File No. __________
As filed with the SEC on May 1, 2018
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-14
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
Pre-Effective Amendment No. __
Post-Effective Amendment No. __
(Check appropriate box or boxes)
FEDERATED INSURANCE SERIES
(Exact Name of Registrant as Specified in Charter)
1-800-341-7400
(Area Code and Telephone Number)
4000 Ericsson Drive
Warrendale, PA 15086-7561
(Address of Principal Executive Offices)
Peter J. Germain, Esquire
Federated Investors Tower
1001 Liberty Avenue
Pittsburgh, Pennsylvania 15222-3779
(Name and Address of Agent for Service)
Copies to:
Thomas Early, Esquire
Goodwin Procter LLP
601 S. Figueroa St.
41st Floor
Los Angeles, CA 90017
Acquisition of the assets of
FEDERATED MANAGED TAIL RISK FUND II
(A Portfolio of Federated Insurance Series)
By and in exchange for
Primary Shares and Service Shares
of
FEDERATED MANAGED VOLATILITY FUND II
(A Portfolio of Federated Insurance Series)
Approximate Date of Proposed Public Offering: As soon as
practicable after this Registration Statement becomes effective
under the Securities Act of 1933, as amended.
Title of Securities Being Registered:
Primary Shares and Service Shares
without par value, of
Federated Managed Volatility Fund II
It is proposed that this filing will become effective
On May 31, 2018 pursuant to Rule 488 under the Securities Act of 1933, as amended.
No filing fee is due because Registrant is relying on Section 24(f) of the Investment Company Act of 1940, as amended.
Please Vote Today!
• | The Board of Trustees of the Fund, including the Independent Trustees, unanimously recommends that you vote in favor of the proposal because it believes that the Reorganization is in the best interests of the Fund and that interests of existing shareholders will not be diluted as a result of the Reorganization. IFMTR's shareholders will receive shares of a fund with greater assets, the same net expense levels, better long-term performance, and with an investment strategy better able to provide participation in up markets. |
• | The total net asset value of your investment will not change as a result of the Reorganization, and you will not have to pay any sales charge in connection with the exchange of your shares. You will receive shares of IFMVF with a total dollar value equal to the total dollar value of the IFMTR shares that you own at the time of the Reorganization. |
If you own Shares in: | You will receive Shares of: |
Federated Managed Tail Risk Fund II | Federated Managed Volatility Fund II |
Primary Shares | Primary Shares* |
Service Shares | Service Shares* |
• | Online–Use the web address on the proxy or voting instruction card; |
• | Telephone–Call the toll-free telephone number on the proxy or voting instruction card; |
• | Mail–Complete and return the proxy or voting instruction card in the enclosed postage paid envelope; or |
• | Vote in person at the August 3, 2018, meeting. |
1. | Sign and return the proxy or voting instruction card without indicating a preference, your vote will be cast “for” the proposal. |
2. | Do not respond at all, we may contact you by telephone to request that you cast your vote or submit your voting instructions. |
Warrendale, PA 15086-7561
Telephone No: 1-800-341-7400
TO BE HELD AUGUST 3, 2018
(1) | To approve or disapprove a proposed Agreement and Plan of Reorganization pursuant to which Federated Managed Volatility Fund II (“IFMVF”), a portfolio of Federated Insurance Series would acquire all, or substantially all, of the assets of IFMTR in exchange for Primary Shares and Service Shares of IFMVF to be distributed pro rata by IFMTR to its shareholders of Primary Shares and Service Shares, respectively, in a complete liquidation and dissolution of IFMTR and to transact such other business as may properly come before the special meeting or any adjournment thereof. |
Peter J. Germain
Secretary
MAY BE REPRESENTED AT THE MEETING. THE ENCLOSED ENVELOPE REQUIRES
NO POSTAGE IF MAILED IN THE UNITED STATES.
4000 Ericsson Drive
Warrendale, PA 15086-7561
Telephone No: 1-800-341-7400
4000 Ericsson Drive
Warrendale, PA 15086-7561
Telephone No: 1-800-341-7400
Investment Objectives | |
IFMTR (Reorganizing Fund) | IFMVF (Surviving Fund) |
Capital appreciation. | To achieve high current income and moderate capital appreciation. |
Reorganizing Fund | Share Classes | Total Net Assets (as of 03/31/2018) |
Federated Managed Tail Risk Fund II | Primary Shares | $133,009,265 |
Service Shares | $54,588,829 | |
Total Fund Assets | $187,598,094 |
Surviving Fund | Share Classes | Total Net Assets (as of 03/31/2018) |
Federated Managed Volatility Fund II | Primary Shares* | $595,028,558 |
Service Shares* | $— | |
Total Fund Assets | $595,028,558 |
* | The addition of the Service Shares for IFMVF and the designation of IFMVF's single undesignated class as Primary Shares became effective on April 26, 2018. |
• | IFMTR will pay direct proxy expenses, including mailing, processing, tabulation, printing and solicitation costs and expenses, as well as the cost associated with printing and mailing of prospectus supplements, as applicable, associated with the Reorganization estimated at $30,000, or $0.0008 per share; |
• | IFMTR is expected to incur brokerage expenses of $50,000, or $0.0013 per share, related to the sale of any assets prior to the proposed Reorganization or the purchase of replacement securities; |
• | The Co-Advisers will pay the other direct and indirect expenses of the Reorganization on behalf of IFMTR (consisting primarily of legal and accounting fees), except that IFMTR will pay the estimated direct proxy, supplement and brokerage expenses; |
• | The effect on the net asset value of IFMTR as a result of the payment of the direct proxy, supplement and brokerage expenses would be approximately $0.0021 per share; and |
• | There will be no dilution to shareholders as a result of the Reorganization, because each IFMTR shareholder will become the owner of shares of IFMVF having a total net asset value equal to the total net asset value of his or her holdings in IFMTR on the date of the Reorganization. |
VOTE “FOR” THE APPROVAL OF THE REORGANIZATION.
IFMTR (Reorganizing Fund) | IFMVF (Surviving Fund) |
The Fund's fundamental investment objective is capital appreciation. | The Fund's fundamental investment objective is to achieve high current income and moderate capital appreciation. |
Under normal market conditions, the Fund seeks to achieve a globally diversified mix of investment exposure to various asset classes by investing in various affiliated and unaffiliated underlying mutual funds, ETFs and other affiliated funds that are not offered to the public (“Underlying Funds”) and utilizing a volatility overlay strategy to attempt to manage the risk of a significant negative movement in the value of the Fund's portfolio. The Fund may invest in securities or other investments directly. The asset classes in which the Fund will invest include both fixed income and equity but it is anticipated that the Fund will, in an effort to maximize return, have a greater exposure to equity investments. | The Fund pursues its investment objective by investing in both equity and fixed-income securities that have high income potential. |
Fed Global and FEMCOPA work collaboratively and are primarily responsible for implementing a volatility overlay strategy that involves managing the Fund's use of equity index futures and/or option contracts to attempt to limit the Fund's downside risk. Fed Global and FEMCOPA are also primarily responsible for determining the allocation of the Fund's portfolio between equity, fixed-income and other investments. FEMCOPA and Fed Global employ an asset allocation model to structure the portfolio across multiple underlying portfolios selected based on the interplay of their return and risk profile. | Fed Global and FEMCOPA work collaboratively and are responsible for implementing a managed volatility strategy that involves managing the Fund's use of equity index futures contracts to adjust the Fund's expected volatility to a target annualized volatility. Fed Global and FEMCOPA are also primarily responsible for determining the allocation of the Fund's portfolio between the equity, fixed-income and managed volatility strategies. |
With regard to the portion of the Fund allocated to Underlying Funds and other securities with a primary strategy focus in the domestic equity markets, it is anticipated that such investments will emphasize the value style of investing. FEMCOPA and Fed Global also anticipate that they will normally invest a portion of the Fund's equity allocation in Underlying Funds that primarily invest in international equity securities. The Fund's exposure to such international equity investments, whether investing in securities directly or through the use of Underlying Funds, may be allocated among various sectors, regions, particular market capitalizations and countries based on FEMCOPA's and Fed Global's view of economic and market conditions and will subject the Fund to the risks inherent in such international markets. | Regarding the Fund's equity portfolio, FEMCOPA's process for managing the equity investments will be to over or underweight positions in mid- to large cap value companies based upon the Adviser's quantitative analysis of the securities. The analysis seeks to identify securities likely to have predictable returns based on a number of strategies such as valuation, market sentiment, profitability and capital use. Additionally, FEMCOPA seeks to purchase undervalued stocks that may increase in price as the market recognizes the company's value. The portfolio is constructed and maintained to provide a reasonable trade-off between risk and return. |
IFMTR (Reorganizing Fund) | IFMVF (Surviving Fund) |
The Fund may invest in certain Underlying Funds which give the Fund investment exposure to commodities. Further, FEMCOPA and Fed Global may also allocate a portion of the Fund's assets to Underlying Funds which provide short equity exposure. FIMCO is primarily responsible for managing the fixed-income portion of the Fund's portfolio, including fixed-income securities and related derivative contracts. With respect to the Fund's investments in the fixed-income asset class, the Fund may invest in Underlying Funds that invest in loan instruments, including trade finance loan instruments, mortgage-backed securities, corporate debt securities, dollar and non-dollar-denominated international securities, including emerging market debt securities, and U.S. Treasury and U.S. government agency securities. The Fund may also invest in inflation-protected securities. The Fund also anticipates investing in fixed-income securities directly in order to achieve the fixed income exposure it is seeking. The Fund's investment in domestic and foreign fixed-income securities may include investments in noninvestment-grade securities, sometimes referred to as “high-yield” securities or “junk bonds,” and which may include securities with any credit rating or even potentially securities in default. Additionally, in an attempt to limit downside risk, a volatility overlay strategy will be selectively employed during periods of historically high volatility, as measured by various market volatility measures such as the CBOE Volatility Index. The volatility overlay is designed to become more negative when there is increased market risk and therefore seeks to limit downside risk in the Fund by decreasing the Fund's exposure to the equity market during periods of increased market volatility. It is anticipated that this volatility overlay will be achieved primarily through the use of equity index futures and/or option contracts. The Fund, or an Underlying Fund, may also use derivative contracts (such as, for example, options, swap and futures contracts) and/or hybrid instruments to implement elements of its investment strategy. | Regarding the Fund's fixed-income portfolio, FIMCO selects investments that offer high current yields or total return, primarily investment-grade debt issues, domestic noninvestment-grade debt securities (also known as “junk bonds” or “high-yield bonds”) and foreign investment-grade and noninvestment-grade fixed income securities, including emerging market debt securities. The Fund limits the amount it may invest in a single fixed-income class up to 30% of Fund assets, expect for U.S. government securities, high-quality, investment-grade, fixed-income investments, in which the fund may invest up to 60% of its assets (and a minimum of 10% of its assets). FIMCO does not target an average maturity or duration for the Fund's portfolio and may invest in bonds of any maturity range. The Fund may buy or sell foreign currencies of foreign currency forwards in lieu of or in addition to non-dollar denominated fixed-income securities in order to hedge or increase or decrease its exposure to foreign interest rate and/or currency markets. When selecting investments for the Fund, including, but not limited to bonds, emerging market debt securities and loan instruments, FIMCO can invest in securities directly or in other investment companies, including funds advised by FIMCO. Regarding the Fund's managed volatility strategy, Fed Global and FEMCOPA will primarily use equity index futures contracts (a type of derivative) to target an annualized volatility level for the Fund of approximately 10%. The Fund's strategy of managing volatility to a target range seeks to reduce the expected volatility of the Fund's entire portfolio in high volatility environments and to increase the expected volatility of the Fund's entire portfolio in low volatility environments. To implement the managed volatility strategy, Fed Global and FEMCOPA will buy equity index futures contracts in order to seek to raise the Fund's expected volatility level and sell equity index futures contracts to hedge the Fund's entire portfolio and lower the Fund's expected volatility level. Regarding the composition of the Fund's portfolio, under normal conditions, it is anticipated that approximately 40% of the Fund's assets will be invested directly into equity securities and 60% of the Fund's assets will be invested in fixed-income securities and other investments. Fed Global and FEMCOPA may vary this allocation by +/- 10% for each asset class depending upon their economic and market outlook, as well as a result of favorable investment opportunities. |
INVESTMENT OBJECTIVES AND POLICIES (continued) | |
IFMTR (Reorganizing Fund) | IFMVF (Surviving Fund) |
TEMPORARY INVESTMENTS The Fund may temporarily depart from its principal investment strategies by investing its assets in shorter-term debt securities and similar obligations or holding cash. It may do this in response to unusual circumstances, such as: adverse market, economic or other conditions (for example, to help avoid potential losses or during periods when there is a shortage of appropriate securities); to maintain liquidity to meet shareholder redemptions; or to accommodate cash inflows. It is possible that such investments could affect the Fund's investment returns and/or the ability to achieve the Fund's investment objectives. | TEMPORARY INVESTMENTS The Fund may temporarily depart from its principal investment strategies by investing its assets in shorter-term debt securities and similar obligations or holding cash. It may do this in response to unusual circumstances, such as: adverse market, economic or other conditions (for example, to help avoid potential losses, or during periods when there is a shortage of appropriate securities); to maintain liquidity to meet shareholder redemptions; or to accommodate cash inflows. It is possible that such investments could affect the Fund's investment returns and/or the ability to achieve the Fund's investment objectives. Additionally, although an annualized volatility level of 10% is normally targeted for the Fund, the Co-Advisers under certain market conditions may target a lower volatility level for the Fund. |
IFMTR Risks | IFMVF Risks |
Stock Market Risk: The value of equity securities in the Fund's portfolio will fluctuate and, as a result, the Fund's Share price may decline suddenly or over a sustained period of time. Information publicly available about a company, whether from the company's financial statements or other disclosures or from third parties, or information available to some but not all market participants, can affect the price of a company's shares in the market. Among other factors, equity securities may decline in value because of an increase in interest rates or changes in the stock market. Recent and potential future changes in industry and/or economic trends, as well as changes in monetary policy made by central banks and/or their governments, also can affect the level of interest rates and contribute to the development of or increase in volatility, illiquidity, shareholder redemptions and other adverse effects (such as a decline in a company's stock price), which could negatively impact the Fund's performance. | Same. |
Risk Related to Investing for Value. Due to their relatively low valuations, value stocks are typically less volatile than growth stocks. For instance, the price of a value stock may experience a smaller increase on a forecast of higher earnings, a positive fundamental development or positive market development. Further, value stocks tend to have higher dividends than growth stocks. This means they depend less on price changes for returns and may lag behind growth stocks in an up market. | Risk Related to Investing for Value. The Fund generally uses a “value” style of investing, so that the Fund's Share price may lag that of other funds using a different investment style. |
Asset Allocation Risk. The Fund intends to invest in a diversified mix of asset classes to seek to manage its investment risk. The Fund's investment results will suffer if it increases allocations to a particular asset class and such asset class decreases in market value, or if it reduces allocations to a particular asset class and such asset class increases in value. This risk is in addition to the market risks associated with each of the Fund's investments. In certain conditions, the Fund may employ risk management strategies. No risk management strategies can eliminate the Fund's exposure to adverse events; at best, they can only reduce the possibility that the Fund will be affected by such events, and especially those risks that are not intrinsic to the Fund's investment program. There can be no guarantee that the Adviser will be successful in their attempts to manage the risk exposure of the Fund. | Same. |
Risk of Foreign Investing. Because the Fund invests in securities issued by foreign companies, the Fund's Share price may be more affected by foreign economic and political conditions, taxation policies and accounting and auditing standards than would otherwise be the case. | Same. |
IFMTR Risks | IFMVF Risks |
Risk of Investing in ADRs and Domestically Traded Securities of Foreign Issuers. Because the Fund may invest in American Depositary Receipts (ADRs) and other domestically-traded securities of foreign companies, the Fund's Share price may be more affected by foreign economic and political conditions, taxation policies and accounting and auditing standards than would otherwise be the case. | No corresponding prospectus risk for IFMVF. |
Custodial Services and Related Investment Costs. Custodial services and other costs relating to investment in international securities markets generally are more expensive than in the United States. Such markets have settlement and clearance procedures that differ from those in the United States. The inability of the Fund to make intended securities purchases due to settlement problems could cause the Fund to miss attractive investment opportunities. | Custodial Services and Related Investment Costs. Custodial services and other costs relating to investment in international securities markets generally are more expensive than in the United States. Such markets have settlement and clearance procedures that differ from those in the United States. In certain markets there have been times when settlements have been unable to keep pace with the volume of securities transactions, making it difficult to conduct such transactions. The inability of the Fund to make intended securities purchases due to settlement problems could cause the Fund to miss attractive investment opportunities. Inability to dispose of a portfolio security caused by settlement problems could result in losses to the Fund due to a subsequent decline in value of the portfolio security. In addition, security settlement and clearance procedures in some emerging countries may not fully protect the Fund against loss of its assets. |
Currency Risk. Exchange rates for currencies fluctuate daily. The combination of currency risk and stock market risk tends to make securities traded in foreign markets more volatile than securities traded exclusively in the United States. | Currency Risk. Exchange rates for currencies fluctuate daily. Accordingly, the Fund may experience increased volatility with respect to the value of its Shares and its returns as a result of its exposure to foreign currencies through direct holding of such currencies or holding of non-U.S. dollar denominated securities. |
Eurozone Related Risk. A number of countries in the European Union (EU) have experienced, and may continue to experience, severe economic and financial difficulties. Additional EU member countries may also fall subject to such difficulties. These events could negatively affect the value and liquidity of the Fund's investments in euro-denominated securities and derivatives contracts, securities of issuers located in the EU or with significant exposure to EU issuers or countries. | Same. |
Emerging Markets Risk. Securities issued or traded in emerging markets generally entail greater risks than securities issued or traded in developed markets. Emerging market countries may have relatively unstable governments and may present the risk of nationalization of businesses, expropriation, confiscatory taxation or, in certain instances, reversion to closed market, centrally planned economies. | Same. |
Small-Cap Company Risk. The Fund may invest in small capitalization (or “small-cap”) companies. Small-cap companies may have less liquid stock, a more volatile share price, unproven track records, a limited product or service base, and limited access to capital. The above factors could make small-cap companies more likely to fail than larger companies, and increase the volatility of the Fund's portfolio, performance and Share price. | No corresponding prospectus risk for IFMVF. |
Mid-Cap Company Risk. The Fund may invest in mid-capitalization (or “mid-cap”) companies. Mid-cap companies often have narrower markets, limited managerial and financial resources, more volatile performance and greater risk of failure, compared to larger, more established companies. These factors could increase the volatility of the Fund's portfolio, performance and Share price. | Same. |
Large-Cap Company Risk. The Fund may invest in large capitalization (or “large-cap”) companies. In addition, large cap companies may have fewer opportunities to expand the market for their products or services, may focus their competitive efforts on maintaining or expanding their market share, and may be less capable of responding quickly to competitive challenges. These factors could result in the share price of large companies not keeping pace with the overall stock market or growth in the general economy, and could have a negative effect on the Fund's portfolio, performance and Share price. | Same. |
REIT Risk. Real estate investment trusts (REITs) carry risks associated with owning real estate, including the potential for a decline in value due to economic or market conditions. | No corresponding prospectus risk for IFMVF. |
IFMTR Risks | IFMVF Risks |
Counterparty Credit Risk. A party to a transaction involving the Fund may fail to meet its obligations. This could cause the Fund to lose money or to lose the benefit of the transaction or prevent the Fund from selling or buying other securities to implement its investment strategies. | Counterparty Credit Risk. Counterparty credit risk includes the possibility that a party to a transaction involving the Fund will fail to meet its obligations. This could cause the Fund to lose the benefit of the transaction or prevent the Fund from selling or buying other securities to implement its investment strategy. |
Leverage Risk. Leverage risk is created when an investment (such as a derivative transaction) exposes the Fund to a level of risk that exceeds the amount invested. Changes in the value of such an investment magnify the Fund's risk of loss and potential for gain. | Leverage Risk. Leverage risk is created when an investment, which includes, for example, an investment in a derivative contract, exposes the Fund to a level of risk that exceeds the amount invested. Changes in the value of such an investment magnify the Fund's risk of loss and potential for gain. |
Exchange-Traded Funds Risk. An investment in an ETF generally presents the same primary risks as an investment in a conventional fund (i.e., one that is not exchange traded). Investing in an ETF may incur additional fees and/or expenses which would, therefore, be borne indirectly by the Fund in connection with any such investment. | No corresponding prospectus risk for IFMVF. |
Short Selling Risk. A short sale by the Fund or an underlying fund involves borrowing a security from a lender which is then sold in the open market. At a future date, the security is repurchased by the Fund or an underlying fund and returned to the lender. While the security is borrowed, the proceeds from the sale are deposited with the lender and the Fund may be required to pay interest and/or the equivalent of any dividend payments paid by the security to the lender. If the value of the security declines between the time the Fund or an underlying fund borrows the security and the time it repurchases and returns the security to the lender, the Fund or an underlying fund makes a profit on the difference (less any expenses the Fund is required to pay the lender). There is no assurance that a security will decline in value during the period of the short sale and make a profit for the Fund or an underlying fund. If the value of the security sold short increases between the time that the Fund or an underlying fund borrows the security and the time it repurchases and returns the security to the lender, the Fund will realize a loss on the difference (plus any expenses the Fund is required to pay to the lender). This loss is theoretically unlimited as there is no limit as to how high the security sold short can appreciate in value, thus increasing the cost of buying that security to cover a short position. The Fund or an underlying fund may incur expenses in selling securities short and such expenses are investment expenses of the Fund or an underlying fund. | Short Selling Risk. The Fund may enter into short sales which expose the Fund to the risks of short selling. Short sales involve borrowing a security from a lender which is then sold in the open market at a future date. The security is then repurchased by the Fund and returned to the lender. Short selling allows an investor to profit from declines in prices of securities. Short selling a security involves the risk that the security sold short will appreciate in value at the time of repurchase therefore creating a loss for the Fund. The Fund may incur expenses in selling securities short and such expenses are investment expenses of the Fund. |
Sector Risk. Because the Fund may allocate relatively more assets to certain industry sectors than others, the Fund's performance may be more susceptible to any developments which affect those sectors emphasized by the Fund. | Sector Risk. Sector risk is the possibility that a certain sector may underperform other sectors or the market as a whole. |
Liquidity Risk. Trading opportunities are more limited for fixed-income securities that have not received any credit ratings, have received any credit ratings below investment-grade or are not widely held. High levels of shareholder redemptions in response to market conditions also may increase liquidity risk and may negatively impact Fund performance. Liquidity risk also refers to the possibility that the Fund may not be able to sell a security or close out a derivative contract when it wants to. If this happens, the Fund will be required to continue to hold the security or keep the position open, and the Fund could incur losses. | Liquidity Risk. Trading opportunities are more limited for fixed-income securities that have not received any credit ratings, have received ratings below investment grade or are not widely held. These features may make it more difficult to sell or buy a security at a favorable price or time. Consequently, the Fund may have to accept a lower price to sell a security, sell other securities to raise cash or give up an investment opportunity, any of which could have a negative effect on the Fund's performance. Infrequent trading of securities may also lead to an increase in their price volatility. |
Risk Related to Investing for Dividend Income. There is no guarantee that the issuers of the stocks held by the Fund will declare dividends in the future or that, if dividends are declared, they will remain at their current levels or increase over time. Because a dividend is always a positive contributor to total return, dividend-paying stocks are typically less volatile than non-dividend-paying stocks. Accordingly, the Fund's performance may lag behind the general market when dividend-paying stocks are out of favor. | No corresponding prospectus risk for IFMVF. |
Underlying Fund Risk. The risk that the Fund's performance is closely related to the risks associated with the securities and other investments held by underlying funds and that the ability of a Fund to achieve its investment objective will depend upon the ability of underlying funds to achieve their respective investment objectives. | No corresponding prospectus risk for IFMVF. |
IFMTR Risks | IFMVF Risks |
Asset-Backed Securities (ABS) Risk. The value of asset-backed securities (ABS) may be affected by certain factors such interest rate risk, credit risk, prepayment risk and the availability of information concerning the pool of underlying assets and its structure. Under certain market conditions, ABS may be less liquid and maybe difficult to value. Movements in interest rates (both increases and decreases) may quickly and significantly reduce the value of certain types of ABS. ABS can also be subject to the risk of default on the underlying assets. | No corresponding prospectus risk for IFMVF. |
Mortgage-Backed Securities (MBS) Risk. A rise in interest rates may cause the value of MBS held by the Fund to decline. Certain MBS issued by GSEs are not backed by the full faith and credit of the U.S. government. A non-agency MBS is subject to the risk that the value of such security will decline, because the security is not issued or guaranteed as to principal or interest by the U.S. government or a GSE. The Fund's investments in collateralized mortgage obligations (CMOs) may entail greater market, prepayment and liquidity risks than other MBS. | No corresponding prospectus risk for IFMVF. |
Risk of Security Downgrades. The downgrade of the credit of a security held by the Fund may decrease its value. Fixed-income securities with lower ratings tend to have a higher probability that a borrower will default or fail to meet its payment obligations. | No corresponding prospectus risk for IFMVF. |
Risk of Investing in Commodities. Because the Fund may invest in instruments (including exchange-traded funds) whose performance is linked to the price of an underlying commodity or commodity index, the Fund may be subject to the risks of investing in physical commodities. These types of risks include regulatory, economic and political developments, weather events and natural disasters, pestilence, market disruptions and the fact that commodity prices may have greater volatility than investments in traditional securities. | No corresponding prospectus risk for IFMVF. |
Risk of Inflation-Protected Securities. The value of inflation-protected securities is subject to the effects of changes in market interest rates caused by factors other than inflation (“real interest rates”). If interest rates rise due to reasons other than inflation, the Fund's investment in these securities may not be protected to the extent that the increase is not reflected in the security's inflation measure. Generally, when real interest rates rise, the value of inflation-protected securities will fall and the Fund's value may decline as a result of this exposure to these securities. The greatest risk occurs when interest rates rise and inflation declines. In addition, the duration of inflation-protected bonds is unstable and difficult to calculate. Also interest rates on inflation protected bonds will vary as the principal and/or interest is adjusted for inflation and may be more volatile than interest paid on ordinary bonds. | No corresponding prospectus risk for IFMVF. |
Call Risk. Call risk is the possibility that an issuer may redeem a fixed-income security before maturity (a “call”) at a price below its current market price. An increase in the likelihood of a call may reduce the security's price. | No corresponding prospectus risk for IFMVF. |
Risk of Loss after Redemption. The underlying funds in which the Fund invests may cause the Fund to experience delays from the time it requests a redemption to the time that such redemption is processed. The Fund bears the risk of investment loss during the period between when it requests a redemption and when the net asset value of the underlying fund is determined for purposes of payment of the redeemed shares. | Risk of Loss After Redemption. The Fund may also invest in trade finance loan instruments primarily by investing in other investment companies (which are not available for general investment by the public) that own those instruments and that are advised by an affiliate of the Adviser and are structured as an extended payment fund (EPF). In the EPF, the Fund, as shareholder, will bear the risk of investment loss during the period between when shares of such EPF are presented to the transfer agent of the EPF for redemption and when the net asset value of the EPF is determined for payment of the redeemed EPF shares (the “Redemption Pricing Date”). |
IFMTR Risks | IFMVF Risks |
Risk of Investing in Loans. In addition to the risks generally associated with debt instruments, such as credit, market, interest rate, liquidity and derivatives risks, bank loans are also subject to the risk that the value of the collateral securing a loan may decline, be insufficient to meet the obligations of the borrower or be difficult to liquidate. The Fund's access to the collateral may be limited by bankruptcy, other insolvency laws or by the type of loan the Fund has purchased. For example, if the Fund purchases a participation instead of an assignment, it would not have direct access to collateral of the borrower. As a result, a floating rate loan may not be fully collateralized and can decline significantly in value. | Risk of Investing in Loans. In addition to the risks generally associated with debt instruments, such as credit, market, interest rate, liquidity and derivatives risks, bank loans are also subject to the risk that the value of the collateral securing a loan may decline, be insufficient to meet the obligations of the borrower or be difficult to liquidate. The Fund's access to the collateral may be limited by bankruptcy, other insolvency laws or by the type of loan the Fund has purchased. For example, if the Fund purchases a participation instead of an assignment, it would not have direct access to collateral of the borrower. As a result, a floating rate loan may not be fully collateralized and can decline significantly in value. Loans and other forms of indebtedness may be structured such that they are not securities under securities laws. As such, it is unclear whether loans and other forms of direct indebtedness offer securities law protections, such as those against fraud and misrepresentation. In the absence of definitive regulatory guidance, while there can be no assurance that fraud or misrepresentation will not occur with respect to the loans and other investments in which the Fund invests, the Fund relies on the Adviser's research in an attempt to seek to avoid situations where fraud or misrepresentation could adversely affect the Fund. |
Loan Liquidity Risk. Loans generally are subject to legal or contractual restrictions on resale. The liquidity of loans, including the volume and frequency of secondary market trading in such loans, varies significantly over time and among individual loans. During periods of infrequent trading, valuing a loan can be more difficult and buying and selling a loan at an acceptable price can be more difficult and delayed. Difficulty in selling a loan can result in a loss. | Loan Liquidity Risk. Loans generally are subject to legal or contractual restrictions on resale. The liquidity of loans, including the volume and frequency of secondary market trading in such loans, varies significantly over time and among individual loans. For example, if the credit quality of a loan unexpectedly declines significantly, secondary market trading in that loan can also decline for a period of time. During periods of infrequent trading, valuing a loan can be more difficult and buying and selling a loan at an acceptable price can be more difficult and delayed. Difficulty in selling a loan can result in a loss. Loan instruments may not be readily marketable and may be subject to restrictions on resale. In some cases, negotiations involved in disposing of loans may require weeks to complete. Thus, transactions in loan instruments may take longer than seven days to settle. This could pose a liquidity risk to the Fund and, if the Fund's exposure to such investments is substantial, could impair the Fund's ability to meet shareholder redemptions in a timely manner. A majority of the Fund's assets are likely to be invested in assets that are considerably less liquid than debt instruments traded on national exchanges. Market quotations for such assets may be volatile and/or subject to large spreads between bid and ask prices. |
Agent Insolvency Risk. In a syndicated loan, the agent bank is the bank that undertakes the bulk of the administrative duties involved in the day-to-day administration of the loan. In the event of the insolvency of an agent bank, a loan could be subject to settlement risk as well as the risk of interruptions in the administrative duties performed in the day to day administration of the loan (such as processing LIBOR calculations, processing draws, etc.). | Same. |
Loan Prepayment Risk. During periods of declining interest rates or for other purposes, borrowers may exercise their option to prepay principal earlier than scheduled which may force the Fund to reinvest in lower-yielding instruments. | Same. |
Issuer Credit Risk. It is possible that interest or principal on securities will not be paid when due. Such non-prepayment or default may reduce the value of the Fund's portfolio holdings, its share price and its performance. | No corresponding prospectus risk for IFMVF. |
Interest Rate Risk. Prices of fixed-income securities generally fall when interest rates rise. The longer the duration of a fixed-income security, the more susceptible it is to interest rate risk. Recent and potential future changes in monetary policy made by central banks and/or their governments are likely to affect the level of interest rates. | Same. |
IFMTR Risks | IFMVF Risks |
Prepayment Risk. The Fund may invest in asset-backed and mortgage-backed securities, or other securities or loans, which may be subject to prepayment risk. If interest rates fall, and unscheduled prepayments on such securities accelerate, the Fund will be required to reinvest the proceeds at the lower interest rates then available. | Prepayment Risk and Extension Risk. When homeowners prepay their mortgages in response to lower interest rates, the Fund will be required to reinvest the proceeds at the lower interest rates available. Also, when interest rates fall, the price of mortgage-backed securities may not rise to as great an extent as that of other fixed-income securities. When interest rates rise, homeowners are less likely to prepay their mortgages. A decreased rate of prepayments lengthens the expected maturity of a mortgage-backed security, and the price of mortgage-backed securities may decrease more than the price of other fixed income securities when interest rates rise. |
Risk Associated with Noninvestment-Grade Securities. Securities rated below investment grade, also known as junk bonds, may be subject to greater interest rate, credit and liquidity risks than investment-grade securities. | Same. |
Risk Related to the Economy. The value of the Fund's portfolio may decline in tandem with a drop in the overall value of the markets in which the Fund invests and/or the stock market. Economic, political and financial conditions, or industry or economic trends and developments. may, from time to time, and for varying periods of time, cause the Fund to experience volatility, illiquidity, shareholder redemptions, or other potentially adverse effects. Among other investments, lower-grade bonds and loans may be particularly sensitive to changes in the economy. | Same. |
Risks of Investing in Derivative Contracts and Hybrid Instruments. Derivative contracts and hybrid instruments involve risks different from, or possibly greater than, risks associated with investing directly in securities and other traditional investments. Specific risk issues related to the use of such contracts include valuation issues, increased potential for losses and/or costs to the Fund, and a potential reduction in gains to the Fund. Each of these issues is described in greater detail in this Prospectus. Derivative contracts and hybrid instruments may also involve other risks described in this Prospectus or the Fund's Statement of Additional Information (SAI), such as stock market, interest rate, credit, currency, liquidity and leverage risks. | Risk of Investing in Derivative Contracts. Derivative contracts involve risks different from, or possibly greater than, risks associated with investing directly in securities and other traditional investments. Specific risk issues related to the use of such contracts and instruments include valuation issues, increased potential for losses and/or costs to the Fund, and a potential reduction in gains to the Fund. Each of these issues is described in greater detail in the Prospectus. Derivative contracts may also involve other risks described in the Prospectus or the Fund's Statement of Additional Information (SAI), such as stock market, interest rate, credit, currency, liquidity and leverage risks. |
Technology Risk. The Adviser uses various technologies in managing the Fund, consistent with its investment objective(s) and strategy described in this Prospectus. For example, proprietary and third-party data and systems are utilized to support decision making for the Fund. Data imprecision, software or other technology malfunctions, programming inaccuracies and similar circumstances may impair the performance of these systems, which may negatively affect Fund performance. | Same. |
Quantitative Modeling Risk. The Fund employs quantitative models as a management technique. These models examine multiple factors using large data sets. The results generated by quantitative analysis may perform differently than expected and may negatively affect Fund performance. | Same. |
IFMTR Risks | IFMVF Risks |
No corresponding prospectus risk for IFMTR. | Risk of Managed Volatility Strategy. There can be no guarantee that the Fund will maintain its target annualized volatility. Furthermore, while the volatility management portion of the strategy seeks enhanced returns with more consistent volatility levels over time, attaining and maintaining the target volatility does not ensure that the Fund will deliver enhanced returns. The Fund's managed volatility strategy may expose the Fund to losses (some of which may be sudden) that it would not have otherwise been exposed if the Fund's investment program consisted only of holding securities directly. For example, the value of the Long Equity Index Futures Positions (which generally will be up to 60% of the Fund's net asset value) may decline in value due to a decline in the level of the equity index futures, while the value of the Short Equity Index Futures Position (which generally will be up to 40% of the Fund's net asset value) may decline in value due to an increase in the level of the equity index futures. In addition, due to the Fund's managed volatility strategy, there is a risk that the Fund may not fully participate in upside market appreciation. The Fund will use Short Equity Index Futures Positions to hedge the Fund's long equity exposure. The Fund's losses on a Short Equity Index Futures Position could theoretically be unlimited as there is no limit as to how high the equity index futures can appreciate in value. However, such losses would tend to be offset by the appreciation of the Fund's equity holdings. The use by the Fund of Short Equity Index Futures Positions to hedge the Fund's long exposure and manage volatility within a target may not be successful. Additionally, the Long Equity Index Futures Positions are not being held to hedge the value of the Fund's direct investments in equity securities and, as a result, these futures contracts may decline in value at the same time as the Fund's direct investments in equity securities. The Fund's managed volatility strategy also exposes shareholders to leverage risk and the risks of investing in derivative contracts |
Risk of Volatility Overlay Strategy. There is always a possibility that the strategy will not work as intended. It may expose the Fund to losses that it would not have otherwise been exposed if it only invested in the equity securities. It may not fully protect the Fund against declines in the value of its portfolio securities. Use of this strategy may also expose the Fund to Risk of Investing in Derivative Contracts as well as Leverage Risk as described in this Prospectus. | No corresponding prospectus risk for IFMVF. |
IFMTR (Reorganizing Fund) | IFMVF (Surviving Fund) |
Diversification (fundamental) With respect to securities comprising 75% of the value of its total assets, the Fund will not purchase securities of any one issuer (other than cash; cash items; securities issued or guaranteed by the government of the United States or its agencies or instrumentalities and repurchase agreements collateralized by such U.S. government securities; and securities of other investment companies) if, as a result, more than 5% of the value of its total assets would be invested in the securities of that issuer, or the Fund would own more than 10% of the outstanding voting securities of that issuer. | Diversification of Investments (fundamental) Same. |
Concentration (fundamental) The Fund will not make investments that will result in the concentration of its investments in the securities of issuers primarily engaged in the same industry. For purposes of this restriction, the term concentration has the meaning set forth in the 1940 Act, any rule or order thereunder, or any SEC staff interpretation thereof. Government securities and municipal securities will not be deemed to constitute an industry. | Concentration (fundamental) The Fund will not make investments that will result in the concentration of its investments in the securities of issuers primarily engaged in the same industry, provided that the Fund may concentrate its investments in the securities of issuers in the utilities industry. Government securities, municipal securities and bank instruments will not be deemed to constitute an industry. |
Underwriting (fundamental) The Fund may not underwrite the securities of other issuers, except that the Fund may engage in transactions involving the acquisition, disposition or resale of its portfolio securities, under circumstances where it may be considered to be an underwriter under the Securities Act of 1933. | Underwriting (fundamental) Same. |
Investing in Commodities (fundamental) The Fund may not purchase or sell physical commodities, provided that the Fund may purchase securities of companies that deal in commodities. For purposes of this restriction, as a matter of non-fundamental operating policy, investments in transactions involving futures contracts and options, forward currency contracts, swap transactions and other financial contracts that settle by payment of cash are not deemed to be investments in commodities. | Investing in Commodities (fundamental) The Fund may not purchase or sell physical commodities, provided that the Fund may purchase securities of companies that deal in commodities. As a matter of non-fundamental operating policy, for purposes of the commodities policy, investments in transactions involving futures contracts and options, forward currency contracts, swap transactions and other financial contracts that settle by payment of cash are not deemed to be investments in commodities. |
Investing in Real Estate (fundamental) The Fund may not purchase or sell real estate, provided that this restriction does not prevent the Fund from investing in issuers which invest, deal, or otherwise engage in transactions in real estate or interests therein, or investing in securities that are secured by real estate or interests therein. The Fund may exercise its rights under agreements relating to such securities, including the right to enforce security interests and to hold real estate acquired by reason of such enforcement until that real estate can be liquidated in an orderly manner. | Investing in Real Estate (fundamental) Same. |
Borrowing Money and Issuing Senior Securities (fundamental) The Fund may borrow money, directly or indirectly, and issue senior securities to the maximum extent permitted under the 1940 Act, any rule or order there under, or any SEC staff interpretation thereof. | Borrowing Money and Issuing Senior Securities (fundamental) The Fund may borrow money, directly or indirectly, and issue senior securities to the maximum extent permitted under 1940 Act. |
Lending (fundamental) The Fund may not make loans, provided that this restriction does not prevent the Fund from purchasing debt obligations, entering into repurchase agreements, lending its assets to broker/dealers or institutional investors and investing in loans, including assignments and participation interests. | Lending (fundamental) Same. |
IFMTR (Reorganizing Fund) | IFMVF (Surviving Fund) |
Illiquid Securities (non-fundamental) The Fund will not purchase securities for which there is no readily available market, or enter into repurchase agreements or purchase time deposits that the Fund cannot dispose of within seven days, if immediately after and as a result, the value of such securities would exceed, in the aggregate, 15% of the Fund's net assets. | Illiquid Securities (non-fundamental) Same. |
Investing in Other Investment Companies (non-fundamental) The Fund may invest its assets in securities of other investment companies as an efficient means of carrying out its investment policies. It should be noted that investment companies incur certain expenses, such as management fees, and, therefore, any investment by the Fund in shares of other investment companies may be subject to such duplicate expenses. At the present time, the Fund expects that its investments in other investment companies may include shares of money market funds, including funds affiliated with the Fund's investment adviser. The Fund may invest in the securities of affiliated money market funds as an efficient means of managing the Fund's uninvested cash. | No corresponding investment limitations for IFMVF. |
Purchases on Margin (non-fundamental) The Fund will not purchase securities on margin, provided that the Fund may obtain short-term credits necessary for the clearance of purchases and sales of securities, and further provided that the Fund may make margin deposits in connection with its use of financial options and futures, forward and spot currency contracts, swap transactions and other financial contracts or derivative instruments. | Purchases on Margin (non-fundamental) Same. |
Pledging Assets (non-fundamental) The Fund will not mortgage, pledge or hypothecate any of its assets, provided that this shall not apply to the transfer of securities in connection with any permissible borrowing or to collateral arrangements in connection with permissible activities. | Pledging Assets (non-fundamental) Same. |
Borrowing (non-fundamental) The 1940 Act permits the Fund to borrow money in amounts of up to one-third of its total assets, at the time of borrowing, from banks for any purpose (the Fund's total assets include the amounts being borrowed). To limit the risks attendant to borrowing, the 1940 Act requires the Fund to maintain at all times an “asset coverage” of at least 300% of the amount of its borrowings, not including borrowings for temporary purposes in an amount not exceeding 5% of the value of its total assets. “Asset coverage” means the ratio that the value of the Fund's total assets (including amounts borrowed), minus liabilities other than borrowings, bears to the aggregate amount of all borrowings. | Borrowing (non-fundamental) Same. |
IFMTR (Reorganizing Fund) | IFMVF (Surviving Fund) |
Additional Information In applying the concentration restriction: (a) utility companies will be divided according to their services (for example, gas, gas transmission, electric and telephone will be considered a separate industry); (b) financial service companies will be classified according to the end users of their services (for example, automobile finance, bank finance and diversified finance will each be considered a separate industry); and (c) asset-backed securities will be classified according to the underlying assets securing such securities. To conform to the current view of the SEC that only domestic bank instruments may be excluded from industry concentration limitations, as a matter of non-fundamental policy, the Fund will not exclude foreign bank instruments from industry concentration limitations so long as the policy of the SEC remains in effect. In addition, investments in bank instruments, and investments in certain industrial development bonds funded by activities in a single industry, will be deemed to constitute investment in an industry, except when held for temporary defensive purposes. The investment of more than 25% of the value of the Fund's total assets in any one industry will constitute “concentration.” For purposes of the above limitations, the Fund considers certificates of deposit and demand and time deposits issued by a U.S. branch of a domestic bank or savings association having capital, surplus, and undivided profits in excess of $100,000,000 at the time of investment to be “cash items” and “bank instruments.” Except with respect to borrowing money, if a percentage limitation is adhered to at the time of investment, a later increase or decrease in percentage resulting from any change in value or net assets will not result in a violation of such limitation. | Additional Information For purposes of the above limitations, the Fund considers certificates of deposit and demand and time deposits issued by a U.S. branch of a domestic bank or savings association having capital, surplus and undivided profits in excess of $100,000,000 at the time of investment to be “cash items” and “bank instruments.” Except with respect to borrowing money, if a percentage limitations is adhered to at the time of investment, a later increase or decrease in percentage resulting from any change in value or net assets will not result in a violation of such limitation. In applying the Fund's concentration restriction: (a) financial service companies will be classified according to the end users of their services, for example, automobile finance, bank finance and diversified finance will each be considered a separate industry; and (b) asset-backed securities will be classified according to the underlying assets securing such securities. To conform to the current view of the SEC staff that only domestic bank instruments may be excluded from industry concentration limitations, as a matter of non-fundamental policy, the Fund will not exclude foreign bank instruments from industry concentration limitation tests so long as the policy of the SEC remains in effect. In addition, investments in bank instruments, and investments in certain industrial development bonds funded by activities in a single industry, will be deemed to constitute investment in an industry, except when held for temporary defensive purposes. Investments in private activity bonds will be classified according to the non-governmental entity from which the bond's principal and interest payments are principally derived. The investment of more than 25% of the value of the Fund's total assets in any one industry will constitute “concentration.” With respect to the Fund's stated concentration policy, the Fund is not currently concentrated in the utilities industry and has no present intention to concentrate in the utilities industry. |
FEDERATED MANAGED VOLATILITY FUND II Primary shares
Shareholder Fees | IFMTR–P | IFMVF–P* | IFMVF–P Pro Forma Combined |
(fees paid directly from your investment) | |||
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | N/A | N/A | N/A |
Maximum Deferred Sales Charge (Load) (as a percentage of original purchase price or redemption proceeds, as applicable) | N/A | N/A | N/A |
Maximum Sales Charge (Load) Imposed on Reinvested Dividends (and other Distributions) (as a percentage of offering price) | N/A | N/A | N/A |
Redemption Fee (as a percentage of amount redeemed, if applicable) | N/A | N/A | N/A |
Exchange Fee | N/A | N/A | N/A |
Annual Fund Operating Expenses | |||
(expenses that you pay each year as a percentage of the value of your investment) | |||
Management Fee | 0.75% | 0.75% | 0.75% |
Distribution (12b-1) Fee | 0.00%1 | None | None |
Other Expenses | 0.22%2 | 0.18%2 | 0.18%2 |
Acquired Fund Fees and Expenses | 0.77% | 0.12% | 0.12% |
Total Annual Fund Operating Expenses | 1.74% | 1.05% | 1.05% |
Fee Waivers and/or Expense Reimbursements | (0.69)%3 | (0.00)%4 | (0.00)% 4 |
Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements | 1.05% | 1.05% | 1.05% |
1 | IFMTR has adopted a Distribution (12b-1) Plan for its Primary Shares pursuant to which the P class of IFMTR may incur or charge a Distribution (12b-1) fee of up to a maximum amount of 0.25%. No such fee is currently incurred or charged by the P class of IFMTR. The P class of IFMTR will not incur or charge such a Distribution (12b-1) fee until such time as approved by the Fund's Board of Trustees (the “Trustees”). |
2 | IFMTR and IFMVF may incur or charge administrative service fees on their P class up to a maximum amount of 0.25%. No such fees are currently incurred or charged by the P class of IFMTR and IFMVF. The P class of IFMTR and IFMVF will not incur or charge such fees until such time as approved by the Trustees. |
3 | IFMTR's Co-Advisers and certain of their affiliates on their own initiative have agreed to waive certain amounts of their respective fees and/or reimburse expenses. Total annual fund operating expenses (excluding Acquired Fund Fees and Expenses, interest expense, extraordinary expenses and proxy-related expenses, paid by the Fund, if any) paid by IFMTR's P class (after the voluntary waivers and reimbursements) will not exceed 0.28% (the “Fee Limit”) up to but not including the later of (the “Termination Date”): (a) May 1, 2019; or (b) the date of IFMTR's next effective prospectus. While IFMTR's Co-Advisers and their 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. |
4 | IFMVF's Co-Advisers and certain of their affiliates on their own initiative have agreed to waive certain amounts of their respective fees and/or reimburse expenses. Total annual fund operating expenses (excluding Acquired Fund Fees and Expenses, interest expense, extraordinary expenses and proxy-related expenses, paid by the Fund, if any) paid by IFMVF's P class (after the voluntary waivers and reimbursements) will not exceed 0.93% (the “Fee Limit”) up to but not including the later of (the “Termination Date”): (a) May 1, 2019; or (b) the date of IFMVF's next effective prospectus. While IFMVF's Co-Advisers and their 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. If this Reorganization is approved, the Termination Date will be extended to up to, but not including the later of (a) June 1, 2019 or (b) the date of IFMVF's next effective Prospectus. |
1 Year | 3 Years | 5 Years | 10 Years | |
IFMTR–Primary Shares | $177 | $548 | $944 | $2,052 |
IFMVF–Primary Shares | $107 | $334 | $579 | $1,283 |
IFMVF–Primary Shares, Pro Forma Combined | $107 | $334 | $579 | $1,283 |
FEDERATED MANAGED VOLATILITY FUND II Service shares
Shareholder Fees | IFMTR–S | IFMVF–S* | IFMVF–S Pro Forma Combined |
(fees paid directly from your investment) | |||
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | N/A | N/A | N/A |
Maximum Deferred Sales Charge (Load) (as a percentage of original purchase price or redemption proceeds, as applicable) | N/A | N/A | N/A |
Maximum Sales Charge (Load) Imposed on Reinvested Dividends (and other Distributions) (as a percentage of offering price) | N/A | N/A | N/A |
Redemption Fee (as a percentage of amount redeemed, if applicable) | N/A | N/A | N/A |
Exchange Fee | N/A | N/A | N/A |
Annual Fund Operating Expenses | |||
(expenses that you pay each year as a percentage of the value of your investment) | |||
Management Fee | 0.75% | 0.75% | 0.75% |
Distribution (12b-1) Fee | 0.25% | 0.25% | 0.25% |
Other Expenses | 0.22%1 | 0.18%1,2 | 0.18%1,2 |
Acquired Fund Fees and Expenses | 0.77% | 0.12% | 0.12% |
Total Annual Fund Operating Expenses | 1.99% | 1.30% | 1.30% |
Fee Waivers and/or Expense Reimbursements | (0.69)%3 | (0.00)%4 | (0.00)%4 |
Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements | 1.30% | 1.30% | 1.30% |
1 | IFMTR and IFMVF may incur or charge administrative service fees on their S class up to a maximum amount of 0.25%. No such fees are currently incurred or charged by the S class of IFMTR and IFMVF. The S class of IFMTR and IFMVF will not incur or charge such fees until such time as approved by the Trustees. |
2 | Because the S Class is new, “Other Expenses” are based on estimated amounts for the current fiscal year. |
3 | IFMTR's Co-Advisers and certain of their affiliates on their own initiative have agreed to waive certain amounts of their respective fees and/or reimburse expenses. Total annual fund operating expenses (excluding Acquired Fund Fees and Expenses, interest expense, extraordinary expenses and proxy-related expenses, paid by the Fund, if any) paid by IFMTR's S class (after the voluntary waivers and reimbursements) will not exceed 0.53% (the “Fee Limit”) up to but not including the later of (the “Termination Date”): (a) May 1, 2019; or (b) the date of IFMTR's next effective prospectus. While IFMTR's Co-Advisers and their 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. |
4 | IFMVF's Co-Advisers and certain of their affiliates on their own initiative have agreed to waive certain amounts of their respective fees and/or reimburse expenses. Total annual fund operating expenses (excluding Acquired Fund Fees and Expenses, interest expense, extraordinary expenses and proxy-related expenses, paid by the Fund, if any) paid by IFMVF's S class (after the voluntary waivers and reimbursements) will not exceed 1.18% (the “Fee Limit”) up to but not including the later of (the “Termination Date”): (a) May 1, 2019; or (b) the date of IFMVF's next effective prospectus. While IFMVF's Co-Advisers and their 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. If this Reorganization is approved, the Termination Date will be extended to up to, but not including the later of (a) June 1, 2019 or (b) the date of IFMVF's next effective Prospectus. |
1 Year | 3 Years | 5 Years | 10 Years | |
IFMTR–Service Shares | $202 | $624 | $1,073 | $2,317 |
IFMVF–Service Shares | $132 | $412 | $713 | $1,569 |
IFMVF–Service Shares, Pro Forma Combined | $132 | $412 | $713 | $1,569 |
Federated Managed Tail Risk Fund II - | P Class |
2008 | -29.37% |
2009 | 13.48% |
2010 | 13.07% |
2011 | -5.29% |
2012 | 10.17% |
2013 | 16.45% |
2014 | -0.97% |
2015 | -6.29% |
2016 | -4.20% |
2017 | 10.95% |
1 Year | 5 Years | 10 Years | |
P: | |||
Return Before Taxes | 10.95% | 2.81% | (1.03)% |
Standard & Poors 500 Index1 (reflects no deduction for fees, expenses or taxes) | 21.83% | 15.79% | 8.50% |
Blended Index2 (reflects no deduction for fees, expenses or taxes) | 15.65% | 7.53% | 4.86% |
1 | Standard and Poor's 500 Index is a broad-based market index and an unmanaged capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. |
2 | The Blended Index is composed of 60% MSCI All Country World Index/40% Bloomberg Barclays U.S. Universal Index. The MSCI All Country World Index captures large- and mid-cap representation across 23 developed markets and 23 emerging markets countries. The index covers approximately 85% of the global investable equity opportunity set. The Bloomberg Barclays U.S. Universal Index covers USD-denominated, taxable bonds that are rated either investment-grade or high-yield. |
Federated Managed Volatility Fund II - P Class | |
2008 | -20.38% |
2009 | 28.28% |
2010 | 12.08% |
2011 | 4.77% |
2012 | 13.55% |
2013 | 21.74% |
2014 | 4.01% |
2015 | -7.64% |
2016 | 7.69% |
2017 | 18.11% |
1 Year | 5 Years | 10 Years | |
P: | |||
Return Before Taxes | 18.11% | 8.26% | 7.31% |
Blended Index (current)1 (reflects no deduction for fees, expenses or taxes) | 7.53% | 6.87% | 5.57% |
Blended Index(prior)1 (reflects no deduction for fees, expenses or taxes) | 9.06% | 7.96% | 6.92% |
Standard & Poor's 500 Index2 (reflects no deduction for fees, expenses or taxes) | 21.83% | 15.79% | 8.50% |
Russell 1000® Value Index3 (reflects no deduction for fees, expenses or taxes) | 13.66% | 14.04% | 7.10% |
1 | The Blended Index is comprised of 40% Russell 1000® Value Index/60% Bloomberg Barclays U.S. Aggregate Bond Index. The Fund's Co-Advisers have elected to change the Blended Index from 40% Russell 1000® Value Index/20% Bloomberg Barclays Emerging Markets USD Aggregate Index/20% Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index/20% Bloomberg Barclays Mortgage Backed Securities Index to reflect the Fund's current investment strategy of the fixed income portion of the portfolio. The Russell 1000® Value Index measures the performance of the large-cap value segment of the U.S. equity universe. It includes those Russell 1000® Index companies with lower price-to-book ratios and lower expected growth values. The Russell 1000® Value Index is constructed to provide a comprehensive and unbiased barometer for the large-cap value segment. The Russell 1000® Value Index is completely reconstituted annually to ensure new and growing equities are included and that the represented companies continue to reflect value characteristics. The Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate, taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid ARM pass-throughs), asset-backed securities and commercial mortgage-backed securities. The Bloomberg Barclays Emerging Markets USD Aggregate Index tracks total returns for external-currency-denominated debt instruments of the emerging markets. The Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index is an issuer-constrained version of the Bloomberg Barclays U.S. Corporate High-Yield Index that measures the market of USD-denominated, noninvestment grade, fixed-rate, taxable corporate bonds. The index follows the same rules as the uncapped index but limits the exposure of each issuer to 2% of the total market value and redistributes any excess market value index-wide on a pro-rata basis. The Bloomberg Barclays Mortgage-Backed Securities Index covers agency mortgage-backed pass-through securities (both fixed rate and hybrid ARM) issued by Ginnie Mae (“GNMA”), Fannie Mae (“FNMA”) and Freddie Mac (“FHLMC”). |
2 | The Standard and Poor's 500 Index is an unmanaged capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. |
Federated Managed Tail Risk Fund II - | S Class |
2008 | -29.67% |
2009 | 13.27% |
2010 | 13.01% |
2011 | -5.51% |
2012 | 10.03% |
2013 | 16.11% |
2014 | -1.33% |
2015 | -6.43% |
2016 | -4.48% |
2017 | 10.67% |
1 Year | 5 Years | 10 Years | |
S Class: | |||
Return Before Taxes | 10.67% | 2.53% | 0.59% |
Standard & Poor's 500 Index1 (reflects no deduction for fees, expenses or taxes) | 21.83% | 15.79% | 8.50% |
Blended Index2 (reflects no deduction for fees, expenses or taxes) | 15.65% | 7.53% | 4.86% |
1 | The Standard and Poor's 500 Index is a broad-based market index and an unmanaged capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. |
2 | The Blended Index is comprised of 60% MSCI All Country World Index/40% Bloomberg Barclays U.S. Universal Index. The MSCI All Country World Index captures large- and mid-cap representation across 23 developed markets and 23 emerging markets countries. The index covers approximately 85% of the global investable equity opportunity set. The Bloomberg Barclays U.S. Universal Index covers USD-denominated, taxable bonds that are rated either investment-grade or high-yield. |
Federated Managed Volatility Fund II - P Class | |
2008 | -20.38% |
2009 | 28.28% |
2010 | 12.08% |
2011 | 4.77% |
2012 | 13.55% |
2013 | 21.74% |
2014 | 4.01% |
2015 | -7.64% |
2016 | 7.69% |
2017 | 18.11% |
1 Year | 5 Years | 10 Years | |
P: | |||
Return Before Taxes | 18.11% | 8.26% | 7.31% |
Blended Index (current)1 (reflects no deduction for fees, expenses or taxes) | 7.53% | 6.87% | 5.57% |
Blended Index (prior)1 (reflects no deduction for fees, expenses or taxes) | 9.06% | 7.96% | 6.92% |
Standard & Poor's 500 Index2 (reflects no deduction for fees, expenses or taxes) | 21.83% | 15.79% | 8.50% |
Russell 1000® Value Index3 (reflects no deduction for fees, expenses or taxes) | 13.66% | 14.04% | 7.10% |
1 | The Blended Index is comprised of 40% Russell 1000® Value Index/60% Bloomberg Barclays U.S. Aggregate Bond Index. The Fund's Co-Advisers have elected to change the Blended Index from 40% Russell 1000® Value Index/20% Bloomberg Barclays Emerging Markets USD Aggregate Index/20% Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index/20% Bloomberg Barclays Mortgage Backed Securities Index to reflect the Fund's current investment strategy of the fixed income portion of the portfolio. The Russell 1000® Value Index measures the performance of the large-cap value segment of the U.S. equity universe. It includes those Russell 1000® Index companies with lower price-to-book ratios and lower expected growth values. The Russell 1000® Value Index is constructed to provide a comprehensive and unbiased barometer for the large-cap value segment. The Russell 1000® Value Index is completely reconstituted annually to ensure new and growing equities are included and that the represented companies continue to reflect value characteristics. The Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate, taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid ARM pass-throughs), asset-backed securities and commercial mortgage-backed securities. The Bloomberg Barclays Emerging Markets USD Aggregate Index tracks total returns for external-currency-denominated debt instruments of the emerging markets. The Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index is an issuer-constrained version of the Bloomberg Barclays U.S. Corporate High-Yield Index that measures the market of USD-denominated, noninvestment grade, fixed-rate, taxable corporate bonds. The index follows the same rules as the uncapped index but limits the exposure of each issuer to 2% of the total market value and redistributes any excess market value index-wide on a pro-rata basis. The Bloomberg Barclays Mortgage-Backed Securities Index covers agency mortgage-backed pass-through securities (both fixed rate and hybrid ARM) issued by Ginnie Mae (“GNMA”), Fannie Mae (“FNMA”) and Freddie Mac (“FHLMC”). |
2 | The Standard and Poor's 500 Index is an unmanaged capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. |
Federated Global Investment Management Company (Fed Global) Federated Equity Management Company of Pennsylvania (FEMCOPA) Federated Investment Management Company (FIMCO) (investment co-advisers to both IFMTR & IFMVF) | |
IFMTR Portfolio Managers | IFMVF Portfolio Managers |
Fed Global James P. Gordon, Jr. James P. Gordon, Jr., CFA, Senior Portfolio Manager has been the Fund's portfolio manager since February 2013. Mr. Gordon is jointly responsible for the day-to-day management of the Fund. He has been with Federated since 2002; has worked in investment management since 1992; and has managed investment portfolios since 2007. Education: B.S. and M. Eng., Cornell University; M.B.A., The University of Chicago, Booth School of Business. | Fed Global James P. Gordon, Jr. James P. Gordon, Jr., CFA, Senior Portfolio Manager has been the Fund's portfolio manager since August 2014. Mr. Gordon is jointly responsible for the day-to-day management of the Fund. He has been with Federated since 2002; has worked in investment management since 1992; and has managed investment portfolios since 2007. Education: B.S. and M. Eng., Cornell University; M.B.A., The University of Chicago, Booth School of Business. |
FEMCOPA Damian M. McIntyre Damian M. McIntyre, CFA and CAIA, Portfolio Manager, has been the Fund's Portfolio Manager since January 2017 and served as associate portfolio manager since April 2015. Mr. McIntyre is jointly responsible for the day-to-day management of the Fund. He has been with Federated since 2008; has worked in investment management since 2008; and has managed investment portfolios since 2014. Education: B.S. and M.B.A., Carnegie Mellon University. | FEMCOPA Damian M. McIntyre Damian M. McIntyre, CFA and CAIA, Portfolio Manager, has been the Fund's Portfolio Manager since January 2017 and served as associate portfolio manager since April 2015. Mr. McIntyre is jointly responsible for the day-to-day management of the Fund. He has been with Federated since 2008; has worked in investment management since 2008; and has managed investment portfolios since 2014. Education: B.S. and M.B.A., Carnegie Mellon University. |
FIMCO Chengjun (Chris) Wu Chengjun (Chris) Wu, CFA, has been the Fund's portfolio manager since April 2014. Mr. Wu is responsible for the day-to-day management of the domestic fixed income portion of the Fund, focusing on asset allocation, interest rate strategy and security selection. He has been with Federated since 2006; has worked in investment management since 2006; and has managed investment portfolios since 2011. Education: B.S., Beijing Normal University; M.S., University of Illinois at Chicago; M.B.A., The University of Chicago, Booth School of Business. | Ian L. Miller Ian L. Miller, CFA, Senior Portfolio Manager, has been the Fund's portfolio manager since April 2017. Mr. Miller is jointly responsible for the day-to-day management of the Fund. He has been with Federated since 2006; has worked in investment management since 2006; and has managed investment portfolios since 2012. Education: B.S., Clarion University; M.S., The Johns Hopkins University. |
FIMCO Jerome D. Conner Jerome D. Conner, CFA, has been the Fund's Portfolio Manager since April 2014. Mr. Conner is responsible for the day-to-day management of the fixed income portion of the Fund, focusing on asset allocation, interest rate strategy and security selection. He has been with Federated since 2002; has worked in investment management since 1995; and has managed investment portfolios since 2010. Education: B.S., U.S. Naval Academy; M.S., Boston University. |
Federated Global Investment Management Company (Fed Global) Federated Equity Management Company of Pennsylvania (FEMCOPA) Federated Investment Management Company (FIMCO) (investment co-advisers to both IFMTR & IFMVF) | |
IFMTR Portfolio Managers | IFMVF Portfolio Managers |
The Fund invests in affiliated investment companies to gain exposure to various fixed-income asset classes (including high-yield, mortgage and emerging markets). These affiliated investment companies are advised by a Co-Adviser. The performance of the Fund is directly affected by the performance of the affiliated investment companies in which the Fund invests. The following individuals are portfolio managers of the affiliated investment companies: | |
FIMCO Todd A. Abraham Todd A. Abraham, CFA, has been the mortgage affiliated fund's portfolio manager since February 1999. Mr. Abraham is Head of the Government/Mortgage-backed Fixed Income Group. He has been with Federated since 1993; has worked in investment management since 1993; and has managed investment portfolios since 1995. Education: B.S., Indiana University of Pennsylvania; M.B.A., Loyola College. | |
Mark E. Durbiano Mark E. Durbiano, CFA, has been the high-yield affiliated fund's portfolio manager August 1993. Mr. Durbiano is Head of the Domestic High Yield Group and Chairman of the Bond Sector Committee. He has been with Federated since 1982; has worked in investment management since 1982; and has managed investment portfolios since 1984. Education: B.A., Dickinson College; M.B.A., University of Pittsburgh. | |
Ihab Salib Ihab Salib has been the emerging markets affiliated fund's portfolio manager since March of 2013. Mr. Salib is Head of the International Fixed Income Group and Chairman of the Currency Management Committee. He has been with Federated since 1999; has worked in investment management since 1992; and has managed investment portfolios since 2002. Education: B.A., State University of New York at Stony Brook. |
• | Federated Investment Management Company: 0.24% of the Fund's assets allocated to fixed-income securities and related investments. |
• | Federated Equity Management Company of Pennsylvania: 67% of the balance of the aggregate advisory fee. |
• | Federated Global Investment Management Corp.: 33% of the balance of the aggregate advisory fee. |
• | Federated Investment Management Company: 0.24% of the Fund's assets allocated to fixed-income securities and related investments. |
• | Federated Equity Management Company of Pennsylvania: 50% of the balance of the aggregate advisory fee. |
• | Federated Global Investment Management Corp.: 50% of the balance of the aggregate advisory fee. |
• | Inter-fund Borrowing and Lending. The SEC has granted an exemption that permits the Funds and all other funds advised by subsidiaries of Federated Investors, Inc. (“Federated funds”) to lend and borrow money for certain temporary purposes directly to and from other Federated funds. Inter-fund borrowing and lending is permitted only: (a) to meet shareholder redemption requests; (b) to meet commitments arising from “failed” trades; and (c) for other temporary purposes. All inter-fund loans must be repaid in seven days or less. |
• | Committed Line of Credit. The Funds participate with certain other Federated funds, on a joint 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 funds, failed trades, payment of dividends, |
settlement of trades and for other short-term, temporary or emergency general business purposes. The Funds cannot borrow under the LOC if an inter-fund loan is outstanding. | |
• | Redemption in Kind. Although the Funds intend to pay Share redemptions in cash, it reserves the right to pay the redemption price in whole or in part by an “in-kind” distribution of the Fund's portfolio securities. Because the Funds have elected to be governed by Rule 18f-1 under the 1940 Act, the Funds are obligated to pay Share redemptions to any one shareholder in cash only up to the lesser of $250,000 or 1% of the net assets represented by such Share class during any 90-day period. Redemptions in kind are made consistent with the procedures adopted by the Funds' Board, which generally include distributions of a pro rata share of the Funds' portfolio assets. |
• | During periods of market volatility; |
• | When a shareholder's trade activity or amount adversely impacts the Fund's ability to manage its assets; or |
• | During any period when the Federal Reserve wire or applicable Federal Reserve banks are closed, other than customary weekend and holiday closings. |
• | When the NYSE is closed, other than customary weekend and holiday closings; |
• | When trading on the NYSE is restricted, as determined by the SEC; or |
• | In which an emergency exists, as determined by the SEC, so that disposal of the Fund's investments or determination of its NAV is not reasonably practicable. |
• | The Reorganization is intended to be structured as a tax-free Reorganization under Section 368(a)(1)(C) of the Code and is a preferable tax result for shareholders as compared to a liquidation of IFMTR (which would be a fully taxable redemption); |
• | Although the investment objectives and certain of the investment policies of IFMTR and IFMVF are different in certain respects, the broad focus of IFMVF's investment strategy allows the various investment strategies currently pursued by IFMTR to be permissible investments for IFMVF; |
• | Generally, IFMVF has better overall long-term performance, and there is no anticipated decline in services to IFMTR shareholders as a result of the Reorganization. The range and quality of the services that IFMTR shareholders will receive as shareholders of IFMVF will be comparable to the range and quality of services that they currently receive; The Funds have the same co-investment advisers and some overlap in portfolio managers; |
• | The Reorganization requires shareholder approval due to the material differences in the Funds' fundamental investment objectives and certain of the Funds' investment limitations; |
• | As a larger fund following the Reorganization, IFMVF may benefit from the potential for greater efficiencies and the ability to spread relative fixed costs over a larger asset base; |
• | Alternatives to the Reorganization, such as liquidation of IFMTR, and the reasons for favoring the Reorganization instead of the alternatives; |
• | The terms and conditions of the Plan, as presented to the Board; |
• | IFMTR shareholders will be reorganized into a fund with lower total gross expenses for each share class. IFMVF's total gross expenses for each share class (before the waiver or reimbursement of any fees or expense) are lower than those of IFMTR, and its total net expenses, including on a pro forma basis, are equal on a per share class basis to those of IFMTR; |
• | The share class structure of IFMTR is identical to that of IFMVF. Prior to the Reorganization, IFMVF's Service Shares commenced operations and IFMFV's existing stand-alone share class was designated as Primary Shares. No change to the existing stand-alone share class occurred as a result of the designation (other than the name change); and |
• | The Reorganization may result in some potential benefits to the Co-Advisers and their affiliates, including the cost savings resulting from managing one combined Fund rather than two separate Funds. |
• | IFMTR will pay direct proxy expenses (e.g., mailing, processing, tabulation, printing and solicitation costs and expenses, as well as the cost associated with printing and mailing of prospectus supplements, as applicable) associated with the Reorganization estimated at $30,000, or $0.0008 per share; |
• | Brokerage expenses for IFMTR related to the disposition of portfolio securities by IFMTR prior to the Reorganization and the purchase of replacement securities are expected to be $50,000, or $0.0013 per share; |
• | The Co-Advisers will pay the other direct and indirect expenses of the Reorganization (consisting primarily of legal and accounting fees); |
• | The effect on the net asset value of IFMTR as a result of the payment of the direct proxy and brokerage expenses would be approximately $0.0021 per share; and |
• | There will be no dilution to shareholders in the transaction, because each IFMTR shareholder will become the owner of shares of IFMVF having a total net asset value equal to the total net asset value of his or her holdings in IFMTR on the date of the Reorganization. |
Fund | Total Net Assets | Shares Outstanding | Net Asset Value Per Share |
Federated Managed Tail Risk Fund II–Primary Shares | $137,244,938 | 26,148,841 | $5.25 |
Reorganization expenses | $(56,497) | ||
Share adjustment | (13,446,211) | ||
Federated Managed Volatility Fund II–Primary Shares | $621,804,194 | 57,585,175 | $10.80 |
Federated Managed Volatility Fund II, Pro Forma Combined–Primary Shares | $758,992,635 | 70,287,808 | $10.80 |
Federated Managed Tail Risk Fund II–Service Shares | $57,094,027 | 10,899,115 | $5.24 |
Fund | Total Net Assets | Shares Outstanding | Net Asset Value Per Share |
Reorganization expenses | $(23,503) | ||
Share adjustment | (5,614,807) | ||
Federated Managed Volatility Fund II–Service Shares | $0 | 0 | $10.80 |
Federated Managed Volatility Fund II, Pro Forma Combined–Service Shares | $57,070,524 | 5,284,308 | $10.80 |
• | the Reorganization as set forth in the Plan will constitute a tax-free reorganization under section 368(a) of the Code, and IFMTR and IFMVF each will be a “party to a reorganization” within the meaning of section 368(b) of the Code; |
• | no gain or loss will be recognized by IFMVF upon its receipt of IFMTR's assets in exchange for Shares of IFMVF; |
• | no gain or loss will be recognized by IFMTR upon transfer of its assets to IFMVF solely in exchange for the Shares of IFMVF or upon the distribution of IFMVF Shares to IFMTR's shareholders in exchange for their IFMTR Shares; |
• | no gain or loss will be recognized by shareholders of IFMTR upon exchange of their IFMTR Shares for IFMVF Shares; |
• | the tax basis of the assets of IFMTR in the hands of IFMVF will be the same as the tax basis of such assets to IFMTR immediately prior to the Reorganization; |
• | the aggregate tax basis of IFMVF Shares received by each shareholder of IFMTR pursuant to the Reorganization will be the same as the aggregate tax basis of the Shares of IFMTR held by such shareholder immediately prior to the Reorganization; |
• | the holding period of IFMVF's Shares received by each shareholder of IFMTR will include the period during which IFMTR's Shares exchanged therefore were held by such shareholder, provided the Shares of IFMTR were held as capital assets on the date of the Reorganization; and |
• | the holding period of the assets of IFMTR in the hands of IFMVF will include the period during which those assets were held by IFMTR. |
IFMTR (Reorganizing Fund) | IFMVF (Surviving Fund) | |||
Date | Amount | Date | Amount | |
Capital Loss Carryforward | 12/31/2017 | $15,384,908 | 12/31/2017 | $5,604,437 |
Year-to-Date Realized Gain (Loss) | 03/29/2018 | $797,363 | 03/29/2018 | $(1,741,850) |
Net Unrealized Gain (Loss) | 03/29/2018 | $(10,057,463) | 03/29/2018 | $15,598,823 |
Distributions Associated with the Reorganization |
CATEGORY | SHAREHOLDER RIGHTS |
Preemptive Rights | None |
Preferences | None |
Appraisal Rights | None |
Conversion Rights (other than intra-fund share conversion rights as provided in the prospectuses of IFMVF and IFMTR) | None |
Exchange Rights (other than the right to exchange for shares of other Federated mutual funds as provided in the prospectuses of IFMVF and IFMTR) | None |
Annual Meeting | Not required |
Right to Call Shareholder Meetings | Special Meetings of Shareholders of the Trust or of a particular Series or Class shall be called by the Trustees or the Chief Executive Officer of the Trust or requested in writing by the holder or holders of at least one-tenth of the outstanding shares of the Trust or of the relevant Series or Class, entitled to vote. Shareholders shall be entitled to at least fifteen days' notice of any meeting. |
Notice of Meeting | Shareholders shall be entitled to at least 15 days' notice of any meeting. |
Record Date for Meetings | The Board of Trustees may fix a date not more than 90 days before the meeting date as the record date for determining shareholders entitled to notice of or to vote at any meeting of shareholders. |
CATEGORY | SHAREHOLDER RIGHTS |
Quorum for Meetings | Except as otherwise provided by law, to constitute a quorum for the transaction of any business at any meeting of Shareholders there must be present, in person or by proxy, holders of more than fifty percent of the total number of outstanding Shares of all Series and Classes and entitled to vote at such meeting. When any one or more Series or Classes, entitled to vote as a single Series or Class, more than fifty percent of the Shares of each such Series or Class entitled to vote shall constitute a quorum. |
Vote Required for Election of Trustees | Subject to any applicable requirements of law or of the Trust's Declaration of Trust or its By-Laws, a plurality of the votes cast shall elect a Trustee. |
Adjournment of Meetings | If a quorum shall not be present for the purpose of any vote that may properly come before the meeting, the Shares present in person or by proxy and entitled to vote at such meeting on such matter may, by plurality vote, adjourn the meeting from time to time to such place and time without further notice than by announcement to be given at the meeting until a quorum entitled to vote on such matter shall be present, whereupon any such matter may be voted upon at the meeting as though held when originally convened. |
Removal of Trustees by Shareholders | A Trustee may be removed at any meeting of shareholders of the Trust by a vote of two-thirds of the outstanding shares. |
Personal Liability of Officers and Trustees | The Trust agrees to indemnify each person who at any time serves as a Trustee or officer of the Trust (each such person being an “indemnitee”) against any liabilities and expenses, including amounts paid in satisfaction of judgments, in compromise or as fines and penalties and counsel fees incurred by such indemnitee in connection with the defense or disposition of any action, suit or other proceeding, whether civil or criminal, before any court or administrative or investigative body in which he may be or may have been involved as a party or otherwise or with which he may be or may have been threatened, by virtue of his being or having been a Trustee or officer of the Trust or his serving or having served as a trustee, director, officer, partner, or fiduciary of another trust, corporation, partnership, joint venture, or other enterprise at the request of the Trust, provided, however, that no indemnitee shall be indemnified hereunder against any liability to any person or any expense of such indemnitee arising by reason of: (i) willful misfeasance; (ii) bad faith; (iii) gross negligence; or (iv) reckless disregard of the duties involved in the conduct of his position. |
Personal Liability of Shareholders | Under certain circumstances, shareholders may be held personally liable as partners under Massachusetts law for obligations of the Trust. To protect its shareholders, the Trust has filed legal documents with Massachusetts that expressly disclaim the liability of its shareholders for acts or obligations of the Trust. In the unlikely event a shareholder is held personally liable for the Trust's obligations, the Trust is required by its Declaration of Trust to use its property to protect or compensate the shareholder. On request, the Trust will defend any claim made and pay any judgment against a shareholder for any act or obligation of the Trust. Therefore, financial loss resulting from liability as a shareholder will occur only if the Trust itself cannot meet its obligations to indemnify shareholders and pay judgments against them. |
Right of Inspection | Under Massachusetts law, and under the Bylaws of the Trust, the trustees of a Massachusetts business trust may from time to time determine whether and to what extent, and at what times and places, and under what conditions and regulations the accounts and books of the Trust maintained on behalf of each series and class of shares of the Trust or any of them may be open to the inspection of the shareholders of any series or class; and no shareholder may have any right to inspect any account or book or document of the Trust except that, to the extent such account or book or document relates to the series or class in which he is a shareholder or the Trust generally, such shareholder will have such right of inspection as conferred by laws or authorized by the trustees or by resolution of the shareholders of the relevant series or class. |
Number of Authorized Shares; Par Value | Unlimited; No Par Value |
Name of Fund | Share Class | Outstanding Shares |
Federated Managed Tail Risk Fund II | Primary Shares | |
Service Shares |
Title of Class | Name and Address | Shares | Percentage of Shares |
Federated Managed Tail Risk Fund II–Primary Shares | |||
Federated Managed Tail Risk Fund II–Service Shares | |||
Name of Fund | Share Class | Outstanding Shares |
Federated Managed Volatility Fund II | Primary Shares | |
Service Shares |
Title of Class | Name and Address | Shares | Percentage of Shares |
Federated Managed Volatility Fund II–Primary Shares | |||
Federated Managed Volatility Fund II–Service Shares | |||
Peter J. Germain
Secretary
— | — | — | — |
1 | The Closed Fund Policy provides that if the additional cash in excess of accrued fund expenses is received by or returned to the fund (the “Balance”) is less than the total amount that the Reorganizing Fund's Co-Advisers assumed and/or waived during the final period and last full fiscal year the fund was open (the “Analysis Period”), the additional cash will be retained by the fund's Co-Advisers. If the Balance is greater than the amount assumed or waived during the Analysis Period, the Co-Advisers will retain up to the amount of assumptions and waivers during the Analysis Period and the excess could be distributed to shareholders remaining at the time of the liquidation of the fund in accordance with the Closed Fund Policy. |
SURVIVING FUND AND REORGANIZING FUND
LIMITATION OF LIABILITY
Federated Managed Volatility Fund II
Title: Secretary |
Federated Managed Tail Risk Fund II
Title: Secretary |
Financial Highlights–Primary Shares
Year Ended December 31 | 2017 | 2016 | 2015 | 2014 | 2013 |
Net Asset Value, Beginning of Period | $4.81 | $5.11 | $5.55 | $7.06 | $6.25 |
Income From Investment Operations: | |||||
Net investment income | 0.081 | 0.081 | 0.08 | 0.081 | 0.111 |
Net realized and unrealized gain (loss) on investments, futures contracts, written options and foreign currency transactions | 0.44 | (0.29) | (0.42) | (0.13) | 0.91 |
TOTAL FROM INVESTMENT OPERATIONS | 0.52 | (0.21) | (0.34) | (0.05) | 1.02 |
Less Distributions: | |||||
Distributions from net investment income | (0.08) | (0.09) | (0.09) | (0.12) | (0.07) |
Distributions from net realized gain on investments, futures contracts, written options and foreign currency transactions | — | — | (0.01) | (1.34) | (0.14) |
TOTAL DISTRIBUTIONS | (0.08) | (0.09) | (0.10) | (1.46) | (0.21) |
Net Asset Value, End of Period | $5.25 | $4.81 | $5.11 | $5.55 | $7.06 |
Total Return2 | 10.95% | (4.20)% | (6.29)% | (0.97)% | 16.45% |
Ratios to Average Net Assets: | |||||
Net expenses | 0.30% | 0.28% | 0.28% | 0.30% | 0.50% |
Net investment income | 1.65% | 1.57% | 1.54% | 1.41% | 1.62% |
Expense waiver/reimbursement3 | 0.67% | 0.69% | 0.67% | 0.61% | 0.53% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $137,245 | $133,556 | $141,823 | $153,165 | $169,658 |
Portfolio turnover | 18% | 21% | 49% | 39% | 137% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value. Total returns do not reflect any additional fees or expenses that may be imposed by separate accounts of insurance companies or in connection with any variable annuity or variable life insurance contract. |
3 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. |
Financial Highlights–Service Shares
Year Ended December 31 | 2017 | 2016 | 2015 | 2014 | 2013 |
Net Asset Value, Beginning of Period | $4.80 | $5.10 | $5.54 | $7.07 | $6.26 |
Income From Investment Operations: | |||||
Net investment income | 0.071 | 0.061 | 0.07 | 0.081 | 0.141 |
Net realized and unrealized gain (loss) on investments, futures contracts, written options and foreign currency transactions | 0.44 | (0.29) | (0.42) | (0.16) | 0.86 |
TOTAL FROM INVESTMENT OPERATIONS | 0.51 | (0.23) | (0.35) | (0.08) | 1.00 |
Less Distributions: | |||||
Distributions from net investment income | (0.07) | (0.07) | (0.08) | (0.11) | (0.05) |
Distributions from net realized gain on investments, futures contracts, written options and foreign currency transactions | — | — | (0.01) | (1.34) | (0.14) |
TOTAL DISTRIBUTIONS | (0.07) | (0.07) | (0.09) | (1.45) | (0.19) |
Net Asset Value, End of Period | $5.24 | $4.80 | $5.10 | $5.54 | $7.07 |
Total Return2 | 10.67% | (4.48)% | (6.43)% | (1.33)% | 16.11% |
Ratios to Average Net Assets: | |||||
Net expenses | 0.54% | 0.53% | 0.53% | 0.54% | 0.75% |
Net investment income | 1.36% | 1.32% | 1.29% | 1.46% | 2.01% |
Expense waiver/reimbursement3 | 0.67% | 0.69% | 0.67% | 0.63% | 0.54% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $57,094 | $63,317 | $69,876 | $67,434 | $10,101 |
Portfolio turnover | 18% | 21% | 49% | 39% | 137% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value. Total returns do not reflect any additional fees or expenses that may be imposed by separate accounts of insurance companies or in connection with any variable annuity or variable life insurance contract. |
3 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. |
Financial Highlights–Primary Shares
Year Ended December 31 | 2017 | 2016 | 2015 | 2014 | 2013 |
Net Asset Value, Beginning of Period | $9.52 | $9.29 | $10.54 | $11.30 | $9.56 |
Income From Investment Operations: | |||||
Net investment income1 | 0.29 | 0.34 | 0.44 | 0.54 | 0.50 |
Net realized and unrealized gain (loss) on investments, futures contracts, written options, swap contracts and foreign currency transactions | 1.39 | 0.34 | (1.20) | (0.12) | 1.54 |
TOTAL FROM INVESTMENT OPERATIONS | 1.68 | 0.68 | (0.76) | 0.42 | 2.04 |
Less Distributions: | |||||
Distributions from net investment income | (0.40) | (0.45) | (0.44) | (0.38) | (0.30) |
Distributions from net realized gain on investments, futures contracts, written options, swap contracts and foreign currency transactions | — | — | (0.05) | (0.80) | — |
TOTAL DISTRIBUTIONS | (0.40) | (0.45) | (0.49) | (1.18) | (0.30) |
Net Asset Value, End of Period | $10.80 | $9.52 | $9.29 | $10.54 | $11.30 |
Total Return2 | 18.11% | 7.69% | (7.64)% | 4.01% | 21.74% |
Ratios to Average Net Assets: | |||||
Net expenses | 0.83% | 0.79%3 | 0.75%3 | 0.76% | 0.82% |
Net investment income | 2.91% | 3.72% | 4.38% | 4.99% | 4.80% |
Expense waiver/reimbursement4 | 0.09% | 0.14% | 0.16% | 0.15% | 0.16% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $621,804 | $563,745 | $631,701 | $652,011 | $451,067 |
Portfolio turnover | 71% | 90% | 97% | 54% | 52% |
Portfolio turnover (excluding purchases and sales from dollar-roll transactions) | 71% | 90% | 97% | 54% | 52% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value. Total returns do not reflect any additional fees or expenses that may be imposed by separate accounts of insurance companies or in connection with any variable annuity or variable life insurance contract. |
3 | The net expense ratio is calculated without reduction for expense offset arrangements. The net expense ratios are 0.79% and 0.75% for the years ended December 31, 2016 and 2015, respectively, after taking into account these expense reductions. |
4 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. |
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
CUSIP 313916819
2018 ©Federated Investors, Inc.
4000 Ericsson Drive
Warrendale, Pennsylvania 15086-7561
Telephone No: 1-800-341-7400
4000 Ericsson Drive
Warrendale, Pennsylvania 15086-7561
Telephone No: 1-800-341-7400
1. | Statement of Additional Information of Federated Managed Tail Risk Fund II, dated April 30, 2018. |
2. | Statement of Additional Information of Federated Managed Volatility Fund II, dated April 30, 2018. |
3. | Audited Financial Statements of Federated Managed Tail Risk Fund II, dated December 31, 2017. |
4. | Audited Financial Statements of Federated Managed Volatility Fund II, dated December 31, 2017. |
■ | 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 Funds' Board of Trustees (the “Trustees”). |
■ | Derivative contracts listed on exchanges are valued at their reported settlement or closing price, except that options are valued at the mean of closing bid and asked quotations. |
■ | Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Trustees. |
■ | Shares of other mutual funds or non-exchange-traded investment companies are valued based upon their reported NAVs. |
■ | For securities that are fair valued in accordance with procedures established by and under the general supervision of the Trustees, certain factors may be considered such as: the last traded or purchase price of the security, information obtained by contacting the issuer or dealers, analysis of the issuer's financial statements or other available documents, fundamental analytical data, the nature and duration of restrictions on disposition, the movement of the market in which the security is normally traded, public trading in similar securities or derivative contracts of the issuer or comparable issuers, movement of a relevant index, or other factors including but not limited to industry changes and relevant government actions. |
■ | With respect to securities traded principally in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures contracts; |
■ | Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; |
■ | Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, or a natural disaster affecting the issuer's operations or regulatory changes or market developments affecting the issuer's industry. |
Federated Equity Management Company of Pennsylvania
Federated Investors Tower
1001 Liberty Avenue
Pittsburgh, PA 1522-3779
101 Park Avenue, 41st Floor,
New York, NY 10178
Federated Investors Tower
1001 Liberty Avenue
Pittsburgh, PA 15222-3779
Federated Investors Tower
1001 Liberty Avenue
Pittsburgh, PA 15222-3779
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
2018 ©Federated Investors, Inc.
Item 16. Exhibits
(1) | |||
1.1 | Conformed copy of Amended and Restated Declaration of Trust of Registrant | 33 | |
1.2 | Conformed copy of amendment #23 of Declaration of Trust of Registrant | 36 | |
1.3 | Form of amendment #24 of Declaration of Trust of Registrant | 37 | |
1.4 | Conformed copy of Amendment #25 of Declaration of Trust of Registrant | 39 | |
1.5 | Conformed copy of Amendment #26 of Declaration of Trust of Registrant | 41 | |
1.6 | Conformed copy of Amendment # 27 of Declaration of Trust of Registrant | 45 | |
1.7 | Conformed copy of Amendment # 28 of Declaration of Trust of Registrant | 47 | |
1.8 | Conformed copy of Amendment # 29 of Declaration of Trust of Registrant | 50 |
(2) | |||
2.1 | Copy of By-Laws | ||
2.2 | Amendment Nos. 1, 2 and 3 | 19 | |
2.3 | Amendment Nos. 4 and 5 | 30 | |
2.4 | Amendment Nos. 6, 7 and 8 | 33 | |
2.5 | Amendment No. 9 | 45 | |
(3) | Not Applicable |
(4) | Form of Agreement and Plan of Reorganization are filed herein as Annex A to the Prospectus/Proxy Statement | + |
(5) | |||
5.1 | Copy of Specimen Certificate of Shares of Beneficial Interest of Federated American Leaders Fund II; Federated Utility Fund II; Federated Fund for U.S. Government Securities II; Federated High Income Bond Fund II; Federated Prime Money Fund II; Federated Growth Strategies Fund II; and Federated Equity Income Fund II | 15 | |
5.2 | Copy of Specimen Certificate of Shares of Beneficial Interest of Federated International Equity Fund II As of September 1, 1997, Federated Securities Corp. stopped issuing share certificates. | 4 |
(6) | |||
6.1 | Conformed copy of Investment Advisory Contract between the Registrant and Federated Advisers with conformed copies of Exhibits A,B,C,D,and E | 3 | |
6.2 | Conformed copy of Exhibit F to Investment Advisory Contract | 6 | |
6.3 | Conformed copy of Exhibit G to Investment Advisory Contract | 10 | |
6.4 | Conformed copy of Exhibit H to Investment Advisory Contract | 12 | |
6.5 | Conformed copy of Exhibit I to Investment Advisory Contract | 20 | |
6.6 | Conformed copy of Exhibits J and K to Investment Advisory Contract | 22 | |
6.7 | Conformed copy of Exhibit L to Investment Advisory Contract | 24 | |
6.8 | Conformed copy of Amendment to the Investment Advisory Contract | 25 | |
6.9 | Conformed copy of Investment Advisory Contract between the Registrant and Federated Global Research Corp. with respect to Federated International Equity Fund II with a conformed copy of Exhibit A attached | 10 | |
6.10 | Conformed copy of Exhibit B to Investment Advisory Contract | 26 | |
6.11 | Conformed copy of Sub-Advisory Agreement between Federated Advisers and Federated Global Research Corp. with respect to Federated Utility Fund II | 17 | |
6.12 | Conformed copy of Exhibit A to Sub-Advisory Contract | 10 | |
6.12 | Conformed copy of Sub-Advisory Agreement between Federated Investment Management Company and Federated Global Investment Management Corp. with respect to Federated Strategic Income Fund II | 22 | |
6.14 | Conformed copy of Exhibit A to Sub-Advisory Contract | 10 | |
6.15 | Conformed copy of Exhibit M to the Investment Advisory Contract | 27 | |
6.16 | Conformed copy of Sub-Advisory Agreement between Federated Investment Management Company and Federated Global Investment Management Corp. with respect to Federated Kaufmann Fund II | 27 | |
6.17 | Conformed copy of Exhibit A to the Sub-Advisory Contract | 27 | |
6.18 | Conformed copy of Assignment of Advisory Contract and Sub-Advisory Contract | 30 | |
6.19 | Conformed copy of new Sub-Advisory Contract with respect to Federated Capital Income Fund II | 30 | |
6.20 | Conformed copy of new Advisory Contract between Federated Equity Management Company of Pennsylvania and Registrant | 33 | |
6.21 | Conformed copy of Exhibit B to the Sub-Advisory Agreement | 33 | |
6.22 | Conformed copy of Assignment of Advisory Contract to Federated Global Investment Management Corp. | 37 | |
6.23 | Conformed copy of Exhibit C to Advisory Contract for Federated Clover Value Fund II | 37 | |
6.24 | Conformed copy of Amendment 1 to Exhibit A of Advisory Contract for Federated Managed Tail Risk Fund II. | 44 | |
6.25 | Conformed copy of Co-Advisory Contract for Federated Managed Volatility Fund II and Federated Managed Tail Risk Fund II. | 45 | |
6.26 | Conformed copy of Amendment 1 to Exhibit F of the Advisory Contract for Federated Kaufmann Fund II | 45 | |
6.27 | Conformed copy of Amendment 1 to Exhibit A of the Sub-Advisory Agreement for Federated Kaufmann Fund II | 47 |
(7) | |||
7.1 | Conformed copy of Distributor’s Contract of the Registrant with conformed copies of Exhibits A,B,C and D attached | 3 | |
7.2 | Conformed copy of Exhibits E,F,L and M to Distributor’s Contract | 23 | |
7.3 | Conformed copy of Exhibit G to Distributor’s Contract | 10 | |
7.4 | Conformed copy of Exhibit H to Distributor’s Contract | 12 | |
7.5 | Conformed copy of Exhibit I to Distributor’s Contract | 20 | |
7.6 | Conformed copy of Exhibit J and K to Distributor’s Contract | 22 | |
7.7 | Conformed copy of Exhibit N to Distributor’s Contract | 24 | |
7.8 | Conformed copy of Amendment to the Distributor’s Contract | 25 | |
7.9 | Conformed copy of Exhibit O to Distributor’s Contract | 27 | |
7.10 | The Registrant hereby incorporates the conformed copy of the specimen Mutual Funds Sales and Service Agreement; Mutual Funds Service Agreement; and Plan Trustee/Mutual Funds Service Agreement from Item 24(b)(6) of the Cash Trust Series II Registration Statement on Form N-1A, filed with the Commission on July 24, 1995. (File Nos. 33-38550 and 811-6269). | ||
7.11 | Conformed copy of Exhibit P to Distributor’s Contract | 30 | |
7.12 | Conformed copy of Exhibit Q to Distributor’s Contract | 33 | |
7.13 | Conformed copy of Exhibit N to Distributor’s Contract as revised on February 15, 2013. | 42 | |
7.14 | Conformed copy of Amendment to Distributor’s Contract dated June 1, 2013 | 44 | |
7.15 | Conformed copy of Exhibit R to the Distributor’s Contract | 48 | |
7.16 | Conformed copy of Exhibit S to the Distributor’s contract. | 50 |
(8) | Not applicable |
(9) | |||
9.1 | Conformed copy of Custodian Contract | 7 | |
9.2 | Conformed copy of Domestic Custody Fee Schedule | 17 | |
9.3 | Conformed copy of Amendment to the Custodian Contract of the Registrant | 35 | |
9.4 | Conformed copy of Amendment to the Custody Agreement of the Registrant | 40 | |
9.5 | Copy of Revised Exhibit 1 (revised as of February 15, 2013) to the Custodian Contract | 42 |
(10) | |||
10.1 | Conformed copy of Distribution Plan of the Registrant | 31 | |
10.2 | Conformed copy of Exhibit D to the Distribution Plan | 33 | |
10.3 | Conformed copy of Exhibit A and Exhibit B (as revised on February 15, 2013) to the Distribution Plan | 42 | |
10.4 | Conformed copy of Exhibit E to the Distribution Plan | 47 |
(11) | Conformed Copy of Opinion and Consent of Counsel Regarding the Legality of Shares being Issued. | + |
(12) | Form of Opinion regarding Tax Consequences of the Reorganization. | + |
(13) | |||
1 | Conformed copy of Amended and Restated Agreement for Fund Accounting Services, Administrative Services, Transfer Agency Services, and Custody Services Procurement; | 19 | |
2 | The Registrant hereby incorporates the conformed copy of Amendment No. 2 to the Amended & Restated Agreement for Fund Accounting Services, Administrative Services, Transfer Agency Services and Custody Services Procurement from Item 23 (h)(v) of the Federated U.S. Government Securities: 2-5 Years Registration Statement on Form N-1A, filed with the Commission on March 30, 2004. (File Nos. 2-75769 and 811-3387); | ||
3 | The Registrant hereby incorporates the conformed copy of Amendment No. 3 to the Amended & Restated Agreement for Fund Accounting Services, Administrative Services, Transfer Agency Services and Custody Services Procurement from Item 23 (h)(v) of the Federated U.S. Government Securities: 2-5 Years Registration Statement on Form N-1A, filed with the Commission on March 30, 2004. (File Nos. 2-75769 and 811-3387); | ||
4 | Conformed copy of Amended and Restated Shareholder Services Agreement; | 16 | |
5 | The Registrant hereby incorporates by reference the conformed copy of the Agreement for Administrative Services, with Exhibit 1 and Amendments 1 and 2 attached, between Federated Administrative Services and the Registrant from Item 23(h)(iv)of the Federated Total Return Series, Inc. Registration Statement on Form N-1A, filed with the Commission on November 29, 2004. (File Nos. 33-50773 and 811-7115); | ||
6 | The Registrant hereby incorporates the conformed copy of the Second Amended and Restated Services Agreement, with attached Schedule 1 revised 6/30/04, from Item 23(h)(vii) of th Cash Trust Series, Inc. Registration Statement filed with the Commission on July 29, 2004. (File Nos. 33-29838 and 811-5843) | ||
7 | The Registrant hereby incorporates the conformed copy of the Financial Administration and Accounting Services Agreement, with attached Exhibit A revised 6/30/04, from Item 23(h)(viii) of the Cash Trust Series, Inc. Registration Statement filed with the Commission on July 29, 2004. (File Nos. 33-29838 and 811-5843) | ||
8 | The Registrant hereby incorporates the conformed copy of Transfer Agency and Service Agreement between the Federated Funds and State Street Bank and Trust Company from Item 23 (h)(ix) of the Federated Total Return Government Bond Fund Registration Statement on Form N-1A, filed with the Commission on April 28, 2005. (File Nos. 33-60411 and 811-07309) | ||
9 | The Registrant hereby incorporates by reference the conformed copy of Amendment No. 3 to the Agreement for Administrative Services between Federated Administrative Services Company and the Registrant dated June 1, 2005, form Item 23(h)(ii) of the Cash Trust Series, Inc. Registration Statement on Form N-1A, filed with the Commission on July 27, 2005. (File Nos. 33-29838 and 811-5843) | ||
10 | The Registrant hereby incorporates the Conformed copy of the Financial Administration and Accounting Services Agreement, with attached Exhibit A revised 3/1/06, from Item (h)(viii) of the Federated Total Return Government Bond Fund Registration Statement on Form N-1A, filed with the Commission on April 26, 2006. (File Nos. 33-60411 and 811-07309) | ||
11 | The Registrant hereby incorporates the Conformed copy of the Transfer Agency and Service Agreement between the Federated Funds listed on Schedule A revised 3/1/06, from Item (h)(ix) of the Federated Total Return Government Bond Fund Registration Statement on Form N-1A, filed with the Commission on April 26, 2006. (File Nos. 33-60411 and 811-07309) | ||
12 | Conformed copy of the Financial Administration and Accounting Services Agreement | 40 | |
13 | Copy of Exhibit A (revised as of February 15, 2013) to the Financial Administration Accounting and Services Agreement | 42 | |
14 | Copy of Schedule 1 (revised as of February 15, 2013) to the Second Amended and Restated Services Agreement | 42 | |
15 | Copy of Exhibit 1 (revised as of February 15, 2013) to the Agreement for Administrative Services | 42 | |
16 | Conformed Copy of Second Amended and Restated Administrative Services Agreement dated 9/1/2017 | 50 |
(14) | |||
14.1 | Conformed copy of Consent of KPMG, LLP, Independent Registered Public Accounting Firm | + | |
(15) | Not applicable |
(16) | |||
16.1 | Conformed copy of Unanimous Consent of Trustees; | + | |
16.2 | Conformed copy of Power of Attorney of the Registrant | + |
(17) | Form of Ballot | + |
+ | Exhibit is being filed electronically with registration statement; indicate by footnote |
ALL RESPONSES ARE INCORPORATED BY REFERENCE TO A POST-EFFECTIVE AMENDMENT (PEA) OF THE REGISTRANT FILED ON FORM N-1A (FILE NOS. 33-69268 and 811-8042)
| ||
3 | PEA No. 2 filed August 23, 1994 | |
4 | PEA No. 3 filed January 19, 1995 | |
6 | PEA No. 5 filed on April 3, 1995 | |
7 | PEA No. 6 filed on April 21, 1994 | |
10 | PEA No. 9 filed on February 16, 1996 | |
12 | PEA No. 12 filed on February 10, 1997 | |
17 | PEA No. 18 filed on April 22, 1998 | |
19 | PEA No. 20 filed on February 19, 1999 | |
20 | PEA No. 22 filed on April 20, 1999 | |
22 | PEA No. 25 filed on February 17, 2000 | |
24 | PEA No. 30 filed on April 23, 2001 | |
25 | PEA No. 30 filed on April 23, 2001 | |
26 | PEA No. 31 filed on February 28, 2002 | |
27 | PEA No. 36 filed on April 29, 2002 | |
30 | PEA No. 40 filed on February 20, 2004 | |
31 | PEA No. 41 filed on April 29, 2004 | |
33 | PEA No. 45 filed on April 28, 2006 | |
36 | PEA No. 50 filed on February 13,2009 | |
37 | PEA No. 52 filed on April 30, 2009 | |
39 | PEA No. 55 filed on April 23, 2010 | |
40 | PEA No. 56 filed on April 27, 2011 | |
41 | PEA No. 60 filed on April 25, 2012 | |
42 | PEA No. 64 filed on April 26, 2013 | |
44 | PEA No. 68 filed on April 28, 2014 | |
45 | PEA No. 70 filed on January 30, 2015 | |
47 | PEA No. 74 filed on January 29, 2016 | |
48 | PEA No. 76 filed on April 28, 2016 | |
50 | PEA No. 80 filed on April 24,2018 |
Item 17. Undertakings
(1) The undersigned Registrant agrees that prior to any public reoffering of the securities registered through the use of a prospectus which is a part of this Registration Statement by any person or party who is deemed to be an underwriter within the meaning of Rule 145(c) of the Securities Act of 1933, the reoffering prospectus will contain the information called for by the applicable registration form for reofferings by persons who may be deemed underwriters, in addition to the information called for by the other items of the applicable form.
(2) The undersigned Registrant agrees that every prospectus that is filed under paragraph (1) above will be filed as a part of an amendment to the Registration Statement and will not be used until the amendment is effective, and that, in determining any liability under the Securities Act of 1933, each post-effective amendment shall be deemed to be a new Registration Statement for the securities offered therein, and the offering of the securities at that time shall be deemed to be the initial bona fide offering of them.
(3) The undersigned Registrant agrees to file by Post-Effective Amendment the opinion of counsel regarding the tax consequences of the proposed reorganization required by Item (16)(12) of Form N-14 prior to the closing date of the reorganization.
SIGNATURES Pursuant to the requirements of the Securities Act of 1933, and the Investment Company Act of 1940, the Registrant, Federated Insurance Series, has duly caused this Amendment to its Registration Statement to be signed on its behalf by the undersigned, duly authorized, in the City of Pittsburgh and Commonwealth of Pennsylvania, on the 1st day of May 2018. |
Federated Insurance Series |
BY: /s/ George F. Magera George F. Magera, Assistant Secretary |
Pursuant to the requirements of the Securities Act of 1933, this Amendment to its Registration Statement has been signed below by the following person in the capacity and on the date indicated: |
NAME | TITLE | DATE |
BY: /s/ George F. Magera George F. Magera, Assistant Secretary | Attorney In Fact For the Persons Listed Below | May 1, 2018 |
John B. Fisher* | President and (Principal Executive Officer) | |
J. Christopher Donahue* | Trustee | |
Thomas R. Donahue* | Trustee | |
Lori A. Hensler* | Treasurer (Principal Financial Officer/Principal Accounting Officer) | |
John T. Collins* | Trustee | |
G. Thomas Hough* | Trustee | |
Maureen Lally-Green* | Trustee | |
Charles F. Mansfield, Jr.* | Trustee | |
Thomas O’Neill* | Trustee | |
P. Jerome Richey* | Trustee | |
John S. Walsh* | Trustee | |
*By Power of Attorney |