United States
Securities and Exchange Commission
Washington, D.C. 20549
Form N-CSR
Certified Shareholder Report of Registered Management Investment Companies
811-21822
(Investment Company Act File Number)
Federated Managed Pool Series
_______________________________________________________________
(Exact Name of Registrant as Specified in Charter)
Federated Investors Funds
4000 Ericsson Drive
Warrendale, Pennsylvania 15086-7561
(Address of Principal Executive Offices)
(412) 288-1900
(Registrant's Telephone Number)
John W. McGonigle, Esquire
Federated Investors Tower
1001 Liberty Avenue
Pittsburgh, Pennsylvania 15222-3779
(Name and Address of Agent for Service)
(Notices should be sent to the Agent for Service)
Date of Fiscal Year End: 11/30/16
Date of Reporting Period: 11/30/16
Item 1. Reports to Stockholders
Ticker | FIBPX |
1 | The Blended Index is a custom blended index comprised of 50% of the Bloomberg Barclays Emerging Markets USD Aggregate Index and 50% of the J.P. Morgan Global (ex-U.S.) Government Bond Index. Please see the footnotes to the line graphs under “Fund Performance and Growth of a $10,000 Investment” below for the definition of, and more information about, the Blended Index. |
2 | Please see the footnotes to the line graphs under “Fund Performance and Growth of a $10,000 Investment” below for the definition of, and more information about, the BBEMAI. |
3 | Duration is a measure of a security's price sensitivity to changes in interest rates. Securities with longer durations are more sensitive to changes in interest rates than securities of shorter durations. |
4 | Bond prices are sensitive to changes in interest rates, and a rise in interest rates can cause a decline in their prices. |
5 | International investing involves special risks including currency risk, increased volatility, political risks and differences in auditing and other financial standards. Prices of emerging market securities can be significantly more volatile than the prices of securities in developed countries, and currency risk and political risks are accentuated in emerging markets. |
Federated International Bond Strategy Portfolio | NA | BBEMAI | JPMGXUS | Blended Index | |
F | NA | I | I | I | |
12/24/2008 | 10,000 | 10,000 | 10,000 | 10,000 | |
11/30/2009 | 14,594 | 13,501 | 11,013 | 12,207 | |
11/30/2010 | 15,778 | 15,344 | 10,743 | 12,867 | |
11/30/2011 | 17,128 | 16,098 | 11,607 | 13,707 | |
11/30/2012 | 19,175 | 19,069 | 11,981 | 15,166 | |
11/30/2013 | 18,216 | 18,409 | 11,343 | 14,505 | |
11/30/2014 | 19,001 | 19,844 | 11,025 | 14,852 | |
11/30/2015 | 18,182 | 19,872 | 10,253 | 14,342 | |
11/30/2016 | 19,121 | 21,287 | 10,713 | 15,185 |
1 Year | 5 Years | Start of Performance (12/24/2008) | |
Fund | 5.16% | 2.22% | 8.51% |
BBEMAI | 7.12% | 5.75% | 9.99% |
JPMGXUS | 4.49% | -1.59% | 0.87% |
Blended Index | 5.87% | 2.07% | 5.41% |
1 | Represents a hypothetical investment of $10,000 in the Fund. The Fund's performance assumes the reinvestment of all dividends and distributions. The BBEMAI and the JPMGXUS have been adjusted to reflect reinvestment of dividends on securities in the indexes. |
2 | The BBEMAI tracks total returns for external-currency-denominated debt instruments of the emerging markets. Effective August 24, 2016, the name of the “Barclays Emerging Markets USD Aggregate Index” changed to “Bloomberg Barclays Emerging Markets USD Aggregate Index.” The JPMGXUS is a broad measure of bond performance in developed countries, excluding the U.S. The indexes are not adjusted to reflect sales loads, expenses or other fees that the Securities and Exchange Commission requires to be reflected in the Fund's performance. The indexes are unmanaged and, unlike the Fund, are not affected by cash flows. It is not possible to invest directly in an index. |
Country | Country Exposure as a Percentage of Total Net Assets2,3 | Currency Exposure as a Percentage of Total Net Assets3,4 |
Japan | 14.5% | 14.5% |
United Kingdom | 10.5% | 10.5% |
Germany | 5.6% | — |
France | 5.5% | — |
Spain | 5.0% | — |
Italy | 4.8% | — |
Belgium | 2.1% | — |
Australia | 1.4% | 1.4% |
Netherlands | 1.1% | — |
Canada | 1.1% | 1.1% |
Sweden | 0.3% | 0.3% |
United States | 0.2% | 0.2% |
Euro | — | 24.1% |
Other Security | 45.4% | 45.4% |
SUB-TOTAL | 97.5% | 97.5% |
Cash Equivalents5 | 3.1% | 3.1% |
Derivative Contracts6,7 | 0.0% | 0.0% |
Other Assets and Liabilities—Net8 | (0.6)% | (0.6)% |
TOTAL | 100.0% | 100.0% |
1 | The fixed-income securities of some issuers may not be denominated in the currency of the issuer's designated country. Therefore, the two columns above “Country Exposure as a Percentage of Total Net Assets” and “Currency Exposure as a Percentage of Total Net Assets” may not be equal. |
2 | This column depicts the Fund's exposure to various countries through its investment in foreign fixed-income securities, along with the Fund's holdings of cash equivalents and other assets and liabilities. With respect to foreign corporate fixed-income securities, country allocations are based primarily on the country in which the issuing company has registered the security. However, the Fund's Adviser may allocate the company to a country based on other factors such as the location of the company's head office, the jurisdiction of the company's incorporation, the location of the principal trading market for the company's securities or the country from which a majority of the company's revenue is derived. |
3 | As of the date specified above, the Fund owned shares of one or more affiliated investment companies. For purposes of this table, the affiliated investment company (other than an affiliated money market fund) is not treated as a single portfolio security, but rather the Fund is treated as owning a pro rata portion of each security and each other asset and liability owned by the affiliated investment company. Accordingly, the percentages of total net assets shown in the table will differ from those presented on the Portfolio of Investments. |
4 | This column depicts the Fund's exposure to various currencies through its investment in foreign fixed-income securities, currency derivative contracts and foreign exchange contracts (which for purposes of this report includes any currency options sold by the Fund and currency forward contracts). |
5 | Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements. This does not include cash held in the Fund that is denominated in foreign currencies. See the Statement of Assets and Liabilities for information regarding the Fund's foreign cash position. |
6 | Represents less than 0.1%. |
7 | Based upon net unrealized appreciation (depreciation) or value of the derivative contracts as applicable. Derivative contracts may consist of futures, forwards, options and swaps. The impact of a derivative contract on the Fund's performance may be larger than its unrealized appreciation (depreciation) or value may indicate. In many cases, the notional value or amount of a derivative contract may provide a better indication of the contract's significance to the portfolio. More complete information regarding the Fund's direct investment in derivative contracts, including unrealized appreciation (depreciation), value and notional values or amounts of such contracts, can be found in the table at the end of the Portfolio of Investments included in this Report. |
8 | Assets, other than investments in securities and derivative contracts, less liabilities. See Statement of Assets and Liabilities. |
Foreign Currency Par Amount or Shares | Value in U.S. Dollars | ||
BONDS—51.9% | |||
AUSTRALIAN DOLLAR—1.4% | |||
Sovereign—1.4% | |||
100,000 | Australia, Government of, 2.75%, 4/21/2024 | $74,982 | |
120,000 | Australia, Government of, 5.75%, 7/15/2022 | 104,891 | |
TOTAL | 179,873 | ||
BRITISH POUND—10.5% | |||
Sovereign—10.5% | |||
400,000 | United Kingdom, Government of, 2.75%, 9/7/2024 | 560,415 | |
369,500 | United Kingdom, Government of, 4.75%, 3/7/2020 | 529,056 | |
160,000 | United Kingdom, Government of, Unsecd. Note, 4.25%, 6/7/2032 | 266,376 | |
TOTAL | 1,355,847 | ||
CANADIAN DOLLAR—1.1% | |||
Sovereign—1.1% | |||
145,000 | Canada, Government of, 1.50%, 6/1/2023 | 109,394 | |
30,000 | Canada, Government of, 5.75%, 6/1/2029 | 32,275 | |
TOTAL | 141,669 | ||
EURO—24.1% | |||
Sovereign—24.1% | |||
220,000 | Belgium, Government of, 2.25%, 6/22/2023 | 268,354 | |
345,000 | France, Government of, 0.50%, 5/25/2025 | 366,250 | |
270,000 | France, Government of, 2.75%, 10/25/2027 | 344,851 | |
270,000 | Germany, Government of, 1.75%, 2/15/2024 | 325,313 | |
130,000 | Germany, Government of, Unsecd. Note, 1.00%, 8/15/2024 | 149,094 | |
220,000 | Germany, Government of, Unsecd. Note, 1.00%, 8/15/2025 | 251,495 | |
200,000 | Italy, Government of, 2.50%, 5/1/2019 | 222,822 | |
34,000 | Italy, Government of, 3.75%, 5/1/2021 | 40,665 | |
283,000 | Italy, Government of, 4.50%, 5/1/2023 | 358,665 | |
140,000 | 1,2 | Netherlands, Government of, Unsecd. Note, 0.25%, 7/15/2025 | 148,075 |
240,000 | Spain, Government of, Sr. Unsecd. Note, 1.40%, 1/31/2020 | 263,576 | |
50,000 | 1,2 | Spain, Government of, Sr. Unsecd. Note, 1.95%, 7/30/2030 | 53,604 |
175,000 | 1,2 | Spain, Government of, Sr. Unsecd. Note, 2.75%, 10/31/2024 | 205,690 |
97,000 | 1,2 | Spain, Government of, Sr. Unsub., 4.00%, 4/30/2020 | 117,023 |
TOTAL | 3,115,477 | ||
JAPANESE YEN—14.5% | |||
Sovereign—14.5% | |||
30,400,000 | Japan, Government of, 1.30%, 3/20/2021 | 281,775 | |
20,000,000 | Japan, Government of, 1.90%, 12/20/2023 | 198,969 | |
32,000,000 | Japan, Government of, 2.20%, 3/20/2026 | 336,897 | |
25,000,000 | Japan, Government of, Sr. Unsecd. Note, 1.30%, 6/20/2035 | 254,047 | |
20,000,000 | Japan, Government of, Sr. Unsecd. Note, 1.70%, 9/20/2044 | 226,556 | |
36,000,000 | Japan, Government of, Sr. Unsecd. Note, 1.80%, 9/20/2030 | 384,913 | |
17,000,000 | Japan, Government of, Sr. Unsecd. Note, 2.10%, 12/20/2029 | 186,359 | |
TOTAL | 1,869,516 |
Foreign Currency Par Amount or Shares | Value in U.S. Dollars | ||
BONDS—continued | |||
SWEDISH KRONA—0.3% | |||
Sovereign—0.3% | |||
290,000 | Sweden, Government of, 1.00%, 11/12/2026 | $32,859 | |
TOTAL BONDS (IDENTIFIED COST $7,042,624) | 6,695,241 | ||
PURCHASED PUT OPTIONS—0.2% | |||
700,000 | Bank of America Merrill Lynch USD CALL/JPY PUT OPTION, Strike Price 111, Expiration Date 12/15/2016 (IDENTIFIED COST $4,970 ) | 22,674 | |
REPURCHASE AGREEMENT—3.1% | |||
404,000 | Interest in $250,000,000 joint repurchase agreement, 0.27% dated 11/30/2016 under which Merrill Lynch, Pierce, Fenner & Smith, Inc. will repurchase the securities provided as collateral for $250,001,875 on 12/1/2016. The securities provided as collateral at the end of the period held with BNY Mellon, tri-party agent, were U.S. Government Agency Securities with various maturities to 6/2/2036 and the market value of those underlying securities was $255,002,379. | 404,000 | |
INVESTMENT COMPANY—45.4% | |||
593,402 | 3 | Emerging Markets Core Fund (IDENTIFIED COST $6,174,622) | 5,868,749 |
TOTAL INVESTMENTS—100.6% (IDENTIFIED COST $13,626,216)4 | 12,990,664 | ||
OTHER ASSETS AND LIABILITIES - NET—(0.6)%5 | (79,553) | ||
TOTAL NET ASSETS—100% | $12,911,111 |
Settlement Date | Counterparty | Foreign Currency Units to Receive/Deliver | In Exchange For | Unrealized Appreciation (Depreciation) |
Contracts Purchased: | ||||
12/9/2016 | Bank of America | 500,000 AUD | $382,375 | $(13,241) |
12/9/2016 | Bank of America | $400,000 | 40,161,600 JPY | $48,736 |
12/9/2016 | Bank of America | $700,000 | 72,177,000 JPY | $68,721 |
12/9/2016 | Bank of America | $740,000 | 77,083,580 JPY | $65,807 |
12/9/2016 | Barclays | 40,000 AUD | 246,359 NOK | $592 |
12/9/2016 | Barclays | 45,000 AUD | 277,154 NOK | $666 |
12/9/2016 | Barclays | 170,000 AUD | 1,047,027 NOK | $2,518 |
12/9/2016 | Barclays | 300,000 EUR | $336,038 | $(17,907) |
12/9/2016 | BNP Paribas | 175,000 EUR | 148,935 GBP | $(833) |
12/9/2016 | Citibank | 370,000 EUR | 43,970,985 JPY | $7,779 |
12/9/2016 | Citibank | 1,000,000 EUR | $1,103,610 | $(43,176) |
12/9/2016 | Credit Agricole | 40,000 AUD | 244,518 NOK | $809 |
12/9/2016 | Credit Agricole | 45,000 AUD | 275,083 NOK | $910 |
12/9/2016 | Goldman Sachs | 750,000 EUR | $831,809 | $(36,483) |
12/9/2016 | JPMorgan | 340,000 AUD | $259,793 | $(8,782) |
12/9/2016 | JPMorgan | 400,000 AUD | $308,467 | $(13,159) |
12/9/2016 | JPMorgan | 200,000 EUR | $218,787 | $(6,700) |
12/9/2016 | JPMorgan | 230,000 EUR | $258,414 | $(14,515) |
12/9/2016 | JPMorgan | 250,000 EUR | 355,721 AUD | $2,491 |
12/9/2016 | JPMorgan | 258,023 EUR | $291,054 | $(17,437) |
12/9/2016 | JPMorgan | 300,000 EUR | $326,627 | $(8,497) |
12/9/2016 | JPMorgan | 337,500 EUR | 3,275,564 SEK | $2,506 |
12/9/2016 | JPMorgan | 337,500 EUR | 3,313,975 SEK | $(1,662) |
12/9/2016 | JPMorgan | 360,000 EUR | 552,518 NZD | $(9,415) |
12/9/2016 | JPMorgan | 60,000 GBP | $73,876 | $1,221 |
12/9/2016 | JPMorgan | 140,000 GBP | $185,228 | $(10,002) |
Settlement Date | Counterparty | Foreign Currency Units to Receive/Deliver | In Exchange For | Unrealized Appreciation (Depreciation) |
12/9/2016 | JPMorgan | 125,000 NZD | 119,184 CAD | $(238) |
12/9/2016 | JPMorgan | 125,000 NZD | 116,719 CAD | $1,598 |
12/9/2016 | JPMorgan | 218,919 NZD | 208,077 CAD | $73 |
12/9/2016 | JPMorgan | 250,000 NZD | 240,549 CAD | $(2,098) |
12/9/2016 | JPMorgan | 265,000 NZD | 254,982 CAD | $(2,224) |
12/9/2016 | JPMorgan | 321,081 NZD | 307,311 CAD | $(1,480) |
12/9/2016 | JPMorgan | 350,000 NZD | 330,716 CAD | $1,569 |
12/9/2016 | JPMorgan | 540,000 NZD | 514,701 CAD | $(896) |
12/9/2016 | JPMorgan | 218,919 NZD | 209,591 CAD | $(1,055) |
12/9/2016 | JPMorgan | 540,000 NZD | $390,982 | $(8,674) |
12/9/2016 | JPMorgan | $200,000 | 21,316,512 JPY | $13,560 |
12/9/2016 | JPMorgan | $290,225 | 29,355,045 JPY | $33,478 |
12/9/2016 | JPMorgan | $300,000 | 32,104,113 JPY | $19,209 |
12/9/2016 | JPMorgan | $400,000 | 41,021,536 JPY | $41,215 |
12/9/2016 | JPMorgan | $490,000 | 51,179,083 JPY | $42,375 |
12/9/2016 | Morgan Stanley | 90,000 AUD | 573,057 NOK | $(869) |
12/9/2016 | Morgan Stanley | 300,000 AUD | $230,040 | $(8,559) |
12/19/2016 | JPMorgan | $200,000 | 22,474,884 JPY | $3,294 |
Contracts Sold: | ||||
12/9/2016 | Bank of America | 500,000 AUD | $382,420 | $13,285 |
12/9/2016 | Bank of America | 340,000 AUD | $260,246 | $9,235 |
12/9/2016 | Bank of America | $700,000 | 72,145,500 JPY | $(68,997) |
12/9/2016 | Bank of America | $370,000 | 38,107,780 JPY | $(36,700) |
12/9/2016 | Bank of America | $290,225 | 29,699,331 JPY | $(30,467) |
12/9/2016 | Bank of America | $90,000 | 9,209,880 JPY | $(9,448) |
12/9/2016 | Barclays | 90,000 AUD | 555,805 NOK | $(1,157) |
12/9/2016 | Barclays | 80,000 AUD | 493,612 NOK | $(1,080) |
12/9/2016 | Barclays | 230,000 EUR | $257,140 | $13,240 |
12/9/2016 | BNP Paribas | 350,000 EUR | 306,212 GBP | $12,107 |
12/9/2016 | BNP Paribas | 175,000 EUR | 149,671 GBP | $1,755 |
12/9/2016 | Citibank | 1,000,000 EUR | $1,099,649 | $39,215 |
12/9/2016 | Citibank | 370,000 EUR | 44,261,280 JPY | $(5,240) |
12/9/2016 | Citibank | 250,000 EUR | 360,746 AUD | $1,219 |
12/9/2016 | Citibank | 540,000 NZD | 515,846 CAD | $1,748 |
12/9/2016 | Credit Agricole | 170,000 AUD | 1,036,881 NOK | $(3,709) |
12/9/2016 | Credit Agricole | 90,000 AUD | 555,152 NOK | $(1,234) |
12/9/2016 | Goldman Sachs | 750,000 EUR | $829,575 | $34,250 |
12/9/2016 | Goldman Sachs | 250,000 NZD | 238,910 CAD | $878 |
12/9/2016 | JPMorgan | 675,000 EUR | 6,430,039 SEK | $(18,149) |
12/9/2016 | JPMorgan | 360,000 EUR | 548,900 NZD | $6,853 |
12/9/2016 | JPMorgan | 258,023 EUR | $282,169 | $8,552 |
12/9/2016 | JPMorgan | 230,000 EUR | $258,210 | $14,311 |
12/9/2016 | JPMorgan | 200,000 EUR | $219,115 | $7,029 |
12/9/2016 | JPMorgan | 200,000 GBP | $266,729 | $16,407 |
12/9/2016 | JPMorgan | 100,375 GBP | $134,026 | $8,396 |
12/9/2016 | JPMorgan | 540,000 NZD | 515,603 CAD | $1,567 |
12/9/2016 | JPMorgan | 540,000 NZD | $393,021 | $10,713 |
12/9/2016 | JPMorgan | 350,000 NZD | 328,995 CAD | $(2,850) |
12/9/2016 | JPMorgan | 265,000 NZD | 252,880 CAD | $659 |
12/9/2016 | JPMorgan | 250,000 NZD | 238,531 CAD | $596 |
12/9/2016 | JPMorgan | 218,919 NZD | 209,888 CAD | $1,275 |
Settlement Date | Counterparty | Foreign Currency Units to Receive/Deliver | In Exchange For | Unrealized Appreciation (Depreciation) |
12/9/2016 | JPMorgan | $400,000 | 41,582,776 JPY | $(36,306) |
12/9/2016 | JPMorgan | $400,000 | 41,485,144 JPY | $(37,160) |
12/9/2016 | JPMorgan | $370,000 | 38,880,954 JPY | $(29,937) |
12/9/2016 | JPMorgan | $300,000 | 32,776,650 JPY | $(13,327) |
12/9/2016 | JPMorgan | $300,000 | 32,906,247 JPY | $(12,194) |
12/9/2016 | JPMorgan | $218,182 | 22,547,882 JPY | $(20,972) |
12/9/2016 | JPMorgan | $204,906 | 21,870,462 JPY | $(13,622) |
12/9/2016 | JPMorgan | $181,818 | 18,652,500 JPY | $(18,679) |
12/9/2016 | JPMorgan | $145,094 | 15,445,471 JPY | $(10,004) |
12/9/2016 | Morgan Stanley | 700,000 AUD | $536,491 | $19,702 |
12/19/2016 | Bank of America | $200,000 | 22,199,800 JPY | $(5,702) |
12/19/2016 | Bank of America | $200,000 | 22,795,000 JPY | $(493) |
12/19/2016 | Bank of America | $150,000 | 17,112,600 JPY | $(226) |
12/19/2016 | JPMorgan | $200,000 | 22,564,862 JPY | $(2,507) |
2/28/2017 | Citibank | 423,760 EUR | $449,364 | $(1,823) |
2/28/2017 | Citibank | 178,142 EUR | $189,502 | $(170) |
2/28/2017 | Citibank | 336,690 GBP | $418,553 | $(3,671) |
2/28/2017 | JPMorgan | 101,700 AUD | $74,929 | $(9) |
2/28/2017 | JPMorgan | 43,800 CAD | $32,441 | $(201) |
NET UNREALIZED DEPRECIATION ON FOREIGN EXCHANGE CONTRACTS | $(31,817) |
1 | Denotes a restricted security that either: (a) cannot be offered for public sale without first being registered, or being able to take advantage of an exemption from registration, under the Securities Act of 1933; or (b) is subject to a contractual restriction on public sales. At November 30, 2016, these restricted securities amounted to $524,392, which represented 4.1% of total net assets. |
2 | Denotes a restricted security that may be resold without restriction to “qualified institutional buyers” as defined in Rule 144A under the Securities Act of 1933 and that the Fund has determined to be liquid under criteria established by the Fund's Board of Trustees (the “Trustees”). At November 30, 2016, these liquid restricted securities amounted to $524,392, which represented 4.1% of total net assets. |
3 | Affiliated holding. |
4 | The cost of investments for federal tax purposes amounts to $13,494,299. |
5 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Valuation Inputs | ||||
Level 1— Quoted Prices | Level 2— Other Significant Observable Inputs | Level 3— Significant Unobservable Inputs | Total | |
Debt Securities: | ||||
Bonds | $— | $6,695,241 | $— | $6,695,241 |
Purchased Put Options | — | 22,674 | — | 22,674 |
Repurchase Agreement | — | 404,000 | — | 404,000 |
Investment Company1 | — | — | — | 5,868,749 |
TOTAL SECURITIES | $— | $7,121,915 | $— | $12,990,664 |
Other Financial Instruments:2 | ||||
Assets | $— | $582,119 | $— | $582,119 |
Liabilities | — | (613,936) | — | (613,936) |
OTHER FINANCIAL INSTRUMENTS | $— | $(31,817) | $— | $(31,817) |
1 | As permitted by the U.S. generally accepted accounting principles, Investment Companies valued at $5,868,749 are measured at fair value using the net asset value (NAV) per share practical expedient and have not been categorized in the chart above but are included in the Total column. The amount included herein is intended to permit reconciliation of the fair value classifications to the amounts presented on the Statement of Assets and Liabilities. The price of shares redeemed in Emerging Markets Core Fund is the next determined NAV after receipt of a shareholder redemption request. |
2 | Other financial instruments include foreign exchange contracts. |
AUD | —Australian Dollar |
CAD | —Canadian Dollar |
EUR | —Euro |
GBP | —Great British Pound |
JPY | —Japanese Yen |
NOK | —Norwegian Krone |
NZD | —New Zealand Dollar |
SEK | —Swedish Krona |
Year Ended November 30 | 2016 | 2015 | 2014 | 2013 | 2012 |
Net Asset Value, Beginning of Period | $13.77 | $15.00 | $14.96 | $16.51 | $15.67 |
Income From Investment Operations: | |||||
Net investment income1 | 0.51 | 0.49 | 0.65 | 0.59 | 0.63 |
Net realized and unrealized gain (loss) on investments, futures contracts, written options and foreign currency transactions | 0.20 | (1.13) | (0.03) | (1.37) | 1.14 |
TOTAL FROM INVESTMENT OPERATIONS | 0.71 | (0.64) | 0.62 | (0.78) | 1.77 |
Less Distributions: | |||||
Distributions from net investment income | — | (0.54) | (0.58) | (0.62) | (0.85) |
Distributions from net realized gain on investments and foreign currency transactions | — | (0.05) | — | (0.15) | (0.08) |
TOTAL DISTRIBUTIONS | — | (0.59) | (0.58) | (0.77) | (0.93) |
Net Asset Value, End of Period | $14.48 | $13.77 | $15.00 | $14.96 | $16.51 |
Total Return2 | 5.16% | (4.31)% | 4.31% | (5.00)% | 11.95% |
Ratios to Average Net Assets: | |||||
Net expenses3 | 0.02% | 0.03% | 0.00% | 0.00% | 0.00% |
Net investment income | 3.50% | 3.49% | 4.32% | 3.93% | 4.04% |
Expense waiver/reimbursement4 | 1.80% | 2.01% | 2.24% | 3.21% | 6.55% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $12,911 | $11,488 | $13,500 | $6,936 | $6,570 |
Portfolio turnover | 33% | 85% | 46% | 19% | 20% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value. |
3 | See Note 5, Investment Adviser Fee and Other Transactions with Affiliates. |
4 | This expense decrease is reflected in both the net expense and net investment income ratios shown above. |
Assets: | ||
Total investment in securities, at value including $5,868,749 of investment in an affiliated holding (Note 5) (identified cost $13,626,216) | $12,990,664 | |
Unrealized appreciation on foreign exchange contracts | 582,119 | |
Income receivable | 41,036 | |
TOTAL ASSETS | 13,613,819 | |
Liabilities: | ||
Unrealized depreciation on foreign exchange contracts | $613,936 | |
Payable for shares redeemed | 347 | |
Payable for portfolio accounting fees | 42,451 | |
Payable for auditing fees | 28,300 | |
Accrued expenses (Note 5) | 17,674 | |
TOTAL LIABILITIES | 702,708 | |
Net assets for 891,865 shares outstanding | $12,911,111 | |
Net Assets Consists of: | ||
Paid-in capital | $13,297,595 | |
Net unrealized depreciation of investments and translation of assets and liabilities in foreign currency | (668,939) | |
Accumulated net realized loss on investments and foreign currency transactions | (243,912) | |
Undistributed net investment income | 526,367 | |
TOTAL NET ASSETS | $12,911,111 | |
Net Asset Value, Offering Price and Redemption Proceeds Per Share: | ||
$12,911,111 ÷ 891,865 shares outstanding, no par value, unlimited shares authorized | $14.48 |
Investment Income: | ||
Investment income allocated from affiliated partnership (Note 5) | $224,883 | |
Dividends (including $130,720 from affiliated holding (Note 5) | 161,164 | |
Interest | 57,106 | |
TOTAL INCOME | 443,153 | |
Expenses: | ||
Administrative fee (Note 5) | $9,834 | |
Custodian fees | 8,655 | |
Transfer agent fees | 3,145 | |
Directors'/Trustees' fees (Note 5) | 1,387 | |
Auditing fees | 29,350 | |
Legal fees | 9,498 | |
Portfolio accounting fees | 120,095 | |
Share registration costs | 24,070 | |
Printing and postage | 15,636 | |
Miscellaneous (Note 5) | 4,399 | |
EXPENSES BEFORE ALLOCATION | 226,069 | |
Expenses allocated from affiliated partnership (Note 2) | 2,458 | |
TOTAL EXPENSES | 228,527 | |
Waiver/reimbursement of other operating expenses (Notes 2 and 5) | (226,069) | |
Net expenses | 2,458 | |
Net investment income | 440,695 | |
Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions: | ||
Net realized gain on investments and foreign currency transactions | 383,640 | |
Net realized loss on investments and foreign currency transactions allocated from affiliated partnership | (138,704) | |
Net change in unrealized (depreciation) of investments and translation of assets and liabilities in foreign currency | (128,133) | |
Net realized and unrealized gain on investments and foreign currency transactions | 116,803 | |
Change in net assets resulting from operations | $557,498 |
Year Ended November 30 | 2016 | 2015 |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income | $440,695 | $383,245 |
Net realized gain (loss) on investments, including allocation from affiliated partnership and foreign currency transactions | 244,936 | (776,386) |
Net change in unrealized appreciation/depreciation of investments and translation of assets and liabilities in foreign currency | (128,133) | (160,377) |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 557,498 | (553,518) |
Distributions to Shareholders: | ||
Distributions from net investment income | — | (488,334) |
Distributions from net realized gain on investments | — | (48,445) |
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | — | (536,779) |
Share Transactions: | ||
Proceeds from sale of shares | 2,150,085 | 3,408,686 |
Net asset value of shares issued to shareholders in payment of distributions declared | — | 4,459 |
Cost of shares redeemed | (1,284,036) | (4,335,016) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | 866,049 | (921,871) |
Change in net assets | 1,423,547 | (2,012,168) |
Net Assets: | ||
Beginning of period | 11,487,564 | 13,499,732 |
End of period (including undistributed net investment income of $526,367 and $0, respectively) | $12,911,111 | $11,487,564 |
■ | Shares of other mutual funds or non-exchange-traded investment companies are valued based upon their reported NAVs. |
■ | Equity securities listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market. |
■ | Fixed-income securities are fair valued using price evaluations provided by a pricing service approved by 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. |
■ | 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. |
Fair Value of Derivative Instruments | ||||
Asset | Liability | |||
Statement of Assets and Liabilities Location | Fair Value | Statement of Assets and Liabilities Location | Fair Value | |
Derivatives not accounted for as hedging instruments under ASC Topic 815 | ||||
Purchased Options | Total investments in securities at value | $22,674 | $— | |
Foreign exchange contracts | Unrealized appreciation on foreign exchange contracts | $582,119 | Unrealized depreciation on foreign exchange contracts | $613,936 |
Total derivatives not accounted for as hedging instruments under ASC Topic 815 | $604,793 | $613,936 |
Amount of Realized Gain or (Loss) on Derivatives Recognized in Income | |||
Purchased Options1 | Foreign Exchange Contracts1 | Total | |
Equity Contracts | $(10,008) | $— | $(10,008) |
Foreign exchange contracts | (28,326) | 185,452 | 157,126 |
Total | $(38,334) | $185,452 | $147,118 |
Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income | |||
Purchased Options2 | Foreign Exchange Contracts2 | Total | |
Foreign exchange contracts | $17,704 | $(57,103) | $(39,399) |
1 | The net realized gain (loss) on Forward Exchange Contracts and Purchased Options is found within the net realized gain on investments and foreign currency transactions on the Statement of Operations. |
2 | The net change in unrealized appreciation/depreciation of Forward Exchange Contracts and Purchased Options is found within the Net Change in unrealized depreciation of investments and translation of assets and liabilities in foreign currency on the Statement of Operations. |
Gross Amounts Not Offset in the Statement of Assets and Liabilities | ||||
Transaction | Gross Asset Derivatives Presented in Statement of Assets and Liabilities | Financial Instruments | Collateral Received | Net Amount |
Foreign Exchange Contracts | $582,119 | $(518,306) | $— | $63,813 |
TOTAL | $582,119 | $(518,306) | $— | $63,813 |
Transaction | Gross Liability Derivatives Presented in Statement of Assets and Liabilities | Financial Instruments | Collateral Pledged | Net Amount |
Foreign Exchange Contracts | $613,936 | $(518,306) | $— | $95,630 |
TOTAL | $613,936 | $(518,306) | $— | $95,630 |
Year Ended November 30 | 2016 | 2015 |
Shares sold | 146,500 | 243,482 |
Shares issued to shareholders in payment of distributions declared | — | 317 |
Shares redeemed | (88,733) | (309,617) |
NET CHANGE RESULTING FROM FUND SHARE TRANSACTIONS | 57,767 | (65,818) |
Increase (Decrease) | ||
Undistributed Net Investment Income (Loss) | Accumulated Net Realized Gain (Loss) | |
$85,672 | $(85,672) |
2016 | 2015 | |
Ordinary income | $— | $488,334 |
Long-term capital gains | — | $ 48,445 |
Undistributed ordinary income | $ 526,367 |
Net unrealized depreciation | $(505,205) |
Capital loss carryforwards | $(407,646) |
Expiration Year | Short-Term | Long-Term | Total |
No Expiration | $407,646 | $— | $407,646 |
Administrative Fee | Average Daily Net Assets of the Investment Complex |
0.150% | on the first $5 billion |
0.125% | on the next $5 billion |
0.100% | on the next $10 billion |
0.075% | on assets in excess of $20 billion |
Emerging Markets Fixed Income Core Fund | Emerging Markets Core Fund | |
Balance of Shares Held 11/30/2015 | 191,298 | — |
Purchases/Additions | 6,406 | 777,313 |
Sales/Reductions | (197,704) | (183,911) |
Balance of Shares Held 11/30/2016 | — | 593,402 |
Value | $— | $5,868,749 |
Allocated Investment Income | $224,883 | $130,720 |
Purchases | $4,898,896 |
Sales | $3,994,035 |
January 25, 2017
Beginning Account Value 6/1/2016 | Ending Account Value 11/30/2016 | Expenses Paid During Period1 | |
Actual | $1,000 | $986.40 | $0.00 |
Hypothetical (assuming a 5% return before expenses) | $1,000 | $1,025.00 | $0.00 |
1 | Expenses are equal to the Fund's annualized net expense ratio of 0.00%, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half-year period). Federated Investment Management Company, the Adviser, has contractually agreed to reimburse all operating expenses excluding extraordinary expenses and expenses allocated from affiliated holdings, incurred by the Fund. This agreement has no fixed term. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s) |
J. Christopher Donahue* Birth Date: April 11, 1949 President and Trustee Indefinite Term Began serving: October 2005 | Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Fund Family; Director or Trustee of the Funds in the Federated Fund Family; President, Chief Executive Officer and Director, Federated Investors, Inc.; Chairman and Trustee, Federated Investment Management Company; Trustee, Federated Investment Counseling; Chairman and Director, Federated Global Investment Management Corp.; Chairman, Federated Equity Management Company of Pennsylvania and Passport Research, Ltd. (investment advisory subsidiary of Federated); Trustee, Federated Shareholder Services Company; Director, Federated Services Company. Previous Positions: President, Federated Investment Counseling; President and Chief Executive Officer, Federated Investment Management Company, Federated Global Investment Management Corp. and Passport Research, Ltd. |
John B. Fisher* Birth Date: May 16, 1956 Trustee Indefinite Term Began serving: May 2016 | Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Fund Family; Director or Trustee of certain of the Funds in the Federated Fund Family; Vice President, Federated Investors, Inc.; President, Director/Trustee and CEO, Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company; President and CEO of Passport Research, Ltd.; President of some of the Funds in the Federated Fund Complex and Director, Federated Investors Trust Company. Previous Positions: President and Director of the Institutional Sales Division of Federated Securities Corp.; President and Director of Federated Investment Counseling; Director, Edgewood Securities Corp.; Director, Federated Services Company; Director, Federated Investors, Inc.; Chairman and Director, Southpointe Distribution Services, Inc. and President, Technology, Federated Services Company. |
* | Reasons for “interested” status: J. Christopher Donahue and John B. Fisher are interested due to their beneficial ownership of shares of Federated Investors, Inc. and due to positions they hold with Federated and its subsidiaries. J. Christopher Donahue is the son of John F. Donahue, Chairman Emeritus of the Federated Funds. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
John T. Collins Birth Date: January 24, 1947 Trustee Indefinite Term Began serving: October 2013 | Principal Occupations: Director or Trustee of the Federated Fund Family; formerly, Chairman and CEO, The Collins Group, Inc. (a private equity firm) (Retired). Other Directorships Held: Director, Current Chair of the Compensation Committee, KLX Corp. Qualifications: Mr. Collins has served in several business and financial management roles and directorship positions throughout his career. Mr. Collins previously served as Chairman and CEO, The Collins Group, Inc. (a private equity firm). Mr. Collins serves as Chairman Emeriti, Bentley University. Mr. Collins previously served as Director and Audit Committee Member, Bank of America Corp.; Director, FleetBoston Financial Corp.; and Director, Beth Israel Deaconess Medical Center (Harvard University Affiliate Hospital). |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
G. Thomas Hough Birth Date: February 28, 1955 Trustee Indefinite Term Began serving: August 2015 | Principal Occupations: Director or Trustee of the Federated Fund Family; formerly, Vice Chair, Ernst & Young LLP (public accounting firm) (Retired). Other Directorships Held: Director, Chair of the Audit Committee, Governance Committee, Publix Super Markets, Inc.; Director, Member of the Audit Committee and Technology Committee of Equifax, Inc. Qualifications: Mr. Hough has served in accounting, business management and directorship positions throughout his career. Mr. Hough most recently held the position of Americas Vice Chair of Assurance with Ernst & Young LLP (public accounting firm). Mr. Hough is an Executive Committee member of the United States Golf Association, he serves on the President's Cabinet and Business School Board of Visitors for the University of Alabama and is on the Business School Board of Visitors for Wake Forest University. |
Maureen Lally-Green Birth Date: July 5, 1949 Trustee Indefinite Term Began serving: August 2009 | Principal Occupations: Director or Trustee of the Federated Fund Family; Interim Dean of the Duquesne University School of Law; Adjunct Professor of Law, Duquesne University School of Law; formerly, Associate General Secretary and Director, Office of Church Relations, Diocese of Pittsburgh. Other Directorships Held: Director, CONSOL Energy Inc. Qualifications: Judge Lally-Green has served in various legal and business roles and directorship positions throughout her career. Judge Lally-Green previously served as: Associate General Secretary, Diocese of Pittsburgh; a member of the Superior Court of Pennsylvania; and as a Professor of Law, Duquesne University School of Law. Judge Lally-Green also currently holds the positions on either a public or not for profit Board of Directors as follows: Director and Chair, UPMC Mercy Hospital; Regent, St. Vincent Seminary; Director and Vice Chair, Our Campaign for the Church Alive!, Inc.; Director, Saint Vincent College; Member, Pennsylvania State Board of Education (public); and Director and Chair, Cardinal Wuerl North Catholic High School, Inc. Judge Lally-Green has held the positions of: Director, Auberle; Director, Epilepsy Foundation of Western and Central Pennsylvania; Director, Ireland Institute of Pittsburgh; Director, Saint Thomas More Society; Director, Catholic High Schools of the Diocese of Pittsburgh, Inc.; and Director, Pennsylvania Bar Institute. |
Peter E. Madden Birth Date: March 16, 1942 Trustee Indefinite Term Began serving: November 2005 | Principal Occupation: Director or Trustee, and Chair of the Board of Directors or Trustees, of the Federated Fund Family; Retired. Other Directorships Held: None. Qualifications: Mr. Madden has served in several business management, mutual fund services and directorship positions throughout his career. Mr. Madden previously served as President, Chief Operating Officer and Director, State Street Bank and Trust Company (custodian bank) and State Street Corporation (financial services). He was Director, VISA USA and VISA International and Chairman and Director, Massachusetts Bankers Association. Mr. Madden served as Director, Depository Trust Corporation and Director, The Boston Stock Exchange. Mr. Madden also served as a Representative to the Commonwealth of Massachusetts General Court. |
Charles F. Mansfield, Jr. Birth Date: April 10, 1945 Trustee Indefinite Term Began serving: November 2005 | Principal Occupations: Director or Trustee of the Federated Fund Family; Management Consultant. Other Directorships Held: None. Qualifications: Mr. Mansfield has served as a Marine Corps officer and in several banking, business management, educational roles and directorship positions throughout his long career. He remains active as a Management Consultant. |
Thomas M. O'Neill Birth Date: June 14, 1951 Trustee Indefinite Term Began serving: October 2006 | Principal Occupations: Director or Trustee, Chair of the Audit Committee of the Federated Fund Family; Sole Proprietor, Navigator Management Company (investment and strategic consulting). Other Directorships Held: None. Qualifications: Mr. O'Neill has served in several business, mutual fund and financial management roles and directorship positions throughout his career. Mr. O'Neill serves as Director, Medicines for Humanity and Director, The Golisano Children's Museum of Naples, Florida. Mr. O'Neill previously served as Chief Executive Officer and President, Managing Director and Chief Investment Officer, Fleet Investment Advisors; President and Chief Executive Officer, Aeltus Investment Management, Inc.; General Partner, Hellman, Jordan Management Co., Boston, MA; Chief Investment Officer, The Putnam Companies, Boston, MA; Credit Analyst and Lending Officer, Fleet Bank; Director and Consultant, EZE Castle Software (investment order management software); and Director, Midway Pacific (lumber). |
P. Jerome Richey Birth Date: February 23, 1949 Trustee Indefinite Term Began serving: October 2013 | Principal Occupations: Director or Trustee of the Federated Fund Family; Management Consultant; formerly, Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh and Executive Vice President and Chief Legal Officer, CONSOL Energy Inc. Other Directorships Held: None. Qualifications: Mr. Richey has served in several business and legal management roles and directorship positions throughout his career. Mr. Richey most recently held the positions of Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh. Mr. Richey previously served as Chairman of the Board, Epilepsy Foundation of Western Pennsylvania and Chairman of the Board, World Affairs Council of Pittsburgh. Mr. Richey previously served as Chief Legal Officer and Executive Vice President, CONSOL Energy Inc.; and Board Member, Ethics Counsel and Shareholder, Buchanan Ingersoll & Rooney PC (a law firm). |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
John S. Walsh Birth Date: November 28, 1957 Trustee Indefinite Term Began serving: November 2005 | Principal Occupations: Director or Trustee of the Federated Fund Family; President and Director, Heat Wagon, Inc. (manufacturer of construction temporary heaters); President and Director, Manufacturers Products, Inc. (distributor of portable construction heaters); President, Portable Heater Parts, a division of Manufacturers Products, Inc. Other Directorships Held: None. Qualifications: Mr. Walsh has served in several business management roles and directorship positions throughout his career. Mr. Walsh previously served as Vice President, Walsh & Kelly, Inc. (paving contractors). |
Name Birth Date Address Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
John W. McGonigle Birth Date: October 26, 1938 EXECUTIVE VICE PRESIDENT AND SECRETARY Officer since: October 2005 | Principal Occupations: Executive Vice President and Secretary of the Federated Fund Family; Vice Chairman, Executive Vice President, Secretary and Director, Federated Investors, Inc. Previous Positions: Trustee, Federated Investment Management Company and Federated Investment Counseling; Director, Federated Global Investment Management Corp., Federated Services Company and Federated Securities Corp. |
Lori A. Hensler Birth Date: January 6, 1967 TREASURER Officer since: April 2013 | Principal Occupations: Principal Financial Officer and Treasurer of the Federated Fund Family; Senior Vice President, Federated Administrative Services; Financial and Operations Principal for Federated Securities Corp. and Edgewood Services, Inc.; and Assistant Treasurer, Federated Investors Trust Company. Ms. Hensler has received the Certified Public Accountant designation. Previous Positions: Controller of Federated Investors, Inc.; Senior Vice President and Assistant Treasurer, Federated Investors Management Company; Treasurer, Federated Investors Trust Company; Assistant Treasurer, Federated Administrative Services, Federated Administrative Services, Inc., Federated Securities Corp., Edgewood Services, Inc., Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company, Passport Research, Ltd., and Federated MDTA, LLC; Financial and Operations Principal for Federated Securities Corp., Edgewood Services, Inc. and Southpointe Distribution Services, Inc. |
Peter J. Germain Birth Date: September 3, 1959 CHIEF LEGAL OFFICER Officer since: January 2005 | Principal Occupations: Mr. Germain is Chief Legal Officer of the Federated Fund Family. He is General Counsel and Vice President, Federated Investors, Inc.; President, Federated Administrative Services and Federated Administrative Services, Inc.; Vice President, Federated Securities Corp.; Secretary, Federated Private Asset Management, Inc.; and Secretary, Retirement Plan Service Company of America. Mr. Germain joined Federated in 1984 and is a member of the Pennsylvania Bar Association. Previous Positions: Deputy General Counsel, Special Counsel, Managing Director of Mutual Fund Services, Federated Investors, Inc.; Senior Vice President, Federated Services Company; and Senior Corporate Counsel, Federated Investors, Inc. |
Richard B. Fisher Birth Date: May 17, 1923 VICE PRESIDENT Officer since: October 2005 | Principal Occupations: Vice Chairman or Vice President of some of the Funds in the Federated Fund Family; Vice Chairman, Federated Investors, Inc.; Chairman, Federated Securities Corp. Previous Positions: President and Director or Trustee of some of the Funds in the Federated Fund Family; Executive Vice President, Federated Investors, Inc.; Director and Chief Executive Officer, Federated Securities Corp. |
Stephen Van Meter Birth Date: June 5, 1975 CHIEF COMPLIANCE OFFICER AND SENIOR VICE PRESIDENT Officer since: July 2015 | Principal Occupations: Senior Vice President and Chief Compliance Officer of the Federated Fund Family; Vice President and Chief Compliance Officer of Federated Investors, Inc. and Chief Compliance Officer of certain of its subsidiaries. Mr. Van Meter joined Federated in October 2011. He holds FINRA licenses under Series 3, 7, 24 and 66. Previous Positions: Mr. Van Meter previously held the position of Compliance Operating Officer, Federated Investors, Inc. Prior to joining Federated, Mr. Van Meter served at the United States Securities and Exchange Commission in the positions of Senior Counsel, Office of Chief Counsel, Division of Investment Management and Senior Counsel, Division of Enforcement. |
Robert J. Ostrowski Birth Date: April 26, 1963 Chief Investment Officer Officer since: September 2006 | Principal Occupations: Robert J. Ostrowski joined Federated in 1987 as an Investment Analyst and became a Portfolio Manager in 1990. He was named Chief Investment Officer of Federated's taxable fixed-income products in 2004 and also serves as a Senior Portfolio Manager. Mr. Ostrowski became an Executive Vice President of the Fund's Adviser in 2009 and served as a Senior Vice President of the Fund's Adviser from 1997 to 2009. Mr. Ostrowski has received the Chartered Financial Analyst designation. He received his M.S. in Industrial Administration from Carnegie Mellon University. |
Federated Investors Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
2017 ©Federated Investors, Inc.
Ticker | FMVPX |
1 | Please see the footnotes to the line graphs under “Fund Performance and Growth of a $10,000 Investment” below for the definition of, and more information about, the S& P 500. |
2 | Volatility is a statistical measurement of the frequency and level of changes in the value of an asset, index or instrument without regard to the direction of those changes. Volatility may result from rapid and dramatic price swings. 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. |
3 | Bond prices are sensitive to changes in interest rates, and a rise in interest rates can cause a decline in their prices. |
4 | Duration is a measure of a security's price sensitivity to changes in interest rates. Securities with longer durations are more sensitive to changes in interest rates than securities of shorter durations. |
5 | The Russell 1000® Value measures the performance of the large-cap value segment of the U.S. equity universe.* |
6 | The Russell 1000® Growth Index measures the performance of the large-cap growth segment of the U.S. equity universe.* |
7 | The CBOE Volatility Index (VIX) is a key measure of market expectations of near-term volatility conveyed by S&P 500 stock index option prices.* |
8 | The Fund's use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional instruments. |
* | The index is unmanaged, and it is not possible to invest directly in an index. |
Federated Managed Volatility Strategy Portfolio | NA | S&P 500 | |
F | NA | I | |
12/16/2014 | 10,000 | 10,000 | |
12/31/2014 | 10,412 | 10,444 | |
3/31/2015 | 10,414 | 10,544 | |
6/30/2015 | 10,205 | 10,573 | |
9/30/2015 | 9,030 | 9,892 | |
12/31/2015 | 8,987 | 10,589 | |
3/31/2016 | 8,903 | 10,732 | |
6/30/2016 | 9,018 | 10,995 | |
9/30/2016 | 9,162 | 11,419 | |
11/30/2016 | 9,250 | 11,626 |
1 Year | Start of Performance* | |
Fund | 0.08% | -3.90% |
S&P 500 | 8.06% | 8.00% |
1 | The Fund's performance assumes the reinvestment of all dividends and distributions. The S&P 500 has been adjusted to reflect reinvestment of dividends on securities in the index. |
2 | The S&P 500 is an unmanaged, capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. The index is not adjusted to reflect sales loads, expenses or other fees that the Securities and Exchange Commission requires to be reflected in the Fund's performance. The index is unmanaged and, unlike the Fund, is not affected by cash flows. It is not possible to invest directly in an index. |
Security Type | Percentage of Total Net Assets |
Domestic Fixed-Income Securities | 33.2% |
International Fixed-Income Securities | 26.9% |
Foreign Governments/Agencies | 11.6% |
Exchange-Traded Fund | 1.8% |
Derivative Contracts2 | 2.2% |
Other Security Type3 | 0.9% |
Cash Equivalents4 | 22.0% |
Other Assets and Liabilities—Net5 | 1.4% |
TOTAL | 100.0% |
1 | See the Fund's Prospectus for a description of the principal types of securities in which the Fund invests. As of the date specified above, the Fund owned shares of one or more affiliated investment companies. For purposes of this table, the affiliated investment company (other than an affiliated money market mutual fund) is not treated as a single portfolio security, but rather the Fund is treated as owning a pro rata portion of each security and each other asset and liability owned by the affiliated investment company. Accordingly, the percentages of total net assets shown in the table will differ from those presented on the Portfolio of Investments. |
2 | Based upon net unrealized appreciation (depreciation) or value of the derivative contracts as applicable. Derivative contracts may consist of futures, forwards, options and swaps. The impact of a derivative contract on the Fund's performance may be larger than its unrealized appreciation (depreciation) or value may indicate. In many cases, the notional value or amount of a derivative contract may provide a better indication of the contract's significance to the portfolio. More complete information regarding the Fund's direct investments in derivative contracts, including unrealized appreciation (depreciation), value, and notional values or amounts of such contracts, can be found in the table at the end of the Portfolio of Investments included in this Report. |
3 | Other Security Type consists of purchased options. |
4 | Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements. |
5 | Assets, other than investments in securities and derivative contracts, less liabilities. See Statement of Assets and Liabilities. |
Shares or Contracts | Value | ||
EXCHANGE-TRADED FUND—1.8% | |||
309 | iShares iBoxx $ Investment Grade Corporate Bond Fund (IDENTIFIED COST $37,889) | $36,104 | |
PURCHASED CALL OPTION—0.4% | |||
138 | CBOE SPX Volatility Index Strike Price: $18.00; Expiration Date: 12/21/2016 (IDENTIFIED COST $12,189) | 7,935 | |
PURCHASED PUT OPTIONS—0.4% | |||
14 | SPDR S&P 500 ETF Trust Strike Price: $205.00; Expiration Date: 12/16/2016 | 294 | |
13 | SPDR S&P 500 ETF Trust Strike Price: $215.00; Expiration Date: 1/17/2016 | 3,100 | |
11 | SPDR S&P 500 ETF Trust Strike Price: $215.00; Expiration Date: 3/17/2016 | 5,621 | |
TOTAL PURCHASED PUT OPTIONS (IDENTIFIED COST $15,163) | 9,015 | ||
INVESTMENT COMPANIES—94.9%1 | |||
72,065 | Emerging Markets Core Fund | 712,725 | |
417,299 | Federated Institutional Prime Value Obligations Fund, Institutional Shares, 0.56%2 | 417,341 | |
123,252 | High Yield Bond Portfolio | 769,092 | |
TOTAL INVESTMENT COMPANIES (IDENTIFIED COST $1,867,391) | 1,899,158 | ||
TOTAL INVESTMENTS—97.5% (IDENTIFIED COST $ 1,932,632)3 | 1,952,212 | ||
OTHER ASSETS AND LIABILITIES - NET—2.5%4 | 50,208 | ||
TOTAL NET ASSETS—100% | $2,002,420 |
Description | Number of Contracts | Notional Value | Expiration Date | Unrealized Appreciation |
5S&P 500 E-Mini Index Long Futures | 24 | $2,638,560 | December 2016 | $50,903 |
Security | Expiration Date | Exercise Price | Contracts | Value |
5CBOE SPX Volatility Index (Call Option) | December 2016 | $21.00 | 138 | $(4,485) |
5SPDR S&P 500 ETF Trust (Put-Option) | January 2017 | $205.00 | 13 | $(1,196) |
5SPDR S&P 500 ETF Trust (Put-Option) | March 2017 | $200.00 | 11 | $(2,431) |
5SPDR S&P 500 ETF Trust (Put-Option) | December 2016 | $195.00 | 14 | $(105) |
(Premiums Received $15,305) | $(8,217) |
1 | Affiliated holdings. |
2 | 7-day net yield. |
3 | The cost of investments for federal tax purposes amounts to $1,974,837. |
4 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
5 | Non-income-producing security. |
ETF | —Exchange-Traded Fund |
SPDR | —Standard & Poor's Depositary Receipt |
Year Ended 11/30/2016 | Period Ended 11/30/20151 | |
Net Asset Value, Beginning of Period | $8.80 | $10.00 |
Income From Investment Operations: | ||
Net investment income | 0.39 | 0.51 |
Net realized and unrealized gain (loss) on investments, futures contracts and written options | (0.39) | (1.23) |
TOTAL FROM INVESTMENT OPERATIONS | — | (0.72) |
Less Distributions: | ||
Distributions from net investment income | (0.39) | (0.48) |
Net Asset Value, End of Period | $8.41 | $8.80 |
Total Return2 | 0.08% | (7.58)% |
Ratios to Average Net Assets: | ||
Net expenses3 | 0.01%4 | 0.00%5 |
Net investment income | 4.61% | 5.40%5 |
Expense waiver/reimbursement6 | 12.97% | 13.17%5 |
Supplemental Data: | ||
Net assets, end of period (000 omitted) | $2,002 | $1,975 |
Portfolio turnover | 7% | 74% |
1 | Reflects operations for the period from December 16, 2014 (date of initial investment) to November 30, 2015. |
2 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
3 | The Co-Advisers have contractually agreed to reimburse all operating expenses, excluding extraordinary expenses, incurred by the Fund. |
4 | Acquired Fund Fees and Expenses, including expenses allocated from affiliated partnerships, are not direct obligations of the Fund and are not contractual reimbursements. |
5 | Computed on an annualized basis. |
6 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. |
Assets: | ||
Total investment in securities, at value including $1,899,158 of investment in affiliated holdings (Note 5) (identified cost $1,932,632) | $1,952,212 | |
Cash | 3,600 | |
Restricted cash (Note 2) | 114,000 | |
Income receivable | 153 | |
TOTAL ASSETS | 2,069,965 | |
Liabilities: | ||
Written options outstanding, at value (premiums received $15,305) | $8,217 | |
Payable for daily variation margin on futures contracts | 5,999 | |
Payable to adviser (Note 5) | 1,091 | |
Payable for administrative fees (Note 5) | 346 | |
Payable for auditing fees | 26,360 | |
Payable for legal fees | 4,061 | |
Payable for portfolio accounting fees | 14,437 | |
Payable for share registration costs | 3,247 | |
Payable for insurance premiums | 3,468 | |
Accrued expenses (Note 5) | 319 | |
TOTAL LIABILITIES | 67,545 | |
Net assets for 238,060 shares outstanding | $2,002,420 | |
Net Assets Consist of: | ||
Paid-in capital | $2,338,746 | |
Net unrealized appreciation of investments, futures contracts and written options | 77,571 | |
Accumulated net realized loss on investments, futures contracts and written options | (416,013) | |
Undistributed net investment income | 2,116 | |
TOTAL NET ASSETS | $2,002,420 | |
Net Asset Value, Offering Price and Redemption Proceeds Per Share: | ||
$2,002,420 ÷ 238,060 shares outstanding, no par value, unlimited shares authorized | $8.41 |
Investment Income: | ||
Dividends (including $66,848 received from affiliated holdings (Note 5)) | $68,223 | |
Investment income allocated from affiliated partnership (Note 5) | 21,721 | |
TOTAL INCOME | 89,944 | |
Expenses: | ||
Administrative fee (Note 5) | $126,523 | |
Custodian fees | 4,523 | |
Transfer agent fee | 1,796 | |
Directors'/Trustees' fees (Note 5) | 1,106 | |
Auditing fees | 26,360 | |
Legal fees | 12,414 | |
Portfolio accounting fees | 43,548 | |
Share registration costs | 16,393 | |
Printing and postage | 15,976 | |
Miscellaneous (Note 5) | 3,789 | |
EXPENSES BEFORE ALLOCATION | 252,428 | |
Expenses allocated from affiliated partnership (Note 2) | 264 | |
TOTAL EXPENSES | 252,692 | |
Reimbursement of other operating expenses (Notes 2 and 5) | (252,505) | |
Net expenses | 187 | |
Net investment income | 89,757 | |
Realized and Unrealized Gain (Loss) on Investments, Futures Contracts and Written Options: | ||
Net realized loss on investments (including realized gain of $1,513 on sales of investments in an affiliated company (Note 5)) | (93,832) | |
Net realized loss on futures contracts | (93,563) | |
Net realized gain on written options | 34,173 | |
Net realized loss on investments and foreign currency transactions allocated from affiliated partnership (Notes 2 and 5) | (13,339) | |
Net change in unrealized depreciation of investments | 36,266 | |
Net change in unrealized appreciation of futures contracts | 35,755 | |
Net change in unrealized depreciation of written options | 7,088 | |
Net realized and unrealized loss on investments, futures contracts and written options | (87,452) | |
Change in net assets resulting from operations | $2,305 |
Year Ended 11/30/2016 | Period Ended 11/30/20151 | |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income | $89,757 | $106,682 |
Net realized loss on investments, including allocation from affiliated partnership, futures contracts, written options and foreign currency transactions | (166,561) | (252,979) |
Net change in unrealized appreciation/depreciation of investments, futures contracts and written options | 79,109 | (1,538) |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 2,305 | (147,835) |
Distributions to Shareholders: | ||
Distributions from net investment income | (89,798) | (100,998) |
Share Transactions: | ||
Proceeds from sale of shares | 115,032 | 2,406,520 |
Cost of shares redeemed | (85) | (182,721) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | 114,947 | 2,223,799 |
Change in net assets | 27,454 | 1,974,966 |
Net Assets: | ||
Beginning of period | 1,974,966 | — |
End of period (including undistributed (distributions in excess of) net investment income of $2,116 and $(221), respectively) | $2,002,420 | $1,974,966 |
1 | Reflects operations for the period from December 16, 2014 (date of initial public investment) to November 30, 2015. |
■ | Shares of other mutual funds or non-exchange-traded investment companies are valued based upon their reported NAVs. |
■ | Equity securities listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market. |
■ | Fixed-income securities are fair valued using price evaluations provided by a pricing service approved by 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. |
■ | 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. |
Contracts | Number of Contracts | Premium |
Outstanding at 11/30/2015 | — | $— |
Contracts written | 803 | 80,749 |
Contracts exercised | — | — |
Contracts expired | (55) | (10,997) |
Contracts bought back | (572) | (54,447) |
Outstanding at 11/30/2016 | 176 | $15,305 |
Fair Value of Derivative Instruments | ||||
Asset | Liability | |||
Statement of Assets and Liabilities Location | Fair Value | Statement of Assets and Liabilities Location | Fair Value | |
Derivatives not accounted for as hedging instruments under ASC Topic 815 | ||||
Equity contracts | Total investments in securities, at value-options | $16,950 | Payable for daily variation margin on futures contracts | $(50,903)* |
Written options outstanding | 8,217 | |||
Total derivatives not accounted for as hedging instruments under ASC Topic 815 | $16,950 | $(42,686) |
* | Includes cumulative appreciation of futures contracts as reported in the footnotes to the Portfolio of Investments. Only the current day's variation margin is reported within the Statement of Assets and Liabilities. |
Amount of Realized Gain or (Loss) on Derivatives Recognized in Income | ||||
Futures Contracts | Purchased Options1 | Written Option Contracts | Total | |
Equity contracts | $(93,563) | $(82,209) | $34,173 | $(141,599) |
Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income | ||||
Futures Contracts | Purchased Options2 | Written Option Contracts | Total | |
Equity contracts | $35,755 | $(17,002) | $7,088 | $25,841 |
1 | The net realized gain (loss) on Purchased Options is found within the net realized loss on investments on the Statement of Operations. |
2 | The net change in unrealized appreciation/depreciation of Purchased Options is found within the Net Change in unrealized depreciation of investments on the Statement of Operations. |
Year Ended 11/30/2016 | Period Ended 11/30/20151 | |
Share sold | 13,554 | 243,098 |
Shares redeemed | (10) | (18,582) |
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | 13,544 | 224,516 |
1 | Reflects operations for the period from December 16, 2014 (date of initial investment) to November 30, 2015. |
Increase (Decrease) | |
Undistributed Net Investment Income (Loss) | Accumulated Net Realized Gain (Loss) |
$2,378 | $(2,378) |
2016 | 2015 | |
Ordinary income | $89,798 | $100,998 |
Undistributed ordinary income | $2,116 |
Net unrealized depreciation | $(14,068) |
Capital loss carryforwards | $(324,374) |
Short-Term | Long-Term | Total |
$183,083 | $141,291 | $324,374 |
Administrative Fee | Average Daily Net Assets of the Investment Complex |
0.150% | on the first $5 billion |
0.125% | on the next $5 billion |
0.100% | on the next $10 billion |
0.075% | on assets in excess of $20 billion |
Emerging Markets Fixed Income Core Fund | Emerging Markets Core Fund | Federated Institutional Prime Value Obligations Fund, Institutional Shares | High Yield Bond Portfolio | Total of Affiliated Transactions | |
Balance of Shares Held 11/30/2015 | 20,449 | — | 555,002 | 115,387 | 690,838 |
Purchases/Additions | — | 75,812 | 953,188 | 7,865 | 1,036,509 |
Sales/Reductions | (20,449) | (3,747) | (1,090,891) | (—) | (1,115,087) |
Balance of Shares Held 11/30/2016 | — | 72,065 | 417,299 | 123,252 | 612,260 |
Value | $— | $712,725 | $417,341 | $769,092 | $1,895,632 |
Dividend Income/Allocated Investment Income | $21,721 | $17,315 | $1,780 | $47,753 | $88,569 |
Realized Gain Distribution/Allocated Net Realized Gain (Loss) | $(13,339) | $— | $— | $— | $(13,339) |
Purchases | $106,845 |
Sales | $95,782 |
January 25, 2017
Beginning Account Value 6/1/2016 | Ending Account Value 11/30/2016 | Expenses Paid During Period1 | |
Actual | $1,000 | $1,017.30 | $0.00 |
Hypothetical (assuming a 5% return before expenses) | $1,000 | $1,025.00 | $0.00 |
1 | Expenses are equal to the Fund's annualized net expense ratio of 0.00%, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half-year period). The Co-Advisers have contractually agreed to reimburse all operating expenses, excluding extraordinary expenses, incurred by the Fund. This agreement has no fixed term. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s) |
J. Christopher Donahue* Birth Date: April 11, 1949 President and Trustee Indefinite Term Began serving: October 2005 | Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Fund Family; Director or Trustee of the Funds in the Federated Fund Family; President, Chief Executive Officer and Director, Federated Investors, Inc.; Chairman and Trustee, Federated Investment Management Company; Trustee, Federated Investment Counseling; Chairman and Director, Federated Global Investment Management Corp.; Chairman, Federated Equity Management Company of Pennsylvania and Passport Research, Ltd. (investment advisory subsidiary of Federated); Trustee, Federated Shareholder Services Company; Director, Federated Services Company. Previous Positions: President, Federated Investment Counseling; President and Chief Executive Officer, Federated Investment Management Company, Federated Global Investment Management Corp. and Passport Research, Ltd. |
John B. Fisher* Birth Date: May 16, 1956 Trustee Indefinite Term Began serving: May 2016 | Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Fund Family; Director or Trustee of certain of the Funds in the Federated Fund Family; Vice President, Federated Investors, Inc.; President, Director/Trustee and CEO, Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company; President and CEO of Passport Research, Ltd.; President of some of the Funds in the Federated Fund Complex and Director, Federated Investors Trust Company. Previous Positions: President and Director of the Institutional Sales Division of Federated Securities Corp.; President and Director of Federated Investment Counseling; Director, Edgewood Securities Corp.; Director, Federated Services Company; Director, Federated Investors, Inc.; Chairman and Director, Southpointe Distribution Services, Inc. and President, Technology, Federated Services Company. |
* | Reasons for “interested” status: J. Christopher Donahue and John B. Fisher are interested due to their beneficial ownership of shares of Federated Investors, Inc. and due to positions they hold with Federated and its subsidiaries. J. Christopher Donahue is the son of John F. Donahue, Chairman Emeritus of the Federated Funds. |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
John T. Collins Birth Date: January 24, 1947 Trustee Indefinite Term Began serving: October 2013 | Principal Occupations: Director or Trustee of the Federated Fund Family; formerly, Chairman and CEO, The Collins Group, Inc. (a private equity firm) (Retired). Other Directorships Held: Director, Current Chair of the Compensation Committee, KLX Corp. Qualifications: Mr. Collins has served in several business and financial management roles and directorship positions throughout his career. Mr. Collins previously served as Chairman and CEO, The Collins Group, Inc. (a private equity firm). Mr. Collins serves as Chairman Emeriti, Bentley University. Mr. Collins previously served as Director and Audit Committee Member, Bank of America Corp.; Director, FleetBoston Financial Corp.; and Director, Beth Israel Deaconess Medical Center (Harvard University Affiliate Hospital). |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
G. Thomas Hough Birth Date: February 28, 1955 Trustee Indefinite Term Began serving: August 2015 | Principal Occupations: Director or Trustee of the Federated Fund Family; formerly, Vice Chair, Ernst & Young LLP (public accounting firm) (Retired). Other Directorships Held: Director, Chair of the Audit Committee, Governance Committee, Publix Super Markets, Inc.; Director, Member of the Audit Committee and Technology Committee of Equifax, Inc. Qualifications: Mr. Hough has served in accounting, business management and directorship positions throughout his career. Mr. Hough most recently held the position of Americas Vice Chair of Assurance with Ernst & Young LLP (public accounting firm). Mr. Hough is an Executive Committee member of the United States Golf Association, he serves on the President's Cabinet and Business School Board of Visitors for the University of Alabama and is on the Business School Board of Visitors for Wake Forest University. |
Maureen Lally-Green Birth Date: July 5, 1949 Trustee Indefinite Term Began serving: August 2009 | Principal Occupations: Director or Trustee of the Federated Fund Family; Interim Dean of the Duquesne University School of Law; Adjunct Professor of Law, Duquesne University School of Law; formerly, Associate General Secretary and Director, Office of Church Relations, Diocese of Pittsburgh. Other Directorships Held: Director, CONSOL Energy Inc. Qualifications: Judge Lally-Green has served in various legal and business roles and directorship positions throughout her career. Judge Lally-Green previously served as: Associate General Secretary, Diocese of Pittsburgh; a member of the Superior Court of Pennsylvania; and as a Professor of Law, Duquesne University School of Law. Judge Lally-Green also currently holds the positions on either a public or not for profit Board of Directors as follows: Director and Chair, UPMC Mercy Hospital; Regent, St. Vincent Seminary; Director and Vice Chair, Our Campaign for the Church Alive!, Inc.; Director, Saint Vincent College; Member, Pennsylvania State Board of Education (public); and Director and Chair, Cardinal Wuerl North Catholic High School, Inc. Judge Lally-Green has held the positions of: Director, Auberle; Director, Epilepsy Foundation of Western and Central Pennsylvania; Director, Ireland Institute of Pittsburgh; Director, Saint Thomas More Society; Director, Catholic High Schools of the Diocese of Pittsburgh, Inc.; and Director, Pennsylvania Bar Institute. |
Peter E. Madden Birth Date: March 16, 1942 Trustee Indefinite Term Began serving: November 2005 | Principal Occupation: Director or Trustee, and Chair of the Board of Directors or Trustees, of the Federated Fund Family; Retired. Other Directorships Held: None. Qualifications: Mr. Madden has served in several business management, mutual fund services and directorship positions throughout his career. Mr. Madden previously served as President, Chief Operating Officer and Director, State Street Bank and Trust Company (custodian bank) and State Street Corporation (financial services). He was Director, VISA USA and VISA International and Chairman and Director, Massachusetts Bankers Association. Mr. Madden served as Director, Depository Trust Corporation and Director, The Boston Stock Exchange. Mr. Madden also served as a Representative to the Commonwealth of Massachusetts General Court. |
Charles F. Mansfield, Jr. Birth Date: April 10, 1945 Trustee Indefinite Term Began serving: November 2005 | Principal Occupations: Director or Trustee of the Federated Fund Family; Management Consultant. Other Directorships Held: None. Qualifications: Mr. Mansfield has served as a Marine Corps officer and in several banking, business management, educational roles and directorship positions throughout his long career. He remains active as a Management Consultant. |
Thomas M. O'Neill Birth Date: June 14, 1951 Trustee Indefinite Term Began serving: October 2006 | Principal Occupations: Director or Trustee, Chair of the Audit Committee of the Federated Fund Family; Sole Proprietor, Navigator Management Company (investment and strategic consulting). Other Directorships Held: None. Qualifications: Mr. O'Neill has served in several business, mutual fund and financial management roles and directorship positions throughout his career. Mr. O'Neill serves as Director, Medicines for Humanity and Director, The Golisano Children's Museum of Naples, Florida. Mr. O'Neill previously served as Chief Executive Officer and President, Managing Director and Chief Investment Officer, Fleet Investment Advisors; President and Chief Executive Officer, Aeltus Investment Management, Inc.; General Partner, Hellman, Jordan Management Co., Boston, MA; Chief Investment Officer, The Putnam Companies, Boston, MA; Credit Analyst and Lending Officer, Fleet Bank; Director and Consultant, EZE Castle Software (investment order management software); and Director, Midway Pacific (lumber). |
P. Jerome Richey Birth Date: February 23, 1949 Trustee Indefinite Term Began serving: October 2013 | Principal Occupations: Director or Trustee of the Federated Fund Family; Management Consultant; formerly, Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh and Executive Vice President and Chief Legal Officer, CONSOL Energy Inc. Other Directorships Held: None. Qualifications: Mr. Richey has served in several business and legal management roles and directorship positions throughout his career. Mr. Richey most recently held the positions of Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh. Mr. Richey previously served as Chairman of the Board, Epilepsy Foundation of Western Pennsylvania and Chairman of the Board, World Affairs Council of Pittsburgh. Mr. Richey previously served as Chief Legal Officer and Executive Vice President, CONSOL Energy Inc.; and Board Member, Ethics Counsel and Shareholder, Buchanan Ingersoll & Rooney PC (a law firm). |
Name Birth Date Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications |
John S. Walsh Birth Date: November 28, 1957 Trustee Indefinite Term Began serving: November 2005 | Principal Occupations: Director or Trustee of the Federated Fund Family; President and Director, Heat Wagon, Inc. (manufacturer of construction temporary heaters); President and Director, Manufacturers Products, Inc. (distributor of portable construction heaters); President, Portable Heater Parts, a division of Manufacturers Products, Inc. Other Directorships Held: None. Qualifications: Mr. Walsh has served in several business management roles and directorship positions throughout his career. Mr. Walsh previously served as Vice President, Walsh & Kelly, Inc. (paving contractors). |
Name Birth Date Address Positions Held with Trust Date Service Began | Principal Occupation(s) for Past Five Years and Previous Position(s) |
John W. McGonigle Birth Date: October 26, 1938 EXECUTIVE VICE PRESIDENT AND SECRETARY Officer since: October 2005 | Principal Occupations: Executive Vice President and Secretary of the Federated Fund Family; Vice Chairman, Executive Vice President, Secretary and Director, Federated Investors, Inc. Previous Positions: Trustee, Federated Investment Management Company and Federated Investment Counseling; Director, Federated Global Investment Management Corp., Federated Services Company and Federated Securities Corp. |
Lori A. Hensler Birth Date: January 6, 1967 TREASURER Officer since: April 2013 | Principal Occupations: Principal Financial Officer and Treasurer of the Federated Fund Family; Senior Vice President, Federated Administrative Services; Financial and Operations Principal for Federated Securities Corp. and Edgewood Services, Inc.; and Assistant Treasurer, Federated Investors Trust Company. Ms. Hensler has received the Certified Public Accountant designation. Previous Positions: Controller of Federated Investors, Inc.; Senior Vice President and Assistant Treasurer, Federated Investors Management Company; Treasurer, Federated Investors Trust Company; Assistant Treasurer, Federated Administrative Services, Federated Administrative Services, Inc., Federated Securities Corp., Edgewood Services, Inc., Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company, Passport Research, Ltd., and Federated MDTA, LLC; Financial and Operations Principal for Federated Securities Corp., Edgewood Services, Inc. and Southpointe Distribution Services, Inc. |
Peter J. Germain Birth Date: September 3, 1959 CHIEF LEGAL OFFICER Officer since: October 2005 | Principal Occupations: Mr. Germain is Chief Legal Officer of the Federated Fund Family. He is General Counsel and Vice President, Federated Investors, Inc.; President, Federated Administrative Services and Federated Administrative Services, Inc.; Vice President, Federated Securities Corp.; Secretary, Federated Private Asset Management, Inc.; and Secretary, Retirement Plan Service Company of America. Mr. Germain joined Federated in 1984 and is a member of the Pennsylvania Bar Association. Previous Positions: Deputy General Counsel, Special Counsel, Managing Director of Mutual Fund Services, Federated Investors, Inc.; Senior Vice President, Federated Services Company; and Senior Corporate Counsel, Federated Investors, Inc. |
Richard B. Fisher Birth Date: May 17, 1923 VICE CHAIRMAN Officer since: October 2005 | Principal Occupations: Vice Chairman or Vice President of some of the Funds in the Federated Fund Family; Vice Chairman, Federated Investors, Inc.; Chairman, Federated Securities Corp. Previous Positions: President and Director or Trustee of some of the Funds in the Federated Fund Family; Executive Vice President, Federated Investors, Inc.; Director and Chief Executive Officer, Federated Securities Corp. |
Stephen Van Meter Birth Date: June 5, 1975 CHIEF COMPLIANCE OFFICER AND SENIOR VICE PRESIDENT Officer since: July 2015 | Principal Occupations: Senior Vice President and Chief Compliance Officer of the Federated Fund Family; Vice President and Chief Compliance Officer of Federated Investors, Inc. and Chief Compliance Officer of certain of its subsidiaries. Mr. Van Meter joined Federated in October 2011. He holds FINRA licenses under Series 3, 7, 24 and 66. Previous Positions: Mr. Van Meter previously held the position of Compliance Operating Officer, Federated Investors, Inc. Prior to joining Federated, Mr. Van Meter served at the United States Securities and Exchange Commission in the positions of Senior Counsel, Office of Chief Counsel, Division of Investment Management and Senior Counsel, Division of Enforcement. |
Robert J. Ostrowski Birth Date: April 26, 1963 Chief Investment Officer Officer since: September 2006 | Principal Occupations: Robert J. Ostrowski joined Federated in 1987 as an Investment Analyst and became a Portfolio Manager in 1990. He was named Chief Investment Officer of Federated's taxable fixed-income products in 2004 and also serves as a Senior Portfolio Manager. Mr. Ostrowski became an Executive Vice President of the Fund's Adviser in 2009 and served as a Senior Vice President of the Fund's Adviser from 1997 to 2009. Mr. Ostrowski has received the Chartered Financial Analyst designation. He received his M.S. in Industrial Administration from Carnegie Mellon University. |
Federated Investors Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
2017 ©Federated Investors, Inc.
Item 2. Code of Ethics
(a) As of the end of the period covered by this report, the registrant has adopted a code of ethics (the "Section 406 Standards for Investment Companies - Ethical Standards for Principal Executive and Financial Officers") that applies to the registrant's Principal Executive Officer and Principal Financial Officer; the registrant's Principal Financial Officer also serves as the Principal Accounting Officer.
(c) There was no amendment to the registrant’s code of ethics described in Item 2(a) above during the period covered by the report.
(d) There was no waiver granted, either actual or implicit, from a provision to the registrant’s code of ethics described in Item 2(a) above during the period covered by the report.
(e) Not Applicable
(f)(3) The registrant hereby undertakes to provide any person, without charge, upon request, a copy of the code of ethics. To request a copy of the code of ethics, contact the registrant at 1-800-341-7400, and ask for a copy of the Section 406 Standards for Investment Companies - Ethical Standards for Principal Executive and Financial Officers.
Item 3. Audit Committee Financial Expert
The registrant's Board has determined that each of the following members of the Board's Audit Committee is an “audit committee financial expert,” and is "independent," for purposes of this Item: John T. Collins, G. Thomas Hough and Thomas M. O'Neill.
Item 4. Principal Accountant Fees and Services
(a) Audit Fees billed to the registrant for the two most recent fiscal years:
Fiscal year ended 2016 - $163,760
Fiscal year ended 2015 - $162,550
(b) Audit-Related Fees billed to the registrant for the two most recent fiscal years:
Fiscal year ended 2016 - $0
Fiscal year ended 2015 - $175
Fiscal year ended 2015- Travel to Audit Committee Meeting.
Amount requiring approval of the registrant’s audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $0 and $122 respectively. Fiscal year ended 2015- Travel expenses for attendance at Audit Committee meeting.
(c) Tax Fees billed to the registrant for the two most recent fiscal years:
Fiscal year ended 2016 - $0
Fiscal year ended 2015 - $0
Amount requiring approval of the registrant’s audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $0 and $0 respectively.
(d) All Other Fees billed to the registrant for the two most recent fiscal years:
Fiscal year ended 2016 - $0
Fiscal year ended 2015 - $0
Amount requiring approval of the registrant’s audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $42,030 and $43,673 respectively. Fiscal year ended 2016- Service fee for analysis of potential Passive Foreign Investment Company holdings. Fiscal year ended 2015- Service fee for analysis of potential Passive Foreign Investment Company holdings.
(e)(1) Audit Committee Policies regarding Pre-approval of Services.
The Audit Committee is required to pre-approve audit and non-audit services performed by the independent auditor in order to assure that the provision of such services do not impair the auditor’s independence. Unless a type of service to be provided by the independent auditor has received general pre-approval, it will require specific pre-approval by the Audit Committee. Any proposed services exceeding pre-approved cost levels will require specific pre-approval by the Audit Committee.
Certain services have the general pre-approval of the Audit Committee. The term of the general pre-approval is 12 months from the date of pre-approval, unless the Audit Committee specifically provides for a different period. The Audit Committee will annually review the services that may be provided by the independent auditor without obtaining specific pre-approval from the Audit Committee and may grant general pre-approval for such services. The Audit Committee will revise the list of general pre-approved services from time to time, based on subsequent determinations. The Audit Committee will not delegate its responsibilities to pre-approve services performed by the independent auditor to management.
The Audit Committee has delegated pre-approval authority to its Chairman. The Chairman will report any pre-approval decisions to the Audit Committee at its next scheduled meeting. The Committee will designate another member with such pre-approval authority when the Chairman is unavailable.
AUDIT SERVICES
The annual Audit services engagement terms and fees will be subject to the specific pre-approval of the Audit Committee. The Audit Committee must approve any changes in terms, conditions and fees resulting from changes in audit scope, registered investment company (RIC) structure or other matters.
In addition to the annual Audit services engagement specifically approved by the Audit Committee, the Audit Committee may grant general pre-approval for other Audit Services, which are those services that only the independent auditor reasonably can provide. The Audit Committee has pre-approved certain Audit services, all other Audit services must be specifically pre-approved by the Audit Committee.
AUDIT-RELATED SERVICES
Audit-related services are assurance and related services that are reasonably related to the performance of the audit or review of the Company’s financial statements or that are traditionally performed by the independent auditor. The Audit Committee believes that the provision of Audit-related services does not impair the independence of the auditor, and has pre-approved certain Audit-related services, all other Audit-related services must be specifically pre-approved by the Audit Committee.
TAX SERVICES
The Audit Committee believes that the independent auditor can provide Tax services to the Company such as tax compliance, tax planning and tax advice without impairing the auditor’s independence. However, the Audit Committee will not permit the retention of the independent auditor in connection with a transaction initially recommended by the independent auditor, the purpose of which may be tax avoidance and the tax treatment of which may not be supported in the Internal Revenue Code and related regulations. The Audit Committee has pre-approved certain Tax services, all Tax services involving large and complex transactions must be specifically pre-approved by the Audit Committee.
ALL OTHER SERVICES
With respect to the provision of services other than audit, review or attest services the pre-approval requirement is waived if:
(1) | The aggregate amount of all such services provided constitutes no more than five percent of the total amount of revenues paid by the registrant, the registrant’s adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant to its accountant during the fiscal year in which the services are provided; |
(2) | Such services were not recognized by the registrant, the registrant’s adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant at the time of the engagement to be non-audit services; and |
(3) | Such services are promptly brought to the attention of the Audit Committee of the issuer and approved prior to the completion of the audit by the Audit Committee or by one or more members of the Audit Committee who are members of the board of directors to whom authority to grant such approvals has been delegated by the Audit Committee. |
The Audit Committee may grant general pre-approval to those permissible non-audit services classified as All Other services that it believes are routine and recurring services, and would not impair the independence of the auditor.
The SEC’s rules and relevant guidance should be consulted to determine the precise definitions of prohibited non-audit services and the applicability of exceptions to certain of the prohibitions.
PRE-APPROVAL FEE LEVELS
Pre-approval fee levels for all services to be provided by the independent auditor will be established annually by the Audit Committee. Any proposed services exceeding these levels will require specific pre-approval by the Audit Committee.
PROCEDURES
Requests or applications to provide services that require specific approval by the Audit Committee will be submitted to the Audit Committee by both the independent auditor and the Principal Accounting Officer and/or Internal Auditor, and must include a joint statement as to whether, in their view, the request or application is consistent with the SEC’s rules on auditor independence.
(e)(2) Percentage of services identified in items 4(b) through 4(d) that were approved by the registrants audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X:
4(b)
Fiscal year ended 2016 – 0%
Fiscal year ended 2015 - 0%
Percentage of services provided to the registrants investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were approved by the registrants audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, 0% and 0% respectively.
4(c)
Fiscal year ended 2016 – 0%
Fiscal year ended 2015 – 0%
Percentage of services provided to the registrants investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were approved by the registrants audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, 0% and 0% respectively.
4(d)
Fiscal year ended 2016 – 0%
Fiscal year ended 2015 – 0%
Percentage of services provided to the registrants investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were approved by the registrants audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, 0% and 0% respectively.
(f) | NA |
(g) | Non-Audit Fees billed to the registrant, the registrant’s investment adviser, and certain entities controlling, controlled by or under common control with the investment adviser: |
Fiscal year ended 2016 - $302,667
Fiscal year ended 2015 - $71,058
(h) | The registrant’s Audit Committee has considered that the provision of non-audit services that were rendered to the registrant’s adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence. |
In their respective required communications to the Audit Committee of the registrant’s Board, Ernst & Young LLP (“EY”) and KPMG LLP (“KPMG”) (as applicable, “EY/KPMG”), the registrant’s independent public accountants, informed the Audit Committee that EY/KPMG and/or covered person professionals within EY/KPMG maintain lending relationships with certain owners of greater than 10% of the shares of the registrant and/or certain investment companies within the “investment company complex” as defined under Rule 2-01(f)(14) of Regulation S-X, which are affiliates of the registrant. EY/KPMG has advised the Audit Committee that these lending relationships implicate Rule 2-01(c)(1)(ii)(A) of Regulation S-X (referred to as the “Loan Rule”). The Loan Rule prohibits an independent public accountant, or covered person professionals at such firm, from having a financial relationship (such as a loan) with a lender that is a record or beneficial owner of more than 10% of an audit client’s equity securities. For purposes of the Loan Rule, audit clients include the registrant, as well as all registered investment companies advised by advisory subsidiaries of Federated Investors, Inc., the Adviser (for which EY serves as independent public accountant), and their respective affiliates (collectively, the “Federated Fund Complex”).
EY/KPMG informed the Audit Committee that EY/KPMG believes that these lending relationships described above do not and will not impair EY/KPMG’s ability to exercise objective and impartial judgment in connection with financial statement audits of their respective funds of the registrant and a reasonable investor with knowledge of all relevant facts and circumstances would conclude that EY/KPMG has been and is capable of objective and impartial judgment on all issues encompassed within EY/KPMG’s audits.
On June 20, 2016, the Division of Investment Management of the Securities and Exchange Commission (“SEC”) issued a no-action letter to another mutual fund complex (see Fidelity Management & Research Company et al., No-Action Letter) related to similar Loan Rule matters as those described above. In that letter, the SEC Staff confirmed that it would not recommend enforcement action against an investment company that relied on the audit services performed by an independent public accountant where the Loan Rule was implicated in certain specified circumstances. In that letter, the SEC staff indicated that it would not recommend enforcement action against the investment company complex if the Loan Rule is implicated provided that: (1) the auditor has complied with PCAOB Rule 3526(b)(1) and 3526(b)(2); (2) the Loan Rule is implicated because of lending relationships; and (3) notwithstanding such lending relationships that implicate the Loan Rule, the auditor has concluded that it is objective and impartial with respect to the issues encompassed within its engagement as auditor of the funds. The circumstances described in the no-action letter are substantially similar to the circumstances that implicated the Loan Rule with respect to EY/KPMG and the registrant. The relief provided in the SEC no-action letter is effective for 18 months from its June 20, 2016 issuance date.
If it were to be determined that the relief available under the no-action letter was improperly relied upon, or that the independence requirements under the federal securities laws were not otherwise complied with regarding the registrant, for certain periods, any of the registrant’s filings with the SEC which contain financial statements of the registrant for such periods may not comply with applicable federal securities laws, the registrant’s ability to offer shares under its current registration statement may be impacted, and certain financial reporting and/or other covenants with, and representations and warranties to, the registrant’s lender under its committed line of credit may be impacted. Such events could have a material adverse effect on the registrant and the Federated Fund Complex.
Item 5. Audit Committee of Listed Registrants
Not Applicable
Item 6. Schedule of Investments
(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this form.
(b) Not Applicable; Fund had no divestments during the reporting period covered since the previous Form N-CSR filing.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not Applicable
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not Applicable
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not Applicable
Item 10. Submission of Matters to a Vote of Security Holders
No Changes to Report
Item 11. Controls and Procedures
(a) The registrant’s President and Treasurer have concluded that the
registrant’s disclosure controls and procedures (as defined in rule 30a-3(c) under the Act) are effective in design and operation and are sufficient to form the basis of the certifications required by Rule 30a-(2) under the Act, based on their evaluation of these disclosure controls and procedures within 90 days of the filing date of this report on Form N-CSR.
(b) There were no changes in the registrant’s internal control over financial reporting (as defined in rule 30a-3(d) under the Act) during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Exhibits
(a)(1) Code of Ethics- Not Applicable to this Report.
(a)(2) Certifications of Principal Executive Officer and Principal Financial Officer.
(a)(3) Not Applicable.
(b) Certifications pursuant to 18 U.S.C. Section 1350.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant Federated Managed Pool Series
By /S/ Lori A. Hensler
Lori A. Hensler, Principal Financial Officer
Date January 25, 2017
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By /S/ J. Christopher Donahue
J. Christopher Donahue, Principal Executive Officer
Date January 25, 2017
By /S/ Lori A. Hensler
Lori A. Hensler, Principal Financial Officer
Date January 25, 2017