Federated Hermes MDT Small Cap Core Fund (QCSCX) N-CSRS Certified semi-annual shareholder report (management investment company)

                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C.  20549

                                   FORM N-CSR
   CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES




                                   811-21904

                      (Investment Company Act File Number)


                              Federated MDT Series
        _______________________________________________________________

               (Exact Name of Registrant as Specified in Charter)



                           Federated Investors Funds
                              5800 Corporate Drive
                      Pittsburgh, Pennsylvania 15237-7000
                    (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:  7/31/07


              Date of Reporting Period:  Six months ended 1/31/07







ITEM 1.     REPORTS TO STOCKHOLDERS

Federated
World-Class Investment Manager

Federated MDT All Cap Core Fund

A Portfolio of Federated MDT Series

SEMI-ANNUAL SHAREHOLDER REPORT

January 31, 2007

Class A Shares
Class C Shares
Class K Shares

FINANCIAL HIGHLIGHTS
SHAREHOLDER EXPENSE EXAMPLE
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
PORTFOLIO OF INVESTMENTS
STATEMENT OF ASSETS AND LIABILITIES
STATEMENT OF OPERATIONS
STATEMENT OF CHANGES IN NET ASSETS
NOTES TO FINANCIAL STATEMENTS
EVALUATION AND APPROVAL OF ADVISORY CONTRACT
VOTING PROXIES ON FUND PORTFOLIO SECURITIES
QUARTERLY PORTFOLIO SCHEDULE

Not FDIC Insured * May Lose Value * No Bank Guarantee

Financial Highlights - Class A Shares

(For a Share Outstanding Throughout Each Period)

	Six Months Ended (unaudited)			Year Ended July 31,
	1/31/2007	1		2006	2		2005			2004			2003	2,3
Net Asset Value, Beginning of Period	$15.08			$15.26			$13.52			$11.75			$10.17
Income From Investment Operations:
Net investment income (loss)	0.01	4		0.00	4,5		(0.00	) 4,5		0.01			0.00	5
Net realized and unrealized gain on investments	1.87			0.70			2.85			2.05			1.58
TOTAL FROM INVESTMENT OPERATIONS	1.88			0.70			2.85			2.06			1.58
Less Distributions:
Distributions from net investment income	- --			(0.00	) 5		(0.03	)		(0.02	)		- --
Distributions from net realized gain on investments	(0.54	)		(0.88	)		(1.08	)		(0.27	)		- --
TOTAL DISTRIBUTIONS	(0.54	)		(0.88	)		(1.11	)		(0.29	)		- --
Net Asset Value, End of Period	$16.42			$15.08			$15.26			$13.52			$11.75
Total Return 6	12.48	%		4.59	%		21.79	%		17.53	%		15.54	%
Ratios to Average Net Assets:
Net expenses	1.42	% 7		1.50	%		1.50	%		1.50	%		1.50	% 7
Net investment income (loss)	0.16	% 7		0.03	%		(0.02	)%		0.05	%		0.21	% 7
Expense waiver/reimbursement 8	0.01	% 7		0.05	%		0.04	%		0.15	%		0.84	% 7
Supplemental Data:
Net assets, end of period (000 omitted)	$180,471		$101,723			$30,336			$9,628			$1,585
Portfolio turnover	101	%		212	%		204	%		96	%		172	% 9

1 MDT All Cap Core Fund (the "Predecessor Fund") was reorganized into Federated MDT All Cap Core Fund (the "Fund") as of the close of business on December 8, 2006. Prior to the reorganization, the Fund had no investment operations. The Fund is the successor to the Predecessor Fund. The performance information and financial information presented incorporates the operations of the Predecessor Fund, which, as a result of the organization, are the Fund's operations.

2 The year ended July 31, 2006 and the period ended July 31, 2003 were audited by Ernst & Young LLP. The year ended July 31, 2004 and 2005 were audited by another independent registered public accounting firm.

3 Reflects operations for the period from February 12, 2003 (date of initial public investment) to July 31, 2003.

4 Per share numbers have been calculated using the average shares method.

5 Represents less than $0.01.

6 Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. Total returns for periods of less than one year are not annualized.

7 Computed on an annualized basis.

8 This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above.

9 Portfolio turnover is calculated at the Fund level. Percentage indicated was calculated for the year ended July 31, 2003.

See Notes which are an integral part of the Financial Statements

Financial Highlights - Class C Shares

(For a Share Outstanding Throughout Each Period)

	Six Months Ended (unaudited)		Period Ended
	1/31/2007	1	7/31/2006	2
Net Asset Value, Beginning of Period	$14.99		$15.25
Income From Investment Operations:
Net investment income (loss)	(0.05	) 3	(0.10	) 3
Net realized and unrealized gain on investments	1.85		0.72
TOTAL FROM INVESTMENT OPERATIONS	1.80		0.62
Less Distributions:
Distributions from net realized gain on investments	(0.54	)	(0.88	)
Net Asset Value, End of Period	$16.25		$14.99
Total Return 4	12.01	%	4.01	%
Ratios to Average Net Assets:
Net expenses	2.17	% 5	2.25	% 5
Net investment income (loss)	(0.59	)% 5	(0.72	)% 5
Expense waiver/reimbursement 6	0.01	% 5	0.05	% 5
Supplemental Data:
Net assets, end of period (000 omitted)	$86,840		$48,189
Portfolio turnover	101	%	212	% 7

1 The Predecessor Fund was reorganized into the Fund as of the close of business on December 8, 2006. Prior to the reorganization, the Fund had no investment operations. The Fund is the successor to the Predecessor Fund. The performance information and financial information presented incorporates the operations of the Predecessor Fund, which, as a result of the organization, are the Fund's operations.

2 Reflects operations for the period from September 15, 2005 (date of initial public investment) to July 31, 2006.

3 Per share numbers have been calculated using the average shares method.

4 Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. Total returns for periods of less than one year are not annualized.

5 Computed on an annualized basis.

6 This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above.

7 Portfolio turnover is calculated at the Fund level. Percentage indicated was calculated for the year ended July 31, 2006.

See Notes which are an integral part of the Financial Statements

Financial Highlights - Class K Shares

(For a Share Outstanding Throughout the Period)

	Period Ended (unaudited)
	1/31/2007	1
Net Asset Value, Beginning of Period	$16.82
Income From Investment Operations:
Net investment income	0.01	2
Net realized and unrealized gain on investments	0.25
TOTAL FROM INVESTMENT OPERATIONS	0.26
Less Distributions:
Distributions from net realized gain on investments	(0.54	)
Net Asset Value, End of Period	$16.54
Total Return 3	1.74	%
Ratios to Average Net Assets
Net expenses	1.75	% 4
Net investment income	0.23	% 4
Expense waiver/reimbursement 5	0.02	% 4
Supplemental Data:
Net assets, end of period (000 omitted)	$0	6
Portfolio turnover	101	% 7

1 Reflects operations for the period from December 12, 2006 (date of initial public investment) to January 31, 2007.

2 Per share numbers have been calculated using the average shares method.

3 Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. Total returns for periods of less than one year are not annualized.

4 Computed on an annualized basis.

5 This expense decrease is reflected in both the net expense and the net investment income ratios shown above.

6 Represents less than $1,000.

7 Portfolio turnover is calculated at the Fund level. Percentage indicated was calculated for the six-month period ended January 31, 2007.

See Notes which are an integral part of the Financial Statements

Shareholder Expense Example

As a shareholder of the Fund, you incur two types of cost: (1) transaction costs, including sales charges (loads) on purchase or redemption payments; and (2) ongoing costs, including management fees; to the extent applicable, distribution (12b-1) fees and/or shareholder services fees and other Fund expenses. This Example is intended to help you to understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. It is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from August 1, 2006 ¹ to January 31, 2007.

ACTUAL EXPENSES

The first section of the table below provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you incurred over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled "Expenses Paid During Period" to estimate the expenses attributable to your investment during this period.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

The second section of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. Thus, you should not use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are required to be provided to enable you to compare the ongoing costs of investing in the Fund with other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase or redemption payments. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.

	Beginning Account Value 8/1/2006	Ending Account Value 1/31/2007	Expenses Paid During Period 1
Actual:
Class A Shares	$1,000	$1,124.80	$ 7.61
Class C Shares	$1,000	$1,120.10	$ 11.60
Class K Shares	$1,000	$1,123.30	$ 2.60
Hypothetical (assuming a 5% return before expenses):
Class A Shares	$1,000	$1,018.05	$ 7.22
Class C Shares	$1,000	$1,014.27	$ 11.02
Class K Shares	$1,000	$1,016.38	$ 8.89

1 "Actual" expense information for the Fund's Class K Shares is for the period from December 12, 2006 (date of initial public investment) to January 31, 2007. Actual expenses are equal to the annualized expense ratio of the Fund's Class K Shares, multiplied by 51/365 (to reflect the period from initial public investment to January 31, 2007). "Hypothetical" expense information for Class A Shares, Class C Shares and Class K Shares is presented on the basis of the full one-half year period to enable comparison to other funds. It is based on assuming the same net expense ratio and average account value over the period, but it is multiplied by 184/365 (to reflect the full half-year period). The annualized net expense ratios are as follows:

Class A Shares	1.42%
Class C Shares	2.17%
Class K Shares	1.75%

Portfolio of Investments Summary Table

At January 31, 2007, the Fund's industry composition ¹ was as follows:

Industry	Percentage of Total Net Assets
Insurance	17.6	%
Oil, Gas & Consumable Fuels	11.7	%
Capital Markets	8.3	%
Commercial Banks	6.9	%
Household Products	5.5	%
Energy Equipment & Services	5.0	%
Media	5.0	%
Health Care Equipment & Supplies	2.6	%
Health Care Providers & Services	2.5	%
Computers & Peripherals	2.4	%
Specialty Retail	2.4	%
Industrial Conglomerates	1.9	%
Chemicals	1.7	%
Pharmaceuticals	1.7	%
Road & Rail	1.6	%
Diversified Financial Services	1.4	%
IT Services	1.3	%
Food Products	1.2	%
Household Durables	1.2	%
Thrifts & Mortgage Finance	1.2	%
Aerospace & Defense	1.0	%
Biotechnology	1.0	%
Commercial Services & Supplies	1.0	%
Multiline Retail	1.0	%
Textiles, Apparel & Luxury Goods	1.0	%
Other 2	10.0	%
Cash Equivalents 3	1.9	%
Other Assets and Liabilities--Net 4	(0.0	)%
TOTAL	100.0	%

1 Except for Cash Equivalents and Other Assets and Liabilities, industry classifications are based upon, and individual securities are assigned to, the classifications of the Global Industry Classification Standard (GICS) except that the adviser assigns a classification to securities not classified by the GICS and to securities for which the adviser does not have access to the classification made by the GICS.

2 For purposes of this table, industry classifications which constitute less than 1.0% of the Fund's total net assets have been aggregated under the designation "Other."

3 Cash Equivalents include any investments in money market mutual funds and/or any overnight repurchase agreements.

4 Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities.

Portfolio of Investments

January 31, 2007 (unaudited)

Shares					Value
			COMMON STOCKS--98.1%
			Aerospace & Defense--1.0%
	2,400		American Commercial Lines, Inc.	$	169,056
	2,600		Goodrich (B.F.) Co.		127,452
	4,600		Lockheed Martin Corp.		447,074
	7,400		Northrop Grumman Corp.		524,956
	22,900		Raytheon Co.		1,188,510
	900		Rockwell Collins		61,389
	8,800		United Technologies Corp.		598,576
			TOTAL		3,117,013
			Air Freight & Logistics--0.0%
	4,300	1	Hub Group, Inc.		128,398
			Biotechnology--1.0%
	4,700	1	Cephalon, Inc.		340,327
	24,100	1	Genentech, Inc.		2,105,617
	20,400	1	Medimmune, Inc.		707,064
			TOTAL		3,153,008
			Building Products--0.2%
	15,800		American Standard Cos.		780,362
			Capital Markets--8.3%
	2,700	1	Affiliated Managers Group, Inc.		300,780
	5,200		Ameriprise Financial, Inc.		306,592
	23,400		Bear Stearns & Co., Inc.		3,857,490
	13,200		Janus Capital Group, Inc.		270,336
	3,600		Lehman Brothers Holdings, Inc.		296,064
	94,200		Merrill Lynch & Co., Inc.		8,813,352
	157,300		Morgan Stanley		13,022,867
			TOTAL		26,867,481
			Chemicals--1.7%
	2,800		Ashland, Inc.		194,740
	123,200		Dow Chemical Co.		5,117,728
	8,900	1	Nalco Holding Co.		204,611
	1		Tronox, Inc., Class B		14
			TOTAL		5,517,093
Shares					Value
			COMMON STOCKS--continued
			Commercial Banks--6.9%
	1,700		City National Corp.	$	122,281
	30,400		Comerica, Inc.		1,802,720
	15,400		Fifth Third Bancorp		614,460
	3,200		Huntington Bancshares, Inc.		74,496
	273,400		J.P. Morgan Chase & Co.		13,924,262
	46,713		KeyCorp		1,783,035
	60,300		National City Corp.		2,282,355
	15,400		SunTrust Banks, Inc.		1,279,740
	10,800		UnionBanCal Corp.		697,896
			TOTAL		22,581,245
			Commercial Services & Supplies--1.0%
	2,200		Brinks Co. (The)		136,730
	4,400		Dun & Bradstreet Corp.		374,000
	6,700		Equifax, Inc.		278,251
	8,200		Miller Herman, Inc.		308,320
	15,700		Pitney Bowes, Inc.		751,559
	24,000		Robert Half International, Inc.		976,800
	6,400	1	TeleTech Holdings, Inc.		172,480
	2,900	1	United Stationers, Inc.		147,784
	3,200	1	Waste Connections, Inc.		139,424
			TOTAL		3,285,348
			Communications Equipment--0.5%
	6,700	1	Comverse Technology, Inc.		129,645
	3,600	1	F5 Networks, Inc.		257,184
	56,400		Motorola, Inc.		1,119,540
			TOTAL		1,506,369
			Computers & Peripherals--2.4%
	72,800	1	Apple, Inc.		6,241,144
	42,200	1	Network Appliance, Inc.		1,586,720
			TOTAL		7,827,864
			Construction Materials--0.3%
	1,700		Texas Industries, Inc.		124,814
	8,600		Vulcan Materials Co.		875,824
			TOTAL		1,000,638
Shares					Value
			COMMON STOCKS--continued
			Consumer Finance--0.4%
	23,800	1	Americredit Corp.	$	645,932
	11,300	1	First Marblehead Corp.		614,720
			TOTAL		1,260,652
			Containers & Packaging--0.3%
	7,200	1	Crown Holdings, Inc.		158,904
	3,200		Sealed Air Corp.		210,880
	9,100		Temple-Inland, Inc.		454,454
			TOTAL		824,238
			Diversified Consumer Services--0.2%
	3,500	1	ITT Educational Services, Inc.		271,600
	8,100	1	Weight Watchers International, Inc.		437,643
			TOTAL		709,243
			Diversified Financial Services--1.4%
	43,800		CIT Group, Inc.		2,582,448
	1,500		Chicago Mercantile Exchange Holdings, Inc.		844,950
	17,400		Moody's Corp.		1,245,144
			TOTAL		4,672,542
			Diversified Telecommunication Services--0.6%
	32,600		Embarq Corp.		1,809,626
			Electric Utilities--0.8%
	18,400	1	Allegheny Energy, Inc.		855,968
	13,600		Edison International		611,728
	7,700		FirstEnergy Corp.		456,841
	7,100		Portland General Electric Co.		185,594
	22,900	1	Reliant Resources, Inc.		340,752
			TOTAL		2,450,883
			Electrical Equipment--0.8%
	56,800		Honeywell International, Inc.		2,595,192
	2,100		Roper Industries, Inc.		109,032
			TOTAL		2,704,224
Shares					Value
			COMMON STOCKS--continued
			Electronic Equipment & Instruments--0.8%
	12,700		Amphenol Corp., Class A	$	860,044
	25,200	1	Avnet, Inc.		782,460
	5,000		Daktronics, Inc.		172,850
	20,500	1	Ingram Micro, Inc., Class A		399,955
	8,100		National Instruments Corp.		233,361
	200	1	Tech Data Corp.		7,428
			TOTAL		2,456,098
			Energy Equipment & Services--5.0%
	13,600	1	Cameron International Corp.		714,000
	1,000	1	FMC Technologies, Inc.		61,930
	6,500		GlobalSantaFe Corp.		377,065
	8,400	1	Oceaneering International, Inc.		331,548
	19,500		Patterson-UTI Energy, Inc.		470,925
	184,700		Schlumberger Ltd.		11,726,603
	2,200	1	Seacor Holdings, Inc.		222,706
	29,500	1	Transocean Sedco Forex, Inc.		2,282,415
			TOTAL		16,187,192
			Food & Staples Retailing--0.5%
	20,700		Costco Wholesale Corp.		1,162,926
	12,500		Kroger Co.		320,000
	4,700		Longs Drug Stores Corp.		202,100
			TOTAL		1,685,026
			Food Products--1.2%
	54,300		Archer-Daniels-Midland Co.		1,737,600
	1,000		Bunge Ltd.		76,950
	27,400		Kellogg Co.		1,349,998
	17,800		Kraft Foods, Inc., Class A		621,576
			TOTAL		3,786,124
			Gas Utilities--0.1%
	6,900		Energen Corp.		319,332
Shares					Value
			COMMON STOCKS--continued
			Health Care Equipment & Supplies--2.6%
	8,500		Dentsply International, Inc.	$	262,140
	8,000	1	Immucor, Inc.		252,320
	122,500		Medtronic, Inc.		6,547,625
	3,000		Mentor Corp.		152,970
	28,300	1	St. Jude Medical, Inc.		1,210,108
			TOTAL		8,425,163
			Health Care Providers & Services--2.5%
	42,100		Cardinal Health, Inc.		3,006,782
	6,800	1	DaVita, Inc.		371,280
	7,000	1	Laboratory Corp. of America Holdings		514,080
	4,200	1	Lincare Holdings, Inc.		165,270
	21,500	1	Medco Health Solutions, Inc.		1,273,015
	7,100	1	Psychiatric Solutions, Inc.		276,474
	31,300	1	Wellpoint, Inc.		2,453,294
			TOTAL		8,060,195
			Health Care Technology--0.1%
	14,900		IMS Health, Inc.		430,014
			Hotels, Restaurants & Leisure--0.6%
	3,000	1	Life Time Fitness, Inc.		162,600
	6,400	1	Starbucks Corp.		223,616
	2,100	1	Wynn Resorts Ltd.		234,654
	21,700		Yum! Brands, Inc.		1,302,217
			TOTAL		1,923,087
			Household Durables--1.2%
	4,300		Beazer Homes USA, Inc.		187,093
	9,900		Centex Corp.		531,531
	14,300		KB Home		775,346
	4,300		M.D.C. Holdings, Inc.		250,561
	2,000	1	Meritage Homes Corp.		88,900
	42,200		Pulte Homes, Inc.		1,449,148
	6,500		Ryland Group, Inc.		365,170
	9,900		Standard Pacific Corp.		271,656
			TOTAL		3,919,405
Shares					Value
			COMMON STOCKS--continued
			Household Products--5.5%
	36,700		Kimberly-Clark Corp.	$	2,546,980
	235,800		Procter & Gamble Co.		15,296,346
			TOTAL		17,843,326
			IT Services--1.3%
	3,500	1	Alliance Data Systems Corp.		237,755
	25,300		Automatic Data Processing, Inc.		1,207,316
	5,000	1	Ceridian Corp.		149,850
	6,200	1	Checkfree Corp.		256,866
	14,800	1	Cognizant Technology Solutions Corp.		1,262,292
	11,300	1	Computer Sciences Corp.		592,798
	7,400	1	Fiserv, Inc.		389,018
			TOTAL		4,095,895
			Independent Power Producers & Energy Traders--0.1%
	10,900	1	AES Corp.		226,611
			Industrial Conglomerates--1.9%
	69,200		3M Co.		5,141,560
	15,700	1	McDermott International, Inc.		810,748
	2,500		Teleflex, Inc.		166,950
			TOTAL		6,119,258
			Insurance--17.6%
	115,050		Allstate Corp.		6,921,408
	21,000		Ambac Financial Group, Inc.		1,850,100
	17,100		American Financial Group, Inc.		603,972
	202,200		American International Group, Inc.		13,840,590
	21,500		Assurant, Inc.		1,194,970
	30,300		Berkley, W. R. Corp.		1,002,627
	10,800	1	CNA Financial Corp.		439,020
	66,100		Chubb Corp.		3,439,844
	8,400		Commerce Group, Inc.		253,512
	12,700		HCC Insurance Holdings, Inc.		396,621
	6,200		Hanover Insurance Group, Inc.		297,910
	34,300		Hartford Financial Services Group, Inc.		3,255,413
	40,400		Loews Corp.		1,755,784
Shares					Value
			COMMON STOCKS--continued
			Insurance--continued
	21,200		MBIA Insurance Corp.	$	1,522,796
	136,500		MetLife, Inc.		8,479,380
	8,300		Nationwide Financial Services, Inc., Class A		453,595
	7,300		Odyssey Re Holdings Corp.		287,985
	7,800		Ohio Casualty Corp.		230,412
	107,600		Progressive Corp., OH		2,495,244
	9,600		Reinsurance Group of America		558,240
	18,700		Safeco Corp.		1,196,987
	1,900		Safety Insurance Group, Inc.		92,796
	4,700		StanCorp Financial Group, Inc.		224,895
	124,300		The St. Paul Travelers Cos., Inc.		6,320,655
	100		Unitrin, Inc.		5,121
			TOTAL		57,119,877
			Internet & Catalog Retail--0.3%
	11,400	1	Expedia, Inc.		244,530
	15,400	1	IAC Interactive Corp.		591,360
	5,100	1	Nutri/System, Inc.		224,655
			TOTAL		1,060,545
			Internet Software & Services--0.4%
	14,100	1	ValueClick, Inc.		359,832
	33,600	1	eBay, Inc.		1,088,304
			TOTAL		1,448,136
			Leisure Equipment & Products--0.1%
	10,500		Brunswick Corp.		358,155
			Life Sciences Tools & Services--0.1%
	6,800	1	Waters Corp.		385,492
			Machinery--0.8%
	5,200		Briggs & Stratton Corp.		154,128
	15,300		Danaher Corp.		1,133,118
	14,700		Deere & Co.		1,474,116
			TOTAL		2,761,362
Shares					Value
			COMMON STOCKS--continued
			Media--5.0%
	166,800	1	Comcast Corp., Class A	$	7,392,576
	24,600	1	Discovery Holding Co., Class A		407,622
	6,800	1	Lamar Advertising Co., Class A		450,704
	19,800		McGraw-Hill Cos., Inc.		1,328,184
	12,400		Omnicom Group, Inc.		1,304,480
	201,700		Time Warner, Inc.		4,411,179
	24,600	1	Viacom, Inc., Class B		1,000,482
			TOTAL		16,295,227
			Metals & Mining--0.3%
	20,700		Commercial Metals Corp.		561,177
	4,000		Metal Management, Inc.		164,160
	4,400		Quanex Corp.		172,436
	10,100		Worthington Industries, Inc.		193,718
			TOTAL		1,091,491
			Multi-Utilities--0.4%
	21,600		PG&E Corp.		1,008,288
	3,200		SCANA Corp.		130,304
			TOTAL		1,138,592
			Multiline Retail--1.0%
	17,800	1	Sears Holdings Corp.		3,144,370
			Oil, Gas & Consumable Fuels--11.7%
	52,800		Anadarko Petroleum Corp.		2,310,000
	214,200		Chevron Corp.		15,610,896
	67,000		Devon Energy Corp.		4,696,030
	13,300		Exxon Mobil Corp.		985,530
	6,000	1	General Maritime Corp.		218,940
	69,500		Marathon Oil Corp.		6,278,630
	11,000		OMI Corp.		242,660
	7,600		Overseas Shipholding Group, Inc.		472,188
	17,500		Pioneer Natural Resources, Inc.		717,500
	8,500		Pogo Producing Co.		421,175
	5,000	1	Swift Energy Co.		221,700
	15,200		Tesoro Petroleum Corp.		1,252,328
	84,900		Valero Energy Corp.		4,608,372
			TOTAL		38,035,949
Shares					Value
			COMMON STOCKS--continued
			Paper & Forest Products--0.1%
	16,100		MeadWestvaco Corp.	$	485,254
			Personal Products--0.2%
	15,000		Avon Products, Inc.		515,850
			Pharmaceuticals--1.7%
	51,200		Johnson & Johnson		3,420,160
	90,500		Schering Plough Corp.		2,262,500
			TOTAL		5,682,660
			Road & Rail--1.6%
	9,700		Burlington Northern Santa Fe Corp.		779,492
	7,700		Con-way, Inc.		382,998
	71,100		Norfolk Southern Corp.		3,530,115
	9,100		Ryder System, Inc.		496,314
	7,400		Werner Enterprises, Inc.		140,674
			TOTAL		5,329,593
			Semiconductors & Semiconductor Equipment--0.2%
	13,100	1	MEMC Electronic Materials, Inc.		686,440
			Software--0.8%
	123,100	1	Oracle Corp.		2,112,396
	2,700		Quality Systems, Inc.		114,561
	7,600	1	THQ, Inc.		230,280
			TOTAL		2,457,237
			Specialty Retail--2.4%
	3,300	1	AutoZone, Inc.		414,579
	15,500	1	CarMax, Inc.		890,165
	2,300	1	Children's Place Retail Stores, Inc.		124,683
	5,800	1	Dick's Sporting Goods, Inc.		298,642
	6,800	1	Guess ?, Inc.		490,348
	4,500	1	Gymboree Corp.		194,805
	4,200	1	Hibbett Sporting Goods, Inc.		134,862
	126,300		Home Depot, Inc.		5,145,462
	3,300	1	J. Crew Group, Inc.		119,889
	2,200	1	Zale Corp.		60,544
			TOTAL		7,873,979
Shares or Principal Amount					Value
			COMMON STOCKS--continued
			Textiles, Apparel & Luxury Goods--1.0%
	65,400	1	Coach, Inc.	$	2,999,244
	6,400	1	Crocs, Inc.		322,176
			TOTAL		3,321,420
			Thrifts & Mortgage Finance--1.2%
	5,900		Downey Financial Corp.		422,086
	10,600		Federal Home Loan Mortgage Corp.		688,258
	3,500	1	FirstFed Financial Corp.		241,325
	12,000		MGIC Investment Corp.		740,640
	14,800		PMI Group, Inc.		707,736
	17,600		Radian Group, Inc.		1,059,872
			TOTAL		3,859,917
			Wireless Telecommunication Services--0.0%
	2,000	1	U.S. Cellular Corp.		144,200
			TOTAL COMMON STOCKS (IDENTIFIED COST $294,166,641)		318,868,699
			REPURCHASE AGREEMENT--1.9%
$	6,109,000		Interest in $250,000,000 joint repurchase agreement 5.23%, dated 1/31/2007 under which Mizuho Securities USA, Inc. will repurchase U.S. Treasury securities with various maturities to 2/15/2016 for $250,036,319 on 2/1/2007. The market value of the underlying securities at the end of the period was $255,000,001. (AT COST)		6,109,000
			TOTAL INVESTMENTS--100.0% (IDENTIFIED COST $300,275,641) 2		324,977,699
			OTHER ASSETS AND LIABILITIES - NET--(0.0)%		(74,679	)
			TOTAL NET ASSETS--100%	$	324,903,020

1 Non-income producing security.

2 Also represents cost for federal tax purposes.

Note: The categories of investments are shown as a percentage of total net assets at January 31, 2007.

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

January 31, 2007 (unaudited)

Assets:
Total investments in securities, at value (identified cost $300,275,641)			$	324,977,699
Cash				42,960
Income receivable				123,610
Receivable for investments sold				4,736,680
Receivable for shares sold				5,316,955
TOTAL ASSETS				335,197,904
Liabilities:
Payable for investments purchased	$	9,769,497
Payable for shares redeemed		199,665
Payable for administrative personnel and services fee (Note 5)		91,259
Payable for distribution services fee (Note 5)		49,816
Payable for shareholder services fee (Note 5)		88,478
Accrued expenses		96,169
TOTAL LIABILITIES				10,294,884
Net assets for 19,817,752 shares outstanding			$	324,903,020
Net Assets Consist of:
Paid-in capital			$	294,370,850
Net unrealized appreciation of investments				24,702,058
Accumulated net realized gain on investments				5,815,827
Undistributed net investment income				14,285
TOTAL NET ASSETS			$	324,903,020
Net Asset Value, Offering Price and Redemption Proceeds Per Share
Institutional Shares:
Net asset value per share ($57,592,731 ÷ 3,482,627 shares outstanding), no par value, unlimited shares authorized				$16.54
Offering price per share				$16.54
Redemption price per share				$16.54
Class A Shares:
Net asset value per share ($180,470,581 ÷ 10,992,407 shares outstanding), no par value, unlimited shares authorized				$16.42
Offering price per share (100/94.50 of $16.42) 1				$17.38
Redemption proceeds per share				$16.42
Class C Shares:
Net asset value per share ($86,839,610 ÷ 5,342,712 shares outstanding), no par value, unlimited shares authorized				$16.25
Offering price per share (100/99.00 of $16.25) 1				$16.41
Redemption proceeds per share (99.00/100 of $16.25) 1				$16.09
Class K Shares:
Net asset value per share ($98.36 ÷ 5.945 shares outstanding), no par value, unlimited shares authorized				$16.54
Offering price per share				$16.54
Redemption price per share				$16.54

1 See "What Do Shares Cost?" in the Prospectus.

See Notes which are an integral part of the Financial Statements

Statement of Operations

Six Months Ended January 31, 2007 (unaudited)

Investment Income:
Dividends							$	1,979,581
Interest								42,149
TOTAL INCOME								2,021,730
Expenses:
Investment adviser fee (Note 5)				$	961,714
Administrative personnel and services fee (Note 5)					115,945
Custodian fees					20,341
Transfer and dividend disbursing agent fees and expenses					251,095
Directors'/Trustees' fees					2,521
Auditing fees					10,838
Legal fees					4,537
Portfolio accounting fees					63,704
Distribution services fee--Class A Shares (Note 5)					117,862
Distribution services fee--Class C Shares (Note 5)					304,232
Shareholder services fee--Class A Shares (Note 5)					59,712
Shareholder services fee--Class C Shares (Note 5)					28,766
Share registration costs					45,157
Printing and postage					24,297
Insurance premiums					5,318
Miscellaneous					3,912
TOTAL EXPENSES					2,019,951
Waivers and Expenses Recovered:
Waiver of administrative personnel and services fee (Note 5)	$	(22,432	)
Waiver of transfer and dividend disbursing agent fees and expenses		(13,607	)
Expenses recovered by the Adviser (Note 5)		23,533
TOTAL WAIVERS AND EXPENSES RECOVERED					(12,506	)
Net expenses								2,007,445
Net investment income								14,285
Realized and Unrealized Gain on Investments:
Net realized gain on investments								6,481,876
Net change in unrealized appreciation of investments								23,039,670
Net realized and unrealized gain on investments								29,521,546
Change in net assets resulting from operations							$	29,535,831

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

		Six Months Ended (unaudited) 1/31/2007			Year Ended 7/31/2006
Increase (Decrease) in Net Assets
Operations:
Net investment income	$	14,285		$	13,180
Net realized gain on investments		6,481,876			9,146,627
Net change in unrealized appreciation/depreciation of investments		23,039,670			(7,090,736	)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		29,535,831			2,069,071
Distributions to Shareholders:
Distributions from net investment income
Institutional Shares		- --			(42,291	)
Class A Shares		- --			(10,715	)
Class C Shares		- --			- --
Class K Shares		- --			- --
Distributions from net realized gain on investments
Institutional Shares		(1,675,959	)		(2,304,161	)
Class A Shares		(5,228,169	)		(2,312,213	)
Class C Shares		(2,497,031	)		(117,957	)
Class K Shares		(3	)		- --
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS		(9,401,162	)		(4,787,337	)
Share Transactions:
Proceeds from sale of shares		127,563,949			136,005,478
Net asset value of shares issued to shareholders in payment of distributions declared		8,258,176			4,703,047
Cost of shares redeemed		(23,620,713	)		(19,541,548	)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		112,201,412			121,166,977
Change in net assets		132,336,081			118,448,711
Net Assets:
Beginning of period		192,566,939			74,118,228
End of period (including undistributed net investment income of $14,285 and $0, respectively)	$	324,903,020		$	192,566,939

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

January 31, 2007 (unaudited)

1. ORGANIZATION

Federated MDT Series (the "Trust") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Trust consists of eight portfolios. The financial statements included herein are only those of Federated MDT All Cap Core Fund (the "Fund"), a diversified portfolio. The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held. The Fund offers four classes of shares: Institutional Shares, Class A Shares, Class C Shares and Class K Shares. All shares of the Fund have equal rights with respect to voting, except on class-specific matters. The financial highlights of the Institutional Shares are presented separately. The primary investment objective of the Fund is long-term capital appreciation.

MDT All Cap Core Fund (the "Predecessor Fund") was reorganized into the Fund as of the close of business on December 8, 2006. Prior to the reorganization, the Fund had no investment operations. The Fund is the successor to the Predecessor Fund, which commenced offering Class C Shares on September 15, 2005. The Fund commenced offering Class K Shares on December 12, 2006.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with generally accepted accounting principles (GAAP) in the United States of America.

Investment Valuation

Market values of the Fund's portfolio securities are determined as follows:

• for equity securities, according to the last sale price or official closing price reported in the market in which they are primarily traded (either a national securities exchange or the over-the-counter market), if available;
• in the absence of recorded sales for equity securities, according to the mean between the last closing bid and asked prices;
• futures contracts and options are generally valued at market values established by the exchanges on which they are traded at the close of trading on such exchanges. Options traded in the over-the-counter market are generally valued according to the mean between the last bid and the last asked price for the option as provided by an investment dealer or other financial institution that deals in the option. The Board of Trustees (the "Trustees") may determine in good faith that another method of valuing such investments is necessary to appraise their fair market value;
• prices for total return swaps are furnished by an independent pricing service and are based upon a valuation model incorporating underlying reference indexes, interest rates, yield curves and other market data or factors. Prices for credit default swaps are furnished by an independent pricing service and are based upon a valuation model incorporating default probabilities, recovery rates and other market data or factors;
• for mortgage-backed securities, based on the aggregate investment value of the projected cash flows to be generated by the security, as furnished by an independent pricing service;
• for investments in other open-end regulated investment companies, based on net asset value (NAV);
• for other fixed-income securities, according to prices as furnished by an independent pricing service, except that fixed-income securities with remaining maturities of less than 60 days at the time of purchase are valued at amortized cost; and
• for all other securities at fair value as determined in accordance with procedures established by and under the general supervision of the Trustees.

Prices for fixed-income securities furnished by a pricing service may be based on a valuation matrix which incorporates both dealer-supplied valuations and electronic data processing techniques. Such prices (other than prices of mortgage-backed securities) are generally intended to be indicative of the bid prices currently offered to institutional investors for the securities except that prices for corporate fixed-income and asset-backed securities traded in the United States are generally intended to be indicative of the mean between such bid prices and asked prices. The Trustees have approved the use of such pricing services. A number of pricing services are available, and the Fund may use various pricing services or discontinue the use of any pricing service.

Prices provided by independent pricing services may be determined without relying exclusively on quoted prices and may consider institutional trading in similar groups of securities, yield, quality, stability, risk, coupon rate, maturity, type of issue, trading characteristics, and other market data or factors. From time to time, when prices cannot be obtained from an independent pricing service, securities may be valued based on quotes from broker-dealers or other financial institutions that trade the securities.

Trading in foreign securities may be completed at times which vary from the closing of the New York Stock Exchange (NYSE). In computing its NAV, the Fund values foreign securities using the latest closing price on the exchange on which they are traded immediately prior to the closing of the NYSE. Certain foreign currency exchange rates are generally determined at the latest rate prior to the closing of the NYSE. Foreign securities quoted in foreign currencies are translated into U.S. dollars at current rates. Events that affect these values and exchange rates may occur between the times at which they are determined and the closing of the NYSE. If such events materially affect the value of portfolio securities, these securities may be valued at their fair value as determined in good faith by the Trustees, although the actual calculation may be done by others.

Repurchase Agreements

It is the policy of the Fund to require the other party to a repurchase agreement to transfer to the Fund's custodian or sub-custodian eligible securities or cash with a market value (after transaction costs) at least equal to the repurchase price to be paid under the repurchase agreement. The eligible securities are transferred to accounts with the custodian or sub-custodian in which the Fund holds a "securities entitlement" and exercises "control" as those terms are defined in the Uniform Commercial Code. The Fund has established procedures for monitoring the market value of the transferred securities and requiring the transfer of additional eligible securities if necessary to equal at least the repurchase price. These procedures also allow the other party to require securities to be transferred from the account to the extent that their market value exceeds the repurchase price or in exchange for other eligible securities of equivalent market value.

With respect to agreements to repurchase U.S. government securities and cash items, the Fund treats the repurchase agreement as an investment in the underlying securities and not as an obligation of the other party to the repurchase agreement. Other repurchase agreements are treated as obligations of the other party secured by the underlying securities. Nevertheless, the insolvency of the other party or other failure to repurchase the securities may delay the disposition of the underlying securities or cause the Fund to receive less than the full repurchase price. Under the terms of the repurchase agreement, any amounts received by the Fund in excess of the repurchase price and related transaction costs must be remitted to the other party.

The Fund may enter into repurchase agreements in which eligible securities are transferred into joint trading accounts maintained by the custodian or sub-custodian for investment companies and other clients advised by the Fund's adviser and its affiliates. The Fund will participate on a pro rata basis with the other investment companies and clients in its share of the securities transferred under such repurchase agreements and in its share of proceeds from any repurchase or other disposition of such securities.

Investment Income, Gains and Losses, Expenses and Distributions

Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Distributions of net investment income, if any, are declared and paid annually. Non-cash dividends included in dividend income, if any, are recorded at fair value. Investment income, realized and unrealized gains and losses, and certain fund-level expenses are allocated to each class based on relative average daily net assets, except that each class bears certain expenses unique to that class such as distribution and shareholder services fees. Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses.

Premium and Discount Amortization

All premiums and discounts on fixed-income securities are amortized/accreted for financial statement purposes.

Federal Taxes

It is the Fund's policy to comply with the Subchapter M provision of the Internal Revenue Code (the "Code") and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal income tax is necessary.

When-Issued and Delayed Delivery Transactions

The Fund may engage in when-issued or delayed delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated.

Other

Investment transactions are accounted for on a trade date basis. Realized gains and losses from investment transactions are recorded on an identified cost basis.

3. SHARES OF BENEFICIAL INTEREST

The following tables summarize share activity:

	Six Months Ended 1/31/2007					Year Ended 7/31/2006
Institutional Shares:	Shares			Amount		Shares			Amount
Shares sold	853,833		$	13,950,526		353,848		$	5,425,707
Shares issued to shareholders in payment of distributions declared	90,311			1,481,998		153,643			2,324,618
Shares redeemed	(273,142	)		(4,381,116	)	(553,530	)		(8,427,259	)
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS	671,002		$	11,051,408		(46,039	)	$	(676,934	)
	Six Months Ended 1/31/2007					Year Ended 7/31/2006
Class A Shares:	Shares			Amount		Shares			Amount
Shares sold	4,981,791		$	78,961,210		5,300,192		$	80,863,412
Shares issued to shareholders in payment of distributions declared	300,058			4,887,950		150,057			2,261,363
Shares redeemed	(1,033,065	)		(16,421,303	)	(694,341	)		(10,529,747	)
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS	4,248,784		$	67,427,857		4,755,908		$	72,595,028
	Six Months Ended 1/31/2007					Period Ended 7/31/2006 1
Class C Shares:	Shares			Amount		Shares			Amount
Shares sold	2,190,593		$	34,652,113		3,245,159		$	49,716,359
Shares issued to shareholders in payment of distributions declared	116,918			1,888,228		7,778			117,066
Shares redeemed	(178,693	)		(2,818,294	)	(39,043	)		(584,542	)
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS	2,128,818		$	33,722,047		3,213,894		$	49,248,883
	Period Ended 1/31/2007 2					Year Ended 7/31/2006
Class K Shares:	Shares			Amount		Shares			Amount
Shares sold	6		$	100		- --		$	- --
NET CHANGE RESULTING FROM CLASS K SHARE TRANSACTIONS	6		$	100		- --		$	- --
NET CHANGE RESULTING FROM SHARE TRANSACTIONS	7,048,610		$	112,201,412		7,923,763		$	121,166,977

1 Reflects operations for the period from September 15, 2005 (date of initial public investment) to July 31, 2006.

2 Reflects operations for the period from December 12, 2006 (date of initial public investment) to January 31, 2007.

4. FEDERAL TAX INFORMATION

At January 31, 2007, the cost of investments for federal tax purposes was $300,275,641. The net unrealized appreciation of investments for federal tax purposes was $24,702,058. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $26,851,859 and net unrealized depreciation from investments for those securities having an excess of cost over value of $2,149,801.

5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated MDTA LLC, the Fund's investment adviser (the "Adviser"), receives for its services an annual investment adviser fee equal to 0.75% of the Fund's average daily net assets. Under the investment advisory contract, the Adviser is contractually obligated to waive, to the extent of its adviser fee, the amount, if any, by which the Fund's annual operating expenses exceed the following levels for each Class of the Fund:

Share Class	Percentage of Average Daily Net Assets of Class
Institutional Shares	1.25%
Class A Shares	1.50%
Class C Shares	2.25%

The Adviser has agreed to keep these contractual limitations in place through December 8, 2008.

In addition, after fulfilling its contractual commitment, the Adviser may voluntarily choose to waive and/or reimburse any additional portion of its fee. The Adviser can modify or terminate this voluntary waiver and/or reimbursement at any time at its sole discretion.

For a period of three years after the fiscal year in which the Adviser waived or reimbursed Fund expenses, the Adviser may seek reimbursement from the Fund to the extent that the Fund's total annual operating expenses are less than the expense limitation. Due to the reorganization of the Fund, any expenses waived or reimbursed by the Adviser after December 8, 2006 may not be recovered by the Adviser.

Expenses waived/reimbursed by the Fund are subject to potential recovery by year of expiration as follows:

Expires July 31	Expiration Amount
2007	$ 29,828
2008	$ 24,400
2009	$ 55,328
TOTAL	$109,556

For the six months ended January 31, 2007, the Adviser recovered $23,533 of its fee.

Administrative Fee

Federated Administrative Services (FAS), under the Administrative Services Agreement (the "Agreement"), provides the Fund with administrative personnel and services. The fee paid to FAS is based on the average aggregate daily net assets of certain Federated funds as specified below:

Administrative Fee	Average Aggregate Daily Net Assets of the Federated Funds
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

The administrative fee received during any fiscal year shall be at least $150,000 per portfolio and $40,000 per each additional class of Shares. During the period from July 15, 2006 through December 8, 2006, the administrator contractually agreed to waive the portion of its fee which it would otherwise be entitled to receive from the Fund under the Agreement. The level of fees payable by the Fund to FAS for the period will not exceed the level of fees which the Fund would have paid during the period to its previous service provider under its previous administrative services contract. In addition, FAS may voluntarily choose to waive any portion of its fee. FAS can modify or terminate this voluntary waiver at any time at its sole discretion. For the six months ended January 31, 2007, the net fee paid to FAS was 0.073% of average aggregate daily net assets of the Fund.

Distribution Services Fee

The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will compensate Federated Securities Corp. (FSC), the principal distributor, from the daily net assets of the Fund's Class A Shares, Class C Shares and Class K Shares to finance activities intended to result in the sale of these shares. The Plan provides that the Fund may incur distribution expenses according to the following schedule annually, to compensate FSC:

Share Class	Percentage of Average Daily Net Assets of Class
Class A Shares	0.25%
Class C Shares	0.75%
Class K Shares	0.50%

Prior to December 11, 2006, the Fund incurred distribution expenses according to the following schedule annually, to compensate FSC:

Share Class	Percentage of Average Daily Net Assets of Class
Class A Shares	0.25%
Class C Shares	1.00%

FSC may voluntarily choose to waive any portion of its fee. FSC can modify or terminate this voluntary waiver at any time at its sole discretion. When FSC receives fees, it may pay some or all of them to financial intermediaries whose customers purchase shares. For the six months ended January 31, 2007, FSC retained $260,963 of fees paid by the Fund.

Sales Charges

For the six months ended January 31, 2007, FSC, the principal distributor, retained $23,921 in sales charges from the sale of Class A Shares. FSC also retained $15,373 of contingent deferred sales charges relating to redemptions of Class C Shares. See "What Do Shares Cost?" in the Prospectus.

Shareholder Services Fee

Effective December 11, 2006, the Fund may pay fees (Service Fees) up to 0.25% of the average daily net assets of the Fund's Class A Shares and Class C Shares to financial intermediaries or to Federated Shareholder Services Company (FSSC) for providing services to shareholders and maintaining shareholder accounts. FSSC or these financial intermediaries may voluntarily choose to waive a portion of their fee. In addition, FSSC may voluntarily reimburse the Fund for shareholder services fees. This voluntary waiver and/or reimbursement can be modified or terminated at any time. For the six months ended January 31, 2007, FSSC did not receive any fees paid by the Fund.

General

Certain of the Officers and Trustees of the Trust are Officers and Directors or Trustees of the above companies.

6. INVESTMENT TRANSACTIONS

Purchases and sales of investments, excluding long-term U.S. government securities and short-term obligations, for the six months ended January 31, 2007, were as follows:

Purchases	$	355,190,707
Sales	$	255,394,192

7. LINE OF CREDIT

The Trust entered into a $150,000,000 unsecured, uncommitted revolving line of credit (LOC) agreement with PNC Bank. The LOC was made available for extraordinary or emergency purposes, primarily for financing redemption payments. Borrowings are charged interest at a rate of 0.65% over the federal funds rate. As of January 31, 2007, there were no outstanding loans. During the six months ended January 31, 2007, the Fund did not utilize the LOC.

8. LEGAL PROCEEDINGS

Beginning in October 2003, Federated Investors, Inc. and various subsidiaries thereof (including the advisers and distributor for various investment companies, collectively, "Federated"), along with various investment companies sponsored by Federated ("Funds") were named as defendants in several class action lawsuits now pending in the United States District Court for the District of Maryland. The lawsuits were purportedly filed on behalf of people who purchased, owned and/or redeemed shares of Federated-sponsored mutual funds during specified periods beginning November 1, 1998. The suits are generally similar in alleging that Federated engaged in illegal and improper trading practices including market timing and late trading in concert with certain institutional traders, which allegedly caused financial injury to the mutual fund shareholders. These lawsuits began to be filed shortly after Federated's first public announcement that it had received requests for information on shareholder trading activities in the Funds from the Securities and Exchange Commission ("SEC"), the Office of the New York State Attorney General ("NYAG"), and other authorities. In that regard, on November 28, 2005, Federated announced that it had reached final settlements with the SEC and the NYAG with respect to those matters. As Federated previously reported in 2004, it has already paid approximately $8.0 million to certain funds as determined by an independent consultant. As part of these settlements, Federated agreed to pay for the benefit of fund shareholders additional disgorgement and a civil money penalty in the aggregate amount of an additional $72 million. Federated and various Funds have also been named as defendants in several additional lawsuits, the majority of which are now pending in the United States District Court for the Western District of Pennsylvania, alleging, among other things, excessive advisory and Rule 12b-1 fees. The Board of the Funds has retained the law firm of Dickstein Shapiro LLP to represent the Funds in these lawsuits. Federated and the Funds, and their respective counsel, are reviewing the allegations and intend to defend this litigation. Additional lawsuits based upon similar allegations may be filed in the future. The potential impact of these lawsuits, all of which seek unquantified damages, attorneys' fees and expenses, and future potential similar suits is uncertain. Although we do not believe that these lawsuits will have a material adverse effect on the Funds, there can be no assurance that these suits, the ongoing adverse publicity and/or other developments resulting from the regulatory investigations will not result in increased Fund redemptions, reduced sales of Fund shares, or other adverse consequences for the Funds.

9. RECENT ACCOUNTING PRONOUNCEMENTS

In July 2006, the Financial Accounting Standards Board (FASB) released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" (FIN 48). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax benefits of positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax expense in the current year. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years of the Fund no later than January 30, 2008. At this time, management is evaluating the implications of FIN 48 and its impact in the financial statements has not yet been determined.

In addition, in September 2006, FASB released Statement on Financial Accounting Standards No. 157, "Fair Value Measurements" (FAS 157) which is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of FAS 157 will have on the Funds' financial statement disclosures.

Evaluation and Approval of Advisory Contract

FEDERATED MDT ALL CAP CORE FUND (THE "FUND")

The Fund's Board reviewed the Fund's investment advisory contract at meetings held in May and June 2006. The Board's decision to approve the contract reflects the exercise of its business judgment on whether to authorize the creation and offering of this new investment vehicle, as proposed by, and based on information provided by, the Federated organization, and based on Federated's recommendation to go forward with establishment of the Fund.

Federated proposed the creation of the Fund in connection with its acquisition of MDTA LLC (the "Acquisition"), the investment adviser to the MDT All Cap Core Fund (the "Predecessor Fund"). As part of that transaction, Federated proposed that the Predecessor Fund be reorganized with and into the Fund in a tax-free reorganization (the "Proposed Reorganization"), which would provide shareholders of the Predecessor Fund the opportunity to become shareholders of a fund with substantially similar investment objectives and policies and the same portfolio manager(s) as the Predecessor Fund, but with sales, distribution and other shareholder services offered by the funds managed and distributed by affiliates of Federated.

Prior to the meeting, the Adviser had recommended that the Federated Funds appoint a Senior Officer, whose duties include specified responsibilities relating to the process by which advisory fees are to be charged to a Federated Fund. The Senior Officer appointed by the Funds has the authority to retain consultants, experts, or staff as may be reasonably necessary to assist in the performance of his duties, reports directly to the Board, and may be terminated only with the approval of a majority of the independent members of the Board. The Senior Officer prepared and furnished to the Board an independent written evaluation that covered topics discussed below, which the Board considered, along with other information, in deciding to approve the advisory contract.

The Board also considered the anticipated compensation and benefits to be received by the Adviser. This includes fees to be received for services provided to the Fund by other entities in the Federated organization and research services that may be received by the Adviser from brokers that execute fund trades, as well as advisory fees. The Board is also familiar with judicial decisions concerning allegedly excessive investment advisory fees which have indicated that the following factors may be relevant to an Adviser's fiduciary duty with respect to its receipt of compensation from a fund: the nature and quality of the services provided by the Adviser, including the performance of the Fund; the Adviser's cost of providing the services; the extent to which the Adviser may realize "economies of scale" as the Fund grows larger; any indirect benefits that may accrue to the Adviser and its affiliates as a result of the Adviser's relationship with the Fund; performance and expenses of comparable funds; and the extent to which the independent Board members are fully informed about all facts the Board deems relevant bearing on the Adviser's services and fees. The Board further considered management fees (including any components thereof) charged to institutional and other clients of the Adviser for like services and costs to the Adviser and its affiliates of supplying services pursuant to the management fee agreements, excluding any intra-corporate profit and profit margins of the Adviser and its affiliates from supplying such services. The Board was aware of these considerations and was guided by them in its review of the Fund's advisory contract to the extent they are appropriate and relevant, as discussed further below.

The Board considered and weighed these circumstances in light of its substantial accumulated experience in working with Federated on matters relating to other Federated Funds, and was assisted in its deliberations by the advice of independent legal counsel. The Board's consideration of the advisory contract included review of the Senior Officer's evaluation, accompanying data and additional reports covering such matters as: the Adviser's investment philosophy, revenue, profitability, personnel and processes; investment and operating strategies; the Fund's investment objectives; the Fund's expenses (including the advisory fee itself and the overall expense structure of the Fund, both in absolute terms and relative to similar and/or competing funds, with due regard for contractual or voluntary expense limitations); the nature, quality and extent of the advisory and other services to be provided to the Fund by the Adviser and its affiliates; the preferences and expectations of Fund shareholders and their relative sophistication; the continuing state of competition in the mutual fund industry and market practices; the range of comparable fees for similar funds in the mutual fund industry; the Fund's relationship to the Federated family of funds which include a comprehensive array of funds with different investment objectives, policies and strategies which are available for exchange without the incurrence of additional sales charges; compliance and audit reports concerning the Federated Funds and the Federated companies that service them (including communications from regulatory agencies), as well as Federated's responses to any issues raised therein; and relevant developments in the mutual fund industry and how the Federated Funds and/or Federated are responding to them. The Board's evaluation process is evolutionary. The criteria considered and the emphasis placed on relevant criteria change in recognition of changing circumstances in the mutual fund marketplace.

With respect to the Fund's expenses in particular, the Board has found the use of comparisons to other mutual funds with comparable investment programs to be particularly useful, given the high degree of competition in the mutual fund business. The Board focused on comparisons with other similar mutual funds more heavily than non-mutual fund products or services because, simply put, they are more relevant. For example, other mutual funds are the products most like the Fund, they are readily available to Fund shareholders as alternative investment vehicles, and they are the type of investment vehicle in fact chosen and maintained by the Fund's anticipated investors. The range of their fees and expenses therefore appears to be a generally reliable indication of what consumers have found to be reasonable in the precise marketplace in which the Fund will compete. In this regard, the Senior Officer also reviewed Federated's fees for providing advisory services to products outside the Federated family of funds (e.g., institutional and separate accounts). He concluded that mutual funds and institutional accounts are inherently different products. Those differences included, but are not limited to targeting different investors, being subject to different laws and regulations, different legal structure, distribution costs, average account size and portfolio management techniques made necessary by different cash flows. The Senior Officer did not consider these fee schedules to be significant in determining the appropriateness of mutual fund advisory contracts.

The Senior Officer reviewed reports compiled by Federated and directed the preparation of reports regarding the performance of, and fees charged by other mutual funds, noting his view that comparisons to fund peer groups is of significance in judging the reasonableness of proposed fees.

Because the Fund will employ the same portfolio managers and investment techniques, the Board reviewed the Predecessor Fund's performance compared to its peer group as an indicator of how the Adviser will execute the Fund's investment program, which in turn assisted the Board in reaching a conclusion that the nature, extent, and quality of the Adviser's investment management services were such as to warrant approval of the advisory contract. The Board noted that the performance of the Predecessor Fund and/or accounts managed by MDTA LLC with substantially similar investment objectives and policies was above the median of its relevant peer group for the one- and three-year periods reviewed.

The Senior Officer noted that the Fund's quantitative focus made it difficult to compare its fees and expenses to other peers, which varied widely in their complexity. He observed that the management of the Fund is among the more complex, relative to its peers and, consequently, that the advisory fee and projected net total expenses are at the high end compared to such peers. The Board reviewed the proposed fees and other expenses of the Fund with the Adviser and was satisfied that the proposed overall expense structure of the Fund appeared competitive. The Board will continue to monitor advisory fees and other expenses borne by the Fund. No changes were recommended to, and no objection was raised to the proposed advisory contract, and the Senior Officer noted that Federated proposed to provide appropriate administrative services to the Fund for the anticipated fees. The Board concluded that the nature, quality and scope of services to be provided to the Fund by the Adviser and its affiliates were satisfactory.

The Board also considered possible indirect benefits that may accrue to the Adviser and its affiliates as a result of the Acquisition. Other indirect benefits that may accrue to the Adviser and its affiliates as a result of the Adviser's relationship with the Fund are essentially impossible to apply before the Fund has experienced any meaningful operating history. Nevertheless, in connection with the Board's governance of other Federated Funds, it should be noted that the Board regularly receives financial information about Federated, including reports on the compensation and benefits Federated derives from its relationships with the other Federated Funds. These reports cover not only the fees under the advisory contracts, but also fees received by Federated's subsidiaries for providing other services to the Federated Funds under separate contracts (e.g., for serving as the Federated funds' administrator). The reports also discuss any indirect benefit Federated may derive from its receipt of research services from brokers who execute Federated fund trades, as well as waivers of fees and/or reimbursements of expenses. In order for a fund to be competitive in the marketplace, Federated and its affiliates frequently waive fees and/or reimburse expenses and have indicated to the Board their intention to do so in the future, where appropriate. It was noted in this regard that the Adviser has agreed to limit the expenses of each class of the Fund at specified amounts for a two-year period commencing on the date the Proposed Reorganization is consummated.

Federated furnished reports, requested by the Senior Officer, that made estimates of the allocation of expenses on a fund by fund basis, using allocation methodologies specified by the Senior Officer. The Senior Officer noted that, although they may apply consistent allocation processes, the inherent difficulties in allocating costs and the lack of consensus on how to allocate those costs causes such allocation reports to be of questionable value. The allocation reports were considered in the analysis by the Board but were determined to be of limited use.

The Board also reviewed profitability information for Federated and other publicly held fund management companies, provided by the Senior Officer, who noted the limited availability of such information, and concluded that Federated's profit margins did not appear to be excessive.

The Senior Officer's evaluation also discussed the notion of possible realization of "economies of scale" as a fund grows larger. The Board considered in this regard that the Adviser has made significant additional investments in the portfolio management and distribution efforts supporting all of the Federated Funds and that the benefits of any economies, should they exist, were likely to be enjoyed by the fund complex as a whole. Finally, the Board also noted the absence of any applicable regulatory or industry guidelines on this subject, which is compounded by the lack of any common industry practice or general pattern with respect to structuring fund advisory fees with "breakpoints" that serve to reduce the fee as the fund attains a certain size. The Senior Officer did not recommend institution of breakpoints in pricing Federated's fund advisory services at this time.

The Board based its decision to approve the advisory contract on the totality of the circumstances and relevant factors, and with a view to past and future long-term considerations. As noted, not all of the factors and considerations identified above were relevant to the Fund, nor does the Board consider any one of them to be determinative. With respect to the factors that are relevant, the Board's decision to approve the contract reflects its determination that, based upon the information requested and supplied, Federated's proposal to establish and manage the Fund, and its past performance and actions in providing services to other mutual funds, provide a satisfactory basis to support the business decision to approve the proposed arrangements.

Voting Proxies on Fund Portfolio Securities

A description of the policies and procedures that the Fund uses to determine how to vote proxies, if any, relating to securities held in the Fund's portfolio is available, without charge and upon request, by calling 1-800-341-7400. A report on "Form N-PX" of how the Fund voted any such proxies during the most recent 12-month period ended June 30 is available through Federated's website. Go to FederatedInvestors.com, select "Products," select the "Prospectuses and Regulatory Reports" link, then select the Fund to access the link to Form N-PX. This information is also available from the EDGAR database on the SEC's website at www.sec.gov.

Quarterly Portfolio Schedule

The Fund files with the SEC a complete schedule of its portfolio holdings, as of the close of the first and third quarters of its fiscal year, on "Form N-Q." These filings are available on the SEC's website at www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. (Call 1-800-SEC-0330 for information on the operation of the Public Reference Room.) You may also access this information from the "Products" section of the Federated Investors website at FederatedInvestors.com by clicking on "Portfolio Holdings" and selecting the name of the Fund, or by selecting the name of the Fund and clicking on "Portfolio Holdings." You must register on the website the first time you wish to access this information.

Mutual funds are not bank deposits or obligations, are not guaranteed by any bank, and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other government agency. Investment in mutual funds involves investment risk, including the possible loss of principal.

This report is authorized for distribution to prospective investors only when preceded or accompanied by the Fund's prospectus, which contains facts concerning its objective and policies, management fees, expenses, and other information.

IMPORTANT NOTICE ABOUT FUND DOCUMENT DELIVERY

In an effort to reduce costs and avoid duplicate mailings, the Fund(s) intend to deliver a single copy of certain documents to each household in which more than one shareholder of the Fund(s) resides (so-called "householding"), as permitted by applicable rules. The Fund's "householding" program covers its/their Prospectus and Statement of Additional Information, and supplements to each, as well as Semi-Annual and Annual Shareholder Reports and any Proxies or information statements. Shareholders must give their written consent to participate in the "householding" program. The Fund is also permitted to treat a shareholder as having given consent ("implied consent") if (i) shareholders with the same last name, or believed to be members of the same family, reside at the same street address or receive mail at the same post office box, (ii) the Fund gives notice of its intent to "household" at least sixty (60) days before it begins "householding" and (iii) none of the shareholders in the household have notified the Fund(s) or their agent of the desire to "opt out" of "householding." Shareholders who have granted written consent, or have been deemed to have granted implied consent, can revoke that consent and opt out of "householding" at any time: shareholders who purchased shares through an intermediary should contact their representative; other shareholders may call the Fund at 1-800-341-7400.

Federated Securities Corp., Distributor

Cusip 31421R106
Cusip 31421R205
Cusip 31421R718

36361 (3/07)

Federated is a registered mark of Federated Investors, Inc. 2007 (c)Federated Investors, Inc.

Federated
World-Class Investment Manager

Federated MDT All Cap Core Fund

A Portfolio of Federated MDT Series

SEMI-ANNUAL SHAREHOLDER REPORT

January 31, 2007

Institutional Shares

FINANCIAL HIGHLIGHTS
SHAREHOLDER EXPENSE EXAMPLE
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
PORTFOLIO OF INVESTMENTS
STATEMENT OF ASSETS AND LIABILITIES
STATEMENT OF OPERATIONS
STATEMENT OF CHANGES IN NET ASSETS
NOTES TO FINANCIAL STATEMENTS
EVALUATION AND APPROVAL OF ADVISORY CONTRACT
VOTING PROXIES ON FUND PORTFOLIO SECURITIES
QUARTERLY PORTFOLIO SCHEDULE

Not FDIC Insured * May Lose Value * No Bank Guarantee

Financial Highlights

(For a Share Outstanding Throughout Each Period)

	Six Months Ended (unaudited)			Year Ended July 31,
	1/31/2007	1		2006	2		2005			2004			2003	2,3
Net Asset Value, Beginning of Period	$15.17			$15.32			$13.55			$11.76			$10.00
Income From Investment Operations:
Net investment income	0.03	4		0.05	4		0.03	4		0.04			0.03
Net realized and unrealized gain on investments	1.88			0.70			2.87			2.05			1.75
TOTAL FROM INVESTMENT OPERATIONS	1.91			0.75			2.90			2.09			1.78
Less Distributions:
Distributions from net investment income	- --			(0.02	)		(0.05	)		(0.03	)		(0.01	)
Distributions from net realized gain on investments	(0.54	)		(0.88	)		(1.08	)		(0.27	)		(0.01	)
TOTAL DISTRIBUTIONS	(0.54	)		(0.90	)		(1.13	)		(0.30	)		(0.02	)
Net Asset Value, End of Period	$16.54			$15.17			$15.32			$13.55			$11.76
Total Return 5	12.60	%		4.85	%		22.14	%		17.78	%		17.75	%
Ratios to Average Net Assets:
Net expenses	1.16	% 6		1.25	%		1.25	%		1.25	%		1.33	% 6
Net investment income	0.42	% 6		0.28	%		0.23	%		0.30	%		0.37	% 6
Expense waiver/reimbursement 7	0.01	% 6		0.05	%		0.04	%		0.15	%		0.85	% 6
Supplemental Data:
Net assets, end of period (000 omitted)	$57,593		$42,656			$43,782			$31,532			$23,455
Portfolio turnover	101	%		212	%		204	%		96	%		172	% 8

1 MDT All Cap Core Fund (the "Predecessor Fund") was reorganized into Federated MDT All Cap Core Fund (the "Fund"), as of the close of business on December 8, 2006. Prior to the reorganization, the Fund had no investment operations. The Fund is the successor to the Predecessor Fund. The performance information and financial information presented incorporates the operations of the Predecessor Fund, which, as a result of the reorganization, are the Fund's operations.

2 The year ended July 31, 2006 and the period ended July 31, 2003 were audited by Ernst & Young LLP. The year ended July 31, 2004 and 2005 were audited by another independent registered public accounting firm.

3 Reflects operations for the period from October 1, 2002 (date of initial public investment) to July 31, 2003.

4 Per share numbers have been calculated using the average shares method.

5 Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. Total returns for periods of less than one year are not annualized.

6 Computed on an annualized basis.

7 This expense decrease is reflected in both the net expense and the net investment income ratios shown above.

8 Portfolio turnover is calculated at the Fund level. Percentage indicated was calculated for the year ended July 31, 2003.

See Notes which are an integral part of the Financial Statements

Shareholder Expense Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; to the extent applicable, distribution (12b-1) fees and/or shareholder services fees; and other Fund expenses. This Example is intended to help you to understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. It is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from August 1, 2006 to January 31, 2007.

ACTUAL EXPENSES

The first section of the table below provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you incurred over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled "Expenses Paid During Period" to estimate the expenses attributable to your investment during this period.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

The second section of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. Thus, you should not use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are required to be provided to enable you to compare the ongoing costs of investing in the Fund with other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.

	Beginning Account Value 8/1/2006	Ending Account Value 1/31/2007	Expenses Paid During Period 1
Actual	$1,000	$1,126.00	$6.22
Hypothetical (assuming a 5% return before expenses)	$1,000	$1,019.36	$5.90

1 Expenses are equal to the Fund's annualized net expense ratio of 1.16%, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

Portfolio of Investments Summary Table

At January 31, 2007, the Fund's industry composition ¹ was as follows:

Industry	Percentage of Total Net Assets
Insurance	17.6	%
Oil, Gas & Consumable Fuels	11.7	%
Capital Markets	8.3	%
Commercial Banks	6.9	%
Household Products	5.5	%
Energy Equipment & Services	5.0	%
Media	5.0	%
Health Care Equipment & Supplies	2.6	%
Health Care Providers & Services	2.5	%
Computers & Peripherals	2.4	%
Specialty Retail	2.4	%
Industrial Conglomerates	1.9	%
Chemicals	1.7	%
Pharmaceuticals	1.7	%
Road & Rail	1.6	%
Diversified Financial Services	1.4	%
IT Services	1.3	%
Food Products	1.2	%
Household Durables	1.2	%
Thrifts & Mortgage Finance	1.2	%
Aerospace & Defense	1.0	%
Biotechnology	1.0	%
Commercial Services & Supplies	1.0	%
Multiline Retail	1.0	%
Textiles, Apparel & Luxury Goods	1.0	%
Other 2	10.0	%
Cash Equivalents 3	1.9	%
Other Assets and Liabilities-Net 4	(0.0	)%
TOTAL	100.0	%

1 Except for Cash Equivalents and Other Assets and Liabilities, industry classifications are based upon, and individual securities are assigned to, the classifications of the Global Industry Classification Standard (GICS) except that the adviser assigns a classification to securities not classified by the GICS and to securities for which the adviser does not have access to the classification made by the GICS.

2 For purposes of this table, industry classifications which constitute less than 1.0% of the Fund's total net assets have been aggregated under the designation "Other".

3 Cash Equivalents include any investments in money market mutual funds and/or any overnight repurchase agreements.

4 Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities.

Portfolio of Investments

January 31, 2007 (unaudited)

Shares					Value
			COMMON STOCKS--98.1%
			Aerospace & Defense--1.0%
	2,400		American Commercial Lines, Inc.	$	169,056
	2,600		Goodrich (B.F.) Co.		127,452
	4,600		Lockheed Martin Corp.		447,074
	7,400		Northrop Grumman Corp.		524,956
	22,900		Raytheon Co.		1,188,510
	900		Rockwell Collins		61,389
	8,800		United Technologies Corp.		598,576
			TOTAL		3,117,013
			Air Freight & Logistics--0.0%
	4,300	1	Hub Group, Inc.		128,398
			Biotechnology--1.0%
	4,700	1	Cephalon, Inc.		340,327
	24,100	1	Genentech, Inc.		2,105,617
	20,400	1	Medimmune, Inc.		707,064
			TOTAL		3,153,008
			Building Products--0.2%
	15,800		American Standard Cos.		780,362
			Capital Markets--8.3%
	2,700	1	Affiliated Managers Group, Inc.		300,780
	5,200		Ameriprise Financial, Inc.		306,592
	23,400		Bear Stearns & Co., Inc.		3,857,490
	13,200		Janus Capital Group, Inc.		270,336
	3,600		Lehman Brothers Holdings, Inc.		296,064
	94,200		Merrill Lynch & Co., Inc.		8,813,352
	157,300		Morgan Stanley		13,022,867
			TOTAL		26,867,481
			Chemicals--1.7%
	2,800		Ashland, Inc.		194,740
	123,200		Dow Chemical Co.		5,117,728
	8,900	1	Nalco Holding Co.		204,611
	1		Tronox, Inc., Class B		14
			TOTAL		5,517,093
Shares					Value
			COMMON STOCKS--continued
			Commercial Banks--6.9%
	1,700		City National Corp.	$	122,281
	30,400		Comerica, Inc.		1,802,720
	15,400		Fifth Third Bancorp		614,460
	3,200		Huntington Bancshares, Inc.		74,496
	273,400		J.P. Morgan Chase & Co.		13,924,262
	46,713		KeyCorp		1,783,035
	60,300		National City Corp.		2,282,355
	15,400		SunTrust Banks, Inc.		1,279,740
	10,800		UnionBanCal Corp.		697,896
			TOTAL		22,581,245
			Commercial Services & Supplies--1.0%
	2,200		Brinks Co. (The)		136,730
	4,400		Dun & Bradstreet Corp.		374,000
	6,700		Equifax, Inc.		278,251
	8,200		Miller Herman, Inc.		308,320
	15,700		Pitney Bowes, Inc.		751,559
	24,000		Robert Half International, Inc.		976,800
	6,400	1	TeleTech Holdings, Inc.		172,480
	2,900	1	United Stationers, Inc.		147,784
	3,200	1	Waste Connections, Inc.		139,424
			TOTAL		3,285,348
			Communications Equipment--0.5%
	6,700	1	Comverse Technology, Inc.		129,645
	3,600	1	F5 Networks, Inc.		257,184
	56,400		Motorola, Inc.		1,119,540
			TOTAL		1,506,369
			Computers & Peripherals--2.4%
	72,800	1	Apple, Inc.		6,241,144
	42,200	1	Network Appliance, Inc.		1,586,720
			TOTAL		7,827,864
			Construction Materials--0.3%
	1,700		Texas Industries, Inc.		124,814
	8,600		Vulcan Materials Co.		875,824
			TOTAL		1,000,638
Shares					Value
			COMMON STOCKS--continued
			Consumer Finance--0.4%
	23,800	1	Americredit Corp.	$	645,932
	11,300	1	First Marblehead Corp.		614,720
			TOTAL		1,260,652
			Containers & Packaging--0.3%
	7,200	1	Crown Holdings, Inc.		158,904
	3,200		Sealed Air Corp.		210,880
	9,100		Temple-Inland, Inc.		454,454
			TOTAL		824,238
			Diversified Consumer Services--0.2%
	3,500	1	ITT Educational Services, Inc.		271,600
	8,100	1	Weight Watchers International, Inc.		437,643
			TOTAL		709,243
			Diversified Financial Services--1.4%
	43,800		CIT Group, Inc.		2,582,448
	1,500		Chicago Mercantile Exchange Holdings, Inc.		844,950
	17,400		Moody's Corp.		1,245,144
			TOTAL		4,672,542
			Diversified Telecommunication Services--0.6%
	32,600		Embarq Corp.		1,809,626
			Electric Utilities--0.8%
	18,400	1	Allegheny Energy, Inc.		855,968
	13,600		Edison International		611,728
	7,700		FirstEnergy Corp.		456,841
	7,100		Portland General Electric Co.		185,594
	22,900	1	Reliant Resources, Inc.		340,752
			TOTAL		2,450,883
			Electrical Equipment--0.8%
	56,800		Honeywell International, Inc.		2,595,192
	2,100		Roper Industries, Inc.		109,032
			TOTAL		2,704,224
			Electronic Equipment & Instruments--0.8%
	12,700		Amphenol Corp., Class A		860,044
	25,200	1	Avnet, Inc.		782,460
	5,000		Daktronics, Inc.		172,850
Shares					Value
			COMMON STOCKS--continued
			Electronic Equipment & Instruments--continued
	20,500	1	Ingram Micro, Inc., Class A	$	399,955
	8,100		National Instruments Corp.		233,361
	200	1	Tech Data Corp.		7,428
			TOTAL		2,456,098
			Energy Equipment & Services--5.0%
	13,600	1	Cameron International Corp.		714,000
	1,000	1	FMC Technologies, Inc.		61,930
	6,500		GlobalSantaFe Corp.		377,065
	8,400	1	Oceaneering International, Inc.		331,548
	19,500		Patterson-UTI Energy, Inc.		470,925
	184,700		Schlumberger Ltd.		11,726,603
	2,200	1	Seacor Holdings, Inc.		222,706
	29,500	1	Transocean Sedco Forex, Inc.		2,282,415
			TOTAL		16,187,192
			Food & Staples Retailing--0.5%
	20,700		Costco Wholesale Corp.		1,162,926
	12,500		Kroger Co.		320,000
	4,700		Longs Drug Stores Corp.		202,100
			TOTAL		1,685,026
			Food Products--1.2%
	54,300		Archer-Daniels-Midland Co.		1,737,600
	1,000		Bunge Ltd.		76,950
	27,400		Kellogg Co.		1,349,998
	17,800		Kraft Foods, Inc., Class A		621,576
			TOTAL		3,786,124
			Gas Utilities--0.1%
	6,900		Energen Corp.		319,332
			Health Care Equipment & Supplies--2.6%
	8,500		Dentsply International, Inc.		262,140
	8,000	1	Immucor, Inc.		252,320
	122,500		Medtronic, Inc.		6,547,625
	3,000		Mentor Corp.		152,970
	28,300	1	St. Jude Medical, Inc.		1,210,108
			TOTAL		8,425,163
Shares					Value
			COMMON STOCKS--continued
			Health Care Providers & Services--2.5%
	42,100		Cardinal Health, Inc.	$	3,006,782
	6,800	1	DaVita, Inc.		371,280
	7,000	1	Laboratory Corp. of America Holdings		514,080
	4,200	1	Lincare Holdings, Inc.		165,270
	21,500	1	Medco Health Solutions, Inc.		1,273,015
	7,100	1	Psychiatric Solutions, Inc.		276,474
	31,300	1	Wellpoint, Inc.		2,453,294
			TOTAL		8,060,195
			Health Care Technology--0.1%
	14,900		IMS Health, Inc.		430,014
			Hotels, Restaurants & Leisure--0.6%
	3,000	1	Life Time Fitness, Inc.		162,600
	6,400	1	Starbucks Corp.		223,616
	2,100	1	Wynn Resorts Ltd.		234,654
	21,700		Yum! Brands, Inc.		1,302,217
			TOTAL		1,923,087
			Household Durables--1.2%
	4,300		Beazer Homes USA, Inc.		187,093
	9,900		Centex Corp.		531,531
	14,300		KB Home		775,346
	4,300		M.D.C. Holdings, Inc.		250,561
	2,000	1	Meritage Homes Corp.		88,900
	42,200		Pulte Homes, Inc.		1,449,148
	6,500		Ryland Group, Inc.		365,170
	9,900		Standard Pacific Corp.		271,656
			TOTAL		3,919,405
			Household Products--5.5%
	36,700		Kimberly-Clark Corp.		2,546,980
	235,800		Procter & Gamble Co.		15,296,346
			TOTAL		17,843,326
			IT Services--1.3%
	3,500	1	Alliance Data Systems Corp.		237,755
	25,300		Automatic Data Processing, Inc.		1,207,316
	5,000	1	Ceridian Corp.		149,850
Shares					Value
			COMMON STOCKS--continued
			IT Services--continued
	6,200	1	Checkfree Corp.	$	256,866
	14,800	1	Cognizant Technology Solutions Corp.		1,262,292
	11,300	1	Computer Sciences Corp.		592,798
	7,400	1	Fiserv, Inc.		389,018
			TOTAL		4,095,895
			Independent Power Producers & Energy Traders--0.1%
	10,900	1	AES Corp.		226,611
			Industrial Conglomerates--1.9%
	69,200		3M Co.		5,141,560
	15,700	1	McDermott International, Inc.		810,748
	2,500		Teleflex, Inc.		166,950
			TOTAL		6,119,258
			Insurance--17.6%
	115,050		Allstate Corp.		6,921,408
	21,000		Ambac Financial Group, Inc.		1,850,100
	17,100		American Financial Group, Inc.		603,972
	202,200		American International Group, Inc.		13,840,590
	21,500		Assurant, Inc.		1,194,970
	30,300		Berkley, W. R. Corp.		1,002,627
	10,800	1	CAN Financial Corp.		439,020
	66,100		Chubb Corp.		3,439,844
	8,400		Commerce Group, Inc.		253,512
	12,700		HCC Insurance Holdings, Inc.		396,621
	6,200		Hanover Insurance Group, Inc.		297,910
	34,300		Hartford Financial Services Group, Inc.		3,255,413
	40,400		Loews Corp.		1,755,784
	21,200		MBIA Insurance Corp.		1,522,796
	136,500		MetLife, Inc.		8,479,380
	8,300		Nationwide Financial Services, Inc., Class A		453,595
	7,300		Odyssey Re Holdings Corp.		287,985
	7,800		Ohio Casualty Corp.		230,412
	107,600		Progressive Corp., OH		2,495,244
	9,600		Reinsurance Group of America		558,240
	18,700		Safeco Corp.		1,196,987
	1,900		Safety Insurance Group, Inc.		92,796
Shares					Value
			COMMON STOCKS--continued
			Insurance--continued
	4,700		StanCorp Financial Group, Inc.	$	224,895
	124,300		The St. Paul Travelers Cos., Inc.		6,320,655
	100		Unitrin, Inc.		5,121
			TOTAL		57,119,877
			Internet & Catalog Retail--0.3%
	11,400	1	Expedia, Inc.		244,530
	15,400	1	IAC Interactive Corp.		591,360
	5,100	1	Nutri/System, Inc.		224,655
			TOTAL		1,060,545
			Internet Software & Services--0.4%
	14,100	1	ValueClick, Inc.		359,832
	33,600	1	eBay, Inc.		1,088,304
			TOTAL		1,448,136
			Leisure Equipment & Products--0.1%
	10,500		Brunswick Corp.		358,155
			Life Sciences Tools & Services--0.1%
	6,800	1	Waters Corp.		385,492
			Machinery--0.8%
	5,200		Briggs & Stratton Corp.		154,128
	15,300		Danaher Corp.		1,133,118
	14,700		Deere & Co.		1,474,116
			TOTAL		2,761,362
			Media--5.0%
	166,800	1	Comcast Corp., Class A		7,392,576
	24,600	1	Discovery Holding Co., Class A		407,622
	6,800	1	Lamar Advertising Co., Class A		450,704
	19,800		McGraw-Hill Cos., Inc.		1,328,184
	12,400		Omnicom Group, Inc.		1,304,480
	201,700		Time Warner, Inc.		4,411,179
	24,600	1	Viacom, Inc., Class B		1,000,482
			TOTAL		16,295,227
			Metals & Mining--0.3%
	20,700		Commercial Metals Corp.		561,177
	4,000		Metal Management, Inc.		164,160
Shares					Value
			COMMON STOCKS--continued
			Metals & Mining--continued
	4,400		Quanex Corp.	$	172,436
	10,100		Worthington Industries, Inc.		193,718
			TOTAL		1,091,491
			Multi-Utilities--0.4%
	21,600		PG&E Corp.		1,008,288
	3,200		SCANA Corp.		130,304
			TOTAL		1,138,592
			Multiline Retail--1.0%
	17,800	1	Sears Holdings Corp.		3,144,370
			Oil, Gas & Consumable Fuels--11.7%
	52,800		Anadarko Petroleum Corp.		2,310,000
	214,200		Chevron Corp.		15,610,896
	67,000		Devon Energy Corp.		4,696,030
	13,300		Exxon Mobil Corp.		985,530
	6,000	1	General Maritime Corp.		218,940
	69,500		Marathon Oil Corp.		6,278,630
	11,000		OMI Corp.		242,660
	7,600		Overseas Shipholding Group, Inc.		472,188
	17,500		Pioneer Natural Resources, Inc.		717,500
	8,500		Pogo Producing Co.		421,175
	5,000	1	Swift Energy Co.		221,700
	15,200		Tesoro Petroleum Corp.		1,252,328
	84,900		Valero Energy Corp.		4,608,372
			TOTAL		38,035,949
			Paper & Forest Products--0.1%
	16,100		MeadWestvaco Corp.		485,254
			Personal Products--0.2%
	15,000		Avon Products, Inc.		515,850
			Pharmaceuticals--1.7%
	51,200		Johnson & Johnson		3,420,160
	90,500		Schering Plough Corp.		2,262,500
			TOTAL		5,682,660
			Road & Rail--1.6%
	9,700		Burlington Northern Santa Fe Corp.		779,492
	7,700		Con-way, Inc.		382,998
Shares					Value
			COMMON STOCKS--continued
			Road & Rail--continued
	71,100		Norfolk Southern Corp.	$	3,530,115
	9,100		Ryder System, Inc.		496,314
	7,400		Werner Enterprises, Inc.		140,674
			TOTAL		5,329,593
			Semiconductors & Semiconductor Equipment--0.2%
	13,100	1	MEMC Electronic Materials, Inc.		686,440
			Software--0.8%
	123,100	1	Oracle Corp.		2,112,396
	2,700		Quality Systems, Inc.		114,561
	7,600	1	THQ, Inc.		230,280
			TOTAL		2,457,237
			Specialty Retail--2.4%
	3,300	1	AutoZone, Inc.		414,579
	15,500	1	CarMax, Inc.		890,165
	2,300	1	Children's Place Retail Stores, Inc.		124,683
	5,800	1	Dick's Sporting Goods, Inc.		298,642
	6,800	1	Guess ?, Inc.		490,348
	4,500	1	Gymboree Corp.		194,805
	4,200	1	Hibbett Sporting Goods, Inc.		134,862
	126,300		Home Depot, Inc.		5,145,462
	3,300	1	J. Crew Group, Inc.		119,889
	2,200	1	Zale Corp.		60,544
			TOTAL		7,873,979
			Textiles, Apparel & Luxury Goods--1.0%
	65,400	1	Coach, Inc.		2,999,244
	6,400	1	Crocs, Inc.		322,176
			TOTAL		3,321,420
Shares or Principal Amount					Value
			COMMON STOCKS--continued
			Thrifts & Mortgage Finance--1.2%
	5,900		Downey Financial Corp.	$	422,086
	10,600		Federal Home Loan Mortgage Corp.		688,258
	3,500	1	FirstFed Financial Corp.		241,325
	12,000		MGIC Investment Corp.		740,640
	14,800		PMI Group, Inc.		707,736
	17,600		Radian Group, Inc.		1,059,872
			TOTAL		3,859,917
			Wireless Telecommunication Services--0.0%
	2,000	1	U.S. Cellular Corp.		144,200
			TOTAL COMMON STOCKS (IDENTIFIED COST $294,166,641)		318,868,699
			REPURCHASE AGREEMENT--1.9%
$	6,109,000		Interest in $250,000,000 joint repurchase agreement 5.23%, dated 1/31/2007 under which Mizuho Securities USA, Inc. will repurchase U.S. Treasury securities with various maturities to 2/15/2016 for $250,036,319 on 2/1/2007. The market value of the underlying securities at the end of the period was $255,000,001. (AT COST)		6,109,000
			TOTAL INVESTMENTS--100.0% (IDENTIFIED COST $300,275,641) 2		324,977,699
			OTHER ASSETS AND LIABILITIES - NET--(0.0)%		(74,679	)
			TOTAL NET ASSETS--100%	$	324,903,020

1 Non-income producing security.

2 Also represents cost for federal tax purposes.

Note: The categories of investments are shown as a percentage of total net assets at January 31, 2007.

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

January 31, 2007 (unaudited)

Assets:
Total investments in securities, at value (identified cost $300,275,641)			$	324,977,699
Cash				42,960
Income receivable				123,610
Receivable for investments sold				4,736,680
Receivable for shares sold				5,316,955
TOTAL ASSETS				335,197,904
Liabilities:
Payable for investments purchased	$	9,769,497
Payable for shares redeemed		199,665
Payable for administrative personnel and services fee (Note 5)		91,259
Payable for distribution services fee (Note 5)		49,816
Payable for shareholder services fee (Note 5)		88,478
Accrued expenses		96,169
TOTAL LIABILITIES				10,294,884
Net assets for 19,817,752 shares outstanding			$	324,903,020
Net Assets Consist of:
Paid-in capital			$	294,370,850
Net unrealized appreciation of investments				24,702,058
Accumulated net realized gain on investments				5,815,827
Undistributed net investment income				14,285
TOTAL NET ASSETS			$	324,903,020
Net Asset Value, Offering Price and Redemption Proceeds Per Share
Institutional Shares:
Net asset value per share ($57,592,731 ÷ 3,482,627 shares outstanding), no par value, unlimited shares authorized				$16.54
Offering price per share				$16.54
Redemption proceeds per share				$16.54
Class A Shares:
Net asset value per share ($180,470,581 ÷ 10,992,407 shares outstanding), no par value, unlimited shares authorized				$16.42
Offering price per share (100/94.50 of $16.42) 1				$17.38
Redemption proceeds per share				$16.42
Class C Shares:
Net asset value per share ($86,839,610 ÷ 5,342,712 shares outstanding), no par value, unlimited shares authorized				$16.25
Offering price per share (100/99.00 of $16.25) 1				$16.41
Redemption proceeds per share (99.00/100 of $16.25) 1				$16.09
Class K Shares:
Net asset value per share ($98.36 - 5.945 shares outstanding), no par value, unlimited shares authorized				$16.54
Offering price per share				$16.54
Redemption proceeds per share				$16.54

1 See "What Do Shares Cost?" in the Prospectus.

See Notes which are an integral part of the Financial Statements

Statement of Operations

Six Months Ended January 31, 2007 (unaudited)

Investment Income:
Dividends							$	1,979,581
Interest								42,149
TOTAL INCOME								2,021,730
Expenses:
Investment adviser fee (Note 5)				$	961,714
Administrative personnel and services fee (Note 5)					115,945
Custodian fees					20,341
Transfer and dividend disbursing agent fees and expenses					251,095
Directors'/Trustees' fees					2,521
Auditing fees					10,838
Legal fees					4,537
Portfolio accounting fees					63,704
Distribution services fee--Class A Shares (Note 5)					117,862
Distribution services fee--Class C Shares (Note 5)					304,232
Shareholder services fee--Class A Shares (Note 5)					59,712
Shareholder services fee--Class C Shares (Note 5)					28,766
Share registration costs					45,157
Printing and postage					24,297
Insurance premiums					5,318
Miscellaneous					3,912
TOTAL EXPENSES					2,019,951
Waivers and Expenses Recovered:
Waiver of administrative personnel and services fee (Note 5)	$	(22,432	)
Waiver of transfer and dividend disbursing agent fees and expenses		(13,607	)
Expenses recovered by the Adviser (Note 5)		23,533
WAIVERS AND EXPENSES RECOVERED					(12,506	)
Net expenses								2,007,445
Net investment income								14,285
Realized and Unrealized Gain on Investments:
Net realized gain on investments								6,481,876
Net change in unrealized appreciation of investments								23,039,670
Net realized and unrealized gain on investments								29,521,546
Change in net assets resulting from operations							$	29,535,831

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

		Six Months Ended (unaudited) 1/31/2007			Year Ended 7/31/2006
Increase (Decrease) in Net Assets
Operations:
Net investment income	$	14,285		$	13,180
Net realized gain on investments		6,481,876			9,146,627
Net change in unrealized appreciation/depreciation of investments		23,039,670			(7,090,736	)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		29,535,831			2,069,071
Distributions to Shareholders:
Distributions from net investment income
Institutional Shares		- --			(42,291	)
Class A Shares		- --			(10,715	)
Class C Shares		- --			- --
Class K Shares		- --			- --
Distributions from net realized gain on investments
Institutional Shares		(1,675,959	)		(2,304,161	)
Class A Shares		(5,228,169	)		(2,312,213	)
Class C Shares		(2,497,031	)		(117,957	)
Class K Shares		(3	)		- --
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS		(9,401,162	)		(4,787,337	)
Share Transactions:
Proceeds from sale of shares		127,563,949			136,005,478
Net asset value of shares issued to shareholders in payment of distributions declared		8,258,176			4,703,047
Cost of shares redeemed		(23,620,713	)		(19,541,548	)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		112,201,412			121,166,977
Change in net assets		132,336,081			118,448,711
Net Assets:
Beginning of period		192,566,939			74,118,228
End of period (including undistributed net investment income of $14,285 and $0, respectively)	$	324,903,020		$	192,566,939

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

January 31, 2007 (unaudited)

1. ORGANIZATION

Federated MDT Series (the "Trust") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Trust consists of eight portfolios. The financial statements included herein are only those of Federated MDT All Cap Core Fund (the "Fund"), a diversified portfolio. The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held. The Fund offers four classes of shares: Institutional Shares, Class A Shares, Class C Shares and Class K Shares. All shares of the Fund have equal rights with respect to voting, except on class-specific matters. The financial highlights of the Class A Shares, Class C Shares and Class K Shares are presented separately. The primary investment objective of the Fund is long-term capital appreciation.

MDT All Cap Core Fund (the "Predecessor Fund") was reorganized into the Fund as of the close of business on December 8, 2006. Prior to the reorganization, the Fund had no investment operations. The Fund is the successor to the Predecessor Fund, which commenced offering Class C Shares on September 15, 2005. The Fund commenced offering Class K Shares on December 12, 2006.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with generally accepted accounting principles (GAAP) in the United States of America.

Investment Valuation

Market values of the Fund's portfolio securities are determined as follows:

• for equity securities, according to the last sale price or official closing price reported in the market in which they are primarily traded (either a national securities exchange or the over-the-counter market), if available;
• in the absence of recorded sales for equity securities, according to the mean between the last closing bid and asked prices;
• futures contracts and options are generally valued at market values established by the exchanges on which they are traded at the close of trading on such exchanges. Options traded in the over-the-counter market are generally valued according to the mean between the last bid and the last asked price for the option as provided by an investment dealer or other financial institution that deals in the option. The Board of Trustees (the "Trustees") may determine in good faith that another method of valuing such investments is necessary to appraise their fair market value;
• prices for total return swaps are furnished by an independent pricing service and are based upon a valuation model incorporating underlying reference indexes, interest rates, yield curves and other market data or factors. Prices for credit default swaps are furnished by an independent pricing service and are based upon a valuation model incorporating default probabilities, recovery rates and other market data or factors;
• for mortgage-backed securities, based on the aggregate investment value of the projected cash flows to be generated by the security, as furnished by an independent pricing service;
• for investments in other open-end regulated investment companies, based on net asset value (NAV);
• for other fixed-income securities, according to prices as furnished by an independent pricing service, except that fixed-income securities with remaining maturities of less than 60 days at the time of purchase are valued at amortized cost; and
• for all other securities at fair value as determined in accordance with procedures established by and under the general supervision of the Trustees.

Prices for fixed-income securities furnished by a pricing service may be based on a valuation matrix which incorporates both dealer-supplied valuations and electronic data processing techniques. Such prices (other than prices of mortgage-backed securities) are generally intended to be indicative of the bid prices currently offered to institutional investors for the securities except that prices for corporate fixed-income and asset-backed securities traded in the United States are generally intended to be indicative of the mean between such bid prices and asked prices. The Trustees have approved the use of such pricing services. A number of pricing services are available, and the Fund may use various pricing services or discontinue the use of any pricing service.

Prices provided by independent pricing services may be determined without relying exclusively on quoted prices and may consider institutional trading in similar groups of securities, yield, quality, stability, risk, coupon rate, maturity, type of issue, trading characteristics, and other market data or factors. From time to time, when prices cannot be obtained from an independent pricing service, securities may be valued based on quotes from broker-dealers or other financial institutions that trade the securities.

Trading in foreign securities may be completed at times which vary from the closing of the New York Stock Exchange (NYSE). In computing its NAV, the Fund values foreign securities using the latest closing price on the exchange on which they are traded immediately prior to the closing of the NYSE. Certain foreign currency exchange rates are generally determined at the latest rate prior to the closing of the NYSE. Foreign securities quoted in foreign currencies are translated into U.S. dollars at current rates. Events that affect these values and exchange rates may occur between the times at which they are determined and the closing of the NYSE. If such events materially affect the value of portfolio securities, these securities may be valued at their fair value as determined in good faith by the Trustees, although the actual calculation may be done by others.

Repurchase Agreements

It is the policy of the Fund to require the other party to a repurchase agreement to transfer to the Fund's custodian or sub-custodian eligible securities or cash with a market value (after transaction costs) at least equal to the repurchase price to be paid under the repurchase agreement. The eligible securities are transferred to accounts with the custodian or sub-custodian in which the Fund holds a "securities entitlement" and exercises "control" as those terms are defined in the Uniform Commercial Code. The Fund has established procedures for monitoring the market value of the transferred securities and requiring the transfer of additional eligible securities if necessary to equal at least the repurchase price. These procedures also allow the other party to require securities to be transferred from the account to the extent that their market value exceeds the repurchase price or in exchange for other eligible securities of equivalent market value.

With respect to agreements to repurchase U.S. government securities and cash items, the Fund treats the repurchase agreement as an investment in the underlying securities and not as an obligation of the other party to the repurchase agreement. Other repurchase agreements are treated as obligations of the other party secured by the underlying securities. Nevertheless, the insolvency of the other party or other failure to repurchase the securities may delay the disposition of the underlying securities or cause the Fund to receive less than the full repurchase price. Under the terms of the repurchase agreement, any amounts received by the Fund in excess of the repurchase price and related transaction costs must be remitted to the other party.

The Fund may enter into repurchase agreements in which eligible securities are transferred into joint trading accounts maintained by the custodian or sub-custodian for investment companies and other clients advised by the Fund's adviser and its affiliates. The Fund will participate on a pro rata basis with the other investment companies and clients in its share of the securities transferred under such repurchase agreements and in its share of proceeds from any repurchase or other disposition of such securities.

Investment Income, Gains and Losses, Expenses and Distributions

Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Distributions of net investment income, if any, are declared and paid annually. Non-cash dividends included in dividend income, if any, are recorded at fair value. Investment income, realized and unrealized gains and losses, and certain fund-level expenses are allocated to each class based on relative average daily net assets, except that each class bears certain expenses unique to that class such as distribution and shareholder services fees. Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses.

Premium and Discount Amortization

All premiums and discounts on fixed-income securities are amortized/accreted for financial statement purposes.

Federal Taxes

It is the Fund's policy to comply with the Subchapter M provision of the Internal Revenue Code (the "Code") and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal income tax is necessary.

When-Issued and Delayed Delivery Transactions

The Fund may engage in when-issued or delayed delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated.

Other

Investment transactions are accounted for on a trade date basis. Realized gains and losses from investment transactions are recorded on an identified cost basis.

3. SHARES OF BENEFICIAL INTEREST

The following tables summarize share activity:

	Six Months Ended 1/31/2007					Year Ended 7/31/2006
Institutional Shares:	Shares			Amount		Shares			Amount
Shares sold	853,833		$	13,950,526		353,848		$	5,425,707
Shares issued to shareholders in payment of distributions declared	90,311			1,481,998		153,643			2,324,618
Shares redeemed	(273,142	)		(4,381,116	)	(553,530	)		(8,427,259	)
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS	671,002		$	11,051,408		(46,039	)	$	(676,934	)
	Six Months Ended 1/31/2007					Year Ended 7/31/2006
Class A Shares:	Shares			Amount		Shares			Amount
Shares sold	4,981,791		$	78,961,210		5,300,192		$	80,863,412
Shares issued to shareholders in payment of distributions declared	300,058			4,887,950		150,057			2,261,363
Shares redeemed	(1,033,065	)		(16,421,303	)	(694,341	)		(10,529,747	)
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS	4,248,784		$	67,427,857		4,755,908		$	72,595,028
	Six Months Ended 1/31/2007					Period Ended 7/31/2006 1
Class C Shares:	Shares			Amount		Shares			Amount
Shares sold	2,190,593		$	34,652,113		3,245,159		$	49,716,359
Shares issued to shareholders in payment of distributions declared	116,918			1,888,228		7,778			117,066
Shares redeemed	(178,693	)		(2,818,294	)	(39,043	)		(584,542	)
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS	2,128,818		$	33,722,047		3,213,894		$	49,248,883
	Period Ended 1/31/2007 2					Year Ended 7/31/2006
Class K Shares:	Shares			Amount		Shares			Amount
Shares sold	6		$	100		- --			- --
NET CHANGE RESULTING FROM CLASS K SHARE TRANSACTIONS	6		$	100		- --			- --
NET CHANGE RESULTING FROM SHARE TRANSACTIONS	7,048,610		$	112,201,412		7,923,763		$	121,166,977

1 Reflects operations for the period from September 15, 2005 (date of initial public investment) to July 31, 2006.

2 Reflects operations for the period from December 12, 2006 (date of initial public investment) to January 31, 2007.

4. FEDERAL TAX INFORMATION

At January 31, 2007, the cost of investments for federal tax purposes was $300,275,641. The net unrealized appreciation of investments for federal tax purposes was $24,702,058. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $26,851,859 and net unrealized depreciation from investments for those securities having an excess of cost over value of $2,149,801.

5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated MDTA LLC, the Fund's investment adviser (the "Adviser"), receives for its services an annual investment adviser fee equal to 0.75% of the Fund's average daily net assets. Under the investment advisory contract, the Adviser is contractually obligated to waive, to the extent of its adviser fee, the amount, if any, by which the Fund's annual operating expenses exceed the following levels for each Class of the Fund:

Class	Percentage of Average Daily Net Assets of Class
Institutional Shares	1.25%
Class A Shares	1.50%
Class C Shares	2.25%

The Adviser has agreed to keep these contractual limitations in place through December 8, 2008.

In addition, after fulfilling its contractual commitment, the Adviser may voluntarily choose to waive and/or reimburse any additional portion of its fee. The Adviser can modify or terminate this voluntary waiver and/or reimbursement at any time at its sole discretion.

For a period of three years after the fiscal year in which the Adviser waived or reimbursed Fund expenses, the Adviser may seek reimbursement from the Fund to the extent that the Fund's total annual operating expenses are less than the expense limitation. Due to the reorganization of the Fund, any expenses waived or reimbursed by the Adviser after December 8, 2006 may not be recovered by the Adviser.

Expenses waived/reimbursed by the Fund are subject to potential recovery by year of expiration as follows:

Expires July 31	Expiration Amount
2007	$ 29,828
2008	$ 24,400
2009	$ 55,328
TOTAL	$109,556

For the six months ended January 31, 2007, the Adviser recovered $23,533 of its fee.

Administrative Fee

Federated Administrative Services (FAS), under the Administrative Services Agreement (the "Agreement"), provides the Fund with administrative personnel and services. The fee paid to FAS is based on the average aggregate daily net assets of certain Federated funds as specified below:

Administrative Fee	Average Aggregate Daily Net Assets of the Federated Funds
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

The administrative fee received during any fiscal year shall be at least $150,000 per portfolio and $40,000 per each additional class of Shares. During the period from July 15, 2006 through December 8, 2006, the administrator contractually agreed to waive the portion of its fee which it would otherwise be entitled to receive from the Fund under the Agreement. The level of fees payable by the Fund to FAS for the period will not exceed the level of fees which the Fund would have paid during the period to its previous service provider under its previous administrative services contract. In addition, FAS may voluntarily choose to waive any portion of its fee. FAS can modify or terminate this voluntary waiver at any time at its sole discretion. For the six months ended January 31, 2007, the net fee paid to FAS was 0.073% of average aggregate daily net assets of the Fund.

Distribution Services Fee

The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will compensate Federated Securities Corp. (FSC), the principal distributor, from the daily net assets of the Fund's Class A Shares, Class C Shares and Class K Shares to finance activities intended to result in the sale of these shares. The Plan provides that the Fund may incur distribution expenses according to the following schedule annually, to compensate FSC:

Class	Percentage of Average Daily Net Assets of Class
Class A Shares	0.25%
Class C Shares	0.75%
Class K Shares	0.50%

Prior to December 11, 2006, the Fund incurred distribution expenses according to the following schedule annually, to compensate FSC:

Class	Percentage of Average Daily Net Assets of Class
Class A Shares	0.25%
Class C Shares	1.00%

FSC may voluntarily choose to waive any portion of its fee. FSC can modify or terminate this voluntary waiver at any time at its sole discretion. When FSC receives fees, it may pay some or all of them to financial intermediaries whose customers purchase shares. For the six months ended January 31, 2007, FSC retained $260,963 of fees paid by the Fund.

Sales Charges

For the six months ended January 31, 2007, FSC, the principal distributor, retained $23,921 in sales charges from the sale of Class A Shares. FSC also retained $15,373 of contingent deferred sales charges relating to redemptions of Class C Shares. See "What Do Shares Cost?" in the Prospectus.

Shareholder Services Fee

Effective December 11, 2006, the Fund may pay fees (Service Fees) up to 0.25% of the average daily net assets of the Fund's Class A Shares and Class C Shares to financial intermediaries or to Federated Shareholder Services Company (FSSC) for providing services to shareholders and maintaining shareholder accounts. FSSC or these financial intermediaries may voluntarily choose to waive a portion of their fee. In addition, FSSC may voluntarily reimburse the Fund for shareholder services fees. This voluntary waiver and/or reimbursement can be modified or terminated at any time. For the six months ended January 31, 2007, FSSC did not receive any fees paid by the Fund.

General

Certain of the Officers and Trustees of the Trust are Officers and Directors or Trustees of the above companies.

6. INVESTMENT TRANSACTIONS

Purchases and sales of investments, excluding long-term U.S. government securities and short-term obligations, for the six months ended January 31, 2007, were as follows:

Purchases	$	355,190,707
Sales	$	255,394,192

7. LINE OF CREDIT

The Trust entered into a $150,000,000 unsecured, uncommitted revolving line of credit (LOC) agreement with PNC Bank. The LOC was made available for extraordinary or emergency purposes, primarily for financing redemption payments. Borrowings are charged interest at a rate of 0.65% over the federal funds rate. As of January 31, 2007, there were no outstanding loans. During the six months ended January 31, 2007, the Fund did not utilize the LOC.

8. LEGAL PROCEEDINGS

Beginning in October 2003, Federated Investors, Inc. and various subsidiaries thereof (including the advisers and distributor for various investment companies, collectively, "Federated"), along with various investment companies sponsored by Federated ("Funds") were named as defendants in several class action lawsuits now pending in the United States District Court for the District of Maryland. The lawsuits were purportedly filed on behalf of people who purchased, owned and/or redeemed shares of Federated-sponsored mutual funds during specified periods beginning November 1, 1998. The suits are generally similar in alleging that Federated engaged in illegal and improper trading practices including market timing and late trading in concert with certain institutional traders, which allegedly caused financial injury to the mutual fund shareholders. These lawsuits began to be filed shortly after Federated's first public announcement that it had received requests for information on shareholder trading activities in the Funds from the Securities and Exchange Commission ("SEC"), the Office of the New York State Attorney General ("NYAG"), and other authorities. In that regard, on November 28, 2005, Federated announced that it had reached final settlements with the SEC and the NYAG with respect to those matters. As Federated previously reported in 2004, it has already paid approximately $8.0 million to certain funds as determined by an independent consultant. As part of these settlements, Federated agreed to pay for the benefit of fund shareholders additional disgorgement and a civil money penalty in the aggregate amount of an additional $72 million. Federated and various Funds have also been named as defendants in several additional lawsuits, the majority of which are now pending in the United States District Court for the Western District of Pennsylvania, alleging, among other things, excessive advisory and Rule 12b-1 fees. The Board of the Funds has retained the law firm of Dickstein Shapiro LLP to represent the Funds in these lawsuits. Federated and the Funds, and their respective counsel, are reviewing the allegations and intend to defend this litigation. Additional lawsuits based upon similar allegations may be filed in the future. The potential impact of these lawsuits, all of which seek unquantified damages, attorneys' fees and expenses, and future potential similar suits is uncertain. Although we do not believe that these lawsuits will have a material adverse effect on the Funds, there can be no assurance that these suits, the ongoing adverse publicity and/or other developments resulting from the regulatory investigations will not result in increased Fund redemptions, reduced sales of Fund shares, or other adverse consequences for the Funds.

9. RECENT ACCOUNTING PRONOUNCEMENTS

In July 2006, the Financial Accounting Standards Board (FASB) released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" (FIN 48). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax benefits of positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax expense in the current year. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years of the Fund no later than January 30, 2008. At this time, management is evaluating the implications of FIN 48 and its impact in the financial statements has not yet been determined.

In addition, in September 2006, FASB released Statement on Financial Accounting Standards No. 157, "Fair Value Measurements" (FAS 157) which is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of FAS 157 will have on the Funds' financial statement disclosures.

Evaluation and Approval of Advisory Contract

FEDERATED MDT ALL CAP CORE FUND (THE "FUND")

The Fund's Board reviewed the Fund's investment advisory contract at meetings held in May and June 2006. The Board's decision to approve the contract reflects the exercise of its business judgment on whether to authorize the creation and offering of this new investment vehicle, as proposed by, and based on information provided by, the Federated organization, and based on Federated's recommendation to go forward with establishment of the Fund.

Federated proposed the creation of the Fund in connection with its acquisition of MDTA LLC (the "Acquisition"), the investment adviser to the MDT All Cap Core Fund (the "Predecessor Fund"). As part of that transaction, Federated proposed that the Predecessor Fund be reorganized with and into the Fund in a tax-free reorganization (the "Proposed Reorganization"), which would provide shareholders of the Predecessor Fund the opportunity to become shareholders of a fund with substantially similar investment objectives and policies and the same portfolio manager(s) as the Predecessor Fund, but with sales, distribution and other shareholder services offered by the funds managed and distributed by affiliates of Federated.

Prior to the meeting, the Adviser had recommended that the Federated Funds appoint a Senior Officer, whose duties include specified responsibilities relating to the process by which advisory fees are to be charged to a Federated Fund. The Senior Officer appointed by the Funds has the authority to retain consultants, experts, or staff as may be reasonably necessary to assist in the performance of his duties, reports directly to the Board, and may be terminated only with the approval of a majority of the independent members of the Board. The Senior Officer prepared and furnished to the Board an independent written evaluation that covered topics discussed below, which the Board considered, along with other information, in deciding to approve the advisory contract.

The Board also considered the anticipated compensation and benefits to be received by the Adviser. This includes fees to be received for services provided to the Fund by other entities in the Federated organization and research services that may be received by the Adviser from brokers that execute fund trades, as well as advisory fees. The Board is also familiar with judicial decisions concerning allegedly excessive investment advisory fees which have indicated that the following factors may be relevant to an Adviser's fiduciary duty with respect to its receipt of compensation from a fund: the nature and quality of the services provided by the Adviser, including the performance of the Fund; the Adviser's cost of providing the services; the extent to which the Adviser may realize "economies of scale" as the Fund grows larger; any indirect benefits that may accrue to the Adviser and its affiliates as a result of the Adviser's relationship with the Fund; performance and expenses of comparable funds; and the extent to which the independent Board members are fully informed about all facts the Board deems relevant bearing on the Adviser's services and fees. The Board further considered management fees (including any components thereof) charged to institutional and other clients of the Adviser for like services and costs to the Adviser and its affiliates of supplying services pursuant to the management fee agreements, excluding any intra-corporate profit and profit margins of the Adviser and its affiliates from supplying such services. The Board was aware of these considerations and was guided by them in its review of the Fund's advisory contract to the extent they are appropriate and relevant, as discussed further below.

The Board considered and weighed these circumstances in light of its substantial accumulated experience in working with Federated on matters relating to other Federated funds, and was assisted in its deliberations by the advice of independent legal counsel. The Board's consideration of the advisory contract included review of the Senior Officer's evaluation, accompanying data and additional reports covering such matters as: the Adviser's investment philosophy, revenue, profitability, personnel and processes; investment and operating strategies; the Fund's investment objectives; the Fund's expenses (including the advisory fee itself and the overall expense structure of the Fund, both in absolute terms and relative to similar and/or competing funds, with due regard for contractual or voluntary expense limitations); the nature, quality and extent of the advisory and other services to be provided to the Fund by the Adviser and its affiliates; the preferences and expectations of Fund shareholders and their relative sophistication; the continuing state of competition in the mutual fund industry and market practices; the range of comparable fees for similar funds in the mutual fund industry; the Fund's relationship to the Federated family of funds which include a comprehensive array of funds with different investment objectives, policies and strategies which are available for exchange without the incurrence of additional sales charges; compliance and audit reports concerning the Federated funds and the Federated companies that service them (including communications from regulatory agencies), as well as Federated's responses to any issues raised therein; and relevant developments in the mutual fund industry and how the Federated funds and/or Federated are responding to them. The Board's evaluation process is evolutionary. The criteria considered and the emphasis placed on relevant criteria change in recognition of changing circumstances in the mutual fund marketplace.

With respect to the Fund's expenses in particular, the Board has found the use of comparisons to other mutual funds with comparable investment programs to be particularly useful, given the high degree of competition in the mutual fund business. The Board focused on comparisons with other similar mutual funds more heavily than non-mutual fund products or services because, simply put, they are more relevant. For example, other mutual funds are the products most like the Fund, they are readily available to Fund shareholders as alternative investment vehicles, and they are the type of investment vehicle in fact chosen and maintained by the Fund's anticipated investors. The range of their fees and expenses therefore appears to be a generally reliable indication of what consumers have found to be reasonable in the precise marketplace in which the Fund will compete. In this regard, the Senior Officer also reviewed Federated's fees for providing advisory services to products outside the Federated family of funds (e.g., institutional and separate accounts). He concluded that mutual funds and institutional accounts are inherently different products. Those differences included, but are not limited to targeting different investors, being subject to different laws and regulations, different legal structure, distribution costs, average account size and portfolio management techniques made necessary by different cash flows. The Senior Officer did not consider these fee schedules to be significant in determining the appropriateness of mutual fund advisory contracts.

The Senior Officer reviewed reports compiled by Federated and directed the preparation of reports regarding the performance of, and fees charged by other mutual funds, noting his view that comparisons to fund peer groups is of significance in judging the reasonableness of proposed fees.

Because the Fund will employ the same portfolio managers and investment techniques, the Board reviewed the Predecessor Fund's performance compared to its peer group as an indicator of how the Adviser will execute the Fund's investment program, which in turn assisted the Board in reaching a conclusion that the nature, extent, and quality of the Adviser's investment management services were such as to warrant approval of the advisory contract. The Board noted that the performance of the Predecessor Fund and/or accounts managed by MDTA LLC with substantially similar investment objectives and policies was above the median of its relevant peer group for the one- and three-year periods reviewed.

The Senior Officer noted that the Fund's quantitative focus made it difficult to compare its fees and expenses to other peers, which varied widely in their complexity. He observed that the management of the Fund is among the more complex, relative to its peers and, consequently, that the advisory fee and projected net total expenses are at the high end compared to such peers. The Board reviewed the proposed fees and other expenses of the Fund with the Adviser and was satisfied that the proposed overall expense structure of the Fund appeared competitive. The Board will continue to monitor advisory fees and other expenses borne by the Fund. No changes were recommended to, and no objection was raised to the proposed advisory contract, and the Senior Officer noted that Federated proposed to provide appropriate administrative services to the Fund for the anticipated fees. The Board concluded that the nature, quality and scope of services to be provided to the Fund by the Adviser and its affiliates were satisfactory.

The Board also considered possible indirect benefits that may accrue to the Adviser and its affiliates as a result of the Acquisition. Other indirect benefits that may accrue to the Adviser and its affiliates as a result of the Adviser's relationship with the Fund are essentially impossible to apply before the Fund has experienced any meaningful operating history. Nevertheless, in connection with the Board's governance of other Federated funds, it should be noted that the Board regularly receives financial information about Federated, including reports on the compensation and benefits Federated derives from its relationships with the other Federated funds. These reports cover not only the fees under the advisory contracts, but also fees received by Federated's subsidiaries for providing other services to the Federated funds under separate contracts ( e.g. , for serving as the Federated funds' administrator). The reports also discuss any indirect benefit Federated may derive from its receipt of research services from brokers who execute Federated fund trades, as well as waivers of fees and/or reimbursements of expenses. In order for a fund to be competitive in the marketplace, Federated and its affiliates frequently waive fees and/or reimburse expenses and have indicated to the Board their intention to do so in the future, where appropriate. It was noted in this regard that the Adviser has agreed to limit the expenses of each class of the Fund at specified amounts for a two year period commencing on the date the Proposed Reorganization is consummated.

Federated furnished reports, requested by the Senior Officer, that made estimates of the allocation of expenses on a fund by fund basis, using allocation methodologies specified by the Senior Officer. The Senior Officer noted that, although they may apply consistent allocation processes, the inherent difficulties in allocating costs and the lack of consensus on how to allocate those costs causes such allocation reports to be of questionable value. The allocation reports were considered in the analysis by the Board but were determined to be of limited use.

The Board also reviewed profitability information for Federated and other publicly held fund management companies, provided by the Senior Officer, who noted the limited availability of such information, and concluded that Federated's profit margins did not appear to be excessive.

The Senior Officer's evaluation also discussed the notion of possible realization of "economies of scale" as a fund grows larger. The Board considered in this regard that the Adviser has made significant additional investments in the portfolio management and distribution efforts supporting all of the Federated funds and that the benefits of any economies, should they exist, were likely to be enjoyed by the fund complex as a whole. Finally, the Board also noted the absence of any applicable regulatory or industry guidelines on this subject, which is compounded by the lack of any common industry practice or general pattern with respect to structuring fund advisory fees with "breakpoints" that serve to reduce the fee as the fund attains a certain size. The Senior Officer did not recommend institution of breakpoints in pricing Federated's fund advisory services at this time.

The Board based its decision to approve the advisory contract on the totality of the circumstances and relevant factors, and with a view to past and future long-term considerations. As noted, not all of the factors and considerations identified above were relevant to the Fund, nor does the Board consider any one of them to be determinative. With respect to the factors that are relevant, the Board's decision to approve the contract reflects its determination that, based upon the information requested and supplied, Federated's proposal to establish and manage the Fund, and its past performance and actions in providing services to other mutual funds, provide a satisfactory basis to support the business decision to approve the proposed arrangements.

Voting Proxies on Fund Portfolio Securities

A description of the policies and procedures that the Fund uses to determine how to vote proxies, if any, relating to securities held in the Fund's portfolio is available, without charge and upon request, by calling 1-800-341-7400. A report on "Form N-PX" of how the Fund voted any such proxies during the most recent 12-month period ended June 30 is available through Federated's website. Go to FederatedInvestors.com, select "Products," select the "Prospectuses and Regulatory Reports" link, then select the Fund to access the link to Form N-PX. This information is also available from the EDGAR database on the SEC's website at www.sec.gov.

Quarterly Portfolio Schedule

The Fund files with the SEC a complete schedule of its portfolio holdings, as of the close of the first and third quarters of its fiscal year, on "Form N-Q." These filings are available on the SEC's website at www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. (Call 1-800-SEC-0330 for information on the operation of the Public Reference Room.) You may also access this information from the "Products" section of the Federated Investors website at FederatedInvestors.com by clicking on "Portfolio Holdings" and selecting the name of the Fund, or by selecting the name of the Fund and clicking on "Portfolio Holdings." You must register on the website the first time you wish to access this information.

Mutual funds are not bank deposits or obligations, are not guaranteed by any bank, and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other government agency. Investment in mutual funds involves investment risk, including the possible loss of principal.

This report is authorized for distribution to prospective investors only when preceded or accompanied by the Fund's prospectus, which contains facts concerning its objective and policies, management fees, expenses, and other information.

IMPORTANT NOTICE ABOUT FUND DOCUMENT DELIVERY

In an effort to reduce costs and avoid duplicate mailings, the Fund(s) intend to deliver a single copy of certain documents to each household in which more than one shareholder of the Fund(s) resides (so-called "householding"), as permitted by applicable rules. The Fund's "householding" program covers its/their Prospectus and Statement of Additional Information, and supplements to each, as well as Semi-Annual and Annual Shareholder Reports and any Proxies or information statements. Shareholders must give their written consent to participate in the "householding" program. The Fund is also permitted to treat a shareholder as having given consent ("implied consent") if (i) shareholders with the same last name, or believed to be members of the same family, reside at the same street address or receive mail at the same post office box, (ii) the Fund gives notice of its intent to "household" at least sixty (60) days before it begins "householding" and (iii) none of the shareholders in the household have notified the Fund(s) or their agent of the desire to "opt out" of "householding." Shareholders who have granted written consent, or have been deemed to have granted implied consent, can revoke that consent and opt out of "householding" at any time: shareholders who purchased shares through an intermediary should contact their representative; other shareholders may call the Fund at 1-800-341-7400.

Federated Securities Corp., Distributor

Cusip 31421R304

36362 (3/07)

Federated is a registered mark of Federated Investors, Inc. 2007 (c)Federated Investors, Inc.

Federated
World-Class Investment Manager

Federated MDT Balanced Fund

A Portfolio of Federated MDT Series

SEMI-ANNUAL SHAREHOLDER REPORT

January 31, 2007

Class A Shares
Class C Shares
Class K Shares

FINANCIAL HIGHLIGHTS
SHAREHOLDER EXPENSE EXAMPLE
PORTFOLIO OF INVESTMENTS SUMMARY TABLES
PORTFOLIO OF INVESTMENTS
STATEMENT OF ASSETS AND LIABILITIES
STATEMENT OF OPERATIONS
STATEMENT OF CHANGES IN NET ASSETS
NOTES TO FINANCIAL STATEMENTS
EVALUATION AND APPROVAL OF ADVISORY CONTRACT
VOTING PROXIES ON FUND PORTFOLIO SECURITIES
QUARTERLY PORTFOLIO SCHEDULE.

Not FDIC Insured * May Lose Value * No Bank Guarantee

Financial Highlights - Class A Shares

(For a Share Outstanding Throughout Each Period)

	Six Months Ended (unaudited) 1/31/2007	1	Period Ended 7/31/2006	2
Net Asset Value, Beginning of Period	$13.21		$13.67
Income From Investment Operations:
Net investment income	0.13	3	0.18	3
Net realized and unrealized gain on investments	1.04		0.46
TOTAL FROM INVESTMENT OPERATIONS	1.17		0.64
Less Distributions:
Distributions from net investment income	(0.16	)	(0.17	)
Distributions from net realized gain on investments	(0.65	)	(0.93	)
TOTAL DISTRIBUTIONS	(0.81	)	(1.10	)
Net Asset Value, End of Period	$13.57		$13.21
Total Return 4	8.94	%	4.85	%
Ratios to Average Net Assets:
Net expenses	1.40	% 5	1.50	% 5
Net investment income	1.95	% 5	1.60	% 5
Expense waiver/reimbursement 6	0.18	% 5	0.17	% 5
Supplemental Data:
Net assets, end of period (000 omitted)	$39,521		$1,962
Portfolio turnover	89	%	139	% 7

1 MDT Balanced Fund (the "Predecessor Fund") was reorganized into Federated MDT Balanced Fund (the" Fund") as of the close of business on December 8, 2006. Prior to the reorganization, the Fund had no investment operations. The Fund is the successor to the Predecessor Fund. The performance information and financial information presented incorporates the operations of the Predecessor Fund, which, as a result of the reorganization, are the Fund's operations.

2 Reflects operations for the period from September 15, 2005 (date of initial public investment) to July 31, 2006.

3 Per share numbers have been calculated using the average shares method.

4 Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. Total returns for periods of less than one year are not annualized.

5 Computed on an annualized basis.

6 This expense decrease is reflected in both the net expense and the net investment income ratios shown above.

7 Portfolio turnover is calculated at the Fund level. Percentage indicated was calculated for the year ended July 31, 2006.

See Notes which are an integral part of the Financial Statements

Financial Highlights - Class C Shares

(For a Share Outstanding Throughout Each Period)

	Six Months Ended (unaudited) 1/31/2007	1	Period Ended 7/31/2006	2
Net Asset Value, Beginning of Period	$13.13		$13.67
Income From Investment Operations:
Net investment income	0.08	3	0.10	3
Net realized and unrealized gain on investments	1.02		0.44
TOTAL FROM INVESTMENT OPERATIONS	1.10		0.54
Less Distributions:
Distributions from net investment income	(0.11	)	(0.15	)
Distributions from net realized gain on investments	(0.65	)	(0.93	)
TOTAL DISTRIBUTIONS	(0.76	)	(1.08	)
Net Asset Value, End of Period	$13.47		$13.13
Total Return 4	8.46	%	4.04	%
Ratios to Average Net Assets:
Net expenses	2.15	% 5	2.25	% 5
Net investment income	1.17	% 5	0.85	% 5
Expense waiver/reimbursement 6	0.23	% 5	0.17	% 5
Supplemental Data:
Net assets, end of period (000 omitted)	$11,557		$3,910
Portfolio turnover	89	%	139	% 7

1 The Predecessor Fund was reorganized into the Fund as of the close of business on December 8, 2006. Prior to the reorganization, the Fund had no investment operations. The Fund is the successor to the Predecessor Fund. The performance information and financial information presented incorporates the operations of the Predecessor Fund, which, as a result of the reorganization, are the Fund's operations.

2 Reflects operations for the period from September 15, 2005 (date of initial public investment) to July 31, 2006.

3 Per share numbers have been calculated using the average shares method.

4 Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. Total returns for periods of less than one year are not annualized.

5 Computed on an annualized basis.

6 This expense decrease is reflected in both the net expense and the net investment income ratios shown above.

7 Portfolio turnover is calculated at the Fund level. Percentage indicated was calculated for the year ended July 31, 2006.

See Notes which are an integral part of the Financial Statements

Financial Highlights - Class K Shares

(For a Share Outstanding Throughout Each Period)

	Period Ended 1/31/2007	1
Net Asset Value, Beginning of Period	$14.28
Income From Investment Operations:
Net investment income	0.05	2
Net realized and unrealized gain on investments	0.09
TOTAL FROM INVESTMENT OPERATIONS	0.14
Less Distributions:
Distributions from net investment income	(0.17	)
Distributions from net realized gain on investments	(0.65	)
TOTAL DISTRIBUTIONS	(0.82	)
Net Asset Value, End of Period	$13.60
Total Return 3	1.14	%
Ratios to Average Net Assets:
Net expenses	1.90	% 4
Net investment income	2.83	% 4
Expense waiver/reimbursement 5	0.03	% 4
Supplemental Data:
Net assets, end of period (000 omitted)	$0	6
Portfolio turnover	89	% 7

1 Reflects operations for the period from December 12, 2006 (date of initial public investment) to January 31, 2007.

2 Per share numbers have been calculated using the average shares method.

3 Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. Total returns for periods of less than one year are not annualized.

4 Computed on an annualized basis.

5 This expense decrease is reflected in both the net expense and the net investment income ratios shown above.

6 Represents less than $1,000.

7 Portfolio turnover is calculated at the Fund level. Percentage indicated was calculated for the six months ended January 31, 2007.

See Notes which are an integral part of the Financial Statements

Shareholder Expense Example

As a shareholder of the Fund, you incur two types of cost: (1) transaction costs, including sales charges (loads) on purchase or redemption payments and (2) ongoing costs, including management fees; to the extent applicable, distribution (12b-1) fees and/or shareholder services fees and other Fund expenses. This Example is intended to help you to understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. It is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from August 1, 2006 ¹ to January 31, 2007.

ACTUAL EXPENSES

The first section of the table below provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you incurred over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled "Expenses Paid During Period" to estimate the expenses attributable to your investment during this period.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

The second section of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. Thus, you should not use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are required to be provided to enable you to compare the ongoing costs of investing in the Fund with other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase or redemption payments. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.

	Beginning Account Value 8/1/2006	Ending Account Value 1/31/2007	Expenses Paid During Period 1
Actual:
Class A Shares	$1,000	$1,089.40	$ 7.37
Class C Shares	$1,000	$1,084.60	$11.30
Class K Shares	$1,000	$1,011.40	$ 2.67
Hypothetical (assuming a 5% return before expenses):
Class A Shares	$1,000	$1,018.15	$ 7.12
Class C Shares	$1,000	$1,014.37	$10.92
Class K Shares	$1,000	$1,015.63	$ 9.65

1 "Actual" expense information for the Fund's Class K Shares is for the period from December 12, 2006 (date of initial public investment) to January 31, 2007. Actual expenses are equal to the annualized net expense ratio of the Fund's Class K Shares, multiplied by 51/365 (to reflect the period from initial public investments to January 31, 2007). "Hypothetical" expense information for Class A Shares, Class C Shares and Class K Shares is presented on the basis of the full one half year period to enable comparison to other funds. It is based on assuming the same net expense ratio and average account value over the period, but it is multiplied by 184/365 ( to reflect the full half-year period), The annualized net expense ratios are as follows:

Class A Shares	1.40%
Class C Shares	2.15%
Class K Shares	1.90%

Portfolio of Investments Summary Tables

At January 31, 2007, the Fund's portfolio composition ¹ was as follows:

Security Type	Percentage of Total Net Assets
Domestic Equity	56.6	%
U.S. Treasury and Agency Securities 2	11.4	%
Corporate Debt Securities	10.1	%
Foreign Stock ETF	8.0	%
Mortgage-Backed Securities	5.9	%
International Equity	1.9	%
Foreign Debt Securities	1.6	%
Collateralized Mortgage Obligations	1.5	%
Asset-Backed Securities	1.0	%
Cash Equivalents 3	3.5	%
Other Assets and Liabilities-Net 4	(1.5	)%
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 these tables, 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.

2 Also includes $3,809,615 million held in U.S. Treasuries pledged as collateral to ensure the Fund is able to satisfy the obligations of its outstanding long futures contracts.

3 Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements.

4 Assets, other than investments in securities, less liabilities.

At January 31, 2007, the Fund's industry composition ⁵ for its equity securities was as follows:

Industry	Percentage of Equity Securities
Insurance	16.3	%
Real Estate Investment Trusts	11.4	%
Oil, Gas & Consumable Fuels	10.9	%
Capital Markets	7.4	%
Commercial Banks	6.6	%
Household Products	5.0	%
Media	4.8	%
Energy Equipment & Services	4.5	%
Health Care Equipment & Supplies	2.2	%
Computers & Peripherals	2.1	%
Biotechnology	2.0	%
Health Care Providers & Services	2.0	%
Diversified Financial Services	1.6	%
Industrial Conglomerates	1.6	%
Specialty Retail	1.6	%
Chemicals	1.5	%
Pharmaceuticals	1.5	%
Road & Rail	1.5	%
Household Durables	1.2	%
Thrifts & Mortgage Finance	1.2	%
IT Services	1.1	%
Other 6	12.0	%
TOTAL	100.0	%

5 Industry classifications are based upon, and individual securities are assigned to, the classifications of the Global Industry Classification Standard (GICS) except that the adviser assigns a classification to securities not classified by the GICS and to securities for which the adviser does not have access to the classification made by the GICS.

6 For purposes of this table, industry classifications which constitute less than 1.0% of the Fund's total net assets have been aggregated under the designation "Other".

Portfolio of Investments

January 31, 2007 (unaudited)

Shares					Value
			COMMON STOCKS--58.5%
			Aerospace & Defense--0.3%
	800		Lockheed Martin Corp.	$	77,752
	6,400		Raytheon Co.		332,160
	800		United Technologies Corp.		54,416
			TOTAL		464,328
			Biotechnology--1.2%
	1,500	1	Cephalon, Inc.		108,615
	14,700	1	Genentech, Inc.		1,284,339
	4,300	1	Medimmune, Inc.		149,038
			TOTAL		1,541,992
			Building Products--0.1%
	3,200		American Standard Cos.		158,048
			Capital Markets--4.4%
	600	1	Affiliated Managers Group		66,840
	4,700		Bear Stearns Cos., Inc.		774,795
	900		Lehman Brothers Holdings, Inc.		74,016
	17,900		Merrill Lynch & Co., Inc.		1,674,724
	38,500		Morgan Stanley		3,187,415
			TOTAL		5,777,790
			Chemicals--0.9%
	500		Ashland, Inc.		34,775
	26,300		Dow Chemical Co.		1,092,502
	2,100	1	Nalco Holding Co.		48,279
			TOTAL		1,175,556
Shares					Value
			COMMON STOCKS--continued
			Commercial Banks--3.8%
	300		City National Corp.	$	21,579
	7,400		Comerica, Inc.		438,820
	3,100		Fifth Third Bancorp		123,690
	700		Huntington Bancshares, Inc.		16,296
	62,500		J.P. Morgan Chase & Co.		3,183,125
	11,157		KeyCorp		425,863
	12,000		National City Corp.		454,200
	3,600		SunTrust Banks, Inc.		299,160
	2,300		UnionBanCal Corp.		148,626
			TOTAL		5,111,359
			Commercial Services & Supplies--0.5%
	500		Brinks Co. (The)		31,075
	900		Dun & Bradstreet Corp.		76,500
	1,000		Equifax, Inc.		41,530
	1,700		Miller Herman, Inc.		63,920
	2,900		Pitney Bowes, Inc.		138,823
	5,100		Robert Half International, Inc.		207,570
	1,400	1	TeleTech Holdings, Inc.		37,730
	500	1	United Stationers, Inc.		25,480
			TOTAL		622,628
			Communications Equipment--0.1%
	1,700	1	Comverse Technology, Inc.		32,895
	800	1	F5 Networks, Inc.		57,152
			TOTAL		90,047
			Computers & Peripherals--1.2%
	15,200	1	Apple, Inc.		1,303,096
	9,400	1	Network Appliance, Inc.		353,440
			TOTAL		1,656,536
Shares					Value
			COMMON STOCKS--continued
			Construction Materials--0.2%
	600		Texas Industries, Inc.	$	44,052
	1,800		Vulcan Materials Co.		183,312
			TOTAL		227,364
			Consumer Finance--0.2%
	5,000	1	Americredit Corp.		135,700
	2,200	1	First Marblehead Corp.		119,680
			TOTAL		255,380
			Containers & Packaging--0.1%
	1,300	1	Crown Holdings, Inc.		28,691
	800		Sealed Air Corp.		52,720
	1,600		Temple-Inland, Inc.		79,904
			TOTAL		161,315
			Diversified Consumer Services--0.1%
	800	1	ITT Educational Services, Inc.		62,080
	1,600	1	Weight Watchers International, Inc.		86,448
			TOTAL		148,528
			Diversified Financial Services--0.9%
	13,300		CIT Group, Inc.		784,168
	300		Chicago Mercantile Exchange Holdings, Inc.		168,990
	4,200		Moody's Corp.		300,552
			TOTAL		1,253,710
			Diversified Telecommunication Services--0.3%
	7,000		Embarq Corp.		388,570
			Electric Utilities--0.4%
	4,400	1	Allegheny Energy, Inc.		204,688
	2,900		Edison International		130,442
	1,300		FirstEnergy Corp.		77,129
	1,300		Portland General Electric Co		33,982
	4,700	1	Reliant Resources, Inc.		69,936
			TOTAL		516,177
Shares					Value
			COMMON STOCKS--continued
			Electrical Equipment--0.5%
	13,800		Honeywell International, Inc.	$	630,522
	500		Roper Industries, Inc.		25,960
			TOTAL		656,482
			Electronic Equipment & Instruments--0.4%
	2,900		Amphenol Corp., Class A		196,388
	5,400	1	Avnet, Inc.		167,670
	1,200		Daktronics, Inc.		41,484
	4,500	1	Ingram Micro, Inc., Class A		87,795
	2,000		National Instruments Corp.		57,620
	100	1	Tech Data Corp.		3,714
			TOTAL		554,671
			Energy Equipment & Services--2.6%
	3,300	1	Cameron International Corp.		173,250
	300	1	FMC Technologies, Inc.		18,579
	1,500		GlobalSantaFe Corp.		87,015
	1,900	1	Oceaneering International, Inc.		74,993
	4,200		Patterson-UTI Energy, Inc.		101,430
	500	1	SEACOR Holdings, Inc.		50,615
	39,900		Schlumberger Ltd.		2,533,251
	6,000	1	Transocean Sedco Forex, Inc.		464,220
			TOTAL		3,503,353
			Food & Staples Retailing--0.2%
	4,100		Costco Wholesale Corp.		230,338
	1,800		Kroger Co.		46,080
	1,100		Longs Drug Stores Corp.		47,300
			TOTAL		323,718
			Food Products--0.3%
	5,700		Kellogg Co.		280,839
	3,500		Kraft Foods, Inc., Class A		122,220
			TOTAL		403,059
Shares					Value
			COMMON STOCKS--continued
			Gas Utilities--0.1%
	1,700		Energen Corp.	$	78,676
			Health Care Equipment & Supplies--1.3%
	1,600		Dentsply International, Inc.		49,344
	1,700	1	Immucor, Inc.		53,618
	25,500		Medtronic, Inc.		1,362,975
	600		Mentor Corp.		30,594
	5,300	1	St. Jude Medical, Inc.		226,628
			TOTAL		1,723,159
			Health Care Providers & Services--1.2%
	8,800		Cardinal Health, Inc.		628,496
	1,300	1	DaVita, Inc.		70,980
	900	1	Lincare Holdings, Inc.		35,415
	3,500	1	Medco Health Solutions, Inc.		207,235
	1,600	1	Psychiatric Solutions, Inc.		62,304
	6,800	1	Wellpoint, Inc.		532,984
			TOTAL		1,537,414
			Health Care Technology--0.1%
	2,900		IMS Health, Inc.		83,694
			Hotels, Restaurants & Leisure--0.3%
	700	1	LifeTime Fitness, Inc.		37,940
	400	1	Wynn Resorts Ltd.		44,696
	5,200		Yum! Brands, Inc.		312,052
			TOTAL		394,688
			Household Durables--0.7%
	2,500		Beazer Homes USA, Inc.		108,775
	2,400		Centex Corp.		128,856
	3,100		KB Home		168,082
	800		M.D.C. Holdings, Inc.		46,616
	400	1	Meritage Corp.		17,780
Shares					Value
			COMMON STOCKS--continued
			Household Durables--continued
	8,800		Pulte Homes, Inc.	$	302,192
	1,500		Ryland Group, Inc.		84,270
	1,800		Standard Pacific Corp.		49,392
			TOTAL		905,963
			Household Products--2.9%
	8,500		Kimberly-Clark Corp.		589,900
	50,400		Procter & Gamble Co.		3,269,448
			TOTAL		3,859,348
			IT Services--0.6%
	800	1	Alliance Data Systems Corp.		54,344
	3,700		Automatic Data Processing, Inc.		176,564
	1,300	1	Ceridian Corp. - New		38,961
	1,000	1	Checkfree Corp.		41,430
	3,500	1	Cognizant Technology Solutions Corp.		298,515
	2,300	1	Computer Sciences Corp.		120,658
	2,300	1	Fiserv, Inc.		120,911
			TOTAL		851,383
			Independent Power Producers & Energy Traders--0.0%
	1,100	1	AES Corp.		22,869
			Industrial Conglomerates--0.9%
	14,000		3M Co.		1,040,200
	3,600	1	McDermott International, Inc.		185,904
	500		Teleflex, Inc.		33,390
			TOTAL		1,259,494
			Insurance--9.5%
	25,950		Allstate Corp.		1,561,152
	5,000		Ambac Financial Group, Inc.		440,500
	4,050		American Financial Group Inc., Ohio		143,046
	47,800		American International Group, Inc.		3,271,910
Shares					Value
			COMMON STOCKS--continued
			Insurance--continued
	4,700		Assurant, Inc.	$	261,226
	6,600		Berkley, W. R. Corp.		218,394
	2,700	1	CNA Financial Corp.		109,755
	14,600		Chubb Corp.		759,784
	2,300		Commerce Group, Inc.		69,414
	2,100		HCC Insurance Holdings, Inc.		65,583
	1,600		Hanover Insurance Group, Inc.		76,880
	3,800		Hartford Financial Services Group, Inc.		360,658
	11,300		Loews Corp.		491,098
	5,200		MBIA, Inc.		373,516
	30,600		MetLife, Inc.		1,900,872
	1,900		Nationwide Financial Services, Inc., Class A		103,835
	1,400		Odyssey Re Holdings Corp.		55,230
	1,600		Ohio Casualty Corp.		47,264
	22,900		Progressive Corp. Ohio		531,051
	2,000		Reinsurance Group of America		116,300
	4,200		Safeco Corp.		268,842
	400		Safety Insurance Group, Inc.		19,536
	1,000		StanCorp Financial Group, Inc.		47,850
	26,200		The St. Paul Travelers Cos., Inc.		1,332,270
			TOTAL		12,625,966
			Internet & Catalog Retail--0.2%
	2,500	1	Expedia, Inc.		53,625
	3,500	1	IAC Interactive Corp.		134,400
	1,100	1	Nutri/System, Inc.		48,455
			TOTAL		236,480
			Internet Software & Services--0.2%
	3,000	1	ValueClick, Inc.		76,560
	5,400	1	eBay, Inc.		174,906
			TOTAL		251,466
Shares					Value
			COMMON STOCKS--continued
			Leisure Equipment & Products--0.0%
	1,200		Brunswick Corp.	$	40,932
			Life Sciences Tools & Services--0.1%
	1,700	1	Waters Corp.		96,373
			Machinery--0.4%
	1,200		Briggs & Stratton Corp.		35,568
	3,100		Danaher Corp.		229,586
	2,900		Deere & Co.		290,812
			TOTAL		555,966
			Media--2.8%
	40,900	1	Comcast Corp., Class A		1,812,688
	5,400	1	Discovery Holding Co. Series A		89,478
	1,300	1	Lamar Advertising Co.		86,164
	5,900		McGraw-Hill Cos., Inc.		395,772
	2,900		Omnicom Group, Inc.		305,080
	39,900		Time Warner, Inc.		872,613
	4,800	1	Viacom, Inc., Class B - New		195,216
			TOTAL		3,757,011
			Metals & Mining--0.2%
	4,500		Commercial Metals Corp.		121,995
	900		Metal Management, Inc.		36,936
	900		Quanex Corp.		35,271
	2,100		Worthington Industries, Inc.		40,278
			TOTAL		234,480
			Multi-Utilities--0.2%
	5,200		P G & E Corp.		242,736
	700		SCANA Corp.		28,504
			TOTAL		271,240
Shares					Value
			COMMON STOCKS--continued
			Multiline Retail--0.5%
	3,900	1	Sears Holdings Corp.	$	688,935
			Oil, Gas & Consumable Fuels--6.4%
	27,700		Anadarko Petroleum Corp.		1,211,875
	43,100		Chevron Corp.		3,141,128
	15,200		Devon Energy Corp.		1,065,368
	1,300	1	General Maritime Corp.		47,437
	15,500		Marathon Oil Corp.		1,400,270
	2,100		OMI Corp.		46,326
	3,900		Pioneer Natural Resources, Inc.		159,900
	2,200		Pogo Producing Co.		109,010
	3,200		Tesoro Petroleum Corp.		263,648
	18,900		Valero Energy Corp.		1,025,892
			TOTAL		8,470,854
			Paper & Forest Products--0.1%
	3,400		MeadWestvaco Corp.		102,476
			Personal Products--0.1%
	2,200		Avon Products, Inc.		75,658
			Pharmaceuticals--0.8%
	10,600		Johnson & Johnson		708,080
	16,400		Schering Plough Corp.		410,000
			TOTAL		1,118,080
			Real Estate Investment Trusts--6.7%
	6,000		AMB Property Corp.		365,100
	4,200		Alexandria Real Estate Equities, Inc.		455,112
	9,650		Archstone-Smith Trust		609,977
	4,100		Avalonbay Communities, Inc.		608,276
	6,350		Boston Properties, Inc.		800,671
Shares					Value
			COMMON STOCKS--continued
			Real Estate Investment Trusts--continued
	4,450		Developers Diversified Realty	$	298,684
	9,900		Equity Residential Properties Trust		557,172
	2,800		Federal Realty Investment Trust		261,576
	5,000		General Growth Properties, Inc.		307,600
	9,900		Health Care Property Investors, Inc.		408,375
	15,000		Host Hotels & Resorts, Inc.		397,050
	6,100		Kimco Realty Corp.		302,560
	7,700		Prologis Trust		500,500
	4,500		Public Storage, Inc.		489,420
	5,300		SL Green Realty Corp.		776,874
	7,000		Simon Property Group, Inc.		800,730
	6,200		Taubman Centers, Inc.		361,274
	4,850		Vornado Realty Trust		593,398
			TOTAL		8,894,349
			Road & Rail--0.9%
	2,000		Burlington Northern Santa Fe		160,720
	1,800		Con-way, Inc.		89,532
	15,700		Norfolk Southern Corp.		779,505
	2,200		Ryder Systems, Inc.		119,988
	1,800		Werner Enterprises, Inc.		34,218
			TOTAL		1,183,963
			Semiconductors & Semiconductor Equipment--0.1%
	2,300	1	MEMC Electronic Materials		120,520
			Software--0.4%
	22,400	1	Oracle Corp.		384,384
	700		Quality Systems, Inc.		29,701
	1,800	1	THQ, Inc.		54,540
			TOTAL		468,625
Shares or Principal Amount					Value
			COMMON STOCKS--continued
			Specialty Retail--0.9%
	700	1	AutoZone, Inc.	$	87,941
	3,100	1	CarMax, Inc.		178,033
	600	1	Children's Place Retail Stores, Inc.		32,526
	1,100	1	Dick's Sporting Goods, Inc.		56,639
	1,400	1	Guess ?, Inc.		100,954
	800	1	Gymboree Corp.		34,632
	17,600		Home Depot, Inc.		717,024
	800	1	J Crew Group Inc.		29,064
	100	1	Zale Corp.		2,752
			TOTAL		1,239,565
			Textiles, Apparel & Luxury Goods--0.5%
	13,800	1	Coach, Inc.		632,868
	1,200	1	Crocs, Inc.		60,408
			TOTAL		693,276
			Thrifts & Mortgage Finance--0.7%
	1,200		Downey Financial Corp.		85,848
	2,000		Federal Home Loan Mortgage Corp.		129,860
	1,000	1	FirstFed Financial Corp.		68,950
	3,800		MGIC Investment Corp.		234,536
	3,600		PMI Group, Inc.		172,152
	3,700		Radian Group, Inc.		222,814
			TOTAL		914,160
			Wireless Telecommunication Services--0.0%
	400	1	U.S. Cellular Corp.		28,840
			TOTAL COMMON STOCKS (IDENTIFIED COST $68,470,848)		77,776,514
			ASSET-BACKED SECURITIES--1.0%
$	58,994		CS First Boston Mortgage Securities Corp. 2002-HE4 AF, 5.51%, 8/25/2032		58,460
	648,723		Community Program Loan Trust 1987-A A4, 4.5%, 10/01/2018		638,909
	452,714		MMCA Automobile Trust 2002-2 C, 5.55%, 3/15/2010		451,692
	140,000		Morgan Stanley Capital I 2006-IQ12 A4, 5.319%, 12/15/2043		137,539
			TOTAL ASSET-BACKED SECURITIES (IDENTIFIED COST $1,297,142)		1,286,600
Principal Amount					Value
			COLLATERALIZED MORTGAGE OBLIGATIONS--0.5%
$	469,749		Bear Stearns Asset Backed Securities, Inc. 2005-AC6, Class 21PO, 0.00%, 9/25/2020	$	314,914
	5,692		Bear Stearns Mortgage Securities, Inc. 1997-6, Class 1A, 6.65%, 3/25/2031		5,592
	16,838		Federal Home Loan Mortgage Corp. REMIC 1311 K, 7.00%, 7/15/2022		16,784
	33,518		Federal Home Loan Mortgage Corp. REMIC 1384 D, 7.00%, 9/15/2022		33,419
	39,298		Federal Home Loan Mortgage Corp. REMIC 1595 D, 7.00%, 10/15/2013		40,806
	75,000		Federal Home Loan Mortgage Corp. REMIC 2497 JH, 6.00%, 9/15/2032		75,595
	67,057		Federal Home Loan Mortgage Corp. REMIC 2676 JA, 4.00%, 8/15/2013		66,830
	82,752		Federal National Mortgage Association REMIC 1993-113 SB, 9.75%, 7/25/2023		91,131
	16,017		Federal National Mortgage Association REMIC 2001-37 GA, 8.00%, 7/25/2016		16,653
	20,980		Federal National Mortgage Association REMIC 2003-35 UC, 3.75%, 5/25/2033		19,423
	20,173		Government National Mortgage Association REMIC 1999-29 PB, 7.25%, 7/16/2028		20,434
	61,195		Government National Mortgage Association REMIC 2002-17 B, 6.00%, 3/20/2032		61,806
			TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (IDENTIFIED COST $810,587)		763,387
			CORPORATE BONDS--9.8%
			Basic Industry - Chemicals--0.0%
	75,000		Albemarle Corp., Sr. Note, 5.10%, 2/01/2015		70,787
			Basic Industry - Metals & Mining--0.3%
	35,000		Alcoa, Inc., Note, 5.55%, 2/01/2017		34,865
	100,000		BHP Finance (USA), Inc., Company Guarantee, 5.25%, 12/15/2015		98,176
	150,000		Vale Overseas Limited, 6.875%, 11/21/2036		152,438
	150,000	2,3	Xstrata Finance Canada L, Unsecd. Note, 5.50%, 11/16/2011		148,831
			TOTAL		434,310
			Capital Goods - Aerospace & Defense--0.2%
	125,000		Boeing Co., Note, 5.125%, 2/15/2013		123,821
	200,000		Raytheon Co., Unsecd. Note, 5.375%, 4/01/2013		199,311
			TOTAL		323,132
Principal Amount					Value
			CORPORATE BONDS--continued
			Capital Goods - Diversified Manufacturing--0.1%
$	100,000		Emerson Electric Co., Unsecd. Note, 5.75%, 11/01/2011	$	101,619
			Capital Goods - Environmental--0.1%
	100,000		Waste Management, Inc., 7.375%, 8/01/2010		105,994
			Communications - Media & Cable--0.1%
	100,000		Comcast Corp., Sr. Note, 7.125%, 6/15/2013		108,102
	75,000		Cox Communications, Inc., Unsecd. Note, 5.45%, 12/15/2014		73,425
			TOTAL		181,527
			Communications - Media Noncable--0.2%
	100,000		British Sky Broadcasting Group PLC, 8.20%, 7/15/2009		106,113
	75,000		News America Holdings, Company Guarantee, 8.00%, 10/17/2016		86,120
	75,000		News America Holdings, Sr. Deb., 9.25%, 2/1/2013		87,556
			TOTAL		279,789
			Communications - Telecom Wireless--0.3%
	150,000		AT&T Wireless Services, Sr. Note, 8.75%, 3/01/2031		195,113
	100,000		Cingular Wireless LLC, Sr. Note, 6.50%, 12/15/2011		104,657
	100,000		Sprint Capital Corp., Note, 8.375%, 3/15/2012		110,853
			TOTAL		410,623
			Communications - Telecom Wirelines--0.4%
	400,000		GTE North, Inc., Deb., Series D, 6.90%, 11/01/2008		409,847
	75,000		Telefonica SA, Company Guarantee, 7.045%, 6/20/2036		81,052
	100,000		Telefonos de Mexico, Note, 4.50%, 11/19/2008		98,050
			TOTAL		588,949
			Consumer Cyclical - Automotive--0.3%
	75,000		DaimlerChrysler North America, Sr. Note, 4.875%, 6/15/2010		73,208
	50,000		DaimlerChrysler North America Holding Corp., Sr. Note, 6.50%, 11/15/2013		51,329
	300,000		General Motors Acceptance, Note, 6.125%, 2/01/2007		300,000
			TOTAL		424,537
			Consumer Cyclical - Entertainment--0.1%
	75,000		Disney Co., Note, 5.70%, 7/15/2011		76,131
	100,000		Time Warner, Inc., 5.50%, 11/15/2011		99,804
			TOTAL		175,935
Principal Amount					Value
			CORPORATE BONDS--continued
			Consumer Cyclical - Lodging--0.1%
$	100,000	2,3	Wyndham Worldwide Corp., Sr. Unsecd. Note, 6.00%, 12/01/2016	$	98,533
			Consumer Cyclical - Retailers--0.2%
	125,000		Home Depot, Inc., 5.40%, 3/01/2016		120,917
	100,000		Target Corp., 5.875%, 3/01/2012		102,518
			TOTAL		223,435
			Consumer Non-Cyclical Food/Beverage--0.2%
	100,000		Bottling Group, LLC, Note, 5.50%, 4/01/2016		99,850
	40,000		General Mills, Inc., Note, 5.70%, 2/15/2017		39,966
	75,000		Kraft Foods, Inc., Note, 5.25%, 10/01/2013		73,913
	50,000		Kraft Foods, Inc., Note, 6.25%, 6/01/2012		51,746
			TOTAL		265,475
			Consumer Non-Cyclical Health Care--0.1%
	100,000		Medtronic, Inc., Note, Series B, 4.375%, 9/15/2010		97,138
			Consumer Non-Cyclical Pharmaceuticals--0.4%
	75,000		Abbott Laboratories, Note, 5.375%, 5/15/2009		75,300
	100,000		Genentech, Inc., Sr. Note, 4.75%, 7/15/2015		95,371
	125,000		Lilly (Eli) & Co., Unsecd. Note, 6.57%, 1/1/2016		134,551
	100,000		Pharmacia Corp., Sr. Deb., 6.50%, 12/01/2018		108,202
	100,000		Wyeth, Unsecd. Note, 5.50%, 2/01/2014		100,060
			TOTAL		513,484
			Consumer Non-Cyclical Supermarkets--0.2%
	250,000		Safeway Inc., Sr. Unsecd. Note, 4.80%, 7/16/2007		249,120
			Consumer Non-Cyclical Tobacco--0.0%
	75,000		Altria Group, Inc., Note, 7.00%, 11/04/2013		81,642
			Energy - Independent--0.2%
	55,000		Anadarko Petroleum Corp., Sr. Note, 5.95%, 9/15/2016		54,619
	50,000		Canadian Natural Resources, 4.90%, 12/01/2014		47,106
	150,000		Pemex Project Funding Master, Company Guarantee, 9.125%, 10/13/2010		166,995
			TOTAL		268,720
Principal Amount					Value
			CORPORATE BONDS--continued
			Energy - Integrated--0.2%
$	75,000		Conoco Funding Co., 7.25%, 10/15/2031	$	87,594
	75,000		ConocoPhillips Australia, 5.50%, 4/15/2013		75,374
	100,000		Husky Oil Ltd., Sr. Deb., 7.55%, 11/15/2016		111,698
			TOTAL		274,666
			Energy - Refining--0.2%
	100,000		Valero Energy Corp., 6.875%, 4/15/2012		105,703
	50,000		Valero Energy Corp., 7.50%, 4/15/2032		56,955
	75,000		Valero Energy Corp., Note, 4.75%, 4/01/2014		70,358
			TOTAL		233,016
			Financial Institution - Banking--1.8%
	200,000		Bank of America Corp., Sr. Note, 5.375%, 6/15/2014		199,437
	120,000		Capital One Capital IV, 6.745%, 2/17/2037		121,157
	200,000		Citigroup, Inc., Note, 5.125%, 2/14/2011		199,021
	100,000		Credit Suisse First Boston, Sr. Note, 5.50%, 8/16/2011		100,898
	100,000		HSBC Finance Capital Trust, Note, 5.911%, 11/30/2035		100,851
	200,000		HSBC Finance Corp., 4.75%, 4/15/2010		197,015
	100,000		Household Finance Corp., Note, 7.00%, 5/15/2012		107,417
	150,000		J.P. Morgan Chase & Co., 5.75%, 1/02/2013		152,735
	100,000		Marshall & Ilsley Bank, Sr. Note, 4.40%, 3/15/2010		97,444
	200,000		Northern Trust Corp., Sr. Note, 5.30%, 8/29/2011		200,039
	100,000		PNC Funding Corp., Sub. Note, 7.50%, 11/01/2009		105,310
	100,000		Popular North America, 5.65%, 4/15/2009		100,078
	250,000		US BANK NA, Sub. Note, 4.95%, 10/30/2014		242,308
	250,000		Wachovia Bank N.A., 4.80%, 11/01/2014		238,601
	100,000		Wells Fargo Bank, N.A., Sub. Note, 6.45%, 2/01/2011		104,116
	75,000		Zions Bancorp, Sub. Note, 5.50%, 11/16/2015		73,204
			TOTAL		2,339,631
Principal Amount					Value
			CORPORATE BONDS--continued
			Financial Institution - Brokerage--0.7%
$	100,000		Amvescap PLC, Sr. Note, 4.50%, 12/15/2009	$	97,471
	100,000		Bear Stearns & Cos., Inc., Unsecd. Note, 3.25%, 3/25/2009		96,046
	150,000		Goldman Sachs Group, Inc., Note, 5.25%, 10/15/2013		148,556
	400,000		Merrill Lynch & Co., Inc., Sr. Unsub., Series CORE, 5.908%, 1/31/2008		400,160
	150,000		Merrill Lynch & Co., Inc., Unsecd. Note, 5.45%, 7/15/2014		149,715
	100,000		Morgan Stanley, Note, 4.00%, 1/15/2010		96,616
			TOTAL		988,564
			Financial Institution - Finance Noncaptive--1.1%
	100,000		American Express Co., Global Sr. Note, 4.75%, 6/17/2009		99,049
	100,000		American General Finance Corp., 4.00%, 3/15/2011		95,029
	150,000		Berkshire Hathaway, Inc., Company Guarantee, 4.85%, 1/15/2015		145,363
	364,000		General Electric Capital, Note, 4.875%, 10/21/2010		360,192
	100,000		General Electric Capital, Note, 4.875%, 3/04/2015		97,104
	200,000	2,3	ILFC E-Capital Trust I, 5.90%, 12/21/2065		201,248
	100,000		International Lease Finance Corp., Note, 4.875%, 9/01/2010		98,644
	75,000		SLM Corp., Note, 4.00%, 1/15/2010		72,147
	300,000		SLM Corp., Note, Series A, 3.95%, 8/15/2008		293,321
			TOTAL		1,462,097
			Financial Institution - Insurance - Health--0.1%
	75,000		Aetna US Healthcare, Sr. Note, 5.75%, 6/15/2011		75,960
			Financial Institution - Insurance - Life--0.1%
	100,000		AXA-UAP, Sub. Note, 8.60%, 12/15/2030		129,156
			Financial Institution - Insurance - P&C--0.5%
	100,000		The St. Paul Travelers Co., Inc., Sr. Unsecd. Note, 5.50%, 12/01/2015		99,632
	500,000	2,3	ZFS Finance USA Trust I, Jr. Sub. Note, 6.15%, 12/15/2065		507,375
			TOTAL		607,007
Principal Amount					Value
			CORPORATE BONDS--continued
			Financial Institution - REITs--0.1%
$	75,000		Health Care Property Investments Inc., 5.95%, 9/15/2011	$	75,488
			Foreign-Local-Govt--0.1%
	100,000		Ontario, Province of, Note, 4.50%, 2/03/2015		95,660
			Technology--0.2%
	75,000		Cisco Systems, Inc., Sr. Note, 5.25%, 2/22/2011		75,045
	100,000		Dell Computer Corp., Sr. Deb., 7.10%, 4/15/2028		108,150
	100,000		Oracle Corp., Sr. Unsecd. Note, Series WI, 5.00%, 1/15/2011		98,849
			TOTAL		282,044
			Transportation - Airlines--0.1%
	75,000		Southwest Airlines Co., 6.50%, 3/01/2012		77,870
	50,000		Southwest Airlines Co., Deb., 7.375%, 3/1/2027		54,324
			TOTAL		132,194
			Transportation - Railroads--0.2%
	75,000		Burlington Northern Santa Fe Corp., Sr. Note, 4.875%, 1/15/2015		71,588
	100,000		Norfolk Southern Corp., Sr. Note, 6.75%, 2/15/2011		104,746
	100,000		Union Pacific Corp., 4.875%, 1/15/2015		95,513
			TOTAL		271,847
			Transportation - Services--0.1%
	100,000		FedEx Corp., Note, 5.50%, 8/15/2009		100,486
			Utility - Electric--0.7%
	100,000		Cleveland Electric Illum, Sr. Unsecd. Note, 5.95%, 12/15/2036		95,955
	100,000		Consolidated Edison Co., Sr. Unsecd. Note, Series 2006C, 5.50%, 9/15/2016		100,282
	100,000		Exelon Generation Co. LLC, Sr. Note, 5.35%, 1/15/2014		98,167
	100,000		FirstEnergy Corp., Note, Series B, 6.45%, 11/15/2011		104,176
	100,000		PSEG Power LLC, Company Guarantee, 7.75%, 4/15/2011		108,535
	75,000		PSI Energy, Inc., Bond, 6.05%, 6/15/2016		77,202
	100,000		Pacific Gas & Electric Co., Unsecd. Note, 4.20%, 3/01/2011		95,519
	300,000		Wisconsin Power & Light Co., Note, 7.00%, 6/15/2007		301,582
			TOTAL		981,418
Principal Amount or Shares					Value
			CORPORATE BONDS--continued
			Utility - Natural Gas Distributor--0.1%
$	100,000		Atmos Energy Corp., Sr. Note, 4.00%, 10/15/2009	$	96,448
			TOTAL CORPORATE BONDS (IDENTIFIED COST $13,191,085)		13,040,431
			GOVERNMENT AGENCIES--6.8%
	4,000,000		Federal Home Loan Bank System, 5.375% 8/19/2011		4,048,648
	1,000,000		Federal Home Loan Mortgage Corp., 4.125%, 7/12/2010		970,660
	1,000,000		Federal Home Loan Mortgage Corp., 5.25%, 7/18/2011		1,007,235
	1,000,000		Federal Home Loan Mortgage Corp., 5.50%, 7/18/2016		1,027,315
	2,000,000		Federal National Mortgage Association, 5.25%, 1/15/2009		2,005,974
			TOTAL GOVERNMENT AGENCIES (IDENTIFIED COST $9,088,751)		9,059,832
			MORTGAGE BACKED SECURITIES--0.1%
	28,977		Federal National Mortgage Association Pool 408761, 7.00%, 12/1/2012		29,662
	12,635		Federal National Mortgage Association Pool 512255, 7.50%, 9/1/2014		13,130
	42,172		Federal National Mortgage Association Pool 609554, 7.50%, 10/1/2016		43,197
			TOTAL MORTGAGE BACKED SECURITIES (IDENTIFIED COST $86,490)		85,989
			U.S. TREASURY--4.6%
	1,197,372		U.S. Treasury Inflation Protected Note, 2.500%, 7/15/2016		1,209,912
	1,250,000		United States Treasury Bond, 4.500%, 2/15/2036		1,170,233
	4,000,000	4	United States Treasury Note, 3.875%, 2/15/2013		3,809,615
			TOTAL U.S. TREASURY (IDENTIFIED COST $6,287,764)		6,189,760
			EXCHANGE TRADED FUND--8.0%
	142,450		iShares MSCI EAFE Index Fund (IDENTIFIED COST $8,320,096)		10,575,488
			MUTUAL FUNDS--8.1%
	42,893		Emerging Markets Fixed-Income Core Fund		899,113
	807,927		Federated Mortgage Core Portfolio		7,958,084
	270,466		High Yield Bond Portfolio		1,866,216
			TOTAL MUTUAL FUNDS (IDENTIFIED COST $10,781,851)		10,723,413
Principal Amount					Value
			REPURCHASE AGREEMENT--3.0%
$	3,949,000		Interest in $250,000,000 joint repurchase agreement 5.23%, dated 1/31/2007, Mizuho Securities USA, Inc. will repurchase U.S. Treasury securities with various maturities to 2/15/2016 for $250,036,319 on 2/1/2007. The market value of the underlying securities at the end of the period was $255,000,001. (AT COST)	$	3,949,000
			TOTAL INVESTMENTS--100.4% (IDENTIFIED COST $122,283,614) 5		133,450,414
			OTHER ASSETS AND LIABILITIES - NET--(0.4)%		(573,252	)
			TOTAL NET ASSETS--100%	$	132,877,162

1 Non-income producing security.

2 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 January 31, 2007, these restricted securities amounted to $955,987, which represented 0.7% of total net assets.

3 Denotes a restricted security that may be resold without restriction to "qualified institutional buyers" as defined by 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. At January 31, 2007, these liquid restricted securities amounted to $955,987, which represented 0.7% of total net assets.

4 Pledged as collateral to ensure the Fund is able to satisfy the obligations of its outstanding long futures contracts.

5 Also represents cost for federal tax purposes.

At January 31, 2007, the Fund had the following outstanding futures contracts:

Description	Number of Contracts	Notional Value	Expiration Date	Unrealized Appreciation
1 United States Treasury Notes 10 Year Futures	13	$1,387,750	March 2007	$3,195

Note: The categories of investments are shown as a percentage of total net assets at January 31, 2007.

The following acronyms are used throughout this portfolio:

REITs	- --Real Estate Investment Trust
REMIC	- --Real Estate Mortgage Investment Conduit

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

January 31, 2007 (unaudited)

Assets:
Total investments in securities, at value including $10,723,413 of investments in affiliated issuers (Note 5) (identified cost $122,283,614)			$	133,450,414
Cash				55,099
Income receivable				490,275
Receivable for investments sold				1,951,046
Receivable for shares sold				490,141
Receivable for daily variation margin				5,078
TOTAL ASSETS				136,442,053
Liabilities:
Payable for investments purchased	$	3,227,423
Payable for shares redeemed		189,772
Payable for administrative personnel and services fee (Note 5)		58,585
Payable for Directors'/Trustees' fees		3,351
Payable for distribution services fee (Note 5)		6,465
Payable for shareholder services fee (Note 5)		17,189
Accrued expenses		62,106
TOTAL LIABILITIES				3,564,891
Net assets for 9,787,014 shares outstanding			$	132,877,162
Net Assets Consist of:
Paid-in capital			$	119,990,246
Net unrealized appreciation of investments and futures contracts				11,169,995
Accumulated net realized gain on investments				1,361,224
Undistributed net investment income				355,697
TOTAL NET ASSETS			$	132,877,162

Statement of Assets and Liabilities-continued

Net Asset Value, Offering Price and Redemption Proceeds per Share
Institutional Shares:
Net asset value per share ($81,798,718 ÷ 6,016,580 shares outstanding), no par value, unlimited shares authorized	$13.60
Offering price per share	$13.60
Redemption proceeds per share	$13.60
Class A Shares:
Net asset value per share ($39,521,221 ÷ 2,912,633 shares outstanding), no par value, unlimited shares authorized	$13.57
Offering price per share (100/94.50 of $13.57) 1	$14.36
Redemption proceeds per share	$13.57
Class C Shares:
Net asset value per share ($11,557,128 ÷ 857,794 shares outstanding), no par value, unlimited shares authorized	$13.47
Offering price per share (100/99.00 of $13.47) 1	$13.61
Redemption proceeds per share (99.00/100 of $13.47) 1	$13.34
Class K Shares:
Net asset value per share ($95.24 ÷ 7.003 shares outstanding), no par value, unlimited shares authorized	$13.60
Offering price per share	$13.60
Redemption proceeds per share	$13.60

1 See "What Do Shares Cost?" in the Prospectus.

See Notes which are an integral part of the Financial Statements

Statement of Operations

Six Months Ended January 31, 2007 (unaudited)

Investment Income:
Dividends (including $65,676 received from affiliated issuers (Note 5) and net foreign taxes withheld of $426)							$	867,491
Interest								956,499
Investment income allocated from affiliated partnership (Note 5)								7,971
TOTAL INCOME								1,831,961
Expenses:
Investment adviser fee (Note 5)				$	417,680
Administrative personnel and services fee (Note 5)					115,946
Custodian fees					19,922
Transfer and dividend disbursing agent fees and expenses					112,388
Directors'/Trustees' fees					1,614
Auditing fees					10,082
Legal fees					4,537
Portfolio accounting fees					42,415
Distribution services fee--Class A Shares (Note 5)					18,948
Distribution services fee--Class C Shares (Note 5)					34,989
Shareholder services fee--Class A Shares (Note 5)					13,539
Shareholder services fee--Class C Shares (Note 5)					3,650
Share registration costs					30,724
Printing and postage					18,702
Insurance premiums					4,607
Miscellaneous					2,439
Expenses Before Allocation					852,182
Expenses allocated from partnership					78
TOTAL EXPENSES					852,260
Waivers:
Waiver of investment adviser fee (Note 5)	$	(76,553	)
Waiver of administrative personnel and services fee (Note 5)		(57,249	)
Waiver of transfer and dividend disbursing agent fees and expenses		(8,286	)
TOTAL WAIVERS					(142,088	)
Net expenses								710,172
Net investment income								1,121,789
Realized and Unrealized Gain on Investments and Futures Contracts:
Net realized gain on investments								1,869,675
Net realized gain allocated from partnership								3,965
Net change in unrealized appreciation of investments and futures contracts								6,469,699
Net realized and unrealized gain on investments and futures contracts								8,343,339
Change in net assets resulting from operations							$	9,465,128

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

		Six Months Ended (unaudited) 1/31/2007			Year Ended 7/31/2006
Increase (Decrease) in Net Assets
Operations:
Net investment income	$	1,121,789		$	1,362,405
Net realized gain on investments including allocation from partnership		1,873,640			6,686,253
Net change in unrealized appreciation/depreciation of investments and futures contracts		6,469,699			(3,917,876	)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		9,465,128			4,130,782
Distributions to Shareholders:
Distributions from net investment income
Institutional Shares		(966,746	)		(964,275	)
Class A Shares		(418,653	)		(12	)
Class C Shares		(75,923	)		(11	)
Class K Shares		(1	)		- --
Distributions from net realized gain on investments
Institutional Shares		(3,727,211	)		(4,964,729	)
Class A Shares		(1,712,874	)		(68	)
Class C Shares		(451,805	)		(68	)
Class K Shares		(4	)		- --
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS		(7,353,217	)		(5,929,163	)
Share Transactions:
Proceeds from sale of shares		52,826,521			13,083,928
Net asset value of shares issued to shareholders in payment of distributions declared		7,010,752			5,924,802
Cost of shares redeemed		(8,691,487	)		(6,910,472	)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		51,145,786			12,098,258
Change in net assets		53,257,697			10,299,877
Net Assets:
Beginning of period		79,619,465			69,319,588
End of period (including undistributed net investment income of $355,697 and $695,231, respectively)	$	132,877,162		$	79,619,465

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

January 31, 2007 (unaudited)

1. ORGANIZATION

Federated MDT Series (the "Trust") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Trust consists of eight portfolios. The financial statements included herein are only those of Federated MDT Balanced Fund (the "Fund"), a diversified portfolio. The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held. The Fund offers four classes of shares: Institutional Shares, Class A Shares, Class C Shares and Class K Shares. All shares of the Fund have equal rights with respect to voting, except on class-specific matters. The financial highlights of the Institutional Shares are presented separately. The primary investment objective of the Fund is long term growth through capital appreciation and current income.

MDT Balanced Fund (the "Predecessor Fund") was reorganized into the Fund as of the close of business on December 8, 2006. Prior to the reorganization, the Fund had no investment operations. The Fund is the successor to the Predecessor Fund, which commenced offering Class A Shares and Class C Shares on September 15, 2005.

The Fund commenced offering Class K Shares on December 12, 2006.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with generally accepted accounting principles (GAAP) in the United States of America.

Investment Valuation

Market values of the Fund's portfolio securities are determined as follows:

• for equity securities, according to the last sale price or official closing price reported in the market in which they are primarily traded (either a national securities exchange or the over-the-counter market), if available;
• in the absence of recorded sales for equity securities, according to the mean between the last closing bid and asked prices;
• futures contracts and options are generally valued at market values established by the exchanges on which they are traded at the close of trading on such exchanges. Options traded in the over-the-counter market are generally valued according to the mean between the last bid and the last asked price for the option as provided by an investment dealer or other financial institution that deals in the option. The Board of Trustees (the "Trustees") may determine in good faith that another method of valuing such investments is necessary to appraise their fair market value;
• prices for total return swaps are furnished by an independent pricing service and are based upon a valuation model incorporating underlying reference indexes, interest rates, yield curves and other market data or factors. Prices for credit default swaps are furnished by an independent pricing service and are based upon a valuation model incorporating default probabilities, recovery rates and other market data or factors;
• for mortgage-backed securities, based on the aggregate investment value of the projected cash flows to be generated by the security, as furnished by an independent pricing service;
• for investments in other open-end regulated investment companies, based on net asset value (NAV);
• for other fixed-income securities, according to prices as furnished by an independent pricing service, except that fixed-income securities with remaining maturities of less than 60 days at the time of purchase are valued at amortized cost; and
• for all other securities at fair value as determined in accordance with procedures established by and under the general supervision of the Trustees.

Prices for fixed-income securities furnished by a pricing service may be based on a valuation matrix which incorporates both dealer-supplied valuations and electronic data processing techniques. Such prices (other than prices of mortgage-backed securities) are generally intended to be indicative of the bid prices currently offered to institutional investors for the securities except that prices for corporate fixed-income and asset-backed securities traded in the United States are generally intended to be indicative of the mean between such bid prices and asked prices. The Trustees have approved the use of such pricing services. A number of pricing services are available, and the Fund may use various pricing services or discontinue the use of any pricing service.

Prices provided by independent pricing services may be determined without relying exclusively on quoted prices and may consider institutional trading in similar groups of securities, yield, quality, stability, risk, coupon rate, maturity, type of issue, trading characteristics, and other market data or factors. From time to time, when prices cannot be obtained from an independent pricing service, securities may be valued based on quotes from broker-dealers or other financial institutions that trade the securities.

Trading in foreign securities may be completed at times which vary from the closing of the New York Stock Exchange (NYSE). In computing its NAV, the Fund values foreign securities using the latest closing price on the exchange on which they are traded immediately prior to the closing of the NYSE. Certain foreign currency exchange rates are generally determined at the latest rate prior to the closing of the NYSE. Foreign securities quoted in foreign currencies are translated into U.S. dollars at current rates. Events that affect these values and exchange rates may occur between the times at which they are determined and the closing of the NYSE. If such events materially affect the value of portfolio securities, these securities may be valued at their fair value as determined in good faith by the Trustees, although the actual calculation may be done by others.

Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (SEC), the Fund may invest in portfolios of Federated Core Trust, (Core Trust) which is managed by Federated Investment Management Company, the Fund's adviser. Core Trust is an open-end management company, registered under the Act, available only to registered investment companies and other institutional investors. The investment objective of High Yield Bond Portfolio, a series of Core Trust, is to seek high current income by investing primarily in a diversified portfolio of lower rated fixed-income securities. The investment objective of Federated Mortgage Core Portfolio, a series of Core Trust, is to achieve total return on assets. Federated receives no advisory or administrative fees on behalf of Core Trust. Income distributions from Core Trust are declared daily and paid monthly, and are recorded by the Fund as dividend income. Capital gain distributions, if any, from Core Trust are declared and paid annually, and are recorded by the Fund as capital gains. The performance of the Fund is directly affected by the performance of the Core Trust. A copy of the Core Trust's financial statements is available on the EDGAR Database on the SEC's website at www.sec.gov, at the Commission's public reference room in Washington, DC or upon request from the fund by calling 1-800-341-7400.

The Fund may also invest in portfolios of Federated Core Trust II (Core Trust II), pursuant to a separate Exemptive Order issued by the SEC. Core Trust II is independently managed by Federated Investment Counseling. Core Trust II is a limited partnership established under the laws of the state of Delaware, on November 13, 2000, registered under the Act, and offered only to registered investment companies and other accredited investors. The investment objective of Emerging Markets Fixed-Income Core Fund (EMCORE), a series of Core Trust II, is to achieve total return on assets. Federated receives no advisory or administrative fees on behalf of the Core Trust II. The Fund records daily its proportionate share of income, expenses, unrealized gains and losses from EMCORE. The performance of the Fund is directly affected by the performance of the portfolio. A copy of EMCORE's financial statements is available on the EDGAR Database on the SEC's website at www.sec.gov, at the Commission's public reference room in Washington, DC or upon request from the Fund by calling 1-800-341-7400.

Repurchase Agreements

It is the policy of the Fund to require the other party to a repurchase agreement to transfer to the Fund's custodian or sub-custodian eligible securities or cash with a market value (after transaction costs) at least equal to the repurchase price to be paid under the repurchase agreement. The eligible securities are transferred to accounts with the custodian or sub-custodian in which the Fund holds a "securities entitlement" and exercises "control" as those terms are defined in the Uniform Commercial Code. The Fund has established procedures for monitoring the market value of the transferred securities and requiring the transfer of additional eligible securities if necessary to equal at least the repurchase price. These procedures also allow the other party to require securities to be transferred from the account to the extent that their market value exceeds the repurchase price or in exchange for other eligible securities of equivalent market value.

With respect to agreements to repurchase U.S. government securities and cash items, the Fund treats the repurchase agreement as an investment in the underlying securities and not as an obligation of the other party to the repurchase agreement. Other repurchase agreements are treated as obligations of the other party secured by the underlying securities. Nevertheless, the insolvency of the other party or other failure to repurchase the securities may delay the disposition of the underlying securities or cause the Fund to receive less than the full repurchase price. Under the terms of the repurchase agreement, any amounts received by the Fund in excess of the repurchase price and related transaction costs must be remitted to the other party.

The Fund may enter into repurchase agreements in which eligible securities are transferred into joint trading accounts maintained by the custodian or sub-custodian for investment companies and other clients advised by the Fund's adviser and its affiliates. The Fund will participate on a pro rata basis with the other investment companies and clients in its share of the securities transferred under such repurchase agreements and in its share of proceeds from any repurchase or other disposition of such securities.

Investment Income, Gains and Losses, Expenses and Distributions

Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Distributions of net investment income, if any, are declared and paid annually. Non-cash dividends included in dividend income, if any, are recorded at fair value. Investment income, realized and unrealized gains and losses, and certain fund-level expenses are allocated to each class based on relative average daily net assets, except that each class bears certain expenses unique to that class such as distribution and shareholder services fees. Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses.

Premium and Discount Amortization/Paydown Gains and Losses

All premiums and discounts on fixed-income securities, other than mortgage-backed securities, are amortized/accreted for financial statement purposes. Gains and losses realized on principal payment of mortgage backed securities (paydown gains and losses) are classified as part of investment income.

Federal Taxes

It is the Fund's policy to comply with the Subchapter M provision of the Internal Revenue Code (the "Code") and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal income tax is necessary.

Withholding taxes, and where appropriate, deferred withholding taxes, on foreign interest, dividends and capital gains have been provided for in accordance with the applicable country's tax rules and rates.

When-Issued and Delayed Delivery Transactions

The Fund may engage in when-issued or delayed delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.

Futures Contracts

The Fund purchases and sells financial futures contracts to manage cashflows, enhance yield and to potentially reduce transaction costs. Upon entering into a financial futures contract with a broker, the Fund is required to deposit in a segregated account a specified amount of cash or U.S. government securities. Futures contracts are valued daily and unrealized gains or losses are recorded in a "variation margin" account. Daily, the Fund receives from or pays to the broker a specified amount of cash based upon changes in the variation margin account. When a contract is closed, the Fund recognizes a realized gain or loss. Futures contracts have market risks, including the risk that the change in the value of the contract may not correlate with the changes in the value of the underlying securities. For the six months ended January 31, 2007, the Fund had no net realized gains on futures contracts.

Futures contracts outstanding at period end, if any, are listed after the Fund's portfolio of investments.

Restricted Securities

Restricted securities are securities 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) are subject to contractual restrictions on public sales. In some cases, when a security cannot be offered for public sale without first being registered, the issuer of the restricted security has agreed to register such securities for resale, at the issuer's expense, either upon demand by the Fund or in connection with another registered offering of the securities. Many such restricted securities may be resold in the secondary market in transactions exempt from registration. Restricted securities may be determined to be liquid under criteria established by the Fund's Trustees. The Fund will not incur any registration costs upon such resales. The Fund's restricted securities are valued at the price provided by dealers in the secondary market or, if no market prices are available, at the fair value as determined in accordance with procedures established by and under the general supervision of the Trustees.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated.

Other

Investment transactions are accounted for on a trade date basis. Realized gains and losses from investment transactions are recorded on an identified cost basis.

3. SHARES OF BENEFICIAL INTEREST

The following tables summarize share activity:

	Six Months Ended 1/31/2007					Year Ended 7/31/2006
Institutional Shares:	Shares			Amount		Shares			Amount
Shares sold	448,775		$	6,257,979		533,396		$	7,149,815
Shares issued to shareholders in payment of distributions declared	346,321			4,668,405		457,148			5,924,643
Shares redeemed	(352,299	)		(4,787,322	)	(513,140	)		(6,866,506	)
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS	442,797		$	6,139,062		477,404		$	6,207,952
	Six Months Ended 1/31/2007					Period Ended 7/31/2006 1
Class A Shares:	Shares			Amount		Shares			Amount
Shares sold	2,859,856		$	38,775,142		149,529		$	1,973,594
Shares issued to shareholders in payment of distributions declared	144,781			1,948,745		6			80
Shares redeemed	(240,496	)		(3,264,822	)	(1,043	)		(13,564	)
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS	2,764,141		$	37,459,065		148,492		$	1,960,110
	Six Months Ended 1/31/2007					Period Ended 7/31/2006 1
Class C Shares:	Shares			Amount		Shares			Amount
Shares sold	577,837		$	7,793,300		300,157		$	3,960,519
Shares issued to shareholders in payment of distributions declared	29,439			393,602		6			79
Shares redeemed	(47,299	)		(639,343	)	(2,346	)		(30,402	)
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS	559,977		$	7,547,559		297,817		$	3,930,196
	Period Ended 1/31/2007 2					Year Ended 7/31/2006
Class K Shares:	Shares			Amount		Shares			Amount
Shares sold	7		$	100		- --			- --
NET CHANGE RESULTING FROM CLASS K SHARE TRANSACTIONS	7		$	100		- --		$	- --
NET CHANGE RESULTING FROM SHARE TRANSACTIONS	3,766,922		$	51,145,786		923,713		$	12,098,258

1 Reflects operations for the period from September 15, 2005 (date of initial public investment) to July 31, 2006.

2 Reflects operations for the period from December 12, 2006 (date of initial public investment) to January 31, 2007.

4. FEDERAL TAX INFORMATION

At January 31, 2007, the cost of investments for federal tax purposes was $122,283,614. The net unrealized appreciation of investments for federal tax purposes excluding any unrealized appreciation from futures contracts was $11,166,800. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $12,019,649 and net unrealized depreciation from investments for those securities having an excess of cost over value of $852,849.

5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated MDTA LLC, the Fund's investment adviser (the "Adviser"), receives for its services an annual investment adviser fee equal to 0.75% of the Fund's average daily net assets. Under the investment advisory contract, the Adviser is contractually obligated to waive, to the extent of its adviser fee, the amount, if any, by which the Fund's annual operating expenses exceed the following levels for each Class of the Fund:

Class	Percentage of Average Daily Net Assets of Class
Institutional Shares	1.25%
Class A Shares	1.50%
Class C Shares	2.25%

The Adviser has agreed to keep these contractual limitations in place through December 8, 2008.

In addition, after fulfilling its contractual commitment, the Adviser may voluntarily choose to waive and/or reimburse any additional portion of its fee. The Adviser can modify or terminate this voluntary waiver and/or reimbursement at any time at its sole discretion. For the six months ended January 31, 2007, the Adviser waived $76,553 of its fee.

For a period of three years after the fiscal year in which the Adviser waived or reimbursed Fund expenses, the Adviser may seek reimbursement from the Fund to the extent that the Fund's total annual operating expenses are less than the expense limitation. Due to the reorganization of the Fund, any expenses waived or reimbursed by the Adviser after December 8, 2006 may not be recovered by the Adviser.

Expenses waived/reimbursed by the Fund of $102,760 are subject to potential recovery by the expiration date of July 31, 2009.

Administrative Fee

Federated Administrative Services (FAS), under the Administrative Services Agreement (the "Agreement"), provides the Fund with administrative personnel and services. The fee paid to FAS is based on the average aggregate daily net assets of certain Federated funds as specified below:

Administrative Fee	Average Aggregate Daily Net Assets of the Federated Funds
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

The administrative fee received during any fiscal year shall be at least $150,000 per portfolio and $40,000 per each additional class of Shares. During the period from July 15, 2006 through December 8, 2006, the administrator contractually agreed to waive the portion of its fee which it would otherwise be entitled to receive from the Fund under the Agreement. The level of fees payable by the Fund to FAS for the period will not exceed the level of fees which the Fund would have paid during the period to its previous service provider under its previous administrative services contract. In addition, FAS may voluntarily choose to waive any portion of its fee. FAS can modify or terminate this voluntary waiver at any time at its sole discretion. For the six months ended January 31, 2007, the net fee paid to FAS was 0.105% of average aggregate daily net assets of the Fund.

Distribution Services Fee

The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will compensate Federated Securities Corp. (FSC), the principal distributor, from the daily net assets of the Fund's Class A Shares, Class C Shares and Class K Shares to finance activities intended to result in the sale of these shares. The Plan provides that the Fund may incur distribution expenses according to the following schedule annually, to compensate FSC:

Class	Percentage of Average Daily Net Assets of Class
Class A Shares	0.25%
Class C Shares	0.75%
Class K Shares	0.50%

Prior to December 11, 2006, the Fund incurred distribution expenses according to the following schedule annually, to compensate FSC:

Class	Percentage of Average Daily Net Assets of Class
Class A Shares	0.25%
Class C Shares	1.00%

FSC may voluntarily choose to waive any portion of its fee. FSC can modify or terminate this voluntary waiver at any time at its sole discretion. When FSC receives fees, it may pay some or all of them to financial intermediaries whose customers purchase shares. For the six months ended January 31, 2007, FSC retained $26,736 of fees paid by the Fund.

Sales Charges

For the six months ended January 31, 2007, FSC, the principal distributor, retained $8,675 in sales charges from the sale of Class A Shares. FSC also retained $44 of contingent deferred sales charges relating to redemptions of Class A Shares and $2,870 relating to redemptions of Class C Shares. See "What Do Shares Cost?" in the Prospectus.

Shareholder Services Fee

Effective December 11, 2006, the Fund may pay fees (Service Fees) up to 0.25% of the average daily net assets of the Fund's Class A Shares and Class C Shares to financial intermediaries or to Federated Shareholder Services Company (FSSC) for providing services to shareholders and maintaining shareholder accounts. FSSC or these financial intermediaries may voluntarily choose to waive a portion of their fee. In addition, FSSC may voluntarily reimburse the Fund for shareholder services fees. This voluntary waiver and/or reimbursement can be modified or terminated at any time. For the six months ended January 31, 2007, FSSC did not receive any fees paid by the Fund.

General

Certain of the Officers and Trustees of the Trust are Officers and Directors or Trustees of the above companies.

Transactions with Affiliated Companies

Affiliated holdings are mutual funds which are managed by the Adviser or an affiliate of the Adviser. The Adviser has agreed to reimburse the Fund for certain investment adviser fees as a result of transactions in other mutual funds. For the six months ended January 31, 2007, the Adviser was not required to reimburse any investment adviser fees. Transactions with affiliated companies during the period January 31, 2007 are as follows:

Affiliates	Balance of Shares Held 7/31/2006	Purchases/ Additions	Sales/ Reductions	Balance of Shares Held 1/31/2007	Value at 1/31/2007	Dividend Income/ Allocated Investment Income
Emerging Markets Fixed-Income Core Fund	- --	42,893	- --	42,893	$ 899,113	$ 7,971
Federated Mortgage Core Portfolio	- --	807,927	- --	807,927	$ 7,958,084	$52,752
High Yield Bond Portfolio	- --	270,466	- --	270,466	$ 1,866,216	$12,924
TOTAL OF AFFILIATED TRANSACTIONS	- --			1,121,286	$10,723,413	$73,647

6. INVESTMENT TRANSACTIONS

Purchases and sales of investments, excluding long-term U.S. government securities and short-term obligations, for the six months ended January 31, 2007, were as follows:

Purchases	$	117,419,874
Sales	$	76,601,596

7. LINE OF CREDIT

The Trust entered into a $150,000,000 unsecured, uncommitted revolving line of credit (LOC) agreement with PNC Bank. The LOC was made available for extraordinary or emergency purposes, primarily for financing redemption payments. Borrowings are charged interest at a rate of 0.65% over the federal funds rate. As of January 31, 2007, there were no outstanding loans. During the six months ended January 31, 2007, the Fund did not utilize the LOC.

8. LEGAL PROCEEDINGS

Beginning in October 2003, Federated Investors, Inc. and various subsidiaries thereof (including the advisers and distributor for various investment companies, collectively, "Federated"), along with various investment companies sponsored by Federated ("Funds") were named as defendants in several class action lawsuits now pending in the United States District Court for the District of Maryland. The lawsuits were purportedly filed on behalf of people who purchased, owned and/or redeemed shares of Federated-sponsored mutual funds during specified periods beginning November 1, 1998. The suits are generally similar in alleging that Federated engaged in illegal and improper trading practices including market timing and late trading in concert with certain institutional traders, which allegedly caused financial injury to the mutual fund shareholders. These lawsuits began to be filed shortly after Federated's first public announcement that it had received requests for information on shareholder trading activities in the Funds from the Securities and Exchange Commission ("SEC"), the Office of the New York State Attorney General ("NYAG"), and other authorities. In that regard, on November 28, 2005, Federated announced that it had reached final settlements with the SEC and the NYAG with respect to those matters. As Federated previously reported in 2004, it has already paid approximately $8.0 million to certain funds as determined by an independent consultant. As part of these settlements, Federated agreed to pay for the benefit of fund shareholders additional disgorgement and a civil money penalty in the aggregate amount of an additional $72 million. Federated and various Funds have also been named as defendants in several additional lawsuits, the majority of which are now pending in the United States District Court for the Western District of Pennsylvania, alleging, among other things, excessive advisory and Rule 12b-1 fees. The Board of the Funds has retained the law firm of Dickstein Shapiro LLP to represent the Funds in these lawsuits. Federated and the Funds, and their respective counsel, are reviewing the allegations and intend to defend this litigation. Additional lawsuits based upon similar allegations may be filed in the future. The potential impact of these lawsuits, all of which seek unquantified damages, attorneys' fees and expenses, and future potential similar suits is uncertain. Although we do not believe that these lawsuits will have a material adverse effect on the Funds, there can be no assurance that these suits, the ongoing adverse publicity and/or other developments resulting from the regulatory investigations will not result in increased Fund redemptions, reduced sales of Fund shares, or other adverse consequences for the Funds.

9. RECENT ACCOUNTING PRONOUNCEMENTS

In July 2006, the Financial Accounting Standards Board (FASB) released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" (FIN 48). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax benefits of positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax expense in the current year. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years of the Fund no later than January 30, 2008. At this time, management is evaluating the implications of FIN 48 and its impact in the financial statements has not yet been determined.

In addition, in September 2006, FASB released Statement on Financial Accounting Standards No. 157, "Fair Value Measurements" (FAS 157) which is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of FAS 157 will have on the Funds' financial statement disclosures.

Evaluation and Approval of Advisory Contract

FEDERATED MDT BALANCED FUND (THE "FUND")

The Fund's Board reviewed the Fund's investment advisory contract at meetings held in May and June 2006. The Board's decision to approve the contract reflects the exercise of its business judgment on whether to authorize the creation and offering of this new investment vehicle, as proposed by, and based on information provided by, the Federated organization, and based on Federated's recommendation to go forward with establishment of the Fund.

Federated proposed the creation of the Fund in connection with its acquisition of MDTA LLC (the "Acquisition"), the investment adviser to the MDT Balanced Fund (the "Predecessor Fund"). As part of that transaction, Federated proposed that the Predecessor Fund be reorganized with and into the Fund in a tax-free reorganization (the "Proposed Reorganization"), which would provide shareholders of the Predecessor Fund the opportunity to become shareholders of a fund with substantially similar investment objectives and policies and the same portfolio manager(s) as the Predecessor Fund, but with sales, distribution and other shareholder services offered by the funds managed and distributed by affiliates of Federated.

Prior to the meeting, the Adviser had recommended that the Federated Funds appoint a Senior Officer, whose duties include specified responsibilities relating to the process by which advisory fees are to be charged to a Federated Fund. The Senior Officer appointed by the Funds has the authority to retain consultants, experts, or staff as may be reasonably necessary to assist in the performance of his duties, reports directly to the Board, and may be terminated only with the approval of a majority of the independent members of the Board. The Senior Officer prepared and furnished to the Board an independent written evaluation that covered topics discussed below, which the Board considered, along with other information, in deciding to approve the advisory contract.

The Board also considered the anticipated compensation and benefits to be received by the Adviser. This includes fees to be received for services provided to the Fund by other entities in the Federated organization and research services that may be received by the Adviser from brokers that execute fund trades, as well as advisory fees. The Board is also familiar with judicial decisions concerning allegedly excessive investment advisory fees which have indicated that the following factors may be relevant to an Adviser's fiduciary duty with respect to its receipt of compensation from a fund: the nature and quality of the services provided by the Adviser, including the performance of the Fund; the Adviser's cost of providing the services; the extent to which the Adviser may realize "economies of scale" as the Fund grows larger; any indirect benefits that may accrue to the Adviser and its affiliates as a result of the Adviser's relationship with the Fund; performance and expenses of comparable funds; and the extent to which the independent Board members are fully informed about all facts the Board deems relevant bearing on the Adviser's services and fees. The Board further considered management fees (including any components thereof) charged to institutional and other clients of the Adviser for like services and costs to the Adviser and its affiliates of supplying services pursuant to the management fee agreements, excluding any intra-corporate profit and profit margins of the Adviser and its affiliates from supplying such services. The Board was aware of these considerations and was guided by them in its review of the Fund's advisory contract to the extent they are appropriate and relevant, as discussed further below.

The Board considered and weighed these circumstances in light of its substantial accumulated experience in working with Federated on matters relating to other Federated funds, and was assisted in its deliberations by the advice of independent legal counsel. The Board's consideration of the advisory contract included review of the Senior Officer's evaluation, accompanying data and additional reports covering such matters as: the Adviser's investment philosophy, revenue, profitability, personnel and processes; investment and operating strategies; the Fund's investment objectives; the Fund's expenses (including the advisory fee itself and the overall expense structure of the Fund, both in absolute terms and relative to similar and/or competing funds, with due regard for contractual or voluntary expense limitations); the nature, quality and extent of the advisory and other services to be provided to the Fund by the Adviser and its affiliates; the preferences and expectations of Fund shareholders and their relative sophistication; the continuing state of competition in the mutual fund industry and market practices; the range of comparable fees for similar funds in the mutual fund industry; the Fund's relationship to the Federated family of funds which include a comprehensive array of funds with different investment objectives, policies and strategies which are available for exchange without the incurrence of additional sales charges; compliance and audit reports concerning the Federated funds and the Federated companies that service them (including communications from regulatory agencies), as well as Federated's responses to any issues raised therein; and relevant developments in the mutual fund industry and how the Federated funds and/or Federated are responding to them. The Board's evaluation process is evolutionary. The criteria considered and the emphasis placed on relevant criteria change in recognition of changing circumstances in the mutual fund marketplace.

With respect to the Fund's expenses in particular, the Board has found the use of comparisons to other mutual funds with comparable investment programs to be particularly useful, given the high degree of competition in the mutual fund business. The Board focused on comparisons with other similar mutual funds more heavily than non-mutual fund products or services because, simply put, they are more relevant. For example, other mutual funds are the products most like the Fund, they are readily available to Fund shareholders as alternative investment vehicles, and they are the type of investment vehicle in fact chosen and maintained by the Fund's anticipated investors. The range of their fees and expenses therefore appears to be a generally reliable indication of what consumers have found to be reasonable in the precise marketplace in which the Fund will compete. In this regard, the Senior Officer also reviewed Federated's fees for providing advisory services to products outside the Federated family of funds (e.g., institutional and separate accounts). He concluded that mutual funds and institutional accounts are inherently different products. Those differences included, but are not limited to targeting different investors, being subject to different laws and regulations, different legal structure, distribution costs, average account size and portfolio management techniques made necessary by different cash flows. The Senior Officer did not consider these fee schedules to be significant in determining the appropriateness of mutual fund advisory contracts.

The Senior Officer reviewed reports compiled by Federated and directed the preparation of reports regarding the performance of, and fees charged by other mutual funds, noting his view that comparisons to fund peer groups is of significance in judging the reasonableness of proposed fees.

Because the Fund will employ the same portfolio managers and investment techniques, the Board reviewed the Predecessor Fund's performance compared to its peer group as an indicator of how the Adviser will execute the Fund's investment program, which in turn assisted the Board in reaching a conclusion that the nature, extent, and quality of the Adviser's investment management services were such as to warrant approval of the advisory contract. The Board noted that the performance of the Predecessor Fund and/or accounts managed by MDTA LLC with substantially similar investment objectives and policies was above the median of its relevant peer group for the one- and three-year periods reviewed.

The Senior Officer noted that the Fund's quantitative focus made it difficult to compare its fees and expenses to other peers, which varied widely in their complexity. He observed that the management of the Fund is among the more complex, relative to its peers and, consequently, that the advisory fee and projected net total expenses are at the high end compared to such peers. The Board reviewed the proposed fees and other expenses of the Fund with the Adviser and was satisfied that the proposed overall expense structure of the Fund appeared competitive. The Board will continue to monitor advisory fees and other expenses borne by the Fund. No changes were recommended to, and no objection was raised to the proposed advisory contract, and the Senior Officer noted that Federated proposed to provide appropriate administrative services to the Fund for the anticipated fees. The Board concluded that the nature, quality and scope of services to be provided to the Fund by the Adviser and its affiliates was satisfactory.

The Board also considered possible indirect benefits that may accrue to the Adviser and its affiliates as a result of the Acquisition. Other indirect benefits that may accrue to the Adviser and its affiliates as a result of the Adviser's relationship with the Fund are essentially impossible to apply before the Fund has experienced any meaningful operating history. Nevertheless, in connection with the Board's governance of other Federated funds, it should be noted that the Board regularly receives financial information about Federated, including reports on the compensation and benefits Federated derives from its relationships with the other Federated funds. These reports cover not only the fees under the advisory contracts, but also fees received by Federated's subsidiaries for providing other services to the Federated funds under separate contracts (e.g., for serving as the Federated funds' administrator). The reports also discuss any indirect benefit Federated may derive from its receipt of research services from brokers who execute Federated fund trades, as well as waivers of fees and/or reimbursements of expenses. In order for a fund to be competitive in the marketplace, Federated and its affiliates frequently waive fees and/or reimburse expenses and have indicated to the Board their intention to do so in the future, where appropriate. It was noted in this regard that the Adviser has agreed to limit the expenses of each class of the Fund at specified amounts for a two year period commencing on the date the Proposed Reorganization is consummated.

Federated furnished reports, requested by the Senior Officer, that made estimates of the allocation of expenses on a fund by fund basis, using allocation methodologies specified by the Senior Officer. The Senior Officer noted that, although they may apply consistent allocation processes, the inherent difficulties in allocating costs and the lack of consensus on how to allocate those costs causes such allocation reports to be of questionable value. The allocation reports were considered in the analysis by the Board but were determined to be of limited use.

The Board also reviewed profitability information for Federated and other publicly held fund management companies, provided by the Senior Officer, who noted the limited availability of such information, and concluded that Federated's profit margins did not appear to be excessive.

The Senior Officer's evaluation also discussed the notion of possible realization of "economies of scale" as a fund grows larger. The Board considered in this regard that the Adviser has made significant additional investments in the portfolio management and distribution efforts supporting all of the Federated funds and that the benefits of any economies, should they exist, were likely to be enjoyed by the fund complex as a whole. Finally, the Board also noted the absence of any applicable regulatory or industry guidelines on this subject, which is compounded by the lack of any common industry practice or general pattern with respect to structuring fund advisory fees with "breakpoints" that serve to reduce the fee as the fund attains a certain size. The Senior Officer did not recommend institution of breakpoints in pricing Federated's fund advisory services at this time.

The Board based its decision to approve the advisory contract on the totality of the circumstances and relevant factors, and with a view to past and future long-term considerations. As noted, not all of the factors and considerations identified above were relevant to the Fund, nor does the Board consider any one of them to be determinative. With respect to the factors that are relevant, the Board's decision to approve the contract reflects its determination that, based upon the information requested and supplied, Federated's proposal to establish and manage the Fund, and its past performance and actions in providing services to other mutual funds, provide a satisfactory basis to support the business decision to approve the proposed arrangements.

Voting Proxies on Fund Portfolio Securities

A description of the policies and procedures that the Fund uses to determine how to vote proxies, if any, relating to securities held in the Fund's portfolio is available, without charge and upon request, by calling 1-800-341-7400. A report on "Form N-PX" of how the Fund voted any such proxies during the most recent 12-month period ended June 30 is available through Federated's website. Go to FederatedInvestors.com, select "Products," select the "Prospectuses and Regulatory Reports" link, then select the Fund to access the link to Form N-PX. This information is also available from the EDGAR database on the SEC's website at www.sec.gov.

Quarterly Portfolio Schedule

The Fund files with the SEC a complete schedule of its portfolio holdings, as of the close of the first and third quarters of its fiscal year, on "Form N-Q." These filings are available on the SEC's website at www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. (Call 1-800-SEC-0330 for information on the operation of the Public Reference Room.) You may also access this information from the "Products" section of Federated's website at FederatedInvestors.com by clicking on "Portfolio Holdings" and selecting the name of the Fund, or by selecting the name of the Fund and clicking on "Portfolio Holdings." You must register on the website the first time you wish to access this information.

Mutual funds are not bank deposits or obligations, are not guaranteed by any bank, and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other government agency. Investment in mutual funds involves investment risk, including the possible loss of principal.

This report is authorized for distribution to prospective investors only when preceded or accompanied by the Fund's prospectus, which contains facts concerning its objective and policies, management fees, expenses, and other information.

IMPORTANT NOTICE ABOUT FUND DOCUMENT DELIVERY

In an effort to reduce costs and avoid duplicate mailings, the Fund(s) intend to deliver a single copy of certain documents to each household in which more than one shareholder of the Fund(s) resides (so-called "householding"), as permitted by applicable rules. The Fund's "householding" program covers its/their Prospectus and Statement of Additional Information, and supplements to each, as well as Semi-Annual and Annual Shareholder Reports and any Proxies or information statements. Shareholders must give their written consent to participate in the "householding" program. The Fund is also permitted to treat a shareholder as having given consent ("implied consent") if (i) shareholders with the same last name, or believed to be members of the same family, reside at the same street address or receive mail at the same post office box, (ii) the Fund gives notice of its intent to "household" at least sixty (60) days before it begins "householding" and (iii) none of the shareholders in the household have notified the Fund(s) or their agent of the desire to "opt out" of "householding." Shareholders who have granted written consent, or have been deemed to have granted implied consent, can revoke that consent and opt out of "householding" at any time: shareholders who purchased shares through an intermediary should contact their representative; other shareholders may call the Fund at 1-800-341-7400.

Federated Securities Corp., Distributor

Cusip 31421R841
Cusip 31421R833
Cusip 31421R692

36354 (3/07)

Federated is a registered mark of Federated Investors, Inc. 2007 (c)Federated Investors, Inc.

Federated
World-Class Investment Manager

Federated MDT Balanced Fund

A Portfolio of Federated MDT Series

SEMI-ANNUAL SHAREHOLDER REPORT

January 31, 2007

Institutional Shares

FINANCIAL HIGHLIGHTS
SHAREHOLDER EXPENSE EXAMPLE
PORTFOLIO OF INVESTMENTS SUMMARY TABLES
PORTFOLIO OF INVESTMENTS
STATEMENT OF ASSETS AND LIABILITIES
STATEMENT OF OPERATIONS
STATEMENT OF CHANGES IN NET ASSETS
NOTES TO FINANCIAL STATEMENTS
EVALUATION AND APPROVAL OF ADVISORY CONTRACT
VOTING PROXIES ON FUND PORTFOLIO SECURITIES
QUARTERLY PORTFOLIO SCHEDULE

Not FDIC Insured * May Lose Value * No Bank Guarantee

Financial Highlights

(For a Share Outstanding Throughout Each Period)

	Six Months Ended (unaudited)
	1/31/2007	1
Net Asset Value, Beginning of Period	$13.23
Income From Investment Operations:
Net investment income	0.15	4
Net realized and unrealized gain on investments	1.04
TOTAL FROM INVESTMENT OPERATIONS	1.19
Less Distributions:
Distributions from net investment income	(0.17	)
Distributions from net realized gain on investments	(0.65	)
TOTAL DISTRIBUTIONS	(0.82	)
Net Asset Value, End of Period	$13.60
Total Return 6	9.09	%
Ratios to Average Net Assets:
Net expenses	1.15	% 7
Net investment income	2.12	% 7
Expense waiver/reimbursement 8	0.27	% 7
Supplemental Data:
Net assets, end of period (000 omitted)	$81,799
Portfolio turnover	89	%

1 MDT Balanced Fund (the "Predecessor Fund") was reorganized into Federated MDT Balanced Fund (the "Fund") as of the close of business on December 8, 2006. Prior to the reorganization, the Fund had no investment operations. The Fund is the successor to the Predecessor Fund. The performance information and financial information presented incorporates the operations of the Predecessor Fund, which, as a result of the reorganization, are the Fund's operations.

2 The year ended July 31, 2006 and the period ended July 31, 2003 were audited by Ernst & Young LLP. The years ended July 31, 2004 and 2005 were audited by another independent registered public accounting firm.

3 Reflects operations for the period from October 1, 2002 (date of initial public investment) to July 31, 2003.

4 Per share numbers have been calculated using the average shares method.

5 Represents less than $0.01.

6 Based on net asset value, which does not reflect sales charge, redemption fee, or contingent deferred sales charge, if applicable. Total returns for periods of less than one year are not annualized.

7 Computed on an annualized basis.

8 This expense decrease is reflected in both the net expense and the net investment income ratios shown above.

See Notes which are an integral part of the Financial Statements

Year Ended July 31,						Period Ended
2006	2	2005		2004		7/31/2003	2,3
$13.60		$12.82		$11.36		$10.00
0.24	4	0.20		0.13		0.13
0.50		1.87		1.61		1.28
0.74		2.07		1.74		1.41
(0.18	)	(0.15	)	(0.15	)	(0.05	)
(0.93	)	(1.14	)	(0.13	)	(0.00	) 5
(1.11	)	(1.29	)	(0.28	)	(0.05	)
$13.23		$13.60		$12.82		$11.36
5.62	%	16.81	%	15.37	%	14.18	%
1.25	%	1.19	%	1.17	%	1.47	% 7
1.82	%	1.54	%	1.03	%	1.50	% 7
0.14	%	- --		- --		- --
$73,747		$69,320		$53,815		$41,474
139	%	127	%	78	%	124	%

Shareholder Expense Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; to the extent applicable, distribution (12b-1) fees and/or shareholder services fees and other Fund expenses. This Example is intended to help you to understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. It is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from August 1, 2006 to January 31, 2007.

ACTUAL EXPENSES

The first section of the table below provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you incurred over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled "Expenses Paid During Period" to estimate the expenses attributable to your investment during this period.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

The second section of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. Thus, you should not use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are required to be provided to enable you to compare the ongoing costs of investing in the Fund with other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.

	Beginning Account Value 8/1/2006	Ending Account Value 1/31/2007	Expenses Paid During Period 1
Actual	$1,000	$1,090.90	$6.06
Hypothetical (assuming a 5% return before expenses)	$1,000	$1,019.41	$5.85

1 Expenses are equal to the Fund's annualized net expense ratio of 1.15%, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

Portfolio of Investments Summary Tables

At January 31, 2007, the Fund's portfolio composition ¹ was as follows:

Security Type	Percentage of Total Net Assets
Domestic Equity	56.6	%
U.S. Treasury and Agency Securities 2	11.4	%
Corporate Debt Securities	10.1	%
Foreign Stock ETF	8.0	%
Mortgage-Backed Securities	5.9	%
International Equity	1.9	%
Foreign Debt Securities	1.6	%
Collateralized Mortgage Obligations	1.5	%
Asset-Backed Securities	1.0	%
Cash Equivalents 3	3.5	%
Other Assets and Liabilities--Net 4	(1.5	)%
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 these tables, 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.

2 Also includes $3,809,615 million held in U.S. Treasuries pledged as collateral to ensure the Fund is able to satisfy the obligations of its outstanding long futures contracts.

3 Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements.

4 Assets, other than investments in securities, less liabilities.

At January 31, 2007, the Fund's industry composition ⁵ for its equity securities was as follows:

Industry	Percentage of Equity Securities
Insurance	16.3%
Real Estate Investment Trusts	11.4%
Oil, Gas & Consumable Fuels	10.9%
Capital Markets	7.4%
Commercial Banks	6.6%
Household Products	5.0%
Media	4.8%
Energy Equipment & Services	4.5%
Health Care Equipment & Supplies	2.2%
Computers & Peripherals	2.1%
Biotechnology	2.0%
Health Care Providers & Services	2.0%
Diversified Financial Services	1.6%
Industrial Conglomerates	1.6%
Specialty Retail	1.6%
Chemicals	1.5%
Pharmaceuticals	1.5%
Road & Rail	1.5%
Household Durables	1.2%
Thrifts & Mortgage Finance	1.2%
IT Services	1.1%
Other 6	12.0%
TOTAL	100.0%

5 Industry classifications are based upon, and individual securities are assigned to, the classifications of the Global Industry Classification Standard (GICS) except that the adviser assigns a classification to securities not classified by the GICS and to securities for which the adviser does not have access to the classification made by the GICS.

6 For purposes of this table, industry classifications which constitute less than 1.0% of the Fund's total net assets have been aggregated under the designation "Other."

Portfolio of Investments

January 31, 2007 (unaudited)

Shares					Value
			COMMON STOCKS--58.5%
			Aerospace & Defense--0.3%
	800		Lockheed Martin Corp.	$	77,752
	6,400		Raytheon Co.		332,160
	800		United Technologies Corp.		54,416
			TOTAL		464,328
			Biotechnology--1.2%
	1,500	1	Cephalon, Inc.		108,615
	14,700	1	Genentech, Inc.		1,284,339
	4,300	1	Medimmune, Inc.		149,038
			TOTAL		1,541,992
			Building Products--0.1%
	3,200		American Standard Cos.		158,048
			Capital Markets--4.4%
	600	1	Affiliated Managers Group		66,840
	4,700		Bear Stearns Cos., Inc.		774,795
	900		Lehman Brothers Holdings, Inc.		74,016
	17,900		Merrill Lynch & Co., Inc.		1,674,724
	38,500		Morgan Stanley		3,187,415
			TOTAL		5,777,790
			Chemicals--0.9%
	500		Ashland, Inc.		34,775
	26,300		Dow Chemical Co.		1,092,502
	2,100	1	Nalco Holding Co.		48,279
			TOTAL		1,175,556
			Commercial Banks--3.8%
	300		City National Corp.		21,579
	7,400		Comerica, Inc.		438,820
	3,100		Fifth Third Bancorp		123,690
	700		Huntington Bancshares, Inc.		16,296
	62,500		J.P. Morgan Chase & Co.		3,183,125
	11,157		KeyCorp		425,863
	12,000		National City Corp.		454,200
Shares					Value
			COMMON STOCKS--continued
			Commercial Banks--continued
	3,600		SunTrust Banks, Inc.	$	299,160
	2,300		UnionBanCal Corp.		148,626
			TOTAL		5,111,359
			Commercial Services & Supplies--0.5%
	500		Brinks Co. (The)		31,075
	900		Dun & Bradstreet Corp.		76,500
	1,000		Equifax, Inc.		41,530
	1,700		Miller Herman, Inc.		63,920
	2,900		Pitney Bowes, Inc.		138,823
	5,100		Robert Half International, Inc.		207,570
	1,400	1	TeleTech Holdings, Inc.		37,730
	500	1	United Stationers, Inc.		25,480
			TOTAL		622,628
			Communications Equipment--0.1%
	1,700	1	Comverse Technology, Inc.		32,895
	800	1	F5 Networks, Inc.		57,152
			TOTAL		90,047
			Computers & Peripherals--1.2%
	15,200	1	Apple, Inc.		1,303,096
	9,400	1	Network Appliance, Inc.		353,440
			TOTAL		1,656,536
			Construction Materials--0.2%
	600		Texas Industries, Inc.		44,052
	1,800		Vulcan Materials Co.		183,312
			TOTAL		227,364
			Consumer Finance--0.2%
	5,000	1	Americredit Corp.		135,700
	2,200	1	First Marblehead Corp.		119,680
			TOTAL		255,380
			Containers & Packaging--0.1%
	1,300	1	Crown Holdings, Inc.		28,691
	800		Sealed Air Corp.		52,720
	1,600		Temple-Inland, Inc.		79,904
			TOTAL		161,315
Shares					Value
			COMMON STOCKS--continued
			Diversified Consumer Services--0.1%
	800	1	ITT Educational Services, Inc.	$	62,080
	1,600	1	Weight Watchers International, Inc.		86,448
			TOTAL		148,528
			Diversified Financial Services--0.9%
	13,300		CIT Group, Inc.		784,168
	300		Chicago Mercantile Exchange Holdings, Inc.		168,990
	4,200		Moody's Corp.		300,552
			TOTAL		1,253,710
			Diversified Telecommunication Services--0.3%
	7,000		Embarq Corp.		388,570
			Electric Utilities--0.4%
	4,400	1	Allegheny Energy, Inc.		204,688
	2,900		Edison International		130,442
	1,300		FirstEnergy Corp.		77,129
	1,300		Portland General Electric Co		33,982
	4,700	1	Reliant Resources, Inc.		69,936
			TOTAL		516,177
			Electrical Equipment--0.5%
	13,800		Honeywell International, Inc.		630,522
	500		Roper Industries, Inc.		25,960
			TOTAL		656,482
			Electronic Equipment & Instruments--0.4%
	2,900		Amphenol Corp., Class A		196,388
	5,400	1	Avnet, Inc.		167,670
	1,200		Daktronics, Inc.		41,484
	4,500	1	Ingram Micro, Inc., Class A		87,795
	2,000		National Instruments Corp.		57,620
	100	1	Tech Data Corp.		3,714
			TOTAL		554,671
			Energy Equipment & Services--2.6%
	3,300	1	Cameron International Corp.		173,250
	300	1	FMC Technologies, Inc.		18,579
	1,500		GlobalSantaFe Corp.		87,015
	1,900	1	Oceaneering International, Inc.		74,993
	4,200		Patterson-UTI Energy, Inc.		101,430
	500	1	SEACOR Holdings, Inc.		50,615
Shares					Value
			COMMON STOCKS--continued
			Energy Equipment & Services--continued
	39,900		Schlumberger Ltd.	$	2,533,251
	6,000	1	Transocean Sedco Forex, Inc.		464,220
			TOTAL		3,503,353
			Food & Staples Retailing--0.2%
	4,100		Costco Wholesale Corp.		230,338
	1,800		Kroger Co.		46,080
	1,100		Longs Drug Stores Corp.		47,300
			TOTAL		323,718
			Food Products--0.3%
	5,700		Kellogg Co.		280,839
	3,500		Kraft Foods, Inc., Class A		122,220
			TOTAL		403,059
			Gas Utilities--0.1%
	1,700		Energen Corp.		78,676
			Health Care Equipment & Supplies--1.3%
	1,600		Dentsply International, Inc.		49,344
	1,700	1	Immucor, Inc.		53,618
	25,500		Medtronic, Inc.		1,362,975
	600		Mentor Corp.		30,594
	5,300	1	St. Jude Medical, Inc.		226,628
			TOTAL		1,723,159
			Health Care Providers & Services--1.2%
	8,800		Cardinal Health, Inc.		628,496
	1,300	1	DaVita, Inc.		70,980
	900	1	Lincare Holdings, Inc.		35,415
	3,500	1	Medco Health Solutions, Inc.		207,235
	1,600	1	Psychiatric Solutions, Inc.		62,304
	6,800	1	Wellpoint, Inc.		532,984
			TOTAL		1,537,414
			Health Care Technology--0.1%
	2,900		IMS Health, Inc.		83,694
			Hotels, Restaurants & Leisure--0.3%
	700	1	LifeTime Fitness, Inc.		37,940
	400	1	Wynn Resorts Ltd.		44,696
	5,200		Yum! Brands, Inc.		312,052
			TOTAL		394,688
Shares					Value
			COMMON STOCKS--continued
			Household Durables--0.7%
	2,500		Beazer Homes USA, Inc.	$	108,775
	2,400		Centex Corp.		128,856
	3,100		KB Home		168,082
	800		M.D.C. Holdings, Inc.		46,616
	400	1	Meritage Corp.		17,780
	8,800		Pulte Homes, Inc.		302,192
	1,500		Ryland Group, Inc.		84,270
	1,800		Standard Pacific Corp.		49,392
			TOTAL		905,963
			Household Products--2.9%
	8,500		Kimberly-Clark Corp.		589,900
	50,400		Procter & Gamble Co.		3,269,448
			TOTAL		3,859,348
			IT Services--0.6%
	800	1	Alliance Data Systems Corp.		54,344
	3,700		Automatic Data Processing, Inc.		176,564
	1,300	1	Ceridian Corp. - New		38,961
	1,000	1	Checkfree Corp.		41,430
	3,500	1	Cognizant Technology Solutions Corp.		298,515
	2,300	1	Computer Sciences Corp.		120,658
	2,300	1	Fiserv, Inc.		120,911
			TOTAL		851,383
			Independent Power Producers & Energy Traders--0.0%
	1,100	1	AES Corp.		22,869
			Industrial Conglomerates--0.9%
	14,000		3M Co.		1,040,200
	3,600	1	McDermott International, Inc.		185,904
	500		Teleflex, Inc.		33,390
			TOTAL		1,259,494
			Insurance--9.5%
	25,950		Allstate Corp.		1,561,152
	5,000		Ambac Financial Group, Inc.		440,500
	4,050		American Financial Group Inc., Ohio		143,046
	47,800		American International Group, Inc.		3,271,910
	4,700		Assurant, Inc.		261,226
Shares					Value
			COMMON STOCKS--continued
			Insurance--continued
	6,600		Berkley, W. R. Corp.	$	218,394
	2,700	1	CNA Financial Corp.		109,755
	14,600		Chubb Corp.		759,784
	2,300		Commerce Group, Inc.		69,414
	2,100		HCC Insurance Holdings, Inc.		65,583
	1,600		Hanover Insurance Group, Inc.		76,880
	3,800		Hartford Financial Services Group, Inc.		360,658
	11,300		Loews Corp.		491,098
	5,200		MBIA, Inc.		373,516
	30,600		MetLife, Inc.		1,900,872
	1,900		Nationwide Financial Services, Inc., Class A		103,835
	1,400		Odyssey Re Holdings Corp.		55,230
	1,600		Ohio Casualty Corp.		47,264
	22,900		Progressive Corp. Ohio		531,051
	2,000		Reinsurance Group of America		116,300
	4,200		Safeco Corp.		268,842
	400		Safety Insurance Group, Inc.		19,536
	1,000		StanCorp Financial Group, Inc.		47,850
	26,200		The St. Paul Travelers Cos., Inc.		1,332,270
			TOTAL		12,625,966
			Internet & Catalog Retail--0.2%
	2,500	1	Expedia, Inc.		53,625
	3,500	1	IAC Interactive Corp.		134,400
	1,100	1	Nutri/System, Inc.		48,455
			TOTAL		236,480
			Internet Software & Services--0.2%
	3,000	1	ValueClick, Inc.		76,560
	5,400	1	eBay, Inc.		174,906
			TOTAL		251,466
			Leisure Equipment & Products--0.0%
	1,200		Brunswick Corp.		40,932
			Life Sciences Tools & Services--0.1%
	1,700	1	Waters Corp.		96,373
Shares					Value
			COMMON STOCKS--continued
			Machinery--0.4%
	1,200		Briggs & Stratton Corp.	$	35,568
	3,100		Danaher Corp.		229,586
	2,900		Deere & Co.		290,812
			TOTAL		555,966
			Media--2.8%
	40,900	1	Comcast Corp., Class A		1,812,688
	5,400	1	Discovery Holding Co. Series A		89,478
	1,300	1	Lamar Advertising Co.		86,164
	5,900		McGraw-Hill Cos., Inc.		395,772
	2,900		Omnicom Group, Inc.		305,080
	39,900		Time Warner, Inc.		872,613
	4,800	1	Viacom, Inc., Class B - New		195,216
			TOTAL		3,757,011
			Metals & Mining--0.2%
	4,500		Commercial Metals Corp.		121,995
	900		Metal Management, Inc.		36,936
	900		Quanex Corp.		35,271
	2,100		Worthington Industries, Inc.		40,278
			TOTAL		234,480
			Multi-Utilities--0.2%
	5,200		P G & E Corp.		242,736
	700		SCANA Corp.		28,504
			TOTAL		271,240
			Multiline Retail--0.5%
	3,900	1	Sears Holdings Corp.		688,935
			Oil, Gas & Consumable Fuels--6.4%
	27,700		Anadarko Petroleum Corp.		1,211,875
	43,100		Chevron Corp.		3,141,128
	15,200		Devon Energy Corp.		1,065,368
	1,300	1	General Maritime Corp.		47,437
	15,500		Marathon Oil Corp.		1,400,270
	2,100		OMI Corp.		46,326
	3,900		Pioneer Natural Resources, Inc.		159,900
	2,200		Pogo Producing Co.		109,010
	3,200		Tesoro Petroleum Corp.		263,648
	18,900		Valero Energy Corp.		1,025,892
			TOTAL		8,470,854
Shares					Value
			COMMON STOCKS--continued
			Paper & Forest Products--0.1%
	3,400		MeadWestvaco Corp.	$	102,476
			Personal Products--0.1%
	2,200		Avon Products, Inc.		75,658
			Pharmaceuticals--0.8%
	10,600		Johnson & Johnson		708,080
	16,400		Schering Plough Corp.		410,000
			TOTAL		1,118,080
			Real Estate Investment Trusts--6.7%
	6,000		AMB Property Corp.		365,100
	4,200		Alexandria Real Estate Equities, Inc.		455,112
	9,650		Archstone-Smith Trust		609,977
	4,100		Avalonbay Communities, Inc.		608,276
	6,350		Boston Properties, Inc.		800,671
	4,450		Developers Diversified Realty		298,684
	9,900		Equity Residential Properties Trust		557,172
	2,800		Federal Realty Investment Trust		261,576
	5,000		General Growth Properties, Inc.		307,600
	9,900		Health Care Property Investors, Inc.		408,375
	15,000		Host Hotels & Resorts, Inc.		397,050
	6,100		Kimco Realty Corp.		302,560
	7,700		Prologis Trust		500,500
	4,500		Public Storage, Inc.		489,420
	5,300		SL Green Realty Corp.		776,874
	7,000		Simon Property Group, Inc.		800,730
	6,200		Taubman Centers, Inc.		361,274
	4,850		Vornado Realty Trust		593,398
			TOTAL		8,894,349
			Road & Rail--0.9%
	2,000		Burlington Northern Santa Fe		160,720
	1,800		Con-way, Inc.		89,532
	15,700		Norfolk Southern Corp.		779,505
	2,200		Ryder Systems, Inc.		119,988
	1,800		Werner Enterprises, Inc.		34,218
			TOTAL		1,183,963
Shares					Value
			COMMON STOCKS--continued
			Semiconductors & Semiconductor Equipment--0.1%
	2,300	1	MEMC Electronic Materials	$	120,520
			Software--0.4%
	22,400	1	Oracle Corp.		384,384
	700		Quality Systems, Inc.		29,701
	1,800	1	THQ, Inc.		54,540
			TOTAL		468,625
			Specialty Retail--0.9%
	700	1	AutoZone, Inc.		87,941
	3,100	1	CarMax, Inc.		178,033
	600	1	Children's Place Retail Stores, Inc.		32,526
	1,100	1	Dick's Sporting Goods, Inc.		56,639
	1,400	1	Guess ?, Inc.		100,954
	800	1	Gymboree Corp.		34,632
	17,600		Home Depot, Inc.		717,024
	800	1	J Crew Group Inc.		29,064
	100	1	Zale Corp.		2,752
			TOTAL		1,239,565
			Textiles, Apparel & Luxury Goods--0.5%
	13,800	1	Coach, Inc.		632,868
	1,200	1	Crocs, Inc.		60,408
			TOTAL		693,276
			Thrifts & Mortgage Finance--0.7%
	1,200		Downey Financial Corp.		85,848
	2,000		Federal Home Loan Mortgage Corp.		129,860
	1,000	1	FirstFed Financial Corp.		68,950
	3,800		MGIC Investment Corp.		234,536
	3,600		PMI Group, Inc.		172,152
	3,700		Radian Group, Inc.		222,814
			TOTAL		914,160
			Wireless Telecommunication Services--0.0%
	400	1	U.S. Cellular Corp.		28,840
			TOTAL COMMON STOCKS (IDENTIFIED COST $68,470,848)		77,776,514
Principal Amount					Value
			ASSET-BACKED SECURITIES--1.0%
$	58,994		CS First Boston Mortgage Securities Corp. 2002-HE4 AF, 5.51%, 8/25/2032	$	58,460
	648,723		Community Program Loan Trust 1987-A A4, 4.5%, 10/01/2018		638,909
	452,714		MMCA Automobile Trust 2002-2 C, 5.55%, 3/15/2010		451,692
	140,000		Morgan Stanley Capital I 2006-IQ12 A4, 5.319%, 12/15/2043		137,539
			TOTAL ASSET-BACKED SECURITIES (IDENTIFIED COST $1,297,142)		1,286,600
			COLLATERALIZED MORTGAGE OBLIGATIONS--0.5%
	469,749		Bear Stearns Asset Backed Securities, Inc. 2005-AC6, Class 21PO, 0.00%, 9/25/2020		314,914
	5,692		Bear Stearns Mortgage Securities, Inc. 1997-6, Class 1A, 6.65%, 3/25/2031		5,592
	16,838		Federal Home Loan Mortgage Corp. REMIC 1311 K, 7.00%, 7/15/2022		16,784
	33,518		Federal Home Loan Mortgage Corp. REMIC 1384 D, 7.00%, 9/15/2022		33,419
	39,298		Federal Home Loan Mortgage Corp. REMIC 1595 D, 7.00%, 10/15/2013		40,806
	75,000		Federal Home Loan Mortgage Corp. REMIC 2497 JH, 6.00%, 9/15/2032		75,595
	67,057		Federal Home Loan Mortgage Corp. REMIC 2676 JA, 4.00%, 8/15/2013		66,830
	82,752		Federal National Mortgage Association REMIC 1993-113 SB, 9.75%, 7/25/2023		91,131
	16,017		Federal National Mortgage Association REMIC 2001-37 GA, 8.00%, 7/25/2016		16,653
	20,980		Federal National Mortgage Association REMIC 2003-35 UC, 3.75%, 5/25/2033		19,423
	20,173		Government National Mortgage Association REMIC 1999-29 PB, 7.25%, 7/16/2028		20,434
	61,195		Government National Mortgage Association REMIC 2002-17 B, 6.00%, 3/20/2032		61,806
			TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (IDENTIFIED COST $810,587)		763,387
			CORPORATE BONDS--9.8%
			Basic Industry - Chemicals--0.0%
	75,000		Albemarle Corp., Sr. Note, 5.10%, 2/01/2015		70,787
			Basic Industry - Metals & Mining--0.3%
	35,000		Alcoa, Inc., Note, 5.55%, 2/01/2017		34,865
	100,000		BHP Finance (USA), Inc., Company Guarantee, 5.25%, 12/15/2015		98,176
	150,000		Vale Overseas Limited, 6.875%, 11/21/2036		152,438
	150,000	2,3	Xstrata Finance Canada L, Unsecd. Note, 5.50%, 11/16/2011		148,831
			TOTAL		434,310
Principal Amount					Value
			CORPORATE BONDS--continued
			Capital Goods - Aerospace & Defense--0.2%
$	125,000		Boeing Co., Note, 5.125%, 2/15/2013	$	123,821
	200,000		Raytheon Co., Unsecd. Note, 5.375%, 4/01/2013		199,311
			TOTAL		323,132
			Capital Goods - Diversified Manufacturing--0.1%
	100,000		Emerson Electric Co., Unsecd. Note, 5.75%, 11/01/2011		101,619
			Capital Goods - Environmental--0.1%
	100,000		Waste Management, Inc., 7.375%, 8/01/2010		105,994
			Communications - Media & Cable--0.1%
	100,000		Comcast Corp., Sr. Note, 7.125%, 6/15/2013		108,102
	75,000		Cox Communications, Inc., Unsecd. Note, 5.45%, 12/15/2014		73,425
			TOTAL		181,527
			Communications - Media Noncable--0.2%
	100,000		British Sky Broadcasting Group PLC, 8.20%, 7/15/2009		106,113
	75,000		News America Holdings, Company Guarantee, 8.00%, 10/17/2016		86,120
	75,000		News America Holdings, Sr. Deb., 9.25%, 2/1/2013		87,556
			TOTAL		279,789
			Communications - Telecom Wireless--0.3%
	150,000		AT&T Wireless Services, Sr. Note, 8.75%, 3/01/2031		195,113
	100,000		Cingular Wireless LLC, Sr. Note, 6.50%, 12/15/2011		104,657
	100,000		Sprint Capital Corp., Note, 8.375%, 3/15/2012		110,853
			TOTAL		410,623
			Communications - Telecom Wirelines--0.4%
	400,000		GTE North, Inc., Deb., Series D, 6.90%, 11/01/2008		409,847
	75,000		Telefonica SA, Company Guarantee, 7.045%, 6/20/2036		81,052
	100,000		Telefonos de Mexico, Note, 4.50%, 11/19/2008		98,050
			TOTAL		588,949
			Consumer Cyclical - Automotive--0.3%
	75,000		DaimlerChrysler North America, Sr. Note, 4.875%, 6/15/2010		73,208
	50,000		DaimlerChrysler North America Holding Corp., Sr. Note, 6.50%, 11/15/2013		51,329
	300,000		General Motors Acceptance, Note, 6.125%, 2/01/2007		300,000
			TOTAL		424,537
			Consumer Cyclical - Entertainment--0.1%
	75,000		Disney Co., Note, 5.70%, 7/15/2011		76,131
	100,000		Time Warner, Inc., 5.50%, 11/15/2011		99,804
			TOTAL		175,935
Principal Amount					Value
			CORPORATE BONDS--continued
			Consumer Cyclical - Lodging--0.1%
$	100,000	2,3	Wyndham Worldwide Corp., Sr. Unsecd. Note, 6.00%, 12/01/2016	$	98,533
			Consumer Cyclical - Retailers--0.2%
	125,000		Home Depot, Inc., 5.40%, 3/01/2016		120,917
	100,000		Target Corp., 5.875%, 3/01/2012		102,518
			TOTAL		223,435
			Consumer Non-Cyclical Food/Beverage--0.2%
	100,000		Bottling Group, LLC, Note, 5.50%, 4/01/2016		99,850
	40,000		General Mills, Inc., Note, 5.70%, 2/15/2017		39,966
	75,000		Kraft Foods, Inc., Note, 5.25%, 10/01/2013		73,913
	50,000		Kraft Foods, Inc., Note, 6.25%, 6/01/2012		51,746
			TOTAL		265,475
			Consumer Non-Cyclical Health Care--0.1%
	100,000		Medtronic, Inc., Note, Series B, 4.375%, 9/15/2010		97,138
			Consumer Non-Cyclical Pharmaceuticals--0.4%
	75,000		Abbott Laboratories, Note, 5.375%, 5/15/2009		75,300
	100,000		Genentech, Inc., Sr. Note, 4.75%, 7/15/2015		95,371
	125,000		Lilly (Eli) & Co., Unsecd. Note, 6.57%, 1/1/2016		134,551
	100,000		Pharmacia Corp., Sr. Deb., 6.50%, 12/01/2018		108,202
	100,000		Wyeth, Unsecd. Note, 5.50%, 2/01/2014		100,060
			TOTAL		513,484
			Consumer Non-Cyclical Supermarkets--0.2%
	250,000		Safeway Inc., Sr. Unsecd. Note, 4.80%, 7/16/2007		249,120
			Consumer Non-Cyclical Tobacco--0.0%
	75,000		Altria Group, Inc., Note, 7.00%, 11/04/2013		81,642
			Energy - Independent--0.2%
	55,000		Anadarko Petroleum Corp., Sr. Note, 5.95%, 9/15/2016		54,619
	50,000		Canadian Natural Resources, 4.90%, 12/01/2014		47,106
	150,000		Pemex Project Funding Master, Company Guarantee, 9.125%, 10/13/2010		166,995
			TOTAL		268,720
			Energy - Integrated--0.2%
	75,000		Conoco Funding Co., 7.25%, 10/15/2031		87,594
	75,000		ConocoPhillips Australia, 5.50%, 4/15/2013		75,374
	100,000		Husky Oil Ltd., Sr. Deb., 7.55%, 11/15/2016		111,698
			TOTAL		274,666
Principal Amount					Value
			CORPORATE BONDS--continued
			Energy - Refining--0.2%
$	100,000		Valero Energy Corp., 6.875%, 4/15/2012	$	105,703
	50,000		Valero Energy Corp., 7.50%, 4/15/2032		56,955
	75,000		Valero Energy Corp., Note, 4.75%, 4/01/2014		70,358
			TOTAL		233,016
			Financial Institution - Banking--1.8%
	200,000		Bank of America Corp., Sr. Note, 5.375%, 6/15/2014		199,437
	120,000		Capital One Capital IV, 6.745%, 2/17/2037		121,157
	200,000		Citigroup, Inc., Note, 5.125%, 2/14/2011		199,021
	100,000		Credit Suisse First Boston, Sr. Note, 5.50%, 8/16/2011		100,898
	100,000		HSBC Finance Capital Trust, Note, 5.911%, 11/30/2035		100,851
	200,000		HSBC Finance Corp., 4.75%, 4/15/2010		197,015
	100,000		Household Finance Corp., Note, 7.00%, 5/15/2012		107,417
	150,000		J.P. Morgan Chase & Co., 5.75%, 1/02/2013		152,735
	100,000		Marshall & Ilsley Bank, Sr. Note, 4.40%, 3/15/2010		97,444
	200,000		Northern Trust Corp., Sr. Note, 5.30%, 8/29/2011		200,039
	100,000		PNC Funding Corp., Sub. Note, 7.50%, 11/01/2009		105,310
	100,000		Popular North America, 5.65%, 4/15/2009		100,078
	250,000		US BANK NA, Sub. Note, 4.95%, 10/30/2014		242,308
	250,000		Wachovia Bank N.A., 4.80%, 11/01/2014		238,601
	100,000		Wells Fargo Bank, N.A., Sub. Note, 6.45%, 2/01/2011		104,116
	75,000		Zions Bancorp, Sub. Note, 5.50%, 11/16/2015		73,204
			TOTAL		2,339,631
			Financial Institution - Brokerage--0.7%
	100,000		Amvescap PLC, Sr. Note, 4.50%, 12/15/2009		97,471
	100,000		Bear Stearns & Cos., Inc., Unsecd. Note, 3.25%, 3/25/2009		96,046
	150,000		Goldman Sachs Group, Inc., Note, 5.25%, 10/15/2013		148,556
	400,000		Merrill Lynch & Co., Inc., Sr. Unsub., Series CORE, 5.908%, 1/31/2008		400,160
	150,000		Merrill Lynch & Co., Inc., Unsecd. Note, 5.45%, 7/15/2014		149,715
	100,000		Morgan Stanley, Note, 4.00%, 1/15/2010		96,616
			TOTAL		988,564
			Financial Institution - Finance Noncaptive--1.1%
	100,000		American Express Co., Global Sr. Note, 4.75%, 6/17/2009		99,049
	100,000		American General Finance Corp., 4.00%, 3/15/2011		95,029
	150,000		Berkshire Hathaway, Inc., Company Guarantee, 4.85%, 1/15/2015		145,363
	364,000		General Electric Capital, Note, 4.875%, 10/21/2010		360,192
Principal Amount					Value
			CORPORATE BONDS--continued
			Financial Institution - Finance Noncaptive--continued
$	100,000		General Electric Capital, Note, 4.875%, 3/04/2015	$	97,104
	200,000	2,3	ILFC E-Capital Trust I, 5.90%, 12/21/2065		201,248
	100,000		International Lease Finance Corp., Note, 4.875%, 9/01/2010		98,644
	75,000		SLM Corp., Note, 4.00%, 1/15/2010		72,147
	300,000		SLM Corp., Note, Series A, 3.95%, 8/15/2008		293,321
			TOTAL		1,462,097
			Financial Institution - Insurance - Health--0.1%
	75,000		Aetna US Healthcare, Sr. Note, 5.75%, 6/15/2011		75,960
			Financial Institution - Insurance - Life--0.1%
	100,000		AXA-UAP, Sub. Note, 8.60%, 12/15/2030		129,156
			Financial Institution - Insurance - P&C--0.5%
	100,000		The St. Paul Travelers Co., Inc., Sr. Unsecd. Note, 5.50%, 12/01/2015		99,632
	500,000	2,3	ZFS Finance USA Trust I, Jr. Sub. Note, 6.15%, 12/15/2065		507,375
			TOTAL		607,007
			Financial Institution - REITs--0.1%
	75,000		Health Care Property Investments Inc., 5.95%, 9/15/2011		75,488
			Foreign-Local-Govt--0.1%
	100,000		Ontario, Province of, Note, 4.50%, 2/03/2015		95,660
			Technology--0.2%
	75,000		Cisco Systems, Inc., Sr. Note, 5.25%, 2/22/2011		75,045
	100,000		Dell Computer Corp., Sr. Deb., 7.10%, 4/15/2028		108,150
	100,000		Oracle Corp., Sr. Unsecd. Note, Series WI, 5.00%, 1/15/2011		98,849
			TOTAL		282,044
			Transportation - Airlines--0.1%
	75,000		Southwest Airlines Co., 6.50%, 3/01/2012		77,870
	50,000		Southwest Airlines Co., Deb., 7.375%, 3/1/2027		54,324
			TOTAL		132,194
			Transportation - Railroads--0.2%
	75,000		Burlington Northern Santa Fe Corp., Sr. Note, 4.875%, 1/15/2015		71,588
	100,000		Norfolk Southern Corp., Sr. Note, 6.75%, 2/15/2011		104,746
	100,000		Union Pacific Corp., 4.875%, 1/15/2015		95,513
			TOTAL		271,847
			Transportation - Services--0.1%
	100,000		FedEx Corp., Note, 5.50%, 8/15/2009		100,486
Principal Amount or Shares					Value
			CORPORATE BONDS--continued
			Utility - Electric--0.7%
$	100,000		Cleveland Electric Illum, Sr. Unsecd. Note, 5.95%, 12/15/2036	$	95,955
	100,000		Consolidated Edison Co., Sr. Unsecd. Note, Series 2006C, 5.50%, 9/15/2016		100,282
	100,000		Exelon Generation Co. LLC, Sr. Note, 5.35%, 1/15/2014		98,167
	100,000		FirstEnergy Corp., Note, Series B, 6.45%, 11/15/2011		104,176
	100,000		PSEG Power LLC, Company Guarantee, 7.75%, 4/15/2011		108,535
	75,000		PSI Energy, Inc., Bond, 6.05%, 6/15/2016		77,202
	100,000		Pacific Gas & Electric Co., Unsecd. Note, 4.20%, 3/01/2011		95,519
	300,000		Wisconsin Power & Light Co., Note, 7.00%, 6/15/2007		301,582
			TOTAL		981,418
			Utility - Natural Gas Distributor--0.1%
	100,000		Atmos Energy Corp., Sr. Note, 4.00%, 10/15/2009		96,448
			TOTAL CORPORATE BONDS (IDENTIFIED COST $13,191,085)		13,040,431
			GOVERNMENT AGENCIES--6.8%
	4,000,000		Federal Home Loan Bank System, 5.375% 8/19/2011		4,048,648
	1,000,000		Federal Home Loan Mortgage Corp., 4.125%, 7/12/2010		970,660
	1,000,000		Federal Home Loan Mortgage Corp., 5.25%, 7/18/2011		1,007,235
	1,000,000		Federal Home Loan Mortgage Corp., 5.50%, 7/18/2016		1,027,315
	2,000,000		Federal National Mortgage Association, 5.25%, 1/15/2009		2,005,974
			TOTAL GOVERNMENT AGENCIES (IDENTIFIED COST $9,088,751)		9,059,832
			MORTGAGE-BACKED SECURITIES--0.1%
	28,977		Federal National Mortgage Association Pool 408761, 7.00%, 12/1/2012		29,662
	12,635		Federal National Mortgage Association Pool 512255, 7.50%, 9/1/2014		13,130
	42,172		Federal National Mortgage Association Pool 609554, 7.50%, 10/1/2016		43,197
			TOTAL MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $86,490)		85,989
			U.S. TREASURY--4.6%
	1,197,372		U.S. Treasury Inflation Protected Note, 2.500%, 7/15/2016		1,209,912
	1,250,000		United States Treasury Bond, 4.500%, 2/15/2036		1,170,233
	4,000,000	4	United States Treasury Note, 3.875%, 2/15/2013		3,809,615
			TOTAL U.S. TREASURY (IDENTIFIED COST $6,287,764)		6,189,760
			EXCHANGE TRADED FUND--8.0%
	142,450		iShares MSCI EAFE Index Fund (IDENTIFIED COST $8,320,096)		10,575,488
Shares or Principal Amount					Value
			MUTUAL FUNDS--8.1%
	42,893		Emerging Markets Fixed Income Core Fund	$	899,113
	807,927		Federated Mortgage Core Portfolio		7,958,084
	270,466		High Yield Bond Portfolio		1,866,216
			TOTAL MUTUAL FUNDS (IDENTIFIED COST $10,781,851)		10,723,413
			REPURCHASE AGREEMENT--3.0%
$	3,949,000		Interest in $250,000,000 joint repurchase agreement 5.23%, dated 1/31/2007, Mizuho Securities USA, Inc. will repurchase U.S. Treasury securities with various maturities to 2/15/2016 for $250,036,319 on 2/1/2007. The market value of the underlying securities at the end of the period was $255,000,001. (AT COST)		3,949,000
			TOTAL INVESTMENTS--100.4% (IDENTIFIED COST $122,283,614) 5		133,450,414
			OTHER ASSETS AND LIABILITIES - NET--(0.4)%		(573,252	)
			TOTAL NET ASSETS--100%	$	132,877,162

1 Non-income producing security.

2 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 January 31, 2007, these restricted securities amounted to $955,987, which represented 0.7% of total net assets.

3 Denotes a restricted security that may be resold without restriction to "qualified institutional buyers" as defined by 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. At January 31, 2007, these liquid restricted securities amounted to $955,987, which represented 0.7% of total net assets.

4 Pledged as collateral to ensure the Fund is able to satisfy the obligations of its outstanding long futures contracts.

5 Also represents cost for federal tax purposes.

At January 31, 2007, the Fund had the following outstanding futures contracts:

Description	Number of Contracts	Notional Value	Expiration Date	Unrealized Appreciation
1 United States Treasury Notes 10 Year Futures	13	$1,387,750	March 2007	$3,195

Note: The categories of investments are shown as a percentage of total net assets at January 31, 2007.

The following acronyms are used throughout this portfolio:

REITs	- --Real Estate Investment Trust
REMIC	- --Real Estate Mortgage Investment Conduit

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

January 31, 2007 (unaudited)

Assets:
Total investments in securities, at value including $10,723,413 of investments in affiliated issuers (Note 5) (identified cost $122,283,614)			$	133,450,414
Cash				55,099
Income receivable				490,275
Receivable for investments sold				1,951,046
Receivable for shares sold				490,141
Receivable for daily variation margin				5,078
TOTAL ASSETS				136,442,053
Liabilities:
Payable for investments purchased	$	3,227,423
Payable for shares redeemed		189,772
Payable for administrative personnel and services fee (Note 5)		58,585
Payable for Directors'/Trustees' fees		3,351
Payable for distribution services fee (Note 5)		6,465
Payable for shareholder services fee (Note 5)		17,189
Accrued expenses		62,106
TOTAL LIABILITIES				3,564,891
Net assets for 9,787,014 shares outstanding			$	132,877,162
Net Assets Consist of:
Paid-in capital			$	119,990,246
Net unrealized appreciation of investments and futures contracts				11,169,995
Accumulated net realized gain on investments				1,361,224
Undistributed net investment income				355,697
TOTAL NET ASSETS			$	132,877,162

Statement of Assets and Liabilities - continued

January 31, 2007 (unaudited)

Net Asset Value, Offering Price and Redemption Proceeds per Share
Institutional Shares:
Net asset value per share ($81,798,718 ÷ 6,016,580 shares outstanding), no par value, unlimited shares authorized	$13.60
Offering price per share	$13.60
Redemption proceeds per share	$13.60
Class A Shares:
Net asset value per share ($39,521,221 ÷ 2,912,633 shares outstanding), no par value, unlimited shares authorized	$13.57
Offering price per share (100/94.50 of $13.57) 1	$14.36
Redemption proceeds per share	$13.57
Class C Shares:
Net asset value per share ($11,557,128 ÷ 857,794 shares outstanding), no par value, unlimited shares authorized	$13.47
Offering price per share (100/99.00 of $13.47) 1	$13.61
Redemption proceeds per share (99.00/100 of $13.47) 1	$13.34
Class K Shares:
Net asset value per share ($95.24 ÷ 7.003 shares outstanding), no par value, unlimited shares authorized	$13.60
Offering price per share	$13.60
Redemption proceeds per share	$13.60

1 See "What Do Shares Cost?" in the Prospectus.

See Notes which are an integral part of the Financial Statements

Statement of Operations

Six Months Ended January 31, 2007 (unaudited)

Investment Income:
Dividends (including $65,676 received from affiliated issuers (Note 5) and net foreign taxes withheld of $426)							$	867,491
Interest								956,499
Investment income allocated from affiliated partnership (Note 5)								7,971
TOTAL INCOME								1,831,961
Expenses:
Investment adviser fee (Note 5)				$	417,680
Administrative personnel and services fee (Note 5)					115,946
Custodian fees					19,922
Transfer and dividend disbursing agent fees and expenses					112,388
Directors'/Trustees' fees					1,614
Auditing fees					10,082
Legal fees					4,537
Portfolio accounting fees					42,415
Distribution services fee--Class A Shares (Note 5)					18,948
Distribution services fee--Class C Shares (Note 5)					34,989
Shareholder services fee--Class A Shares (Note 5)					13,539
Shareholder services fee--Class C Shares (Note 5)					3,650
Share registration costs					30,724
Printing and postage					18,702
Insurance premiums					4,607
Miscellaneous					2,439
EXPENSES BEFORE ALLOCATION					852,182
Expenses allocated from partnership					78
TOTAL EXPENSES					852,260
Waivers:
Waiver of investment adviser fee (Note 5)	$	(76,553	)
Waiver of administrative personnel and services fee (Note 5)		(57,249	)
Waiver of transfer and dividend disbursing agent fees and expenses		(8,286	)
TOTAL WAIVERS					(142,088	)
Net expenses								710,172
Net investment income								1,121,789
Realized and Unrealized Gain on Investments and Futures Contracts:
Net realized gain on investments								1,869,675
Net realized gain allocated from partnership								3,965
Net change in unrealized appreciation of investments and futures contracts								6,469,699
Net realized and unrealized gain on investments and futures contracts								8,343,339
Change in net assets resulting from operations							$	9,465,128

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

		Six Months Ended (unaudited) 1/31/2007			Year Ended 7/31/2006
Increase (Decrease) in Net Assets
Operations:
Net investment income	$	1,121,789		$	1,362,405
Net realized gain on investments including allocation from partnership		1,873,640			6,686,253
Net change in unrealized appreciation/depreciation of investments and futures contracts		6,469,699			(3,917,876	)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		9,465,128			4,130,782
Distributions to Shareholders:
Distributions from net investment income
Institutional Shares		(966,746	)		(964,275	)
Class A Shares		(418,653	)		(12	)
Class C Shares		(75,923	)		(11	)
Class K Shares		(1	)		- --
Distributions from net realized gain on investments
Institutional Shares		(3,727,211	)		(4,964,729	)
Class A Shares		(1,712,874	)		(68	)
Class C Shares		(451,805	)		(68	)
Class K Shares		(4	)		- --
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS		(7,353,217	)		(5,929,163	)
Share Transactions:
Proceeds from sale of shares		52,826,521			13,083,928
Net asset value of shares issued to shareholders in payment of distributions declared		7,010,752			5,924,802
Cost of shares redeemed		(8,691,487	)		(6,910,472	)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		51,145,786			12,098,258
Change in net assets		53,257,697			10,299,877
Net Assets:
Beginning of period		79,619,465			69,319,588
End of period (including undistributed net investment income of $355,697 and $695,231, respectively)	$	132,877,162		$	79,619,465

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

January 31, 2007 (unaudited)

1. ORGANIZATION

Federated MDT Series (the "Trust") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Trust consists of eight portfolios. The financial statements included herein are only those of Federated MDT Balanced Fund (the "Fund"), a diversified portfolio. The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held. The Fund offers four classes of shares: Institutional Shares, Class A Shares, Class C Shares and Class K Shares. All shares of the Fund have equal rights with respect to voting, except on class-specific matters. The financial highlights of the Class A Shares, Class C Shares and Class K Shares are presented separately. The primary investment objective of the Fund is long-term growth through capital appreciation and current income.

MDT Balanced Fund (the "Predecessor Fund") was reorganized into the Fund as of the close of business on December 8, 2006. Prior to the reorganization, the Fund had no investment operations. The Fund is the successor to the Predecessor Fund, which commenced offering Class A Shares and Class C Shares on September 15, 2005.

The Fund commenced offering Class K Shares on December 12, 2006.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with generally accepted accounting principles (GAAP) in the United States of America.

Investment Valuation

Market values of the Fund's portfolio securities are determined as follows:

• for equity securities, according to the last sale price or official closing price reported in the market in which they are primarily traded (either a national securities exchange or the over-the-counter market), if available;
• in the absence of recorded sales for equity securities, according to the mean between the last closing bid and asked prices;
• futures contracts and options are generally valued at market values established by the exchanges on which they are traded at the close of trading on such exchanges. Options traded in the over-the-counter market are generally valued according to the mean between the last bid and the last asked price for the option as provided by an investment dealer or other financial institution that deals in the option. The Board of Trustees (the "Trustees") may determine in good faith that another method of valuing such investments is necessary to appraise their fair market value;
• prices for total return swaps are furnished by an independent pricing service and are based upon a valuation model incorporating underlying reference indexes, interest rates, yield curves and other market data or factors. Prices for credit default swaps are furnished by an independent pricing service and are based upon a valuation model incorporating default probabilities, recovery rates and other market data or factors;
• for mortgage-backed securities, based on the aggregate investment value of the projected cash flows to be generated by the security, as furnished by an independent pricing service;
• for investments in other open-end regulated investment companies, based on net asset value (NAV);
• for other fixed-income securities, according to prices as furnished by an independent pricing service, except that fixed-income securities with remaining maturities of less than 60 days at the time of purchase are valued at amortized cost; and
• for all other securities at fair value as determined in accordance with procedures established by and under the general supervision of the Trustees.

Prices for fixed-income securities furnished by a pricing service may be based on a valuation matrix which incorporates both dealer-supplied valuations and electronic data processing techniques. Such prices (other than prices of mortgage-backed securities) are generally intended to be indicative of the bid prices currently offered to institutional investors for the securities except that prices for corporate fixed-income and asset-backed securities traded in the United States are generally intended to be indicative of the mean between such bid prices and asked prices. The Trustees have approved the use of such pricing services. A number of pricing services are available, and the Fund may use various pricing services or discontinue the use of any pricing service.

Prices provided by independent pricing services may be determined without relying exclusively on quoted prices and may consider institutional trading in similar groups of securities, yield, quality, stability, risk, coupon rate, maturity, type of issue, trading characteristics, and other market data or factors. From time to time, when prices cannot be obtained from an independent pricing service, securities may be valued based on quotes from broker-dealers or other financial institutions that trade the securities.

Trading in foreign securities may be completed at times which vary from the closing of the New York Stock Exchange (NYSE). In computing its NAV, the Fund values foreign securities using the latest closing price on the exchange on which they are traded immediately prior to the closing of the NYSE. Certain foreign currency exchange rates are generally determined at the latest rate prior to the closing of the NYSE. Foreign securities quoted in foreign currencies are translated into U.S. dollars at current rates. Events that affect these values and exchange rates may occur between the times at which they are determined and the closing of the NYSE. If such events materially affect the value of portfolio securities, these securities may be valued at their fair value as determined in good faith by the Trustees, although the actual calculation may be done by others.

Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (SEC), the Fund may invest in portfolios of Federated Core Trust, (Core Trust) which is managed by Federated Investment Management Company, the Fund's adviser. Core Trust is an open-end management company, registered under the Act, available only to registered investment companies and other institutional investors. The investment objective of High Yield Bond Portfolio, a series of Core Trust, is to seek high current income by investing primarily in a diversified portfolio of lower rated fixed-income securities. The investment objective of Federated Mortgage Core Portfolio, a series of Core Trust, is to achieve total return on assets. Federated receives no advisory or administrative fees on behalf of Core Trust. Income distributions from Core Trust are declared daily and paid monthly, and are recorded by the Fund as dividend income. Capital gain distributions, if any, from Core Trust are declared and paid annually, and are recorded by the Fund as capital gains. The performance of the Fund is directly affected by the performance of the Core Trust. A copy of the Core Trust's financial statements is available on the EDGAR Database on the SEC's website at www.sec.gov, at the Commission's public reference room in Washington, DC or upon request from the fund by calling 1-800-341-7400.

The Fund may also invest in portfolios of Federated Core Trust II (Core Trust II), pursuant to a separate Exemptive Order issued by the SEC. Core Trust II is independently managed by Federated Investment Counseling. Core Trust II is a limited partnership established under the laws of the state of Delaware, on November 13, 2000, registered under the Act, and offered only to registered investment companies and other accredited investors. The investment objective of Emerging Markets Fixed Income Core Fund (EMCORE), a series of Core Trust II, is to achieve total return on assets. Federated receives no advisory or administrative fees on behalf of the Core Trust II. The Fund records daily its proportionate share of income, expenses, unrealized gains and losses from EMCORE. The performance of the Fund is directly affected by the performance of the portfolio. A copy of EMCORE's financial statements is available on the EDGAR Database on the SEC's website at www.sec.gov, at the Commission's public reference room in Washington, DC or upon request from the Fund by calling 1-800-341-7400.

Repurchase Agreements

It is the policy of the Fund to require the other party to a repurchase agreement to transfer to the Fund's custodian or sub-custodian eligible securities or cash with a market value (after transaction costs) at least equal to the repurchase price to be paid under the repurchase agreement. The eligible securities are transferred to accounts with the custodian or sub-custodian in which the Fund holds a "securities entitlement" and exercises "control" as those terms are defined in the Uniform Commercial Code. The Fund has established procedures for monitoring the market value of the transferred securities and requiring the transfer of additional eligible securities if necessary to equal at least the repurchase price. These procedures also allow the other party to require securities to be transferred from the account to the extent that their market value exceeds the repurchase price or in exchange for other eligible securities of equivalent market value.

With respect to agreements to repurchase U.S. government securities and cash items, the Fund treats the repurchase agreement as an investment in the underlying securities and not as an obligation of the other party to the repurchase agreement. Other repurchase agreements are treated as obligations of the other party secured by the underlying securities. Nevertheless, the insolvency of the other party or other failure to repurchase the securities may delay the disposition of the underlying securities or cause the Fund to receive less than the full repurchase price. Under the terms of the repurchase agreement, any amounts received by the Fund in excess of the repurchase price and related transaction costs must be remitted to the other party.

The Fund may enter into repurchase agreements in which eligible securities are transferred into joint trading accounts maintained by the custodian or sub-custodian for investment companies and other clients advised by the Fund's adviser and its affiliates. The Fund will participate on a pro rata basis with the other investment companies and clients in its share of the securities transferred under such repurchase agreements and in its share of proceeds from any repurchase or other disposition of such securities.

Investment Income, Gains and Losses, Expenses and Distributions

Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Distributions of net investment income, if any, are declared and paid annually. Non-cash dividends included in dividend income, if any, are recorded at fair value. Investment income, realized and unrealized gains and losses, and certain fund-level expenses are allocated to each class based on relative average daily net assets, except that each class bears certain expenses unique to that class such as distribution and shareholder services fees. Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses.

Premium and Discount Amortization/Paydown Gains and Losses

All premiums and discounts on fixed-income securities, other than mortgage-backed securities, are amortized/accreted for financial statement purposes. Gains and losses realized on principal payment of mortgage-backed securities (paydown gains and losses) are classified as part of investment income.

Federal Taxes

It is the Fund's policy to comply with the Subchapter M provision of the Internal Revenue Code (the "Code") and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal income tax is necessary.

Withholding taxes, and where appropriate, deferred withholding taxes, on foreign interest, dividends and capital gains have been provided for in accordance with the applicable country's tax rules and rates.

When-Issued and Delayed Delivery Transactions

The Fund may engage in when-issued or delayed delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.

Futures Contracts

The Fund purchases and sells financial futures contracts to manage cashflows, enhance yield and to potentially reduce transaction costs. Upon entering into a financial futures contract with a broker, the Fund is required to deposit in a segregated account a specified amount of cash or U.S. government securities. Futures contracts are valued daily and unrealized gains or losses are recorded in a "variation margin" account. Daily, the Fund receives from or pays to the broker a specified amount of cash based upon changes in the variation margin account. When a contract is closed, the Fund recognizes a realized gain or loss. Futures contracts have market risks, including the risk that the change in the value of the contract may not correlate with the changes in the value of the underlying securities. For the six months ended January 31, 2007, the Fund had no net realized gains on futures contracts.

Futures contracts outstanding at period end, if any, are listed after the Fund's portfolio of investments.

Restricted Securities

Restricted securities are securities 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) are subject to contractual restrictions on public sales. In some cases, when a security cannot be offered for public sale without first being registered, the issuer of the restricted security has agreed to register such securities for resale, at the issuer's expense, either upon demand by the Fund or in connection with another registered offering of the securities. Many such restricted securities may be resold in the secondary market in transactions exempt from registration. Restricted securities may be determined to be liquid under criteria established by the Fund's Trustees. The Fund will not incur any registration costs upon such resales. The Fund's restricted securities are valued at the price provided by dealers in the secondary market or, if no market prices are available, at the fair value as determined in accordance with procedures established by and under the general supervision of the Trustees.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated.

Other

Investment transactions are accounted for on a trade date basis. Realized gains and losses from investment transactions are recorded on an identified cost basis.

3. SHARES OF BENEFICIAL INTEREST

The following tables summarize share activity:

	Six Months Ended 1/31/2007					Year Ended 7/31/2006
Institutional Shares:	Shares			Amount		Shares			Amount
Shares sold	448,775		$	6,257,979		533,396		$	7,149,815
Shares issued to shareholders in payment of distributions declared	346,321			4,668,405		457,148			5,924,643
Shares redeemed	(352,299	)		(4,787,322	)	(513,140	)		(6,866,506	)
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS	442,797		$	6,139,062		477,404		$	6,207,952
	Six Months Ended 1/31/2007					Period Ended 7/31/2006 1
Class A Shares:	Shares			Amount		Shares			Amount
Shares sold	2,859,856		$	38,775,142		149,529		$	1,973,594
Shares issued to shareholders in payment of distributions declared	144,781			1,948,745		6			80
Shares redeemed	(240,496	)		(3,264,822	)	(1,043	)		(13,564	)
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS	2,764,141		$	37,459,065		148,492		$	1,960,110
	Six Months Ended 1/31/2007					Period Ended 7/31/2006 1
Class C Shares:	Shares			Amount		Shares			Amount
Shares sold	577,837		$	7,793,300		300,157		$	3,960,519
Shares issued to shareholders in payment of distributions declared	29,439			393,602		6			79
Shares redeemed	(47,299	)		(639,343	)	(2,346	)		(30,402	)
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS	559,977		$	7,547,559		297,817		$	3,930,196
	Period Ended 1/31/2007 2					Year Ended 7/31/2006
Class K Shares:	Shares			Amount		Shares			Amount
Shares sold	7		$	100		- --			- --
NET CHANGE RESULTING FROM CLASS K SHARE TRANSACTIONS	7		$	100		- --		$	- --
NET CHANGE RESULTING FROM SHARE TRANSACTIONS	3,766,922		$	51,145,786		923,713		$	12,098,258

1 Reflects operations for the period from September 15, 2005 (date of initial public investment) to July 31, 2006.

2 Reflects operations for the period from December 12, 2006 (date of initial public investment) to January 31, 2007.

4. FEDERAL TAX INFORMATION

At January 31, 2007, the cost of investments for federal tax purposes was $122,283,614. The net unrealized appreciation of investments for federal tax purposes excluding any unrealized appreciation from futures contracts was $11,166,800. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $12,019,649 and net unrealized depreciation from investments for those securities having an excess of cost over value of $852,849.

5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated MDTA LLC, the Fund's investment adviser (the "Adviser"), receives for its services an annual investment adviser fee equal to 0.75% of the Fund's average daily net assets. Under the investment advisory contract, the Adviser is contractually obligated to waive, to the extent of its adviser fee, the amount, if any, by which the Fund's annual operating expenses exceed the following levels for each Class of the Fund:

Share Class	Percentage of Average Daily Net Assets of Class
Institutional Shares	1.25%
Class A Shares	1.50%
Class C Shares	2.25%

The Adviser has agreed to keep these contractual limitations in place through December 8, 2008.

In addition, after fulfilling its contractual commitment, the Adviser may voluntarily choose to waive and/or reimburse any additional portion of its fee. The Adviser can modify or terminate this voluntary waiver and/or reimbursement at any time at its sole discretion. For the six months ended January 31, 2007, the Adviser waived $76,553 of its fee.

For a period of three years after the fiscal year in which the Adviser waived or reimbursed Fund expenses, the Adviser may seek reimbursement from that Fund to the extent that the Fund's total annual operating expenses are less than the expense limitation. Due to the reorganization of the Fund, any expenses waived or reimbursed by the Adviser after December 8, 2006 may not be recovered by the Adviser.

Expenses waived/reimbursed by the Fund of $102,760 are subject to potential recovery by the expiration date of July 31, 2009.

Administrative Fee

Federated Administrative Services (FAS), under the Administrative Services Agreement (the "Agreement"), provides the Fund with administrative personnel and services. The fee paid to FAS is based on the average aggregate daily net assets of certain Federated funds as specified below:

Administrative Fee	Average Aggregate Daily Net Assets of the Federated Funds
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

The administrative fee received during any fiscal year shall be at least $150,000 per portfolio and $40,000 per each additional class of Shares. During the period from July 15, 2006 through December 8, 2006, the administrator contractually agreed to waive the portion of its fee which it would otherwise be entitled to receive from the Fund under the Agreement. The level of fees payable by the Fund to FAS for the period will not exceed the level of fees which the Fund would have paid during the period to its previous service provider under its previous administrative services contract. In addition, FAS may voluntarily choose to waive any portion of its fee. FAS can modify or terminate this voluntary waiver at any time at its sole discretion. For the six months ended January 31, 2007, the net fee paid to FAS was 0.105% of average aggregate daily net assets of the Fund.

Distribution Services Fee

The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will compensate Federated Securities Corp. (FSC), the principal distributor, from the daily net assets of the Fund's Class A Shares, Class C Shares and Class K Shares to finance activities intended to result in the sale of these shares. The Plan provides that the Fund may incur distribution expenses according to the following schedule annually, to compensate FSC:

Share Class	Percentage of Average Daily Net Assets of Class
Class A Shares	0.25%
Class C Shares	0.75%
Class K Shares	0.50%

Prior to December 11, 2006, the Fund incurred distribution expenses according to the following schedule annually, to compensate FSC:

Share Class	Percentage of Average Daily Net Assets of Class
Class A Shares	0.25%
Class C Shares	1.00%

FSC may voluntarily choose to waive any portion of its fee. FSC can modify or terminate this voluntary waiver at any time at its sole discretion. When FSC receives fees, it may pay some or all of them to financial intermediaries whose customers purchase shares. For the six months ended January 31, 2007, FSC retained $26,736 of fees paid by the Fund.

Sales Charges

For the six months ended January 31, 2007, FSC, the principal distributor, retained $8,675 in sales charges from the sale of Class A Shares. FSC also retained $44 of contingent deferred sales charges relating to redemptions of Class A Shares and $2,870 relating to redemptions of Class C Shares. See "What Do Shares Cost?" in the Prospectus.

Shareholder Services Fee

Effective December 11, 2006, the Fund may pay fees (Service Fees) up to 0.25% of the average daily net assets of the Fund's Class A Shares and Class C Shares to financial intermediaries or to Federated Shareholder Services Company (FSSC) for providing services to shareholders and maintaining shareholder accounts. FSSC or these financial intermediaries may voluntarily choose to waive a portion of their fee. In addition, FSSC may voluntarily reimburse the Fund for shareholder services fees. This voluntary waiver and/or reimbursement can be modified or terminated at any time. For the six months ended January 31, 2007, FSSC did not receive any fees paid by the Fund.

General

Certain of the Officers and Trustees of the Trust are Officers and Directors or Trustees of the above companies.

Transactions with Affiliated Companies

Affiliated holdings are mutual funds which are managed by the Adviser or an affiliate of the Adviser. The Adviser has agreed to reimburse the Fund for certain investment adviser fees as a result of transactions in other mutual funds. For the six months ended January 31, 2007, the Adviser was not required to reimburse any investment adviser fees. Transactions with affiliated companies during the period January 31, 2007 are as follows:

Affiliates	Balance of Shares Held 7/31/2006	Purchases/ Additions	Sales/ Reductions	Balance of Shares Held 1/31/2007	Value at 1/31/2007	Dividend Income/ Allocated Investment Income
Emerging Markets Fixed Income Core Fund	- --	42,893	- --	42,893	$ 899,113	$ 7,971
Federated Mortgage Core Portfolio	- --	807,927	- --	807,927	$ 7,958,084	$52,752
High Yield Bond Portfolio	- --	270,466	- --	270,466	$ 1,866,216	$12,924
TOTAL OF AFFILIATED TRANSACTIONS	- --			1,121,286	$10,723,413	$73,647

6. INVESTMENT TRANSACTIONS

Purchases and sales of investments, excluding long-term U.S. government securities and short-term obligations, for the six months ended January 31, 2007, were as follows:

Purchases	$	117,419,874
Sales	$	76,601,596

7. LINE OF CREDIT

The Trust entered into a $150,000,000 unsecured, uncommitted revolving line of credit (LOC) agreement with PNC Bank. The LOC was made available for extraordinary or emergency purposes, primarily for financing redemption payments. Borrowings are charged interest at a rate of 0.65% over the federal funds rate. As of January 31, 2007, there were no outstanding loans. During the six months ended January 31, 2007, the Fund did not utilize the LOC.

8. LEGAL PROCEEDINGS

Beginning in October 2003, Federated Investors, Inc. and various subsidiaries thereof (including the advisers and distributor for various investment companies, collectively, "Federated"), along with various investment companies sponsored by Federated ("Funds") were named as defendants in several class action lawsuits now pending in the United States District Court for the District of Maryland. The lawsuits were purportedly filed on behalf of people who purchased, owned and/or redeemed shares of Federated-sponsored mutual funds during specified periods beginning November 1, 1998. The suits are generally similar in alleging that Federated engaged in illegal and improper trading practices including market timing and late trading in concert with certain institutional traders, which allegedly caused financial injury to the mutual fund shareholders. These lawsuits began to be filed shortly after Federated's first public announcement that it had received requests for information on shareholder trading activities in the Funds from the Securities and Exchange Commission ("SEC"), the Office of the New York State Attorney General ("NYAG"), and other authorities. In that regard, on November 28, 2005, Federated announced that it had reached final settlements with the SEC and the NYAG with respect to those matters. As Federated previously reported in 2004, it has already paid approximately $8.0 million to certain funds as determined by an independent consultant. As part of these settlements, Federated agreed to pay for the benefit of fund shareholders additional disgorgement and a civil money penalty in the aggregate amount of an additional $72 million. Federated and various Funds have also been named as defendants in several additional lawsuits, the majority of which are now pending in the United States District Court for the Western District of Pennsylvania, alleging, among other things, excessive advisory and Rule 12b-1 fees. The Board of the Funds has retained the law firm of Dickstein Shapiro LLP to represent the Funds in these lawsuits. Federated and the Funds, and their respective counsel, are reviewing the allegations and intend to defend this litigation. Additional lawsuits based upon similar allegations may be filed in the future. The potential impact of these lawsuits, all of which seek unquantified damages, attorneys' fees and expenses, and future potential similar suits is uncertain. Although we do not believe that these lawsuits will have a material adverse effect on the Funds, there can be no assurance that these suits, the ongoing adverse publicity and/or other developments resulting from the regulatory investigations will not result in increased Fund redemptions, reduced sales of Fund shares, or other adverse consequences for the Funds.

9. RECENT ACCOUNTING PRONOUNCEMENTS

In July 2006, the Financial Accounting Standards Board (FASB) released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" (FIN 48). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax benefits of positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax expense in the current year. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years of the Fund no later than January 30, 2008. At this time, management is evaluating the implications of FIN 48 and its impact in the financial statements has not yet been determined.

In addition, in September 2006, FASB released Statement on Financial Accounting Standards No. 157, "Fair Value Measurements" (FAS 157) which is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of FAS 157 will have on the Funds' financial statement disclosures.

Evaluation and Approval of Advisory Contract

FEDERATED MDT BALANCED FUND (THE "FUND")

The Fund's Board reviewed the Fund's investment advisory contract at meetings held in May and June 2006. The Board's decision to approve the contract reflects the exercise of its business judgment on whether to authorize the creation and offering of this new investment vehicle, as proposed by, and based on information provided by, the Federated organization, and based on Federated's recommendation to go forward with establishment of the Fund.

Federated proposed the creation of the Fund in connection with its acquisition of MDTA LLC (the "Acquisition"), the investment adviser to the MDT Balanced Fund (the "Predecessor Fund"). As part of that transaction, Federated proposed that the Predecessor Fund be reorganized with and into the Fund in a tax-free reorganization (the "Proposed Reorganization"), which would provide shareholders of the Predecessor Fund the opportunity to become shareholders of a fund with substantially similar investment objectives and policies and the same portfolio manager(s) as the Predecessor Fund, but with sales, distribution and other shareholder services offered by the funds managed and distributed by affiliates of Federated.

Prior to the meeting, the Adviser had recommended that the Federated Funds appoint a Senior Officer, whose duties include specified responsibilities relating to the process by which advisory fees are to be charged to a Federated Fund. The Senior Officer appointed by the Funds has the authority to retain consultants, experts, or staff as may be reasonably necessary to assist in the performance of his duties, reports directly to the Board, and may be terminated only with the approval of a majority of the independent members of the Board. The Senior Officer prepared and furnished to the Board an independent written evaluation that covered topics discussed below, which the Board considered, along with other information, in deciding to approve the advisory contract.

The Board also considered the anticipated compensation and benefits to be received by the Adviser. This includes fees to be received for services provided to the Fund by other entities in the Federated organization and research services that may be received by the Adviser from brokers that execute fund trades, as well as advisory fees. The Board is also familiar with judicial decisions concerning allegedly excessive investment advisory fees which have indicated that the following factors may be relevant to an Adviser's fiduciary duty with respect to its receipt of compensation from a fund: the nature and quality of the services provided by the Adviser, including the performance of the Fund; the Adviser's cost of providing the services; the extent to which the Adviser may realize "economies of scale" as the Fund grows larger; any indirect benefits that may accrue to the Adviser and its affiliates as a result of the Adviser's relationship with the Fund; performance and expenses of comparable funds; and the extent to which the independent Board members are fully informed about all facts the Board deems relevant bearing on the Adviser's services and fees. The Board further considered management fees (including any components thereof) charged to institutional and other clients of the Adviser for like services and costs to the Adviser and its affiliates of supplying services pursuant to the management fee agreements, excluding any intra-corporate profit and profit margins of the Adviser and its affiliates from supplying such services. The Board was aware of these considerations and was guided by them in its review of the Fund's advisory contract to the extent they are appropriate and relevant, as discussed further below.

The Board considered and weighed these circumstances in light of its substantial accumulated experience in working with Federated on matters relating to other Federated funds, and was assisted in its deliberations by the advice of independent legal counsel. The Board's consideration of the advisory contract included review of the Senior Officer's evaluation, accompanying data and additional reports covering such matters as: the Adviser's investment philosophy, revenue, profitability, personnel and processes; investment and operating strategies; the Fund's investment objectives; the Fund's expenses (including the advisory fee itself and the overall expense structure of the Fund, both in absolute terms and relative to similar and/or competing funds, with due regard for contractual or voluntary expense limitations); the nature, quality and extent of the advisory and other services to be provided to the Fund by the Adviser and its affiliates; the preferences and expectations of Fund shareholders and their relative sophistication; the continuing state of competition in the mutual fund industry and market practices; the range of comparable fees for similar funds in the mutual fund industry; the Fund's relationship to the Federated family of funds which include a comprehensive array of funds with different investment objectives, policies and strategies which are available for exchange without the incurrence of additional sales charges; compliance and audit reports concerning the Federated Funds and the Federated companies that service them (including communications from regulatory agencies), as well as Federated's responses to any issues raised therein; and relevant developments in the mutual fund industry and how the Federated Funds and/or Federated are responding to them. The Board's evaluation process is evolutionary. The criteria considered and the emphasis placed on relevant criteria change in recognition of changing circumstances in the mutual fund marketplace.

With respect to the Fund's expenses in particular, the Board has found the use of comparisons to other mutual funds with comparable investment programs to be particularly useful, given the high degree of competition in the mutual fund business. The Board focused on comparisons with other similar mutual funds more heavily than non-mutual fund products or services because, simply put, they are more relevant. For example, other mutual funds are the products most like the Fund, they are readily available to Fund shareholders as alternative investment vehicles, and they are the type of investment vehicle in fact chosen and maintained by the Fund's anticipated investors. The range of their fees and expenses therefore appears to be a generally reliable indication of what consumers have found to be reasonable in the precise marketplace in which the Fund will compete. In this regard, the Senior Officer also reviewed Federated's fees for providing advisory services to products outside the Federated family of funds (e.g., institutional and separate accounts). He concluded that mutual funds and institutional accounts are inherently different products. Those differences included, but are not limited to targeting different investors, being subject to different laws and regulations, different legal structure, distribution costs, average account size and portfolio management techniques made necessary by different cash flows. The Senior Officer did not consider these fee schedules to be significant in determining the appropriateness of mutual fund advisory contracts.

The Senior Officer reviewed reports compiled by Federated and directed the preparation of reports regarding the performance of, and fees charged by other mutual funds, noting his view that comparisons to fund peer groups is of significance in judging the reasonableness of proposed fees.

Because the Fund will employ the same portfolio managers and investment techniques, the Board reviewed the Predecessor Fund's performance compared to its peer group as an indicator of how the Adviser will execute the Fund's investment program, which in turn assisted the Board in reaching a conclusion that the nature, extent, and quality of the Adviser's investment management services were such as to warrant approval of the advisory contract. The Board noted that the performance of the Predecessor Fund and/or accounts managed by MDTA LLC with substantially similar investment objectives and policies was above the median of its relevant peer group for the one and three year periods reviewed.

The Senior Officer noted that the Fund's quantitative focus made it difficult to compare its fees and expenses to other peers, which varied widely in their complexity. He observed that the management of the Fund is among the more complex, relative to its peers and, consequently, that the advisory fee and projected net total expenses are at the high end compared to such peers. The Board reviewed the proposed fees and other expenses of the Fund with the Adviser and was satisfied that the proposed overall expense structure of the Fund appeared competitive. The Board will continue to monitor advisory fees and other expenses borne by the Fund. No changes were recommended to, and no objection was raised to the proposed advisory contract, and the Senior Officer noted that Federated proposed to provide appropriate administrative services to the Fund for the anticipated fees. The Board concluded that the nature, quality and scope of services to be provided to the Fund by the Adviser and its affiliates was satisfactory.

The Board also considered possible indirect benefits that may accrue to the Adviser and its affiliates as a result of the Acquisition. Other indirect benefits that may accrue to the Adviser and its affiliates as a result of the Adviser's relationship with the Fund are essentially impossible to apply before the Fund has experienced any meaningful operating history. Nevertheless, in connection with the Board's governance of other Federated funds, it should be noted that the Board regularly receives financial information about Federated, including reports on the compensation and benefits Federated derives from its relationships with the other Federated funds. These reports cover not only the fees under the advisory contracts, but also fees received by Federated's subsidiaries for providing other services to the Federated Funds under separate contracts (e.g., for serving as the Federated Funds' administrator). The reports also discuss any indirect benefit Federated may derive from its receipt of research services from brokers who execute Federated fund trades, as well as waivers of fees and/or reimbursements of expenses. In order for a fund to be competitive in the marketplace, Federated and its affiliates frequently waive fees and/or reimburse expenses and have indicated to the Board their intention to do so in the future, where appropriate. It was noted in this regard that the Adviser has agreed to limit the expenses of each class of the Fund at specified amounts for a two year period commencing on the date the Proposed Reorganization is consummated.

Federated furnished reports, requested by the Senior Officer, that made estimates of the allocation of expenses on a fund by fund basis, using allocation methodologies specified by the Senior Officer. The Senior Officer noted that, although they may apply consistent allocation processes, the inherent difficulties in allocating costs and the lack of consensus on how to allocate those costs causes such allocation reports to be of questionable value. The allocation reports were considered in the analysis by the Board but were determined to be of limited use.

The Board also reviewed profitability information for Federated and other publicly held fund management companies, provided by the Senior Officer, who noted the limited availability of such information, and concluded that Federated's profit margins did not appear to be excessive.

The Senior Officer's evaluation also discussed the notion of possible realization of "economies of scale" as a fund grows larger. The Board considered in this regard that the Adviser has made significant additional investments in the portfolio management and distribution efforts supporting all of the Federated Funds and that the benefits of any economies, should they exist, were likely to be enjoyed by the fund complex as a whole. Finally, the Board also noted the absence of any applicable regulatory or industry guidelines on this subject, which is compounded by the lack of any common industry practice or general pattern with respect to structuring fund advisory fees with "breakpoints" that serve to reduce the fee as the fund attains a certain size. The Senior Officer did not recommend institution of breakpoints in pricing Federated's fund advisory services at this time.

The Board based its decision to approve the advisory contract on the totality of the circumstances and relevant factors, and with a view to past and future long-term considerations. As noted, not all of the factors and considerations identified above were relevant to the Fund, nor does the Board consider any one of them to be determinative. With respect to the factors that are relevant, the Board's decision to approve the contract reflects its determination that, based upon the information requested and supplied, Federated's proposal to establish and manage the Fund, and its past performance and actions in providing services to other mutual funds, provide a satisfactory basis to support the business decision to approve the proposed arrangements.

Voting Proxies on Fund Portfolio Securities

A description of the policies and procedures that the Fund uses to determine how to vote proxies, if any, relating to securities held in the Fund's portfolio is available, without charge and upon request, by calling 1-800-341-7400. A report on "Form N-PX" of how the Fund voted any such proxies during the most recent 12-month period ended June 30 is available through Federated's website. Go to FederatedInvestors.com, select "Products," select the "Prospectuses and Regulatory Reports" link, then select the Fund to access the link to Form N-PX. This information is also available from the EDGAR database on the SEC's website at www.sec.gov.

Quarterly Portfolio Schedule

The Fund files with the SEC a complete schedule of its portfolio holdings, as of the close of the first and third quarters of its fiscal year, on "Form N-Q." These filings are available on the SEC's website at www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. (Call 1-800-SEC-0330 for information on the operation of the Public Reference Room.) You may also access this information from the "Products" section of Federated's website at FederatedInvestors.com by clicking on "Portfolio Holdings" and selecting the name of the Fund, or by selecting the name of the Fund and clicking on "Portfolio Holdings." You must register on the website the first time you wish to access this information.

Mutual funds are not bank deposits or obligations, are not guaranteed by any bank, and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other government agency. Investment in mutual funds involves investment risk, including the possible loss of principal.

This report is authorized for distribution to prospective investors only when preceded or accompanied by the Fund's prospectus, which contains facts concerning its objective and policies, management fees, expenses, and other information.

IMPORTANT NOTICE ABOUT FUND DOCUMENT DELIVERY

In an effort to reduce costs and avoid duplicate mailings, the Fund(s) intend to deliver a single copy of certain documents to each household in which more than one shareholder of the Fund(s) resides (so-called "householding"), as permitted by applicable rules. The Fund's "householding" program covers its/their Prospectus and Statement of Additional Information, and supplements to each, as well as Semi-Annual and Annual Shareholder Reports and any Proxies or information statements. Shareholders must give their written consent to participate in the "householding" program. The Fund is also permitted to treat a shareholder as having given consent ("implied consent") if (i) shareholders with the same last name, or believed to be members of the same family, reside at the same street address or receive mail at the same post office box, (ii) the Fund gives notice of its intent to "household" at least sixty (60) days before it begins "householding" and (iii) none of the shareholders in the household have notified the Fund(s) or their agent of the desire to "opt out" of "householding." Shareholders who have granted written consent, or have been deemed to have granted implied consent, can revoke that consent and opt out of "householding" at any time: shareholders who purchased shares through an intermediary should contact their representative; other shareholders may call the Fund at 1-800-341-7400.

Federated Securities Corp., Distributor

Cusip 31421R825

36357 (3/07)

Federated is a registered mark of Federated Investors, Inc. 2007 (c)Federated Investors, Inc.

Federated
World-Class Investment Manager

Federated MDT Large Cap Growth Fund

A Portfolio of Federated MDT Series

SEMI-ANNUAL SHAREHOLDER REPORT

January 31, 2007

Class A Shares
Class C Shares

FINANCIAL HIGHLIGHTS
SHAREHOLDER EXPENSE EXAMPLE
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
PORTFOLIO OF INVESTMENTS
STATEMENT OF ASSETS AND LIABILITIES
STATEMENT OF OPERATIONS
STATEMENT OF CHANGES IN NET ASSETS
NOTES TO FINANCIAL STATEMENTS
EVALUATION AND APPROVAL OF ADVISORY CONTRACT
VOTING PROXIES ON FUND PORTFOLIO SECURITIES
QUARTERLY PORTFOLIO SCHEDULE

Not FDIC Insured * May Lose Value * No Bank Guarantee

Financial Highlights - Class A Shares

(For a Share Outstanding Throughout Each Period)

	Six Months Ended (unaudited) 1/31/2007	1	Period Ended 7/31/2006	2
Net Asset Value, Beginning of Period	$10.17		$10.00
Income From Investment Operations:
Net investment income (loss)	(0.02	) 3	(0.10	) 3
Net realized and unrealized gain on investments	1.27		0.27
TOTAL FROM INVESTMENT OPERATIONS	1.25		0.17
Less Distributions:
Distributions from net realized gain on investments	(0.11	)	- --
Net Asset Value, End of Period	$11.31		$10.17
Total Return 4	12.33	%	1.70	%
Ratios to Average Net Assets:
Net expenses	1.51	% 5	2.01	% 5
Net investment income (loss)	(0.31	)% 5	(0.93	)% 5
Expense waiver/reimbursement 6	42.41	% 5	20.55	% 5
Supplemental Data:
Net assets, end of period (000 omitted)	$578		$183
Portfolio turnover	130	%	237	%

1 MDT Large Cap Growth Fund (the "Predecessor Fund") was reorganized into Federated MDT Large Cap Growth Fund (the "Fund") as of the close of business on December 8, 2006. Prior to the reorganization, the Fund had no investment operations. The Fund is the successor to the Predecessor Fund. The performance information and financial information presented incorporates the operations of the Predecessor Fund, which, as a result of the reorganization, are the Fund's operations.

2 Reflects operations for the period from September 15, 2005 (date of initial public investment) to July 31, 2006.

3 Per share numbers have been calculated using the average shares method.

4 Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. Total returns for periods of less than one year are not annualized.

5 Computed on an annualized basis.

6 This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above.

See Notes which are an integral part of the Financial Statements

Financial Highlights - Class C Shares

(For a Share Outstanding Throughout Each Period)

	Six Months Ended (unaudited) 1/31/2007	1	Period Ended 7/31/2006	2
Net Asset Value, Beginning of Period	$10.10		$10.00
Income From Investment Operations:
Net investment income (loss)	(0.06	) 3	(0.19	) 3
Net realized and unrealized gain on investments	1.26		0.29
TOTAL FROM INVESTMENT OPERATIONS	1.20		0.10
Less Distributions:
Distributions from net realized gain on investments	(0.11	)	- --
Net Asset Value, End of Period	$11.19		$10.10
Total Return 4	11.92	%	1.00	%
Ratios to Average Net Assets:
Net expenses	2.27	% 5	2.76	% 5
Net investment income (loss)	(1.08	)% 5	(1.68	)% 5
Expense waiver/reimbursement 6	46.24	% 5	20.55	% 5
Supplemental Data:
Net assets, end of period (000 omitted)	$229		$147
Portfolio turnover	130	%	237	%

1 The Predecessor Fund was reorganized into the Fund as of the close of business on December 8, 2006. Prior to the reorganization, the Fund had no investment operations. The Fund is the successor to the Predecessor Fund. The performance information and financial information presented incorporates the operations of the Predecessor Fund, which, as a result of the reorganization, are the Fund's operations.

2 Reflects operations for the period from September 15, 2005 (date of initial public investment) to July 31, 2006.

3 Per share numbers have been calculated using the average shares method.

4 Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. Total returns for periods of less than one year are not annualized.

5 Computed on an annualized basis.

6 This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above.

See Notes which are an integral part of the Financial Statements

Shareholder Expense Example

As a shareholder of the Fund, you incur two types of cost: (1) transaction costs, including sales charges (loads) on purchase or redemption payments; and (2) ongoing costs, including management fees; to the extent applicable, distribution (12b-1) fees and/or shareholder services fees and other Fund expenses. This Example is intended to help you to understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. It is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from August 1, 2006 to January 31, 2007.

ACTUAL EXPENSES

The first section of the table below provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you incurred over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled "Expenses Paid During Period" to estimate the expenses attributable to your investment during this period.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

The second section of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. Thus, you should not use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are required to be provided to enable you to compare the ongoing costs of investing in the Fund with other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase or redemption payments. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.

	Beginning Account Value 8/1/2006	Ending Account Value 1/31/2007	Expenses Paid During Period 1
Actual:
Class A Shares	$1,000	$1,123.30	$ 8.08
Class C Shares	$1,000	$1,119.20	$12.13
Hypothetical (assuming a 5% return before expenses):
Class A Shares	$1,000	$1,017.59	$ 7.68
Class C Shares	$1,000	$1,013.76	$11.52

1 Expenses are equal to the Fund's annualized net expense ratios, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). The annualized net expense ratios are as follows:

Class A Shares	1.51%
Class C Shares	2.27%

Portfolio of Investments Summary Table

At January 31, 2007, the Fund's industry composition ¹ was as follows:

Industry	Percentage of Total Net Assets
Pharmaceuticals	9.4	%
Industrial Conglomerates	8.3	%
Aerospace & Defense	7.3	%
Energy Equipment & Services	6.9	%
Biotechnology	5.2	%
Multiline Retail	5.2	%
Food & Staples Retailing	4.6	%
Internet Software & Services	4.6	%
Health Care Providers & Services	4.4	%
Machinery	4.3	%
Media	4.3	%
Computers & Peripherals	3.7	%
Diversified Financial Services	3.6	%
Road & Rail	3.3	%
Software	3.3	%
Chemicals	3.2	%
Household Products	2.6	%
Textiles, Apparel & Luxury Goods	2.6	%
Air Freight & Logistics	2.4	%
IT Services	2.0	%
Hotels, Restaurants & Leisure	1.8	%
Consumer Finance	1.6	%
Specialty Retail	1.5	%
Commercial Services & Supplies	1.2	%
Insurance	1.2	%
Communications Equipment	1.1	%
Semiconductors & Semiconductor Equipment	1.1	%
Other 2	3.0	%
Other Assets and Liabilities--Net 3	(3.7	)%
TOTAL	100.0	%

1 Except for Other Assets and Liabilities, industry classifications are based upon, and individual securities are assigned to, the classifications of the Global Industry Classification Standard (GICS) except that the adviser assigns a classification to securities not classified by the GICS and to securities for which the adviser does not have access to the classification made by the GICS.

2 For purposes of this table, industry classifications which constitute less than 1.0% of the Fund's total net assets have been aggregated under the designation "Other."

3 Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities.

Portfolio of Investments

January 31, 2007 (unaudited)

Shares					Value
			COMMON STOCKS--103.7%
			Aerospace & Defense--7.3%
	759		Boeing Co.	$	67,976
	186		Precision Castparts Corp.		16,534
	608		Raytheon Co.		31,555
			TOTAL		116,065
			Air Freight & Logistics--2.4%
	338		FedEx Corp.		37,315
			Biotechnology--5.2%
	229	1	Genentech, Inc.		20,008
	852	1	Gilead Sciences, Inc.		54,801
	203	1	Medimmune, Inc.		7,036
			TOTAL		81,845
			Chemicals--3.2%
	907		Monsanto Co.		49,967
			Commercial Services & Supplies--1.2%
	72		Corporate Executive Board Co.		6,533
	300		Robert Half International, Inc.		12,210
			TOTAL		18,743
			Communications Equipment--1.1%
	849	1	Corning, Inc.		17,693
			Computers & Peripherals--3.7%
	424	1	Apple, Inc.		36,349
	606	1	Network Appliance, Inc.		22,786
			TOTAL		59,135
			Consumer Finance--1.6%
	207	1	First Marblehead Corp.		11,261
	315		SLM Corp.		14,477
			TOTAL		25,738
			Diversified Consumer Services--0.4%
	81	1	ITT Educational Services, Inc.		6,286
			Diversified Financial Services--3.6%
	58		Chicago Mercantile Exchange Holdings, Inc.		32,671
	117		Goldman Sachs Group, Inc.		24,823
			TOTAL		57,494
			Electric Utilities--0.9%
	300	1	Allegheny Energy, Inc.		13,956
Shares					Value
			COMMON STOCKS--continued
			Electrical Equipment--0.3%
	112	1	Thomas & Betts Corp.	$	5,364
			Electronic Equipment & Instruments--0.8%
	185		Amphenol Corp., Class A		12,528
			Energy Equipment & Services--6.9%
	193	1	Cameron International Corp.		10,132
	244	1	National-Oilwell, Inc.		14,796
	1,170		Schlumberger Ltd.		74,283
	44	1	Seacor Holdings, Inc.		4,454
	95		Tidewater, Inc.		4,899
			TOTAL		108,564
			Food & Staples Retailing--4.6%
	1,515		Wal-Mart Stores, Inc.		72,250
			Health Care Equipment & Supplies--0.6%
	82		Hillenbrand Industries, Inc.		4,675
	108	1	Kinetic Concepts, Inc.		5,313
			TOTAL		9,988
			Health Care Providers & Services--4.4%
	238		Aetna, Inc.		10,034
	278	1	Coventry Health Care, Inc.		14,331
	146	1	DaVita, Inc.		7,972
	719		UnitedHealth Group, Inc.		37,575
			TOTAL		69,912
			Hotels, Restaurants & Leisure--1.8%
	250	1	Wynn Resorts Ltd.		27,935
			Household Products--2.6%
	590		Kimberly-Clark Corp.		40,946
			IT Services--2.0%
	169	1	Alliance Data Systems Corp.		11,480
	233	1	Cognizant Technology Solutions Corp.		19,873
			TOTAL		31,353
			Industrial Conglomerates--8.3%
	474		3M Co.		35,218
	2,049		General Electric Co.		73,866
	95	1	McDermott International, Inc.		4,906
	189		Textron Inc.		17,609
			TOTAL		131,599
Shares					Value
			COMMON STOCKS--continued
			Insurance--1.2%
	389		Aflac, Inc.	$	18,520
			Internet Software & Services--4.6%
	2,224	1	eBay, Inc.		72,035
			Machinery--4.3%
	229		Dover Corp.		11,358
	1,117		Illinois Tool Works, Inc.		56,956
			TOTAL		68,314
			Media--4.3%
	1,048	1	DIRECTV Group, Inc.		25,561
	1,842		News Corp., Inc.		42,827
			TOTAL		68,388
			Multiline Retail--5.2%
	824	1	Kohl's Corp.		58,430
	301		Penney (J.C.) Co., Inc.		24,453
			TOTAL		82,883
			Pharmaceuticals--9.4%
	1,318		Eli Lilly & Co.		71,330
	162	1	Forest Laboratories, Inc., Class A		9,090
	106		Johnson & Johnson		7,081
	2,101		Schering Plough Corp.		52,525
	149	1	Sepracor, Inc.		8,502
			TOTAL		148,528
			Road & Rail--3.3%
	394		Burlington Northern Santa Fe Corp.		31,662
	401		Norfolk Southern Corp.		19,910
			TOTAL		51,572
			Semiconductors & Semiconductor Equipment--1.1%
	167		KLA-Tencor Corp.		8,221
	223	1	NVIDIA Corp.		6,835
	64	1	Varian Semiconductor Equipment Associates, Inc.		2,634
			TOTAL		17,690
			Software--3.3%
	274	1	Autodesk, Inc.		11,979
	747	1	Electronic Arts, Inc.		37,350
	54		FactSet Research Systems		3,136
			TOTAL		52,465
Shares					Value
			COMMON STOCKS--continued
			Specialty Retail--1.5%
	158	1	CarMax, Inc.	$	9,074
	56	1	Guess ?, Inc.		4,038
	442		Staples, Inc.		11,368
			TOTAL		24,480
			Textiles, Apparel & Luxury Goods--2.6%
	703	1	Coach, Inc.		32,240
	107		Polo Ralph Lauren Corp., Class A		8,779
			TOTAL		41,019
			TOTAL COMMON STOCKS		1,640,570
			TOTAL INVESTMENTS--103.7% (IDENTIFIED COST $1,555,848) 2		1,640,570
			OTHER ASSETS AND LIABILITIES - NET--(3.7)%		(58,632	)
			TOTAL NET ASSETS--100%	$	1,581,938

1 Non-income producing security.

2 Also represents cost for federal tax purposes.

Note: The categories of investments are shown as a percentage of net assets at January 31, 2007.

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

January 31, 2007 (unaudited)

Assets:
Total investments in securities, at value (identified cost $1,555,848)			$	1,640,570
Cash				18,072
Income receivable				249
Receivable for investments sold				95,940
TOTAL ASSETS				1,754,831
Liabilities:
Payable for investments purchased	$	95,334
Payable for administrative personnel and services fee (Note 5)		31,822
Payable for transfer and dividend disbursing agent fees and expenses		20,423
Payable for Directors'/Trustees' fees		1,048
Payable for audit fees		20,935
Payable for distribution services fee (Note 5)		1,360
Payable for shareholder services fee (Note 5)		289
Accrued expenses		1,682
TOTAL LIABILITIES				172,893
Net assets for 139,741 shares outstanding			$	1,581,938
Net Assets Consist of:
Paid-in capital			$	1,479,017
Net unrealized appreciation of investments				84,722
Accumulated net realized gain on investments				20,449
Accumulated net investment income (loss)				(2,250	)
TOTAL NET ASSETS			$	1,581,938
Net Asset Value, Offering Price and Redemption Proceeds per Share:
Institutional Shares:
Net asset value per share ($775,153 ÷ 68,208 shares outstanding), no par value, unlimited shares authorized				$11.36
Offering price per share				$11.36
Redemption proceeds per share				$11.36
Class A Shares:
Net asset value per share ($578,232 ÷ 51,107 shares outstanding), no par value, unlimited shares authorized				$11.31
Offering price per share (100/94.50 of $11.31) 1				$11.97
Redemption proceeds per share				$11.31
Class C Shares:
Net asset value per share ($228,553 ÷ 20,426 shares outstanding), no par value, unlimited shares authorized				$11.19
Offering price per share (100/99.00 of $11.19) 1				$11.30
Redemption proceeds per share (99.00/100 of $11.19) 1				$11.08

1 See "What Do Shares Cost?" in the Prospectus.

See Notes which are an integral part of the Financial Statements

Statement of Operations

Six Months Ended January 31, 2007 (unaudited)

Investment Income:
Dividends							$	6,109
Interest								338
TOTAL INCOME								6,447
Expenses:
Investment adviser fee (Note 5)				$	4,219
Administrative personnel and services fee (Note 5)					115,946
Custodian fees					11,737
Transfer and dividend disbursing agent fees and expenses					32,955
Directors'/Trustees' fees					734
Auditing fees					7,310
Legal fees					4,538
Portfolio accounting fees					34,777
Distribution services fee--Class A Shares (Note 5)					378
Distribution services fee--Class C Shares (Note 5)					860
Shareholder services fee--Class A Shares (Note 5)					215
Shareholder services fee--Class C Shares (Note 5)					74
Share registration costs					22,519
Printing and postage					9,149
Insurance premiums					3,413
Miscellaneous					1,929
TOTAL EXPENSES					250,753
Waivers and Reimbursement:
Waiver of investment adviser fee (Note 5)	$	(4,219	)
Waiver of administrative personnel and services fee (Note 5)		(84,110	)
Waiver of transfer and dividend disbursing agent fees and expenses		(12,933	)
Waiver of portfolio accounting fees		(21,423	)
Reimbursement of other operating expenses (Note 5)		(119,371	)
TOTAL WAIVERS AND REIMBURSEMENT					(242,056	)
Net expenses								8,697
Net investment income (loss)								(2,250	)
Realized and Unrealized Gain on Investments:
Net realized gain on investments								21,561
Net change in unrealized depreciation of investments								97,770
Net realized and unrealized gain on investments								119,331
Change in net assets resulting from operations							$	117,081

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

	Six Months Ended (unaudited) 1/31/2007			Period Ended 7/31/2006		1
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	(2,250	)	$	(2,998	)
Net realized gain on investments		21,561			18,102
Net change in unrealized appreciation/depreciation on investments		97,770			(13,048	)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		117,081			2,056
Distributions to Shareholders:
Distributions from net realized gain on investments
Institutional Shares		(7,447	)		- --
Class A Shares		(6,679	)		- --
Class C Shares		(2,090	)		- --
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS		(16,216	)		- --
Share Transactions:
Proceeds from sale of shares		1,041,143			765,410
Net asset value of shares issued to shareholders in payment of distributions declared		12,438			- --
Cost of shares redeemed		(207,287	)		(132,687	)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		846,294			632,723
Change in net assets		947,159			634,779
Net Assets:
Beginning of period		634,779			- --
End of period (including accumulated net investment income (loss) of $(2,250) and $0, respectively)	$	1,581,938		$	634,779

1 Reflects operations for the period from September 15, 2005 (date of initial public investment) to July 31, 2006.

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

January 31, 2007 (unaudited)

1. ORGANIZATION

Federated MDT Series (the "Trust") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Trust consists of eight portfolios. The financial statements included herein are only those of Federated MDT Large Cap Growth Fund (the "Fund"), a diversified portfolio. The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held. The Fund offers three classes of shares: Institutional Shares, Class A Shares and Class C Shares. All shares of the Fund have equal rights with respect to voting, except on class-specific matters. The financial highlights of the Institutional Shares are presented separately. The primary investment objective of the Fund is long-term capital appreciation.

MDT Large Cap Growth Fund (the "Predecessor Fund") was reorganized into the Fund as of the close of business on December 8, 2006. Prior to the reorganization, the Fund had no investment operations. The Fund is the successor to the Predecessor Fund, which commenced operations on September 15, 2005.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with generally accepted accounting principles (GAAP) in the United States of America.

Investment Valuation

Market values of the Fund's portfolio securities are determined as follows:

• for equity securities, according to the last sale price or official closing price reported in the market in which they are primarily traded (either a national securities exchange or the over-the-counter market), if available;
• in the absence of recorded sales for equity securities, according to the mean between the last closing bid and asked prices;
• futures contracts and options are generally valued at market values established by the exchanges on which they are traded at the close of trading on such exchanges. Options traded in the over-the-counter market are generally valued according to the mean between the last bid and the last asked price for the option as provided by an investment dealer or other financial institution that deals in the option. The Board of Trustees (the "Trustees") may determine in good faith that another method of valuing such investments is necessary to appraise their fair market value;
• prices for total return swaps are furnished by an independent pricing service and are based upon a valuation model incorporating underlying reference indexes, interest rates, yield curves and other market data or factors. Prices for credit default swaps are furnished by an independent pricing service and are based upon a valuation model incorporating default probabilities, recovery rates and other market data or factors;
• for mortgage-backed securities, based on the aggregate investment value of the projected cash flows to be generated by the security, as furnished by an independent pricing service;
• for investments in other open-end regulated investment companies, based on net asset value (NAV);
• for other fixed-income securities, according to prices as furnished by an independent pricing service, except that fixed-income securities with remaining maturities of less than 60 days at the time of purchase are valued at amortized cost; and
• for all other securities at fair value as determined in accordance with procedures established by and under the general supervision of the Trustees.

Prices for fixed-income securities furnished by a pricing service may be based on a valuation matrix which incorporates both dealer-supplied valuations and electronic data processing techniques. Such prices (other than mortgage-backed securities) are generally intended to be indicative of the bid prices currently offered to institutional investors for the securities except that prices for corporate fixed-income and asset-backed securities traded in the United States are generally intended to be indicative of the mean between such bid prices and asked prices. The Trustees have approved the use of such pricing services. A number of pricing services are available, and the Fund may use various pricing services or discontinue the use of any pricing service.

Prices provided by independent pricing services may be determined without relying exclusively on quoted prices and may consider institutional trading in similar groups of securities, yield, quality, stability, risk, coupon rate, maturity, type of issue, trading characteristics, and other market data or factors. From time to time, when prices cannot be obtained from an independent pricing service, securities may be valued based on quotes from broker-dealers or other financial institutions that trade the securities.

Trading in foreign securities may be completed at times which vary from the closing of the New York Stock Exchange (NYSE). In computing its NAV, the Fund values foreign securities using the latest closing price on the exchange on which they are traded immediately prior to the closing of the NYSE. Certain foreign currency exchange rates are generally determined at the latest rate prior to the closing of the NYSE. Foreign securities quoted in foreign currencies are translated into U.S. dollars at current rates. Events that affect these values and exchange rates may occur between the times at which they are determined and the closing of the NYSE. If such events materially affect the value of portfolio securities, these securities may be valued at their fair value as determined in good faith by the Trustees, although the actual calculation may be done by others.

Repurchase Agreements

It is the policy of the Fund to require the other party to a repurchase agreement to transfer to the Fund's custodian or sub-custodian eligible securities or cash with a market value (after transaction costs) at least equal to the repurchase price to be paid under the repurchase agreement. The eligible securities are transferred to accounts with the custodian or sub-custodian in which the Fund holds a "securities entitlement" and exercises "control" as those terms are defined in the Uniform Commercial Code. The Fund has established procedures for monitoring the market value of the transferred securities and requiring the transfer of additional eligible securities if necessary to equal at least the repurchase price. These procedures also allow the other party to require securities to be transferred from the account to the extent that their market value exceeds the repurchase price or in exchange for other eligible securities of equivalent market value.

With respect to agreements to repurchase U.S. government securities and cash items, the Fund treats the repurchase agreement as an investment in the underlying securities and not as an obligation of the other party to the repurchase agreement. Other repurchase agreements are treated as obligations of the other party secured by the underlying securities. Nevertheless, the insolvency of the other party or other failure to repurchase the securities may delay the disposition of the underlying securities or cause the Fund to receive less than the full repurchase price. Under the terms of the repurchase agreement, any amounts received by the Fund in excess of the repurchase price and related transaction costs must be remitted to the other party.

The Fund may enter into repurchase agreements in which eligible securities are transferred into joint trading accounts maintained by the custodian or sub-custodian for investment companies and other clients advised by the Fund's adviser and its affiliates. The Fund will participate on a pro rata basis with the other investment companies and clients in its share of the securities transferred under such repurchase agreements and in its share of proceeds from any repurchase or other disposition of such securities.

Investment Income, Gains and Losses, Expenses and Distributions

Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Distributions of net investment income, if any, are declared and paid annually. Non-cash dividends included in dividend income, if any, are recorded at fair value. Investment income, realized and unrealized gains and losses, and certain fund-level expenses are allocated to each class based on relative average daily net assets, except that each class bears certain expenses unique to that class such as distribution and shareholder services fees. Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses.

Premium and Discount Amortization

All premiums and discounts on fixed-income securities are amortized/accreted for financial statement purposes.

Federal Taxes

It is the Fund's policy to comply with the Subchapter M provision of the Internal Revenue Code (the "Code") and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal income tax is necessary.

When-Issued and Delayed Delivery Transactions

The Fund may engage in when-issued or delayed delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated.

Other

Investment transactions are accounted for on a trade date basis. Realized gains and losses from investment transactions are recorded on an identified cost basis.

3. SHARES OF BENEFICIAL INTEREST

The following tables summarize share activity:

	Six Months Ended 1/31/2007					Period Ended 7/31/2006 1
Institutional Shares:	Shares			Amount		Shares			Amount
Shares sold	38,412		$	431,187		40,934		$	407,353
Shares issued to shareholders in payment of distributions declared	644			7,255		- --			- --
Shares redeemed	(775	)		(8,714	)	(11,007	)		(118,788	)
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS	38,281		$	429,728		29,927		$	288,565
	Six Months Ended 1/31/2007					Period Ended 7/31/2006 1
Class A Shares:	Shares			Amount		Shares			Amount
Shares sold	49,594		$	533,498		19,173		$	206,989
Shares issued to shareholders in payment of distributions declared	405			4,547		- --			- --
Shares redeemed	(16,842	)		(184,216	)	(1,223	)		(12,810	)
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS	33,157		$	353,829		17,950		$	194,179
	Six Months Ended 1/31/2007					Period Ended 7/31/2006 1
Class C Shares:	Shares			Amount		Shares			Amount
Shares sold	7,179		$	76,458		14,649		$	151,068
Shares issued to shareholders in payment of distributions declared	57			636		- --			- --
Shares redeemed	(1,359	)		(14,357	)	(100	)		(1,089	)
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS	5,877		$	62,737		14,549		$	149,979
NET CHANGE RESULTING FROM SHARE TRANSACTIONS	77,315		$	846,294		62,426		$	632,723

1 Reflects operations for the period from September 15, 2005 (date of initial public investment) to July 31, 2006.

4. FEDERAL TAX INFORMATION

At January 31, 2007, the cost of investments for federal tax purposes was $1,555,848. The net unrealized appreciation of investments for federal tax purposes was $84,722. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $98,690 and net unrealized depreciation from investments for those securities having an excess of cost over value of $13,968.

5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated MDTA LLC, the Fund's investment adviser (the "Adviser"), receives for its services an annual investment adviser fee equal to 0.75% of the Fund's average daily net assets. Under the investment advisory contract, the Adviser is contractually obligated to waive, to the extent of its adviser fee, the amount, if any, by which the Fund's annual operating expenses exceed the following levels for each Class of the Fund:

Share Class	Percentage of Average Daily Net Assets of Class
Institutional Shares	1.80%
Class A Shares	2.05%
Class C Shares	2.80%

The Adviser has agreed to keep these contractual limitations in place through December 8, 2008.

In addition, after fulfilling its contractual commitment, the Adviser may voluntarily choose to waive and/or reimburse any additional portion of its fee. The Adviser can modify or terminate this voluntary waiver and/or reimbursement at any time at its sole discretion. For the six months ended January 31, 2007, the Adviser waived $4,219 of its fee and reimbursed $119,371 of other operating expenses.

For a period of three years after the fiscal year in which the Adviser waived or reimbursed Fund expenses, the Adviser may seek reimbursement from the Fund to the extent that the Fund's total annual operating expenses are less than the expense limitation. Due to the reorganization of the Fund, any expenses waived or reimbursed by the Adviser after December 8, 2006 may not be recovered by the Adviser.

Expenses waived/reimbursed by the Fund of $66,741 are subject to potential recovery by the expiration date of July 31, 2009.

Administrative Fee

Federated Administrative Services (FAS), under the Administrative Services Agreement (the "Agreement"), provides the Fund with administrative personnel and services. The fee paid to FAS is based on the average aggregate daily net assets of certain Federated funds as specified below:

Administrative Fee	Average Aggregate Daily Net Assets of the Federated Funds
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

The administrative fee received during any fiscal year shall be at least $150,000 per portfolio and $40,000 per each additional class of Shares. During the period from July 15, 2006 through December 8, 2006, the administrator contractually agreed to waive the portion of its fee which it would otherwise be entitled to receive from the Fund under the Agreement. The level of fees payable by the Fund to FAS for the period will not exceed the level of fees which the Fund would have paid during the period to its previous service provider under its previous administrative services contract. In addition, FAS may voluntarily choose to waive any portion of its fee. FAS can modify or terminate this voluntary waiver at any time at its sole discretion. For the six months ended January 31, 2007, the net fee paid to FAS was 5.656% of average aggregate daily net assets of the Fund.

Distribution Services Fee

The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will compensate Federated Securities Corp. (FSC), the principal distributor, from the daily net assets of the Fund's Class A Shares and Class C Shares to finance activities intended to result in the sale of these shares. The Plan provides that the Fund may incur distribution expenses according to the following schedule annually, to compensate FSC:

Share Class	Percentage of Average Daily Net Assets of Class
Class A Shares	0.25%
Class C Shares	0.75%

Prior to December 11, 2006, the Fund incurred distribution expenses according to the following schedule annually, to compensate FSC:

Share Class	Percentage of Average Daily Net Assets of Class
Class A Shares	0.25%
Class C Shares	1.00%

FSC may voluntarily choose to waive any portion of its fee. FSC can modify or terminate this voluntary waiver at any time at its sole discretion. When FSC receives fees, it may pay some or all of them to financial intermediaries whose customers purchase shares. For the six months ended January 31, 2007, FSC retained $566 of fees paid by the Fund.

Sales Charges

For the six months ended January 31, 2007, FSC, the principal distributor, retained $145 in sales charges from the sale of Class A Shares. See "What Do Shares Cost?" in the Prospectus.

Shareholder Services Fee

Effective December 11, 2006, the Fund may pay fees (Service Fees) up to 0.25% of the average daily net assets of the Fund's Class A Shares and Class C Shares to financial intermediaries or to Federated Shareholder Services Company (FSSC) for providing services to shareholders and maintaining shareholder accounts. FSSC or these financial intermediaries may voluntarily choose to waive a portion of their fee. In addition, FSSC may voluntarily reimburse the Fund for shareholder services fees. This voluntary waiver and/or reimbursement can be modified or terminated at any time. For the six months ended January 31, 2007, FSSC did not receive any fees paid by the Fund.

General

Certain of the Officers and Trustees of the Trust are Officers and Directors or Trustees of the above companies.

6. INVESTMENT TRANSACTIONS

Purchases and sales of investments, excluding long-term U.S. government securities and short-term obligations, for the six months ended January 31, 2007, were as follows:

Purchases	$	2,325,944
Sales	$	1,449,065

7. LINE OF CREDIT

The Trust entered into a $150,000,000 unsecured, uncommitted revolving line of credit (LOC) agreement with PNC Bank. The LOC was made available for extraordinary or emergency purposes, primarily for financing redemption payments. Borrowings are charged interest at a rate of 0.65% over the federal funds rate. As of January 31, 2007, there were no outstanding loans. During the six months ended January 31, 2007, the Fund did not utilize the LOC.

8. LEGAL PROCEEDINGS

Beginning in October 2003, Federated Investors, Inc. and various subsidiaries thereof (including the advisers and distributor for various investment companies, collectively, "Federated"), along with various investment companies sponsored by Federated ("Funds") were named as defendants in several class action lawsuits now pending in the United States District Court for the District of Maryland. The lawsuits were purportedly filed on behalf of people who purchased, owned and/or redeemed shares of Federated-sponsored mutual funds during specified periods beginning November 1, 1998. The suits are generally similar in alleging that Federated engaged in illegal and improper trading practices including market timing and late trading in concert with certain institutional traders, which allegedly caused financial injury to the mutual fund shareholders. These lawsuits began to be filed shortly after Federated's first public announcement that it had received requests for information on shareholder trading activities in the Funds from the Securities and Exchange Commission ("SEC"), the Office of the New York State Attorney General ("NYAG"), and other authorities. In that regard, on November 28, 2005, Federated announced that it had reached final settlements with the SEC and the NYAG with respect to those matters. As Federated previously reported in 2004, it has already paid approximately $8.0 million to certain funds as determined by an independent consultant. As part of these settlements, Federated agreed to pay for the benefit of fund shareholders additional disgorgement and a civil money penalty in the aggregate amount of an additional $72 million. Federated and various Funds have also been named as defendants in several additional lawsuits, the majority of which are now pending in the United States District Court for the Western District of Pennsylvania, alleging, among other things, excessive advisory and Rule 12b-1 fees. The Board of the Funds has retained the law firm of Dickstein Shapiro LLP to represent the Funds in these lawsuits. Federated and the Funds, and their respective counsel, are reviewing the allegations and intend to defend this litigation. Additional lawsuits based upon similar allegations may be filed in the future. The potential impact of these lawsuits, all of which seek unquantified damages, attorneys' fees and expenses, and future potential similar suits is uncertain. Although we do not believe that these lawsuits will have a material adverse effect on the Funds, there can be no assurance that these suits, the ongoing adverse publicity and/or other developments resulting from the regulatory investigations will not result in increased Fund redemptions, reduced sales of Fund shares, or other adverse consequences for the Funds.

9. RECENT ACCOUNTING PRONOUNCEMENTS

In July 2006, the Financial Accounting Standards Board (FASB) released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" (FIN 48). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax benefits of positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax expense in the current year. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years of the Fund no later than January 30, 2008. At this time, management is evaluating the implications of FIN 48 and its impact in the financial statements has not yet been determined.

In addition, in September 2006, FASB released Statement on Financial Accounting Standards No. 157, "Fair Value Measurements" (FAS 157) which is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of FAS 157 will have on the Funds' financial statement disclosures.

Evaluation and Approval of Advisory Contract

FEDERATED MDT LARGE CAP GROWTH FUND (THE "FUND")

The Fund's Board reviewed the Fund's investment advisory contract at meetings held in May and June 2006. The Board's decision to approve the contract reflects the exercise of its business judgment on whether to authorize the creation and offering of this new investment vehicle, as proposed by, and based on information provided by, the Federated organization, and based on Federated's recommendation to go forward with establishment of the Fund.

Federated proposed the creation of the Fund in connection with its acquisition of MDTA LLC (the "Acquisition"), the investment adviser to the MDT Large Cap Growth Fund (the "Predecessor Fund"). As part of that transaction, Federated proposed that the Predecessor Fund be reorganized with and into the Fund in a tax-free reorganization (the "Proposed Reorganization"), which would provide shareholders of the Predecessor Fund the opportunity to become shareholders of a fund with substantially similar investment objectives and policies and the same portfolio manager(s) as the Predecessor Fund, but with sales, distribution and other shareholder services offered by the funds managed and distributed by affiliates of Federated.

Prior to the meeting, the Adviser had recommended that the Federated Funds appoint a Senior Officer, whose duties include specified responsibilities relating to the process by which advisory fees are to be charged to a Federated Fund. The Senior Officer appointed by the Funds has the authority to retain consultants, experts, or staff as may be reasonably necessary to assist in the performance of his duties, reports directly to the Board, and may be terminated only with the approval of a majority of the independent members of the Board. The Senior Officer prepared and furnished to the Board an independent written evaluation that covered topics discussed below, which the Board considered, along with other information, in deciding to approve the advisory contract.

The Board also considered the anticipated compensation and benefits to be received by the Adviser. This includes fees to be received for services provided to the Fund by other entities in the Federated organization and research services that may be received by the Adviser from brokers that execute fund trades, as well as advisory fees. The Board is also familiar with judicial decisions concerning allegedly excessive investment advisory fees which have indicated that the following factors may be relevant to an Adviser's fiduciary duty with respect to its receipt of compensation from a fund: the nature and quality of the services provided by the Adviser, including the performance of the Fund; the Adviser's cost of providing the services; the extent to which the Adviser may realize "economies of scale" as the Fund grows larger; any indirect benefits that may accrue to the Adviser and its affiliates as a result of the Adviser's relationship with the Fund; performance and expenses of comparable funds; and the extent to which the independent Board members are fully informed about all facts the Board deems relevant bearing on the Adviser's services and fees. The Board further considered management fees (including any components thereof) charged to institutional and other clients of the Adviser for like services and costs to the Adviser and its affiliates of supplying services pursuant to the management fee agreements, excluding any intra-corporate profit and profit margins of the Adviser and its affiliates from supplying such services. The Board was aware of these considerations and was guided by them in its review of the Fund's advisory contract to the extent they are appropriate and relevant, as discussed further below.

The Board considered and weighed these circumstances in light of its substantial accumulated experience in working with Federated on matters relating to other Federated Funds, and was assisted in its deliberations by the advice of independent legal counsel. The Board's consideration of the advisory contract included review of the Senior Officer's evaluation, accompanying data and additional reports covering such matters as: the Adviser's investment philosophy, revenue, profitability, personnel and processes; investment and operating strategies; the Fund's investment objectives; the Fund's expenses (including the advisory fee itself and the overall expense structure of the Fund, both in absolute terms and relative to similar and/or competing funds, with due regard for contractual or voluntary expense limitations); the nature, quality and extent of the advisory and other services to be provided to the Fund by the Adviser and its affiliates; the preferences and expectations of Fund shareholders and their relative sophistication; the continuing state of competition in the mutual fund industry and market practices; the range of comparable fees for similar funds in the mutual fund industry; the Fund's relationship to the Federated family of funds which include a comprehensive array of funds with different investment objectives, policies and strategies which are available for exchange without the incurrence of additional sales charges; compliance and audit reports concerning the Federated Funds and the Federated companies that service them (including communications from regulatory agencies), as well as Federated's responses to any issues raised therein; and relevant developments in the mutual fund industry and how the Federated Funds and/or Federated are responding to them. The Board's evaluation process is evolutionary. The criteria considered and the emphasis placed on relevant criteria change in recognition of changing circumstances in the mutual fund marketplace.

With respect to the Fund's expenses in particular, the Board has found the use of comparisons to other mutual funds with comparable investment programs to be particularly useful, given the high degree of competition in the mutual fund business. The Board focused on comparisons with other similar mutual funds more heavily than non-mutual fund products or services because, simply put, they are more relevant. For example, other mutual funds are the products most like the Fund, they are readily available to Fund shareholders as alternative investment vehicles, and they are the type of investment vehicle in fact chosen and maintained by the Fund's anticipated investors. The range of their fees and expenses therefore appears to be a generally reliable indication of what consumers have found to be reasonable in the precise marketplace in which the Fund will compete. In this regard, the Senior Officer also reviewed Federated's fees for providing advisory services to products outside the Federated family of funds (e.g., institutional and separate accounts). He concluded that mutual funds and institutional accounts are inherently different products. Those differences included, but are not limited to targeting different investors, being subject to different laws and regulations, different legal structure, distribution costs, average account size and portfolio management techniques made necessary by different cash flows. The Senior Officer did not consider these fee schedules to be significant in determining the appropriateness of mutual fund advisory contracts.

The Senior Officer reviewed reports compiled by Federated and directed the preparation of reports regarding the performance of, and fees charged by other mutual funds, noting his view that comparisons to fund peer groups is of significance in judging the reasonableness of proposed fees.

Because the Fund will employ the same portfolio managers and investment techniques, the Board reviewed the Predecessor Fund's performance compared to its benchmark as an indicator of how the Adviser will execute the Fund's investment program, which in turn assisted the Board in reaching a conclusion that the nature, extent and quality of the Adviser's investment management services were such as to warrant approval of the advisory contract. The Board noted that the Predecessor Fund and/or accounts managed by MDTA LLC with substantially similar investment objectives and policies outperformed its relevant benchmark for the one-year period reviewed. The Board determined that reviewing performance on a gross basis was appropriate in this instance because the fee structure for separately managed accounts is not comparable for the Fund as discussed above.

The Senior Officer noted that the Fund's quantitative focus made it difficult to compare its fees and expenses to other peers, which varied widely in their complexity. He observed that the management of the Fund is among the more complex, relative to its peers and, consequently, that the advisory fee and projected net total expenses are at the high end compared to such peers. The Board reviewed the proposed fees and other expenses of the Fund with the Adviser and was satisfied that the proposed overall expense structure of the Fund appeared competitive. The Board will continue to monitor advisory fees and other expenses borne by the Fund. No changes were recommended to, and no objection was raised to the proposed advisory contract, and the Senior Officer noted that Federated proposed to provide appropriate administrative services to the Fund for the anticipated fees. The Board concluded that the nature, quality and scope of services to be provided to the Fund by the Adviser and its affiliates were satisfactory.

The Board also considered possible indirect benefits that may accrue to the Adviser and its affiliates as a result of the Acquisition. Other indirect benefits that may accrue to the Adviser and its affiliates as a result of the Adviser's relationship with the Fund are essentially impossible to apply before the Fund has experienced any meaningful operating history. Nevertheless, in connection with the Board's governance of other Federated Funds, it should be noted that the Board regularly receives financial information about Federated, including reports on the compensation and benefits Federated derives from its relationships with the other Federated Funds. These reports cover not only the fees under the advisory contracts, but also fees received by Federated's subsidiaries for providing other services to the Federated Funds under separate contracts ( e.g. , for serving as the Federated Funds' administrator). The reports also discuss any indirect benefit Federated may derive from its receipt of research services from brokers who execute Federated fund trades, as well as waivers of fees and/or reimbursements of expenses. In order for a fund to be competitive in the marketplace, Federated and its affiliates frequently waive fees and/or reimburse expenses and have indicated to the Board their intention to do so in the future, where appropriate. It was noted in this regard that the Adviser has agreed to limit the expenses of each class of the Fund at specified amounts for a two-year period commencing on the date the Proposed Reorganization is consummated.

Federated furnished reports, requested by the Senior Officer, that made estimates of the allocation of expenses on a fund by fund basis, using allocation methodologies specified by the Senior Officer. The Senior Officer noted that, although they may apply consistent allocation processes, the inherent difficulties in allocating costs and the lack of consensus on how to allocate those costs causes such allocation reports to be of questionable value. The allocation reports were considered in the analysis by the Board but were determined to be of limited use.

The Board also reviewed profitability information for Federated and other publicly held fund management companies, provided by the Senior Officer, who noted the limited availability of such information, and concluded that Federated's profit margins did not appear to be excessive.

The Senior Officer's evaluation also discussed the notion of possible realization of "economies of scale" as a fund grows larger. The Board considered in this regard that the Adviser has made significant additional investments in the portfolio management and distribution efforts supporting all of the Federated Funds and that the benefits of any economies, should they exist, were likely to be enjoyed by the fund complex as a whole. Finally, the Board also noted the absence of any applicable regulatory or industry guidelines on this subject, which is compounded by the lack of any common industry practice or general pattern with respect to structuring fund advisory fees with "breakpoints" that serve to reduce the fee as the fund attains a certain size. The Senior Officer did not recommend institution of breakpoints in pricing Federated's fund advisory services at this time.

The Board based its decision to approve the advisory contract on the totality of the circumstances and relevant factors, and with a view to past and future long-term considerations. As noted, not all of the factors and considerations identified above were relevant to the Fund, nor does the Board consider any one of them to be determinative. With respect to the factors that are relevant, the Board's decision to approve the contract reflects its determination that, based upon the information requested and supplied, Federated's proposal to establish and manage the Fund, and its past performance and actions in providing services to other mutual funds, provide a satisfactory basis to support the business decision to approve the proposed arrangements.

Voting Proxies on Fund Portfolio Securities

A description of the policies and procedures that the Fund uses to determine how to vote proxies, if any, relating to securities held in the Fund's portfolio is available, without charge and upon request, by calling 1-800-341-7400. A report on "Form N-PX" of how the Fund voted any such proxies during the most recent 12-month period ended June 30 is available through Federated's website. Go to FederatedInvestors.com, select "Products," select the "Prospectuses and Regulatory Reports" link, then select the Fund to access the link to Form N-PX. This information is also available from the EDGAR database on the SEC's website at www.sec.gov.

Quarterly Portfolio Schedule

The Fund files with the SEC a complete schedule of its portfolio holdings, as of the close of the first and third quarters of its fiscal year, on "Form N-Q." These filings are available on the SEC's website at www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. (Call 1-800-SEC-0330 for information on the operation of the Public Reference Room.) You may also access this information from the "Products" section of the Federated Investors website at FederatedInvestors.com by clicking on "Portfolio Holdings" and selecting the name of the Fund, or by selecting the name of the Fund and clicking on "Portfolio Holdings." You must register on the website the first time you wish to access this information.

Mutual funds are not bank deposits or obligations, are not guaranteed by any bank, and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other government agency. Investment in mutual funds involves investment risk, including the possible loss of principal.

This report is authorized for distribution to prospective investors only when preceded or accompanied by the Fund's prospectus, which contains facts concerning its objective and policies, management fees, expenses, and other information.

IMPORTANT NOTICE ABOUT FUND DOCUMENT DELIVERY

In an effort to reduce costs and avoid duplicate mailings, the Fund(s) intend to deliver a single copy of certain documents to each household in which more than one shareholder of the Fund(s) resides (so-called "householding"), as permitted by applicable rules. The Fund's "householding" program covers its/their Prospectus and Statement of Additional Information, and supplements to each, as well as Semi-Annual and Annual Shareholder Reports and any Proxies or information statements. Shareholders must give their written consent to participate in the "householding" program. The Fund is also permitted to treat a shareholder as having given consent ("implied consent") if (i) shareholders with the same last name, or believed to be members of the same family, reside at the same street address or receive mail at the same post office box, (ii) the Fund gives notice of its intent to "household" at least sixty (60) days before it begins "householding" and (iii) none of the shareholders in the household have notified the Fund(s) or their agent of the desire to "opt out" of "householding." Shareholders who have granted written consent, or have been deemed to have granted implied consent, can revoke that consent and opt out of "householding" at any time: shareholders who purchased shares through an intermediary should contact their representative; other shareholders may call the Fund at 1-800-341-7400.

Federated Securities Corp., Distributor

Cusip 31421R700
Cusip 31421R809

36353 (3/07)

Federated is a registered mark of Federated Investors, Inc. 2007 (c)Federated Investors, Inc.

Federated
World-Class Investment Manager

Federated MDT Large Cap Growth Fund

A Portfolio of Federated MDT Series

SEMI-ANNUAL SHAREHOLDER REPORT

January 31, 2007

Institutional Shares

FINANCIAL HIGHLIGHTS
SHAREHOLDER EXPENSE EXAMPLE
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
PORTFOLIO OF INVESTMENTS
STATEMENT OF ASSETS AND LIABILITIES
STATEMENT OF OPERATIONS
STATEMENT OF CHANGES IN NET ASSETS
NOTES TO FINANCIAL STATEMENTS
EVALUATION AND APPROVAL OF ADVISORY CONTRACT
VOTING PROXIES ON FUND PORTFOLIO SECURITIES
QUARTERLY PORTFOLIO SCHEDULE

Not FDIC Insured * May Lose Value * No Bank Guarantee

Financial Highlights

(For a Share Outstanding Throughout Each Period)

	Six Months Ended (unaudited) 1/31/2007	1	Period Ended 7/31/2006	2
Net Asset Value, Beginning of Period	$10.20		$10.00
Income From Investment Operations:
Net investment income (loss)	(0.01	) 3	(0.07	) 3
Net realized and unrealized gain on investments	1.28		0.27
TOTAL FROM INVESTMENT OPERATIONS	1.27		0.20
Less Distributions:
Distributions from net realized gain on investments	(0.11	)	- --
Net Asset Value, End of Period	$11.36		$10.20
Total Return 4	12.49	%	2.00	%
Ratios to Average Net Assets:
Net expenses	1.29	% 5	1.76	% 5
Net investment income (loss)	(0.22	)% 5	(0.68	)% 5
Expense waiver/reimbursement 6	42.37	% 5	20.55	% 5
Supplemental Data:
Net assets, end of period (000 omitted)	$775		$305
Portfolio turnover	130	%	237	%

1 MDT Large Cap Growth Fund (the "Predecessor Fund") was reorganized into the Federated MDT Large Cap Growth Fund (the "Fund") as of the close of business on December 8, 2006. Prior to the reorganization, the Fund had no investment operations. The Fund is the successor to the Predecessor Fund. The performance information and financial information presented incorporates the operations of the Predecessor Fund, which, as a result of the reorganization, are the Fund's operations.

2 Reflects operations for the period from September 15, 2005 (date of initial public investment) to July 31, 2006.

3 Per share numbers have been calculated using the average shares method.

4 Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. Total returns for periods of less than one year are not annualized.

5 Computed on an annualized basis.

6 This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above.

See Notes which are an integral part of the Financial Statements

Shareholder Expense Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; to the extent applicable, distribution (12b-1) fees and/or shareholder services fees and other Fund expenses. This Example is intended to help you to understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. It is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from August 1, 2006 to January 31, 2007.

ACTUAL EXPENSES

The first section of the table below provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you incurred over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled "Expenses Paid During Period" to estimate the expenses attributable to your investment during this period.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

The second section of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. Thus, you should not use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are required to be provided to enable you to compare the ongoing costs of investing in the Fund with other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.

	Beginning Account Value 8/1/2006	Ending Account Value 1/31/2007	Expenses Paid During Period 1
Actual	$1,000	$1,124.90	$6.91
Hypothetical (assuming a 5% return before expenses)	$1,000	$1,018.70	$6.56

1 Expenses are equal to the Funds' annualized net expense ratio of 1.29%, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

Portfolio of Investments Summary Table

At January 31, 2007, the Fund's industry composition ¹ was as follows:

Industry	Percentage of Total Net Assets
Pharmaceuticals	9.4	%
Industrial Conglomerates	8.3	%
Aerospace & Defense	7.3	%
Energy Equipment & Services	6.9	%
Biotechnology	5.2	%
Multiline Retail	5.2	%
Food & Staples Retailing	4.6	%
Internet Software & Services	4.6	%
Health Care Providers & Services	4.4	%
Machinery	4.3	%
Media	4.3	%
Computers & Peripherals	3.7	%
Diversified Financial Services	3.6	%
Road & Rail	3.3	%
Software	3.3	%
Chemicals	3.2	%
Household Products	2.6	%
Textiles, Apparel & Luxury Goods	2.6	%
Air Freight & Logistics	2.4	%
IT Services	2.0	%
Hotels, Restaurants & Leisure	1.8	%
Consumer Finance	1.6	%
Specialty Retail	1.5	%
Commercial Services & Supplies	1.2	%
Insurance	1.2	%
Communications Equipment	1.1	%
Semiconductors & Semiconductor Equipment	1.1	%
Other 2	3.0	%
Other Assets and Liabilities-Net 3	(3.7	)%
TOTAL	100.0	%

1 Except for Other Assets and Liabilities, industry classifications are based upon, and individual securities are assigned to, the classifications of the Global Industry Classification Standard (GICS) except that the adviser assigns a classification to securities not classified by the GICS and to securities for which the adviser does not have access to the classification made by the GICS.

2 For purposes of this table, industry classifications which constitute less than 1.0% of the Fund's total net assets have been aggregated under the designation "Other."

3 Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities.

Portfolio of Investments

January 31, 2007 (unaudited)

Shares					Value
			COMMON STOCKS--103.7%
			Aerospace & Defense--7.3%
	759		Boeing Co.	$	67,976
	186		Precision Castparts Corp.		16,534
	608		Raytheon Co.		31,555
			TOTAL		116,065
			Air Freight & Logistics--2.4%
	338		FedEx Corp.		37,315
			Biotechnology--5.2%
	229	1	Genentech, Inc.		20,008
	852	1	Gilead Sciences, Inc.		54,801
	203	1	Medimmune, Inc.		7,036
			TOTAL		81,845
			Chemicals--3.2%
	907		Monsanto Co.		49,967
			Commercial Services & Supplies--1.2%
	72		Corporate Executive Board Co.		6,533
	300		Robert Half International, Inc.		12,210
			TOTAL		18,743
			Communications Equipment--1.1%
	849	1	Corning, Inc.		17,693
			Computers & Peripherals--3.7%
	424	1	Apple, Inc.		36,349
	606	1	Network Appliance, Inc.		22,786
			TOTAL		59,135
			Consumer Finance--1.6%
	207	1	First Marblehead Corp.		11,261
	315		SLM Corp.		14,477
			TOTAL		25,738
			Diversified Consumer Services--0.4%
	81	1	ITT Educational Services, Inc.		6,286
Shares					Value
			COMMON STOCKS--continued
			Diversified Financial Services--3.6%
	58		Chicago Mercantile Exchange Holdings, Inc.	$	32,671
	117		Goldman Sachs Group, Inc.		24,823
			TOTAL		57,494
			Electric Utilities--0.9%
	300	1	Allegheny Energy, Inc.		13,956
			Electrical Equipment--0.3%
	112	1	Thomas & Betts Corp.		5,364
			Electronic Equipment & Instruments--0.8%
	185		Amphenol Corp., Class A		12,528
			Energy Equipment & Services--6.9%
	193	1	Cameron International Corp.		10,132
	244	1	National-Oilwell, Inc.		14,796
	1,170		Schlumberger Ltd.		74,283
	44	1	Seacor Holdings, Inc.		4,454
	95		Tidewater, Inc.		4,899
			TOTAL		108,564
			Food & Staples Retailing--4.6%
	1,515		Wal-Mart Stores, Inc.		72,250
			Health Care Equipment & Supplies--0.6%
	82		Hillenbrand Industries, Inc.		4,675
	108	1	Kinetic Concepts, Inc.		5,313
			TOTAL		9,988
			Health Care Providers & Services--4.4%
	238		Aetna, Inc.		10,034
	278	1	Coventry Health Care, Inc.		14,331
	146	1	DaVita, Inc.		7,972
	719		UnitedHealth Group, Inc.		37,575
			TOTAL		69,912
			Hotels, Restaurants & Leisure--1.8%
	250	1	Wynn Resorts Ltd.		27,935
			Household Products--2.6%
	590		Kimberly-Clark Corp.		40,946
Shares					Value
			COMMON STOCKS--continued
			IT Services--2.0%
	169	1	Alliance Data Systems Corp.	$	11,480
	233	1	Cognizant Technology Solutions Corp.		19,873
			TOTAL		31,353
			Industrial Conglomerates--8.3%
	474		3M Co.		35,218
	2,049		General Electric Co.		73,866
	95	1	McDermott International, Inc.		4,906
	189		Textron Inc.		17,609
			TOTAL		131,599
			Insurance--1.2%
	389		Aflac, Inc.		18,520
			Internet Software & Services--4.6%
	2,224	1	eBay, Inc.		72,035
			Machinery--4.3%
	229		Dover Corp.		11,358
	1,117		Illinois Tool Works, Inc.		56,956
			TOTAL		68,314
			Media--4.3%
	1,048	1	DIRECTV Group, Inc.		25,561
	1,842		News Corp., Inc.		42,827
			TOTAL		68,388
			Multiline Retail--5.2%
	824	1	Kohl's Corp.		58,430
	301		Penney (J.C.) Co., Inc.		24,453
			TOTAL		82,883
			Pharmaceuticals--9.4%
	1,318		Eli Lilly & Co.		71,330
	162	1	Forest Laboratories, Inc., Class A		9,090
	106		Johnson & Johnson		7,081
	2,101		Schering Plough Corp.		52,525
	149	1	Sepracor, Inc.		8,502
			TOTAL		148,528
Shares					Value
			COMMON STOCKS--continued
			Road & Rail--3.3%
	394		Burlington Northern Santa Fe Corp.	$	31,662
	401		Norfolk Southern Corp.		19,910
			TOTAL		51,572
			Semiconductors & Semiconductor Equipment--1.1%
	167		KLA-Tencor Corp.		8,221
	223	1	NVIDIA Corp.		6,835
	64	1	Varian Semiconductor Equipment Associates, Inc.		2,634
			TOTAL		17,690
			Software--3.3%
	274	1	Autodesk, Inc.		11,979
	747	1	Electronic Arts, Inc.		37,350
	54		FactSet Research Systems		3,136
			TOTAL		52,465
			Specialty Retail--1.5%
	158	1	CarMax, Inc.		9,074
	56	1	Guess ?, Inc.		4,038
	442		Staples, Inc.		11,368
			TOTAL		24,480
			Textiles, Apparel & Luxury Goods--2.6%
	703	1	Coach, Inc.		32,240
	107		Polo Ralph Lauren Corp., Class A		8,779
			TOTAL		41,019
			TOTAL COMMON STOCKS		1,640,570
			TOTAL INVESTMENTS--103.7% (IDENTIFIED COST $1,555,848) 2		1,640,570
			OTHER ASSETS AND LIABILITIES - NET--(3.7)%		(58,632	)
			TOTAL NET ASSETS--100%	$	1,581,938

1 Non-income producing security.

2 Also represents cost for federal tax purposes.

Note: The categories of investments are shown as a percentage of net assets at January 31, 2007.

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

January 31, 2007 (unaudited)

Assets:
Total investments in securities, at value (identified cost $1,555,848)			$	1,640,570
Cash				18,072
Income receivable				249
Receivable for investments sold				95,940
TOTAL ASSETS				1,754,831
Liabilities:
Payable for investments purchased	$	95,334
Payable for administrative personnel and services fee (Note 5)		31,822
Payable for transfer and dividend disbursing agent fees and expenses		20,423
Payable for Directors'/Trustees' fees		1,048
Payable for audit fees		20,935
Payable for distribution services fee (Note 5)		1,360
Payable for shareholder services fee (Note 5)		289
Accrued expenses		1,682
TOTAL LIABILITIES				172,893
Net assets for 139,741 shares outstanding			$	1,581,938
Net Assets Consist of:
Paid-in capital			$	1,479,017
Net unrealized appreciation of investments				84,722
Accumulated net realized gain on investments				20,449
Accumulated net investment income (loss)				(2,250	)
TOTAL NET ASSETS			$	1,581,938
Net Asset Value, Offering Price and Redemption Proceeds per Share:
Institutional Shares:
Net asset value per share ($775,153 ÷ 68,208 shares outstanding), no par value, unlimited shares authorized				$11.36
Offering price per share				$11.36
Redemption proceeds per share				$11.36
Class A Shares:
Net asset value per share ($578,232 ÷ 51,107 shares outstanding), no par value, unlimited shares authorized				$11.31
Offering price per share (100/94.50 of $11.31) 1				$11.97
Redemption proceeds per share				$11.31
Class C Shares:
Net asset value per share ($228,553 ÷ 20,426 shares outstanding), no par value, unlimited shares authorized				$11.19
Offering price per share (100/99.00 of $11.19) 1				$11.30
Redemption proceeds per share (99.00/100 of $11.19) 1				$11.08

1 See "What Do Shares Cost?" in the Prospectus.

See Notes which are an integral part of the Financial Statements

Statement of Operations

Six Months Ended January 31, 2007 (unaudited)

Investment Income:
Dividends							$	6,109
Interest								338
TOTAL INCOME								6,447
Expenses:
Investment adviser fee (Note 5)				$	4,219
Administrative personnel and services fee (Note 5)					115,946
Custodian fees					11,737
Transfer and dividend disbursing agent fees and expenses					32,955
Directors'/Trustees' fees					734
Auditing fees					7,310
Legal fees					4,538
Portfolio accounting fees					34,777
Distribution services fee--Class A Shares (Note 5)					378
Distribution services fee--Class C Shares (Note 5)					860
Shareholder services fee--Class A Shares (Note 5)					215
Shareholder services fee--Class C Shares (Note 5)					74
Share registration costs					22,519
Printing and postage					9,149
Insurance premiums					3,413
Miscellaneous					1,929
TOTAL EXPENSES					250,753
Waivers and Reimbursement:
Waiver of investment adviser fee (Note 5)	$	(4,219	)
Waiver of administrative personnel and services fee (Note 5)		(84,110	)
Waiver of transfer and dividend disbursing agent fees and expenses		(12,933	)
Waiver of portfolio accounting fees		(21,423	)
Reimbursement of other operating expenses (Note 5)		(119,371	)
TOTAL WAIVERS AND REIMBURSEMENT					(242,056	)
Net expenses								8,697
Net investment income (loss)								(2,250	)
Realized and Unrealized Gain on Investments:
Net realized gain on investments								21,561
Net change in unrealized depreciation of investments								97,770
Net realized and unrealized gain on investments								119,331
Change in net assets resulting from operations							$	117,081

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

		Six Months Ended (unaudited) 1/31/2007			Period Ended 7/31/2006	1
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	(2,250	)	$	(2,998	)
Net realized gain on investments		21,561			18,102
Net change in unrealized appreciation/depreciation on investments		97,770			(13,048	)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		117,081			2,056
Distributions to Shareholders:
Distributions from net realized gain on investments
Institutional Shares		(7,447	)		- --
Class A Shares		(6,679	)		- --
Class C Shares		(2,090	)		- --
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS		(16,216	)		- --
Share Transactions:
Proceeds from sale of shares		1,041,143			765,410
Net asset value of shares issued to shareholders in payment of distributions declared		12,438			- --
Cost of shares redeemed		(207,287	)		(132,687	)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		846,294			632,723
Change in net assets		947,159			634,779
Net Assets:
Beginning of period		634,779			- --
End of period (including accumulated net investment income (loss) of $(2,250) and $0, respectively)	$	1,581,938		$	634,779

1 Reflects operations for the period from September 15, 2005 (date of initial public investment) to July 31, 2006.

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

January 31, 2007 (unaudited)

1. ORGANIZATION

Federated MDT Series (the "Trust") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Trust consists of eight portfolios. The financial statements included herein are only those of Federated MDT Large Cap Growth Fund (the "Fund"), a diversified portfolio. The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held. The Fund offers three classes of shares: Institutional Shares, Class A Shares and Class C Shares. All shares of the Fund have equal rights with respect to voting, except on class-specific matters. The financial highlights of the Class A Shares and Class C Shares are presented separately. The primary investment objective of the Fund is long-term capital appreciation.

MDT Large Cap Growth Fund (the "Predecessor Fund") was reorganized into the Fund as of the close of business on December 8, 2006. Prior to the reorganization, the Fund had no investment operations. The Fund is the successor to the Predecessor Fund, which commenced operations on September 15, 2005.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with generally accepted accounting principles (GAAP) in the United States of America.

Investment Valuation

Market values of the Fund's portfolio securities are determined as follows:

• for equity securities, according to the last sale price or official closing price reported in the market in which they are primarily traded (either a national securities exchange or the over-the-counter market), if available;
• in the absence of recorded sales for equity securities, according to the mean between the last closing bid and asked prices;
• futures contracts and options are generally valued at market values established by the exchanges on which they are traded at the close of trading on such exchanges. Options traded in the over-the-counter market are generally valued according to the mean between the last bid and the last asked price for the option as provided by an investment dealer or other financial institution that deals in the option. The Board of Trustees (the "Trustees") may determine in good faith that another method of valuing such investments is necessary to appraise their fair market value;
• prices for total return swaps are furnished by an independent pricing service and are based upon a valuation model incorporating underlying reference indexes, interest rates, yield curves and other market data or factors. Prices for credit default swaps are furnished by an independent pricing service and are based upon a valuation model incorporating default probabilities, recovery rates and other market data or factors;
• for mortgage-backed securities, based on the aggregate investment value of the projected cash flows to be generated by the security, as furnished by an independent pricing service;
• for investments in other open-end regulated investment companies, based on net asset value (NAV);
• for other fixed-income securities, according to prices as furnished by an independent pricing service, except that fixed-income securities with remaining maturities of less than 60 days at the time of purchase are valued at amortized cost; and
• for all other securities at fair value as determined in accordance with procedures established by and under the general supervision of the Trustees.

Prices for fixed-income securities furnished by a pricing service may be based on a valuation matrix which incorporates both dealer-supplied valuations and electronic data processing techniques. Such prices (other than mortgage-backed securities) are generally intended to be indicative of the bid prices currently offered to institutional investors for the securities except that prices for corporate fixed-income and asset-backed securities traded in the United States are generally intended to be indicative of the mean between such bid prices and asked prices. The Trustees have approved the use of such pricing services. A number of pricing services are available, and the Fund may use various pricing services or discontinue the use of any pricing service.

Prices provided by independent pricing services may be determined without relying exclusively on quoted prices and may consider institutional trading in similar groups of securities, yield, quality, stability, risk, coupon rate, maturity, type of issue, trading characteristics, and other market data or factors. From time to time, when prices cannot be obtained from an independent pricing service, securities may be valued based on quotes from broker-dealers or other financial institutions that trade the securities.

Trading in foreign securities may be completed at times which vary from the closing of the New York Stock Exchange (NYSE). In computing its NAV, the Fund values foreign securities using the latest closing price on the exchange on which they are traded immediately prior to the closing of the NYSE. Certain foreign currency exchange rates are generally determined at the latest rate prior to the closing of the NYSE. Foreign securities quoted in foreign currencies are translated into U.S. dollars at current rates. Events that affect these values and exchange rates may occur between the times at which they are determined and the closing of the NYSE. If such events materially affect the value of portfolio securities, these securities may be valued at their fair value as determined in good faith by the Trustees, although the actual calculation may be done by others.

Repurchase Agreements

It is the policy of the Fund to require the other party to a repurchase agreement to transfer to the Fund's custodian or sub-custodian eligible securities or cash with a market value (after transaction costs) at least equal to the repurchase price to be paid under the repurchase agreement. The eligible securities are transferred to accounts with the custodian or sub-custodian in which the Fund holds a "securities entitlement" and exercises "control" as those terms are defined in the Uniform Commercial Code. The Fund has established procedures for monitoring the market value of the transferred securities and requiring the transfer of additional eligible securities if necessary to equal at least the repurchase price. These procedures also allow the other party to require securities to be transferred from the account to the extent that their market value exceeds the repurchase price or in exchange for other eligible securities of equivalent market value.

With respect to agreements to repurchase U.S. government securities and cash items, the Fund treats the repurchase agreement as an investment in the underlying securities and not as an obligation of the other party to the repurchase agreement. Other repurchase agreements are treated as obligations of the other party secured by the underlying securities. Nevertheless, the insolvency of the other party or other failure to repurchase the securities may delay the disposition of the underlying securities or cause the Fund to receive less than the full repurchase price. Under the terms of the repurchase agreement, any amounts received by the Fund in excess of the repurchase price and related transaction costs must be remitted to the other party.

The Fund may enter into repurchase agreements in which eligible securities are transferred into joint trading accounts maintained by the custodian or sub-custodian for investment companies and other clients advised by the Fund's adviser and its affiliates. The Fund will participate on a pro rata basis with the other investment companies and clients in its share of the securities transferred under such repurchase agreements and in its share of proceeds from any repurchase or other disposition of such securities.

Investment Income, Gains and Losses, Expenses and Distributions

Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Distributions of net investment income, if any, are declared and paid annually. Non-cash dividends included in dividend income, if any, are recorded at fair value. Investment income, realized and unrealized gains and losses, and certain fund-level expenses are allocated to each class based on relative average daily net assets, except that each class bears certain expenses unique to that class such as distribution and shareholder services fees. Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses.

Premium and Discount Amortization

All premiums and discounts on fixed-income securities are amortized/accreted for financial statement purposes.

Federal Taxes

It is the Fund's policy to comply with the Subchapter M provision of the Internal Revenue Code (the "Code") and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal income tax is necessary.

When-Issued and Delayed Delivery Transactions

The Fund may engage in when-issued or delayed delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated.

Other

Investment transactions are accounted for on a trade date basis. Realized gains and losses from investment transactions are recorded on an identified cost basis.

3. SHARES OF BENEFICIAL INTEREST

The following tables summarize share activity:

	Six Months Ended 1/31/2007					Period Ended 7/31/2006 1
Institutional Shares:	Shares			Amount		Shares			Amount
Shares sold	38,412		$	431,187		40,934		$	407,353
Shares issued to shareholders in payment of distributions declared	644			7,255		- --			- --
Shares redeemed	(775	)		(8,714	)	(11,007	)		(118,788	)
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS	38,281		$	429,728		29,927		$	288,565
	Six Months Ended 1/31/2007					Period Ended 7/31/2006 1
Class A Shares:	Shares			Amount		Shares			Amount
Shares sold	49,594		$	533,498		19,173		$	206,989
Shares issued to shareholders in payment of distributions declared	405			4,547		- --			- --
Shares redeemed	(16,842	)		(184,216	)	(1,223	)		(12,810	)
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS	33,157		$	353,829		17,950		$	194,179
	Six Months Ended 1/31/2007					Period Ended 7/31/2006 1
Class C Shares:	Shares			Amount		Shares			Amount
Shares sold	7,179		$	76,458		14,649		$	151,068
Shares issued to shareholders in payment of distributions declared	57			636		- --			- --
Shares redeemed	(1,359	)		(14,357	)	(100	)		(1,089	)
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS	5,877		$	62,737		14,549		$	149,979
NET CHANGE RESULTING FROM SHARE TRANSACTIONS	77,315		$	846,294		62,426		$	632,723

1 Reflects operations for the period from September 15, 2005 (date of initial public investment) to July 31, 2006.

4. FEDERAL TAX INFORMATION

At January 31, 2007, the cost of investments for federal tax purposes was $1,555,848. The net unrealized appreciation of investments for federal tax purposes was $84,722. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $98,690 and net unrealized depreciation from investments for those securities having an excess of cost over value of $13,968.

5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated MDTA LLC, the Fund's investment adviser (the "Adviser"), receives for its services an annual investment adviser fee equal to 0.75% of the Fund's average daily net assets. Under the investment advisory contract, the Adviser is contractually obligated to waive, to the extent of its adviser fee, the amount, if any, by which the Fund's annual operating expenses exceed the following levels for each Class of the Fund:

Class	Percentage of Average Daily Net Assets of Class
Institutional Shares	1.80%
Class A Shares	2.05%
Class C Shares	2.80%

The Adviser has agreed to keep these contractual limitations in place through December 8, 2008.

In addition, after fulfilling its contractual commitment, the Adviser may voluntarily choose to waive and/or reimburse any additional portion of its fee. The Adviser can modify or terminate this voluntary waiver and/or reimbursement at any time at its sole discretion. For the six months ended January 31, 2007, the Adviser waived $4,219 of its fee and reimbursed $119,371 of other operating expenses.

For a period of three years after the fiscal year in which the Adviser waived or reimbursed Fund expenses, the Adviser may seek reimbursement from the Fund to the extent that the Fund's total annual operating expenses are less than the expense limitation. Due to the reorganization of the Fund, any expenses waived or reimbursed by the Adviser after December 8, 2006 may not be recovered by the Adviser.

Expenses waived/reimbursed by the Fund of $66,741 are subject to potential recovery by the expiration date of July 31, 2009.

Administrative Fee

Federated Administrative Services (FAS), under the Administrative Services Agreement (the "Agreement"), provides the Fund with administrative personnel and services. The fee paid to FAS is based on the average aggregate daily net assets of certain Federated funds as specified below:

Administrative Fee	Average Aggregate Daily Net Assets of the Federated Funds
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

The administrative fee received during any fiscal year shall be at least $150,000 per portfolio and $40,000 per each additional class of Shares. During the period from July 15, 2006 through December 8, 2006, the administrator contractually agreed to waive the portion of its fee which it would otherwise be entitled to receive from the Fund under the Agreement. The level of fees payable by the Fund to FAS for the period will not exceed the level of fees which the Fund would have paid during the period to its previous service provider under its previous administrative services contract. In addition, FAS may voluntarily choose to waive any portion of its fee. FAS can modify or terminate this voluntary waiver at any time at its sole discretion. For the six months ended January 31, 2007, the net fee paid to FAS was 5.656% of average aggregate daily net assets of the Fund.

Distribution Services Fee

The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will compensate Federated Securities Corp. (FSC), the principal distributor, from the daily net assets of the Fund's Class A Shares and Class C Shares to finance activities intended to result in the sale of these shares. The Plan provides that the Fund may incur distribution expenses according to the following schedule annually, to compensate FSC:

Class	Percentage of Average Daily Net Assets of Class
Class A Shares	0.25%
Class C Shares	0.75%

Prior to December 11, 2006, the Fund incurred distribution expenses according to the following schedule annually, to compensate FSC:

Class	Percentage of Average Daily Net Assets of Class
Class A Shares	0.25%
Class C Shares	1.00%

FSC may voluntarily choose to waive any portion of its fee. FSC can modify or terminate this voluntary waiver at any time at its sole discretion. When FSC receives fees, it may pay some or all of them to financial intermediaries whose customers purchase shares. For the six months ended January 31, 2007, FSC retained $566 of fees paid by the Fund.

Sales Charges

For the six months ended January 31, 2007, FSC, the principal distributor, retained $145 in sales charges from the sale of Class A Shares. See "What Do Shares Cost?" in the Prospectus.

Shareholder Services Fee

Effective December 11, 2006, the Fund may pay fees (Service Fees) up to 0.25% of the average daily net assets of the Fund's Class A Shares and Class C Shares to financial intermediaries or to Federated Shareholder Services Company (FSSC) for providing services to shareholders and maintaining shareholder accounts. FSSC or these financial intermediaries may voluntarily choose to waive a portion of their fee. In addition, FSSC may voluntarily reimburse the Fund for shareholder services fees. This voluntary waiver and/or reimbursement can be modified or terminated at any time. For the six months ended January 31, 2007, FSSC did not receive any fees paid by the Fund.

General

Certain of the Officers and Trustees of the Trust are Officers and Directors or Trustees of the above companies.

6. INVESTMENT TRANSACTIONS

Purchases and sales of investments, excluding long-term U.S. government securities and short-term obligations, for the six months ended January 31, 2007, were as follows:

Purchases	$	2,325,944
Sales	$	1,449,065

7. LINE OF CREDIT

The Trust entered into a $150,000,000 unsecured, uncommitted revolving line of credit (LOC) agreement with PNC Bank. The LOC was made available for extraordinary or emergency purposes, primarily for financing redemption payments. Borrowings are charged interest at a rate of 0.65% over the federal funds rate. As of January 31, 2007, there were no outstanding loans. During the six months ended January 31, 2007, the Fund did not utilize the LOC.

8. LEGAL PROCEEDINGS

Beginning in October 2003, Federated Investors, Inc. and various subsidiaries thereof (including the advisers and distributor for various investment companies, collectively, "Federated"), along with various investment companies sponsored by Federated ("Funds") were named as defendants in several class action lawsuits now pending in the United States District Court for the District of Maryland. The lawsuits were purportedly filed on behalf of people who purchased, owned and/or redeemed shares of Federated-sponsored mutual funds during specified periods beginning November 1, 1998. The suits are generally similar in alleging that Federated engaged in illegal and improper trading practices including market timing and late trading in concert with certain institutional traders, which allegedly caused financial injury to the mutual fund shareholders. These lawsuits began to be filed shortly after Federated's first public announcement that it had received requests for information on shareholder trading activities in the Funds from the Securities and Exchange Commission ("SEC"), the Office of the New York State Attorney General ("NYAG"), and other authorities. In that regard, on November 28, 2005, Federated announced that it had reached final settlements with the SEC and the NYAG with respect to those matters. As Federated previously reported in 2004, it has already paid approximately $8.0 million to certain funds as determined by an independent consultant. As part of these settlements, Federated agreed to pay for the benefit of fund shareholders additional disgorgement and a civil money penalty in the aggregate amount of an additional $72 million. Federated and various Funds have also been named as defendants in several additional lawsuits, the majority of which are now pending in the United States District Court for the Western District of Pennsylvania, alleging, among other things, excessive advisory and Rule 12b-1 fees. The Board of the Funds has retained the law firm of Dickstein Shapiro LLP to represent the Funds in these lawsuits. Federated and the Funds, and their respective counsel, are reviewing the allegations and intend to defend this litigation. Additional lawsuits based upon similar allegations may be filed in the future. The potential impact of these lawsuits, all of which seek unquantified damages, attorneys' fees and expenses, and future potential similar suits is uncertain. Although we do not believe that these lawsuits will have a material adverse effect on the Funds, there can be no assurance that these suits, the ongoing adverse publicity and/or other developments resulting from the regulatory investigations will not result in increased Fund redemptions, reduced sales of Fund shares, or other adverse consequences for the Funds.

9. RECENT ACCOUNTING PRONOUNCEMENTS

In July 2006, the Financial Accounting Standards Board (FASB) released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" (FIN 48). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax benefits of positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax expense in the current year. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years of the Fund no later than January 30, 2008. At this time, management is evaluating the implications of FIN 48 and its impact in the financial statements has not yet been determined.

In addition, in September 2006, FASB released Statement on Financial Accounting Standards No. 157, "Fair Value Measurements" (FAS 157) which is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of FAS 157 will have on the Funds' financial statement disclosures.

Evaluation and Approval of Advisory Contract

FEDERATED MDT LARGE CAP GROWTH FUND (THE "FUND")

The Fund's Board reviewed the Fund's investment advisory contract at meetings held in May and June 2006. The Board's decision to approve the contract reflects the exercise of its business judgment on whether to authorize the creation and offering of this new investment vehicle, as proposed by, and based on information provided by, the Federated organization, and based on Federated's recommendation to go forward with establishment of the Fund.

Federated proposed the creation of the Fund in connection with its acquisition of MDTA LLC (the "Acquisition"), the investment adviser to the MDT Large Cap Growth Fund (the "Predecessor Fund"). As part of that transaction, Federated proposed that the Predecessor Fund be reorganized with and into the Fund in a tax-free reorganization (the "Proposed Reorganization"), which would provide shareholders of the Predecessor Fund the opportunity to become shareholders of a fund with substantially similar investment objectives and policies and the same portfolio manager(s) as the Predecessor Fund, but with sales, distribution and other shareholder services offered by the funds managed and distributed by affiliates of Federated.

Prior to the meeting, the Adviser had recommended that the Federated Funds appoint a Senior Officer, whose duties include specified responsibilities relating to the process by which advisory fees are to be charged to a Federated Fund. The Senior Officer appointed by the Funds has the authority to retain consultants, experts, or staff as may be reasonably necessary to assist in the performance of his duties, reports directly to the Board, and may be terminated only with the approval of a majority of the independent members of the Board. The Senior Officer prepared and furnished to the Board an independent written evaluation that covered topics discussed below, which the Board considered, along with other information, in deciding to approve the advisory contract.

The Board also considered the anticipated compensation and benefits to be received by the Adviser. This includes fees to be received for services provided to the Fund by other entities in the Federated organization and research services that may be received by the Adviser from brokers that execute fund trades, as well as advisory fees. The Board is also familiar with judicial decisions concerning allegedly excessive investment advisory fees which have indicated that the following factors may be relevant to an Adviser's fiduciary duty with respect to its receipt of compensation from a fund: the nature and quality of the services provided by the Adviser, including the performance of the Fund; the Adviser's cost of providing the services; the extent to which the Adviser may realize "economies of scale" as the Fund grows larger; any indirect benefits that may accrue to the Adviser and its affiliates as a result of the Adviser's relationship with the Fund; performance and expenses of comparable funds; and the extent to which the independent Board members are fully informed about all facts the Board deems relevant bearing on the Adviser's services and fees. The Board further considered management fees (including any components thereof) charged to institutional and other clients of the Adviser for like services and costs to the Adviser and its affiliates of supplying services pursuant to the management fee agreements, excluding any intra-corporate profit and profit margins of the Adviser and its affiliates from supplying such services. The Board was aware of these considerations and was guided by them in its review of the Fund's advisory contract to the extent they are appropriate and relevant, as discussed further below.

The Board considered and weighed these circumstances in light of its substantial accumulated experience in working with Federated on matters relating to other Federated funds, and was assisted in its deliberations by the advice of independent legal counsel. The Board's consideration of the advisory contract included review of the Senior Officer's evaluation, accompanying data and additional reports covering such matters as: the Adviser's investment philosophy, revenue, profitability, personnel and processes; investment and operating strategies; the Fund's investment objectives; the Fund's expenses (including the advisory fee itself and the overall expense structure of the Fund, both in absolute terms and relative to similar and/or competing funds, with due regard for contractual or voluntary expense limitations); the nature, quality and extent of the advisory and other services to be provided to the Fund by the Adviser and its affiliates; the preferences and expectations of Fund shareholders and their relative sophistication; the continuing state of competition in the mutual fund industry and market practices; the range of comparable fees for similar funds in the mutual fund industry; the Fund's relationship to the Federated family of funds which include a comprehensive array of funds with different investment objectives, policies and strategies which are available for exchange without the incurrence of additional sales charges; compliance and audit reports concerning the Federated funds and the Federated companies that service them (including communications from regulatory agencies), as well as Federated's responses to any issues raised therein; and relevant developments in the mutual fund industry and how the Federated funds and/or Federated are responding to them. The Board's evaluation process is evolutionary. The criteria considered and the emphasis placed on relevant criteria change in recognition of changing circumstances in the mutual fund marketplace.

With respect to the Fund's expenses in particular, the Board has found the use of comparisons to other mutual funds with comparable investment programs to be particularly useful, given the high degree of competition in the mutual fund business. The Board focused on comparisons with other similar mutual funds more heavily than non-mutual fund products or services because, simply put, they are more relevant. For example, other mutual funds are the products most like the Fund, they are readily available to Fund shareholders as alternative investment vehicles, and they are the type of investment vehicle in fact chosen and maintained by the Fund's anticipated investors. The range of their fees and expenses therefore appears to be a generally reliable indication of what consumers have found to be reasonable in the precise marketplace in which the Fund will compete. In this regard, the Senior Officer also reviewed Federated's fees for providing advisory services to products outside the Federated family of funds (e.g., institutional and separate accounts). He concluded that mutual funds and institutional accounts are inherently different products. Those differences included, but are not limited to targeting different investors, being subject to different laws and regulations, different legal structure, distribution costs, average account size and portfolio management techniques made necessary by different cash flows. The Senior Officer did not consider these fee schedules to be significant in determining the appropriateness of mutual fund advisory contracts.

The Senior Officer reviewed reports compiled by Federated and directed the preparation of reports regarding the performance of, and fees charged by other mutual funds, noting his view that comparisons to fund peer groups is of significance in judging the reasonableness of proposed fees.

Because the Fund will employ the same portfolio managers and investment techniques, the Board reviewed the Predecessor Fund's performance compared to its benchmark as an indicator of how the Adviser will execute the Fund's investment program, which in turn assisted the Board in reaching a conclusion that the nature, extent, and quality of the Adviser's investment management services were such as to warrant approval of the advisory contract. The Board noted that the Predecessor Fund and/or accounts managed by MDTA LLC with substantially similar investment objectives and policies outperformed its relevant benchmark for the one-year period reviewed. The Board determined that reviewing performance on a gross basis was appropriate in this instance because the fee structure for separately managed accounts is not comparable for the Fund as discussed above.

The Senior Officer noted that the Fund's quantitative focus made it difficult to compare its fees and expenses to other peers, which varied widely in their complexity. He observed that the management of the Fund is among the more complex, relative to its peers and, consequently, that the advisory fee and projected net total expenses are at the high end compared to such peers. The Board reviewed the proposed fees and other expenses of the Fund with the Adviser and was satisfied that the proposed overall expense structure of the Fund appeared competitive. The Board will continue to monitor advisory fees and other expenses borne by the Fund. No changes were recommended to, and no objection was raised to the proposed advisory contract, and the Senior Officer noted that Federated proposed to provide appropriate administrative services to the Fund for the anticipated fees. The Board concluded that the nature, quality and scope of services to be provided to the Fund by the Adviser and its affiliates were satisfactory.

The Board also considered possible indirect benefits that may accrue to the Adviser and its affiliates as a result of the Acquisition. Other indirect benefits that may accrue to the Adviser and its affiliates as a result of the Adviser's relationship with the Fund are essentially impossible to apply before the Fund has experienced any meaningful operating history. Nevertheless, in connection with the Board's governance of other Federated funds, it should be noted that the Board regularly receives financial information about Federated, including reports on the compensation and benefits Federated derives from its relationships with the other Federated funds. These reports cover not only the fees under the advisory contracts, but also fees received by Federated's subsidiaries for providing other services to the Federated funds under separate contracts (e.g., for serving as the Federated funds' administrator). The reports also discuss any indirect benefit Federated may derive from its receipt of research services from brokers who execute Federated fund trades, as well as waivers of fees and/or reimbursements of expenses. In order for a fund to be competitive in the marketplace, Federated and its affiliates frequently waive fees and/or reimburse expenses and have indicated to the Board their intention to do so in the future, where appropriate. It was noted in this regard that the Adviser has agreed to limit the expenses of each class of the Fund at specified amounts for a two-year period commencing on the date the Proposed Reorganization is consummated.

Federated furnished reports, requested by the Senior Officer, that made estimates of the allocation of expenses on a fund by fund basis, using allocation methodologies specified by the Senior Officer. The Senior Officer noted that, although they may apply consistent allocation processes, the inherent difficulties in allocating costs and the lack of consensus on how to allocate those costs causes such allocation reports to be of questionable value. The allocation reports were considered in the analysis by the Board but were determined to be of limited use.

The Board also reviewed profitability information for Federated and other publicly held fund management companies, provided by the Senior Officer, who noted the limited availability of such information, and concluded that Federated's profit margins did not appear to be excessive.

The Senior Officer's evaluation also discussed the notion of possible realization of "economies of scale" as a fund grows larger. The Board considered in this regard that the Adviser has made significant additional investments in the portfolio management and distribution efforts supporting all of the Federated funds and that the benefits of any economies, should they exist, were likely to be enjoyed by the fund complex as a whole. Finally, the Board also noted the absence of any applicable regulatory or industry guidelines on this subject, which is compounded by the lack of any common industry practice or general pattern with respect to structuring fund advisory fees with "breakpoints" that serve to reduce the fee as the fund attains a certain size. The Senior Officer did not recommend institution of breakpoints in pricing Federated's fund advisory services at this time.

The Board based its decision to approve the advisory contract on the totality of the circumstances and relevant factors, and with a view to past and future long-term considerations. As noted, not all of the factors and considerations identified above were relevant to the Fund, nor does the Board consider any one of them to be determinative. With respect to the factors that are relevant, the Board's decision to approve the contract reflects its determination that, based upon the information requested and supplied, Federated's proposal to establish and manage the Fund, and its past performance and actions in providing services to other mutual funds, provide a satisfactory basis to support the business decision to approve the proposed arrangements.

Voting Proxies on Fund Portfolio Securities

A description of the policies and procedures that the Fund uses to determine how to vote proxies, if any, relating to securities held in the Fund's portfolio is available, without charge and upon request, by calling 1-800-341-7400. A report on "Form N-PX" of how the Fund voted any such proxies during the most recent 12-month period ended June 30 is available through Federated's website. Go to FederatedInvestors.com, select "Products," select the "Prospectuses and Regulatory Reports" link, then select the Fund to access the link to Form N-PX. This information is also available from the EDGAR database on the SEC's website at www.sec.gov.

Quarterly Portfolio Schedule

The Fund files with the SEC a complete schedule of its portfolio holdings, as of the close of the first and third quarters of its fiscal year, on "Form N-Q." These filings are available on the SEC's website at www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. (Call 1-800-SEC-0330 for information on the operation of the Public Reference Room.) You may also access this information from the "Products" section of the Federated Investors website at FederatedInvestors.com by clicking on "Portfolio Holdings" and selecting the name of the Fund, or by selecting the name of the Fund and clicking on "Portfolio Holdings." You must register on the website the first time you wish to access this information.

Mutual funds are not bank deposits or obligations, are not guaranteed by any bank, and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other government agency. Investment in mutual funds involves investment risk, including the possible loss of principal.

This report is authorized for distribution to prospective investors only when preceded or accompanied by the Fund's prospectus, which contains facts concerning its objective and policies, management fees, expenses, and other information.

IMPORTANT NOTICE ABOUT FUND DOCUMENT DELIVERY

In an effort to reduce costs and avoid duplicate mailings, the Fund(s) intend to deliver a single copy of certain documents to each household in which more than one shareholder of the Fund(s) resides (so-called "householding"), as permitted by applicable rules. The Fund's "householding" program covers its/their Prospectus and Statement of Additional Information, and supplements to each, as well as Semi-Annual and Annual Shareholder Reports and any Proxies or information statements. Shareholders must give their written consent to participate in the "householding" program. The Fund is also permitted to treat a shareholder as having given consent ("implied consent") if (i) shareholders with the same last name, or believed to be members of the same family, reside at the same street address or receive mail at the same post office box, (ii) the Fund gives notice of its intent to "household" at least sixty (60) days before it begins "householding" and (iii) none of the shareholders in the household have notified the Fund(s) or their agent of the desire to "opt out" of "householding." Shareholders who have granted written consent, or have been deemed to have granted implied consent, can revoke that consent and opt out of "householding" at any time: shareholders who purchased shares through an intermediary should contact their representative; other shareholders may call the Fund at 1-800-341-7400.

Federated Securities Corp., Distributor

Cusip 31421R882

36356 (3/07)

Federated is a registered mark of Federated Investors, Inc. 2007 (c)Federated Investors, Inc.

Federated
World-Class Investment Manager

Federated MDT Mid Cap Growth Fund

A Portfolio of Federated MDT Series

SEMI-ANNUAL SHAREHOLDER REPORT

January 31, 2007

Class A Shares
Class C Shares

FINANCIAL HIGHLIGHTS
SHAREHOLDER EXPENSE EXAMPLE
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
PORTFOLIO OF INVESTMENTS
STATEMENT OF ASSETS AND LIABILITIES
STATEMENT OF OPERATIONS
STATEMENT OF CHANGES IN NET ASSETS
NOTES TO FINANCIAL STATEMENTS
EVALUATION AND APPROVAL OF ADVISORY CONTRACT
VOTING PROXIES ON FUND PORTFOLIO SECURITIES
QUARTERLY PORTFOLIO SCHEDULE

Not FDIC Insured * May Lose Value * No Bank Guarantee

Financial Highlights - Class A Shares

(For a Share Outstanding Throughout Each Period)

	Six Months Ended (unaudited) 1/31/2007	1	Period Ended 7/31/2006	2
Net Asset Value, Beginning of Period	$10.67		$10.00
Income From Investment Operations:
Net investment income (loss)	(0.03	) 3	(0.09	) 3
Net realized and unrealized gain on investments	1.54		0.76
TOTAL FROM INVESTMENT OPERATIONS	1.51		0.67
Less Distributions:
Distributions from net realized gain on investments	(0.32	)	- --
Net Asset Value, End of Period	$11.86		$10.67
Total Return 4	14.21	%	6.70	%
Ratios to Average Net Assets:
Net expenses	1.52	% 5	2.02	% 5
Net investment income (loss)	(0.55	)% 5	(0.92	)% 5
Expense waiver/reimbursement 6	98.72	% 5	27.33	% 5
Supplemental Data:
Net assets, end of period (000 omitted)	$267		$104
Portfolio turnover	86	%	201	%

1 MDT Mid Cap Growth Fund (the "Predecessor Fund") was reorganized into Federated MDT Mid Cap Growth Fund (the "Fund"), as of the close of business on December 8, 2006. Prior to the reorganization, the Fund had no investment operations. The Fund is the successor to the Predecessor Fund. The performance information and financial information presented incorporates the operations of the Predecessor Fund, which, as a result of the reorganization, are the Fund's operations.

2 Reflects operations for the period from September 15, 2005 (date of initial public investment) to July 31, 2006.

3 Per share numbers have been calculated using the average shares method.

4 Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. Total returns for periods of less than one year are not annualized.

5 Computed on an annualized basis.

6 This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above.

See Notes which are an integral part of the Financial Statements

Financial Highlights - Class C Shares

(For a Share Outstanding Throughout Each Period)

	Six Months Ended (unaudited) 1/31/2007	1	Period Ended 7/31/2006	2
Net Asset Value, Beginning of Period	$10.60		$10.00
Income From Investment Operations:
Net investment income (loss)	(0.07	) 3	(0.17	) 3
Net realized and unrealized gain on investments	1.53		0.77
TOTAL FROM INVESTMENT OPERATIONS	1.46		0.60
Less Distributions:
Distributions from net realized gain on investments	(0.32	)	- --
Net Asset Value, End of Period	$11.74		$10.60
Total Return 4	13.83	%	6.00	%
Ratios to Average Net Assets:
Net expenses	2.28	% 5	2.77	% 5
Net investment income (loss)	(1.34	)% 5	(1.67	)% 5
Expense waiver/reimbursement 6	98.32	% 5	27.33	% 5
Supplemental Data:
Net assets, end of period (000 omitted)	$30		$6
Portfolio turnover	86	%	201	%

1 The Predecessor Fund was reorganized into the Fund as of the close of business on December 8, 2006. Prior to the reorganization, the Fund had no investment operations. The Fund is the successor to the Predecessor Fund. The performance information and financial information presented incorporates the operations of the Predecessor Fund, which, as a result of the reorganization, are the Fund's operations.

2 Reflects operations for the period from September 15, 2005 (date of initial public investment) to July 31, 2006.

3 Per share numbers have been calculated using the average shares method.

4 Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. Total returns for periods of less than one year are not annualized.

5 Computed on an annualized basis.

6 This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above.

See Notes which are an integral part of the Financial Statements

Shareholder Expense Example

As a shareholder of the Fund, you incur two types of cost: (1) transaction costs, including sales charges (loads) on purchase or redemption payments; and (2) ongoing costs, including management fees; to the extent applicable, distribution (12b-1) fees and/or shareholder services fees and other Fund expenses. This Example is intended to help you to understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. It is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from August 1, 2006 to January 31, 2007.

ACTUAL EXPENSES

The first section of the table below provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you incurred over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled "Expenses Paid During Period" to estimate the expenses attributable to your investment during this period.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

The second section of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. Thus, you should not use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are required to be provided to enable you to compare the ongoing costs of investing in the Fund with other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase or redemption payments. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.

	Beginning Account Value 8/1/2006	Ending Account Value 1/31/2007	Expenses Paid During Period 1
Actual:
Class A Shares	$1,000	$1,142.10	$ 8.21
Class C Shares	$1,000	$1,138.30	$12.29
Hypothetical (assuming a 5% return before expenses):
Class A Shares	$1,000	$ 1,107.54	$ 7.73
Class C Shares	$1,000	$1,013.71	$11.57

1 Expenses are equal to the Fund's annualized net expense ratios, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). The annualized net expense ratios are as follows:

Class A Shares	1.52%
Class C Shares	2.28%

Portfolio of Investments Summary Table

At January 31, 2007, the Fund's industry composition ¹ was as follows:

Industry	Percentage of Total Net Assets
Health Care Providers & Services	11.7	%
Aerospace & Defense	9.8	%
Specialty Retail	8.4	%
Industrial Conglomerates	7.5	%
IT Services	5.8	%
Machinery	5.3	%
Pharmaceuticals	4.7	%
Containers & Packaging	4.3	%
Software	3.8	%
Semiconductors & Semiconductor Equipment	3.7	%
Electronic Equipment & Instruments	3.6	%
Biotechnology	3.4	%
Metals & Mining	3.2	%
Textiles, Apparel & Luxury Goods	3.2	%
Life Sciences Tools & Services	3.0	%
Communications Equipment	2.5	%
Health Care Equipment & Supplies	2.3	%
Auto Components	2.2	%
Capital Markets	2.2	%
Electrical Equipment	2.2	%
Multiline Retail	2.2	%
Airlines	1.9	%
Hotels, Restaurants & Leisure	1.9	%
Chemicals	1.5	%
Automobiles	1.3	%
Commercial Services & Supplies	1.3	%
Energy Equipment & Services	1.1	%
Internet & Catalog Retail	1.1	%
Other 2	2.8	%
Other Assets and Liabilities--Net 3	(7.9	)%
TOTAL	100.0	%

1 Except for Other Assets and Liabilities, industry classifications are based upon, and individual securities are assigned to, the classifications of the Global Industry Classification Standard (GICS) except that the adviser assigns a classification to securities not classified by the GICS and to securities for which the adviser does not have access to the classification made by the GICS.

2 For purposes of this table, industry classifications which constitute less than 1.0% of the Fund's total net assets have been aggregated under the designation "Other."

3 Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities.

Portfolio of Investments

January 31, 2007 (unaudited)

Shares					Value
			COMMON STOCKS--107.9%
			Aerospace & Defense--9.8%
	70	1	Alliant Techsystems, Inc.	$	5,670
	313		Goodrich (B.F.) Co.		15,343
	380		Precision Castparts Corp.		33,778
	111		Rockwell Collins		7,571
			TOTAL		62,362
			Airlines--1.9%
	292	1	Continental Airlines, Inc., Class B		12,115
			Auto Components--2.2%
	561	1	Goodyear Tire & Rubber Co.		13,851
			Automobiles--1.3%
	122		Harley Davidson, Inc.		8,329
			Biotechnology--3.4%
	230	1	Cephalon, Inc.		16,654
	264	1	PDL BioPharma, Inc.		5,415
			TOTAL		22,069
			Building Products--0.7%
	140		Lennox International, Inc.		4,248
			Capital Markets--2.2%
	122	1	Affiliated Managers Group		13,591
	17	1	TD Ameritrade Holding Corp.		301
			TOTAL		13,892
			Chemicals--1.5%
	54		Celanese Corp.		1,417
	374	1	Nalco Holding Co.		8,598
			TOTAL		10,015
			Commercial Services & Supplies--1.3%
	30		Manpower, Inc.		2,188
	148		Miller Herman, Inc.		5,565
	7		Republic Services, Inc.		303
			TOTAL		8,056
Shares					Value
			COMMON STOCKS--continued
			Communications Equipment--2.5%
	315		Harris Corp.	$	16,008
			Computers & Peripherals--0.4%
	44	1	Lexmark International Group, Class A		2,773
			Construction & Engineering--0.3%
	20		Jacobs Engineering Group, Inc.		1,811
			Consumer Finance--0.3%
	34	1	First Marblehead Corp.		1,849
			Containers & Packaging--4.3%
	259		Ball Corp.		11,997
	469	1	Pactiv Corp.		15,214
			TOTAL		27,211
			Diversified Telecommunication Services--0.1%
	7		Embarq Corp.		388
			Electrical Equipment--2.2%
	276		AMETEK, Inc.		9,566
	84		Roper Industries, Inc.		4,361
			TOTAL		13,927
			Electronic Equipment & Instruments--3.6%
	341		Amphenol Corp., Class A		23,092
	2	1	Anixter International, Inc.		110
			TOTAL		23,202
			Energy Equipment & Services--1.1%
	35	1	Cameron International Corp.		1,837
	50		ENSCO International, Inc.		2,543
	23	1	National-Oilwell, Inc.		1,395
	7	1	Seacor Holdings, Inc.		709
	14		Tidewater, Inc.		722
			TOTAL		7,206
			Health Care Equipment & Supplies--2.3%
	54		Becton, Dickinson & Co.		4,155
	167		Hillenbrand Industries, Inc.		9,521
	27	1	Kinetic Concepts, Inc.		1,328
			TOTAL		15,004
Shares					Value
			COMMON STOCKS--continued
			Health Care Providers & Services--11.7%
	467	1	Coventry Health Care, Inc.	$	24,074
	72	1	DaVita, Inc.		3,931
	8	1	Health Net, Inc.		390
	50	1	Humana, Inc.		2,775
	470	1	Laboratory Corp. of America Holdings		34,517
	100	1	Pediatrix Medical Group		5,254
	47	1	Wellcare Health Plans, Inc.		3,642
			TOTAL		74,583
			Hotels, Restaurants & Leisure--1.9%
	9		Brinker International, Inc.		284
	93	1	Burger King Holdings, Inc.		1,931
	70	1	Wynn Resorts Ltd.		7,822
	32		Yum! Brands, Inc.		1,920
			TOTAL		11,957
			Household Durables--0.4%
	111		Tempur-Pedic International, Inc.		2,642
			Household Products--0.1%
	6	1	Energizer Holdings, Inc.		511
			IT Services--5.8%
	316	1	Alliance Data Systems Corp.		21,466
	75	1	Cognizant Technology Solutions Corp.		6,397
	273	1	Gartner Group, Inc., Class A		5,968
	83		Global Payments, Inc.		3,134
			TOTAL		36,965
			Independent Power Producers & Energy Traders--0.3%
	90	1	AES Corp.		1,871
			Industrial Conglomerates--7.5%
	419	1	McDermott International, Inc.		21,637
	280		Textron Inc.		26,088
			TOTAL		47,725
			Internet & Catalog Retail--1.1%
	31	1	Amazon.com, Inc.		1,168
	129	1	Nutri/System, Inc.		5,682
			TOTAL		6,850
Shares					Value
			COMMON STOCKS--continued
			Leisure Equipment & Products--0.1%
	17		Polaris Industries, Inc., Class A	$	795
			Life Sciences Tools & Services--3.0%
	338	1	Waters Corp.		19,161
			Machinery--5.3%
	176	1	Gardner Denver, Inc.		6,785
	5		Harsco Corp.		429
	35		IDEX Corp.		1,816
	31		Joy Global, Inc.		1,441
	239		Manitowoc, Inc.		12,394
	95		PACCAR, Inc.		6,353
	92		Toro Co.		4,717
			TOTAL		33,935
			Media--0.0%
	7		E.W. Scripps Co., Class A		342
			Metals & Mining--3.2%
	136		Allegheny Technologies, Inc.		14,075
	104	1	Southern Copper Corp.		6,500
			TOTAL		20,575
			Multiline Retail--2.2%
	74		Nordstrom, Inc.		4,123
	124		Penney (J.C.) Co., Inc.		10,074
			TOTAL		14,197
			Pharmaceuticals--4.7%
	84	1	Forest Laboratories, Inc., Class A		4,713
	444	1	Sepracor, Inc.		25,335
			TOTAL		30,048
			Semiconductors & Semiconductor Equipment--3.7%
	29		KLA-Tencor Corp.		1,428
	13	1	Lam Research Corp.		596
	395	1	MEMC Electronic Materials, Inc.		20,698
	26	1	NVIDIA Corp.		797
			TOTAL		23,519
Shares					Value
			COMMON STOCKS--continued
			Software--3.8%
	54	1	Autodesk, Inc.	$	2,361
	119	1	Electronic Arts, Inc.		5,950
	124		FactSet Research Systems		7,202
	221		Fair Isaac & Co., Inc.		8,800
			TOTAL		24,313
			Specialty Retail--8.4%
	37		Abercrombie & Fitch Co., Class A		2,943
	72		American Eagle Outfitters, Inc.		2,331
	230	1	AutoZone, Inc.		28,895
	17	1	CarMax, Inc.		976
	24	1	Guess ?, Inc.		1,731
	356		Limited Brands		9,947
	24	1	Office Depot, Inc.		897
	86		Sherwin-Williams Co.		5,943
			TOTAL		53,663
			Textiles, Apparel & Luxury Goods--3.2%
	403	1	Coach, Inc.		18,482
	22		Polo Ralph Lauren Corp., Class A		1,805
			TOTAL		20,287
			Trading Companies & Distributors--0.1%
	9		Grainger (W.W.), Inc.		699
			TOTAL COMMON STOCKS		688,954
			TOTAL INVESTMENTS--107.9% (IDENTIFIED COST $623,511) 2		688,954
			OTHER ASSETS AND LIABILITIES - NET--(7.9)%		(50,709	)
			TOTAL NET ASSETS--100%	$	638,245

1 Non-income producing security.

2 Also represents cost for federal tax purposes.

Note: The categories of investments are shown as a percentage of total net assets at January 31, 2007.

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

January 31, 2007 (unaudited)

Assets:
Total investments in securities, at value (identified cost $623,511)			$	688,954
Cash				10,382
Income receivable				37
Receivable for investments sold				14,456
Receivable for shares sold				178
TOTAL ASSETS				714,007
Liabilities:
Payable for investments purchased	$	14,477
Payable for administrative personnel and services fee (Note 5)		31,725
Payable for transfer and dividend disbursing agent fees and expenses		20,657
Payable for Directors'/Trustees' fees		1,041
Payable for distribution services fee (Note 5)		259
Payable for shareholder services fee (Note 5)		103
Accrued expenses		7,500
TOTAL LIABILITIES				75,762
Net assets for 53,739 shares outstanding			$	638,245
Net Assets Consist of:
Paid-in capital			$	567,702
Net unrealized appreciation of investments				65,443
Accumulated net realized gain on investments				6,255
Accumulated net investment income (loss)				(1,155	)
TOTAL NET ASSETS			$	638,245
Net Asset Value, Offering Price and Redemption Proceeds Per Share
Institutional Shares:
Net asset value per share ($341,068 ÷ 28,663 shares outstanding), no par value, unlimited shares authorized				$11.90
Offering price per share				$11.90
Redemption proceeds per share				$11.90
Class A Shares:
Net asset value per share ($267,387 ÷ 22,538 shares outstanding), no par value, unlimited shares authorized				$11.86
Offering price per share (100/94.50 of $11.86) 1				$12.55
Redemption proceeds per share				$11.86
Class C Shares:
Net asset value per share ($29,790 ÷ 2,538 shares outstanding), no par value, unlimited shares authorized				$11.74
Offering price per share (100/99.00 of $11.74) 1				$11.86
Redemption proceeds per share (99.00/100 of $11.74) 1				$11.62

1 See "What Do Shares Cost?" in the Prospectus.

See Notes which are an integral part of the Financial Statements

Statement of Operations

Six Months Ended January 31, 2007 (unaudited)

Investment Income:
Dividends							$	2,192
Interest								98
TOTAL INCOME								2,290
Expenses:
Investment adviser fee (Note 5)				$	2,187
Administrative personnel and services fee (Note 5)					115,946
Custodian fees					12,470
Transfer and dividend disbursing agent fees and expenses					33,252
Directors'/Trustees' fees					734
Auditing fees					7,310
Legal fees					4,537
Portfolio accounting fees					34,432
Distribution services fee--Class A Shares (Note 5)					177
Distribution services fee--Class C Shares (Note 5)					59
Shareholder services fee--Class A Shares (Note 5)					96
Shareholder services fee--Class C Shares (Note 5)					6
Share registration costs					22,709
Printing and postage					9,149
Insurance premiums					3,403
Miscellaneous					1,883
TOTAL EXPENSES					248,350
Waivers and Reimbursement:
Waiver of investment adviser fee (Note 5)	$	(2,187	)
Waiver of administrative personnel and services fee (Note 5)		(84,241	)
Waiver of transfer and dividend disbursing agent fees and expenses		(13,090	)
Waiver of portfolio accounting fees		(21,554	)
Reimbursement of other operating expenses (Note 5)		(123,833	)
TOTAL WAIVERS AND REIMBURSEMENT					(244,905	)
Net expenses								3,445
Net investment income (loss)								(1,155	)
Realized and Unrealized Gain on Investments:
Net realized gain on investments								8,772
Net change in unrealized appreciation of investments								60,332
Net realized and unrealized gain on investments								69,104
Change in net assets resulting from operations							$	67,949

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

		Six Months Ended (unaudited) 1/31/2007			Period Ended 7/31/2006	1
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	(1,155	)	$	(2,184	)
Net realized gain on investments		8,772			16,974
Net change in unrealized appreciation/depreciation on investments		60,332			5,111
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		67,949			19,901
Distributions to Shareholders:
Distributions from net realized gain on investments
Institutional Shares		(8,652	)		- --
Class A Shares		(8,224	)		- --
Class C Shares		(431	)		- --
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS		(17,307	)		- --
Share Transactions:
Proceeds from sale of shares		412,057			528,722
Net asset value of shares issued to shareholders in payment of distributions declared		16,367			- --
Cost of shares redeemed		(175,834	)		(213,610	)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		252,590			315,112
Change in net assets		303,232			335,013
Net Assets:
Beginning of period		335,013			- --
End of period (including accumulated net investment income (loss) of $(1,155) and $0, respectively)	$	638,245		$	335,013

1 Reflects operations for the period from September 15, 2005 (date of initial public investment) to July 31, 2006.

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

January 31, 2007 (unaudited)

1. ORGANIZATION

Federated MDT Series (the "Trust") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Trust consists of eight portfolios. The financial statements included herein are only those of Federated MDT Mid Cap Growth Fund (the "Fund"), a diversified portfolio. The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held. The Fund offers three classes of shares: Institutional Shares, Class A Shares and Class C Shares. All shares of the Fund have equal rights with respect to voting, except on class-specific matters. The financial highlights of the Institutional Shares are presented separately. The primary investment objective of the Fund is long-term capital appreciation.

MDT Mid Cap Growth Fund (the "Predecessor Fund") was reorganized into the Fund as of the close of business on December 8, 2006. Prior to the reorganization, the Fund had no investment operations. The Fund is the successor to the Predecessor Fund, which commenced operations on September 15, 2005.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with generally accepted accounting principles (GAAP) in the United States of America.

Investment Valuation

Market values of the Fund's portfolio securities are determined as follows:

• for equity securities, according to the last sale price or official closing price reported in the market in which they are primarily traded (either a national securities exchange or the over-the-counter market), if available;
• in the absence of recorded sales for equity securities, according to the mean between the last closing bid and asked prices;
• futures contracts and options are generally valued at market values established by the exchanges on which they are traded at the close of trading on such exchanges. Options traded in the over-the-counter market are generally valued according to the mean between the last bid and the last asked price for the option as provided by an investment dealer or other financial institution that deals in the option. The Board of Trustees (the "Trustees") may determine in good faith that another method of valuing such investments is necessary to appraise their fair market value;
• prices for total return swaps are furnished by an independent pricing service and are based upon a valuation model incorporating underlying reference indexes, interest rates, yield curves and other market data or factors. Prices for credit default swaps are furnished by an independent pricing service and are based upon a valuation model incorporating default probabilities, recovery rates and other market data or factors;
• for mortgage-backed securities, based on the aggregate investment value of the projected cash flows to be generated by the security, as furnished by an independent pricing service;
• for investments in other open-end regulated investment companies, based on net asset value (NAV);
• for other fixed-income securities, according to prices as furnished by an independent pricing service, except that fixed-income securities with remaining maturities of less than 60 days at the time of purchase are valued at amortized cost; and
• for all other securities at fair value as determined in accordance with procedures established by and under the general supervision of the Trustees.

Prices for fixed-income securities furnished by a pricing service may be based on a valuation matrix which incorporates both dealer-supplied valuations and electronic data processing techniques. Such prices (other than mortgage-backed securities) are generally intended to be indicative of the bid prices currently offered to institutional investors for the securities except that prices for corporate fixed-income and asset-backed securities traded in the United States are generally intended to be indicative of the mean between such bid prices and asked prices. The Trustees have approved the use of such pricing services. A number of pricing services are available, and the Fund may use various pricing services or discontinue the use of any pricing service.

Prices provided by independent pricing services may be determined without relying exclusively on quoted prices and may consider institutional trading in similar groups of securities, yield, quality, stability, risk, coupon rate, maturity, type of issue, trading characteristics, and other market data or factors. From time to time, when prices cannot be obtained from an independent pricing service, securities may be valued based on quotes from broker-dealers or other financial institutions that trade the securities.

Trading in foreign securities may be completed at times which vary from the closing of the New York Stock Exchange (NYSE). In computing its NAV, the Fund values foreign securities using the latest closing price on the exchange on which they are traded immediately prior to the closing of the NYSE. Certain foreign currency exchange rates are generally determined at the latest rate prior to the closing of the NYSE. Foreign securities quoted in foreign currencies are translated into U.S. dollars at current rates. Events that affect these values and exchange rates may occur between the times at which they are determined and the closing of the NYSE. If such events materially affect the value of portfolio securities, these securities may be valued at their fair value as determined in good faith by the Trustees, although the actual calculation may be done by others.

Repurchase Agreements

It is the policy of the Fund to require the other party to a repurchase agreement to transfer to the Fund's custodian or sub-custodian eligible securities or cash with a market value (after transaction costs) at least equal to the repurchase price to be paid under the repurchase agreement. The eligible securities are transferred to accounts with the custodian or sub-custodian in which the Fund holds a "securities entitlement" and exercises "control" as those terms are defined in the Uniform Commercial Code. The Fund has established procedures for monitoring the market value of the transferred securities and requiring the transfer of additional eligible securities if necessary to equal at least the repurchase price. These procedures also allow the other party to require securities to be transferred from the account to the extent that their market value exceeds the repurchase price or in exchange for other eligible securities of equivalent market value.

With respect to agreements to repurchase U.S. government securities and cash items, the Fund treats the repurchase agreement as an investment in the underlying securities and not as an obligation of the other party to the repurchase agreement. Other repurchase agreements are treated as obligations of the other party secured by the underlying securities. Nevertheless, the insolvency of the other party or other failure to repurchase the securities may delay the disposition of the underlying securities or cause the Fund to receive less than the full repurchase price. Under the terms of the repurchase agreement, any amounts received by the Fund in excess of the repurchase price and related transaction costs must be remitted to the other party.

The Fund may enter into repurchase agreements in which eligible securities are transferred into joint trading accounts maintained by the custodian or sub-custodian for investment companies and other clients advised by the Fund's adviser and its affiliates. The Fund will participate on a pro rata basis with the other investment companies and clients in its share of the securities transferred under such repurchase agreements and in its share of proceeds from any repurchase or other disposition of such securities.

Investment Income, Gains and Losses, Expenses and Distributions

Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Distributions of net investment income, if any, are declared and paid annually. Non-cash dividends included in dividend income, if any, are recorded at fair value. Investment income, realized and unrealized gains and losses, and certain fund-level expenses are allocated to each class based on relative average daily net assets, except that each class bears certain expenses unique to that class such as distribution and shareholder services fees. Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses.

Premium and Discount Amortization

All premiums and discounts on fixed-income securities are amortized/accreted for financial statement purposes.

Federal Taxes

It is the Fund's policy to comply with the Subchapter M provision of the Internal Revenue Code (the "Code") and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal income tax is necessary.

When-Issued and Delayed Delivery Transactions

The Fund may engage in when-issued or delayed delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated.

Other

Investment transactions are accounted for on a trade date basis. Realized gains and losses from investment transactions are recorded on an identified cost basis.

3. SHARES OF BENEFICIAL INTEREST

The following tables summarize share activity:

	Six Months Ended 1/31/2007					Period Ended 7/31/2006 1
Institutional Shares:	Shares			Amount		Shares			Amount
Shares sold	10,101		$	118,431		31,504		$	316,914
Shares issued to shareholders in payment of distributions declared	738			8,505		- --			- --
Shares redeemed	(3,253	)		(36,014	)	(10,427	)		(115,165	)
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS	7,586		$	90,922		21,077		$	201,749
	Six Months Ended 1/31/2007					Period Ended 7/31/2006 1
Class A Shares:	Shares			Amount		Shares			Amount
Shares sold	24,314		$	269,547		18,783		$	206,180
Shares issued to shareholders in payment of distributions declared	659			7,567		- --			- --
Shares redeemed	(12,201	)		(138,029	)	(9,017	)		(98,445	)
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS	12,772		$	139,085		9,766		$	107,735
	Six Months Ended 1/31/2007					Period Ended 7/31/2006 1
Class C Shares:	Shares			Amount		Shares			Amount
Shares sold	2,147		$	24,079		523		$	5,628
Shares issued to shareholders in payment of distributions declared	26			295		- --			- --
Shares redeemed	(158	)		(1,791	)	- --			- --
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS	2,015		$	22,583		523		$	5,628
NET CHANGE RESULTING FROM SHARE TRANSACTIONS	22,373		$	252,590		31,366		$	315,112

1 Reflects operations for the period from September 15, 2005 (date of initial public investment) to July 31, 2006.

4. FEDERAL TAX INFORMATION

At January 31, 2007, the cost of investments for federal tax purposes was $623,511. The net unrealized appreciation of investments for federal tax purposes was $65,443. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $73,497 and net unrealized depreciation from investments for those securities having an excess of cost over value of $8,054.

5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated MDTA LLC, the Fund's investment adviser (the "Adviser"), receives for its services an annual investment adviser fee equal to 0.90% of the Fund's average daily net assets. Under the investment advisory contract, the Adviser is contractually obligated to waive, to the extent of its adviser fee, the amount, if any, by which the Fund's annual operating expenses exceed the following levels for each Class of the Fund:

Share Class	Percentage of Average Daily Net Assets of Class
Institutional Shares	1.80%
Class A Shares	2.05%
Class C Shares	2.80%

The Adviser has agreed to keep these contractual limitations in place through December 8, 2008.

In addition, after fulfilling its contractual commitment, the Adviser may voluntarily choose to waive and/or reimburse any additional portion of its fee. The Adviser can modify or terminate this voluntary waiver and/or reimbursement at any time at its sole discretion. For the six months ended January 31, 2007, the Adviser waived $2,187 of its fee and reimbursed $123,833 of other operating expenses.

For a period of three years after the fiscal year in which the Adviser waived or reimbursed Fund expenses, the Adviser may seek reimbursement from the Fund to the extent that the Fund's total annual operating expenses are less than the expense limitation. Due to the reorganization of the Fund, any expenses waived or reimbursed by the Adviser after December 8, 2006 may not be recovered by the Adviser.

Expenses waived/reimbursed by the Fund of $68,395 are subject to potential recovery by the expiration date of July 31, 2009.

Administrative Fee

Federated Administrative Services (FAS), under the Administrative Services Agreement (the "Agreement"), provides the Fund with administrative personnel and services. The fee paid to FAS is based on the average aggregate daily net assets of certain Federated funds as specified below:

Administrative Fee	Average Aggregate Daily Net Assets of the Federated Funds
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

The administrative fee received during any fiscal year shall be at least $150,000 per portfolio and $40,000 per each additional class of Shares. During the period from July 15, 2006 through December 8, 2006, the administrator contractually agreed to waive the portion of its fee which it would otherwise be entitled to receive from the Fund under the Agreement. The level of fees payable by the Fund to FAS for the period will not exceed the level of fees which the Fund would have paid during the period to its previous service provider under its previous administrative services contract. In addition, FAS may voluntarily choose to waive any portion of its fee. FAS can modify or terminate this voluntary waiver at any time at its sole discretion. For the six months ended January 31, 2007, the net fee paid to FAS was 13.046% of average aggregate daily net assets of the Fund.

Distribution Services Fee

The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will compensate Federated Securities Corp. (FSC), the principal distributor, from the daily net assets of the Fund's Class A Shares and Class C Shares to finance activities intended to result in the sale of these shares. The Plan provides that the Fund may incur distribution expenses according to the following schedule annually, to compensate FSC:

Share Class	Percentage of Average Daily Net Assets of Class
Class A Shares	0.25%
Class C Shares	0.75%

Prior to December 11, 2006, the Fund incurred distribution expenses according to the following schedule annually, to compensate FSC:

Share Class	Percentage of Average Daily Net Assets of Class
Class A Shares	0.25%
Class C Shares	1.00%

FSC may voluntarily choose to waive any portion of its fee. FSC can modify or terminate this voluntary waiver at any time at its sole discretion. When FSC receives fees, it may pay some or all of them to financial intermediaries whose customers purchase shares. For the six months ended January 31, 2007, FSC did not retain any fees paid by the Fund.

Sales Charges

For the six months ended January 31, 2007, FSC, the principal distributor, retained $205 in sales charges from the sale of Class A Shares. See "What Do Shares Cost?" in the Prospectus.

Shareholder Services Fee

Effective December 11, 2006, the Fund may pay fees (Service Fees) up to 0.25% of the average daily net assets of the Fund's Class A Shares and Class C Shares to financial intermediaries or to Federated Shareholder Services Company (FSSC) for providing services to shareholders and maintaining shareholder accounts. FSSC or these financial intermediaries may voluntarily choose to waive a portion of their fee. In addition, FSSC may voluntarily reimburse the Fund for shareholder services fees. This voluntary waiver and/or reimbursement can be modified or terminated at any time. For the six months ended January 31, 2007, FSSC did not receive any fees paid by the Fund.

General

Certain of the Officers and Trustees of the Trust are Officers and Directors or Trustees of the above companies.

6. INVESTMENT TRANSACTIONS

Purchases and sales of investments, excluding long-term U.S. government securities and short-term obligations, for the six months ended January 31, 2007, were as follows:

Purchases	$	701,578
Sales	$	414,893

7. LINE OF CREDIT

The Trust entered into a $150,000,000 unsecured, uncommitted revolving line of credit (LOC) agreement with PNC Bank. The LOC was made available for extraordinary or emergency purposes, primarily for financing redemption payments. Borrowings are charged interest at a rate of 0.65% over the federal funds rate. As of January 31, 2007, there were no outstanding loans. During the six months ended January 31, 2007, the Fund did not utilize the LOC.

8. LEGAL PROCEEDINGS

Beginning in October 2003, Federated Investors, Inc. and various subsidiaries thereof (including the advisers and distributor for various investment companies, collectively, "Federated"), along with various investment companies sponsored by Federated ("Funds") were named as defendants in several class action lawsuits now pending in the United States District Court for the District of Maryland. The lawsuits were purportedly filed on behalf of people who purchased, owned and/or redeemed shares of Federated-sponsored mutual funds during specified periods beginning November 1, 1998. The suits are generally similar in alleging that Federated engaged in illegal and improper trading practices including market timing and late trading in concert with certain institutional traders, which allegedly caused financial injury to the mutual fund shareholders. These lawsuits began to be filed shortly after Federated's first public announcement that it had received requests for information on shareholder trading activities in the Funds from the Securities and Exchange Commission ("SEC"), the Office of the New York State Attorney General ("NYAG"), and other authorities. In that regard, on November 28, 2005, Federated announced that it had reached final settlements with the SEC and the NYAG with respect to those matters. As Federated previously reported in 2004, it has already paid approximately $8.0 million to certain funds as determined by an independent consultant. As part of these settlements, Federated agreed to pay for the benefit of fund shareholders additional disgorgement and a civil money penalty in the aggregate amount of an additional $72 million. Federated and various Funds have also been named as defendants in several additional lawsuits, the majority of which are now pending in the United States District Court for the Western District of Pennsylvania, alleging, among other things, excessive advisory and Rule 12b-1 fees. The Board of the Funds has retained the law firm of Dickstein Shapiro LLP to represent the Funds in these lawsuits. Federated and the Funds, and their respective counsel, are reviewing the allegations and intend to defend this litigation. Additional lawsuits based upon similar allegations may be filed in the future. The potential impact of these lawsuits, all of which seek unquantified damages, attorneys' fees and expenses, and future potential similar suits is uncertain. Although we do not believe that these lawsuits will have a material adverse effect on the Funds, there can be no assurance that these suits, the ongoing adverse publicity and/or other developments resulting from the regulatory investigations will not result in increased Fund redemptions, reduced sales of Fund shares, or other adverse consequences for the Funds.

9. RECENT ACCOUNTING PRONOUNCEMENTS

In July 2006, the Financial Accounting Standards Board (FASB) released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" (FIN 48). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax benefits of positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax expense in the current year. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years of the Fund no later than January 30, 2008. At this time, management is evaluating the implications of FIN 48 and its impact in the financial statements has not yet been determined.

In addition, in September 2006, FASB released Statement on Financial Accounting Standards No. 157, "Fair Value Measurements" (FAS 157) which is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of FAS 157 will have on the Funds' financial statement disclosures.

Evaluation and Approval of Advisory Contract

FEDERATED MDT MID CAP GROWTH FUND (THE "FUND")

The Fund's Board reviewed the Fund's investment advisory contract at meetings held in May and June 2006. The Board's decision to approve the contract reflects the exercise of its business judgment on whether to authorize the creation and offering of this new investment vehicle, as proposed by, and based on information provided by, the Federated organization, and based on Federated's recommendation to go forward with establishment of the Fund.

Federated proposed the creation of the Fund in connection with its acquisition of MDTA LLC (the "Acquisition"), the investment adviser to the MDT Mid Cap Growth Fund (the "Predecessor Fund"). As part of that transaction, Federated proposed that the Predecessor Fund be reorganized with and into the Fund in a tax-free reorganization (the "Proposed Reorganization"), which would provide shareholders of the Predecessor Fund the opportunity to become shareholders of a fund with substantially similar investment objectives and policies and the same portfolio manager(s) as the Predecessor Fund, but with sales, distribution and other shareholder services offered by the funds managed and distributed by affiliates of Federated.

Prior to the meeting, the Adviser had recommended that the Federated Funds appoint a Senior Officer, whose duties include specified responsibilities relating to the process by which advisory fees are to be charged to a Federated Fund. The Senior Officer appointed by the Funds has the authority to retain consultants, experts, or staff as may be reasonably necessary to assist in the performance of his duties, reports directly to the Board, and may be terminated only with the approval of a majority of the independent members of the Board. The Senior Officer prepared and furnished to the Board an independent written evaluation that covered topics discussed below, which the Board considered, along with other information, in deciding to approve the advisory contract.

The Board also considered the anticipated compensation and benefits to be received by the Adviser. This includes fees to be received for services provided to the Fund by other entities in the Federated organization and research services that may be received by the Adviser from brokers that execute fund trades, as well as advisory fees. The Board is also familiar with judicial decisions concerning allegedly excessive investment advisory fees which have indicated that the following factors may be relevant to an Adviser's fiduciary duty with respect to its receipt of compensation from a fund: the nature and quality of the services provided by the Adviser, including the performance of the Fund; the Adviser's cost of providing the services; the extent to which the Adviser may realize "economies of scale" as the Fund grows larger; any indirect benefits that may accrue to the Adviser and its affiliates as a result of the Adviser's relationship with the Fund; performance and expenses of comparable funds; and the extent to which the independent Board members are fully informed about all facts the Board deems relevant bearing on the Adviser's services and fees. The Board further considered management fees (including any components thereof) charged to institutional and other clients of the Adviser for like services and costs to the Adviser and its affiliates of supplying services pursuant to the management fee agreements, excluding any intra-corporate profit and profit margins of the Adviser and its affiliates from supplying such services. The Board was aware of these considerations and was guided by them in its review of the Fund's advisory contract to the extent they are appropriate and relevant, as discussed further below.

The Board considered and weighed these circumstances in light of its substantial accumulated experience in working with Federated on matters relating to other Federated Funds, and was assisted in its deliberations by the advice of independent legal counsel. The Board's consideration of the advisory contract included review of the Senior Officer's evaluation, accompanying data and additional reports covering such matters as: the Adviser's investment philosophy, revenue, profitability, personnel and processes; investment and operating strategies; the Fund's investment objectives; the Fund's expenses (including the advisory fee itself and the overall expense structure of the Fund, both in absolute terms and relative to similar and/or competing funds, with due regard for contractual or voluntary expense limitations); the nature, quality and extent of the advisory and other services to be provided to the Fund by the Adviser and its affiliates; the preferences and expectations of Fund shareholders and their relative sophistication; the continuing state of competition in the mutual fund industry and market practices; the range of comparable fees for similar funds in the mutual fund industry; the Fund's relationship to the Federated family of funds which include a comprehensive array of funds with different investment objectives, policies and strategies which are available for exchange without the incurrence of additional sales charges; compliance and audit reports concerning the Federated Funds and the Federated companies that service them (including communications from regulatory agencies), as well as Federated's responses to any issues raised therein; and relevant developments in the mutual fund industry and how the Federated Funds and/or Federated are responding to them. The Board's evaluation process is evolutionary. The criteria considered and the emphasis placed on relevant criteria change in recognition of changing circumstances in the mutual fund marketplace.

With respect to the Fund's expenses in particular, the Board has found the use of comparisons to other mutual funds with comparable investment programs to be particularly useful, given the high degree of competition in the mutual fund business. The Board focused on comparisons with other similar mutual funds more heavily than non-mutual fund products or services because, simply put, they are more relevant. For example, other mutual funds are the products most like the Fund, they are readily available to Fund shareholders as alternative investment vehicles, and they are the type of investment vehicle in fact chosen and maintained by the Fund's anticipated investors. The range of their fees and expenses therefore appears to be a generally reliable indication of what consumers have found to be reasonable in the precise marketplace in which the Fund will compete. In this regard, the Senior Officer also reviewed Federated's fees for providing advisory services to products outside the Federated family of funds (e.g., institutional and separate accounts). He concluded that mutual funds and institutional accounts are inherently different products. Those differences included, but are not limited to targeting different investors, being subject to different laws and regulations, different legal structure, distribution costs, average account size and portfolio management techniques made necessary by different cash flows. The Senior Officer did not consider these fee schedules to be significant in determining the appropriateness of mutual fund advisory contracts.

The Senior Officer reviewed reports compiled by Federated and directed the preparation of reports regarding the performance of, and fees charged by other mutual funds, noting his view that comparisons to fund peer groups is of significance in judging the reasonableness of proposed fees.

Because the Fund will employ the same portfolio managers and investment techniques, the Board reviewed the Predecessor Fund's performance compared to its benchmark as an indicator of how the Adviser will execute the Fund's investment program, which in turn assisted the Board in reaching a conclusion that the nature, extent and quality of the Adviser's investment management services were such as to warrant approval of the advisory contract. The Board noted that the Predecessor Fund and/or accounts managed by MDTA LLC with substantially similar investment objectives and policies underperformed its relevant benchmark on a gross basis for the one-year period and outperformed its relevant benchmark on a gross basis for the three-year period reviewed. The Board determined that reviewing performance on a gross basis was appropriate in this instance because the fee structure for separately managed accounts is not comparable for the Fund as discussed above.

The Senior Officer noted that the Fund's quantitative focus made it difficult to compare its fees and expenses to other peers, which varied widely in their complexity. He observed that the management of the Fund is among the more complex, relative to its peers and, consequently, that the advisory fee and projected net total expenses are at the high end compared to such peers. The Board reviewed the proposed fees and other expenses of the Fund with the Adviser and was satisfied that the proposed overall expense structure of the Fund appeared competitive. The Board will continue to monitor advisory fees and other expenses borne by the Fund. No changes were recommended to, and no objection was raised to the proposed advisory contract, and the Senior Officer noted that Federated proposed to provide appropriate administrative services to the Fund for the anticipated fees. The Board concluded that the nature, quality and scope of services to be provided to the Fund by the Adviser and its affiliates were satisfactory.

The Board also considered possible indirect benefits that may accrue to the Adviser and its affiliates as a result of the Acquisition. Other indirect benefits that may accrue to the Adviser and its affiliates as a result of the Adviser's relationship with the Fund are essentially impossible to apply before the Fund has experienced any meaningful operating history. Nevertheless, in connection with the Board's governance of other Federated Funds, it should be noted that the Board regularly receives financial information about Federated, including reports on the compensation and benefits Federated derives from its relationships with the other Federated Funds. These reports cover not only the fees under the advisory contracts, but also fees received by Federated's subsidiaries for providing other services to the Federated Funds under separate contracts (e.g., for serving as the Federated Funds' administrator). The reports also discuss any indirect benefit Federated may derive from its receipt of research services from brokers who execute Federated fund trades, as well as waivers of fees and/or reimbursements of expenses. In order for a fund to be competitive in the marketplace, Federated and its affiliates frequently waive fees and/or reimburse expenses and have indicated to the Board their intention to do so in the future, where appropriate. It was noted in this regard that the Adviser has agreed to limit the expenses of each class of the Fund at specified amounts for a two year period commencing on the date the Proposed Reorganization is consummated.

Federated furnished reports, requested by the Senior Officer, that made estimates of the allocation of expenses on a fund by fund basis, using allocation methodologies specified by the Senior Officer. The Senior Officer noted that, although they may apply consistent allocation processes, the inherent difficulties in allocating costs and the lack of consensus on how to allocate those costs causes such allocation reports to be of questionable value. The allocation reports were considered in the analysis by the Board but were determined to be of limited use.

The Board also reviewed profitability information for Federated and other publicly held fund management companies, provided by the Senior Officer, who noted the limited availability of such information, and concluded that Federated's profit margins did not appear to be excessive.

The Senior Officer's evaluation also discussed the notion of possible realization of "economies of scale" as a fund grows larger. The Board considered in this regard that the Adviser has made significant additional investments in the portfolio management and distribution efforts supporting all of the Federated Funds and that the benefits of any economies, should they exist, were likely to be enjoyed by the fund complex as a whole. Finally, the Board also noted the absence of any applicable regulatory or industry guidelines on this subject, which is compounded by the lack of any common industry practice or general pattern with respect to structuring fund advisory fees with "breakpoints" that serve to reduce the fee as the fund attains a certain size. The Senior Officer did not recommend institution of breakpoints in pricing Federated's fund advisory services at this time.

The Board based its decision to approve the advisory contract on the totality of the circumstances and relevant factors, and with a view to past and future long-term considerations. As noted, not all of the factors and considerations identified above were relevant to the Fund, nor does the Board consider any one of them to be determinative. With respect to the factors that are relevant, the Board's decision to approve the contract reflects its determination that, based upon the information requested and supplied, Federated's proposal to establish and manage the Fund, and its past performance and actions in providing services to other mutual funds, provide a satisfactory basis to support the business decision to approve the proposed arrangements.

Voting Proxies on Fund Portfolio Securities

A description of the policies and procedures that the Fund uses to determine how to vote proxies, if any, relating to securities held in the Fund's portfolio is available, without charge and upon request, by calling 1-800-341-7400. A report on "Form N-PX" of how the Fund voted any such proxies during the most recent 12-month period ended June 30 is available through Federated's website. Go to FederatedInvestors.com, select "Products," select the "Prospectuses and Regulatory Reports" link, then select the Fund to access the link to Form N-PX. This information is also available from the EDGAR database on the SEC's website at www.sec.gov.

Quarterly Portfolio Schedule

The Fund files with the SEC a complete schedule of its portfolio holdings, as of the close of the first and third quarters of its fiscal year, on "Form N-Q." These filings are available on the SEC's website at www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. (Call 1-800-SEC-0330 for information on the operation of the Public Reference Room.) You may also access this information from the "Products" section of the Federated Investors website at FederatedInvestors.com by clicking on "Portfolio Holdings" and selecting the name of the Fund, or by selecting the name of the Fund and clicking on "Portfolio Holdings." You must register on the website the first time you wish to access this information.

Mutual funds are not bank deposits or obligations, are not guaranteed by any bank, and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other government agency. Investment in mutual funds involves investment risk, including the possible loss of principal.

This report is authorized for distribution to prospective investors only when preceded or accompanied by the Fund's prospectus, which contains facts concerning its objective and policies, management fees, expenses, and other information.

IMPORTANT NOTICE ABOUT FUND DOCUMENT DELIVERY

In an effort to reduce costs and avoid duplicate mailings, the Fund(s) intend to deliver a single copy of certain documents to each household in which more than one shareholder of the Fund(s) resides (so-called "householding"), as permitted by applicable rules. The Fund's "householding" program covers its/their Prospectus and Statement of Additional Information, and supplements to each, as well as Semi-Annual and Annual Shareholder Reports and any Proxies or information statements. Shareholders must give their written consent to participate in the "householding" program. The Fund is also permitted to treat a shareholder as having given consent ("implied consent") if (i) shareholders with the same last name, or believed to be members of the same family, reside at the same street address or receive mail at the same post office box, (ii) the Fund gives notice of its intent to "household" at least sixty (60) days before it begins "householding" and (iii) none of the shareholders in the household have notified the Fund(s) or their agent of the desire to "opt out" of "householding." Shareholders who have granted written consent, or have been deemed to have granted implied consent, can revoke that consent and opt out of "householding" at any time: shareholders who purchased shares through an intermediary should contact their representative; other shareholders may call the Fund at 1-800-341-7400.

Federated Securities Corp., Distributor

Cusip 31421R874
Cusip 31421R866

36358 (3/07)

Federated is a registered mark of Federated Investors, Inc. 2007 (c)Federated Investors, Inc.

Federated
World-Class Investment Manager

Federated MDT Mid Cap Growth Fund

A Portfolio of Federated MDT Series

SEMI-ANNUAL SHAREHOLDER REPORT

January 31, 2007

Institutional Shares

FINANCIAL HIGHLIGHTS
SHAREHOLDER EXPENSE EXAMPLE
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
PORTFOLIO OF INVESTMENTS
STATEMENT OF ASSETS AND LIABILITIES
STATEMENT OF OPERATIONS
STATEMENT OF CHANGES IN NET ASSETS
NOTES TO FINANCIAL STATEMENTS
EVALUATION AND APPROVAL OF ADVISORY CONTRACT
VOTING PROXIES ON FUND PORTFOLIO SECURITIES
QUARTERLY PORTFOLIO SCHEDULE

Not FDIC Insured * May Lose Value * No Bank Guarantee

Financial Highlights

(For a Share Outstanding Throughout Each Period)

	Six Months Ended (unaudited) 1/31/2007	1	Period Ended 7/31/2006	2
Net Asset Value, Beginning of Period	$10.69		$10.00
Income From Investment Operations:
Net investment income (loss)	(0.02	) 3	(0.07	) 3
Net realized and unrealized gain on investments	1.55		0.76
TOTAL FROM INVESTMENT OPERATIONS	1.53		0.69
Less Distributions:
Distributions from net realized gain on investments	(0.32	)	- --
Net Asset Value, End of Period	$11.90		$10.69
Total Return 4	14.37	%	6.90	%
Ratios to Average Net Assets:
Net expenses	1.28	% 5	1.77	% 5
Net investment income (loss)	(0.36	)% 5	(0.67	)% 5
Expense waiver/reimbursement 6	102.67	% 5	27.33	% 5
Supplemental Data:
Net assets, end of period (000 omitted)	$341		$225
Portfolio turnover	86	%	201	%

1 MDT Mid Cap Growth Fund (the "Predecessor Fund") was reorganized into Federated MDT Mid Cap Growth Fund (the "Fund"), as of the close of business on December 8, 2006. Prior to the reorganization, the Fund had no investment operations. The Fund is the successor to the Predecessor Fund. The performance information and financial information presented incorporates the operations of the Predecessor Fund, which, as a result of the reorganization, are the Fund's operations.

2 Reflects operations for the period from September 15, 2005 (date of initial public investment) to July 31, 2006.

3 Per share numbers have been calculated using the average shares method.

4 Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. Total returns for periods of less than one year are not annualized.

5 Computed on an annualized basis.

6 This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above.

See Notes which are an integral part of the Financial Statements

Shareholder Expense Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; to the extent applicable, distribution (12b-1) fees and/or shareholder services fees and other Fund expenses. This Example is intended to help you to understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. It is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from August 1, 2006 to January 31, 2007.

ACTUAL EXPENSES

The first section of the table below provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you incurred over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled "Expenses Paid During Period" to estimate the expenses attributable to your investment during this period.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

The second section of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. Thus, you should not use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are required to be provided to enable you to compare the ongoing costs of investing in the Fund with other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.

	Beginning Account Value 8/1/2006	Ending Account Value 1/31/2007	Expenses Paid During Period 1
Actual	$1,000	$1,143.70	$6.92
Hypothetical (assuming a 5% return before expenses)	$1,000	$1,018.75	$6.51

1 Expenses are equal to the Fund's annualized net expense ratio of 1.28%, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

Portfolio of Investments Summary Table

At January 31, 2007, the Fund's industry composition ¹ was as follows:

Industry	Percentage of Total Net Assets
Health Care Providers & Services	11.7	%
Aerospace & Defense	9.8	%
Specialty Retail	8.4	%
Industrial Conglomerates	7.5	%
IT Services	5.8	%
Machinery	5.3	%
Pharmaceuticals	4.7	%
Containers & Packaging	4.3	%
Software	3.8	%
Semiconductors & Semiconductor Equipment	3.7	%
Electronic Equipment & Instruments	3.6	%
Biotechnology	3.4	%
Metals & Mining	3.2	%
Textiles, Apparel & Luxury Goods	3.2	%
Life Sciences Tools & Services	3.0	%
Communications Equipment	2.5	%
Health Care Equipment & Supplies	2.3	%
Auto Components	2.2	%
Capital Markets	2.2	%
Electrical Equipment	2.2	%
Multiline Retail	2.2	%
Airlines	1.9	%
Hotels, Restaurants & Leisure	1.9	%
Chemicals	1.5	%
Automobiles	1.3	%
Commercial Services & Supplies	1.3	%
Energy Equipment & Services	1.1	%
Internet & Catalog Retail	1.1	%
Other 2	2.8	%
Other Assets and Liabilities--Net 3	(7.9	)%
TOTAL	100.0	%

1 Except for Other Assets and Liabilities, industry classifications are based upon, and individual securities are assigned to, the classifications of the Global Industry Classification Standard (GICS) except that the adviser assigns a classification to securities not classified by the GICS and to securities for which the adviser does not have access to the classification made by the GICS.

2 For purposes of this table, industry classifications which constitute less than 1.0% of the Fund's total net assets have been aggregated under the designation "Other".

3 Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities.

Portfolio of Investments

January 31, 2007 (unaudited)

Shares					Value
			COMMON STOCKS--107.9%
			Aerospace & Defense--9.8%
	70	1	Alliant Techsystems, Inc.	$	5,670
	313		Goodrich (B.F.) Co.		15,343
	380		Precision Castparts Corp.		33,778
	111		Rockwell Collins		7,571
			TOTAL		62,362
			Airlines--1.9%
	292	1	Continental Airlines, Inc., Class B		12,115
			Auto Components--2.2%
	561	1	Goodyear Tire & Rubber Co.		13,851
			Automobiles--1.3%
	122		Harley Davidson, Inc.		8,329
			Biotechnology--3.4%
	230	1	Cephalon, Inc.		16,654
	264	1	PDL BioPharma, Inc.		5,415
			TOTAL		22,069
			Building Products--0.7%
	140		Lennox International, Inc.		4,248
			Capital Markets--2.2%
	122	1	Affiliated Managers Group		13,591
	17	1	TD Ameritrade Holding Corp.		301
			TOTAL		13,892
			Chemicals--1.5%
	54		Celanese Corp.		1,417
	374	1	Nalco Holding Co.		8,598
			TOTAL		10,015
			Commercial Services & Supplies--1.3%
	30		Manpower, Inc.		2,188
	148		Miller Herman, Inc.		5,565
	7		Republic Services, Inc.		303
			TOTAL		8,056
Shares					Value
			COMMON STOCKS--continued
			Communications Equipment--2.5%
	315		Harris Corp.	$	16,008
			Computers & Peripherals--0.4%
	44	1	Lexmark International Group, Class A		2,773
			Construction & Engineering--0.3%
	20		Jacobs Engineering Group, Inc.		1,811
			Consumer Finance--0.3%
	34	1	First Marblehead Corp.		1,849
			Containers & Packaging--4.3%
	259		Ball Corp.		11,997
	469	1	Pactiv Corp.		15,214
			TOTAL		27,211
			Diversified Telecommunication Services--0.1%
	7		Embarq Corp.		388
			Electrical Equipment--2.2%
	276		AMETEK, Inc.		9,566
	84		Roper Industries, Inc.		4,361
			TOTAL		13,927
			Electronic Equipment & Instruments--3.6%
	341		Amphenol Corp., Class A		23,092
	2	1	Anixter International, Inc.		110
			TOTAL		23,202
			Energy Equipment & Services--1.1%
	35	1	Cameron International Corp.		1,837
	50		ENSCO International, Inc.		2,543
	23	1	National-Oilwell, Inc.		1,395
	7	1	Seacor Holdings, Inc.		709
	14		Tidewater, Inc.		722
			TOTAL		7,206
			Health Care Equipment & Supplies--2.3%
	54		Becton, Dickinson & Co.		4,155
	167		Hillenbrand Industries, Inc.		9,521
	27	1	Kinetic Concepts, Inc.		1,328
			TOTAL		15,004
Shares					Value
			COMMON STOCKS--continued
			Health Care Providers & Services--11.7%
	467	1	Coventry Health Care, Inc.	$	24,074
	72	1	DaVita, Inc.		3,931
	8	1	Health Net, Inc.		390
	50	1	Humana, Inc.		2,775
	470	1	Laboratory Corp. of America Holdings		34,517
	100	1	Pediatrix Medical Group		5,254
	47	1	Wellcare Health Plans, Inc.		3,642
			TOTAL		74,583
			Hotels, Restaurants & Leisure--1.9%
	9		Brinker International, Inc.		284
	93	1	Burger King Holdings, Inc.		1,931
	70	1	Wynn Resorts Ltd.		7,822
	32		Yum! Brands, Inc.		1,920
			TOTAL		11,957
			Household Durables--0.4%
	111		Tempur-Pedic International, Inc.		2,642
			Household Products--0.1%
	6	1	Energizer Holdings, Inc.		511
			IT Services--5.8%
	316	1	Alliance Data Systems Corp.		21,466
	75	1	Cognizant Technology Solutions Corp.		6,397
	273	1	Gartner Group, Inc., Class A		5,968
	83		Global Payments, Inc.		3,134
			TOTAL		36,965
			Independent Power Producers & Energy Traders--0.3%
	90	1	AES Corp.		1,871
			Industrial Conglomerates--7.5%
	419	1	McDermott International, Inc.		21,637
	280		Textron Inc.		26,088
			TOTAL		47,725
			Internet & Catalog Retail--1.1%
	31	1	Amazon.com, Inc.		1,168
	129	1	Nutri/System, Inc.		5,682
			TOTAL		6,850
Shares					Value
			COMMON STOCKS--continued
			Leisure Equipment & Products--0.1%
	17		Polaris Industries, Inc., Class A	$	795
			Life Sciences Tools & Services--3.0%
	338	1	Waters Corp.		19,161
			Machinery--5.3%
	176	1	Gardner Denver, Inc.		6,785
	5		Harsco Corp.		429
	35		IDEX Corp.		1,816
	31		Joy Global, Inc.		1,441
	239		Manitowoc, Inc.		12,394
	95		PACCAR, Inc.		6,353
	92		Toro Co.		4,717
			TOTAL		33,935
			Media--0.0%
	7		E.W. Scripps Co., Class A		342
			Metals & Mining--3.2%
	136		Allegheny Technologies, Inc.		14,075
	104	1	Southern Copper Corp.		6,500
			TOTAL		20,575
			Multiline Retail--2.2%
	74		Nordstrom, Inc.		4,123
	124		Penney (J.C.) Co., Inc.		10,074
			TOTAL		14,197
			Pharmaceuticals--4.7%
	84	1	Forest Laboratories, Inc., Class A		4,713
	444	1	Sepracor, Inc.		25,335
			TOTAL		30,048
			Semiconductors & Semiconductor Equipment--3.7%
	29		KLA-Tencor Corp.		1,428
	13	1	Lam Research Corp.		596
	395	1	MEMC Electronic Materials, Inc.		20,698
	26	1	NVIDIA Corp.		797
			TOTAL		23,519
Shares					Value
			COMMON STOCKS--continued
			Software--3.8%
	54	1	Autodesk, Inc.	$	2,361
	119	1	Electronic Arts, Inc.		5,950
	124		FactSet Research Systems		7,202
	221		Fair Isaac & Co., Inc.		8,800
			TOTAL		24,313
			Specialty Retail--8.4%
	37		Abercrombie & Fitch Co., Class A		2,943
	72		American Eagle Outfitters, Inc.		2,331
	230	1	AutoZone, Inc.		28,895
	17	1	CarMax, Inc.		976
	24	1	Guess ?, Inc.		1,731
	356		Limited Brands		9,947
	24	1	Office Depot, Inc.		897
	86		Sherwin-Williams Co.		5,943
			TOTAL		53,663
			Textiles, Apparel & Luxury Goods--3.2%
	403	1	Coach, Inc.		18,482
	22		Polo Ralph Lauren Corp., Class A		1,805
			TOTAL		20,287
			Trading Companies & Distributors--0.1%
	9		Grainger (W.W.), Inc.		699
			TOTAL COMMON STOCKS		688,954
			TOTAL INVESTMENTS--107.9% (IDENTIFIED COST $623,511) 2		688,954
			OTHER ASSETS AND LIABILITIES - NET--(7.9)%		(50,709	)
			TOTAL NET ASSETS--100%	$	638,245

1 Non-income producing security.

2 Also represents cost for federal tax purposes.

Note: The categories of investments are shown as a percentage of total net assets at January 31, 2007.

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

January 31, 2007 (unaudited)

Assets:
Total investments in securities, at value (identified cost $623,511)			$	688,954
Cash				10,382
Income receivable				37
Receivable for investments sold				14,456
Receivable for shares sold				178
TOTAL ASSETS				714,007
Liabilities:
Payable for investments purchased	$	14,477
Payable for administrative personnel and services fee (Note 5)		31,725
Payable for transfer and dividend disbursing agent fees and expenses		20,657
Payable for Directors'/Trustees' fees		1,041
Payable for distribution services fee (Note 5)		259
Payable for shareholder services fee (Note 5)		103
Accrued expenses		7,500
TOTAL LIABILITIES				75,762
Net assets for 53,739 shares outstanding			$	638,245
Net Assets Consist of:
Paid-in capital			$	567,702
Net unrealized appreciation of investments				65,443
Accumulated net realized gain on investments				6,255
Accumulated net investment income (loss)				(1,155	)
TOTAL NET ASSETS			$	638,245
Net Asset Value, Offering Price and Redemption Proceeds Per Share
Institutional Shares:
Net asset value per share ($341,068 ÷ 28,663 shares outstanding), no par value, unlimited shares authorized				$11.90
Offering price per share				$11.90
Redemption proceeds per share				$11.90
Class A Shares:
Net asset value per share ($267,387 ÷ 22,538 shares outstanding), no par value, unlimited shares authorized				$11.86
Offering price per share (100/94.50 of $11.86) 1				$12.55
Redemption proceeds per share				$11.86
Class C Shares:
Net asset value per share ($29,790 ÷ 2,538 shares outstanding), no par value, unlimited shares authorized				$11.74
Offering price per share (100/99.00 of $11.74) 1				$11.86
Redemption proceeds per share (99.00/100 of $11.74) 1				$11.62

1 See "What Do Shares Cost?" in the Prospectus.

See Notes which are an integral part of the Financial Statements

Statement of Operations

Six Months Ended January 31, 2007 (unaudited)

Investment Income:
Dividends							$	2,192
Interest								98
TOTAL INCOME								2,290
Expenses:
Investment adviser fee (Note 5)				$	2,187
Administrative personnel and services fee (Note 5)					115,946
Custodian fees					12,470
Transfer and dividend disbursing agent fees and expenses					33,252
Directors'/Trustees' fees					734
Auditing fees					7,310
Legal fees					4,537
Portfolio accounting fees					34,432
Distribution services fee--Class A Shares (Note 5)					177
Distribution services fee--Class C Shares (Note 5)					59
Shareholder services fee--Class A Shares (Note 5)					96
Shareholder services fee--Class C Shares (Note 5)					6
Share registration costs					22,709
Printing and postage					9,149
Insurance premiums					3,403
Miscellaneous					1,883
TOTAL EXPENSES					248,350
Waivers and Reimbursement:
Waiver of investment adviser fee (Note 5)	$	(2,187	)
Waiver of administrative personnel and services fee (Note 5)		(84,241	)
Waiver of transfer and dividend disbursing agent fees and expenses		(13,090	)
Waiver of portfolio accounting fees		(21,554	)
Reimbursement of other operating expenses (Note 5)		(123,833	)
TOTAL WAIVERS AND REIMBURSEMENT					(244,905	)
Net expenses								3,445
Net investment income (loss)								(1,155	)
Realized and Unrealized Gain on Investments:
Net realized gain on investments								8,772
Net change in unrealized appreciation of investments								60,332
Net realized and unrealized gain on investments								69,104
Change in net assets resulting from operations							$	67,949

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

		Six Months Ended (unaudited) 1/31/2007			Period Ended 7/31/2006	1
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	(1,155	)	$	(2,184	)
Net realized gain on investments		8,772			16,974
Net change in unrealized appreciation/depreciation on investments		60,332			5,111
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		67,949			19,901
Distributions to Shareholders:
Distributions from net realized gain on investments
Institutional Shares		(8,652	)		- --
Class A Shares		(8,224	)		- --
Class C Shares		(431	)		- --
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS		(17,307	)		- --
Share Transactions:
Proceeds from sale of shares		412,057			528,722
Net asset value of shares issued to shareholders in payment of distributions declared		16,367			- --
Cost of shares redeemed		(175,834	)		(213,610	)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		252,590			315,112
Change in net assets		303,232			335,013
Net Assets:
Beginning of period		335,013			- --
End of period (including accumulated net investment income (loss) of $(1,155) and $0, respectively)	$	638,245		$	335,013

1 Reflects operations for the period from September 15, 2005 (date of initial public investment) to July 31, 2006.

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

January 31, 2007 (unaudited)

1. ORGANIZATION

Federated MDT Series (the "Trust") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Trust consists of eight portfolios. The financial statements included herein are only those of Federated MDT Mid Cap Growth Fund (the "Fund"), a diversified portfolio. The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held. The Fund offers three classes of shares: Institutional Shares, Class A Shares and Class C Shares. All shares of the Fund have equal rights with respect to voting, except on class-specific matters. The financial highlights of the Class A Shares and Class C Shares are presented separately. The primary investment objective of the Fund is long-term capital appreciation.

MDT Mid Cap Growth Fund (the "Predecessor Fund") was reorganized into the Fund as of the close of business on December 8, 2006. Prior to the reorganization, the Fund had no investment operations. The Fund is the successor to the Predecessor Fund, which commenced operations on September 15, 2005.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with generally accepted accounting principles (GAAP) in the United States of America.

Investment Valuation

Market values of the Fund's portfolio securities are determined as follows:

• for equity securities, according to the last sale price or official closing price reported in the market in which they are primarily traded (either a national securities exchange or the over-the-counter market), if available;
• in the absence of recorded sales for equity securities, according to the mean between the last closing bid and asked prices;
• futures contracts and options are generally valued at market values established by the exchanges on which they are traded at the close of trading on such exchanges. Options traded in the over-the-counter market are generally valued according to the mean between the last bid and the last asked price for the option as provided by an investment dealer or other financial institution that deals in the option. The Board of Trustees (the "Trustees") may determine in good faith that another method of valuing such investments is necessary to appraise their fair market value;
• prices for total return swaps are furnished by an independent pricing service and are based upon a valuation model incorporating underlying reference indexes, interest rates, yield curves and other market data or factors. Prices for credit default swaps are furnished by an independent pricing service and are based upon a valuation model incorporating default probabilities, recovery rates and other market data or factors;
• for mortgage-backed securities, based on the aggregate investment value of the projected cash flows to be generated by the security, as furnished by an independent pricing service;
• for investments in other open-end regulated investment companies, based on net asset value (NAV);
• for other fixed-income securities, according to prices as furnished by an independent pricing service, except that fixed-income securities with remaining maturities of less than 60 days at the time of purchase are valued at amortized cost; and
• for all other securities at fair value as determined in accordance with procedures established by and under the general supervision of the Trustees.

Prices for fixed-income securities furnished by a pricing service may be based on a valuation matrix which incorporates both dealer-supplied valuations and electronic data processing techniques. Such prices (other than mortgage-backed securities) are generally intended to be indicative of the bid prices currently offered to institutional investors for the securities except that prices for corporate fixed-income and asset-backed securities traded in the United States are generally intended to be indicative of the mean between such bid prices and asked prices. The Trustees have approved the use of such pricing services. A number of pricing services are available, and the Fund may use various pricing services or discontinue the use of any pricing service.

Prices provided by independent pricing services may be determined without relying exclusively on quoted prices and may consider institutional trading in similar groups of securities, yield, quality, stability, risk, coupon rate, maturity, type of issue, trading characteristics, and other market data or factors. From time to time, when prices cannot be obtained from an independent pricing service, securities may be valued based on quotes from broker-dealers or other financial institutions that trade the securities.

Trading in foreign securities may be completed at times which vary from the closing of the New York Stock Exchange (NYSE). In computing its NAV, the Fund values foreign securities using the latest closing price on the exchange on which they are traded immediately prior to the closing of the NYSE. Certain foreign currency exchange rates are generally determined at the latest rate prior to the closing of the NYSE. Foreign securities quoted in foreign currencies are translated into U.S. dollars at current rates. Events that affect these values and exchange rates may occur between the times at which they are determined and the closing of the NYSE. If such events materially affect the value of portfolio securities, these securities may be valued at their fair value as determined in good faith by the Trustees, although the actual calculation may be done by others.

Repurchase Agreements

It is the policy of the Fund to require the other party to a repurchase agreement to transfer to the Fund's custodian or sub-custodian eligible securities or cash with a market value (after transaction costs) at least equal to the repurchase price to be paid under the repurchase agreement. The eligible securities are transferred to accounts with the custodian or sub-custodian in which the Fund holds a "securities entitlement" and exercises "control" as those terms are defined in the Uniform Commercial Code. The Fund has established procedures for monitoring the market value of the transferred securities and requiring the transfer of additional eligible securities if necessary to equal at least the repurchase price. These procedures also allow the other party to require securities to be transferred from the account to the extent that their market value exceeds the repurchase price or in exchange for other eligible securities of equivalent market value.

With respect to agreements to repurchase U.S. government securities and cash items, the Fund treats the repurchase agreement as an investment in the underlying securities and not as an obligation of the other party to the repurchase agreement. Other repurchase agreements are treated as obligations of the other party secured by the underlying securities. Nevertheless, the insolvency of the other party or other failure to repurchase the securities may delay the disposition of the underlying securities or cause the Fund to receive less than the full repurchase price. Under the terms of the repurchase agreement, any amounts received by the Fund in excess of the repurchase price and related transaction costs must be remitted to the other party.

The Fund may enter into repurchase agreements in which eligible securities are transferred into joint trading accounts maintained by the custodian or sub-custodian for investment companies and other clients advised by the Fund's adviser and its affiliates. The Fund will participate on a pro rata basis with the other investment companies and clients in its share of the securities transferred under such repurchase agreements and in its share of proceeds from any repurchase or other disposition of such securities.

Investment Income, Gains and Losses, Expenses and Distributions

Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Distributions of net investment income, if any, are declared and paid annually. Non-cash dividends included in dividend income, if any, are recorded at fair value. Investment income, realized and unrealized gains and losses, and certain fund-level expenses are allocated to each class based on relative average daily net assets, except that each class bears certain expenses unique to that class such as distribution and shareholder services fees. Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses.

Premium and Discount Amortization

All premiums and discounts on fixed-income securities are amortized/accreted for financial statement purposes.

Federal Taxes

It is the Fund's policy to comply with the Subchapter M provision of the Internal Revenue Code (the "Code") and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal income tax is necessary.

When-Issued and Delayed Delivery Transactions

The Fund may engage in when-issued or delayed delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated.

Other

Investment transactions are accounted for on a trade date basis. Realized gains and losses from investment transactions are recorded on an identified cost basis.

3. SHARES OF BENEFICIAL INTEREST

The following tables summarize share activity:

	Six Months Ended 1/31/2007					Period Ended 7/31/2006 1
Institutional Shares:	Shares			Amount		Shares			Amount
Shares sold	10,101		$	118,431		31,504		$	316,914
Shares issued to shareholders in payment of distributions declared	738			8,505		- --			- --
Shares redeemed	(3,253	)		(36,014	)	(10,427	)		(115,165	)
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS	7,586		$	90,922		21,077		$	201,749
	Six Months Ended 1/31/2007					Period Ended 7/31/2006 1
Class A Shares:	Shares			Amount		Shares			Amount
Shares sold	24,314		$	269,547		18,783		$	206,180
Shares issued to shareholders in payment of distributions declared	659			7,567		- --			- --
Shares redeemed	(12,201	)		(138,029	)	(9,017	)		(98,445	)
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS	12,772		$	139,085		9,766		$	107,735
	Six Months Ended 1/31/2007					Period Ended 7/31/2006 1
Class C Shares:	Shares			Amount		Shares			Amount
Shares sold	2,147		$	24,079		523		$	5,628
Shares issued to shareholders in payment of distributions declared	26			295		- --			- --
Shares redeemed	(158	)		(1,791	)	- --			- --
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS	2,015		$	22,583		523		$	5,628
NET CHANGE RESULTING FROM SHARE TRANSACTIONS	22,373		$	252,590		31,366		$	315,112

1 Reflects operations for the period from September 15, 2005 (date of initial public investment) to July 31, 2006.

4. FEDERAL TAX INFORMATION

At January 31, 2007, the cost of investments for federal tax purposes was $623,511. The net unrealized appreciation of investments for federal tax purposes was $65,443. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $73,497 and net unrealized depreciation from investments for those securities having an excess of cost over value of $8,054.

5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated MDTA LLC, the Fund's investment adviser (the "Adviser"), receives for its services an annual investment adviser fee equal to 0.90% of the Fund's average daily net assets. Under the investment advisory contract, the Adviser is contractually obligated to waive, to the extent of its adviser fee, the amount, if any, by which the Fund's annual operating expenses exceed the following levels for each Class of the Fund:

Class	Percentage of Average Daily Net Assets of Class
Institutional Shares	1.80%
Class A Shares	2.05%
Class C Shares	2.80%

The Adviser has agreed to keep these contractual limitations in place through December 8, 2008.

In addition, after fulfilling its contractual commitment, the Adviser may voluntarily choose to waive and/or reimburse any additional portion of its fee. The Adviser can modify or terminate this voluntary waiver and/or reimbursement at any time at its sole discretion. For the six months ended January 31, 2007, the Adviser waived $2,187 of its fee and reimbursed $123,833 of other operating expenses.

For a period of three years after the fiscal year in which the Adviser waived or reimbursed Fund expenses, the Adviser may seek reimbursement from the Fund to the extent that the Fund's total annual operating expenses are less than the expense limitation. Due to the reorganization of the Fund, any expenses waived or reimbursed by the Adviser after December 8, 2006 may not be recovered by the Adviser.

Expenses waived/reimbursed by the Fund of $68,395 are subject to potential recovery by the expiration date of July 31, 2009.

Administrative Fee

Federated Administrative Services (FAS), under the Administrative Services Agreement (the "Agreement"), provides the Fund with administrative personnel and services. The fee paid to FAS is based on the average aggregate daily net assets of certain Federated funds as specified below:

Administrative Fee	Average Aggregate Daily Net Assets of the Federated Funds
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

The administrative fee received during any fiscal year shall be at least $150,000 per portfolio and $40,000 per each additional class of Shares. During the period from July 15, 2006 through December 8, 2006, the administrator contractually agreed to waive the portion of its fee which it would otherwise be entitled to receive from the Fund under the Agreement. The level of fees payable by the Fund to FAS for the period will not exceed the level of fees which the Fund would have paid during the period to its previous service provider under its previous administrative services contract. In addition, FAS may voluntarily choose to waive any portion of its fee. FAS can modify or terminate this voluntary waiver at any time at its sole discretion. For the six months ended January 31, 2007, the net fee paid to FAS was 13.046% of average aggregate daily net assets of the Fund.

Distribution Services Fee

The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will compensate Federated Securities Corp. (FSC), the principal distributor, from the daily net assets of the Fund's Class A Shares and Class C Shares to finance activities intended to result in the sale of these shares. The Plan provides that the Fund may incur distribution expenses according to the following schedule annually, to compensate FSC:

Class	Percentage of Average Daily Net Assets of Class
Class A Shares	0.25%
Class C Shares	0.75%

Prior to December 11, 2006, the Fund incurred distribution expenses according to the following schedule annually, to compensate FSC:

Class	Percentage of Average Daily Net Assets of Class
Class A Shares	0.25%
Class C Shares	1.00%

FSC may voluntarily choose to waive any portion of its fee. FSC can modify or terminate this voluntary waiver at any time at its sole discretion. When FSC receives fees, it may pay some or all of them to financial intermediaries whose customers purchase shares. For the six months ended January 31, 2007, FSC did not retain any fees paid by the Fund.

Sales Charges

For the six months ended January 31, 2007, FSC, the principal distributor, retained $205 in sales charges from the sale of Class A Shares. See "What Do Shares Cost?" in the Prospectus.

Shareholder Services Fee

Effective December 11, 2006, the Fund may pay fees (Service Fees) up to 0.25% of the average daily net assets of the Fund's Class A Shares and Class C Shares to financial intermediaries or to Federated Shareholder Services Company (FSSC) for providing services to shareholders and maintaining shareholder accounts. FSSC or these financial intermediaries may voluntarily choose to waive a portion of their fee. In addition, FSSC may voluntarily reimburse the Fund for shareholder services fees. This voluntary waiver and/or reimbursement can be modified or terminated at any time. For the six months ended January 31, 2007, FSSC did not receive any fees paid by the Fund.

General

Certain of the Officers and Trustees of the Trust are Officers and Directors or Trustees of the above companies.

6. INVESTMENT TRANSACTIONS

Purchases and sales of investments, excluding long-term U.S. government securities and short-term obligations, for the six months ended January 31, 2007, were as follows:

Purchases	$	701,578
Sales	$	414,893

7. LINE OF CREDIT

The Trust entered into a $150,000,000 unsecured, uncommitted revolving line of credit (LOC) agreement with PNC Bank. The LOC was made available for extraordinary or emergency purposes, primarily for financing redemption payments. Borrowings are charged interest at a rate of 0.65% over the federal funds rate. As of January 31, 2007, there were no outstanding loans. During the six months ended January 31, 2007, the Fund did not utilize the LOC.

8. LEGAL PROCEEDINGS

Beginning in October 2003, Federated Investors, Inc. and various subsidiaries thereof (including the advisers and distributor for various investment companies, collectively, "Federated"), along with various investment companies sponsored by Federated ("Funds") were named as defendants in several class action lawsuits now pending in the United States District Court for the District of Maryland. The lawsuits were purportedly filed on behalf of people who purchased, owned and/or redeemed shares of Federated-sponsored mutual funds during specified periods beginning November 1, 1998. The suits are generally similar in alleging that Federated engaged in illegal and improper trading practices including market timing and late trading in concert with certain institutional traders, which allegedly caused financial injury to the mutual fund shareholders. These lawsuits began to be filed shortly after Federated's first public announcement that it had received requests for information on shareholder trading activities in the Funds from the Securities and Exchange Commission ("SEC"), the Office of the New York State Attorney General ("NYAG"), and other authorities. In that regard, on November 28, 2005, Federated announced that it had reached final settlements with the SEC and the NYAG with respect to those matters. As Federated previously reported in 2004, it has already paid approximately $8.0 million to certain funds as determined by an independent consultant. As part of these settlements, Federated agreed to pay for the benefit of fund shareholders additional disgorgement and a civil money penalty in the aggregate amount of an additional $72 million. Federated and various Funds have also been named as defendants in several additional lawsuits, the majority of which are now pending in the United States District Court for the Western District of Pennsylvania, alleging, among other things, excessive advisory and Rule 12b-1 fees. The Board of the Funds has retained the law firm of Dickstein Shapiro LLP to represent the Funds in these lawsuits. Federated and the Funds, and their respective counsel, are reviewing the allegations and intend to defend this litigation. Additional lawsuits based upon similar allegations may be filed in the future. The potential impact of these lawsuits, all of which seek unquantified damages, attorneys' fees and expenses, and future potential similar suits is uncertain. Although we do not believe that these lawsuits will have a material adverse effect on the Funds, there can be no assurance that these suits, the ongoing adverse publicity and/or other developments resulting from the regulatory investigations will not result in increased Fund redemptions, reduced sales of Fund shares, or other adverse consequences for the Funds.

9. RECENT ACCOUNTING PRONOUNCEMENTS

In July 2006, the Financial Accounting Standards Board (FASB) released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" (FIN 48). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax benefits of positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax expense in the current year. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years of the Fund no later than January 30, 2008. At this time, management is evaluating the implications of FIN 48 and its impact in the financial statements has not yet been determined.

In addition, in September 2006, FASB released Statement on Financial Accounting Standards No. 157, "Fair Value Measurements" (FAS 157) which is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of FAS 157 will have on the Funds' financial statement disclosures.

Evaluation and Approval of Advisory Contract

FEDERATED MDT MID CAP GROWTH FUND (THE "FUND")

The Fund's Board reviewed the Fund's investment advisory contract at meetings held in May and June 2006. The Board's decision to approve the contract reflects the exercise of its business judgment on whether to authorize the creation and offering of this new investment vehicle, as proposed by, and based on information provided by, the Federated organization, and based on Federated's recommendation to go forward with establishment of the Fund.

Federated proposed the creation of the Fund in connection with its acquisition of MDTA LLC (the "Acquisition"), the investment adviser to the MDT Mid Cap Growth Fund (the "Predecessor Fund"). As part of that transaction, Federated proposed that the Predecessor Fund be reorganized with and into the Fund in a tax-free reorganization (the "Proposed Reorganization"), which would provide shareholders of the Predecessor Fund the opportunity to become shareholders of a fund with substantially similar investment objectives and policies and the same portfolio manager(s) as the Predecessor Fund, but with sales, distribution and other shareholder services offered by the funds managed and distributed by affiliates of Federated.

Prior to the meeting, the Adviser had recommended that the Federated Funds appoint a Senior Officer, whose duties include specified responsibilities relating to the process by which advisory fees are to be charged to a Federated Fund. The Senior Officer appointed by the Funds has the authority to retain consultants, experts, or staff as may be reasonably necessary to assist in the performance of his duties, reports directly to the Board, and may be terminated only with the approval of a majority of the independent members of the Board. The Senior Officer prepared and furnished to the Board an independent written evaluation that covered topics discussed below, which the Board considered, along with other information, in deciding to approve the advisory contract.

The Board also considered the anticipated compensation and benefits to be received by the Adviser. This includes fees to be received for services provided to the Fund by other entities in the Federated organization and research services that may be received by the Adviser from brokers that execute fund trades, as well as advisory fees. The Board is also familiar with judicial decisions concerning allegedly excessive investment advisory fees which have indicated that the following factors may be relevant to an Adviser's fiduciary duty with respect to its receipt of compensation from a fund: the nature and quality of the services provided by the Adviser, including the performance of the Fund; the Adviser's cost of providing the services; the extent to which the Adviser may realize "economies of scale" as the Fund grows larger; any indirect benefits that may accrue to the Adviser and its affiliates as a result of the Adviser's relationship with the Fund; performance and expenses of comparable funds; and the extent to which the independent Board members are fully informed about all facts the Board deems relevant bearing on the Adviser's services and fees. The Board further considered management fees (including any components thereof) charged to institutional and other clients of the Adviser for like services and costs to the Adviser and its affiliates of supplying services pursuant to the management fee agreements, excluding any intra-corporate profit and profit margins of the Adviser and its affiliates from supplying such services. The Board was aware of these considerations and was guided by them in its review of the Fund's advisory contract to the extent they are appropriate and relevant, as discussed further below.

The Board considered and weighed these circumstances in light of its substantial accumulated experience in working with Federated on matters relating to other Federated funds, and was assisted in its deliberations by the advice of independent legal counsel. The Board's consideration of the advisory contract included review of the Senior Officer's evaluation, accompanying data and additional reports covering such matters as: the Adviser's investment philosophy, revenue, profitability, personnel and processes; investment and operating strategies; the Fund's investment objectives; the Fund's expenses (including the advisory fee itself and the overall expense structure of the Fund, both in absolute terms and relative to similar and/or competing funds, with due regard for contractual or voluntary expense limitations); the nature, quality and extent of the advisory and other services to be provided to the Fund by the Adviser and its affiliates; the preferences and expectations of Fund shareholders and their relative sophistication; the continuing state of competition in the mutual fund industry and market practices; the range of comparable fees for similar funds in the mutual fund industry; the Fund's relationship to the Federated family of funds which include a comprehensive array of funds with different investment objectives, policies and strategies which are available for exchange without the incurrence of additional sales charges; compliance and audit reports concerning the Federated Funds and the Federated companies that service them (including communications from regulatory agencies), as well as Federated's responses to any issues raised therein; and relevant developments in the mutual fund industry and how the Federated Funds and/or Federated are responding to them. The Board's evaluation process is evolutionary. The criteria considered and the emphasis placed on relevant criteria change in recognition of changing circumstances in the mutual fund market-place.

With respect to the Fund's expenses in particular, the Board has found the use of comparisons to other mutual funds with comparable investment programs to be particularly useful, given the high degree of competition in the mutual fund business. The Board focused on comparisons with other similar mutual funds more heavily than non-mutual fund products or services because, simply put, they are more relevant. For example, other mutual funds are the products most like the Fund, they are readily available to Fund shareholders as alternative investment vehicles, and they are the type of investment vehicle in fact chosen and maintained by the Fund's anticipated investors. The range of their fees and expenses therefore appears to be a generally reliable indication of what consumers have found to be reasonable in the precise marketplace in which the Fund will compete. In this regard, the Senior Officer also reviewed Federated's fees for providing advisory services to products outside the Federated family of funds (e.g., institutional and separate accounts). He concluded that mutual funds and institutional accounts are inherently different products. Those differences included, but are not limited to targeting different investors, being subject to different laws and regulations, different legal structure, distribution costs, average account size and portfolio management techniques made necessary by different cash flows. The Senior Officer did not consider these fee schedules to be significant in determining the appropriateness of mutual fund advisory contracts.

The Senior Officer reviewed reports compiled by Federated and directed the preparation of reports regarding the performance of, and fees charged by other mutual funds, noting his view that comparisons to fund peer groups is of significance in judging the reasonableness of proposed fees.

Because the Fund will employ the same portfolio managers and investment techniques, the Board reviewed the Predecessor Fund's performance compared to its benchmark as an indicator of how the Adviser will execute the Fund's investment program, which in turn assisted the Board in reaching a conclusion that the nature, extent, and quality of the Adviser's investment management services were such as to warrant approval of the advisory contract. The Board noted that the Predecessor Fund and/or accounts managed by MDTA LLC with substantially similar investment objectives and policies underperformed its relevant benchmark on a gross basis for the one-year period and outperformed its relevant benchmark on a gross basis for the three-year period reviewed. The Board determined that reviewing performance on a gross basis was appropriate in this instance because the fee structure for separately managed accounts is not comparable for the Fund as discussed above.

The Senior Officer noted that the Fund's quantitative focus made it difficult to compare its fees and expenses to other peers, which varied widely in their complexity. He observed that the management of the Fund is among the more complex, relative to its peers and, consequently, that the advisory fee and projected net total expenses are at the high end compared to such peers. The Board reviewed the proposed fees and other expenses of the Fund with the Adviser and was satisfied that the proposed overall expense structure of the Fund appeared competitive. The Board will continue to monitor advisory fees and other expenses borne by the Fund. No changes were recommended to, and no objection was raised to the proposed advisory contract, and the Senior Officer noted that Federated proposed to provide appropriate administrative services to the Fund for the anticipated fees. The Board concluded that the nature, quality and scope of services to be provided to the Fund by the Adviser and its affiliates were satisfactory.

The Board also considered possible indirect benefits that may accrue to the Adviser and its affiliates as a result of the Acquisition. Other indirect benefits that may accrue to the Adviser and its affiliates as a result of the Adviser's relationship with the Fund are essentially impossible to apply before the Fund has experienced any meaningful operating history. Nevertheless, in connection with the Board's governance of other Federated funds, it should be noted that the Board regularly receives financial information about Federated, including reports on the compensation and benefits Federated derives from its relationships with the other Federated funds. These reports cover not only the fees under the advisory contracts, but also fees received by Federated's subsidiaries for providing other services to the Federated funds under separate contracts (e.g., for serving as the Federated funds' administrator). The reports also discuss any indirect benefit Federated may derive from its receipt of research services from brokers who execute Federated fund trades, as well as waivers of fees and/or reimbursements of expenses. In order for a fund to be competitive in the marketplace, Federated and its affiliates frequently waive fees and/or reimburse expenses and have indicated to the Board their intention to do so in the future, where appropriate. It was noted in this regard that the Adviser has agreed to limit the expenses of each class of the Fund at specified amounts for a two year period commencing on the date the Proposed Reorganization is consummated.

Federated furnished reports, requested by the Senior Officer, that made estimates of the allocation of expenses on a fund by fund basis, using allocation methodologies specified by the Senior Officer. The Senior Officer noted that, although they may apply consistent allocation processes, the inherent difficulties in allocating costs and the lack of consensus on how to allocate those costs causes such allocation reports to be of questionable value. The allocation reports were considered in the analysis by the Board but were determined to be of limited use.

The Board also reviewed profitability information for Federated and other publicly held fund management companies, provided by the Senior Officer, who noted the limited availability of such information, and concluded that Federated's profit margins did not appear to be excessive.

The Senior Officer's evaluation also discussed the notion of possible realization of "economies of scale" as a fund grows larger. The Board considered in this regard that the Adviser has made significant additional investments in the portfolio management and distribution efforts supporting all of the Federated Funds and that the benefits of any economies, should they exist, were likely to be enjoyed by the fund complex as a whole. Finally, the Board also noted the absence of any applicable regulatory or industry guidelines on this subject, which is compounded by the lack of any common industry practice or general pattern with respect to structuring fund advisory fees with "breakpoints" that serve to reduce the fee as the fund attains a certain size. The Senior Officer did not recommend institution of breakpoints in pricing Federated's fund advisory services at this time.

The Board based its decision to approve the advisory contract on the totality of the circumstances and relevant factors, and with a view to past and future long-term considerations. As noted, not all of the factors and considerations identified above were relevant to the Fund, nor does the Board consider any one of them to be determinative. With respect to the factors that are relevant, the Board's decision to approve the contract reflects its determination that, based upon the information requested and supplied, Federated's proposal to establish and manage the Fund, and its past performance and actions in providing services to other mutual funds, provide a satisfactory basis to support the business decision to approve the proposed arrangements.

Voting Proxies on Fund Portfolio Securities

A description of the policies and procedures that the Fund uses to determine how to vote proxies, if any, relating to securities held in the Fund's portfolio is available, without charge and upon request, by calling 1-800-341-7400. A report on "Form N-PX" of how the Fund voted any such proxies during the most recent 12-month period ended June 30 is available through Federated's website. Go to FederatedInvestors.com, select "Products," select the "Prospectuses and Regulatory Reports" link, then select the Fund to access the link to Form N-PX. This information is also available from the EDGAR database on the SEC's website at www.sec.gov.

Quarterly Portfolio Schedule

The Fund files with the SEC a complete schedule of its portfolio holdings, as of the close of the first and third quarters of its fiscal year, on "Form N-Q." These filings are available on the SEC's website at www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. (Call 1-800-SEC-0330 for information on the operation of the Public Reference Room.) You may also access this information from the "Products" section of the Federated Investors website at FederatedInvestors.com by clicking on "Portfolio Holdings" and selecting the name of the Fund, or by selecting the name of the Fund and clicking on "Portfolio Holdings." You must register on the website the first time you wish to access this information.

Mutual funds are not bank deposits or obligations, are not guaranteed by any bank, and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other government agency. Investment in mutual funds involves investment risk, including the possible loss of principal.

This report is authorized for distribution to prospective investors only when preceded or accompanied by the Fund's prospectus, which contains facts concerning its objective and policies, management fees, expenses, and other information.

IMPORTANT NOTICE ABOUT FUND DOCUMENT DELIVERY

In an effort to reduce costs and avoid duplicate mailings, the Fund(s) intend to deliver a single copy of certain documents to each household in which more than one shareholder of the Fund(s) resides (so-called "householding"), as permitted by applicable rules. The Fund's "householding" program covers its/their Prospectus and Statement of Additional Information, and supplements to each, as well as Semi-Annual and Annual Shareholder Reports and any Proxies or information statements. Shareholders must give their written consent to participate in the "householding" program. The Fund is also permitted to treat a shareholder as having given consent ("implied consent") if (i) shareholders with the same last name, or believed to be members of the same family, reside at the same street address or receive mail at the same post office box, (ii) the Fund gives notice of its intent to "household" at least sixty (60) days before it begins "householding" and (iii) none of the shareholders in the household have notified the Fund(s) or their agent of the desire to "opt out" of "householding." Shareholders who have granted written consent, or have been deemed to have granted implied consent, can revoke that consent and opt out of "householding" at any time: shareholders who purchased shares through an intermediary should contact their representative; other shareholders may call the Fund at 1-800-341-7400.

Federated Securities Corp., Distributor

Cusip 31421R858

36360 (3/07)

Federated is a registered mark of Federated Investors, Inc. 2007 (c)Federated Investors, Inc.

Federated
World-Class Investment Manager

Federated MDT Small Cap Core Fund

A Portfolio of Federated MDT Series

SEMI-ANNUAL SHAREHOLDER REPORT

January 31, 2007

Class A Shares
Class C Shares

FINANCIAL HIGHLIGHTS
SHAREHOLDER EXPENSE EXAMPLE
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
PORTFOLIO OF INVESTMENTS
STATEMENT OF ASSETS AND LIABILITIES
STATEMENT OF OPERATIONS
STATEMENT OF CHANGES IN NET ASSETS
NOTES TO FINANCIAL STATEMENTS
EVALUATION AND APPROVAL OF ADVISORY CONTRACT
VOTING PROXIES ON FUND PORTFOLIO SECURITIES
QUARTERLY PORTFOLIO SCHEDULE

Not FDIC Insured * May Lose Value * No Bank Guarantee

Financial Highlights - Class A Shares

(For a Share Outstanding Throughout Each Period)

	Six Months Ended (unaudited) 1/31/2007	1	Period Ended 7/31/2006	2
Net Asset Value, Beginning of Period	$11.11		$10.00
Income From Investment Operations:
Net investment income (loss)	(0.04	) 3	(0.13	) 3
Net realized and unrealized gain on investments	1.52		1.24
TOTAL FROM INVESTMENT OPERATIONS	1.48		1.11
Net Asset Value, End of Period	$12.59		$11.11
Total Return 4	13.32	%	11.10	%
Ratios to Average Net Assets:
Net expenses	1.75	% 5	2.01	% 5
Net investment income (loss)	(0.75	)% 5	(1.16	)% 5
Expense waiver/reimbursement 6	12.39	% 5	9.41	% 5
Supplemental Data:
Net assets, end of period (000 omitted)	$1,085		$324
Portfolio turnover	121	%	209	%

1 The MDT Small Cap Core Fund (the "Predecessor Fund") was reorganized into Federated MDT Small Cap Core Fund (the "Fund") as of the close of business on December 8, 2006. Prior to the reorganization, the Fund had no investment operations. The Fund is the successor to the Predecessor Fund. The performance information and financial information presented incorporates the operations of the Predecessor Fund, which, as a result of the reorganization, are the Fund's operations.

2 Reflects operations for the period from September 15, 2005 (date of initial public investment) to July 31, 2006.

3 Per share numbers have been calculated using the average shares method.

4 Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. Total returns for periods of less than one year are not annualized.

5 Computed on an annualized basis.

6 This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above.

See Notes which are an integral part of the Financial Statements

Financial Highlights - Class C Shares

(For a Share Outstanding Throughout Each Period)

	Six Months Ended (unaudited) 1/31/2007	1	Period Ended 7/31/2006	2
Net Asset Value, Beginning of Period	$11.05		$10.00
Income From Investment Operations:
Net investment income (loss)	(0.09	) 3	(0.23	) 3
Net realized and unrealized gain on investments	1.51		1.28
TOTAL FROM INVESTMENT OPERATIONS	1.42		1.05
Net Asset Value, End of Period	$12.47		$11.05
Total Return 4	12.85	%	10.50	%
Ratios to Average Net Assets:
Net expenses	2.50	% 5	2.76	% 5
Net investment income (loss)	(1.50	)% 5	(1.91	)% 5
Expense waiver/reimbursement 6	12.73	% 5	9.41	% 5
Supplemental Data:
Net assets, end of period (000 omitted)	$2,121		$1,505
Portfolio turnover	121	%	209	%

1 The Predecessor Fund was reorganized into the Fund as of the close of business on December 8, 2006. Prior to the reorganization, the Fund had no investment operations. The Fund is the successor to the Predecessor Fund. The performance information and financial information presented incorporates the operations of the Predecessor Fund, which, as a result of the reorganization, are the Fund's operations.

2 Reflects operations for the period from September 15, 2005 (date of initial public investment) to July 31, 2006.

3 Per share numbers have been calculated using the average shares method.

4 Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. Total returns for periods of less than one year are not annualized.

5 Computed on an annualized basis.

6 This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above.

See Notes which are an integral part of the Financial Statements

Shareholder Expense Example

As a shareholder of the Fund, you incur two types of cost: (1) transaction costs, including sales charges (loads) on purchase or redemption payments; and (2) ongoing costs, including management fees; to the extent applicable, distribution (12b-1) fees and/or shareholder services fees and other Fund expenses. This Example is intended to help you to understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. It is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from August 1, 2006 to January 31, 2007.

ACTUAL EXPENSES

The first section of the table below provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you incurred over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled "Expenses Paid During Period" to estimate the expenses attributable to your investment during this period.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

The second section of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. Thus, you should not use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are required to be provided to enable you to compare the ongoing costs of investing in the Fund with other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase or redemption payments. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.

	Beginning Account Value 8/1/2006	Ending Account Value 1/31/2007	Expenses Paid During Period 1
Actual:
Class A Shares	$1,000	$1,133.20	$ 9.41
Class C Shares	$1,000	$1,128.50	$13.41
Hypothetical (assuming a 5% return before expenses):
Class A Shares	$1,000	$1,016.38	$ 8.89
Class C Shares	$1,000	$1,012.60	$12.68

1 Expenses are equal to the Fund's annualized net expense ratios, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). The annualized net expense ratios are as follows:

Class A Shares	1.75%
Class C Shares	2.50%

Portfolio of Investments Summary Table

At January 31, 2007, the Fund's industry composition ¹ was as follows:

Industry	Percentage of Total Net Assets
Specialty Retail	9.7	%
Insurance	7.2	%
Electronic Equipment & Instruments	6.5	%
Commercial Banks	5.5	%
Textiles, Apparel & Luxury Goods	4.8	%
Software	4.4	%
Metals & Mining	4.3	%
Commercial Services & Supplies	4.1	%
Machinery	3.6	%
Chemicals	3.5	%
Health Care Providers & Services	3.5	%
Thrifts & Mortgage Finance	3.5	%
Energy Equipment & Services	3.1	%
Marine	2.5	%
Containers & Packaging	2.2	%
Household Durables	2.1	%
Personal Products	2.0	%
Capital Markets	1.8	%
Communications Equipment	1.8	%
Leisure Equipment & Products	1.8	%
Electrical Equipment	1.7	%
Consumer Finance	1.6	%
Internet & Catalog Retail	1.5	%
Internet Software & Services	1.5	%
Pharmaceuticals	1.5	%
Trading Companies & Distributors	1.5	%
Construction Materials	1.4	%
Health Care Equipment & Supplies	1.3	%
Hotels, Restaurants & Leisure	1.3	%
Air Freight & Logistics	1.1	%
Semiconductors & Semiconductor Equipment	1.1	%
Aerospace & Defense	1.0	%
Computers & Peripherals	1.0	%
Other 2	5.3	%
Cash Equivalents 3	1.3	%
Other Assets and Liabilities--Net 4	(2.0	)%
TOTAL	100.0	%

1 Except for Cash Equivalents and Other Assets and Liabilities, industry classifications are based upon, and individual portfolio securities are assigned to, the classifications of the Global Industry Classification Standard (GICS) except that the adviser assigns a classification to securities not classified by the GICS and to securities for which the adviser does not have access to the classification made by the GICS.

2 For purposes of this table, industry classifications which constitute less than 1.0% of the Fund's total net assets have been aggregated under the designation "Other."

3 Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements.

4 Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities.

Portfolio of Investments

January 31, 2007 (unaudited)

Shares					Value
			COMMON STOCKS--100.7%
			Aerospace & Defense--1.0%
	194	1	Esterline Technologies Corp.	$	7,754
	766		Triumph Group, Inc.		43,049
			TOTAL		50,803
			Air Freight & Logistics--1.1%
	532	1	Atlas Air Worldwide Holdings, Inc.		25,509
	1,035	1	Hub Group, Inc., Class A		30,905
			TOTAL		56,414
			Auto Components--0.6%
	472	1	Aftermarket Technology Co.		10,176
	520	1	Lear Corp.		17,607
			TOTAL		27,783
			Beverages--0.2%
	504		MGP Ingredients, Inc.		11,123
			Biotechnology--0.2%
	151	1	United Therapeutics Corp.		8,094
			Building Products--0.9%
	997		Apogee Enterprises, Inc.		18,973
	144	1	NCI Building System, Inc.		8,197
	315		Universal Forest Products, Inc.		15,404
			TOTAL		42,574
			Capital Markets--1.8%
	1,271		Cohen & Steers, Inc.		61,961
	578	1	Knight Capital Group, Inc., Class A		10,444
	272	1	Penson Worldwide, Inc.		7,290
	154	1	Piper Jaffray Cos., Inc.		10,617
			TOTAL		90,312
			Chemicals--3.5%
	471		CF Industries Holdings, Inc.		14,366
	280		FMC Corp.		21,798
	1,410		Fuller (H.B.) Co.		36,477
	3,882	1	Hercules, Inc.		76,126
	574		Koppers Holdings, Inc.		14,585
Shares					Value
			COMMON STOCKS--continued
			Chemicals--continued
	86		Minerals Technologies, Inc.	$	4,994
	209		Spartech Corp.		5,856
			TOTAL		174,202
			Commercial Banks--5.5%
	1,001		CVB Financial Corp.		12,506
	1,163		Central Pacific Financial Corp.		45,450
	814		Citizens Banking Corp.		19,951
	313		City Holding Co.		12,551
	216		Community Banks, Inc.		5,489
	74		Community Trust Bancorp, Inc.		2,893
	897		FNB Corp.		15,778
	497		Independent Bank Corp.- Michigan		10,969
	211		Integra Bank Corp.		5,227
	197		NBT Bancorp, Inc.		4,886
	258		Old National Bancorp		4,835
	984		Pacific Capital Bancorp		31,449
	197		Park National Corp.		19,410
	40		Preferred Bank Los Angeles, CA		2,615
	497		Provident Bankshares Corp.		17,614
	301		S & T Bancorp, Inc.		10,433
	248		Sterling Financial Corp.		5,669
	146		Taylor Capital Group, Inc.		5,544
	733		Trustmark Corp.		21,594
	446		United Bankshares, Inc.		16,288
	42		WestAmerica Bancorp.		2,094
			TOTAL		273,245
			Commercial Services & Supplies--4.1%
	115		Administaff, Inc.		4,708
	520	1	Consolidated Graphics, Inc.		32,240
	457		Deluxe Corp.		13,673
	389	1	Huron Consulting Group, Inc.		20,170
	1,161		Knoll, Inc.		25,530
	296	1	Layne Christensen Co.		10,369
	279		Team, Inc.		9,528
	2,111	1	TeleTech Holdings, Inc.		56,891
	836	1	Volt Information Science, Inc.		29,543
			TOTAL		202,652
Shares					Value
			COMMON STOCKS--continued
			Communications Equipment--1.8%
	478	1	Anaren Microwave, Inc.	$	7,887
	800	1	Arris Group, Inc.		11,376
	1,380	1	C-COR Electronics, Inc.		18,892
	853	1	Comtech Telecommunications Corp.		30,708
	411	1	Oplink Communications, Inc.		7,801
	624		Plantronics, Inc.		12,293
			TOTAL		88,957
			Computers & Peripherals--1.0%
	2,083	1	Brocade Communications Systems, Inc.		17,872
	897	1	SimpleTech, Inc.		9,813
	837	1	Synaptics, Inc.		22,649
			TOTAL		50,334
			Construction & Engineering--0.7%
	1,101	1	Perini Corp.		33,272
			Construction Materials--1.4%
	197	1	Headwaters, Inc.		4,476
	858		Texas Industries, Inc.		62,994
			TOTAL		67,470
			Consumer Finance--1.6%
	867		Advanta Corp., Class B		40,237
	862	1	Ezcorp, Inc., Class A		14,421
	1,061	1	First Cash Financial Services, Inc.		24,912
			TOTAL		79,570
			Containers & Packaging--2.2%
	613		Greif Brothers Corp., Class A		70,072
	1,172		Rock-Tenn Co., Class A		38,348
			TOTAL		108,420
			Distributors--0.1%
	356	1	Audiovox Corp., Class A		5,490
			Diversified Consumer Services--0.4%
	376	1	Vertrue, Inc.		17,480
			Diversified Telecommunication Services--0.5%
	1,567		Alaska Communications Systems Holdings, Inc.		25,323
			Electrical Equipment--1.7%
	902	1	II-VI, Inc.		27,096
	941		Regal Beloit Corp.		47,351
	209		Woodward Governor Co.		8,745
			TOTAL		83,192
Shares					Value
			COMMON STOCKS--continued
			Electronic Equipment & Instruments--6.5%
	1,016	1	Anixter International, Inc.	$	56,154
	2,300	1	Benchmark Electronics, Inc.		52,095
	370	1	Checkpoint Systems, Inc.		6,952
	1,581		Daktronics, Inc.		54,655
	484	1	Faro Technologies, Inc.		11,994
	1,322	1	Insight Enterprises, Inc.		26,876
	97	1	Itron, Inc.		5,591
	442		Keithley Instruments, Inc.		6,219
	1,084	1	Newport Corp.		21,637
	184		Park Electrochemical Corp.		4,911
	1,634	1	Smart Modular Technologies (WWH), Inc.		20,294
	814	1	Synnex Corp.		15,629
	1,590		Technitrol, Inc.		35,012
	389	1	Zygo Corp.		5,971
			TOTAL		323,990
			Energy Equipment & Services--3.1%
	623	1	Hornbeck Offshore Services, Inc.		17,145
	92	1	Hydril Co.		7,277
	1,529	1	Input/Output, Inc.		20,932
	410		Lufkin Industries, Inc.		24,539
	749	1	Oceaneering International, Inc.		29,563
	450	1	Oil States International, Inc.		12,969
	741	1	Superior Energy Services, Inc.		22,467
	629	1	Trico Marine Services, Inc.		20,461
			TOTAL		155,353
			Food & Staples Retailing--0.2%
	136		Longs Drug Stores Corp.		5,848
	114	1	The Pantry, Inc.		5,564
			TOTAL		11,412
			Gas Utilities--0.2%
	291		Laclede Group, Inc.		9,452
			Health Care Equipment & Supplies--1.3%
	240	1	Cholestech Corp.		4,039
	558	1	Immucor, Inc.		17,599
	287	1	Palomar Medical Technologies, Inc.		14,281
	424	1	Zoll Medical Corp.		26,593
			TOTAL		62,512
Shares					Value
			COMMON STOCKS--continued
			Health Care Providers & Services--3.5%
	1,475	1	Amerigroup Corp.	$	53,484
	1,610	1	Centene Corp.		40,121
	405	1	Corvel Corp.		19,088
	1,534	1	Healthspring, Inc.		30,174
	667	1	Nighthawk Radiology Holdings, Inc.		16,815
	309	1	Psychiatric Solutions, Inc.		12,032
			TOTAL		171,714
			Hotels, Restaurants & Leisure--1.3%
	313	1	Buffalo Wild Wings, Inc.		15,925
	288	1	Life Time Fitness, Inc.		15,610
	894		Marcus Corp.		21,376
	271		Speedway Motorsports, Inc.		10,455
			TOTAL		63,366
			Household Durables--2.1%
	268	1	Directed Electronics, Inc.		2,680
	194		Ethan Allen Interiors, Inc.		7,308
	557	1	Helen of Troy Ltd.		13,429
	2,207		Tempur-Pedic International, Inc.		52,527
	1,129		Tupperware Brands Corp.		26,340
			TOTAL		102,284
			IT Services--0.3%
	252	1	Covansys Corp.		5,688
	927		InfoUSA, Inc.		11,133
			TOTAL		16,821
			Insurance--7.2%
	304	1	American Physicians Capital, Inc.		11,765
	1,078	1	CNA Surety Corp.		22,908
	444		Delphi Financial Group, Inc., Class A		17,511
	436		EMC Insurance Group, Inc.		14,663
	220		FBL Financial Group, Inc., Class A		8,538
	410	1	FPIC Insurance Group, Inc.		17,995
	339		Harleysville Group, Inc.		11,526
	1,247		Horace Mann Educators Corp.		24,728
	187		Infinity Property & Casualty		8,946
	231		Midland Co.		10,621
	505		National Interstate Corp.		13,600
	183		Nymagic, Inc.		7,454
	678		Odyssey Re Holdings Corp.		26,747
Shares					Value
			COMMON STOCKS--continued
			Insurance--continued
	833		Ohio Casualty Corp.	$	24,607
	114	1	ProAssurance Corp.		5,790
	288		RLI Corp.		15,938
	562		Safety Insurance Group, Inc.		27,448
	664		Selective Insurance Group, Inc.		34,163
	296		State Auto Financial Corp.		9,525
	582		Stewart Information Services Corp.		24,467
	346		Zenith National Insurance Corp.		15,812
			TOTAL		354,752
			Internet & Catalog Retail--1.5%
	1,726	1	Priceline.com, Inc.		73,562
			Internet Software & Services--1.5%
	1,235	1	Interwoven, Inc.		19,390
	165	1	Travelzoo, Inc.		5,042
	677		United Online, Inc.		9,505
	1,031	1	ValueClick, Inc.		26,311
	921	1	Vignette Corp.		16,504
			TOTAL		76,752
			Leisure Equipment & Products--1.8%
	2,982	1	Marvel Entertainment, Inc.		83,257
	457	1	Smith & Wesson Holding Corp.		5,073
			TOTAL		88,330
			Machinery--3.6%
	93		Actuant Corp., Class A		4,630
	558	1	Astec Industries, Inc.		20,094
	1,256		Briggs & Stratton Corp.		37,228
	545		Cascade Corp.		29,277
	1,031	1	Gardner Denver, Inc.		39,745
	481		Gorman Rupp Co.		19,432
	176		Hurco Co., Inc.		5,827
	154		Lincoln Electric Holdings		9,359
	42	1	Middleby Corp.		4,695
	143		Nordson Corp.		7,396
			TOTAL		177,683
			Marine--2.5%
	1,156	1	American Commercial Lines, Inc.		81,429
	1,450		Horizon Lines, Inc.		43,138
			TOTAL		124,567
Shares					Value
			COMMON STOCKS--continued
			Media--0.5%
	121		Arbitron, Inc.	$	5,611
	493		Media General, Inc., Class A		19,725
			TOTAL		25,336
			Metals & Mining--4.3%
	365	1	AK Steel Holding Corp.		7,680
	195		AMCOL International Corp.		5,862
	748	1	Brush Engineered Materials, Inc.		24,751
	1,807		Chaparral Steel Co.		92,663
	458		Cleveland Cliffs, Inc.		25,034
	679		Commercial Metals Corp.		18,408
	289		Metal Management, Inc.		11,861
	244	1	RTI International Metals		19,947
	193		Ryerson, Inc.		6,054
			TOTAL		212,260
			Oil, Gas & Consumable Fuels--0.2%
	217	1	General Maritime Corp.		7,918
	185		OMI Corp.		4,081
			TOTAL		11,999
			Personal Products--2.0%
	1,624	1	NBTY, Inc.		84,204
	1,032	1	Prestige Brands Holdings, Inc.		13,117
			TOTAL		97,321
			Pharmaceuticals--1.5%
	1,151		Medicis Pharmaceutical Corp., Class A		43,657
	1,330	1	Sciele Pharma, Inc.		31,588
			TOTAL		75,245
			Road & Rail--0.3%
	1	1	Celadon Group, Inc.		17
	715		Werner Enterprises, Inc.		13,592
			TOTAL		13,609
			Semiconductors & Semiconductor Equipment--1.1%
	717	1	Actel Corp.		12,806
	786	1	Atheros Communications		18,675
	3,655	1	Skyworks Solutions, Inc.		24,013
			TOTAL		55,494
Shares					Value
			COMMON STOCKS--continued
			Software--4.4%
	506	1	Hyperion Solutions Corp.	$	21,363
	2,067	1	Mentor Graphics Corp.		38,446
	826	1	Parametric Technology Corp.		16,371
	449		Quality Systems, Inc.		19,051
	2,688	1	THQ, Inc.		81,446
	3,754	1	Tibco Software, Inc.		34,837
	392	1	VASCO Data Security International, Inc.		5,762
			TOTAL		217,276
			Specialty Retail--9.7%
	616		Asbury Automotive Group, Inc.		15,067
	1,284		Buckle, Inc.		43,117
	322	1	Casual Male Retail Group, Inc.		4,019
	108	1	Children's Place Retail Stores, Inc.		5,855
	818	1	DSW, Inc., Class A		32,794
	1,010	1	Dick's Sporting Goods, Inc.		52,005
	229	1	Dress Barn, Inc.		5,146
	126	1	Genesco, Inc.		4,963
	797		Group 1 Automotive, Inc.		42,241
	911	1	Guess ?, Inc.		65,692
	1,412	1	Gymboree Corp.		61,126
	1,250	1	Hibbett Sporting Goods, Inc.		40,138
	314		Lithia Motors, Inc., Class A		9,024
	1,883	1	Rent-A-Center, Inc.		55,473
	169		Sonic Automotive, Inc., Class A		5,298
	1,459	1	Zale Corp.		40,152
			TOTAL		482,110
			Textiles, Apparel & Luxury Goods--4.8%
	1,324		Brown Shoe Co., Inc.		71,959
	1,693	1	Crocs, Inc.		85,226
	111	1	Deckers Outdoor Corp.		6,472
	875		K-Swiss, Inc., Class A		27,668
	94		Oxford Industries, Inc.		4,492
	1,542	1	Warnaco Group, Inc.		43,623
			TOTAL		239,440
Shares or Principal Amount					Value
			COMMON STOCKS--continued
			Thrifts & Mortgage Finance--3.5%
	331		Anchor Bancorp Wisconsin, Inc.	$	9,884
	346		City Bank Lynwood, WA		11,764
	148		First Financial Holdings, Inc.		5,250
	686	1	FirstFed Financial Corp.		47,300
	814		MAF Bancorp, Inc.		36,581
	685		PFF Bancorp, Inc.		23,201
	432		TierOne Corp.		13,012
	310	1	Triad Guaranty, Inc.		15,965
	130		WSFS Financial Corp.		9,021
			TOTAL		171,978
			Trading Companies & Distributors--1.5%
	1,094		Applied Industrial Technologies, Inc.		26,825
	400	1	H&E Equipment Services, Inc.		9,416
	288	1	Rush Enterprises, Inc., Class A		5,276
	1,084	1	TransDigm Group, Inc.		34,525
			TOTAL		76,042
			TOTAL COMMON STOCKS (IDENTIFIED COST $4,560,860)		4,987,370
			REPURCHASE AGREEMENT--1.3%
$	63,000		Interest in $250,000,000 joint repurchase agreement 5.23%, dated 1/31/2007, under which Mizuho Securities USA, Inc. will repurchase U.S. Treasury securities with various maturities to 2/15/2016 for $250,036,319 on 2/1/2007. The market value of the underlying securities at the end of the period was $255,000,001. (AT COST)		63,000
			TOTAL INVESTMENTS--102.0% (IDENTIFIED COST $4,623,860) 2		5,050,370
			OTHER ASSETS AND LIABILITIES - NET--(2.0)%		(99,660	)
			TOTAL NET ASSETS--100%	$	4,950,710

1 Non-income producing security.

2 Also represents cost for federal tax purposes.

Note: The categories of investments are shown as a percentage of total net assets at January 31, 2007.

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

January 31, 2007 (unaudited)

Assets:
Total investments in securities, at value (identified cost $4,623,860)			$	5,050,370
Cash				271
Income receivable				1,361
Receivable for investments sold				163,644
Receivable for shares sold				9,908
TOTAL ASSETS				5,225,554
Liabilities:
Payable for investments purchased	$	165,037
Payable for shares redeemed		10,856
Payable for administrative personnel and services fee (Note 5)		32,529
Payable for transfer and dividend disbursing agent fees and expenses		31,553
Payable for Directors'/Trustees' fees		1,218
Payable for portfolio accounting fees		16,493
Payable for distribution services fee (Note 5)		10,240
Payable for shareholder services fee (Note 5)		1,084
Accrued expenses		5,834
TOTAL LIABILITIES				274,844
Net assets for 394,513 shares outstanding			$	4,950,710
Net Assets Consist of:
Paid-in capital			$	4,540,019
Net unrealized appreciation of investments				426,510
Accumulated net realized gain on investments				4,550
Accumulated net investment income (loss)				(20,369	)
TOTAL NET ASSETS			$	4,950,710
Net Asset Value, Offering Price and Redemption Proceeds Per Share
Institutional Shares:
Net asset value per share ($1,744,018 ÷ 138,124 shares outstanding), no par value, unlimited shares authorized				$12.63
Offering price per share				$12.63
Redemption proceeds per share				$12.63
Class A Shares:
Net asset value per share ($1,085,381 ÷ 86,244 shares outstanding), no par value, unlimited shares authorized				$12.59
Offering price per share (100/94.50 of $12.59) 1				$13.32
Redemption proceeds per share				$12.59
Class C Shares:
Net asset value per share ($2,121,311 ÷ 170,145 shares outstanding), no par value, unlimited shares authorized				$12.47
Offering price per share (100/99.00 of $12.47) 1				$12.60
Redemption proceeds per share (99.00/100 of $12.47) 1				$12.35

1 See "What Do Shares Cost?" in the Prospectus.

See Notes which are an integral part of the Financial Statements

Statement of Operations

Six Months Ended January 31, 2007 (unaudited)

Investment Income:
Dividends							$	19,540
Interest								1,219
TOTAL INCOME								20,759
Expenses:
Investment adviser fee (Note 5)				$	25,149
Administrative personnel and services fee (Note 5)					115,946
Custodian fees					16,888
Transfer and dividend disbursing agent fees and expenses					44,792
Directors'/Trustees' fees					790
Auditing fees					7,310
Legal fees					4,537
Portfolio accounting fees					37,414
Distribution services fee--Class A Shares (Note 5)					712
Distribution services fee--Class C Shares (Note 5)					8,334
Shareholder services fee--Class A Shares (Note 5)					361
Shareholder services fee--Class C Shares (Note 5)					723
Share registration costs					23,830
Printing and postage					10,076
Insurance premiums					3,469
Miscellaneous					1,863
TOTAL EXPENSES					302,194
Waivers and Reimbursement:
Waiver of investment adviser fee (Note 5)	$	(25,149	)
Waiver of administrative personnel and services fee (Note 5)		(83,329	)
Waiver of transfer and dividend disbursing agent fees and expenses		(13,502	)
Waiver of portfolio accounting fees		(20,630	)
Reimbursement of other operating expenses (Note 5)		(118,456	)
TOTAL WAIVERS AND REIMBURSEMENT					(261,066	)
Net expenses								41,128
Net investment income (loss)								(20,369	)
Realized and Unrealized Gain on Investments:
Net realized gain on investments								77,749
Net change in unrealized depreciation of investments								478,070
Net realized and unrealized gain on investments								555,819
Change in net assets resulting from operations							$	535,450

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

		Six Months Ended (unaudited) 1/31/2007			Period Ended 7/31/2006	1
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	(20,369	)	$	(12,564	)
Net realized gain (loss) on investments		77,749			(73,199	)
Net change in unrealized appreciation/depreciation on investments		478,070			(51,560	)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		535,450			(137,323	)
Share Transactions:
Proceeds from sale of shares		2,133,420			2,847,202
Cost of shares redeemed		(331,538	)		(96,501	)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		1,801,882			2,750,701
Change in net assets		2,337,332			2,613,378
Net Assets:
Beginning of period		2,613,378			- --
End of period (including accumulated net investment income (loss) of $(20,369) and $0, respectively)	$	4,950,710		$	2,613,378

1 Reflects operations for the period from September 15, 2005 (date of initial public investment) to July 31, 2006.

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

January 31, 2007 (unaudited)

1. ORGANIZATION

Federated MDT Series (the "Trust") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Trust consists of eight portfolios. The financial statements included herein are only those of Federated MDT Small Cap Core Fund (the "Fund"), a diversified portfolio. The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held. The Fund offers three classes of shares: Institutional Shares, Class A Shares and Class C Shares. All shares of the Fund have equal rights with respect to voting, except on class-specific matters. The financial highlights of the Institutional Shares are presented separately. The primary investment objective of the Fund is long-term capital appreciation.

MDT Small Cap Core Fund (the "Predecessor Fund") was reorganized into the Fund as of the close of business on December 8, 2006. Prior to the reorganization, the Fund had no investment operations. The Fund is the successor to the Predecessor Fund, which commenced operations on September 15, 2005.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with generally accepted accounting principles (GAAP) in the United States of America.

Investment Valuation

Market values of the Fund's portfolio securities are determined as follows:

• for equity securities, according to the last sale price or official closing price reported in the market in which they are primarily traded (either a national securities exchange or the over-the-counter market), if available;
• in the absence of recorded sales for equity securities, according to the mean between the last closing bid and asked prices;
• futures contracts and options are generally valued at market values established by the exchanges on which they are traded at the close of trading on such exchanges. Options traded in the over-the-counter market are generally valued according to the mean between the last bid and the last asked price for the option as provided by an investment dealer or other financial institution that deals in the option. The Board of Trustees (the "Trustees") may determine in good faith that another method of valuing such investments is necessary to appraise their fair market value;
• prices for total return swaps are furnished by an independent pricing service and are based upon a valuation model incorporating underlying reference indexes, interest rates, yield curves and other market data or factors. Prices for credit default swaps are furnished by an independent pricing service and are based upon a valuation model incorporating default probabilities, recovery rates and other market data or factors;
• for mortgage-backed securities, based on the aggregate investment value of the projected cash flows to be generated by the security, as furnished by an independent pricing service;
• for investments in other open-end regulated investment companies, based on net asset value (NAV);
• for other fixed-income securities, according to prices as furnished by an independent pricing service, except that fixed-income securities with remaining maturities of less than 60 days at the time of purchase are valued at amortized cost; and
• for all other securities at fair value as determined in accordance with procedures established by and under the general supervision of the Trustees.

Prices for fixed-income securities furnished by a pricing service may be based on a valuation matrix which incorporates both dealer-supplied valuations and electronic data processing techniques. Such prices (other than prices of mortgage-backed securities) are generally intended to be indicative of the bid prices currently offered to institutional investors for the securities, except that prices for corporate fixed-income and asset-backed securities traded in the United States are generally intended to be indicative of the mean between such bid prices and asked prices. The Trustees have approved the use of such pricing services. A number of pricing services are available, and the Fund may use various pricing services or discontinue the use of any pricing service.

Prices provided by independent pricing services may be determined without relying exclusively on quoted prices and may consider institutional trading in similar groups of securities, yield, quality, stability, risk, coupon rate, maturity, type of issue, trading characteristics and other market data or factors. From time to time, when prices cannot be obtained from an independent pricing service, securities may be valued based on quotes from broker-dealers or other financial institutions that trade the securities.

Trading in foreign securities may be completed at times which vary from the closing of the New York Stock Exchange (NYSE). In computing its NAV, the Fund values foreign securities using the latest closing price on the exchange on which they are traded immediately prior to the closing of the NYSE. Certain foreign currency exchange rates are generally determined at the latest rate prior to the closing of the NYSE. Foreign securities quoted in foreign currencies are translated into U.S. dollars at current rates. Events that affect these values and exchange rates may occur between the times at which they are determined and the closing of the NYSE. If such events materially affect the value of portfolio securities, these securities may be valued at their fair value as determined in good faith by the Trustees, although the actual calculation may be done by others.

Repurchase Agreements

It is the policy of the Fund to require the other party to a repurchase agreement to transfer to the Fund's custodian or sub-custodian eligible securities or cash with a market value (after transaction costs) at least equal to the repurchase price to be paid under the repurchase agreement. The eligible securities are transferred to accounts with the custodian or sub-custodian in which the Fund holds a "securities entitlement" and exercises "control" as those terms are defined in the Uniform Commercial Code. The Fund has established procedures for monitoring the market value of the transferred securities and requiring the transfer of additional eligible securities if necessary to equal at least the repurchase price. These procedures also allow the other party to require securities to be transferred from the account to the extent that their market value exceeds the repurchase price or in exchange for other eligible securities of equivalent market value.

With respect to agreements to repurchase U.S. government securities and cash items, the Fund treats the repurchase agreement as an investment in the underlying securities and not as an obligation of the other party to the repurchase agreement. Other repurchase agreements are treated as obligations of the other party secured by the underlying securities. Nevertheless, the insolvency of the other party or other failure to repurchase the securities may delay the disposition of the underlying securities or cause the Fund to receive less than the full repurchase price. Under the terms of the repurchase agreement, any amounts received by the Fund in excess of the repurchase price and related transaction costs must be remitted to the other party.

The Fund may enter into repurchase agreements in which eligible securities are transferred into joint trading accounts maintained by the custodian or sub-custodian for investment companies and other clients advised by the Fund's adviser and its affiliates. The Fund will participate on a pro rata basis with the other investment companies and clients in its share of the securities transferred under such repurchase agreements and in its share of proceeds from any repurchase or other disposition of such securities.

Investment Income, Gains and Losses, Expenses and Distributions

Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Distributions of net investment income, if any, are declared and paid annually. Non-cash dividends included in dividend income, if any, are recorded at fair value. Investment income, realized and unrealized gains and losses, and certain fund-level expenses are allocated to each class based on relative average daily net assets, except that each class bears certain expenses unique to that class such as distribution and shareholder services fees. Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses.

Premium and Discount Amortization

All premiums and discounts on fixed-income securities are amortized/accreted for financial statement purposes.

Federal Taxes

It is the Fund's policy to comply with the Subchapter M provision of the Internal Revenue Code (the "Code") and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal income tax is necessary.

When-Issued and Delayed Delivery Transactions

The Fund may engage in when-issued or delayed delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated.

Other

Investment transactions are accounted for on a trade date basis. Realized gains and losses from investment transactions are recorded on an identified cost basis.

3. SHARES OF BENEFICIAL INTEREST

The following tables summarize share activity:

	Six Months Ended 1/31/2007					Period Ended 7/31/2006 1
Institutional Shares:	Shares			Amount		Shares			Amount
Shares sold	74,759		$	850,079		75,245		$	874,307
Shares redeemed	(6,958	)		(83,512	)	(4,922	)		(55,079	)
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS	67,801		$	766,567		70,323		$	819,228
	Six Months Ended 1/31/2007					Period Ended 7/31/2006 1
Class A Shares:	Shares			Amount		Shares			Amount
Shares sold	65,127		$	734,089		32,910		$	383,376
Shares redeemed	(8,076	)		(95,259	)	(3,718	)		(40,206	)
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS	57,051		$	638,830		29,192		$	343,170
	Six Months Ended 1/31/2007					Period Ended 7/31/2006 1
Class C Shares:	Shares			Amount		Shares			Amount
Shares sold	47,578		$	549,252		136,302		$	1,589,519
Shares redeemed	(13,635	)		(152,767	)	(100	)		(1,216	)
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS	33,943		$	396,485		136,202		$	1,588,303
NET CHANGE RESULTING FROM SHARE TRANSACTIONS	158,795		$	1,801,882		235,717		$	2,750,701

1 Reflects operations for the period from September 15, 2005 (date of initial public investment) to July 31, 2006.

4. FEDERAL TAX INFORMATION

At January 31, 2007, the cost of investments for federal tax purposes was $4,623,860. The net unrealized appreciation of investments for federal tax purposes was $426,510. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $498,986 and net unrealized depreciation from investments for those securities having an excess of cost over value of $72,476.

At July 31, 2006, the Fund had a capital loss carryforward of $1,329 which will reduce the Fund's taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Code and thus will reduce the amount of distributions to shareholders which would otherwise be necessary to relieve the Fund of any liability for federal income tax. Pursuant to the Code, such capital loss carryforward will expire in 2014.

5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated MDTA LLC, the Fund's investment adviser (the "Adviser"), receives for its services an annual investment adviser fee equal to 1.15% of the Fund's average daily net assets. Prior to December 8, 2006, the Adviser received an annual investment adviser fee equal to 1.25% of the Fund's average daily net assets. Under the investment advisory contract, the Adviser is contractually obligated to waive, to the extent of its adviser fee, the amount, if any, by which the Fund's annual operating expenses exceed the following levels for each Class of the Fund:

Share Class	Percentage of Average Daily Net Assets of Class
Institutional Shares	1.80%
Class A Shares	2.05%
Class C Shares	2.80%

The Adviser has agreed to keep these contractual limitations in place through December 8, 2008.

In addition, after fulfilling its contractual commitment, the Adviser may voluntarily choose to waive and/or reimburse any additional portion of its fee. The Adviser can modify or terminate this voluntary waiver and/or reimbursement at any time at its sole discretion. For the six months ended January 31, 2007, the Adviser waived $25,149 of its fee and reimbursed $118,456 of other operating expenses.

For a period of three years after the fiscal year in which the Adviser waived or reimbursed Fund expenses, the Adviser may seek reimbursement from the Fund to the extent that the Fund's total annual operating expenses are less than the expense limitation. Due to the reorganization of the Fund, any expenses waived or reimbursed by the Adviser after December 8, 2006 may not be recovered by the Adviser.

Expenses waived/reimbursed by the Fund of $72,863 are subject to potential recovery by the expiration date of July 31, 2009.

Administrative Fee

Federated Administrative Services (FAS), under the Administrative Services Agreement (the "Agreement"), provides the Fund with administrative personnel and services. The fee paid to FAS is based on the average aggregate daily net assets of certain Federated funds as specified below:

Administrative Fee	Average Aggregate Daily Net Assets of the Federated Funds
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

The administrative fee received during any fiscal year shall be at least $150,000 per portfolio and $40,000 per each additional class of Shares. During the period from July 15, 2006 through December 8, 2006, the administrator contractually agreed to waive the portion of its fee which it would otherwise be entitled to receive from the Fund under the Agreement. The level of fees payable by the Fund to FAS for the period will not exceed the level of fees which the Fund would have paid during the period to its previous service provider under its previous administrative services contract. In addition, FAS may voluntarily choose to waive any portion of its fee. FAS can modify or terminate this voluntary waiver at any time at its sole discretion. For the six months ended January 31, 2007, the net fee paid to FAS was 1.579% of average aggregate daily net assets of the Fund.

Distribution Services Fee

The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will compensate Federated Securities Corp. (FSC), the principal distributor, from the daily net assets of the Fund's Class A Shares and Class C Shares to finance activities intended to result in the sale of these shares. The Plan provides that the Fund may incur distribution expenses according to the following schedule annually, to compensate FSC:

Share Class	Percentage of Average Daily Net Assets of Class
Class A Shares	0.25%
Class C Shares	0.75%

Prior to December 11, 2006, the Fund incurred distribution expenses according to the following schedule annually, to compensate FSC:

Share Class	Percentage of Average Daily Net Assets of Class
Class A Shares	0.25%
Class C Shares	1.00%

FSC may voluntarily choose to waive any portion of its fee. FSC can modify or terminate this voluntary waiver at any time at its sole discretion. When FSC receives fees, it may pay some or all of them to financial intermediaries whose customers purchase shares. For the six months ended January 31, 2007, FSC retained $7,193 of fees paid by the Fund.

Sales Charges

For the six months ended January 31, 2007, FSC, the principal distributor, retained $358 in sales charges from the sale of Class A Shares. FSC also retained $1,067 of contingent deferred sales charges relating to redemptions of Class C Shares. See "What Do Shares Cost?" in the Prospectus.

Shareholder Services Fee

Effective December 11, 2006, the Fund may pay fees (Service Fees) up to 0.25% of the average daily net assets of the Fund's Class A Shares and Class C Shares to financial intermediaries or to Federated Shareholder Services Company (FSSC) for providing services to shareholders and maintaining shareholder accounts. FSSC or these financial intermediaries may voluntarily choose to waive any portion of their fee. In addition, FSSC may voluntarily reimburse the Fund for shareholder services fees. This voluntary waiver and/or reimbursement can be modified or terminated at any time. For the six months ended January 31, 2007, FSSC did not receive any fees paid by the Fund.

General

Certain of the Officers and Trustees of the Trust are Officers and Directors or Trustees of the above companies.

6. INVESTMENT TRANSACTIONS

Purchases and sales of investments, excluding long-term U.S. government securities and short-term obligations, for the six months ended January 31, 2007, were as follows:

Purchases	$	6,746,949
Sales	$	4,882,552

7. LINE OF CREDIT

The Trust entered into a $150,000,000 unsecured, uncommitted revolving line of credit (LOC) agreement with PNC Bank. The LOC was made available for extraordinary or emergency purposes, primarily for financing redemption payments. Borrowings are charged interest at a rate of 0.65% over the federal funds rate. As of January 31, 2007, there were no outstanding loans. During the six months ended January 31, 2007, the Fund did not utilize the LOC.

8. LEGAL PROCEEDINGS

Beginning in October 2003, Federated Investors, Inc. and various subsidiaries thereof (including the advisers and distributor for various investment companies, collectively, "Federated"), along with various investment companies sponsored by Federated ("Funds") were named as defendants in several class action lawsuits now pending in the United States District Court for the District of Maryland. The lawsuits were purportedly filed on behalf of people who purchased, owned and/or redeemed shares of Federated-sponsored mutual funds during specified periods beginning November 1, 1998. The suits are generally similar in alleging that Federated engaged in illegal and improper trading practices including market timing and late trading in concert with certain institutional traders, which allegedly caused financial injury to the mutual fund shareholders. These lawsuits began to be filed shortly after Federated's first public announcement that it had received requests for information on shareholder trading activities in the Funds from the Securities and Exchange Commission ("SEC"), the Office of the New York State Attorney General ("NYAG"), and other authorities. In that regard, on November 28, 2005, Federated announced that it had reached final settlements with the SEC and the NYAG with respect to those matters. As Federated previously reported in 2004, it has already paid approximately $8.0 million to certain funds as determined by an independent consultant. As part of these settlements, Federated agreed to pay for the benefit of fund shareholders additional disgorgement and a civil money penalty in the aggregate amount of an additional $72 million. Federated and various Funds have also been named as defendants in several additional lawsuits, the majority of which are now pending in the United States District Court for the Western District of Pennsylvania, alleging, among other things, excessive advisory and Rule 12b-1 fees. The Board of the Funds has retained the law firm of Dickstein Shapiro LLP to represent the Funds in these lawsuits. Federated and the Funds, and their respective counsel, are reviewing the allegations and intend to defend this litigation. Additional lawsuits based upon similar allegations may be filed in the future. The potential impact of these lawsuits, all of which seek unquantified damages, attorneys' fees and expenses, and future potential similar suits is uncertain. Although we do not believe that these lawsuits will have a material adverse effect on the Funds, there can be no assurance that these suits, the ongoing adverse publicity and/or other developments resulting from the regulatory investigations will not result in increased Fund redemptions, reduced sales of Fund shares, or other adverse consequences for the Funds.

9. RECENT ACCOUNTING PRONOUNCEMENTS

In July 2006, the Financial Accounting Standards Board (FASB) released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" (FIN 48). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax benefits of positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax expense in the current year. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years of the Fund no later than January 30, 2008. At this time, management is evaluating the implications of FIN 48 and its impact in the financial statements has not yet been determined.

In addition, in September 2006, FASB released Statement on Financial Accounting Standards No. 157, "Fair Value Measurements" (FAS 157) which is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of FAS 157 will have on the Funds' financial statement disclosures.

Evaluation and Approval of Advisory Contract

FEDERATED MDT SMALL CAP CORE FUND (THE "FUND")

The Fund's Board reviewed the Fund's investment advisory contract at meetings held in May and June 2006. The Board's decision to approve the contract reflects the exercise of its business judgment on whether to authorize the creation and offering of this new investment vehicle, as proposed by, and based on information provided by, the Federated organization, and based on Federated's recommendation to go forward with establishment of the Fund.

Federated proposed the creation of the Fund in connection with its acquisition of MDTA LLC (the "Acquisition"), the investment adviser to the MDT Small Cap Core Fund (the "Predecessor Fund"). As part of that transaction, Federated proposed that the Predecessor Fund be reorganized with and into the Fund in a tax-free reorganization (the "Proposed Reorganization"), which would provide shareholders of the Predecessor Fund the opportunity to become shareholders of a fund with substantially similar investment objectives and policies and the same portfolio manager(s) as the Predecessor Fund, but with sales, distribution and other shareholder services offered by the funds managed and distributed by affiliates of Federated.

Prior to the meeting, the Adviser had recommended that the Federated Funds appoint a Senior Officer, whose duties include specified responsibilities relating to the process by which advisory fees are to be charged to a Federated Fund. The Senior Officer appointed by the Funds has the authority to retain consultants, experts, or staff as may be reasonably necessary to assist in the performance of his duties, reports directly to the Board, and may be terminated only with the approval of a majority of the independent members of the Board. The Senior Officer prepared and furnished to the Board an independent written evaluation that covered topics discussed below, which the Board considered, along with other information, in deciding to approve the advisory contract.

The Board also considered the anticipated compensation and benefits to be received by the Adviser. This includes fees to be received for services provided to the Fund by other entities in the Federated organization and research services that may be received by the Adviser from brokers that execute fund trades, as well as advisory fees. The Board is also familiar with judicial decisions concerning allegedly excessive investment advisory fees which have indicated that the following factors may be relevant to an Adviser's fiduciary duty with respect to its receipt of compensation from a fund: the nature and quality of the services provided by the Adviser, including the performance of the Fund; the Adviser's cost of providing the services; the extent to which the Adviser may realize "economies of scale" as the Fund grows larger; any indirect benefits that may accrue to the Adviser and its affiliates as a result of the Adviser's relationship with the Fund; performance and expenses of comparable funds; and the extent to which the independent Board members are fully informed about all facts the Board deems relevant bearing on the Adviser's services and fees. The Board further considered management fees (including any components thereof) charged to institutional and other clients of the Adviser for like services and costs to the Adviser and its affiliates of supplying services pursuant to the management fee agreements, excluding any intra-corporate profit and profit margins of the Adviser and its affiliates from supplying such services. The Board was aware of these considerations and was guided by them in its review of the Fund's advisory contract to the extent they are appropriate and relevant, as discussed further below.

The Board considered and weighed these circumstances in light of its substantial accumulated experience in working with Federated on matters relating to other Federated Funds, and was assisted in its deliberations by the advice of independent legal counsel. The Board's consideration of the advisory contract included review of the Senior Officer's evaluation, accompanying data and additional reports covering such matters as: the Adviser's investment philosophy, revenue, profitability, personnel and processes; investment and operating strategies; the Fund's investment objectives; the Fund's expenses (including the advisory fee itself and the overall expense structure of the Fund, both in absolute terms and relative to similar and/or competing funds, with due regard for contractual or voluntary expense limitations); the nature, quality and extent of the advisory and other services to be provided to the Fund by the Adviser and its affiliates; the preferences and expectations of Fund shareholders and their relative sophistication; the continuing state of competition in the mutual fund industry and market practices; the range of comparable fees for similar funds in the mutual fund industry; the Fund's relationship to the Federated family of funds which include a comprehensive array of funds with different investment objectives, policies and strategies which are available for exchange without the incurrence of additional sales charges; compliance and audit reports concerning the Federated Funds and the Federated companies that service them (including communications from regulatory agencies), as well as Federated's responses to any issues raised therein; and relevant developments in the mutual fund industry and how the Federated Funds and/or Federated are responding to them. The Board's evaluation process is evolutionary. The criteria considered and the emphasis placed on relevant criteria change in recognition of changing circumstances in the mutual fund marketplace.

With respect to the Fund's expenses in particular, the Board has found the use of comparisons to other mutual funds with comparable investment programs to be particularly useful, given the high degree of competition in the mutual fund business. The Board focused on comparisons with other similar mutual funds more heavily than non-mutual fund products or services because, simply put, they are more relevant. For example, other mutual funds are the products most like the Fund, they are readily available to Fund shareholders as alternative investment vehicles, and they are the type of investment vehicle in fact chosen and maintained by the Fund's anticipated investors. The range of their fees and expenses therefore appears to be a generally reliable indication of what consumers have found to be reasonable in the precise marketplace in which the Fund will compete. In this regard, the Senior Officer also reviewed Federated's fees for providing advisory services to products outside the Federated family of funds (e.g., institutional and separate accounts). He concluded that mutual funds and institutional accounts are inherently different products. Those differences included, but are not limited to targeting different investors, being subject to different laws and regulations, different legal structure, distribution costs, average account size and portfolio management techniques made necessary by different cash flows. The Senior Officer did not consider these fee schedules to be significant in determining the appropriateness of mutual fund advisory contracts.

The Senior Officer reviewed reports compiled by Federated and directed the preparation of reports regarding the performance of, and fees charged by other mutual funds, noting his view that comparisons to fund peer groups is of significance in judging the reasonableness of proposed fees.

Because the Fund will employ the same portfolio managers and investment techniques, the Board reviewed the Predecessor Fund's performance compared to its benchmark as an indicator of how the Adviser will execute the Fund's investment program, which in turn assisted the Board in reaching a conclusion that the nature, extent and quality of the Adviser's investment management services were such as to warrant approval of the advisory contract. The Board noted that the Predecessor Fund and/or accounts managed by MDTA LLC with substantially similar investment objectives and policies outperformed its relevant benchmark for the one-year period reviewed. The Board determined that reviewing performance on a gross basis was appropriate in this instance because the fee structure for separately managed accounts is not comparable for the Fund as discussed above.

The Senior Officer noted that the Fund's quantitative focus made it difficult to compare its fees and expenses to other peers, which varied widely in their complexity. He observed that the management of the Fund is among the more complex, relative to its peers and, consequently, that the advisory fee and projected net total expenses are at the high end compared to such peers. The Board reviewed the proposed fees and other expenses of the Fund with the Adviser and was satisfied that the proposed overall expense structure of the Fund appeared competitive. The Board will continue to monitor advisory fees and other expenses borne by the Fund. No changes were recommended to, and no objection was raised to the proposed advisory contract, and the Senior Officer noted that Federated proposed to provide appropriate administrative services to the Fund for the anticipated fees. The Board concluded that the nature, quality and scope of services to be provided to the Fund by the Adviser and its affiliates were satisfactory.

The Board also considered possible indirect benefits that may accrue to the Adviser and its affiliates as a result of the Acquisition. Other indirect benefits that may accrue to the Adviser and its affiliates as a result of the Adviser's relationship with the Fund are essentially impossible to apply before the Fund has experienced any meaningful operating history. Nevertheless, in connection with the Board's governance of other Federated Funds, it should be noted that the Board regularly receives financial information about Federated, including reports on the compensation and benefits Federated derives from its relationships with the other Federated Funds. These reports cover not only the fees under the advisory contracts, but also fees received by Federated's subsidiaries for providing other services to the Federated Funds under separate contracts (e.g., for serving as the Federated Funds' administrator). The reports also discuss any indirect benefit Federated may derive from its receipt of research services from brokers who execute Federated fund trades, as well as waivers of fees and/or reimbursements of expenses. In order for a fund to be competitive in the marketplace, Federated and its affiliates frequently waive fees and/or reimburse expenses and have indicated to the Board their intention to do so in the future, where appropriate. It was noted in this regard that the Adviser has agreed to limit the expenses of each class of the Fund at specified amounts for a two-year period commencing on the date the Proposed Reorganization is consummated.

Federated furnished reports, requested by the Senior Officer, that made estimates of the allocation of expenses on a fund by fund basis, using allocation methodologies specified by the Senior Officer. The Senior Officer noted that, although they may apply consistent allocation processes, the inherent difficulties in allocating costs and the lack of consensus on how to allocate those costs causes such allocation reports to be of questionable value. The allocation reports were considered in the analysis by the Board but were determined to be of limited use.

The Board also reviewed profitability information for Federated and other publicly held fund management companies, provided by the Senior Officer, who noted the limited availability of such information, and concluded that Federated's profit margins did not appear to be excessive.

The Senior Officer's evaluation also discussed the notion of possible realization of "economies of scale" as a fund grows larger. The Board considered in this regard that the Adviser has made significant additional investments in the portfolio management and distribution efforts supporting all of the Federated Funds and that the benefits of any economies, should they exist, were likely to be enjoyed by the fund complex as a whole. Finally, the Board also noted the absence of any applicable regulatory or industry guidelines on this subject, which is compounded by the lack of any common industry practice or general pattern with respect to structuring fund advisory fees with "breakpoints" that serve to reduce the fee as the fund attains a certain size. The Senior Officer did not recommend institution of breakpoints in pricing Federated's fund advisory services at this time.

The Board based its decision to approve the advisory contract on the totality of the circumstances and relevant factors, and with a view to past and future long-term considerations. As noted, not all of the factors and considerations identified above were relevant to the Fund, nor does the Board consider any one of them to be determinative. With respect to the factors that are relevant, the Board's decision to approve the contract reflects its determination that, based upon the information requested and supplied, Federated's proposal to establish and manage the Fund, and its past performance and actions in providing services to other mutual funds, provide a satisfactory basis to support the business decision to approve the proposed arrangements.

Voting Proxies on Fund Portfolio Securities

A description of the policies and procedures that the Fund uses to determine how to vote proxies, if any, relating to securities held in the Fund's portfolio is available, without charge and upon request, by calling 1-800-341-7400. A report on "Form N-PX" of how the Fund voted any such proxies during the most recent 12-month period ended June 30 is available through Federated's website. Go to FederatedInvestors.com, select "Products," select the "Prospectuses and Regulatory Reports" link, then select the Fund to access the link to Form N-PX. This information is also available from the EDGAR database on the SEC's website at www.sec.gov.

Quarterly Portfolio Schedule

The Fund files with the SEC a complete schedule of its portfolio holdings, as of the close of the first and third quarters of its fiscal year, on "Form N-Q." These filings are available on the SEC's website at www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. (Call 1-800-SEC-0330 for information on the operation of the Public Reference Room.) You may also access this information from the "Products" section of Federated's website at FederatedInvestors.com by clicking on "Portfolio Holdings" and selecting the name of the Fund, or by selecting the name of the Fund and clicking on "Portfolio Holdings." You must register on the website the first time you wish to access this information.

Mutual funds are not bank deposits or obligations, are not guaranteed by any bank, and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other government agency. Investment in mutual funds involves investment risk, including the possible loss of principal.

This report is authorized for distribution to prospective investors only when preceded or accompanied by the Fund's prospectus, which contains facts concerning its objective and policies, management fees, expenses, and other information.

IMPORTANT NOTICE ABOUT FUND DOCUMENT DELIVERY

In an effort to reduce costs and avoid duplicate mailings, the Fund(s) intend to deliver a single copy of certain documents to each household in which more than one shareholder of the Fund(s) resides (so-called "householding"), as permitted by applicable rules. The Fund's "householding" program covers its/their Prospectus and Statement of Additional Information, and supplements to each, as well as Semi-Annual and Annual Shareholder Reports and any Proxies or information statements. Shareholders must give their written consent to participate in the "householding" program. The Fund is also permitted to treat a shareholder as having given consent ("implied consent") if (i) shareholders with the same last name, or believed to be members of the same family, reside at the same street address or receive mail at the same post office box, (ii) the Fund gives notice of its intent to "household" at least sixty (60) days before it begins "householding" and (iii) none of the shareholders in the household have notified the Fund(s) or their agent of the desire to "opt out" of "householding." Shareholders who have granted written consent, or have been deemed to have granted implied consent, can revoke that consent and opt out of "householding" at any time: shareholders who purchased shares through an intermediary should contact their representative; other shareholders may call the Fund at 1-800-341-7400.

Federated Securities Corp., Distributor

Cusip 31421R817
Cusip 31421R791

36359 (3/07)

Federated is a registered mark of Federated Investors, Inc. 2007 (c)Federated Investors, Inc.

Federated
World-Class Investment Manager

Federated MDT Small Cap Core Fund

A Portfolio of Federated MDT Series

SEMI-ANNUAL SHAREHOLDER REPORT

January 31, 2007

Institutional Shares

FINANCIAL HIGHLIGHTS
SHAREHOLDER EXPENSE EXAMPLE
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
PORTFOLIO OF INVESTMENTS
STATEMENT OF ASSETS AND LIABILITIES
STATEMENT OF OPERATIONS
STATEMENT OF CHANGES IN NET ASSETS
NOTES TO FINANCIAL STATEMENTS
EVALUATION AND APPROVAL OF ADVISORY CONTRACT
VOTING PROXIES ON FUND PORTFOLIO SECURITIES
QUARTERLY PORTFOLIO SCHEDULE

Not FDIC Insured * May Lose Value * No Bank Guarantee

Financial Highlights

(For a Share Outstanding Throughout Each Period)

	Six Months Ended (unaudited) 1/31/2007	1	Period Ended 7/31/2006	2
Net Asset Value, Beginning of Period	$11.14		$10.00
Income From Investment Operations:
Net investment income (loss)	(0.03	) 3	(0.10	) 3
Net realized and unrealized gain on investments	1.52		1.24
TOTAL FROM INVESTMENT OPERATIONS	1.49		1.14
Net Asset Value, End of Period	$12.63		$11.14
Total Return 4	13.38	%	11.40	%
Ratios to Average Net Assets:
Net expenses	1.50	% 5	1.76	% 5
Net investment income (loss)	(0.50	)% 5	(0.91	)% 5
Expense waiver/reimbursement 6	12.67	% 5	9.41	% 5
Supplemental Data:
Net assets, end of period (000 omitted)	$1,744		$784
Portfolio turnover	121	%	209	%

1 MDT Small Cap Core Fund (the "Predecessor Fund") was reorganized into Federated MDT Small Cap Core Fund (the "Fund") as of the close of business on December 8, 2006. Prior to the reorganization, the Fund had no investment operations. The Fund is the successor to the Predecessor Fund. The performance information and financial information presented incorporates the operations of the Predecessor Fund, which, as a result of the reorganization, are the Fund's operations.

2 Reflects operations for the period from September 15, 2005 (date of initial public investment) to July 31, 2006.

3 Per share numbers have been calculated using the average shares method.

4 Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. Total returns for periods of less than one year are not annualized.

5 Computed on an annualized basis.

6 This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above.

See Notes which are an integral part of the Financial Statements

Shareholder Expense Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; to the extent applicable, distribution (12b-1) fees and/or shareholder services fees and other Fund expenses. This Example is intended to help you to understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. It is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from August 1, 2006 to January 31, 2007.

ACTUAL EXPENSES

The first section of the table below provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you incurred over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled "Expenses Paid During Period" to estimate the expenses attributable to your investment during this period.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

The second section of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. Thus, you should not use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are required to be provided to enable you to compare the ongoing costs of investing in the Fund with other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.

	Beginning Account Value 8/1/2006	Ending Account Value 1/31/2007	Expenses Paid During Period 1
Actual	$1,000	$1,133.80	$8.07
Hypothetical (assuming a 5% return before expenses)	$1,000	$1,017.64	$7.63

1 Expenses are equal to the Fund's annualized net expense ratio of 1.50%, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

Portfolio of Investments Summary Table

At January 31, 2007, the Fund's industry composition ¹ was as follows:

Industry	Percentage of Total Net Assets
Specialty Retail	9.7	%
Insurance	7.2	%
Electronic Equipment & Instruments	6.5	%
Commercial Banks	5.5	%
Textiles, Apparel & Luxury Goods	4.8	%
Software	4.4	%
Metals & Mining	4.3	%
Commercial Services & Supplies	4.1	%
Machinery	3.6	%
Chemicals	3.5	%
Health Care Providers & Services	3.5	%
Thrifts & Mortgage Finance	3.5	%
Energy Equipment & Services	3.1	%
Marine	2.5	%
Containers & Packaging	2.2	%
Household Durables	2.1	%
Personal Products	2.0	%
Capital Markets	1.8	%
Communications Equipment	1.8	%
Leisure Equipment & Products	1.8	%
Electrical Equipment	1.7	%
Consumer Finance	1.6	%
Internet & Catalog Retail	1.5	%
Internet Software & Services	1.5	%
Pharmaceuticals	1.5	%
Trading Companies & Distributors	1.5	%
Construction Materials	1.4	%
Health Care Equipment & Supplies	1.3	%
Hotels, Restaurants & Leisure	1.3	%
Air Freight & Logistics	1.1	%
Semiconductors & Semiconductor Equipment	1.1	%
Aerospace & Defense	1.0	%
Computers & Peripherals	1.0	%
Other 2	5.3	%
Cash Equivalents 3	1.3	%
Other Assets and Liabilities--Net 4	(2.0	)%
TOTAL	100.0	%

1 Except for Cash Equivalents and Other Assets and Liabilities, industry classifications are based upon, and individual portfolio securities are assigned to, the classifications of the Global Industry Classification Standard (GICS) except that the adviser assigns a classification to securities not classified by the GICS and to securities for which the adviser does not have access to the classification made by the GICS.

2 For purposes of this table, industry classifications which constitute less than 1.0% of the Fund's total net assets have been aggregated under the designation "Other."

3 Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements.

4 Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities.

Portfolio of Investments

January 31, 2007 (unaudited)

Shares					Value
			COMMON STOCKS--100.7%
			Aerospace & Defense--1.0%
	194	1	Esterline Technologies Corp.	$	7,754
	766		Triumph Group, Inc.		43,049
			TOTAL		50,803
			Air Freight & Logistics--1.1%
	532	1	Atlas Air Worldwide Holdings, Inc.		25,509
	1,035	1	Hub Group, Inc., Class A		30,905
			TOTAL		56,414
			Auto Components--0.6%
	472	1	Aftermarket Technology Co.		10,176
	520	1	Lear Corp.		17,607
			TOTAL		27,783
			Beverages--0.2%
	504		MGP Ingredients, Inc.		11,123
			Biotechnology--0.2%
	151	1	United Therapeutics Corp.		8,094
			Building Products--0.9%
	997		Apogee Enterprises, Inc.		18,973
	144	1	NCI Building System, Inc.		8,197
	315		Universal Forest Products, Inc.		15,404
			TOTAL		42,574
			Capital Markets--1.8%
	1,271		Cohen & Steers, Inc.		61,961
	578	1	Knight Capital Group, Inc., Class A		10,444
	272	1	Penson Worldwide, Inc.		7,290
	154	1	Piper Jaffray Cos., Inc.		10,617
			TOTAL		90,312
			Chemicals--3.5%
	471		CF Industries Holdings, Inc.		14,366
	280		FMC Corp.		21,798
	1,410		Fuller (H.B.) Co.		36,477
	3,882	1	Hercules, Inc.		76,126
	574		Koppers Holdings, Inc.		14,585
Shares					Value
			COMMON STOCKS--continued
			Chemicals--continued
	86		Minerals Technologies, Inc.	$	4,994
	209		Spartech Corp.		5,856
			TOTAL		174,202
			Commercial Banks--5.5%
	1,001		CVB Financial Corp.		12,506
	1,163		Central Pacific Financial Corp.		45,450
	814		Citizens Banking Corp.		19,951
	313		City Holding Co.		12,551
	216		Community Banks, Inc.		5,489
	74		Community Trust Bancorp, Inc.		2,893
	897		FNB Corp.		15,778
	497		Independent Bank Corp.- Michigan		10,969
	211		Integra Bank Corp.		5,227
	197		NBT Bancorp, Inc.		4,886
	258		Old National Bancorp		4,835
	984		Pacific Capital Bancorp		31,449
	197		Park National Corp.		19,410
	40		Preferred Bank Los Angeles, CA		2,615
	497		Provident Bankshares Corp.		17,614
	301		S & T Bancorp, Inc.		10,433
	248		Sterling Financial Corp.		5,669
	146		Taylor Capital Group, Inc.		5,544
	733		Trustmark Corp.		21,594
	446		United Bankshares, Inc.		16,288
	42		WestAmerica Bancorp.		2,094
			TOTAL		273,245
			Commercial Services & Supplies--4.1%
	115		Administaff, Inc.		4,708
	520	1	Consolidated Graphics, Inc.		32,240
	457		Deluxe Corp.		13,673
	389	1	Huron Consulting Group, Inc.		20,170
	1,161		Knoll, Inc.		25,530
	296	1	Layne Christensen Co.		10,369
	279		Team, Inc.		9,528
	2,111	1	TeleTech Holdings, Inc.		56,891
	836	1	Volt Information Science, Inc.		29,543
			TOTAL		202,652
Shares					Value
			COMMON STOCKS--continued
			Communications Equipment--1.8%
	478	1	Anaren Microwave, Inc.	$	7,887
	800	1	Arris Group, Inc.		11,376
	1,380	1	C-COR Electronics, Inc.		18,892
	853	1	Comtech Telecommunications Corp.		30,708
	411	1	Oplink Communications, Inc.		7,801
	624		Plantronics, Inc.		12,293
			TOTAL		88,957
			Computers & Peripherals--1.0%
	2,083	1	Brocade Communications Systems, Inc.		17,872
	897	1	SimpleTech, Inc.		9,813
	837	1	Synaptics, Inc.		22,649
			TOTAL		50,334
			Construction & Engineering--0.7%
	1,101	1	Perini Corp.		33,272
			Construction Materials--1.4%
	197	1	Headwaters, Inc.		4,476
	858		Texas Industries, Inc.		62,994
			TOTAL		67,470
			Consumer Finance--1.6%
	867		Advanta Corp., Class B		40,237
	862	1	Ezcorp, Inc., Class A		14,421
	1,061	1	First Cash Financial Services, Inc.		24,912
			TOTAL		79,570
			Containers & Packaging--2.2%
	613		Greif Brothers Corp., Class A		70,072
	1,172		Rock-Tenn Co., Class A		38,348
			TOTAL		108,420
			Distributors--0.1%
	356	1	Audiovox Corp., Class A		5,490
			Diversified Consumer Services--0.4%
	376	1	Vertrue, Inc.		17,480
			Diversified Telecommunication Services--0.5%
	1,567		Alaska Communications Systems Holdings, Inc.		25,323
			Electrical Equipment--1.7%
	902	1	II-VI, Inc.		27,096
	941		Regal Beloit Corp.		47,351
	209		Woodward Governor Co.		8,745
			TOTAL		83,192
Shares					Value
			COMMON STOCKS--continued
			Electronic Equipment & Instruments--6.5%
	1,016	1	Anixter International, Inc.	$	56,154
	2,300	1	Benchmark Electronics, Inc.		52,095
	370	1	Checkpoint Systems, Inc.		6,952
	1,581		Daktronics, Inc.		54,655
	484	1	Faro Technologies, Inc.		11,994
	1,322	1	Insight Enterprises, Inc.		26,876
	97	1	Itron, Inc.		5,591
	442		Keithley Instruments, Inc.		6,219
	1,084	1	Newport Corp.		21,637
	184		Park Electrochemical Corp.		4,911
	1,634	1	Smart Modular Technologies (WWH), Inc.		20,294
	814	1	Synnex Corp.		15,629
	1,590		Technitrol, Inc.		35,012
	389	1	Zygo Corp.		5,971
			TOTAL		323,990
			Energy Equipment & Services--3.1%
	623	1	Hornbeck Offshore Services, Inc.		17,145
	92	1	Hydril Co.		7,277
	1,529	1	Input/Output, Inc.		20,932
	410		Lufkin Industries, Inc.		24,539
	749	1	Oceaneering International, Inc.		29,563
	450	1	Oil States International, Inc.		12,969
	741	1	Superior Energy Services, Inc.		22,467
	629	1	Trico Marine Services, Inc.		20,461
			TOTAL		155,353
			Food & Staples Retailing--0.2%
	136		Longs Drug Stores Corp.		5,848
	114	1	The Pantry, Inc.		5,564
			TOTAL		11,412
			Gas Utilities--0.2%
	291		Laclede Group, Inc.		9,452
			Health Care Equipment & Supplies--1.3%
	240	1	Cholestech Corp.		4,039
	558	1	Immucor, Inc.		17,599
	287	1	Palomar Medical Technologies, Inc.		14,281
	424	1	Zoll Medical Corp.		26,593
			TOTAL		62,512
Shares					Value
			COMMON STOCKS--continued
			Health Care Providers & Services--3.5%
	1,475	1	Amerigroup Corp.	$	53,484
	1,610	1	Centene Corp.		40,121
	405	1	Corvel Corp.		19,088
	1,534	1	Healthspring, Inc.		30,174
	667	1	Nighthawk Radiology Holdings, Inc.		16,815
	309	1	Psychiatric Solutions, Inc.		12,032
			TOTAL		171,714
			Hotels, Restaurants & Leisure--1.3%
	313	1	Buffalo Wild Wings, Inc.		15,925
	288	1	Life Time Fitness, Inc.		15,610
	894		Marcus Corp.		21,376
	271		Speedway Motorsports, Inc.		10,455
			TOTAL		63,366
			Household Durables--2.1%
	268	1	Directed Electronics, Inc.		2,680
	194		Ethan Allen Interiors, Inc.		7,308
	557	1	Helen of Troy Ltd.		13,429
	2,207		Tempur-Pedic International, Inc.		52,527
	1,129		Tupperware Brands Corp.		26,340
			TOTAL		102,284
			IT Services--0.3%
	252	1	Covansys Corp.		5,688
	927		InfoUSA, Inc.		11,133
			TOTAL		16,821
			Insurance--7.2%
	304	1	American Physicians Capital, Inc.		11,765
	1,078	1	CNA Surety Corp.		22,908
	444		Delphi Financial Group, Inc., Class A		17,511
	436		EMC Insurance Group, Inc.		14,663
	220		FBL Financial Group, Inc., Class A		8,538
	410	1	FPIC Insurance Group, Inc.		17,995
	339		Harleysville Group, Inc.		11,526
	1,247		Horace Mann Educators Corp.		24,728
	187		Infinity Property & Casualty		8,946
	231		Midland Co.		10,621
	505		National Interstate Corp.		13,600
	183		Nymagic, Inc.		7,454
Shares					Value
			COMMON STOCKS--continued
			Insurance--continued
	678		Odyssey Re Holdings Corp.	$	26,747
	833		Ohio Casualty Corp.		24,607
	114	1	ProAssurance Corp.		5,790
	288		RLI Corp.		15,938
	562		Safety Insurance Group, Inc.		27,448
	664		Selective Insurance Group, Inc.		34,163
	296		State Auto Financial Corp.		9,525
	582		Stewart Information Services Corp.		24,467
	346		Zenith National Insurance Corp.		15,812
			TOTAL		354,752
			Internet & Catalog Retail--1.5%
	1,726	1	Priceline.com, Inc.		73,562
			Internet Software & Services--1.5%
	1,235	1	Interwoven, Inc.		19,390
	165	1	Travelzoo, Inc.		5,042
	677		United Online, Inc.		9,505
	1,031	1	ValueClick, Inc.		26,311
	921	1	Vignette Corp.		16,504
			TOTAL		76,752
			Leisure Equipment & Products--1.8%
	2,982	1	Marvel Entertainment, Inc.		83,257
	457	1	Smith & Wesson Holding Corp.		5,073
			TOTAL		88,330
			Machinery--3.6%
	93		Actuant Corp., Class A		4,630
	558	1	Astec Industries, Inc.		20,094
	1,256		Briggs & Stratton Corp.		37,228
	545		Cascade Corp.		29,277
	1,031	1	Gardner Denver, Inc.		39,745
	481		Gorman Rupp Co.		19,432
	176		Hurco Co., Inc.		5,827
	154		Lincoln Electric Holdings		9,359
	42	1	Middleby Corp.		4,695
	143		Nordson Corp.		7,396
			TOTAL		177,683
Shares					Value
			COMMON STOCKS--continued
			Marine--2.5%
	1,156	1	American Commercial Lines, Inc.	$	81,429
	1,450		Horizon Lines, Inc.		43,138
			TOTAL		124,567
			Media--0.5%
	121		Arbitron, Inc.		5,611
	493		Media General, Inc., Class A		19,725
			TOTAL		25,336
			Metals & Mining--4.3%
	365	1	AK Steel Holding Corp.		7,680
	195		AMCOL International Corp.		5,862
	748	1	Brush Engineered Materials, Inc.		24,751
	1,807		Chaparral Steel Co.		92,663
	458		Cleveland Cliffs, Inc.		25,034
	679		Commercial Metals Corp.		18,408
	289		Metal Management, Inc.		11,861
	244	1	RTI International Metals		19,947
	193		Ryerson, Inc.		6,054
			TOTAL		212,260
			Oil, Gas & Consumable Fuels--0.2%
	217	1	General Maritime Corp.		7,918
	185		OMI Corp.		4,081
			TOTAL		11,999
			Personal Products--2.0%
	1,624	1	NBTY, Inc.		84,204
	1,032	1	Prestige Brands Holdings, Inc.		13,117
			TOTAL		97,321
			Pharmaceuticals--1.5%
	1,151		Medicis Pharmaceutical Corp., Class A		43,657
	1,330	1	Sciele Pharma, Inc.		31,588
			TOTAL		75,245
			Road & Rail--0.3%
	1	1	Celadon Group, Inc.		17
	715		Werner Enterprises, Inc.		13,592
			TOTAL		13,609
Shares					Value
			COMMON STOCKS--continued
			Semiconductors & Semiconductor Equipment--1.1%
	717	1	Actel Corp.	$	12,806
	786	1	Atheros Communications		18,675
	3,655	1	Skyworks Solutions, Inc.		24,013
			TOTAL		55,494
			Software--4.4%
	506	1	Hyperion Solutions Corp.		21,363
	2,067	1	Mentor Graphics Corp.		38,446
	826	1	Parametric Technology Corp.		16,371
	449		Quality Systems, Inc.		19,051
	2,688	1	THQ, Inc.		81,446
	3,754	1	Tibco Software, Inc.		34,837
	392	1	VASCO Data Security International, Inc.		5,762
			TOTAL		217,276
			Specialty Retail--9.7%
	616		Asbury Automotive Group, Inc.		15,067
	1,284		Buckle, Inc.		43,117
	322	1	Casual Male Retail Group, Inc.		4,019
	108	1	Children's Place Retail Stores, Inc.		5,855
	818	1	DSW, Inc., Class A		32,794
	1,010	1	Dick's Sporting Goods, Inc.		52,005
	229	1	Dress Barn, Inc.		5,146
	126	1	Genesco, Inc.		4,963
	797		Group 1 Automotive, Inc.		42,241
	911	1	Guess ?, Inc.		65,692
	1,412	1	Gymboree Corp.		61,126
	1,250	1	Hibbett Sporting Goods, Inc.		40,138
	314		Lithia Motors, Inc., Class A		9,024
	1,883	1	Rent-A-Center, Inc.		55,473
	169		Sonic Automotive, Inc., Class A		5,298
	1,459	1	Zale Corp.		40,152
			TOTAL		482,110
			Textiles, Apparel & Luxury Goods--4.8%
	1,324		Brown Shoe Co., Inc.		71,959
	1,693	1	Crocs, Inc.		85,226
	111	1	Deckers Outdoor Corp.		6,472
	875		K-Swiss, Inc., Class A		27,668
Shares or Principal Amount					Value
			COMMON STOCKS--continued
			Textiles, Apparel & Luxury Goods--continued
	94		Oxford Industries, Inc.	$	4,492
	1,542	1	Warnaco Group, Inc.		43,623
			TOTAL		239,440
			Thrifts & Mortgage Finance--3.5%
	331		Anchor Bancorp Wisconsin, Inc.		9,884
	346		City Bank Lynwood, WA		11,764
	148		First Financial Holdings, Inc.		5,250
	686	1	FirstFed Financial Corp.		47,300
	814		MAF Bancorp, Inc.		36,581
	685		PFF Bancorp, Inc.		23,201
	432		TierOne Corp.		13,012
	310	1	Triad Guaranty, Inc.		15,965
	130		WSFS Financial Corp.		9,021
			TOTAL		171,978
			Trading Companies & Distributors--1.5%
	1,094		Applied Industrial Technologies, Inc.		26,825
	400	1	H&E Equipment Services, Inc.		9,416
	288	1	Rush Enterprises, Inc., Class A		5,276
	1,084	1	TransDigm Group, Inc.		34,525
			TOTAL		76,042
			TOTAL COMMON STOCKS (IDENTIFIED COST $4,560,860)		4,987,370
			REPURCHASE AGREEMENT--1.3%
$	63,000		Interest in $250,000,000 joint repurchase agreement 5.23%, dated 1/31/2007, under which Mizuho Securities USA, Inc. will repurchase U.S. Treasury securities with various maturities to 2/15/2016 for $250,036,319 on 2/1/2007. The market value of the underlying securities at the end of the period was $255,000,001. (AT COST)		63,000
			TOTAL INVESTMENTS--102.0% (IDENTIFIED COST $4,623,860) 2		5,050,370
			OTHER ASSETS AND LIABILITIES - NET--(2.0)%		(99,660	)
			TOTAL NET ASSETS--100%	$	4,950,710

1 Non-income producing security.

2 Also represents cost for federal tax purposes.

Note: The categories of investments are shown as a percentage of total net assets at January 31, 2007.

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

January 31, 2007 (unaudited)

Assets:
Total investments in securities, at value (identified cost $4,623,860)			$	5,050,370
Cash				271
Income receivable				1,361
Receivable for investments sold				163,644
Receivable for shares sold				9,908
TOTAL ASSETS				5,225,554
Liabilities:
Payable for investments purchased	$	165,037
Payable for shares redeemed		10,856
Payable for administrative personnel and services fee (Note 5)		32,529
Payable for transfer and dividend disbursing agent fees and expenses		31,553
Payable for Directors'/Trustees' fees		1,218
Payable for portfolio accounting fees		16,493
Payable for distribution services fee (Note 5)		10,240
Payable for shareholder services fee (Note 5)		1,084
Accrued expenses		5,834
TOTAL LIABILITIES				274,844
Net assets for 394,513 shares outstanding			$	4,950,710
Net Assets Consist of:
Paid-in capital			$	4,540,019
Net unrealized appreciation of investments				426,510
Accumulated net realized gain on investments				4,550
Accumulated net investment income (loss)				(20,369	)
TOTAL NET ASSETS			$	4,950,710
Net Asset Value, Offering Price and Redemption Proceeds Per Share
Institutional Shares:
Net asset value per share ($1,744,018 ÷ 138,124 shares outstanding), no par value, unlimited shares authorized				$12.63
Offering price per share				$12.63
Redemption proceeds per share				$12.63
Class A Shares:
Net asset value per share ($1,085,381 ÷ 86,244 shares outstanding), no par value, unlimited shares authorized				$12.59
Offering price per share (100/94.50 of $12.59) 1				$13.32
Redemption proceeds per share				$12.59
Class C Shares:
Net asset value per share ($2,121,311 ÷ 170,145 shares outstanding), no par value, unlimited shares authorized				$12.47
Offering price per share (100/99.00 of $12.47) 1				$12.60
Redemption proceeds per share (99.00/100 of $12.47) 1				$12.35

1 See "What Do Shares Cost?" in the Prospectus.

See Notes which are an integral part of the Financial Statements

Statement of Operations

Six Months Ended January 31, 2007 (unaudited)

Investment Income:
Dividends							$	19,540
Interest								1,219
TOTAL INCOME								20,759
Expenses:
Investment adviser fee (Note 5)				$	25,149
Administrative personnel and services fee (Note 5)					115,946
Custodian fees					16,888
Transfer and dividend disbursing agent fees and expenses					44,792
Directors'/Trustees' fees					790
Auditing fees					7,310
Legal fees					4,537
Portfolio accounting fees					37,414
Distribution services fee--Class A Shares (Note 5)					712
Distribution services fee--Class C Shares (Note 5)					8,334
Shareholder services fee--Class A Shares (Note 5)					361
Shareholder services fee--Class C Shares (Note 5)					723
Share registration costs					23,830
Printing and postage					10,076
Insurance premiums					3,469
Miscellaneous					1,863
TOTAL EXPENSES					302,194
Waivers and Reimbursement:
Waiver of investment adviser fee (Note 5)	$	(25,149	)
Waiver of administrative personnel and services fee (Note 5)		(83,329	)
Waiver of transfer and dividend disbursing agent fees and expenses		(13,502	)
Waiver of portfolio accounting fees		(20,630	)
Reimbursement of other operating expenses (Note 5)		(118,456	)
TOTAL WAIVERS AND REIMBURSEMENT					(261,066	)
Net expenses								41,128
Net investment income (loss)								(20,369	)
Realized and Unrealized Gain on Investments:
Net realized gain on investments								77,749
Net change in unrealized depreciation of investments								478,070
Net realized and unrealized gain on investments								555,819
Change in net assets resulting from operations							$	535,450

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

		Six Months Ended (unaudited) 1/31/2007			Period Ended 7/31/2006	1
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	(20,369	)	$	(12,564	)
Net realized gain (loss) on investments		77,749			(73,199	)
Net change in unrealized appreciation/depreciation on investments		478,070			(51,560	)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		535,450			(137,323	)
Share Transactions:
Proceeds from sale of shares		2,133,420			2,847,202
Cost of shares redeemed		(331,538	)		(96,501	)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		1,801,882			2,750,701
Change in net assets		2,337,332			2,613,378
Net Assets:
Beginning of period		2,613,378			- --
End of period (including accumulated net investment income (loss) of $(20,369) and $0, respectively)	$	4,950,710		$	2,613,378

1 Reflects operations for the period from September 15, 2005 (date of initial public investment) to July 31, 2006.

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

January 31, 2007 (unaudited)

1. ORGANIZATION

Federated MDT Series (the "Trust") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Trust consists of eight portfolios. The financial statements included herein are only those of Federated MDT Small Cap Core Fund (the "Fund"), a diversified portfolio. The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held. The Fund offers three classes of shares: Institutional Shares, Class A Shares and Class C Shares. All shares of the Fund have equal rights with respect to voting, except on class-specific matters. The financial highlights of the Class A Shares and Class C Shares are presented separately. The primary investment objective of the Fund is long-term capital appreciation.

MDT Small Cap Core Fund (the "Predecessor Fund") was reorganized into the Fund as of the close of business on December 8, 2006. Prior to the reorganization, the Fund had no investment operations. The Fund is the successor to the Predecessor Fund, which commenced operations on September 15, 2005.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with generally accepted accounting principles (GAAP) in the United States of America.

Investment Valuation

Market values of the Fund's portfolio securities are determined as follows:

• for equity securities, according to the last sale price or official closing price reported in the market in which they are primarily traded (either a national securities exchange or the over-the-counter market), if available;
• in the absence of recorded sales for equity securities, according to the mean between the last closing bid and asked prices;
• futures contracts and options are generally valued at market values established by the exchanges on which they are traded at the close of trading on such exchanges. Options traded in the over-the-counter market are generally valued according to the mean between the last bid and the last asked price for the option as provided by an investment dealer or other financial institution that deals in the option. The Board of Trustees (the "Trustees") may determine in good faith that another method of valuing such investments is necessary to appraise their fair market value;
• prices for total return swaps are furnished by an independent pricing service and are based upon a valuation model incorporating underlying reference indexes, interest rates, yield curves and other market data or factors. Prices for credit default swaps are furnished by an independent pricing service and are based upon a valuation model incorporating default probabilities, recovery rates and other market data or factors;
• for mortgage-backed securities, based on the aggregate investment value of the projected cash flows to be generated by the security, as furnished by an independent pricing service;
• for investments in other open-end regulated investment companies, based on net asset value (NAV);
• for other fixed-income securities, according to prices as furnished by an independent pricing service, except that fixed-income securities with remaining maturities of less than 60 days at the time of purchase are valued at amortized cost; and
• for all other securities at fair value as determined in accordance with procedures established by and under the general supervision of the Trustees.

Prices for fixed-income securities furnished by a pricing service may be based on a valuation matrix which incorporates both dealer-supplied valuations and electronic data processing techniques. Such prices (other than prices of mortgage-backed securities) are generally intended to be indicative of the bid prices currently offered to institutional investors for the securities, except that prices for corporate fixed-income and asset-backed securities traded in the United States are generally intended to be indicative of the mean between such bid prices and asked prices. The Trustees have approved the use of such pricing services. A number of pricing services are available, and the Fund may use various pricing services or discontinue the use of any pricing service.

Prices provided by independent pricing services may be determined without relying exclusively on quoted prices and may consider institutional trading in similar groups of securities, yield, quality, stability, risk, coupon rate, maturity, type of issue, trading characteristics and other market data or factors. From time to time, when prices cannot be obtained from an independent pricing service, securities may be valued based on quotes from broker-dealers or other financial institutions that trade the securities.

Trading in foreign securities may be completed at times which vary from the closing of the New York Stock Exchange (NYSE). In computing its NAV, the Fund values foreign securities using the latest closing price on the exchange on which they are traded immediately prior to the closing of the NYSE. Certain foreign currency exchange rates are generally determined at the latest rate prior to the closing of the NYSE. Foreign securities quoted in foreign currencies are translated into U.S. dollars at current rates. Events that affect these values and exchange rates may occur between the times at which they are determined and the closing of the NYSE. If such events materially affect the value of portfolio securities, these securities may be valued at their fair value as determined in good faith by the Trustees, although the actual calculation may be done by others.

Repurchase Agreements

It is the policy of the Fund to require the other party to a repurchase agreement to transfer to the Fund's custodian or sub-custodian eligible securities or cash with a market value (after transaction costs) at least equal to the repurchase price to be paid under the repurchase agreement. The eligible securities are transferred to accounts with the custodian or sub-custodian in which the Fund holds a "securities entitlement" and exercises "control" as those terms are defined in the Uniform Commercial Code. The Fund has established procedures for monitoring the market value of the transferred securities and requiring the transfer of additional eligible securities if necessary to equal at least the repurchase price. These procedures also allow the other party to require securities to be transferred from the account to the extent that their market value exceeds the repurchase price or in exchange for other eligible securities of equivalent market value.

With respect to agreements to repurchase U.S. government securities and cash items, the Fund treats the repurchase agreement as an investment in the underlying securities and not as an obligation of the other party to the repurchase agreement. Other repurchase agreements are treated as obligations of the other party secured by the underlying securities. Nevertheless, the insolvency of the other party or other failure to repurchase the securities may delay the disposition of the underlying securities or cause the Fund to receive less than the full repurchase price. Under the terms of the repurchase agreement, any amounts received by the Fund in excess of the repurchase price and related transaction costs must be remitted to the other party.

The Fund may enter into repurchase agreements in which eligible securities are transferred into joint trading accounts maintained by the custodian or sub-custodian for investment companies and other clients advised by the Fund's adviser and its affiliates. The Fund will participate on a pro rata basis with the other investment companies and clients in its share of the securities transferred under such repurchase agreements and in its share of proceeds from any repurchase or other disposition of such securities.

Investment Income, Gains and Losses, Expenses and Distributions

Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Distributions of net investment income, if any, are declared and paid annually. Non-cash dividends included in dividend income, if any, are recorded at fair value. Investment income, realized and unrealized gains and losses, and certain fund-level expenses are allocated to each class based on relative average daily net assets, except that each class bears certain expenses unique to that class such as distribution and shareholder services fees. Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses.

Premium and Discount Amortization

All premiums and discounts on fixed-income securities are amortized/accreted for financial statement purposes.

Federal Taxes

It is the Fund's policy to comply with the Subchapter M provision of the Internal Revenue Code (the "Code") and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal income tax is necessary.

When-Issued and Delayed Delivery Transactions

The Fund may engage in when-issued or delayed delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated.

Other

Investment transactions are accounted for on a trade date basis. Realized gains and losses from investment transactions are recorded on an identified cost basis.

3. SHARES OF BENEFICIAL INTEREST

The following tables summarize share activity:

	Six Months Ended 1/31/2007					Period Ended 7/31/2006 1
Institutional Shares:	Shares			Amount		Shares			Amount
Shares sold	74,759		$	850,079		75,245		$	874,307
Shares redeemed	(6,958	)		(83,512	)	(4,922	)		(55,079	)
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS	67,801		$	766,567		70,323		$	819,228
	Six Months Ended 1/31/2007					Period Ended 7/31/2006 1
Class A Shares:	Shares			Amount		Shares			Amount
Shares sold	65,127		$	734,089		32,910		$	383,376
Shares redeemed	(8,076	)		(95,259	)	(3,718	)		(40,206	)
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS	57,051		$	638,830		29,192		$	343,170
	Six Months Ended 1/31/2007					Period Ended 7/31/2006 1
Class C Shares:	Shares			Amount		Shares			Amount
Shares sold	47,578		$	549,252		136,302		$	1,589,519
Shares redeemed	(13,635	)		(152,767	)	(100	)		(1,216	)
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS	33,943		$	396,485		136,202		$	1,588,303
NET CHANGE RESULTING FROM SHARE TRANSACTIONS	158,795		$	1,801,882		235,717		$	2,750,701

1 Reflects operations for the period from September 15, 2005 (date of initial public investment) to July 31, 2006.

4. FEDERAL TAX INFORMATION

At January 31, 2007, the cost of investments for federal tax purposes was $4,623,860. The net unrealized appreciation of investments for federal tax purposes was $426,510. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $498,986 and net unrealized depreciation from investments for those securities having an excess of cost over value of $72,476.

At July 31, 2006, the Fund had a capital loss carryforward of $1,329 which will reduce the Fund's taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Code and thus will reduce the amount of distributions to shareholders which would otherwise be necessary to relieve the Fund of any liability for federal income tax. Pursuant to the Code, such capital loss carryforward will expire in 2014.

5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated MDTA LLC, the Fund's investment adviser (the "Adviser"), receives for its services an annual investment adviser fee equal to 1.15% of the Fund's average daily net assets. Prior to December 8, 2006, the Adviser received an annual investment adviser fee equal to 1.25% of the Fund's average daily net assets. Under the advisory contract, the Adviser is contractually obligated to waive, to the extent of its adviser fee, the amount, if any, by which the Fund's annual operating expenses exceed the following levels for each Class of the Fund:

Share Class	Percentage of Average Daily Net Assets of Class
Institutional Shares	1.80%
Class A Shares	2.05%
Class C Shares	2.80%

The Adviser has agreed to keep these contractual limitations in place through December 8, 2008.

In addition, after fulfilling its contractual commitment, the Adviser may voluntarily choose to waive and/or reimburse any additional portion of its fee. The Adviser can modify or terminate this voluntary waiver and/or reimbursement at any time at its sole discretion. For the six months ended January 31, 2007, the Adviser waived $25,149 of its fee and reimbursed $118,456 of other operating expenses.

For a period of three years after the fiscal year in which the Adviser waived or reimbursed Fund expenses, the Adviser may seek reimbursement from the Fund to the extent that the Fund's total annual operating expenses are less than the expense limitation. Due to the reorganization of the Fund, any expenses waived or reimbursed by the Adviser after December 8, 2006 may not be recovered by the Adviser.

Expenses waived/reimbursed by the Fund of $72,863 are subject to potential recovery by the expiration date of July 31, 2009.

Administrative Fee

Federated Administrative Services (FAS), under the Administrative Services Agreement (the "Agreement"), provides the Fund with administrative personnel and services. The fee paid to FAS is based on the average aggregate daily net assets of certain Federated funds as specified below:

Administrative Fee	Average Aggregate Daily Net Assets of the Federated Funds
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

The administrative fee received during any fiscal year shall be at least $150,000 per portfolio and $40,000 per each additional class of Shares. During the period from July 15, 2006 through December 8, 2006, the administrator contractually agreed to waive the portion of its fee which it would otherwise be entitled to receive from the Fund under the Agreement. The level of fees payable by the Fund to FAS for the period will not exceed the level of fees which the Fund would have paid during the period to its previous service provider under its previous administrative services contract. In addition, FAS may voluntarily choose to waive any portion of its fee. FAS can modify or terminate this voluntary waiver at any time at its sole discretion. For the six months ended January 31, 2007, the net fee paid to FAS was 1.579% of average aggregate daily net assets of the Fund.

Distribution Services Fee

The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will compensate Federated Securities Corp. (FSC), the principal distributor, from the daily net assets of the Fund's Class A Shares and Class C Shares to finance activities intended to result in the sale of these shares. The Plan provides that the Fund may incur distribution expenses according to the following schedule annually, to compensate FSC:

Share Class	Percentage of Average Daily Net Assets of Class
Class A Shares	0.25%
Class C Shares	0.75%

Prior to December 11, 2006, the Fund incurred distribution expenses according to the following schedule annually, to compensate FSC:

Share Class	Percentage of Average Daily Net Assets of Class
Class A Shares	0.25%
Class C Shares	1.00%

FSC may voluntarily choose to waive any portion of its fee. FSC can modify or terminate this voluntary waiver at any time at its sole discretion. When FSC receives fees, it may pay some or all of them to financial intermediaries whose customers purchase shares. For the six months ended January 31, 2007, FSC retained $7,193 of fees paid by the Fund.

Sales Charges

For the six months ended January 31, 2007, FSC, the principal distributor, retained $358 in sales charges from the sale of Class A Shares. FSC also retained $1,067 of contingent deferred sales charges relating to redemptions of Class C Shares. See "What Do Shares Cost?" in the Prospectus.

Shareholder Services Fee

Effective December 11, 2006, the Fund may pay fees (Service Fees) up to 0.25% of the average daily net assets of the Fund's Class A Shares and Class C Shares to financial intermediaries or to Federated Shareholder Services Company (FSSC) for providing services to shareholders and maintaining shareholder accounts. FSSC or these financial intermediaries may voluntarily choose to waive any portion of their fee. In addition, FSSC may voluntarily reimburse the Fund for shareholder services fees. This voluntary waiver and/or reimbursement can be modified or terminated at any time. For the six months ended January 31, 2007, FSSC did not receive any fees paid by the Fund.

General

Certain of the Officers and Trustees of the Trust are Officers and Directors or Trustees of the above companies.

6. INVESTMENT TRANSACTIONS

Purchases and sales of investments, excluding long-term U.S. government securities and short-term obligations, for the six months ended January 31, 2007, were as follows:

Purchases	$	6,746,949
Sales	$	4,882,552

7. LINE OF CREDIT

The Trust entered into a $150,000,000 unsecured, uncommitted revolving line of credit (LOC) agreement with PNC Bank. The LOC was made available for extraordinary or emergency purposes, primarily for financing redemption payments. Borrowings are charged interest at a rate of 0.65% over the federal funds rate. As of January 31, 2007, there were no outstanding loans. During the six months ended January 31, 2007, the Fund did not utilize the LOC.

8. LEGAL PROCEEDINGS

Beginning in October 2003, Federated Investors, Inc. and various subsidiaries thereof (including the advisers and distributor for various investment companies, collectively, "Federated"), along with various investment companies sponsored by Federated ("Funds") were named as defendants in several class action lawsuits now pending in the United States District Court for the District of Maryland. The lawsuits were purportedly filed on behalf of people who purchased, owned and/or redeemed shares of Federated-sponsored mutual funds during specified periods beginning November 1, 1998. The suits are generally similar in alleging that Federated engaged in illegal and improper trading practices including market timing and late trading in concert with certain institutional traders, which allegedly caused financial injury to the mutual fund shareholders. These lawsuits began to be filed shortly after Federated's first public announcement that it had received requests for information on shareholder trading activities in the Funds from the Securities and Exchange Commission ("SEC"), the Office of the New York State Attorney General ("NYAG"), and other authorities. In that regard, on November 28, 2005, Federated announced that it had reached final settlements with the SEC and the NYAG with respect to those matters. As Federated previously reported in 2004, it has already paid approximately $8.0 million to certain funds as determined by an independent consultant. As part of these settlements, Federated agreed to pay for the benefit of fund shareholders additional disgorgement and a civil money penalty in the aggregate amount of an additional $72 million. Federated and various Funds have also been named as defendants in several additional lawsuits, the majority of which are now pending in the United States District Court for the Western District of Pennsylvania, alleging, among other things, excessive advisory and Rule 12b-1 fees. The Board of the Funds has retained the law firm of Dickstein Shapiro LLP to represent the Funds in these lawsuits. Federated and the Funds, and their respective counsel, are reviewing the allegations and intend to defend this litigation. Additional lawsuits based upon similar allegations may be filed in the future. The potential impact of these lawsuits, all of which seek unquantified damages, attorneys' fees and expenses, and future potential similar suits is uncertain. Although we do not believe that these lawsuits will have a material adverse effect on the Funds, there can be no assurance that these suits, the ongoing adverse publicity and/or other developments resulting from the regulatory investigations will not result in increased Fund redemptions, reduced sales of Fund shares, or other adverse consequences for the Funds.

9. RECENT ACCOUNTING PRONOUNCEMENTS

In July 2006, the Financial Accounting Standards Board (FASB) released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" (FIN 48). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax benefits of positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax expense in the current year. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years of the Fund no later than January 30, 2008. At this time, management is evaluating the implications of FIN 48 and its impact in the financial statements has not yet been determined.

In addition, in September 2006, FASB released Statement on Financial Accounting Standards No. 157, "Fair Value Measurements" (FAS 157) which is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of FAS 157 will have on the Funds' financial statement disclosures.

Evaluation and Approval of Advisory Contract

FEDERATED MDT SMALL CAP CORE FUND (THE "FUND")

The Fund's Board reviewed the Fund's investment advisory contract at meetings held in May and June 2006. The Board's decision to approve the contract reflects the exercise of its business judgment on whether to authorize the creation and offering of this new investment vehicle, as proposed by, and based on information provided by, the Federated organization, and based on Federated's recommendation to go forward with establishment of the Fund.

Federated proposed the creation of the Fund in connection with its acquisition of MDTA LLC (the "Acquisition"), the investment adviser to the MDT Small Cap Core Fund (the "Predecessor Fund"). As part of that transaction, Federated proposed that the Predecessor Fund be reorganized with and into the Fund in a tax-free reorganization (the "Proposed Reorganization"), which would provide shareholders of the Predecessor Fund the opportunity to become shareholders of a fund with substantially similar investment objectives and policies and the same portfolio manager(s) as the Predecessor Fund, but with sales, distribution and other shareholder services offered by the funds managed and distributed by affiliates of Federated.

Prior to the meeting, the Adviser had recommended that the Federated Funds appoint a Senior Officer, whose duties include specified responsibilities relating to the process by which advisory fees are to be charged to a Federated Fund. The Senior Officer appointed by the Funds has the authority to retain consultants, experts, or staff as may be reasonably necessary to assist in the performance of his duties, reports directly to the Board, and may be terminated only with the approval of a majority of the independent members of the Board. The Senior Officer prepared and furnished to the Board an independent written evaluation that covered topics discussed below, which the Board considered, along with other information, in deciding to approve the advisory contract.

The Board also considered the anticipated compensation and benefits to be received by the Adviser. This includes fees to be received for services provided to the Fund by other entities in the Federated organization and research services that may be received by the Adviser from brokers that execute fund trades, as well as advisory fees. The Board is also familiar with judicial decisions concerning allegedly excessive investment advisory fees which have indicated that the following factors may be relevant to an Adviser's fiduciary duty with respect to its receipt of compensation from a fund: the nature and quality of the services provided by the Adviser, including the performance of the Fund; the Adviser's cost of providing the services; the extent to which the Adviser may realize "economies of scale" as the Fund grows larger; any indirect benefits that may accrue to the Adviser and its affiliates as a result of the Adviser's relationship with the Fund; performance and expenses of comparable funds; and the extent to which the independent Board members are fully informed about all facts the Board deems relevant bearing on the Adviser's services and fees. The Board further considered management fees (including any components thereof) charged to institutional and other clients of the Adviser for like services and costs to the Adviser and its affiliates of supplying services pursuant to the management fee agreements, excluding any intra-corporate profit and profit margins of the Adviser and its affiliates from supplying such services. The Board was aware of these considerations and was guided by them in its review of the Fund's advisory contract to the extent they are appropriate and relevant, as discussed further below.

The Board considered and weighed these circumstances in light of its substantial accumulated experience in working with Federated on matters relating to other Federated Funds, and was assisted in its deliberations by the advice of independent legal counsel. The Board's consideration of the advisory contract included review of the Senior Officer's evaluation, accompanying data and additional reports covering such matters as: the Adviser's investment philosophy, revenue, profitability, personnel and processes; investment and operating strategies; the Fund's investment objectives; the Fund's expenses (including the advisory fee itself and the overall expense structure of the Fund, both in absolute terms and relative to similar and/or competing funds, with due regard for contractual or voluntary expense limitations); the nature, quality and extent of the advisory and other services to be provided to the Fund by the Adviser and its affiliates; the preferences and expectations of Fund shareholders and their relative sophistication; the continuing state of competition in the mutual fund industry and market practices; the range of comparable fees for similar funds in the mutual fund industry; the Fund's relationship to the Federated family of funds which include a comprehensive array of funds with different investment objectives, policies and strategies which are available for exchange without the incurrence of additional sales charges; compliance and audit reports concerning the Federated Funds and the Federated companies that service them (including communications from regulatory agencies), as well as Federated's responses to any issues raised therein; and relevant developments in the mutual fund industry and how the Federated Funds and/or Federated are responding to them. The Board's evaluation process is evolutionary. The criteria considered and the emphasis placed on relevant criteria change in recognition of changing circumstances in the mutual fund marketplace.

With respect to the Fund's expenses in particular, the Board has found the use of comparisons to other mutual funds with comparable investment programs to be particularly useful, given the high degree of competition in the mutual fund business. The Board focused on comparisons with other similar mutual funds more heavily than non-mutual fund products or services because, simply put, they are more relevant. For example, other mutual funds are the products most like the Fund, they are readily available to Fund shareholders as alternative investment vehicles, and they are the type of investment vehicle in fact chosen and maintained by the Fund's anticipated investors. The range of their fees and expenses therefore appears to be a generally reliable indication of what consumers have found to be reasonable in the precise marketplace in which the Fund will compete. In this regard, the Senior Officer also reviewed Federated's fees for providing advisory services to products outside the Federated family of funds (e.g., institutional and separate accounts). He concluded that mutual funds and institutional accounts are inherently different products. Those differences included, but are not limited to targeting different investors, being subject to different laws and regulations, different legal structure, distribution costs, average account size and portfolio management techniques made necessary by different cash flows. The Senior Officer did not consider these fee schedules to be significant in determining the appropriateness of mutual fund advisory contracts.

The Senior Officer reviewed reports compiled by Federated and directed the preparation of reports regarding the performance of, and fees charged by other mutual funds, noting his view that comparisons to fund peer groups is of significance in judging the reasonableness of proposed fees.

Because the Fund will employ the same portfolio managers and investment techniques, the Board reviewed the Predecessor Fund's performance compared to its benchmark as an indicator of how the Adviser will execute the Fund's investment program, which in turn assisted the Board in reaching a conclusion that the nature, extent and quality of the Adviser's investment management services were such as to warrant approval of the advisory contract. The Board noted that the Predecessor Fund and/or accounts managed by MDTA LLC with substantially similar investment objectives and policies outperformed its relevant benchmark for the one-year period reviewed. The Board determined that reviewing performance on a gross basis was appropriate in this instance because the fee structure for separately managed accounts is not comparable for the Fund as discussed above.

The Senior Officer noted that the Fund's quantitative focus made it difficult to compare its fees and expenses to other peers, which varied widely in their complexity. He observed that the management of the Fund is among the more complex, relative to its peers and, consequently, that the advisory fee and projected net total expenses are at the high end compared to such peers. The Board reviewed the proposed fees and other expenses of the Fund with the Adviser and was satisfied that the proposed overall expense structure of the Fund appeared competitive. The Board will continue to monitor advisory fees and other expenses borne by the Fund. No changes were recommended to, and no objection was raised to the proposed advisory contract, and the Senior Officer noted that Federated proposed to provide appropriate administrative services to the Fund for the anticipated fees. The Board concluded that the nature, quality and scope of services to be provided to the Fund by the Adviser and its affiliates were satisfactory.

The Board also considered possible indirect benefits that may accrue to the Adviser and its affiliates as a result of the Acquisition. Other indirect benefits that may accrue to the Adviser and its affiliates as a result of the Adviser's relationship with the Fund are essentially impossible to apply before the Fund has experienced any meaningful operating history. Nevertheless, in connection with the Board's governance of other Federated Funds, it should be noted that the Board regularly receives financial information about Federated, including reports on the compensation and benefits Federated derives from its relationships with the other Federated Funds. These reports cover not only the fees under the advisory contracts, but also fees received by Federated's subsidiaries for providing other services to the Federated Funds under separate contracts (e.g., for serving as the Federated Funds' administrator). The reports also discuss any indirect benefit Federated may derive from its receipt of research services from brokers who execute Federated fund trades, as well as waivers of fees and/or reimbursements of expenses. In order for a fund to be competitive in the marketplace, Federated and its affiliates frequently waive fees and/or reimburse expenses and have indicated to the Board their intention to do so in the future, where appropriate. It was noted in this regard that the Adviser has agreed to limit the expenses of each class of the Fund at specified amounts for a two-year period commencing on the date the Proposed Reorganization is consummated.

Federated furnished reports, requested by the Senior Officer, that made estimates of the allocation of expenses on a fund by fund basis, using allocation methodologies specified by the Senior Officer. The Senior Officer noted that, although they may apply consistent allocation processes, the inherent difficulties in allocating costs and the lack of consensus on how to allocate those costs causes such allocation reports to be of questionable value. The allocation reports were considered in the analysis by the Board but were determined to be of limited use.

The Board also reviewed profitability information for Federated and other publicly held fund management companies, provided by the Senior Officer, who noted the limited availability of such information, and concluded that Federated's profit margins did not appear to be excessive.

The Senior Officer's evaluation also discussed the notion of possible realization of "economies of scale" as a fund grows larger. The Board considered in this regard that the Adviser has made significant additional investments in the portfolio management and distribution efforts supporting all of the Federated Funds and that the benefits of any economies, should they exist, were likely to be enjoyed by the fund complex as a whole. Finally, the Board also noted the absence of any applicable regulatory or industry guidelines on this subject, which is compounded by the lack of any common industry practice or general pattern with respect to structuring fund advisory fees with "breakpoints" that serve to reduce the fee as the fund attains a certain size. The Senior Officer did not recommend institution of breakpoints in pricing Federated's fund advisory services at this time.

The Board based its decision to approve the advisory contract on the totality of the circumstances and relevant factors, and with a view to past and future long-term considerations. As noted, not all of the factors and considerations identified above were relevant to the Fund, nor does the Board consider any one of them to be determinative. With respect to the factors that are relevant, the Board's decision to approve the contract reflects its determination that, based upon the information requested and supplied, Federated's proposal to establish and manage the Fund, and its past performance and actions in providing services to other mutual funds, provide a satisfactory basis to support the business decision to approve the proposed arrangements.

Voting Proxies on Fund Portfolio Securities

A description of the policies and procedures that the Fund uses to determine how to vote proxies, if any, relating to securities held in the Fund's portfolio is available, without charge and upon request, by calling 1-800-341-7400. A report on "Form N-PX" of how the Fund voted any such proxies during the most recent 12-month period ended June 30 is available through Federated's website. Go to FederatedInvestors.com, select "Products," select the "Prospectuses and Regulatory Reports" link, then select the Fund to access the link to Form N-PX. This information is also available from the EDGAR database on the SEC's website at www.sec.gov.

Quarterly Portfolio Schedule

The Fund files with the SEC a complete schedule of its portfolio holdings, as of the close of the first and third quarters of its fiscal year, on "Form N-Q." These filings are available on the SEC's website at www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. (Call 1-800-SEC-0330 for information on the operation of the Public Reference Room.) You may also access this information from the "Products" section of Federated's website at FederatedInvestors.com by clicking on "Portfolio Holdings" and selecting the name of the Fund, or by selecting the name of the Fund and clicking on "Portfolio Holdings." You must register on the website the first time you wish to access this information.

Mutual funds are not bank deposits or obligations, are not guaranteed by any bank, and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other government agency. Investment in mutual funds involves investment risk, including the possible loss of principal.

This report is authorized for distribution to prospective investors only when preceded or accompanied by the Fund's prospectus, which contains facts concerning its objective and policies, management fees, expenses, and other information.

IMPORTANT NOTICE ABOUT FUND DOCUMENT DELIVERY

In an effort to reduce costs and avoid duplicate mailings, the Fund(s) intend to deliver a single copy of certain documents to each household in which more than one shareholder of the Fund(s) resides (so-called "householding"), as permitted by applicable rules. The Fund's "householding" program covers its/their Prospectus and Statement of Additional Information, and supplements to each, as well as Semi-Annual and Annual Shareholder Reports and any Proxies or information statements. Shareholders must give their written consent to participate in the "householding" program. The Fund is also permitted to treat a shareholder as having given consent ("implied consent") if (i) shareholders with the same last name, or believed to be members of the same family, reside at the same street address or receive mail at the same post office box, (ii) the Fund gives notice of its intent to "household" at least sixty (60) days before it begins "householding" and (iii) none of the shareholders in the household have notified the Fund(s) or their agent of the desire to "opt out" of "householding." Shareholders who have granted written consent, or have been deemed to have granted implied consent, can revoke that consent and opt out of "householding" at any time: shareholders who purchased shares through an intermediary should contact their representative; other shareholders may call the Fund at 1-800-341-7400.

Federated Securities Corp., Distributor

Cusip 31421R783

36363 (3/07)

Federated is a registered mark of Federated Investors, Inc. 2007 (c)Federated Investors, Inc.

Federated
World-Class Investment Manager

Federated MDT Small Cap Growth Fund

A Portfolio of Federated MDT Series

SEMI-ANNUAL SHAREHOLDER REPORT

January 31, 2007

Class A Shares
Class C Shares

FINANCIAL HIGHLIGHTS
SHAREHOLDER EXPENSE EXAMPLE
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
PORTFOLIO OF INVESTMENTS
STATEMENT OF ASSETS AND LIABILITIES
STATEMENT OF OPERATIONS
STATEMENT OF CHANGES IN NET ASSETS
NOTES TO FINANCIAL STATEMENTS
EVALUATION AND APPROVAL OF ADVISORY CONTRACT
VOTING PROXIES ON FUND PORTFOLIO SECURITIES
QUARTERLY PORTFOLIO SCHEDULE

Not FDIC Insured * May Lose Value * No Bank Guarantee

Financial Highlights - Class A Shares

(For a Share Outstanding Throughout Each Period)

	Six Months Ended (unaudited) 1/31/2007	1	Period Ended 7/31/2006	2
Net Asset Value, Beginning of Period	$10.59		$10.00
Income From Investment Operations:
Net investment income (loss)	(0.06	) 3	(0.17	) 3
Net realized and unrealized gain on investments	1.07		0.76
TOTAL FROM INVESTMENT OPERATIONS	1.01		0.59
Net Asset Value, End of Period	$11.60		$10.59
Total Return 4	9.54	%	5.90	%
Ratios to Average Net Assets:
Net expenses	1.76	% 5	2.02	% 5
Net investment income (loss)	(1.09	)% 5	(1.50	)% 5
Expense waiver/reimbursement 6	50.39	% 5	22.65	% 5
Supplemental Data:
Net assets, end of period (000 omitted)	$339		$157
Portfolio turnover	82	%	157	%

1 MDT Small Cap Growth Fund (the "Predecessor Fund") was reorganized into Federated MDT Small Cap Growth Fund (the "Fund") as of the close of business on December 8, 2006. Prior to the reorganization, the Fund had no investment operations. The Fund is the successor to the Predecessor Fund. The performance information and financial information presented incorporates the operations of the Predecessor Fund, which, as a result of the reorganization, are the Fund's operations.

2 Reflects operations for the period from September 15, 2005 (date of initial public investment) to July 31, 2006.

3 Per share numbers have been calculated using the average shares method.

4 Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. Total returns for periods of less than one year are not annualized.

5 Computed on an annualized basis.

6 This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above.

See Notes which are an integral part of the Financial Statements

Financial Highlights - Class C Shares

(For a Share Outstanding Throughout Each Period)

	Six Months Ended (unaudited) 1/31/2007	1	Period Ended 7/31/2006	2
Net Asset Value, Beginning of Period	$10.52		$10.00
Income From Investment Operations:
Net investment income (loss)	(0.10	) 3	(0.26	) 3
Net realized and unrealized gain on investments	1.06		0.78
TOTAL FROM INVESTMENT OPERATIONS	0.96		0.52
Net Asset Value, End of Period	$11.48		$10.52
Total Return 4	9.13	%	5.20	%
Ratios to Average Net Assets:
Net expenses	2.50	% 5	2.77	% 5
Net investment income (loss)	(1.85	)% 5	(2.25	)% 5
Expense waiver/reimbursement 6	52.06	% 5	25.65	% 5
Supplemental Data:
Net assets, end of period (000 omitted)	$498		$348
Portfolio turnover	82	%	157	%

1 The Predecessor Fund was reorganized into the Fund as of the close of business on December 8, 2006. Prior to the reorganization, the Fund had no investment operations. The Fund is the successor to the Predecessor Fund. The performance information and financial information presented incorporates the operations of the Predecessor Fund, which, as a result of the reorganization, are the Fund's operations.

2 Reflects operations for the period from September 15, 2005 (date of initial public investment) to July 31, 2006.

3 Per share numbers have been calculated using the average shares method.

4 Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. Total returns for periods of less than one year are not annualized.

5 Computed on an annualized basis.

6 This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above.

See Notes which are an integral part of the Financial Statements

Shareholder Expense Example

As a shareholder of the Fund, you incur two types of cost: (1) transaction costs, including sales charges (loads) on purchase or redemption payments; and (2) ongoing costs, including management fees; to the extent applicable, distribution (12b-1) fees and/or shareholder services fees and other Fund expenses. This Example is intended to help you to understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. It is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from August 1, 2006 to January 31, 2007.

ACTUAL EXPENSES

The first section of the table below provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you incurred over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled "Expenses Paid During Period" to estimate the expenses attributable to your investment during this period.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

The second section of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. Thus, you should not use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are required to be provided to enable you to compare the ongoing costs of investing in the Fund with other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase or redemption payments. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.

	Beginning Account Value 8/1/2006	Ending Account Value 1/31/2007	Expenses Paid During Period 1
Actual:
Class A Shares	$1,000	$1,095.40	$ 9.30
Class C Shares	$1,000	$1,091.30	$13.18
Hypothetical (assuming a 5% return before expenses):
Class A Shares	$1,000	$1,016.33	$ 8.94
Class C Shares	$1,000	$1,012.60	$12.68

1 Expenses are equal to the Fund's annualized net expense ratios, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). The annualized net expense ratios are as follows:

Class A Shares	1.76%
Class C Shares	2.50%

Portfolio of Investments Summary Table

At January 31, 2007, the Fund's industry composition ¹ was as follows:

Industry	Percentage of Total Net Assets
Specialty Retail	10.9	%
Commercial Services & Supplies	9.2	%
Energy Equipment & Services	7.3	%
Software	5.6	%
Machinery	5.0	%
Health Care Providers & Services	4.6	%
Hotels, Restaurants & Leisure	3.8	%
Electronic Equipment & Instruments	3.7	%
Health Care Equipment & Supplies	3.7	%
Textiles, Apparel & Luxury Goods	3.6	%
Metals & Mining	3.4	%
Leisure Equipment & Products	3.2	%
Computers & Peripherals	3.1	%
Marine	2.9	%
Household Durables	2.8	%
Pharmaceuticals	2.7	%
Capital Markets	2.6	%
Trading Companies & Distributors	2.6	%
Communications Equipment	2.3	%
Chemicals	2.1	%
Internet Software & Services	2.1	%
Consumer Finance	2.0	%
Semiconductors & Semiconductor Equipment	1.9	%
Aerospace & Defense	1.5	%
Building Products	1.5	%
Diversified Financial Services	1.5	%
Internet & Catalog Retail	1.4	%
Electrical Equipment	1.1	%
Commercial Banks	1.0	%
Food & Staples Retailing	1.0	%
IT Services	1.0	%
Oil, Gas & Consumable Fuels	1.0	%
Other 2	6.5	%
Other Assets and Liabilities--Net 3	(8.6	)%
TOTAL	100.0	%

1 Except for Other Assets and Liabilities, industry classifications are based upon, and individual portfolio securities are assigned to, the classifications of the Global Industry Classification Standard (GICS) except that the adviser assigns a classification to securities not classified by the GICS and to securities for which the adviser does not have access to the classification made by the GICS.

2 For purposes of this table, industry classifications which constitute less than 1.0% of the Fund's total net assets have been aggregated under the designation "Other."

3 Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities.

Portfolio of Investments

January 31, 2007 (unaudited)

Shares					Value
			COMMON STOCKS--108.6%
			Aerospace & Defense--1.5%
	310	1	K&F Industries Holdings, Inc.	$	7,220
	325	1	Teledyne Technologies, Inc.		12,399
			TOTAL		19,619
			Air Freight & Logistics--0.9%
	380	1	Hub Group, Inc., Class A		11,347
			Beverages--0.5%
	96		MGP Ingredients, Inc.		2,119
	106	1	The Boston Beer Co., Inc., Class A		3,726
			TOTAL		5,845
			Biotechnology--0.5%
	127	1	United Therapeutics Corp.		6,807
			Building Products--1.5%
	207		Apogee Enterprises, Inc.		3,939
	183	1	Goodman Global, Inc.		3,252
	214	1	NCI Building System, Inc.		12,181
			TOTAL		19,372
			Capital Markets--2.6%
	39		Cohen & Steers, Inc.		1,901
	155	1	GFI Group, Inc.		9,917
	294		Greenhill & Co., Inc.		22,029
			TOTAL		33,847
			Chemicals--2.1%
	1,199	1	Hercules, Inc.		23,512
	171		Koppers Holdings, Inc.		4,345
			TOTAL		27,857
			Commercial Banks--1.0%
	131	1	SVB Financial Group		6,111
	83	1	Texas Capital Bancshares, Inc.		1,615
	228		UCBH Holdings, Inc.		4,275
	84		Wilshire Bancorp, Inc.		1,533
			TOTAL		13,534
Shares					Value
			COMMON STOCKS--continued
			Commercial Services & Supplies--9.2%
	76		Administaff, Inc.	$	3,111
	32	1	CRA International, Inc.		1,725
	127	1	Consolidated Graphics, Inc.		7,874
	336		Deluxe Corp.		10,053
	251		Healthcare Services Group, Inc.		7,259
	176	1	Heidrick & Struggles International, Inc.		7,686
	95	1	Huron Consulting Group, Inc.		4,926
	423	1	IHS, Inc., Class A		16,099
	481		Knoll, Inc.		10,577
	192	1	Labor Ready, Inc.		3,606
	140	1	Resources Connection, Inc.		4,396
	51		Team, Inc.		1,742
	712	1	TeleTech Holdings, Inc.		19,188
	487		Watson Wyatt & Co. Holdings, Class A		21,569
			TOTAL		119,811
			Communications Equipment--2.3%
	440	1	Arris Group, Inc.		6,257
	339	1	C-COR Electronics, Inc.		4,641
	240	1	Comtech Telecommunications Corp.		8,640
	317	1	Netgear, Inc.		8,163
	169	1	Tekelec, Inc.		2,603
			TOTAL		30,304
			Computers & Peripherals--3.1%
	143	1	Brocade Communications Systems, Inc.		1,227
	192	1	Intermec, Inc.		4,614
	1,014		Logitech International SA		29,589
	171	1	Synaptics, Inc.		4,627
			TOTAL		40,057
			Construction & Engineering--0.7%
	298	1	Perini Corp.		9,006
			Construction Materials--0.4%
	219	1	Headwaters, Inc.		4,976
			Consumer Finance--2.0%
	80		ASTA Funding, Inc.		2,578
	137		Cash America International, Inc.		5,851
	189	1	Ezcorp, Inc., Class A		3,162
Shares					Value
			COMMON STOCKS--continued
			Consumer Finance--continued
	267	1	First Cash Financial Services, Inc.	$	6,269
	180	1	World Acceptance Corp.		7,922
			TOTAL		25,782
			Containers & Packaging--0.5%
	151		Silgan Holdings, Inc.		7,071
			Diversified Consumer Services--0.5%
	76		DeVRY, Inc.		2,140
	100	1	Vertrue, Inc.		4,649
			TOTAL		6,789
			Diversified Financial Services--1.5%
	424		International Securities Exchange Holdings, Inc.		17,566
	44	1	Portfolio Recovery Associates, Inc.		1,913
			TOTAL		19,479
			Diversified Telecommunication Services--0.4%
	342		Alaska Communications Systems Holdings, Inc.		5,527
			Electrical Equipment--1.1%
	299	1	II-VI, Inc.		8,982
	111		Regal Beloit Corp.		5,586
			TOTAL		14,568
			Electronic Equipment & Instruments--3.7%
	407	1	Benchmark Electronics, Inc.		9,219
	404		Daktronics, Inc.		13,966
	97	1	Faro Technologies, Inc.		2,404
	33	1	Itron, Inc.		1,902
	71		MTS Systems Corp.		3,037
	155		Park Electrochemical Corp.		4,137
	28	1	Rogers Corp.		1,447
	170	1	ScanSource, Inc.		4,988
	394	1	Smart Modular Technologies (WWH), Inc.		4,893
	161	1	TTM Technologies		1,724
			TOTAL		47,717
			Energy Equipment & Services--7.3%
	150	1	Atwood Oceanics, Inc.		7,256
	405	1	Complete Production Services, Inc.		8,047
	221	1	Dril-Quip, Inc.		8,221
	108	1	Hercules Offshore, Inc.		2,856
Shares					Value
			COMMON STOCKS--continued
			Energy Equipment & Services--continued
	235	1	Hornbeck Offshore Services, Inc.	$	6,467
	110	1	Hydril Co.		8,701
	735	1	Input/Output, Inc.		10,062
	152		Lufkin Industries, Inc.		9,097
	324	1	Oceaneering International, Inc.		12,788
	371	1	Oil States International, Inc.		10,692
	145	1	Trico Marine Services, Inc.		4,717
	134	1	W-H Energy Services, Inc.		6,081
			TOTAL		94,985
			Food & Staples Retailing--1.0%
	294		Longs Drug Stores Corp.		12,642
			Health Care Equipment & Supplies--3.7%
	85	1	Align Technology, Inc.		1,407
	70	1	Cholestech Corp.		1,178
	413	1	Immucor, Inc.		13,026
	67		Meridian Bioscience, Inc.		1,987
	118	1	Palomar Medical Technologies, Inc.		5,872
	137	1	Quidel Corp.		1,862
	335		West Pharmaceutical Services, Inc.		16,258
	109	1	Zoll Medical Corp.		6,837
			TOTAL		48,427
			Health Care Providers & Services--4.6%
	265	1	Apria Healthcare Group, Inc.		7,359
	488	1	Centene Corp.		12,161
	444	1	Healthspring, Inc.		8,733
	261	1	Nighthawk Radiology Holdings, Inc.		6,580
	162	1	Psychiatric Solutions, Inc.		6,308
	46	1	Radiation Therapy Services, Inc.		1,366
	232	1	Wellcare Health Plans, Inc.		17,975
			TOTAL		60,482
			Hotels, Restaurants & Leisure--3.8%
	94	1	Buffalo Wild Wings, Inc.		4,783
	404	1	CEC Entertainment, Inc.		17,085
	218	1	Life Time Fitness, Inc.		11,816
	38	1	P.F. Chang's China Bistro, Inc.		1,505
	340		Ruby Tuesday, Inc.		9,727
	102	1	WMS Industries, Inc.		4,045
			TOTAL		48,961
Shares					Value
			COMMON STOCKS--continued
			Household Durables--2.8%
	53	1	Directed Electronics, Inc.	$	530
	412		Sealy Corp.		6,184
	828		Tempur-Pedic International, Inc.		19,706
	350		Tupperware Brands Corp.		8,166
	47	1	Universal Electronics, Inc.		981
			TOTAL		35,567
			IT Services--1.0%
	217		InfoUSA, Inc.		2,606
	304		Syntel, Inc.		9,996
			TOTAL		12,602
			Industrial Conglomerates--0.9%
	222	1	McDermott International, Inc.		11,464
			Insurance--0.7%
	126		National Financial Partners Corp.		6,187
	111		National Interstate Corp.		2,989
			TOTAL		9,176
			Internet & Catalog Retail--1.4%
	430	1	Priceline.com, Inc.		18,327
			Internet Software & Services--2.1%
	56	1	Travelzoo, Inc.		1,711
	1,016	1	ValueClick, Inc.		25,928
			TOTAL		27,639
			Leisure Equipment & Products--3.2%
	969	1	Marvel Entertainment, Inc.		27,054
	501		Oakley, Inc.		11,603
	255	1	Smith & Wesson Holding Corp.		2,831
			TOTAL		41,488
			Life Sciences Tools & Services--0.2%
	61	1	Parexel International Corp.		1,998
			Machinery--5.0%
	197		Actuant Corp.		9,809
	201	1	Astec Industries, Inc.		7,238
	78		Dynamic Materials Corp.		2,304
	33		Freightcar America, Inc.		1,918
	46		Greenbrier Cos., Inc.		1,328
	47		Hurco Co., Inc.		1,556
Shares					Value
			COMMON STOCKS--continued
			Machinery--continued
	193		Kaydon Corp.	$	8,318
	327		Manitowoc, Inc.		16,958
	67	1	Middleby Corp.		7,489
	149		Nordson Corp.		7,706
			TOTAL		64,624
			Marine--2.9%
	378	1	American Commercial Lines, Inc.		26,626
	393		Horizon Lines, Inc., Class A		11,692
			TOTAL		38,318
			Metals & Mining--3.4%
	432	1	AK Steel Holding Corp.		9,089
	439		Chaparral Steel Co.		22,512
	150	1	RTI International Metals		12,263
			TOTAL		43,864
			Oil, Gas & Consumable Fuels--1.0%
	95		Alon USA Energy, Inc.		2,555
	354		Frontier Oil Corp.		10,057
			TOTAL		12,612
			Pharmaceuticals--2.7%
	134	1	KV Pharmaceutical Co., Class A		3,381
	570		Medicis Pharmaceutical Corp., Class A		21,620
	63	1	Pozen, Inc.		1,065
	373	1	Sciele Pharma, Inc.		8,859
			TOTAL		34,925
			Road & Rail--0.2%
	139	1	Celadon Group, Inc.		2,334
			Semiconductors & Semiconductor Equipment--1.9%
	320	1	ATMI, Inc.		10,701
	72	1	Advanced Energy Industries, Inc.		1,248
	312	1	Amkor Technology, Inc.		3,285
	95	1	Atheros Communications		2,257
	42	1	Intevac, Inc.		929
	209	1	RF Micro Devices, Inc.		1,613
	63	1	SiRF Technology Holdings, Inc.		1,850
	277	1	Silicon Image, Inc.		3,349
			TOTAL		25,232
Shares					Value
			COMMON STOCKS--continued
			Software--5.6%
	61	1	Ansoft Corp.	$	1,704
	534	1	Hyperion Solutions Corp.		22,545
	37	1	MICROS Systems Corp.		2,083
	107	1	MicroStrategy, Inc., Class A		12,992
	188		Quality Systems, Inc.		7,977
	703	1	THQ, Inc.		21,301
	254	1	VASCO Data Security International, Inc.		3,734
			TOTAL		72,336
			Specialty Retail--10.9%
	258	1	Aeropostale, Inc.		9,273
	340		Buckle, Inc.		11,417
	40	1	Build-A-Bear Workshop, Inc.		1,204
	144	1	Casual Male Retail Group, Inc.		1,797
	195		Cato Corp., Class A		4,401
	249	1	Children's Place Retail Stores, Inc.		13,498
	200	1	DSW, Inc., Class A		8,018
	62		Deb Shops, Inc.		1,827
	425	1	Dick's Sporting Goods, Inc.		21,883
	529	1	Dress Barn, Inc.		11,887
	56	1	Genesco, Inc.		2,206
	283	1	Guess ?, Inc.		20,407
	382	1	Gymboree Corp.		16,537
	345	1	Hibbett Sporting Goods, Inc.		11,078
	39	1	Jos A. Bank Clothiers, Inc.		1,207
	180	1	New York & Co.		2,630
	76	1	Zumiez, Inc.		2,500
			TOTAL		141,770
			Textiles, Apparel & Luxury Goods--3.6%
	483	1	Crocs, Inc.		24,314
	144	1	Deckers Outdoor Corp.		8,397
	207		K-Swiss, Inc., Class A		6,545
	149	1	Maidenform Brands, Inc.		2,983
	171	1	Steven Madden Ltd.		5,082
			TOTAL		47,321
Shares					Value
			COMMON STOCKS--continued
			Trading Companies & Distributors--2.6%
	347		Applied Industrial Technologies, Inc.	$	8,508
	102	1	H&E Equipment Services, Inc.		2,401
	280	1	Interline Brands, Inc.		6,364
	283	1	WESCO International, Inc.		17,184
			TOTAL		34,457
			Wireless Telecommunication Services--0.1%
	136	1	Syniverse Holdings, Inc.		1,996
			TOTAL COMMON STOCKS		1,412,862
			TOTAL INVESTMENTS--108.6% (IDENTIFIED COST $1,314,885) 2		1,412,862
			OTHER ASSETS & LIABILITIES - NET--(8.6)%		(112,383	)
			TOTAL NET ASSETS--100%	$	1,300,479

1 Non-income producing security.

2 Also represents cost for federal tax purposes.

Note: The categories of investments are shown as a percentage of total net assets at January 31, 2007.

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

January 31, 2007 (unaudited)

Assets:
Total investments in securities, at value (identified cost $1,314,885)			$	1,412,862
Cash				12,972
Income receivable				274
Receivable for investments sold				43,258
Receivable for shares sold				11,280
TOTAL ASSETS				1,480,646
Liabilities:
Payable for investments purchased	$	45,398
Payable for shares redeemed		58,558
Payable for administrative personnel and services fee (Note 5)		31,813
Payable for transfer and dividend disbursing agent fees and expenses		27,707
Payable for Directors'/Trustees' fees		1,022
Payable for audit fees		7,447
Payable for distribution services fee (Note 5)		2,427
Payable for shareholder services fee (Note 5)		311
Accrued expenses		5,484
TOTAL LIABILITIES				180,167
Net assets for 112,378 shares outstanding			$	1,300,479
Net Assets Consist of:
Paid-in capital			$	1,261,748
Net unrealized appreciation of investments				97,977
Accumulated net realized loss on investments				(52,590	)
Accumulated net investment income (loss)				(6,656	)
TOTAL NET ASSETS			$	1,300,479
Net Asset Value, Offering Price and Redemption Proceeds Per Share
Institutional Shares:
Net asset value per share ($463,608 ÷ 39,806 shares outstanding), no par value, unlimited shares authorized				$11.65
Offering price per share				$11.65
Redemption proceeds per share				$11.65
Class A Shares:
Net asset value per share ($338,611 ÷ 29,185 shares outstanding), no par value, unlimited shares authorized				$11.60
Offering price per share (100/94.50 of $11.60) 1				$12.28
Redemption proceeds per share				$11.60
Class C Shares:
Net asset value per share ($498,260 ÷ 43,387 shares outstanding), no par value, unlimited shares authorized				$11.48
Offering price per share (100/99.00 of $11.48) 1				$11.60
Redemption proceeds per share (99.00/100 of $11.48) 1				$11.37

1 See "What Do Shares Cost?" in the Prospectus.

See Notes which are an integral part of the Financial Statements

Statement of Operations

Six Months Ended January 31, 2007 (unaudited)

Investment Income:
Dividends							$	3,232
Interest								96
TOTAL INCOME								3,328
Expenses:
Investment adviser fee (Note 5)				$	6,082
Administrative personnel and services fee (Note 5)					115,946
Custodian fees					13,424
Transfer and dividend disbursing agent fees and expenses					40,451
Directors'/Trustees' fees					762
Auditing fees					7,310
Legal fees					4,538
Portfolio accounting fees					36,767
Distribution services fee--Class A Shares (Note 5)					236
Distribution services fee--Class C Shares (Note 5)					1,895
Shareholder services fee--Class A Shares (Note 5)					137
Shareholder services fee--Class C Shares (Note 5)					174
Share registration costs					22,249
Printing and postage					10,021
Insurance premiums					3,440
Miscellaneous					1,843
TOTAL EXPENSES					265,275
Waivers and Reimbursement:
Waiver of investment adviser fee (Note 5)	$	(6,082	)
Waiver of administrative personnel and services fee (Note 5)		(84,125	)
Waiver of transfer and dividend disbursing agent fees and expenses		(13,076	)
Waiver of portfolio accounting fees		(21,438	)
Reimbursement of other operating expenses (Note 5)		(130,570	)
TOTAL WAIVERS AND REIMBURSEMENT					(255,291	)
Net expenses								9,984
Net investment income (loss)								(6,656	)
Realized and Unrealized Gain (Loss) on Investments:
Net realized loss on investments								(31,465	)
Net change in unrealized depreciation of investments								125,381
Net realized and unrealized gain on investments								93,916
Change in net assets resulting from operations							$	87,260

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

	Six Months Ended (unaudited) 1/31/2007			Period Ended 7/31/2006		1
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	(6,656	)	$	(5,109	)
Net realized loss on investments		(31,465	)		(21,125	)
Net change in unrealized appreciation/depreciation on investments		125,381			(27,404	)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		87,260			(53,638	)
Share Transactions:
Proceeds from sale of shares		642,831			954,007
Cost of shares redeemed		(161,237	)		(168,744	)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		481,594			785,263
Change in net assets		568,854			731,625
Net Assets:
Beginning of period		731,625			- --
End of period (including accumulated net investment income (loss) of $(6,656) and $0, respectively)	$	1,300,479		$	731,625

1 Reflects operations for the period from September 15, 2005 (date of initial public investment) to July 31, 2006.

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

January 31, 2007 (unaudited)

1. ORGANIZATION

Federated MDT Series (the "Trust") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Trust consists of eight portfolios. The financial statements included herein are only those of Federated MDT Small Cap Growth Fund (the "Fund"), a diversified portfolio. The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held. The Fund offers three classes of shares: Institutional Shares, Class A Shares and Class C Shares. All shares of the Fund have equal rights with respect to voting, except on class-specific matters. The financial highlights of the Institutional Shares are presented separately. The primary investment objective of the Fund is long-term capital appreciation.

MDT Small Cap Growth Fund (the "Predecessor Fund") was reorganized into the Fund as of the close of business on December 8, 2006. Prior to the reorganization, the Fund had no investment operations. The Fund is the successor to the Predecessor Fund, which commenced operations on September 15, 2005.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with generally accepted accounting principles (GAAP) in the United States of America.

Investment Valuation

Market values of the Fund's portfolio securities are determined as follows:

• for equity securities, according to the last sale price or official closing price reported in the market in which they are primarily traded (either a national securities exchange or the over-the-counter market), if available;
• in the absence of recorded sales for equity securities, according to the mean between the last closing bid and asked prices;
• futures contracts and options are generally valued at market values established by the exchanges on which they are traded at the close of trading on such exchanges. Options traded in the over-the-counter market are generally valued according to the mean between the last bid and the last asked price for the option as provided by an investment dealer or other financial institution that deals in the option. The Board of Trustees (the "Trustees") may determine in good faith that another method of valuing such investments is necessary to appraise their fair market value;
• prices for total return swaps are furnished by an independent pricing service and are based upon a valuation model incorporating underlying reference indexes, interest rates, yield curves and other market data or factors. Prices for credit default swaps are furnished by an independent pricing service and are based upon a valuation model incorporating default probabilities, recovery rates and other market data or factors;
• for mortgage-backed securities, based on the aggregate investment value of the projected cash flows to be generated by the security, as furnished by an independent pricing service;
• for investments in other open-end regulated investment companies, based on net asset value (NAV);
• for other fixed-income securities, according to prices as furnished by an independent pricing service, except that fixed-income securities with remaining maturities of less than 60 days at the time of purchase are valued at amortized cost; and
• for all other securities at fair value as determined in accordance with procedures established by and under the general supervision of the Trustees.

Prices for fixed-income securities furnished by a pricing service may be based on a valuation matrix which incorporates both dealer-supplied valuations and electronic data processing techniques. Such prices (other than prices of mortgage-backed securities) are generally intended to be indicative of the bid prices currently offered to institutional investors for the securities, except that prices for corporate fixed-income and asset-backed securities traded in the United States are generally intended to be indicative of the mean between such bid prices and asked prices. The Trustees have approved the use of such pricing services. A number of pricing services are available, and the Fund may use various pricing services or discontinue the use of any pricing service.

Prices provided by independent pricing services may be determined without relying exclusively on quoted prices and may consider institutional trading in similar groups of securities, yield, quality, stability, risk, coupon rate, maturity, type of issue, trading characteristics, and other market data or factors. From time to time, when prices cannot be obtained from an independent pricing service, securities may be valued based on quotes from broker-dealers or other financial institutions that trade the securities.

Trading in foreign securities may be completed at times which vary from the closing of the New York Stock Exchange (NYSE). In computing its NAV, the Fund values foreign securities using the latest closing price on the exchange on which they are traded immediately prior to the closing of the NYSE. Certain foreign currency exchange rates are generally determined at the latest rate prior to the closing of the NYSE. Foreign securities quoted in foreign currencies are translated into U.S. dollars at current rates. Events that affect these values and exchange rates may occur between the times at which they are determined and the closing of the NYSE. If such events materially affect the value of portfolio securities, these securities may be valued at their fair value as determined in good faith by the Trustees, although the actual calculation may be done by others.

Repurchase Agreements

It is the policy of the Fund to require the other party to a repurchase agreement to transfer to the Fund's custodian or sub-custodian eligible securities or cash with a market value (after transaction costs) at least equal to the repurchase price to be paid under the repurchase agreement. The eligible securities are transferred to accounts with the custodian or sub-custodian in which the Fund holds a "securities entitlement" and exercises "control" as those terms are defined in the Uniform Commercial Code. The Fund has established procedures for monitoring the market value of the transferred securities and requiring the transfer of additional eligible securities if necessary to equal at least the repurchase price. These procedures also allow the other party to require securities to be transferred from the account to the extent that their market value exceeds the repurchase price or in exchange for other eligible securities of equivalent market value.

With respect to agreements to repurchase U.S. government securities and cash items, the Fund treats the repurchase agreement as an investment in the underlying securities and not as an obligation of the other party to the repurchase agreement. Other repurchase agreements are treated as obligations of the other party secured by the underlying securities. Nevertheless, the insolvency of the other party or other failure to repurchase the securities may delay the disposition of the underlying securities or cause the Fund to receive less than the full repurchase price. Under the terms of the repurchase agreement, any amounts received by the Fund in excess of the repurchase price and related transaction costs must be remitted to the other party.

The Fund may enter into repurchase agreements in which eligible securities are transferred into joint trading accounts maintained by the custodian or sub-custodian for investment companies and other clients advised by the Fund's adviser and its affiliates. The Fund will participate on a pro rata basis with the other investment companies and clients in its share of the securities transferred under such repurchase agreements and in its share of proceeds from any repurchase or other disposition of such securities.

Investment Income, Gains and Losses, Expenses and Distributions

Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Distributions of net investment income, if any, are declared and paid annually. Non-cash dividends included in dividend income, if any, are recorded at fair value. Investment income, realized and unrealized gains and losses, and certain fund-level expenses are allocated to each class based on relative average daily net assets, except that each class bears certain expenses unique to that class such as distribution and shareholder services fees. Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses.

Premium and Discount Amortization

All premiums and discounts on fixed-income securities are amortized/accreted for financial statement purposes.

Federal Taxes

It is the Fund's policy to comply with the Subchapter M provision of the Internal Revenue Code (the "Code") and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal income tax is necessary.

When-Issued and Delayed Delivery Transactions

The Fund may engage in when-issued or delayed delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated.

Other

Investment transactions are accounted for on a trade date basis. Realized gains and losses from investment transactions are recorded on an identified cost basis.

3. SHARES OF BENEFICIAL INTEREST

The following tables summarize share activity:

	Six Months Ended 1/31/2007					Period Ended 7/31/2006 1
Institutional Shares:	Shares			Amount		Shares			Amount
Shares sold	24,317		$	276,874		33,093		$	353,962
Shares redeemed	(5,868	)		(62,987	)	(11,736	)		(133,278	)
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS	18,449		$	213,887		21,357		$	220,684
	Six Months Ended 1/31/2007					Period Ended 7/31/2006 1
Class A Shares:	Shares			Amount		Shares			Amount
Shares sold	20,361		$	221,576		17,938		$	198,850
Shares redeemed	(6,003	)		(68,896	)	(3,111	)		(34,280	)
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS	14,358		$	152,680		14,827		$	164,570
	Six Months Ended 1/31/2007					Period Ended 7/31/2006 1
Class C Shares:	Shares			Amount		Shares			Amount
Shares sold	13,080		$	144,381		33,176		$	401,195
Shares redeemed	(2,769	)		(29,354	)	(100	)		(1,186	)
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS	10,311		$	115,027		33,076		$	400,009
NET CHANGE RESULTING FROM SHARE TRANSACTIONS	43,118		$	481,594		69,260		$	785,263

1 Reflects operations for the period from September 15, 2005 (date of initial public investment) to July 31, 2006.

4. FEDERAL TAX INFORMATION

At January 31, 2007, the cost of investments for federal tax purposes was $1,314,885. The net unrealized appreciation of investments for federal tax purposes was $97,977. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $122,253 and net unrealized depreciation from investments for those securities having an excess of cost over value of $24,276.

At July 31, 2006, the Fund had a capital loss carryforward of $1,761 which will reduce the Fund's taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Code and thus will reduce the amount of distributions to shareholders which would otherwise be necessary to relieve the Fund of any liability for federal income tax. Pursuant to the Code, such capital loss carryforward will expire in 2014.

5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated MDTA LLC, the Fund's investment adviser (the "Adviser"), receives for its services an annual investment adviser fee equal to 1.15% of the Fund's average daily net assets. Prior to December 8, 2006, the Adviser received an annual investment adviser fee equal to 1.25% of the Fund's average daily net assets. Under the investment advisory contract, the Adviser is contractually obligated to waive, to the extent of its adviser fee, the amount, if any, by which the Fund's annual operating expenses exceed the following levels for each Class of the Fund:

Share Class	Percentage of Average Daily Net Assets of Class
Institutional Shares	1.80%
Class A Shares	2.05%
Class C Shares	2.80%

The Adviser has agreed to keep these contractual limitations in place through December 8, 2008.

In addition, after fulfilling its contractual commitment, the Adviser may voluntarily choose to waive and/or reimburse any additional portion of its fee. The Adviser can modify or terminate this voluntary waiver and/or reimbursement at any time at its sole discretion. For the six months ended January 31, 2007, the Adviser waived $6,082 of its fee and reimbursed $130,570 of other operating expenses.

For a period of three years after the fiscal year in which the Adviser waived or reimbursed Fund expenses, the Adviser may seek reimbursement from the Fund to the extent that the Fund's total annual operating expenses are less than the expense limitations. Due to the reorganization of the Fund, any expenses waived or reimbursed by the Adviser after December 8, 2006 may not be recovered by the Adviser.

Expenses waived/reimbursed by the Fund of $71,048 are subject to potential recovery by the expiration date of July 31, 2009.

Administrative Fee

Federated Administrative Services (FAS), under the Administrative Services Agreement (the "Agreement"), provides the Fund with administrative personnel and services. The fee paid to FAS is based on the average aggregate daily net assets of certain Federated funds as specified below:

Administrative Fee	Average Aggregate Daily Net Assets of the Federated Funds
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

The administrative fee received during any fiscal year shall be at least $150,000 per portfolio and $40,000 per each additional class of Shares. During the period from July 15, 2006 through December 8, 2006, the administrator contractually agreed to waive the portion of its fee which it would otherwise be entitled to receive from the Fund under the Agreement. The level of fees payable by the Fund to FAS for the period will not exceed the level of fees which the Fund would have paid during the period to its previous service provider under its previous administrative services contract. In addition, FAS may voluntarily choose to waive any portion of its fee. FAS can modify or terminate this voluntary waiver at any time at its sole discretion. For the six months ended January 31, 2007, the net fee paid to FAS was 6.349% of average aggregate daily net assets of the Fund.

Distribution Services Fee

The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will compensate Federated Securities Corp. (FSC), the principal distributor, from the daily net assets of the Fund's Class A Shares and Class C Shares to finance activities intended to result in the sale of these shares. The Plan provides that the Fund may incur distribution expenses according to the following schedule annually, to compensate FSC:

Share Class	Percentage of Average Daily Net Assets of Class
Class A Shares	0.25%
Class C Shares	0.75%

Prior to December 11, 2006, the Fund incurred distribution expenses according to the following schedule annually, to compensate FSC:

Share Class	Percentage of Average Daily Net Assets of Class
Class A Shares	0.25%
Class C Shares	1.00%

FSC may voluntarily choose to waive any portion of its fee. FSC can modify or terminate this voluntary waiver at any time at its sole discretion. When FSC receives fees, it may pay some or all of them to financial intermediaries whose customers purchase shares. For the six months ended January 31, 2007, FSC retained $1,642 of fees paid by the Fund.

Sales Charges

For the six months ended January 31, 2007, FSC, the principal distributor, retained $30 in sales charges from the sale of Class A Shares. See "What Do Shares Cost?" in the Prospectus.

Shareholder Services Fee

Effective December 11, 2006, the Fund may pay fees (Service Fees) up to 0.25% of the average daily net assets of the Fund's Class A Shares and Class C Shares to financial intermediaries or to Federated Shareholder Services Company (FSSC) for providing services to shareholders and maintaining shareholder accounts. FSSC or these financial intermediaries may voluntarily choose to waive any portion of their fee. In addition, FSSC may voluntarily reimburse the Fund for shareholder services fees. This voluntary waiver and/or reimbursement can be modified or terminated at any time. For the six months ended January 31, 2007, FSSC did not receive any fees paid by the Fund.

General

Certain of the Officers and Trustees of the Trust are Officers and Directors or Trustees of the above companies.

6. INVESTMENT TRANSACTIONS

Purchases and sales of investments, excluding long-term U.S. government securities and short-term obligations, for the six months ended January 31, 2007, were as follows:

Purchases	$	1,397,394
Sales	$	813,078

7. LINE OF CREDIT

The Trust entered into a $150,000,000 unsecured, uncommitted revolving line of credit (LOC) agreement with PNC Bank. The LOC was made available for extraordinary or emergency purposes, primarily for financing redemption payments. Borrowings are charged interest at a rate of 0.65% over the federal funds rate. As of January 31, 2007, there were no outstanding loans. During the six months ended January 31, 2007, the Fund did not utilize the LOC.

8. LEGAL PROCEEDINGS

Beginning in October 2003, Federated Investors, Inc. and various subsidiaries thereof (including the advisers and distributor for various investment companies, collectively, "Federated"), along with various investment companies sponsored by Federated ("Funds") were named as defendants in several class action lawsuits now pending in the United States District Court for the District of Maryland. The lawsuits were purportedly filed on behalf of people who purchased, owned and/or redeemed shares of Federated-sponsored mutual funds during specified periods beginning November 1, 1998. The suits are generally similar in alleging that Federated engaged in illegal and improper trading practices including market timing and late trading in concert with certain institutional traders, which allegedly caused financial injury to the mutual fund shareholders. These lawsuits began to be filed shortly after Federated's first public announcement that it had received requests for information on shareholder trading activities in the Funds from the Securities and Exchange Commission ("SEC"), the Office of the New York State Attorney General ("NYAG"), and other authorities. In that regard, on November 28, 2005, Federated announced that it had reached final settlements with the SEC and the NYAG with respect to those matters. As Federated previously reported in 2004, it has already paid approximately $8.0 million to certain funds as determined by an independent consultant. As part of these settlements, Federated agreed to pay for the benefit of fund shareholders additional disgorgement and a civil money penalty in the aggregate amount of an additional $72 million. Federated and various Funds have also been named as defendants in several additional lawsuits, the majority of which are now pending in the United States District Court for the Western District of Pennsylvania, alleging, among other things, excessive advisory and Rule 12b-1 fees. The Board of the Funds has retained the law firm of Dickstein Shapiro LLP to represent the Funds in these lawsuits. Federated and the Funds, and their respective counsel, are reviewing the allegations and intend to defend this litigation. Additional lawsuits based upon similar allegations may be filed in the future. The potential impact of these lawsuits, all of which seek unquantified damages, attorneys' fees and expenses, and future potential similar suits is uncertain. Although we do not believe that these lawsuits will have a material adverse effect on the Funds, there can be no assurance that these suits, the ongoing adverse publicity and/or other developments resulting from the regulatory investigations will not result in increased Fund redemptions, reduced sales of Fund shares, or other adverse consequences for the Funds.

9. RECENT ACCOUNTING PRONOUNCEMENTS

In July 2006, the Financial Accounting Standards Board (FASB) released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" (FIN 48). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax benefits of positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax expense in the current year. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years of the Fund no later than January 30, 2008. At this time, management is evaluating the implications of FIN 48 and its impact in the financial statements has not yet been determined.

In addition, in September 2006, FASB released Statement on Financial Accounting Standards No. 157, "Fair Value Measurements" (FAS 157) which is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of FAS 157 will have on the Funds' financial statement disclosures.

Evaluation and Approval of Advisory Contract

FEDERATED MDT SMALL CAP GROWTH FUND (THE "FUND")

The Fund's Board reviewed the Fund's investment advisory contract at meetings held in May and June 2006. The Board's decision to approve the contract reflects the exercise of its business judgment on whether to authorize the creation and offering of this new investment vehicle, as proposed by, and based on information provided by, the Federated organization, and based on Federated's recommendation to go forward with establishment of the Fund.

Federated proposed the creation of the Fund in connection with its acquisition of MDTA LLC (the "Acquisition"), the investment adviser to the MDT Small Cap Growth Fund (the "Predecessor Fund"). As part of that transaction, Federated proposed that the Predecessor Fund be reorganized with and into the Fund in a tax-free reorganization (the "Proposed Reorganization"), which would provide shareholders of the Predecessor Fund the opportunity to become shareholders of a fund with substantially similar investment objectives and policies and the same portfolio manager(s) as the Predecessor Fund, but with sales, distribution and other shareholder services offered by the funds managed and distributed by affiliates of Federated.

Prior to the meeting, the Adviser had recommended that the Federated Funds appoint a Senior Officer, whose duties include specified responsibilities relating to the process by which advisory fees are to be charged to a Federated Fund. The Senior Officer appointed by the Funds has the authority to retain consultants, experts, or staff as may be reasonably necessary to assist in the performance of his duties, reports directly to the Board, and may be terminated only with the approval of a majority of the independent members of the Board. The Senior Officer prepared and furnished to the Board an independent written evaluation that covered topics discussed below, which the Board considered, along with other information, in deciding to approve the advisory contract.

The Board also considered the anticipated compensation and benefits to be received by the Adviser. This includes fees to be received for services provided to the Fund by other entities in the Federated organization and research services that may be received by the Adviser from brokers that execute fund trades, as well as advisory fees. The Board is also familiar with judicial decisions concerning allegedly excessive investment advisory fees which have indicated that the following factors may be relevant to an Adviser's fiduciary duty with respect to its receipt of compensation from a fund: the nature and quality of the services provided by the Adviser, including the performance of the Fund; the Adviser's cost of providing the services; the extent to which the Adviser may realize "economies of scale" as the Fund grows larger; any indirect benefits that may accrue to the Adviser and its affiliates as a result of the Adviser's relationship with the Fund; performance and expenses of comparable funds; and the extent to which the independent Board members are fully informed about all facts the Board deems relevant bearing on the Adviser's services and fees. The Board further considered management fees (including any components thereof) charged to institutional and other clients of the Adviser for like services and costs to the Adviser and its affiliates of supplying services pursuant to the management fee agreements, excluding any intra-corporate profit and profit margins of the Adviser and its affiliates from supplying such services. The Board was aware of these considerations and was guided by them in its review of the Fund's advisory contract to the extent they are appropriate and relevant, as discussed further below.

The Board considered and weighed these circumstances in light of its substantial accumulated experience in working with Federated on matters relating to other Federated Funds, and was assisted in its deliberations by the advice of independent legal counsel. The Board's consideration of the advisory contract included review of the Senior Officer's evaluation, accompanying data and additional reports covering such matters as: the Adviser's investment philosophy, revenue, profitability, personnel and processes; investment and operating strategies; the Fund's investment objectives; the Fund's expenses (including the advisory fee itself and the overall expense structure of the Fund, both in absolute terms and relative to similar and/or competing funds, with due regard for contractual or voluntary expense limitations); the nature, quality and extent of the advisory and other services to be provided to the Fund by the Adviser and its affiliates; the preferences and expectations of Fund shareholders and their relative sophistication; the continuing state of competition in the mutual fund industry and market practices; the range of comparable fees for similar funds in the mutual fund industry; the Fund's relationship to the Federated family of funds which include a comprehensive array of funds with different investment objectives, policies and strategies which are available for exchange without the incurrence of additional sales charges; compliance and audit reports concerning the Federated Funds and the Federated companies that service them (including communications from regulatory agencies), as well as Federated's responses to any issues raised therein; and relevant developments in the mutual fund industry and how the Federated Funds and/or Federated are responding to them. The Board's evaluation process is evolutionary. The criteria considered and the emphasis placed on relevant criteria change in recognition of changing circumstances in the mutual fund marketplace.

With respect to the Fund's expenses in particular, the Board has found the use of comparisons to other mutual funds with comparable investment programs to be particularly useful, given the high degree of competition in the mutual fund business. The Board focused on comparisons with other similar mutual funds more heavily than non-mutual fund products or services because, simply put, they are more relevant. For example, other mutual funds are the products most like the Fund, they are readily available to Fund shareholders as alternative investment vehicles, and they are the type of investment vehicle in fact chosen and maintained by the Fund's anticipated investors. The range of their fees and expenses therefore appears to be a generally reliable indication of what consumers have found to be reasonable in the precise marketplace in which the Fund will compete. In this regard, the Senior Officer also reviewed Federated's fees for providing advisory services to products outside the Federated family of funds (e.g., institutional and separate accounts). He concluded that mutual funds and institutional accounts are inherently different products. Those differences included, but are not limited to targeting different investors, being subject to different laws and regulations, different legal structure, distribution costs, average account size and portfolio management techniques made necessary by different cash flows. The Senior Officer did not consider these fee schedules to be significant in determining the appropriateness of mutual fund advisory contracts.

The Senior Officer reviewed reports compiled by Federated and directed the preparation of reports regarding the performance of, and fees charged by other mutual funds, noting his view that comparisons to fund peer groups is of significance in judging the reasonableness of proposed fees.

Because the Fund will employ the same portfolio managers and investment techniques, the Board reviewed the Predecessor Fund's performance compared to its benchmark as an indicator of how the Adviser will execute the Fund's investment program, which in turn assisted the Board in reaching a conclusion that the nature, extent, and quality of the Adviser's investment management services were such as to warrant approval of the advisory contract. The Board noted that the Predecessor Fund and/or accounts managed by MDTA LLC with substantially similar investment objectives and policies outperformed its relevant benchmark on a gross basis for the one- and three-year periods reviewed. The Board determined that reviewing performance on a gross basis was appropriate in this instance because the fee structure for separately managed accounts is not comparable for the Fund as discussed above.

The Senior Officer noted that the Fund's quantitative focus made it difficult to compare its fees and expenses to other peers, which varied widely in their complexity. He observed that the management of the Fund is among the more complex, relative to its peers and, consequently, that the advisory fee and projected net total expenses are at the high end compared to such peers. The Board reviewed the proposed fees and other expenses of the Fund with the Adviser and was satisfied that the proposed overall expense structure of the Fund appeared competitive. The Board will continue to monitor advisory fees and other expenses borne by the Fund. No changes were recommended to, and no objection was raised to the proposed advisory contract, and the Senior Officer noted that Federated proposed to provide appropriate administrative services to the Fund for the anticipated fees. The Board concluded that the nature, quality and scope of services to be provided to the Fund by the Adviser and its affiliates were satisfactory.

The Board also considered possible indirect benefits that may accrue to the Adviser and its affiliates as a result of the Acquisition. Other indirect benefits that may accrue to the Adviser and its affiliates as a result of the Adviser's relationship with the Fund are essentially impossible to apply before the Fund has experienced any meaningful operating history. Nevertheless, in connection with the Board's governance of other Federated funds, it should be noted that the Board regularly receives financial information about Federated, including reports on the compensation and benefits Federated derives from its relationships with the other Federated funds. These reports cover not only the fees under the advisory contracts, but also fees received by Federated's subsidiaries for providing other services to the Federated Funds under separate contracts (e.g., for serving as the Federated funds' administrator). The reports also discuss any indirect benefit Federated may derive from its receipt of research services from brokers who execute Federated fund trades, as well as waivers of fees and/or reimbursements of expenses. In order for a fund to be competitive in the marketplace, Federated and its affiliates frequently waive fees and/or reimburse expenses and have indicated to the Board their intention to do so in the future, where appropriate. It was noted in this regard that the Adviser has agreed to limit the expenses of each class of the Fund at specified amounts for a two-year period commencing on the date the Proposed Reorganization is consummated.

Federated furnished reports, requested by the Senior Officer, that made estimates of the allocation of expenses on a fund by fund basis, using allocation methodologies specified by the Senior Officer. The Senior Officer noted that, although they may apply consistent allocation processes, the inherent difficulties in allocating costs and the lack of consensus on how to allocate those costs causes such allocation reports to be of questionable value. The allocation reports were considered in the analysis by the Board but were determined to be of limited use.

The Board also reviewed profitability information for Federated and other publicly held fund management companies, provided by the Senior Officer, who noted the limited availability of such information, and concluded that Federated's profit margins did not appear to be excessive.

The Senior Officer's evaluation also discussed the notion of possible realization of "economies of scale" as a fund grows larger. The Board considered in this regard that the Adviser has made significant additional investments in the portfolio management and distribution efforts supporting all of the Federated funds and that the benefits of any economies, should they exist, were likely to be enjoyed by the fund complex as a whole. Finally, the Board also noted the absence of any applicable regulatory or industry guidelines on this subject, which is compounded by the lack of any common industry practice or general pattern with respect to structuring fund advisory fees with "breakpoints" that serve to reduce the fee as the fund attains a certain size. The Senior Officer did not recommend institution of breakpoints in pricing Federated's fund advisory services at this time.

The Board based its decision to approve the advisory contract on the totality of the circumstances and relevant factors, and with a view to past and future long-term considerations. As noted, not all of the factors and considerations identified above were relevant to the Fund, nor does the Board consider any one of them to be determinative. With respect to the factors that are relevant, the Board's decision to approve the contract reflects its determination that, based upon the information requested and supplied, Federated's proposal to establish and manage the Fund, and its past performance and actions in providing services to other mutual funds, provide a satisfactory basis to support the business decision to approve the proposed arrangements.

Voting Proxies on Fund Portfolio Securities

A description of the policies and procedures that the Fund uses to determine how to vote proxies, if any, relating to securities held in the Fund's portfolio is available, without charge and upon request, by calling 1-800-341-7400. A report on "Form N-PX" of how the Fund voted any such proxies during the most recent 12-month period ended June 30 is available through Federated's website. Go to FederatedInvestors.com, select "Products," select the "Prospectuses and Regulatory Reports" link, then select the Fund to access the link to Form N-PX. This information is also available from the EDGAR database on the SEC's website at www.sec.gov.

Quarterly Portfolio Schedule

The Fund files with the SEC a complete schedule of its portfolio holdings, as of the close of the first and third quarters of its fiscal year, on "Form N-Q." These filings are available on the SEC's website at www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. (Call 1-800-SEC-0330 for information on the operation of the Public Reference Room.) You may also access this information from the "Products" section of the Federated Investors website at FederatedInvestors.com by clicking on "Portfolio Holdings" and selecting the name of the Fund, or by selecting the name of the Fund and clicking on "Portfolio Holdings." You must register on the website the first time you wish to access this information.

Mutual funds are not bank deposits or obligations, are not guaranteed by any bank, and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other government agency. Investment in mutual funds involves investment risk, including the possible loss of principal.

This report is authorized for distribution to prospective investors only when preceded or accompanied by the Fund's prospectus, which contains facts concerning its objective and policies, management fees, expenses, and other information.

IMPORTANT NOTICE ABOUT FUND DOCUMENT DELIVERY

In an effort to reduce costs and avoid duplicate mailings, the Fund(s) intend to deliver a single copy of certain documents to each household in which more than one shareholder of the Fund(s) resides (so-called "householding"), as permitted by applicable rules. The Fund's "householding" program covers its/their Prospectus and Statement of Additional Information, and supplements to each, as well as Semi-Annual and Annual Shareholder Reports and any Proxies or information statements. Shareholders must give their written consent to participate in the "householding" program. The Fund is also permitted to treat a shareholder as having given consent ("implied consent") if (i) shareholders with the same last name, or believed to be members of the same family, reside at the same street address or receive mail at the same post office box, (ii) the Fund gives notice of its intent to "household" at least sixty (60) days before it begins "householding" and (iii) none of the shareholders in the household have notified the Fund(s) or their agent of the desire to "opt out" of "householding." Shareholders who have granted written consent, or have been deemed to have granted implied consent, can revoke that consent and opt out of "householding" at any time: shareholders who purchased shares through an intermediary should contact their representative; other shareholders may call the Fund at 1-800-341-7400.

Federated Securities Corp., Distributor

Cusip 31421R775
Cusip 31421R767

36367 (3/07)

Federated is a registered mark of Federated Investors, Inc. 2007 (c)Federated Investors, Inc.

Federated Investors
World-Class Investment Manager

Federated MDT Small Cap Growth Fund

A Portfolio of Federated MDT Series

SEMI-ANNUAL SHAREHOLDER REPORT

January 31, 2007

Institutional Shares

FINANCIAL HIGHLIGHTS
SHAREHOLDER EXPENSE EXAMPLE
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
PORTFOLIO OF INVESTMENTS
STATEMENT OF ASSETS AND LIABILITIES
STATEMENT OF OPERATIONS
STATEMENT OF CHANGES IN NET ASSETS
NOTES TO FINANCIAL STATEMENTS
EVALUATION AND APPROVAL OF ADVISORY CONTRACT
VOTING PROXIES ON FUND PORTFOLIO SECURITIES
QUARTERLY PORTFOLIO SCHEDULE

Not FDIC Insured * May Lose Value * No Bank Guarantee

Financial Highlights

(For a Share Outstanding Throughout Each Period)

	Six Months Ended (unaudited) 1/31/2007	1	Period Ended 7/31/2006	2
Net Asset Value, Beginning of Period	$10.61		$10.00
Income From Investment Operations:
Net investment income (loss)	(0.05	)3	(0.13	)3
Net realized and unrealized gain on investments	1.09		0.74
TOTAL FROM INVESTMENT OPERATIONS	1.04		0.61
Net Asset Value, End of Period	$11.65		$10.61
Total Return4	9.80	%	6.10	%
Ratios to Average Net Assets:
Net expenses	1.51	%5	1.77	%5
Net investment income (loss)	(0.83	)%5	(1.25	)%5
Expense waiver/reimbursement6	49.89	%5	25.65	%5
Supplemental Data:
Net assets, end of period (000 omitted)	$464		$227
Portfolio turnover	82	%	157	%

1 MDT Small Cap Growth Fund (the “Predecessor Fund”) was reorganized into Federated MDT Small Cap Growth Fund (the “Fund”) as of the close of business on December 8, 2006. Prior to the reorganization, the Fund had no investment operations. The Fund is the successor to the Predecessor Fund. The performance information and financial information presented incorporates the operations of the Predecessor Fund, which, as a result of the reorganization, are the Fund’s operations.

2 Reflects operations for the period from September 15, 2005 (date of initial public investment) to July 31, 2006.

3 Per share numbers have been calculated using the average shares method.

4 Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. Total returns for periods of less than one year are not annualized.

5 Computed on an annualized basis.

6 This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above.

See Notes which are an integral part of the Financial Statements

Shareholder Expense Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; to the extent applicable, distribution (12b-1) fees and/or shareholder services fees and other Fund expenses. This Example is intended to help you to understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. It is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from August 1, 2006 to January 31, 2007.

ACTUAL EXPENSES

The first section of the table below provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you incurred over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses attributable to your investment during this period.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

The second section of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. Thus, you should not use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are required to be provided to enable you to compare the ongoing costs of investing in the Fund with other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.

	Beginning Account Value 8/1/2006	Ending Account Value 1/31/2007	Expenses Paid During Period1
Actual	$1,000	$1,098.00	$7.99
Hypothetical (assuming a 5% return before expenses)	$1,000	$1,017.59	$7.68

1 Expenses are equal to the Fund’s annualized net expense ratio of 1.51%, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

Portfolio of Investments Summary Table

At January 31, 2007, the Fund’s industry composition¹ was as follows:

Industry	Percentage of Total Net Assets
Specialty Retail	10.9%
Commercial Services & Supplies	9.2%
Energy Equipment & Services	7.3%
Software	5.6%
Machinery	5.0%
Health Care Providers & Services	4.6%
Hotels, Restaurants & Leisure	3.8%
Electronic Equipment & Instruments	3.7%
Health Care Equipment & Supplies	3.7%
Textiles, Apparel & Luxury Goods	3.6%
Metals & Mining	3.4%
Leisure Equipment & Products	3.2%
Computers & Peripherals	3.1%
Marine	2.9%
Household Durables	2.8%
Pharmaceuticals	2.7%
Capital Markets	2.6%
Trading Companies & Distributors	2.6%
Communications Equipment	2.3%
Chemicals	2.1%
Internet Software & Services	2.1%
Consumer Finance	2.0%
Semiconductors & Semiconductor Equipment	1.9%
Aerospace & Defense	1.5%
Building Products	1.5%
Diversified Financial Services	1.5%
Internet & Catalog Retail	1.4%
Electrical Equipment	1.1%
Commercial Banks	1.0%
Food & Staples Retailing	1.0%
IT Services	1.0%
Oil, Gas & Consumable Fuels	1.0%
Other2	6.5%
Other Assets and Liabilities--Net3	(8.6)%
TOTAL	100.0%

1 Except for Other Assets and Liabilities, industry classifications are based upon, and individual portfolio securities are assigned to, the classifications of the Global Industry Classification Standard (GICS) except that the adviser assigns a classification to securities not classified by the GICS and to securities for which the adviser does not have access to the classification made by the GICS.

2 For purposes of this table, industry classifications which constitute less than 1.0% of the Fund’s total net assets have been aggregated under the designation “Other”.

3 Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities.

Portfolio of Investments

January 31, 2007 (unaudited)

Shares				Value
		COMMON STOCKS--108.6%
		Aerospace & Defense--1.5%
310	1	K&F Industries Holdings, Inc.	$	7,220
325	1	Teledyne Technologies, Inc.		12,399
		TOTAL		19,619
		Air Freight & Logistics--0.9%
380	1	Hub Group, Inc., Class A		11,347
		Beverages--0.5%
96		MGP Ingredients, Inc.		2,119
106	1	The Boston Beer Co., Inc., Class A		3,726
		TOTAL		5,845
		Biotechnology--0.5%
127	1	United Therapeutics Corp.		6,807
		Building Products--1.5%
207		Apogee Enterprises, Inc.		3,939
183	1	Goodman Global, Inc.		3,252
214	1	NCI Building System, Inc.		12,181
		TOTAL		19,372
		Capital Markets--2.6%
39		Cohen & Steers, Inc.		1,901
155	1	GFI Group, Inc.		9,917
294		Greenhill & Co., Inc.		22,029
		TOTAL		33,847
		Chemicals--2.1%
1,199	1	Hercules, Inc.		23,512
171		Koppers Holdings, Inc.		4,345
		TOTAL		27,857
		Commercial Banks--1.0%
131	1	SVB Financial Group		6,111
83	1	Texas Capital Bancshares, Inc.		1,615
228		UCBH Holdings, Inc.		4,275
84		Wilshire Bancorp, Inc.		1,533
		TOTAL		13,534
		COMMON STOCKS--continued
		Commercial Services & Supplies--9.2%
76		Administaff, Inc.	$	3,111
32	1	CRA International, Inc.		1,725
127	1	Consolidated Graphics, Inc.		7,874
336		Deluxe Corp.		10,053
251		Healthcare Services Group, Inc.		7,259
176	1	Heidrick & Struggles International, Inc.		7,686
95	1	Huron Consulting Group, Inc.		4,926
423	1	IHS, Inc., Class A		16,099
481		Knoll, Inc.		10,577
192	1	Labor Ready, Inc.		3,606
140	1	Resources Connection, Inc.		4,396
51		Team, Inc.		1,742
712	1	TeleTech Holdings, Inc.		19,188
487		Watson Wyatt & Co. Holdings, Class A		21,569
		TOTAL		119,811
		Communications Equipment--2.3%
440	1	Arris Group, Inc.		6,257
339	1	C-COR Electronics, Inc.		4,641
240	1	Comtech Telecommunications Corp.		8,640
317	1	Netgear, Inc.		8,163
169	1	Tekelec, Inc.		2,603
		TOTAL		30,304
		Computers & Peripherals--3.1%
143	1	Brocade Communications Systems, Inc.		1,227
192	1	Intermec, Inc.		4,614
1,014		Logitech International SA		29,589
171	1	Synaptics, Inc.		4,627
		TOTAL		40,057
		Construction & Engineering--0.7%
298	1	Perini Corp.		9,006
		Construction Materials--0.4%
219	1	Headwaters, Inc.		4,976
		COMMON STOCKS--continued
		Consumer Finance--2.0%
80		ASTA Funding, Inc.	$	2,578
137		Cash America International, Inc.		5,851
189	1	Ezcorp, Inc., Class A		3,162
267	1	First Cash Financial Services, Inc.		6,269
180	1	World Acceptance Corp.		7,922
		TOTAL		25,782
		Containers & Packaging--0.5%
151		Silgan Holdings, Inc.		7,071
		Diversified Consumer Services--0.5%
76		DeVRY, Inc.		2,140
100	1	Vertrue, Inc.		4,649
		TOTAL		6,789
		Diversified Financial Services--1.5%
424		International Securities Exchange Holdings, Inc.		17,566
44	1	Portfolio Recovery Associates, Inc.		1,913
		TOTAL		19,479
		Diversified Telecommunication Services--0.4%
342		Alaska Communications Systems Holdings, Inc.		5,527
		Electrical Equipment--1.1%
299	1	II-VI, Inc.		8,982
111		Regal Beloit Corp.		5,586
		TOTAL		14,568
		Electronic Equipment & Instruments--3.7%
407	1	Benchmark Electronics, Inc.		9,219
404		Daktronics, Inc.		13,966
97	1	Faro Technologies, Inc.		2,404
33	1	Itron, Inc.		1,902
71		MTS Systems Corp.		3,037
155		Park Electrochemical Corp.		4,137
28	1	Rogers Corp.		1,447
170	1	ScanSource, Inc.		4,988
394	1	Smart Modular Technologies (WWH), Inc.		4,893
161	1	TTM Technologies		1,724
		TOTAL		47,717
		COMMON STOCKS--continued
		Energy Equipment & Services--7.3%
150	1	Atwood Oceanics, Inc.	$	7,256
405	1	Complete Production Services, Inc.		8,047
221	1	Dril-Quip, Inc.		8,221
108	1	Hercules Offshore, Inc.		2,856
235	1	Hornbeck Offshore Services, Inc.		6,467
110	1	Hydril Co.		8,701
735	1	Input/Output, Inc.		10,062
152		Lufkin Industries, Inc.		9,097
324	1	Oceaneering International, Inc.		12,788
371	1	Oil States International, Inc.		10,692
145	1	Trico Marine Services, Inc.		4,717
134	1	W-H Energy Services, Inc.		6,081
		TOTAL		94,985
		Food & Staples Retailing--1.0%
294		Longs Drug Stores Corp.		12,642
		Health Care Equipment & Supplies--3.7%
85	1	Align Technology, Inc.		1,407
70	1	Cholestech Corp.		1,178
413	1	Immucor, Inc.		13,026
67		Meridian Bioscience, Inc.		1,987
118	1	Palomar Medical Technologies, Inc.		5,872
137	1	Quidel Corp.		1,862
335		West Pharmaceutical Services, Inc.		16,258
109	1	Zoll Medical Corp.		6,837
		TOTAL		48,427
		Health Care Providers & Services--4.6%
265	1	Apria Healthcare Group, Inc.		7,359
488	1	Centene Corp.		12,161
444	1	Healthspring, Inc.		8,733
261	1	Nighthawk Radiology Holdings, Inc.		6,580
162	1	Psychiatric Solutions, Inc.		6,308
46	1	Radiation Therapy Services, Inc.		1,366
232	1	Wellcare Health Plans, Inc.		17,975
		TOTAL		60,482
		COMMON STOCKS--continued
		Hotels, Restaurants & Leisure--3.8%
94	1	Buffalo Wild Wings, Inc.	$	4,783
404	1	CEC Entertainment, Inc.		17,085
218	1	Life Time Fitness, Inc.		11,816
38	1	P. F. Chang’s China Bistro, Inc.		1,505
340		Ruby Tuesday, Inc.		9,727
102	1	WMS Industries, Inc.		4,045
		TOTAL		48,961
		Household Durables--2.8%
53	1	Directed Electronics, Inc.		530
412		Sealy Corp.		6,184
828		Tempur-Pedic International, Inc.		19,706
350		Tupperware Brands Corp.		8,166
47	1	Universal Electronics, Inc.		981
		TOTAL		35,567
		IT Services--1.0%
217		InfoUSA, Inc.		2,606
304		Syntel, Inc.		9,996
		TOTAL		12,602
		Industrial Conglomerates--0.9%
222	1	McDermott International, Inc.		11,464
		Insurance--0.7%
126		National Financial Partners Corp.		6,187
111		National Interstate Corp.		2,989
		TOTAL		9,176
		Internet & Catalog Retail--1.4%
430	1	Priceline.com, Inc.		18,327
		Internet Software & Services--2.1%
56	1	Travelzoo, Inc.		1,711
1,016	1	ValueClick, Inc.		25,928
		TOTAL		27,639
		Leisure Equipment & Products--3.2%
969	1	Marvel Entertainment, Inc.		27,054
501		Oakley, Inc.		11,603
255	1	Smith & Wesson Holding Corp.		2,831
		TOTAL		41,488
		Life Sciences Tools & Services--0.2%
61	1	Parexel International Corp.		1,998
		COMMON STOCKS--continued
		Machinery--5.0%
197		Actuant Corp.	$	9,809
201	1	Astec Industries, Inc.		7,238
78		Dynamic Materials Corp.		2,304
33		Freightcar America, Inc.		1,918
46		Greenbrier Cos., Inc.		1,328
47		Hurco Co., Inc.		1,556
193		Kaydon Corp.		8,318
327		Manitowoc, Inc.		16,958
67	1	Middleby Corp.		7,489
149		Nordson Corp.		7,706
		TOTAL		64,624
		Marine--2.9%
378	1	American Commercial Lines, Inc.		26,626
393		Horizon Lines, Inc., Class A		11,692
		TOTAL		38,318
		Metals & Mining--3.4%
432	1	AK Steel Holding Corp.		9,089
439		Chaparral Steel Co.		22,512
150	1	RTI International Metals		12,263
		TOTAL		43,864
		Oil, Gas & Consumable Fuels--1.0%
95		Alon USA Energy, Inc.		2,555
354		Frontier Oil Corp.		10,057
		TOTAL		12,612
		Pharmaceuticals--2.7%
134	1	KV Pharmaceutical Co., Class A		3,381
570		Medicis Pharmaceutical Corp., Class A		21,620
63	1	Pozen, Inc.		1,065
373	1	Sciele Pharma, Inc.		8,859
		TOTAL		34,925
		Road & Rail--0.2%
139	1	Celadon Group, Inc.		2,334
		COMMON STOCKS--continued
		Semiconductors & Semiconductor Equipment--1.9%
320	1	ATMI, Inc.	$	10,701
72	1	Advanced Energy Industries, Inc.		1,248
312	1	Amkor Technology, Inc.		3,285
95	1	Atheros Communications		2,257
42	1	Intevac, Inc.		929
209	1	RF Micro Devices, Inc.		1,613
63	1	SiRF Technology Holdings, Inc.		1,850
277	1	Silicon Image, Inc.		3,349
		TOTAL		25,232
		Software--5.6%
61	1	Ansoft Corp.		1,704
534	1	Hyperion Solutions Corp.		22,545
37	1	MICROS Systems Corp.		2,083
107	1	MicroStrategy, Inc., Class A		12,992
188		Quality Systems, Inc.		7,977
703	1	THQ, Inc.		21,301
254	1	VASCO Data Security International, Inc.		3,734
		TOTAL		72,336
		Specialty Retail--10.9%
258	1	Aeropostale, Inc.		9,273
340		Buckle, Inc.		11,417
40	1	Build-A-Bear Workshop, Inc.		1,204
144	1	Casual Male Retail Group, Inc.		1,797
195		Cato Corp., Class A		4,401
249	1	Children’s Place Retail Stores, Inc.		13,498
200	1	DSW, Inc., Class A		8,018
62		Deb Shops, Inc.		1,827
425	1	Dick’s Sporting Goods, Inc.		21,883
529	1	Dress Barn, Inc.		11,887
56	1	Genesco, Inc.		2,206
283	1	Guess ?, Inc.		20,407
382	1	Gymboree Corp.		16,537
345	1	Hibbett Sporting Goods, Inc.		11,078
39	1	Jos A. Bank Clothiers, Inc.		1,207
180	1	New York & Co.		2,630
76	1	Zumiez, Inc.		2,500
		TOTAL		141,770
		COMMON STOCKS--continued
		Textiles, Apparel & Luxury Goods--3.6%
483	1	Crocs, Inc.	$	24,314
144	1	Deckers Outdoor Corp.		8,397
207		K-Swiss, Inc., Class A		6,545
149	1	Maidenform Brands, Inc.		2,983
171	1	Steven Madden Ltd.		5,082
		TOTAL		47,321
		Trading Companies & Distributors--2.6%
347		Applied Industrial Technologies, Inc.		8,508
102	1	H&E Equipment Services, Inc.		2,401
280	1	Interline Brands, Inc.		6,364
283	1	WESCO International, Inc.		17,184
		TOTAL		34,457
		Wireless Telecommunication Services--0.1%
136	1	Syniverse Holdings, Inc.		1,996
		TOTAL COMMON STOCKS		1,412,862
		TOTAL INVESTMENTS--108.6% (IDENTIFIED COST $1,314,885)2		1,412,862
		OTHER ASSETS & LIABILITIES--NET--(8.6)%		(112,383	)
		TOTAL NET ASSETS--100%	$	1,300,479

1 Non-income producing security.

2 Also represents cost for federal tax purposes.

Note: The categories of investments are shown as a percentage of total net assets at January 31, 2007.

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

January 31, 2007 (unaudited)

Assets:
Total investments in securities, at value (identified cost $1,314,885)			$	1,412,862
Cash				12,972
Income receivable				274
Receivable for investments sold				43,258
Receivable for shares sold				11,280
TOTAL ASSETS				1,480,646
Liabilities:
Payable for investments purchased	$	45,398
Payable for shares redeemed		58,558
Payable for administrative personnel and services fee (Note 5)		31,813
Payable for transfer and dividend disbursing agent fees and expenses		27,707
Payable for Directors’/Trustees’ fees		1,022
Payable for audit fees		7,447
Payable for distribution services fee (Note 5)		2,427
Payable for shareholder services fee (Note 5)		311
Accrued expenses		5,484
TOTAL LIABILITIES				180,167
Net assets for 112,378 shares outstanding			$	1,300,479
Net Assets Consist of:
Paid-in capital			$	1,261,748
Net unrealized appreciation of investments				97,977
Accumulated net realized loss on investments				(52,590	)
Accumulated net investment income (loss)				(6,656	)
TOTAL NET ASSETS			$	1,300,479
Net Asset Value, Offering Price and Redemption Proceeds Per Share
Institutional Shares:
Net asset value per share ($463,608 ÷ 39,806 shares outstanding), no par value, unlimited shares authorized				$11.65
Offering price per share				$11.65
Redemption proceeds per share				$11.65
Class A Shares:
Net asset value per share ($338,611 ÷ 29,185 shares outstanding), no par value, unlimited shares authorized				$11.60
Offering price per share (100/94.50 of $11.60)1				$12.28
Redemption proceeds per share				$11.60
Class C Shares:
Net asset value per share ($498,260 ÷ 43,387 shares outstanding), no par value, unlimited shares authorized				$11.48
Offering price per share (100/99.00 of $11.48)1				$11.60
Redemption proceeds per share (99.00/100 of $11.48)1				$11.37

1 See “What Do Shares Cost?” in the Prospectus.

See Notes which are an integral part of the Financial Statements

Statement of Operations

Six Months Ended January 31, 2007 (unaudited)

Investment Income:
Dividends							$	3,232
Interest								96
TOTAL INCOME								3,328
Expenses:
Investment adviser fee (Note 5)				$	6,082
Administrative personnel and services fee (Note 5)					115,946
Custodian fees					13,424
Transfer and dividend disbursing agent fees and expenses					40,451
Directors’/Trustees’ fees					762
Auditing fees					7,310
Legal fees					4,538
Portfolio accounting fees					36,767
Distribution services fee--Class A Shares (Note 5)					236
Distribution services fee--Class C Shares (Note 5)					1,895
Shareholder services fee--Class A Shares (Note 5)					137
Shareholder services fee--Class C Shares (Note 5)					174
Share registration costs					22,249
Printing and postage					10,021
Insurance premiums					3,440
Miscellaneous					1,843
TOTAL EXPENSES					265,275
Waivers and Reimbursement:
Waiver of investment adviser fee (Note 5)	$	(6,082	)
Waiver of administrative personnel and services fee (Note 5)		(84,125	)
Waiver of transfer and dividend disbursing agent fees and expenses		(13,076	)
Waiver of portfolio accounting fees		(21,438	)
Reimbursement of other operating expenses (Note 5)		(130,570	)
TOTAL WAIVERS AND REIMBURSEMENT					(255,291	)
Net expenses								9,984
Net investment income (loss)								(6,656	)
Realized and Unrealized Gain (Loss) on Investments:
Net realized loss on investments								(31,465	)
Net change in unrealized depreciation of investments								125,381
Net realized and unrealized gain on investments								93,916
Change in net assets resulting from operations							$	87,260

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

	Six Months Ended (unaudited) 1/31/2007			Period Ended 7/31/2006		1
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	(6,656	)	$	(5,109	)
Net realized loss on investments		(31,465	)		(21,125	)
Net change in unrealized appreciation/depreciation on investments		125,381			(27,404	)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		87,260			(53,638	)
Share Transactions:
Proceeds from sale of shares		642,831			954,007
Cost of shares redeemed		(161,237	)		(168,744	)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		481,594			785,263
Change in net assets		568,854			731,625
Net Assets:
Beginning of period		731,625			--
End of period (including accumulated net investment income (loss) of $(6,656) and $0, respectively)	$	1,300,479		$	731,625

1 Reflects operations for the period from September 15, 2005 (date of initial public investment) to July 31, 2006.

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

January 31, 2007 (unaudited)

1. ORGANIZATION

Federated MDT Series (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Trust consists of eight portfolios. The financial statements included herein are only those of Federated MDT Small Cap Growth Fund (the “Fund”), a diversified portfolio. The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder’s interest is limited to the portfolio in which shares are held. The Fund offers three classes of shares: Institutional Shares, Class A Shares and Class C Shares. All shares of the Fund have equal rights with respect to voting, except on class-specific matters. The financial highlights of the Class A Shares and Class C Shares are presented separately. The primary investment objective of the Fund is long-term capital appreciation.

MDT Small Cap Growth Fund (the “Predecessor Fund”) was reorganized into the Fund as of the close of business on December 8, 2006. Prior to the reorganization, the Fund had no investment operations. The Fund is the successor to the Predecessor Fund, which commenced operations on September 15, 2005.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with generally accepted accounting principles (GAAP) in the United States of America.

Investment Valuation

Market values of the Fund’s portfolio securities are determined as follows:

• for equity securities, according to the last sale price or official closing price reported in the market in which they are primarily traded (either a national securities exchange or the over-the-counter market), if available;
• in the absence of recorded sales for equity securities, according to the mean between the last closing bid and asked prices;
• futures contracts and options are generally valued at market values established by the exchanges on which they are traded at the close of trading on such exchanges. Options traded in the over-the-counter market are generally valued according to the mean between the last bid and the last asked price for the option as provided by an investment dealer or other financial institution that deals in the option. The Board of Trustees (the “Trustees”) may determine in good faith that another method of valuing such investments is necessary to appraise their fair market value;
• prices for total return swaps are furnished by an independent pricing service and are based upon a valuation model incorporating underlying reference indexes, interest rates, yield curves and other market data or factors. Prices for credit default swaps are furnished by an independent pricing service and are based upon a valuation model incorporating default probabilities, recovery rates and other market data or factors;
• for mortgage-backed securities, based on the aggregate investment value of the projected cash flows to be generated by the security, as furnished by an independent pricing service;
• for investments in other open-end regulated investment companies, based on net asset value (NAV);
• for other fixed-income securities, according to prices as furnished by an independent pricing service, except that fixed-income securities with remaining maturities of less than 60 days at the time of purchase are valued at amortized cost; and
• for all other securities at fair value as determined in accordance with procedures established by and under the general supervision of the Trustees.

Prices for fixed-income securities furnished by a pricing service may be based on a valuation matrix which incorporates both dealer-supplied valuations and electronic data processing techniques. Such prices (other than prices of mortgage-backed securities) are generally intended to be indicative of the bid prices currently offered to institutional investors for the securities, except that prices for corporate fixed-income and asset-backed securities traded in the United States are generally intended to be indicative of the mean between such bid prices and asked prices. The Trustees have approved the use of such pricing services. A number of pricing services are available, and the Fund may use various pricing services or discontinue the use of any pricing service.

Prices provided by independent pricing services may be determined without relying exclusively on quoted prices and may consider institutional trading in similar groups of securities, yield, quality, stability, risk, coupon rate, maturity, type of issue, trading characteristics, and other market data or factors. From time to time, when prices cannot be obtained from an independent pricing service, securities may be valued based on quotes from broker-dealers or other financial institutions that trade the securities.

Trading in foreign securities may be completed at times which vary from the closing of the New York Stock Exchange (NYSE). In computing its NAV, the Fund values foreign securities using the latest closing price on the exchange on which they are traded immediately prior to the closing of the NYSE. Certain foreign currency exchange rates are generally determined at the latest rate prior to the closing of the NYSE. Foreign securities quoted in foreign currencies are translated into U.S. dollars at current rates. Events that affect these values and exchange rates may occur between the times at which they are determined and the closing of the NYSE. If such events materially affect the value of portfolio securities, these securities may be valued at their fair value as determined in good faith by the Trustees, although the actual calculation may be done by others.

Repurchase Agreements

It is the policy of the Fund to require the other party to a repurchase agreement to transfer to the Fund’s custodian or sub-custodian eligible securities or cash with a market value (after transaction costs) at least equal to the repurchase price to be paid under the repurchase agreement. The eligible securities are transferred to accounts with the custodian or sub-custodian in which the Fund holds a “securities entitlement” and exercises “control” as those terms are defined in the Uniform Commercial Code. The Fund has established procedures for monitoring the market value of the transferred securities and requiring the transfer of additional eligible securities if necessary to equal at least the repurchase price. These procedures also allow the other party to require securities to be transferred from the account to the extent that their market value exceeds the repurchase price or in exchange for other eligible securities of equivalent market value.

With respect to agreements to repurchase U.S. government securities and cash items, the Fund treats the repurchase agreement as an investment in the underlying securities and not as an obligation of the other party to the repurchase agreement. Other repurchase agreements are treated as obligations of the other party secured by the underlying securities. Nevertheless, the insolvency of the other party or other failure to repurchase the securities may delay the disposition of the underlying securities or cause the Fund to receive less than the full repurchase price. Under the terms of the repurchase agreement, any amounts received by the Fund in excess of the repurchase price and related transaction costs must be remitted to the other party.

The Fund may enter into repurchase agreements in which eligible securities are transferred into joint trading accounts maintained by the custodian or sub-custodian for investment companies and other clients advised by the Fund’s adviser and its affiliates. The Fund will participate on a pro rata basis with the other investment companies and clients in its share of the securities transferred under such repurchase agreements and in its share of proceeds from any repurchase or other disposition of such securities.

Investment Income, Gains and Losses, Expenses and Distributions

Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Distributions of net investment income, if any, are declared and paid annually. Non-cash dividends included in dividend income, if any, are recorded at fair value. Investment income, realized and unrealized gains and losses, and certain fund-level expenses are allocated to each class based on relative average daily net assets, except that each class bears certain expenses unique to that class such as distribution and shareholder services fees. Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses.

Premium and Discount Amortization

All premiums and discounts on fixed-income securities are amortized/accreted for financial statement purposes.

Federal Taxes

It is the Fund’s policy to comply with the Subchapter M provision of the Internal Revenue Code (the “Code”) and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal income tax is necessary.

When-Issued and Delayed Delivery Transactions

The Fund may engage in when-issued or delayed delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated.

Other

Investment transactions are accounted for on a trade date basis. Realized gains and losses from investment transactions are recorded on an identified cost basis.

3. SHARES OF BENEFICIAL INTEREST

The following tables summarize share activity:

	Six Months Ended 1/31/2007					Period Ended 7/31/20061
Institutional Shares:	Shares		Amount			Shares		Amount
Shares sold	24,317		$	276,874		33,093		$	353,962
Shares redeemed	(5,868	)		(62,987	)	(11,736	)		(133,278	)
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS	18,449		$	213,887		21,357		$	220,684
	Six Months Ended 1/31/2007					Period Ended 7/31/20061
Class A Shares:	Shares		Amount			Shares		Amount
Shares sold	20,361		$	221,576		17,938		$	198,850
Shares redeemed	(6,003	)		(68,896	)	(3,111	)		(34,280	)
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS	14,358		$	152,680		14,827		$	164,570
	Six Months Ended 1/31/2007					Period Ended 7/31/20061
Class C Shares:	Shares		Amount			Shares		Amount
Shares sold	13,080		$	144,381		33,176		$	401,195
Shares redeemed	(2,769	)		(29,354	)	(100	)		(1,186	)
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS	10,311		$	115,027		33,076		$	400,009
NET CHANGE RESULTING FROM SHARE TRANSACTIONS	43,118		$	481,594		69,260		$	785,263

1 Reflects operations for the period from September 15, 2005 (date of initial public investment) to July 31, 2006.

4. FEDERAL TAX INFORMATION

At January 31, 2007, the cost of investments for federal tax purposes was $1,314,885. The net unrealized appreciation of investments for federal tax purposes was $97,977. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $122,253 and net unrealized depreciation from investments for those securities having an excess of cost over value of $24,276.

At July 31, 2006, the Fund had a capital loss carryforward of $1,761 which will reduce the Fund’s taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Code and thus will reduce the amount of distributions to shareholders which would otherwise be necessary to relieve the Fund of any liability for federal income tax. Pursuant to the Code, such capital loss carryforward will expire in 2014.

5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated MDTA LLC, the Fund’s investment adviser (the “Adviser”), receives for its services an annual investment adviser fee equal to 1.15% of the Fund’s average daily net assets. Prior to December 8, 2006, the Adviser received an annual investment adviser fee equal to 1.25% of the Fund’s average daily net assets. Under the investment advisory contract, the Adviser is contractually obligated to waive, to the extent of its adviser fee, the amount, if any, by which the Fund’s annual operating expenses exceed the following levels for each Class of the Fund:

Class	Percentage of Average Daily Net Assets of Class
Institutional Shares	1.80%
Class A Shares	2.05%
Class C Shares	2.80%

The Adviser has agreed to keep these contractual limitations in place through December 8, 2008.

In addition, after fulfilling its contractual commitment, the Adviser may voluntarily choose to waive and/or reimburse any additional portion of its fee. The Adviser can modify or terminate this voluntary waiver and/or reimbursement at any time at its sole discretion. For the six months ended January 31, 2007, the Adviser waived $6,082 of its fee and reimbursed $130,570 of other operating expenses.

For a period of three years after the fiscal year in which the Adviser waived or reimbursed Fund expenses, the Adviser may seek reimbursement from the Fund to the extent that the Fund’s total annual operating expenses are less than the expense limitation. Due to the reorganization of the Fund, any expenses waived or reimbursed by the Adviser after December 8, 2006 may not be recovered by the Adviser.

Expenses waived/reimbursed by the Fund of $71,048 are subject to potential recovery by the expiration date of July 31, 2009.

Administrative Fee

Federated Administrative Services (FAS), under the Administrative Services Agreement (the “Agreement”), provides the Fund with administrative personnel and services. The fee paid to FAS is based on the average aggregate daily net assets of certain Federated funds as specified below:

Administrative Fee	Average Aggregate Daily Net Assets of the Federated Funds
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

The administrative fee received during any fiscal year shall be at least $150,000 per portfolio and $40,000 per each additional class of Shares. During the period from July 15, 2006 through December 8, 2006, the administrator contractually agreed to waive the portion of its fees which it would otherwise be entitled to receive from the Fund under the Agreement. The level of fees payable by the Fund to FAS for the period will not exceed the level of fees which the Fund would have paid during the period to its previous service provider under its previous administrative services contract. In addition, FAS may voluntarily choose to waive any portion of its fee. FAS can modify or terminate this voluntary waiver at any time at its sole discretion. For the six months ended January 31, 2007, the net fee paid to FAS was 6.349% of average aggregate daily net assets of the Fund.

Distribution Services Fee

The Fund has adopted a Distribution Plan (the “Plan”) pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will compensate Federated Securities Corp. (FSC), the principal distributor, from the daily net assets of the Fund’s Class A Shares and Class C Shares to finance activities intended to result in the sale of these shares. The Plan provides that the Fund may incur distribution expenses according to the following schedule annually, to compensate FSC:

Class	Percentage of Average Daily Net Assets of Class
Class A Shares	0.25%
Class C Shares	0.75%

Prior to December 11, 2006, the Fund incurred distribution expenses according to the following schedule annually, to compensate FSC:

Class	Percentage of Average Daily Net Assets of Class
Class A Shares	0.25%
Class C Shares	1.00%

FSC may voluntarily choose to waive any portion of its fee. FSC can modify or terminate this voluntary waiver at any time at its sole discretion. When FSC receives fees, it may pay some or all of them to financial intermediaries whose customers purchase shares. For the six months ended January 31, 2007, FSC retained $1,642 of fees paid by the Fund.

Sales Charges

For the six months ended January 31, 2007, FSC, the principal distributor, retained $30 in sales charges from the sale of Class A Shares. See “What Do Shares Cost?” in the Prospectus.

Shareholder Services Fee

Effective December 11, 2006, the Fund may pay fees (Service Fees) up to 0.25% of the average daily net assets of the Fund’s Class A Shares and Class C Shares to financial intermediaries or to Federated Shareholder Services Company (FSSC) for providing services to shareholders and maintaining shareholder accounts. FSSC or these financial intermediaries may voluntarily choose to waive any portion of their fee. In addition, FSSC may voluntarily reimburse the Fund for shareholder services fees. This voluntary waiver and/or reimbursement can be modified or terminated at any time. For the six months ended January 31, 2007, FSSC did not receive any fees paid by the Fund.

General

Certain of the Officers and Trustees of the Trust are Officers and Directors or Trustees of the above companies.

6. INVESTMENT TRANSACTIONS

Purchases and sales of investments, excluding long-term U.S. government securities and short-term obligations, for the six months ended January 31, 2007, were as follows:

Purchases	$	1,397,394
Sales	$	813,078

7. LINE OF CREDIT

The Trust entered into a $150,000,000 unsecured, uncommitted revolving line of credit (LOC) agreement with PNC Bank. The LOC was made available for extraordinary or emergency purposes, primarily for financing redemption payments. Borrowings are charged interest at a rate of 0.65% over the federal funds rate. As of January 31, 2007, there were no outstanding loans. During the six months ended January 31, 2007, the Fund did not utilize the LOC.

8. LEGAL PROCEEDINGS

Beginning in October 2003, Federated Investors, Inc. and various subsidiaries thereof (including the advisers and distributor for various investment companies, collectively, “Federated”), along with various investment companies sponsored by Federated (“Funds”) were named as defendants in several class action lawsuits now pending in the United States District Court for the District of Maryland. The lawsuits were purportedly filed on behalf of people who purchased, owned and/or redeemed shares of Federated-sponsored mutual funds during specified periods beginning November 1, 1998. The suits are generally similar in alleging that Federated engaged in illegal and improper trading practices including market timing and late trading in concert with certain institutional traders, which allegedly caused financial injury to the mutual fund shareholders. These lawsuits began to be filed shortly after Federated’s first public announcement that it had received requests for information on shareholder trading activities in the Funds from the Securities and Exchange Commission (“SEC”), the Office of the New York State Attorney General (“NYAG”), and other authorities. In that regard, on November 28, 2005, Federated announced that it had reached final settlements with the SEC and the NYAG with respect to those matters. As Federated previously reported in 2004, it has already paid approximately $8.0 million to certain funds as determined by an independent consultant. As part of these settlements, Federated agreed to pay for the benefit of fund shareholders additional disgorgement and a civil money penalty in the aggregate amount of an additional $72 million. Federated and various Funds have also been named as defendants in several additional lawsuits, the majority of which are now pending in the United States District Court for the Western District of Pennsylvania, alleging, among other things, excessive advisory and Rule 12b-1 fees. The Board of the Funds has retained the law firm of Dickstein Shapiro LLP to represent the Funds in these lawsuits. Federated and the Funds, and their respective counsel, are reviewing the allegations and intend to defend this litigation. Additional lawsuits based upon similar allegations may be filed in the future. The potential impact of these lawsuits, all of which seek unquantified damages, attorneys’ fees and expenses, and future potential similar suits is uncertain. Although we do not believe that these lawsuits will have a material adverse effect on the Funds, there can be no assurance that these suits, the ongoing adverse publicity and/or other developments resulting from the regulatory investigations will not result in increased Fund redemptions, reduced sales of Fund shares, or other adverse consequences for the Funds.

9. RECENT ACCOUNTING PRONOUNCEMENTS

In July 2006, the Financial Accounting Standards Board (FASB) released FASB Interpretation No. 48 “Accounting for Uncertainty in Income Taxes” (FIN 48). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken in the course of preparing the Fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax benefits of positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax expense in the current year. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years of the Fund no later than January 30, 2008. At this time, management is evaluating the implications of FIN 48 and its impact in the financial statements has not yet been determined.

In addition, in September 2006, FASB released Statement on Financial Accounting Standards No. 157, “Fair Value Measurements” (FAS 157) which is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of FAS 157 will have on the Funds’ financial statement disclosures.

Evaluation and Approval of Advisory Contract

FEDERATED MDT SMALL CAP GROWTH FUND (THE “FUND”)

The Fund’s Board reviewed the Fund’s investment advisory contract at meetings held in May and June 2006. The Board’s decision to approve the contract reflects the exercise of its business judgment on whether to authorize the creation and offering of this new investment vehicle, as proposed by, and based on information provided by, the Federated organization, and based on Federated’s recommendation to go forward with establishment of the Fund.

Federated proposed the creation of the Fund in connection with its acquisition of MDTA LLC (the “Acquisition”), the investment adviser to the MDT Small Cap Growth Fund (the “Predecessor Fund”). As part of that transaction, Federated proposed that the Predecessor Fund be reorganized with and into the Fund in a tax-free reorganization (the “Proposed Reorganization”), which would provide shareholders of the Predecessor Fund the opportunity to become shareholders of a fund with substantially similar investment objectives and policies and the same portfolio manager(s) as the Predecessor Fund, but with sales, distribution and other shareholder services offered by the funds managed and distributed by affiliates of Federated.

Prior to the meeting, the Adviser had recommended that the Federated Funds appoint a Senior Officer, whose duties include specified responsibilities relating to the process by which advisory fees are to be charged to a Federated Fund. The Senior Officer appointed by the Funds has the authority to retain consultants, experts, or staff as may be reasonably necessary to assist in the performance of his duties, reports directly to the Board, and may be terminated only with the approval of a majority of the independent members of the Board. The Senior Officer prepared and furnished to the Board an independent written evaluation that covered topics discussed below, which the Board considered, along with other information, in deciding to approve the advisory contract.

The Board also considered the anticipated compensation and benefits to be received by the Adviser. This includes fees to be received for services provided to the Fund by other entities in the Federated organization and research services that may be received by the Adviser from brokers that execute fund trades, as well as advisory fees. The Board is also familiar with judicial decisions concerning allegedly excessive investment advisory fees which have indicated that the following factors may be relevant to an Adviser’s fiduciary duty with respect to its receipt of compensation from a fund: the nature and quality of the services provided by the Adviser, including the performance of the Fund; the Adviser’s cost of providing the services; the extent to which the Adviser may realize “economies of scale” as the Fund grows larger; any indirect benefits that may accrue to the Adviser and its affiliates as a result of the Adviser’s relationship with the Fund; performance and expenses of comparable funds; and the extent to which the independent Board members are fully informed about all facts the Board deems relevant bearing on the Adviser’s services and fees. The Board further considered management fees (including any components thereof) charged to institutional and other clients of the Adviser for like services and costs to the Adviser and its affiliates of supplying services pursuant to the management fee agreements, excluding any intra-corporate profit and profit margins of the Adviser and its affiliates from supplying such services. The Board was aware of these considerations and was guided by them in its review of the Fund’s advisory contract to the extent they are appropriate and relevant, as discussed further below.

The Board considered and weighed these circumstances in light of its substantial accumulated experience in working with Federated on matters relating to other Federated funds, and was assisted in its deliberations by the advice of independent legal counsel. The Board’s consideration of the advisory contract included review of the Senior Officer’s evaluation, accompanying data and additional reports covering such matters as: the Adviser’s investment philosophy, revenue, profitability, personnel and processes; investment and operating strategies; the Fund’s investment objectives; the Fund’s expenses (including the advisory fee itself and the overall expense structure of the Fund, both in absolute terms and relative to similar and/or competing funds, with due regard for contractual or voluntary expense limitations); the nature, quality and extent of the advisory and other services to be provided to the Fund by the Adviser and its affiliates; the preferences and expectations of Fund shareholders and their relative sophistication; the continuing state of competition in the mutual fund industry and market practices; the range of comparable fees for similar funds in the mutual fund industry; the Fund’s relationship to the Federated family of funds which include a comprehensive array of funds with different investment objectives, policies and strategies which are available for exchange without the incurrence of additional sales charges; compliance and audit reports concerning the Federated funds and the Federated companies that service them (including communications from regulatory agencies), as well as Federated’s responses to any issues raised therein; and relevant developments in the mutual fund industry and how the Federated funds and/or Federated are responding to them. The Board’s evaluation process is evolutionary. The criteria considered and the emphasis placed on relevant criteria change in recognition of changing circumstances in the mutual fund marketplace.

With respect to the Fund’s expenses in particular, the Board has found the use of comparisons to other mutual funds with comparable investment programs to be particularly useful, given the high degree of competition in the mutual fund business. The Board focused on comparisons with other similar mutual funds more heavily than non-mutual fund products or services because, simply put, they are more relevant. For example, other mutual funds are the products most like the Fund, they are readily available to Fund shareholders as alternative investment vehicles, and they are the type of investment vehicle in fact chosen and maintained by the Fund’s anticipated investors. The range of their fees and expenses therefore appears to be a generally reliable indication of what consumers have found to be reasonable in the precise marketplace in which the Fund will compete. In this regard, the Senior Officer also reviewed Federated’s fees for providing advisory services to products outside the Federated family of funds (e.g., institutional and separate accounts). He concluded that mutual funds and institutional accounts are inherently different products. Those differences included, but are not limited to targeting different investors, being subject to different laws and regulations, different legal structure, distribution costs, average account size and portfolio management techniques made necessary by different cash flows. The Senior Officer did not consider these fee schedules to be significant in determining the appropriateness of mutual fund advisory contracts.

The Senior Officer reviewed reports compiled by Federated and directed the preparation of reports regarding the performance of, and fees charged by other mutual funds, noting his view that comparisons to fund peer groups is of significance in judging the reasonableness of proposed fees.

Because the Fund will employ the same portfolio managers and investment techniques, the Board reviewed the Predecessor Fund’s performance compared to its benchmark as an indicator of how the Adviser will execute the Fund’s investment program, which in turn assisted the Board in reaching a conclusion that the nature, extent, and quality of the Adviser’s investment management services were such as to warrant approval of the advisory contract. The Board noted that the Predecessor Fund and/or accounts managed by MDTA LLC with substantially similar investment objectives and policies outperformed its relevant benchmark on a gross basis for the one and three year periods reviewed. The Board determined that reviewing performance on a gross basis was appropriate in this instance because the fee structure for separately managed accounts is not comparable for the Fund as discussed above.

The Senior Officer noted that the Fund’s quantitative focus made it difficult to compare its fees and expenses to other peers, which varied widely in their complexity. He observed that the management of the Fund is among the more complex, relative to its peers and, consequently, that the advisory fee and projected net total expenses are at the high end compared to such peers. The Board reviewed the proposed fees and other expenses of the Fund with the Adviser and was satisfied that the proposed overall expense structure of the Fund appeared competitive. The Board will continue to monitor advisory fees and other expenses borne by the Fund. No changes were recommended to, and no objection was raised to the proposed advisory contract, and the Senior Officer noted that Federated proposed to provide appropriate administrative services to the Fund for the anticipated fees. The Board concluded that the nature, quality and scope of services to be provided to the Fund by the Adviser and its affiliates was satisfactory.

The Board also considered possible indirect benefits that may accrue to the Adviser and its affiliates as a result of the Acquisition. Other indirect benefits that may accrue to the Adviser and its affiliates as a result of the Adviser’s relationship with the Fund are essentially impossible to apply before the Fund has experienced any meaningful operating history. Nevertheless, in connection with the Board’s governance of other Federated funds, it should be noted that the Board regularly receives financial information about Federated, including reports on the compensation and benefits Federated derives from its relationships with the other Federated funds. These reports cover not only the fees under the advisory contracts, but also fees received by Federated’s subsidiaries for providing other services to the Federated funds under separate contracts (e.g., for serving as the Federated funds’ administrator). The reports also discuss any indirect benefit Federated may derive from its receipt of research services from brokers who execute Federated fund trades, as well as waivers of fees and/or reimbursements of expenses. In order for a fund to be competitive in the marketplace, Federated and its affiliates frequently waive fees and/or reimburse expenses and have indicated to the Board their intention to do so in the future, where appropriate. It was noted in this regard that the Adviser has agreed to limit the expenses of each class of the Fund at specified amounts for a two year period commencing on the date the Proposed Reorganization is consummated.

Federated furnished reports, requested by the Senior Officer, that made estimates of the allocation of expenses on a fund by fund basis, using allocation methodologies specified by the Senior Officer. The Senior Officer noted that, although they may apply consistent allocation processes, the inherent difficulties in allocating costs and the lack of consensus on how to allocate those costs causes such allocation reports to be of questionable value. The allocation reports were considered in the analysis by the Board but were determined to be of limited use.

The Board also reviewed profitability information for Federated and other publicly held fund management companies, provided by the Senior Officer, who noted the limited availability of such information, and concluded that Federated’s profit margins did not appear to be excessive.

The Senior Officer’s evaluation also discussed the notion of possible realization of “economies of scale” as a fund grows larger. The Board considered in this regard that the Adviser has made significant additional investments in the portfolio management and distribution efforts supporting all of the Federated funds and that the benefits of any economies, should they exist, were likely to be enjoyed by the fund complex as a whole. Finally, the Board also noted the absence of any applicable regulatory or industry guidelines on this subject, which is compounded by the lack of any common industry practice or general pattern with respect to structuring fund advisory fees with “breakpoints” that serve to reduce the fee as the fund attains a certain size. The Senior Officer did not recommend institution of breakpoints in pricing Federated’s fund advisory services at this time.

The Board based its decision to approve the advisory contract on the totality of the circumstances and relevant factors, and with a view to past and future long-term considerations. As noted, not all of the factors and considerations identified above were relevant to the Fund, nor does the Board consider any one of them to be determinative. With respect to the factors that are relevant, the Board’s decision to approve the contract reflects its determination that, based upon the information requested and supplied, Federated’s proposal to establish and manage the Fund, and its past performance and actions in providing services to other mutual funds, provide a satisfactory basis to support the business decision to approve the proposed arrangements.

Voting Proxies on Fund Portfolio Securities

A description of the policies and procedures that the Fund uses to determine how to vote proxies, if any, relating to securities held in the Fund’s portfolio is available, without charge and upon request, by calling 1-800-341-7400. A report on “Form N-PX” of how the Fund voted any such proxies during the most recent 12-month period ended June 30 is available through Federated’s website. Got to FederatedInvestors.com, select “Products,” select the “Prospectuses and Regulatory Reports” link, then select the Fund to access the link to Form N-PX. This information is also available from the EDGAR database on the SEC’s website at www.sec.gov.

Quarterly Portfolio Schedule

The Fund files with the SEC a complete schedule of its portfolio holdings, as of the close of the first and third quarters of its fiscal year, on “Form N-Q.” These filings are available on the SEC’s website at www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. (Call 1-800-SEC-0330 for information on the operation of the Public Reference Room.) You may also access this information from the “Products” section of the Federated Investors website at FederatedInvestors.com by clicking on “Portfolio Holdings” and selecting the name of the Fund, or by selecting the name of the Fund and clicking on “Portfolio Holdings.” You must register on the website the first time you wish to access this information.

Mutual funds are not bank deposits or obligations, are not guaranteed by any bank, and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other government agency. Investment in mutual funds involves investment risk, including the possible loss of principal.

This report is authorized for distribution to prospective investors only when preceded or accompanied by the Fund’s prospectus, which contains facts concerning its objective and policies, management fees, expenses, and other information.

IMPORTANT NOTICE ABOUT FUND DOCUMENT DELIVERY

In an effort to reduce costs and avoid duplicate mailings, the Fund(s) intend to deliver a single copy of certain documents to each household in which more than one shareholder of the Fund(s) resides (so-called “householding”), as permitted by applicable rules. The Fund’s “householding” program covers its/their Prospectus and Statement of Additional Information, and supplements to each, as well as Semi-Annual and Annual Shareholder Reports and any Proxies or information statements. Shareholders must give their written consent to participate in the “householding” program. The Fund is also permitted to treat a shareholder as having given consent (“implied consent”) if (i) shareholders with the same last name, or believed to be members of the same family, reside at the same street address or receive mail at the same post office box, (ii) the Fund gives notice of its intent to “household” at least sixty (60) days before it begins “householding” and (iii) none of the shareholders in the household have notified the Fund(s) or their agent of the desire to “opt out” of “householding.” Shareholders who have granted written consent, or have been deemed to have granted implied consent, can revoke that consent and opt out of “householding” at any time: shareholders who purchased shares through an intermediary should contact their representative; other shareholders may call the Fund at 1-800-341-7400.

Federated Investors
World-Class Investment Manager

Federated Securities Corp., Distributor

Cusip 31421R759

36369 (3/07)

Federated is a registered mark of Federated Investors, Inc.
2007 ©Federated Investors, Inc.

Federated
World-Class Investment Manager

Federated MDT Small Cap Value Fund

A Portfolio of Federated MDT Series

SEMI-ANNUAL SHAREHOLDER REPORT

January 31, 2007

Class A Shares
Class C Shares

FINANCIAL HIGHLIGHTS
SHAREHOLDER EXPENSE EXAMPLE
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
PORTFOLIO OF INVESTMENTS
STATEMENT OF ASSETS AND LIABILITIES
STATEMENT OF OPERATIONS
STATEMENT OF CHANGES IN NET ASSETS
NOTES TO FINANCIAL STATEMENTS
EVALUATION AND APPROVAL OF ADVISORY CONTRACT
VOTING PROXIES ON FUND PORTFOLIO SECURITIES
QUARTERLY PORTFOLIO SCHEDULE

Not FDIC Insured * May Lose Value * No Bank Guarantee

Financial Highlights - Class A Shares

(For a Share Outstanding Throughout Each Period)

	Six Months Ended (unaudited) 1/31/2007	1	Period Ended 7/31/2006	2
Net Asset Value, Beginning of Period	$10.61		$10.00
Income From Investment Operations:
Net investment income (loss)	(0.02	) 3	(0.07	) 3
Net realized and unrealized gain on investments	0.99		0.68
TOTAL FROM INVESTMENT OPERATIONS	0.97		0.61
Net Asset Value, End of Period	$11.58		$10.61
Total Return 4	9.14	%	6.10	%
Ratios to Average Net Assets:
Net expenses	1.75	% 5	2.00	% 5
Net investment income (loss)	(0.38	)% 5	(0.59	)% 5
Expense waiver/reimbursement 6	7.65	% 5	34.07	% 5
Supplemental Data:
Net assets, end of period (000 omitted)	$2,620		$699
Portfolio turnover	77	%	124	%

1 MDT Small Cap Value Fund (the "Predecessor Fund") was reorganized into Federated MDT Small Cap Value Fund (the "Fund") as of the close of business on December 8, 2006. Prior to the reorganization, the Fund had no investment operations. The Fund is the successor to the Predecessor Fund. The performance information and financial information presented incorporates the operations of the Predecessor Fund, which, as a result of the reorganization, are the Fund's operations.

2 Reflects operations for the period from September 15, 2005 (date of initial public investment) to July 31, 2006.

3 Per share numbers have been calculated using the average shares method.

4 Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. Total returns for periods of less than one year are not annualized.

5 Computed on an annualized basis.

6 This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above.

See Notes which are an integral part of the Financial Statements

Financial Highlights - Class C Shares

(For a Share Outstanding Throughout Each Period)

	Six Months Ended (unaudited) 1/31/2007	1	Period Ended 7/31/2006	2
Net Asset Value, Beginning of Period	$10.54		$10.00
Income From Investment Operations:
Net investment income (loss)	(0.06	) 3	(0.15	) 3
Net realized and unrealized gain on investments	0.98		0.69
TOTAL FROM INVESTMENT OPERATIONS	0.92		0.54
Net Asset Value, End of Period	$11.46		$10.54
Total Return 4	8.73	%	5.40	%
Ratios to Average Net Assets:
Net expenses	2.50	% 5	2.75	% 5
Net investment income (loss)	(1.13	)% 5	(1.34	)% 5
Expense waiver/reimbursement 6	6.80	% 5	34.07	% 5
Supplemental Data:
Net assets, end of period (000 omitted)	$575		$51
Portfolio turnover	77	%	124	%

1 The Predecessor Fund was reorganized into the Fund as of the close of business on December 8, 2006. Prior to the reorganization, the Fund had no investment operations. The Fund is the successor to the Predecessor Fund. The performance information and financial information presented incorporates the operations of the Predecessor Fund, which, as a result of the reorganization, are the Fund's operations.

2 Reflects operations for the period from September 15, 2005 (date of initial public investment) to July 31, 2006.

3 Per share numbers have been calculated using the average shares method.

4 Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. Total returns for periods of less than one year are not annualized.

5 Computed on an annualized basis.

6 This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above.

See Notes which are an integral part of the Financial Statements

Shareholder Expense Example

As a shareholder of the Fund, you incur two types of cost: (1) transaction costs, including sales charges (loads) on purchase or redemption payments; and (2) ongoing costs, including management fees; to the extent applicable, distribution (12b-1) fees and/or shareholder services fees and other Fund expenses. This Example is intended to help you to understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. It is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from August 1, 2006 to January 31, 2007.

ACTUAL EXPENSES

The first section of the table below provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you incurred over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled "Expenses Paid During Period" to estimate the expenses attributable to your investment during this period.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

The second section of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. Thus, you should not use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are required to be provided to enable you to compare the ongoing costs of investing in the Fund with other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase or redemption payments. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.

	Beginning Account Value 8/1/2006	Ending Account Value 1/31/2007	Expenses Paid During Period 1
Actual:
Class A Shares	$1,000	$1,091.40	$ 9.23
Class C Shares	$1,000	$ 1,087.30	$13.15
Hypothetical (assuming a 5% return before expenses):
Class A Shares	$1,000	$1,016.38	$ 8.89
Class C Shares	$1,000	$1,012.60	$12.68

1 Expenses are equal to the Fund's annualized net expense ratios, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). The annualized net expense ratios are as follows:

Class A Shares	1.75%
Class C Shares	2.50%

Portfolio of Investments Summary Table

At January 31, 2007, the Fund's industry composition ¹ was as follows:

Industry	Percentage of Total Net Assets
Insurance	13.8%
Commercial Banks	6.1%
Gas Utilities	5.7%
Electrical Equipment	5.6%
Oil, Gas & Consumable Fuels	5.0%
Thrifts & Mortgage Finance	4.6%
Personal Products	4.2%
Health Care Providers & Services	3.7%
Electric Utilities	3.6%
Electronic Equipment & Instruments	3.5%
Hotels, Restaurants & Leisure	3.4%
Textiles, Apparel & Luxury Goods	3.1%
Metals & Mining	3.0%
Aerospace & Defense	2.9%
Capital Markets	2.8%
Containers & Packaging	2.7%
Software	2.7%
Consumer Finance	2.6%
Commercial Services & Supplies	2.2%
Food & Staples Retailing	2.1%
Machinery	2.1%
Trading Companies & Distributors	2.1%
Semiconductors & Semiconductor Equipment	2.0%
Auto Components	1.9%
Multi-Utilities	1.4%
Communications Equipment	1.2%
Leisure Equipment & Products	1.2%
Specialty Retail	1.2%
Chemicals	1.1%
Other 2	2.2%
Other Assets and Liabilities--Net 3	0.3%
TOTAL	100.0%

1 Except for Other Assets and Liabilities, industry classifications are based upon, and individual portfolio securities are assigned to, the classifications of the Global Industry Classification Standard (GICS) except that the adviser assigns a classification to securities not classified by the GICS and to securities for which the adviser does not have access to the classification made by the GICS.

2 For purposes of this table, industry classifications which constitute less than 1.0% of the Fund's total net assets have been aggregated under the designation "Other."

3 Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities.

Portfolio of Investments

January 31, 2007 (unaudited)

Shares					Value
			COMMON STOCKS--99.7%
			Aerospace & Defense--2.9%
	3,350		Cubic Corp.	$	70,015
	6,755	1	K&F Industries Holdings, Inc.		157,324
	2,897		Triumph Group, Inc.		162,811
			TOTAL		390,150
			Airlines--0.4%
	1,035	1	Alaska Air Group, Inc.		44,350
	349		SkyWest, Inc.		9,472
			TOTAL		53,822
			Auto Components--1.9%
	4,602		ArvinMeritor, Inc.		88,588
	9,143		Cooper Tire & Rubber Co.		146,197
	317	1	Lear Corp.		10,734
			TOTAL		245,519
			Capital Markets--2.8%
	630		GAMCO Investors, Inc., Class A		24,463
	18,338	1	Knight Capital Group, Inc., Class A		331,368
	267	1	Piper Jaffray Cos., Inc.		18,407
			TOTAL		374,238
			Chemicals--1.1%
	1,640		CF Industries Holdings, Inc.		50,020
	3,619		Fuller (H.B.) Co.		93,624
	71		Westlake Chemical Corp.		2,356
			TOTAL		146,000
			Commercial Banks--6.1%
	1,245		Alabama National Bancorp		87,548
	1,246		Amcore Financial, Inc.		42,077
	310		BancFirst Corp.		15,088
	2,828		Chittenden Corp.		86,141
	952		Citizens Banking Corp.		23,334
	827		City Holding Co.		33,163
	2,115		Community Bank System, Inc.		47,926
	407		Community Trust Bancorp, Inc.		15,914
	2,386		First Charter Corp.		57,383
Shares					Value
			COMMON STOCKS--continued
			Commercial Banks--continued
	1,286		First Commonwealth Financial Corp.	$	16,911
	864		Integra Bank Corp.		21,401
	1,057		NBT Bancorp, Inc.		26,214
	1,214		Old National Bancorp		22,750
	543		Oriental Financial Group		6,961
	669		Park National Corp.		65,917
	856		S & T Bancorp, Inc.		29,669
	244		Sandy Spring Bancorp, Inc.		8,786
	323		Southwest Bancorp, Inc.		8,605
	4,716		Susquehanna Bankshares, Inc.		119,032
	723		Taylor Capital Group, Inc.		27,452
	1,463		Wesbanco, Inc.		46,523
			TOTAL		808,795
			Commercial Services & Supplies--2.2%
	1,850	1	Layne Christensen Co.		64,805
	4,182	1	Volt Information Science, Inc.		147,876
	1,799		Watson Wyatt & Co. Holdings		79,678
			TOTAL		292,359
			Communications Equipment--1.2%
	2,314	1	Anaren Microwave, Inc.		38,181
	5,876	1	C-COR Electronics, Inc.		80,442
	1,811	1	Oplink Communications, Inc.		34,373
			TOTAL		152,996
			Computers & Peripherals--0.3%
	696		Imation Corp.		30,283
	887	1	SimpleTech, Inc.		9,704
			TOTAL		39,987
			Consumer Finance--2.6%
	3,339		Advanta Corp., Class B		154,963
	4,283		Cash America International, Inc.		182,927
			TOTAL		337,890
			Containers & Packaging--2.7%
	3,109		Greif Brothers Corp., Class A		355,390
			Distributors--0.1%
	1,001	1	Audiovox Corp., Class A		15,435
Shares					Value
			COMMON STOCKS--continued
			Electric Utilities--3.6%
	3,673		Allete, Inc.	$	176,635
	944		Cleco Corp.		24,110
	6,588		Idacorp, Inc.		243,427
	829		Otter Tail Corp.		26,802
			TOTAL		470,974
			Electrical Equipment--5.6%
	9,860		Belden CDT, Inc.		426,445
	18	1	Genlyte Group, Inc.		1,364
	1,106	1	Superior Essex, Inc.		35,292
	6,609		Woodward Governor Co.		276,521
			TOTAL		739,622
			Electronic Equipment & Instruments--3.5%
	879	1	Benchmark Electronics, Inc.		19,909
	30		CTS Corp.		465
	8,162	1	Insight Enterprises, Inc.		165,933
	2,839		Methode Electronics, Inc., Class A		31,257
	3,781	1	TTM Technologies		40,495
	9,278		Technitrol, Inc.		204,302
			TOTAL		462,361
			Energy Equipment & Services--0.1%
	427	1	Dawson Geophysical Co.		14,830
			Food & Staples Retailing--2.1%
	6,524		Longs Drug Stores Corp.		280,532
			Gas Utilities--5.7%
	5,684		Atmos Energy Corp.		177,568
	2,054		Laclede Group, Inc.		66,714
	4,281		New Jersey Resources Corp.		199,495
	1,691		Northwest Natural Gas Co.		68,807
	2,726		South Jersey Industries, Inc.		90,067
	4,846		WGL Holdings, Inc.		153,279
			TOTAL		755,930
			Health Care Providers & Services--3.7%
	6,780	1	Amerigroup Corp.		245,843
	3,188	1	Corvel Corp.		150,250
	1,837	1	Cross Country Healthcare, Inc.		41,443
	1,682	1	MedCath Corp.		48,172
			TOTAL		485,708
Shares					Value
			COMMON STOCKS--continued
			Hotels, Restaurants & Leisure--3.4%
	4,170	1	CEC Entertainment, Inc.	$	176,349
	713		International Speedway Corp., Class A		37,240
	3,347		Marcus Corp.		80,027
	4,161		Speedway Motorsports, Inc.		160,531
			TOTAL		454,147
			Household Durables--0.2%
	793		CSS Industries, Inc.		28,603
			IT Services--0.2%
	1,567	1	Sykes Enterprises, Inc.		22,894
			Insurance--13.8%
	1,184		Alfa Corp.		22,330
	101	1	American Physicians Capital, Inc.		3,909
	318	1	CNA Surety Corp.		6,757
	1,130		Delphi Financial Group, Inc., Class A		44,567
	291		EMC Insurance Group, Inc.		9,786
	1,868		FBL Financial Group, Inc., Class A		72,497
	677	1	FPIC Insurance Group, Inc.		29,714
	1,670		Harleysville Group, Inc.		56,780
	4,581		Horace Mann Educators Corp.		90,841
	1,898		Infinity Property & Casualty		90,800
	2,006	1	Meadowbrook Insurance Group, Inc.		20,140
	1,236		Midland Co.		56,831
	1,565		National Interstate Corp.		42,145
	922		Nymagic, Inc.		37,553
	13,669		Odyssey Re Holdings Corp.		539,242
	715	1	ProAssurance Corp.		36,315
	1,776		RLI Corp.		98,284
	3,442		Selective Insurance Group, Inc.		177,091
	3,356		State Auto Financial Corp.		107,996
	2,693		United Fire & Casualty Co.		91,158
	4,108		Zenith National Insurance Corp.		187,736
			TOTAL		1,822,472
			Internet Software & Services--0.8%
	2,241	1	Greenfield Online, Inc.		32,270
	8,324	1	Sonicwall, Inc.		70,171
			TOTAL		102,441
Shares					Value
			COMMON STOCKS--continued
			Leisure Equipment & Products--1.2%
	6,885		Oakley, Inc.	$	159,457
			Machinery--2.1%
	315		Alamo Group, Inc.		7,617
	871		Cascade Corp.		46,790
	3,074		Gorman Rupp Co.		124,190
	1,763		Manitowoc, Inc.		91,429
	232		Robbins & Myers, Inc.		10,087
			TOTAL		280,113
			Marine--0.1%
	357	1	Genco Shipping & Trading Ltd.		10,899
			Metals & Mining--3.0%
	1,416	1	Brush Engineered Materials, Inc.		46,855
	347		Chaparral Steel Co.		17,794
	4,024		Cleveland Cliffs, Inc.		219,952
	75		Commercial Metals Corp.		2,033
	3,384		Ryerson, Inc.		106,156
			TOTAL		392,790
			Multi-Utilities--1.4%
	5,978		PNM Resources, Inc.		182,209
			Oil, Gas & Consumable Fuels--5.0%
	456		Alon USA Energy, Inc.		12,262
	7,305	1	General Maritime Corp.		266,559
	14,701		OMI Corp.		324,304
	804		Penn Virginia Corp.		58,917
			TOTAL		662,042
			Personal Products--4.2%
	10,836	1	NBTY, Inc.		561,847
			Semiconductors & Semiconductor Equipment--2.0%
	8,017	1	ATMI, Inc.		268,088
			Software--2.7%
	1,027	1	Hyperion Solutions Corp.		43,360
	34,015	1	Tibco Software, Inc.		315,659
			TOTAL		359,019
Shares					Value
			COMMON STOCKS--continued
			Specialty Retail--1.2%
	4,512	1	Cabela's, Inc., Class A	$	108,198
	486	1	Genesco, Inc.		19,144
	1,089	1	Payless ShoeSource, Inc.		36,972
			TOTAL		164,314
			Textiles, Apparel & Luxury Goods--3.1%
	627		Columbia Sportswear Co.		40,655
	1,100	1	Deckers Outdoor Corp.		64,141
	889		K-Swiss, Inc., Class A		28,110
	9,895	1	Warnaco Group, Inc.		279,930
			TOTAL		412,836
			Thrifts & Mortgage Finance--4.6%
	196		Corus Bankshares, Inc.		4,175
	2,744		Downey Financial Corp.		196,306
	25		First Financial Holdings, Inc.		887
	3,010	1	FirstFed Financial Corp.		207,539
	738		ITLA Capital Corp.		44,833
	317		TierOne Corp.		9,548
	2,001	1	Triad Guaranty, Inc.		103,051
	527		WSFS Financial Corp.		36,569
			TOTAL		602,908
			Trading Companies & Distributors--2.1%
	8,362		Applied Industrial Technologies, Inc.		205,036
	2,362	1	TransDigm Group, Inc.		75,230
			TOTAL		280,266
			TOTAL COMMON STOCKS		13,189,883
			TOTAL INVESTMENTS--99.7% (IDENTIFIED COST $12,484,830) 2		13,189,883
			OTHER ASSETS AND LIABILITIES - NET--0.3%		37,385
			TOTAL NET ASSETS--100%	$	13,227,268

1 Non-income producing security.

2 Also represents cost for federal tax purposes.

Note: The categories of investments are shown as a percentage of total net assets at January 31, 2007.

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

January 31, 2007 (unaudited)

Assets:
Total investments in securities, at value (identified cost $12,484,830)			$	13,189,883
Income receivable				7,446
Receivable for investments sold				514,653
Receivable for shares sold				8,480
TOTAL ASSETS				13,720,462
Liabilities:
Payable for investments purchased	$	351,500
Payable for shares redeemed		7,080
Payable to bank		31,605
Payable for administrative personnel and services fee (Note 5)		32,860
Payable for transfer and dividend disbursing agent fees and expenses		33,165
Payable for Directors'/Trustees' fees		1,033
Payable for portfolio accounting fees		14,872
Payable for distribution services fee (Note 5)		3,315
Payable for shareholder services fee (Note 5)		1,125
Accrued expenses		16,639
TOTAL LIABILITIES				493,194
Net assets for 1,139,879 shares outstanding			$	13,227,268
Net Assets Consist of:
Paid-in capital			$	12,701,434
Net unrealized appreciation of investments				705,053
Accumulated net realized loss on investments				(171,754	)
Accumulated net investment income (loss)				(7,465	)
TOTAL NET ASSETS			$	13,227,268

Statement of Assets and Liabilities - continued

Net Asset Value, Offering Price and Redemption Proceeds Per Share
Institutional Shares:
Net asset value per share ($10,032,587 ÷ 863,423 shares outstanding), no par value, unlimited shares authorized	$11.62
Offering price per share	$11.62
Redemption proceeds per share	$11.62
Class A Shares:
Net asset value per share ($2,619,619 ÷ 226,259 shares outstanding), no par value, unlimited shares authorized	$11.58
Offering price per share (100/94.50 of $11.58) 1	$12.25
Redemption proceeds per share	$11.58
Class C Shares:
Net asset value per share ($575,062 ÷ 50,197 shares outstanding), no par value, unlimited shares authorized	$11.46
Offering price per share (100/99.00 of $11.46) 1	$11.58
Redemption proceeds per share (99.00/100 of $11.46) 1	$11.35

1 See "What Do Shares Cost?" in the Prospectus.

See Notes which are an integral part of the Financial Statements

Statement of Operations

Six Months Ended January 31, 2007 (unaudited)

Investment Income:
Dividends							$	50,464
Interest								6,173
TOTAL INCOME								56,637
Expenses:
Investment adviser fee (Note 5)				$	47,846
Administrative personnel and services fee (Note 5)					115,946
Custodian fees					14,145
Transfer and dividend disbursing agent fees and expenses					46,392
Directors'/Trustees' fees					907
Auditing fees					7,310
Legal fees					4,537
Portfolio accounting fees					35,844
Distribution services fee--Class A Shares (Note 5)					1,324
Distribution services fee--Class C Shares (Note 5)					1,859
Shareholder services fee--Class A Shares (Note 5)					921
Shareholder services fee--Class C Shares (Note 5)					204
Share registration costs					24,804
Printing and postage					10,386
Insurance premiums					3,464
Miscellaneous					2,025
TOTAL EXPENSES					317,914
Waiver of investment adviser fee (Note 5)	$	(47,846	)
Waiver of administrative personnel and services fee (Note 5)		(83,041	)
Waiver of transfer and dividend disbursing agent fees and expenses		(12,318	)
Waiver of portfolio accounting fees		(20,355	)
Reimbursement of other operating expenses (Note 5)		(90,252	)
TOTAL WAIVERS AND REIMBURSEMENT					(253,812	)
Net expenses								64,102
Net investment income (loss)								(7,465	)
Realized and Unrealized Gain (Loss) on Investments:
Net realized loss on investments								(163,777	)
Net change in unrealized depreciation of investments								719,553
Net realized and unrealized gain on investments								555,776
Change in net assets resulting from operations							$	548,311

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

		Six Months Ended (unaudited) 1/31/2007			Period Ended 7/31/2006	1
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	(7,465	)	$	(1,041	)
Net realized loss on investments		(163,777	)		(7,977	)
Net change in unrealized appreciation/depreciation on investments		719,553			(14,500	)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		548,311			(23,518	)
Share Transactions:
Proceeds from sale of shares		12,914,263			1,550,300
Cost of shares redeemed		(1,583,860	)		(178,228	)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		11,330,403			1,372,072
Change in net assets		11,878,714			1,348,554
Net Assets:
Beginning of period		1,348,554			- --
End of period (including accumulated net investment income (loss) of $(7,465) and $0, respectively)	$	13,227,268		$	1,348,554

1 Reflects operations for the period from September 15, 2005 (date of initial public investment) to July 31, 2006.

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

January 31, 2007 (unaudited)

1. ORGANIZATION

Federated MDT Series (the "Trust") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Trust consists of eight portfolios. The financial statements included herein are only those of Federated MDT Small Cap Value Fund (the "Fund"), a diversified portfolio. The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held. The Fund offers three classes of shares: Institutional Shares, Class A Shares and Class C Shares. All shares of the Fund have equal rights with respect to voting, except on class-specific matters. The financial highlights of the Institutional Shares are presented separately. The primary investment objective of the Fund is long-term capital appreciation.

MDT Small Cap Value Fund (the "Predecessor Fund") was reorganized into the Fund as of the close of business on December 8, 2006. Prior to the reorganization, the Fund had no investment operations. The Fund is the successor to the Predecessor Fund, which commenced operations on September 15, 2005.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with generally accepted accounting principles (GAAP) in the United States of America.

Investment Valuation

Market values of the Fund's portfolio securities are determined as follows:

• for equity securities, according to the last sale price or official closing price reported in the market in which they are primarily traded (either a national securities exchange or the over-the-counter market), if available;
• in the absence of recorded sales for equity securities, according to the mean between the last closing bid and asked prices;
• futures contracts and options are generally valued at market values established by the exchanges on which they are traded at the close of trading on such exchanges. Options traded in the over-the-counter market are generally valued according to the mean between the last bid and the last asked price for the option as provided by an investment dealer or other financial institution that deals in the option. The Board of Trustees (the "Trustees") may determine in good faith that another method of valuing such investments is necessary to appraise their fair market value;
• prices for total return swaps are furnished by an independent pricing service and are based upon a valuation model incorporating underlying reference indexes, interest rates, yield curves and other market data or factors. Prices for credit default swaps are furnished by an independent pricing service and are based upon a valuation model incorporating default probabilities, recovery rates and other market data or factors;
• for mortgage-backed securities, based on the aggregate investment value of the projected cash flows to be generated by the security, as furnished by an independent pricing service;
• for investments in other open-end regulated investment companies, based on net asset value (NAV);
• for other fixed-income securities, according to prices as furnished by an independent pricing service, except that fixed-income securities with remaining maturities of less than 60 days at the time of purchase are valued at amortized cost; and
• for all other securities at fair value as determined in accordance with procedures established by and under the general supervision of the Trustees.

Prices for fixed-income securities furnished by a pricing service may be based on a valuation matrix which incorporates both dealer-supplied valuations and electronic data processing techniques. Such prices (other than prices of mortgage-backed securities) are generally intended to be indicative of the bid prices currently offered to institutional investors for the securities, except that prices for corporate fixed-income and asset-backed securities traded in the United States are generally intended to be indicative of the mean between such bid prices and asked prices. The Trustees have approved the use of such pricing services. A number of pricing services are available, and the Fund may use various pricing services or discontinue the use of any pricing service.

Prices provided by independent pricing services may be determined without relying exclusively on quoted prices and may consider institutional trading in similar groups of securities, yield, quality, stability, risk, coupon rate, maturity, type of issue, trading characteristics and other market data or factors. From time to time, when prices cannot be obtained from an independent pricing service, securities may be valued based on quotes from broker-dealers or other financial institutions that trade the securities.

Trading in foreign securities may be completed at times which vary from the closing of the New York Stock Exchange (NYSE). In computing its NAV, the Fund values foreign securities using the latest closing price on the exchange on which they are traded immediately prior to the closing of the NYSE. Certain foreign currency exchange rates are generally determined at the latest rate prior to the closing of the NYSE. Foreign securities quoted in foreign currencies are translated into U.S. dollars at current rates. Events that affect these values and exchange rates may occur between the times at which they are determined and the closing of the NYSE. If such events materially affect the value of portfolio securities, these securities may be valued at their fair value as determined in good faith by the Trustees, although the actual calculation may be done by others.

Repurchase Agreements

It is the policy of the Fund to require the other party to a repurchase agreement to transfer to the Fund's custodian or sub-custodian eligible securities or cash with a market value (after transaction costs) at least equal to the repurchase price to be paid under the repurchase agreement. The eligible securities are transferred to accounts with the custodian or sub-custodian in which the Fund holds a "securities entitlement" and exercises "control" as those terms are defined in the Uniform Commercial Code. The Fund has established procedures for monitoring the market value of the transferred securities and requiring the transfer of additional eligible securities if necessary to equal at least the repurchase price. These procedures also allow the other party to require securities to be transferred from the account to the extent that their market value exceeds the repurchase price or in exchange for other eligible securities of equivalent market value.

With respect to agreements to repurchase U.S. government securities and cash items, the Fund treats the repurchase agreement as an investment in the underlying securities and not as an obligation of the other party to the repurchase agreement. Other repurchase agreements are treated as obligations of the other party secured by the underlying securities. Nevertheless, the insolvency of the other party or other failure to repurchase the securities may delay the disposition of the underlying securities or cause the Fund to receive less than the full repurchase price. Under the terms of the repurchase agreement, any amounts received by the Fund in excess of the repurchase price and related transaction costs must be remitted to the other party.

The Fund may enter into repurchase agreements in which eligible securities are transferred into joint trading accounts maintained by the custodian or sub-custodian for investment companies and other clients advised by the Fund's adviser and its affiliates. The Fund will participate on a pro rata basis with the other investment companies and clients in its share of the securities transferred under such repurchase agreements and in its share of proceeds from any repurchase or other disposition of such securities.

Investment Income, Gains and Losses, Expenses and Distributions

Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Distributions of net investment income, if any, are declared and paid annually. Non-cash dividends included in dividend income, if any, are recorded at fair value. Investment income, realized and unrealized gains and losses, and certain fund-level expenses are allocated to each class based on relative average daily net assets, except that each class bears certain expenses unique to that class such as distribution and shareholder services fees. Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses.

Premium and Discount Amortization

All premiums and discounts on fixed-income securities are amortized/accreted for financial statement purposes.

Federal Taxes

It is the Fund's policy to comply with the Subchapter M provision of the Internal Revenue Code (the "Code") and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal income tax is necessary.

When-Issued and Delayed Delivery Transactions

The Fund may engage in when-issued or delayed delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated.

Other

Investment transactions are accounted for on a trade date basis. Realized gains and losses from investment transactions are recorded on an identified cost basis.

3. SHARES OF BENEFICIAL INTEREST

The following tables summarize share activity:

	Six Months Ended 1/31/2007					Period Ended 7/31/2006 1
Institutional Shares:	Shares			Amount		Shares			Amount
Shares sold	925,464		$	10,415,543		69,922		$	747,384
Shares redeemed	(118,368	)		(1,340,045	)	(13,595	)		(150,455	)
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS	807,096		$	9,075,498		56,327		$	596,929
	Six Months Ended 1/31/2007					Period Ended 7/31/2006 1
Class A Shares:	Shares			Amount		Shares			Amount
Shares sold	180,396		$	1,993,556		68,354		$	751,222
Shares redeemed	(19,946	)		(226,625	)	(2,545	)		(27,773	)
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS	160,450		$	1,766,931		65,809		$	723,449
	Six Months Ended 1/31/2007					Period Ended 7/31/2006 1
Class C Shares:	Shares			Amount		Shares			Amount
Shares sold	46,899		$	505,164		4,825		$	51,694
Shares redeemed	(1,527	)		(17,190	)	- --			- --
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS	45,372		$	487,974		4,825		$	51,694
NET CHANGE RESULTING FROM SHARE TRANSACTIONS	1,012,918		$	11,330,403		126,961		$	1,372,072

1 Reflects operations for the period from September 15, 2005 (date of initial public investment) to July 31, 2006.

4. FEDERAL TAX INFORMATION

At January 31, 2007, the cost of investments for federal tax purposes was $12,484,830. The net unrealized appreciation of investments for federal tax purposes was $705,053. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $941,455 and net unrealized depreciation from investments for those securities having an excess of cost over value of $236,402.

At July 31, 2006, the Fund had a capital loss carryforward of $252 which will reduce the Fund's taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Code and thus will reduce the amount of distributions to shareholders which would otherwise be necessary to relieve the Fund of any liability for federal income tax. Pursuant to the Code, such capital loss carryforward will expire in 2014.

5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated MDTA LLC, the Fund's investment adviser (the "Adviser"), receives for its services an annual investment adviser fee equal to 1.15% of the Fund's average daily net assets. Prior to December 8, 2006, the Adviser received an annual investment adviser fee equal to 1.25% of the Fund's average daily net assets. Under the advisory contract, the Adviser is contractually obligated to waive, to the extent of its adviser fee, the amount, if any, by which the Fund's annual operating expenses exceed the following levels for each Class of the Fund:

Share Class	Percentage of Average Daily Net Assets of Class
Institutional Shares	1.80%
Class A Shares	2.05%
Class C Shares	2.80%

The Adviser has agreed to keep these contractual limitations in place through December 8, 2008.

In addition, after fulfilling its contractual commitment, the Adviser may voluntarily choose to waive and/or reimburse any additional portion of its fee. The Adviser can modify or terminate this voluntary waiver and/or reimbursement at any time at its sole discretion. For the six months ended January 31, 2007, the Adviser waived $47,846 of its fee and reimbursed $90,252 of other operating expenses.

For a period of three years after the fiscal year in which the Adviser waived or reimbursed Fund expenses, the Adviser may seek reimbursement from the Fund to the extent that the Fund's total annual operating expenses are less than the expense limitation. Due to the reorganization of the Fund, any expenses waived or reimbursed by the Adviser after December 8, 2006 may not be recovered by the Adviser.

Expenses waived/reimbursed by the Fund of $69,505 are subject to potential recovery by the expiration date of July 31, 2009.

Administrative Fee

Federated Administrative Services (FAS), under the Administrative Services Agreement (the "Agreement"), provides the Fund with administrative personnel and services. The fee paid to FAS is based on the average aggregate daily net assets of certain Federated funds as specified below:

Administrative Fee	Average Aggregate Daily Net Assets of the Federated Funds
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

The administrative fee received during any fiscal year shall be at least $150,000 per portfolio and $40,000 per each additional class of Shares. During the period from July 15, 2006 through December 8, 2006, the administrator contractually agreed to waive the portion of its fee which it would otherwise be entitled to receive from the Fund under the Agreement. The level of fees payable by the Fund to FAS for the period will not exceed the level of fees which the Fund would have paid during the period to its previous service provider under its previous administrative services contract. In addition, FAS may voluntarily choose to waive any portion of its fee. FAS can modify or terminate this voluntary waiver at any time at its sole discretion. For the six months ended January 31, 2007, the net fee paid to FAS was 0.827% of average aggregate daily net assets of the Fund.

Distribution Services Fee

The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will compensate Federated Securities Corp. (FSC), the principal distributor, from the daily net assets of the Fund's Class A Shares and Class C Shares to finance activities intended to result in the sale of these shares. The Plan provides that the Fund may incur distribution expenses according to the following schedule annually, to compensate FSC:

Share Class	Percentage of Average Daily Net Assets of Class
Class A Shares	0.25%
Class C Shares	0.75%

Prior to December 11, 2006, the Fund incurred distribution expenses according to the following schedule annually, to compensate FSC:

Share Class	Percentage of Average Daily Net Assets of Class
Class A Shares	0.25%
Class C Shares	1.00%

FSC may voluntarily choose to waive any portion of its fee. FSC can modify or terminate this voluntary waiver at any time at its sole discretion. When FSC receives fees, it may pay some or all of them to financial intermediaries whose customers purchase shares. For the six months ended January 31, 2007, FSC retained $1,422 of fees paid by the Fund.

Sales Charges

For the six months ended January 31, 2007, FSC, the principal distributor, retained $427 in sales charges from the sale of Class A Shares. FSC also retained $9 of contingent deferred sales charges relating to redemptions of Class C Shares. See "What Do Shares Cost?" in the Prospectus.

Shareholder Services Fee

Effective December 11, 2006, the Fund may pay fees (Service Fees) up to 0.25% of the average daily net assets of the Fund's Class A Shares and Class C Shares to financial intermediaries or to Federated Shareholder Services Company (FSSC) for providing services to shareholders and maintaining shareholder accounts. FSSC or these financial intermediaries may voluntarily choose to waive any portion of their fee. In addition, FSSC may voluntarily reimburse the Fund for shareholder services fees. This voluntary waiver and/or reimbursement can be modified or terminated at any time. For the six months ended January 31, 2007, FSSC did not receive any fees paid by the Fund.

General

Certain of the Officers and Trustees of the Trust are Officers and Directors or Trustees of the above companies.

6. INVESTMENT TRANSACTIONS

Purchases and sales of investments, excluding long-term U.S. government securities and short-term obligations, for the six months ended January 31, 2007, were as follows:

Purchases	$	17,437,160
Sales	$	6,138,620

7. LINE OF CREDIT

The Trust entered into a $150,000,000 unsecured, uncommitted revolving line of credit (LOC) agreement with PNC Bank. The LOC was made available for extraordinary or emergency purposes, primarily for financing redemption payments. Borrowings are charged interest at a rate of 0.65% over the federal funds rate. As of January 31, 2007, there were no outstanding loans. During the six months ended January 31, 2007, the Fund did not utilize the LOC.

8. LEGAL PROCEEDINGS

Beginning in October 2003, Federated Investors, Inc. and various subsidiaries thereof (including the advisers and distributor for various investment companies, collectively, "Federated"), along with various investment companies sponsored by Federated ("Funds") were named as defendants in several class action lawsuits now pending in the United States District Court for the District of Maryland. The lawsuits were purportedly filed on behalf of people who purchased, owned and/or redeemed shares of Federated-sponsored mutual funds during specified periods beginning November 1, 1998. The suits are generally similar in alleging that Federated engaged in illegal and improper trading practices including market timing and late trading in concert with certain institutional traders, which allegedly caused financial injury to the mutual fund shareholders. These lawsuits began to be filed shortly after Federated's first public announcement that it had received requests for information on shareholder trading activities in the Funds from the Securities and Exchange Commission ("SEC"), the Office of the New York State Attorney General ("NYAG"), and other authorities. In that regard, on November 28, 2005, Federated announced that it had reached final settlements with the SEC and the NYAG with respect to those matters. As Federated previously reported in 2004, it has already paid approximately $8.0 million to certain funds as determined by an independent consultant. As part of these settlements, Federated agreed to pay for the benefit of fund shareholders additional disgorgement and a civil money penalty in the aggregate amount of an additional $72 million. Federated and various Funds have also been named as defendants in several additional lawsuits, the majority of which are now pending in the United States District Court for the Western District of Pennsylvania, alleging, among other things, excessive advisory and Rule 12b-1 fees. The Board of the Funds has retained the law firm of Dickstein Shapiro LLP to represent the Funds in these lawsuits. Federated and the Funds, and their respective counsel, are reviewing the allegations and intend to defend this litigation. Additional lawsuits based upon similar allegations may be filed in the future. The potential impact of these lawsuits, all of which seek unquantified damages, attorneys' fees and expenses, and future potential similar suits is uncertain. Although we do not believe that these lawsuits will have a material adverse effect on the Funds, there can be no assurance that these suits, the ongoing adverse publicity and/or other developments resulting from the regulatory investigations will not result in increased Fund redemptions, reduced sales of Fund shares, or other adverse consequences for the Funds.

9. RECENT ACCOUNTING PRONOUNCEMENTS

In July 2006, the Financial Accounting Standards Board (FASB) released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" (FIN 48). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax benefits of positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax expense in the current year. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years of the Fund no later than January 30, 2008. At this time, management is evaluating the implications of FIN 48 and its impact in the financial statements has not yet been determined.

In addition, in September 2006, FASB released Statement on Financial Accounting Standards No. 157, "Fair Value Measurements" (FAS 157) which is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of FAS 157 will have on the Funds' financial statement disclosures.

Evaluation and Approval of Advisory Contract

FEDERATED MDT SMALL CAP VALUE FUND (THE "FUND")

The Fund's Board reviewed the Fund's investment advisory contract at meetings held in May and June 2006. The Board's decision to approve the contract reflects the exercise of its business judgment on whether to authorize the creation and offering of this new investment vehicle, as proposed by, and based on information provided by, the Federated organization, and based on Federated's recommendation to go forward with establishment of the Fund.

Federated proposed the creation of the Fund in connection with its acquisition of MDTA LLC (the "Acquisition"), the investment adviser to the MDT Small Cap Value Fund (the "Predecessor Fund"). As part of that transaction, Federated proposed that the Predecessor Fund be reorganized with and into the Fund in a tax-free reorganization (the "Proposed Reorganization"), which would provide shareholders of the Predecessor Fund the opportunity to become shareholders of a fund with substantially similar investment objectives and policies and the same portfolio manager(s) as the Predecessor Fund, but with sales, distribution and other shareholder services offered by the funds managed and distributed by affiliates of Federated.

Prior to the meeting, the Adviser had recommended that the Federated Funds appoint a Senior Officer, whose duties include specified responsibilities relating to the process by which advisory fees are to be charged to a Federated Fund. The Senior Officer appointed by the Funds has the authority to retain consultants, experts, or staff as may be reasonably necessary to assist in the performance of his duties, reports directly to the Board, and may be terminated only with the approval of a majority of the independent members of the Board. The Senior Officer prepared and furnished to the Board an independent written evaluation that covered topics discussed below, which the Board considered, along with other information, in deciding to approve the advisory contract.

The Board also considered the anticipated compensation and benefits to be received by the Adviser. This includes fees to be received for services provided to the Fund by other entities in the Federated organization and research services that may be received by the Adviser from brokers that execute fund trades, as well as advisory fees. The Board is also familiar with judicial decisions concerning allegedly excessive investment advisory fees which have indicated that the following factors may be relevant to an Adviser's fiduciary duty with respect to its receipt of compensation from a fund: the nature and quality of the services provided by the Adviser, including the performance of the Fund; the Adviser's cost of providing the services; the extent to which the Adviser may realize "economies of scale" as the Fund grows larger; any indirect benefits that may accrue to the Adviser and its affiliates as a result of the Adviser's relationship with the Fund; performance and expenses of comparable funds; and the extent to which the independent Board members are fully informed about all facts the Board deems relevant bearing on the Adviser's services and fees. The Board further considered management fees (including any components thereof) charged to institutional and other clients of the Adviser for like services and costs to the Adviser and its affiliates of supplying services pursuant to the management fee agreements, excluding any intra-corporate profit and profit margins of the Adviser and its affiliates from supplying such services. The Board was aware of these considerations and was guided by them in its review of the Fund's advisory contract to the extent they are appropriate and relevant, as discussed further below.

The Board considered and weighed these circumstances in light of its substantial accumulated experience in working with Federated on matters relating to other Federated Funds, and was assisted in its deliberations by the advice of independent legal counsel. The Board's consideration of the advisory contract included review of the Senior Officer's evaluation, accompanying data and additional reports covering such matters as: the Adviser's investment philosophy, revenue, profitability, personnel and processes; investment and operating strategies; the Fund's investment objectives; the Fund's expenses (including the advisory fee itself and the overall expense structure of the Fund, both in absolute terms and relative to similar and/or competing funds, with due regard for contractual or voluntary expense limitations); the nature, quality and extent of the advisory and other services to be provided to the Fund by the Adviser and its affiliates; the preferences and expectations of Fund shareholders and their relative sophistication; the continuing state of competition in the mutual fund industry and market practices; the range of comparable fees for similar funds in the mutual fund industry; the Fund's relationship to the Federated family of funds which include a comprehensive array of funds with different investment objectives, policies and strategies which are available for exchange without the incurrence of additional sales charges; compliance and audit reports concerning the Federated Funds and the Federated companies that service them (including communications from regulatory agencies), as well as Federated's responses to any issues raised therein; and relevant developments in the mutual fund industry and how the Federated Funds and/or Federated are responding to them. The Board's evaluation process is evolutionary. The criteria considered and the emphasis placed on relevant criteria change in recognition of changing circumstances in the mutual fund marketplace.

With respect to the Fund's expenses in particular, the Board has found the use of comparisons to other mutual funds with comparable investment programs to be particularly useful, given the high degree of competition in the mutual fund business. The Board focused on comparisons with other similar mutual funds more heavily than non-mutual fund products or services because, simply put, they are more relevant. For example, other mutual funds are the products most like the Fund, they are readily available to Fund shareholders as alternative investment vehicles, and they are the type of investment vehicle in fact chosen and maintained by the Fund's anticipated investors. The range of their fees and expenses therefore appears to be a generally reliable indication of what consumers have found to be reasonable in the precise marketplace in which the Fund will compete. In this regard, the Senior Officer also reviewed Federated's fees for providing advisory services to products outside the Federated family of funds (e.g., institutional and separate accounts). He concluded that mutual funds and institutional accounts are inherently different products. Those differences included, but are not limited to targeting different investors, being subject to different laws and regulations, different legal structure, distribution costs, average account size and portfolio management techniques made necessary by different cash flows. The Senior Officer did not consider these fee schedules to be significant in determining the appropriateness of mutual fund advisory contracts.

The Senior Officer reviewed reports compiled by Federated and directed the preparation of reports regarding the performance of, and fees charged by other mutual funds, noting his view that comparisons to fund peer groups is of significance in judging the reasonableness of proposed fees.

Because the Fund will employ the same portfolio managers and investment techniques, the Board reviewed the Predecessor Fund's performance compared to its benchmark as an indicator of how the Adviser will execute the Fund's investment program, which in turn assisted the Board in reaching a conclusion that the nature, extent and quality of the Adviser's investment management services were such as to warrant approval of the advisory contract. The Board noted that the Predecessor Fund and/or accounts managed by MDTA LLC with substantially similar investment objectives and policies outperformed its relevant benchmark for the one- and three-year periods reviewed. The Board determined that reviewing performance on a gross basis was appropriate in this instance because the fee structure for separately managed accounts is not comparable for the Fund as discussed above.

The Senior Officer noted that the Fund's quantitative focus made it difficult to compare its fees and expenses to other peers, which varied widely in their complexity. He observed that the management of the Fund is among the more complex, relative to its peers and, consequently, that the advisory fee and projected net total expenses are at the high end compared to such peers. The Board reviewed the proposed fees and other expenses of the Fund with the Adviser and was satisfied that the proposed overall expense structure of the Fund appeared competitive. The Board will continue to monitor advisory fees and other expenses borne by the Fund. No changes were recommended to, and no objection was raised to the proposed advisory contract, and the Senior Officer noted that Federated proposed to provide appropriate administrative services to the Fund for the anticipated fees. The Board concluded that the nature, quality and scope of services to be provided to the Fund by the Adviser and its affiliates were satisfactory.

The Board also considered possible indirect benefits that may accrue to the Adviser and its affiliates as a result of the Acquisition. Other indirect benefits that may accrue to the Adviser and its affiliates as a result of the Adviser's relationship with the Fund are essentially impossible to apply before the Fund has experienced any meaningful operating history. Nevertheless, in connection with the Board's governance of other Federated Funds, it should be noted that the Board regularly receives financial information about Federated, including reports on the compensation and benefits Federated derives from its relationships with the other Federated Funds. These reports cover not only the fees under the advisory contracts, but also fees received by Federated's subsidiaries for providing other services to the Federated Funds under separate contracts (e.g., for serving as the Federated Funds' administrator). The reports also discuss any indirect benefit Federated may derive from its receipt of research services from brokers who execute Federated fund trades, as well as waivers of fees and/or reimbursements of expenses. In order for a fund to be competitive in the marketplace, Federated and its affiliates frequently waive fees and/or reimburse expenses and have indicated to the Board their intention to do so in the future, where appropriate. It was noted in this regard that the Adviser has agreed to limit the expenses of each class of the Fund at specified amounts for a two-year period commencing on the date the Proposed Reorganization is consummated.

Federated furnished reports, requested by the Senior Officer, that made estimates of the allocation of expenses on a fund by fund basis, using allocation methodologies specified by the Senior Officer. The Senior Officer noted that, although they may apply consistent allocation processes, the inherent difficulties in allocating costs and the lack of consensus on how to allocate those costs causes such allocation reports to be of questionable value. The allocation reports were considered in the analysis by the Board but were determined to be of limited use.

The Board also reviewed profitability information for Federated and other publicly held fund management companies, provided by the Senior Officer, who noted the limited availability of such information, and concluded that Federated's profit margins did not appear to be excessive.

The Senior Officer's evaluation also discussed the notion of possible realization of "economies of scale" as a fund grows larger. The Board considered in this regard that the Adviser has made significant additional investments in the portfolio management and distribution efforts supporting all of the Federated Funds and that the benefits of any economies, should they exist, were likely to be enjoyed by the fund complex as a whole. Finally, the Board also noted the absence of any applicable regulatory or industry guidelines on this subject, which is compounded by the lack of any common industry practice or general pattern with respect to structuring fund advisory fees with "breakpoints" that serve to reduce the fee as the fund attains a certain size. The Senior Officer did not recommend institution of breakpoints in pricing Federated's fund advisory services at this time.

The Board based its decision to approve the advisory contract on the totality of the circumstances and relevant factors, and with a view to past and future long-term considerations. As noted, not all of the factors and considerations identified above were relevant to the Fund, nor does the Board consider any one of them to be determinative. With respect to the factors that are relevant, the Board's decision to approve the contract reflects its determination that, based upon the information requested and supplied, Federated's proposal to establish and manage the Fund, and its past performance and actions in providing services to other mutual funds, provide a satisfactory basis to support the business decision to approve the proposed arrangements.

Voting Proxies on Fund Portfolio Securities

A description of the policies and procedures that the Fund uses to determine how to vote proxies, if any, relating to securities held in the Fund's portfolio is available, without charge and upon request, by calling 1-800-341-7400. A report on "Form N-PX" of how the Fund voted any such proxies during the most recent 12-month period ended June 30 is available through Federated's website. Go to FederatedInvestors.com, select "Products," select the "Prospectuses and Regulatory Reports" link, then select the Fund to access the link to Form N-PX. This information is also available from the EDGAR database on the SEC's website at www.sec.gov.

Quarterly Portfolio Schedule

The Fund files with the SEC a complete schedule of its portfolio holdings, as of the close of the first and third quarters of its fiscal year, on "Form N-Q." These filings are available on the SEC's website at www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. (Call 1-800-SEC-0330 for information on the operation of the Public Reference Room.) You may also access this information from the "Products" section of the Federated Investors website at FederatedInvestors.com by clicking on "Portfolio Holdings" and selecting the name of the Fund, or by selecting the name of the Fund and clicking on "Portfolio Holdings." You must register on the website the first time you wish to access this information.

Mutual funds are not bank deposits or obligations, are not guaranteed by any bank, and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other government agency. Investment in mutual funds involves investment risk, including the possible loss of principal.

This report is authorized for distribution to prospective investors only when preceded or accompanied by the Fund's prospectus, which contains facts concerning its objective and policies, management fees, expenses, and other information.

IMPORTANT NOTICE ABOUT FUND DOCUMENT DELIVERY

In an effort to reduce costs and avoid duplicate mailings, the Fund(s) intend to deliver a single copy of certain documents to each household in which more than one shareholder of the Fund(s) resides (so-called "householding"), as permitted by applicable rules. The Fund's "householding" program covers its/their Prospectus and Statement of Additional Information, and supplements to each, as well as Semi-Annual and Annual Shareholder Reports and any Proxies or information statements. Shareholders must give their written consent to participate in the "householding" program. The Fund is also permitted to treat a shareholder as having given consent ("implied consent") if (i) shareholders with the same last name, or believed to be members of the same family, reside at the same street address or receive mail at the same post office box, (ii) the Fund gives notice of its intent to "household" at least sixty (60) days before it begins "householding" and (iii) none of the shareholders in the household have notified the Fund(s) or their agent of the desire to "opt out" of "householding." Shareholders who have granted written consent, or have been deemed to have granted implied consent, can revoke that consent and opt out of "householding" at any time: shareholders who purchased shares through an intermediary should contact their representative; other shareholders may call the Fund at 1-800-341-7400.

Federated Securities Corp., Distributor

Cusip 31421R742
Cusip 31421R734

36365 (3/07)

Federated is a registered mark of Federated Investors, Inc. 2007 (c)Federated Investors, Inc.

Federated
World-Class Investment Manager

Federated MDT Small Cap Value Fund

A Portfolio of Federated MDT Series

SEMI-ANNUAL SHAREHOLDER REPORT

January 31, 2007

Institutional Shares

FINANCIAL HIGHLIGHTS
SHAREHOLDER EXPENSE EXAMPLE
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
PORTFOLIO OF INVESTMENTS
STATEMENT OF ASSETS AND LIABILITIES
STATEMENT OF OPERATIONS
STATEMENT OF CHANGES IN NET ASSETS
NOTES TO FINANCIAL STATEMENTS
EVALUATION AND APPROVAL OF ADVISORY CONTRACT
VOTING PROXIES ON FUND PORTFOLIO SECURITIES
QUARTERLY PORTFOLIO SCHEDULE

Not FDIC Insured * May Lose Value * No Bank Guarantee

Financial Highlights

(For a Share Outstanding Throughout Each Period)

	Six Months Ended (unaudited) 1/31/2007	1	Period Ended 7/31/2006	2
Net Asset Value, Beginning of Period	$10.64		$10.00
Income From Investment Operations:
Net investment income (loss)	(0.00	) 3,4	(0.03	) 4
Net realized and unrealized gain on investments	0.98		0.67
TOTAL FROM INVESTMENT OPERATIONS	0.98		0.64
Net Asset Value, End of Period	$11.62		$10.64
Total Return 5	9.21	%	6.40	%
Ratios to Average Net Assets:
Net expenses	1.50	% 6	1.75	% 6
Net investment income (loss)	(0.06	)% 6	(0.34	)% 6
Expense waiver/reimbursement 7	5.95	% 6	34.07	% 6
Supplemental Data:
Net assets, end of period (000 omitted)	$10,033		$599
Portfolio turnover	77	%	124	%

1 MDT Small Cap Value Fund (the "Predecessor Fund") was reorganized into Federated MDT Small Cap Value Fund (the "Fund") as of the close of business on December 8, 2006. Prior to the reorganization, the Fund had no investment operations. The Fund is the successor to the Predecessor Fund. The performance information and financial information presented incorporates the operations of the Predecessor Fund, which, as a result of the reorganization, are the Fund's operations.

2 Reflects operations for the period from September 15, 2005 (date of initial public investment) to July 31, 2006.

3 Represents less than $0.01.

4 Per share numbers have been calculated using the average shares method.

5 Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. Total returns for periods of less than one year are not annualized.

6 Computed on an annualized basis.

7 This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above.

See Notes which are an integral part of the Financial Statements

Shareholder Expense Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; to the extent applicable, distribution (12b-1) fees and/or shareholder services fees and other Fund expenses. This Example is intended to help you to understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. It is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from August 1, 2006 to January 31, 2007.

ACTUAL EXPENSES

The first section of the table below provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you incurred over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled "Expenses Paid During Period" to estimate the expenses attributable to your investment during this period.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

The second section of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. Thus, you should not use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are required to be provided to enable you to compare the ongoing costs of investing in the Fund with other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.

	Beginning Account Value 8/1/2006	Ending Account Value 1/31/2007	Expenses Paid During Period 1
Actual	$1,000	$1,092.10	$7.91
Hypothetical (assuming a 5% return before expenses)	$1,000	$1,017.64	$7.63

1 Expenses are equal to the Fund's annualized net expense ratio of 1.50%, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

Portfolio of Investments Summary Table

At January 31, 2007, the Fund's industry composition ¹ was as follows:

Industry	Percentage of Total Net Assets
Insurance	13.8	%
Commercial Banks	6.1	%
Gas Utilities	5.7	%
Electrical Equipment	5.6	%
Oil, Gas & Consumable Fuels	5.0	%
Thrifts & Mortgage Finance	4.6	%
Personal Products	4.2	%
Health Care Providers & Services	3.7	%
Electric Utilities	3.6	%
Electronic Equipment & Instruments	3.5	%
Hotels, Restaurants & Leisure	3.4	%
Textiles, Apparel & Luxury Goods	3.1	%
Metals & Mining	3.0	%
Aerospace & Defense	2.9	%
Capital Markets	2.8	%
Containers & Packaging	2.7	%
Software	2.7	%
Consumer Finance	2.6	%
Commercial Services & Supplies	2.2	%
Food & Staples Retailing	2.1	%
Machinery	2.1	%
Trading Companies & Distributors	2.1	%
Semiconductors & Semiconductor Equipment	2.0	%
Auto Components	1.9	%
Multi-Utilities	1.4	%
Communications Equipment	1.2	%
Leisure Equipment & Products	1.2	%
Specialty Retail	1.2	%
Chemicals	1.1	%
Other 2	2.2	%
Other Assets and Liabilities--Net 3	0.3	%
TOTAL	100.0	%

1 Except for Other Assets and Liabilities, industry classifications are based upon, and individual portfolio securities are assigned to, the classifications of the Global Industry Classification Standard (GICS) except that the adviser assigns a classification to securities not classified by the GICS and to securities for which the adviser does not have access to the classification made by the GICS.

2 For purposes of this table, industry classifications which constitute less than 1.0% of the Fund's total net assets have been aggregated under the designation "Other."

3 Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities.

Portfolio of Investments

January 31, 2007 (unaudited)

Shares					Value
			COMMON STOCKS--99.7%
			Aerospace & Defense--2.9%
	3,350		Cubic Corp.	$	70,015
	6,755	1	K&F Industries Holdings, Inc.		157,324
	2,897		Triumph Group, Inc.		162,811
			TOTAL		390,150
			Airlines--0.4%
	1,035	1	Alaska Air Group, Inc.		44,350
	349		SkyWest, Inc.		9,472
			TOTAL		53,822
			Auto Components--1.9%
	4,602		ArvinMeritor, Inc.		88,588
	9,143		Cooper Tire & Rubber Co.		146,197
	317	1	Lear Corp.		10,734
			TOTAL		245,519
			Capital Markets--2.8%
	630		GAMCO Investors, Inc., Class A		24,463
	18,338	1	Knight Capital Group, Inc., Class A		331,368
	267	1	Piper Jaffray Cos., Inc.		18,407
			TOTAL		374,238
			Chemicals--1.1%
	1,640		CF Industries Holdings, Inc.		50,020
	3,619		Fuller (H.B.) Co.		93,624
	71		Westlake Chemical Corp.		2,356
			TOTAL		146,000
Shares					Value
			COMMON STOCKS--continued
			Commercial Banks--6.1%
	1,245		Alabama National Bancorp	$	87,548
	1,246		Amcore Financial, Inc.		42,077
	310		BancFirst Corp.		15,088
	2,828		Chittenden Corp.		86,141
	952		Citizens Banking Corp.		23,334
	827		City Holding Co.		33,163
	2,115		Community Bank System, Inc.		47,926
	407		Community Trust Bancorp, Inc.		15,914
	2,386		First Charter Corp.		57,383
	1,286		First Commonwealth Financial Corp.		16,911
	864		Integra Bank Corp.		21,401
	1,057		NBT Bancorp, Inc.		26,214
	1,214		Old National Bancorp		22,750
	543		Oriental Financial Group		6,961
	669		Park National Corp.		65,917
	856		S & T Bancorp, Inc.		29,669
	244		Sandy Spring Bancorp, Inc.		8,786
	323		Southwest Bancorp, Inc.		8,605
	4,716		Susquehanna Bankshares, Inc.		119,032
	723		Taylor Capital Group, Inc.		27,452
	1,463		Wesbanco, Inc.		46,523
			TOTAL		808,795
			Commercial Services & Supplies--2.2%
	1,850	1	Layne Christensen Co.		64,805
	4,182	1	Volt Information Science, Inc.		147,876
	1,799		Watson Wyatt & Co. Holdings		79,678
			TOTAL		292,359
Shares					Value
			COMMON STOCKS--continued
			Communications Equipment--1.2%
	2,314	1	Anaren Microwave, Inc.	$	38,181
	5,876	1	C-COR Electronics, Inc.		80,442
	1,811	1	Oplink Communications, Inc.		34,373
			TOTAL		152,996
			Computers & Peripherals--0.3%
	696		Imation Corp.		30,283
	887	1	SimpleTech, Inc.		9,704
			TOTAL		39,987
			Consumer Finance--2.6%
	3,339		Advanta Corp., Class B		154,963
	4,283		Cash America International, Inc.		182,927
			TOTAL		337,890
			Containers & Packaging--2.7%
	3,109		Greif Brothers Corp., Class A		355,390
			Distributors--0.1%
	1,001	1	Audiovox Corp., Class A		15,435
			Electric Utilities--3.6%
	3,673		Allete, Inc.		176,635
	944		Cleco Corp.		24,110
	6,588		Idacorp, Inc.		243,427
	829		Otter Tail Corp.		26,802
			TOTAL		470,974
			Electrical Equipment--5.6%
	9,860		Belden CDT, Inc.		426,445
	18	1	Genlyte Group, Inc.		1,364
	1,106	1	Superior Essex, Inc.		35,292
	6,609		Woodward Governor Co.		276,521
			TOTAL		739,622
Shares					Value
			COMMON STOCKS--continued
			Electronic Equipment & Instruments--3.5%
	879	1	Benchmark Electronics, Inc.	$	19,909
	30		CTS Corp.		465
	8,162	1	Insight Enterprises, Inc.		165,933
	2,839		Methode Electronics, Inc., Class A		31,257
	3,781	1	TTM Technologies		40,495
	9,278		Technitrol, Inc.		204,302
			TOTAL		462,361
			Energy Equipment & Services--0.1%
	427	1	Dawson Geophysical Co.		14,830
			Food & Staples Retailing--2.1%
	6,524		Longs Drug Stores Corp.		280,532
			Gas Utilities--5.7%
	5,684		Atmos Energy Corp.		177,568
	2,054		Laclede Group, Inc.		66,714
	4,281		New Jersey Resources Corp.		199,495
	1,691		Northwest Natural Gas Co.		68,807
	2,726		South Jersey Industries, Inc.		90,067
	4,846		WGL Holdings, Inc.		153,279
			TOTAL		755,930
			Health Care Providers & Services--3.7%
	6,780	1	Amerigroup Corp.		245,843
	3,188	1	Corvel Corp.		150,250
	1,837	1	Cross Country Healthcare, Inc.		41,443
	1,682	1	MedCath Corp.		48,172
			TOTAL		485,708
			Hotels, Restaurants & Leisure--3.4%
	4,170	1	CEC Entertainment, Inc.		176,349
	713		International Speedway Corp., Class A		37,240
	3,347		Marcus Corp.		80,027
	4,161		Speedway Motorsports, Inc.		160,531
			TOTAL		454,147
Shares					Value
			COMMON STOCKS--continued
			Household Durables--0.2%
	793		CSS Industries, Inc.	$	28,603
			IT Services--0.2%
	1,567	1	Sykes Enterprises, Inc.		22,894
			Insurance--13.8%
	1,184		Alfa Corp.		22,330
	101	1	American Physicians Capital, Inc.		3,909
	318	1	CNA Surety Corp.		6,757
	1,130		Delphi Financial Group, Inc., Class A		44,567
	291		EMC Insurance Group, Inc.		9,786
	1,868		FBL Financial Group, Inc., Class A		72,497
	677	1	FPIC Insurance Group, Inc.		29,714
	1,670		Harleysville Group, Inc.		56,780
	4,581		Horace Mann Educators Corp.		90,841
	1,898		Infinity Property & Casualty		90,800
	2,006	1	Meadowbrook Insurance Group, Inc.		20,140
	1,236		Midland Co.		56,831
	1,565		National Interstate Corp.		42,145
	922		Nymagic, Inc.		37,553
	13,669		Odyssey Re Holdings Corp.		539,242
	715	1	ProAssurance Corp.		36,315
	1,776		RLI Corp.		98,284
	3,442		Selective Insurance Group, Inc.		177,091
	3,356		State Auto Financial Corp.		107,996
	2,693		United Fire & Casualty Co.		91,158
	4,108		Zenith National Insurance Corp.		187,736
			TOTAL		1,822,472
			Internet Software & Services--0.8%
	2,241	1	Greenfield Online, Inc.		32,270
	8,324	1	Sonicwall, Inc.		70,171
			TOTAL		102,441
Shares					Value
			COMMON STOCKS--continued
			Leisure Equipment & Products--1.2%
	6,885		Oakley, Inc.	$	159,457
			Machinery--2.1%
	315		Alamo Group, Inc.		7,617
	871		Cascade Corp.		46,790
	3,074		Gorman Rupp Co.		124,190
	1,763		Manitowoc, Inc.		91,429
	232		Robbins & Myers, Inc.		10,087
			TOTAL		280,113
			Marine--0.1%
	357	1	Genco Shipping & Trading Ltd.		10,899
			Metals & Mining--3.0%
	1,416	1	Brush Engineered Materials, Inc.		46,855
	347		Chaparral Steel Co.		17,794
	4,024		Cleveland Cliffs, Inc.		219,952
	75		Commercial Metals Corp.		2,033
	3,384		Ryerson, Inc.		106,156
			TOTAL		392,790
			Multi-Utilities--1.4%
	5,978		PNM Resources, Inc.		182,209
			Oil, Gas & Consumable Fuels--5.0%
	456		Alon USA Energy, Inc.		12,262
	7,305	1	General Maritime Corp.		266,559
	14,701		OMI Corp.		324,304
	804		Penn Virginia Corp.		58,917
			TOTAL		662,042
			Personal Products--4.2%
	10,836	1	NBTY, Inc.		561,847
			Semiconductors & Semiconductor Equipment--2.0%
	8,017	1	ATMI, Inc.		268,088
			Software--2.7%
	1,027	1	Hyperion Solutions Corp.		43,360
	34,015	1	Tibco Software, Inc.		315,659
			TOTAL		359,019
Shares					Value
			COMMON STOCKS--continued
			Specialty Retail--1.2%
	4,512	1	Cabela's, Inc., Class A	$	108,198
	486	1	Genesco, Inc.		19,144
	1,089	1	Payless ShoeSource, Inc.		36,972
			TOTAL		164,314
			Textiles, Apparel & Luxury Goods--3.1%
	627		Columbia Sportswear Co.		40,655
	1,100	1	Deckers Outdoor Corp.		64,141
	889		K-Swiss, Inc., Class A		28,110
	9,895	1	Warnaco Group, Inc.		279,930
			TOTAL		412,836
			Thrifts & Mortgage Finance--4.6%
	196		Corus Bankshares, Inc.		4,175
	2,744		Downey Financial Corp.		196,306
	25		First Financial Holdings, Inc.		887
	3,010	1	FirstFed Financial Corp.		207,539
	738		ITLA Capital Corp.		44,833
	317		TierOne Corp.		9,548
	2,001	1	Triad Guaranty, Inc.		103,051
	527		WSFS Financial Corp.		36,569
			TOTAL		602,908
			Trading Companies & Distributors--2.1%
	8,362		Applied Industrial Technologies, Inc.		205,036
	2,362	1	TransDigm Group, Inc.		75,230
			TOTAL		280,266
			TOTAL COMMON STOCKS		13,189,883
			TOTAL INVESTMENTS--99.7% (IDENTIFIED COST $12,484,830) 2		13,189,883
			OTHER ASSETS AND LIABILITIES - NET--0.3%		37,385
			TOTAL NET ASSETS--100%	$	13,227,268

1 Non-income producing security.

2 Also represents cost for federal tax purposes.

Note: The categories of investments are shown as a percentage of total net assets at January 31, 2007.

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

January 31, 2007 (unaudited)

Assets:
Total investments in securities, at value (identified cost $12,484,830)			$	13,189,883
Income receivable				7,446
Receivable for investments sold				514,653
Receivable for shares sold				8,480
TOTAL ASSETS				13,720,462
Liabilities:
Payable for investments purchased	$	351,500
Payable for shares redeemed		7,080
Payable to bank		31,605
Payable for administrative personnel and services fee (Note 5)		32,860
Payable for transfer and dividend disbursing agent fees and expenses		33,165
Payable for Directors'/Trustees' fees		1,033
Payable for portfolio accounting fees		14,872
Payable for distribution services fee (Note 5)		3,315
Payable for shareholder services fee (Note 5)		1,125
Accrued expenses		16,639
TOTAL LIABILITIES				493,194
Net assets for 1,139,879 shares outstanding			$	13,227,268
Net Assets Consist of:
Paid-in capital			$	12,701,434
Net unrealized appreciation of investments				705,053
Accumulated net realized loss on investments				(171,754	)
Accumulated net investment income (loss)				(7,465	)
TOTAL NET ASSETS			$	13,227,268
Net Asset Value, Offering Price and Redemption Proceeds Per Share
Institutional Shares:
Net asset value per share ($10,032,587 ÷ 863,423 shares outstanding), no par value, unlimited shares authorized				$11.62
Offering price per share				$11.62
Redemption proceeds per share				$11.62
Class A Shares:
Net asset value per share ($2,619,619 ÷ 226,259 shares outstanding), no par value, unlimited shares authorized				$11.58
Offering price per share (100/94.50 of $11.58) 1				$12.25
Redemption proceeds per share				$11.58
Class C Shares:
Net asset value per share ($575,062 ÷ 50,197 shares outstanding), no par value, unlimited shares authorized				$11.46
Offering price per share (100/99.00 of $11.46) 1				$11.58
Redemption proceeds per share (99.00/100 of $11.46) 1				$11.35

1 See "What Do Shares Cost?" in the Prospectus.

See Notes which are an integral part of the Financial Statements

Statement of Operations

Six Months Ended January 31, 2007 (unaudited)

Investment Income:
Dividends							$	50,464
Interest								6,173
TOTAL INCOME								56,637
Expenses:
Investment adviser fee (Note 5)				$	47,846
Administrative personnel and services fee (Note 5)					115,946
Custodian fees					14,145
Transfer and dividend disbursing agent fees and expenses					46,392
Directors'/Trustees' fees					907
Auditing fees					7,310
Legal fees					4,537
Portfolio accounting fees					35,844
Distribution services fee--Class A Shares (Note 5)					1,324
Distribution services fee--Class C Shares (Note 5)					1,859
Shareholder services fee--Class A Shares (Note 5)					921
Shareholder services fee--Class C Shares (Note 5)					204
Share registration costs					24,804
Printing and postage					10,386
Insurance premiums					3,464
Miscellaneous					2,025
TOTAL EXPENSES					317,914
Waivers and Reimbursement:
Waiver of investment adviser fee (Note 5)	$	(47,846	)
Waiver of administrative personnel and services fee (Note 5)		(83,041	)
Waiver of transfer and dividend disbursing agent fees and expenses		(12,318	)
Waiver of portfolio accounting fees		(20,355	)
Reimbursement of other operating expenses (Note 5)		(90,252	)
TOTAL WAIVERS AND REIMBURSEMENT					(253,812	)
Net expenses								64,102
Net investment income (loss)								(7,465	)
Realized and Unrealized Gain (Loss) on Investments:
Net realized loss on investments								(163,777	)
Net change in unrealized depreciation of investments								719,553
Net realized and unrealized gain on investments								555,776
Change in net assets resulting from operations							$	548,311

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

		Six Months Ended (unaudited) 1/31/2007			Period Ended 7/31/2006	1
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	(7,465	)	$	(1,041	)
Net realized loss on investments		(163,777	)		(7,977	)
Net change in unrealized appreciation/depreciation on investments		719,553			(14,500	)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		548,311			(23,518	)
Share Transactions:
Proceeds from sale of shares		12,914,263			1,550,300
Cost of shares redeemed		(1,583,860	)		(178,228	)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		11,330,403			1,372,072
Change in net assets		11,878,714			1,348,554
Net Assets:
Beginning of period		1,348,554			- --
End of period (including accumulated net investment income (loss) of $(7,465) and $0, respectively)	$	13,227,268		$	1,348,554

1 Reflects operations for the period from September 15, 2005 (date of initial public investment) to July 31, 2006.

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

January 31, 2007 (unaudited)

1. ORGANIZATION

Federated MDT Series (the "Trust") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Trust consists of eight portfolios. The financial statements included herein are only those of Federated MDT Small Cap Value Fund (the "Fund"), a diversified portfolio. The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held. The Fund offers three classes of shares: Institutional Shares, Class A Shares and Class C Shares. All shares of the Fund have equal rights with respect to voting, except on class-specific matters. The financial highlights of the Class A Shares and Class C Shares are presented separately. The primary investment objective of the Fund is long-term capital appreciation.

MDT Small Cap Value Fund (the "Predecessor Fund") was reorganized into the Fund as of the close of business on December 8, 2006. Prior to the reorganization, the Fund had no investment operations. The Fund is the successor to the Predecessor Fund, which commenced operations on September 15, 2005.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with generally accepted accounting principles (GAAP) in the United States of America.

Investment Valuation

Market values of the Fund's portfolio securities are determined as follows:

• for equity securities, according to the last sale price or official closing price reported in the market in which they are primarily traded (either a national securities exchange or the over-the-counter market), if available;
• in the absence of recorded sales for equity securities, according to the mean between the last closing bid and asked prices;
• futures contracts and options are generally valued at market values established by the exchanges on which they are traded at the close of trading on such exchanges. Options traded in the over-the-counter market are generally valued according to the mean between the last bid and the last asked price for the option as provided by an investment dealer or other financial institution that deals in the option. The Board of Trustees (the "Trustees") may determine in good faith that another method of valuing such investments is necessary to appraise their fair market value;
• prices for total return swaps are furnished by an independent pricing service and are based upon a valuation model incorporating underlying reference indexes, interest rates, yield curves and other market data or factors. Prices for credit default swaps are furnished by an independent pricing service and are based upon a valuation model incorporating default probabilities, recovery rates and other market data or factors;
• for mortgage-backed securities, based on the aggregate investment value of the projected cash flows to be generated by the security, as furnished by an independent pricing service;
• for investments in other open-end regulated investment companies, based on net asset value (NAV);
• for other fixed-income securities, according to prices as furnished by an independent pricing service, except that fixed-income securities with remaining maturities of less than 60 days at the time of purchase are valued at amortized cost; and
• for all other securities at fair value as determined in accordance with procedures established by and under the general supervision of the Trustees.

Prices for fixed-income securities furnished by a pricing service may be based on a valuation matrix which incorporates both dealer-supplied valuations and electronic data processing techniques. Such prices (other than prices of mortgage-backed securities) are generally intended to be indicative of the bid prices currently offered to institutional investors for the securities, except that prices for corporate fixed-income and asset-backed securities traded in the United States are generally intended to be indicative of the mean between such bid prices and asked prices. The Trustees have approved the use of such pricing services. A number of pricing services are available, and the Fund may use various pricing services or discontinue the use of any pricing service.

Prices provided by independent pricing services may be determined without relying exclusively on quoted prices and may consider institutional trading in similar groups of securities, yield, quality, stability, risk, coupon rate, maturity, type of issue, trading characteristics, and other market data or factors. From time to time, when prices cannot be obtained from an independent pricing service, securities may be valued based on quotes from broker-dealers or other financial institutions that trade the securities.

Trading in foreign securities may be completed at times which vary from the closing of the New York Stock Exchange (NYSE). In computing its NAV, the Fund values foreign securities using the latest closing price on the exchange on which they are traded immediately prior to the closing of the NYSE. Certain foreign currency exchange rates are generally determined at the latest rate prior to the closing of the NYSE. Foreign securities quoted in foreign currencies are translated into U.S. dollars at current rates. Events that affect these values and exchange rates may occur between the times at which they are determined and the closing of the NYSE. If such events materially affect the value of portfolio securities, these securities may be valued at their fair value as determined in good faith by the Trustees, although the actual calculation may be done by others.

Repurchase Agreements

It is the policy of the Fund to require the other party to a repurchase agreement to transfer to the Fund's custodian or sub-custodian eligible securities or cash with a market value (after transaction costs) at least equal to the repurchase price to be paid under the repurchase agreement. The eligible securities are transferred to accounts with the custodian or sub-custodian in which the Fund holds a "securities entitlement" and exercises "control" as those terms are defined in the Uniform Commercial Code. The Fund has established procedures for monitoring the market value of the transferred securities and requiring the transfer of additional eligible securities if necessary to equal at least the repurchase price. These procedures also allow the other party to require securities to be transferred from the account to the extent that their market value exceeds the repurchase price or in exchange for other eligible securities of equivalent market value.

With respect to agreements to repurchase U.S. government securities and cash items, the Fund treats the repurchase agreement as an investment in the underlying securities and not as an obligation of the other party to the repurchase agreement. Other repurchase agreements are treated as obligations of the other party secured by the underlying securities. Nevertheless, the insolvency of the other party or other failure to repurchase the securities may delay the disposition of the underlying securities or cause the Fund to receive less than the full repurchase price. Under the terms of the repurchase agreement, any amounts received by the Fund in excess of the repurchase price and related transaction costs must be remitted to the other party.

The Fund may enter into repurchase agreements in which eligible securities are transferred into joint trading accounts maintained by the custodian or sub-custodian for investment companies and other clients advised by the Fund's adviser and its affiliates. The Fund will participate on a pro rata basis with the other investment companies and clients in its share of the securities transferred under such repurchase agreements and in its share of proceeds from any repurchase or other disposition of such securities.

Investment Income, Gains and Losses, Expenses and Distributions

Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Distributions of net investment income, if any, are declared and paid annually. Non-cash dividends included in dividend income, if any, are recorded at fair value. Investment income, realized and unrealized gains and losses, and certain fund-level expenses are allocated to each class based on relative average daily net assets, except that each class bears certain expenses unique to that class such as distribution and shareholder services fees. Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses.

Premium and Discount Amortization

All premiums and discounts on fixed-income securities are amortized/accreted for financial statement purposes.

Federal Taxes

It is the Fund's policy to comply with the Subchapter M provision of the Internal Revenue Code (the "Code") and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal income tax is necessary.

When-Issued and Delayed Delivery Transactions

The Fund may engage in when-issued or delayed delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated.

Other

Investment transactions are accounted for on a trade date basis. Realized gains and losses from investment transactions are recorded on an identified cost basis.

3. SHARES OF BENEFICIAL INTEREST

The following tables summarize share activity:

	Six Months Ended 1/31/2007					Period Ended 7/31/2006 1
Institutional Shares:	Shares			Amount		Shares			Amount
Shares sold	925,464		$	10,415,543		69,922		$	747,384
Shares redeemed	(118,368	)		(1,340,045	)	(13,595	)		(150,455	)
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS	807,096		$	9,075,498		56,327		$	596,929
	Six Months Ended 1/31/2007					Period Ended 7/31/2006 1
Class A Shares:	Shares			Amount		Shares			Amount
Shares sold	180,396		$	1,993,556		68,354		$	751,222
Shares redeemed	(19,946	)		(226,625	)	(2,545	)		(27,773	)
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS	160,450		$	1,766,931		65,809		$	723,449
	Six Months Ended 1/31/2007					Period Ended 7/31/2006 1
Class C Shares:	Shares			Amount		Shares			Amount
Shares sold	46,899		$	505,164		4,825		$	51,694
Shares redeemed	(1,527	)		(17,190	)	- --			- --
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS	45,372		$	487,974		4,825		$	51,694
NET CHANGE RESULTING FROM SHARE TRANSACTIONS	1,012,918		$	11,330,403		126,961		$	1,372,072

1 Reflects operations for the period from September 15, 2005 (date of initial public investment) to July 31, 2006.

4. FEDERAL TAX INFORMATION

At January 31, 2007, the cost of investments for federal tax purposes was $12,484,830. The net unrealized appreciation of investments for federal tax purposes was $705,053. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $941,455 and net unrealized depreciation from investments for those securities having an excess of cost over value of $236,402.

At July 31, 2006, the Fund had a capital loss carryforward of $252 which will reduce the Fund's taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Code and thus will reduce the amount of distributions to shareholders which would otherwise be necessary to relieve the Fund of any liability for federal income tax. Pursuant to the Code, such capital loss carryforward will expire in 2014.

5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated MDTA LLC, the Fund's investment adviser (the "Adviser"), receives for its services an annual investment adviser fee equal to 1.15% of the Fund's average daily net assets. Prior to December 8, 2006, the Adviser received an annual investment adviser fee equal to 1.25% of the Fund's average daily net assets. Under the investment advisory contract, the Adviser is contractually obligated to waive, to the extent of its adviser fee, the amount, if any, by which the Fund's annual operating expenses exceed the following levels for each Class of the Fund:

Share Class	Percentage of Average Daily Net Assets of Class
Institutional Shares	1.80%
Class A Shares	2.05%
Class C Shares	2.80%

The Adviser has agreed to keep these contractual limitations in place through December 8, 2008.

In addition, after fulfilling its contractual commitment, the Adviser may voluntarily choose to waive and/or reimburse any additional portion of its fee. The Adviser can modify or terminate this voluntary waiver and/or reimbursement at any time at its sole discretion. For the six months ended January 31, 2007, the Adviser waived $47,846 of its fee and reimbursed $90,252 of other operating expenses.

For a period of three years after the fiscal year in which the Adviser waived or reimbursed Fund expenses, the Adviser may seek reimbursement from the Fund to the extent that the Fund's total annual operating expenses are less than the expense limitation. Due to the reorganization of the Fund, any expenses waived or reimbused by the Adviser after December 8, 2006 may not be recovered by the Adviser.

Expenses waived/reimbursed by the Fund of $69,505 are subject to potential recovery by the expiration date of July 31, 2009.

Administrative Fee

Federated Administrative Services (FAS), under the Administrative Services Agreement (the "Agreement"), provides the Fund with administrative personnel and services. The fee paid to FAS is based on the average aggregate daily net assets of certain Federated funds as specified below:

Administrative Fee	Average Aggregate Daily Net Assets of the Federated Funds
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

The administrative fee received during any fiscal year shall be at least $150,000 per portfolio and $40,000 per each additional class of Shares. During the period from July 15, 2006 through December 8, 2006, the administrator contractually agreed to waive the portion of its fee which it would otherwise be entitled to receive from the Fund under the Agreement. The level of fees payable by the Fund to FAS for the period will not exceed the level of fees which the Fund would have paid during the period to its previous service provider under its previous administrative services contract. In addition, FAS may voluntarily choose to waive any portion of its fee. FAS can modify or terminate this voluntary waiver at any time at its sole discretion. For the six months ended January 31, 2007, the net fee paid to FAS was 0.827% of average aggregate daily net assets of the Fund.

Distribution Services Fee

The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will compensate Federated Securities Corp. (FSC), the principal distributor, from the daily net assets of the Fund's Class A Shares and Class C Shares to finance activities intended to result in the sale of these shares. The Plan provides that the Fund may incur distribution expenses according to the following schedule annually, to compensate FSC:

Share Class	Percentage of Average Daily Net Assets of Class
Class A Shares	0.25%
Class C Shares	0.75%

Prior to December 11, 2006, the Fund incurred distribution expenses according to the following schedule annually, to compensate FSC:

Share Class	Percentage of Average Daily Net Assets of Class
Class A Shares	0.25%
Class C Shares	1.00%

FSC may voluntarily choose to waive any portion of its fee. FSC can modify or terminate this voluntary waiver at any time at its sole discretion. When FSC receives fees, it may pay some or all of them to financial intermediaries whose customers purchase shares. For the six months ended January 31, 2007, FSC retained $1,422 of fees paid by the Fund.

Sales Charges

For the six months ended January 31, 2007, FSC, the principal distributor, retained $427 in sales charges from the sale of Class A Shares. FSC also retained $9 of contingent deferred sales charges relating to redemptions of Class C Shares. See "What Do Shares Cost?" in the Prospectus.

Shareholder Services Fee

Effective December 11, 2006, the Fund may pay fees (Service Fees) up to 0.25% of the average daily net assets of the Fund's Class A Shares and Class C Shares to financial intermediaries or to Federated Shareholder Services Company (FSSC) for providing services to shareholders and maintaining shareholder accounts. FSSC or these financial intermediaries may voluntarily choose to waive any portion of their fee. In addition, FSSC may voluntarily reimburse the Fund for shareholder services fees. This voluntary waiver and/or reimbursement can be modified or terminated at any time. For the six months ended January 31, 2007, FSSC did not receive any fees paid by the Fund.

General

Certain of the Officers and Trustees of the Trust are Officers and Directors or Trustees of the above companies.

6. INVESTMENT TRANSACTIONS

Purchases and sales of investments, excluding long-term U.S. government securities and short-term obligations, for the six months ended January 31, 2007, were as follows:

Purchases	$	17,437,160
Sales	$	6,138,620

7. LINE OF CREDIT

The Trust entered into a $150,000,000 unsecured, uncommitted revolving line of credit (LOC) agreement with PNC Bank. The LOC was made available for extraordinary or emergency purposes, primarily for financing redemption payments. Borrowings are charged interest at a rate of 0.65% over the federal funds rate. As of January 31, 2007, there were no outstanding loans. During the six months ended January 31, 2007, the Fund did not utilize the LOC.

8. LEGAL PROCEEDINGS

Beginning in October 2003, Federated Investors, Inc. and various subsidiaries thereof (including the advisers and distributor for various investment companies, collectively, "Federated"), along with various investment companies sponsored by Federated ("Funds") were named as defendants in several class action lawsuits now pending in the United States District Court for the District of Maryland. The lawsuits were purportedly filed on behalf of people who purchased, owned and/or redeemed shares of Federated-sponsored mutual funds during specified periods beginning November 1, 1998. The suits are generally similar in alleging that Federated engaged in illegal and improper trading practices including market timing and late trading in concert with certain institutional traders, which allegedly caused financial injury to the mutual fund shareholders. These lawsuits began to be filed shortly after Federated's first public announcement that it had received requests for information on shareholder trading activities in the Funds from the Securities and Exchange Commission ("SEC"), the Office of the New York State Attorney General ("NYAG"), and other authorities. In that regard, on November 28, 2005, Federated announced that it had reached final settlements with the SEC and the NYAG with respect to those matters. As Federated previously reported in 2004, it has already paid approximately $8.0 million to certain funds as determined by an independent consultant. As part of these settlements, Federated agreed to pay for the benefit of fund shareholders additional disgorgement and a civil money penalty in the aggregate amount of an additional $72 million. Federated and various Funds have also been named as defendants in several additional lawsuits, the majority of which are now pending in the United States District Court for the Western District of Pennsylvania, alleging, among other things, excessive advisory and Rule 12b-1 fees. The Board of the Funds has retained the law firm of Dickstein Shapiro LLP to represent the Funds in these lawsuits. Federated and the Funds, and their respective counsel, are reviewing the allegations and intend to defend this litigation. Additional lawsuits based upon similar allegations may be filed in the future. The potential impact of these lawsuits, all of which seek unquantified damages, attorneys' fees and expenses, and future potential similar suits is uncertain. Although we do not believe that these lawsuits will have a material adverse effect on the Funds, there can be no assurance that these suits, the ongoing adverse publicity and/or other developments resulting from the regulatory investigations will not result in increased Fund redemptions, reduced sales of Fund shares, or other adverse consequences for the Funds.

9. RECENT ACCOUNTING PRONOUNCEMENTS

In July 2006, the Financial Accounting Standards Board (FASB) released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" (FIN 48). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax benefits of positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax expense in the current year. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years of the Fund no later than January 30, 2008. At this time, management is evaluating the implications of FIN 48 and its impact in the financial statements has not yet been determined.

In addition, in September 2006, FASB released Statement on Financial Accounting Standards No. 157, "Fair Value Measurements" (FAS 157) which is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of FAS 157 will have on the Funds' financial statement disclosures.

Evaluation and Approval of Advisory Contract

FEDERATED MDT SMALL CAP VALUE FUND (THE "FUND")

The Fund's Board reviewed the Fund's investment advisory contract at meetings held in May and June 2006. The Board's decision to approve the contract reflects the exercise of its business judgment on whether to authorize the creation and offering of this new investment vehicle, as proposed by, and based on information provided by, the Federated organization, and based on Federated's recommendation to go forward with establishment of the Fund.

Federated proposed the creation of the Fund in connection with its acquisition of MDTA LLC (the "Acquisition"), the investment adviser to the MDT Small Cap Value Fund (the "Predecessor Fund"). As part of that transaction, Federated proposed that the Predecessor Fund be reorganized with and into the Fund in a tax-free reorganization (the "Proposed Reorganization"), which would provide shareholders of the Predecessor Fund the opportunity to become shareholders of a fund with substantially similar investment objectives and policies and the same portfolio manager(s) as the Predecessor Fund, but with sales, distribution and other shareholder services offered by the funds managed and distributed by affiliates of Federated.

Prior to the meeting, the Adviser had recommended that the Federated Funds appoint a Senior Officer, whose duties include specified responsibilities relating to the process by which advisory fees are to be charged to a Federated Fund. The Senior Officer appointed by the Funds has the authority to retain consultants, experts, or staff as may be reasonably necessary to assist in the performance of his duties, reports directly to the Board, and may be terminated only with the approval of a majority of the independent members of the Board. The Senior Officer prepared and furnished to the Board an independent written evaluation that covered topics discussed below, which the Board considered, along with other information, in deciding to approve the advisory contract.

The Board also considered the anticipated compensation and benefits to be received by the Adviser. This includes fees to be received for services provided to the Fund by other entities in the Federated organization and research services that may be received by the Adviser from brokers that execute fund trades, as well as advisory fees. The Board is also familiar with judicial decisions concerning allegedly excessive investment advisory fees which have indicated that the following factors may be relevant to an Adviser's fiduciary duty with respect to its receipt of compensation from a fund: the nature and quality of the services provided by the Adviser, including the performance of the Fund; the Adviser's cost of providing the services; the extent to which the Adviser may realize "economies of scale" as the Fund grows larger; any indirect benefits that may accrue to the Adviser and its affiliates as a result of the Adviser's relationship with the Fund; performance and expenses of comparable funds; and the extent to which the independent Board members are fully informed about all facts the Board deems relevant bearing on the Adviser's services and fees. The Board further considered management fees (including any components thereof) charged to institutional and other clients of the Adviser for like services and costs to the Adviser and its affiliates of supplying services pursuant to the management fee agreements, excluding any intra-corporate profit and profit margins of the Adviser and its affiliates from supplying such services. The Board was aware of these considerations and was guided by them in its review of the Fund's advisory contract to the extent they are appropriate and relevant, as discussed further below.

The Board considered and weighed these circumstances in light of its substantial accumulated experience in working with Federated on matters relating to other Federated Funds, and was assisted in its deliberations by the advice of independent legal counsel. The Board's consideration of the advisory contract included review of the Senior Officer's evaluation, accompanying data and additional reports covering such matters as: the Adviser's investment philosophy, revenue, profitability, personnel and processes; investment and operating strategies; the Fund's investment objectives; the Fund's expenses (including the advisory fee itself and the overall expense structure of the Fund, both in absolute terms and relative to similar and/or competing funds, with due regard for contractual or voluntary expense limitations); the nature, quality and extent of the advisory and other services to be provided to the Fund by the Adviser and its affiliates; the preferences and expectations of Fund shareholders and their relative sophistication; the continuing state of competition in the mutual fund industry and market practices; the range of comparable fees for similar funds in the mutual fund industry; the Fund's relationship to the Federated family of funds which include a comprehensive array of funds with different investment objectives, policies and strategies which are available for exchange without the incurrence of additional sales charges; compliance and audit reports concerning the Federated Funds and the Federated companies that service them (including communications from regulatory agencies), as well as Federated's responses to any issues raised therein; and relevant developments in the mutual fund industry and how the Federated Funds and/or Federated are responding to them. The Board's evaluation process is evolutionary. The criteria considered and the emphasis placed on relevant criteria change in recognition of changing circumstances in the mutual fund marketplace.

With respect to the Fund's expenses in particular, the Board has found the use of comparisons to other mutual funds with comparable investment programs to be particularly useful, given the high degree of competition in the mutual fund business. The Board focused on comparisons with other similar mutual funds more heavily than non-mutual fund products or services because, simply put, they are more relevant. For example, other mutual funds are the products most like the Fund, they are readily available to Fund shareholders as alternative investment vehicles, and they are the type of investment vehicle in fact chosen and maintained by the Fund's anticipated investors. The range of their fees and expenses therefore appears to be a generally reliable indication of what consumers have found to be reasonable in the precise marketplace in which the Fund will compete. In this regard, the Senior Officer also reviewed Federated's fees for providing advisory services to products outside the Federated family of funds (e.g., institutional and separate accounts). He concluded that mutual funds and institutional accounts are inherently different products. Those differences included, but are not limited to targeting different investors, being subject to different laws and regulations, different legal structure, distribution costs, average account size and portfolio management techniques made necessary by different cash flows. The Senior Officer did not consider these fee schedules to be significant in determining the appropriateness of mutual fund advisory contracts.

The Senior Officer reviewed reports compiled by Federated and directed the preparation of reports regarding the performance of, and fees charged by other mutual funds, noting his view that comparisons to fund peer groups is of significance in judging the reasonableness of proposed fees.

Because the Fund will employ the same portfolio managers and investment techniques, the Board reviewed the Predecessor Fund's performance compared to its benchmark as an indicator of how the Adviser will execute the Fund's investment program, which in turn assisted the Board in reaching a conclusion that the nature, extent, and quality of the Adviser's investment management services were such as to warrant approval of the advisory contract. The Board noted that the Predecessor Fund and/or accounts managed by MDTA LLC with substantially similar investment objectives and policies outperformed its relevant benchmark for the one and three year periods reviewed. The Board determined that reviewing performance on a gross basis was appropriate in this instance because the fee structure for separately managed accounts is not comparable for the Fund as discussed above.

The Senior Officer noted that the Fund's quantitative focus made it difficult to compare its fees and expenses to other peers, which varied widely in their complexity. He observed that the management of the Fund is among the more complex, relative to its peers and, consequently, that the advisory fee and projected net total expenses are at the high end compared to such peers. The Board reviewed the proposed fees and other expenses of the Fund with the Adviser and was satisfied that the proposed overall expense structure of the Fund appeared competitive. The Board will continue to monitor advisory fees and other expenses borne by the Fund. No changes were recommended to, and no objection was raised to the proposed advisory contract, and the Senior Officer noted that Federated proposed to provide appropriate administrative services to the Fund for the anticipated fees. The Board concluded that the nature, quality and scope of services to be provided to the Fund by the Adviser and its affiliates were satisfactory.

The Board also considered possible indirect benefits that may accrue to the Adviser and its affiliates as a result of the Acquisition. Other indirect benefits that may accrue to the Adviser and its affiliates as a result of the Adviser's relationship with the Fund are essentially impossible to apply before the Fund has experienced any meaningful operating history. Nevertheless, in connection with the Board's governance of other Federated Funds, it should be noted that the Board regularly receives financial information about Federated, including reports on the compensation and benefits Federated derives from its relationships with the other Federated Funds. These reports cover not only the fees under the advisory contracts, but also fees received by Federated's subsidiaries for providing other services to the Federated Funds under separate contracts (e.g., for serving as the Federated funds' administrator). The reports also discuss any indirect benefit Federated may derive from its receipt of research services from brokers who execute Federated fund trades, as well as waivers of fees and/or reimbursements of expenses. In order for a fund to be competitive in the marketplace, Federated and its affiliates frequently waive fees and/or reimburse expenses and have indicated to the Board their intention to do so in the future, where appropriate. It was noted in this regard that the Adviser has agreed to limit the expenses of each class of the Fund at specified amounts for a two-year period commencing on the date the Proposed Reorganization is consummated.

Federated furnished reports, requested by the Senior Officer, that made estimates of the allocation of expenses on a fund by fund basis, using allocation methodologies specified by the Senior Officer. The Senior Officer noted that, although they may apply consistent allocation processes, the inherent difficulties in allocating costs and the lack of consensus on how to allocate those costs causes such allocation reports to be of questionable value. The allocation reports were considered in the analysis by the Board but were determined to be of limited use.

The Board also reviewed profitability information for Federated and other publicly held fund management companies, provided by the Senior Officer, who noted the limited availability of such information, and concluded that Federated's profit margins did not appear to be excessive.

The Senior Officer's evaluation also discussed the notion of possible realization of "economies of scale" as a fund grows larger. The Board considered in this regard that the Adviser has made significant additional investments in the portfolio management and distribution efforts supporting all of the Federated Funds and that the benefits of any economies, should they exist, were likely to be enjoyed by the fund complex as a whole. Finally, the Board also noted the absence of any applicable regulatory or industry guidelines on this subject, which is compounded by the lack of any common industry practice or general pattern with respect to structuring fund advisory fees with "breakpoints" that serve to reduce the fee as the fund attains a certain size. The Senior Officer did not recommend institution of breakpoints in pricing Federated's fund advisory services at this time.

The Board based its decision to approve the advisory contract on the totality of the circumstances and relevant factors, and with a view to past and future long-term considerations. As noted, not all of the factors and considerations identified above were relevant to the Fund, nor does the Board consider any one of them to be determinative. With respect to the factors that are relevant, the Board's decision to approve the contract reflects its determination that, based upon the information requested and supplied, Federated's proposal to establish and manage the Fund, and its past performance and actions in providing services to other mutual funds, provide a satisfactory basis to support the business decision to approve the proposed arrangements.

Voting Proxies on Fund Portfolio Securities

A description of the policies and procedures that the Fund uses to determine how to vote proxies, if any, relating to securities held in the Fund's portfolio is available, without charge and upon request, by calling 1-800-341-7400. A report on "Form N-PX" of how the Fund voted any such proxies during the most recent 12-month period ended June 30 is available through Federated's website. Go to FederatedInvestors.com, select "Products," select the "Prospectuses and Regulatory Reports" link, then select the Fund to access the link to Form N-PX. This information is also available from the EDGAR database on the SEC's website at www.sec.gov.

Quarterly Portfolio Schedule

The Fund files with the SEC a complete schedule of its portfolio holdings, as of the close of the first and third quarters of its fiscal year, on "Form N-Q." These filings are available on the SEC's website at www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. (Call 1-800-SEC-0330 for information on the operation of the Public Reference Room.) You may also access this information from the "Products" section of the Federated Investors website at FederatedInvestors.com by clicking on "Portfolio Holdings" and selecting the name of the Fund, or by selecting the name of the Fund and clicking on "Portfolio Holdings." You must register on the website the first time you wish to access this information.

Mutual funds are not bank deposits or obligations, are not guaranteed by any bank, and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other government agency. Investment in mutual funds involves investment risk, including the possible loss of principal.

This report is authorized for distribution to prospective investors only when preceded or accompanied by the Fund's prospectus, which contains facts concerning its objective and policies, management fees, expenses, and other information.

IMPORTANT NOTICE ABOUT FUND DOCUMENT DELIVERY

In an effort to reduce costs and avoid duplicate mailings, the Fund(s) intend to deliver a single copy of certain documents to each household in which more than one shareholder of the Fund(s) resides (so-called "householding"), as permitted by applicable rules. The Fund's "householding" program covers its/their Prospectus and Statement of Additional Information, and supplements to each, as well as Semi-Annual and Annual Shareholder Reports and any Proxies or information statements. Shareholders must give their written consent to participate in the "householding" program. The Fund is also permitted to treat a shareholder as having given consent ("implied consent") if (i) shareholders with the same last name, or believed to be members of the same family, reside at the same street address or receive mail at the same post office box, (ii) the Fund gives notice of its intent to "household" at least sixty (60) days before it begins "householding" and (iii) none of the shareholders in the household have notified the Fund(s) or their agent of the desire to "opt out" of "householding." Shareholders who have granted written consent, or have been deemed to have granted implied consent, can revoke that consent and opt out of "householding" at any time: shareholders who purchased shares through an intermediary should contact their representative; other shareholders may call the Fund at 1-800-341-7400.

Federated Securities Corp., Distributor

Cusip 31421R726

36368 (3/07)

Federated is a registered mark of Federated Investors, Inc. 2007 (c)Federated Investors, Inc.

Federated
World-Class Investment Manager

Federated MDT Tax Aware/All Cap Core Fund

A Portfolio of Federated MDT Series

SEMI-ANNUAL SHAREHOLDER REPORT

January 31, 2007

Class A Shares
Class C Shares

FINANCIAL HIGHLIGHTS
SHAREHOLDER EXPENSE EXAMPLE
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
PORTFOLIO OF INVESTMENTS
STATEMENT OF ASSETS AND LIABILITIES
STATEMENT OF OPERATIONS
STATEMENT OF CHANGES IN NET ASSETS
NOTES TO FINANCIAL STATEMENTS
EVALUATION AND APPROVAL OF ADVISORY CONTRACT
VOTING PROXIES ON FUND PORTFOLIO SECURITIES
QUARTERLY PORTFOLIO SCHEDULE

Not FDIC Insured * May Lose Value * No Bank Guarantee

Financial Highlights - Class A Shares

(For a Share Outstanding Throughout Each Period)

	Six Months Ended (unaudited)		Period Ended
	1/31/2007	1	7/31/2006	2
Net Asset Value, Beginning of Period	$10.35		$10.00
Income From Investment Operations:
Net investment income (loss)	(0.00	) 3,4	(0.05	) 3
Net realized and unrealized gain on investments	1.09		0.40
TOTAL FROM INVESTMENT OPERATIONS	1.09		0.35
Net Asset Value, End of Period	$11.44		$10.35
Total Return 5	10.53	%	3.50	%
Ratios to Average Net Assets:
Net expenses	1.66	% 6	2.01	% 6
Net investment income (loss)	(0.06	)% 6	(0.50	)% 6
Expense waiver/reimbursement 7	8.08	% 6	3.71	% 6
Supplemental Data:
Net assets, end of period (000 omitted)	$3,139		$2,061
Portfolio turnover	71	%	182	%

1 MDT Tax Aware/All Cap Core Fund (the "Predecessor Fund") was reorganized into Federated MDT Tax Aware/All Cap Core Fund (the "Fund") as of the close of business on December 8, 2006. Prior to the reorganization, the Fund had no investment operations. The Fund is the successor to the Predecessor Fund. The performance information and financial information presented incorporates the operations of the Predecessor Fund, which, as a result of the reorganization, are the Fund's operations.

2 Reflects operations for the period from September 15, 2005 (date of initial public investment) to July 31, 2006.

3 Per share numbers have been calculated using the average shares method.

4 Represents less than $0.01.

5 Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods of less than one year are not annualized.

6 Computed on an annualized basis.

7 This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above.

See Notes which are an integral part of the Financial Statements

Financial Highlights - Class C Shares

(For a Share Outstanding Throughout Each Period)

	Six Months Ended (unaudited)		Period Ended
	1/31/2007	1	7/31/2006	2
Net Asset Value, Beginning of Period	$10.27		$10.00
Income From Investment Operations:
Net investment income (loss)	(0.04	) 3	(0.13	) 3
Net realized and unrealized gain on investments	1.08		0.40
TOTAL FROM INVESTMENT OPERATIONS	1.04		0.27
Net Asset Value, End of Period	$11.31		$10.27
Total Return 4	10.13	%	2.70	%
Ratios to Average Net Assets:
Net expenses	2.41	% 5	2.76	% 5
Net investment income (loss)	(0.82)	% 5	(1.25	)% 5
Expense waiver/reimbursement 6	7.96	% 5	3.71	% 5
Supplemental Data:
Net assets, end of period (000 omitted)	$2,243		$1,329
Portfolio turnover	71	%	182	%

1 The Predecessor Fund was reorganized into the Fund as of the close of business on December 8, 2006. Prior to the reorganization, the Fund had no investment operations. The Fund is the successor to the Predecessor Fund. The performance information and financial information presented incorporates the operations of the Predecessor Fund, which, as a result of the reorganization, are the Fund's operations.

2 Reflects operations for the period from September 15, 2005 (date of initial public investment) to July 31, 2006.

3 Per share numbers have been calculated using the average shares method.

4 Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. Total returns for periods of less than one year are not annualized.

5 Computed on an annualized basis.

6 This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above.

See Notes which are an integral part of the Financial Statements

Shareholder Expense Example

As a shareholder of the Fund, you incur two types of cost: (1) transaction costs, including sales charges (loads) on purchase or redemption payments and (2) ongoing costs, including management fees; to the extent applicable, distribution (12b-1) fees and/or shareholder services fees and other Fund expenses. This Example is intended to help you to understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. It is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from August 1, 2006 to January 31, 2007.

ACTUAL EXPENSES

The first section of the table below provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you incurred over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled "Expenses Paid During Period" to estimate the expenses attributable to your investment during this period.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

The second section of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. Thus, you should not use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are required to be provided to enable you to compare the ongoing costs of investing in the Fund with other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase or redemption payments. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.

	Beginning Account Value 8/1/2006	Ending Account Value 1/31/2007	Expenses Paid During Period 1
Actual:
Class A Shares	$1,000	$1,105.30	$ 8.81
Class C Shares	$1,000	$1,101.30	$12.76
Hypothetical (assuming a 5% return before expenses):
Class A Shares	$1,000	$1,016.84	$ 8.44
Class C Shares	$1,000	$1,013.06	$12.23

1 Expenses are equal to the Fund's annualized net expense ratios, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). The annualized net expense ratios are as follows:

Class A Shares	1.66%
Class C Shares	2.41%

Portfolio of Investments Summary Table

At January 31, 2007, the Fund's industry composition ¹ was as follows:

Industry	Percentage of Total Net Assets
Insurance	19.5	%
Capital Markets	8.2	%
Oil, Gas & Consumable Fuels	8.0	%
Commercial Banks	6.7	%
Household Products	5.9	%
Media	4.7	%
Industrial Conglomerates	4.4	%
Diversified Financial Services	3.4	%
Health Care Providers & Services	3.0	%
Computers & Peripherals	2.7	%
Road & Rail	2.6	%
Specialty Retail	2.4	%
Health Care Equipment & Supplies	2.3	%
Software	1.7	%
Aerospace & Defense	1.6	%
Electric Utilities	1.6	%
Energy Equipment & Services	1.5	%
Hotels, Restaurants & Leisure	1.4	%
IT Services	1.4	%
Multiline Retail	1.3	%
Textiles, Apparel & Luxury Goods	1.2	%
Thrifts & Mortgage Finance	1.2	%
Commercial Services & Supplies	1.1	%
Food Products	1.1	%
Machinery	1.1	%
Metals & Mining	1.0	%
Other 2	8.4	%
Cash Equivalents 3	2.4	%
Other Assets and Liabilities--Net 4	(1.8	)%
TOTAL	100.0	%

1 Except for Cash Equivalents and Other Assets and Liabilities, industry classifications are based upon, and individual portfolio securities are assigned to, the classifications of the Global Industry Classification Standard (GICS) except that the adviser assigns a classification to securities not classified by the GICS and to securities for which the adviser does not have access to the classification made by the GICS.

2 For purposes of this table, industry classifications which constitute less than 1.0% of the Fund's total net assets have been aggregated under the designation "Other".

3 Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements.

4 Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities.

Portfolio of Investments

January 31, 2007 (unaudited)

Shares					Value
			COMMON STOCKS--99.4%
			Aerospace & Defense--1.6%
	189		Goodrich (B.F.) Co.	$	9,265
	472		Lockheed Martin Corp.		45,874
	1,201		Raytheon Co.		62,332
	283		Rockwell Collins		19,303
			TOTAL		136,774
			Air Freight & Logistics--0.1%
	145	1	Hub Group, Inc.		4,330
			Biotechnology--0.5%
	285	1	Celgene Corp.		15,299
	268	1	Genentech, Inc.		23,415
			TOTAL		38,714
			Building Products--0.2%
	413		American Standard Cos.		20,398
			Capital Markets--8.2%
	71	1	Affiliated Managers Group		7,909
	630		Bear Stearns Cos., Inc.		103,855
	2,345		Lehman Brothers Holdings, Inc.		192,853
	242		Merrill Lynch & Co., Inc.		22,642
	4,401		Morgan Stanley		364,359
			TOTAL		691,618
			Chemicals--0.1%
	70		FMC Corp.		5,449
	74	1	OM Group, Inc.		3,616
			TOTAL		9,065
			Commercial Banks--6.7%
	161		City National Corp.		11,581
	228		Colonial BancGroup, Inc.		5,595
	1,002		Comerica, Inc.		59,419
	1,194		Fifth Third Bancorp		47,641
	220		Huntington Bancshares, Inc.		5,122
Shares					Value
			COMMON STOCKS--continued
			Commercial Banks--continued
	3,417		J.P. Morgan Chase & Co.	$	174,028
	1,964		KeyCorp		74,966
	1,170		National City Corp.		44,284
	1,246		SunTrust Banks, Inc.		103,543
	588		UnionBanCal Corp.		37,997
			TOTAL		564,176
			Commercial Services & Supplies--1.1%
	121	1	ChoicePoint, Inc.		4,657
	149		Dun & Bradstreet Corp.		12,665
	180		Knoll, Inc.		3,958
	277		Miller Herman, Inc.		10,415
	419		Pitney Bowes, Inc.		20,058
	861		Robert Half International, Inc.		35,043
	164	1	TeleTech Holdings, Inc.		4,420
			TOTAL		91,216
			Communications Equipment--0.1%
	70	1	F5 Networks, Inc.		5,001
			Computers & Peripherals--2.7%
	2,237	1	Apple, Inc.		191,778
	919	1	Network Appliance, Inc.		34,554
			TOTAL		226,332
			Construction Materials--0.4%
	61		Texas Industries, Inc.		4,479
	280		Vulcan Materials Co.		28,515
			TOTAL		32,994
			Consumer Finance--0.5%
	773	1	Americredit Corp.		20,979
	396	1	First Marblehead Corp.		21,542
			TOTAL		42,521
			Containers & Packaging--0.3%
	134		Ball Corp.		6,207
	442		Temple-Inland, Inc.		22,073
			TOTAL		28,280
Shares					Value
			COMMON STOCKS--continued
			Diversified Consumer Services--0.1%
	52	1	ITT Educational Services, Inc.	$	4,035
	132	1	Weight Watchers International, Inc.		7,132
			TOTAL		11,167
			Diversified Financial Services--3.4%
	85	1	CBOT Holdings, Inc.		14,348
	1,531		CIT Group, Inc.		90,268
	54		Chicago Mercantile Exchange Holdings, Inc.		30,418
	508		Goldman Sachs Group, Inc.		107,777
	655		Moody's Corp.		46,872
			TOTAL		289,683
			Diversified Telecommunication Services--0.7%
	1,056		Embarq Corp.		58,619
			Electric Utilities--1.6%
	621	1	Allegheny Energy, Inc.		28,889
	1,289		Edison International		57,979
	267		Entergy Corp.		24,791
	313		Portland General Electric Co.		8,182
	1,172	1	Reliant Resources, Inc.		17,439
			TOTAL		137,280
			Electrical Equipment--0.3%
	91		AMETEK, Inc.		3,154
	293		Honeywell International, Inc.		13,387
	113		Roper Industries, Inc.		5,867
			TOTAL		22,408
			Electronic Equipment & Instruments--0.8%
	218		Amphenol Corp., Class A		14,763
	888	1	Avnet, Inc.		27,572
	128	1	Coherent, Inc.		3,936
	150		Daktronics, Inc.		5,185
	407	1	Ingram Micro, Inc., Class A		7,941
	201		National Instruments Corp.		5,791
			TOTAL		65,188
Shares					Value
			COMMON STOCKS--continued
			Energy Equipment & Services--1.5%
	38	1	FMC Technologies, Inc.	$	2,353
	244	1	Oceaneering International, Inc.		9,631
	775		Schlumberger Ltd.		49,205
	890	1	Transocean Sedco Forex, Inc.		68,859
			TOTAL		130,048
			Food & Staples Retailing--0.2%
	284		Costco Wholesale Corp.		15,955
	83		Longs Drug Stores Corp.		3,569
			TOTAL		19,524
			Food Products--1.1%
	116	1	Dean Foods Co.		5,133
	149		Fresh Del Monte Produce, Inc.		2,295
	833		General Mills, Inc.		47,681
	134		H.J. Heinz Co.		6,314
	380		Kellogg Co.		18,723
	423		Kraft Foods, Inc., Class A		14,771
			TOTAL		94,917
			Gas Utilities--0.1%
	196		AGL Resources, Inc.		7,703
			Health Care Equipment & Supplies--2.3%
	74		Analogic Corp.		4,345
	157		Dentsply International, Inc.		4,842
	214	1	Immucor, Inc.		6,750
	2,676		Medtronic, Inc.		143,032
	85		Mentor Corp.		4,334
	796	1	St. Jude Medical, Inc.		34,037
			TOTAL		197,340
			Health Care Providers & Services--3.0%
	1,018		Cardinal Health, Inc.		72,706
	378	1	Laboratory Corp. of America Holdings		27,760
	109	1	Lincare Holdings, Inc.		4,289
	741	1	Medco Health Solutions, Inc.		43,875
	171	1	Psychiatric Solutions, Inc.		6,659
	1,223	1	Wellpoint, Inc.		95,859
			TOTAL		251,148
Shares					Value
			COMMON STOCKS--continued
			Health Care Technology--0.1%
	283		IMS Health, Inc.	$	8,167
			Hotels, Restaurants & Leisure--1.4%
	698		International Game Technology		30,335
	408	1	Las Vegas Sand Corp.		42,461
	71	1	Life Time Fitness, Inc.		3,848
	204	1	Starbucks Corp.		7,128
	537		Yum! Brands, Inc.		32,225
			TOTAL		115,997
			Household Durables--0.4%
	146		Centex Corp.		7,839
	124		KB HOME		6,723
	225		M.D.C. Holdings, Inc.		13,111
	266		Pulte Homes, Inc.		9,134
			TOTAL		36,807
			Household Products--5.9%
	243		Colgate-Palmolive Co.		16,597
	1,155		Kimberly-Clark Corp.		80,157
	6,150		Procter & Gamble Co.		398,950
			TOTAL		495,704
			IT Services--1.4%
	169	1	Alliance Data Systems Corp.		11,480
	224		Automatic Data Processing, Inc.		10,689
	154	1	Ceridian Corp.		4,615
	101	1	Checkfree Corp.		4,184
	446	1	Cognizant Technology Solutions Corp.		38,039
	608	1	Computer Sciences Corp.		31,896
	317	1	Fiserv, Inc.		16,665
			TOTAL		117,568
			Independent Power Producers & Energy Traders--0.1%
	384	1	AES Corp.		7,983
			Industrial Conglomerates--4.4%
	1,562		3M Co.		116,057
	6,554		General Electric Co.		236,272
	375	1	McDermott International, Inc.		19,365
			TOTAL		371,694
Shares					Value
			COMMON STOCKS--continued
			Insurance--19.5%
	3,830		Allstate Corp.	$	230,413
	787		Ambac Financial Group, Inc.		69,335
	474		American Financial Group, Inc.		16,742
	5,492		American International Group, Inc.		375,927
	723		Assurant, Inc.		40,184
	862		Berkley, W. R. Corp.		28,524
	214	1	CNA Financial Corp.		8,699
	1,453		Chubb Corp.		75,614
	264		Commerce Group, Inc.		7,968
	280		HCC Insurance Holdings, Inc.		8,744
	998		Hartford Financial Services Group, Inc.		94,720
	1,321		Loews Corp.		57,411
	789		MBIA Insurance Corp.		56,674
	3,752		MetLife, Inc.		233,074
	192		Nationwide Financial Services, Inc., Class A		10,493
	152		Ohio Casualty Corp.		4,490
	114	1	Philadelphia Consolidated Holding Corp.		5,137
	2,783		Progressive Corp., OH		64,538
	261		Reinsurance Group of America		15,177
	510		SAFECO Corp.		32,645
	3,684		The St. Paul Travelers Cos., Inc.		187,331
	193		Torchmark Corp.		12,543
	96		Unitrin, Inc.		4,916
	135		Zenith National Insurance Corp.		6,169
			TOTAL		1,647,468
			Internet & Catalog Retail--0.6%
	448	1	Amazon.com, Inc.		16,876
	234	1	Expedia, Inc.		5,019
	487	1	IAC Interactive Corp.		18,701
	159	1	Nutri/System, Inc.		7,004
			TOTAL		47,600
			Internet Software & Services--0.6%
	1,183	1	eBay, Inc.		38,317
	452	1	ValueClick, Inc.		11,535
	150	1	Verisign, Inc.		3,585
			TOTAL		53,437
Shares					Value
			COMMON STOCKS--continued
			Life Sciences Tools & Services--0.1%
	171	1	Waters Corp.	$	9,694
			Machinery--1.1%
	733		Danaher Corp.		54,286
	286		Deere & Co.		28,680
	104		SPX Corp.		7,300
			TOTAL		90,266
			Marine--0.1%
	77	1	American Commercial Lines, Inc.		5,424
			Media--4.7%
	3,121	1	Comcast Corp., Class A		138,323
	1,185	1	Discovery Holding Co., Class A		19,635
	211	1	Lamar Advertising Co.		13,985
	903		McGraw-Hill Cos., Inc.		60,573
	354		Omnicom Group, Inc.		37,241
	5,303		Time Warner, Inc.		115,977
	341	1	Viacom, Inc., Class B		13,868
			TOTAL		399,602
			Metals & Mining--1.0%
	247		Chaparral Steel Co.		12,666
	257		Cleveland Cliffs, Inc.		14,048
	800		Commercial Metals Corp.		21,688
	284		Phelps Dodge Corp.		35,102
			TOTAL		83,504
			Multi-Utilities--0.6%
	371		Energy East Corp.		8,911
	604		P G & E Corp.		28,195
	292		SCANA Corp.		11,890
			TOTAL		48,996
			Multiline Retail--1.3%
	550	1	Sears Holdings Corp.		97,157
	159		Target Corp.		9,756
			TOTAL		106,913
Shares					Value
			COMMON STOCKS--continued
			Oil, Gas & Consumable Fuels--8.0%
	482		Anadarko Petroleum Corp.	$	21,087
	206	1	Bill Barrett Corp.		6,365
	3,166		Chevron Corp.		230,738
	1,275		Devon Energy Corp.		89,365
	187	1	General Maritime Corp.		6,824
	2,529		Marathon Oil Corp.		228,470
	396		OMI Corp.		8,736
	163		Pioneer Natural Resources, Inc.		6,683
	517		Tesoro Petroleum Corp.		42,596
	591		Valero Energy Corp.		32,079
			TOTAL		672,943
			Paper & Forest Products--0.4%
	833		MeadWestvaco Corp.		25,107
	135		Weyerhaeuser Co.		10,125
			TOTAL		35,232
			Personal Products--0.2%
	379		Avon Products, Inc.		13,034
	166		Estee Lauder Cos., Inc., Class A		7,885
			TOTAL		20,919
			Pharmaceuticals--0.5%
	356		Johnson & Johnson		23,781
	613		Schering Plough Corp.		15,325
			TOTAL		39,106
			Road & Rail--2.6%
	1,218		Burlington Northern Santa Fe Corp.		97,878
	140		Con-way, Inc.		6,964
	2,011		Norfolk Southern Corp.		99,846
	315		Ryder System, Inc.		17,180
			TOTAL		221,868
			Semiconductors & Semiconductor Equipment--0.2%
	248	1	Altera Corp.		4,972
	341	1	Cree, Inc.		5,245
	393	1	Spansion, Inc.		5,042
			TOTAL		15,259
Shares					Value
			COMMON STOCKS--continued
			Software--1.7%
	6,277	1	Oracle Corp.	$	107,713
	87		Quality Systems, Inc.		3,691
	1,256	1	Symantec Corp.		22,244
	219	1	THQ, Inc.		6,636
			TOTAL		140,284
			Specialty Retail--2.4%
	339	1	AutoNation, Inc.		7,611
	183	1	AutoZone, Inc.		22,990
	547	1	Bed Bath & Beyond, Inc.		23,078
	204	1	CarMax, Inc.		11,716
	138	1	Dick's Sporting Goods, Inc.		7,106
	382		Foot Locker, Inc.		8,572
	204	1	Guess ?, Inc.		14,710
	134	1	Gymboree Corp.		5,801
	114	1	Hibbett Sporting Goods, Inc.		3,661
	2,482		Home Depot, Inc.		101,117
			TOTAL		206,362
			Textiles, Apparel & Luxury Goods--1.2%
	2,115	1	Coach, Inc.		96,994
	176	1	Crocs, Inc.		8,860
			TOTAL		105,854
			Thrifts & Mortgage Finance--1.2%
	179		Downey Financial Corp.		12,806
	106	1	FirstFed Financial Corp.		7,309
	319		MGIC Investment Corp.		19,689
	487		PMI Group, Inc.		23,288
	593		Radian Group, Inc.		35,710
	141		Webster Financial Corp. Waterbury		7,025
			TOTAL		105,827
Shares or Principal Amount					Value
			COMMON STOCKS--continued
			Trading Companies & Distributors--0.0%
	100		GATX Corp.	$	4,560
			Wireless Telecommunication Services--0.1%
	73	1	U.S. Cellular Corp.		5,263
			TOTAL COMMON STOCKS (IDENTIFIED COST $7,547,438)		8,396,745
			REPURCHASE AGREEMENT--2.4%
$	203,000		Interest in $250,000,000 joint repurchase agreement 5.23%, dated 1/31/2007 under which Mizuho Securities USA, Inc. will repurchase U.S. Treasury securities with various maturities to 2/15/2016 for $250,036,319 on 2/1/2007. The market value of the underlying securities at the end of the period was $255,000,001. (AT COST)		203,000
			TOTAL INVESTMENTS--101.8% (IDENTIFIED COST $7,750,438) 2		8,599,745
			OTHER ASSETS AND LIABILITIES - NET--(1.8)%		(150,091	)
			TOTAL NET ASSETS--100%	$	8,449,654

1 Non-income producing security.

2 Also represents cost for federal tax purposes.

Note: The categories of investments are shown as a percentage of total net assets at January 31, 2007.

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

January 31, 2007 (unaudited)

Assets:
Total investments in securities, at value (identified cost $7,750,438)			$	8,599,745
Cash				1,834
Income receivable				3,971
Receivable for investments sold				37,141
Receivable for shares sold				145,188
TOTAL ASSETS				8,787,879
Liabilities:
Payable for investments purchased	$	225,900
Payable for shares redeemed		9,986
Payable for administrative personnel and services fee (Note 5)		32,971
Payable for transfer agent and dividend disbursing agent fees and expenses		31,487
Payable for Directors'/Trustees' fees		1,463
Payable for portfolio accounting fees		15,822
Payable for distribution services fee (Note 5)		11,496
Payable for shareholder services fee (Note 5)		1,732
Accrued expenses		7,368
TOTAL LIABILITIES				338,225
Net assets for 740,508 shares outstanding			$	8,449,654
Net Assets Consist of:
Paid-in capital			$	7,835,920
Net unrealized appreciation of investments				849,307
Accumulated net realized loss on investments				(230,011	)
Accumulated net investment income (loss)				(5,562	)
TOTAL NET ASSETS			$	8,449,654
Net Asset Value, Offering Price and Redemption Proceeds Per Share
Institutional Shares:
Net asset value per share ($3,067,736 ÷ 267,698 shares outstanding), no par value, unlimited shares authorized				$11.46
Offering price per share				$11.46
Redemption proceeds per share				$11.46
Class A Shares:
Net asset value per share ($3,139,034 ÷ 274,422 shares outstanding), no par value, unlimited shares authorized				$11.44
Offering price per share (100/94.50 of $11.44) 1				$12.11
Redemption proceeds per share				$11.44
Class C Shares:
Net asset value per share ($2,242,884 ÷ 198,388 shares outstanding), no par value, unlimited shares authorized				$11.31
Offering price per share (100/99.00 of $11.31) 1				$11.42
Redemption proceeds per share (99.00/100 of $11.31) 1				$11.20

1 See "What Do Shares Cost?" in the Prospectus.

See Notes which are an integral part of the Financial Statements

Statement of Operations

Six Months Ended January 31, 2007 (unaudited)

Investment Income:
Dividends							$	49,216
Interest								1,647
TOTAL INCOME								50,863
Expenses:
Investment adviser fee (Note 5)				$	30,609
Administrative personnel and services fee (Note 5)					115,946
Custodian fees					14,032
Transfer and dividend disbursing agent fees and expenses					43,993
Directors'/Trustees' fees					907
Auditing fees					7,310
Legal fees					4,537
Portfolio accounting fees					36,681
Distribution services fee--Class A Shares (Note 5)					2,111
Distribution services fee--Class C Shares (Note 5)					7,889
Shareholder services fee--Class A Shares (Note 5)					996
Shareholder services fee--Class C Shares (Note 5)					736
Share registration costs					24,076
Printing and postage					10,105
Insurance premiums					3,472
Miscellaneous					2,205
TOTAL EXPENSES					305,605
Waivers and Reimbursement:
Waiver of investment adviser fee (Note 5)	$	(30,609	)
Waiver of administrative personnel and services fee (Note 5)		(82,865	)
Waiver of transfer and dividend disbursing agent fees and expenses		(12,050	)
Waiver of portfolio accounting fees		(20,162	)
Reimbursement of other operating expenses (Note 5)		(103,494	)
TOTAL WAIVERS AND REIMBURSEMENT					(249,180	)
Net expenses								56,425
Net investment income (loss)								(5,562	)
Realized and Unrealized Gain on Investments:
Net realized gain on investments								67,983
Net change in unrealized appreciation of investments								554,660
Net realized and unrealized gain on investments								622,643
Change in net assets resulting from operations							$	617,081

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

		Six Months Ended (unaudited) 1/31/2007			Period Ended 7/31/2006 1
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	(5,562	)	$	(12,305	)
Net realized gain (loss) on investments		67,983			(297,994	)
Net change in unrealized appreciation/depreciation of investments		554,660			294,647
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		617,081			(15,652	)
Share Transactions:
Proceeds from sale of shares		3,963,543			4,955,728
Cost of shares redeemed		(904,588	)		(166,458	)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		3,058,955			4,789,270
Change in net assets		3,676,036			4,773,618
Net Assets:
Beginning of period		4,773,618			- --
End of period (including accumulated net investment income (loss) of $(5,562) and $0, respectively)	$	8,449,654		$	4,773,618

1 Reflects operations for the period from September 15, 2005 (date of initial public investment) to July 31, 2006.

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

January 31, 2007 (unaudited)

1. ORGANIZATION

Federated MDT Series (the "Trust") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Trust consists of eight portfolios. The financial statements included herein are only those of Federated MDT Tax Aware/All Cap Core Fund (the "Fund"), a diversified portfolio. The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held. The Fund offers three classes of shares: Institutional Shares, Class A Shares and Class C Shares. All shares of the Fund have equal rights with respect to voting, except on class-specific matters. The financial highlights of the Institutional Shares are presented separately. The primary investment objective of the Fund is long-term capital appreciation while seeking to minimize the impact of taxes.

MDT Tax Aware/All Cap Core Fund (the "Predecessor Fund") was reorganized into the Fund as of the close of business on December 8, 2006. Prior to the reorganization, the Fund had no investment operations. The Fund is the successor to the Predecessor Fund, which commenced operations on September 15, 2005.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with generally accepted accounting principles (GAAP) in the United States of America.

Investment Valuation

Market values of the Fund's portfolio securities are determined as follows:

• for equity securities, according to the last sale price or official closing price reported in the market in which they are primarily traded (either a national securities exchange or the over-the-counter market), if available;
• in the absence of recorded sales for equity securities, according to the mean between the last closing bid and asked prices;
• futures contracts and options are generally valued at market values established by the exchanges on which they are traded at the close of trading on such exchanges. Options traded in the over-the-counter market are generally valued according to the mean between the last bid and the last asked price for the option as provided by an investment dealer or other financial institution that deals in the option. The Board of Trustees (the "Trustees") may determine in good faith that another method of valuing such investments is necessary to appraise their fair market value;
• prices for total return swaps are furnished by an independent pricing service and are based upon a valuation model incorporating underlying reference indexes, interest rates, yield curves and other market data or factors. Prices for credit default swaps are furnished by an independent pricing service and are based upon a valuation model incorporating default probabilities, recovery rates and other market data or factors;
• for mortgage-backed securities, based on the aggregate investment value of the projected cash flows to be generated by the security, as furnished by an independent pricing service;
• for investments in other open-end regulated investment companies, based on net asset value (NAV);
• for other fixed-income securities, according to prices as furnished by an independent pricing service, except that fixed-income securities with remaining maturities of less than 60 days at the time of purchase are valued at amortized cost; and
• for all other securities at fair value as determined in accordance with procedures established by and under the general supervision of the Trustees.

Prices for fixed-income securities furnished by a pricing service may be based on a valuation matrix which incorporates both dealer-supplied valuations and electronic data processing techniques. Such prices (other than prices of mortgage-backed securities) are generally intended to be indicative of the bid prices currently offered to institutional investors for the securities, except that prices for corporate fixed-income and asset-backed securities traded in the United States are generally intended to be indicative of the mean between such bid prices and asked prices. The Trustees have approved the use of such pricing services. A number of pricing services are available, and the Fund may use various pricing services or discontinue the use of any pricing service.

Prices provided by independent pricing services may be determined without relying exclusively on quoted prices and may consider institutional trading in similar groups of securities, yield, quality, stability, risk, coupon rate, maturity, type of issue, trading characteristics, and other market data or factors. From time to time, when prices cannot be obtained from an independent pricing service, securities may be valued based on quotes from broker-dealers or other financial institutions that trade the securities.

Trading in foreign securities may be completed at times which vary from the closing of the New York Stock Exchange (NYSE). In computing its NAV, the Fund values foreign securities using the latest closing price on the exchange on which they are traded immediately prior to the closing of the NYSE. Certain foreign currency exchange rates are generally determined at the latest rate prior to the closing of the NYSE. Foreign securities quoted in foreign currencies are translated into U.S. dollars at current rates. Events that affect these values and exchange rates may occur between the times at which they are determined and the closing of the NYSE. If such events materially affect the value of portfolio securities, these securities may be valued at their fair value as determined in good faith by the Trustees, although the actual calculation may be done by others.

Repurchase Agreements

It is the policy of the Fund to require the other party to a repurchase agreement to transfer to the Fund's custodian or sub-custodian eligible securities or cash with a market value (after transaction costs) at least equal to the repurchase price to be paid under the repurchase agreement. The eligible securities are transferred to accounts with the custodian or sub-custodian in which the Fund holds a "securities entitlement" and exercises "control" as those terms are defined in the Uniform Commercial Code. The Fund has established procedures for monitoring the market value of the transferred securities and requiring the transfer of additional eligible securities if necessary to equal at least the repurchase price. These procedures also allow the other party to require securities to be transferred from the account to the extent that their market value exceeds the repurchase price or in exchange for other eligible securities of equivalent market value.

With respect to agreements to repurchase U.S. government securities and cash items, the Fund treats the repurchase agreement as an investment in the underlying securities and not as an obligation of the other party to the repurchase agreement. Other repurchase agreements are treated as obligations of the other party secured by the underlying securities. Nevertheless, the insolvency of the other party or other failure to repurchase the securities may delay the disposition of the underlying securities or cause the Fund to receive less than the full repurchase price. Under the terms of the repurchase agreement, any amounts received by the Fund in excess of the repurchase price and related transaction costs must be remitted to the other party.

The Fund may enter into repurchase agreements in which eligible securities are transferred into joint trading accounts maintained by the custodian or sub-custodian for investment companies and other clients advised by the Fund's adviser and its affiliates. The Fund will participate on a pro rata basis with the other investment companies and clients in its share of the securities transferred under such repurchase agreements and in its share of proceeds from any repurchase or other disposition of such securities.

Investment Income, Gains and Losses, Expenses and Distributions

Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Distributions of net investment income, if any, are declared and paid annually. Non-cash dividends included in dividend income, if any, are recorded at fair value. Investment income, realized and unrealized gains and losses, and certain fund-level expenses are allocated to each class based on relative average daily net assets, except that each class bears certain expenses unique to that class such as distribution and shareholder services fees. Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses.

Premium and Discount Amortization

All premiums and discounts on fixed-income securities are amortized/accreted for financial statement purposes.

Federal Taxes

It is the Fund's policy to comply with the Subchapter M provision of the Internal Revenue Code (the "Code") and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal income tax is necessary.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated.

Other

Investment transactions are accounted for on a trade date basis. Realized gains and losses from investment transactions are recorded on an identified cost basis.

3. SHARES OF BENEFICIAL INTEREST

The following tables summarize share activity:

	Six Months Ended 1/31/2007					Period Ended 7/31/2006 1
Institutional Shares:	Shares			Amount		Shares			Amount
Shares sold	205,384		$	2,241,242		134,445		$	1,376,578
Shares redeemed	(71,202	)		(761,970	)	(929	)		(9,501	)
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS	134,182		$	1,479,272		133,516		$	1,367,077
	Six Months Ended 1/31/2007					Period Ended 7/31/2006 1
Class A Shares:	Shares			Amount		Shares			Amount
Shares sold	86,855		$	954,589		212,325		$	2,205,037
Shares redeemed	(11,486	)		(124,519	)	(13,272	)		(135,352	)
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS	75,369		$	830,070		199,053		$	2,069,685
	Six Months Ended 1/31/2007					Period Ended 7/31/2006 1
Class C Shares:	Shares			Amount		Shares			Amount
Shares sold	70,673		$	767,712		131,487		$	1,374,113
Shares redeemed	(1,698	)		(18,099	)	(2,074	)		(21,605	)
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS	68,975		$	749,613		129,413		$	1,352,508
NET CHANGE RESULTING FROM SHARE TRANSACTIONS	278,526		$	3,058,955		461,982		$	4,789,270

1 Reflects operations for the period from September 15, 2005 (date of initial public investment) to July 31, 2006.

4. FEDERAL TAX INFORMATION

At January 31, 2007, the cost of investments for federal tax purposes was $7,750,438. The net unrealized appreciation of investments for federal tax purposes was $849,307. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $886,399 and net unrealized depreciation from investments for those securities having an excess of cost over value of $37,092.

At July 31, 2006, the Fund had a capital loss carryforward of $2,945 which will reduce the Fund's taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Code and thus will reduce the amount of distributions to shareholders which would otherwise be necessary to relieve the Fund of any liability for federal income tax. Pursuant to the Code, such capital loss carryforward will expire in 2014.

5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated MDTA LLC, the Fund's investment adviser (the "Adviser"), receives for its services an annual investment adviser fee equal to 0.90% of the Fund's average daily net assets. Prior to December 8, 2006, the Adviser received an annual investment adviser fee equal to 1.00% of the Fund's average daily net assets. Under the investment advisory contract, the Adviser is contractually obligated to waive, to the extent of its adviser fee, the amount, if any, by which the Fund's annual operating expenses exceed the following levels for each Class of the Fund:

Share Class	Percentage of Average Daily Net Assets of Class
Institutional Shares	1.80%
Class A Shares	2.05%
Class C Shares	2.80%

The Adviser has agreed to keep these contractual limitations in place through December 8, 2008.

In addition, after fulfilling its contractual commitment, the Adviser may voluntarily choose to waive and/or reimburse any additional portion of its fee. The Adviser can modify or terminate this voluntary waiver and/or reimbursement at any time at its sole discretion. For the six months ended January 31, 2007, the Adviser waived $30,609 of its fee and reimbursed $103,494 of other operating expenses.

For a period of three years after the fiscal year in which the Adviser waived or reimbursed Fund expenses, the Adviser may seek reimbursement from the Fund to the extent that the Fund's total annual operating expenses are less than the expense limitation. Due to the reorganization of the Fund, any expenses waived or reimbursed by the Adviser after December 8, 2006 may not be recovered by the Adviser.

Expenses waived/reimbursed by the Fund of $66,355 are subject to potential recovery by the expiration date of July 31, 2009.

Administrative Fee

Federated Administrative Services (FAS), under the Administrative Services Agreement (the "Agreement"), provides the Fund with administrative personnel and services. The fee paid to FAS is based on the average aggregate daily net assets of certain Federated funds as specified below:

Administrative Fee	Average Aggregate Daily Net Assets of the Federated Funds
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

The administrative fee received during any fiscal year shall be at least $150,000 per portfolio and $40,000 per each additional class of Shares. During the period from July 15, 2006 through December 8, 2006, the administrator contractually agreed to waive the portion of its fee which it would otherwise be entitled to receive from the Fund under the Agreement. The level of fees payable by the Fund to FAS for the period will not exceed the level of fees which the Fund would have paid during the period to its previous service provider under its previous administrative services contract. In addition, FAS may voluntarily choose to waive any portion of its fee. FAS can modify or terminate this voluntary waiver at any time at its sole discretion. For the six months ended January 31, 2007, the net fee paid to FAS was 1.043% of average aggregate daily net assets of the Fund.

Distribution Services Fee

The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will compensate Federated Securities Corp. (FSC), the principal distributor, from the daily net assets of the Fund's Class A Shares and Class C Shares to finance activities intended to result in the sale of these shares. The Plan provides that the Fund may incur distribution expenses according to the following schedule annually, to compensate FSC:

Share Class	Percentage of Average Daily Net Assets of Class
Class A Shares	0.25%
Class C Shares	0.75%

Prior to December 11, 2006, the Fund incurred distribution expenses according to the following schedule annually, to compensate FSC:

Share Class	Percentage of Average Daily Net Assets of Class
Class A Shares	0.25%
Class C Shares	1.00%

FSC may voluntarily choose to waive any portion of its fee. FSC can modify or terminate this voluntary waiver at any time at its sole discretion. When FSC receives fees, it may pay some or all of them to financial intermediaries whose customers purchase shares. For the six months ended January 31, 2007, FSC retained $6,796 of fees paid by the Fund.

Sales Charges

For the six months ended January 31, 2007, FSC, the principal distributor, retained $1,317 in sales charges from the sale of Class A Shares. FSC also retained $29 of contingent deferred sales charges relating to redemptions of Class C Shares. See "What Do Shares Cost?" in the Prospectus.

Shareholder Services Fee

Effective December 11, 2006, the Fund may pay fees (Service Fees) up to 0.25% of the average daily net assets of the Fund's Class A Shares and Class C Shares to financial intermediaries or to Federated Shareholder Services Company (FSSC) for providing services to shareholders and maintaining shareholder accounts. FSSC or these financial intermediaries may voluntarily choose to waive any portion of their fee. In addition, FSSC may voluntarily reimburse the Fund for shareholder services fees. This voluntary waiver and/or reimbursement can be modified or terminated at any time. For the six months ended January 31, 2007, FSSC did not receive any fees paid by the Fund.

General

Certain of the Officers and Trustees of the Trust are Officers and Directors or Trustees of the above companies.

6. INVESTMENT TRANSACTIONS

Purchases and sales of investments, excluding long-term U.S. government securities and short-term obligations, for the six months ended January 31, 2007, were as follows:

Purchases	$	7,500,637
Sales	$	4,430,746

7. LINE OF CREDIT

The Trust entered into a $150,000,000 unsecured, uncommitted revolving line of credit (LOC) agreement with PNC Bank. The LOC was made available for extraordinary or emergency purposes, primarily for financing redemption payments. Borrowings are charged interest at a rate of 0.65% over the federal funds rate. As of January 31, 2007, there were no outstanding loans. During the six months ended January 31, 2007, the Fund did not utilize the LOC.

8. LEGAL PROCEEDINGS

Beginning in October 2003, Federated Investors, Inc. and various subsidiaries thereof (including the advisers and distributor for various investment companies, collectively, "Federated"), along with various investment companies sponsored by Federated ("Funds") were named as defendants in several class action lawsuits now pending in the United States District Court for the District of Maryland. The lawsuits were purportedly filed on behalf of people who purchased, owned and/or redeemed shares of Federated-sponsored mutual funds during specified periods beginning November 1, 1998. The suits are generally similar in alleging that Federated engaged in illegal and improper trading practices including market timing and late trading in concert with certain institutional traders, which allegedly caused financial injury to the mutual fund shareholders. These lawsuits began to be filed shortly after Federated's first public announcement that it had received requests for information on shareholder trading activities in the Funds from the Securities and Exchange Commission ("SEC"), the Office of the New York State Attorney General ("NYAG"), and other authorities. In that regard, on November 28, 2005, Federated announced that it had reached final settlements with the SEC and the NYAG with respect to those matters. As Federated previously reported in 2004, it has already paid approximately $8.0 million to certain funds as determined by an independent consultant. As part of these settlements, Federated agreed to pay for the benefit of fund shareholders additional disgorgement and a civil money penalty in the aggregate amount of an additional $72 million. Federated and various Funds have also been named as defendants in several additional lawsuits, the majority of which are now pending in the United States District Court for the Western District of Pennsylvania, alleging, among other things, excessive advisory and Rule 12b-1 fees. The Board of the Funds has retained the law firm of Dickstein Shapiro LLP to represent the Funds in these lawsuits. Federated and the Funds, and their respective counsel, are reviewing the allegations and intend to defend this litigation. Additional lawsuits based upon similar allegations may be filed in the future. The potential impact of these lawsuits, all of which seek unquantified damages, attorneys' fees and expenses, and future potential similar suits is uncertain. Although we do not believe that these lawsuits will have a material adverse effect on the Funds, there can be no assurance that these suits, the ongoing adverse publicity and/or other developments resulting from the regulatory investigations will not result in increased Fund redemptions, reduced sales of Fund shares, or other adverse consequences for the Funds.

9. RECENT ACCOUNTING PRONOUNCEMENTS

In July 2006, the Financial Accounting Standards Board (FASB) released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" (FIN 48). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax benefits of positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax expense in the current year. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years of the Fund no later than January 31, 2008. At this time, management is evaluating the implications of FIN 48 and its impact in the financial statements has not yet been determined.

In addition, in September 2006, FASB released Statement on Financial Accounting Standards No. 157, "Fair Value Measurements" (FAS 157) which is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of FAS 157 will have on the Funds' financial statement disclosures.

Evaluation and Approval of Advisory Contract

FEDERATED MDT TAX AWARE/ALL CAP CORE FUND (THE "FUND")

The Fund's Board reviewed the Fund's investment advisory contract at meetings held in May and June 2006. The Board's decision to approve the contract reflects the exercise of its business judgment on whether to authorize the creation and offering of this new investment vehicle, as proposed by, and based on information provided by, the Federated organization, and based on Federated's recommendation to go forward with establishment of the Fund.

Federated proposed the creation of the Fund in connection with its acquisition of MDTA LLC (the "Acquisition"), the investment adviser to the MDT Tax Aware/All Cap Core Fund (the "Predecessor Fund"). As part of that transaction, Federated proposed that the Predecessor Fund be reorganized with and into the Fund in a tax-free reorganization (the "Proposed Reorganization"), which would provide shareholders of the Predecessor Fund the opportunity to become shareholders of a fund with substantially similar investment objectives and policies and the same portfolio manager(s) as the Predecessor Fund, but with sales, distribution and other shareholder services offered by the funds managed and distributed by affiliates of Federated.

Prior to the meeting, the Adviser had recommended that the Federated Funds appoint a Senior Officer, whose duties include specified responsibilities relating to the process by which advisory fees are to be charged to a Federated Fund. The Senior Officer appointed by the Funds has the authority to retain consultants, experts, or staff as may be reasonably necessary to assist in the performance of his duties, reports directly to the Board, and may be terminated only with the approval of a majority of the independent members of the Board. The Senior Officer prepared and furnished to the Board an independent written evaluation that covered topics discussed below, which the Board considered, along with other information, in deciding to approve the advisory contract.

The Board also considered the anticipated compensation and benefits to be received by the Adviser. This includes fees to be received for services provided to the Fund by other entities in the Federated organization and research services that may be received by the Adviser from brokers that execute fund trades, as well as advisory fees. The Board is also familiar with judicial decisions concerning allegedly excessive investment advisory fees which have indicated that the following factors may be relevant to an Adviser's fiduciary duty with respect to its receipt of compensation from a fund: the nature and quality of the services provided by the Adviser, including the performance of the Fund; the Adviser's cost of providing the services; the extent to which the Adviser may realize "economies of scale" as the Fund grows larger; any indirect benefits that may accrue to the Adviser and its affiliates as a result of the Adviser's relationship with the Fund; performance and expenses of comparable funds; and the extent to which the independent Board members are fully informed about all facts the Board deems relevant bearing on the Adviser's services and fees. The Board further considered management fees (including any components thereof) charged to institutional and other clients of the Adviser for like services and costs to the Adviser and its affiliates of supplying services pursuant to the management fee agreements, excluding any intra-corporate profit and profit margins of the Adviser and its affiliates from supplying such services. The Board was aware of these considerations and was guided by them in its review of the Fund's advisory contract to the extent they are appropriate and relevant, as discussed further below.

The Board considered and weighed these circumstances in light of its substantial accumulated experience in working with Federated on matters relating to other Federated Funds, and was assisted in its deliberations by the advice of independent legal counsel. The Board's consideration of the advisory contract included review of the Senior Officer's evaluation, accompanying data and additional reports covering such matters as: the Adviser's investment philosophy, revenue, profitability, personnel and processes; investment and operating strategies; the Fund's investment objectives; the Fund's expenses (including the advisory fee itself and the overall expense structure of the Fund, both in absolute terms and relative to similar and/or competing funds, with due regard for contractual or voluntary expense limitations); the nature, quality and extent of the advisory and other services to be provided to the Fund by the Adviser and its affiliates; the preferences and expectations of Fund shareholders and their relative sophistication; the continuing state of competition in the mutual fund industry and market practices; the range of comparable fees for similar funds in the mutual fund industry; the Fund's relationship to the Federated family of funds which include a comprehensive array of funds with different investment objectives, policies and strategies which are available for exchange without the incurrence of additional sales charges; compliance and audit reports concerning the Federated Funds and the Federated companies that service them (including communications from regulatory agencies), as well as Federated's responses to any issues raised therein; and relevant developments in the mutual fund industry and how the Federated Funds and/or Federated are responding to them. The Board's evaluation process is evolutionary. The criteria considered and the emphasis placed on relevant criteria change in recognition of changing circumstances in the mutual fund marketplace.

With respect to the Fund's expenses in particular, the Board has found the use of comparisons to other mutual funds with comparable investment programs to be particularly useful, given the high degree of competition in the mutual fund business. The Board focused on comparisons with other similar mutual funds more heavily than non-mutual fund products or services because, simply put, they are more relevant. For example, other mutual funds are the products most like the Fund, they are readily available to Fund shareholders as alternative investment vehicles, and they are the type of investment vehicle in fact chosen and maintained by the Fund's anticipated investors. The range of their fees and expenses therefore appears to be a generally reliable indication of what consumers have found to be reasonable in the precise marketplace in which the Fund will compete. In this regard, the Senior Officer also reviewed Federated's fees for providing advisory services to products outside the Federated family of funds (e.g., institutional and separate accounts). He concluded that mutual funds and institutional accounts are inherently different products. Those differences included, but are not limited to targeting different investors, being subject to different laws and regulations, different legal structure, distribution costs, average account size and portfolio management techniques made necessary by different cash flows. The Senior Officer did not consider these fee schedules to be significant in determining the appropriateness of mutual fund advisory contracts.

The Senior Officer reviewed reports compiled by Federated and directed the preparation of reports regarding the performance of, and fees charged by other mutual funds, noting his view that comparisons to fund peer groups is of significance in judging the reasonableness of proposed fees.

Because the Fund will employ the same portfolio managers and investment techniques, the Board reviewed the Predecessor Fund's performance compared to its benchmark as an indicator of how the Adviser will execute the Fund's investment program, which in turn assisted the Board in reaching a conclusion that the nature, extent, and quality of the Adviser's investment management services were such as to warrant approval of the advisory contract. The Board noted that the Predecessor Fund and/or accounts managed by MDTA LLC with substantially similar investment objectives and policies outperformed its relevant benchmark for the one and three year periods reviewed. The Board determined that reviewing performance on a gross basis was appropriate in this instance because the fee structure for separately managed accounts is not comparable for the Fund as discussed above.

The Senior Officer noted that the Fund's quantitative focus made it difficult to compare its fees and expenses to other peers, which varied widely in their complexity. He observed that the management of the Fund is among the more complex, relative to its peers and, consequently, that the advisory fee and projected net total expenses are at the high end compared to such peers. The Board reviewed the proposed fees and other expenses of the Fund with the Adviser and was satisfied that the proposed overall expense structure of the Fund appeared competitive. The Board will continue to monitor advisory fees and other expenses borne by the Fund. No changes were recommended to, and no objection was raised to the proposed advisory contract, and the Senior Officer noted that Federated proposed to provide appropriate administrative services to the Fund for the anticipated fees. The Board concluded that the nature, quality and scope of services to be provided to the Fund by the Adviser and its affiliates was satisfactory.

The Board also considered possible indirect benefits that may accrue to the Adviser and its affiliates as a result of the Acquisition. Other indirect benefits that may accrue to the Adviser and its affiliates as a result of the Adviser's relationship with the Fund are essentially impossible to apply before the Fund has experienced any meaningful operating history. Nevertheless, in connection with the Board's governance of other Federated Funds, it should be noted that the Board regularly receives financial information about Federated, including reports on the compensation and benefits Federated derives from its relationships with the other Federated Funds. These reports cover not only the fees under the advisory contracts, but also fees received by Federated's subsidiaries for providing other services to the Federated Funds under separate contracts (e.g., for serving as the Federated Funds' administrator). The reports also discuss any indirect benefit Federated may derive from its receipt of research services from brokers who execute Federated Fund trades, as well as waivers of fees and/or reimbursements of expenses. In order for a fund to be competitive in the marketplace, Federated and its affiliates frequently waive fees and/or reimburse expenses and have indicated to the Board their intention to do so in the future, where appropriate. It was noted in this regard that the Adviser has agreed to limit the expenses of each class of the Fund at specified amounts for a two year period commencing on the date the Proposed Reorganization is consummated.

Federated furnished reports, requested by the Senior Officer, that made estimates of the allocation of expenses on a fund by fund basis, using allocation methodologies specified by the Senior Officer. The Senior Officer noted that, although they may apply consistent allocation processes, the inherent difficulties in allocating costs and the lack of consensus on how to allocate those costs causes such allocation reports to be of questionable value. The allocation reports were considered in the analysis by the Board but were determined to be of limited use.

The Board also reviewed profitability information for Federated and other publicly held fund management companies, provided by the Senior Officer, who noted the limited availability of such information, and concluded that Federated's profit margins did not appear to be excessive.

The Senior Officer's evaluation also discussed the notion of possible realization of "economies of scale" as a fund grows larger. The Board considered in this regard that the Adviser has made significant additional investments in the portfolio management and distribution efforts supporting all of the Federated Funds and that the benefits of any economies, should they exist, were likely to be enjoyed by the fund complex as a whole. Finally, the Board also noted the absence of any applicable regulatory or industry guidelines on this subject, which is compounded by the lack of any common industry practice or general pattern with respect to structuring fund advisory fees with "breakpoints" that serve to reduce the fee as the fund attains a certain size. The Senior Officer did not recommend institution of breakpoints in pricing Federated's fund advisory services at this time.

The Board based its decision to approve the advisory contract on the totality of the circumstances and relevant factors, and with a view to past and future long-term considerations. As noted, not all of the factors and considerations identified above were relevant to the Fund, nor does the Board consider any one of them to be determinative. With respect to the factors that are relevant, the Board's decision to approve the contract reflects its determination that, based upon the information requested and supplied, Federated's proposal to establish and manage the Fund, and its past performance and actions in providing services to other mutual funds, provide a satisfactory basis to support the business decision to approve the proposed arrangements.

Voting Proxies on Fund Portfolio Securities

A description of the policies and procedures that the Fund uses to determine how to vote proxies, if any, relating to securities held in the Fund's portfolio is available, without charge and upon request, by calling 1-800-341-7400. A report on "Form N-PX" of how the Fund voted any such proxies during the most recent 12-month period ended June 30 is available through Federated's website. Go to FederatedInvestors.com, select "Products," select the "Prospectuses and Regulatory Reports" link, then select the Fund to access the link to Form N-PX. This information is also available from the EDGAR database on the SEC's website at www.sec.gov.

Quarterly Portfolio Schedule

The Fund files with the SEC a complete schedule of its portfolio holdings, as of the close of the first and third quarters of its fiscal year, on "Form N-Q." These filings are available on the SEC's website at www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. (Call 1-800-SEC-0330 for information on the operation of the Public Reference Room.) You may also access this information from the "Products" section of Federated's website at FederatedInvestors.com by clicking on "Portfolio Holdings" and selecting the name of the Fund, or by selecting the name of the Fund and clicking on "Portfolio Holdings." You must register on the website the first time you wish to access this information.

Mutual funds are not bank deposits or obligations, are not guaranteed by any bank, and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other government agency. Investment in mutual funds involves investment risk, including the possible loss of principal.

This report is authorized for distribution to prospective investors only when preceded or accompanied by the Fund's prospectus, which contains facts concerning its objective and policies, management fees, expenses, and other information.

IMPORTANT NOTICE ABOUT FUND DOCUMENT DELIVERY

In an effort to reduce costs and avoid duplicate mailings, the Fund(s) intend to deliver a single copy of certain documents to each household in which more than one shareholder of the Fund(s) resides (so-called "householding"), as permitted by applicable rules. The Fund's "householding" program covers its/their Prospectus and Statement of Additional Information, and supplements to each, as well as Semi-Annual and Annual Shareholder Reports and any Proxies or information statements. Shareholders must give their written consent to participate in the "householding" program. The Fund is also permitted to treat a shareholder as having given consent ("implied consent") if (i) shareholders with the same last name, or believed to be members of the same family, reside at the same street address or receive mail at the same post office box, (ii) the Fund gives notice of its intent to "household" at least sixty (60) days before it begins "householding" and (iii) none of the shareholders in the household have notified the Fund(s) or their agent of the desire to "opt out" of "householding." Shareholders who have granted written consent, or have been deemed to have granted implied consent, can revoke that consent and opt out of "householding" at any time: shareholders who purchased shares through an intermediary should contact their representative; other shareholders may call the Fund at 1-800-341-7400.

Federated Securities Corp., Distributor

Cusip 31421R403
Cusip 31421R502

36402 (3/07)

Federated is a registered mark of Federated Investors, Inc. 2007 (c)Federated Investors, Inc.

Federated
World-Class Investment Manager

Federated MDT Tax Aware/All Cap Core Fund

A Portfolio of Federated MDT Series

SEMI-ANNUAL SHAREHOLDER REPORT

January 31, 2007

Institutional Shares

FINANCIAL HIGHLIGHTS
SHAREHOLDER EXPENSE EXAMPLE
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
PORTFOLIO OF INVESTMENTS
STATEMENT OF ASSETS AND LIABILITIES
STATEMENT OF OPERATIONS
STATEMENT OF CHANGES IN NET ASSETS
NOTES TO FINANCIAL STATEMENTS
EVALUATION AND APPROVAL OF ADVISORY CONTRACT
VOTING PROXIES ON FUND PORTFOLIO SECURITIES
QUARTERLY PORTFOLIO SCHEDULE

Not FDIC Insured * May Lose Value * No Bank Guarantee

Financial Highlights

(For a Share Outstanding Throughout Each Period)

	Six Months Ended (unaudited)		Period Ended
	1/31/2007	1	7/31/2006	2
Net Asset Value, Beginning of Period	$10.36		$10.00
Income From Investment Operations:
Net investment income (loss)	0.01	3	(0.03	) 3
Net realized and unrealized gain on investments	1.09		0.39
TOTAL FROM INVESTMENT OPERATIONS	1.10		0.36
Net Asset Value, End of Period	$11.46		$10.36
Total Return 4	10.62	%	3.60	%
Ratios to Average Net Assets:
Net expenses	1.41	% 5	1.76	% 5
Net investment income (loss)	0.21	% 5	(0.25	)% 5
Expense waiver/reimbursement 6	7.52	% 5	3.71	% 5
Supplemental Data:
Net assets, end of period (000 omitted)	$3,068		$1,383
Portfolio turnover	71	%	182	%

1 MDT Tax Aware/All Cap Core Fund (the "Predecessor Fund") was reorganized into Federated MDT Tax Aware/All Cap Core Fund (the "Fund") as of the close of business on December 8, 2006. Prior to the reorganization, the Fund had no investment operations. The Fund is the successor to the Predecessor Fund. The performance information and financial information presented incorporates the operations of the Predecessor Fund, which, as a result of the reorganization, are the Fund's operations.

2 Reflects operations for the period from September 15, 2005 (date of initial public investment) to July 31, 2006.

3 Per share numbers have been calculated using the average shares method.

4 Based on net asset value, which does not reflect the sales charge, redemption fee, or contingent deferred sales charge, if applicable. Total returns for periods of less than one year are not annualized.

5 Computed on an annualized basis.

6 This expense decrease is reflected in both the net expense and the net investment income (loss) ratios shown above.

See Notes which are an integral part of the Financial Statements

Shareholder Expense Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; to the extent applicable, distribution (12b-1) fees and/or shareholder services fees and other Fund expenses. This Example is intended to help you to understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. It is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from August 1, 2006 to January 31, 2007.

ACTUAL EXPENSES

The first section of the table below provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you incurred over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled "Expenses Paid During Period" to estimate the expenses attributable to your investment during this period.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

The second section of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. Thus, you should not use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are required to be provided to enable you to compare the ongoing costs of investing in the Fund with other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.

	Beginning Account Value 8/1/2006	Ending Account Value 1/31/2007	Expenses Paid During Period 1
Actual	$1,000	$1,106.20	$7.49
Hypothetical (assuming a 5% return before expenses)	$1,000	$1,018.10	$7.17

1 Expenses are equal to the Fund's annualized net expense ratio of 1.41%, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

Portfolio of Investments Summary Table

At January 31, 2007, the Fund's industry composition ¹ was as follows:

Industry	Percentage of Total Net Assets
Insurance	19.5	%
Capital Markets	8.2	%
Oil, Gas & Consumable Fuels	8.0	%
Commercial Banks	6.7	%
Household Products	5.9	%
Media	4.7	%
Industrial Conglomerates	4.4	%
Diversified Financial Services	3.4	%
Health Care Providers & Services	3.0	%
Computers & Peripherals	2.7	%
Road & Rail	2.6	%
Specialty Retail	2.4	%
Health Care Equipment & Supplies	2.3	%
Software	1.7	%
Aerospace & Defense	1.6	%
Electric Utilities	1.6	%
Energy Equipment & Services	1.5	%
Hotels, Restaurants & Leisure	1.4	%
IT Services	1.4	%
Multiline Retail	1.3	%
Textiles, Apparel & Luxury Goods	1.2	%
Thrifts & Mortgage Finance	1.2	%
Commercial Services & Supplies	1.1	%
Food Products	1.1	%
Machinery	1.1	%
Metals & Mining	1.0	%
Other 2	8.4	%
Cash Equivalents 3	2.4	%
Other Assets and Liabilities--Net 4	(1.8	)%
TOTAL	100.0	%

1 Except for Cash Equivalents and Other Assets and Liabilities, industry classifications are based upon, and individual portfolio securities are assigned to, the classifications of the Global Industry Classification Standard (GICS) except that the adviser assigns a classification to securities not classified by the GICS and to securities for which the adviser does not have access to the classification made by the GICS.

2 For purposes of this table, industry classifications which constitute less than 1.0% of the Fund's total net assets have been aggregated under the designation "Other".

3 Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements.

4 Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities.

Portfolio of Investments

January 31, 2007 (unaudited)

Shares					Value
			COMMON STOCKS--99.4%
			Aerospace & Defense--1.6%
	189		Goodrich (B.F.) Co.	$	9,265
	472		Lockheed Martin Corp.		45,874
	1,201		Raytheon Co.		62,332
	283		Rockwell Collins		19,303
			TOTAL		136,774
			Air Freight & Logistics--0.1%
	145	1	Hub Group, Inc.		4,330
			Biotechnology--0.5%
	285	1	Celgene Corp.		15,299
	268	1	Genentech, Inc.		23,415
			TOTAL		38,714
			Building Products--0.2%
	413		American Standard Cos.		20,398
			Capital Markets--8.2%
	71	1	Affiliated Managers Group		7,909
	630		Bear Stearns Cos., Inc.		103,855
	2,345		Lehman Brothers Holdings, Inc.		192,853
	242		Merrill Lynch & Co., Inc.		22,642
	4,401		Morgan Stanley		364,359
			TOTAL		691,618
			Chemicals--0.1%
	70		FMC Corp.		5,449
	74	1	OM Group, Inc.		3,616
			TOTAL		9,065
Shares					Value
			COMMON STOCKS--continued
			Commercial Banks--6.7%
	161		City National Corp.	$	11,581
	228		Colonial BancGroup, Inc.		5,595
	1,002		Comerica, Inc.		59,419
	1,194		Fifth Third Bancorp		47,641
	220		Huntington Bancshares, Inc.		5,122
	3,417		J.P. Morgan Chase & Co.		174,028
	1,964		KeyCorp		74,966
	1,170		National City Corp.		44,284
	1,246		SunTrust Banks, Inc.		103,543
	588		UnionBanCal Corp.		37,997
			TOTAL		564,176
			Commercial Services & Supplies--1.1%
	121	1	ChoicePoint, Inc.		4,657
	149		Dun & Bradstreet Corp.		12,665
	180		Knoll, Inc.		3,958
	277		Miller Herman, Inc.		10,415
	419		Pitney Bowes, Inc.		20,058
	861		Robert Half International, Inc.		35,043
	164	1	TeleTech Holdings, Inc.		4,420
			TOTAL		91,216
			Communications Equipment--0.1%
	70	1	F5 Networks, Inc.		5,001
			Computers & Peripherals--2.7%
	2,237	1	Apple, Inc.		191,778
	919	1	Network Appliance, Inc.		34,554
			TOTAL		226,332
			Construction Materials--0.4%
	61		Texas Industries, Inc.		4,479
	280		Vulcan Materials Co.		28,515
			TOTAL		32,994
Shares					Value
			COMMON STOCKS--continued
			Consumer Finance--0.5%
	773	1	Americredit Corp.	$	20,979
	396	1	First Marblehead Corp.		21,542
			TOTAL		42,521
			Containers & Packaging--0.3%
	134		Ball Corp.		6,207
	442		Temple-Inland, Inc.		22,073
			TOTAL		28,280
			Diversified Consumer Services--0.1%
	52	1	ITT Educational Services, Inc.		4,035
	132	1	Weight Watchers International, Inc.		7,132
			TOTAL		11,167
			Diversified Financial Services--3.4%
	85	1	CBOT Holdings, Inc.		14,348
	1,531		CIT Group, Inc.		90,268
	54		Chicago Mercantile Exchange Holdings, Inc.		30,418
	508		Goldman Sachs Group, Inc.		107,777
	655		Moody's Corp.		46,872
			TOTAL		289,683
			Diversified Telecommunication Services--0.7%
	1,056		Embarq Corp.		58,619
			Electric Utilities--1.6%
	621	1	Allegheny Energy, Inc.		28,889
	1,289		Edison International		57,979
	267		Entergy Corp.		24,791
	313		Portland General Electric Co.		8,182
	1,172	1	Reliant Resources, Inc.		17,439
			TOTAL		137,280
			Electrical Equipment--0.3%
	91		AMETEK, Inc.		3,154
	293		Honeywell International, Inc.		13,387
	113		Roper Industries, Inc.		5,867
			TOTAL		22,408
Shares		��			Value
			COMMON STOCKS--continued
			Electronic Equipment & Instruments--0.8%
	218		Amphenol Corp., Class A	$	14,763
	888	1	Avnet, Inc.		27,572
	128	1	Coherent, Inc.		3,936
	150		Daktronics, Inc.		5,185
	407	1	Ingram Micro, Inc., Class A		7,941
	201		National Instruments Corp.		5,791
			TOTAL		65,188
			Energy Equipment & Services--1.5%
	38	1	FMC Technologies, Inc.		2,353
	244	1	Oceaneering International, Inc.		9,631
	775		Schlumberger Ltd.		49,205
	890	1	Transocean Sedco Forex, Inc.		68,859
			TOTAL		130,048
			Food & Staples Retailing--0.2%
	284		Costco Wholesale Corp.		15,955
	83		Longs Drug Stores Corp.		3,569
			TOTAL		19,524
			Food Products--1.1%
	116	1	Dean Foods Co.		5,133
	149		Fresh Del Monte Produce, Inc.		2,295
	833		General Mills, Inc.		47,681
	134		H.J. Heinz Co.		6,314
	380		Kellogg Co.		18,723
	423		Kraft Foods, Inc., Class A		14,771
			TOTAL		94,917
			Gas Utilities--0.1%
	196		AGL Resources, Inc.		7,703
Shares					Value
			COMMON STOCKS--continued
			Health Care Equipment & Supplies--2.3%
	74		Analogic Corp.	$	4,345
	157		Dentsply International, Inc.		4,842
	214	1	Immucor, Inc.		6,750
	2,676		Medtronic, Inc.		143,032
	85		Mentor Corp.		4,334
	796	1	St. Jude Medical, Inc.		34,037
			TOTAL		197,340
			Health Care Providers & Services--3.0%
	1,018		Cardinal Health, Inc.		72,706
	378	1	Laboratory Corp. of America Holdings		27,760
	109	1	Lincare Holdings, Inc.		4,289
	741	1	Medco Health Solutions, Inc.		43,875
	171	1	Psychiatric Solutions, Inc.		6,659
	1,223	1	Wellpoint, Inc.		95,859
			TOTAL		251,148
			Health Care Technology--0.1%
	283		IMS Health, Inc.		8,167
			Hotels, Restaurants & Leisure--1.4%
	698		International Game Technology		30,335
	408	1	Las Vegas Sand Corp.		42,461
	71	1	Life Time Fitness, Inc.		3,848
	204	1	Starbucks Corp.		7,128
	537		Yum! Brands, Inc.		32,225
			TOTAL		115,997
			Household Durables--0.4%
	146		Centex Corp.		7,839
	124		KB HOME		6,723
	225		M.D.C. Holdings, Inc.		13,111
	266		Pulte Homes, Inc.		9,134
			TOTAL		36,807
Principal Amount					Value
			COMMON STOCKS--continued
			Household Products--5.9%
	243		Colgate-Palmolive Co.	$	16,597
	1,155		Kimberly-Clark Corp.		80,157
	6,150		Procter & Gamble Co.		398,950
			TOTAL		495,704
			IT Services--1.4%
	169	1	Alliance Data Systems Corp.		11,480
	224		Automatic Data Processing, Inc.		10,689
	154	1	Ceridian Corp.		4,615
	101	1	Checkfree Corp.		4,184
	446	1	Cognizant Technology Solutions Corp.		38,039
	608	1	Computer Sciences Corp.		31,896
	317	1	Fiserv, Inc.		16,665
			TOTAL		117,568
			Independent Power Producers & Energy Traders--0.1%
	384	1	AES Corp.		7,983
			Industrial Conglomerates--4.4%
	1,562		3M Co.		116,057
	6,554		General Electric Co.		236,272
	375	1	McDermott International, Inc.		19,365
			TOTAL		371,694
			Insurance--19.5%
	3,830		Allstate Corp.		230,413
	787		Ambac Financial Group, Inc.		69,335
	474		American Financial Group, Inc.		16,742
	5,492		American International Group, Inc.		375,927
	723		Assurant, Inc.		40,184
	862		Berkley, W. R. Corp.		28,524
	214	1	CNA Financial Corp.		8,699
	1,453		Chubb Corp.		75,614
	264		Commerce Group, Inc.		7,968
	280		HCC Insurance Holdings, Inc.		8,744
	998		Hartford Financial Services Group, Inc.		94,720
Shares					Value
			COMMON STOCKS--continued
			Insurance--continued
	1,321		Loews Corp.	$	57,411
	789		MBIA Insurance Corp.		56,674
	3,752		MetLife, Inc.		233,074
	192		Nationwide Financial Services, Inc., Class A		10,493
	152		Ohio Casualty Corp.		4,490
	114	1	Philadelphia Consolidated Holding Corp.		5,137
	2,783		Progressive Corp., OH		64,538
	261		Reinsurance Group of America		15,177
	510		SAFECO Corp.		32,645
	3,684		The St. Paul Travelers Cos., Inc.		187,331
	193		Torchmark Corp.		12,543
	96		Unitrin, Inc.		4,916
	135		Zenith National Insurance Corp.		6,169
			TOTAL		1,647,468
			Internet & Catalog Retail--0.6%
	448	1	Amazon.com, Inc.		16,876
	234	1	Expedia, Inc.		5,019
	487	1	IAC Interactive Corp.		18,701
	159	1	Nutri/System, Inc.		7,004
			TOTAL		47,600
			Internet Software & Services--0.6%
	1,183	1	eBay, Inc.		38,317
	452	1	ValueClick, Inc.		11,535
	150	1	Verisign, Inc.		3,585
			TOTAL		53,437
			Life Sciences Tools & Services--0.1%
	171	1	Waters Corp.		9,694
			Machinery--1.1%
	733		Danaher Corp.		54,286
	286		Deere & Co.		28,680
	104		SPX Corp.		7,300
			TOTAL		90,266
Shares					Value
			COMMON STOCKS--continued
			Marine--0.1%
	77	1	American Commercial Lines, Inc.	$	5,424
			Media--4.7%
	3,121	1	Comcast Corp., Class A		138,323
	1,185	1	Discovery Holding Co., Class A		19,635
	211	1	Lamar Advertising Co.		13,985
	903		McGraw-Hill Cos., Inc.		60,573
	354		Omnicom Group, Inc.		37,241
	5,303		Time Warner, Inc.		115,977
	341	1	Viacom, Inc., Class B		13,868
			TOTAL		399,602
			Metals & Mining--1.0%
	247		Chaparral Steel Co.		12,666
	257		Cleveland Cliffs, Inc.		14,048
	800		Commercial Metals Corp.		21,688
	284		Phelps Dodge Corp.		35,102
			TOTAL		83,504
			Multi-Utilities--0.6%
	371		Energy East Corp.		8,911
	604		P G & E Corp.		28,195
	292		SCANA Corp.		11,890
			TOTAL		48,996
			Multiline Retail--1.3%
	550	1	Sears Holdings Corp.		97,157
	159		Target Corp.		9,756
			TOTAL		106,913
			Oil, Gas & Consumable Fuels--8.0%
	482		Anadarko Petroleum Corp.		21,087
	206	1	Bill Barrett Corp.		6,365
	3,166		Chevron Corp.		230,738
	1,275		Devon Energy Corp.		89,365
	187	1	General Maritime Corp.		6,824
Shares					Value
			COMMON STOCKS--continued
			Oil, Gas & Consumable Fuels--continued
	2,529		Marathon Oil Corp.	$	228,470
	396		OMI Corp.		8,736
	163		Pioneer Natural Resources, Inc.		6,683
	517		Tesoro Petroleum Corp.		42,596
	591		Valero Energy Corp.		32,079
			TOTAL		672,943
			Paper & Forest Products--0.4%
	833		MeadWestvaco Corp.		25,107
	135		Weyerhaeuser Co.		10,125
			TOTAL		35,232
			Personal Products--0.2%
	379		Avon Products, Inc.		13,034
	166		Estee Lauder Cos., Inc., Class A		7,885
			TOTAL		20,919
			Pharmaceuticals--0.5%
	356		Johnson & Johnson		23,781
	613		Schering Plough Corp.		15,325
			TOTAL		39,106
			Road & Rail--2.6%
	1,218		Burlington Northern Santa Fe Corp.		97,878
	140		Con-way, Inc.		6,964
	2,011		Norfolk Southern Corp.		99,846
	315		Ryder System, Inc.		17,180
			TOTAL		221,868
			Semiconductors & Semiconductor Equipment--0.2%
	248	1	Altera Corp.		4,972
	341	1	Cree, Inc.		5,245
	393	1	Spansion, Inc.		5,042
			TOTAL		15,259
Shares					Value
			COMMON STOCKS--continued
			Software--1.7%
	6,277	1	Oracle Corp.	$	107,713
	87		Quality Systems, Inc.		3,691
	1,256	1	Symantec Corp.		22,244
	219	1	THQ, Inc.		6,636
			TOTAL		140,284
			Specialty Retail--2.4%
	339	1	AutoNation, Inc.		7,611
	183	1	AutoZone, Inc.		22,990
	547	1	Bed Bath & Beyond, Inc.		23,078
	204	1	CarMax, Inc.		11,716
	138	1	Dick's Sporting Goods, Inc.		7,106
	382		Foot Locker, Inc.		8,572
	204	1	Guess ?, Inc.		14,710
	134	1	Gymboree Corp.		5,801
	114	1	Hibbett Sporting Goods, Inc.		3,661
	2,482		Home Depot, Inc.		101,117
			TOTAL		206,362
			Textiles, Apparel & Luxury Goods--1.2%
	2,115	1	Coach, Inc.		96,994
	176	1	Crocs, Inc.		8,860
			TOTAL		105,854
			Thrifts & Mortgage Finance--1.2%
	179		Downey Financial Corp.		12,806
	106	1	FirstFed Financial Corp.		7,309
	319		MGIC Investment Corp.		19,689
	487		PMI Group, Inc.		23,288
	593		Radian Group, Inc.		35,710
	141		Webster Financial Corp. Waterbury		7,025
			TOTAL		105,827
Shares or Principal Amount					Value
			COMMON STOCKS--continued
			Trading Companies & Distributors--0.0%
	100		GATX Corp.	$	4,560
			Wireless Telecommunication Services--0.1%
	73	1	U.S. Cellular Corp.		5,263
			TOTAL COMMON STOCKS (IDENTIFIED COST $7,547,438)		8,396,745
			REPURCHASE AGREEMENT--2.4%
$	203,000		Interest in $250,000,000 joint repurchase agreement 5.23%, dated 1/31/2007 under which Mizuho Securities USA, Inc. will repurchase U.S. Treasury securities with various maturities to 2/15/2016 for $250,036,319 on 2/1/2007. The market value of the underlying securities at the end of the period was $255,000,001. (AT COST)		203,000
			TOTAL INVESTMENTS--101.8% (IDENTIFIED COST $7,750,438) 2		8,599,745
			OTHER ASSETS AND LIABILITIES - NET--(1.8)%		(150,091	)
			TOTAL NET ASSETS--100%	$	8,449,654

1 Non-income producing security.

2 Also represents cost for federal tax purposes.

Note: The categories of investments are shown as a percentage of total net assets at January 31, 2007.

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

January 31, 2007 (unaudited)

Assets:
Total investments in securities, at value (identified cost $7,750,438)			$	8,599,745
Cash				1,834
Income receivable				3,971
Receivable for investments sold				37,141
Receivable for shares sold				145,188
TOTAL ASSETS				8,787,879
Liabilities:
Payable for investments purchased	$	225,900
Payable for shares redeemed		9,986
Payable for administrative personnel and services fee (Note 5)		32,971
Payable for transfer agent and dividend disbursing agent fees and expenses		31,487
Payable for Directors'/Trustees' fees		1,463
Payable for portfolio accounting fees		15,822
Payable for distribution services fee (Note 5)		11,496
Payable for shareholder services fee (Note 5)		1,732
Accrued expenses		7,368
TOTAL LIABILITIES				338,225
Net assets for 740,508 shares outstanding			$	8,449,654
Net Assets Consist of:
Paid-in capital			$	7,835,920
Net unrealized appreciation of investments				849,307
Accumulated net realized loss on investments				(230,011	)
Accumulated net investment income (loss)				(5,562	)
TOTAL NET ASSETS			$	8,449,654
Net Asset Value, Offering Price and Redemption Proceeds Per Share
Institutional Shares:
Net asset value per share ($3,067,736 ÷ 267,698 shares outstanding), no par value, unlimited shares authorized				$11.46
Offering price per share				$11.46
Redemption proceeds per share				$11.46
Class A Shares:
Net asset value per share ($3,139,034 ÷ 274,422 shares outstanding), no par value, unlimited shares authorized				$11.44
Offering price per share (100/94.50 of $11.44) 1				$12.11
Redemption proceeds per share				$11.44
Class C Shares:
Net asset value per share ($2,242,884 ÷ 198,388 shares outstanding), no par value, unlimited shares authorized				$11.31
Offering price per share (100/99.00 of $11.31) 1				$11.42
Redemption proceeds per share (99.00/100 of $11.31) 1				$11.20

1 See "What Do Shares Cost?" in the Prospectus.

See Notes which are an integral part of the Financial Statements

Statement of Operations

Six Months Ended January 31, 2007 (unaudited)

Investment Income:
Dividends							$	49,216
Interest								1,647
TOTAL INCOME								50,863
Expenses:
Investment adviser fee (Note 5)				$	30,609
Administrative personnel and services fee (Note 5)					115,946
Custodian fees					14,032
Transfer and dividend disbursing agent fees and expenses					43,993
Directors'/Trustees' fees					907
Auditing fees					7,310
Legal fees					4,537
Portfolio accounting fees					36,681
Distribution services fee--Class A Shares (Note 5)					2,111
Distribution services fee--Class C Shares (Note 5)					7,889
Shareholder services fee--Class A Shares (Note 5)					996
Shareholder services fee--Class C Shares (Note 5)					736
Share registration costs					24,076
Printing and postage					10,105
Insurance premiums					3,472
Miscellaneous					2,205
TOTAL EXPENSES					305,605
Waivers and Reimbursement:
Waiver of investment adviser fee (Note 5)	$	(30,609	)
Waiver of administrative personnel and services fee (Note 5)		(82,865	)
Waiver of transfer and dividend disbursing agent fees and expenses		(12,050	)
Waiver of portfolio accounting fees		(20,162	)
Reimbursement of other operating expenses (Note 5)		(103,494	)
TOTAL WAIVERS AND REIMBURSEMENT					(249,180	)
Net expenses								56,425
Net investment income (loss)								(5,562	)
Realized and Unrealized Gain on Investments:
Net realized gain on investments								67,983
Net change in unrealized appreciation of investments								554,660
Net realized and unrealized gain on investments								622,643
Change in net assets resulting from operations							$	617,081

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

		Six Months Ended (unaudited) 1/31/2007			Period Ended 7/31/2006	1
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	(5,562	)	$	(12,305	)
Net realized gain (loss) on investments		67,983			(297,994	)
Net change in unrealized appreciation/depreciation of investments		554,660			294,647
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		617,081			(15,652	)
Share Transactions:
Proceeds from sale of shares		3,963,543			4,955,728
Cost of shares redeemed		(904,588	)		(166,458	)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		3,058,955			4,789,270
Change in net assets		3,676,036			4,773,618
Net Assets:
Beginning of period		4,773,618			- --
End of period (including accumulated net investment income (loss) of $(5,562) and $0, respectively)	$	8,449,654		$	4,773,618

1 Reflects operations for the period from September 15, 2005 (date of initial public investment) to July 31, 2006.

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

January 31, 2007 (unaudited)

1. ORGANIZATION

Federated MDT Series (the "Trust") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Trust consists of eight portfolios. The financial statements included herein are only those of Federated MDT Tax Aware/All Cap Core Fund (the "Fund"), a diversified portfolio. The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held. The Fund offers three classes of shares: Institutional Shares, Class A Shares and Class C Shares. All shares of the Fund have equal rights with respect to voting, except on class-specific matters. The financial highlights of the Class A Shares and Class C Shares are presented separately. The primary investment objective of the Fund is long-term capital appreciation while seeking to minimize the impact of taxes.

MDT Tax Aware/All Cap Core Fund (the "Predecessor Fund") was reorganized into the Fund as of the close of business on December 8, 2006. Prior to the reorganization, the Fund had no investment operations. The Fund is the successor to the Predecessor Fund, which commenced operations on September 15, 2005.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with generally accepted accounting principles (GAAP) in the United States of America.

Investment Valuation

Market values of the Fund's portfolio securities are determined as follows:

• for equity securities, according to the last sale price or official closing price reported in the market in which they are primarily traded (either a national securities exchange or the over-the-counter market), if available;
• in the absence of recorded sales for equity securities, according to the mean between the last closing bid and asked prices;
• futures contracts and options are generally valued at market values established by the exchanges on which they are traded at the close of trading on such exchanges. Options traded in the over-the-counter market are generally valued according to the mean between the last bid and the last asked price for the option as provided by an investment dealer or other financial institution that deals in the option. The Board of Trustees (the "Trustees") may determine in good faith that another method of valuing such investments is necessary to appraise their fair market value;
• prices for total return swaps are furnished by an independent pricing service and are based upon a valuation model incorporating underlying reference indexes, interest rates, yield curves and other market data or factors. Prices for credit default swaps are furnished by an independent pricing service and are based upon a valuation model incorporating default probabilities, recovery rates and other market data or factors;
• for mortgage-backed securities, based on the aggregate investment value of the projected cash flows to be generated by the security, as furnished by an independent pricing service;
• for investments in other open-end regulated investment companies, based on net asset value (NAV);
• for other fixed-income securities, according to prices as furnished by an independent pricing service, except that fixed-income securities with remaining maturities of less than 60 days at the time of purchase are valued at amortized cost; and
• for all other securities at fair value as determined in accordance with procedures established by and under the general supervision of the Trustees.

Prices for fixed-income securities furnished by a pricing service may be based on a valuation matrix which incorporates both dealer-supplied valuations and electronic data processing techniques. Such prices (other than prices of mortgage-backed securities) are generally intended to be indicative of the bid prices currently offered to institutional investors for the securities, except that prices for corporate fixed-income and asset-backed securities traded in the United States are generally intended to be indicative of the mean between such bid prices and asked prices. The Trustees have approved the use of such pricing services. A number of pricing services are available, and the Fund may use various pricing services or discontinue the use of any pricing service.

Prices provided by independent pricing services may be determined without relying exclusively on quoted prices and may consider institutional trading in similar groups of securities, yield, quality, stability, risk, coupon rate, maturity, type of issue, trading characteristics, and other market data or factors. From time to time, when prices cannot be obtained from an independent pricing service, securities may be valued based on quotes from broker-dealers or other financial institutions that trade the securities.

Trading in foreign securities may be completed at times which vary from the closing of the New York Stock Exchange (NYSE). In computing its NAV, the Fund values foreign securities using the latest closing price on the exchange on which they are traded immediately prior to the closing of the NYSE. Certain foreign currency exchange rates are generally determined at the latest rate prior to the closing of the NYSE. Foreign securities quoted in foreign currencies are translated into U.S. dollars at current rates. Events that affect these values and exchange rates may occur between the times at which they are determined and the closing of the NYSE. If such events materially affect the value of portfolio securities, these securities may be valued at their fair value as determined in good faith by the Trustees, although the actual calculation may be done by others.

Repurchase Agreements

It is the policy of the Fund to require the other party to a repurchase agreement to transfer to the Fund's custodian or sub-custodian eligible securities or cash with a market value (after transaction costs) at least equal to the repurchase price to be paid under the repurchase agreement. The eligible securities are transferred to accounts with the custodian or sub-custodian in which the Fund holds a "securities entitlement" and exercises "control" as those terms are defined in the Uniform Commercial Code. The Fund has established procedures for monitoring the market value of the transferred securities and requiring the transfer of additional eligible securities if necessary to equal at least the repurchase price. These procedures also allow the other party to require securities to be transferred from the account to the extent that their market value exceeds the repurchase price or in exchange for other eligible securities of equivalent market value.

With respect to agreements to repurchase U.S. government securities and cash items, the Fund treats the repurchase agreement as an investment in the underlying securities and not as an obligation of the other party to the repurchase agreement. Other repurchase agreements are treated as obligations of the other party secured by the underlying securities. Nevertheless, the insolvency of the other party or other failure to repurchase the securities may delay the disposition of the underlying securities or cause the Fund to receive less than the full repurchase price. Under the terms of the repurchase agreement, any amounts received by the Fund in excess of the repurchase price and related transaction costs must be remitted to the other party.

The Fund may enter into repurchase agreements in which eligible securities are transferred into joint trading accounts maintained by the custodian or sub-custodian for investment companies and other clients advised by the Fund's adviser and its affiliates. The Fund will participate on a pro rata basis with the other investment companies and clients in its share of the securities transferred under such repurchase agreements and in its share of proceeds from any repurchase or other disposition of such securities.

Investment Income, Gains and Losses, Expenses and Distributions

Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Distributions of net investment income, if any, are declared and paid annually. Non-cash dividends included in dividend income, if any, are recorded at fair value. Investment income, realized and unrealized gains and losses, and certain fund-level expenses are allocated to each class based on relative average daily net assets, except that each class bears certain expenses unique to that class such as distribution and shareholder services fees. Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses.

Premium and Discount Amortization

All premiums and discounts on fixed-income securities are amortized/accreted for financial statement purposes.

Federal Taxes

It is the Fund's policy to comply with the Subchapter M provision of the Internal Revenue Code (the "Code") and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal income tax is necessary.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated.

Other

Investment transactions are accounted for on a trade date basis. Realized gains and losses from investment transactions are recorded on an identified cost basis.

3. SHARES OF BENEFICIAL INTEREST

The following tables summarize share activity:

	Six Months Ended 1/31/2007					Period Ended 7/31/2006 1
Institutional Shares:	Shares			Amount		Shares			Amount
Shares sold	205,384		$	2,241,242		134,445		$	1,376,578
Shares redeemed	(71,202	)		(761,970	)	(929	)		(9,501	)
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS	134,182		$	1,479,272		133,516		$	1,367,077
	Six Months Ended 1/31/2007					Period Ended 7/31/2006 1
Class A Shares:	Shares			Amount		Shares			Amount
Shares sold	86,855		$	954,589		212,325		$	2,205,037
Shares redeemed	(11,486	)		(124,519	)	(13,272	)		(135,352	)
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS	75,369		$	830,070		199,053		$	2,069,685
	Six Months Ended 1/31/2007					Period Ended 7/31/2006 1
Class C Shares:	Shares			Amount		Shares			Amount
Shares sold	70,673		$	767,712		131,487		$	1,374,113
Shares redeemed	(1,698	)		(18,099	)	(2,074	)		(21,605	)
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS	68,975		$	749,613		129,413		$	1,352,508
NET CHANGE RESULTING FROM SHARE TRANSACTIONS	278,526		$	3,058,955		461,982		$	4,789,270

1 Reflects operations for the period from September 15, 2005 (date of initial public investment) to July 31, 2006.

4. FEDERAL TAX INFORMATION

At January 31, 2007, the cost of investments for federal tax purposes was $7,750,438. The net unrealized appreciation of investments for federal tax purposes was $849,307. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $886,399 and net unrealized depreciation from investments for those securities having an excess of cost over value of $37,092.

At July 31, 2006, the Fund had a capital loss carryforward of $2,945 which will reduce the Fund's taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Code and thus will reduce the amount of distributions to shareholders which would otherwise be necessary to relieve the Fund of any liability for federal income tax. Pursuant to the Code, such capital loss carryforward will expire in 2014.

5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated MDTA LLC, the Fund's investment adviser (the "Adviser"), receives for its services an annual investment adviser fee equal to 0.90% of the Fund's average daily net assets. Prior to December 8, 2006, the Adviser received an annual investment adviser fee equal to 1.00% of the Fund's average daily net assets. Under the investment advisory contract, the Adviser is contractually obligated to waive, to the extent of its adviser fee, the amount, if any, by which the Fund's annual operating expenses exceed the following levels for each Class of the Fund:

Share Class	Percentage of Average Daily Net Assets of Class
Institutional Shares	1.80%
Class A Shares	2.05%
Class C Shares	2.80%

The Adviser has agreed to keep these contractual limitations in place through December 8, 2008.

In addition, after fulfilling its contractual commitment, the Adviser may voluntarily choose to waive and/or reimburse any additional portion of its fee. The Adviser can modify or terminate this voluntary waiver and/or reimbursement at any time at its sole discretion. For the six months ended January 31, 2007, the Adviser waived $30,609 of its fee and reimbursed $103,494 of other operating expenses.

For a period of three years after the fiscal year in which the Adviser waived or reimbursed Fund expenses, the Adviser may seek reimbursement from the Fund to the extent that the Fund's total annual operating expenses are less than the expense limitation. Due to the reorganization of the Fund, any expenses waived or reimbursed by the Adviser after December 8, 2006 may not be recovered by the Adviser.

Expenses waived/reimbursed by the Fund of $66,355 are subject to potential recovery by the expiration date of July 31, 2009.

Administrative Fee

Federated Administrative Services (FAS), under the Administrative Services Agreement (the "Agreement"), provides the Fund with administrative personnel and services. The fee paid to FAS is based on the average aggregate daily net assets of certain Federated funds as specified below:

Administrative Fee	Average Aggregate Daily Net Assets of the Federated Funds
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

The administrative fee received during any fiscal year shall be at least $150,000 per portfolio and $40,000 per each additional class of Shares. During the period from July 15, 2006 through December 8, 2006, the administrator contractually agreed to waive the portion of its fee which it would otherwise be entitled to receive from the Fund under the Agreement. The level of fees payable by the Fund to FAS for the period will not exceed the level of fees which the Fund would have paid during the period to its previous service provider under its previous administrative services contract. In addition, FAS may voluntarily choose to waive any portion of its fee. FAS can modify or terminate this voluntary waiver at any time at its sole discretion. For the six months ended January 31, 2007, the net fee paid to FAS was 1.043% of average aggregate daily net assets of the Fund.

Distribution Services Fee

The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will compensate Federated Securities Corp. (FSC), the principal distributor, from the daily net assets of the Fund's Class A Shares and Class C Shares to finance activities intended to result in the sale of these shares. The Plan provides that the Fund may incur distribution expenses according to the following schedule annually, to compensate FSC:

Share Class	Percentage of Average Daily Net Assets of Class
Class A Shares	0.25%
Class C Shares	0.75%

Prior to December 11, 2006, the Fund incurred distribution expenses according to the following schedule annually, to compensate FSC:

Share Class	Percentage of Average Daily Net Assets of Class
Class A Shares	0.25%
Class C Shares	1.00%

FSC may voluntarily choose to waive any portion of its fee. FSC can modify or terminate this voluntary waiver at any time at its sole discretion. When FSC receives fees, it may pay some or all of them to financial intermediaries whose customers purchase shares. For the six months ended January 31, 2007, FSC retained $6,796 of fees paid by the Fund.

Sales Charges

For the six months ended January 31, 2007, FSC, the principal distributor, retained $1,317 in sales charges from the sale of Class A Shares. FSC also retained $29 of contingent deferred sales charges relating to redemptions of Class C Shares. See "What Do Shares Cost?" in the Prospectus.

Shareholder Services Fee

Effective December 11, 2006, the Fund may pay fees (Service Fees) up to 0.25% of the average daily net assets of the Fund's Class A Shares and Class C Shares to financial intermediaries or to Federated Shareholder Services Company (FSSC) for providing services to shareholders and maintaining shareholder accounts. FSSC or these financial intermediaries may voluntarily choose to waive any portion of their fee. In addition, FSSC may voluntarily reimburse the Fund for shareholder services fees. This voluntary waiver and/or reimbursement can be modified or terminated at any time. For the six months ended January 31, 2007, FSSC did not receive any fees paid by the Fund.

General

Certain of the Officers and Trustees of the Trust are Officers and Directors or Trustees of the above companies.

6. INVESTMENT TRANSACTIONS

Purchases and sales of investments, excluding long-term U.S. government securities and short-term obligations, for the six months ended January 31, 2007, were as follows:

Purchases	$	7,500,637
Sales	$	4,430,746

7. LINE OF CREDIT

The Trust entered into a $150,000,000 unsecured, uncommitted revolving line of credit (LOC) agreement with PNC Bank. The LOC was made available for extraordinary or emergency purposes, primarily for financing redemption payments. Borrowings are charged interest at a rate of 0.65% over the federal funds rate. As of January 31, 2007, there were no outstanding loans. During the six months ended January 31, 2007, the Fund did not utilize the LOC.

8. LEGAL PROCEEDINGS

Beginning in October 2003, Federated Investors, Inc. and various subsidiaries thereof (including the advisers and distributor for various investment companies, collectively, "Federated"), along with various investment companies sponsored by Federated ("Funds") were named as defendants in several class action lawsuits now pending in the United States District Court for the District of Maryland. The lawsuits were purportedly filed on behalf of people who purchased, owned and/or redeemed shares of Federated-sponsored mutual funds during specified periods beginning November 1, 1998. The suits are generally similar in alleging that Federated engaged in illegal and improper trading practices including market timing and late trading in concert with certain institutional traders, which allegedly caused financial injury to the mutual fund shareholders. These lawsuits began to be filed shortly after Federated's first public announcement that it had received requests for information on shareholder trading activities in the Funds from the Securities and Exchange Commission ("SEC"), the Office of the New York State Attorney General ("NYAG"), and other authorities. In that regard, on November 28, 2005, Federated announced that it had reached final settlements with the SEC and the NYAG with respect to those matters. As Federated previously reported in 2004, it has already paid approximately $8.0 million to certain funds as determined by an independent consultant. As part of these settlements, Federated agreed to pay for the benefit of fund shareholders additional disgorgement and a civil money penalty in the aggregate amount of an additional $72 million. Federated and various Funds have also been named as defendants in several additional lawsuits, the majority of which are now pending in the United States District Court for the Western District of Pennsylvania, alleging, among other things, excessive advisory and Rule 12b-1 fees. The Board of the Funds has retained the law firm of Dickstein Shapiro LLP to represent the Funds in these lawsuits. Federated and the Funds, and their respective counsel, are reviewing the allegations and intend to defend this litigation. Additional lawsuits based upon similar allegations may be filed in the future. The potential impact of these lawsuits, all of which seek unquantified damages, attorneys' fees and expenses, and future potential similar suits is uncertain. Although we do not believe that these lawsuits will have a material adverse effect on the Funds, there can be no assurance that these suits, the ongoing adverse publicity and/or other developments resulting from the regulatory investigations will not result in increased Fund redemptions, reduced sales of Fund shares, or other adverse consequences for the Funds.

9. RECENT ACCOUNTING PRONOUNCEMENTS

In July 2006, the Financial Accounting Standards Board (FASB) released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" (FIN 48). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax benefits of positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax expense in the current year. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years of the Fund no later than January 31, 2008. At this time, management is evaluating the implications of FIN 48 and its impact in the financial statements has not yet been determined.

In addition, in September 2006, FASB released Statement on Financial Accounting Standards No. 157, "Fair Value Measurements" (FAS 157) which is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of FAS 157 will have on the Funds' financial statement disclosures.

Evaluation and Approval of Advisory Contract

FEDERATED MDT TAX AWARE/ALL CAP CORE FUND (THE "FUND")

The Fund's Board reviewed the Fund's investment advisory contract at meetings held in May and June 2006. The Board's decision to approve the contract reflects the exercise of its business judgment on whether to authorize the creation and offering of this new investment vehicle, as proposed by, and based on information provided by, the Federated organization, and based on Federated's recommendation to go forward with establishment of the Fund.

Federated proposed the creation of the Fund in connection with its acquisition of MDTA LLC (the "Acquisition"), the investment adviser to the MDT Tax Aware/All Cap Core Fund (the "Predecessor Fund"). As part of that transaction, Federated proposed that the Predecessor Fund be reorganized with and into the Fund in a tax-free reorganization (the "Proposed Reorganization"), which would provide shareholders of the Predecessor Fund the opportunity to become shareholders of a fund with substantially similar investment objectives and policies and the same portfolio manager(s) as the Predecessor Fund, but with sales, distribution and other shareholder services offered by the funds managed and distributed by affiliates of Federated.

Prior to the meeting, the Adviser had recommended that the Federated Funds appoint a Senior Officer, whose duties include specified responsibilities relating to the process by which advisory fees are to be charged to a Federated Fund. The Senior Officer appointed by the Funds has the authority to retain consultants, experts, or staff as may be reasonably necessary to assist in the performance of his duties, reports directly to the Board, and may be terminated only with the approval of a majority of the independent members of the Board. The Senior Officer prepared and furnished to the Board an independent written evaluation that covered topics discussed below, which the Board considered, along with other information, in deciding to approve the advisory contract.

The Board also considered the anticipated compensation and benefits to be received by the Adviser. This includes fees to be received for services provided to the Fund by other entities in the Federated organization and research services that may be received by the Adviser from brokers that execute fund trades, as well as advisory fees. The Board is also familiar with judicial decisions concerning allegedly excessive investment advisory fees which have indicated that the following factors may be relevant to an Adviser's fiduciary duty with respect to its receipt of compensation from a fund: the nature and quality of the services provided by the Adviser, including the performance of the Fund; the Adviser's cost of providing the services; the extent to which the Adviser may realize "economies of scale" as the Fund grows larger; any indirect benefits that may accrue to the Adviser and its affiliates as a result of the Adviser's relationship with the Fund; performance and expenses of comparable funds; and the extent to which the independent Board members are fully informed about all facts the Board deems relevant bearing on the Adviser's services and fees. The Board further considered management fees (including any components thereof) charged to institutional and other clients of the Adviser for like services and costs to the Adviser and its affiliates of supplying services pursuant to the management fee agreements, excluding any intra-corporate profit and profit margins of the Adviser and its affiliates from supplying such services. The Board was aware of these considerations and was guided by them in its review of the Fund's advisory contract to the extent they are appropriate and relevant, as discussed further below.

The Board considered and weighed these circumstances in light of its substantial accumulated experience in working with Federated on matters relating to other Federated Funds, and was assisted in its deliberations by the advice of independent legal counsel. The Board's consideration of the advisory contract included review of the Senior Officer's evaluation, accompanying data and additional reports covering such matters as: the Adviser's investment philosophy, revenue, profitability, personnel and processes; investment and operating strategies; the Fund's investment objectives; the Fund's expenses (including the advisory fee itself and the overall expense structure of the Fund, both in absolute terms and relative to similar and/or competing funds, with due regard for contractual or voluntary expense limitations); the nature, quality and extent of the advisory and other services to be provided to the Fund by the Adviser and its affiliates; the preferences and expectations of Fund shareholders and their relative sophistication; the continuing state of competition in the mutual fund industry and market practices; the range of comparable fees for similar funds in the mutual fund industry; the Fund's relationship to the Federated family of funds which include a comprehensive array of funds with different investment objectives, policies and strategies which are available for exchange without the incurrence of additional sales charges; compliance and audit reports concerning the Federated Funds and the Federated companies that service them (including communications from regulatory agencies), as well as Federated's responses to any issues raised therein; and relevant developments in the mutual fund industry and how the Federated Funds and/or Federated are responding to them. The Board's evaluation process is evolutionary. The criteria considered and the emphasis placed on relevant criteria change in recognition of changing circumstances in the mutual fund marketplace.

With respect to the Fund's expenses in particular, the Board has found the use of comparisons to other mutual funds with comparable investment programs to be particularly useful, given the high degree of competition in the mutual fund business. The Board focused on comparisons with other similar mutual funds more heavily than non-mutual fund products or services because, simply put, they are more relevant. For example, other mutual funds are the products most like the Fund, they are readily available to Fund shareholders as alternative investment vehicles, and they are the type of investment vehicle in fact chosen and maintained by the Fund's anticipated investors. The range of their fees and expenses therefore appears to be a generally reliable indication of what consumers have found to be reasonable in the precise marketplace in which the Fund will compete. In this regard, the Senior Officer also reviewed Federated's fees for providing advisory services to products outside the Federated family of funds (e.g., institutional and separate accounts). He concluded that mutual funds and institutional accounts are inherently different products. Those differences included, but are not limited to targeting different investors, being subject to different laws and regulations, different legal structure, distribution costs, average account size and portfolio management techniques made necessary by different cash flows. The Senior Officer did not consider these fee schedules to be significant in determining the appropriateness of mutual fund advisory contracts.

The Senior Officer reviewed reports compiled by Federated and directed the preparation of reports regarding the performance of, and fees charged by other mutual funds, noting his view that comparisons to fund peer groups is of significance in judging the reasonableness of proposed fees.

Because the Fund will employ the same portfolio managers and investment techniques, the Board reviewed the Predecessor Fund's performance compared to its benchmark as an indicator of how the Adviser will execute the Fund's investment program, which in turn assisted the Board in reaching a conclusion that the nature, extent, and quality of the Adviser's investment management services were such as to warrant approval of the advisory contract. The Board noted that the Predecessor Fund and/or accounts managed by MDTA LLC with substantially similar investment objectives and policies outperformed its relevant benchmark for the one and three year periods reviewed. The Board determined that reviewing performance on a gross basis was appropriate in this instance because the fee structure for separately managed accounts is not comparable for the Fund as discussed above.

The Senior Officer noted that the Fund's quantitative focus made it difficult to compare its fees and expenses to other peers, which varied widely in their complexity. He observed that the management of the Fund is among the more complex, relative to its peers and, consequently, that the advisory fee and projected net total expenses are at the high end compared to such peers. The Board reviewed the proposed fees and other expenses of the Fund with the Adviser and was satisfied that the proposed overall expense structure of the Fund appeared competitive. The Board will continue to monitor advisory fees and other expenses borne by the Fund. No changes were recommended to, and no objection was raised to the proposed advisory contract, and the Senior Officer noted that Federated proposed to provide appropriate administrative services to the Fund for the anticipated fees. The Board concluded that the nature, quality and scope of services to be provided to the Fund by the Adviser and its affiliates were satisfactory.

The Board also considered possible indirect benefits that may accrue to the Adviser and its affiliates as a result of the Acquisition. Other indirect benefits that may accrue to the Adviser and its affiliates as a result of the Adviser's relationship with the Fund are essentially impossible to apply before the Fund has experienced any meaningful operating history. Nevertheless, in connection with the Board's governance of other Federated funds, it should be noted that the Board regularly receives financial information about Federated, including reports on the compensation and benefits Federated derives from its relationships with the other Federated Funds. These reports cover not only the fees under the advisory contracts, but also fees received by Federated's subsidiaries for providing other services to the Federated funds under separate contracts (e.g., for serving as the Federated funds' administrator). The reports also discuss any indirect benefit Federated may derive from its receipt of research services from brokers who execute Federated fund trades, as well as waivers of fees and/or reimbursements of expenses. In order for a fund to be competitive in the marketplace, Federated and its affiliates frequently waive fees and/or reimburse expenses and have indicated to the Board their intention to do so in the future, where appropriate. It was noted in this regard that the Adviser has agreed to limit the expenses of each class of the Fund at specified amounts for a two-year period commencing on the date the Proposed Reorganization is consummated.

Federated furnished reports, requested by the Senior Officer, that made estimates of the allocation of expenses on a fund by fund basis, using allocation methodologies specified by the Senior Officer. The Senior Officer noted that, although they may apply consistent allocation processes, the inherent difficulties in allocating costs and the lack of consensus on how to allocate those costs causes such allocation reports to be of questionable value. The allocation reports were considered in the analysis by the Board but were determined to be of limited use.

The Board also reviewed profitability information for Federated and other publicly held fund management companies, provided by the Senior Officer, who noted the limited availability of such information, and concluded that Federated's profit margins did not appear to be excessive.

The Senior Officer's evaluation also discussed the notion of possible realization of "economies of scale" as a fund grows larger. The Board considered in this regard that the Adviser has made significant additional investments in the portfolio management and distribution efforts supporting all of the Federated Funds and that the benefits of any economies, should they exist, were likely to be enjoyed by the fund complex as a whole. Finally, the Board also noted the absence of any applicable regulatory or industry guidelines on this subject, which is compounded by the lack of any common industry practice or general pattern with respect to structuring fund advisory fees with "breakpoints" that serve to reduce the fee as the fund attains a certain size. The Senior Officer did not recommend institution of breakpoints in pricing Federated's fund advisory services at this time.

The Board based its decision to approve the advisory contract on the totality of the circumstances and relevant factors, and with a view to past and future long-term considerations. As noted, not all of the factors and considerations identified above were relevant to the Fund, nor does the Board consider any one of them to be determinative. With respect to the factors that are relevant, the Board's decision to approve the contract reflects its determination that, based upon the information requested and supplied, Federated's proposal to establish and manage the Fund, and its past performance and actions in providing services to other mutual funds, provide a satisfactory basis to support the business decision to approve the proposed arrangements.

Voting Proxies on Fund Portfolio Securities

A description of the policies and procedures that the Fund uses to determine how to vote proxies, if any, relating to securities held in the Fund's portfolio is available, without charge and upon request, by calling 1-800-341-7400. A report on "Form N-PX" of how the Fund voted any such proxies during the most recent 12-month period ended June 30 is available through Federated's website. Go to FederatedInvestors.com, select "Products," select the "Prospectuses and Regulatory Reports" link, then select the Fund to access the link to Form N-PX. This information is also available from the EDGAR database on the SEC's website at www.sec.gov.

Quarterly Portfolio Schedule

The Fund files with the SEC a complete schedule of its portfolio holdings, as of the close of the first and third quarters of its fiscal year, on "Form N-Q." These filings are available on the SEC's website at www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. (Call 1-800-SEC-0330 for information on the operation of the Public Reference Room.) You may also access this information from the "Products" section of Federated's website at FederatedInvestors.com by clicking on "Portfolio Holdings" and selecting the name of the Fund, or by selecting the name of the Fund and clicking on "Portfolio Holdings." You must register on the website the first time you wish to access this information.

Mutual funds are not bank deposits or obligations, are not guaranteed by any bank, and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other government agency. Investment in mutual funds involves investment risk, including the possible loss of principal.

This report is authorized for distribution to prospective investors only when preceded or accompanied by the Fund's prospectus, which contains facts concerning its objective and policies, management fees, expenses, and other information.

IMPORTANT NOTICE ABOUT FUND DOCUMENT DELIVERY

In an effort to reduce costs and avoid duplicate mailings, the Fund(s) intend to deliver a single copy of certain documents to each household in which more than one shareholder of the Fund(s) resides (so-called "householding"), as permitted by applicable rules. The Fund's "householding" program covers its/their Prospectus and Statement of Additional Information, and supplements to each, as well as Semi-Annual and Annual Shareholder Reports and any Proxies or information statements. Shareholders must give their written consent to participate in the "householding" program. The Fund is also permitted to treat a shareholder as having given consent ("implied consent") if (i) shareholders with the same last name, or believed to be members of the same family, reside at the same street address or receive mail at the same post office box, (ii) the Fund gives notice of its intent to "household" at least sixty (60) days before it begins "householding" and (iii) none of the shareholders in the household have notified the Fund(s) or their agent of the desire to "opt out" of "householding." Shareholders who have granted written consent, or have been deemed to have granted implied consent, can revoke that consent and opt out of "householding" at any time: shareholders who purchased shares through an intermediary should contact their representative; other shareholders may call the Fund at 1-800-341-7400.

Federated Securities Corp., Distributor

Cusip 31421R601

36405 (3/07)

Federated is a registered mark of Federated Investors, Inc. 2007 (c)Federated Investors, Inc.

ITEM 2.     CODE OF ETHICS

            Not Applicable

ITEM 3.     AUDIT COMMITTEE FINANCIAL EXPERT

            Not Applicable

ITEM 4.     PRINCIPAL ACCOUNTANT FEES AND SERVICES

            Not Applicable

ITEM 5.     AUDIT COMMITTEE OF LISTED REGISTRANTS

            Not Applicable

ITEM 6.     SCHEDULE OF INVESTMENTS

            Not Applicable

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

            Not Applicable

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 last fiscal
quarter that have materially affected, or are reasonably likely to materially
affect, the registrant's internal control over financial reporting.

ITEM 12.    EXHIBITS













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 MDT SERIES

BY      /S/ RICHARD A. NOVAK
        RICHARD A. NOVAK
        PRINCIPAL FINANCIAL OFFICER

DATE    March 16, 2007


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    March 16, 2007


BY      /S/ RICHARD A. NOVAK
        RICHARD A. NOVAK
        PRINCIPAL FINANCIAL OFFICER

DATE    March 16, 2007