems, Inc.195,527
1,530 CDW Corp.195,702
52,547 Cisco Systems, Inc.2,496,508
1,834 Citrix Systems, Inc.199,649
4,383 Cognizant Technology Solutions Corp.267,100
9,722 Corning, Inc.288,063
9642F5 Networks, Inc.138,893
7,327 Fidelity National Information Services, Inc.965,406
6,7392Fiserv, Inc.715,277
9622FleetCor Technologies Inc.283,040
1,632 FLIR Systems, Inc.84,146
3,7082Fortinet Inc.302,425
142Gartner, Inc., Class A2,157
3,508 Global Payments, Inc.593,483
14,194 Hewlett Packard Enterprise Co.232,924
19,643 HP, Inc.341,199
Annual Shareholder Report
15

Shares  
Value
 1COMMON STOCKS—continued 
  Information Technology—continued 
11,128 IBM Corp.$1,488,147
55,114 Intel Corp.3,115,594
3,090 Intuit, Inc.795,675
4,028 Juniper Networks, Inc.99,975
3,8472Keysight Technologies, Inc.388,201
1,767 KLA Corp.298,694
2,429 Lam Research Corp.658,356
1,313 Leidos Holdings, Inc.113,220
10,887 Mastercard, Inc.3,013,630
3,824 Maxim Integrated Products, Inc.224,316
2,601 Microchip Technology, Inc.245,248
13,3892Micron Technology, Inc.636,647
93,966 Microsoft Corp.13,471,905
2,957 Motorola, Inc.491,808
3,405 NetApp, Inc.190,271
6,634 NVIDIA Corp.1,333,567
27,699 Oracle Corp.1,509,319
3,825 Paychex, Inc.319,923
15,9442PayPal Holdings, Inc.1,659,770
3,4952Qorvo, Inc.282,606
15,017 Qualcomm, Inc.1,207,968
10,8222Salesforce.com, Inc.1,693,535
2,927 Seagate Technology PLC169,854
2,185 Skyworks Solutions, Inc.198,966
13,412 Symantec Corp.306,867
1,6272Synopsys, Inc.220,865
2,510 TE Connectivity Ltd.224,645
11,319 Texas Instruments, Inc.1,335,529
2,0882Verisign, Inc.396,762
21,101 Visa, Inc., Class A3,774,125
3,268 Western Digital Corp.168,792
7,432 Xerox Holdings Corp.252,168
2,816 Xilinx, Inc.255,524
  TOTAL69,117,807
  Materials—2.6% 
2,577 Air Products & Chemicals, Inc.549,571
18,314 Amcor PLC174,349
768 Avery Dennison Corp.98,196
Annual Shareholder Report
16

Shares  
Value
 1COMMON STOCKS—continued 
  Materials—continued 
6,159 Ball Corp.$430,945
1,762 Celanese Corp.213,466
5,762 CF Industries Holdings, Inc.261,307
8,440 Corteva, Inc.222,647
9,126 Dow, Inc460,772
9,538 DuPont de Nemours, Inc.628,650
2,112 Eastman Chemical Co.160,596
3,866 Ecolab, Inc.742,543
3,170 Freeport-McMoRan, Inc.31,129
1,257 International Flavors & Fragrances, Inc.153,367
8,609 International Paper Co.376,041
6,502 Linde PLC1,289,672
3,527 LyondellBasell Industries N.V.316,372
1,341 Martin Marietta Materials351,221
10,881 Newmont Goldcorp Corp432,302
820 Nucor Corp.44,157
869 Packaging Corp. of America95,121
3,166 PPG Industries, Inc.396,130
1,160 Sealed Air Corp.48,453
956 Sherwin-Williams Co.547,138
1,425 Vulcan Materials Co.203,590
2,672 WestRock Co.99,853
  TOTAL8,327,588
  Real Estate—3.1% 
400 Alexandria Real Estate Equities, Inc.63,500
6,130 American Tower Corp.1,336,830
1,238 Apartment Investment & Management Co., Class A67,941
1,575 Avalonbay Communities, Inc.342,815
2,007 Boston Properties, Inc.275,360
3,8152CBRE Group, Inc.204,293
4,904 Crown Castle International Corp.680,626
2,815 Digital Realty Trust, Inc.357,618
9,059 Duke Realty Corp.318,333
991 Equinix, Inc.561,679
3,936 Equity Residential Properties Trust348,966
716 Essex Property Trust, Inc.234,225
2,899 Extra Space Storage, Inc.325,471
1,086 Federal Realty Investment Trust147,707
Annual Shareholder Report
17

Shares  
Value
 1COMMON STOCKS—continued 
  Real Estate—continued 
1,672 HCP, Inc.$62,901
10,772 Host Hotels & Resorts, Inc.176,553
3,680 Kimco Realty Corp.79,341
1,169 Mid-American Apartment Communities, Inc.162,479
5,968 ProLogis Inc.523,752
2,464 Public Storage549,127
3,514 Realty Income Corp.287,410
2,164 Regency Centers Corp.145,507
2,005 SBA Communications, Corp.482,503
3,993 Simon Property Group, Inc.601,665
1,391 SL Green Realty Corp.116,288
6,794 UDR, Inc.341,399
4,164 Ventas, Inc.271,076
2,440 Vornado Realty Trust L.P.160,137
4,649 Welltower, Inc.421,618
3,648 Weyerhaeuser Co.106,558
  TOTAL9,753,678
  Utilities—3.4% 
8,702 AES Corp.148,369
2,836 Alliant Energy Corp.151,272
2,803 Ameren Corp.217,793
5,885 American Electric Power Co., Inc.555,485
1,975 American Water Works Co., Inc.243,458
1,182 Atmos Energy Corp.132,951
1,072 CenterPoint Energy, Inc.31,163
3,007 CMS Energy Corp.192,208
4,427 Consolidated Edison Co.408,258
10,505 Dominion Energy, Inc.867,188
2,492 DTE Energy Co.317,282
7,350 Duke Energy Corp.692,811
2,296 Edison International144,418
2,183 Entergy Corp.265,191
5,245 Evergy, Inc.335,208
3,618 EverSource Energy302,971
12,612 Exelon Corp.573,720
9,846 FirstEnergy Corp.475,759
6,705 NextEra Energy, Inc.1,598,070
7,077 NRG Energy, Inc.283,929
Annual Shareholder Report
18

Shares  
Value
 1COMMON STOCKS—continued 
  Utilities—continued 
2,980 Pinnacle West Capital Corp.$280,478
4,026 PPL Corp.134,831
6,727 Public Service Enterprises Group, Inc.425,886
3,434 Sempra Energy496,247
12,373 Southern Co.775,292
3,557 WEC Energy Group, Inc.335,781
5,982 Xcel Energy, Inc.379,917
  TOTAL10,765,936
  TOTAL COMMON STOCKS
(IDENTIFIED COST $87,451,880)
310,559,271
  INVESTMENT COMPANY—1.6% 
5,039,404 Federated Institutional Prime Value Obligations Fund, Institutional Shares, 1.930%3
(IDENTIFIED COST $5,040,208)
5,040,916
  TOTAL INVESTMENT IN SECURITIES—100.0%
(IDENTIFIED COST $92,492,088)4
315,600,187
  OTHER ASSETS AND LIABILITIES - NET—0.0%5(28,955)
  TOTAL NET ASSETS—100%$315,571,232
At October 31, 2019, the Fund had the following outstanding futures contracts.
DescriptionNumber of
Contracts
Notional
Value
Expiration
Date
Value and
Unrealized
Appreciation
2S&P 500 E-Mini Long Futures4$607,160December 2019$5,422
2S&P 500 Index Long Futures6$4,553,700December 2019$57,265
NET UNREALIZED APPRECIATION ON FUTURES CONTRACTS$62,687
Unrealized Appreciation on Futures Contracts is included in “Other Assets and Liabilities—Net.”
Annual Shareholder Report
19

Affiliated fund holdings are investment companies which are managed by the Manager or an affiliate of the Manager. Transactions with affiliated fund holdings during the period ended October 31, 2019, were as follows:
 Federated
Government
Obligations Fund,
Premier Shares*
Federated
Institutional
Prime Value
Obligations Fund,
Institutional Shares
Total of
Affiliated
Transactions
Balance of Shares Held 10/31/2018294,7594,962,1555,256,914
Purchases/Additions9,308,86871,471,73580,780,603
Sales/Reductions(9,603,627)(71,394,486)(80,998,113)
Balance of Shares Held 10/31/20195,039,4045,039,404
Value$$5,040,916$5,040,916
Change in Unrealized Appreciation/DepreciationN/A$571$571
Net Realized Gain/(Loss)N/A$683$683
Dividend Income$7,442$146,838$154,280
*All or a portion of the balance/activity for the fund relates to cash collateral on security lending transactions.
1The 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 $5,160,860 at October 31, 2019, which represents 1.6% 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%.
2Non-income-producing security.
37-day net yield.
4The cost of investments for federal tax purposes amounts to $95,646,575.
5Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities.
Note: The categories of investments are shown as a percentage of total net assets at October 31, 2019.
Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below:
Level 1—quoted prices in active markets for identical securities.
Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Also includes securities valued at amortized cost.
Level 3—significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.
As of October 31, 2019, all investments of the Fund utilized Level 1 inputs in valuing the Fund's assets carried at fair value.
See Notes which are an integral part of the Financial Statements
Annual Shareholder Report
20

Financial HighlightsClass C Shares
(For a Share Outstanding Throughout Each Period)
Year Ended October 3120192018201720162015
Net Asset Value, Beginning of Period$12.74$15.09$14.54$16.06$17.27
Income From Investment Operations:     
Net investment income0.0610.0610.090.110.11
Net realized and unrealized gain1.030.752.750.320.51
TOTAL FROM INVESTMENT OPERATIONS1.090.812.840.430.62
Less Distributions:     
Distributions from net investment income(0.06)(0.07)(0.09)(0.11)(0.11)
Distributions from net realized gain(3.86)(3.09)(2.20)(1.84)(1.72)
TOTAL DISTRIBUTIONS(3.92)(3.16)(2.29)(1.95)(1.83)
Net Asset Value, End of Period$9.91$12.74$15.09$14.54$16.06
Total Return212.59%6.09%22.22%3.19%3.71%
Ratios to Average Net Assets:     
Net expenses1.41%1.41%1.42%1.42%1.42%
Net investment income0.61%0.48%0.60%0.75%0.61%
Expense waiver/reimbursement30.10%0.06%0.05%0.05%0.04%
Supplemental Data:     
Net assets, end of period (000 omitted)$35,742$37,324$41,904$36,956$40,273
Portfolio turnover32%30%31%31%31%
1Per share numbers have been calculated using the average shares method.
2Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable.
3This expense decrease is reflected in both the net expense and the net investment income ratios shown above.
See Notes which are an integral part of the Financial Statements
Annual Shareholder Report
21

Financial HighlightsClass R Shares
(For a Share Outstanding Throughout Each Period)
Year Ended October 3120192018201720162015
Net Asset Value, Beginning of Period$12.92$15.27$14.68$16.19$17.39
Income From Investment Operations:     
Net investment income0.0910.1010.120.150.16
Net realized and unrealized gain1.060.742.800.340.52
TOTAL FROM INVESTMENT OPERATIONS1.150.842.920.490.68
Less Distributions:     
Distributions from net investment income(0.09)(0.10)(0.13)(0.16)(0.16)
Distributions from net realized gain(3.86)(3.09)(2.20)(1.84)(1.72)
TOTAL DISTRIBUTIONS(3.95)(3.19)(2.33)(2.00)(1.88)
Net Asset Value, End of Period$10.12$12.92$15.27$14.68$16.19
Total Return213.00%6.31%22.65%3.56%4.05%
Ratios to Average Net Assets:     
Net expenses1.08%1.11%1.11%1.10%1.10%
Net investment income0.94%0.79%0.92%1.07%0.93%
Expense waiver/reimbursement30.11%0.07%0.07%0.08%0.06%
Supplemental Data:     
Net assets, end of period (000 omitted)$38,142$41,765$47,867$47,998$45,190
Portfolio turnover32%30%31%31%31%
1Per share numbers have been calculated using the average shares method.
2Based on net asset value.
3This expense decrease is reflected in both the net expense and the net investment income ratios shown above.
See Notes which are an integral part of the Financial Statements
Annual Shareholder Report
22

Financial HighlightsInstitutional Shares
(For a Share Outstanding Throughout Each Period)
Year Ended October 3120192018201720162015
Net Asset Value, Beginning of Period$13.09$15.42$14.80$16.31$17.50
Income From Investment Operations:     
Net investment income0.1610.2110.250.280.27
Net realized and unrealized gain1.080.752.800.310.54
TOTAL FROM INVESTMENT OPERATIONS1.240.963.050.590.81
Less Distributions:     
Distributions from net investment income(0.16)(0.20)(0.23)(0.26)(0.28)
Distributions from net realized gain(3.86)(3.09)(2.20)(1.84)(1.72)
TOTAL DISTRIBUTIONS(4.02)(3.29)(2.43)(2.10)(2.00)
Net Asset Value, End of Period$10.31$13.09$15.42$14.80$16.31
Total Return213.76%7.16%23.55%4.30%4.87%
Ratios to Average Net Assets:     
Net expenses0.36%0.36%0.36%0.35%0.35%
Net investment income1.66%1.56%1.67%1.82%1.68%
Expense waiver/reimbursement30.13%0.11%0.08%0.09%0.07%
Supplemental Data:     
Net assets, end of period (000 omitted)$133,835$137,792$201,836$208,577$257,742
Portfolio turnover32%30%31%31%31%
1Per share numbers have been calculated using the average shares method.
2Based on net asset value.
3This expense decrease is reflected in both the net expense and the net investment income ratios shown above.
See Notes which are an integral part of the Financial Statements
Annual Shareholder Report
23

Financial HighlightsService Shares
(For a Share Outstanding Throughout Each Period)
Year Ended October 3120192018201720162015
Net Asset Value, Beginning of Period$12.94$15.28$14.69$16.20$17.40
Income From Investment Operations:     
Net investment income0.1310.1610.170.210.21
Net realized and unrealized gain1.060.752.810.340.54
TOTAL FROM INVESTMENT OPERATIONS1.190.912.980.550.75
Less Distributions:     
Distributions from net investment income(0.13)(0.16)(0.19)(0.22)(0.23)
Distributions from net realized gain(3.86)(3.09)(2.20)(1.84)(1.72)
TOTAL DISTRIBUTIONS(3.99)(3.25)(2.39)(2.06)(1.95)
Net Asset Value, End of Period$10.14$12.94$15.28$14.69$16.20
Total Return213.41%6.85%23.14%4.01%4.52%
Ratios to Average Net Assets:     
Net expenses0.66%0.66%0.66%0.65%0.65%
Net investment income1.36%1.24%1.39%1.52%1.38%
Expense waiver/reimbursement30.39%0.35%0.35%0.36%0.35%
Supplemental Data:     
Net assets, end of period (000 omitted)$107,852$110,443$144,226$180,503$218,171
Portfolio turnover32%30%31%31%31%
1Per share numbers have been calculated using the average shares method.
2Based on net asset value.
3This expense decrease is reflected in both the net expense and the net investment income ratios shown above.
See Notes which are an integral part of the Financial Statements
Annual Shareholder Report
24

Statement of Assets and Liabilities
October 31, 2019
Assets:  
Investment in securities, at value including $5,040,916 of investment in an affiliated holding* (identified cost $92,492,088) $315,600,187
Restricted cash (Note 2) 214,200
Income receivable 281,260
Receivable for shares sold 156,528
Income receivable from affiliated holdings 14,885
Receivable for daily variation margin on futures contracts 104,393
TOTAL ASSETS 316,371,453
Liabilities:  
Payable for shares redeemed$497,494 
Payable for portfolio accounting fees79,332 
Payable for transfer agent fee (Note 2)66,436 
Payable for distribution services fee (Note 5)43,494 
Payable for other service fees (Notes 2 and 5)40,911 
Payable for custodian fees30,656 
Payable for share registration cost19,337 
Payable for management fee (Note 5)1,810 
Accrued expenses (Note 5)20,751 
TOTAL LIABILITIES 800,221
Net assets for 30,995,285 shares outstanding $315,571,232
Net Assets Consists of:  
Paid-in capital $54,777,052
Total distributable earnings 260,794,180
TOTAL NET ASSETS $315,571,232
Annual Shareholder Report
25

Statement of Assets and Liabilitiescontinued
Net Asset Value, Offering Price and Redemption Proceeds Per Share:  
Class C Shares:  
Net asset value per share ($35,741,622 ÷ 3,608,123 shares outstanding), no par value, unlimited shares authorized $9.91
Offering price per share $9.91
Redemption proceeds per share (99.00/100 of $9.91) $9.81
Class R Shares:  
Net asset value per share ($38,142,024 ÷ 3,769,484 shares outstanding), no par value, unlimited shares authorized $10.12
Offering price per share $10.12
Redemption proceeds per share $10.12
Institutional Shares:  
Net asset value per share ($133,835,582 ÷ 12,983,278 shares outstanding), no par value, unlimited shares authorized $10.31
Offering price per share $10.31
Redemption proceeds per share $10.31
Service Shares:  
Net asset value per share ($107,852,004 ÷ 10,634,400 shares outstanding), no par value, unlimited shares authorized $10.14
Offering price per share $10.14
Redemption proceeds per share $10.14
*See information listed after the Fund's Portfolio of Investments.
See Notes which are an integral part of the Financial Statements
Annual Shareholder Report
26

Statement of Operations
Year Ended October 31, 2019
Investment Income:   
Dividends (including $146,838 received from an affiliated holding*)  $6,429,310
Net Income on securities loaned (includes $7,442 received from an affiliated holding related to cash collateral balances*)  7,877
Interest  8,090
TOTAL INCOME  6,445,277
Expenses:   
Management fee (Note 5) $955,607 
Custodian fees 58,787 
Transfer agent fees (Note 2) 323,956 
Directors'/Trustees' fees (Note 5) 5,779 
Auditing fees 27,200 
Legal fees 16,330 
Distribution services fee (Note 5) 793,195 
Other service fees (Notes 2 and 5) 361,334 
Portfolio accounting fees 128,210 
Share registration costs 64,162 
Printing and postage 29,446 
Miscellaneous (Note 5) 62,859 
TOTAL EXPENSES 2,826,865 
Waivers and Reimbursements:  
Waiver/reimbursement of management fee (Note 5)$(310,082)  
Waiver/reimbursement of other operating expenses (Notes 2 and 5)(373,764)  
TOTAL WAIVERS AND REIMBURSEMENTS (683,846) 
Net expenses  2,143,019
Net investment income  $4,302,258
Annual Shareholder Report
27

Statement of Operationscontinued
Realized and Unrealized Gain (Loss) on Investments and Futures Contracts:   
Net realized gain on investments and foreign currency translations (including net realized gain of $683 on sales of investments in an affiliated holding*)  $40,239,012
Net realized gain on futures contracts  463,916
Net change in unrealized appreciation of investments (including net change in unrealized appreciation of $571 of investments in an affiliated holding*)  (5,726,033)
Net change in unrealized depreciation of futures contracts  456,285
Net realized and unrealized gain on investments and futures contracts  35,433,180
Change in net assets resulting from operations  $39,735,438
*See information listed after the Fund's Portfolio of Investments.
See Notes which are an integral part of the Financial Statements
Annual Shareholder Report
28

Statement of Changes in Net Assets
Year Ended October 3120192018
Increase (Decrease) in Net Assets  
Operations:  
Net investment income$4,302,258$4,866,195
Net realized gain40,702,92897,522,855
Net change in unrealized appreciation/depreciation(5,269,748)(72,935,297)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS39,735,43829,453,753
Distributions to Shareholders:  
Class C Shares(11,464,301)(8,697,887)
Class R Shares(12,531,865)(9,941,025)
Institutional Shares(42,273,684)(42,057,608)
Service Shares(34,219,634)(29,040,886)
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS(100,489,484)(89,737,406)
Share Transactions:  
Proceeds from sale of shares48,431,58067,012,997
Net asset value of shares issued to shareholders in payment of distributions declared96,301,16985,243,020
Cost of shares redeemed(95,731,113)(200,481,482)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS49,001,636(48,225,465)
Change in net assets(11,752,410)(108,509,118)
Net Assets:  
Beginning of period327,323,642435,832,760
End of period$315,571,232$327,323,642
See Notes which are an integral part of the Financial Statements
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Notes to Financial Statements
October 31, 2019
1. ORGANIZATION
Federated Index Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Trust consists of two portfolios. The financial statements included herein are only those of Federated Max-Cap Index Fund (the “Fund”), a diversified portfolio. The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held. Each portfolio pays its own expenses. The Fund offers four classes of shares: Class C Shares, Class R Shares, Institutional Shares and Service Shares. All shares of the Fund have equal rights with respect to voting, except on class-specific matters. The investment objective of the Fund is to provide investment results that generally correspond to the aggregate price and performance of publicly traded common stocks comprising the Standard & Poor's 500 Index (S&P 500).
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with U.S. generally accepted accounting principles (GAAP).
Investment Valuation
In calculating its net asset value (NAV), the Fund generally values investments as follows:
■ 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.
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If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, if the Fund cannot obtain price evaluations from a pricing service or from more than one dealer for an investment within a reasonable period of time as set forth in the Fund's valuation policies and procedures, or if information furnished by a pricing service, in the opinion of the valuation committee (“Valuation Committee”), is deemed not representative of the fair value of such security, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could obtain the fair value assigned to an investment if it sold the investment at approximately the time at which the Fund determines its NAV per share.
Fair Valuation and Significant Events Procedures
The Trustees have ultimate responsibility for determining the fair value of investments for which market quotations are not readily available. The Trustees have appointed a Valuation Committee comprised of officers of the Fund, Federated Equity Management Company of Pennsylvania (the “Manager”) and certain of the Manager's affiliated companies to assist in determining fair value and in overseeing the calculation of the NAV. The Trustees have also authorized the use of pricing services recommended by the Valuation Committee to provide fair value evaluations of the current value of certain investments for purposes of calculating the NAV. The Valuation Committee employs various methods for reviewing third-party pricing-service evaluations including periodic reviews of third-party pricing services' policies, procedures and valuation methods (including key inputs, methods, models and assumptions), transactional back-testing, comparisons of evaluations of different pricing services, and review of price challenges by the Manager based on recent market activity. In the event that market quotations and price evaluations are not available for an investment, the Valuation Committee determines the fair value of the investment in accordance with procedures adopted by the Trustees. The Trustees periodically review and approve the fair valuations made by the Valuation Committee and any changes made to the procedures.
Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a “bid” evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and asked for the investment (a “mid” evaluation). The Fund normally uses bid evaluations for any U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for any other types of fixed-income securities and any OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Trustees.
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The Trustees also have adopted procedures requiring an investment to be priced at its fair value whenever the Manager determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment's value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:
■ 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.
The Trustees have adopted procedures whereby the Valuation Committee uses a pricing service to provide factors to update the fair value of equity securities traded principally in foreign markets from the time of the close of their respective foreign stock exchanges to the pricing time of the Fund. For other significant events, the Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Fund will determine the fair value of the investment in accordance with the fair valuation procedures approved by the Trustees. The Trustees have ultimate responsibility for any fair valuations made in response to a significant event.
Repurchase Agreements
The Fund may invest in repurchase agreements for short-term liquidity purposes. It is the policy of the Fund to require the other party to a repurchase agreement to transfer to the Fund's custodian or sub-custodian eligible securities or cash with a market value (after transaction costs) at least equal to the repurchase price to be paid under the repurchase agreement. The eligible securities are transferred to accounts with the custodian or sub-custodian in which the Fund holds a “securities entitlement” and exercises “control” as those terms are defined in the Uniform Commercial Code. The Fund has established procedures for monitoring the market value of the transferred securities and requiring the transfer of additional eligible securities if necessary to equal at least the repurchase price. These procedures also allow the other party to require securities to be transferred from the account to the extent that their market value exceeds the repurchase price or in exchange for other eligible securities of equivalent market value.
The insolvency of the other party or other failure to repurchase the securities may delay the disposition of the underlying securities or cause the Fund to receive less than the full repurchase price. Under the terms of the repurchase agreement, any amounts received by the Fund in excess of the repurchase price and related transaction costs must be remitted to the other party.
The Fund may enter into repurchase agreements in which eligible securities are transferred into joint trading accounts maintained by the custodian or sub-custodian for investment companies and other clients advised by the Fund's Manager and its affiliates. The Fund will participate on a pro rata basis with the other investment companies and clients in its share of the securities transferred under such repurchase agreements and in its share of proceeds from any repurchase or other disposition of such securities.
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Investment Income, Gains and Losses, Expenses and Distributions
Investment transactions are accounted for on a trade-date basis. Realized gains and losses from investment transactions are recorded on an identified-cost basis. Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Foreign dividends are recorded on the ex-dividend date or when the Fund is informed of the ex-dividend date. Distributions of net investment income, if any, are declared and paid quarterly. Non-cash dividends included in dividend income, if any, are recorded at fair value. Amortization/accretion of premium and discount is included in investment income. Investment income, realized and unrealized gains and losses, and certain fund-level expenses are allocated to each class based on relative average daily net assets, except that select classes will bear certain expenses unique to those classes. The detail of the total fund expense waivers and reimbursements of $683,846 is disclosed in various locations in this Note 2 and Note 5. For the year ended October 31, 2019, transfer agent fees for the Fund were as follows:
 Transfer Agent
Fees Incurred
Transfer Agent
Fees Reimbursed
Class C Shares$17,768$
Class R Shares55,687(6,492)
Institutional Shares197,327(45,795)
Service Shares53,174(48,916)
TOTAL$323,956$(101,203)
Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses.
Other Service Fees
The Fund may pay other service fees up to 0.25% of the average daily net assets of the Fund's Class C Shares, Institutional Shares and Service Shares to unaffiliated financial intermediaries or to Federated Shareholder Services Company (FSSC) for providing services to shareholders and maintaining shareholder accounts. Subject to the terms described in the Expense Limitation note, FSSC may voluntarily reimburse the Fund for other service fees. For the year ended October 31, 2019, other service fees for the Fund were as follows:
 Other Service
Fees Incurred
Class C Shares$88,773
Service Shares272,561
TOTAL$361,334
For the year ended October 31, 2019, the Fund's Institutional Shares did not incur other service fees.
Federal Taxes
It is the Fund's policy to comply with the Subchapter M provision of the Internal Revenue Code and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal income tax is necessary. As of and during the year ended October 31, 2019, the Fund did not have a liability for any uncertain tax positions. The Fund
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recognizes interest and penalties, if any, related to tax liabilities as income tax expense in the Statement of Operations. As of October 31, 2019, tax years 2016 through 2019 remain subject to examination by the Fund's major tax jurisdictions, which include the United States of America and the Commonwealth of Massachusetts.
The Fund may be subject to taxes imposed by governments of countries in which it invests. Such taxes are generally based on either income or gains earned or repatriated. The Fund accrues and applies such taxes to net investment income, net realized gains and net unrealized gains as income and/or gains are earned.
When-Issued and Delayed-Delivery Transactions
The Fund may engage in when-issued or delayed-delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed-delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.
Futures Contracts
The Fund purchases and sells financial futures contracts to manage cash flows, maintain exposure to the S&P 500 Index and to potentially reduce transaction costs. Upon entering into a financial futures contract with a broker, the Fund is required to deposit in a segregated account, either U.S. government securities or a specified amount of Restricted cash, which is shown in the Statement of Assets and Liabilities. Futures contracts are valued daily and unrealized gains or losses are recorded in a “variation margin” account. Daily, the Fund receives from or pays to the broker a specified amount of cash based upon changes in the variation margin account. When a contract is closed, the Fund recognizes a realized gain or loss. Futures contracts have market risks, including the risk that the change in the value of the contract may not correlate with the changes in the value of the underlying securities. There is minimal counterparty risk to the Fund since futures contracts are exchange traded and the exchange's clearinghouse, as counterparty to all exchange traded futures contracts, guarantees the futures contracts against default.
Futures contracts outstanding at period end are listed after the Fund's Portfolio of Investments.
The average notional value of long contracts held by the Fund throughout the period was $9,895,699. This is based on amounts held as of each month-end throughout the fiscal period.
Foreign Currency Translation
The accounting records of the Fund are maintained in U.S. dollars. All assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the rates of exchange of such currencies against U.S. dollars on the date of valuation. Purchases and sales of securities, income and expenses are translated at the rate of exchange quoted on the respective date that such transactions are recorded. The Fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.
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Reported net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund's books, and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities other than investments in securities at period end, resulting from changes in the exchange rate.
Securities Lending
The Fund participates in a securities lending program providing for the lending of equity securities to qualified brokers. The term of the loans within the program is one year or less. The Fund normally receives cash collateral for securities loaned that may be invested in affiliated money market funds, other money market instruments and/or repurchase agreements. Investments in money market funds may include funds with a “floating” NAV that can impose redemption fees and liquidity gates, impose certain operational impediments to investing cash collateral, and, if the investee fund's NAV decreases, result in the Fund recognizing losses and being required to cover the decrease in the value of the cash collateral. Collateral is maintained at a minimum level of 100% of the market value of investments loaned, plus interest, if applicable. Earnings on collateral are allocated between the borrower of the security, the securities lending agent, as a fee for its services under the program and the Fund, according to agreed-upon rates. The Fund will not have the right to vote on securities while they are on loan. However, the Fund will attempt to terminate a loan in an effort to reacquire the securities in time to vote on matters that are deemed to be material by the Manager. There can be no assurance that the Fund will have sufficient notice of such matters to be able to terminate the loan in time to vote thereon.
Securities lending transactions are subject to Master Netting Agreements which are agreements between the Fund and its counterparties that provide for the net settlement of all transactions and collateral with the Fund, through a single payment, in the event of default or termination. Additionally, the securities lending agreement executed by the Fund includes an indemnification clause. This clause stipulates that the borrower will reimburse the Fund for any losses as a result of any failure of the borrower to return equivalent securities to the Fund.
As of October 31, 2019, the Fund has no outstanding securities on loan.
Additional Disclosure Related to Derivative Instruments
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 contractsReceivable for
daily variation margin
$62,687*
*Includes cumulative appreciation 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.
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The Effect of Derivative Instruments on the Statement of Operations for the Year Ended October 31, 2019
Amount of Realized Gain or (Loss) on Derivatives Recognized in Income
 Futures
Contracts
Equity contracts463,916
    
Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income
 Futures
Contracts
Equity contracts456,285
Other
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated. The Fund applies investment company accounting and reporting guidance.
3. SHARES OF BENEFICIAL INTEREST
The following tables summarize share activity:
Year Ended October 3120192018
Class C Shares:SharesAmountSharesAmount
Shares sold433,017$4,036,702496,332$6,437,756
Shares issued to shareholders in payment of distributions declared1,231,07910,855,403662,6538,182,670
Shares redeemed(986,588)(9,168,746)(1,004,914)(13,037,505)
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS677,508$5,723,359154,071$1,582,921
    
Year Ended October 3120192018
Class R Shares:SharesAmountSharesAmount
Shares sold921,790$8,857,701764,486$10,050,608
Shares issued to shareholders in payment of distributions declared1,314,90311,847,715750,3239,405,085
Shares redeemed(1,698,885)(16,420,616)(1,418,383)(18,664,398)
NET CHANGE RESULTING FROM CLASS R SHARE TRANSACTIONS537,808$4,284,80096,426$791,295
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Year Ended October 3120192018
Institutional Shares:SharesAmountSharesAmount
Shares sold2,414,223$22,746,3392,615,564$37,400,961
Shares issued to shareholders in payment of distributions declared4,329,92739,806,9673,071,31839,050,085
Shares redeemed(4,290,099)(41,198,994)(8,249,556)(112,742,563)
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS2,454,051$21,354,312(2,562,674)$(36,291,517)
    
Year Ended October 3120192018
Service Shares:SharesAmountSharesAmount
Shares sold1,318,157$12,790,838989,046$13,123,672
Shares issued to shareholders in payment of distributions declared3,737,22733,791,0842,276,92228,605,180
Shares redeemed(2,955,644)(28,942,757)(4,169,255)(56,037,016)
NET CHANGE RESULTING FROM SERVICE SHARE TRANSACTIONS2,099,740$17,639,165(903,287)$(14,308,164)
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS5,769,107$49,001,636(3,215,464)$(48,225,465)
4. FEDERAL TAX INFORMATION
The tax character of distributions as reported on the Statement of Changes in Net Assets for the years ended October 31, 2019 and 2018, was as follows:
 20192018
Ordinary income1$7,861,699$10,425,596
Long-term capital gains$92,627,785$79,311,810
1For tax purposes, short-term capital gain distributions are considered ordinary income distributions.
As of October 31, 2019, the components of distributable earnings on a tax-basis were as follows:
Undistributed ordinary income2$509,967
Net unrealized appreciation$219,953,612
Undistributed long-term capital gains$40,330,601
2For tax purposes, short-term capital gains are considered ordinary income in determining distributable earnings.
The difference between book-basis and tax-basis net unrealized appreciation/depreciation is attributable to differing treatments for deferral of losses on wash sales, futures mark-to-market and non-taxable dividends.
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At October 31, 2019, the cost of investments for federal tax purposes was $95,646,575. The net unrealized appreciation of investments for federal tax purposes was $219,953,612. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $220,829,192 and net unrealized depreciation from investments for those securities having an excess of cost over value of $875,580. The amounts presented are inclusive of derivative contracts.
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Management Fee
The management agreement between the Fund and the Manager provides for an annual fee equal to 0.30% of the Fund's average daily net assets. Subject to the terms described in the Expense Limitation note, the Manager may voluntarily choose to waive any portion of its fee. For the year ended October 31, 2019, the Manager voluntarily waived $303,439 of its fee.
The Manager has agreed to reimburse the Fund for certain investment adviser fees as a result of transactions in other affiliated investment companies. For the year ended October 31, 2019, the Manager reimbursed $6,643.
Distribution Services Fee
The Fund has adopted a Distribution Plan (the “Plan”) pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will compensate Federated Securities Corp. (FSC), the principal distributor, from the daily net assets of the Fund's Class C Shares, Class R Shares and Service Shares to finance activities intended to result in the sale of these shares. The Plan provides that the Fund may incur distribution expenses at the following percentages of average daily net assets annually, to compensate FSC:
Share Class NamePercentage of Average Daily
Net Assets of Class
Class C Shares0.75%
Class R Shares0.50%
Service Shares0.30%
Subject to the terms described in the Expense Limitation note, FSC may voluntarily choose to waive any portion of its fee. For the year ended October 31, 2019, distribution services fees for the Fund were as follows:
 Distribution Services
Fees Incurred
Distribution Services
Fees Waived
Class C Shares$266,904$
Class R Shares196,548
Service Shares329,743(272,561)
TOTAL$793,195$(272,561)
When FSC receives fees, it may pay some or all of them to financial intermediaries whose customers purchase shares. For the year ended October 31, 2019, FSC retained $155,888 of fees paid by the Fund.
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Sales Charges
Front-end sales charges and contingent deferred sales charges (CDSC) do not represent expenses of the Fund. They are deducted from the proceeds of sales of Fund shares prior to investment or from redemption proceeds prior to remittance, as applicable. For the year ended October 31, 2019, FSC retained $173 of CDSC relating to redemptions of Class C Shares.
Other Service Fees
For the year ended October 31, 2019, FSSC received $4,724 of the other service fees disclosed in Note 2.
Expense Limitation
The Manager and certain of its affiliates (which may include FSC and FSSC) on their own initiative have agreed to waive certain amounts of their respective fees and/or reimburse expenses. Total annual fund operating expenses (as shown in the financial highlights, excluding interest expense, extraordinary expenses and proxy-related expenses paid by the Fund, if any) paid by the Fund's Class C Shares, Class R Shares, Institutional Shares and Service Shares (after the voluntary waivers and/or reimbursements) will not exceed 1.44%, 1.11%, 0.36% and 0.66% (the “Fee Limit”), respectively, up to but not including the later of (the “Termination Date”): (a) January 1, 2021; or (b) the date of the Fund's next effective Prospectus. While the Manager and its applicable affiliates currently do not anticipate terminating or increasing these arrangements prior to the Termination Date, these arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the agreement of the Trustees.
Directors'/Trustees' and Miscellaneous Fees
Certain Officers and Trustees of the Fund are Officers and Directors or Trustees of certain of the above companies. To efficiently facilitate payment, Independent Directors'/Trustees' fees and certain expenses related to conducting meetings of the Directors/Trustees and other miscellaneous expenses are paid by an affiliate of the Manager which in due course are reimbursed by the Fund. These expenses related to conducting meetings of the Directors/Trustees and other miscellaneous expenses may be included in Accrued and Miscellaneous Expenses on the Statement of Assets and Liabilities and Statement of Operations, respectively.
6. INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding long-term U.S. government securities and short-term obligations, for the year ended October 31, 2019, were as follows:
Purchases$97,725,859
Sales$142,635,646
7. LINE OF CREDIT
The Fund participates with certain other Federated Funds, on a several basis, in an up to $500,000,000 unsecured, 364-day, committed, revolving line of credit (LOC) agreement. The LOC was made available to finance temporarily the repurchase or redemption of shares of the Fund, failed trades, payment of dividends, settlement of trades and for other short-term, temporary or emergency general business purposes. The Fund cannot borrow under the LOC if an inter-fund loan is outstanding. The Fund's ability to borrow under the LOC also is subject to the limitations of the Act and various conditions precedent that must be satisfied before the Fund can borrow. Loans under the LOC are charged interest at a fluctuating rate per annum
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equal to the highest, on any day, of (a) (i) the federal funds effective rate, (ii) the one month London Interbank Offered Rate (LIBOR), and (iii) 0.0%, plus (b) a margin. The LOC also requires the Fund to pay, quarterly in arrears and at maturity, its pro rata share of a commitment fee based on the amount of the lenders' commitment that has not been utilized. As of October 31, 2019, the Fund had no outstanding loans. During the year ended October 31, 2019, the Fund did not utilize the LOC.
8. INTERFUND LENDING
Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the Fund, along with other funds advised by subsidiaries of Federated Investors, Inc., may participate in an interfund lending program. This program provides an alternative credit facility allowing the Fund to borrow from other participating affiliated funds. As of October 31, 2019, there were no outstanding loans. During the year ended October 31, 2019, the program was not utilized.
9. FEDERAL TAX INFORMATION (UNAUDITED)
For the year ended October 31, 2019, the amount of long-term capital gains designated by the Fund was $92,627,785.
For the fiscal year ended October 31, 2019, 80.28% of total ordinary income (including short-term capital gain) distributions made by the Fund are qualifying dividends which may be subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth Tax Relief Act of 2003. Complete information is reported in conjunction with the reporting of your distributions on Form 1099-DIV.
Of the ordinary income (including short-term capital gain) distributions made by the Fund during the year ended October 31, 2019, 77.59% qualify for the dividend received deduction available to corporate shareholders.
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Report of Independent Registered Public Accounting Firm
TO THE BOARD OF Trustees OF Federated Index Trust AND SHAREHOLDERS OF Federated max-Cap Index fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of Federated Max-Cap Index Fund (the “Fund”) (one of the portfolios constituting Federated Index Trust (the “Trust”)), including the portfolio of investments, as of October 31, 2019, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the portfolios constituting Federated Index Trust) at October 31, 2019, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Trust's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Trust's internal control over financial reporting. Accordingly, we express no such opinion.
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Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2019, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor of one or more Federated investment companies since 1979.
Boston, Massachusetts
December 20, 2019
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Shareholder Expense Example (unaudited)
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase or redemption payments; and (2) ongoing costs, including management fees and to the extent applicable, distribution (12b-1) fees and/or other service fees and other Fund expenses. This Example is intended to help you to understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. It is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from May 1, 2019 to October 31, 2019.
ACTUAL EXPENSES
The first section of the table below provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, toestimate the expenses that you incurred over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses attributable to your investment during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and anassumed rate of return of 5% per year before expenses, which is not the Fund's actual return. Thus, you shouldnot use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are required to be provided to enable you to compare the ongoing costs of investing in the Fund with other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
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Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase or redemption payments. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relativetotal costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
 Beginning
Account Value
5/1/2019
Ending
Account Value
10/31/2019
Expenses Paid
During Period1
Actual:   
Class C Shares$1,000$1,032.60$7.22
Class R Shares$1,000$1,034.70$5.38
Institutional Shares$1,000$1,037.60$1.85
Service Shares$1,000$1,036.60$3.39
Hypothetical (assuming a 5% return
before expenses):
   
Class C Shares$1,000$1,018.10$7.17
Class R Shares$1,000$1,019.91$5.35
Institutional Shares$1,000$1,023.39$1.84
Service Shares$1,000$1,021.88$3.36
1Expenses 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 Shares1.41%
Class R Shares1.05%
Institutional Shares0.36%
Service Shares0.66%
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Board of Trustees and Trust Officers
The Board of Trustees is responsible for managing the Trust's business affairs and for exercising all the Trust's powers except those reserved for the shareholders. The following tables give information about each Trustee and the senior officers of the Fund. Where required, the tables separately list Trustees who are “interested persons” of the Fund (i.e., “Interested” Trustees) and those who are not (i.e., “Independent” Trustees). Unless otherwise noted, the address of each person listed is Federated Investors Tower, 1001 Liberty Avenue, Pittsburgh, PA 15222. The address of all Independent Trustees listed is 4000 Ericsson Drive, Warrendale, PA 15086-7561; Attention: Mutual Fund Board. As of December 31, 2018, the Trust comprised two portfolio(s), and the Federated Fund Family consisted of 40 investment companies (comprising 102 portfolios). Unless otherwise noted, each Officer is elected annually. Unless otherwise noted, each Trustee oversees all portfolios in the Federated Fund Family and serves for an indefinite term. The Fund's Statement of Additional Information includes additional information about Trust Trustees and is available, without charge and upon request, by calling 1-800-341-7400.
Interested TRUSTEES Background
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.
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Name
Birth Date
Positions Held with Trust
Date Service Began
Principal Occupation(s) for Past Five Years,
Other Directorships Held and Previous Position(s)
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.
INDEPENDENT TRUSTEES Background
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, Chairman of the Compensation Committee, KLX Energy Services Holdings, Inc. (oilfield services); former Director of KLX Corp. (aerospace).
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 of The Collins Group, Inc. (a private equity firm) and as a Director of KLX Corp. 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).
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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
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, Member of Governance and Compensation Committees, Publix Super Markets, Inc.; Director, Chair of the Audit Committee, Equifax, Inc.; Director, Member of the Audit Committee, Haverty Furniture Companies, 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 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. Mr. Hough previously served as an Executive Committee member of the United States Golf Association.
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; Adjunct Professor of Law, Duquesne University School of Law; formerly, Dean of the Duquesne University School of Law and Professor of Law and 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 held the position of Dean of the School of Law of Duquesne University (as well as Interim Dean). 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.; Regent, Saint Vincent Seminary; 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; Director, St. Vincent College; 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 and Author.
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 and Author.
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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
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).
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; Retired; 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).
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OFFICERS
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.
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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.
    
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Evaluation and Approval of Advisory ContractMay 2019
Federated Max-Cap Index Fund (the “Fund”)
At its meetings in May 2019, the Fund's Board of Trustees (the “Board”), including a majority of those Trustees who are not “interested persons” of the Fund, as defined in the Investment Company Act of 1940 (the “Independent Trustees”), reviewed and unanimously approved the continuation of the Fund's investment advisory contract for an additional one-year term. The Board's decision regarding the contract reflects the exercise of its business judgment after considering all of the information received on whether to continue the existing arrangements.
At the request of the Independent Trustees, the Fund's Chief Compliance Officer (the CCO) furnished to the Board in advance of its May 2019 meetings an independent written evaluation presenting on the topics discussed below. The Board considered the CCO's independent written evaluation (the “CCO Fee Evaluation Report”), along with other information, in evaluating the reasonableness of the Fund's management fee and in deciding to approve the continuation of the investment advisory contract. The CCO, in preparing the CCO Fee Evaluation Report, has the authority to retain consultants, experts or staff as reasonably necessary to assist in the performance of his duties, reports directly to the Board, and can be terminated only with the approval of a majority of the Independent Trustees. At the request of the Independent Trustees, the CCO Fee Evaluation Report followed the same general approach and covered the same topics as that of the report that had previously been delivered by the CCO in his capacity as “Senior Officer,” prior to the elimination of the Senior Officer position in December 2017.
The Board also considered judicial decisions concerning allegedly excessive investment advisory fees in making its decision. Using these judicial decisions as a guide, the Board observed that the following factors may be relevant to an adviser's fiduciary duty with respect to its receipt of compensation from a fund: (1) the nature and quality of the services provided by an adviser to a fund and its shareholders (including the performance of the fund, its benchmark, and comparable funds); (2) an adviser's cost of providing the services (including the profitability to an adviser of providing advisory services to a fund); (3) the extent to which an adviser may realize “economies of scale” as a fund grows larger and, if such economies of scale exist, whether they have been shared with a fund and its shareholders or the family of funds; (4) any “fall-out” financial benefits that accrue to an adviser because of its relationship with a fund (including research services received from brokers that execute fund trades and any fees paid to affiliates of an adviser for services rendered to a fund); (5) comparative fee and expense structures (including a comparison of fees paid to an adviser with those paid by similar funds both internally and externally as well as management fees charged to institutional and other advisory clients of the
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adviser for what might be viewed as like services); and (6) the extent of care, conscientiousness and independence with which the fund's board members perform their duties and their expertise (including whether they are fully informed about all facts the board deems relevant to its consideration of an adviser's services and fees). The Board noted that the Securities and Exchange Commission (SEC) disclosure requirements regarding the basis for the Board's approval of the Fund's investment advisory contract generally align with the factors listed above. The Board was aware of these factors and was guided by them in its review of the Fund's investment advisory contract to the extent it considered them to be appropriate and relevant, as discussed further below.
The Board considered and weighed these factors in light of its substantial accumulated experience in governing the Fund and working with Federated Equity Management Company of Pennsylvania (the “Adviser”) and its affiliates (collectively, “Federated”) on matters relating to the funds advised by Federated (each, a “Federated Fund”). The Independent Trustees were assisted in their deliberations by independent legal counsel.
In addition to the extensive materials that comprise and accompany the CCO Fee Evaluation Report, the Board received detailed information about the Fund and the Federated organization throughout the year, and in connection with its May meetings at which the Board's formal approval of the advisory and subadvisory contracts occurred. In this regard, Federated provided much of this information at each regular meeting of the Board, and furnished additional information specifically in connection with the May meetings. In the months preceding the May meetings, the Board requested and reviewed written materials prepared by Federated in response to requests on behalf of the Independent Trustees encompassing a wide variety of topics. At the May meetings, in addition to meeting in separate sessions of the Independent Trustees without management present, senior management of the Adviser also met with the Independent Trustees and their counsel to discuss the materials presented and such additional matters as the Independent Trustees deemed reasonably necessary to evaluate the advisory and subadvisory contracts. Between regularly scheduled meetings, the Board also received information on particular matters as the need arose.
The Board's consideration of the investment advisory contract included review of the CCO Fee Evaluation Report, accompanying data and additional information covering the following matters, among others: the Adviser's investment philosophy, revenue, profitability, personnel and processes; investment and operating strategies; the Fund's short-term and long-term performance (in absolute terms, both on a gross basis and net of expenses, as well as in terms relative to its particular investment program and certain competitor or “peer group” funds and/or other benchmarks, as appropriate) and comments on the reasons for performance; the Fund's investment objectives; the Fund's expenses, including the advisory fee and the overall expense structure of the Fund (both in absolute terms and relative to similar and/or competing funds), with due
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regard for contractual or voluntary expense limitations; the use and allocation of brokerage commissions derived from trading the Fund's portfolio securities (if any); and the nature, quality and extent of the advisory and other services provided to the Fund by the Adviser and its affiliates. The Board also considered the preferences and expectations of Fund shareholders; the entrepreneurial and other risks assumed by the Adviser in sponsoring the Fund; the continuing state of competition in the mutual fund industry and market practices; the range of comparable fees for similar funds in the mutual fund industry; the Fund's relationship to the Federated Funds which include a comprehensive array of funds with different investment objectives, policies and strategies which are generally available for exchange without the incurrence of additional sales charges; compliance and audit reports concerning the Federated Funds and the Federated companies that service them (including communications from regulatory agencies), as well as Federated's responses to any issues raised therein; and relevant developments in the mutual fund industry and how the Federated Funds and/or Federated are responding to them. The Board's evaluation process is evolutionary. The criteria considered and the emphasis placed on relevant criteria change in recognition of changing circumstances in the mutual fund marketplace.
While mindful that courts have cautioned against giving too much weight to comparative information concerning fees charged by other advisers for managing funds with comparable investment programs, the Board has found the use of such comparisons to be relevant to its deliberations. In this regard, the Board was presented with, and considered, information regarding the contractual advisory fee rates, net advisory fee rates, total expense ratios and each element of the Fund's total expense ratio (i.e., gross and net advisory fees, custody fees, portfolio accounting fees and transfer agency fees) relative to an appropriate group of peer funds compiled by Federated using data supplied by independent fund ranking organizations (the “Peer Group”). The Board received a description of the composition and methodology used to select the Peer Group. The Board focused on comparisons with other similar mutual funds more heavily than non-mutual fund products or services because it is believed that they are more relevant. For example, other mutual funds are the products most like the Fund, in that they are readily available to Fund shareholders as alternative investment vehicles. Also, they are the type of investment vehicle, in fact, chosen and maintained by the Fund's investors. The range of their fees and expenses, therefore, appears to be a relevant indicator of what consumers have found to be reasonable in the marketplace in which the Fund competes.
The Board reviewed the contractual advisory fee rate, net advisory fee rate and other expenses of the Fund and noted the position of the Fund's fee rates relative to its Peer Group. In this regard, the Board noted that the contractual advisory fee rate was below the median of the relevant Peer Group and the Board was satisfied that the overall expense structure of the Fund remained competitive.
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For comparison, the CCO reviewed the fees charged by Federated for providing advisory services to products other than the Federated Funds (e.g., institutional separate accounts and third-party unaffiliated mutual funds for which Federated serves as sub-adviser) (referenced to as “Comparable Funds/Accounts”). With respect to Comparable Funds/Accounts other than third-party mutual funds, the CCO concluded that they are inherently different products. Those differences include, but are not limited to, different types of targeted investors; different applicable laws and regulations; different legal structures; different average account sizes and portfolio management techniques made necessary by different cash flows and different associated costs; and the time spent by portfolio managers and their teams, as well as personnel in the Funds Financial Services, Legal, Compliance and Risk Management departments, in reviewing securities pricing, addressing different administrative responsibilities, addressing different degrees of risk associated with management and a variety of different costs. The CCO also reviewed the differences in the nature of the services required for Federated to manage its proprietary mutual fund business versus managing a discrete pool of assets as a sub-adviser to another institution's mutual fund, and that Federated generally performs significant additional services and assumes substantially greater risks in managing the Fund and other Federated Funds than in its role as sub-adviser to an unaffiliated third-party mutual fund. The CCO did not consider the fees for providing advisory services to Comparable Funds/Accounts to be determinative in judging the appropriateness of the Federated Funds' advisory fees.
Following such evaluation, and full deliberations, the Board concluded that the fees and expenses of the Fund are reasonable and supported renewal of the Fund's investment advisory contract.
The Board considered the nature, extent and quality of the services provided to the Fund by the Adviser and the resources of the Adviser and its affiliates dedicated to the Fund. In this regard, the Board evaluated, among other things, the Adviser's personnel, experience, track record, financial resources, overall reputation and willingness to invest in personnel and infrastructure that benefit the Fund. In addition, the Board reviewed the qualifications, backgrounds and responsibilities of the portfolio management team primarily responsible for the day-to-day management of the Fund and the Adviser's ability and experience in attracting and retaining qualified personnel to service the Fund. The Board noted the investment research and company engagement capabilities of the Adviser and its affiliates. The Board also noted the compliance program of the Adviser and the compliance-related resources provided to the Fund by the Adviser, including the Adviser's commitment to respond to rulemaking initiatives of the SEC. The Fund's ability to deliver competitive performance when compared to its Peer Group was also deemed to be relevant by the Board as a useful indicator of how the Adviser is executing the Fund's investment
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program. The Adviser's ability to execute this program was one of the Board's considerations in reaching a conclusion that the nature, extent and quality of the Adviser's investment management services warrant the continuation of the investment advisory contract.
In evaluating the Fund's investment performance, the Board considered performance results in light of the Fund's investment objective, strategies and risks, as disclosed in the Fund's prospectus. The Board considered detailed investment reports on the Fund's performance that were provided to the Board throughout the year and in connection with the May meetings. The CCO also reviewed information regarding the performance of other mutual funds in the Peer Group, noting the CCO's view that comparisons to fund peer groups may be helpful, though not conclusive, in evaluating the performance of the Adviser in managing the Fund. The Board considered, in evaluating such comparisons, that in some cases there may be differences in the funds' objectives or investment management techniques, or the costs to implement the funds, even within the same Peer Group.
For the periods covered by the CCO Fee Evaluation Report, the Fund's performance for the one-year and three-year periods was above the median of the relevant Peer Group and the Fund's performance was at median of the relevant Peer Group for the five-year period.
Following such evaluation, and full deliberations, the Board concluded that the performance of the Fund supported renewal of the Fund's investment advisory contract.
The Board also received financial information about Federated, including information regarding the compensation and ancillary (or “fall-out”) benefits Federated derived from its relationships with the Federated Funds. This information covered not only the fees under the investment advisory contracts, but also fees received by Federated's subsidiaries for providing other services to the Federated Funds under separate contracts (e.g., for serving as the Federated funds' administrator and distributor). In this regard, the Board considered that certain Federated subsidiaries provide distribution and shareholder services to the Federated Funds, for which they may be compensated through distribution and servicing fees paid pursuant to Rule 12b-1 plans or otherwise. The information also detailed any indirect benefit Federated may derive from its receipt of research services from brokers who execute Federated Fund trades. In addition, the Board considered the fact that, in order for a Federated Fund to be competitive in the marketplace, the Adviser and its affiliates frequently waived fees and/or reimbursed expenses and have disclosed to Federated Fund investors and/or indicated to the Board their intention to do so in the future. Moreover, the Board receives regular reporting as to the institution, adjustment or elimination of these voluntary waivers. The Board considered Federated's previous reductions in contractual management fees to certain Federated Funds in response to the CCO's recommendations in the prior year's CCO Fee Evaluation Report.
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Federated furnished information, requested by the CCO, that reported revenues on a fund-by-fund basis and made estimates of the allocation of expenses on a fund-by-fund basis, using allocation methodologies specified by the CCO. The CCO noted that, while these cost allocation reports apply consistent allocation processes, the inherent difficulties in allocating costs continues to cause the CCO to question the precision of the process and to conclude that such reports may be unreliable, since a single change in an allocation estimate may dramatically alter the resulting estimate of cost and/or profitability of a Federated Fund and may produce unintended consequences. The allocation information, including the CCO's view that fund-by-fund estimations may be unreliable, was considered in the evaluation by the Board.
The Board and the CCO also reviewed information compiled by Federated comparing its profitability information to other publicly held fund management companies, including information regarding profitability trends over time. In this regard, the CCO concluded that Federated's profit margins did not appear to be excessive. The CCO also noted that Federated appeared financially sound, with the resources necessary to fulfill its obligations under its contracts with the Fund.
The CCO Fee Evaluation Report also discussed the notion of possible realization of “economies of scale” as a fund grows larger, the difficulties of calculating economies of scale at an individual fund level, and the extent to which potential scale benefits are shared with shareholders. In this regard, the Board considered that Federated has made significant and long-term investments in areas that support all of the Federated Funds, such as personnel and processes for the portfolio management, shareholder services, compliance, internal audit and risk management functions, as well as systems technology (including technology relating to cybersecurity) and that the benefits of these investments (as well as any economies of scale, should they exist) were likely to be shared with the Federated Fund family as a whole. The Board noted that Federated's investments in these areas are extensive. In addition, the Board considered that the Adviser and its affiliates have frequently waived fees and/or reimbursed expenses and that this has allowed potential economies of scale to be shared with shareholders. The Board also considered that such waivers and reimbursements can provide protection from an increase in expenses if a Federated Fund's assets decline. Federated, as it does throughout the year, and specifically in connection with the Board's review of the advisory and subadvisory contracts, furnished information relative to revenue sharing or adviser-paid fees. Federated and the CCO noted that this information should be viewed to determine if there was an incentive to either not apply breakpoints, or to apply breakpoints at higher levels, and should not be viewed to determine the appropriateness of advisory fees. The Board also noted the absence of any
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applicable regulatory or industry guidelines on this subject, which (as discussed in the CCO Fee Evaluation Report) is compounded by the lack of any common industry practice or general pattern with respect to structuring fund advisory fees with “breakpoints” that serve to reduce the fee as a fund attains a certain size.
The CCO stated that his observations and the information accompanying the CCO Fee Evaluation Report supported a finding by the Board that the management fee for the Fund was reasonable. Under these circumstances, no changes were recommended to, and no objection was raised to the continuation of, the Fund's investment advisory contract. The CCO also recognized that the Board's evaluation of the Federated Funds' advisory and subadvisory arrangements is a continuing and on-going process that is informed by the information that the Board requests and receives from management throughout the course of the year and, in this regard, the CCO noted certain items for future reporting to the Board or further consideration by management as the Board continues its on-going oversight of the Federated Funds.
In its decision to continue an existing investment advisory contract, the Board was mindful of the potential disruptions of the Fund's operations and various risks, uncertainties and other effects that could occur as a result of a decision to terminate or not renew an investment advisory contract. In particular, the Board recognized that many shareholders have invested in the Fund on the strength of the Adviser's industry standing and reputation and with the expectation that the Adviser will have a continuing role in providing advisory services to the Fund. Thus, the Board's approval of the investment advisory contract reflected the fact that it is the shareholders who have effectively selected the Adviser by virtue of having invested in the Fund. The Board concluded that, in light of the factors summarized above, including the nature, quality and scope of the services provided to the Fund by the Adviser and its affiliates, continuation of the investment advisory contract was appropriate.
The Board based its decision to approve the investment advisory contract on the totality of the circumstances and relevant factors and with a view to past and future long-term considerations. Not all of the factors and considerations identified above were necessarily relevant to the Fund, nor did the Board consider any one of them to be determinative. With respect to the factors that were relevant, the Board's decision to approve the continuation of the contract reflects its view that Federated's performance and actions provided a satisfactory basis to support the decision to continue the existing arrangement.
Annual Shareholder Report
57

Voting Proxies on Fund Portfolio Securities
A description of the policies and procedures that the Fund uses to determine how to vote proxies, if any, relating to securities held in the Fund's portfolio is available, without charge and upon request, by calling 1-800-341-7400. A report on “Form N-PX” of how the Fund voted any such proxies during the most recent 12-month period ended June 30 is available via the Proxy Voting Record (Form N-PX) link associated with the Fund and share class name at www.FederatedInvestors.com/FundInformation. Form N-PX filings are also available at the SEC's website at www.sec.gov.
Quarterly Portfolio Schedule
Each fiscal quarter, the Fund will file with the SEC a complete schedule of its monthly portfolio holdings on “Form N-PORT.” The Fund's holdings as of the end of the third month of every fiscal quarter, as reported on Form N-PORT, will be publicly available on the SEC's website at www.sec.gov within 60 days of the end of the fiscal quarter upon filing. You may also access this information via the link to the Fund and share class name at www.FederatedInvestors.com.
Annual Shareholder Report
58

Mutual funds are not bank deposits or obligations, are not guaranteed by any bank and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board or any other government agency. Investment in mutual funds involves investment risk, including the possible loss of principal.
This Report is authorized for distribution to prospective investors only when preceded or accompanied by the Fund's Prospectus, which contains facts concerning its objective and policies, management fees, expenses and other information.
    
Federated Max-Cap Index Fund
Federated Investors Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
Contact us at FederatedInvestors.com
or call 1-800-341-7400.
Federated Securities Corp., Distributor
CUSIP 31420E502
CUSIP 31420E809
CUSIP 31420E106
CUSIP 31420E403
29454 (12/19)
Federated is a registered trademark of Federated Investors, Inc.
2019 ©Federated Investors, Inc.

 

 

 

 

 

 

 

 

 

 

 

Annual Shareholder Report
October 31, 2019
Share Class | TickerInstitutional | FMCRXService | FMDCXR6 | FMCLX 

Federated Mid-Cap Index Fund
Fund Established 1992

A Portfolio of Federated Index Trust
IMPORTANT NOTICE REGARDING REPORT DELIVERY
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund's shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund or your financial intermediary electronically by contacting your financial intermediary (such as a broker-dealer or bank); other shareholders may call the Fund at 1-800-341-7400, Option 4.
You may elect to receive all future reports in paper free of charge. You can inform the Fund or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by contacting your financial intermediary (such as a broker-dealer or bank); other shareholders may call the Fund at 1-800-341-7400, Option 4. Your election to receive reports in paper will apply to all funds held with the Fund complex or your financial intermediary.

Not FDIC Insured ■ May Lose Value ■ No Bank Guarantee

J. Christopher
Donahue
President
Federated Mid-Cap Index Fund
Letter from the President
Dear Valued Shareholder,
I am pleased to present the Annual Shareholder Report for your fund covering the period from November 1, 2018 through October 31, 2019. This report includes Management's Discussion of Fund Performance, a complete listing of your fund's holdings, performance information and financial statements along with other important fund information.
In addition, our website, FederatedInvestors.com, offers easy access to Federated resources that include timely fund updates, economic and market insights from our investment strategists, and financial planning tools.
Thank you for investing with Federated. I hope you find this information useful and look forward to keeping you informed.
Sincerely,
J. Christopher Donahue, President
         


Management's Discussion of Fund Performance (unaudited)
The total return of Federated Mid-Cap Index Fund (the “Fund”), based on net asset value for the 12-month reporting period ended October 31, 2019, was 8.63% for Institutional Shares, 8.32% for Service Shares and 8.59% for Class R6 Shares. The total return of the Standard and Poor's MidCap 400® Index (S&P 400),1 the Fund's broad-based securities market index, was 9.02% for the same period. The Fund's total return for the most recently completed fiscal year reflected actual cash flows, transaction costs and other expenses which were not reflected in the total return of the S&P 400.
The Fund normally invests its assets primarily in the common stocks included in the S&P 400. Under normal circumstances, Fund management will also use enhanced strategies (discussed further below) in an attempt to improve the performance of the portfolio relative to the S&P 400 to compensate for fund expenses and tracking error (difference in the Fund's performance relative to the performance of the S&P 400). During the reporting period, the Fund's investment strategy focused on the use of enhanced strategies, which was the most significant factor affecting the Fund's performance relative to the S&P 400.
The following discussion will focus on the performance of the Fund's Institutional Shares.
Market Overview
During the reporting period, the domestic equity market had positive performance as evidenced by the 13.66% return of the S&P Composite 1500® Index (S&P 1500).2 The large-cap portion of the S&P 1500, as represented by the S&P 500® Index,3 led the market with a 14.33% return for the reporting period. The largest stocks in the S&P 1500, as represented by the S&P 100® Index,4 followed with a return of 14.06%. Mid-cap stock performance trailed its larger peers as the S&P 400 returned 9.02%. Small-cap stocks in the S&P 1500, as represented by the S&P SmallCap 600® Index,5 had the worst performance of the market cap segments, returning 3.24% for the reporting period. Value stocks slightly outperformed growth stocks as the S&P Composite 1500® Value Index6 returned 13.69% versus the 13.67% return of the S&P Composite 1500® Growth Index.7
Within the S&P 400, sector8 performance was mixed during the reporting period. Utilities, Real Estate, Information Technology, Health Care, Communication Services, Consumer Discretionary, Materials, Industrials and Financials all had positive performance for the reporting period, while Energy and Consumer Staples had negative performance. Information Technology led the way (21.67%), followed by Industrials (18.05%) and Real Estate (16.89%). The Energy sector posted the weakest results (-46.61%), followed by Consumer Staples (-0.92%) and Health Care (0.11%).
Annual Shareholder Report
1

NVR, Inc. (Consumer Discretionary), Teradyne, Inc. (Information Technology) and Universal Display Corporation (Information Technology) posted the strongest contribution to performance in the S&P 400, while Valaris PLC Class A (Energy), Grubhub, Inc. (Consumer Discretionary) and Transocean Ltd. (Energy) detracted the most from S&P 400 performance for the reporting period.
Enhanced Strategies
Portfolio management of the enhanced strategies of the Fund consisted of overweighting and underweighting stocks relative to the S&P 400 based upon Fund management's quantitative analysis of the securities. During the reporting period, the Fund underperformed the S&P 400 by 0.39% on a net basis and underperformed the S&P 400 by 0.08% on a gross basis. This underperformance on a gross basis was primarily due to the underperformance of the quantitative strategy. The Fund invested in a stock-based strategy that also utilized S&P 400 futures9 to provide equity exposure on the Fund's cash balances. The S&P 400 had positive performance for the reporting period; therefore, the trading of futures contracts had a positive effect on the Fund's performance.
1Please see the footnotes to the line graphs below for definitions of, and further information about, the S&P 400.
2The S&P Composite 1500® Index combines three leading indices: the S&P 500® Index, the S&P MidCap 400® Index and the S&P SmallCap 600® Index to cover approximately 90% of the U.S. market capitalization.*
3The 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.*
4The 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.*
5The 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.*
6The 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.*
7The 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.*
8Sector classifications are based upon the classification of the Standard & Poor's Global Industry Classification Standard.
9The 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.
Annual Shareholder Report
2

FUND PERFORMANCE AND GROWTH OF A $10,000 INVESTMENT
The graph below illustrates the hypothetical investment of $10,0001 in the Federated Mid-Cap Index Fund from October 31, 2009 to October 31, 2019, compared to the Standard & Poor's MidCap 400® Index (S&P 400).2The Average Annual Total Return table below shows returns for each class averaged over the stated periods.
Growth of a $10,000 Investment
Growth of $10,000 as of October 31, 2019
Federated Mid-Cap Index Fund -Institutional SharesService SharesS&P 400
FFI
10/31/200910,00010,00010,000
10/31/201012,70712,70712,764
10/31/201113,71813,71813,855
10/31/201215,33015,30815,532
10/31/201320,46020,38820,733
10/31/201422,83622,69023,149
10/31/201523,55923,35023,942
10/31/201624,93724,66625,439
10/31/201730,72130,30531,412
10/31/201830,97530,47631,733
10/31/201933,64933,01134,594
41 graphic description end -->
The Fund offers multiple share classes whose performance may be greater than or less than its other share class(es) due to differences in sales charges and expenses. See the Average Annual Return table below for the returns of additional classes not shown in the line graph above.
Average Annual Total Returnsfor the Period Ended 10/31/2019
 1 Year5 Years10 Years
Institutional Shares38.63%8.06%12.90%
Service Shares8.32%7.79%12.68%
Class R6 Shares38.59%7.96%12.78%
S&P 4009.02%8.37%13.21%
    
Annual Shareholder Report
3

Performance data quoted represents past performance which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For current to the most recent month-end performance and after-tax returns, visit FederatedInvestors.com or call 1-800-341-7400. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Mutual funds are not obligations of or guaranteed by any bank and are not federally insured.
1The 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.
2The 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.
3The 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.
Annual Shareholder Report
4

Portfolio of Investments Summary Table (unaudited)
At October 31, 2019, the Fund's sector composition1 for its equity securities investments was as follows:
Sector CompositionPercentage of
Total Net Assets
Financials16.3%
Industrials16.3%
Information Technology14.9%
Consumer Discretionary12.1%
Real Estate11.2%
Health Care9.3%
Materials6.0%
Utilities4.6%
Consumer Staples2.7%
Communication Services2.3%
Energy2.1%
Securities Lending Collateral23.9%
Cash Equivalents32.2%
Derivative Contracts40.1%
Other Assets and Liabilities—Net5(4.0)%
TOTAL6100.0%
1Except 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.
2Represents 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.
3Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements other than those representing securities lending collateral.
4Based 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.
5Assets, other than investments in securities and derivative contracts, less liabilities. See Statement of Assets and Liabilities.
6The 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 100.0%.
Annual Shareholder Report
5

Portfolio of Investments
October 31, 2019
Shares  Value
 1COMMON STOCKS—97.8% 
  Communication Services—2.3% 
14,7332AMC Networks, Inc.$641,622
1,770 Cable One, Inc.2,345,905
31,483 Cinemark Holdings, Inc.1,152,278
42,1372Live Nation Entertainment, Inc.2,970,658
4,841 Meredith Corp.182,506
42,485 New York Times Co., Class A1,312,787
70,545 Tegna, Inc.1,060,291
32,199 Telephone and Data System, Inc.840,072
14,789 Wiley (John) & Sons, Inc., Class A681,329
10,9913World Wrestling Entertainment, Inc.615,936
21,4402Yelp, Inc.739,894
  TOTAL12,543,278
  Consumer Discretionary—12.1% 
24,561 Aaron's, Inc.1,840,356
29,1832Adient PLC618,388
23,3342Adtalem Global Education, Inc.694,887
52,279 American Eagle Outfitters, Inc.804,051
18,5622AutoNation, Inc.943,878
44,8463Bed Bath & Beyond, Inc.614,390
26,748 Boyd Gaming Corp.728,883
5,353 Brinker International, Inc.237,941
21,425 Brunswick Corp.1,247,792
148,8972Caesars Entertainment Corp.1,828,455
14,426 Carter's, Inc.1,446,062
14,0023Cheesecake Factory, Inc.585,144
10,564 Churchill Downs, Inc.1,373,214
7,0993Cracker Barrel Old Country Store, Inc.1,103,895
48,013 Dana, Inc.779,251
10,8702Deckers Outdoor Corp.1,662,023
9,1163Delphi Technologies PLC111,306
13,158 Dick's Sporting Goods, Inc.512,241
4,0423Dillard's, Inc., Class A278,817
12,9483Domino's Pizza, Inc.3,516,936
24,873 Dunkin' Brands Group Inc.1,955,515
21,4212,3Eldorado Resorts, Inc.959,018
Annual Shareholder Report
6

Shares  Value
 1COMMON STOCKS—continued 
  Consumer Discretionary—continued 
37,5182,3Etsy, Inc.$1,669,176
17,3342Five Below, Inc.2,168,657
35,192 Foot Locker, Inc.1,531,204
76,709 Gentex Corp.2,151,687
75,771 Goodyear Tire & Rubber Co.1,202,486
1,264 Graham Holdings Co.795,890
29,0952,3GrubHub, Inc.990,976
7,4032Helen of Troy Ltd.1,108,673
10,989 Jack in the Box, Inc.923,296
17,763 KB HOME633,961
9,446 Marriott Vacations Worldwide Corp.1,038,399
111,3602,3Mattel, Inc.1,329,638
8,6552Murphy USA, Inc.1,020,684
12,5122Ollie's Bargain Outlet Holding, Inc.799,267
7,4613Papa John's International, Inc.436,842
36,3552Penn National Gaming, Inc.774,907
18,3383Polaris, Inc., Class A1,809,044
12,044 Pool Corp.2,497,926
40,9482Sally Beauty Holdings, Inc.634,694
28,3532,3Scientific Games Corp.680,188
55,153 Service Corp. International2,508,358
25,235 Six Flags Entertainment Corp.1,064,665
42,8142Skechers USA, Inc., Class A1,599,959
13,5202Tempur Sealy International, Inc.1,229,644
21,228 Texas Roadhouse, Inc.1,199,382
54,329 The Wendy's Co.1,150,688
18,003 Thor Industries, Inc.1,138,870
41,264 Toll Brothers, Inc.1,641,069
47,5292TRI Pointe Group, Inc.748,106
12,4762Urban Outfitters, Inc.358,061
9,3282Visteon Corp.867,691
24,9723Williams-Sonoma, Inc.1,667,880
15,8352,3WW International, Inc.552,166
29,619 Wyndham Destinations, Inc.1,374,618
28,755 Wyndham Hotels & Resorts, Inc.1,551,907
  TOTAL66,693,102
  Consumer Staples—2.7% 
11,0253Casey's General Stores, Inc.1,883,180
Annual Shareholder Report
7

Shares  Value
 1COMMON STOCKS—continued 
  Consumer Staples—continued 
18,4572Edgewell Personal Care Co.$645,995
21,0663Energizer Holdings, Inc.895,094
71,277 Flowers Foods, Inc.1,548,136
12,1192,3Hain Celestial Group, Inc.286,493
17,346 Ingredion, Inc.1,370,334
6,483 Lancaster Colony Corp.902,304
18,413 Nu Skin Enterprises, Inc., Class A820,852
14,4252Pilgrim's Pride Corp.437,943
21,7162Post Holdings, Inc.2,234,576
5,739 Sanderson Farms, Inc.888,455
39,2462Sprouts Farmers Market, Inc.761,765
2,8362The Boston Beer Co., Inc., Class A1,061,969
3,7153Tootsie Roll Industries, Inc.127,350
18,3062,3TreeHouse Foods, Inc.988,890
  TOTAL14,853,336
  Energy—2.1% 
87,2943Antero Midstream Corp.562,173
25,7542Apergy Corp.648,228
381,0562,3Chesapeake Energy Corp.510,615
64,7412CNX Resources Corp.545,767
14,778 Core Laboratories NV650,823
102,310 EQT Corp.1,098,809
43,0393Equitrans Midstream Corp.599,103
17,7872Matador Resources Co.247,417
35,7683Murphy Oil Corp.737,894
103,1212,3Oasis Petroleum Inc.269,146
34,4172Oceaneering International, Inc.487,345
68,144 Patterson-UTI Energy, Inc.566,958
33,633 PBF Energy, Inc.1,085,673
193,6862Southwestern Energy Co.397,056
186,7652,3Transocean Ltd.887,134
26,905 World Fuel Services Corp.1,123,822
135,2802WPX Energy Inc.1,350,095
  TOTAL11,768,058
  Financials—16.3% 
4,3862Alleghany Corp.3,413,580
25,527 American Financial Group, Inc.2,655,829
52,726 Associated Banc-Corp.1,060,320
Annual Shareholder Report
8

Shares  Value
 1COMMON STOCKS—continued 
  Financials—continued 
30,7273BancorpSouth Bank$942,397
11,916 Bank of Hawaii Corp.1,040,386
47,0493Bank OZK1,320,195
43,926 Berkley, W. R. Corp.3,070,427
35,7182Brighthouse Financial, Inc.1,348,712
70,596 Brown & Brown2,660,057
24,946 Cathay Bancorp, Inc.887,329
51,537 CNO Financial Group, Inc.806,554
26,078 Commerce Bancshares, Inc.1,678,380
18,211 Cullen Frost Bankers, Inc.1,640,447
46,118 East West Bancorp, Inc.1,979,385
36,076 Eaton Vance Corp.1,645,066
12,955 Evercore, Inc., Class A954,006
10,865 FactSet Research Systems2,754,495
29,677 Federated Investors, Inc.947,883
33,683 First American Financial Corp.2,080,936
12,7023First Cash, Inc.1,071,922
33,7823First Financial Bankshares, Inc.1,124,265
99,774 First Horizon National Corp.1,593,391
105,018 FNB Corp. (PA)1,266,517
48,094 Fulton Financial Corp.820,484
216,2622Genworth Financial, Inc., Class A925,601
16,7012,3Green Dot Corp.481,657
21,089 Hancock Whitney Corp.822,471
11,804 Hanover Insurance Group, Inc.1,554,705
50,917 Home Bancshares, Inc.940,946
18,483 Interactive Brokers Group, Inc., Class A879,236
19,199 International Bancshares Corp.786,391
51,581 Janus Henderson Group PLC1,193,069
77,814 Jefferies Financial Group, Inc.1,452,787
15,871 Kemper Corp.1,140,807
23,793 Legg Mason, Inc.886,527
1,5372LendingTree, Inc.553,089
8,374 Mercury General Corp.402,454
83,098 Navient Corp.1,144,259
165,757 New York Community Bancorp, Inc.1,931,069
85,638 Old Republic International Corp.1,913,153
43,744 PacWest Bancorp1,618,091
Annual Shareholder Report
9

Shares  Value
 1COMMON STOCKS—continued 
  Financials—continued 
17,516 Pinnacle Financial Partners, Inc.$1,030,291
13,360 Primerica, Inc.1,685,765
28,5173Prosperity Bancshares, Inc.1,968,243
19,034 Reinsurance Group of America3,092,454
12,214 RenaissanceRe Holdings Ltd.2,286,217
39,772 SEI Investments Co.2,383,138
17,613 Selective Insurance Group, Inc.1,217,411
16,453 Signature Bank1,946,719
137,307 SLM Corp.1,158,871
65,985 Sterling Bancorp1,296,605
26,169 Stifel Financial Corp.1,464,941
49,133 Synovus Financial Corp.1,664,135
54,129 TCF Financial Corp.2,142,967
10,7082Texas Capital Bancshares, Inc.578,874
18,302 Trustmark Corp.628,125
12,515 UMB Financial Corp.816,729
71,189 Umpqua Holdings Corp.1,126,210
30,0543United Bankshares, Inc.1,188,335
107,326 Valley National Bancorp1,242,835
23,078 Washington Federal, Inc.841,424
34,102 Webster Financial Corp. Waterbury1,503,898
21,591 Wintrust Financial Corp.1,377,938
  TOTAL90,031,400
  Health Care—9.3% 
28,9992Acadia Healthcare Co., Inc.869,680
56,6402Allscripts Healthcare Solutions, Inc.619,642
9,5252,3Amedisys, Inc.1,224,153
7,3692Avanos Medical, Inc.324,531
6,7942Bio-Rad Laboratories, Inc., Class A2,253,026
11,635 Bio-Techne Corp.2,422,058
8,3173Cantel Medical Corp.606,226
44,9412Catalent, Inc.2,186,380
14,6772Charles River Laboratories International, Inc.1,907,716
5,551 Chemed Corp.2,186,594
8,9252Covetrus, Inc.88,491
31,291 Encompass Health Corp.2,003,250
107,2952Exelixis, Inc.1,657,708
23,2282,3Globus Medical, Inc.1,216,450
Annual Shareholder Report
10

Shares  Value
 1COMMON STOCKS—continued 
  Health Care—continued 
17,7722Haemonetics Corp.$2,145,614
22,6752HealthEquity Inc.1,287,713
23,207 Hill-Rom Holdings, Inc.2,429,541
6,2702ICU Medical, Inc.1,013,295
22,2832Integra Lifesciences Corp.1,293,751
3,2932,3Ligand Pharmaceuticals, Inc., Class B358,311
15,6222Livanova PLC1,104,944
14,7912Masimo Corp.2,156,380
28,3332MEDNAX Inc.622,193
19,8282Molina Healthcare, Inc.2,332,566
54,1492,3Nektar Therapeutics927,302
16,8962NuVasive, Inc.1,191,844
11,130 Patterson Cos., Inc.190,657
9,5172,3Penumbra, Inc.1,484,366
19,9002PRA Health Sciences, Inc.1,944,429
17,0372Prestige Consumer Healthcare, Inc.604,132
13,6642Repligen Corp.1,086,151
25,775 STERIS PLC3,648,967
18,8452Syneos Health, Inc.945,077
34,0802,3Tenet Healthcare Corp.863,587
10,3992United Therapeutics Corp.934,246
22,391 West Pharmaceutical Services, Inc.3,220,721
  TOTAL51,351,692
  Industrials—16.3% 
12,718 Acuity Brands, Inc.1,587,079
47,2702AECOM1,891,273
23,035 AGCO Corp.1,766,554
17,1722ASGN, Inc.1,091,967
19,8892Avis Budget Group, Inc.590,902
15,300 Brinks Co. (The)1,299,888
19,329 Carlisle Cos., Inc.2,943,227
19,4502Clean Harbors, Inc.1,603,847
16,4272Colfax Corp.551,947
16,400 Crane Co.1,254,928
12,887 Curtiss Wright Corp.1,742,967
18,895 Deluxe Corp.979,328
38,341 Donaldson Co., Inc.2,022,104
4,3772Dycom Industries, Inc.199,547
Annual Shareholder Report
11

Shares  Value
 1COMMON STOCKS—continued 
  Industrials—continued 
16,707 Emcor Group, Inc.$1,465,371
13,975 EnerSys, Inc.934,368
45,7783Fluor Corp.737,484
11,5852FTI Consulting, Inc.1,261,259
7,553 GATX Corp.600,841
19,9152,3Genesee & Wyoming, Inc., Class A2,211,162
50,326 Graco, Inc.2,274,735
6,2763Granite Construction, Inc.147,737
11,9273Healthcare Services Group, Inc.290,542
14,827 HNI Corp.563,426
18,848 Hubbell, Inc.2,670,762
12,497 Insperity, Inc.1,320,058
28,057 ITT Corp.1,667,989
107,2262Jet Blue Airways Corp.2,069,462
43,3113KAR Auction Services, Inc.1,076,711
27,196 Kennametal, Inc.841,716
19,1662Kirby Corp.1,517,181
30,076 Knight-Swift Transportation Holdings, Inc.1,096,571
12,066 Landstar System, Inc.1,365,268
10,6573Lennox International, Inc.2,636,116
18,666 Lincoln Electric Holdings1,671,914
19,101 Manpower, Inc.1,736,663
22,7902Mastec, Inc.1,434,403
17,1402,3Mercury Systems, Inc.1,262,532
17,035 Miller Herman, Inc.792,128
10,506 MSA Safety, Inc.1,261,455
14,666 MSC Industrial Direct Co.1,073,698
15,424 Nordson Corp.2,418,637
11,2992Now, Inc.119,091
50,504 nVent Electric PLC1,164,622
19,444 Old Dominion Freight Lines, Inc.3,540,364
21,831 OshKosh Truck Corp.1,863,931
34,479 Owens Corning, Inc.2,112,873
13,683 Regal Beloit Corp.1,013,226
41,6252Resideo Technologies, Inc.396,686
11,288 Ryder System, Inc.548,935
22,7232Stericycle, Inc.1,308,845
19,1472Taser International, Inc.978,986
Annual Shareholder Report
12

Shares  Value
 1COMMON STOCKS—continued 
  Industrials—continued 
12,0752Teledyne Technologies, Inc.$3,979,920
10,490 Terex Corp.289,000
16,2333Tetra Tech, Inc.1,419,901
22,345 Timken Co.1,094,905
36,581 Toro Co.2,821,493
18,2872Trex Co., Inc.1,607,244
17,955 Trinity Industries, Inc.355,150
6,290 Valmont Industries, Inc.862,925
9,744 Watsco, Inc.1,717,867
15,250 Werner Enterprises, Inc.556,625
19,847 Woodward, Inc.2,116,881
29,1972XPO Logistics, Inc.2,230,651
  TOTAL90,025,868
  Information Technology—14.9% 
34,3542ACI Worldwide, Inc.1,078,372
24,9462Arrow Electronics, Inc.1,977,719
33,232 Avnet, Inc.1,314,658
12,950 Belden, Inc.664,076
15,760 Blackbaud, Inc.1,323,052
8,8842CACI International, Inc., Class A1,987,795
31,674 CDK Global, Inc.1,600,804
54,6282Ciena Corp.2,027,791
22,8582Cirrus Logic, Inc.1,553,430
53,756 Cognex Corp.2,767,896
5,6662Coherent, Inc.843,781
14,0472Commvault Systems, Inc.697,714
23,9272CoreLogic, Inc.968,804
34,0862,3Cree, Inc.1,626,925
111,696 Cypress Semiconductor Corp.2,599,166
8,7532Fair Isaac & Co., Inc.2,661,262
19,4052First Solar, Inc.1,004,985
26,7532,3II-VI, Inc.886,862
10,606 InterDigital, Inc.568,800
13,7593j2 Global, Inc.1,306,555
41,899 Jabil, Inc.1,542,721
43,306 KBR, Inc.1,219,497
7,897 Littelfuse, Inc.1,386,476
15,0752LiveRamp Holdings, Inc.589,282
Annual Shareholder Report
13

Shares  Value
 1COMMON STOCKS—continued 
  Information Technology—continued 
16,009 LogMeIn, Inc.$1,051,471
24,6632Lumentum Holdings, Inc.1,545,384
23,1392,3Manhattan Associates, Inc.1,734,268
23,078 Maximus, Inc.1,771,006
13,943 MKS Instruments, Inc.1,508,911
12,071 Monolithic Power Systems1,809,684
35,403 National Instruments Corp.1,465,330
37,6502NCR Corp.1,099,756
20,4072NetScout Systems, Inc.494,257
40,533 Perspecta, Inc.1,075,746
2,592 Plantronics, Inc.102,177
28,0122,3PTC, Inc.1,874,283
83,268 Sabre Corp.1,955,133
18,359 Science Applications International Corp.1,516,821
21,6762Semtech Corp.1,093,771
12,9032Silicon Laboratories, Inc.1,370,815
14,8162,3Solaredge Technologies, Inc.1,258,767
11,5822Synaptics, Inc.487,718
10,314 Synnex Corp.1,214,370
13,1312Tech Data Corp.1,595,416
26,7492Teradata Corp.800,598
51,549 Teradyne, Inc.3,155,830
84,7152Trimble, Inc.3,375,046
11,7032Tyler Technologies, Inc.3,142,490
14,563 Universal Display Corp.2,915,221
17,0962ViaSat, Inc.1,176,889
25,4743Vishay Intertechnology, Inc.513,301
13,0982WEX, Inc.2,477,880
18,0042Zebra Technologies Corp., Class A4,282,611
  TOTAL82,063,373
  Materials—6.0% 
41,5672,3Allegheny Technologies, Inc.873,323
19,313 Aptargroup, Inc.2,281,831
19,385 Ashland Global Holdings, Inc.1,499,818
19,027 Cabot Corp.829,387
15,705 Carpenter Technology Corp.769,859
34,026 Chemours Co./The558,367
21,724 Commercial Metals Corp.419,925
Annual Shareholder Report
14

Shares  Value
 1COMMON STOCKS—continued 
  Materials—continued 
5,815 Compass Minerals International, Inc.$328,431
20,893 Domtar, Corp.760,296
15,945 Eagle Materials, Inc.1,456,416
9,513 Greif, Inc., Class A372,624
13,5332Ingevity Corp.1,139,614
27,443 Louisiana-Pacific Corp.802,159
11,836 Minerals Technologies, Inc.585,290
2,862 Newmarket Corp.1,389,472
53,627 Olin Corp.983,519
20,724 Owens-Illinois, Inc.176,154
25,374 Polyone Corp.813,237
23,182 Reliance Steel & Aluminum Co.2,690,039
22,400 Royal Gold, Inc.2,585,856
39,250 RPM International, Inc.2,842,878
11,629 Scotts Miracle-Gro Co.1,167,435
13,856 Sensient Technologies Corp.866,831
33,112 Silgan Holdings, Inc.1,018,856
29,968 Sonoco Products Co.1,729,154
69,557 Steel Dynamics, Inc.2,111,751
28,3283United States Steel Corp.326,055
55,653 Valvoline, Inc.1,187,635
12,854 Worthington Industries, Inc.473,156
  TOTAL33,039,368
  Real Estate—11.2% 
31,808 Alexander and Baldwin, Inc.747,806
41,271 American Campus Communities, Inc.2,062,725
89,234 Brixmor Property Group, Inc.1,964,933
32,335 Camden Property Trust3,698,154
21,206 CoreCivic, Inc.323,604
10,926 Coresite Realty Corp.1,283,805
36,421 Corporate Office Properties Trust1,079,518
38,024 Cousins Properties, Inc.1,525,903
34,237 Cyrusone, Inc.2,440,413
49,569 Douglas Emmett, Inc.2,147,329
13,729 EastGroup Properties, Inc.1,839,000
23,241 EPR PPTYS1,807,917
45,897 First Industrial Realty Trust1,932,723
40,496 Geo Group, Inc.616,349
Annual Shareholder Report
15

Shares  Value
 1COMMON STOCKS—continued 
  Real Estate—continued 
38,281 Healthcare Realty Trust, Inc.$1,331,030
33,216 Highwoods Properties, Inc.1,554,509
35,063 JBG Smith Properties1,411,636
16,298 Jones Lang LaSalle, Inc.2,387,983
32,152 Kilroy Realty Corp.2,698,517
25,865 Lamar Advertising Co.2,069,459
47,653 Liberty Property Trust2,814,863
13,890 Life Storage, Inc.1,512,899
40,564 Mack-Cali Realty Corp.868,881
134,934 Medical PPTYS Trust, Inc.2,797,182
57,881 National Retail Properties, Inc.3,409,770
65,5463Omega Healthcare Investors, Inc.2,886,646
63,620 Park Hotels & Resorts, Inc.1,479,165
30,6213Pebblebrook Hotel Trust787,266
14,230 PotlatchDeltic Corp.604,348
7,687 PS Business Parks, Inc.1,387,888
41,930 Rayonier, Inc.1,131,271
60,9093Sabra Health Care REIT, Inc.1,498,361
42,362 Senior Housing Properties Trust420,443
50,770 Service Properties Trust1,284,481
26,686 Spirit Realty Capital, Inc.1,330,030
32,2973Tanger Factory Outlet Centers, Inc.520,628
20,192 Taubman Centers, Inc.722,470
66,447 Uniti Group, Inc.459,813
21,6503Urban Edge Properties457,031
27,904 Weingarten Realty Investors885,394
  TOTAL62,182,143
  Utilities—4.6% 
15,328 Allete, Inc.1,319,128
66,772 Aqua America, Inc.3,026,775
18,148 Black Hills Corp.1,430,607
32,427 Hawaiian Electric Industries, Inc.1,464,079
15,070 Idacorp, Inc.1,621,833
63,375 MDU Resources Group, Inc.1,830,904
21,043 National Fuel Gas Co.953,458
28,992 New Jersey Resources Corp.1,264,051
15,479 Northwestern Corp.1,122,537
60,598 OGE Energy Corp.2,609,350
Annual Shareholder Report
16

Shares  Value
 1COMMON STOCKS—continued 
  Utilities—continued 
15,706 ONE Gas, Inc.$1,458,145
29,868 PNM Resources, Inc.1,557,616
16,179 Southwest Gas Holdings, Inc.1,412,427
12,577 Spire, Inc.1,057,222
69,855 UGI Corp.3,329,988
  TOTAL25,458,120
  TOTAL COMMON STOCKS
(IDENTIFIED COST $340,784,187)
540,009,738
  INVESTMENT COMPANIES—6.1% 
16,277,418 Federated Government Obligations Fund, Premier Shares, 1.750%416,277,418
17,105,962 Federated Institutional Prime Value Obligations Fund, Institutional Shares, 1.930%417,111,094
  TOTAL INVESTMENT COMPANIES
(IDENTIFIED COST $33,386,041)
33,388,512
  TOTAL INVESTMENT IN SECURITIES—103.9%
(IDENTIFIED COST $374,170,228)5
573,398,250
  OTHER ASSETS AND LIABILITIES - NET—(3.9)%6(21,390,589)
  TOTAL NET ASSETS—100%$552,007,661
At October 31, 2019, the Fund had the following outstanding futures contracts:
DescriptionNumber of
Contracts
Notional
Value
Expiration
Date
Value and
Unrealized
Appreciation
2S&P MidCap 400 E-Mini, Long Futures62$12,121,000December 2019$51,017
Unrealized Appreciation on Futures Contracts is included in
“Other Assets and Liabilities—Net.”
Annual Shareholder Report
17

Affiliated fund holdings are investment companies which are managed by the Manager or an affiliate of the Manager. Transactions with affiliated fund holdings during the period ended October 31, 2019, were as follows:
 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 10/31/201836,61831,461,32043,162,32774,660,265
Purchases/Additions207,934,143300,999,062508,933,205
Sales/Reductions(6,941)(223,118,045)(327,055,427)(550,180,413)
Balance of Shares Held 10/31/201929,67716,277,41817,105,96233,413,057
Value$947,883$16,277,418$17,111,094$34,336,395
Change in Unrealized Appreciation/ Depreciation$184,933N/A$392$185,325
Net Realized Gain/(Loss)$64,688N/A$8,834$73,522
Dividend Income$17,697$478,463$767,825$1,263,985
*All or a portion of the balance/activity for the fund relates to cash collateral received on securities lending transactions.
1The 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 $12,121,000 at October 31, 2019, which represents 2.2% 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 100.0%.
2Non-income-producing security.
3All or a portion of these securities are temporarily on loan to unaffiliated broker/dealers.
47-day net yield.
5The cost of investments for federal tax purposes amounts to $378,535,095.
6Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities.
Note: The categories of investments are shown as a percentage of total net assets at October 31, 2019.
Annual Shareholder Report
18

Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below:
Level 1—quoted prices in active markets for identical securities.
Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Also includes securities valued at amortized cost.
Level 3—significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.
As of October 31, 2019, all investments of the Fund utilized Level 1 inputs in valuing the Fund's assets carried at fair value.
The following acronym is used throughout this portfolio:
REIT—Real Estate Investment Trust
See Notes which are an integral part of the Financial Statements
Annual Shareholder Report
19

Financial HighlightsInstitutional Shares
(For a Share Outstanding Throughout Each Period)
Year Ended October 3120192018201720162015
Net Asset Value, Beginning of Period$23.69$27.75$25.13$27.25$29.32
Income From Investment Operations:     
Net investment income0.260.320.2610.3410.32
Net realized and unrealized gain (loss)1.37(0.01)5.221.030.57
TOTAL FROM INVESTMENT OPERATIONS1.630.315.481.370.89
Less Distributions:     
Distributions from net investment income(0.27)(0.31)(0.28)(0.32)(0.33)
Distributions from net realized gain(4.36)(4.06)(2.58)(3.17)(2.63)
TOTAL DISTRIBUTIONS(4.63)(4.37)(2.86)(3.49)(2.96)
Net Asset Value, End of Period$20.69$23.69$27.75$25.13$27.25
Total Return28.63%0.83%23.19%5.85%3.17%
Ratios to Average Net Assets:     
Net expenses0.31%0.31%0.31%0.30%0.30%
Net investment income1.31%1.28%1.01%1.40%1.15%
Expense waiver/reimbursement30.12%0.10%0.12%0.10%0.10%
Supplemental Data:     
Net assets, end of period (000 omitted)$161,149$154,139$166,962$161,135$153,751
Portfolio turnover31%29%35%33%36%
1Per share numbers have been calculated using the average shares method.
2Based on net asset value.
3This expense decrease is reflected in both the net expense and the net investment income ratios shown above.
See Notes which are an integral part of the Financial Statements
Annual Shareholder Report
20

Financial HighlightsService Shares
(For a Share Outstanding Throughout Each Period)
Year Ended October 3120192018201720162015
Net Asset Value, Beginning of Period$23.71$27.77$25.15$27.26$29.33
Income From Investment Operations:     
Net investment income0.210.260.200.2810.25
Net realized and unrealized gain (loss)1.36(0.02)5.211.040.57
TOTAL FROM INVESTMENT OPERATIONS1.570.245.411.320.82
Less Distributions:     
Distributions from net investment income(0.22)(0.24)(0.21)(0.26)(0.26)
Distributions from net realized gain(4.36)(4.06)(2.58)(3.17)(2.63)
TOTAL DISTRIBUTIONS(4.58)(4.30)(2.79)(3.43)(2.89)
Net Asset Value, End of Period$20.70$23.71$27.77$25.15$27.26
Total Return28.32%0.56%22.86%5.64%2.91%
Ratios to Average Net Assets:     
Net expenses0.56%0.56%0.56%0.55%0.55%
Net investment income1.08%1.03%0.76%1.16%0.91%
Expense waiver/reimbursement30.11%0.10%0.09%0.10%0.10%
Supplemental Data:     
Net assets, end of period (000 omitted)$336,868$434,678$639,787$660,471$763,853
Portfolio turnover31%29%35%33%36%
1Per share numbers have been calculated using the average shares method.
2Based on net asset value.
3This expense decrease is reflected in both the net expense and the net investment income ratios shown above.
See Notes which are an integral part of the Financial Statements
Annual Shareholder Report
21

Financial HighlightsClass R6 Shares
(For a Share Outstanding Throughout Each Period)
 Year Ended October 31,Period
Ended
10/31/20161
201920182017
Net Asset Value, Beginning of Period$23.72$27.78$25.15$25.29
Income From Investment Operations:    
Net investment income0.260.320.2620.012
Net realized and unrealized gain (loss)1.36(0.01)5.23(0.15)
TOTAL FROM INVESTMENT OPERATIONS1.620.315.49(0.14)
Less Distributions:    
Distributions from net investment income(0.27)(0.31)(0.28)
Distributions from net realized gain(4.36)(4.06)(2.58)
TOTAL DISTRIBUTIONS(4.63)(4.37)(2.86)
Net Asset Value, End of Period$20.71$23.72$27.78$25.15
Total Return38.59%0.83%23.23%(0.55)%
Ratios to Average Net Assets:    
Net expenses0.30%0.30%0.30%0.26%4
Net investment income1.34%1.26%0.96%0.52%4
Expense waiver/reimbursement50.08%0.07%0.06%—%
Supplemental Data:    
Net assets, end of period (000 omitted)$53,991$46,064$29,384$06
Portfolio turnover31%29%35%33%7
1Reflects operations for the period from October 18, 2016 (date of initial investment) to October 31, 2016.
2Per share numbers have been calculated using the average shares method.
3Based on net asset value. Total returns for periods of less than one year are not annualized.
4Computed on an annualized basis.
5This expense decrease is reflected in both the net expense and the net investment income ratios shown above.
6Represents less than $1,000.
7Portfolio turnover is calculated at the Fund level. Percentage indicated was calculated for the fiscal year ended October 31, 2016.
See Notes which are an integral part of the Financial Statements
Annual Shareholder Report
22

Statement of Assets and Liabilities
October 31, 2019
Assets:  
Investment in securities, at value including $20,282,298 of securities loaned and $34,336,395 of investment in affiliated holdings* (identified cost $374,170,228) $573,398,250
Restricted cash (Note 2) 508,200
Income receivable 370,133
Receivable for shares sold 168,731
Receivable for daily variation margin on futures contracts 17,399
TOTAL ASSETS 574,462,713
Liabilities:  
Payable for collateral due to broker for securities lending$21,292,797 
Payable for investments purchased549,537 
Payable for shares redeemed320,620 
Payable for other service fees (Notes 2 and 5)73,575 
Payable for management fee (Note 5)6,746 
Payable for administrative fee (Note 5)567 
Accrued expenses (Note 5)211,210 
TOTAL LIABILITIES 22,455,052
Net assets for 26,668,668 shares outstanding $552,007,661
Net Assets Consists of:  
Paid-in capital $308,620,205
Total distributable earnings 243,387,456
TOTAL NET ASSETS $552,007,661
Net Asset Value, Offering Price and Redemption Proceeds Per Share:  
Institutional Shares:  
Net asset value per share ($161,148,947 ÷ 7,789,784 shares outstanding), no par value, unlimited shares authorized $20.69
Service Shares:  
Net asset value per share ($336,867,764 ÷ 16,272,506 shares outstanding), no par value, unlimited shares authorized $20.70
Class R6 Shares:  
Net asset value per share ($53,990,950 ÷ 2,606,378 shares outstanding), no par value, unlimited shares authorized $20.71
*See information listed after the Fund's Portfolio of Investments.
See Notes which are an integral part of the Financial Statements
Annual Shareholder Report
23

Statement of Operations
Year Ended October 31, 2019
Investment Income:   
Dividends (including $286,537 received from affiliated holdings* and net of foreign taxes withheld of $5,031)  $9,369,062
Net Income on securities loaned (includes $977,448 received from affiliated holdings related to cash collateral balances*)  65,582
Interest  5,717
TOTAL INCOME  9,440,361
Expenses:   
Management fee (Note 5) $1,731,784 
Custodian fees 58,628 
Transfer agent fees (Note 2) 332,179 
Directors'/Trustees' fees (Note 5) 7,833 
Auditing fees 27,201 
Legal fees 11,521 
Other service fees (Notes 2 and 5) 909,541 
Portfolio accounting fees 132,507 
Share registration costs 49,371 
Printing and postage 26,413 
Miscellaneous (Note 5) 77,156 
TOTAL EXPENSES 3,364,134 
Waiver and Reimbursements:   
Waiver/reimbursement of management fee (Note 5)$(486,850)  
Reimbursement of other operating expenses (Note 2)(139,352)  
TOTAL WAIVER AND REIMBURSEMENTS (626,202) 
Net expenses  2,737,932
Net investment income  6,702,429
Annual Shareholder Report
24

Statement of Operationscontinued
Realized and Unrealized Gain (Loss) on Investments and Futures Contracts:   
Net realized gain on investments (including net realized gain of $73,522 on sales of investments in affiliated holdings*)  $46,582,314
Net realized gain on futures contracts  1,481,474
Net change in unrealized appreciation of investments (including net change in unrealized gain of $185,325 on investments in affiliated holdings*)  (11,207,478)
Net change in unrealized depreciation of futures contracts  772,076
Net realized and unrealized gain on investments and futures contracts  37,628,386
Change in net assets resulting from operations  $44,330,815
*See information listed after the Fund's Portfolio of Investments.
See Notes which are an integral part of the Financial Statements
Annual Shareholder Report
25

Statement of Changes in Net Assets
Year Ended October 3120192018
Increase (Decrease) in Net Assets  
Operations:  
Net investment income$6,702,429$8,193,589
Net realized gain48,063,788117,098,160
Net change in unrealized appreciation/depreciation(10,435,402)(112,128,220)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS44,330,81513,163,529
Distributions to Shareholders:  
Institutional Shares(29,979,084)(24,273,850)
Service Shares(82,183,206)(91,881,445)
Class R6 Shares(8,858,500)(6,232,678)
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS(121,020,790)(122,387,973)
Share Transactions:  
Proceeds from sale of shares141,403,976167,111,673
Net asset value of shares issued to shareholders in payment of distributions declared117,944,341118,419,740
Cost of shares redeemed(265,532,051)(377,559,501)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS(6,183,734)(92,028,088)
Change in net assets(82,873,709)(201,252,532)
Net Assets:  
Beginning of period634,881,370836,133,902
End of period$552,007,661$634,881,370
See Notes which are an integral part of the Financial Statements
Annual Shareholder Report
26

Notes to Financial Statements
October 31, 2019
1. ORGANIZATION
Federated Index Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Trust consists of two portfolios. The financial statements included herein are only those of Federated Mid-Cap Index Fund (the “Fund”), a diversified portfolio. The financial statements of the other portfolio are presented separately. The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held. Each portfolio pays its own expenses. The Fund offers three classes of shares: Institutional Shares, Service Shares and Class R6 Shares. All shares of the Fund have equal rights with respect to voting, except on class-specific matters. The investment objective of the Fund is to provide investment results generally corresponding to the aggregate price and dividend performance of the publicly traded common stocks that comprise the mid-level stock capitalization sector of the U.S. equity market. This group of stocks is known as the S&P MidCap 400 Index.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with U.S. generally accepted accounting principles (GAAP).
Investment Valuation
In calculating its net asset value (NAV), the Fund generally values investments as follows:
■ 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.
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If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, if the Fund cannot obtain price evaluations from a pricing service or from more than one dealer for an investment within a reasonable period of time as set forth in the Fund's valuation policies and procedures, or if information furnished by a pricing service, in the opinion of the valuation committee (“Valuation Committee”), is deemed not representative of the fair value of such security, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could obtain the fair value assigned to an investment if it sold the investment at approximately the time at which the Fund determines its NAV per share.
Fair Valuation and Significant Events Procedures
The Trustees have ultimate responsibility for determining the fair value of investments for which market quotations are not readily available. The Trustees have appointed a Valuation Committee comprised of officers of the Fund, Federated Equity Management Company of Pennsylvania (the “Manager”) and certain of the Manager's affiliated companies to assist in determining fair value and in overseeing the calculation of the NAV. The Trustees have also authorized the use of pricing services recommended by the Valuation Committee to provide fair value evaluations of the current value of certain investments for purposes of calculating the NAV. The Valuation Committee employs various methods for reviewing third-party pricing-service evaluations including periodic reviews of third-party pricing services' policies, procedures and valuation methods (including key inputs, methods, models and assumptions), transactional back-testing, comparisons of evaluations of different pricing services, and review of price challenges by the Manager based on recent market activity. In the event that market quotations and price evaluations are not available for an investment, the Valuation Committee determines the fair value of the investment in accordance with procedures adopted by the Trustees. The Trustees periodically review and approve the fair valuations made by the Valuation Committee and any changes made to the procedures.
Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a “bid” evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and asked for the investment (a “mid” evaluation). The Fund normally uses bid evaluations for any U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for any other types of fixed-income securities and any OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Trustees.
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The Trustees also have adopted procedures requiring an investment to be priced at its fair value whenever the Manager determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment's value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:
■ 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.
The Trustees have adopted procedures whereby the Valuation Committee uses a pricing service to provide factors to update the fair value of equity securities traded principally in foreign markets from the time of the close of their respective foreign stock exchanges to the pricing time of the Fund. For other significant events, the Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Fund will determine the fair value of the investment in accordance with the fair valuation procedures approved by the Trustees. The Trustees have ultimate responsibility for any fair valuations made in response to a significant event.
Repurchase Agreements
The Fund may invest in repurchase agreements for short-term liquidity purposes. It is the policy of the Fund to require the other party to a repurchase agreement to transfer to the Fund's custodian or sub-custodian eligible securities or cash with a market value (after transaction costs) at least equal to the repurchase price to be paid under the repurchase agreement. The eligible securities are transferred to accounts with the custodian or sub-custodian in which the Fund holds a “securities entitlement” and exercises “control” as those terms are defined in the Uniform Commercial Code. The Fund has established procedures for monitoring the market value of the transferred securities and requiring the transfer of additional eligible securities if necessary to equal at least the repurchase price. These procedures also allow the other party to require securities to be transferred from the account to the extent that their market value exceeds the repurchase price or in exchange for other eligible securities of equivalent market value.
The insolvency of the other party or other failure to repurchase the securities may delay the disposition of the underlying securities or cause the Fund to receive less than the full repurchase price. Under the terms of the repurchase agreement, any amounts received by the Fund in excess of the repurchase price and related transaction costs must be remitted to the other party.
The Fund may enter into repurchase agreements in which eligible securities are transferred into joint trading accounts maintained by the custodian or sub-custodian for investment companies and other clients advised by the Fund's Manager and its affiliates. The Fund will participate on a pro rata basis with the other investment companies and clients in its share of the securities transferred under such repurchase agreements and in its share of proceeds from any repurchase or other disposition of such securities.
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Investment Income, Gains and Losses, Expenses and Distributions
Investment transactions are accounted for on a trade-date basis. Realized gains and losses from investment transactions are recorded on an identified-cost basis. Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Foreign dividends are recorded on the ex-dividend date or when the Fund is informed of the ex-dividend date. Distributions of net investment income, if any, are declared and paid quarterly. Non-cash dividends included in dividend income, if any, are recorded at fair value. Amortization/accretion of premium and discount is included in investment income. Investment income, realized and unrealized gains and losses, and certain fund-level expenses are allocated to each class based on relative average daily net assets, except that select classes will bear certain expenses unique to those classes. The detail of the total fund expense waiver and reimbursements of $626,202 is disclosed in various locations in this Note 2 and Note 5.
 Transfer Agent
Fees Incurred
Transfer Agent
Fees Reimbursed
Institutional Shares$95,345$(56,385)
Service Shares228,737(82,967)
Class R6 Shares8,097
TOTAL$332,179$(139,352)
Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses.
Other Service Fees
The Fund may pay other service fees up to 0.25% of the average daily net assets of the Fund's Service Shares to unaffiliated financial intermediaries or to Federated Shareholder Services Company (FSSC) for providing services to shareholders and maintaining shareholder accounts. Subject to the terms described in the Expense Limitation note, FSSC may voluntarily reimburse the Fund for other service fees. For the year ended October 31, 2019, other service fees for the Fund were as follows:
 Other Service
Fees Incurred
Service Shares$909,541
Federal Taxes
It is the Fund's policy to comply with the Subchapter M provision of the Internal Revenue Code and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal income tax is necessary. As of and during the year ended October 31, 2019, the Fund did not have a liability for any uncertain tax positions. The Fund recognizes interest and penalties, if any, related to tax liabilities as income tax expense in the Statement of Operations. As of October 31, 2019, tax years 2016 through 2019 remain subject to examination by the Fund's major tax jurisdictions, which include the United States of America and the Commonwealth of Massachusetts.
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When-Issued and Delayed-Delivery Transactions
The Fund may engage in when-issued or delayed-delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed-delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.
Futures Contracts
The Fund purchases stock index futures contracts to manage cash flows, enhance yield and to maintain exposure to the S&P MidCap 400 Index and to potentially reduce transaction costs. Upon entering into a financial futures contract with a broker, the Fund is required to deposit in a segregated account, either U.S. government securities or a specified amount of Restricted cash, which is shown in the Statement of Assets and Liabilities. Futures contracts are valued daily and unrealized gains or losses are recorded in a “variation margin” account. Daily, the Fund receives from or pays to the broker a specified amount of cash based upon changes in the variation margin account. When a contract is closed, the Fund recognizes a realized gain or loss. Futures contracts have market risks, including the risk that the change in the value of the contract may not correlate with the changes in the value of the underlying securities. There is minimal counterparty risk to the Fund since futures contracts are exchange traded and the exchange's clearing house, as counterparty to all exchange traded futures contracts, guarantees the futures contracts against default.
Futures contracts outstanding at the period end are listed after the Fund's Portfolio of Investments.
The average notional value of long futures contracts held by the Fund throughout the period was $18,449,979. This is based on amounts held as of each month-end throughout the fiscal period.
Securities Lending
The Fund participates in a securities lending program providing for the lending of equity securities to qualified brokers. The term of the loans within the program is one year or less. The Fund normally receives cash collateral for securities loaned that may be invested in affiliated money market funds, other money market instruments and/or repurchase agreements. Investments in money market funds may include funds with a “floating” NAV that can impose redemption fees and liquidity gates, impose certain operational impediments to investing cash collateral, and, if the investee fund's NAV decreases, result in the Fund recognizing losses and being required to cover the decrease in the value of the cash collateral. Collateral is maintained at a minimum level of 100% of the market value of investments loaned, plus interest, if applicable. Earnings on collateral are allocated between the borrower of the security, the securities lending agent, as a fee for its services under the program and the Fund, according to agreed-upon rates. The Fund will not have the right to vote on securities while they are on loan. However, the Fund will attempt to terminate a loan in an effort to reacquire the securities in time to vote on matters that are deemed to be material by the Manager. There can be no assurance that the Fund will have sufficient notice of such matters to be able to terminate the loan in time to vote thereon.
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Securities lending transactions are subject to Master Netting Agreements which are agreements between the Fund and its counter parties that provide for the net settlement of all transactions and collateral with the Fund, through a single payment, in the event of default or termination. Amounts presented on the Portfolio of Investments and Statement of Assets and Liabilities are not net settlement amount but gross. As indicated below, the cash collateral received by the Fund exceeds the market value of the securities loaned reducing the net settlement amount to zero. The chart below identifies the amount of collateral received as well as the market value of securities on loan. Additionally, the securities lending agreement executed by the Fund includes an indemnification clause. This clause stipulates that the borrower will reimburse the Fund for any losses as a result of any failure of the borrower to return equivalent securities to the Fund.
As of October 31, 2019, securities subject to this type of arrangement and related collateral were as follows:
Market Value of
Securities Loaned
Collateral
Received
$20,282,298$21,292,797
Additional Disclosure Related to Derivative Instruments
 Asset
 Statement of
Assets and
Liabilities
Location
Fair
Value
Derivatives not accounted for as hedging
instruments under ASC Topic 815
  
Equity contractsReceivable for daily
variation margin on
futures contracts
$51,017*
*Includes cumulative appreciation 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.
The Effect of Derivative Instruments on the Statement of Operations for the Year Ended October 31, 2019
Amount of Realized Gain or (Loss) on Derivatives Recognized in Income
 Futures
Contracts
Equity contracts1,481,474
    
Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income
 Futures
Contracts
Equity contracts$772,076
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Other
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated. The Fund applies investment company accounting and reporting guidance.
3. SHARES OF BENEFICIAL INTEREST
The following tables summarize share activity:
Year Ended October 3120192018
Institutional Shares:SharesAmountSharesAmount
Shares sold3,310,212$65,960,5282,288,309$56,901,517
Shares issued to shareholders in payment of distributions declared1,514,96529,178,550940,97823,001,459
Shares redeemed(3,541,891)(70,125,078)(2,738,687)(70,682,142)
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS1,283,286$25,014,000490,600$9,220,834
    
Year Ended October 3120192018
Service Shares:SharesAmountSharesAmount
Shares sold2,687,419$56,294,2562,668,040$67,711,023
Shares issued to shareholders in payment of distributions declared4,150,25579,945,2723,648,22189,186,527
Shares redeemed(8,897,527)(180,119,132)(11,021,808)(281,309,674)
NET CHANGE RESULTING FROM SERVICE SHARE TRANSACTIONS(2,059,853)$(43,879,604)(4,705,547)$(124,412,124)
    
Year Ended October 3120192018
Class R6 Shares:SharesAmountSharesAmount
Shares sold977,895$19,149,1921,656,177$42,499,133
Shares issued to shareholders in payment of distributions declared457,2258,820,519254,3806,231,754
Shares redeemed(770,934)(15,287,841)(1,026,244)(25,567,685)
NET CHANGE RESULTING FROM CLASS R6 SHARE TRANSACTIONS664,186$12,681,870884,313$23,163,202
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS(112,381)$(6,183,734)(3,330,634)$(92,028,088)
4. FEDERAL TAX INFORMATION
The tax character of distributions as reported on the Statement of Changes in Net Assets for the years ended October 31, 2019 and 2018, was as follows:
 20192018
Ordinary income1$12,788,563$15,094,907
Long-term capital gains$108,232,227$107,293,066
1For tax purposes, short-term capital gain distributions are considered ordinary income distributions.
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As of October 31, 2019, the components of distributable earnings on a tax-basis were as follows:
Undistributed ordinary income2$583,316
Net unrealized appreciation$194,863,155
Undistributed long-term capital gains$47,940,985
2For tax purposes, short-term capital gains are considered ordinary income in determining distributable earnings.
The difference between book-basis and tax-basis net unrealized appreciation/depreciation is attributable to differing treatments for deferral of losses on wash sales and mark-to-market on futures contracts.
At October 31, 2019, the cost of investments for federal tax purposes was $378,535,095. The net unrealized appreciation of investments for federal tax purposes was $194,863,155. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $217,552,484 and net unrealized depreciation from investments for those securities having an excess of cost over value of $22,689,329. The amounts presented are inclusive of derivative contracts.
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Management Fee
The management agreement between the Fund and the Manager provides for an annual fee equal to 0.30% of the Fund's average daily net assets. Subject to the terms described in the Expense Limitation note, the Manager may voluntarily choose to waive any portion of its fee. For the year ended October 31, 2019, the Manager waived $461,139 of its fee.
The Manager has agreed to reimburse the Fund for certain investment adviser fees as a result of transactions in other affiliated investment companies. For the year ended October 31, 2019, the Manager reimbursed $25,711.
Other Service Fees
For the year ended October 31, 2019, FSSC received $11,547 of the other service fees disclosed in Note 2.
Expense Limitation
The Manager and certain of its affiliates (which may include FSSC) on their own initiative have agreed to waive certain amounts of their respective fees and/or reimburse expenses. Total annual fund operating expenses (as shown in the financial highlights, excluding interest expense, extraordinary expenses and proxy-related expenses paid by the Fund, if any) paid by the Fund's Institutional Shares, Service Shares and Class R6 Shares (after the voluntary waivers and/or reimbursements) will not exceed 0.31%, 0.56% and 0.30% (the “Fee Limit”), respectively, up to but not including the later of (the “Termination Date”): (a) January 1, 2021; or (b) the date of the Fund's next effective Prospectus. While the Manager and its applicable affiliates currently do not anticipate terminating or increasing these arrangements prior to the Termination Date, these arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the agreement of the Trustees.
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Directors'/Trustees' and Miscellaneous Fees
Certain Officers and Trustees of the Fund are Officers and Directors or Trustees of certain of the above companies. To efficiently facilitate payment, Independent Directors'/Trustees' fees and certain expenses related to conducting meetings of the Directors/Trustees and other miscellaneous expenses are paid by an affiliate of the Manager which in due course are reimbursed by the Fund. These expenses related to conducting meetings of the Directors/Trustees and other miscellaneous expenses may be included in Accrued and Miscellaneous Expenses on the Statement of Assets and Liabilities and Statement of Operations, respectively.
6. INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding long-term U.S. government securities and short-term obligations, for the year ended October 31, 2019, were as follows:
Purchases$172,557,224
Sales$292,845,517
7. LINE OF CREDIT
The Fund participates with certain other Federated Funds, on a several basis, in an up to $500,000,000 unsecured, 364-day, committed, revolving line of credit (LOC) agreement. The LOC was made available to finance temporarily the repurchase or redemption of shares of the Fund, failed trades, payment of dividends, settlement of trades and for other short-term, temporary or emergency general business purposes. The Fund cannot borrow under the LOC if an inter-fund loan is outstanding. The Fund's ability to borrow under the LOC also is subject to the limitations of the Act and various conditions precedent that must be satisfied before the Fund can borrow. Loans under the LOC are charged interest at a fluctuating rate per annum equal to the highest, on any day, of (a) (i) the federal funds effective rate, (ii) the one month London Interbank Offered Rate (LIBOR), and (iii) 0.0%, plus (b) a margin. The LOC also requires the Fund to pay, quarterly in arrears and at maturity, its pro rata share of a commitment fee based on the amount of the lenders' commitment that has not been utilized. As of October 31, 2019, the Fund had no outstanding loans. During the year ended October 31, 2019, the Fund did not utilize the LOC.
8. INTERFUND LENDING
Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the Fund, along with other funds advised by subsidiaries of Federated Investors, Inc., may participate in an interfund lending program. This program provides an alternative credit facility allowing the Fund to borrow from other participating affiliated funds. As of October 31, 2019, there were no outstanding loans. During the year ended October 31, 2019, the program was not utilized.
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9. FEDERAL TAX INFORMATION (UNAUDITED)
For the fiscal year ended October 31, 2019, 56.96% of total ordinary income (including short-term capital gain) distributions made by the Fund are qualifying dividends which may be subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth Tax Relief Act of 2003. Complete information is reported in conjunction with the reporting of your distributions on Form 1099-DIV.
Of the ordinary income (including short-term capital gain) distributions made by the Fund during the year ended October 31, 2019, 55.05% qualify for the dividend received deduction available to corporate shareholders.
For the year ended October 31, 2019, the amount of long-term capital gains designated by the Fund was $108,232,227.
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Report of Independent Registered Public Accounting Firm
TO THE BOARD OF Trustees OF Federated Index Trust AND SHAREHOLDERS OF Federated Mid-Cap Index fund:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of Federated Mid-Cap Index Fund (the “Fund”) (one of the portfolios constituting Federated Index Trust (the “Trust”)), including the portfolio of investments, as of October 31, 2019, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the portfolios constituting Federated Index Trust) at October 31, 2019, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Trust's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Trust's internal control over financial reporting. Accordingly, we express no such opinion.
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Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2019, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor of one or more Federated investment companies since 1979.
Boston, Massachusetts
December 20, 2019
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Shareholder Expense Example (unaudited)
As a shareholder of the Fund, you incur ongoing costs, including management fees and to the extent applicable, distribution (12b-1) fees and/or other service fees and other Fund expenses. This Example is intended to help you to understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. It is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from May 1, 2019 to October 31, 2019.
ACTUAL EXPENSES
The first section of the table below provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, toestimate the expenses that you incurred over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses attributable to your investment during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and anassumed rate of return of 5% per year before expenses, which is not the Fund's actual return. Thus, you shouldnot use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are required to be provided to enable you to compare the ongoing costs of investing in the Fund with other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
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Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relativetotal costs of owning different funds.
 Beginning
Account Value
5/1/2019
Ending
Account Value
10/31/2019
Expenses Paid
During Period1
Actual:   
Institutional Shares$1,000$999.00$1.61
Service Shares$1,000$997.70$2.82
Class R6 Shares$1,000$998.60$1.56
Hypothetical (assuming a 5% return
before expenses):
   
Institutional Shares$1,000$1,023.59$1.63
Service Shares$1,000$1,022.38$2.85
Class R6 Shares$1,000$1,023.64$1.58
1Expenses 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 Shares0.32%
Service Shares0.56%
Class R6 Shares0.31%
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Board of Trustees and Trust Officers
The Board of Trustees is responsible for managing the Trust's business affairs and for exercising all the Trust's powers except those reserved for the shareholders. The following tables give information about each Trustee and the senior officers of the Fund. Where required, the tables separately list Trustees who are “interested persons” of the Fund (i.e., “Interested” Trustees) and those who are not (i.e., “Independent” Trustees). Unless otherwise noted, the address of each person listed is Federated Investors Tower, 1001 Liberty Avenue, Pittsburgh, PA 15222. The address of all Independent Trustees listed is 4000 Ericsson Drive, Warrendale, PA 15086-7561; Attention: Mutual Fund Board. As of December 31, 2018, the Trust comprised two portfolio(s), and the Federated Fund Family consisted of 40 investment companies (comprising 102 portfolios). Unless otherwise noted, each Officer is elected annually. Unless otherwise noted, each Trustee oversees all portfolios in the Federated Fund Family and serves for an indefinite term. The Fund's Statement of Additional Information includes additional information about Trust Trustees and is available, without charge and upon request, by calling 1-800-341-7400.
Interested Trustees Background
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.
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Name
Birth Date
Positions Held with Trust
Date Service Began
Principal Occupation(s) for Past Five Years,
Other Directorships Held and Previous Position(s)
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.
INDEPENDENT Trustees Background
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, Chairman of the Compensation Committee, KLX Energy Services Holdings, Inc. (oilfield services); former Director of KLX Corp. (aerospace).
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 of The Collins Group, Inc. (a private equity firm) and as a Director of KLX Corp. 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).
Annual Shareholder Report
42

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
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, Member of Governance and Compensation Committees, Publix Super Markets, Inc.; Director, Chair of the Audit Committee, Equifax, Inc.; Director, Member of the Audit Committee, Haverty Furniture Companies, 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 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. Mr. Hough previously served as an Executive Committee member of the United States Golf Association.
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; Adjunct Professor of Law, Duquesne University School of Law; formerly, Dean of the Duquesne University School of Law and Professor of Law and 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 held the position of Dean of the School of Law of Duquesne University (as well as Interim Dean). 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.; Regent, Saint Vincent Seminary; 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; Director, St. Vincent College; 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 and Author.
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 and Author.
Annual Shareholder Report
43

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
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).
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; Retired; 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).
Annual Shareholder Report
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OFFICERS
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.
Annual Shareholder Report
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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.
    
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Evaluation and Approval of Advisory ContractMay 2019
Federated Mid-Cap Index Fund (the “Fund”)
At its meetings in May 2019, the Fund's Board of Trustees (the “Board”), including a majority of those Trustees who are not “interested persons” of the Fund, as defined in the Investment Company Act of 1940 (the “Independent Trustees”), reviewed and unanimously approved the continuation of the Fund's investment advisory contract for an additional one-year term. The Board's decision regarding the contract reflects the exercise of its business judgment after considering all of the information received on whether to continue the existing arrangements.
At the request of the Independent Trustees, the Fund's Chief Compliance Officer (the CCO) furnished to the Board in advance of its May 2019 meetings an independent written evaluation presenting on the topics discussed below. The Board considered the CCO's independent written evaluation (the “CCO Fee Evaluation Report”), along with other information, in evaluating the reasonableness of the Fund's management fee and in deciding to approve the continuation of the investment advisory contract. The CCO, in preparing the CCO Fee Evaluation Report, has the authority to retain consultants, experts or staff as reasonably necessary to assist in the performance of his duties, reports directly to the Board, and can be terminated only with the approval of a majority of the Independent Trustees. At the request of the Independent Trustees, the CCO Fee Evaluation Report followed the same general approach and covered the same topics as that of the report that had previously been delivered by the CCO in his capacity as “Senior Officer,” prior to the elimination of the Senior Officer position in December 2017.
The Board also considered judicial decisions concerning allegedly excessive investment advisory fees in making its decision. Using these judicial decisions as a guide, the Board observed that the following factors may be relevant to an adviser's fiduciary duty with respect to its receipt of compensation from a fund: (1) the nature and quality of the services provided by an adviser to a fund and its shareholders (including the performance of the fund, its benchmark, and comparable funds); (2) an adviser's cost of providing the services (including the profitability to an adviser of providing advisory services to a fund); (3) the extent to which an adviser may realize “economies of scale” as a fund grows larger and, if such economies of scale exist, whether they have been shared with a fund and its shareholders or the family of funds; (4) any “fall-out” financial benefits that accrue to an adviser because of its relationship with a fund (including research services received from brokers that execute fund trades and any fees paid to affiliates of an adviser for services rendered to a fund); (5) comparative fee and expense structures (including a comparison of fees paid to an adviser with those paid by similar funds both internally and externally as well as management fees charged to institutional and other advisory clients of the
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adviser for what might be viewed as like services); and (6) the extent of care, conscientiousness and independence with which the fund's board members perform their duties and their expertise (including whether they are fully informed about all facts the board deems relevant to its consideration of an adviser's services and fees). The Board noted that the Securities and Exchange Commission (SEC) disclosure requirements regarding the basis for the Board's approval of the Fund's investment advisory contract generally align with the factors listed above. The Board was aware of these factors and was guided by them in its review of the Fund's investment advisory contract to the extent it considered them to be appropriate and relevant, as discussed further below.
The Board considered and weighed these factors in light of its substantial accumulated experience in governing the Fund and working with Federated Equity Management Company of Pennsylvania (the “Adviser”) and its affiliates (collectively, “Federated”) on matters relating to the funds advised by Federated (each, a “Federated Fund”). The Independent Trustees were assisted in their deliberations by independent legal counsel.
In addition to the extensive materials that comprise and accompany the CCO Fee Evaluation Report, the Board received detailed information about the Fund and the Federated organization throughout the year, and in connection with its May meetings at which the Board's formal approval of the advisory and subadvisory contracts occurred. In this regard, Federated provided much of this information at each regular meeting of the Board, and furnished additional information specifically in connection with the May meetings. In the months preceding the May meetings, the Board requested and reviewed written materials prepared by Federated in response to requests on behalf of the Independent Trustees encompassing a wide variety of topics. At the May meetings, in addition to meeting in separate sessions of the Independent Trustees without management present, senior management of the Adviser also met with the Independent Trustees and their counsel to discuss the materials presented and such additional matters as the Independent Trustees deemed reasonably necessary to evaluate the advisory and subadvisory contracts. Between regularly scheduled meetings, the Board also received information on particular matters as the need arose.
The Board's consideration of the investment advisory contract included review of the CCO Fee Evaluation Report, accompanying data and additional information covering the following matters, among others: the Adviser's investment philosophy, revenue, profitability, personnel and processes; investment and operating strategies; the Fund's short-term and long-term performance (in absolute terms, both on a gross basis and net of expenses, as well as in terms relative to its particular investment program and certain competitor or “peer group” funds and/or other benchmarks, as appropriate) and comments on the reasons for performance; the Fund's investment objectives; the Fund's expenses, including the advisory fee and the overall expense structure of the Fund (both in absolute terms and relative to similar and/or competing funds), with due
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regard for contractual or voluntary expense limitations; the use and allocation of brokerage commissions derived from trading the Fund's portfolio securities (if any); and the nature, quality and extent of the advisory and other services provided to the Fund by the Adviser and its affiliates. The Board also considered the preferences and expectations of Fund shareholders; the entrepreneurial and other risks assumed by the Adviser in sponsoring the Fund; the continuing state of competition in the mutual fund industry and market practices; the range of comparable fees for similar funds in the mutual fund industry; the Fund's relationship to the Federated Funds which include a comprehensive array of funds with different investment objectives, policies and strategies which are generally available for exchange without the incurrence of additional sales charges; compliance and audit reports concerning the Federated Funds and the Federated companies that service them (including communications from regulatory agencies), as well as Federated's responses to any issues raised therein; and relevant developments in the mutual fund industry and how the Federated Funds and/or Federated are responding to them. The Board's evaluation process is evolutionary. The criteria considered and the emphasis placed on relevant criteria change in recognition of changing circumstances in the mutual fund marketplace.
While mindful that courts have cautioned against giving too much weight to comparative information concerning fees charged by other advisers for managing funds with comparable investment programs, the Board has found the use of such comparisons to be relevant to its deliberations. In this regard, the Board was presented with, and considered, information regarding the contractual advisory fee rates, net advisory fee rates, total expense ratios and each element of the Fund's total expense ratio (i.e., gross and net advisory fees, custody fees, portfolio accounting fees and transfer agency fees) relative to an appropriate group of peer funds compiled by Federated using data supplied by independent fund ranking organizations (the “Peer Group”). The Board received a description of the composition and methodology used to select the Peer Group. The Board focused on comparisons with other similar mutual funds more heavily than non-mutual fund products or services because it is believed that they are more relevant. For example, other mutual funds are the products most like the Fund, in that they are readily available to Fund shareholders as alternative investment vehicles. Also, they are the type of investment vehicle, in fact, chosen and maintained by the Fund's investors. The range of their fees and expenses, therefore, appears to be a relevant indicator of what consumers have found to be reasonable in the marketplace in which the Fund competes.
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The Board reviewed the contractual advisory fee rate, net advisory fee rate and other expenses of the Fund and noted the position of the Fund's fee rates relative to its Peer Group. In this regard, the Board noted that the contractual advisory fee rate was above the median of the relevant Peer Group, but the Board noted the applicable waivers and reimbursements, and that the overall expense structure of the Fund remained competitive in the context of other factors considered relevant by the Board.
For comparison, the CCO reviewed the fees charged by Federated for providing advisory services to products other than the Federated Funds (e.g., institutional separate accounts and third-party unaffiliated mutual funds for which Federated serves as sub-adviser) (referenced to as “Comparable Funds/Accounts”). With respect to Comparable Funds/Accounts other than third-party mutual funds, the CCO concluded that they are inherently different products. Those differences include, but are not limited to, different types of targeted investors; different applicable laws and regulations; different legal structures; different average account sizes and portfolio management techniques made necessary by different cash flows and different associated costs; and the time spent by portfolio managers and their teams, as well as personnel in the Funds Financial Services, Legal, Compliance and Risk Management departments, in reviewing securities pricing, addressing different administrative responsibilities, addressing different degrees of risk associated with management and a variety of different costs. The CCO also reviewed the differences in the nature of the services required for Federated to manage its proprietary mutual fund business versus managing a discrete pool of assets as a sub-adviser to another institution's mutual fund, and that Federated generally performs significant additional services and assumes substantially greater risks in managing the Fund and other Federated Funds than in its role as sub-adviser to an unaffiliated third-party mutual fund. The CCO did not consider the fees for providing advisory services to Comparable Funds/Accounts to be determinative in judging the appropriateness of the Federated Funds' advisory fees.
Following such evaluation, and full deliberations, the Board concluded that the fees and expenses of the Fund are reasonable and supported renewal of the Fund's investment advisory contract.
The Board considered the nature, extent and quality of the services provided to the Fund by the Adviser and the resources of the Adviser and its affiliates dedicated to the Fund. In this regard, the Board evaluated, among other things, the Adviser's personnel, experience, track record, financial resources, overall reputation and willingness to invest in personnel and infrastructure that benefit the Fund. In addition, the Board reviewed the qualifications, backgrounds and responsibilities of the portfolio management team primarily responsible for the day-to-day management of the Fund and the Adviser's ability and experience in attracting and retaining qualified personnel to service the Fund. The Board noted the investment research and company engagement capabilities of the Adviser and its affiliates. The Board also noted the compliance program of the
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Adviser and the compliance-related resources provided to the Fund by the Adviser, including the Adviser's commitment to respond to rulemaking initiatives of the SEC. The Fund's ability to deliver competitive performance when compared to its Peer Group was also deemed to be relevant by the Board as a useful indicator of how the Adviser is executing the Fund's investment program. The Adviser's ability to execute this program was one of the Board's considerations in reaching a conclusion that the nature, extent and quality of the Adviser's investment management services warrant the continuation of the investment advisory contract.
In evaluating the Fund's investment performance, the Board considered performance results in light of the Fund's investment objective, strategies and risks, as disclosed in the Fund's prospectus. The Board considered detailed investment reports on the Fund's performance that were provided to the Board throughout the year and in connection with the May meetings. The CCO also reviewed information regarding the performance of other mutual funds in the Peer Group, noting the CCO's view that comparisons to fund peer groups may be helpful, though not conclusive, in evaluating the performance of the Adviser in managing the Fund. The Board considered, in evaluating such comparisons, that in some cases there may be differences in the funds' objectives or investment management techniques, or the costs to implement the funds, even within the same Peer Group.
For the one-year, three-year and five-year periods covered by the CCO Fee Evaluation Report, the Fund's performance was above the median of the relevant Peer Group.
Following such evaluation, and full deliberations, the Board concluded that the performance of the Fund supported renewal of the Fund's investment advisory contract.
The Board also received financial information about Federated, including information regarding the compensation and ancillary (or “fall-out”) benefits Federated derived from its relationships with the Federated Funds. This information covered not only the fees under the investment advisory contracts, but also fees received by Federated's subsidiaries for providing other services to the Federated Funds under separate contracts (e.g., for serving as the Federated funds' administrator and distributor). In this regard, the Board considered that certain Federated subsidiaries provide distribution and shareholder services to the Federated Funds, for which they may be compensated through distribution and servicing fees paid pursuant to Rule 12b-1 plans or otherwise. The information also detailed any indirect benefit Federated may derive from its receipt of research services from brokers who execute Federated Fund trades. In addition, the Board considered the fact that, in order for a Federated Fund to be competitive in the marketplace, the Adviser and its affiliates frequently waived fees and/or reimbursed expenses and have disclosed to Federated Fund investors and/or indicated to the Board their intention to do so in the future. Moreover, the Board receives regular reporting as to the institution, adjustment or
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elimination of these voluntary waivers. The Board considered Federated's previous reductions in contractual management fees to certain Federated Funds in response to the CCO's recommendations in the prior year's CCO Fee Evaluation Report.
Federated furnished information, requested by the CCO, that reported revenues on a fund-by-fund basis and made estimates of the allocation of expenses on a fund-by-fund basis, using allocation methodologies specified by the CCO. The CCO noted that, while these cost allocation reports apply consistent allocation processes, the inherent difficulties in allocating costs continues to cause the CCO to question the precision of the process and to conclude that such reports may be unreliable, since a single change in an allocation estimate may dramatically alter the resulting estimate of cost and/or profitability of a Federated Fund and may produce unintended consequences. The allocation information, including the CCO's view that fund-by-fund estimations may be unreliable, was considered in the evaluation by the Board.
The Board and the CCO also reviewed information compiled by Federated comparing its profitability information to other publicly held fund management companies, including information regarding profitability trends over time. In this regard, the CCO concluded that Federated's profit margins did not appear to be excessive. The CCO also noted that Federated appeared financially sound, with the resources necessary to fulfill its obligations under its contracts with the Fund.
The CCO Fee Evaluation Report also discussed the notion of possible realization of “economies of scale” as a fund grows larger, the difficulties of calculating economies of scale at an individual fund level, and the extent to which potential scale benefits are shared with shareholders. In this regard, the Board considered that Federated has made significant and long-term investments in areas that support all of the Federated Funds, such as personnel and processes for the portfolio management, shareholder services, compliance, internal audit and risk management functions, as well as systems technology (including technology relating to cybersecurity) and that the benefits of these investments (as well as any economies of scale, should they exist) were likely to be shared with the Federated Fund family as a whole. The Board noted that Federated's investments in these areas are extensive. In addition, the Board considered that the Adviser and its affiliates have frequently waived fees and/or reimbursed expenses and that this has allowed potential economies of scale to be shared with shareholders. The Board also considered that such waivers and reimbursements can provide protection from an increase in expenses if a Federated Fund's assets decline. Federated, as it does throughout the year, and specifically in connection with the Board's review of the advisory and subadvisory contracts, furnished information relative to revenue sharing or adviser-paid fees. Federated and the CCO noted that this information should be viewed to determine if there was an incentive to either not apply breakpoints, or to apply breakpoints at higher levels, and should not be viewed to determine the
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appropriateness of advisory fees. The Board also noted the absence of any applicable regulatory or industry guidelines on this subject, which (as discussed in the CCO Fee Evaluation Report) is compounded by the lack of any common industry practice or general pattern with respect to structuring fund advisory fees with “breakpoints” that serve to reduce the fee as a fund attains a certain size.
The CCO stated that his observations and the information accompanying the CCO Fee Evaluation Report supported a finding by the Board that the management fee for the Fund was reasonable. Under these circumstances, no changes were recommended to, and no objection was raised to the continuation of, the Fund's investment advisory contract. The CCO also recognized that the Board's evaluation of the Federated Funds' advisory and subadvisory arrangements is a continuing and on-going process that is informed by the information that the Board requests and receives from management throughout the course of the year and, in this regard, the CCO noted certain items for future reporting to the Board or further consideration by management as the Board continues its on-going oversight of the Federated Funds.
In its decision to continue an existing investment advisory contract, the Board was mindful of the potential disruptions of the Fund's operations and various risks, uncertainties and other effects that could occur as a result of a decision to terminate or not renew an investment advisory contract. In particular, the Board recognized that many shareholders have invested in the Fund on the strength of the Adviser's industry standing and reputation and with the expectation that the Adviser will have a continuing role in providing advisory services to the Fund. Thus, the Board's approval of the investment advisory contract reflected the fact that it is the shareholders who have effectively selected the Adviser by virtue of having invested in the Fund. The Board concluded that, in light of the factors summarized above, including the nature, quality and scope of the services provided to the Fund by the Adviser and its affiliates, continuation of the investment advisory contract was appropriate.
The Board based its decision to approve the investment advisory contract on the totality of the circumstances and relevant factors and with a view to past and future long-term considerations. Not all of the factors and considerations identified above were necessarily relevant to the Fund, nor did the Board consider any one of them to be determinative. With respect to the factors that were relevant, the Board's decision to approve the continuation of the contract reflects its view that Federated's performance and actions provided a satisfactory basis to support the decision to continue the existing arrangement.
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Voting Proxies on Fund Portfolio Securities
A description of the policies and procedures that the Fund uses to determine how to vote proxies, if any, relating to securities held in the Fund's portfolio is available, without charge and upon request, by calling 1-800-341-7400. A report on “Form N-PX” of how the Fund voted any such proxies during the most recent 12-month period ended June 30 is available via the Proxy Voting Record (Form N-PX) link associated with the Fund and share class name at www.FederatedInvestors.com/FundInformation. Form N-PX filings are also available at the SEC's website at www.sec.gov.
Quarterly Portfolio Schedule
Each fiscal quarter, the Fund will file with the SEC a complete schedule of its monthly portfolio holdings on “Form N-PORT.” The Fund's holdings as of the end of the third month of every fiscal quarter, as reported on Form N-PORT, will be publicly available on the SEC's website at www.sec.gov within 60 days of the end of the fiscal quarter upon filing. You may also access this information via the link to the Fund and share class name at www.FederatedInvestors.com.
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Mutual funds are not bank deposits or obligations, are not guaranteed by any bank and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board or any other government agency. Investment in mutual funds involves investment risk, including the possible loss of principal.
This Report is authorized for distribution to prospective investors only when preceded or accompanied by the Fund's Prospectus, which contains facts concerning its objective and policies, management fees, expenses and other information.
    
Federated Mid-Cap Index Fund
Federated Investors Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
Contact us at FederatedInvestors.com
or call 1-800-341-7400.
Federated Securities Corp., Distributor
CUSIP 31420E882
CUSIP 31420E205
CUSIP 31420E874
29455 (12/19)
Federated is a registered trademark of Federated Investors, Inc.
2019 ©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 2019 - $54,400

Fiscal year ended 2018 - $54,400

(b)       Audit-Related Fees billed to the registrant for the two most recent fiscal years:

Fiscal year ended 2019 - $0

Fiscal year ended 2018 - $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 2019 - $0

Fiscal year ended 2018 - $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 2019 - $0

Fiscal year ended 2018 - $0

Amount requiring approval of the registrant’s audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $19,112 and $24,438 respectively. Fiscal year ended 2019- Service fee for analysis of potential Passive Foreign Investment Company holdings. Fiscal year ended 2018- 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 2019 – 0%

Fiscal year ended 2018 - 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 2019 – 0%

Fiscal year ended 2018 – 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 2019 – 0%

Fiscal year ended 2018 – 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 2019 - $427,740

Fiscal year ended 2018 - $871,365

(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 June 18, 2019, the SEC adopted amendments to the Loan Rule, which, 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 involves 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 can vote on the election of members to the Hermes Fund’s committee is 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 28, 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, andcertain 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 eventscould 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 registrant’s most recent fiscal half-year (the registrant’s second fiscal half-year in the case of an annual 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.

 

RegistrantFederated Index Trust

 

By/S/ Lori A. Hensler

 

Lori A. Hensler, Principal Financial Officer

 

DateDecember 20, 2019

 

 

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

 

DateDecember 20, 2019

 

 

By/S/ Lori A. Hensler

 

Lori A. Hensler, Principal Financial Officer

 

DateDecember 20, 2019