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

4000 Ericsson Drive

 Warrendale, PA 15086-7561

(Address of Principal Executive Offices)

(412) 288-1900

(Registrant's Telephone Number)

John W. McGonigle, Esquire

Federated Investors Tower

1001 Liberty Avenue

Pittsburgh, Pennsylvania 15222-3779

(Name and Address of Agent for Service)

(Notices should be sent to the Agent for Service)

Date of Fiscal Year End:  7/31/09

Date of Reporting Period:  Six months ended 1/31/09

Item 1.                      Reports to Stockholders

Federated
World-Class Investment Manager

Federated MDT All Cap Core Fund

Established 2002

A Portfolio of Federated MDT Series

SEMI-ANNUAL SHAREHOLDER REPORT

January 31, 2009

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,
	1/31/2009			2008			2007	1		2006	2		2005			2004
Net Asset Value, Beginning of Period	$14.05			$16.74			$15.08			$15.26			$13.52			$11.75
Income From Investment Operations:
Net investment income (loss)	0.04	3		0.06			0.02	3		0.00	3,4		(0.00	) 3,4		0.01
Net realized and unrealized gain (loss) on investments	(5.53	)		(1.56	)		2.18			0.70			2.85			2.05
TOTAL FROM INVESTMENT OPERATIONS	(5.49	)		(1.50	)		2.20			0.70			2.85			2.06
Less Distributions:
Distributions from net investment income	(0.05	)		- --			- --			(0.00	) 4		(0.03	)		(0.02	)
Distributions from net realized gain on investments	- --			(1.19	)		(0.54	)		(0.88	)		(1.08	)		(0.27	)
TOTAL DISTRIBUTIONS	(0.05	)		(1.19	)		(0.54	)		(0.88	)		(1.11	)		(0.29	)
Net Asset Value, End of Period	$ 8.51			$14.05			$16.74			$15.08			$15.26			$13.52
Total Return 5	(39.09	)%		(9.98	)%		14.67	%		4.59	%		21.79	%		17.53	%
Ratios to Average Net Assets:
Net expenses	1.34	% 6		1.29	%		1.36	%		1.50	%		1.50	%		1.50	%
Net investment income (loss)	0.66	% 6		0.43	%		0.13	%		0.03	%		(0.02	)%		0.05	%
Expense waiver/reimbursement 7	0.07	% 6		0.00	% 8		0.00	% 8		0.05	%		0.04	%		0.15	%
Supplemental Data:
Net assets, end of period (000 omitted)	$96,443		$194,867			$201,888			$101,723			$30,336			$9,628
Portfolio turnover	147	%		199	%		225	%		212	%		204	%		96	%

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 Beginning with the year ended July 31, 2006, the Fund was audited by Ernst & Young LLP. The previous years were audited by another independent registered public accounting firm.

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.

8 Represents less than 0.01%.

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)		Year Ended July 31,				Period Ended
	1/31/2009		2008		2007	1	7/31/2006	2
Net Asset Value, Beginning of Period	$13.73		$16.51		$14.99		$15.25
Income From Investment Operations:
Net investment income (loss)	(0.01	) 3	(0.04	)	(0.11	) 3	(0.10	) 3
Net realized and unrealized gain (loss) on investments	(5.39	)	(1.55	)	2.17		0.72
TOTAL FROM INVESTMENT OPERATIONS	(5.40	)	(1.59	)	2.06		0.62
Less Distributions:
Distributions from net realized gain on investments	- --		(1.19	)	(0.54	)	(0.88	)
Net Asset Value, End of Period	$ 8.33		$13.73		$16.51		$14.99
Total Return 4	(39.33	)%	(10.69	)%	13.81	%	4.01	%
Ratios to Average Net Assets:
Net expenses	2.14	% 5	2.08	%	2.13	%	2.25	% 5
Net investment income (loss)	(0.14	)% 5	(0.36	)%	(0.64)	%	(0.72	)% 5
Expense waiver/reimbursement 6	0.09	% 5	0.00	% 7	0.00	% 7	0.05	% 5
Supplemental Data:
Net assets, end of period (000 omitted)	$52,149		$96,601		$104,957		$48,189
Portfolio turnover	147	%	199	%	225	%	212	% 8

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.

7 Represents less than 0.01%.

8 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)

	Six Months Ended (unaudited)		Year Ended		Period Ended
	1/31/2009		7/31/2008		7/31/2007	1
Net Asset Value, Beginning of Period	$14.10		$16.86		$16.82
Income From Investment Operations:
Net investment income (loss)	0.01	2	(0.00	) 3	(0.03)	2
Net realized and unrealized gain (loss) on investments	(5.54	)	(1.57	)	0.61
TOTAL FROM INVESTMENT OPERATIONS	(5.53	)	(1.57	)	0.58
Less Distributions:
Distributions from net investment income	(0.04	)	- --		- --
Distributions from net realized gain on investments	- --		(1.19	)	(0.54	)
TOTAL DISTRIBUTIONS	(0.04	)	(1.19	)	(0.54	)
Net Asset Value, End of Period	$ 8.53		$14.10		$16.86
Total Return 4	(39.25	)%	(10.34	)%	3.52	%
Ratios to Average Net Assets
Net expenses	1.80	% 5	1.75	%	1.80	% 5
Net investment income (loss)	0.18	% 5	(0.00	)% 6	0.30	% 5
Expense waiver/reimbursement 7	0.05	% 5	0.00	% 6	0.02	% 5
Supplemental Data:
Net assets, end of period (000 omitted)	$1,334		$1,393		$135
Portfolio turnover	147	%	199	%	225	% 8

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

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

3 Represents less than $0.01.

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 Represents less than 0.01%.

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

8 Portfolio turnover is calculated at the Fund level. Percentage indicated was calculated for the year ended July 31, 2007.

See Notes which are an integral part of the Financial Statements

Shareholder Expense Example (unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase or redemption payments; and (2) ongoing costs, including management fees and to the extent applicable, distribution (12b-1) fees and/or 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, 2008 to January 31, 2009.

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 8/1/2008	Ending Account Value 1/31/2009	Expenses Paid During Period 1
Actual:
Class A Shares	$1,000	$ 609.10	$ 5.43
Class C Shares	$1,000	$ 606.70	$ 8.67
Class K Shares	$1,000	$ 607.50	$ 7.29
Hypothetical (assuming a 5% return before expenses):
Class A Shares	$1,000	$1,018.45	$ 6.82
Class C Shares	$1,000	$1,014.42	$10.87
Class K Shares	$1,000	$1,016.13	$ 9.15

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	1.34%
Class C Shares	2.14%
Class K Shares	1.80%

Portfolio of Investments Summary Table (unaudited)

At January 31, 2009, the Fund's industry composition ¹ was as follows:

Industry	Percentage of Total Net Assets
Electric Utility	6.6	%
Biotechnology	5.8	%
Software Packaged/Custom	5.3	%
Property Liability Insurance	5.0	%
Ethical Drugs	4.8	%
Railroad	4.8	%
Agricultural Chemicals	4.7	%
Undesignated Consumer Cyclicals	4.7	%
Miscellaneous Food Products	4.2	%
Multi-Line Insurance	4.0	%
Services to Medical Professionals	3.9	%
Computers--Midrange	3.2	%
Home Building	3.0	%
AT&T Divestiture	2.4	%
Defense Aerospace	2.2	%
Department Stores	2.2	%
Integrated International Oil	2.2	%
Copper	1.9	%
Diversified Leisure	1.9	%
Life Insurance	1.7	%
Money Center Bank	1.4	%
Regional Bank	1.3	%
Airline--Regional	1.2	%
Agricultural Machinery	1.1	%
Medical Technology	1.0	%
Other 2	18.1	%
Cash Equivalents 3	1.6	%
Other Assets and Liabilities--Net 4	(0.2	)%
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, 2009 (unaudited)

Shares					Value
			COMMON STOCKS--98.6%
			Advertising--0.0%
	3,100		Omnicom Group, Inc.	$	80,259
			Agricultural Chemicals--4.7%
	120,100		Monsanto Co.		9,134,806
	3,200		Mosaic Co./The		114,144
			TOTAL		9,248,950
			Agricultural Machinery--1.1%
	60,400		Deere & Co.		2,098,296
			Airline - Regional--1.2%
	38,700	1	Alaska Air Group, Inc.		1,020,132
	7,300		SkyWest, Inc.		114,245
	177,500		Southwest Airlines Co.		1,247,825
			TOTAL		2,382,202
			AT&T Divestiture--2.4%
	192,600		AT&T, Inc.		4,741,812
			Auto Original Equipment Manufacturers--0.5%
	17,000	1	Fuel Systems Solutions, Inc.		444,380
	28,500		Johnson Controls, Inc.		356,535
	12,900		Superior Industries International, Inc.		132,483
			TOTAL		933,398
			Auto Rentals--0.1%
	5,000	1	AMERCO		153,750
			Biotechnology--5.8%
	12,500	1	Affymetrix, Inc.		39,750
	18,700	1	Cephalon, Inc.		1,443,266
	1,600	1	Charles River Laboratories International, Inc.		39,056
	192,200	1	Gilead Sciences, Inc.		9,757,994
	4,300	1	Hospira, Inc.		107,070
	300	1	Myriad Genetics, Inc.		22,371
	15,100	1	Questcor Pharmaceuticals, Inc.		97,395
			TOTAL		11,506,902
Shares					Value
			COMMON STOCKS--continued
			Book Publishing--0.0%
	800		Scholastic Corp.	$	8,720
			Broadcasting--0.5%
	26,300	1	American Tower Systems Corp.		797,942
	23,200		News Corp., Inc.		148,248
			TOTAL		946,190
			Building Materials--0.3%
	4,100		Ameron, Inc.		204,385
	26,600	1	Owens Corning, Inc.		354,844
			TOTAL		559,229
			Cable TV--0.7%
	29,800	1	Discovery Communications, Inc.		432,100
	55,100		Time Warner, Inc.		514,083
	35,400	1	Viacom, Inc., Class B		522,150
			TOTAL		1,468,333
			Cement--0.2%
	12,600		Texas Industries, Inc.		286,146
			Clothing Stores--0.3%
	14,600	1	Children's Place Retail Stores, Inc.		274,626
	13,600	1	Jos A. Bank Clothiers, Inc.		373,456
			TOTAL		648,082
			Commodity Chemicals--0.3%
	2,600		Compass Minerals International, Inc.		156,442
	4,900		Eastman Chemical Co.		127,155
	19,600		Westlake Chemical Corp.		267,932
			TOTAL		551,529
			Computer Peripherals--0.5%
	10,800		Imation Corp.		105,192
	33,900	1	Sandisk Corp.		387,477
	17,900	1	Synaptics, Inc.		421,903
			TOTAL		914,572
			Computer Stores--0.1%
	14,100	1	Tech Data Corp.		255,351
Shares					Value
			COMMON STOCKS--continued
			Computers - Low End--0.3%
	63,500	1	Dell, Inc.	$	603,250
			Computers - Midrange--3.2%
	183,700		Hewlett-Packard Co.		6,383,575
			Construction Machinery--0.6%
	34,100		Caterpillar, Inc.		1,051,985
	6,700		Joy Global, Inc.		139,561
			TOTAL		1,191,546
			Contracting--0.1%
	2,200		Harsco Corp.		52,184
	1,700	1	IHS, Inc., Class A		74,460
			TOTAL		126,644
			Copper--1.9%
	151,800		Freeport-McMoRan Copper & Gold, Inc.		3,816,252
			Crude Oil & Gas Production--0.3%
	5,600	1	Swift Energy Co.		85,792
	23,300		W&T Offshore, Inc.		292,881
	8,200	1	Whiting Petroleum Corp.		237,800
			TOTAL		616,473
			Defense Aerospace--2.2%
	95,200		Boeing Co.		4,027,912
	4,200		General Dynamics Corp.		238,266
			TOTAL		4,266,178
			Defense Electronics--0.2%
	14,000	1	FLIR Systems, Inc.		349,580
			Department Stores--2.2%
	32,500		Dillards, Inc., Class A		141,375
	72,800		Penney (J.C.) Co., Inc.		1,219,400
	42,800	1	Saks, Inc.		107,856
	70,700	1	Sears Holdings Corp.		2,893,044
			TOTAL		4,361,675
			Discount Department Stores--0.1%
	21,100	1	99 Cents Only Stores		176,818
Shares					Value
			COMMON STOCKS--continued
			Diversified Leisure--1.9%
	183,600		Carnival Corp.	$	3,339,684
	25,500	1	Gaylord Entertainment Co.		270,300
	15,000	1	Pinnacle Entertainment, Inc.		101,700
			TOTAL		3,711,684
			Electronic & Electrical Original Equipment Manufacturers--0.1%
	13,100		Molex, Inc.		175,147
			Electrical Test/Measuring Equipment--0.0%
	4,700	1	Multi-Fineline Electronix, Inc.		87,091
			Electric Utility--6.6%
	43,900		American Electric Power Co., Inc.		1,376,265
	66,300		CMS Energy Corp.		779,025
	189,500		Edison International		6,172,015
	13,000		Idacorp, Inc.		378,430
	3,700		OGE Energy Corp.		91,316
	85,400		Sempra Energy		3,743,936
	23,500		TECO Energy, Inc.		282,235
	10,400		UniSource Energy Corp.		293,696
			TOTAL		13,116,918
			Electronics Stores--0.0%
	6,300		RadioShack Corp.		72,198
			Ethical Drugs--4.8%
	42,000		Eli Lilly & Co.		1,546,440
	57,500	1	Forest Laboratories, Inc., Class A		1,439,800
	193,300		Merck & Co., Inc.		5,518,715
	800	1	Noven Pharmaceuticals, Inc.		7,944
	68,500		Pfizer, Inc.		998,730
			TOTAL		9,511,629
			Food Wholesaling--0.1%
	7,100		SUPERVALU, Inc.		124,534
			Furniture--0.0%
	10,400		Furniture Brands International, Inc.		21,320
Shares					Value
			COMMON STOCKS--continued
			Gas Distributor--0.8%
	43,900		Energen Corp.	$	1,282,319
	4,900		New Jersey Resources Corp.		196,441
	14,000	1	Southern Union Co.		180,460
			TOTAL		1,659,220
			Generic Drugs--0.0%
	1,900	1	Warner Chilcott Ltd., Class A		26,125
			Home Building--3.0%
	51,500		Centex Corp.		438,265
	152,400		D.R. Horton, Inc.		908,304
	69,000		Lennar Corp., Class A		530,610
	700	1	M/I Schottenstein Homes, Inc.		6,188
	164,000		Pulte Homes, Inc.		1,664,600
	31,000		Ryland Group, Inc.		483,600
	111,400	1	Toll Brothers, Inc.		1,896,028
			TOTAL		5,927,595
			Home Health Care--0.7%
	17,900	1	Amedisys, Inc.		738,017
	14,800	1	Amerigroup Corp.		413,956
	10,100	1	LHC Group, Inc.		268,761
			TOTAL		1,420,734
			Home Products--0.1%
	2,500	1	Energizer Holdings, Inc.		119,075
	4,200		Tupperware Brands Corp.		86,352
			TOTAL		205,427
			Hospitals--0.1%
	6,500		Universal Health Services, Inc., Class B		246,025
			Household Appliances--0.1%
	5,500		Whirlpool Corp.		183,865
			Industrial Machinery--0.1%
	5,000		Flowserve Corp.		266,550
			Integrated International Oil--2.2%
	61,800		Chevron Corp.		4,358,136
Shares					Value
			COMMON STOCKS--continued
			Internet Services--0.5%
	14,500	1	NetFlix, Inc.	$	524,030
	45,900	1	eBay, Inc.		551,718
			TOTAL		1,075,748
			Jewelry Stores--0.0%
	4,300		Movado Group, Inc.		33,024
			Life Insurance--1.7%
	10,800		Aflac, Inc.		250,668
	15,400		American Equity Investment Life Holding Co.		103,026
	10,600		Delphi Financial Group, Inc., Class A		160,802
	51,800		Old Republic International Corp.		534,576
	77,400		Torchmark Corp.		2,322,000
			TOTAL		3,371,072
			Long-Term Care Centers--0.0%
	5,600	1	Kindred Healthcare, Inc.		75,992
			Lumber Products--0.1%
	25,100	1	Louisiana-Pacific Corp.		52,208
	6,000		Weyerhaeuser Co.		164,040
			TOTAL		216,248
			Medical Supplies--0.3%
	1,000	1	Haemonetics Corp.		59,150
	3,200	1	Kinetic Concepts, Inc.		77,120
	6,800	1	Merit Medical Systems, Inc.		104,652
	12,400	1	PetMed Express, Inc.		179,056
	10,200	1	Quidel Corp.		125,460
			TOTAL		545,438
			Medical Technology--1.0%
	5,700	1	Cantel Medical Corp.		85,443
	9,900	1	Cyberonics, Inc.		152,361
	1,300	1	Edwards Lifesciences Corp.		74,737
	2,800	1	Gen-Probe, Inc.		126,056
	7,000	1	Greatbatch Technologies, Inc.		163,100
	7,900	1	ResMed, Inc.		315,210
Shares					Value
			COMMON STOCKS--continued
			Medical Technology--continued
	16,400	1	Thoratec Laboratories Corp.	$	475,108
	14,700	1	Zimmer Holdings, Inc.		535,080
			TOTAL		1,927,095
			Metal Fabrication--0.0%
	2,300	1	RTI International Metals		30,613
	1,300		Timken Co.		19,357
			TOTAL		49,970
			Miscellaneous Components--0.4%
	17,500		AVX Corp.		159,600
	13,000	1	Cree, Inc.		259,090
	25,900	1	International Rectifier Corp.		352,758
			TOTAL		771,448
			Miscellaneous Food Products--4.2%
	275,600		Archer-Daniels-Midland Co.		7,545,928
	6,700		Corn Products International, Inc.		155,105
	26,100	1	Fresh Del Monte Produce, Inc.		629,010
			TOTAL		8,330,043
			Miscellaneous Metals--0.1%
	23,400	1	USEC, Inc.		119,106
			Money Center Bank--1.4%
	74,800		Bank of New York Mellon Corp.		1,925,352
	51,900		U.S. Bancorp		770,196
			TOTAL		2,695,548
			Mortgage and Title--0.1%
	24,000		PMI Group, Inc.		33,360
	18,600		Radian Group, Inc.		59,892
	6,700		Stewart Information Services Corp.		99,428
			TOTAL		192,680
			Motion Pictures--0.3%
	29,100		Walt Disney Co.		601,788
Shares					Value
			COMMON STOCKS--continued
			Multi-Industry Capital Goods--0.5%
	17,700		General Electric Co.	$	214,701
	49,800		KBR, Inc.		705,168
	14,600		Textron, Inc.		131,838
			TOTAL		1,051,707
			Multi-Line Insurance--4.0%
	134,550		Allstate Corp.		2,915,699
	2,500	1	Amerisafe, Inc.		46,825
	6,400		FBL Financial Group, Inc., Class A		65,984
	22,600		Hanover Insurance Group, Inc.		913,492
	284,900		UNUMProvident Corp.		4,034,184
			TOTAL		7,976,184
			Office Equipment--0.2%
	13,200		Pitney Bowes, Inc.		293,832
			Offshore Driller--0.4%
	13,900	1	Transocean Ltd.		759,218
			Oil Refiner--0.8%
	16,800		Sunoco, Inc.		778,176
	28,600		Western Refining, Inc.		333,476
	11,100		World Fuel Services Corp.		374,847
			TOTAL		1,486,499
			Oil Service, Explore & Drill--0.1%
	19,600		Patterson-UTI Energy, Inc.		187,376
			Oil Well Supply--0.1%
	4,400		Baker Hughes, Inc.		146,608
	5,600	1	Dril-Quip, Inc.		137,200
			TOTAL		283,808
			Other Communications Equipment--0.1%
	42,500	1	Tellabs, Inc.		175,525
			Packaged Foods--0.1%
	7,100		Hershey Foods Corp.		264,688
			Paper Products--0.4%
	58,700		MeadWestvaco Corp.		683,268
	2,200		Rock-Tenn Co.		68,574
			TOTAL		751,842
Shares					Value
			COMMON STOCKS--continued
			Personal Loans--0.5%
	46,100		Capital One Financial Corp.	$	730,224
	21,000	1	Ezcorp, Inc., Class A		284,970
			TOTAL		1,015,194
			Personnel Agency--0.0%
	5,000		Kelly Services, Inc., Class A		45,300
			Pollution Control--0.2%
	6,800	1	Stericycle, Inc.		332,656
			Printing--0.0%
	6,700		Donnelley (R.R.) & Sons Co.		65,392
			Property Liability Insurance--5.0%
	14,400		Berkley, W.R. Corp.		381,312
	41,000		Chubb Corp.		1,745,780
	6,300		HCC Insurance Holdings, Inc.		147,483
	195,900		The Travelers Cos., Inc.		7,569,576
			TOTAL		9,844,151
			Railroad--4.8%
	91,800		CSX Corp.		2,658,528
	21,400		Norfolk Southern Corp.		820,904
	138,400		Union Pacific Corp.		6,060,536
			TOTAL		9,539,968
			Recreational Goods--0.3%
	8,200		Callaway Golf Co.		62,402
	20,400	1	WMS Industries, Inc.		453,288
			TOTAL		515,690
			Recreational Vehicles--0.0%
	32,900		Brunswick Corp.		91,462
			Regional Bank--1.3%
	37,300		BB&T Corp.		738,167
	7,400		Central Pacific Financial Corp.		49,802
	16,400		East West Bancorp, Inc.		155,636
	52,700		Marshall & Ilsley Corp.		300,917
	6,500		PNC Financial Services Group		211,380
	46,000		Popular, Inc.		126,040
Shares					Value
			COMMON STOCKS--continued
			Regional Bank--continued
	9,200		South Financial Group, Inc.	$	17,296
	71,000		SunTrust Banks, Inc.		870,460
	6,000		Whitney Holding Corp.		77,940
	7,400		Wintrust Financial Corp.		98,938
			TOTAL		2,646,576
			Restaurant--0.1%
	1,000	1	Green Mountain Coffee, Inc.		38,260
	2,900	1	Panera Bread Co.		136,242
			TOTAL		174,502
			Roofing & Wallboard--0.1%
	43,300	1	USG Corp.		281,883
			Rubber--0.0%
	18,100		Cooper Tire & Rubber Co.		84,527
			Savings & Loan--0.3%
	19,800		Astoria Financial Corp.		179,784
	35,000		Hudson City Bancorp, Inc.		406,000
			TOTAL		585,784
			Securities Brokerage--0.4%
	8,900	1	Interactive Brokers Group, Inc., Class A		135,903
	5,400	1	Knight Capital Group, Inc., Class A		97,362
	11,400	1	Labranche & Co., Inc.		78,204
	28,800		Raymond James Financial, Inc.		533,088
			TOTAL		844,557
			Semiconductor Distribution--0.9%
	57,600	1	Arrow Electronics, Inc.		1,098,432
	15,500	1	Avnet, Inc.		307,210
	14,500	1	FormFactor, Inc.		225,620
	5,800	1	Tyler Technologies, Inc.		73,022
			TOTAL		1,704,284
			Semiconductor Manufacturing--0.4%
	8,700	1	ATMI, Inc.		117,537
	146,600	1	Micron Technology, Inc.		545,352
	6,300	1	Plexus Corp.		91,098
			TOTAL		753,987
Shares					Value
			COMMON STOCKS--continued
			Semiconductor Manufacturing Equipment--0.3%
	48,500	1	Novellus Systems, Inc.	$	668,815
			Services to Medical Professionals--3.9%
	3,000	1	Coventry Health Care, Inc.		45,390
	10,500	1	Genoptix, Inc.		355,950
	61,300	1	Humana, Inc.		2,325,109
	5,900	1	Medco Health Solutions, Inc.		265,087
	7,600		Omnicare, Inc.		212,496
	88,300		UnitedHealth Group, Inc.		2,501,539
	49,100	1	Wellpoint, Inc.		2,035,195
			TOTAL		7,740,766
			Shoes--0.1%
	6,600	1	Genesco, Inc.		101,640
			Soft Drinks--0.1%
	5,900		The Pepsi Bottling Group, Inc.		113,811
			Software Packaged/Custom--5.3%
	105,000	1	Computer Sciences Corp.		3,868,200
	16,000	1	DST Systems, Inc.		508,320
	74,200	1	F5 Networks, Inc.		1,645,014
	246,000		Microsoft Corp.		4,206,600
	10,700	1	Solera Holdings, Inc.		257,763
			TOTAL		10,485,897
			Specialty Chemicals--0.5%
	8,700		Albemarle Corp.		193,575
	7,700		Cabot Corp.		102,872
	4,100		Chemed Corp.		164,533
	4,300		Cytec Industries, Inc.		87,892
	3,900		Lubrizol Corp.		133,068
	15,600	1	OM Group, Inc.		302,328
			TOTAL		984,268
			Specialty Retailing--0.2%
	11,000		Pep Boys-Manny Moe & Jack		31,790
	38,100		Williams-Sonoma, Inc.		301,752
	9,800	1	Zale Corp.		12,152
			TOTAL		345,694
Shares					Value
			COMMON STOCKS--continued
			Stainless Steel Producer--0.5%
	44,700		Allegheny Technologies, Inc.	$	987,423
			Technology Services--0.1%
	7,700	1	Stanley, Inc.		233,002
			Telecommunication Equipment & Services--0.2%
	84,100		Motorola, Inc.		372,563
			Tools and Hardware--0.1%
	4,300		Snap-On, Inc.		129,774
			Toys & Games--0.2%
	18,200	1	JAKKS Pacific, Inc.		333,788
			Truck Manufacturing--0.2%
	16,200		Cummins, Inc.		388,476
			Trucking--0.5%
	1,500		Arkansas Best Corp.		35,085
	29,900		Ryder System, Inc.		1,010,022
			TOTAL		1,045,107
			Undesignated Consumer Cyclicals--4.7%
	51,600	1	Alliance Data Systems Corp.		2,146,044
	6,800	1	American Public Education, Inc.		266,288
	3,200	1	CoStar Group, Inc.		94,784
	58,200	1	Corinthian Colleges, Inc.		1,087,176
	6,100		DeVRY, Inc.		326,838
	39,200	1	ITT Educational Services, Inc.		4,802,392
	11,600		Speedway Motorsports, Inc.		167,504
	1,900		Strayer Education, Inc.		411,217
			TOTAL		9,302,243
			Undesignated Consumer Staples--0.1%
	4,400	1	USANA, Inc.		102,124
			Water Utility--0.1%
	10,100		Aqua America, Inc.		209,474
			TOTAL COMMON STOCKS (IDENTIFIED COST $232,622,472)		195,096,567
Shares					Value
			MUTUAL FUND--1.6%
	3,176,994	2,3	Prime Value Obligations Fund, Institutional Shares, 1.75% (AT NET ASSET VALUE)	$	3,176,994
			TOTAL INVESTMENTS--100.2% (IDENTIFIED COST $235,799,466) 4		198,273,561
			OTHER ASSETS AND LIABILITIES - NET--(0.2)% 5		(427,609	)
			TOTAL NET ASSETS--100%	$	197,845,952

1 Non-income-producing security.

2 Affiliated company.

3 7-Day net yield.

4 Also represents cost for federal tax purposes.

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

Note: The categories of investments are shown as a percentage of total net assets at January 31, 2009.

Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below:

Level 1--quoted prices in active markets for identical securities

Level 2--other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

Level 3--significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used, as of January 31, 2009, in valuing the Fund's assets carried at fair value:

Valuation Inputs	Investments in Securities
Level 1--Quoted Prices and Investments in Mutual Funds	$198,273,561
Level 2--Other Significant Observable Inputs	- --
Level 3--Significant Unobservable Inputs	- --
TOTAL	$198,273,561

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

January 31, 2009 (unaudited)

Assets:
Total investments in securities, at value including $3,176,994 of investments in an affiliated issuer (Note 5) (identified cost $235,799,466)			$	198,273,561
Cash				13
Income receivable				132,609
Receivable for investments sold				10,174,925
Receivable for shares sold				397,936
TOTAL ASSETS				208,979,044
Liabilities:
Payable for investments purchased	$	10,318,903
Payable for shares redeemed		560,145
Payable for Directors'/Trustees' fees		133
Payable for distribution services fee (Note 5)		33,408
Payable for shareholder services fee (Note 5)		85,674
Accrued expenses		134,829
TOTAL LIABILITIES				11,133,092
Net assets for 23,338,173 shares outstanding			$	197,845,952
Net Assets Consist of:
Paid-in capital			$	381,283,452
Net unrealized depreciation of investments				(37,525,905	)
Accumulated net realized loss on investments				(146,645,848	)
Undistributed net investment income				734,253
TOTAL NET ASSETS			$	197,845,952

Statement of Assets and Liabilities - continued

Net Asset Value, Offering Price and Redemption Proceeds Per Share
Institutional Shares:
Net asset value per share ($47,920,086 ÷ 5,580,172 shares outstanding), no par value, unlimited shares authorized	$8.59
Offering price per share	$8.59
Redemption proceeds per share	$8.59
Class A Shares:
Net asset value per share ($96,443,089 ÷ 11,338,024 shares outstanding), no par value, unlimited shares authorized	$8.51
Offering price per share (100/94.50 of $8.51)	$9.01
Redemption proceeds per share	$8.51
Class C Shares:
Net asset value per share ($52,148,852 ÷ 6,263,567 shares outstanding), no par value, unlimited shares authorized	$8.33
Offering price per share	$8.33
Redemption proceeds per share (99.00/100 of $8.33)	$8.25
Class K Shares:
Net asset value per share ($1,333,925 ÷ 156,410 shares outstanding), no par value, unlimited shares authorized	$8.53
Offering price per share	$8.53
Redemption proceeds per share	$8.53

See Notes which are an integral part of the Financial Statements

Statement of Operations

Six Months Ended January 31, 2009 (unaudited)

Investment Income:
Dividends (including $35,673 received from an affiliated issuer (Note 5) and net of foreign taxes withheld of $979)			$	2,803,851
Expenses:
Investment adviser fee (Note 5)	$	1,051,019
Administrative personnel and services fee (Note 5)		136,110
Custodian fees		26,323
Transfer and dividend disbursing agent fees and expenses--Institutional Shares		45,077
Transfer and dividend disbursing agent fees and expenses--Class A Shares		127,356
Transfer and dividend disbursing agent fees and expenses--Class C Shares		88,918
Transfer and dividend disbursing agent fees and expenses--Class K Shares		2,519
Directors'/Trustees' fees		2,560
Auditing fees		10,924
Legal fees		3,339
Portfolio accounting fees		65,059
Distribution services fee--Class C Shares (Note 5)		265,025
Distribution services fee--Class K Shares (Note 5)		3,535
Shareholder services fee--Class A Shares (Note 5)		178,835
Shareholder services fee--Class C Shares (Note 5)		88,227
Account administration fee--Class A Shares		285
Account administration fee--Class C Shares		114
Share registration costs		36,491
Printing and postage		37,215
Insurance premiums		3,021
Interest expense		360
Miscellaneous		4,468
TOTAL EXPENSES		2,176,780

Statement of Operations - continued

Waivers and Reimbursements (Note 5):
Waiver/reimbursement of investment adviser fee	$	(32,773	)
Waiver of administrative personnel and services fee		(29,467	)
Reimbursement of transfer and dividend disbursing agent fees and expenses--Institutional Shares		(5,695	)
Reimbursement of transfer and dividend disbursing agent fees and expenses--Class A Shares		(18,392	)
Reimbursement of transfer and dividend disbursing agent fees and expenses--Class C Shares		(17,498	)
TOTAL WAIVERS AND REIMBURSEMENTS				$	(103,825	)
Net expenses							$	2,072,955
Net investment income								730,896
Realized and Unrealized Loss on Investments:
Net realized loss on investments								(121,053,781	)
Net change in unrealized depreciation of investments								(24,331,707	)
Net realized and unrealized loss on investments								(145,385,488	)
Change in net assets resulting from operations							$	(144,654,592	)

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

		Six Months Ended (unaudited) 1/31/2009			Year Ended 7/31/2008
Increase (Decrease) in Net Assets
Operations:
Net investment income	$	730,896		$	1,186,226
Net realized loss on investments		(121,053,781	)		(25,156,859	)
Net change in unrealized appreciation/depreciation of investments		(24,331,707	)		(20,313,246	)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		(144,654,592	)		(44,283,879	)
Distributions to Shareholders:
Distributions from net investment income
Institutional Shares		(512,139	)		- --
Class A Shares		(664,841	)		- --
Class C Shares		- --			- --
Class K Shares		(5,889	)		- --
Distributions from net realized gain on investments
Institutional Shares		- --			(6,297,925	)
Class A Shares		- --			(14,822,479	)
Class C Shares		- --			(7,853,780	)
Class K Shares		- --			(32,808	)
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS		(1,182,869	)		(29,006,992	)
Share Transactions:
Proceeds from sale of shares		47,512,415			148,687,842
Net asset value of shares issued to shareholders in payment of distributions declared		1,059,659			25,603,826
Cost of shares redeemed		(84,430,847	)		(113,566,093	)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		(35,858,773	)		60,725,575
Change in net assets		(181,696,234	)		(12,565,296	)
Net Assets:
Beginning of period		379,542,186			392,107,482
End of period (including undistributed net investment income of $734,253 and $1,186,226, respectively)	$	197,845,952		$	379,542,186

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

January 31, 2009 (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 nine 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. Each portfolio pays its own expenses. 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 investment objective of the Fund is long-term capital appreciation.

2. SIGNIFICANT ACCOUNTING POLICIES

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

Investment Valuation

In calculating its net asset value (NAV), the Fund generally values investments as follows:

• Equity securities listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market.
• Shares of other mutual funds are valued based upon their reported NAVs.
• Fixed-income securities acquired with remaining maturities greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Board of Trustees (the "Trustees").
• Fixed-income securities acquired with remaining maturities of 60 days or less are valued at their cost (adjusted for the accretion of any discount or amortization of any premium).
• Derivative contracts listed on exchanges are valued at their reported settlement or closing price.
• Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Trustees.

If the Fund cannot obtain a price or price evaluation from a pricing service for an investment, the Fund may attempt to value the investment based upon the mean of bid and asked quotations or fair value the investment based on price evaluations, from one or more dealers. If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could purchase or sell an investment at the price used to calculate the Fund's NAV.

Fair Valuation and Significant Events Procedures

The Trustees have authorized the use of pricing services to provide evaluations of the current fair value of certain investments for purposes of calculating the NAV. Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a "bid" evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and asked for the investment (a "mid" evaluation). The Fund normally uses bid evaluations for U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for other types of fixed-income securities and OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Trustees.

The Trustees also have adopted procedures requiring an investment to be priced at its fair value whenever the Adviser determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment's value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:

• With respect to securities traded in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures or options contracts;
• With respect to price evaluations of fixed-income securities determined before the close of regular trading on the NYSE, actions by the Federal Reserve Open Market Committee and other significant trends in U.S. fixed-income markets;
• Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; and
• Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, a natural disaster affecting the issuer's operations or regulatory changes or market developments affecting the issuer's industry.

The Trustees have approved the use of a pricing service to determine the fair value of equity securities traded principally in foreign markets when the Adviser determines that there has been a significant trend in the U.S. equity markets or in index futures trading. For other significant events, the Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Fund will determine the fair value of the investment using another method approved by the Trustees.

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

Investment transactions are accounted for on a trade-date basis. Realized gains and losses from investment transactions are recorded on an identified cost basis. Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Foreign dividends are recorded on the ex-dividend date or when the Fund is informed of the ex-dividend date. Distributions of net investment income 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 may bear distribution services fees, shareholder services fees, account administration fees and certain transfer and dividend disbursing agent fees unique to those classes. 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. The Fund complies with the provisions of Financial Accounting Standards Board (FASB) Interpretation No. 48 (FIN 48), "Accounting for Uncertainty in Income Taxes." As of and during the six months ended January 31, 2009, the Fund did not have a liability for any uncertain tax positions. The Fund recognizes interest and penalties, if any, related to tax liabilities as income tax expense in the Statement of Operations. As of January 31, 2009, tax years 2005 through 2008 remain subject to examination by the Fund's major tax jurisdictions, which include the United States of America and the Commonwealth of Massachusetts.

The Fund may be subject to taxes imposed by governments of countries in which it invests. Such taxes are generally based on either income or gains earned or repatriated. The Fund accrues and applies such taxes to net investment income, net realized gains and net unrealized gains as income and/or gains are earned.

When-Issued and Delayed Delivery Transactions

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

Other

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

3. SHARES OF BENEFICIAL INTEREST

The following tables summarize share activity:

	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Institutional Shares:	Shares			Amount		Shares			Amount
Shares sold	1,063,208		$	11,697,890		2,316,132		$	37,878,322
Shares issued to shareholders in payment of distributions declared	45,381			417,053		306,108			5,075,279
Shares redeemed	(1,623,147	)		(16,925,120	)	(1,569,357	)		(25,328,179	)
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS	(514,558	)	$	(4,810,177	)	1,052,883		$	17,625,422
	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Class A Shares:	Shares			Amount		Shares			Amount
Shares sold	2,714,876		$	28,002,953		4,864,131		$	77,675,376
Shares issued to shareholders in payment of distributions declared	69,892			636,717		864,495			14,186,366
Shares redeemed	(5,316,270	)		(52,798,626	)	(3,920,927	)		(61,812,706	)
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS	(2,531,502	)	$	(24,158,956	)	1,807,699		$	30,049,036
	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Class C Shares:	Shares			Amount		Shares			Amount
Shares sold	661,270		$	6,799,326		1,978,773		$	31,441,573
Shares issued to shareholders in payment of distributions declared	--			--		391,649			6,309,458
Shares redeemed	(1,434,188	)		(14,352,736	)	(1,692,463	)		(26,152,035	)
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS	(772,918	)	$	(7,553,410	)	677,959		$	11,598,996
	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Class K Shares:	Shares			Amount		Shares			Amount
Shares sold	91,780		$	1,012,246		106,180		$	1,692,571
Shares issued to shareholders in payment of distributions declared	644			5,889		1,982			32,723
Shares redeemed	(34,812	)		(354,365	)	(17,383	)		(273,173	)
NET CHANGE RESULTING FROM CLASS K SHARE TRANSACTIONS	57,612		$	663,770		90,779		$	1,452,121
NET CHANGE RESULTING FROM SHARE TRANSACTIONS	(3,761,366	)	$	(35,858,773	)	3,629,320		$	60,725,575

4. FEDERAL TAX INFORMATION

At January 31, 2009, the cost of investments for federal tax purposes was $235,799,466. The net unrealized depreciation of investments for federal tax purposes was $37,525,905. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $7,105,497 and net unrealized depreciation from investments for those securities having an excess of cost over value of $44,631,402.

At July 31, 2008, the Fund had a capital loss carryforward of $3,647,165 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 2016.

5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated MDTA LLC is the Fund's investment adviser (the "Adviser"). The advisory agreement between the Fund and the Adviser provides for an annual fee equal to 0.75% of the Fund's average daily net assets. Prior to December 8, 2008, the Adviser agreed to waive all or a portion of the advisory fee and/or reimburse certain operating expenses (excluding interest, taxes and brokerage commissions) in order to contractually limit the Fund's aggregate annual operating expenses to no more than the following annual percentages for certain classes of the Fund based on average daily net assets:

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

In addition, 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 at any time at its sole discretion. For the six months ended January 31, 2009, the Adviser waived $31,562 of its fee. In addition, an affiliate of the Adviser reimbursed $41,585 of transfer and dividend disbursing agent fees and expenses.

Administrative Fee

Federated Administrative Services (FAS), under the Administrative Services 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. 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, 2009, the net fee paid to FAS was 0.076% of average daily net assets of the Fund. FAS waived $29,467 of its fee.

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 at the following percentages of average daily net assets annually, to compensate FSC:

Share Class Name	Percentage of Average Daily Net Assets of Class
Class A Shares	0.05%
Class C Shares	0.75%
Class K Shares	0.50%

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, 2009, FSC retained $29,228 of fees paid by the Fund. For the six months ended January 31, 2009, the Fund's Class A Shares did not incur a distribution services fee; however it may begin to incur this fee upon approval of the Trustees. On November 15, 2007, the Fund's Trustees approved an amendment to the Plan to reduce the distribution services fee for the Fund's Class A Shares from 0.25% to 0.05%. The amendment to the Plan became effective for the Fund on March 31, 2008.

Sales Charges

Front-end sales charges and contingent deferred sales charges (CDSC) do not represent expenses of the Fund. They are deducted from the proceeds of sales of Fund shares prior to investment or from redemption proceeds prior to remittance, as applicable. For the six months ended January 31, 2009, FSC retained $9,692 in sales charges from the sale of Class A Shares. FSC also retained $3,822 of CDSC relating to redemptions of Class C Shares.

Shareholder Services Fee

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 may voluntarily reimburse the Fund for shareholder services fees. This voluntary reimbursement can be modified or terminated at any time. For the six months ended January 31, 2009, FSSC did not receive any fees paid by the Fund.

General

Certain 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 affiliated mutual funds. For the six months ended January 31, 2009, the Adviser reimbursed $1,211. Transactions with the affiliated company during the six months ended January 31, 2009 were as follows:

Affiliate	Balance of Shares Held 7/31/2008	Purchases/ Additions	Sales/ Reductions	Balance of Shares Held 1/31/2009	Value	Dividend Income
Prime Value Obligations Fund, Institutional Shares	1,891,293	39,941,067	38,655,366	3,176,994	$3,176,994	$35,673

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, 2009, were as follows:

Purchases	$	416,723,922
Sales	$	452,193,789

7. LINE OF CREDIT

The Fund participates in a $100,000,000 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, 2009, there were no outstanding loans. During the six months ended January 31, 2009, the Fund did not utilize the LOC.

8. INTERFUND LENDING

Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (SEC), the Fund, along with other funds advised by subsidiaries of Federated Investors, Inc., may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from other participating affiliated funds. As of January 31, 2009, there were no outstanding loans. During the six months ended January 31, 2009, the program was not utilized.

9. LEGAL PROCEEDINGS

Since October 2003, Federated Investors, Inc. and related entities (collectively, "Federated") and various Federated funds ("Federated Funds") have been 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 Federated Funds from the 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 entities have also been named as defendants in several additional lawsuits that 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 Federated Funds retained the law firm of Dickstein Shapiro LLP to represent the Federated Funds in these lawsuits. Federated and the Federated Funds, and their respective counsel have been defending this litigation, and none of the Federated Funds remains a defendant in any of the lawsuits (though some could potentially receive any recoveries as nominal defendants). 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 Federated 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 Federated Fund redemptions, reduced sales of Federated Fund shares or other adverse consequences for the Federated Funds.

Evaluation and Approval of Advisory
Contract - May 2008

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

The Fund's Board reviewed the Fund's investment advisory contract at meetings held in May 2008. The Board's decision regarding the contract reflects the exercise of its business judgment on whether to continue the existing arrangements.

In this connection, the Federated funds' Board had previously appointed 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 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. The Board considered that evaluation, along with other information, in deciding to approve the advisory contract.

During its review of the contract, the Board considered compensation and benefits received by the Adviser. This included the fees received for services provided to the Fund by other entities in the Federated organization and research services received by the Adviser from brokers that execute Federated fund trades, as well as advisory fees. The Board is also familiar with and considered 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 a fund grows larger; any indirect benefits that may accrue to the Adviser and its affiliates as a result of the Adviser's relationship with a 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 what might be viewed as like services, and the cost 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 for supplying such services. The Board was aware of these factors and was guided by them in its review of the Fund's advisory contract to the extent it considered them to be appropriate and relevant, as discussed further below.

The Board considered and weighed these circumstances in light of its substantial accumulated experience in governing the Fund and working with Federated on matters relating to the Federated funds, and was assisted in its deliberations by independent legal counsel. Throughout the year, the Board has requested and received substantial and detailed information about the Fund and the Federated organization that was in addition to the extensive materials that comprise and accompany the Senior Officer's evaluation. Federated provided much of this information at each regular meeting of the Board, and furnished additional reports in connection with the particular meeting at which the Board's formal review of the advisory contract occurred. Between regularly scheduled meetings, the Board also received information on particular matters as the need arose. Thus, 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 short- and long-term performance (in absolute terms, both on a gross basis and net of expenses, as well as in relationship to its particular investment program and certain competitor or "peer group" funds and/or other benchmarks, as appropriate), and comments on the reasons for performance; the Fund's investment objectives; the Fund's expenses (including the advisory fee 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 use and allocation of brokerage commissions derived from trading the Fund's portfolio securities (if any); and the nature, quality and extent of the advisory and other services provided to the Fund by the Adviser and its affiliates. The Board also considered the preferences and expectations of Fund shareholders 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 performance and 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 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 competes. The Fund's ability to deliver competitive performance when compared to its peer group was a useful indicator of how the Adviser is executing 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 continuation of the advisory contract. In this regard, the Senior Officer has 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 include, but are not limited to, different types of targeted investors; being subject to different laws and regulations; different legal structures; different average account sizes; different associated costs; and different 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, using data supplied by independent fund ranking organizations, regarding the performance of, and fees charged by, other mutual funds, noting his view that comparisons to fund peer groups are highly important in judging the reasonableness of proposed fees. He also observed that certain funds may exhibit important differences in their objectives and management techniques when compared to other funds placed in the same peer group by ranking organizations, noting in this connection that the Fund's quantitative investment program is of such a type.

For both the one- and three-year periods ending December 31, 2007, the Fund's performance was above the median of the relevant peer group. In addition, the Board was informed by the Adviser that, for the same periods, the Fund outperformed its benchmark index for the one-year period and outperformed its benchmark index for the three-year period.

The Board also received financial information about Federated, including reports on the compensation and benefits Federated derived from its relationships with the Federated funds. These reports covered 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 discussed any indirect benefit Federated may derive from its receipt of research services from brokers who execute Federated fund trades. In addition, the Board considered the fact that, in order for a fund to be competitive in the marketplace, Federated and its affiliates frequently waived fees and/or reimbursed expenses and have disclosed to fund investors and/or indicated to the Board their intention to do so in the future, where appropriate.

Federated furnished reports, requested by the Senior Officer, that reported revenues on a fund-by-fund basis and made estimates of the allocation of expenses on a fund-by-fund basis, using allocation methodologies specified by the Senior Officer. The Senior Officer noted that, although they may apply consistent allocation processes, the inherent difficulties in allocating costs (and the unavoidable arbitrary aspects of that exercise) and the lack of consensus on how to allocate those costs may render such allocation reports unreliable. The allocation reports were considered in the analysis by the Board but were determined to be of limited use.

The Board and the Senior Officer also reviewed a report compiled by Federated comparing profitability information for Federated to other publicly held fund management companies. In this regard, the Senior Officer noted the limited availability of such information, but nonetheless concluded that Federated's profit margins did not appear to be excessive and the Board agreed.

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 and long-term investments in areas that support all of the Federated funds, such as personnel and processes for the portfolio management, compliance, and risk management functions; and systems technology; and that the benefits of these efforts (as well as 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 (as discussed in the Senior Officer's evaluation) 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.

It was noted in the materials for the Board meeting that for the Fund's most recently completed fiscal year, the Fund's investment advisory fee, after waivers and expense reimbursements, if any, was above the median of the relevant peer group. The Board reviewed the fees and other expenses of the Fund with the Adviser and was satisfied that the overall expense structure of the Fund remained competitive. In this regard, the Board had been previously advised that, while comparisons to fund peer groups are highly important in judging the reasonableness of advisory fees, the Fund's quantitative focus makes fee and expense comparisons particularly difficult. Although the Fund's advisory fee was above the median of the peer range, the peer group of funds varied widely in their complexity, and the management of the Fund is among the more complex relative to its peers. The Board will continue to monitor advisory fees and other expenses borne by the Fund.

The Senior Officer's evaluation noted his belief that the information and observations contained in his evaluation supported a finding that the proposed management fees are reasonable, and that Federated appeared to provide appropriate administrative services to the Fund for the fees paid. Under these circumstances, no changes were recommended to, and no objection was raised to, the continuation of the Fund's advisory contract. The Board concluded that the nature, quality and scope of services provided the Fund by the Adviser and its affiliates were satisfactory.

In its decision to continue an existing investment advisory contract, the Board was mindful of the potential disruptions of the Fund's operations and various risks, uncertainties and other effects that could occur as a result of a decision to terminate or not renew an advisory contract. In particular, the Board recognized that most shareholders have invested in the Fund on the strength of the Adviser's industry standing and reputation and with the expectation that the Adviser will have a continuing role in providing advisory services to the Fund. Thus, the Board's approval of the advisory contract reflected the fact that it is the shareholders who have effectively selected the Adviser by virtue of having invested in the Fund.

The Board 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. Not all of the factors and considerations identified above were necessarily relevant to the Fund, nor did the Board consider any one of them to be determinative. With respect to the factors that were relevant, the Board's decision to approve the contract reflects its determination that Federated's performance and actions provided a satisfactory basis to support the decision to continue the existing 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 from Federated's website at FederatedInvestors.com. To access this information from the "Products" section of the website, click on the "Prospectuses and Regulatory Reports" link under "Related Information," then select the appropriate link opposite the name of the Fund; or select the name of the Fund and from the Fund's page, click on the "Prospectuses and Regulatory Reports" link. Form N-PX filings are also available at 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" under "Related Information," then selecting the appropriate link opposite the name of the Fund; or select the name of the Fund and from the Fund's page, click on the "Portfolio Holdings" link.

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 (3/09)

Federated is a registered mark of Federated Investors, Inc. 2009 (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, 2009

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,
	1/31/2009			2008			2007	1		2006	2		2005			2004
Net Asset Value, Beginning of Period	$14.22			$16.88			$15.17			$15.32			$13.55			$11.76
Income From Investment Operations:
Net investment income	0.05	3		0.10			0.07	3		0.05	3		0.03	3		0.04
Net realized and unrealized gain (loss) on investments	(5.59	)		(1.57	)		2.18			0.70			2.87			2.05
TOTAL FROM INVESTMENT OPERATIONS	(5.54	)		(1.47	)		2.25			0.75			2.90			2.09
Less Distributions:
Distributions from net investment income	(0.09	)		- --			- --			(0.02	)		(0.05	)		(0.03	)
Distributions from net realized gain on investments	- --			(1.19	)		(0.54	)		(0.88	)		(1.08	)		(0.27	)
TOTAL DISTRIBUTIONS	(0.09	)		(1.19	)		(0.54	)		(0.90	)		(1.13	)		(0.30	)
Net Asset Value, End of Period	$ 8.59			$14.22			$16.88			$15.17			$15.32			$13.55
Total Return 4	(39.00	)%		(9.71	)%		14.92	%		4.85	%		22.14	%		17.78	%
Ratios to Average Net Assets:
Net expenses	1.06	% 5		1.01	%		1.07	%		1.25	%		1.25	%		1.25	%
Net investment income	0.95	% 5		0.72	%		0.40	%		0.28	%		0.23	%		0.30	%
Expense waiver/reimbursement 6	0.06	% 5		0.00	% 7		0.01	%		0.05	%		0.04	%		0.15	%
Supplemental Data:
Net assets, end of period (000 omitted)	$47,920		$86,681			$85,128			$42,656			$43,782			$31,532
Portfolio turnover	147	%		199	%		225	%		212	%		204	%		96	%

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 Beginning with the year ended July 31, 2006, the Fund was audited by Ernst & Young LLP. The previous years were audited by another independent registered public accounting firm.

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 Represents less than 0.01%.

See Notes which are an integral part of the Financial Statements

Shareholder Expense Example (unaudited)

As a shareholder of the Fund, you incur ongoing costs, including management fees and to the extent applicable, distribution (12b-1) fees and/or 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, 2008 to January 31, 2009.

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 8/1/2008	Ending Account Value 1/31/2009	Expenses Paid During Period 1
Actual	$1,000	$ 610.00	$4.30
Hypothetical (assuming a 5% return before expenses)	$1,000	$1,019.86	$5.40

1 Expenses are equal to the Fund's annualized net expense ratio of 1.06%, 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 (unaudited)

At January 31, 2009, the Fund's industry composition ¹ was as follows:

Industry	Percentage of Total Net Assets
Electric Utility	6.6	%
Biotechnology	5.8	%
Software Packaged/Custom	5.3	%
Property Liability Insurance	5.0	%
Ethical Drugs	4.8	%
Railroad	4.8	%
Agricultural Chemicals	4.7	%
Undesignated Consumer Cyclicals	4.7	%
Miscellaneous Food Products	4.2	%
Multi-Line Insurance	4.0	%
Services to Medical Professionals	3.9	%
Computers - Midrange	3.2	%
Home Building	3.0	%
AT&T Divestiture	2.4	%
Defense Aerospace	2.2	%
Department Stores	2.2	%
Integrated International Oil	2.2	%
Copper	1.9	%
Diversified Leisure	1.9	%
Life Insurance	1.7	%
Money Center Bank	1.4	%
Regional Bank	1.3	%
Airline - Regional	1.2	%
Agricultural Machinery	1.1	%
Medical Technology	1.0	%
Other 2	18.1	%
Cash Equivalents 3	1.6	%
Other Assets and Liabilities--Net 4	(0.2	)%
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, 2009 (unaudited)

Shares					Value
			COMMON STOCKS--98.6%
			Advertising--0.0%
	3,100		Omnicom Group, Inc.	$	80,259
			Agricultural Chemicals--4.7%
	120,100		Monsanto Co.		9,134,806
	3,200		Mosaic Co./The		114,144
			TOTAL		9,248,950
			Agricultural Machinery--1.1%
	60,400		Deere & Co.		2,098,296
			Airline - Regional--1.2%
	38,700	1	Alaska Air Group, Inc.		1,020,132
	7,300		SkyWest, Inc.		114,245
	177,500		Southwest Airlines Co.		1,247,825
			TOTAL		2,382,202
			AT&T Divestiture--2.4%
	192,600		AT&T, Inc.		4,741,812
			Auto Original Equipment Manufacturers--0.5%
	17,000	1	Fuel Systems Solutions, Inc.		444,380
	28,500		Johnson Controls, Inc.		356,535
	12,900		Superior Industries International, Inc.		132,483
			TOTAL		933,398
			Auto Rentals--0.1%
	5,000	1	AMERCO		153,750
			Biotechnology--5.8%
	12,500	1	Affymetrix, Inc.		39,750
	18,700	1	Cephalon, Inc.		1,443,266
	1,600	1	Charles River Laboratories International, Inc.		39,056
	192,200	1	Gilead Sciences, Inc.		9,757,994
	4,300	1	Hospira, Inc.		107,070
	300	1	Myriad Genetics, Inc.		22,371
	15,100	1	Questcor Pharmaceuticals, Inc.		97,395
			TOTAL		11,506,902
Shares					Value
			COMMON STOCKS--continued
			Book Publishing--0.0%
	800		Scholastic Corp.	$	8,720
			Broadcasting--0.5%
	26,300	1	American Tower Systems Corp.		797,942
	23,200		News Corp., Inc.		148,248
			TOTAL		946,190
			Building Materials--0.3%
	4,100		Ameron, Inc.		204,385
	26,600	1	Owens Corning, Inc.		354,844
			TOTAL		559,229
			Cable TV--0.7%
	29,800	1	Discovery Communications, Inc.		432,100
	55,100		Time Warner, Inc.		514,083
	35,400	1	Viacom, Inc., Class B		522,150
			TOTAL		1,468,333
			Cement--0.2%
	12,600		Texas Industries, Inc.		286,146
			Clothing Stores--0.3%
	14,600	1	Children's Place Retail Stores, Inc.		274,626
	13,600	1	Jos A. Bank Clothiers, Inc.		373,456
			TOTAL		648,082
			Commodity Chemicals--0.3%
	2,600		Compass Minerals International, Inc.		156,442
	4,900		Eastman Chemical Co.		127,155
	19,600		Westlake Chemical Corp.		267,932
			TOTAL		551,529
			Computer Peripherals--0.5%
	10,800		Imation Corp.		105,192
	33,900	1	Sandisk Corp.		387,477
	17,900	1	Synaptics, Inc.		421,903
			TOTAL		914,572
			Computer Stores--0.1%
	14,100	1	Tech Data Corp.		255,351
Shares					Value
			COMMON STOCKS--continued
			Computers - Low End--0.3%
	63,500	1	Dell, Inc.	$	603,250
			Computers - Midrange--3.2%
	183,700		Hewlett-Packard Co.		6,383,575
			Construction Machinery--0.6%
	34,100		Caterpillar, Inc.		1,051,985
	6,700		Joy Global, Inc.		139,561
			TOTAL		1,191,546
			Contracting--0.1%
	2,200		Harsco Corp.		52,184
	1,700	1	IHS, Inc., Class A		74,460
			TOTAL		126,644
			Copper--1.9%
	151,800		Freeport-McMoRan Copper & Gold, Inc.		3,816,252
			Crude Oil & Gas Production--0.3%
	5,600	1	Swift Energy Co.		85,792
	23,300		W&T Offshore, Inc.		292,881
	8,200	1	Whiting Petroleum Corp.		237,800
			TOTAL		616,473
			Defense Aerospace--2.2%
	95,200		Boeing Co.		4,027,912
	4,200		General Dynamics Corp.		238,266
			TOTAL		4,266,178
			Defense Electronics--0.2%
	14,000	1	FLIR Systems, Inc.		349,580
			Department Stores--2.2%
	32,500		Dillards, Inc., Class A		141,375
	72,800		Penney (J.C.) Co., Inc.		1,219,400
	42,800	1	Saks, Inc.		107,856
	70,700	1	Sears Holdings Corp.		2,893,044
			TOTAL		4,361,675
			Discount Department Stores--0.1%
	21,100	1	99 Cents Only Stores		176,818
Shares					Value
			COMMON STOCKS--continued
			Diversified Leisure--1.9%
	183,600		Carnival Corp.	$	3,339,684
	25,500	1	Gaylord Entertainment Co.		270,300
	15,000	1	Pinnacle Entertainment, Inc.		101,700
			TOTAL		3,711,684
			Electronic & Electrical Original Equipment Manufacturers--0.1%
	13,100		Molex, Inc.		175,147
			Electrical Test/Measuring Equipment--0.0%
	4,700	1	Multi-Fineline Electronix, Inc.		87,091
			Electric Utility--6.6%
	43,900		American Electric Power Co., Inc.		1,376,265
	66,300		CMS Energy Corp.		779,025
	189,500		Edison International		6,172,015
	13,000		Idacorp, Inc.		378,430
	3,700		OGE Energy Corp.		91,316
	85,400		Sempra Energy		3,743,936
	23,500		TECO Energy, Inc.		282,235
	10,400		UniSource Energy Corp.		293,696
			TOTAL		13,116,918
			Electronics Stores--0.0%
	6,300		RadioShack Corp.		72,198
			Ethical Drugs--4.8%
	42,000		Eli Lilly & Co.		1,546,440
	57,500	1	Forest Laboratories, Inc., Class A		1,439,800
	193,300		Merck & Co., Inc.		5,518,715
	800	1	Noven Pharmaceuticals, Inc.		7,944
	68,500		Pfizer, Inc.		998,730
			TOTAL		9,511,629
			Food Wholesaling--0.1%
	7,100		SUPERVALU, Inc.		124,534
			Furniture--0.0%
	10,400		Furniture Brands International, Inc.		21,320
Shares					Value
			COMMON STOCKS--continued
			Gas Distributor--0.8%
	43,900		Energen Corp.	$	1,282,319
	4,900		New Jersey Resources Corp.		196,441
	14,000	1	Southern Union Co.		180,460
			TOTAL		1,659,220
			Generic Drugs--0.0%
	1,900	1	Warner Chilcott Ltd., Class A		26,125
			Home Building--3.0%
	51,500		Centex Corp.		438,265
	152,400		D.R. Horton, Inc.		908,304
	69,000		Lennar Corp., Class A		530,610
	700	1	M/I Schottenstein Homes, Inc.		6,188
	164,000		Pulte Homes, Inc.		1,664,600
	31,000		Ryland Group, Inc.		483,600
	111,400	1	Toll Brothers, Inc.		1,896,028
			TOTAL		5,927,595
			Home Health Care--0.7%
	17,900	1	Amedisys, Inc.		738,017
	14,800	1	Amerigroup Corp.		413,956
	10,100	1	LHC Group, Inc.		268,761
			TOTAL		1,420,734
			Home Products--0.1%
	2,500	1	Energizer Holdings, Inc.		119,075
	4,200		Tupperware Brands Corp.		86,352
			TOTAL		205,427
			Hospitals--0.1%
	6,500		Universal Health Services, Inc., Class B		246,025
			Household Appliances--0.1%
	5,500		Whirlpool Corp.		183,865
			Industrial Machinery--0.1%
	5,000		Flowserve Corp.		266,550
			Integrated International Oil--2.2%
	61,800		Chevron Corp.		4,358,136
Shares					Value
			COMMON STOCKS--continued
			Internet Services--0.5%
	14,500	1	NetFlix, Inc.	$	524,030
	45,900	1	eBay, Inc.		551,718
			TOTAL		1,075,748
			Jewelry Stores--0.0%
	4,300		Movado Group, Inc.		33,024
			Life Insurance--1.7%
	10,800		Aflac, Inc.		250,668
	15,400		American Equity Investment Life Holding Co.		103,026
	10,600		Delphi Financial Group, Inc., Class A		160,802
	51,800		Old Republic International Corp.		534,576
	77,400		Torchmark Corp.		2,322,000
			TOTAL		3,371,072
			Long-Term Care Centers--0.0%
	5,600	1	Kindred Healthcare, Inc.		75,992
			Lumber Products--0.1%
	25,100	1	Louisiana-Pacific Corp.		52,208
	6,000		Weyerhaeuser Co.		164,040
			TOTAL		216,248
			Medical Supplies--0.3%
	1,000	1	Haemonetics Corp.		59,150
	3,200	1	Kinetic Concepts, Inc.		77,120
	6,800	1	Merit Medical Systems, Inc.		104,652
	12,400	1	PetMed Express, Inc.		179,056
	10,200	1	Quidel Corp.		125,460
			TOTAL		545,438
			Medical Technology--1.0%
	5,700	1	Cantel Medical Corp.		85,443
	9,900	1	Cyberonics, Inc.		152,361
	1,300	1	Edwards Lifesciences Corp.		74,737
	2,800	1	Gen-Probe, Inc.		126,056
	7,000	1	Greatbatch Technologies, Inc.		163,100
	7,900	1	ResMed, Inc.		315,210
Shares					Value
			COMMON STOCKS--continued
			Medical Technology--continued
	16,400	1	Thoratec Laboratories Corp.	$	475,108
	14,700	1	Zimmer Holdings, Inc.		535,080
			TOTAL		1,927,095
			Metal Fabrication--0.0%
	2,300	1	RTI International Metals		30,613
	1,300		Timken Co.		19,357
			TOTAL		49,970
			Miscellaneous Components--0.4%
	17,500		AVX Corp.		159,600
	13,000	1	Cree, Inc.		259,090
	25,900	1	International Rectifier Corp.		352,758
			TOTAL		771,448
			Miscellaneous Food Products--4.2%
	275,600		Archer-Daniels-Midland Co.		7,545,928
	6,700		Corn Products International, Inc.		155,105
	26,100	1	Fresh Del Monte Produce, Inc.		629,010
			TOTAL		8,330,043
			Miscellaneous Metals--0.1%
	23,400	1	USEC, Inc.		119,106
			Money Center Bank--1.4%
	74,800		Bank of New York Mellon Corp.		1,925,352
	51,900		U.S. Bancorp		770,196
			TOTAL		2,695,548
			Mortgage and Title--0.1%
	24,000		PMI Group, Inc.		33,360
	18,600		Radian Group, Inc.		59,892
	6,700		Stewart Information Services Corp.		99,428
			TOTAL		192,680
			Motion Pictures--0.3%
	29,100		Walt Disney Co.		601,788
Shares					Value
			COMMON STOCKS--continued
			Multi-Industry Capital Goods--0.5%
	17,700		General Electric Co.	$	214,701
	49,800		KBR, Inc.		705,168
	14,600		Textron, Inc.		131,838
			TOTAL		1,051,707
			Multi-Line Insurance--4.0%
	134,550		Allstate Corp.		2,915,699
	2,500	1	Amerisafe, Inc.		46,825
	6,400		FBL Financial Group, Inc., Class A		65,984
	22,600		Hanover Insurance Group, Inc.		913,492
	284,900		UNUMProvident Corp.		4,034,184
			TOTAL		7,976,184
			Office Equipment--0.2%
	13,200		Pitney Bowes, Inc.		293,832
			Offshore Driller--0.4%
	13,900	1	Transocean Ltd.		759,218
			Oil Refiner--0.8%
	16,800		Sunoco, Inc.		778,176
	28,600		Western Refining, Inc.		333,476
	11,100		World Fuel Services Corp.		374,847
			TOTAL		1,486,499
			Oil Service, Explore & Drill--0.1%
	19,600		Patterson-UTI Energy, Inc.		187,376
			Oil Well Supply--0.1%
	4,400		Baker Hughes, Inc.		146,608
	5,600	1	Dril-Quip, Inc.		137,200
			TOTAL		283,808
			Other Communications Equipment--0.1%
	42,500	1	Tellabs, Inc.		175,525
			Packaged Foods--0.1%
	7,100		Hershey Foods Corp.		264,688
			Paper Products--0.4%
	58,700		MeadWestvaco Corp.		683,268
	2,200		Rock-Tenn Co.		68,574
			TOTAL		751,842
Shares					Value
			COMMON STOCKS--continued
			Personal Loans--0.5%
	46,100		Capital One Financial Corp.	$	730,224
	21,000	1	Ezcorp, Inc., Class A		284,970
			TOTAL		1,015,194
			Personnel Agency--0.0%
	5,000		Kelly Services, Inc., Class A		45,300
			Pollution Control--0.2%
	6,800	1	Stericycle, Inc.		332,656
			Printing--0.0%
	6,700		Donnelley (R.R.) & Sons Co.		65,392
			Property Liability Insurance--5.0%
	14,400		Berkley, W.R. Corp.		381,312
	41,000		Chubb Corp.		1,745,780
	6,300		HCC Insurance Holdings, Inc.		147,483
	195,900		The Travelers Cos., Inc.		7,569,576
			TOTAL		9,844,151
			Railroad--4.8%
	91,800		CSX Corp.		2,658,528
	21,400		Norfolk Southern Corp.		820,904
	138,400		Union Pacific Corp.		6,060,536
			TOTAL		9,539,968
			Recreational Goods--0.3%
	8,200		Callaway Golf Co.		62,402
	20,400	1	WMS Industries, Inc.		453,288
			TOTAL		515,690
			Recreational Vehicles--0.0%
	32,900		Brunswick Corp.		91,462
			Regional Bank--1.3%
	37,300		BB&T Corp.		738,167
	7,400		Central Pacific Financial Corp.		49,802
	16,400		East West Bancorp, Inc.		155,636
	52,700		Marshall & Ilsley Corp.		300,917
	6,500		PNC Financial Services Group		211,380
	46,000		Popular, Inc.		126,040
Shares					Value
			COMMON STOCKS--continued
			Regional Bank--continued
	9,200		South Financial Group, Inc.	$	17,296
	71,000		SunTrust Banks, Inc.		870,460
	6,000		Whitney Holding Corp.		77,940
	7,400		Wintrust Financial Corp.		98,938
			TOTAL		2,646,576
			Restaurant--0.1%
	1,000	1	Green Mountain Coffee, Inc.		38,260
	2,900	1	Panera Bread Co.		136,242
			TOTAL		174,502
			Roofing & Wallboard--0.1%
	43,300	1	USG Corp.		281,883
			Rubber--0.0%
	18,100		Cooper Tire & Rubber Co.		84,527
			Savings & Loan--0.3%
	19,800		Astoria Financial Corp.		179,784
	35,000		Hudson City Bancorp, Inc.		406,000
			TOTAL		585,784
			Securities Brokerage--0.4%
	8,900	1	Interactive Brokers Group, Inc., Class A		135,903
	5,400	1	Knight Capital Group, Inc., Class A		97,362
	11,400	1	Labranche & Co., Inc.		78,204
	28,800		Raymond James Financial, Inc.		533,088
			TOTAL		844,557
			Semiconductor Distribution--0.9%
	57,600	1	Arrow Electronics, Inc.		1,098,432
	15,500	1	Avnet, Inc.		307,210
	14,500	1	FormFactor, Inc.		225,620
	5,800	1	Tyler Technologies, Inc.		73,022
			TOTAL		1,704,284
			Semiconductor Manufacturing--0.4%
	8,700	1	ATMI, Inc.		117,537
	146,600	1	Micron Technology, Inc.		545,352
	6,300	1	Plexus Corp.		91,098
			TOTAL		753,987
Shares					Value
			COMMON STOCKS--continued
			Semiconductor Manufacturing Equipment--0.3%
	48,500	1	Novellus Systems, Inc.	$	668,815
			Services to Medical Professionals--3.9%
	3,000	1	Coventry Health Care, Inc.		45,390
	10,500	1	Genoptix, Inc.		355,950
	61,300	1	Humana, Inc.		2,325,109
	5,900	1	Medco Health Solutions, Inc.		265,087
	7,600		Omnicare, Inc.		212,496
	88,300		UnitedHealth Group, Inc.		2,501,539
	49,100	1	Wellpoint, Inc.		2,035,195
			TOTAL		7,740,766
			Shoes--0.1%
	6,600	1	Genesco, Inc.		101,640
			Soft Drinks--0.1%
	5,900		The Pepsi Bottling Group, Inc.		113,811
			Software Packaged/Custom--5.3%
	105,000	1	Computer Sciences Corp.		3,868,200
	16,000	1	DST Systems, Inc.		508,320
	74,200	1	F5 Networks, Inc.		1,645,014
	246,000		Microsoft Corp.		4,206,600
	10,700	1	Solera Holdings, Inc.		257,763
			TOTAL		10,485,897
			Specialty Chemicals--0.5%
	8,700		Albemarle Corp.		193,575
	7,700		Cabot Corp.		102,872
	4,100		Chemed Corp.		164,533
	4,300		Cytec Industries, Inc.		87,892
	3,900		Lubrizol Corp.		133,068
	15,600	1	OM Group, Inc.		302,328
			TOTAL		984,268
			Specialty Retailing--0.2%
	11,000		Pep Boys-Manny Moe & Jack		31,790
	38,100		Williams-Sonoma, Inc.		301,752
	9,800	1	Zale Corp.		12,152
			TOTAL		345,694
Shares					Value
			COMMON STOCKS--continued
			Stainless Steel Producer--0.5%
	44,700		Allegheny Technologies, Inc.	$	987,423
			Technology Services--0.1%
	7,700	1	Stanley, Inc.		233,002
			Telecommunication Equipment & Services--0.2%
	84,100		Motorola, Inc.		372,563
			Tools and Hardware--0.1%
	4,300		Snap-On, Inc.		129,774
			Toys & Games--0.2%
	18,200	1	JAKKS Pacific, Inc.		333,788
			Truck Manufacturing--0.2%
	16,200		Cummins, Inc.		388,476
			Trucking--0.5%
	1,500		Arkansas Best Corp.		35,085
	29,900		Ryder System, Inc.		1,010,022
			TOTAL		1,045,107
			Undesignated Consumer Cyclicals--4.7%
	51,600	1	Alliance Data Systems Corp.		2,146,044
	6,800	1	American Public Education, Inc.		266,288
	3,200	1	CoStar Group, Inc.		94,784
	58,200	1	Corinthian Colleges, Inc.		1,087,176
	6,100		DeVRY, Inc.		326,838
	39,200	1	ITT Educational Services, Inc.		4,802,392
	11,600		Speedway Motorsports, Inc.		167,504
	1,900		Strayer Education, Inc.		411,217
			TOTAL		9,302,243
			Undesignated Consumer Staples--0.1%
	4,400	1	USANA, Inc.		102,124
			Water Utility--0.1%
	10,100		Aqua America, Inc.		209,474
			TOTAL COMMON STOCKS (IDENTIFIED COST $232,622,472)		195,096,567
Shares					Value
			MUTUAL FUND--1.6%
	3,176,994	2,3	Prime Value Obligations Fund, Institutional Shares, 1.75% (AT NET ASSET VALUE)	$	3,176,994
			TOTAL INVESTMENTS--100.2% (IDENTIFIED COST $235,799,466) 4		198,273,561
			OTHER ASSETS AND LIABILITIES - NET--(0.2)% 5		(427,609	)
			TOTAL NET ASSETS--100%	$	197,845,952

1 Non-income-producing security.

2 Affiliated company.

3 7-Day net yield.

4 Also represents cost for federal tax purposes.

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

Note: The categories of investments are shown as a percentage of total net assets at January 31, 2009.

Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below:

Level 1--quoted prices in active markets for identical securities

Level 2--other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

Level 3--significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used, as of January 31, 2009, in valuing the Fund's assets carried at fair value:

Valuation Inputs	Investments in Securities
Level 1--Quoted Prices and Investments in Mutual Funds	$198,273,561
Level 2--Other Significant Observable Inputs	- --
Level 3--Significant Unobservable Inputs	- --
TOTAL	$198,273,561

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

January 31, 2009 (unaudited)

Assets:
Total investments in securities, at value including $3,176,994 of investments in an affiliated issuer (Note 5) (identified cost $235,799,466)			$	198,273,561
Cash				13
Income receivable				132,609
Receivable for investments sold				10,174,925
Receivable for shares sold				397,936
TOTAL ASSETS				208,979,044
Liabilities:
Payable for investments purchased	$	10,318,903
Payable for shares redeemed		560,145
Payable for Directors'/Trustees' fees		133
Payable for distribution services fee (Note 5)		33,408
Payable for shareholder services fee (Note 5)		85,674
Accrued expenses		134,829
TOTAL LIABILITIES				11,133,092
Net assets for 23,338,173 shares outstanding			$	197,845,952
Net Assets Consist of:
Paid-in capital			$	381,283,452
Net unrealized depreciation of investments				(37,525,905	)
Accumulated net realized loss on investments				(146,645,848	)
Undistributed net investment income				734,253
TOTAL NET ASSETS			$	197,845,952

Statement of Assets and Liabilities - continued

Net Asset Value, Offering Price and Redemption Proceeds Per Share
Institutional Shares:
Net asset value per share ($47,920,086 ÷ 5,580,172 shares outstanding), no par value, unlimited shares authorized	$8.59
Offering price per share	$8.59
Redemption proceeds per share	$8.59
Class A Shares:
Net asset value per share ($96,443,089 ÷ 11,338,024 shares outstanding), no par value, unlimited shares authorized	$8.51
Offering price per share (100/94.50 of $8.51)	$9.01
Redemption proceeds per share	$8.51
Class C Shares:
Net asset value per share ($52,148,852 ÷ 6,263,567 shares outstanding), no par value, unlimited shares authorized	$8.33
Offering price per share	$8.33
Redemption proceeds per share (99.00/100 of $8.33)	$8.25
Class K Shares:
Net asset value per share ($1,333,925 ÷ 156,410 shares outstanding), no par value, unlimited shares authorized	$8.53
Offering price per share	$8.53
Redemption proceeds per share	$8.53

See Notes which are an integral part of the Financial Statements

Statement of Operations

Six Months Ended January 31, 2009 (unaudited)

Investment Income:
Dividends (including $35,673 received from an affiliated issuer (Note 5) and net of foreign taxes withheld of $979)			$	2,803,851
Expenses:
Investment adviser fee (Note 5)	$	1,051,019
Administrative personnel and services fee (Note 5)		136,110
Custodian fees		26,323
Transfer and dividend disbursing agent fees and expenses--Institutional Shares		45,077
Transfer and dividend disbursing agent fees and expenses--Class A Shares		127,356
Transfer and dividend disbursing agent fees and expenses--Class C Shares		88,918
Transfer and dividend disbursing agent fees and expenses--Class K Shares		2,519
Directors'/Trustees' fees		2,560
Auditing fees		10,924
Legal fees		3,339
Portfolio accounting fees		65,059
Distribution services fee--Class C Shares (Note 5)		265,025
Distribution services fee--Class K Shares (Note 5)		3,535
Shareholder services fee--Class A Shares (Note 5)		178,835
Shareholder services fee--Class C Shares (Note 5)		88,227
Account administration fee--Class A Shares		285
Account administration fee--Class C Shares		114
Share registration costs		36,491
Printing and postage		37,215
Insurance premiums		3,021
Interest expense		360
Miscellaneous		4,468
TOTAL EXPENSES		2,176,780

Statement of Operations - continued

Waivers and Reimbursements (Note 5):
Waiver/reimbursement of investment adviser fee	$	(32,773	)
Waiver of administrative personnel and services fee		(29,467	)
Reimbursement of transfer and dividend disbursing agent fees and expenses--Institutional Shares		(5,695	)
Reimbursement of transfer and dividend disbursing agent fees and expenses--Class A Shares		(18,392	)
Reimbursement of transfer and dividend disbursing agent fees and expenses--Class C Shares		(17,498	)
TOTAL WAIVERS AND REIMBURSEMENTS				$	(103,825	)
Net expenses							$	2,072,955
Net investment income								730,896
Realized and Unrealized Loss on Investments:
Net realized loss on investments								(121,053,781	)
Net change in unrealized depreciation of investments								(24,331,707	)
Net realized and unrealized loss on investments								(145,385,488	)
Change in net assets resulting from operations							$	(144,654,592	)

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

		Six Months Ended (unaudited) 1/31/2009			Year Ended 7/31/2008
Increase (Decrease) in Net Assets
Operations:
Net investment income	$	730,896		$	1,186,226
Net realized loss on investments		(121,053,781	)		(25,156,859	)
Net change in unrealized appreciation/depreciation of investments		(24,331,707	)		(20,313,246	)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		(144,654,592	)		(44,283,879	)
Distributions to Shareholders:
Distributions from net investment income
Institutional Shares		(512,139	)		- --
Class A Shares		(664,841	)		- --
Class C Shares		- --			- --
Class K Shares		(5,889	)		- --
Distributions from net realized gain on investments
Institutional Shares		- --			(6,297,925	)
Class A Shares		- --			(14,822,479	)
Class C Shares		- --			(7,853,780	)
Class K Shares		- --			(32,808	)
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS		(1,182,869	)		(29,006,992	)
Share Transactions:
Proceeds from sale of shares		47,512,415			148,687,842
Net asset value of shares issued to shareholders in payment of distributions declared		1,059,659			25,603,826
Cost of shares redeemed		(84,430,847	)		(113,566,093	)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		(35,858,773	)		60,725,575
Change in net assets		(181,696,234	)		(12,565,296	)
Net Assets:
Beginning of period		379,542,186			392,107,482
End of period (including undistributed net investment income of $734,253 and $1,186,226, respectively)	$	197,845,952		$	379,542,186

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

January 31, 2009 (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 nine 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. Each portfolio pays its own expenses. 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 investment objective of the Fund is long-term capital appreciation.

2. SIGNIFICANT ACCOUNTING POLICIES

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

Investment Valuation

In calculating its net asset value (NAV), the Fund generally values investments as follows:

• Equity securities listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market.
• Shares of other mutual funds are valued based upon their reported NAVs.
• Fixed-income securities acquired with remaining maturities greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Board of Trustees (the "Trustees").
• Fixed-income securities acquired with remaining maturities of 60 days or less are valued at their cost (adjusted for the accretion of any discount or amortization of any premium).
• Derivative contracts listed on exchanges are valued at their reported settlement or closing price.
• Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Trustees.

If the Fund cannot obtain a price or price evaluation from a pricing service for an investment, the Fund may attempt to value the investment based upon the mean of bid and asked quotations or fair value the investment based on price evaluations, from one or more dealers. If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could purchase or sell an investment at the price used to calculate the Fund's NAV.

Fair Valuation and Significant Events Procedures

The Trustees have authorized the use of pricing services to provide evaluations of the current fair value of certain investments for purposes of calculating the NAV. Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a "bid" evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and asked for the investment (a "mid" evaluation). The Fund normally uses bid evaluations for U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for other types of fixed-income securities and OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Trustees.

The Trustees also have adopted procedures requiring an investment to be priced at its fair value whenever the Adviser determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment's value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:

• With respect to securities traded in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures or options contracts;
• With respect to price evaluations of fixed-income securities determined before the close of regular trading on the NYSE, actions by the Federal Reserve Open Market Committee and other significant trends in U.S. fixed-income markets;
• Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; and
• Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, a natural disaster affecting the issuer's operations or regulatory changes or market developments affecting the issuer's industry.

The Trustees have approved the use of a pricing service to determine the fair value of equity securities traded principally in foreign markets when the Adviser determines that there has been a significant trend in the U.S. equity markets or in index futures trading. For other significant events, the Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Fund will determine the fair value of the investment using another method approved by the Trustees.

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

Investment transactions are accounted for on a trade-date basis. Realized gains and losses from investment transactions are recorded on an identified cost basis. Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Foreign dividends are recorded on the ex-dividend date or when the Fund is informed of the ex-dividend date. Distributions of net investment income 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 may bear distribution services fees, shareholder services fees, account administration fees and certain transfer and dividend disbursing agent fees unique to those classes. 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. The Fund complies with the provisions of Financial Accounting Standards Board (FASB) Interpretation No. 48 (FIN 48), "Accounting for Uncertainty in Income Taxes." As of and during the six months ended January 31, 2009, the Fund did not have a liability for any uncertain tax positions. The Fund recognizes interest and penalties, if any, related to tax liabilities as income tax expense in the Statement of Operations. As of January 31, 2009, tax years 2005 through 2008 remain subject to examination by the Fund's major tax jurisdictions, which include the United States of America and the Commonwealth of Massachusetts.

The Fund may be subject to taxes imposed by governments of countries in which it invests. Such taxes are generally based on either income or gains earned or repatriated. The Fund accrues and applies such taxes to net investment income, net realized gains and net unrealized gains as income and/or gains are earned.

When-Issued and Delayed Delivery Transactions

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

Other

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

3. SHARES OF BENEFICIAL INTEREST

The following tables summarize share activity:

	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Institutional Shares:	Shares			Amount		Shares			Amount
Shares sold	1,063,208		$	11,697,890		2,316,132		$	37,878,322
Shares issued to shareholders in payment of distributions declared	45,381			417,053		306,108			5,075,279
Shares redeemed	(1,623,147	)		(16,925,120	)	(1,569,357	)		(25,328,179	)
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS	(514,558	)	$	(4,810,177	)	1,052,883		$	17,625,422
	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Class A Shares:	Shares			Amount		Shares			Amount
Shares sold	2,714,876		$	28,002,953		4,864,131		$	77,675,376
Shares issued to shareholders in payment of distributions declared	69,892			636,717		864,495			14,186,366
Shares redeemed	(5,316,270	)		(52,798,626	)	(3,920,927	)		(61,812,706	)
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS	(2,531,502	)	$	(24,158,956	)	1,807,699		$	30,049,036
	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Class C Shares:	Shares			Amount		Shares			Amount
Shares sold	661,270		$	6,799,326		1,978,773		$	31,441,573
Shares issued to shareholders in payment of distributions declared	--			--		391,649			6,309,458
Shares redeemed	(1,434,188	)		(14,352,736	)	(1,692,463	)		(26,152,035	)
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS	(772,918	)	$	(7,553,410	)	677,959		$	11,598,996
	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Class K Shares:	Shares			Amount		Shares			Amount
Shares sold	91,780		$	1,012,246		106,180		$	1,692,571
Shares issued to shareholders in payment of distributions declared	644			5,889		1,982			32,723
Shares redeemed	(34,812	)		(354,365	)	(17,383	)		(273,173	)
NET CHANGE RESULTING FROM CLASS K SHARE TRANSACTIONS	57,612		$	663,770		90,779		$	1,452,121
NET CHANGE RESULTING FROM SHARE TRANSACTIONS	(3,761,366	)	$	(35,858,773	)	3,629,320		$	60,725,575

4. FEDERAL TAX INFORMATION

At January 31, 2009, the cost of investments for federal tax purposes was $235,799,466. The net unrealized depreciation of investments for federal tax purposes was $37,525,905. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $7,105,497 and net unrealized depreciation from investments for those securities having an excess of cost over value of $44,631,402.

At July 31, 2008, the Fund had a capital loss carryforward of $3,647,165 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 2016.

5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated MDTA LLC is the Fund's investment adviser (the "Adviser"). The advisory agreement between the Fund and the Adviser provides for an annual fee equal to 0.75% of the Fund's average daily net assets. Prior to December 8, 2008, the Adviser agreed to waive all or a portion of the advisory fee and/or reimburse certain operating expenses (excluding interest, taxes and brokerage commissions) in order to contractually limit the Fund's aggregate annual operating expenses to no more than the following annual percentages for certain classes of the Fund based on average daily net assets:

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

In addition, 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 at any time at its sole discretion. For the six months ended January 31, 2009, the Adviser waived $31,562 of its fee. In addition, an affiliate of the Adviser reimbursed $41,585 of transfer and dividend disbursing agent fees and expenses.

Administrative Fee

Federated Administrative Services (FAS), under the Administrative Services 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. 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, 2009, the net fee paid to FAS was 0.076% of average daily net assets of the Fund. FAS waived $29,467 of its fee.

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 at the following percentages of average daily net assets annually, to compensate FSC:

Share Class Name	Percentage of Average Daily Net Assets of Class
Class A Shares	0.05%
Class C Shares	0.75%
Class K Shares	0.50%

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, 2009, FSC retained $29,228 of fees paid by the Fund. For the six months ended January 31, 2009, the Fund's Class A Shares did not incur a distribution services fee; however it may begin to incur this fee upon approval of the Trustees. On November 15, 2007, the Fund's Trustees approved an amendment to the Plan to reduce the distribution services fee for the Fund's Class A Shares from 0.25% to 0.05%. The amendment to the Plan became effective for the Fund on March 31, 2008.

Sales Charges

Front-end sales charges and contingent deferred sales charges (CDSC) do not represent expenses of the Fund. They are deducted from the proceeds of sales of Fund shares prior to investment or from redemption proceeds prior to remittance, as applicable. For the six months ended January 31, 2009, FSC retained $9,692 in sales charges from the sale of Class A Shares. FSC also retained $3,822 of CDSC relating to redemptions of Class C Shares.

Shareholder Services Fee

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 may voluntarily reimburse the Fund for shareholder services fees. This voluntary reimbursement can be modified or terminated at any time. For the six months ended January 31, 2009, FSSC did not receive any fees paid by the Fund.

General

Certain 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 affiliated mutual funds. For the six months ended January 31, 2009, the Adviser reimbursed $1,211. Transactions with the affiliated company during the six months ended January 31, 2009 were as follows:

Affiliate	Balance of Shares Held 7/31/2008	Purchases/ Additions	Sales/ Reductions	Balance of Shares Held 1/31/2009	Value	Dividend Income
Prime Value Obligations Fund, Institutional Shares	1,891,293	39,941,067	38,655,366	3,176,994	$3,176,994	$35,673

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, 2009, were as follows:

Purchases	$	416,723,922
Sales	$	452,193,789

7. LINE OF CREDIT

The Fund participates in a $100,000,000 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, 2009, there were no outstanding loans. During the six months ended January 31, 2009, the Fund did not utilize the LOC.

8. INTERFUND LENDING

Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (SEC), the Fund, along with other funds advised by subsidiaries of Federated Investors, Inc., may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from other participating affiliated funds. As of January 31, 2009, there were no outstanding loans. During the six months ended January 31, 2009, the program was not utilized.

9. LEGAL PROCEEDINGS

Since October 2003, Federated Investors, Inc. and related entities (collectively, "Federated") and various Federated funds ("Federated Funds") have been 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 Federated Funds from the 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 entities have also been named as defendants in several additional lawsuits that 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 Federated Funds retained the law firm of Dickstein Shapiro LLP to represent the Federated Funds in these lawsuits. Federated and the Federated Funds, and their respective counsel have been defending this litigation, and none of the Federated Funds remains a defendant in any of the lawsuits (though some could potentially receive any recoveries as nominal defendants). 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 Federated 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 Federated Fund redemptions, reduced sales of Federated Fund shares or other adverse consequences for the Federated Funds.

Evaluation and Approval of Advisory
Contract - May 2008

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

The Fund's Board reviewed the Fund's investment advisory contract at meetings held in May 2008. The Board's decision regarding the contract reflects the exercise of its business judgment on whether to continue the existing arrangements.

In this connection, the Federated funds' Board had previously appointed 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 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. The Board considered that evaluation, along with other information, in deciding to approve the advisory contract.

During its review of the contract, the Board considered compensation and benefits received by the Adviser. This included the fees received for services provided to the Fund by other entities in the Federated organization and research services received by the Adviser from brokers that execute Federated fund trades, as well as advisory fees. The Board is also familiar with and considered 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 a fund grows larger; any indirect benefits that may accrue to the Adviser and its affiliates as a result of the Adviser's relationship with a 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 what might be viewed as like services, and the cost 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 for supplying such services. The Board was aware of these factors and was guided by them in its review of the Fund's advisory contract to the extent it considered them to be appropriate and relevant, as discussed further below.

The Board considered and weighed these circumstances in light of its substantial accumulated experience in governing the Fund and working with Federated on matters relating to the Federated funds, and was assisted in its deliberations by independent legal counsel. Throughout the year, the Board has requested and received substantial and detailed information about the Fund and the Federated organization that was in addition to the extensive materials that comprise and accompany the Senior Officer's evaluation. Federated provided much of this information at each regular meeting of the Board, and furnished additional reports in connection with the particular meeting at which the Board's formal review of the advisory contract occurred. Between regularly scheduled meetings, the Board also received information on particular matters as the need arose. Thus, 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 short- and long-term performance (in absolute terms, both on a gross basis and net of expenses, as well as in relationship to its particular investment program and certain competitor or "peer group" funds and/or other benchmarks, as appropriate), and comments on the reasons for performance; the Fund's investment objectives; the Fund's expenses (including the advisory fee 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 use and allocation of brokerage commissions derived from trading the Fund's portfolio securities (if any); and the nature, quality and extent of the advisory and other services provided to the Fund by the Adviser and its affiliates. The Board also considered the preferences and expectations of Fund shareholders 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 performance and 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 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 competes. The Fund's ability to deliver competitive performance when compared to its peer group was a useful indicator of how the Adviser is executing 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 continuation of the advisory contract. In this regard, the Senior Officer has 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 include, but are not limited to, different types of targeted investors; being subject to different laws and regulations; different legal structures; different average account sizes; different associated costs; and different 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, using data supplied by independent fund ranking organizations, regarding the performance of, and fees charged by, other mutual funds, noting his view that comparisons to fund peer groups are highly important in judging the reasonableness of proposed fees. He also observed that certain funds may exhibit important differences in their objectives and management techniques when compared to other funds placed in the same peer group by ranking organizations, noting in this connection that the Fund's quantitative investment program is of such a type.

For both the one- and three-year periods ending December 31, 2007, the Fund's performance was above the median of the relevant peer group. In addition, the Board was informed by the Adviser that, for the same periods, the Fund outperformed its benchmark index for the one-year period and outperformed its benchmark index for the three-year period.

The Board also received financial information about Federated, including reports on the compensation and benefits Federated derived from its relationships with the Federated funds. These reports covered 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 discussed any indirect benefit Federated may derive from its receipt of research services from brokers who execute Federated fund trades. In addition, the Board considered the fact that, in order for a fund to be competitive in the marketplace, Federated and its affiliates frequently waived fees and/or reimbursed expenses and have disclosed to fund investors and/or indicated to the Board their intention to do so in the future, where appropriate.

Federated furnished reports, requested by the Senior Officer, that reported revenues on a fund-by-fund basis and made estimates of the allocation of expenses on a fund-by-fund basis, using allocation methodologies specified by the Senior Officer. The Senior Officer noted that, although they may apply consistent allocation processes, the inherent difficulties in allocating costs (and the unavoidable arbitrary aspects of that exercise) and the lack of consensus on how to allocate those costs may render such allocation reports unreliable. The allocation reports were considered in the analysis by the Board but were determined to be of limited use.

The Board and the Senior Officer also reviewed a report compiled by Federated comparing profitability information for Federated to other publicly held fund management companies. In this regard, the Senior Officer noted the limited availability of such information, but nonetheless concluded that Federated's profit margins did not appear to be excessive and the Board agreed.

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 and long-term investments in areas that support all of the Federated funds, such as personnel and processes for the portfolio management, compliance, and risk management functions; and systems technology; and that the benefits of these efforts (as well as 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 (as discussed in the Senior Officer's evaluation) 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.

It was noted in the materials for the Board meeting that for the Fund's most recently completed fiscal year, the Fund's investment advisory fee, after waivers and expense reimbursements, if any, was above the median of the relevant peer group. The Board reviewed the fees and other expenses of the Fund with the Adviser and was satisfied that the overall expense structure of the Fund remained competitive. In this regard, the Board had been previously advised that, while comparisons to fund peer groups are highly important in judging the reasonableness of advisory fees, the Fund's quantitative focus makes fee and expense comparisons particularly difficult. Although the Fund's advisory fee was above the median of the peer range, the peer group of funds varied widely in their complexity, and the management of the Fund is among the more complex relative to its peers. The Board will continue to monitor advisory fees and other expenses borne by the Fund.

The Senior Officer's evaluation noted his belief that the information and observations contained in his evaluation supported a finding that the proposed management fees are reasonable, and that Federated appeared to provide appropriate administrative services to the Fund for the fees paid. Under these circumstances, no changes were recommended to, and no objection was raised to, the continuation of the Fund's advisory contract. The Board concluded that the nature, quality and scope of services provided the Fund by the Adviser and its affiliates were satisfactory.

In its decision to continue an existing investment advisory contract, the Board was mindful of the potential disruptions of the Fund's operations and various risks, uncertainties and other effects that could occur as a result of a decision to terminate or not renew an advisory contract. In particular, the Board recognized that most shareholders have invested in the Fund on the strength of the Adviser's industry standing and reputation and with the expectation that the Adviser will have a continuing role in providing advisory services to the Fund. Thus, the Board's approval of the advisory contract reflected the fact that it is the shareholders who have effectively selected the Adviser by virtue of having invested in the Fund.

The Board 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. Not all of the factors and considerations identified above were necessarily relevant to the Fund, nor did the Board consider any one of them to be determinative. With respect to the factors that were relevant, the Board's decision to approve the contract reflects its determination that Federated's performance and actions provided a satisfactory basis to support the decision to continue the existing 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 from Federated's website at FederatedInvestors.com. To access this information from the "Products" section of the website, click on the "Prospectuses and Regulatory Reports" link under "Related Information," then select the appropriate link opposite the name of the Fund; or select the name of the Fund and from the Fund's page, click on the "Prospectuses and Regulatory Reports" link. Form N-PX filings are also available at 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" under "Related Information," then selecting the appropriate link opposite the name of the Fund; or select the name of the Fund and from the Fund's page, click on the "Portfolio Holdings" link.

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 (3/09)

Federated is a registered mark of Federated Investors, Inc. 2009 (c)Federated Investors, Inc.

Federated
World-Class Investment Manager

Federated MDT Balanced Fund

Established 2002

A Portfolio of Federated MDT Series

SEMI-ANNUAL SHAREHOLDER REPORT

January 31, 2009

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)		Year Ended July 31,				Period Ended
	1/31/2009		2008		2007	1	7/31/2006	2
Net Asset Value, Beginning of Period	$12.51		$13.75		$13.21		$13.67
Income From Investment Operations:
Net investment income	0.13		0.28	3	0.20	3	0.18	3
Net realized and unrealized gain (loss) on investments, futures contracts, swap contracts and foreign currency transactions	(3.40	)	(1.00	)	1.15		0.46
TOTAL FROM INVESTMENT OPERATIONS	(3.27	)	(0.72	)	1.35		0.64
Less Distributions:
Distributions from net investment income	(0.27	)	(0.17	)	(0.16	)	(0.17	)
Distributions from net realized gain on investments, futures contracts, swap contracts and foreign currency transactions	- --		(0.35	)	(0.65	)	(0.93	)
TOTAL DISTRIBUTIONS	(0.27	)	(0.52	)	(0.81	)	(1.10	)
Net Asset Value, End of Period	$ 8.97		$12.51		$13.75		$13.21
Total Return 4	(26.22	)%	(5.60	)%	10.39	%	4.85	%
Ratios to Average Net Assets:
Net expenses	1.30	% 5	1.31	%	1.40	%	1.50	% 5
Net investment income	2.13	% 5	2.08	%	1.42	%	1.60	% 5
Expense waiver/reimbursement 6	0.09	% 5	0.03	%	0.13	%	0.17	% 5
Supplemental Data:
Net assets, end of period (000 omitted)	$104,152		$153,458		$51,167		$1,962
Portfolio turnover	105	%	158	%	174	%	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)		Year Ended July 31,				Period Ended
	1/31/2009		2008		2007	1	7/31/2006	2
Net Asset Value, Beginning of Period	$12.30		$13.60		$13.13		$13.67
Income From Investment Operations:
Net investment income	0.08		0.19	3	0.09	3	0.10	3
Net realized and unrealized gain (loss) on investments, futures contracts, swap contracts and foreign currency transactions	(3.33	)	(1.00	)	1.14		0.44
TOTAL FROM INVESTMENT OPERATIONS	(3.25	)	(0.81	)	1.23		0.54
Less Distributions:
Distributions from net investment income	(0.17	)	(0.14	)	(0.11	)	(0.15	)
Distributions from net realized gain on investments, futures contracts, swap contracts and foreign currency transactions	- --		(0.35	)	(0.65	)	(0.93	)
TOTAL DISTRIBUTIONS	(0.17	)	(0.49	)	(0.76	)	(1.08	)
Net Asset Value, End of Period	$ 8.88		$12.30		$13.60		$13.13
Total Return 4	(26.47	)%	(6.28	)%	9.50	%	4.04	%
Ratios to Average Net Assets:
Net expenses	2.05	% 5	2.05	%	2.15	%	2.25	% 5
Net investment income	1.38	% 5	1.41	%	0.66	%	0.85	% 5
Expense waiver/reimbursement 6	0.07	% 5	0.03	%	0.16	%	0.17	% 5
Supplemental Data:
Net assets, end of period (000 omitted)	$53,738		$82,033		$15,775		$3,910
Portfolio turnover	105	%	158	%	174	%	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)

	Six Months Ended (unaudited)		Year Ended		Period Ended
	1/31/2009		7/31/2008		7/31/2007	1
Net Asset Value, Beginning of Period	$12.51		$13.77		$14.28
Income From Investment Operations:
Net investment income	0.09		0.20	2	0.05	2
Net realized and unrealized gain (loss) on investments, futures contracts, swap contracts and foreign currency transactions	(3.39	)	(0.98	)	0.26
TOTAL FROM INVESTMENT OPERATIONS	(3.30	)	(0.78	)	0.31
Less Distributions:
Distributions from net investment income	(0.25	)	(0.13	)	(0.17	)
Distributions from net realized gain on investments, futures contracts, swap contracts and foreign currency transactions	- --		(0.35	)	(0.65	)
TOTAL DISTRIBUTIONS	(0.25	)	(0.48	)	(0.82	)
Net Asset Value, End of Period	$ 8.96		$12.51		$13.77
Total Return 3	(26.44	)%	(6.01	)%	2.33	%
Ratios to Average Net Assets:
Net expenses	1.79	% 4	1.77	%	1.90	% 4
Net investment income	1.66	% 4	1.53	%	0.60	% 4
Expense waiver/reimbursement 5	0.05	% 4	0.02	%	0.05	% 4
Supplemental Data:
Net assets, end of period (000 omitted)	$575		$708		$18
Portfolio turnover	105	%	158	%	174	% 6

1 Reflects operations for the period from December 12, 2006 (date of initial public investment) to July 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 Portfolio turnover is calculated at the Fund level. Percentage indicated was calculated for the year ended
July 31, 2007.

See Notes which are an integral part of the Financial Statements

Shareholder Expense Example (unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase or redemption payments; and (2) ongoing costs, including management fees and to the extent applicable, distribution (12b-1) fees and/or 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, 2008 to January 31, 2009.

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 8/1/2008	Ending Account Value 1/31/2009	Expenses Paid During Period 1
Actual:
Class A Shares	$1,000	$ 737.80	$ 5.69
Class C Shares	$1,000	$ 735.30	$ 8.97
Class K Shares	$1,000	$ 735.60	$ 7.83
Hypothetical (assuming a 5% return before expenses):
Class A Shares	$1,000	$1,018.65	$ 6.61
Class C Shares	$1,000	$1,014.87	$10.41
Class K Shares	$1,000	$1,016.18	$ 9.10

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	1.30%
Class C Shares	2.05%
Class K Shares	1.79%

Portfolio of Investments Summary Tables (unaudited)

At January 31, 2009, the Fund's portfolio composition ¹ was as follows:

Security Type	Percentage of Total Net Assets
Domestic Equity Securities	58.2	%
Mortgage-Backed Securities	11.8	%
Corporate Debt Securities	8.8	%
U.S. Treasury and Agency Securities 2	4.8	%
Collateralized Mortgage Obligations	2.8	%
Adjustable Rate Mortgage Securities	1.6	%
Asset-Backed Securities	1.4	%
Foreign Debt Securities	1.4	%
International Equity Securities	1.4	%
Other Securities 3	3.6	%
Cash Equivalents 4	5.9	%
Derivatives Contracts 5	0.2	%
Other Assets and Liabilities--Net 6	(1.9	)%
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 mutual fund) is not treated as a single portfolio security, but rather the Fund is treated as owning a pro rata portion of each security and each other asset and liability owned by the affiliated investment company. Accordingly, the percentages of total net assets shown in the table will differ from those presented on the Portfolio of Investments.

2 Also includes $2,723,685 held in U.S. Treasuries pledged as collateral to ensure the Fund is able to satisfy the obligations of its outstanding futures contracts.

3 Other Securities include exchange-traded funds.

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

5 Based upon net unrealized appreciation (depreciation) or value of the derivative contracts as applicable. Derivative contracts may consist of futures, forwards, options and swaps. The impact of a derivative contract on the Fund's performance may be larger than its unrealized appreciation (depreciation) or value may indicate. In many cases, the notional value or amount of a derivative contract may provide a better indication of the contract's significance to the portfolio. More complete information regarding the Fund's direct investments in derivative contracts, including unrealized appreciation (depreciation), value, and notional values or amounts of such contracts, can be found in the table at the end of the Portfolio of Investments included in this report.

6 Assets, other than investments in securities and derivative contracts, less liabilities. See Statement of Assets and Liabilities.

At January 31, 2009, the Fund's industry composition ⁷ for its equity securities was as follows:

Industry	Percentage of Equity Securities
Electric Utility	6.4%
Biotechnology	5.8%
Property Liability Insurance	4.7%
Software Packaged/Custom	4.7%
Agricultural Chemicals	4.6%
Railroad	4.6%
Ethical Drugs	4.5%
Undesignated Consumer Cyclicals	4.4%
Multi-Line Insurance	3.9%
Miscellaneous Food Products	3.8%
Real Estate Investment Trusts	3.7%
Computers--Midrange	3.4%
Services to Medical Professionals	3.3%
Home Building	2.7%
AT&T Divestiture	2.4%
Department Stores	2.1%
Integrated International Oil	1.9%
Medical Technology	1.9%
Copper	1.8%
Defense Aerospace	1.8%
Diversified Leisure	1.7%
Life Insurance	1.6%
Money Center Bank	1.4%
Regional Bank	1.3%
Computers--High End	1.1%
Airline--Regional	1.0%
Other 8	19.5%
TOTAL	100.0%

7 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.

8 For purposes of this table, industry classifications which constitute less than 1.0% of the Fund's equity securities have been aggregated under the designation "Other."

Portfolio of Investments

January 31, 2009 (unaudited)

Shares					Value
			COMMON STOCKS--59.6%
			Advertising--0.1%
	4,300		Omnicom Group, Inc.	$	111,327
			Agricultural Chemicals--2.8%
	3,200		FMC Corp.		142,784
	69,800		Monsanto Co.		5,308,988
	6,300		Mosaic, Co./The		224,721
			TOTAL		5,676,493
			Agricultural Machinery--0.5%
	400		Bucyrus International		6,200
	31,300		Deere & Co.		1,087,362
			TOTAL		1,093,562
			Airline - Regional--0.6%
	23,300	1	Alaska Air Group, Inc.		614,188
	5,400		SkyWest, Inc.		84,510
	81,900		Southwest Airlines Co.		575,757
			TOTAL		1,274,455
			Aluminum--0.0%
	7,300		Alcoa, Inc.		56,867
			AT&T Divestiture--1.4%
	120,300		AT&T, Inc.		2,961,786
			Auto Original Equipment Manufacturer--0.2%
	8,600	1	Fuel Systems Solutions, Inc.		224,804
	13,900		Johnson Controls, Inc.		173,889
	5,700		Superior Industries International, Inc.		58,539
			TOTAL		457,232
			Auto Rentals--0.0%
	3,100	1	AMERCO		95,325
	Shares				Value
			COMMON STOCKS--continued
			Biotechnology--3.4%
	4,800	1	Affymetrix, Inc.	$	15,264
	11,500	1	Cephalon, Inc.		887,570
	1,200	1	Charles River Laboratories International, Inc.		29,292
	117,500	1	Gilead Sciences, Inc.		5,965,475
	3,500	1	Hospira, Inc.		87,150
	1,300	1	Martek Biosciences Corp.		34,385
	200	1	Myriad Genetics, Inc.		14,914
	9,200	1	Questcor Pharmaceuticals, Inc.		59,340
			TOTAL		7,093,390
			Book Publishing--0.0%
	1,300		Scholastic Corp.		14,170
			Broadcasting--0.3%
	17,400	1	American Tower Systems Corp.		527,916
	3,000	1	DISH Network Corp., Class A		38,520
	11,800		News Corp., Inc. - Class A		75,402
			TOTAL		641,838
			Building Materials--0.1%
	2,400		Ameron, Inc.		119,640
	13,400	1	Owens Corning, Inc.		178,756
			TOTAL		298,396
			Cable TV--0.4%
	20,800	1	Discovery Communications, Inc.		301,600
	28,300		Time Warner, Inc.		264,039
	17,900	1	Viacom, Inc., Class B - New		264,025
			TOTAL		829,664
			Cement--0.1%
	6,300		Texas Industries, Inc.		143,073
			Clothing Stores--0.2%
	7,200	1	Children's Place Retail Stores, Inc.		135,432
	1,800	1	Fossil, Inc.		20,772
	8,000	1	Jos A. Bank Clothiers, Inc.		219,680
			TOTAL		375,884
	Shares				Value
			COMMON STOCKS--continued
			Commodity Chemicals--0.1%
	1,700		Compass Minerals International, Inc.	$	102,289
	2,200		Eastman Chemical Co.		57,090
	10,500		Westlake Chemical Corp.		143,535
			TOTAL		302,914
			Computer Peripherals--0.3%
	7,000		Imation Corp.		68,180
	17,600	1	Sandisk Corp.		201,168
	15,900	1	Synaptics, Inc.		374,763
			TOTAL		644,111
			Computer Services--0.0%
	2,700	1	NCR Corp.		33,885
			Computer Stores--0.1%
	7,000	1	Tech Data Corp.		126,770
			Computers - High End--0.7%
	14,800		International Business Machines Corp.		1,356,420
			Computers - Low End--0.2%
	33,000	1	Dell, Inc.		313,500
			Computers - Midrange--2.0%
	118,800		Hewlett-Packard Co.		4,128,300
			Construction Machinery--0.4%
	25,300		Caterpillar, Inc.		780,505
	3,600		Joy Global, Inc.		74,988
			TOTAL		855,493
			Contracting--0.1%
	2,300		Harsco Corp.		54,556
	1,300	1	IHS, Inc. - Class A		56,940
			TOTAL		111,496
			Copper--1.1%
	87,400		Freeport-McMoRan Copper & Gold, Inc.		2,197,236
	Shares				Value
			COMMON STOCKS--continued
			Crude Oil & Gas Production--0.2%
	3,600	1	Swift Energy Co.	$	55,152
	14,500		W&T Offshore, Inc.		182,265
	4,600	1	Whiting Petroleum Corp.		133,400
			TOTAL		370,817
			Defense Aerospace--1.1%
	49,900		Boeing Co.		2,111,269
	2,700		General Dynamics Corp.		153,171
			TOTAL		2,264,440
			Defense Electronics--0.3%
	6,000	1	FLIR Systems, Inc.		149,820
	8,100		Northrop Grumman Corp.		389,772
			TOTAL		539,592
			Department Stores--1.3%
	13,800		Dillards, Inc., Class A		60,030
	41,200		Penney (J.C.) Co., Inc.		690,100
	18,900	1	Saks, Inc.		47,628
	44,700	1	Sears Holdings Corp.		1,829,124
			TOTAL		2,626,882
			Discount Department Stores--0.1%
	7,900	1	99 Cents Only Stores		66,202
	12,500		Foot Locker, Inc.		92,000
			TOTAL		158,202
			Diversified Leisure--1.0%
	104,200		Carnival Corp.		1,895,398
	13,000	1	Gaylord Entertainment Co.		137,800
	6,500	1	Pinnacle Entertainment, Inc.		44,070
			TOTAL		2,077,268
			Electric & Electronic Original Equipment Manufacturer--0.1%
	8,300		Molex, Inc.		110,971
	Shares				Value
			COMMON STOCKS--continued
			Electronic Testing/Measuring Equipment--0.0%
	2,700	1	Multi-Fineline Electronix, Inc.	$	50,031
			Electric Utility--3.8%
	25,100		American Electric Power Co., Inc.		786,885
	42,700		CMS Energy Corp.		501,725
	111,600		Edison International		3,634,812
	8,500		Idacorp, Inc.		247,435
	9,100		OGE Energy Corp.		224,588
	49,700		Sempra Energy		2,178,848
	13,200		TECO Energy, Inc.		158,532
	6,400		UniSource Energy Corp.		180,736
			TOTAL		7,913,561
			Electronics Stores--0.0%
	3,700		Radioshack Corp.		42,402
			Ethical Drugs--2.6%
	30,400	1	Forest Laboratories, Inc., Class A		761,216
	35,400		Lilly (Eli) & Co.		1,303,428
	100,400		Merck & Co., Inc.		2,866,420
	1,700	1	Noven Pharmaceuticals, Inc.		16,881
	35,400		Pfizer, Inc.		516,132
			TOTAL		5,464,077
			Food Wholesaling--0.0%
	4,500		SUPERVALU, Inc.		78,930
			Furniture--0.0%
	5,700		Furniture Brands International, Inc.		11,685
			Gas Distributor--0.5%
	27,400		Energen Corp.		800,354
	1,300		New Jersey Resources Corp.		52,117
	8,000	1	Southern Union Co.		103,120
			TOTAL		955,591
	Shares				Value
			COMMON STOCKS--continued
			Generic Drugs--0.0%
	1,400	1	Warner Chilcott Ltd - Class A	$	19,250
			Home Building--1.6%
	25,600		Centex Corp.		217,856
	73,100		D.R. Horton, Inc.		435,676
	17,100		KB HOME		182,457
	36,200		Lennar Corp., Class A		278,378
	1,200	1	M/I Schottenstein Homes, Inc.		10,608
	82,700		Pulte Homes, Inc.		839,405
	15,000		Ryland Group, Inc.		234,000
	62,300	1	Toll Brothers, Inc.		1,060,346
			TOTAL		3,258,726
			Home Health Care--0.4%
	9,000	1	Amedisys, Inc.		371,070
	7,500	1	Amerigroup Corp.		209,775
	5,800	1	LHC Group, Inc.		154,338
			TOTAL		735,183
			Home Products--0.1%
	1,200	1	Energizer Holdings, Inc.		57,156
	2,100		Tupperware Brands Corp.		43,176
			TOTAL		100,332
			Hospitals--0.1%
	3,300		Universal Health Services, Inc., Class B		124,905
			Household Appliances--0.1%
	3,700		Whirlpool Corp.		123,691
			Industrial Machinery--0.1%
	3,600		Flowserve Corp.		191,916
			Integrated International Oil--1.1%
	32,300		Chevron Corp.		2,277,796
	Shares				Value
			COMMON STOCKS--continued
			Internet Services--0.3%
	9,500	1	NetFlix, Inc.	$	343,330
	26,900	1	eBay, Inc.		323,338
			TOTAL		666,668
			Leasing--0.0%
	800		GATX Corp.		19,280
			Life Insurance--1.0%
	7,100		Aflac, Inc.		164,791
	8,700		American Equity Investment Life Holding Co.		58,203
	9,000		Delphi Financial Group, Inc., Class A		136,530
	28,200		Old Republic International Corp.		291,024
	1,200		Protective Life Corp.		9,936
	43,400		Torchmark Corp.		1,302,000
			TOTAL		1,962,484
			Long-Term Care Centers--0.0%
	4,900	1	Kindred Healthcare, Inc.		66,493
			Lumber Products--0.1%
	12,900	1	Louisiana-Pacific Corp.		26,832
	3,600		Weyerhaeuser Co.		98,424
			TOTAL		125,256
			Maritime--0.1%
	3,200		Overseas Shipholding Group, Inc.		114,240
			Medical Supplies--0.2%
	600	1	Haemonetics Corp.		35,490
	1,500	1	Immucor, Inc.		41,565
	2,000	1	Kinetic Concepts, Inc.		48,200
	3,700	1	Merit Medical Systems, Inc.		56,943
	6,700	1	PetMed Express, Inc.		96,748
	4,800	1	Quidel Corp.		59,040
	5,600		Steris Corp.		148,960
			TOTAL		486,946
	Shares				Value
			COMMON STOCKS--continued
			Medical Technology--1.1%
	4,800	1	Cantel Medical Corp.	$	71,952
	5,600	1	Cyberonics, Inc.		86,184
	700	1	Edwards Lifesciences Corp.		40,243
	2,500	1	Gen-Probe, Inc.		112,550
	3,700	1	Greatbatch Technologies, Inc.		86,210
	4,400	1	ResMed, Inc.		175,560
	11,000	1	Thoratec Laboratories Corp.		318,670
	28,500	1	Varian Medical Systems, Inc.		1,058,205
	9,900	1	Zimmer Holdings, Inc.		360,360
			TOTAL		2,309,934
			Metal Containers--0.0%
	200	1	Mobile Mini, Inc.		2,528
			Metal Fabrication--0.1%
	1,700	1	RTI International Metals		22,627
	2,000		Timken Co.		29,780
	4,700		Worthington Industries, Inc.		47,282
			TOTAL		99,689
			Miscellaneous Components--0.2%
	12,800		AVX Corp.		116,736
	7,300	1	Cree, Inc.		145,489
	16,600	1	International Rectifier Corp.		226,092
			TOTAL		488,317
			Miscellaneous Food Products--2.2%
	154,600		Archer-Daniels-Midland Co.		4,232,948
	1,000		Corn Products International, Inc.		23,150
	15,100	1	Fresh Del Monte Produce, Inc.		363,910
			TOTAL		4,620,008
			Miscellaneous Machinery--0.0%
	200		Parker-Hannifin Corp.		7,642
	Shares				Value
			COMMON STOCKS--continued
			Miscellaneous Metals--0.0%
	13,400	1	USEC, Inc.	$	68,206
			Money Center Bank--0.8%
	47,400		The Bank of New York Mellon Corp.		1,220,076
	33,000		U.S. Bancorp		489,720
			TOTAL		1,709,796
			Mortgage and Title--0.0%
	10,400		PMI Group, Inc.		14,456
	8,300		Radian Group, Inc.		26,726
	2,900		Stewart Information Services Corp.		43,036
			TOTAL		84,218
			Motion Pictures--0.1%
	12,000		Walt Disney Co.		248,160
			Multi-Industry Capital Goods--0.4%
	4,500	1	Ceradyne, Inc.		102,690
	16,400		General Electric Co.		198,932
	34,000		KBR, Inc.		481,440
	7,800		Textron, Inc.		70,434
			TOTAL		853,496
			Multi-Line Insurance--2.4%
	97,850		Allstate Corp.		2,120,409
	900	1	Amerisafe, Inc.		16,857
	2,400		FBL Financial Group, Inc., Class A		24,744
	11,000		Hanover Insurance Group, Inc.		444,620
	500		Infinity Property & Casualty		19,200
	156,200		UNUMProvident Corp.		2,211,792
			TOTAL		4,837,622
			Office Equipment--0.1%
	6,600		Pitney Bowes, Inc.		146,916
	Shares				Value
			COMMON STOCKS--continued
			Offshore Driller--0.3%
	1,400	1	Oceaneering International, Inc.	$	48,244
	10,300	1	Transocean Ltd.		562,586
			TOTAL		610,830
			Oil Refiner--0.4%
	10,400		Sunoco, Inc.		481,728
	16,800		Western Refining, Inc.		195,888
	6,300		World Fuel Services Corp.		212,751
			TOTAL		890,367
			Oil Service, Explore & Drill--0.1%
	11,000		Patterson-UTI Energy, Inc.		105,160
			Oil Well Supply--0.1%
	3,600		Baker Hughes, Inc.		119,952
	3,900	1	Dril-Quip, Inc.		95,550
			TOTAL		215,502
			Other Communications Equipment--0.0%
	21,700	1	Tellabs, Inc.		89,621
			Packaged Foods--0.1%
	4,300		Hershey Foods Corp.		160,304
			Paper Products--0.3%
	40,200		MeadWestvaco Corp.		467,928
	1,400		Rock-Tenn Co.		43,638
			TOTAL		511,566
			Personal Loans--0.3%
	29,300		Capital One Financial Corp.		464,112
	11,500	1	Ezcorp, Inc., Class A		156,055
			TOTAL		620,167
			Personnel Agency--0.0%
	2,900		Kelly Services, Inc., Class A		26,274
	Shares				Value
			COMMON STOCKS--continued
			Pollution Control--0.1%
	4,400	1	Stericycle, Inc.	$	215,248
			Printing--0.0%
	3,300		Donnelley (R.R.) & Sons Co.		32,208
			Property Liability Insurance--2.8%
	12,350		American Financial Group, Inc. Ohio		209,703
	4,800		Berkley, W. R. Corp.		127,104
	25,900		Chubb Corp.		1,102,822
	3,400		HCC Insurance Holdings, Inc.		79,594
	109,200		The Travelers Cos, Inc.		4,219,488
			TOTAL		5,738,711
			Railroad--2.8%
	52,300		CSX Corp.		1,514,608
	13,000		Norfolk Southern Corp.		498,680
	83,900		Union Pacific Corp.		3,673,981
			TOTAL		5,687,269
			Real Estate Investment Trusts--2.2%
	99,000		Annaly Capital Management, Inc.		1,498,860
	7,950		Boston Properties, Inc.		344,235
	5,700		Equity Residential Properties Trust		136,401
	24,200		HCP Inc.		564,828
	19,000		Nationwide Health Properties, Inc.		485,070
	17,000		Plum Creek Timber Co., Inc.		523,090
	8,000		Public Storage		494,960
	8,400		Simon Property Group, Inc.		361,032
	2,750		Vornado Realty Trust		139,728
			TOTAL		4,548,204
			Recreational Goods--0.1%
	4,200		Callaway Golf Co.		31,962
	11,800	1	WMS Industries, Inc.		262,196
			TOTAL		294,158
	Shares				Value
			COMMON STOCKS--continued
			Recreational Vehicles--0.0%
	7,900		Brunswick Corp.	$	21,962
			Regional Bank--0.8%
	25,400		BB&T Corp.		502,666
	3,300		Central Pacific Financial Corp.		22,209
	10,500		East West Bancorp, Inc.		99,645
	33,900		Marshall & Ilsley Corp.		193,569
	4,300		PNC Financial Services Group		139,836
	21,000		Popular, Inc.		57,540
	5,600		South Financial Group, Inc.		10,528
	41,100		SunTrust Banks, Inc.		503,886
	3,700		Whitney Holding Corp.		48,063
	4,000		Wintrust Financial Corp.		53,480
			TOTAL		1,631,422
			Restaurant--0.2%
	900	1	CEC Entertainment, Inc.		21,006
	4,000	1	Green Mountain Coffee, Inc.		153,040
	4,800	1	Panera Bread Co.		225,504
			TOTAL		399,550
			Roofing & Wallboard--0.1%
	1,200	1	Beacon Roofing Supply, Inc.		15,276
	21,200	1	U.S.G. Corp.		138,012
			TOTAL		153,288
			Rubber--0.0%
	7,300		Cooper Tire & Rubber Co.		34,091
			Savings & Loan--0.1%
	11,700		Astoria Financial Corp.		106,236
	14,300		Hudson City Bancorp, Inc.		165,880
			TOTAL		272,116
	Shares				Value
			COMMON STOCKS--continued
			Securities Brokerage--0.3%
	7,100	1	Interactive Brokers Group, Inc., Class A	$	108,417
	2,000	1	Knight Capital Group, Inc. - A		36,060
	8,800	1	Labranche & Co., Inc.		60,368
	19,200		Raymond James Financial, Inc.		355,392
			TOTAL		560,237
			Semiconductor Distribution--0.4%
	22,700	1	Arrow Electronics, Inc.		432,889
	10,100	1	Avnet, Inc.		200,182
	7,200	1	FormFactor, Inc.		112,032
	3,100	1	Tyler Technologies, Inc.		39,029
			TOTAL		784,132
			Semiconductor Manufacturing--0.2%
	4,500	1	ATMI, Inc.		60,795
	62,500	1	Micron Technology, Inc.		232,500
	4,300	1	Plexus Corp.		62,178
			TOTAL		355,473
			Semiconductor Manufacturing Equipment--0.2%
	25,700	1	Novellus Systems, Inc.		354,403
			Services to Medical Professionals--2.0%
	2,900	1	Coventry Health Care, Inc.		43,877
	5,800	1	Genoptix, Inc.		196,620
	31,600	1	Humana, Inc.		1,198,588
	3,700	1	Medco Health Solutions, Inc.		166,241
	5,400		Omnicare, Inc.		150,984
	45,200		UnitedHealth Group, Inc.		1,280,516
	25,200	1	Wellpoint, Inc.		1,044,540
			TOTAL		4,081,366
	Shares				Value
			COMMON STOCKS--continued
			Shoes--0.1%
	4,600	1	Deckers Outdoor Corp.	$	240,304
	4,000	1	Genesco, Inc.		61,600
			TOTAL		301,904
			Soft Drinks--0.0%
	4,500		The Pepsi Bottling Group, Inc.		86,805
			Software Packaged/Custom--2.8%
	45,500	1	Computer Sciences Corp.		1,676,220
	10,200	1	DST Systems, Inc.		324,054
	41,400	1	F5 Networks, Inc.		917,838
	156,200		Microsoft Corp.		2,671,020
	5,700	1	Solera Holdings, Inc.		137,313
			TOTAL		5,726,445
			Specialty Chemicals--0.3%
	4,000		Albemarle Corp.		89,000
	3,500		Cabot Corp.		46,760
	2,500		Chemed Corp.		100,325
	3,100		Cytec Industries, Inc.		63,364
	2,900		Lubrizol Corp.		98,948
	9,100	1	OM Group, Inc.		176,358
			TOTAL		574,755
			Specialty Retailing--0.1%
	16,100	1	CarMax, Inc.		133,147
	4,600		Pep Boys-Manny Moe & Jack		13,294
	18,700		Williams-Sonoma, Inc.		148,104
			TOTAL		294,545
			Stainless Steel Producer--0.3%
	28,800		Allegheny Technologies, Inc.		636,192
			Surveillance-Detection--0.0%
	1,900		Diebold, Inc.		47,082
	Shares				Value
			COMMON STOCKS--continued
			Technology Services--0.1%
	7,200	1	Stanley, Inc.	$	217,872
			Telecommunication Equipment & Services--0.1%
	64,900		Motorola, Inc.		287,507
			Tools and Hardware--0.0%
	2,200		Snap-On, Inc.		66,396
			Toys & Games--0.1%
	9,400	1	JAKKS Pacific, Inc.		172,396
			Truck Manufacturing--0.1%
	6,200		Cummins, Inc.		148,676
			Trucking--0.3%
	500		Arkansas Best Corp.		11,695
	16,600		Ryder Systems, Inc.		560,748
			TOTAL		572,443
			Undesignated Consumer Cyclicals--2.6%
	29,800	1	Alliance Data Systems Corp.		1,239,382
	2,900	1	American Public Education, Inc.		113,564
	31,600	1	Corinthian Colleges, Inc.		590,288
	3,700		DeVRY, Inc.		198,246
	24,200	1	ITT Educational Services, Inc.		2,964,742
	4,600		Speedway Motorsports, Inc.		66,424
	1,100		Strayer Education, Inc.		238,073
			TOTAL		5,410,719
			Undesignated Consumer Staples--0.0%
	2,800	1	USANA, Inc.		64,988
			Uniforms--0.0%
	800		Unifirst Corp.		20,992
			Water Utility--0.1%
	6,300		Aqua America, Inc.		130,662
			TOTAL COMMON STOCKS (IDENTIFIED COST $142,478,094)		122,761,742
Principal Amount					Value
			ASSET-BACKED SECURITIES--1.4%
$	400,000		Banc of America Commercial Mortgage, Inc. 2007-1 A2, 5.381%, 1/15/2049	$	305,173
	250,000		Banc of America Commercial Mortgage, Inc. 2007-4 A4, 5.74%, 2/10/2051		151,189
	1,200,000		Citigroup/Deutsche Bank Commercial Mortgage 2007-CD5, Series 2007 CD5, 5.886%, 11/15/2044		724,670
	398,909		Community Program Loan Trust 1987-A, Series 1987-A, 4.500%, 10/01/2018		400,087
	1,000,000		Credit Suisse Mortgage Capital Certificate 2006-C4, Series 2006-C4, 5.509%, 09/15/2039		421,913
	39,615		CS First Boston Mortgage Securities Corp. 2002-HE4 AF, 5.51%, 8/25/2032		27,365
	100,000		Merrill Lynch Mortgage Trust 2008-C1 AM, 6.266%, 2/12/2051		40,719
	150,000		Merrill Lynch Mortgage Trust 2008-C1, Series 2008-C1, 5.425%, 02/12/2051		106,821
	715,000		Merrill Lynch/Countrywide Commercial Mortgage 2007-6, Series 2007-6, 5.331%, 03/12/2051		537,212
	250,000		Merrill Lynch/Countrywide Commercial Mortgage 2007-6, Series 2007-6, 5.485%, 03/12/2051		149,128
	140,000		Morgan Stanley Capital I 2006-IQ12 A4, 5.332%, 12/15/2043		91,215
			TOTAL ASSET-BACKED SECURITIES (IDENTIFIED COST $4,541,864)		2,955,492
			COLLATERALIZED MORTGAGE OBLIGATIONS--0.6%
	4,077		Bear Stearns Mortgage Securities, Inc. 1997-6 1A, 6.637%, 3/25/2031		3,835
	410,000		Citigroup/Deutsche Bank Commercial Mortgage 2007-CD4 A3, 5.293%, 12/11/2049		260,132
	12,925		Federal Home Loan Mortgage Corp. REMIC 1311 K, 7.000%, 7/15/2022		12,907
	23,085		Federal Home Loan Mortgage Corp. REMIC 1384 D, 7.000%, 9/15/2022		23,053
	21,374		Federal Home Loan Mortgage Corp. REMIC 1595 D, 7.000%, 10/15/2013		21,668
	70,696		Federal Home Loan Mortgage Corp. REMIC 2497 JH, 6.000%, 9/15/2032		72,751
	55,257		Federal National Mortgage Association REMIC 1993-113 SB, 9.748%, 7/25/2023		62,353
	6,695		Federal National Mortgage Association REMIC 2001-37 GA, 8.000%, 7/25/2016		7,156
	14,963		Federal National Mortgage Association REMIC 2003-35 UC, 3.750%, 5/25/2033		14,266
	6,977		Government National Mortgage Association REMIC 1999-29 PB, 7.250%, 7/16/2028		7,049
Principal Amount					Value
			COLLATERIZED MORTGAGE OBLIGATIONS--continued
$	43,522		Government National Mortgage Association REMIC 2002-17 B, 6.000%, 3/20/2032	$	44,640
	350,000		JPMorgan Chase Commercial Mortgage Securities 2007-CB19 A2, 5.746%, 2/12/2049		261,303
	675,000		LB-UBS Commercial Mortgage Trust 2008-C1 A2, 6.149%, 4/15/2041		416,124
			TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (IDENTIFIED COST $1,708,236)		1,207,237
			CORPORATE BONDS--7.9%
			Basic Industry - Chemicals--0.2%
	100,000		Albemarle Corp., Sr. Note, 5.100%, 02/01/2015		82,726
	85,000		Du Pont (E.I.) de Nemours & Co., 5.000%, 01/15/2013		87,979
	30,000		Du Pont (E.I.) de Nemours & Co., 6.000%, 07/15/2018		31,131
	70,000		Praxair, Inc., 4.625%, 03/30/2015		72,679
	75,000		Rohm & Haas Co., 6.000%, 09/15/2017		62,916
			TOTAL		337,431
			Basic Industry - Metals & Mining--0.2%
	50,000		Alcan, Inc., 5.000%, 06/01/2015		39,399
	85,000		Alcoa, Inc., Note, 5.550%, 02/01/2017		58,993
	10,000		ArcelorMittal, 6.125%, 6/01/2018		7,862
	150,000		BHP Finance (USA), Inc., Company Guarantee, 5.250%, 12/15/2015		140,044
	50,000		Newmont Mining Corp., Company Guarantee, 5.875%, 04/01/2035		34,165
	85,000		Rio Tinto Finance USA Ltd., 5.875%, 07/15/2013		74,885
	85,000		Rio Tinto Finance USA Ltd., 6.500%, 07/15/2018		71,634
			TOTAL		426,982
			Basic Industry - Paper--0.0%
	50,000		Weyerhaeuser Co., Deb., 7.375%, 03/15/2032		34,924
			Capital Goods - Aerospace & Defense--0.1%
	50,000	2,3	BAE Systems Holdings, Inc., 5.200%, 08/15/2015		45,816
	125,000		Boeing Co., Note, 5.125%, 02/15/2013		127,760
	30,000		Lockheed Martin Corp., Sr. Note, 4.121%, 03/14/2013		30,760
			TOTAL		204,336
Principal Amount					Value
			CORPORATE BONDS--continued
			Capital Goods - Building Materials--0.0%
$	70,000		RPM International, Inc., 6.500%, 02/15/2018	$	60,954
			Capital Goods - Diversified Manufacturing--0.4%
	60,000		Dover Corp., Note, 5.450%, 03/15/2018		61,372
	30,000		Emerson Electric Co., 4.875%, 10/15/2019		29,725
	100,000		Emerson Electric Co., Unsecd. Note, 5.750%, 11/01/2011		105,095
	160,000		Harsco Corp., 5.750%, 05/15/2018		162,495
	80,000		Hubbell, Inc., 5.950%, 06/01/2018		76,802
	60,000		Ingersoll-Rand Global Holding Co. Ltd., 6.875%, 08/15/2018		56,794
	90,000		Roper Industries, Inc., 6.625%, 08/15/2013		89,374
	140,000		Textron Financial Corp., 5.400%, 04/28/2013		104,219
	40,000	2,3	Textron Financial Corp., Jr. Sub. Note, 6.000%, 02/15/2067		8,755
	130,000		Tyco Electronics Group SA, 5.950%, 01/15/2014		118,633
			TOTAL		813,264
			Capital Goods - Packaging--0.0%
	20,000		Pactiv Corp., 6.40%, 1/15/2018		16,273
			Communications - Media & Cable--0.2%
	100,000		Comcast Corp., 7.125%, 06/15/2013		103,205
	200,000		Comcast Corp., Company Guarantee, 6.500%, 01/15/2017		203,169
	75,000		Cox Communications, Inc., Unsecd. Note, 5.450%, 12/15/2014		69,196
	25,000		Time Warner Cable, Inc., Sr. Unsecd. Note, 5.850%, 05/01/2017		23,368
			TOTAL		398,938
			Communications - Media Noncable--0.1%
	75,000		News America Holdings, Inc., Company Guarantee, 8.000%, 10/17/2016		75,803
	75,000		News America Holdings, Inc., Sr. Deb., 9.250%, 02/01/2013		79,855
			TOTAL		155,658
			Communications - Telecom Wireless--0.3%
	150,000		AT&T Wireless Services, Inc., 8.750%, 03/01/2031		176,739
	100,000		America Movil S.A.B. de C.V., Note, 5.750%, 01/15/2015		94,200
	100,000		Cingular Wireless LLC, Sr. Note, 6.500%, 12/15/2011		105,737
Principal Amount					Value
			CORPORATE BONDS--continued
			Communications - Telecom Wireless-continued
$	60,000		Vodafone Group PLC, 5.350%, 02/27/2012	$	61,325
	100,000		Vodafone Group PLC, Note, 5.625%, 02/27/2017		98,234
			TOTAL		536,235
			Communications - Telecom Wirelines--0.2%
	50,000		Embarq Corp., 6.738%, 06/01/2013		47,544
	100,000		Telecom Italia Capital, Note, 4.875%, 10/01/2010		96,587
	40,000		Telefonica SA, Company Guarantee, 7.045%, 06/20/2036		44,658
	150,000		Telefonica SA, Sr. Note, 5.855%, 02/04/2013		156,588
	125,000		Verizon Global Funding, Note, 7.250%, 12/01/2010		132,568
			TOTAL		477,945
			Consumer Cyclical - Automotive--0.1%
	100,000	2,3	American Honda Finance Corp., 4.625%, 04/02/2013		94,166
	75,000		DaimlerChrysler North America Holding Corp., 6.500%, 11/15/2013		71,643
	150,000		DaimlerChrysler North America Holding Corp., Note, 4.875%, 06/15/2010		145,028
			TOTAL		310,837
			Consumer Cyclical - Entertainment--0.0%
	100,000		Time Warner, Inc., 5.500%, 11/15/2011		97,748
			Consumer Cyclical - Lodging--0.0%
	100,000		Wyndham Worldwide Corp., Sr. Unsecd. Note, 6.000%, 12/01/2016		49,587
			Consumer Cyclical - Retailers--0.3%
	70,000		Best Buy Co., Inc., 6.750%, 07/15/2013		63,601
	190,000		CVS Caremark Corp., Sr. Unsecd. Note, 5.750%, 06/01/2017		194,563
	80,000		Costco Wholesale Corp., 5.300%, 03/15/2012		85,130
	85,000		JC Penney Corp., Inc., Sr. Unsecd. Note, 5.750%, 02/15/2018		60,102
	25,000		Kohl's Corp., Unsecd. Note, 7.375%, 10/15/2011		24,950
	100,000		Target Corp., 5.875%, 03/01/2012		105,217
	50,000		Target Corp., Note, 5.875%, 07/15/2016		50,190
	40,000		Wal-Mart Stores, Inc., 6.200%, 04/15/2038		43,483
			TOTAL		627,236
Principal Amount					Value
			CORPORATE BONDS--continued
			Consumer Non-Cyclical Food/Beverage--0.3%
$	100,000		Bottling Group LLC, Note, 5.500%, 4/01/2016	$	104,237
	90,000		General Mills, Inc., Note, 5.700%, 02/15/2017		92,412
	135,000		Kellogg Co., 4.250%, 03/06/2013		138,547
	40,000		Kellogg Co., Sr. Unsub., 5.125%, 12/03/2012		42,513
	75,000		Kraft Foods, Inc., Note, 5.250%, 10/01/2013		77,948
	10,000		Kraft Foods, Inc., Note, 6.250%, 06/01/2012		10,740
	75,000		PepsiCo, Inc., 4.650%, 02/15/2013		80,683
			TOTAL		547,080
			Consumer Non-Cyclical Health Care--0.2%
	40,000		Baxter International, Inc., 6.250%, 12/01/2037		42,564
	100,000		Medtronic, Inc., Note, Series B, 4.375%, 09/15/2010		102,204
	190,000		Quest Diagnostics, Inc., Sr. Unsecd. Note, 6.400%, 07/01/2017		174,476
			TOTAL		319,244
			Consumer Non-Cyclical Pharmaceuticals--0.2%
	60,000		Abbott Laboratories, 5.150%, 11/30/2012		64,219
	125,000		Eli Lilly & Co., Unsecd. Note, 6.570%, 01/01/2016		137,120
	100,000		Genentech, Inc., Note, 4.750%, 07/15/2015		98,403
	100,000		Pharmacia Corp., Sr. Deb., 6.500%, 12/01/2018		112,702
			TOTAL		412,444
			Consumer Non-Cyclical Products--0.1%
	75,000		Philips Electronics NV, 5.750%, 03/11/2018		70,708
	80,000		Whirlpool Corp., 5.500%, 03/01/2013		69,617
			TOTAL		140,325
			Consumer Non-Cyclical Supermarkets--0.0%
	40,000		Kroger Co., Bond, 6.900%, 04/15/2038		40,730
	50,000		Sysco Corp., Sr. Unsecd. Note, 4.200%, 02/12/2013		49,907
			TOTAL		90,637
			Consumer Non-Cyclical Tobacco--0.0%
	90,000		Philip Morris International, Inc., 5.650%, 05/16/2018		90,312
Principal Amount					Value
			CORPORATE BONDS--continued
			Energy - Independent--0.2%
$	105,000		Anadarko Petroleum Corp., Sr. Unsecd. Note, 5.950%, 09/15/2016	$	94,775
	50,000		Canadian Natural Resources Ltd., 4.900%, 12/01/2014		43,425
	75,000		XTO Energy, Inc., 6.375%, 06/15/2038		66,826
	60,000		XTO Energy, Inc., 6.750%, 08/01/2037		56,543
	65,000		XTO Energy, Inc., Sr. Unsecd. Note, 6.250%, 08/01/2017		63,321
			TOTAL		324,890
			Energy - Integrated--0.1%
	200,000		Husky Oil Ltd., Deb., 7.550%, 11/15/2016		185,502
			Energy - Oil Field Services--0.0%
	80,000		Weatherford International Ltd., 6.000%, 03/15/2018		64,500
			Energy - Refining--0.1%
	100,000		Valero Energy Corp., 6.875%, 04/15/2012		100,341
	115,000		Valero Energy Corp., 7.500%, 04/15/2032		96,714
	35,000		Valero Energy Corp., Note, 4.750%, 04/01/2014		32,487
			TOTAL		229,542
			Financial Institution - Banking--0.6%
	125,000	2,3	Barclays Bank PLC, 5.926%, 12/31/2049		48,125
	155,000		Citigroup, Inc., Sr. Unsecd. Note, 6.875%, 03/05/2038		142,264
	150,000		Credit Suisse First Boston USA, Inc., 5.125%, 01/15/2014		144,407
	100,000		JPMorgan Chase & Co., Sub. Note, 5.125%, 09/15/2014		95,113
	200,000		PNC Funding Corp., Sub. Note, 5.625%, 02/01/2017		187,924
	100,000		PNC Funding Corp., Sub. Note, 7.500%, 11/01/2009		100,037
	100,000		Popular North America, Inc., 5.650%, 04/15/2009		99,422
	200,000		Wachovia Bank N.A., 4.800%, 11/01/2014		185,018
	30,000		Wachovia Corp., 5.750%, 02/01/2018		29,632
	100,000		Wells Fargo Bank, N.A., Sub. Note, 6.450%, 02/01/2011		103,601
	100,000		Wilmington Trust Corp., Sub. Note, 8.500%, 04/02/2018		107,841
	75,000		Zions Bancorp, Sub. Note, 5.500%, 11/16/2015		53,138
			TOTAL		1,296,522
Principal Amount					Value
			CORPORATE BONDS--continued
			Financial Institution - Brokerage--0.7%
$	130,000		Bear Stearns Cos., Inc., Sr. Unsecd. Note, 7.250%, 02/01/2018	$	138,476
	250,000		Blackrock, Inc., 6.250%, 09/15/2017		245,037
	120,000		Eaton Vance Corp., 6.500%, 10/02/2017		104,225
	150,000	2,3	FMR Corp., Bond, 7.570%, 06/15/2029		139,038
	25,000		Goldman Sachs Group, Inc., 6.125%, 02/15/2033		21,264
	150,000		Goldman Sachs Group, Inc., Note, 5.250%, 10/15/2013		143,654
	170,000		Goldman Sachs Group, Inc., Sr. Note, 6.150%, 04/01/2018		155,790
	100,000		Invesco Ltd., Note, 4.500%, 12/15/2009		93,400
	75,000		Janus Capital Group, Inc., Sr. Note, 6.250%, 06/15/2012		57,092
	80,000		Janus Capital Group, Inc., Sr. Note, 6.700%, 06/15/2017		51,214
	85,000		Merrill Lynch & Co., Inc., Note, 4.125%, 09/10/2009		84,743
	100,000		Morgan Stanley, Note, 4.000%, 01/15/2010		99,619
	35,000		Morgan Stanley, Sr. Unsecd. Note, 5.950%, 12/28/2017		30,473
	70,000		Morgan Stanley, Sr. Unsecd. Note, 6.000%, 04/28/2015		63,943
	110,000		Morgan Stanley, Sr. Unsecd. Note, 6.625%, 04/01/2018		101,157
			TOTAL		1,529,125
			Financial Institution - Finance Noncaptive--0.6%
	100,000		American Express Co., 4.750%, 06/17/2009		100,503
	100,000		American Express Co., 4.875%, 07/15/2013		93,957
	150,000		American Express Credit Corp., 5.875%, 05/02/2013		146,456
	100,000		American General Finance Corp., 4.000%, 03/15/2011		55,125
	120,000		Capital One Capital IV, 6.745%, 02/17/2037		60,305
	90,000		Capmark Financial Group, Inc., Company Guarantee, Series WI, 6.300%, 05/10/2017		29,768
	240,000		General Electric Capital Corp., 5.625%, 05/01/2018		222,179
	200,000		General Electric Capital Corp., Note, 4.875%, 03/04/2015		190,050
	100,000		HSBC Finance Capital Trust IX, Note, 5.911%, 11/30/2035		54,391
	200,000	2,3	ILFC E-Capital Trust I, 5.900%, 12/21/2065		63,012
	100,000		International Lease Finance Corp., 4.875%, 09/01/2010		84,625
	100,000		International Lease Finance Corp., 6.625%, 11/15/2013		73,190
			TOTAL		1,173,561
Principal Amount					Value
			CORPORATE BONDS--continued
			Financial Institution - Insurance - Health--0.1%
$	75,000		Aetna US Healthcare, 5.750%, 06/15/2011	$	74,565
	60,000		CIGNA Corp., 6.350%, 03/15/2018		53,533
	100,000		UnitedHealth Group, Inc., Bond, 6.000%, 02/15/2018		95,345
			TOTAL		223,443
			Financial Institution - Insurance - Life--0.2%
	200,000		AXA-UAP, Sub. Note, 8.600%, 12/15/2030		152,449
	85,000	2,3	Pacific Life Global Funding, Note, 5.150%, 04/15/2013		83,058
	120,000		Prudential Financial, Inc., 5.150%, 01/15/2013		112,947
	85,000		Prudential Financial, Inc., 6.625%, 12/01/2037		65,074
			TOTAL		413,528
			Financial Institution - Insurance - P&C--0.4%
	90,000		ACE INA Holdings, Inc., 5.600%, 05/15/2015		84,510
	91,000		ACE INA Holdings, Inc., Sr. Note, 5.700%, 02/15/2017		84,886
	100,000		Allstate Corp., Unsecd. Note, 5.000%, 08/15/2014		94,639
	75,000		CNA Financial Corp., 6.500%, 08/15/2016		54,330
	20,000		Chubb Corp., Sr. Note, 5.750%, 05/15/2018		19,373
	100,000	2,3	Liberty Mutual Group, Inc., Unsecd. Note, 5.750%, 03/15/2014		83,025
	100,000		The Travelers Cos., Inc., Sr. Unsecd. Note, 5.500%, 12/01/2015		97,428
	500,000	2,3	ZFS Finance USA Trust I, Jr. Sub. Note, 6.150%, 12/15/2065		262,500
			TOTAL		780,691
			Financial Institution - REITs--0.1%
	40,000		AMB Property LP, 6.300%, 06/01/2013		25,728
	20,000		Equity One, Inc., Bond, 6.000%, 09/15/2017		12,994
	75,000		Liberty Property LP, 6.625%, 10/01/2017		53,960
	100,000		Prologis, Sr. Note, 5.500%, 04/01/2012		62,614
	95,000		Simon Property Group LP, 6.125%, 05/30/2018		71,918
			TOTAL		227,214
			Technology--0.5%
	40,000		BMC Software, Inc., 7.250%, 06/01/2018		35,710
	60,000		Cisco Systems, Inc., Sr. Unsecd. Note, 5.500%, 02/22/2016		64,362
	200,000		Dell Computer Corp., Deb., 7.100%, 04/15/2028		184,852
Principal Amount					Value
			CORPORATE BONDS--continued
			Technology--continued
$	75,000		Dun & Bradstreet Corp., Sr. Unsecd. Note, 5.500%, 03/15/2011	$	75,758
	80,000		Fiserv, Inc., Sr. Note, 6.800%, 11/20/2017		69,332
	65,000		Harris Corp., 5.950%, 12/01/2017		55,287
	100,000		Hewlett-Packard Co., Note, 5.400%, 03/01/2017		104,060
	125,000		Hewlett-Packard Co., Note, 6.500%, 07/01/2012		138,314
	100,000		IBM Corp., Deb., 8.375%, 11/01/2019		123,142
	70,000		KLA-Tencor Corp., 6.900%, 05/01/2018		53,344
	150,000		Oracle Corp., 6.500%, 04/15/2038		163,775
			TOTAL		1,067,936
			Transportation - Airlines--0.1%
	75,000		Southwest Airlines Co., 6.500%, 03/01/2012		70,222
	50,000		Southwest Airlines Co., Deb., 7.375%, 03/01/2027		38,946
			TOTAL		109,168
			Transportation - Railroads--0.2%
	75,000		Burlington Northern Santa Fe Corp., 4.875%, 01/15/2015		71,760
	100,000		Canadian Pacific RR, 7.125%, 10/15/2031		78,341
	100,000		Norfolk Southern Corp., Note, 6.750%, 02/15/2011		103,086
	100,000		Union Pacific Corp., 4.875%, 01/15/2015		94,626
			TOTAL		347,813
			Transportation - Services--0.1%
	90,000	2,3	Enterprise Rent-A-Car USA Finance Co., 6.375%, 10/15/2017		54,432
	100,000		FedEx Corp., Note, 5.500%, 08/15/2009		101,256
			TOTAL		155,688
			Utility - Electric--0.8%
	150,000		Alabama Power Co., 5.700%, 02/15/2033		137,544
	100,000		Cleveland Electric Illuminating Co., Sr. Unsecd. Note, 5.950%, 12/15/2036		72,954
	105,000		Commonwealth Edison Co., 1st Mtg. Bond, 5.800%, 03/15/2018		100,026
	100,000		Consolidated Edison Co., Sr. Unsecd. Note, 5.500%, 09/15/2016		99,614
	60,000	2,3	Electricite De France, 5.500%, 01/26/2014		62,084
	100,000		Exelon Generation Co. LLC, Note, 5.350%, 01/15/2014		94,497
	100,000		FPL Group Capital, Inc., Unsecd. Note, 5.350%, 06/15/2013		103,555
Principal Amount					Value
			CORPORATE BONDS--continued
			Utility - Electric--continued
$	100,000		FirstEnergy Corp., 6.450%, 11/15/2011	$	99,784
	48,018	2,3	Great River Energy, 1st Mtg. Note, 5.829%, 07/01/2017		44,773
	40,000		National Rural Utilities Cooperative Finance Corp., 5.450%, 02/01/2018		38,290
	90,000		National Rural Utilities Cooperative Finance Corp., Collateral Trust, 5.500%, 07/01/2013		92,032
	80,000		Northern States Power Co., MN, 1st Mtg. Bond, 5.250%, 03/01/2018		78,311
	50,000		PPL Energy Supply LLC, Sr. Unsecd. Note, 6.000%, 12/15/2036		32,788
	100,000		PSEG Power LLC, Company Guarantee, 7.750%, 04/15/2011		104,081
	75,000		PSI Energy, Inc., Bond, 6.050%, 06/15/2016		72,372
	50,000		Pacific Gas & Electric Co., 6.050%, 03/01/2034		51,396
	100,000		Pacific Gas & Electric Co., Unsecd. Note, 4.200%, 03/01/2011		99,828
	90,000		Union Electric Co., 6.000%, 04/01/2018		85,463
	90,000		Virginia Electric & Power Co., Sr. Unsecd. Note, 5.100%, 11/30/2012		91,310
			TOTAL		1,560,702
			Utility - Natural Gas Distributor--0.0%
	40,000		Atmos Energy Corp., 5.125%, 01/15/2013		37,877
			Utility - Natural Gas Pipelines--0.2%
	150,000		Consolidated Natural Gas Co., 5.000%, 12/01/2014		141,453
	75,000		Duke Capital Corp., Sr. Note, 6.250%, 02/15/2013		75,086
	40,000		Enbridge, Inc., Sr. Note, 5.600%, 04/01/2017		32,672
	100,000		Kinder Morgan Energy Partners LP, Sr. Unsecd. Note, 5.800%, 03/15/2035		83,871
			TOTAL		333,082
			TOTAL CORPORATE BONDS (IDENTIFIED COST $18,173,071)		16,209,174
			GOVERNMENT/AGENCY--0.0%
			Sovereign--0.0%
	75,000		United Mexican States, 6.625%, 03/03/2015 (IDENTIFIED COST $80,766)		78,750
			GOVERNMENT AGENCIES--3.3%
	750,000		Federal Home Loan Mortgage Corp., 5.500%, 7/18/2016		848,135
	5,500,000		Federal National Mortgage Association, 4.375%, 3/15/2013		5,932,622
			TOTAL GOVERNMENT AGENCIES (IDENTIFIED COST $6,460,780)		6,780,757
Principal Amount or Shares					Value
			MORTGAGE-BACKED SECURITIES--0.0%
$	15,115		Federal National Mortgage Association Pool 408761, 7.000%, 12/1/2012	$	15,598
	9,858		Federal National Mortgage Association Pool 512255, 7.500%, 9/1/2014		10,325
	19,433		Federal National Mortgage Association Pool 609554, 7.500%, 10/1/2016		20,457
			TOTAL MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $45,830)		46,380
			U.S. TREASURY--1.5%
	250,000		United States Treasury Bill, 0.190%, 7/2/2009		249,692
	1,300,000	4	United States Treasury Bond, 4.500%, 5/15/2038		1,511,555
	1,000,000	4	United States Treasury Note, 2.750%, 10/31/2013		1,044,961
	150,000	4	United States Treasury Note, 4.125%, 5/15/2015		167,169
			TOTAL U.S. TREASURY (IDENTIFIED COST $3,088,237)		2,973,377
			EXCHANGE-TRADED FUND--3.6%
	193,000		iShares MSCI EAFE Index Fund (IDENTIFIED COST $7,743,224)		7,469,100
			MUTUAL FUNDS--22.2% 5
	23,540		Emerging Markets Fixed Income Core Fund		409,010
	3,016,597		Federated Mortgage Core Portfolio		29,803,974
	914,135		High Yield Bond Portfolio		4,396,991
	11,190,400	6	Prime Value Obligations Fund, Institutional Shares, 1.75%		11,190,400
			TOTAL MUTUAL FUNDS (IDENTIFIED COST $46,524,561)		45,800,375
			TOTAL INVESTMENTS--100.1% (IDENTIFIED COST $230,844,663) 7		206,282,384
			OTHER ASSETS AND LIABILITIES - NET--(0.1)% 8		(166,563	)
			TOTAL NET ASSETS--100%	$	206,115,821

At January 31, 2009, the Fund had the following outstanding futures contracts:

	Description	Number of Contracts	Notional Value	Expiration Date	Unrealized Depreciation
1	Euro-Bond Long Futures	19	$ 2,325,030	March 2009	$ (10,948)
1	United States Treasury Bond 30-Year Long Futures	29	$ 3,674,391	March 2009	$ (68,517)
1	United States Treasury Note 2-Year Short Futures	60	$13,057,500	March 2009	$ (27,534)
	TOTAL UNREALIZED DEPRECIATION ON FUTURES CONTRACTS				$(106,999)

At January 31, 2009, the Fund had the following open swap contracts:

Credit Default Swap Counterparty	Reference Entity	Buy/ Sell	Pay/ Re- ceive Fixed Rate	Expiration Date	Implied Credit Spread at 1/31/2009 9	Notional Amount	Market Value		Upfront Premiums Paid/ (Received)		Unrealized Appre- ciation (Deprec- iation)
Merrill Lynch, Pierce, Fenner & Smith	Series 10 Investment Grade Index	Sell	1.55%	6/20/2013	2.23%	$4,880,000	(115,370	)	16,197		$(131,567	)
Merrill Lynch, Pierce, Fenner & Smith	Series 11 Investment Grade Index	Sell	1.50%	12/20/2013	1.45%	$5,000,000	(102,186	)	(112,826	)	$ 10,640
Banc of America Securities LLC	Series 11 High Yield CDX Index	Sell	5.00%	12/20/2013	6.42%	$1,980,000	(513,111	)	(408,375	)	$(104,736	)
NET UNREALIZED DEPRECIATION OF CREDIT DEFAULT SWAPS											$(225,663	)

Net Unrealized Depreciation on Futures Contracts and Swap Contracts is included in "Other Assets and Liabilities - Net."

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, 2009, these restricted securities amounted to $988,784, which represented 0.5% of total net assets.

3 Denotes a restricted security that may be resold without restriction to "qualified institutional buyers" as defined in Rule 144A under the Securities Act of 1933 and that the Fund has determined to be liquid under criteria established by the Fund's Board of Trustees (the "Trustees"). At January 31, 2009, these liquid restricted securities amounted to $988,784, which represented 0.5% of total net assets.

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

5 Affiliated companies.

6 7-Day net yield.

7 The cost of investments for federal tax purposes amounts to $230,846,177.

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

9 Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular reference entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity's credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as "Defaulted" indicates a credit event has occurred for the reference entity or obligation.

Note: The categories of investments are shown as a percentage of total net assets at January 31, 2009.

Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below:

Level 1--quoted prices in active markets for identical securities

Level 2--other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

Level 3--significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used, as of January 31, 2009, in valuing the Fund's assets carried at fair value:

Valuation Inputs	Investments in Securities	Other Financial Instruments*
Level 1--Quoted Prices and Investments in Mutual Funds**	$176,031,217	$(106,999	)
Level 2--Other Significant Observable Inputs	30,251,167	(225,663	)
Level 3--Significant Unobservable Inputs	- --	--
TOTAL	$206,282,384	$(332,662	)

* Other financial instruments include futures contracts and swaps contracts.

** Emerging Markets Fixed Income Core Fund (EMCORE) is an affiliated limited partnership offered only to registered investment companies and other accredited investors (see Note 5 to the financial statements). EMCORE invests primarily in emerging markets fixed-income securities.

The following acronyms are used throughout this portfolio:

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

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

January 31, 2009 (unaudited)

Assets:
Total investments in securities, at value including $45,800,375 of investments in affiliated issuers (Note 5) (identified cost $230,844,663)			$	206,282,384
Cash				7,775
Income receivable				516,519
Receivable for investments sold				6,064,809
Receivable for shares sold				491,206
Receivable for periodic payments from swap contracts				28,431
Other receivables				4,750
TOTAL ASSETS				213,395,874
Liabilities:
Payable for investments purchased	$	6,103,655
Payable for shares redeemed		199,232
Payable for daily variation margin		21,609
Swaps, at value (premium received $505,004)		730,667
Payable for distribution services fee (Note 5)		35,831
Payable for shareholder services fee (Note 5)		74,146
Accrued expenses		114,913
TOTAL LIABILITIES				7,280,053
Net assets for 23,031,333 shares outstanding			$	206,115,821
Net Assets Consist of:
Paid-in capital			$	314,047,729
Net unrealized depreciation of investments, futures contracts, swap contracts and translation of assets and liabilities in foreign currency				(24,894,941	)
Accumulated net realized loss on investments, futures contracts, swap contracts and foreign currency transactions				(82,952,589	)
Distributions in excess of net investment income				(84,378	)
TOTAL NET ASSETS			$	206,115,821

Statement of Assets and Liabilities-continued

Net Asset Value, Offering Price and Redemption Proceeds Per Share
Institutional Shares:
Net asset value per share ($47,650,368 ÷ 5,298,653 shares outstanding), no par value, unlimited shares authorized	$8.99
Offering price per share	$8.99
Redemption proceeds per share	$8.99
Class A Shares:
Net asset value per share ($104,151,824 ÷ 11,613,632 shares outstanding), no par value, unlimited shares authorized	$8.97
Offering price per share (100/94.50 of $8.97)	$9.49
Redemption proceeds per share	$8.97
Class C Shares:
Net asset value per share ($53,738,412 ÷ 6,054,882 shares outstanding), no par value, unlimited shares authorized	$8.88
Offering price per share	$8.88
Redemption proceeds per share (99.00/100 of $8.88)	$8.79
Class K Shares:
Net asset value per share ($575,217 ÷ 64,166 shares outstanding), no par value, unlimited shares authorized	$8.96
Offering price per share	$8.96
Redemption proceeds per share	$8.96

See Notes which are an integral part of the financial Statements

Statement of Operations

Six Months Ended January 31, 2009 (unaudited)

Investment Income:
Dividends (including $1,615,223 received from affiliated issuers (Note 5) and net of foreign taxes withheld of $758)			$	3,214,226
Interest				1,043,223
Investment income allocated from affiliated partnership (Note 5)				37,964
TOTAL INCOME				4,295,413
Expenses:
Investment adviser fee (Note 5)	$	939,341
Administrative personnel and services fee (Note 5)		136,109
Custodian fees		22,752
Transfer and dividend disbursing agent fees and expenses--Institutional Shares		30,583
Transfer and dividend disbursing agent fees and expenses--Class A Shares		98,899
Transfer and dividend disbursing agent fees and expenses--Class C Shares		40,698
Transfer and dividend disbursing agent fees and expenses--Class K Shares		1,333
Directors'/Trustees' fees		2,360
Auditing fees		11,058
Legal fees		3,988
Portfolio accounting fees		67,732
Distribution services fee--Class C Shares (Note 5)		247,622
Distribution services fee--Class K Shares (Note 5)		1,903
Shareholder services fee--Class A Shares (Note 5)		136,538
Shareholder services fee--Class C Shares (Note 5)		43,690
Account administration fee--Class A Shares		12,108
Account administration fee--Class C Shares		38,636
Share registration costs		28,071
Printing and postage		23,620
Insurance premiums		2,609
Interest expense		302
Miscellaneous		5,490
EXPENSES BEFORE ALLOCATION		1,895,442
Expenses allocated from affiliated partnership (Note 5)		180
TOTAL EXPENSES		1,895,622

Statement of Operations-continued

Waivers and Reimbursements (Note 5):
Waiver/reimbursement of investment adviser fee	$	(40,178	)
Waiver of administrative personnel and services fee		(26,473	)
Reimbursement of transfer and dividend disbursing agent fees and expenses--Class A Shares		(22,058	)
Reimbursement of transfer and dividend disbursing agent fees and expenses--Class C Shares		(3,953	)
TOTAL WAIVERS AND REIMBURSEMENTS				$	(92,662	)
Net expenses							$	1,802,960
Net investment income								2,492,453
Realized and Unrealized Gain (Loss) on Investments, Futures Contracts, Swap Contracts and Foreign Currency Transactions:
Net realized loss on investments and foreign currency transactions (including realized loss of $690,728 on sales of investments in affiliated issuers)								(64,780,561	)
Net realized gain on futures contracts								329,090
Net realized gain on swap contracts								36,848
Net realized loss and foreign currency transactions allocated from affiliated partnership								(122,350	)
Net change in unrealized depreciation of investments and translation of assets and liabilities in foreign currency								(16,979,064	)
Net change in unrealized appreciation of futures contracts								(162,872	)
Net change in unrealized depreciation of swap contracts								(225,663	)
Net realized and unrealized loss on investments, futures contracts, swap contracts and foreign currency transactions								(81,904,572	)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS							$	(79,412,119	)

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

		Six Months Ended (unaudited) 1/31/2009			Year Ended 7/31/2008
Increase (Decrease) in Net Assets
Operations:
Net investment income	$	2,492,453		$	5,416,027
Net realized loss on investments including allocations from partnership, futures contracts, swap contracts and foreign currency transactions		(64,536,973	)		(17,550,175	)
Net change in unrealized appreciation/depreciation of investments, futures contracts, swap contracts and translation of assets and liabilities in foreign currency		(17,367,599	)		(16,954,796	)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		(79,412,119	)		(29,088,944	)
Distributions to Shareholders:
Distributions from net investment income
Institutional Shares		(1,597,008	)		(1,062,997	)
Class A Shares		(3,103,691	)		(1,792,159	)
Class C Shares		(1,038,914	)		(1,022,750	)
Class K Shares		(16,435	)		(302	)
Distributions from net realized gain on investments, futures contracts, swap contracts and foreign currency transactions
Institutional Shares		- --			(1,999,436	)
Class A Shares		- --			(3,699,741	)
Class C Shares		- --			(2,473,216	)
Class K Shares		- --			(818	)
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS		(5,756,048	)		(12,051,419	)
Share Transactions:
Proceeds from sale of shares		20,685,224			79,093,725
Proceeds from shares issued in connection with the tax-free transfer of assets from Federated Conservative Allocation Fund		- --			52,857,254
Proceeds from shares issued in connection with the tax-free transfer of assets from Federated Growth Allocation Fund		- --			48,170,456
Proceeds from shares issued in connection with the tax-free transfer of assets from Federated Moderate Allocation Fund		- --			93,208,403
Net asset value of shares issued to shareholders in payment of distributions declared		5,308,890			11,084,827
Cost of shares redeemed		(42,856,880	)		(83,721,442	)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		(16,862,766	)		200,693,223
Change in net assets		(102,030,933	)		159,552,860
Net Assets:
Beginning of period		308,146,754			148,593,894
End of period (including undistributed (distributions in excess of) net investment income of $(84,378) and $3,179,217, respectively)	$	206,115,821		$	308,146,754

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

January 31, 2009 (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 nine 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. Each portfolio pays its own expenses. 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 investment objective of the Fund is the possibility of long-term growth of capital and income.

On October 26, 2007, the Fund received a tax-free transfer of assets from the Federated Conservative Allocation Fund (FCAF), Federated Growth Allocation Fund (FGAF) and Federated Moderate Allocation Fund (FMAF) (collectively, "Acquired Funds") as follows:

	Shares of the Fund Issued	Acquired Funds Net Assets Received	Unrealized Appreciation 1	Net Assets of the Fund Immediately Prior to Combination	Net Assets of the Fund Immediately After Combination
FCAF	3,640,126	$ 52,857,254	$1,026,380
FGAF	3,325,359	$ 48,170,456	$1,009,181
FMAF	6,421,560	$ 93,208,403	$1,945,499
TOTAL	13,387,045	$194,236,113	$3,981,060	$161,345,386	$355,581,499

1 Unrealized appreciation is included in the Acquired Funds Net Assets Received amount shown above.

2. SIGNIFICANT ACCOUNTING POLICIES

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

INVESTMENT VALUATION

In calculating its net asset value (NAV), the Fund generally values investments as follows:

• Equity securities listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market.
• Fixed-income securities acquired with remaining maturities greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Trustees.
• Fixed-income securities acquired with remaining maturities of 60 days or less are valued at their cost (adjusted for the accretion of any discount or amortization of any premium).
• Shares of other mutual funds are valued based upon their reported NAVs.
• Derivative contracts listed on exchanges are valued at their reported settlement or closing price.
• Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Trustees.

If the Fund cannot obtain a price or price evaluation from a pricing service for an investment, the Fund may attempt to value the investment based upon the mean of bid and asked quotations or fair value the investment based on price evaluations, from one or more dealers. If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could purchase or sell an investment at the price used to calculate the Fund's NAV.

Fair Valuation and Significant Events Procedures

The Trustees have authorized the use of pricing services to provide evaluations of the current fair value of certain investments for purposes of calculating the NAV. Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a "bid" evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and asked for the investment (a "mid" evaluation). The Fund normally uses bid evaluations for U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for other types of fixed-income securities and OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Trustees.

The Trustees also have adopted procedures requiring an investment to be priced at its fair value whenever the Adviser determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment's value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:

• With respect to securities traded in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures or options contracts;
• With respect to price evaluations of fixed-income securities determined before the close of regular trading on the NYSE, actions by the Federal Reserve Open Market Committee and other significant trends in U.S. fixed-income markets;
• Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; and
• Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, a natural disaster affecting the issuer's operations or regulatory changes or market developments affecting the issuer's industry.

The Trustees have approved the use of a pricing service to determine the fair value of equity securities traded principally in foreign markets when the Adviser determines that there has been a significant trend in the U.S. equity markets or in index futures trading. For other significant events, the Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Fund will determine the fair value of the investment using another method approved by the Trustees.

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

Investment transactions are accounted for on a trade-date basis. Realized gains and losses from investment transactions are recorded on an identified cost basis. Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Foreign dividends are recorded on the ex-dividend date or when the Fund is informed of the ex-dividend date. Distributions of net investment income 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 may bear distribution services fees, shareholder services fees, account administration fees and certain transfer and dividend disbursing agent fees unique to those classes. 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. The Fund complies with the provisions of Financial Accounting Standards Board (FASB) Interpretation No. 48 (FIN 48), "Accounting for Uncertainty in Income Taxes." As of and during the six months ended January 31, 2009, the Fund did not have a liability for any uncertain tax positions. The Fund recognizes interest and penalties, if any, related to tax liabilities as income tax expense in the Statement of Operations. As of January 31, 2009, tax years 2005 through 2008 remain subject to examination by the Fund's major tax jurisdictions, which include the United States of America and the Commonwealth of Massachusetts.

The Fund may be subject to taxes imposed by governments of countries in which it invests. Such taxes are generally based on either income or gains earned or repatriated. The Fund accrues and applies such taxes to net investment income, net realized gains and net unrealized gains as income and/or gains are earned.

When-Issued and Delayed Delivery Transactions

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

Swap Contracts

Swap contracts involve two parties that agree to exchange the returns (or the differential in rates of return) earned or realized on particular predetermined investments, instruments, indices or other measures. The gross returns to be exchanged or "swapped" between parties are generally calculated with respect to a "notional amount" for a predetermined period of time. The Fund may enter into interest rate, total return, credit default, foreign exchange and other swap agreements.

The Fund uses credit default swaps to manage exposure to a given issuer or sector by either selling protection to increase exposure or buying protection to reduce exposure. The "buyer" in a credit default swap is obligated to pay the "seller" a periodic stream of payments over the term of the contract provided that no event of default on an underlying reference obligation has occurred. If an event of default occurs, the seller must pay the buyer the full notional value, or the "par value,'' of the reference obligation in exchange for the reference obligation. In connection with these agreements, securities may be identified as collateral in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default or bankruptcy/insolvency. Recovery values are assumed by market makers considering either industry standard recovery rates or entity specific factors and considerations until a credit event occurs. If a credit event has occurred, the recovery value is typically determined by a facilitated auction whereby a minimum number of allowable broker bids, together with a specified valuation method, are used to calculate the settlement value. The maximum amount of the payment that may occur, as a result of a credit event payable by the protection seller, is equal to the notional amount of the underlying index or security. The Fund's maximum exposure to loss of the notional value of credit default swaps outstanding at January 31, 2009 is $11,860,000. Risks may arise upon entering into swap agreements from the potential inability of the counterparties to meet the terms of their contract from unanticipated changes in the value of the swap agreement.

Upfront payments received or paid by the Fund will be reflected as an asset or liability on the Statement of Assets and Liabilities. Changes in the value of swap contracts are included in "Swaps, at value," on the Statement of Assets and Liabilities, and periodic payments are reported as net realized gain/loss on swap contracts in the Statement of Operations. For the six months ended January 31, 2009, the Fund had a net realized gain on swap contracts of $36,848.

Swap contracts outstanding at period end are listed after the Fund's portfolio of investments.

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, 2009, the Fund had a net realized gain on futures contracts of $329,090.

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

Foreign Currency Translation

The accounting records of the Fund are maintained in U.S. dollars. All assets and liabilities denominated in foreign currencies (FCs) are translated into U.S. dollars based on the rates of exchange of such currencies against U.S. dollars on the date of valuation. Purchases and sales of securities, income and expenses are translated at the rate of exchange quoted on the respective date that such transactions are recorded. The Fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.

Reported net realized foreign exchange gains or losses arise from sales of portfolio securities, sales and maturities of short-term securities, sales of FCs, currency gains or losses realized between the trade and settlement dates on securities transactions, the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities other than investments in securities at fiscal year end, resulting from changes in the exchange rate.

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 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.

Other

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

3. SHARES OF BENEFICIAL INTEREST

The following tables summarize share activity:

	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Institutional Shares:	Shares			Amount		Shares			Amount
Shares sold	108,344		$	1,103,454		453,471		$	6,231,682
Shares issued to shareholders in payment of distributions declared	165,994			1,563,667		213,271			2,951,673
Shares redeemed	(700,215	)		(6,850,172	)	(861,304	)		(11,695,320	)
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS	(425,877	)	$	(4,183,051	)	(194,562	)	$	(2,511,965	)
	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Class A Shares:	Shares			Amount		Shares			Amount
Shares sold	1,554,512		$	16,150,280		4,581,561		$	60,907,542
Proceeds from shares issued in connection with the tax-free transfer of assets from Federated Conservative Allocation Fund	- --			- --		2,233,258			32,583,802
Proceeds from shares issued in connection with the tax-free transfer of assets from Federated Growth Allocation Fund	- --			- --		1,400,840			20,438,742
Proceeds from shares issued in connection with the tax-free transfer of assets from Federated Moderate Allocation Fund	- --			- --		3,731,944			54,450,162
Shares issued to shareholders in payment of distributions declared	293,825			2,761,954		349,074			4,817,220
Shares redeemed	(2,504,405	)		(25,541,555	)	(3,748,791	)		(50,990,523	)
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS	(656,068	)	$	(6,629,321	)	8,547,886		$	122,206,945
	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Class C Shares:	Shares			Amount		Shares			Amount
Shares sold	290,207		$	3,026,915		840,926		$	11,168,941
Proceeds from shares issued in connection with the tax-free transfer of assets from Federated Conservative Allocation Fund	- --			- --		1,406,868			20,273,452
Proceeds from shares issued in connection with the tax-free transfer of assets from Federated Growth Allocation Fund	- --			- --		1,924,519			27,731,714
Proceeds from shares issued in connection with the tax-free transfer of assets from Federated Moderate Allocation Fund	- --			- --		2,689,616			38,758,241
Shares issued to shareholders in payment of distributions declared	103,849			966,834		243,200			3,314,815
Shares redeemed	(1,009,567	)		(10,180,104	)	(1,594,694	)		(20,976,254	)
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS	(615,511	)	$	(6,186,355	)	5,510,435		$	80,270,909
	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Class K Shares:	Shares			Amount		Shares			Amount
Shares sold	33,598		$	404,575		59,681		$	785,560
Shares issued to shareholders in payment of distributions declared	1,748			16,435		81			1,119
Shares redeemed	(27,732	)		(285,049	)	(4,543	)		(59,345	)
NET CHANGE RESULTING FROM CLASS K SHARE TRANSACTIONS	7,614		$	135,961		55,219		$	727,334
NET CHANGE RESULTING FROM SHARE TRANSACTIONS	(1,689,842	)	$	(16,862,766	)	13,918,978		$	200,693,223

4. FEDERAL TAX INFORMATION

At January 31, 2009, the cost of investments for federal tax purposes was $230,846,177. The net unrealized depreciation of investments for federal tax purposes excluding any unrealized appreciation/depreciation resulting from futures contracts and swap contracts was $24,563,793. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $4,727,267 and net unrealized depreciation from investments for those securities having an excess of cost over value of $29,291,060.

At July 31, 2008, the Fund had a capital loss carryforward of $49,998 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 2016.

5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated MDTA LLC is the Fund's investment adviser (the "Adviser"). The advisory agreement between the Fund and the Adviser provides for an annual fee equal to 0.75% of the Fund's average daily net assets. Prior to December 8, 2008, the Adviser agreed to waive all or a portion of the advisory fee and/or reimburse certain operating expenses (excluding interest, taxes and brokerage commissions) in order to contractually limit the Fund's aggregate annual operating expenses to no more than the following annual percentages for certain Classes of the Fund based on average daily net assets:

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

In addition, subject to the terms described in the Expense Limitation note, the Adviser may voluntarily choose to waive any portion of its fee. The Adviser can modify or terminate this voluntary waiver at any time at its sole discretion. For the six months ended January 31, 2009, the Adviser voluntarily waived $33,680 of its fee. In addition, an affiliate of the Adviser reimbursed $26,011 of transfer and dividend disbursing agent fees and expenses.

Administrative Fee

Federated Administrative Services (FAS), under the Administrative Services 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. Subject to the terms described in the Expense Limitation note, 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, 2009, the net fee paid to FAS was 0.088% of average daily net assets of the Fund. FAS waived $26,473 of its fee.

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 at the following percentages of average daily net assets annually, to compensate FSC:

Share Class Name	Percentage of Average Daily Net Assets of Class
Class A Shares	0.05%
Class C Shares	0.75%
Class K Shares	0.50%

Subject to the terms described in the Expense Limitation note, 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, 2009, FSC retained $20,620 of fees paid by the Fund. For the six months ended January 31, 2009, the Fund's Class A Shares did not incur a distribution services fee; however it may begin to incur this fee upon approval of the Trustees. On November 15, 2007, the Trustees approved an amendment to the Plan to reduce the distribution services fee for the Fund's Class A Shares from 0.25% to 0.05%. The amendment to the Plan became effective for the Fund on March 31, 2008.

Sales Charges

Front-end sales charges and contingent deferred sales charges (CDSC) do not represent expenses of the Fund. They are deducted from the proceeds of sales of Fund shares prior to investment or from redemption proceeds prior to remittance, as applicable. For the six months ended January 31, 2009, FSC retained $11,718 in sales charges from the sale of Class A Shares. FSC also retained $2,711 of CDSC relating to redemptions of Class C Shares.

Shareholder Services Fee

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. Subject to the terms described in the Expense Limitation note, FSSC may voluntarily reimburse the Fund for shareholder services fees. This voluntary reimbursement can be modified or terminated at any time. For the six months ended January 31, 2009, FSSC did not receive any fees paid by the Fund.

Expense Limitation

The Adviser and its affiliates (which may include FSC, FAS and FSSC) have voluntarily agreed to waive their fees and/or reimburse expenses so that the total operating expenses (as shown in the financial highlights, but excluding expenses allocated from partnerships) paid by the Fund's Institutional Shares, Class A Shares, Class C Shares and Class K Shares (after the voluntary waivers and reimbursements) will not exceed 1.05%, 1.30%, 2.05% and 1.79%, respectively, for the fiscal year ending July 31, 2009. Although these actions are voluntary, the Adviser and its affiliates have agreed to continue these waivers and/or reimbursements at least through September 30, 2009.

General

Certain 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 affiliated mutual funds. For the six months ended January 31, 2009, the Adviser reimbursed $6,498. Transactions with affiliated companies during the six months ended January 31, 2009 were as follows:

Affiliates	Balance of Shares Held 7/31/2008	Purchases/ Additions	Sales/ Reductions	Balance of Shares Held 1/31/2009	Value	Dividend Income/ Allocated Investment Income
Emerging Markets Fixed Income Core Fund	37,605	64,361	78,426	23,540	$ 409,010	$ 37,964
Federated Mortgage Core Portfolio	4,634,906	378,853	1,997,162	3,016,597	$29,803,974	$1,186,732
High Yield Bond Portfolio	544,156	444,520	74,541	914,135	$ 4,396,991	$ 235,405
Prime Value Obligations Fund, Institutional Shares	19,839,871	49,984,948	58,634,419	11,190,400	$11,190,400	$ 193,086
TOTAL OF AFFILIATED TRANSACTIONS	25,056,538	50,872,682	60,784,548	15,144,672	$45,800,375	$1,653,187

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, an affiliate to 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 or upon request from the Fund.

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 EMCORE, a series of Core Trust II, is to achieve total return on its 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, realized and 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 or upon request from the Fund.

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, 2009, were as follows:

Purchases	$	244,017,690
Sales	$	241,267,984

7. LINE OF CREDIT

The Fund participates in a $100,000,000 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, 2009, there were no outstanding loans. During the six months ended January 31, 2009, the Fund did not utilize the LOC.

8. INTERFUND LENDING

Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other funds advised by subsidiaries of Federated Investors, Inc., may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from other participating affiliated funds. As of January 31, 2009, there were no outstanding loans. During the six months ended January 31, 2009, the program was not utilized.

9. LEGAL PROCEEDINGS

Since October 2003, Federated Investors, Inc. and related entities (collectively, "Federated") and various Federated funds ("Federated Funds") have been 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 Federated Funds from the 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 entities have also been named as defendants in several additional lawsuits that 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 Federated Funds retained the law firm of Dickstein Shapiro LLP to represent the Federated Funds in these lawsuits. Federated and the Federated Funds, and their respective counsel have been defending this litigation, and none of the Federated Funds remains a defendant in any of the lawsuits (though some could potentially receive any recoveries as nominal defendants). 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 Federated 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 Federated Fund redemptions, reduced sales of Federated Fund shares or other adverse consequences for the Federated Funds.

10. RECENT ACCOUNTING PRONOUNCEMENTS

In March 2008, FASB released Statement of Financial Accounting Standards No. 161, "Disclosures about Derivative Instruments and Hedging Activities" (FAS 161). FAS 161 requires qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative agreements. FAS 161 is effective for fiscal years and interim periods beginning after November 15, 2008. Management has concluded that the adoption of FAS 161 is not expected to have a material impact on the Fund's net assets or results of operations.

The Fund adopted FASB Staff Position No. 133-1 and FIN 45-4, "Disclosure about Credit Derivatives and Certain Guarantees: An Amendment of FASB Statement No.133 and FASB Interpretation No. 45" (FAS 133). The amendments require additional disclosure relating to credit derivatives. All changes to accounting policies have been made in accordance with the amendments and incorporated for the current period.

Evaluation and Approval of Advisory Contract - May 2008

FEDERATED MDT BALANCED FUND (THE "FUND")

The Fund's Board reviewed the Fund's investment advisory contract at meetings held in May 2008. The Board's decision regarding the contract reflects the exercise of its business judgment on whether to continue the existing arrangements.

In this connection, the Federated funds' Board had previously appointed 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 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. The Board considered that evaluation, along with other information, in deciding to approve the advisory contract.

During its review of the contract, the Board considered compensation and benefits received by the Adviser. This included the fees received for services provided to the Fund by other entities in the Federated organization and research services received by the Adviser from brokers that execute Federated fund trades, as well as advisory fees. The Board is also familiar with and considered 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 a fund grows larger; any indirect benefits that may accrue to the Adviser and its affiliates as a result of the Adviser's relationship with a 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 what might be viewed as like services, and the cost 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 for supplying such services. The Board was aware of these factors and was guided by them in its review of the Fund's advisory contract to the extent it considered them to be appropriate and relevant, as discussed further below.

The Board considered and weighed these circumstances in light of its substantial accumulated experience in governing the Fund and working with Federated on matters relating to the Federated funds, and was assisted in its deliberations by independent legal counsel. Throughout the year, the Board has requested and received substantial and detailed information about the Fund and the Federated organization that was in addition to the extensive materials that comprise and accompany the Senior Officer's evaluation. Federated provided much of this information at each regular meeting of the Board, and furnished additional reports in connection with the particular meeting at which the Board's formal review of the advisory contract occurred. Between regularly scheduled meetings, the Board also received information on particular matters as the need arose. Thus, 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 short- and long-term performance (in absolute terms, both on a gross basis and net of expenses, as well as in relationship to its particular investment program and certain competitor or "peer group" funds and/or other benchmarks, as appropriate), and comments on the reasons for performance; the Fund's investment objectives; the Fund's expenses (including the advisory fee 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 use and allocation of brokerage commissions derived from trading the Fund's portfolio securities (if any); and the nature, quality and extent of the advisory and other services provided to the Fund by the Adviser and its affiliates. The Board also considered the preferences and expectations of Fund shareholders 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 performance and 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 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 competes. The Fund's ability to deliver competitive performance when compared to its peer group was a useful indicator of how the Adviser is executing 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 continuation of the advisory contract. In this regard, the Senior Officer has 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 include, but are not limited to, different types of targeted investors; being subject to different laws and regulations; different legal structures; different average account sizes; different associated costs; and different 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, using data supplied by independent fund ranking organizations, regarding the performance of, and fees charged by, other mutual funds, noting his view that comparisons to fund peer groups are highly important in judging the reasonableness of proposed fees. He also observed that certain funds may exhibit important differences in their objectives and management techniques when compared to other funds placed in the same peer group by ranking organizations, noting in this connection that the Fund's quantitative investment program is of such a type.

For both the one- and three-year periods ending December 31, 2007, the Fund's performance was above the median of the relevant peer group.

The Board also received financial information about Federated, including reports on the compensation and benefits Federated derived from its relationships with the Federated funds. These reports covered 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 discussed any indirect benefit Federated may derive from its receipt of research services from brokers who execute Federated fund trades. In addition, the Board considered the fact that, in order for a fund to be competitive in the marketplace, Federated and its affiliates frequently waived fees and/or reimbursed expenses and have disclosed to fund investors and/or indicated to the Board their intention to do so in the future, where appropriate.

Federated furnished reports, requested by the Senior Officer, that reported revenues on a fund-by-fund basis and made estimates of the allocation of expenses on a fund-by-fund basis, using allocation methodologies specified by the Senior Officer. The Senior Officer noted that, although they may apply consistent allocation processes, the inherent difficulties in allocating costs (and the unavoidable arbitrary aspects of that exercise) and the lack of consensus on how to allocate those costs may render such allocation reports unreliable. The allocation reports were considered in the analysis by the Board but were determined to be of limited use.

The Board and the Senior Officer also reviewed a report compiled by Federated comparing profitability information for Federated to other publicly held fund management companies. In this regard, the Senior Officer noted the limited availability of such information, but nonetheless concluded that Federated's profit margins did not appear to be excessive and the Board agreed.

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 and long-term investments in areas that support all of the Federated funds, such as personnel and processes for the portfolio management, compliance, and risk management functions; and systems technology; and that the benefits of these efforts (as well as 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 (as discussed in the Senior Officer's evaluation) 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.

It was noted in the materials for the Board meeting that for the Fund's most recently completed fiscal year, the Fund's investment advisory fee, after waivers and expense reimbursements, if any, was above the median of the relevant peer group. The Board reviewed the fees and other expenses of the Fund with the Adviser and was satisfied that the overall expense structure of the Fund remained competitive. In this regard, the Board had been previously advised that, while comparisons to fund peer groups are highly important in judging the reasonableness of advisory fees, the Fund's quantitative focus makes fee and expense comparisons particularly difficult. Although the Fund's advisory fee was above the median of the peer range, the peer group of funds varied widely in their complexity, and the management of the Fund is among the more complex relative to its peers. The Board will continue to monitor advisory fees and other expenses borne by the Fund.

The Senior Officer's evaluation noted his belief that the information and observations contained in his evaluation supported a finding that the proposed management fees are reasonable, and that Federated appeared to provide appropriate administrative services to the Fund for the fees paid. Under these circumstances, no changes were recommended to, and no objection was raised to, the continuation of the Fund's advisory contract. The Board concluded that the nature, quality and scope of services provided the Fund by the Adviser and its affiliates were satisfactory.

In its decision to continue an existing investment advisory contract, the Board was mindful of the potential disruptions of the Fund's operations and various risks, uncertainties and other effects that could occur as a result of a decision to terminate or not renew an advisory contract. In particular, the Board recognized that most shareholders have invested in the Fund on the strength of the Adviser's industry standing and reputation and with the expectation that the Adviser will have a continuing role in providing advisory services to the Fund. Thus, the Board's approval of the advisory contract reflected the fact that it is the shareholders who have effectively selected the Adviser by virtue of having invested in the Fund.

The Board 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. Not all of the factors and considerations identified above were necessarily relevant to the Fund, nor did the Board consider any one of them to be determinative. With respect to the factors that were relevant, the Board's decision to approve the contract reflects its determination that Federated's performance and actions provided a satisfactory basis to support the decision to continue the existing 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 from Federated's website at FederatedInvestors.com. To access this information from the "Products" section of the website, click on the "Prospectuses and Regulatory Reports" link under "Related Information," then select the appropriate link opposite the name of the Fund; or select the name of the Fund and from the Fund's page, click on the "Prospectuses and Regulatory Reports" link. Form N-PX filings are also available at 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" under "Related Information," then selecting the appropriate link opposite the name of the Fund; or select the name of the Fund and from the Fund's page, click on the "Portfolio Holdings" link.

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 (3/09)

Federated is a registered mark of Federated Investors, Inc. 2009 (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, 2009

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)		Year Ended July 31,
	1/31/2009		2008		2007	1	2006	2	2005		2004
Net Asset Value, Beginning of Period	$12.57		$13.79		$13.23		$13.60		$12.82		$11.36
Income From Investment Operations:
Net investment income	0.16		0.30	3	0.24	3	0.24	3	0.20		0.13
Net realized and unrealized gain (loss) on investments, futures contracts, swap contracts and foreign currency transactions	(3.43	)	(0.98	)	1.14		0.50		1.87		1.61
TOTAL FROM INVESTMENT OPERATIONS	(3.27	)	(0.68	)	1.38		0.74		2.07		1.74
Less Distributions:
Distributions from net investment income	(0.31	)	(0.19	)	(0.17	)	(0.18	)	(0.15	)	(0.15	)
Distributions from net realized gain on investments, futures contracts, swap contracts and foreign currency transactions	- --		(0.35	)	(0.65	)	(0.93	)	(1.14	)	(0.13	)
TOTAL DISTRIBUTIONS	(0.31	)	(0.54	)	(0.82	)	(1.11	)	(1.29	)	(0.28	)
Net Asset Value, End of Period	$ 8.99		$12.57		$13.79		$13.23		$13.60		$12.82
Total Return 4	(26.15	)%	(5.33	)%	10.61	%	5.62	%	16.81	%	15.37	%
Ratios to Average Net Assets:
Net expenses	1.04	% 5	1.06	%	1.14	%	1.25	%	1.19	%	1.17	%
Net investment income	2.39	% 5	2.22	%	1.74	%	1.82	%	1.54	%	1.03	%
Expense waiver/reimbursement 6	0.05	% 5	0.03	%	0.17	%	0.14	%	- --		- --
Supplemental Data:
Net assets, end of period (000 omitted)	$47,650		$71,949		$81,634		$73,747		$69,320		$53,815
Portfolio turnover	105	%	158	%	174	%	139	%	127	%	78	%

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 Beginning with the year ended July 31, 2006, the Fund was audited by Ernst & Young LLP. The previous years were audited by another independent registered public accounting firm.

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.

See Notes which are an integral part of the Financial Statements

Shareholder Expense Example (unaudited)

As a shareholder of the Fund, you incur ongoing costs, including management fees and to the extent applicable, distribution (12b-1) fees and/or 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, 2008 to January 31, 2009.

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 8/1/2008	Ending Account Value 1/31/2009	Expenses Paid During Period 1
Actual	$1,000	$ 738.50	$4.56
Hypothetical (assuming a 5% return before expenses)	$1,000	$1,019.96	$5.30

1 Expenses are equal to the Fund's annualized net expense ratio of 1.04%, 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 (unaudited)

At January 31, 2009, the Fund's portfolio composition ¹ was as follows:

Security Type	Percentage of Total Net Assets
Domestic Equity Securities	58.2	%
Mortgage-Backed Securities	11.8	%
Corporate Debt Securities	8.8	%
U.S. Treasury and Agency Securities 2	4.8	%
Collateralized Mortgage Obligations	2.8	%
Adjustable Rate Mortgage Securities	1.6	%
Asset-Backed Securities	1.4	%
Foreign Debt Securities	1.4	%
International Equity Securities	1.4	%
Other Securities 3	3.6	%
Cash Equivalents 4	5.9	%
Derivatives Contracts 5	0.2	%
Other Assets and Liabilities--Net 6	(1.9	)%
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 mutual fund) is not treated as a single portfolio security, but rather the Fund is treated as owning a pro rata portion of each security and each other asset and liability owned by the affiliated investment company. Accordingly, the percentages of total net assets shown in the table will differ from those presented on the Portfolio of Investments.

2 Also includes $2,723,685 held in U.S. Treasuries pledged as collateral to ensure the Fund is able to satisfy the obligations of its outstanding futures contracts.

3 Other Securities include exchange-traded funds.

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

5 Based upon net unrealized appreciation (depreciation) or value of the derivative contracts as applicable. Derivative contracts may consist of futures, forwards, options and swaps. The impact of a derivative contract on the Fund's performance may be larger than its unrealized appreciation (depreciation) or value may indicate. In many cases, the notional value or amount of a derivative contract may provide a better indication of the contract's significance to the portfolio. More complete information regarding the Fund's direct investments in derivative contracts, including unrealized appreciation (depreciation), value, and notional values or amounts of such contracts, can be found in the table at the end of the Portfolio of Investments included in this report.

6 Assets, other than investments in securities and derivative contracts, less liabilities. See Statement of Assets and Liabilities.

At January 31, 2009, the Fund's industry composition ⁷ for its equity securities was as follows:

Industry	Percentage of Equity Securities
Electric Utility	6.4%
Biotechnology	5.8%
Property Liability Insurance	4.7%
Software Packaged/Custom	4.7%
Agricultural Chemicals	4.6%
Railroad	4.6%
Ethical Drugs	4.5%
Undesignated Consumer Cyclicals	4.4%
Multi-Line Insurance	3.9%
Miscellaneous Food Products	3.8%
Real Estate Investment Trusts	3.7%
Computers - Midrange	3.4%
Services to Medical Professionals	3.3%
Home Building	2.7%
AT&T Divestiture	2.4%
Department Stores	2.1%
Integrated International Oil	1.9%
Medical Technology	1.9%
Copper	1.8%
Defense Aerospace	1.8%
Diversified Leisure	1.7%
Life Insurance	1.6%
Money Center Bank	1.4%
Regional Bank	1.3%
Computers - High End	1.1%
Airline - Regional	1.0%
Other 8	19.5%
TOTAL	100.0%

7 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.

8 For purposes of this table, industry classifications which constitute less than 1.0% of the Fund's equity securities have been aggregated under the designation "Other."

Portfolio of Investments

January 31, 2009 (unaudited)

Shares					Value
			COMMON STOCKS--59.6%
			Advertising--0.1%
	4,300		Omnicom Group, Inc.	$	111,327
			Agricultural Chemicals--2.8%
	3,200		FMC Corp.		142,784
	69,800		Monsanto Co.		5,308,988
	6,300		Mosaic, Co./The		224,721
			TOTAL		5,676,493
			Agricultural Machinery--0.5%
	400		Bucyrus International		6,200
	31,300		Deere & Co.		1,087,362
			TOTAL		1,093,562
			Airline - Regional--0.6%
	23,300	1	Alaska Air Group, Inc.		614,188
	5,400		SkyWest, Inc.		84,510
	81,900		Southwest Airlines Co.		575,757
			TOTAL		1,274,455
			Aluminum--0.0%
	7,300		Alcoa, Inc.		56,867
			AT&T Divestiture--1.4%
	120,300		AT&T, Inc.		2,961,786
			Auto Original Equipment Manufacturer--0.2%
	8,600	1	Fuel Systems Solutions, Inc.		224,804
	13,900		Johnson Controls, Inc.		173,889
	5,700		Superior Industries International, Inc.		58,539
			TOTAL		457,232
			Auto Rentals--0.0%
	3,100	1	AMERCO		95,325
	Shares				Value
			COMMON STOCKS--continued
			Biotechnology--3.4%
	4,800	1	Affymetrix, Inc.	$	15,264
	11,500	1	Cephalon, Inc.		887,570
	1,200	1	Charles River Laboratories International, Inc.		29,292
	117,500	1	Gilead Sciences, Inc.		5,965,475
	3,500	1	Hospira, Inc.		87,150
	1,300	1	Martek Biosciences Corp.		34,385
	200	1	Myriad Genetics, Inc.		14,914
	9,200	1	Questcor Pharmaceuticals, Inc.		59,340
			TOTAL		7,093,390
			Book Publishing--0.0%
	1,300		Scholastic Corp.		14,170
			Broadcasting--0.3%
	17,400	1	American Tower Systems Corp.		527,916
	3,000	1	DISH Network Corp., Class A		38,520
	11,800		News Corp., Inc. - Class A		75,402
			TOTAL		641,838
			Building Materials--0.1%
	2,400		Ameron, Inc.		119,640
	13,400	1	Owens Corning, Inc.		178,756
			TOTAL		298,396
			Cable TV--0.4%
	20,800	1	Discovery Communications, Inc.		301,600
	28,300		Time Warner, Inc.		264,039
	17,900	1	Viacom, Inc., Class B - New		264,025
			TOTAL		829,664
			Cement--0.1%
	6,300		Texas Industries, Inc.		143,073
			Clothing Stores--0.2%
	7,200	1	Children's Place Retail Stores, Inc.		135,432
	1,800	1	Fossil, Inc.		20,772
	8,000	1	Jos A. Bank Clothiers, Inc.		219,680
			TOTAL		375,884
	Shares				Value
			COMMON STOCKS--continued
			Commodity Chemicals--0.1%
	1,700		Compass Minerals International, Inc.	$	102,289
	2,200		Eastman Chemical Co.		57,090
	10,500		Westlake Chemical Corp.		143,535
			TOTAL		302,914
			Computer Peripherals--0.3%
	7,000		Imation Corp.		68,180
	17,600	1	Sandisk Corp.		201,168
	15,900	1	Synaptics, Inc.		374,763
			TOTAL		644,111
			Computer Services--0.0%
	2,700	1	NCR Corp.		33,885
			Computer Stores--0.1%
	7,000	1	Tech Data Corp.		126,770
			Computers - High End--0.7%
	14,800		International Business Machines Corp.		1,356,420
			Computers - Low End--0.2%
	33,000	1	Dell, Inc.		313,500
			Computers - Midrange--2.0%
	118,800		Hewlett-Packard Co.		4,128,300
			Construction Machinery--0.4%
	25,300		Caterpillar, Inc.		780,505
	3,600		Joy Global, Inc.		74,988
			TOTAL		855,493
			Contracting--0.1%
	2,300		Harsco Corp.		54,556
	1,300	1	IHS, Inc. - Class A		56,940
			TOTAL		111,496
			Copper--1.1%
	87,400		Freeport-McMoRan Copper & Gold, Inc.		2,197,236
	Shares				Value
			COMMON STOCKS--continued
			Crude Oil & Gas Production--0.2%
	3,600	1	Swift Energy Co.	$	55,152
	14,500		W&T Offshore, Inc.		182,265
	4,600	1	Whiting Petroleum Corp.		133,400
			TOTAL		370,817
			Defense Aerospace--1.1%
	49,900		Boeing Co.		2,111,269
	2,700		General Dynamics Corp.		153,171
			TOTAL		2,264,440
			Defense Electronics--0.3%
	6,000	1	FLIR Systems, Inc.		149,820
	8,100		Northrop Grumman Corp.		389,772
			TOTAL		539,592
			Department Stores--1.3%
	13,800		Dillards, Inc., Class A		60,030
	41,200		Penney (J.C.) Co., Inc.		690,100
	18,900	1	Saks, Inc.		47,628
	44,700	1	Sears Holdings Corp.		1,829,124
			TOTAL		2,626,882
			Discount Department Stores--0.1%
	7,900	1	99 Cents Only Stores		66,202
	12,500		Foot Locker, Inc.		92,000
			TOTAL		158,202
			Diversified Leisure--1.0%
	104,200		Carnival Corp.		1,895,398
	13,000	1	Gaylord Entertainment Co.		137,800
	6,500	1	Pinnacle Entertainment, Inc.		44,070
			TOTAL		2,077,268
			Electric & Electronic Original Equipment Manufacturer--0.1%
	8,300		Molex, Inc.		110,971
	Shares				Value
			COMMON STOCKS--continued
			Electronic Testing/Measuring Equipment--0.0%
	2,700	1	Multi-Fineline Electronix, Inc.	$	50,031
			Electric Utility--3.8%
	25,100		American Electric Power Co., Inc.		786,885
	42,700		CMS Energy Corp.		501,725
	111,600		Edison International		3,634,812
	8,500		Idacorp, Inc.		247,435
	9,100		OGE Energy Corp.		224,588
	49,700		Sempra Energy		2,178,848
	13,200		TECO Energy, Inc.		158,532
	6,400		UniSource Energy Corp.		180,736
			TOTAL		7,913,561
			Electronics Stores--0.0%
	3,700		Radioshack Corp.		42,402
			Ethical Drugs--2.6%
	30,400	1	Forest Laboratories, Inc., Class A		761,216
	35,400		Lilly (Eli) & Co.		1,303,428
	100,400		Merck & Co., Inc.		2,866,420
	1,700	1	Noven Pharmaceuticals, Inc.		16,881
	35,400		Pfizer, Inc.		516,132
			TOTAL		5,464,077
			Food Wholesaling--0.0%
	4,500		SUPERVALU, Inc.		78,930
			Furniture--0.0%
	5,700		Furniture Brands International, Inc.		11,685
			Gas Distributor--0.5%
	27,400		Energen Corp.		800,354
	1,300		New Jersey Resources Corp.		52,117
	8,000	1	Southern Union Co.		103,120
			TOTAL		955,591
	Shares				Value
			COMMON STOCKS--continued
			Generic Drugs--0.0%
	1,400	1	Warner Chilcott Ltd Class A	$	19,250
			Home Building--1.6%
	25,600		Centex Corp.		217,856
	73,100		D.R. Horton, Inc.		435,676
	17,100		KB HOME		182,457
	36,200		Lennar Corp., Class A		278,378
	1,200	1	M/I Schottenstein Homes, Inc.		10,608
	82,700		Pulte Homes, Inc.		839,405
	15,000		Ryland Group, Inc.		234,000
	62,300	1	Toll Brothers, Inc.		1,060,346
			TOTAL		3,258,726
			Home Health Care--0.4%
	9,000	1	Amedisys, Inc.		371,070
	7,500	1	Amerigroup Corp.		209,775
	5,800	1	LHC Group, Inc.		154,338
			TOTAL		735,183
			Home Products--0.1%
	1,200	1	Energizer Holdings, Inc.		57,156
	2,100		Tupperware Brands Corp.		43,176
			TOTAL		100,332
			Hospitals--0.1%
	3,300		Universal Health Services, Inc., Class B		124,905
			Household Appliances--0.1%
	3,700		Whirlpool Corp.		123,691
			Industrial Machinery--0.1%
	3,600		Flowserve Corp.		191,916
			Integrated International Oil--1.1%
	32,300		Chevron Corp.		2,277,796
	Shares				Value
			COMMON STOCKS--continued
			Internet Services--0.3%
	9,500	1	NetFlix, Inc.	$	343,330
	26,900	1	eBay, Inc.		323,338
			TOTAL		666,668
			Leasing--0.0%
	800		GATX Corp.		19,280
			Life Insurance--1.0%
	7,100		Aflac, Inc.		164,791
	8,700		American Equity Investment Life Holding Co.		58,203
	9,000		Delphi Financial Group, Inc., Class A		136,530
	28,200		Old Republic International Corp.		291,024
	1,200		Protective Life Corp.		9,936
	43,400		Torchmark Corp.		1,302,000
			TOTAL		1,962,484
			Long-Term Care Centers--0.0%
	4,900	1	Kindred Healthcare, Inc.		66,493
			Lumber Products--0.1%
	12,900	1	Louisiana-Pacific Corp.		26,832
	3,600		Weyerhaeuser Co.		98,424
			TOTAL		125,256
			Maritime--0.1%
	3,200		Overseas Shipholding Group, Inc.		114,240
			Medical Supplies--0.2%
	600	1	Haemonetics Corp.		35,490
	1,500	1	Immucor, Inc.		41,565
	2,000	1	Kinetic Concepts, Inc.		48,200
	3,700	1	Merit Medical Systems, Inc.		56,943
	6,700	1	PetMed Express, Inc.		96,748
	4,800	1	Quidel Corp.		59,040
	5,600		Steris Corp.		148,960
			TOTAL		486,946
	Shares				Value
			COMMON STOCKS--continued
			Medical Technology--1.1%
	4,800	1	Cantel Medical Corp.	$	71,952
	5,600	1	Cyberonics, Inc.		86,184
	700	1	Edwards Lifesciences Corp.		40,243
	2,500	1	Gen-Probe, Inc.		112,550
	3,700	1	Greatbatch Technologies, Inc.		86,210
	4,400	1	ResMed, Inc.		175,560
	11,000	1	Thoratec Laboratories Corp.		318,670
	28,500	1	Varian Medical Systems, Inc.		1,058,205
	9,900	1	Zimmer Holdings, Inc.		360,360
			TOTAL		2,309,934
			Metal Containers--0.0%
	200	1	Mobile Mini, Inc.		2,528
			Metal Fabrication--0.1%
	1,700	1	RTI International Metals		22,627
	2,000		Timken Co.		29,780
	4,700		Worthington Industries, Inc.		47,282
			TOTAL		99,689
			Miscellaneous Components--0.2%
	12,800		AVX Corp.		116,736
	7,300	1	Cree, Inc.		145,489
	16,600	1	International Rectifier Corp.		226,092
			TOTAL		488,317
			Miscellaneous Food Products--2.2%
	154,600		Archer-Daniels-Midland Co.		4,232,948
	1,000		Corn Products International, Inc.		23,150
	15,100	1	Fresh Del Monte Produce, Inc.		363,910
			TOTAL		4,620,008
			Miscellaneous Machinery--0.0%
	200		Parker-Hannifin Corp.		7,642
	Shares				Value
			COMMON STOCKS--continued
			Miscellaneous Metals--0.0%
	13,400	1	USEC, Inc.	$	68,206
			Money Center Bank--0.8%
	47,400		The Bank of New York Mellon Corp.		1,220,076
	33,000		U.S. Bancorp		489,720
			TOTAL		1,709,796
			Mortgage and Title--0.0%
	10,400		PMI Group, Inc.		14,456
	8,300		Radian Group, Inc.		26,726
	2,900		Stewart Information Services Corp.		43,036
			TOTAL		84,218
			Motion Pictures--0.1%
	12,000		Walt Disney Co.		248,160
			Multi-Industry Capital Goods--0.4%
	4,500	1	Ceradyne, Inc.		102,690
	16,400		General Electric Co.		198,932
	34,000		KBR, Inc.		481,440
	7,800		Textron, Inc.		70,434
			TOTAL		853,496
			Multi-Line Insurance--2.4%
	97,850		Allstate Corp.		2,120,409
	900	1	Amerisafe, Inc.		16,857
	2,400		FBL Financial Group, Inc., Class A		24,744
	11,000		Hanover Insurance Group, Inc.		444,620
	500		Infinity Property & Casualty		19,200
	156,200		UNUMProvident Corp.		2,211,792
			TOTAL		4,837,622
			Office Equipment--0.1%
	6,600		Pitney Bowes, Inc.		146,916
	Shares				Value
			COMMON STOCKS--continued
			Offshore Driller--0.3%
	1,400	1	Oceaneering International, Inc.	$	48,244
	10,300	1	Transocean Ltd.		562,586
			TOTAL		610,830
			Oil Refiner--0.4%
	10,400		Sunoco, Inc.		481,728
	16,800		Western Refining, Inc.		195,888
	6,300		World Fuel Services Corp.		212,751
			TOTAL		890,367
			Oil Service, Explore & Drill--0.1%
	11,000		Patterson-UTI Energy, Inc.		105,160
			Oil Well Supply--0.1%
	3,600		Baker Hughes, Inc.		119,952
	3,900	1	Dril-Quip, Inc.		95,550
			TOTAL		215,502
			Other Communications Equipment--0.0%
	21,700	1	Tellabs, Inc.		89,621
			Packaged Foods--0.1%
	4,300		Hershey Foods Corp.		160,304
			Paper Products--0.3%
	40,200		MeadWestvaco Corp.		467,928
	1,400		Rock-Tenn Co.		43,638
			TOTAL		511,566
			Personal Loans--0.3%
	29,300		Capital One Financial Corp.		464,112
	11,500	1	Ezcorp, Inc., Class A		156,055
			TOTAL		620,167
			Personnel Agency--0.0%
	2,900		Kelly Services, Inc., Class A		26,274
	Shares				Value
			COMMON STOCKS--continued
			Pollution Control--0.1%
	4,400	1	Stericycle, Inc.	$	215,248
			Printing--0.0%
	3,300		Donnelley (R.R.) & Sons Co.		32,208
			Property Liability Insurance--2.8%
	12,350		American Financial Group, Inc. Ohio		209,703
	4,800		Berkley, W. R. Corp.		127,104
	25,900		Chubb Corp.		1,102,822
	3,400		HCC Insurance Holdings, Inc.		79,594
	109,200		The Travelers Cos, Inc.		4,219,488
			TOTAL		5,738,711
			Railroad--2.8%
	52,300		CSX Corp.		1,514,608
	13,000		Norfolk Southern Corp.		498,680
	83,900		Union Pacific Corp.		3,673,981
			TOTAL		5,687,269
			Real Estate Investment Trusts--2.2%
	99,000		Annaly Capital Management, Inc.		1,498,860
	7,950		Boston Properties, Inc.		344,235
	5,700		Equity Residential Properties Trust		136,401
	24,200		HCP Inc.		564,828
	19,000		Nationwide Health Properties, Inc.		485,070
	17,000		Plum Creek Timber Co., Inc.		523,090
	8,000		Public Storage		494,960
	8,400		Simon Property Group, Inc.		361,032
	2,750		Vornado Realty Trust		139,728
			TOTAL		4,548,204
			Recreational Goods--0.1%
	4,200		Callaway Golf Co.		31,962
	11,800	1	WMS Industries, Inc.		262,196
			TOTAL		294,158
	Shares				Value
			COMMON STOCKS--continued
			Recreational Vehicles--0.0%
	7,900		Brunswick Corp.	$	21,962
			Regional Bank--0.8%
	25,400		BB&T Corp.		502,666
	3,300		Central Pacific Financial Corp.		22,209
	10,500		East West Bancorp, Inc.		99,645
	33,900		Marshall & Ilsley Corp.		193,569
	4,300		PNC Financial Services Group		139,836
	21,000		Popular, Inc.		57,540
	5,600		South Financial Group, Inc.		10,528
	41,100		SunTrust Banks, Inc.		503,886
	3,700		Whitney Holding Corp.		48,063
	4,000		Wintrust Financial Corp.		53,480
			TOTAL		1,631,422
			Restaurant--0.2%
	900	1	CEC Entertainment, Inc.		21,006
	4,000	1	Green Mountain Coffee, Inc.		153,040
	4,800	1	Panera Bread Co.		225,504
			TOTAL		399,550
			Roofing & Wallboard--0.1%
	1,200	1	Beacon Roofing Supply, Inc.		15,276
	21,200	1	U.S.G. Corp.		138,012
			TOTAL		153,288
			Rubber--0.0%
	7,300		Cooper Tire & Rubber Co.		34,091
			Savings & Loan--0.1%
	11,700		Astoria Financial Corp.		106,236
	14,300		Hudson City Bancorp, Inc.		165,880
			TOTAL		272,116
	Shares				Value
			COMMON STOCKS--continued
			Securities Brokerage--0.3%
	7,100	1	Interactive Brokers Group, Inc., Class A	$	108,417
	2,000	1	Knight Capital Group, Inc., A		36,060
	8,800	1	Labranche & Co., Inc.		60,368
	19,200		Raymond James Financial, Inc.		355,392
			TOTAL		560,237
			Semiconductor Distribution--0.4%
	22,700	1	Arrow Electronics, Inc.		432,889
	10,100	1	Avnet, Inc.		200,182
	7,200	1	FormFactor, Inc.		112,032
	3,100	1	Tyler Technologies, Inc.		39,029
			TOTAL		784,132
			Semiconductor Manufacturing--0.2%
	4,500	1	ATMI, Inc.		60,795
	62,500	1	Micron Technology, Inc.		232,500
	4,300	1	Plexus Corp.		62,178
			TOTAL		355,473
			Semiconductor Manufacturing Equipment--0.2%
	25,700	1	Novellus Systems, Inc.		354,403
			Services to Medical Professionals--2.0%
	2,900	1	Coventry Health Care, Inc.		43,877
	5,800	1	Genoptix, Inc.		196,620
	31,600	1	Humana, Inc.		1,198,588
	3,700	1	Medco Health Solutions, Inc.		166,241
	5,400		Omnicare, Inc.		150,984
	45,200		UnitedHealth Group, Inc.		1,280,516
	25,200	1	Wellpoint, Inc.		1,044,540
			TOTAL		4,081,366
	Shares				Value
			COMMON STOCKS--continued
			Shoes--0.1%
	4,600	1	Deckers Outdoor Corp.	$	240,304
	4,000	1	Genesco, Inc.		61,600
			TOTAL		301,904
			Soft Drinks--0.0%
	4,500		The Pepsi Bottling Group, Inc.		86,805
			Software Packaged/Custom--2.8%
	45,500	1	Computer Sciences Corp.		1,676,220
	10,200	1	DST Systems, Inc.		324,054
	41,400	1	F5 Networks, Inc.		917,838
	156,200		Microsoft Corp.		2,671,020
	5,700	1	Solera Holdings, Inc.		137,313
			TOTAL		5,726,445
			Specialty Chemicals--0.3%
	4,000		Albemarle Corp.		89,000
	3,500		Cabot Corp.		46,760
	2,500		Chemed Corp.		100,325
	3,100		Cytec Industries, Inc.		63,364
	2,900		Lubrizol Corp.		98,948
	9,100	1	OM Group, Inc.		176,358
			TOTAL		574,755
			Specialty Retailing--0.1%
	16,100	1	CarMax, Inc.		133,147
	4,600		Pep Boys-Manny Moe & Jack		13,294
	18,700		Williams-Sonoma, Inc.		148,104
			TOTAL		294,545
			Stainless Steel Producer--0.3%
	28,800		Allegheny Technologies, Inc.		636,192
			Surveillance-Detection--0.0%
	1,900		Diebold, Inc.		47,082
	Shares				Value
			COMMON STOCKS--continued
			Technology Services--0.1%
	7,200	1	Stanley, Inc.	$	217,872
			Telecommunication Equipment & Services--0.1%
	64,900		Motorola, Inc.		287,507
			Tools and Hardware--0.0%
	2,200		Snap-On, Inc.		66,396
			Toys & Games--0.1%
	9,400	1	JAKKS Pacific, Inc.		172,396
			Truck Manufacturing--0.1%
	6,200		Cummins, Inc.		148,676
			Trucking--0.3%
	500		Arkansas Best Corp.		11,695
	16,600		Ryder Systems, Inc.		560,748
			TOTAL		572,443
			Undesignated Consumer Cyclicals--2.6%
	29,800	1	Alliance Data Systems Corp.		1,239,382
	2,900	1	American Public Education, Inc.		113,564
	31,600	1	Corinthian Colleges, Inc.		590,288
	3,700		DeVRY, Inc.		198,246
	24,200	1	ITT Educational Services, Inc.		2,964,742
	4,600		Speedway Motorsports, Inc.		66,424
	1,100		Strayer Education, Inc.		238,073
			TOTAL		5,410,719
			Undesignated Consumer Staples--0.0%
	2,800	1	USANA, Inc.		64,988
			Uniforms--0.0%
	800		Unifirst Corp.		20,992
			Water Utility--0.1%
	6,300		Aqua America, Inc.		130,662
			TOTAL COMMON STOCKS (IDENTIFIED COST $142,478,094)		122,761,742
Principal Amount					Value
			ASSET-BACKED SECURITIES--1.4%
$	400,000		Banc of America Commercial Mortgage, Inc. 2007-1 A2, 5.381%, 1/15/2049	$	305,173
	250,000		Banc of America Commercial Mortgage, Inc. 2007-4 A4, 5.74%, 2/10/2051		151,189
	1,200,000		Citigroup/Deutsche Bank Commercial Mortgage 2007-CD5, Series 2007 CD5, 5.886%, 11/15/2044		724,670
	398,909		Community Program Loan Trust 1987-A, Series 1987-A, 4.500%, 10/01/2018		400,087
	1,000,000		Credit Suisse Mortgage Capital Certificate 2006-C4, Series 2006-C4, 5.509%, 09/15/2039		421,913
	39,615		CS First Boston Mortgage Securities Corp. 2002-HE4 AF, 5.51%, 8/25/2032		27,365
	100,000		Merrill Lynch Mortgage Trust 2008-C1 AM, 6.266%, 2/12/2051		40,719
	150,000		Merrill Lynch Mortgage Trust 2008-C1, Series 2008-C1, 5.425%, 02/12/2051		106,821
	715,000		Merrill Lynch/Countrywide Commercial Mortgage 2007-6, Series 2007-6, 5.331%, 03/12/2051		537,212
	250,000		Merrill Lynch/Countrywide Commercial Mortgage 2007-6, Series 2007-6, 5.485%, 03/12/2051		149,128
	140,000		Morgan Stanley Capital I 2006-IQ12 A4, 5.332%, 12/15/2043		91,215
			TOTAL ASSET-BACKED SECURITIES (IDENTIFIED COST $4,541,864)		2,955,492
			COLLATERALIZED MORTGAGE OBLIGATIONS--0.6%
	4,077		Bear Stearns Mortgage Securities, Inc. 1997-6 1A, 6.637%, 3/25/2031		3,835
	410,000		Citigroup/Deutsche Bank Commercial Mortgage 2007-CD4 A3, 5.293%, 12/11/2049		260,132
	12,925		Federal Home Loan Mortgage Corp. REMIC 1311 K, 7.000%, 7/15/2022		12,907
	23,085		Federal Home Loan Mortgage Corp. REMIC 1384 D, 7.000%, 9/15/2022		23,053
	21,374		Federal Home Loan Mortgage Corp. REMIC 1595 D, 7.000%, 10/15/2013		21,668
	70,696		Federal Home Loan Mortgage Corp. REMIC 2497 JH, 6.000%, 9/15/2032		72,751
	55,257		Federal National Mortgage Association REMIC 1993-113 SB, 9.748%, 7/25/2023		62,353
	6,695		Federal National Mortgage Association REMIC 2001-37 GA, 8.000%, 7/25/2016		7,156
	14,963		Federal National Mortgage Association REMIC 2003-35 UC, 3.750%, 5/25/2033		14,266
	6,977		Government National Mortgage Association REMIC 1999-29 PB, 7.250%, 7/16/2028		7,049
Principal Amount					Value
			COLLATERIZED MORTGAGE OBLIGATIONS--continued
$	43,522		Government National Mortgage Association REMIC 2002-17 B, 6.000%, 3/20/2032	$	44,640
	350,000		JPMorgan Chase Commercial Mortgage Securities 2007-CB19 A2, 5.746%, 2/12/2049		261,303
	675,000		LB-UBS Commercial Mortgage Trust 2008-C1 A2, 6.149%, 4/15/2041		416,124
			TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (IDENTIFIED COST $1,708,236)		1,207,237
			CORPORATE BONDS--7.9%
			Basic Industry - Chemicals--0.2%
	100,000		Albemarle Corp., Sr. Note, 5.100%, 02/01/2015		82,726
	85,000		Du Pont (E.I.) de Nemours & Co., 5.000%, 01/15/2013		87,979
	30,000		Du Pont (E.I.) de Nemours & Co., 6.000%, 07/15/2018		31,131
	70,000		Praxair, Inc., 4.625%, 03/30/2015		72,679
	75,000		Rohm & Haas Co., 6.000%, 09/15/2017		62,916
			TOTAL		337,431
			Basic Industry - Metals & Mining--0.2%
	50,000		Alcan, Inc., 5.000%, 06/01/2015		39,399
	85,000		Alcoa, Inc., Note, 5.550%, 02/01/2017		58,993
	10,000		ArcelorMittal, 6.125%, 6/01/2018		7,862
	150,000		BHP Finance (USA), Inc., Company Guarantee, 5.250%, 12/15/2015		140,044
	50,000		Newmont Mining Corp., Company Guarantee, 5.875%, 04/01/2035		34,165
	85,000		Rio Tinto Finance USA Ltd., 5.875%, 07/15/2013		74,885
	85,000		Rio Tinto Finance USA Ltd., 6.500%, 07/15/2018		71,634
			TOTAL		426,982
			Basic Industry - Paper--0.0%
	50,000		Weyerhaeuser Co., Deb., 7.375%, 03/15/2032		34,924
			Capital Goods - Aerospace & Defense--0.1%
	50,000	2,3	BAE Systems Holdings, Inc., 5.200%, 08/15/2015		45,816
	125,000		Boeing Co., Note, 5.125%, 02/15/2013		127,760
	30,000		Lockheed Martin Corp., Sr. Note, 4.121%, 03/14/2013		30,760
			TOTAL		204,336
Principal Amount					Value
			CORPORATE BONDS--continued
			Capital Goods - Building Materials--0.0%
$	70,000		RPM International, Inc., 6.500%, 02/15/2018	$	60,954
			Capital Goods - Diversified Manufacturing--0.4%
	60,000		Dover Corp., Note, 5.450%, 03/15/2018		61,372
	30,000		Emerson Electric Co., 4.875%, 10/15/2019		29,725
	100,000		Emerson Electric Co., Unsecd. Note, 5.750%, 11/01/2011		105,095
	160,000		Harsco Corp., 5.750%, 05/15/2018		162,495
	80,000		Hubbell, Inc., 5.950%, 06/01/2018		76,802
	60,000		Ingersoll-Rand Global Holding Co. Ltd., 6.875%, 08/15/2018		56,794
	90,000		Roper Industries, Inc., 6.625%, 08/15/2013		89,374
	140,000		Textron Financial Corp., 5.400%, 04/28/2013		104,219
	40,000	2,3	Textron Financial Corp., Jr. Sub. Note, 6.000%, 02/15/2067		8,755
	130,000		Tyco Electronics Group SA, 5.950%, 01/15/2014		118,633
			TOTAL		813,264
			Capital Goods - Packaging--0.0%
	20,000		Pactiv Corp., 6.40%, 1/15/2018		16,273
			Communications - Media & Cable--0.2%
	100,000		Comcast Corp., 7.125%, 06/15/2013		103,205
	200,000		Comcast Corp., Company Guarantee, 6.500%, 01/15/2017		203,169
	75,000		Cox Communications, Inc., Unsecd. Note, 5.450%, 12/15/2014		69,196
	25,000		Time Warner Cable, Inc., Sr. Unsecd. Note, 5.850%, 05/01/2017		23,368
			TOTAL		398,938
			Communications - Media Noncable--0.1%
	75,000		News America Holdings, Inc., Company Guarantee, 8.000%, 10/17/2016		75,803
	75,000		News America Holdings, Inc., Sr. Deb., 9.250%, 02/01/2013		79,855
			TOTAL		155,658
			Communications - Telecom Wireless--0.3%
	150,000		AT&T Wireless Services, Inc., 8.750%, 03/01/2031		176,739
	100,000		America Movil S.A.B. de C.V., Note, 5.750%, 01/15/2015		94,200
	100,000		Cingular Wireless LLC, Sr. Note, 6.500%, 12/15/2011		105,737
Principal Amount					Value
			CORPORATE BONDS--continued
			Communications - Telecom Wireless-continued
$	60,000		Vodafone Group PLC, 5.350%, 02/27/2012	$	61,325
	100,000		Vodafone Group PLC, Note, 5.625%, 02/27/2017		98,234
			TOTAL		536,235
			Communications - Telecom Wirelines--0.2%
	50,000		Embarq Corp., 6.738%, 06/01/2013		47,544
	100,000		Telecom Italia Capital, Note, 4.875%, 10/01/2010		96,587
	40,000		Telefonica SA, Company Guarantee, 7.045%, 06/20/2036		44,658
	150,000		Telefonica SA, Sr. Note, 5.855%, 02/04/2013		156,588
	125,000		Verizon Global Funding, Note, 7.250%, 12/01/2010		132,568
			TOTAL		477,945
			Consumer Cyclical - Automotive--0.1%
	100,000	2,3	American Honda Finance Corp., 4.625%, 04/02/2013		94,166
	75,000		DaimlerChrysler North America Holding Corp., 6.500%, 11/15/2013		71,643
	150,000		DaimlerChrysler North America Holding Corp., Note, 4.875%, 06/15/2010		145,028
			TOTAL		310,837
			Consumer Cyclical - Entertainment--0.0%
	100,000		Time Warner, Inc., 5.500%, 11/15/2011		97,748
			Consumer Cyclical - Lodging--0.0%
	100,000		Wyndham Worldwide Corp., Sr. Unsecd. Note, 6.000%, 12/01/2016		49,587
			Consumer Cyclical - Retailers--0.3%
	70,000		Best Buy Co., Inc., 6.750%, 07/15/2013		63,601
	190,000		CVS Caremark Corp., Sr. Unsecd. Note, 5.750%, 06/01/2017		194,563
	80,000		Costco Wholesale Corp., 5.300%, 03/15/2012		85,130
	85,000		JC Penney Corp., Inc., Sr. Unsecd. Note, 5.750%, 02/15/2018		60,102
	25,000		Kohl's Corp., Unsecd. Note, 7.375%, 10/15/2011		24,950
	100,000		Target Corp., 5.875%, 03/01/2012		105,217
	50,000		Target Corp., Note, 5.875%, 07/15/2016		50,190
	40,000		Wal-Mart Stores, Inc., 6.200%, 04/15/2038		43,483
			TOTAL		627,236
Principal Amount					Value
			CORPORATE BONDS--continued
			Consumer Non-Cyclical Food/Beverage--0.3%
$	100,000		Bottling Group LLC, Note, 5.500%, 4/01/2016	$	104,237
	90,000		General Mills, Inc., Note, 5.700%, 02/15/2017		92,412
	135,000		Kellogg Co., 4.250%, 03/06/2013		138,547
	40,000		Kellogg Co., Sr. Unsub., 5.125%, 12/03/2012		42,513
	75,000		Kraft Foods, Inc., Note, 5.250%, 10/01/2013		77,948
	10,000		Kraft Foods, Inc., Note, 6.250%, 06/01/2012		10,740
	75,000		PepsiCo, Inc., 4.650%, 02/15/2013		80,683
			TOTAL		547,080
			Consumer Non-Cyclical Health Care--0.2%
	40,000		Baxter International, Inc., 6.250%, 12/01/2037		42,564
	100,000		Medtronic, Inc., Note, Series B, 4.375%, 09/15/2010		102,204
	190,000		Quest Diagnostics, Inc., Sr. Unsecd. Note, 6.400%, 07/01/2017		174,476
			TOTAL		319,244
			Consumer Non-Cyclical Pharmaceuticals--0.2%
	60,000		Abbott Laboratories, 5.150%, 11/30/2012		64,219
	125,000		Eli Lilly & Co., Unsecd. Note, 6.570%, 01/01/2016		137,120
	100,000		Genentech, Inc., Note, 4.750%, 07/15/2015		98,403
	100,000		Pharmacia Corp., Sr. Deb., 6.500%, 12/01/2018		112,702
			TOTAL		412,444
			Consumer Non-Cyclical Products--0.1%
	75,000		Philips Electronics NV, 5.750%, 03/11/2018		70,708
	80,000		Whirlpool Corp., 5.500%, 03/01/2013		69,617
			TOTAL		140,325
			Consumer Non-Cyclical Supermarkets--0.0%
	40,000		Kroger Co., Bond, 6.900%, 04/15/2038		40,730
	50,000		Sysco Corp., Sr. Unsecd. Note, 4.200%, 02/12/2013		49,907
			TOTAL		90,637
			Consumer Non-Cyclical Tobacco--0.0%
	90,000		Philip Morris International, Inc., 5.650%, 05/16/2018		90,312
Principal Amount					Value
			CORPORATE BONDS--continued
			Energy - Independent--0.2%
$	105,000		Anadarko Petroleum Corp., Sr. Unsecd. Note, 5.950%, 09/15/2016	$	94,775
	50,000		Canadian Natural Resources Ltd., 4.900%, 12/01/2014		43,425
	75,000		XTO Energy, Inc., 6.375%, 06/15/2038		66,826
	60,000		XTO Energy, Inc., 6.750%, 08/01/2037		56,543
	65,000		XTO Energy, Inc., Sr. Unsecd. Note, 6.250%, 08/01/2017		63,321
			TOTAL		324,890
			Energy - Integrated--0.1%
	200,000		Husky Oil Ltd., Deb., 7.550%, 11/15/2016		185,502
			Energy - Oil Field Services--0.0%
	80,000		Weatherford International Ltd., 6.000%, 03/15/2018		64,500
			Energy - Refining--0.1%
	100,000		Valero Energy Corp., 6.875%, 04/15/2012		100,341
	115,000		Valero Energy Corp., 7.500%, 04/15/2032		96,714
	35,000		Valero Energy Corp., Note, 4.750%, 04/01/2014		32,487
			TOTAL		229,542
			Financial Institution - Banking--0.6%
	125,000	2,3	Barclays Bank PLC, 5.926%, 12/31/2049		48,125
	155,000		Citigroup, Inc., Sr. Unsecd. Note, 6.875%, 03/05/2038		142,264
	150,000		Credit Suisse First Boston USA, Inc., 5.125%, 01/15/2014		144,407
	100,000		JPMorgan Chase & Co., Sub. Note, 5.125%, 09/15/2014		95,113
	200,000		PNC Funding Corp., Sub. Note, 5.625%, 02/01/2017		187,924
	100,000		PNC Funding Corp., Sub. Note, 7.500%, 11/01/2009		100,037
	100,000		Popular North America, Inc., 5.650%, 04/15/2009		99,422
	200,000		Wachovia Bank N.A., 4.800%, 11/01/2014		185,018
	30,000		Wachovia Corp., 5.750%, 02/01/2018		29,632
	100,000		Wells Fargo Bank, N.A., Sub. Note, 6.450%, 02/01/2011		103,601
	100,000		Wilmington Trust Corp., Sub. Note, 8.500%, 04/02/2018		107,841
	75,000		Zions Bancorp, Sub. Note, 5.500%, 11/16/2015		53,138
			TOTAL		1,296,522
Principal Amount					Value
			CORPORATE BONDS--continued
			Financial Institution - Brokerage--0.7%
$	130,000		Bear Stearns Cos., Inc., Sr. Unsecd. Note, 7.250%, 02/01/2018	$	138,476
	250,000		Blackrock, Inc., 6.250%, 09/15/2017		245,037
	120,000		Eaton Vance Corp., 6.500%, 10/02/2017		104,225
	150,000	2,3	FMR Corp., Bond, 7.570%, 06/15/2029		139,038
	25,000		Goldman Sachs Group, Inc., 6.125%, 02/15/2033		21,264
	150,000		Goldman Sachs Group, Inc., Note, 5.250%, 10/15/2013		143,654
	170,000		Goldman Sachs Group, Inc., Sr. Note, 6.150%, 04/01/2018		155,790
	100,000		Invesco Ltd., Note, 4.500%, 12/15/2009		93,400
	75,000		Janus Capital Group, Inc., Sr. Note, 6.250%, 06/15/2012		57,092
	80,000		Janus Capital Group, Inc., Sr. Note, 6.700%, 06/15/2017		51,214
	85,000		Merrill Lynch & Co., Inc., Note, 4.125%, 09/10/2009		84,743
	100,000		Morgan Stanley, Note, 4.000%, 01/15/2010		99,619
	35,000		Morgan Stanley, Sr. Unsecd. Note, 5.950%, 12/28/2017		30,473
	70,000		Morgan Stanley, Sr. Unsecd. Note, 6.000%, 04/28/2015		63,943
	110,000		Morgan Stanley, Sr. Unsecd. Note, 6.625%, 04/01/2018		101,157
			TOTAL		1,529,125
			Financial Institution - Finance Noncaptive--0.6%
	100,000		American Express Co., 4.750%, 06/17/2009		100,503
	100,000		American Express Co., 4.875%, 07/15/2013		93,957
	150,000		American Express Credit Corp., 5.875%, 05/02/2013		146,456
	100,000		American General Finance Corp., 4.000%, 03/15/2011		55,125
	120,000		Capital One Capital IV, 6.745%, 02/17/2037		60,305
	90,000		Capmark Financial Group, Inc., Company Guarantee, Series WI, 6.300%, 05/10/2017		29,768
	240,000		General Electric Capital Corp., 5.625%, 05/01/2018		222,179
	200,000		General Electric Capital Corp., Note, 4.875%, 03/04/2015		190,050
	100,000		HSBC Finance Capital Trust IX, Note, 5.911%, 11/30/2035		54,391
	200,000	2,3	ILFC E-Capital Trust I, 5.900%, 12/21/2065		63,012
	100,000		International Lease Finance Corp., 4.875%, 09/01/2010		84,625
	100,000		International Lease Finance Corp., 6.625%, 11/15/2013		73,190
			TOTAL		1,173,561
Principal Amount					Value
			CORPORATE BONDS--continued
			Financial Institution - Insurance - Health--0.1%
$	75,000		Aetna US Healthcare, 5.750%, 06/15/2011	$	74,565
	60,000		CIGNA Corp., 6.350%, 03/15/2018		53,533
	100,000		UnitedHealth Group, Inc., Bond, 6.000%, 02/15/2018		95,345
			TOTAL		223,443
			Financial Institution - Insurance - Life--0.2%
	200,000		AXA-UAP, Sub. Note, 8.600%, 12/15/2030		152,449
	85,000	2,3	Pacific Life Global Funding, Note, 5.150%, 04/15/2013		83,058
	120,000		Prudential Financial, Inc., 5.150%, 01/15/2013		112,947
	85,000		Prudential Financial, Inc., 6.625%, 12/01/2037		65,074
			TOTAL		413,528
			Financial Institution - Insurance - P&C--0.4%
	90,000		ACE INA Holdings, Inc., 5.600%, 05/15/2015		84,510
	91,000		ACE INA Holdings, Inc., Sr. Note, 5.700%, 02/15/2017		84,886
	100,000		Allstate Corp., Unsecd. Note, 5.000%, 08/15/2014		94,639
	75,000		CNA Financial Corp., 6.500%, 08/15/2016		54,330
	20,000		Chubb Corp., Sr. Note, 5.750%, 05/15/2018		19,373
	100,000	2,3	Liberty Mutual Group, Inc., Unsecd. Note, 5.750%, 03/15/2014		83,025
	100,000		The Travelers Cos., Inc., Sr. Unsecd. Note, 5.500%, 12/01/2015		97,428
	500,000	2,3	ZFS Finance USA Trust I, Jr. Sub. Note, 6.150%, 12/15/2065		262,500
			TOTAL		780,691
			Financial Institution - REITs--0.1%
	40,000		AMB Property LP, 6.300%, 06/01/2013		25,728
	20,000		Equity One, Inc., Bond, 6.000%, 09/15/2017		12,994
	75,000		Liberty Property LP, 6.625%, 10/01/2017		53,960
	100,000		Prologis, Sr. Note, 5.500%, 04/01/2012		62,614
	95,000		Simon Property Group LP, 6.125%, 05/30/2018		71,918
			TOTAL		227,214
			Technology--0.5%
	40,000		BMC Software, Inc., 7.250%, 06/01/2018		35,710
	60,000		Cisco Systems, Inc., Sr. Unsecd. Note, 5.500%, 02/22/2016		64,362
	200,000		Dell Computer Corp., Deb., 7.100%, 04/15/2028		184,852
Principal Amount					Value
			CORPORATE BONDS--continued
			Technology--continued
$	75,000		Dun & Bradstreet Corp., Sr. Unsecd. Note, 5.500%, 03/15/2011	$	75,758
	80,000		Fiserv, Inc., Sr. Note, 6.800%, 11/20/2017		69,332
	65,000		Harris Corp., 5.950%, 12/01/2017		55,287
	100,000		Hewlett-Packard Co., Note, 5.400%, 03/01/2017		104,060
	125,000		Hewlett-Packard Co., Note, 6.500%, 07/01/2012		138,314
	100,000		IBM Corp., Deb., 8.375%, 11/01/2019		123,142
	70,000		KLA-Tencor Corp., 6.900%, 05/01/2018		53,344
	150,000		Oracle Corp., 6.500%, 04/15/2038		163,775
			TOTAL		1,067,936
			Transportation - Airlines--0.1%
	75,000		Southwest Airlines Co., 6.500%, 03/01/2012		70,222
	50,000		Southwest Airlines Co., Deb., 7.375%, 03/01/2027		38,946
			TOTAL		109,168
			Transportation - Railroads--0.2%
	75,000		Burlington Northern Santa Fe Corp., 4.875%, 01/15/2015		71,760
	100,000		Canadian Pacific RR, 7.125%, 10/15/2031		78,341
	100,000		Norfolk Southern Corp., Note, 6.750%, 02/15/2011		103,086
	100,000		Union Pacific Corp., 4.875%, 01/15/2015		94,626
			TOTAL		347,813
			Transportation - Services--0.1%
	90,000	2,3	Enterprise Rent-A-Car USA Finance Co., 6.375%, 10/15/2017		54,432
	100,000		FedEx Corp., Note, 5.500%, 08/15/2009		101,256
			TOTAL		155,688
			Utility - Electric--0.8%
	150,000		Alabama Power Co., 5.700%, 02/15/2033		137,544
	100,000		Cleveland Electric Illuminating Co., Sr. Unsecd. Note, 5.950%, 12/15/2036		72,954
	105,000		Commonwealth Edison Co., 1st Mtg. Bond, 5.800%, 03/15/2018		100,026
	100,000		Consolidated Edison Co., Sr. Unsecd. Note, 5.500%, 09/15/2016		99,614
	60,000	2,3	Electricite De France, 5.500%, 01/26/2014		62,084
	100,000		Exelon Generation Co. LLC, Note, 5.350%, 01/15/2014		94,497
	100,000		FPL Group Capital, Inc., Unsecd. Note, 5.350%, 06/15/2013		103,555
Principal Amount					Value
			CORPORATE BONDS--continued
			Utility - Electric--continued
$	100,000		FirstEnergy Corp., 6.450%, 11/15/2011	$	99,784
	48,018	2,3	Great River Energy, 1st Mtg. Note, 5.829%, 07/01/2017		44,773
	40,000		National Rural Utilities Cooperative Finance Corp., 5.450%, 02/01/2018		38,290
	90,000		National Rural Utilities Cooperative Finance Corp., Collateral Trust, 5.500%, 07/01/2013		92,032
	80,000		Northern States Power Co., MN, 1st Mtg. Bond, 5.250%, 03/01/2018		78,311
	50,000		PPL Energy Supply LLC, Sr. Unsecd. Note, 6.000%, 12/15/2036		32,788
	100,000		PSEG Power LLC, Company Guarantee, 7.750%, 04/15/2011		104,081
	75,000		PSI Energy, Inc., Bond, 6.050%, 06/15/2016		72,372
	50,000		Pacific Gas & Electric Co., 6.050%, 03/01/2034		51,396
	100,000		Pacific Gas & Electric Co., Unsecd. Note, 4.200%, 03/01/2011		99,828
	90,000		Union Electric Co., 6.000%, 04/01/2018		85,463
	90,000		Virginia Electric & Power Co., Sr. Unsecd. Note, 5.100%, 11/30/2012		91,310
			TOTAL		1,560,702
			Utility - Natural Gas Distributor--0.0%
	40,000		Atmos Energy Corp., 5.125%, 01/15/2013		37,877
			Utility - Natural Gas Pipelines--0.2%
	150,000		Consolidated Natural Gas Co., 5.000%, 12/01/2014		141,453
	75,000		Duke Capital Corp., Sr. Note, 6.250%, 02/15/2013		75,086
	40,000		Enbridge, Inc., Sr. Note, 5.600%, 04/01/2017		32,672
	100,000		Kinder Morgan Energy Partners LP, Sr. Unsecd. Note, 5.800%, 03/15/2035		83,871
			TOTAL		333,082
			TOTAL CORPORATE BONDS (IDENTIFIED COST $18,173,071)		16,209,174
			GOVERNMENT/AGENCY--0.0%
			Sovereign--0.0%
	75,000		United Mexican States, 6.625%, 03/03/2015 (IDENTIFIED COST $80,766)		78,750
			GOVERNMENT AGENCIES--3.3%
	750,000		Federal Home Loan Mortgage Corp., 5.500%, 7/18/2016		848,135
	5,500,000		Federal National Mortgage Association, 4.375%, 3/15/2013		5,932,622
			TOTAL GOVERNMENT AGENCIES (IDENTIFIED COST $6,460,780)		6,780,757
Principal Amount or Shares					Value
			MORTGAGE-BACKED SECURITIES--0.0%
$	15,115		Federal National Mortgage Association Pool 408761, 7.000%, 12/1/2012	$	15,598
	9,858		Federal National Mortgage Association Pool 512255, 7.500%, 9/1/2014		10,325
	19,433		Federal National Mortgage Association Pool 609554, 7.500%, 10/1/2016		20,457
			TOTAL MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $45,830)		46,380
			U.S. TREASURY--1.5%
	250,000		United States Treasury Bill, 0.190%, 7/2/2009		249,692
	1,300,000	4	United States Treasury Bond, 4.500%, 5/15/2038		1,511,555
	1,000,000	4	United States Treasury Note, 2.750%, 10/31/2013		1,044,961
	150,000	4	United States Treasury Note, 4.125%, 5/15/2015		167,169
			TOTAL U.S. TREASURY (IDENTIFIED COST $3,088,237)		2,973,377
			EXCHANGE-TRADED FUND--3.6%
	193,000		iShares MSCI EAFE Index Fund (IDENTIFIED COST $7,743,224)		7,469,100
			MUTUAL FUNDS--22.2% 5
	23,540		Emerging Markets Fixed Income Core Fund		409,010
	3,016,597		Federated Mortgage Core Portfolio		29,803,974
	914,135		High Yield Bond Portfolio		4,396,991
	11,190,400	6	Prime Value Obligations Fund, Institutional Shares, 1.75%		11,190,400
			TOTAL MUTUAL FUNDS (IDENTIFIED COST $46,524,561)		45,800,375
			TOTAL INVESTMENTS--100.1% (IDENTIFIED COST $230,844,663) 7		206,282,384
			OTHER ASSETS AND LIABILITIES - NET--(0.1)% 8		(166,563	)
			TOTAL NET ASSETS--100%	$	206,115,821

At January 31, 2009, the Fund had the following outstanding futures contracts:

	Description	Number of Contracts	Notional Value	Expiration Date	Unrealized Depreciation
1	Euro-Bond Long Futures	19	$ 2,325,030	March 2009	$ (10,948)
1	United States Treasury Bond 30-Year Long Futures	29	$ 3,674,391	March 2009	$ (68,517)
1	United States Treasury Note 2-Year Short Futures	60	$13,057,500	March 2009	$ (27,534)
	TOTAL UNREALIZED DEPRECIATION ON FUTURES CONTRACTS				$(106,999)

At January 31, 2009, the Fund had the following open swap contracts:

Credit Default Swap Counterparty	Reference Entity	Buy/ Sell	Pay/ Re- ceive Fixed Rate	Expiration Date	Implied Credit Spread at 1/31/2009 9	Notional Amount	Market Value		Upfront Premiums Paid/ (Received)		Unrealized Appre- ciation (Deprec- iation	)
Merrill Lynch, Pierce, Fenner & Smith	Series 10 Investment Grade Index	Sell	1.55%	6/20/2013	2.23%	$4,880,000	(115,370	)	16,197		$(131,567	)
Merrill Lynch, Pierce, Fenner & Smith	Series 11 Investment Grade Index	Sell	1.50%	12/20/2013	1.45%	$5,000,000	(102,186	)	(112,826	)	$ 10,640
Banc of America Securities LLC	Series 11 High Yield CDX Index	Sell	5.00%	12/20/2013	6.42%	$1,980,000	(513,111	)	(408,375	)	$(104,736	)
NET UNREALIZED DEPRECIATION OF CREDIT DEFAULT SWAPS											$(225,663	)

Net Unrealized Depreciation on Futures Contracts and Swap Contracts is included in "Other Assets and Liabilities - Net."

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, 2009, these restricted securities amounted to $988,784, which represented 0.5% of total net assets.

3 Denotes a restricted security that may be resold without restriction to "qualified institutional buyers" as defined in Rule 144A under the Securities Act of 1933 and that the Fund has determined to be liquid under criteria established by the Fund's Board of Trustees (the "Trustees"). At January 31, 2009, these liquid restricted securities amounted to $988,784, which represented 0.5% of total net assets.

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

5 Affiliated companies.

6 7-Day net yield.

7 The cost of investments for federal tax purposes amounts to $230,846,177.

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

9 Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular reference entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity's credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as "Defaulted" indicates a credit event has occurred for the reference entity or obligation.

Note: The categories of investments are shown as a percentage of total net assets at January 31, 2009.

Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below:

Level 1--quoted prices in active markets for identical securities

Level 2--other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

Level 3--significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used, as of January 31, 2009, in valuing the Fund's assets carried at fair value:

Valuation Inputs	Investments in Securities	Other Financial Instruments*
Level 1--Quoted Prices and Investments in Mutual Funds**	$176,031,217	$(106,999	)
Level 2--Other Significant Observable Inputs	30,251,167	(225,663	)
Level 3--Significant Unobservable Inputs	- --	--
TOTAL	$206,282,384	$(332,662	)

* Other financial instruments include futures contracts and swaps contracts.

** Emerging Markets Fixed Income Core Fund (EMCORE) is an affiliated limited partnership offered only to registered investment companies and other accredited investors (see Note 5 to the financial statements). EMCORE invests primarily in emerging markets fixed-income securities.

The following acronyms are used throughout this portfolio:

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

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

January 31, 2009 (unaudited)

Assets:
Total investments in securities, at value including $45,800,375 of investments in affiliated issuers (Note 5) (identified cost $230,844,663)			$	206,282,384
Cash				7,775
Income receivable				516,519
Receivable for investments sold				6,064,809
Receivable for shares sold				491,206
Receivable for periodic payments from swap contracts				28,431
Other receivables				4,750
TOTAL ASSETS				213,395,874
Liabilities:
Payable for investments purchased	$	6,103,655
Payable for shares redeemed		199,232
Payable for daily variation margin		21,609
Swaps, at value (premium received $505,004)		730,667
Payable for distribution services fee (Note 5)		35,831
Payable for shareholder services fee (Note 5)		74,146
Accrued expenses		114,913
TOTAL LIABILITIES				7,280,053
Net assets for 23,031,333 shares outstanding			$	206,115,821
Net Assets Consist of:
Paid-in capital			$	314,047,729
Net unrealized depreciation of investments, futures contracts, swap contracts and translation of assets and liabilities in foreign currency				(24,894,941	)
Accumulated net realized loss on investments, futures contracts, swap contracts and foreign currency transactions				(82,952,589	)
Distributions in excess of net investment income				(84,378	)
TOTAL NET ASSETS			$	206,115,821

Statement of Assets and Liabilities-continued

Net Asset Value, Offering Price and Redemption Proceeds Per Share
Institutional Shares:
Net asset value per share ($47,650,368 ÷ 5,298,653 shares outstanding), no par value, unlimited shares authorized	$8.99
Offering price per share	$8.99
Redemption proceeds per share	$8.99
Class A Shares:
Net asset value per share ($104,151,824 ÷ 11,613,632 shares outstanding), no par value, unlimited shares authorized	$8.97
Offering price per share (100/94.50 of $8.97)	$9.49
Redemption proceeds per share	$8.97
Class C Shares:
Net asset value per share ($53,738,412 ÷ 6,054,882 shares outstanding), no par value, unlimited shares authorized	$8.88
Offering price per share	$8.88
Redemption proceeds per share (99.00/100 of $8.88)	$8.79
Class K Shares:
Net asset value per share ($575,217 ÷ 64,166 shares outstanding), no par value, unlimited shares authorized	$8.96
Offering price per share	$8.96
Redemption proceeds per share	$8.96

See Notes which are an integral part of the financial Statements

Statement of Operations

Six Months Ended January 31, 2009 (unaudited)

Investment Income:
Dividends (including $1,615,223 received from affiliated issuers (Note 5) and net of foreign taxes withheld of $758)			$	3,214,226
Interest				1,043,223
Investment income allocated from affiliated partnership (Note 5)				37,964
TOTAL INCOME				4,295,413
Expenses:
Investment adviser fee (Note 5)	$	939,341
Administrative personnel and services fee (Note 5)		136,109
Custodian fees		22,752
Transfer and dividend disbursing agent fees and expenses--Institutional Shares		30,583
Transfer and dividend disbursing agent fees and expenses--Class A Shares		98,899
Transfer and dividend disbursing agent fees and expenses--Class C Shares		40,698
Transfer and dividend disbursing agent fees and expenses--Class K Shares		1,333
Directors'/Trustees' fees		2,360
Auditing fees		11,058
Legal fees		3,988
Portfolio accounting fees		67,732
Distribution services fee--Class C Shares (Note 5)		247,622
Distribution services fee--Class K Shares (Note 5)		1,903
Shareholder services fee--Class A Shares (Note 5)		136,538
Shareholder services fee--Class C Shares (Note 5)		43,690
Account administration fee--Class A Shares		12,108
Account administration fee--Class C Shares		38,636
Share registration costs		28,071
Printing and postage		23,620
Insurance premiums		2,609
Interest expense		302
Miscellaneous		5,490
EXPENSES BEFORE ALLOCATION		1,895,442
Expenses allocated from affiliated partnership (Note 5)		180
TOTAL EXPENSES		1,895,622

Statement of Operations-continued

Waivers and Reimbursements (Note 5):
Waiver/reimbursement of investment adviser fee	$	(40,178	)
Waiver of administrative personnel and services fee		(26,473	)
Reimbursement of transfer and dividend disbursing agent fees and expenses--Class A Shares		(22,058	)
Reimbursement of transfer and dividend disbursing agent fees and expenses--Class C Shares		(3,953	)
TOTAL WAIVERS AND REIMBURSEMENTS				$	(92,662	)
Net expenses							$	1,802,960
Net investment income								2,492,453
Realized and Unrealized Gain (Loss) on Investments, Futures Contracts, Swap Contracts and Foreign Currency Transactions:
Net realized loss on investments and foreign currency transactions (including realized loss of $690,728 on sales of investments in affiliated issuers)								(64,780,561	)
Net realized gain on futures contracts								329,090
Net realized gain on swap contracts								36,848
Net realized loss and foreign currency transactions allocated from affiliated partnership								(122,350	)
Net change in unrealized depreciation of investments and translation of assets and liabilities in foreign currency								(16,979,064	)
Net change in unrealized appreciation of futures contracts								(162,872	)
Net change in unrealized depreciation of swap contracts								(225,663	)
Net realized and unrealized loss on investments, futures contracts, swap contracts and foreign currency transactions								(81,904,572	)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS							$	(79,412,119	)

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

		Six Months Ended (unaudited) 1/31/2009			Year Ended 7/31/2008
Increase (Decrease) in Net Assets
Operations:
Net investment income	$	2,492,453		$	5,416,027
Net realized loss on investments including allocations from partnership, futures contracts, swap contracts and foreign currency transactions		(64,536,973	)		(17,550,175	)
Net change in unrealized appreciation/depreciation of investments, futures contracts, swap contracts and translation of assets and liabilities in foreign currency		(17,367,599	)		(16,954,796	)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		(79,412,119	)		(29,088,944	)
Distributions to Shareholders:
Distributions from net investment income
Institutional Shares		(1,597,008	)		(1,062,997	)
Class A Shares		(3,103,691	)		(1,792,159	)
Class C Shares		(1,038,914	)		(1,022,750	)
Class K Shares		(16,435	)		(302	)
Distributions from net realized gain on investments, futures contracts, swap contracts and foreign currency transactions
Institutional Shares		- --			(1,999,436	)
Class A Shares		- --			(3,699,741	)
Class C Shares		- --			(2,473,216	)
Class K Shares		- --			(818	)
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS		(5,756,048	)		(12,051,419	)
Share Transactions:
Proceeds from sale of shares		20,685,224			79,093,725
Proceeds from shares issued in connection with the tax-free transfer of assets from Federated Conservative Allocation Fund		- --			52,857,254
Proceeds from shares issued in connection with the tax-free transfer of assets from Federated Growth Allocation Fund		- --			48,170,456
Proceeds from shares issued in connection with the tax-free transfer of assets from Federated Moderate Allocation Fund		- --			93,208,403
Net asset value of shares issued to shareholders in payment of distributions declared		5,308,890			11,084,827
Cost of shares redeemed		(42,856,880	)		(83,721,442	)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		(16,862,766	)		200,693,223
Change in net assets		(102,030,933	)		159,552,860
Net Assets:
Beginning of period		308,146,754			148,593,894
End of period (including undistributed (distributions in excess of) net investment income of $(84,378) and $3,179,217, respectively)	$	206,115,821		$	308,146,754

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

January 31, 2009 (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 nine 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. Each portfolio pays its own expenses. 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 investment objective of the Fund is the possibility of long-term growth of capital and income.

On October 26, 2007, the Fund received a tax-free transfer of assets from the Federated Conservative Allocation Fund (FCAF), Federated Growth Allocation Fund (FGAF) and Federated Moderate Allocation Fund (FMAF) (collectively, "Acquired Funds") as follows:

	Shares of the Fund Issued	Acquired Funds Net Assets Received	Unrealized Appreciation 1	Net Assets of the Fund Immediately Prior to Combination	Net Assets of the Fund Immediately After Combination
FCAF	3,640,126	$ 52,857,254	$1,026,380
FGAF	3,325,359	$ 48,170,456	$1,009,181
FMAF	6,421,560	$ 93,208,403	$1,945,499
TOTAL	13,387,045	$194,236,113	$3,981,060	$161,345,386	$355,581,499

1 Unrealized appreciation is included in the Acquired Funds Net Assets Received amount shown above.

2. SIGNIFICANT ACCOUNTING POLICIES

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

INVESTMENT VALUATION

In calculating its net asset value (NAV), the Fund generally values investments as follows:

• Equity securities listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market.
• Fixed-income securities acquired with remaining maturities greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Trustees.
• Fixed-income securities acquired with remaining maturities of 60 days or less are valued at their cost (adjusted for the accretion of any discount or amortization of any premium).
• Shares of other mutual funds are valued based upon their reported NAVs.
• Derivative contracts listed on exchanges are valued at their reported settlement or closing price.
• Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Trustees.

If the Fund cannot obtain a price or price evaluation from a pricing service for an investment, the Fund may attempt to value the investment based upon the mean of bid and asked quotations or fair value the investment based on price evaluations, from one or more dealers. If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could purchase or sell an investment at the price used to calculate the Fund's NAV.

Fair Valuation and Significant Events Procedures

The Trustees have authorized the use of pricing services to provide evaluations of the current fair value of certain investments for purposes of calculating the NAV. Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a "bid" evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and asked for the investment (a "mid" evaluation). The Fund normally uses bid evaluations for U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for other types of fixed-income securities and OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Trustees.

The Trustees also have adopted procedures requiring an investment to be priced at its fair value whenever the Adviser determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment's value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:

• With respect to securities traded in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures or options contracts;
• With respect to price evaluations of fixed-income securities determined before the close of regular trading on the NYSE, actions by the Federal Reserve Open Market Committee and other significant trends in U.S. fixed-income markets;
• Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; and
• Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, a natural disaster affecting the issuer's operations or regulatory changes or market developments affecting the issuer's industry.

The Trustees have approved the use of a pricing service to determine the fair value of equity securities traded principally in foreign markets when the Adviser determines that there has been a significant trend in the U.S. equity markets or in index futures trading. For other significant events, the Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Fund will determine the fair value of the investment using another method approved by the Trustees.

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

Investment transactions are accounted for on a trade-date basis. Realized gains and losses from investment transactions are recorded on an identified cost basis. Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Foreign dividends are recorded on the ex-dividend date or when the Fund is informed of the ex-dividend date. Distributions of net investment income 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 may bear distribution services fees, shareholder services fees, account administration fees and certain transfer and dividend disbursing agent fees unique to those classes. 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. The Fund complies with the provisions of Financial Accounting Standards Board (FASB) Interpretation No. 48 (FIN 48), "Accounting for Uncertainty in Income Taxes." As of and during the six months ended January 31, 2009, the Fund did not have a liability for any uncertain tax positions. The Fund recognizes interest and penalties, if any, related to tax liabilities as income tax expense in the Statement of Operations. As of January 31, 2009, tax years 2005 through 2008 remain subject to examination by the Fund's major tax jurisdictions, which include the United States of America and the Commonwealth of Massachusetts.

The Fund may be subject to taxes imposed by governments of countries in which it invests. Such taxes are generally based on either income or gains earned or repatriated. The Fund accrues and applies such taxes to net investment income, net realized gains and net unrealized gains as income and/or gains are earned.

When-Issued and Delayed Delivery Transactions

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

Swap Contracts

Swap contracts involve two parties that agree to exchange the returns (or the differential in rates of return) earned or realized on particular predetermined investments, instruments, indices or other measures. The gross returns to be exchanged or "swapped" between parties are generally calculated with respect to a "notional amount" for a predetermined period of time. The Fund may enter into interest rate, total return, credit default, foreign exchange and other swap agreements.

The Fund uses credit default swaps to manage exposure to a given issuer or sector by either selling protection to increase exposure or buying protection to reduce exposure. The "buyer" in a credit default swap is obligated to pay the "seller" a periodic stream of payments over the term of the contract provided that no event of default on an underlying reference obligation has occurred. If an event of default occurs, the seller must pay the buyer the full notional value, or the "par value,'' of the reference obligation in exchange for the reference obligation. In connection with these agreements, securities may be identified as collateral in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default or bankruptcy/insolvency. Recovery values are assumed by market makers considering either industry standard recovery rates or entity specific factors and considerations until a credit event occurs. If a credit event has occurred, the recovery value is typically determined by a facilitated auction whereby a minimum number of allowable broker bids, together with a specified valuation method, are used to calculate the settlement value. The maximum amount of the payment that may occur, as a result of a credit event payable by the protection seller, is equal to the notional amount of the underlying index or security. The Fund's maximum exposure to loss of the notional value of credit default swaps outstanding at January 31, 2009 is $11,860,000. Risks may arise upon entering into swap agreements from the potential inability of the counterparties to meet the terms of their contract from unanticipated changes in the value of the swap agreement.

Upfront payments received or paid by the Fund will be reflected as an asset or liability on the Statement of Assets and Liabilities. Changes in the value of swap contracts are included in "Swaps, at value," on the Statement of Assets and Liabilities, and periodic payments are reported as net realized gain/loss on swap contracts in the Statement of Operations. For the six months ended January 31, 2009, the Fund had a net realized gain on swap contracts of $36,848.

Swap contracts outstanding at period end are listed after the Fund's portfolio of investments.

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, 2009, the Fund had a net realized gain on futures contracts of $329,090.

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

Foreign Currency Translation

The accounting records of the Fund are maintained in U.S. dollars. All assets and liabilities denominated in foreign currencies (FCs) are translated into U.S. dollars based on the rates of exchange of such currencies against U.S. dollars on the date of valuation. Purchases and sales of securities, income and expenses are translated at the rate of exchange quoted on the respective date that such transactions are recorded. The Fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.

Reported net realized foreign exchange gains or losses arise from sales of portfolio securities, sales and maturities of short-term securities, sales of FCs, currency gains or losses realized between the trade and settlement dates on securities transactions, the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities other than investments in securities at fiscal year end, resulting from changes in the exchange rate.

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 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.

Other

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

3. SHARES OF BENEFICIAL INTEREST

The following tables summarize share activity:

	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Institutional Shares:	Shares			Amount		Shares			Amount
Shares sold	108,344		$	1,103,454		453,471		$	6,231,682
Shares issued to shareholders in payment of distributions declared	165,994			1,563,667		213,271			2,951,673
Shares redeemed	(700,215	)		(6,850,172	)	(861,304	)		(11,695,320	)
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS	(425,877	)	$	(4,183,051	)	(194,562	)	$	(2,511,965	)
	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Class A Shares:	Shares			Amount		Shares			Amount
Shares sold	1,554,512		$	16,150,280		4,581,561		$	60,907,542
Proceeds from shares issued in connection with the tax-free transfer of assets from Federated Conservative Allocation Fund	- --			- --		2,233,258			32,583,802
Proceeds from shares issued in connection with the tax-free transfer of assets from Federated Growth Allocation Fund	- --			- --		1,400,840			20,438,742
Proceeds from shares issued in connection with the tax-free transfer of assets from Federated Moderate Allocation Fund	- --			- --		3,731,944			54,450,162
Shares issued to shareholders in payment of distributions declared	293,825			2,761,954		349,074			4,817,220
Shares redeemed	(2,504,405	)		(25,541,555	)	(3,748,791	)		(50,990,523	)
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS	(656,068	)	$	(6,629,321	)	8,547,886		$	122,206,945
	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Class C Shares:	Shares			Amount		Shares			Amount
Shares sold	290,207		$	3,026,915		840,926		$	11,168,941
Proceeds from shares issued in connection with the tax-free transfer of assets from Federated Conservative Allocation Fund	- --			- --		1,406,868			20,273,452
Proceeds from shares issued in connection with the tax-free transfer of assets from Federated Growth Allocation Fund	- --			- --		1,924,519			27,731,714
Proceeds from shares issued in connection with the tax-free transfer of assets from Federated Moderate Allocation Fund	- --			- --		2,689,616			38,758,241
Shares issued to shareholders in payment of distributions declared	103,849			966,834		243,200			3,314,815
Shares redeemed	(1,009,567	)		(10,180,104	)	(1,594,694	)		(20,976,254	)
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS	(615,511	)	$	(6,186,355	)	5,510,435		$	80,270,909
	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Class K Shares:	Shares			Amount		Shares			Amount
Shares sold	33,598		$	404,575		59,681		$	785,560
Shares issued to shareholders in payment of distributions declared	1,748			16,435		81			1,119
Shares redeemed	(27,732	)		(285,049	)	(4,543	)		(59,345	)
NET CHANGE RESULTING FROM CLASS K SHARE TRANSACTIONS	7,614		$	135,961		55,219		$	727,334
NET CHANGE RESULTING FROM SHARE TRANSACTIONS	(1,689,842	)	$	(16,862,766	)	13,918,978		$	200,693,223

4. FEDERAL TAX INFORMATION

At January 31, 2009, the cost of investments for federal tax purposes was $230,846,177. The net unrealized depreciation of investments for federal tax purposes excluding any unrealized appreciation/depreciation resulting from futures contracts and swap contracts was $24,563,793. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $4,727,267 and net unrealized depreciation from investments for those securities having an excess of cost over value of $29,291,060.

At July 31, 2008, the Fund had a capital loss carryforward of $49,998 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 2016.

5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated MDTA LLC is the Fund's investment adviser (the "Adviser"). The advisory agreement between the Fund and the Adviser provides for an annual fee equal to 0.75% of the Fund's average daily net assets. Prior to December 8, 2008, the Adviser agreed to waive all or a portion of the advisory fee and/or reimburse certain operating expenses (excluding interest, taxes and brokerage commissions) in order to contractually limit the Fund's aggregate annual operating expenses to no more than the following annual percentages for certain Classes of the Fund based on average daily net assets:

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

In addition, subject to the terms described in the Expense Limitation note, the Adviser may voluntarily choose to waive any portion of its fee. The Adviser can modify or terminate this voluntary waiver at any time at its sole discretion. For the six months ended January 31, 2009, the Adviser voluntarily waived $33,680 of its fee. In addition, an affiliate of the Adviser reimbursed $26,011 of transfer and dividend disbursing agent fees and expenses.

Administrative Fee

Federated Administrative Services (FAS), under the Administrative Services 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. Subject to the terms described in the Expense Limitation note, 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, 2009, the net fee paid to FAS was 0.088% of average daily net assets of the Fund. FAS waived $26,473 of its fee.

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 at the following percentages of average daily net assets annually, to compensate FSC:

Share Class Name	Percentage of Average Daily Net Assets of Class
Class A Shares	0.05%
Class C Shares	0.75%
Class K Shares	0.50%

Subject to the terms described in the Expense Limitation note, 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, 2009, FSC retained $20,620 of fees paid by the Fund. For the six months ended January 31, 2009, the Fund's Class A Shares did not incur a distribution services fee; however it may begin to incur this fee upon approval of the Trustees. On November 15, 2007, the Trustees approved an amendment to the Plan to reduce the distribution services fee for the Fund's Class A Shares from 0.25% to 0.05%. The amendment to the Plan became effective for the Fund on March 31, 2008.

Sales Charges

Front-end sales charges and contingent deferred sales charges (CDSC) do not represent expenses of the Fund. They are deducted from the proceeds of sales of Fund shares prior to investment or from redemption proceeds prior to remittance, as applicable. For the six months ended January 31, 2009, FSC retained $11,718 in sales charges from the sale of Class A Shares. FSC also retained $2,711 of CDSC relating to redemptions of Class C Shares.

Shareholder Services Fee

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. Subject to the terms described in the Expense Limitation note, FSSC may voluntarily reimburse the Fund for shareholder services fees. This voluntary reimbursement can be modified or terminated at any time. For the six months ended January 31, 2009, FSSC did not receive any fees paid by the Fund.

Expense Limitation

The Adviser and its affiliates (which may include FSC, FAS and FSSC) have voluntarily agreed to waive their fees and/or reimburse expenses so that the total operating expenses (as shown in the financial highlights, but excluding expenses allocated from partnerships) paid by the Fund's Institutional Shares, Class A Shares, Class C Shares and Class K Shares (after the voluntary waivers and reimbursements) will not exceed 1.05%, 1.30%, 2.05% and 1.79%, respectively, for the fiscal year ending July 31, 2009. Although these actions are voluntary, the Adviser and its affiliates have agreed to continue these waivers and/or reimbursements at least through September 30, 2009.

General

Certain 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 affiliated mutual funds. For the six months ended January 31, 2009, the Adviser reimbursed $6,498. Transactions with affiliated companies during the six months ended January 31, 2009 were as follows:

Affiliates	Balance of Shares Held 7/31/2008	Purchases/ Additions	Sales/ Reductions	Balance of Shares Held 1/31/2009	Value	Dividend Income/ Allocated Investment Income
Emerging Markets Fixed Income Core Fund	37,605	64,361	78,426	23,540	$ 409,010	$ 37,964
Federated Mortgage Core Portfolio	4,634,906	378,853	1,997,162	3,016,597	$29,803,974	$1,186,732
High Yield Bond Portfolio	544,156	444,520	74,541	914,135	$ 4,396,991	$ 235,405
Prime Value Obligations Fund, Institutional Shares	19,839,871	49,984,948	58,634,419	11,190,400	$11,190,400	$ 193,086
TOTAL OF AFFILIATED TRANSACTIONS	25,056,538	50,872,682	60,784,548	15,144,672	$45,800,375	$1,653,187

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, an affiliate to 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 or upon request from the Fund.

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 EMCORE, a series of Core Trust II, is to achieve total return on its 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, realized and 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 or upon request from the Fund.

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, 2009, were as follows:

Purchases	$	244,017,690
Sales	$	241,267,984

7. LINE OF CREDIT

The Fund participates in a $100,000,000 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, 2009, there were no outstanding loans. During the six months ended January 31, 2009, the Fund did not utilize the LOC.

8. INTERFUND LENDING

Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other funds advised by subsidiaries of Federated Investors, Inc., may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from other participating affiliated funds. As of January 31, 2009, there were no outstanding loans. During the six months ended January 31, 2009, the program was not utilized.

9. LEGAL PROCEEDINGS

Since October 2003, Federated Investors, Inc. and related entities (collectively, "Federated") and various Federated funds ("Federated Funds") have been 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 Federated Funds from the 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 entities have also been named as defendants in several additional lawsuits that 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 Federated Funds retained the law firm of Dickstein Shapiro LLP to represent the Federated Funds in these lawsuits. Federated and the Federated Funds, and their respective counsel have been defending this litigation, and none of the Federated Funds remains a defendant in any of the lawsuits (though some could potentially receive any recoveries as nominal defendants). 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 Federated 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 Federated Fund redemptions, reduced sales of Federated Fund shares or other adverse consequences for the Federated Funds.

10. RECENT ACCOUNTING PRONOUNCEMENTS

In March 2008, FASB released Statement of Financial Accounting Standards No. 161, "Disclosures about Derivative Instruments and Hedging Activities" (FAS 161). FAS 161 requires qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of gains and losses on derivative instruments and disclosures about credit-risk-related contingent features in derivative agreements. FAS 161 is effective for fiscal years and interim periods beginning after November 15, 2008. Management has concluded that the adoption of FAS 161 is not expected to have a material impact on the Fund's net assets or results of operations.

The Fund adopted FASB Staff Position No. 133-1 and FIN 45-4, "Disclosure about Credit Derivatives and Certain Guarantees: An Amendment of FASB Statement No.133 and FASB Interpretation No. 45" (FAS 133). The amendments require additional disclosure relating to credit derivatives. All changes to accounting policies have been made in accordance with the amendments and incorporated for the current period.

Evaluation and Approval of Advisory Contract - May 2008

FEDERATED MDT BALANCED FUND (THE "FUND")

The Fund's Board reviewed the Fund's investment advisory contract at meetings held in May 2008. The Board's decision regarding the contract reflects the exercise of its business judgment on whether to continue the existing arrangements.

In this connection, the Federated funds' Board had previously appointed 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 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. The Board considered that evaluation, along with other information, in deciding to approve the advisory contract.

During its review of the contract, the Board considered compensation and benefits received by the Adviser. This included the fees received for services provided to the Fund by other entities in the Federated organization and research services received by the Adviser from brokers that execute Federated fund trades, as well as advisory fees. The Board is also familiar with and considered 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 a fund grows larger; any indirect benefits that may accrue to the Adviser and its affiliates as a result of the Adviser's relationship with a 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 what might be viewed as like services, and the cost 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 for supplying such services. The Board was aware of these factors and was guided by them in its review of the Fund's advisory contract to the extent it considered them to be appropriate and relevant, as discussed further below.

The Board considered and weighed these circumstances in light of its substantial accumulated experience in governing the Fund and working with Federated on matters relating to the Federated funds, and was assisted in its deliberations by independent legal counsel. Throughout the year, the Board has requested and received substantial and detailed information about the Fund and the Federated organization that was in addition to the extensive materials that comprise and accompany the Senior Officer's evaluation. Federated provided much of this information at each regular meeting of the Board, and furnished additional reports in connection with the particular meeting at which the Board's formal review of the advisory contract occurred. Between regularly scheduled meetings, the Board also received information on particular matters as the need arose. Thus, 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 short- and long-term performance (in absolute terms, both on a gross basis and net of expenses, as well as in relationship to its particular investment program and certain competitor or "peer group" funds and/or other benchmarks, as appropriate), and comments on the reasons for performance; the Fund's investment objectives; the Fund's expenses (including the advisory fee 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 use and allocation of brokerage commissions derived from trading the Fund's portfolio securities (if any); and the nature, quality and extent of the advisory and other services provided to the Fund by the Adviser and its affiliates. The Board also considered the preferences and expectations of Fund shareholders 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 performance and 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 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 competes. The Fund's ability to deliver competitive performance when compared to its peer group was a useful indicator of how the Adviser is executing 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 continuation of the advisory contract. In this regard, the Senior Officer has 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 include, but are not limited to, different types of targeted investors; being subject to different laws and regulations; different legal structures; different average account sizes; different associated costs; and different 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, using data supplied by independent fund ranking organizations, regarding the performance of, and fees charged by, other mutual funds, noting his view that comparisons to fund peer groups are highly important in judging the reasonableness of proposed fees. He also observed that certain funds may exhibit important differences in their objectives and management techniques when compared to other funds placed in the same peer group by ranking organizations, noting in this connection that the Fund's quantitative investment program is of such a type.

For both the one- and three-year periods ending December 31, 2007, the Fund's performance was above the median of the relevant peer group.

The Board also received financial information about Federated, including reports on the compensation and benefits Federated derived from its relationships with the Federated funds. These reports covered 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 discussed any indirect benefit Federated may derive from its receipt of research services from brokers who execute Federated fund trades. In addition, the Board considered the fact that, in order for a fund to be competitive in the marketplace, Federated and its affiliates frequently waived fees and/or reimbursed expenses and have disclosed to fund investors and/or indicated to the Board their intention to do so in the future, where appropriate.

Federated furnished reports, requested by the Senior Officer, that reported revenues on a fund-by-fund basis and made estimates of the allocation of expenses on a fund-by-fund basis, using allocation methodologies specified by the Senior Officer. The Senior Officer noted that, although they may apply consistent allocation processes, the inherent difficulties in allocating costs (and the unavoidable arbitrary aspects of that exercise) and the lack of consensus on how to allocate those costs may render such allocation reports unreliable. The allocation reports were considered in the analysis by the Board but were determined to be of limited use.

The Board and the Senior Officer also reviewed a report compiled by Federated comparing profitability information for Federated to other publicly held fund management companies. In this regard, the Senior Officer noted the limited availability of such information, but nonetheless concluded that Federated's profit margins did not appear to be excessive and the Board agreed.

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 and long-term investments in areas that support all of the Federated funds, such as personnel and processes for the portfolio management, compliance, and risk management functions; and systems technology; and that the benefits of these efforts (as well as 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 (as discussed in the Senior Officer's evaluation) 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.

It was noted in the materials for the Board meeting that for the Fund's most recently completed fiscal year, the Fund's investment advisory fee, after waivers and expense reimbursements, if any, was above the median of the relevant peer group. The Board reviewed the fees and other expenses of the Fund with the Adviser and was satisfied that the overall expense structure of the Fund remained competitive. In this regard, the Board had been previously advised that, while comparisons to fund peer groups are highly important in judging the reasonableness of advisory fees, the Fund's quantitative focus makes fee and expense comparisons particularly difficult. Although the Fund's advisory fee was above the median of the peer range, the peer group of funds varied widely in their complexity, and the management of the Fund is among the more complex relative to its peers. The Board will continue to monitor advisory fees and other expenses borne by the Fund.

The Senior Officer's evaluation noted his belief that the information and observations contained in his evaluation supported a finding that the proposed management fees are reasonable, and that Federated appeared to provide appropriate administrative services to the Fund for the fees paid. Under these circumstances, no changes were recommended to, and no objection was raised to, the continuation of the Fund's advisory contract. The Board concluded that the nature, quality and scope of services provided the Fund by the Adviser and its affiliates were satisfactory.

In its decision to continue an existing investment advisory contract, the Board was mindful of the potential disruptions of the Fund's operations and various risks, uncertainties and other effects that could occur as a result of a decision to terminate or not renew an advisory contract. In particular, the Board recognized that most shareholders have invested in the Fund on the strength of the Adviser's industry standing and reputation and with the expectation that the Adviser will have a continuing role in providing advisory services to the Fund. Thus, the Board's approval of the advisory contract reflected the fact that it is the shareholders who have effectively selected the Adviser by virtue of having invested in the Fund.

The Board 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. Not all of the factors and considerations identified above were necessarily relevant to the Fund, nor did the Board consider any one of them to be determinative. With respect to the factors that were relevant, the Board's decision to approve the contract reflects its determination that Federated's performance and actions provided a satisfactory basis to support the decision to continue the existing 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 from Federated's website at FederatedInvestors.com. To access this information from the "Products" section of the website, click on the "Prospectuses and Regulatory Reports" link under "Related Information," then select the appropriate link opposite the name of the Fund; or select the name of the Fund and from the Fund's page, click on the "Prospectuses and Regulatory Reports" link. Form N-PX filings are also available at 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" under "Related Information," then selecting the appropriate link opposite the name of the Fund; or select the name of the Fund and from the Fund's page, click on the "Portfolio Holdings" link.

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 (3/09)

Federated is a registered mark of Federated Investors, Inc. 2009 (c)Federated Investors, Inc.

Federated
World-Class Investment Manager

Federated MDT Large Cap Growth Fund

Established 2005

A Portfolio of Federated MDT Series

SEMI-ANNUAL SHAREHOLDER REPORT

January 31, 2009

Class A Shares
Class B 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)		Year Ended July 31,				Period Ended
	1/31/2009		2008		2007	1	7/31/2006	2
Net Asset Value, Beginning of Period	$10.23		$12.12		$10.17		$10.00
Income From Investment Operations:
Net investment income (loss)	(0.00	) 3,4	(0.06	) 4	(0.14	) 4	(0.10	) 4
Net realized and unrealized gain (loss) on investments	(3.70	)	(0.48	)	2.20		0.27
TOTAL FROM INVESTMENT OPERATIONS	(3.70	)	(0.54	)	2.06		0.17
Less Distributions:
Distributions from net realized gain on investments	- --		(1.35	)	(0.11	)	- --
Net Asset Value, End of Period	$ 6.53		$10.23		$12.12		$10.17
Total Return 5	(36.17	)%	(5.76	)%	20.38	%	1.70	%
Ratios to Average Net Assets:
Net expenses	1.50	% 6	1.50	%	1.50	%	2.01	% 6
Net investment income (loss)	(0.11	)% 6	(0.49	)%	(1.14	)%	(0.93	)% 6
Expense waiver/reimbursement 7	0.42	% 6	0.14	%	2.30	%	20.55	% 6
Supplemental Data:
Net assets, end of period (000 omitted)	$59,428		$102,600		$88,826		$183
Portfolio turnover	172	%	320	%	630	%	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 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

Financial Highlights - Class B Shares

(For a Share Outstanding Throughout Each Period)

	Six Months Ended (unaudited) 1/31/2009		Year Ended 7/31/2008		Period Ended 7/31/2007	1
Net Asset Value, Beginning of Period	$10.21		$12.18		$11.48
Income From Investment Operations:
Net investment income (loss)	(0.03	) 2	(0.14	) 2	(0.08	) 2
Net realized and unrealized gain (loss) on investments	(3.69	)	(0.48	)	0.78
TOTAL FROM INVESTMENT OPERATIONS	(3.72	)	(0.62	)	0.70
Less Distributions:
Distributions from net realized gain on investments	- --		(1.35	)	- --
Net Asset Value, End of Period	$ 6.49		$10.21		$12.18
Total Return 3	(36.43	)%	(6.43	)%	6.10	%
Ratios to Average Net Assets:
Net expenses	2.25	% 4	2.25	%	2.24	% 4
Net investment income (loss)	(0.85	)% 4	(1.22	)%	(1.95	)% 4
Expense waiver/reimbursement 5	0.42	% 4	0.14	%	0.54	% 4
Supplemental Data:
Net assets, end of period (000 omitted)	$9,486		$22,138		$46,933
Portfolio turnover	172	%	320	%	630	% 6

1 Reflects operations for the period from March 29, 2007 (date of initial public investment) to July 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 (loss) ratios shown above.

6 Portfolio turnover is calculated at the Fund level. Percentage indicated was calculated for the year ended July 31, 2007.

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)		Year Ended July 31,				Period Ended
	1/31/2009		2008		2007	1	7/31/2006	2
Net Asset Value, Beginning of Period	$9.99		$11.94		$10.10		$10.00
Income From Investment Operations:
Net investment income (loss)	(0.03	) 3	(0.13	) 3	(0.22	) 3	(0.19	) 3
Net realized and unrealized gain (loss) on investments	(3.61	)	(0.47	)	2.17		0.29
TOTAL FROM INVESTMENT OPERATIONS	(3.64	)	(0.60	)	1.95		0.10
Less Distributions:
Distributions from net realized gain on investments	- --		(1.35	)	(0.11	)	- --
Net Asset Value, End of Period	$6.35		$ 9.99		$11.94		$10.10
Total Return 4	(36.44	)%	(6.39	)%	19.42	%	1.00	%
Ratios to Average Net Assets:
Net expenses	2.25	% 5	2.22	%	2.25	%	2.76	% 5
Net investment income (loss)	(0.85	)% 5	(1.21	)%	(1.83	)%	(1.68	)% 5
Expense waiver/reimbursement 6	0.42	% 5	0.14	%	5.64	%	20.55	% 5
Supplemental Data:
Net assets, end of period (000 omitted)	$7,519		$14,895		$14,388		$147
Portfolio turnover	172	%	320	%	630	%	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 (unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase or redemption payments; and (2) ongoing costs, including management fees and to the extent applicable, distribution (12b-1) fees and/or 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, 2008 to January 31, 2009.

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 8/1/2008	Ending Account Value 1/31/2009	Expenses Paid During Period 1
Actual:
Class A Shares	$1,000	$ 638.30	$ 6.19
Class B Shares	$1,000	$ 635.70	$ 9.28
Class C Shares	$1,000	$ 635.60	$ 9.28
Hypothetical (assuming a 5% return before expenses):
Class A Shares	$1,000	$1,017.64	$ 7.63
Class B Shares	$1,000	$1,013.86	$11.42
Class C Shares	$1,000	$1,013.86	$11.42

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	1.50%
Class B Shares	2.25%
Class C Shares	2.25%

Portfolio of Investments Summary Table (unaudited)

At January 31, 2009, the Fund's industry composition ¹ was as follows:

Industry	Percentage of Total Net Assets
Biotechnology	9.6	%
Defense Electronics	8.8	%
Services to Medical Professionals	6.8	%
Telecommunication Equipment & Services	5.5	%
Undesignated Consumer Cyclicals	5.4	%
Restaurant	5.2	%
Computers--Midrange	4.0	%
Computers--High End	3.9	%
Ethical Drugs	3.9	%
Internet Services	3.8	%
Agricultural Chemicals	3.7	%
Computers--Low End	3.5	%
Medical Technology	3.5	%
Office Equipment	3.5	%
Software Packaged/Custom	2.6	%
Contracting	2.4	%
Medical Supplies	2.4	%
Integrated Domestic Oil	2.2	%
Specialty Retailing	2.2	%
Telephone Utility	1.6	%
Undesignated Health	1.5	%
Home Products	1.4	%
Building Supply Stores	1.2	%
Department Stores	1.2	%
Semiconductor Manufacturing	1.2	%
Other 2	7.1	%
Cash Equivalents 3	1.9	%
Other Assets and Liabilities--Net 4,5	(0.0	)%
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.

5 Represents less than 0.1%.

Portfolio of Investments

January 31, 2009 (unaudited)

Shares					Value
			COMMON STOCKS--98.1%
			Agricultural Chemicals--3.7%
	39,347		Monsanto Co.	$	2,992,733
			Biotechnology--9.6%
	12,415	1	Alexion Pharmaceuticals, Inc.		457,741
	6,494	1	Biogen Idec, Inc.		315,933
	25,211	1	Cephalon, Inc.		1,945,785
	12,280	1	Charles River Laboratories International, Inc.		299,755
	66,501	1	Gilead Sciences, Inc.		3,376,256
	37,078	1	Hospira, Inc.		923,242
	6,191	1	Myriad Genetics, Inc.		461,663
			TOTAL		7,780,375
			Broadcasting--0.1%
	3,276	1	American Tower Systems Corp.		99,394
			Building Supply Stores--1.2%
	51,176		Lowe's Cos., Inc.		934,986
			Computers - High End--3.9%
	34,799		IBM Corp.		3,189,328
			Computers - Low End--3.5%
	31,439	1	Apple, Inc.		2,833,597
			Computers - Midrange--4.0%
	93,288		Hewlett-Packard Co.		3,241,758
			Contracting--2.4%
	62,986		Harsco Corp.		1,494,028
	10,491	1	IHS, Inc., Class A		459,506
			TOTAL		1,953,534
			Crude Oil & Gas Production--0.3%
	7,445		Range Resources Corp.		266,829
			Defense Electronics--8.8%
	20,604	1	FLIR Systems, Inc.		514,482
	21,575	1	First Solar, Inc.		3,080,910
Shares					Value
			COMMON STOCKS--continued
			Defense Electronics--continued
	7,590		Raytheon Co.	$	384,206
	84,029		Rockwell Collins		3,166,213
			TOTAL		7,145,811
			Department Stores--1.2%
	26,421	1	Kohl's Corp.		969,915
			Discount Department Stores--0.4%
	7,399	1	Dollar Tree, Inc.		316,011
			Electric Utility--0.7%
	17,549		PPL Corp.		538,052
			Ethical Drugs--3.9%
	109,226		Merck & Co., Inc.		3,118,402
			Financial Services--0.9%
	10,096		FactSet Research Systems		401,821
	9,720	1	Metavante Technologies, Inc.		141,037
	16,168		Total System Services, Inc.		204,687
			TOTAL		747,545
			Home Products--1.4%
	6,678		Clorox Corp.		334,902
	4,075		Colgate-Palmolive Co.		265,038
	10,942	1	Energizer Holdings, Inc.		521,167
			TOTAL		1,121,107
			Hotels and Motels--0.3%
	9,214	1	Wynn Resorts Ltd.		277,157
			Integrated Domestic Oil--2.2%
	31,510		Hess Corp.		1,752,271
			Internet Services--3.8%
	8,559	1	Google, Inc.		2,897,478
	4,017	1	NetFlix, Inc.		145,174
			TOTAL		3,042,652
			Life Insurance--0.8%
	28,897		Aflac, Inc.		670,699
			Medical Supplies--2.4%
	42,986		McKesson HBOC, Inc.		1,899,981
Shares					Value
			COMMON STOCKS--continued
			Medical Technology--3.5%
	1,600	1	Varian Medical Systems, Inc.	$	59,408
	75,917	1	Zimmer Holdings, Inc.		2,763,379
			TOTAL		2,822,787
			Multi-Industry Capital Goods--0.4%
	12,697		Acuity Brands, Inc.		341,168
			Mutual Fund Adviser--0.5%
	13,168		T. Rowe Price Group, Inc.		363,174
			Office Equipment--3.5%
	128,399		Pitney Bowes, Inc.		2,858,162
			Oil Refiner--0.6%
	9,822		Sunoco, Inc.		454,955
			Oil Well Supply--0.7%
	13,887		Schlumberger Ltd.		566,729
			Packaged Foods--0.3%
	5,434		Hershey Foods Corp.		202,580
			Pollution Control--0.3%
	5,706	1	Stericycle, Inc.		279,138
			Restaurant--5.2%
	35,460		Darden Restaurants, Inc.		929,761
	56,670		McDonald's Corp.		3,287,993
			TOTAL		4,217,754
			Semiconductor Manufacturing--1.2%
	13,471	1	Broadcom Corp.		213,515
	35,178		Intel Corp.		453,796
	18,853		Texas Instruments, Inc.		281,852
			TOTAL		949,163
			Services to Medical Professionals--6.8%
	39,371	1	Express Scripts, Inc., Class A		2,116,585
	118,184		UnitedHealth Group, Inc.		3,348,153
			TOTAL		5,464,738
			Soft Drinks--0.3%
	6,590	1	Hansen Natural Corp.		220,765
Shares					Value
			COMMON STOCKS--continued
			Software Packaged/Custom--2.6%
	45,796	1	DST Systems, Inc.	$	1,454,939
	10,213	1	F5 Networks, Inc.		226,422
	16,076		Microsoft Corp.		274,900
	5,378	1	Solera Holdings, Inc.		129,556
			TOTAL		2,085,817
			Specialty Retailing--2.2%
	11,445	1	Bed Bath & Beyond, Inc.		265,867
	33,814		Costco Wholesale Corp.		1,522,644
			TOTAL		1,788,511
			Telecommunication Equipment & Services--5.5%
	77,618	1	Amdocs Ltd.		1,313,297
	90,725		Qualcomm, Inc.		3,134,549
			TOTAL		4,447,846
			Telephone Utility--1.6%
	149,010		Windstream Corp.		1,293,407
			Truck Manufacturing--0.5%
	15,080		PACCAR, Inc.		397,961
			Undesignated Consumer Cyclicals--5.4%
	19,287	1	Alliance Data Systems Corp.		802,146
	20,070	1	Apollo Group, Inc., Class A		1,634,902
	9,810	1	ITT Educational Services, Inc.		1,201,823
	3,413		Strayer Education, Inc.		738,676
			TOTAL		4,377,547
			Undesignated Health--1.5%
	83,543		IMS Health, Inc.		1,213,044
			TOTAL COMMON STOCKS (IDENTIFIED COST $80,266,848)		79,237,383
Shares					Value
			MUTUAL FUND--1.9%
	1,536,767	2,3	Prime Value Obligations Fund, Institutional Shares, 1.75% (AT NET ASSET VALUE)	$	1,536,767
			TOTAL INVESTMENTS--100.0% (IDENTIFIED COST $81,803,615) 4		80,774,150
			OTHER ASSETS AND LIABILITIES - NET--(0.0)% 5		(28,425	)
			TOTAL NET ASSETS--100%	$	80,745,725

1 Non-income producing security.

2 Affiliated company.

3 7-Day net yield.

4 Also represents cost for federal tax purposes.

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

Note: The categories of investments are shown as a percentage of total net assets at January 31, 2009.

Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below:

Level 1--quoted prices in active markets for identical securities

Level 2--other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

Level 3--significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used, as of January 31, 2009, in valuing the Fund's assets carried at fair value:

Valuation Inputs	Investments in Securities
Level 1--Quoted Prices and Investments in Mutual Funds	$80,774,150
Level 2--Other Significant Observable Inputs	- --
Level 3--Significant Unobservable Inputs	- --
TOTAL	$80,774,150

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

January 31, 2009 (unaudited)

Assets:
Total investments in securities, at value including $1,536,767 of investments in an affiliated issuer (Note 5) (identified cost $81,803,615)			$	80,774,150
Income receivable				6,589
Receivable for investments sold				4,284,961
Receivable for shares sold				265,844
TOTAL ASSETS				85,331,544
Liabilities:
Payable for investments purchased	$	4,302,031
Payable for shares redeemed		111,827
Payable for Directors'/Trustees' fees		308
Payable for distribution services fee (Note 5)		11,471
Payable for shareholder services fee (Note 5)		37,223
Accrued expenses		122,959
TOTAL LIABILITIES				4,585,819
Net assets for 12,406,997 shares outstanding			$	80,745,725
Net Assets Consist of:
Paid-in capital			$	235,983,795
Net unrealized depreciation of investments				(1,029,465	)
Accumulated net realized loss on investments				(154,065,987	)
Accumulated net investment income (loss)				(142,618	)
TOTAL NET ASSETS			$	80,745,725

Statement of Assets and Liabilities - continued

Net Asset Value, Offering Price and Redemption Proceeds Per Share
Institutional Shares:
Net asset value per share ($4,313,306 ÷ 653,712 shares outstanding), no par value, unlimited shares authorized	$6.60
Offering price per share	$6.60
Redemption proceeds per share	$6.60
Class A Shares:
Net asset value per share ($59,427,987 ÷ 9,106,118 shares outstanding), no par value, unlimited shares authorized	$6.53
Offering price per share (100/94.50 of $6.53)	$6.91
Redemption proceeds per share	$6.53
Class B Shares:
Net asset value per share ($9,485,666 ÷ 1,462,586 shares outstanding), no par value, unlimited shares authorized	$6.49
Offering price per share	$6.49
Redemption proceeds per share (94.50/100 of $6.49)	$6.13
Class C Shares:
Net asset value per share ($7,518,766 ÷ 1,184,581 shares outstanding), no par value, unlimited shares authorized	$6.35
Offering price per share	$6.35
Redemption proceeds per share (99.00/100 of $6.35)	$6.29

See Notes which are an integral part of the Financial Statements

Statement of Operations

Six Months Ended January 31, 2009 (unaudited)

Investment Income:
Dividends (including $12,710 received from an affiliated issuer (Note 5))							$	742,551
Expenses:
Investment adviser fee (Note 5)				$	400,293
Administrative personnel and services fee (Note 5)					136,110
Custodian fees					7,480
Transfer and dividend disbursing agent fees and expenses					226,090
Directors'/Trustees' fees					1,294
Auditing fees					10,924
Legal fees					3,273
Portfolio accounting fees					42,592
Distribution services fee--Class B Shares (Note 5)					53,190
Distribution services fee--Class C Shares (Note 5)					39,130
Shareholder services fee--Class A Shares (Note 5)					90,915
Shareholder services fee--Class B Shares (Note 5)					17,730
Shareholder services fee--Class C Shares (Note 5)					13,043
Account administration fee--Class A Shares					3,983
Share registration costs					24,342
Printing and postage					32,958
Insurance premiums					2,616
Miscellaneous					3,059
TOTAL EXPENSES					1,109,022
Waivers and Reimbursement (Note 5):
Waiver/reimbursement of investment adviser fee	$	(196,662	)
Waiver of administrative personnel and services fee		(27,191	)
TOTAL WAIVERS AND REIMBURSEMENT					(223,853	)
Net expenses								885,169
Net investment income (loss)								(142,618	)
Realized and Unrealized Loss on Investments:
Net realized loss on investments								(44,918,538	)
Net change in unrealized appreciation of investments								(6,959,247	)
Net realized and unrealized loss on investments								(51,877,785	)
Change in net assets resulting from operations							$	(52,020,403	)

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

		Six Months Ended (unaudited) 1/31/2009			Year Ended 7/31/2008
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	(142,618	)	$	(1,147,470	)
Net realized loss on investments		(44,918,538	)		(10,506,699	)
Net change in unrealized appreciation/depreciation of investments		(6,959,247	)		1,380,057
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		(52,020,403	)		(10,274,112	)
Distributions to Shareholders:
Distributions from net realized gain on investments
Institutional Shares		- --			(257,727	)
Class A Shares		- --			(11,660,461	)
Class B Shares		- --			(4,329,484	)
Class C Shares		- --			(2,139,318	)
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS		- --			(18,386,990	)
Share Transactions:
Proceeds from sale of shares		14,225,230			70,026,996
Net asset value of shares issued to shareholders in payment of distributions declared		- --			15,708,083
Cost of shares redeemed		(27,372,481	)		(63,105,962	)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		(13,147,251	)		22,629,117
Change in net assets		(65,167,654	)		(6,031,985	)
Net Assets:
Beginning of period		145,913,379			151,945,364
End of period (including accumulated net investment income (loss) of $(142,618) and $0, respectively)	$	80,745,725		$	145,913,379

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

January 31, 2009 (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 nine diversified 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. Each portfolio pays its own expenses. The Fund offers four classes of shares: Institutional Shares, Class A Shares, Class B 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 Institutional Shares are presented separately. The investment objective of the Fund is long-term capital appreciation.

2. SIGNIFICANT ACCOUNTING POLICIES

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

Investment Valuation

In calculating its net asset value (NAV), the Fund generally values investments as follows:

• Equity securities listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market.
• Shares of other mutual funds are valued based upon their reported NAVs.
• Derivative contracts listed on exchanges are valued at their reported settlement or closing price.
• Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Board of Trustees (the "Trustees").
• Fixed-income securities acquired with remaining maturities greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Trustees.
• Fixed-income securities acquired with remaining maturities of 60 days or less are valued at their cost (adjusted for the accretion of any discount or amortization of any premium).

If the Fund cannot obtain a price or price evaluation from a pricing service for an investment, the Fund may attempt to value the investment based upon the mean of bid and asked quotations or fair value the investment based on price evaluations, from one or more dealers. If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could purchase or sell an investment at the price used to calculate the Fund's NAV.

Fair Valuation and Significant Events Procedures

The Trustees have authorized the use of pricing services to provide evaluations of the current fair value of certain investments for purposes of calculating the NAV. Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a "bid" evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and asked for the investment (a "mid" evaluation). The Fund normally uses bid evaluations for U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for other types of fixed-income securities and OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Trustees.

The Trustees also have adopted procedures requiring an investment to be priced at its fair value whenever the Adviser determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment's value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:

• With respect to securities traded in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures or options contracts;
• With respect to price evaluations of fixed-income securities determined before the close of regular trading on the NYSE, actions by the Federal Reserve Open Market Committee and other significant trends in U.S. fixed-income markets;
• Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; and
• Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, a natural disaster affecting the issuer's operations or regulatory changes or market developments affecting the issuer's industry.

The Trustees have approved the use of a pricing service to determine the fair value of equity securities traded principally in foreign markets when the Adviser determines that there has been a significant trend in the U.S. equity markets or in index futures trading. For other significant events, the Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Fund will determine the fair value of the investment using another method approved by the Trustees.

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

Investment transactions are accounted for on a trade-date basis. Realized gains and losses from investment transactions are recorded on an identified cost basis. Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Foreign dividends are recorded on the ex-dividend date or when the Fund is informed of the ex-dividend date. Distributions of net investment income, if any, are declared and paid 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 may bear certain expenses unique to that class such as account administration, distribution services 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. The Fund complies with the provisions of Financial Accounting Standards Board (FASB) Interpretation No. 48 (FIN 48), "Accounting for Uncertainty in Income Taxes." As of and during the six months ended January 31, 2009, the Fund did not have a liability for any uncertain tax positions. The Fund recognizes interest and penalties, if any, related to tax liabilities as income tax expense in the Statement of Operations. As of January 31, 2009, tax years 2006 through 2008 remain subject to examination by the Fund's major tax jurisdictions, which include the United States of America and the Commonwealth of Massachusetts.

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.

Other

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

3. SHARES OF BENEFICIAL INTEREST

The following tables summarize share activity:

	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Institutional Shares:	Shares			Amount		Shares			Amount
Shares sold	301,859		$	2,542,236		481,360		$	5,340,579
Shares issued to shareholders in payment of distributions declared	--			--		16,469			193,018
Shares redeemed	(255,979	)		(1,807,565	)	(37,394	)		(447,625	)
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS	45,880		$	734,671		460,435		$	5,085,972
	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Class A Shares:	Shares			Amount		Shares			Amount
Shares sold	1,425,185		$	10,451,530		4,265,442		$	49,806,979
Shares issued to shareholders in payment of distributions declared	--			--		882,581			10,255,594
Shares redeemed	(2,346,901	)		(16,667,923	)	(2,448,438	)		(27,452,372	)
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS	(921,716	)	$	(6,216,393	)	2,699,585		$	32,610,201
	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Class B Shares:	Shares			Amount		Shares			Amount
Shares sold	73,995		$	544,207		376,994		$	4,378,454
Shares issued to shareholders in payment of distributions declared	--			--		344,460			4,012,963
Shares redeemed	(780,319	)		(6,044,411	)	(2,405,450	)		(27,366,232	)
NET CHANGE RESULTING FROM CLASS B SHARE TRANSACTIONS	(706,324	)	$	(5,500,204	)	(1,683,996	)	$	(18,974,815	)
	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Class C Shares:	Shares			Amount		Shares			Amount
Shares sold	96,998		$	687,257		912,018		$	10,500,984
Shares issued to shareholders in payment of distributions declared	--			--		109,439			1,246,508
Shares redeemed	(403,754	)		(2,852,582	)	(734,780	)		(7,839,733	)
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS	(306,756	)	$	(2,165,325	)	286,677		$	3,907,759
NET CHANGE RESULTING FROM SHARE TRANSACTIONS	(1,888,916	)	$	(13,147,251	)	1,762,701		$	22,629,117

4. FEDERAL TAX INFORMATION

At January 31, 2009, the cost of investments for federal tax purposes was $81,803,615. The net unrealized depreciation of investments for federal tax purposes was $1,029,465. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $6,397,402 and net unrealized depreciation from investments for those securities having an excess of cost over value of $7,426,867.

At July 31, 2008, the Fund had a capital loss carryforward of $98,518,058 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 as follows:

Expiration Year	Expiration Amount
2009	$76,646,626
2010	$21,688,057
2016	$ 183,375

As a result of the tax-free transfer of assets from Federated Large Cap Growth Fund, the use of certain capital loss carryforwards listed above may be limited.

5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated MDTA LLC is the Fund's investment adviser (the "Adviser"). The advisory agreement between the Fund and the Adviser provides for an annual fee equal to 0.75% of the Fund's average daily net assets. Prior to December 8, 2008, the Adviser agreed to waive all or a portion of the advisory fee and/or reimburse certain operating expenses (excluding interest, taxes and brokerage commissions) in order to contractually limit the Fund's aggregate annual operating expenses to no more than the following annual percentages for certain Classes of the Fund based on average daily net assets:

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

In addition, subject to the terms described in the Expense Limitation note, the Adviser may voluntarily choose to waive any additional portion of its fee. The Adviser can modify or terminate this voluntary waiver at any time at its sole discretion. For the six months ended January 31, 2009, the Adviser waived $196,234 of its fee.

Administrative Fee

Federated Administrative Services (FAS), under the Administrative Services 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. Subject to the terms described in the Expense Limitation note, 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, 2009, the net fee paid to FAS was 0.204% of average daily net assets of the Fund. The Fund is currently being charged the minimum administrative fee; therefore the fee as a percentage of average aggregate daily net assets is greater than the amounts presented in the chart above. FAS waived $27,191 of its fee.

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 B 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 at the following percentages of average daily net assets annually, to compensate FSC:

Share Class Name	Percentage of Average Daily Net Assets of Class
Class A Shares	0.05%
Class B Shares	0.75%
Class C Shares	0.75%

Subject to the terms described in the Expense Limitation note, 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, 2009, FSC retained $2,905 of fees paid by the Fund. For the six months ended January 31, 2009, the Fund's Class A Shares did not incur a distribution services fee; however it may begin to incur this fee upon approval of the Trustees. On November 15, 2007, the Trustees approved an amendment to the Plan to reduce the distribution services fee for the Fund's Class A Shares from 0.25% to 0.05%. The amendment to the Plan became effective for the Fund on March 31, 2008.

Sales Charges

Front-end sales charges and contingent deferred sales charges (CDSC) do not represent expenses of the Fund. They are deducted from the proceeds of sales of Fund shares prior to investment or from redemption proceeds prior to remittance, as applicable. For the six months ended January 31, 2009, FSC retained $2,790 in sales charges from the sale of Class A Shares. FSC also retained $825 of CDSC relating to redemptions of Class A Shares and $429 relating to redemptions of Class C Shares.

Shareholder Services Fee

The Fund may pay fees (Service Fees) up to 0.25% of the average daily net assets of the Fund's Class A Shares, Class B Shares and Class C Shares to financial intermediaries or to Federated Shareholder Services Company (FSSC) for providing services to shareholders and maintaining shareholder accounts. Financial intermediaries may include a company affiliated with management of Federated Investors, Inc. A financial intermediary affiliated with management of Federated Investors, Inc. received $13,127 of Service Fees for the six months ended January 31, 2009. Subject to the terms described in the Expense Limitation note, FSSC may voluntarily reimburse the Fund for shareholder services fees. This voluntary reimbursement can be modified or terminated at any time. For the six months ended January 31, 2009, FSSC received $222 of fees paid by the Fund.

Expense Limitation

The Adviser and its affiliates (which may include FSC, FAS and FSSC) have voluntarily agreed to waive their fees and/or reimburse expenses so that the total operating expenses (as shown in the financial highlights) paid by the Fund's Institutional Shares, Class A Shares, Class B Shares and Class C Shares (after the voluntary waivers and reimbursements) will not exceed 1.25%, 1.50%, 2.25% and 2.25%, respectively, for the fiscal year ending July 31, 2009. Although these actions are voluntary, the Adviser and its affiliates have agreed to continue these waivers and/or reimbursements at least through September 30, 2009.

General

Certain 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 affiliated mutual funds. For the six months ended January 31, 2009, the Adviser reimbursed $428. Transactions with the affiliated company during the six months ended January 31, 2009 were as follows:

Affiliate	Balance of Shares Held 7/31/2008	Purchases/ Additions	Sales/ Reductions	Balance of Shares Held 1/31/2009	Value	Dividend Income
Prime Value Obligations Fund, Institutional Shares	507,081	15,445,738	14,416,052	1,536,767	$1,536,767	$12,710

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, 2009, were as follows:

Purchases	$	185,652,643
Sales	$	199,461,464

7. LINE OF CREDIT

The Fund participates in a $100,000,000 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, 2009, there were no outstanding loans. During the six months ended January 31, 2009, the Fund did not utilize the LOC.

8. INTERFUND LENDING

Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (SEC), the Fund, along with other funds advised by subsidiaries of Federated Investors, Inc., may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from other participating affiliated funds. As of January 31, 2009, there were no outstanding loans. During the six months ended January 31, 2009, the program was not utilized.

9. LEGAL PROCEEDINGS

Since October 2003, Federated Investors, Inc. and related entities (collectively, "Federated") and various Federated funds ("Federated Funds") have been 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 Federated Funds from the 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 entities have also been named as defendants in several additional lawsuits that 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 Federated Funds retained the law firm of Dickstein Shapiro LLP to represent the Federated Funds in these lawsuits. Federated and the Federated Funds, and their respective counsel have been defending this litigation, and none of the Federated Funds remains a defendant in any of the lawsuits (though some could potentially receive any recoveries as nominal defendants). 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 Federated 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 Federated Fund redemptions, reduced sales of Federated Fund shares or other adverse consequences for the Federated Funds.

Evaluation and Approval of Advisory
Contract - May 2008

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

The Fund's Board reviewed the Fund's investment advisory contract at meetings held in May 2008. The Board's decision regarding the contract reflects the exercise of its business judgment on whether to continue the existing arrangements.

In this connection, the Federated funds' Board had previously appointed 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 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. The Board considered that evaluation, along with other information, in deciding to approve the advisory contract.

During its review of the contract, the Board considered compensation and benefits received by the Adviser. This included the fees received for services provided to the Fund by other entities in the Federated organization and research services received by the Adviser from brokers that execute Federated fund trades, as well as advisory fees. The Board is also familiar with and considered 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 a fund grows larger; any indirect benefits that may accrue to the Adviser and its affiliates as a result of the Adviser's relationship with a 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 or what might be viewed as like services, and the cost 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 for supplying such services. The Board was aware of these factors and was guided by them in its review of the Fund's advisory contract to the extent it considered them to be appropriate and relevant, as discussed further below.

The Board considered and weighed these circumstances in light of its substantial accumulated experience in governing the Fund and working with Federated on matters relating to the Federated funds, and was assisted in its deliberations by independent legal counsel. Throughout the year, the Board has requested and received substantial and detailed information about the Fund and the Federated organization that was in addition to the extensive materials that comprise and accompany the Senior Officer's evaluation. Federated provided much of this information at each regular meeting of the Board, and furnished additional reports in connection with the particular meeting at which the Board's formal review of the advisory contract occurred. Between regularly scheduled meetings, the Board also received information on particular matters as the need arose. Thus, 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 short- and long-term performance (in absolute terms, both on a gross basis and net of expenses, as well as in relationship to its particular investment program and certain competitor or "peer group" funds and/or other benchmarks, as appropriate), and comments on the reasons for performance; the Fund's investment objectives; the Fund's expenses (including the advisory fee 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 use and allocation of brokerage commissions derived from trading the Fund's portfolio securities (if any); and the nature, quality and extent of the advisory and other services provided to the Fund by the Adviser and its affiliates. The Board also considered the preferences and expectations of Fund shareholders 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 performance and 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 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 competes. The Fund's ability to deliver competitive performance when compared to its peer group was a useful indicator of how the Adviser is executing 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 continuation of the advisory contract. In this regard, the Senior Officer has 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 include, but are not limited to, different types of targeted investors; being subject to different laws and regulations; different legal structures; different average account sizes; different associated costs; and different 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, using data supplied by independent fund ranking organizations, regarding the performance of, and fees charged by, other mutual funds, noting his view that comparisons to fund peer groups are highly important in judging the reasonableness of proposed fees. He also observed that certain funds may exhibit important differences in their objectives and management techniques when compared to other funds placed in the same peer group by ranking organizations, noting in this connection that the Fund's quantitative investment program is of such a type.

For the one-year period ending December 31, 2007, the Fund's performance was above the median of the relevant peer group. In addition, the Board was informed by the Adviser that, for the same period, the Fund outperformed its benchmark index for the one-year period.

The Board also received financial information about Federated, including reports on the compensation and benefits Federated derived from its relationships with the Federated funds. These reports covered 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 discussed any indirect benefit Federated may derive from its receipt of research services from brokers who execute Federated fund trades. In addition, the Board considered the fact that, in order for a fund to be competitive in the marketplace, Federated and its affiliates frequently waived fees and/or reimbursed expenses and have disclosed to fund investors and/or indicated to the Board their intention to do so in the future, where appropriate.

Federated furnished reports, requested by the Senior Officer, that reported revenues on a fund-by-fund basis and made estimates of the allocation of expenses on a fund-by-fund basis, using allocation methodologies specified by the Senior Officer. The Senior Officer noted that, although they may apply consistent allocation processes, the inherent difficulties in allocating costs (and the unavoidable arbitrary aspects of that exercise) and the lack of consensus on how to allocate those costs may render such allocation reports unreliable. The allocation reports were considered in the analysis by the Board but were determined to be of limited use.

The Board and the Senior Officer also reviewed a report compiled by Federated comparing profitability information for Federated to other publicly held fund management companies. In this regard, the Senior Officer noted the limited availability of such information, but nonetheless concluded that Federated's profit margins did not appear to be excessive and the Board agreed.

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 and long-term investments in areas that support all of the Federated funds, such as personnel and processes for the portfolio management, compliance, and risk management functions; and systems technology; and that the benefits of these efforts (as well as 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 (as discussed in the Senior Officer's evaluation) 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.

It was noted in the materials for the Board meeting that for the Fund's most recently completed fiscal year, the Fund's investment advisory fee was waived in its entirety. The Board reviewed the contractual fee rate and other expenses of the Fund with the Adviser and was satisfied that the overall expense structure of the Fund remained competitive.

The Senior Officer's evaluation noted his belief that the information and observations contained in his evaluation supported a finding that the proposed management fees are reasonable, and that Federated appeared to provide appropriate administrative services to the Fund for the fees paid. Under these circumstances, no changes were recommended to, and no objection was raised to, the continuation of the Fund's advisory contract. The Board concluded that the nature, quality and scope of services provided the Fund by the Adviser and its affiliates were satisfactory.

In its decision to continue an existing investment advisory contract, the Board was mindful of the potential disruptions of the Fund's operations and various risks, uncertainties and other effects that could occur as a result of a decision to terminate or not renew an advisory contract. In particular, the Board recognized that most shareholders have invested in the Fund on the strength of the Adviser's industry standing and reputation and with the expectation that the Adviser will have a continuing role in providing advisory services to the Fund. Thus, the Board's approval of the advisory contract reflected the fact that it is the shareholders who have effectively selected the Adviser by virtue of having invested in the Fund.

The Board 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. Not all of the factors and considerations identified above were necessarily relevant to the Fund, nor did the Board consider any one of them to be determinative. With respect to the factors that were relevant, the Board's decision to approve the contract reflects its determination that Federated's performance and actions provided a satisfactory basis to support the decision to continue the existing 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 from Federated's website at FederatedInvestors.com. To access this information from the "Products" section of the website, click on the "Prospectuses and Regulatory Reports" link under "Related Information," then select the appropriate link opposite the name of the Fund; or select the name of the Fund and from the Fund's page, click on the "Prospectuses and Regulatory Reports" link. Form N-PX filings are also available at 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" under "Related Information," then selecting the appropriate link opposite the name of the Fund; or select the name of the Fund and from the Fund's page, click on the "Portfolio Holdings" link.

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 31421R684
Cusip 31421R809

36353 (3/09)

Federated is a registered mark of Federated Investors, Inc. 2009 (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, 2009

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,				Period Ended
	1/31/2009		2008		2007	1	7/31/2006	2
Net Asset Value, Beginning of Period	$10.33		$12.20		$10.20		$10.00
Income From Investment Operations:
Net investment income (loss)	0.01	3	(0.03	) 3	(0.03	) 3	(0.07	) 3
Net realized and unrealized gain (loss) on investments	(3.74	)	(0.49	)	2.14		0.27
TOTAL FROM INVESTMENT OPERATIONS	(3.73	)	(0.52	)	2.11		0.20
Less Distributions:
Distributions from net realized gain on investments	- --		(1.35	)	(0.11	)	- --
Net Asset Value, End of Period	$ 6.60		$10.33		$12.20		$10.20
Total Return 4	(36.11	)%	(5.55	)%	20.81	%	2.00	%
Ratios to Average Net Assets:
Net expenses	1.25	% 5	1.25	%	1.25	%	1.76	% 5
Net investment income (loss)	0.15	% 5	(0.28	)%	(0.29	)%	(0.68	)% 5
Expense waiver/reimbursement 6	0.42	% 5	0.14	%	19.41	%	20.55	% 5
Supplemental Data:
Net assets, end of period (000 omitted)	$4,313		$6,280		$1,798		$305
Portfolio turnover	172	%	320	%	630	%	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

Shareholder Expense Example (unaudited)

As a shareholder of the Fund, you incur ongoing costs, including management fees and to the extent applicable, distribution (12b-1) fees and/or 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, 2008 to January 31, 2009.

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 8/1/2008	Ending Account Value 1/31/2009	Expenses Paid During Period 1
Actual	$1,000	$ 638.90	$5.16
Hypothetical (assuming a 5% return before expenses)	$1,000	$1,018.90	$6.36

1 Expenses are equal to the Fund's annualized net expense ratio of 1.25%, 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 (unaudited)

At January 31, 2009, the Fund's industry composition ¹ was as follows:

Industry	Percentage of Total Net Assets
Biotechnology	9.6	%
Defense Electronics	8.8	%
Services to Medical Professionals	6.8	%
Telecommunication Equipment & Services	5.5	%
Undesignated Consumer Cyclicals	5.4	%
Restaurant	5.2	%
Computers - Midrange	4.0	%
Computers - High End	3.9	%
Ethical Drugs	3.9	%
Internet Services	3.8	%
Agricultural Chemicals	3.7	%
Computers - Low End	3.5	%
Medical Technology	3.5	%
Office Equipment	3.5	%
Software Packaged/Custom	2.6	%
Contracting	2.4	%
Medical Supplies	2.4	%
Integrated Domestic Oil	2.2	%
Specialty Retailing	2.2	%
Telephone Utility	1.6	%
Undesignated Health	1.5	%
Home Products	1.4	%
Building Supply Stores	1.2	%
Department Stores	1.2	%
Semiconductor Manufacturing	1.2	%
Other 2	7.1	%
Cash Equivalents 3	1.9	%
Other Assets and Liabilities--Net 4,5	(0.0	)%
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.

5 Represents less than 0.1%.

Portfolio of Investments

January 31, 2009 (unaudited)

Shares					Value
			COMMON STOCKS--98.1%
			Agricultural Chemicals--3.7%
	39,347		Monsanto Co.	$	2,992,733
			Biotechnology--9.6%
	12,415	1	Alexion Pharmaceuticals, Inc.		457,741
	6,494	1	Biogen Idec, Inc.		315,933
	25,211	1	Cephalon, Inc.		1,945,785
	12,280	1	Charles River Laboratories International, Inc.		299,755
	66,501	1	Gilead Sciences, Inc.		3,376,256
	37,078	1	Hospira, Inc.		923,242
	6,191	1	Myriad Genetics, Inc.		461,663
			TOTAL		7,780,375
			Broadcasting--0.1%
	3,276	1	American Tower Systems Corp.		99,394
			Building Supply Stores--1.2%
	51,176		Lowe's Cos., Inc.		934,986
			Computers - High End--3.9%
	34,799		IBM Corp.		3,189,328
			Computers - Low End--3.5%
	31,439	1	Apple, Inc.		2,833,597
			Computers - Midrange--4.0%
	93,288		Hewlett-Packard Co.		3,241,758
			Contracting--2.4%
	62,986		Harsco Corp.		1,494,028
	10,491	1	IHS, Inc., Class A		459,506
			TOTAL		1,953,534
			Crude Oil & Gas Production--0.3%
	7,445		Range Resources Corp.		266,829
			Defense Electronics--8.8%
	20,604	1	FLIR Systems, Inc.		514,482
	21,575	1	First Solar, Inc.		3,080,910
Shares					Value
			COMMON STOCKS--continued
			Defense Electronics--continued
	7,590		Raytheon Co.	$	384,206
	84,029		Rockwell Collins		3,166,213
			TOTAL		7,145,811
			Department Stores--1.2%
	26,421	1	Kohl's Corp.		969,915
			Discount Department Stores--0.4%
	7,399	1	Dollar Tree, Inc.		316,011
			Electric Utility--0.7%
	17,549		PPL Corp.		538,052
			Ethical Drugs--3.9%
	109,226		Merck & Co., Inc.		3,118,402
			Financial Services--0.9%
	10,096		FactSet Research Systems		401,821
	9,720	1	Metavante Technologies, Inc.		141,037
	16,168		Total System Services, Inc.		204,687
			TOTAL		747,545
			Home Products--1.4%
	6,678		Clorox Corp.		334,902
	4,075		Colgate-Palmolive Co.		265,038
	10,942	1	Energizer Holdings, Inc.		521,167
			TOTAL		1,121,107
			Hotels and Motels--0.3%
	9,214	1	Wynn Resorts Ltd.		277,157
			Integrated Domestic Oil--2.2%
	31,510		Hess Corp.		1,752,271
			Internet Services--3.8%
	8,559	1	Google, Inc.		2,897,478
	4,017	1	NetFlix, Inc.		145,174
			TOTAL		3,042,652
			Life Insurance--0.8%
	28,897		Aflac, Inc.		670,699
			Medical Supplies--2.4%
	42,986		McKesson HBOC, Inc.		1,899,981
Shares					Value
			COMMON STOCKS--continued
			Medical Technology--3.5%
	1,600	1	Varian Medical Systems, Inc.	$	59,408
	75,917	1	Zimmer Holdings, Inc.		2,763,379
			TOTAL		2,822,787
			Multi-Industry Capital Goods--0.4%
	12,697		Acuity Brands, Inc.		341,168
			Mutual Fund Adviser--0.5%
	13,168		T. Rowe Price Group, Inc.		363,174
			Office Equipment--3.5%
	128,399		Pitney Bowes, Inc.		2,858,162
			Oil Refiner--0.6%
	9,822		Sunoco, Inc.		454,955
			Oil Well Supply--0.7%
	13,887		Schlumberger Ltd.		566,729
			Packaged Foods--0.3%
	5,434		Hershey Foods Corp.		202,580
			Pollution Control--0.3%
	5,706	1	Stericycle, Inc.		279,138
			Restaurant--5.2%
	35,460		Darden Restaurants, Inc.		929,761
	56,670		McDonald's Corp.		3,287,993
			TOTAL		4,217,754
			Semiconductor Manufacturing--1.2%
	13,471	1	Broadcom Corp.		213,515
	35,178		Intel Corp.		453,796
	18,853		Texas Instruments, Inc.		281,852
			TOTAL		949,163
			Services to Medical Professionals--6.8%
	39,371	1	Express Scripts, Inc., Class A		2,116,585
	118,184		UnitedHealth Group, Inc.		3,348,153
			TOTAL		5,464,738
			Soft Drinks--0.3%
	6,590	1	Hansen Natural Corp.		220,765
Shares					Value
			COMMON STOCKS--continued
			Software Packaged/Custom--2.6%
	45,796	1	DST Systems, Inc.	$	1,454,939
	10,213	1	F5 Networks, Inc.		226,422
	16,076		Microsoft Corp.		274,900
	5,378	1	Solera Holdings, Inc.		129,556
			TOTAL		2,085,817
			Specialty Retailing--2.2%
	11,445	1	Bed Bath & Beyond, Inc.		265,867
	33,814		Costco Wholesale Corp.		1,522,644
			TOTAL		1,788,511
			Telecommunication Equipment & Services--5.5%
	77,618	1	Amdocs Ltd.		1,313,297
	90,725		Qualcomm, Inc.		3,134,549
			TOTAL		4,447,846
			Telephone Utility--1.6%
	149,010		Windstream Corp.		1,293,407
			Truck Manufacturing--0.5%
	15,080		PACCAR, Inc.		397,961
			Undesignated Consumer Cyclicals--5.4%
	19,287	1	Alliance Data Systems Corp.		802,146
	20,070	1	Apollo Group, Inc., Class A		1,634,902
	9,810	1	ITT Educational Services, Inc.		1,201,823
	3,413		Strayer Education, Inc.		738,676
			TOTAL		4,377,547
			Undesignated Health--1.5%
	83,543		IMS Health, Inc.		1,213,044
			TOTAL COMMON STOCKS (IDENTIFIED COST $80,266,848)		79,237,383
Shares					Value
			MUTUAL FUND--1.9%
	1,536,767	2,3	Prime Value Obligations Fund, Institutional Shares, 1.75% (AT NET ASSET VALUE)	$	1,536,767
			TOTAL INVESTMENTS--100.0% (IDENTIFIED COST $81,803,615) 4		80,774,150
			OTHER ASSETS AND LIABILITIES - NET--(0.0)% 5		(28,425	)
			TOTAL NET ASSETS--100%	$	80,745,725

1 Non-income-producing security.

2 Affiliated company.

3 7-Day net yield.

4 Also represents cost for federal tax purposes.

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

Note: The categories of investments are shown as a percentage of total net assets at January 31, 2009.

Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below:

Level 1--quoted prices in active markets for identical securities

Level 2--other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

Level 3--significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used, as of January 31, 2009, in valuing the Fund's assets carried at fair value:

Valuation Inputs	Investments in Securities
Level 1--Quoted Prices and Investments in Mutual Funds	$80,774,150
Level 2--Other Significant Observable Inputs	- --
Level 3--Significant Unobservable Inputs	- --
TOTAL	$80,774,150

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

January 31, 2009 (unaudited)

Assets:
Total investments in securities, at value including $1,536,767 of investments in an affiliated issuer (Note 5) (identified cost $81,803,615)			$	80,774,150
Income receivable				6,589
Receivable for investments sold				4,284,961
Receivable for shares sold				265,844
TOTAL ASSETS				85,331,544
Liabilities:
Payable for investments purchased	$	4,302,031
Payable for shares redeemed		111,827
Payable for Directors'/Trustees' fees		308
Payable for distribution services fee (Note 5)		11,471
Payable for shareholder services fee (Note 5)		37,223
Accrued expenses		122,959
TOTAL LIABILITIES				4,585,819
Net assets for 12,406,997 shares outstanding			$	80,745,725
Net Assets Consist of:
Paid-in capital			$	235,983,795
Net unrealized depreciation of investments				(1,029,465	)
Accumulated net realized loss on investments				(154,065,987	)
Accumulated net investment income (loss)				(142,618	)
TOTAL NET ASSETS			$	80,745,725

Statement of Assets and Liabilities - continued

Net Asset Value, Offering Price and Redemption Proceeds Per Share
Institutional Shares:
Net asset value per share ($4,313,306 ÷ 653,712 shares outstanding), no par value, unlimited shares authorized	$6.60
Offering price per share	$6.60
Redemption proceeds per share	$6.60
Class A Shares:
Net asset value per share ($59,427,987 ÷ 9,106,118 shares outstanding), no par value, unlimited shares authorized	$6.53
Offering price per share (100/94.50 of $6.53)	$6.91
Redemption proceeds per share	$6.53
Class B Shares:
Net asset value per share ($9,485,666 ÷ 1,462,586 shares outstanding), no par value, unlimited shares authorized	$6.49
Offering price per share	$6.49
Redemption proceeds per share (94.50/100 of $6.49)	$6.13
Class C Shares:
Net asset value per share ($7,518,766 ÷ 1,184,581 shares outstanding), no par value, unlimited shares authorized	$6.35
Offering price per share	$6.35
Redemption proceeds per share (99.00/100 of $6.35)	$6.29

See Notes which are an integral part of the Financial Statements

Statement of Operations

Six Months Ended January 31, 2009 (unaudited)

Investment Income:
Dividends (including $12,710 received from an affiliated issuer) (Note 5)							$	742,551
Expenses:
Investment adviser fee (Note 5)				$	400,293
Administrative personnel and services fee (Note 5)					136,110
Custodian fees					7,480
Transfer and dividend disbursing agent fees and expenses					226,090
Directors'/Trustees' fees					1,294
Auditing fees					10,924
Legal fees					3,273
Portfolio accounting fees					42,592
Distribution services fee--Class B Shares (Note 5)					53,190
Distribution services fee--Class C Shares (Note 5)					39,130
Shareholder services fee--Class A Shares (Note 5)					90,915
Shareholder services fee--Class B Shares (Note 5)					17,730
Shareholder services fee--Class C Shares (Note 5)					13,043
Account administration fee--Class A Shares					3,983
Share registration costs					24,342
Printing and postage					32,958
Insurance premiums					2,616
Miscellaneous					3,059
TOTAL EXPENSES					1,109,022
Waivers and Reimbursement (Note 5):
Waiver/reimbursement of investment adviser fee	$	(196,662	)
Waiver of administrative personnel and services fee		(27,191	)
TOTAL WAIVERS AND REIMBURSEMENT					(223,853	)
Net expenses								885,169
Net investment income (loss)								(142,618	)
Realized and Unrealized Loss on Investments:
Net realized loss on investments								(44,918,538	)
Net change in unrealized appreciation of investments								(6,959,247	)
Net realized and unrealized loss on investments								(51,877,785	)
Change in net assets resulting from operations							$	(52,020,403	)

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

		Six Months Ended (unaudited) 1/31/2009			Year Ended 7/31/2008
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	(142,618	)	$	(1,147,470	)
Net realized loss on investments		(44,918,538	)		(10,506,699	)
Net change in unrealized appreciation/depreciation of investments		(6,959,247	)		1,380,057
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		(52,020,403	)		(10,274,112	)
Distributions to Shareholders:
Distributions from net realized gain on investments
Institutional Shares		- --			(257,727	)
Class A Shares		- --			(11,660,461	)
Class B Shares		- --			(4,329,484	)
Class C Shares		- --			(2,139,318	)
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS		- --			(18,386,990	)
Share Transactions:
Proceeds from sale of shares		14,225,230			70,026,996
Net asset value of shares issued to shareholders in payment of distributions declared		- --			15,708,083
Cost of shares redeemed		(27,372,481	)		(63,105,962	)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		(13,147,251	)		22,629,117
Change in net assets		(65,167,654	)		(6,031,985	)
Net Assets:
Beginning of period		145,913,379			151,945,364
End of period (including accumulated net investment income (loss) of $(142,618) and $0, respectively)	$	80,745,725		$	145,913,379

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

January 31, 2009 (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 nine diversified 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. Each portfolio pays its own expenses. The Fund offers four classes of shares: Institutional Shares, Class A Shares, Class B 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 Class A Shares, Class B Shares and Class C Shares are presented separately. The investment objective of the Fund is long-term capital appreciation.

2. SIGNIFICANT ACCOUNTING POLICIES

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

Investment Valuation

In calculating its net asset value (NAV), the Fund generally values investments as follows:

• Equity securities listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market.
• Shares of other mutual funds are valued based upon their reported NAVs.
• Derivative contracts listed on exchanges are valued at their reported settlement or closing price.
• Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Board of Trustees (the "Trustees").
• Fixed-income securities acquired with remaining maturities greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Trustees.
• Fixed-income securities acquired with remaining maturities of 60 days or less are valued at their cost (adjusted for the accretion of any discount or amortization of any premium).

If the Fund cannot obtain a price or price evaluation from a pricing service for an investment, the Fund may attempt to value the investment based upon the mean of bid and asked quotations or fair value the investment based on price evaluations, from one or more dealers. If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could purchase or sell an investment at the price used to calculate the Fund's NAV.

Fair Valuation and Significant Events Procedures

The Trustees have authorized the use of pricing services to provide evaluations of the current fair value of certain investments for purposes of calculating the NAV. Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a "bid" evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and asked for the investment (a "mid" evaluation). The Fund normally uses bid evaluations for U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for other types of fixed-income securities and OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Trustees.

The Trustees also have adopted procedures requiring an investment to be priced at its fair value whenever the Adviser determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment's value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:

• With respect to securities traded in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures or options contracts;
• With respect to price evaluations of fixed-income securities determined before the close of regular trading on the NYSE, actions by the Federal Reserve Open Market Committee and other significant trends in U.S. fixed-income markets;
• Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; and
• Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, a natural disaster affecting the issuer's operations or regulatory changes or market developments affecting the issuer's industry.

The Trustees have approved the use of a pricing service to determine the fair value of equity securities traded principally in foreign markets when the Adviser determines that there has been a significant trend in the U.S. equity markets or in index futures trading. For other significant events, the Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Fund will determine the fair value of the investment using another method approved by the Trustees.

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

Investment transactions are accounted for on a trade-date basis. Realized gains and losses from investment transactions are recorded on an identified cost basis. Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Foreign dividends are recorded on the ex-dividend date or when the Fund is informed of the ex-dividend date. Distributions of net investment income, if any, are declared and paid 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 may bear certain expenses unique to that class such as account administration, distribution services 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. The Fund complies with the provisions of Financial Accounting Standards Board (FASB) Interpretation No. 48 (FIN 48), "Accounting for Uncertainty in Income Taxes." As of and during the six months ended January 31, 2009, the Fund did not have a liability for any uncertain tax positions. The Fund recognizes interest and penalties, if any, related to tax liabilities as income tax expense in the Statement of Operations. As of January 31, 2009, tax years 2006 through 2008 remain subject to examination by the Fund's major tax jurisdictions, which include the United States of America and the Commonwealth of Massachusetts.

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.

Other

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

3. SHARES OF BENEFICIAL INTEREST

The following tables summarize share activity:

	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Institutional Shares:	Shares			Amount		Shares			Amount
Shares sold	301,859		$	2,542,236		481,360		$	5,340,579
Shares issued to shareholders in payment of distributions declared	--			--		16,469			193,018
Shares redeemed	(255,979	)		(1,807,565	)	(37,394	)		(447,625	)
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS	45,880		$	734,671		460,435		$	5,085,972
	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Class A Shares:	Shares			Amount		Shares			Amount
Shares sold	1,425,185		$	10,451,530		4,265,442		$	49,806,979
Shares issued to shareholders in payment of distributions declared	--			--		882,581			10,255,594
Shares redeemed	(2,346,901	)		(16,667,923	)	(2,448,438	)		(27,452,372	)
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS	(921,716	)	$	(6,216,393	)	2,699,585		$	32,610,201
	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Class B Shares:	Shares			Amount		Shares			Amount
Shares sold	73,995		$	544,207		376,994		$	4,378,454
Shares issued to shareholders in payment of distributions declared	--			--		344,460			4,012,963
Shares redeemed	(780,319	)		(6,044,411	)	(2,405,450	)		(27,366,232	)
NET CHANGE RESULTING FROM CLASS B SHARE TRANSACTIONS	(706,324	)	$	(5,500,204	)	(1,683,996	)	$	(18,974,815	)
	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Class C Shares:	Shares			Amount		Shares			Amount
Shares sold	96,998		$	687,257		912,018		$	10,500,984
Shares issued to shareholders in payment of distributions declared	--			--		109,439			1,246,508
Shares redeemed	(403,754	)		(2,852,582	)	(734,780	)		(7,839,733	)
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS	(306,756	)	$	(2,165,325	)	286,677		$	3,907,759
NET CHANGE RESULTING FROM SHARE TRANSACTIONS	(1,888,916	)	$	(13,147,251	)	1,762,701		$	22,629,117

4. FEDERAL TAX INFORMATION

At January 31, 2009, the cost of investments for federal tax purposes was $81,803,615. The net unrealized depreciation of investments for federal tax purposes was $1,029,465. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $6,397,402 and net unrealized depreciation from investments for those securities having an excess of cost over value of $7,426,867.

At July 31, 2008, the Fund had a capital loss carryforward of $98,518,058 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 as follows:

Expiration Year	Expiration Amount
2009	$76,646,626
2010	$21,688,057
2016	$ 183,375

As a result of the tax-free transfer of assets from Federated Large Cap Growth Fund, the use of certain capital loss carryforwards listed above may be limited.

5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated MDTA LLC is the Fund's investment adviser (the "Adviser"). The advisory agreement between the Fund and the Adviser provides for an annual fee equal to 0.75% of the Fund's average daily net assets. Prior to December 8, 2008, the Adviser agreed to waive all or a portion of the advisory fee and/or reimburse certain operating expenses (excluding interest, taxes and brokerage commissions) in order to contractually limit the Fund's aggregate annual operating expenses to no more than the following annual percentages for certain Classes of the Fund based on average daily net assets:

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

In addition, subject to the terms described in the Expense Limitation note, the Adviser may voluntarily choose to waive any additional portion of its fee. The Adviser can modify or terminate this voluntary waiver at any time at its sole discretion. For the six months ended January 31, 2009, the Adviser waived $196,234 of its fee.

Administrative Fee

Federated Administrative Services (FAS), under the Administrative Services 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. Subject to the terms described in the Expense Limitation note, 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, 2009, the net fee paid to FAS was 0.204% of average daily net assets of the Fund. The Fund is currently being charged the minimum administrative fee; therefore the fee as a percentage of average aggregate daily net assets is greater than the amounts presented in the chart above. FAS waived $27,191 of its fee.

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 B 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 at the following percentages of average daily net assets annually, to compensate FSC:

Share Class Name	Percentage of Average Daily Net Assets of Class
Class A Shares	0.05%
Class B Shares	0.75%
Class C Shares	0.75%

Subject to the terms described in the Expense Limitation note, 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, 2009, FSC retained $2,905 of fees paid by the Fund. For the six months ended January 31, 2009, the Fund's Class A Shares did not incur a distribution services fee; however it may begin to incur this fee upon approval of the Trustees. On November 15, 2007, the Trustees approved an amendment to the Plan to reduce the distribution services fee for the Fund's Class A Shares from 0.25% to 0.05%. The amendment to the Plan became effective for the Fund on March 31, 2008.

Sales Charges

Front-end sales charges and contingent deferred sales charges (CDSC) do not represent expenses of the Fund. They are deducted from the proceeds of sales of Fund shares prior to investment or from redemption proceeds prior to remittance, as applicable. For the six months ended January 31, 2009, FSC retained $2,790 in sales charges from the sale of Class A Shares. FSC also retained $825 of CDSC relating to redemptions of Class A Shares and $429 relating to redemptions of Class C Shares.

Shareholder Services Fee

The Fund may pay fees (Service Fees) up to 0.25% of the average daily net assets of the Fund's Class A Shares, Class B Shares and Class C Shares to financial intermediaries or to Federated Shareholder Services Company (FSSC) for providing services to shareholders and maintaining shareholder accounts. Financial intermediaries may include a company affiliated with management of Federated Investors, Inc. A financial intermediary affiliated with management of Federated Investors, Inc. received $13,127 of Service Fees for the six months ended January 31, 2009. Subject to the terms described in the Expense Limitation note, FSSC may voluntarily reimburse the Fund for shareholder services fees. This voluntary reimbursement can be modified or terminated at any time. For the six months ended January 31, 2009, FSSC received $222 of fees paid by the Fund.

Expense Limitation

The Adviser and its affiliates (which may include FSC, FAS and FSSC) have voluntarily agreed to waive their fees and/or reimburse expenses so that the total operating expenses (as shown in the financial highlights) paid by the Fund's Institutional Shares, Class A Shares, Class B Shares and Class C Shares (after the voluntary waivers and reimbursements) will not exceed 1.25%, 1.50%, 2.25% and 2.25%, respectively, for the fiscal year ending July 31, 2009. Although these actions are voluntary, the Adviser and its affiliates have agreed to continue these waivers and/or reimbursements at least through September 30, 2009.

General

Certain 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 affiliated mutual funds. For the six months ended January 31, 2009, the Adviser reimbursed $428. Transactions with the affiliated company during the six months ended January 31, 2009 were as follows:

Affiliate	Balance of Shares Held 7/31/2008	Purchases/ Additions	Sales/ Reductions	Balance of Shares Held 1/31/2009	Value	Dividend Income
Prime Value Obligations Fund, Institutional Shares	507,081	15,445,738	14,416,052	1,536,767	$1,536,767	$12,710

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, 2009, were as follows:

Purchases	$	185,652,643
Sales	$	199,461,464

7. LINE OF CREDIT

The Fund participates in a $100,000,000 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, 2009, there were no outstanding loans. During the six months ended January 31, 2009, the Fund did not utilize the LOC.

8. INTERFUND LENDING

Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (SEC), the Fund, along with other funds advised by subsidiaries of Federated Investors, Inc., may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from other participating affiliated funds. As of January 31, 2009, there were no outstanding loans. During the six months ended January 31, 2009, the program was not utilized.

9. LEGAL PROCEEDINGS

Since October 2003, Federated Investors, Inc. and related entities (collectively, "Federated") and various Federated funds ("Federated Funds") have been 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 Federated Funds from the 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 entities have also been named as defendants in several additional lawsuits that 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 Federated Funds retained the law firm of Dickstein Shapiro LLP to represent the Federated Funds in these lawsuits. Federated and the Federated Funds, and their respective counsel have been defending this litigation, and none of the Federated Funds remains a defendant in any of the lawsuits (though some could potentially receive any recoveries as nominal defendants). 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 Federated 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 Federated Fund redemptions, reduced sales of Federated Fund shares or other adverse consequences for the Federated Funds.

Evaluation and Approval of Advisory
Contract - May 2008

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

The Fund's Board reviewed the Fund's investment advisory contract at meetings held in May 2008. The Board's decision regarding the contract reflects the exercise of its business judgment on whether to continue the existing arrangements.

In this connection, the Federated funds' Board had previously appointed 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 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. The Board considered that evaluation, along with other information, in deciding to approve the advisory contract.

During its review of the contract, the Board considered compensation and benefits received by the Adviser. This included the fees received for services provided to the Fund by other entities in the Federated organization and research services received by the Adviser from brokers that execute Federated fund trades, as well as advisory fees. The Board is also familiar with and considered 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 a fund grows larger; any indirect benefits that may accrue to the Adviser and its affiliates as a result of the Adviser's relationship with a 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 or what might be viewed as like services, and the cost 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 for supplying such services. The Board was aware of these factors and was guided by them in its review of the Fund's advisory contract to the extent it considered them to be appropriate and relevant, as discussed further below.

The Board considered and weighed these circumstances in light of its substantial accumulated experience in governing the Fund and working with Federated on matters relating to the Federated funds, and was assisted in its deliberations by independent legal counsel. Throughout the year, the Board has requested and received substantial and detailed information about the Fund and the Federated organization that was in addition to the extensive materials that comprise and accompany the Senior Officer's evaluation. Federated provided much of this information at each regular meeting of the Board, and furnished additional reports in connection with the particular meeting at which the Board's formal review of the advisory contract occurred. Between regularly scheduled meetings, the Board also received information on particular matters as the need arose. Thus, 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 short- and long-term performance (in absolute terms, both on a gross basis and net of expenses, as well as in relationship to its particular investment program and certain competitor or "peer group" funds and/or other benchmarks, as appropriate), and comments on the reasons for performance; the Fund's investment objectives; the Fund's expenses (including the advisory fee 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 use and allocation of brokerage commissions derived from trading the Fund's portfolio securities (if any); and the nature, quality and extent of the advisory and other services provided to the Fund by the Adviser and its affiliates. The Board also considered the preferences and expectations of Fund shareholders 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 performance and 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 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 competes. The Fund's ability to deliver competitive performance when compared to its peer group was a useful indicator of how the Adviser is executing 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 continuation of the advisory contract. In this regard, the Senior Officer has 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 include, but are not limited to, different types of targeted investors; being subject to different laws and regulations; different legal structures; different average account sizes; different associated costs; and different 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, using data supplied by independent fund ranking organizations, regarding the performance of, and fees charged by, other mutual funds, noting his view that comparisons to fund peer groups are highly important in judging the reasonableness of proposed fees. He also observed that certain funds may exhibit important differences in their objectives and management techniques when compared to other funds placed in the same peer group by ranking organizations, noting in this connection that the Fund's quantitative investment program is of such a type.

For the one-year period ending December 31, 2007, the Fund's performance was above the median of the relevant peer group. In addition, the Board was informed by the Adviser that, for the same period, the Fund outperformed its benchmark index for the one-year period.

The Board also received financial information about Federated, including reports on the compensation and benefits Federated derived from its relationships with the Federated funds. These reports covered 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 discussed any indirect benefit Federated may derive from its receipt of research services from brokers who execute Federated fund trades. In addition, the Board considered the fact that, in order for a fund to be competitive in the marketplace, Federated and its affiliates frequently waived fees and/or reimbursed expenses and have disclosed to fund investors and/or indicated to the Board their intention to do so in the future, where appropriate.

Federated furnished reports, requested by the Senior Officer, that reported revenues on a fund-by-fund basis and made estimates of the allocation of expenses on a fund-by-fund basis, using allocation methodologies specified by the Senior Officer. The Senior Officer noted that, although they may apply consistent allocation processes, the inherent difficulties in allocating costs (and the unavoidable arbitrary aspects of that exercise) and the lack of consensus on how to allocate those costs may render such allocation reports unreliable. The allocation reports were considered in the analysis by the Board but were determined to be of limited use.

The Board and the Senior Officer also reviewed a report compiled by Federated comparing profitability information for Federated to other publicly held fund management companies. In this regard, the Senior Officer noted the limited availability of such information, but nonetheless concluded that Federated's profit margins did not appear to be excessive and the Board agreed.

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 and long-term investments in areas that support all of the Federated funds, such as personnel and processes for the portfolio management, compliance, and risk management functions; and systems technology; and that the benefits of these efforts (as well as 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 (as discussed in the Senior Officer's evaluation) 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.

It was noted in the materials for the Board meeting that for the Fund's most recently completed fiscal year, the Fund's investment advisory fee was waived in its entirety. The Board reviewed the contractual fee rate and other expenses of the Fund with the Adviser and was satisfied that the overall expense structure of the Fund remained competitive.

The Senior Officer's evaluation noted his belief that the information and observations contained in his evaluation supported a finding that the proposed management fees are reasonable, and that Federated appeared to provide appropriate administrative services to the Fund for the fees paid. Under these circumstances, no changes were recommended to, and no objection was raised to, the continuation of the Fund's advisory contract. The Board concluded that the nature, quality and scope of services provided the Fund by the Adviser and its affiliates were satisfactory.

In its decision to continue an existing investment advisory contract, the Board was mindful of the potential disruptions of the Fund's operations and various risks, uncertainties and other effects that could occur as a result of a decision to terminate or not renew an advisory contract. In particular, the Board recognized that most shareholders have invested in the Fund on the strength of the Adviser's industry standing and reputation and with the expectation that the Adviser will have a continuing role in providing advisory services to the Fund. Thus, the Board's approval of the advisory contract reflected the fact that it is the shareholders who have effectively selected the Adviser by virtue of having invested in the Fund.

The Board 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. Not all of the factors and considerations identified above were necessarily relevant to the Fund, nor did the Board consider any one of them to be determinative. With respect to the factors that were relevant, the Board's decision to approve the contract reflects its determination that Federated's performance and actions provided a satisfactory basis to support the decision to continue the existing 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 from Federated's website at FederatedInvestors.com. To access this information from the "Products" section of the website, click on the "Prospectuses and Regulatory Reports" link under "Related Information," then select the appropriate link opposite the name of the Fund; or select the name of the Fund and from the Fund's page, click on the "Prospectuses and Regulatory Reports" link. Form N-PX filings are also available at 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" under "Related Information," then selecting the appropriate link opposite the name of the Fund; or select the name of the Fund and from the Fund's page, click on the "Portfolio Holdings" link.

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 (3/09)

Federated is a registered mark of Federated Investors, Inc. 2009 (c)Federated Investors, Inc.

Federated
World-Class Investment Manager

Federated MDT Large Cap
Value Fund

Established 2008

A Portfolio of Federated MDT Series

SEMI-ANNUAL SHAREHOLDER REPORT

January 31, 2009

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) 1/31/2009		Period Ended 7/31/2008	1
Net Asset Value, Beginning of Period	$9.46		$10.00
Income From Investment Operations:
Net investment income	0.05	2	0.03	2
Net realized and unrealized loss on investments	(3.50	)	(0.57	)
TOTAL FROM INVESTMENT OPERATIONS	(3.45	)	(0.54	)
Less Distributions:
Distributions from net investment income	(0.05	)	- --
Net Asset Value, End of Period	$5.96		$9.46
Total Return 3	(36.51	)%	(5.40	)%
Ratios to Average Net Assets:
Net expenses	1.22	% 4	1.24	% 4
Net investment income	1.46	% 4	0.80	% 4
Expense waiver/reimbursement 5	91.14	% 4	111.75	% 4
Supplemental Data:
Net assets, end of period (000 omitted)	$134		$64
Portfolio turnover	78	%	41	%

1 Reflects operations for the period from March 7, 2008 (date of initial investment) to July 31, 2008.

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.

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) 1/31/2009		Period Ended 7/31/2008	1
Net Asset Value, Beginning of Period	$9.47		$10.00
Income From Investment Operations:
Net investment income	0.02	2	0.02	2
Net realized and unrealized loss on investments	(3.48	)	(0.55	)
TOTAL FROM INVESTMENT OPERATIONS	(3.46	)	(0.53	)
Less Distributions:
Distributions from net investment income	(0.05	)	- --
Net Asset Value, End of Period	$5.96		$9.47
Total Return 3	(36.58	)%	(5.30	)%
Ratios to Average Net Assets:
Net expenses	1.96	% 4	1.99	% 4
Net investment income	0.73	% 4	0.05	% 4
Expense waiver/reimbursement 5	91.19	% 4	111.80	% 4
Supplemental Data:
Net assets, end of period (000 omitted)	$20		$0	6
Portfolio turnover	78	%	41	%

1 Reflects operations for the period from March 7, 2008 (date of initial investment) to July 31, 2008.

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.

See Notes which are an integral part of the Financial Statements

Financial Highlights - Class K Shares

(For a Share Outstanding Throughout Each Period)

	Six Months Ended (unaudited) 1/31/2009		Period Ended 7/31/2008	1
Net Asset Value, Beginning of Period	$9.47		$10.00
Income From Investment Operations:
Net investment income	0.05	2	0.03	2
Net realized and unrealized loss on investments	(3.49	)	(0.56	)
TOTAL FROM INVESTMENT OPERATIONS	(3.44	)	(0.53	)
Less Distributions:
Distributions from net investment income	(0.06	)	- --
Net Asset Value, End of Period	$5.97		$9.47
Total Return 3	(36.42	)%	(5.30	)%
Ratios to Average Net Assets:
Net expenses	1.72	% 4	1.74	% 4
Net investment income	0.96	% 4	0.30	% 4
Expense waiver/reimbursement 5	91.16	% 4	111.71	% 4
Supplemental Data:
Net assets, end of period (000 omitted)	$0	6	$0	6
Portfolio turnover	78	%	41	%

1 Reflects operations for the period from March 7, 2008 (date of initial investment) to July 31, 2008.

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.

See Notes which are an integral part of the Financial Statements

Shareholder Expense Example (unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase or redemption payments; and (2) ongoing costs, including management fees and to the extent applicable, distribution (12b-1) fees and/or 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, 2008 to January 31, 2009.

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 8/1/2008	Ending Account Value 1/31/2009	Expenses Paid During Period 1
Actual:
Class A Shares	$1,000	$ 634.90	$ 5.03
Class C Shares	$1,000	$ 634.20	$ 8.07
Class K Shares	$1,000	$ 635.80	$ 7.09
Hypothetical (assuming a 5% return before expenses):
Class A Shares	$1,000	$1,019.06	$ 6.21
Class C Shares	$1,000	$1,015.32	$ 9.96
Class K Shares	$1,000	$1,016.53	$ 8.74

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	1.22%
Class C Shares	1.96%
Class K Shares	1.72%

Portfolio of Investments Summary Table (unaudited)

At January 31, 2009, the Fund's industry composition ¹ was as follows:

Industry	Percentage of Total Net Assets
Electric Utility	6.9	%
Ethical Drugs	5.9	%
Integrated International Oil	5.7	%
Property Liability Insurance	5.7	%
Oil Refiner	4.8	%
Railroad	4.8	%
Diversified Oil	4.7	%
Securities Brokerage	4.5	%
Integrated Domestic Oil	4.4	%
Home Products	4.3	%
Restaurant	4.1	%
Multi-Line Insurance	3.7	%
Services to Medical Professionals	3.0	%
Commodity Chemicals	2.4	%
Crude Oil & Gas Production	2.2	%
Department Stores	2.1	%
Major Steel Producer	2.1	%
Defense Aerospace	1.9	%
Life Insurance	1.9	%
Personal Loans	1.8	%
Multi-Industry Capital Goods	1.6	%
AT&T Divestiture	1.4	%
Financial Services	1.4	%
Aluminum	1.0	%
Other 2	14.5	%
Cash Equivalents 3	11.5	%
Other Assets and Liabilities--Net 4	(8.3	)%
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, 2009 (unaudited)

Shares					Value
			COMMON STOCKS--96.8%
			Agricultural Machinery--0.5%
	117		Deere & Co.	$	4,065
			Aluminum--1.0%
	955		Alcoa, Inc.		7,439
			Apparel--0.2%
	36		Columbia Sportswear Co.		1,034
	107		Liz Claiborne, Inc.		235
			TOTAL		1,269
			AT&T Divestiture--1.4%
	422		AT&T, Inc.		10,390
			Auto Part Replacement--0.2%
	38		Genuine Parts Co.		1,217
			Biotechnology--0.9%
	128	1	Amgen, Inc.		7,021
			Building Materials--0.1%
	63	1	Owens Corning, Inc.		840
			Clothing Stores--0.2%
	75		American Eagle Outfitters, Inc.		676
	93	1	AnnTaylor Stores Corp.		458
			TOTAL		1,134
			Commodity Chemicals--2.4%
	1,169		Dow Chemical Co.		13,549
	185		Eastman Chemical Co.		4,801
			TOTAL		18,350
			Computer Peripherals--0.4%
	136	1	Lexmark International Group, Class A		3,220
			Computer Stores--0.3%
	118	1	Ingram Micro, Inc., Class A		1,448
	33	1	Tech Data Corp.		598
			TOTAL		2,046
Shares					Value
			COMMON STOCKS--continued
			Construction Machinery--0.2%
	107		Trinity Industries, Inc.	$	1,232
			Contracting--0.3%
	63		Granite Construction, Inc.		2,219
			Crude Oil & Gas Production--2.2%
	283		Anadarko Petroleum Corp.		10,397
	87	1	Encore Aquisition Co.		2,365
	173		Pioneer Natural Resources, Inc.		2,533
	74		St. Mary Land & Exploration Co.		1,432
			TOTAL		16,727
			Defense Aerospace--1.9%
	102		General Dynamics Corp.		5,786
	107		Lockheed Martin Corp.		8,778
			TOTAL		14,564
			Defense Electronics--0.8%
	30		Grainger (W.W.), Inc.		2,188
	38		Northrop Grumman Corp.		1,829
	33		Raytheon Co.		1,670
			TOTAL		5,687
			Department Stores--2.1%
	54		Dillards, Inc., Class A		235
	383	1	Sears Holdings Corp.		15,672
			TOTAL		15,907
			Discount Department Stores--0.4%
	101	1	BJ's Wholesale Club, Inc.		2,897
			Diversified Leisure--0.2%
	279		Royal Caribbean Cruises Ltd.		1,811
			Diversified Oil--4.7%
	640		Occidental Petroleum Corp.		34,912
			Electric Utility--6.9%
	271		Edison International		8,826
	148		Entergy Corp.		11,301
	727		Sempra Energy		31,872
			TOTAL		51,999
Shares					Value
			COMMON STOCKS--continued
			Ethical Drugs--5.9%
	64	1	Forest Laboratories, Inc., Class A	$	1,603
	606		Johnson & Johnson		34,960
	267		Merck & Co., Inc.		7,623
			TOTAL		44,186
			Financial Services--1.4%
	512		Ameriprise Financial, Inc.		10,317
			Gas Distributor--0.9%
	159		Energen Corp.		4,644
	58		National Fuel Gas Co.		1,738
			TOTAL		6,382
			Grocery Chain--0.4%
	126		Safeway, Inc.		2,700
			Home Building--0.1%
	91		KB HOME		971
			Home Products--4.3%
	590		Procter & Gamble Co.		32,155
			Industrial Machinery--0.3%
	220	1	Terex Corp.		2,605
			Insurance Brokerage--0.2%
	6	1	Markel Corp.		1,620
			Integrated Domestic Oil--4.4%
	693		ConocoPhillips		32,938
			Integrated International Oil--5.7%
	467		Chevron Corp.		32,933
	124		Exxon Mobil Corp.		9,484
			TOTAL		42,417
			Life Insurance--1.9%
	100		Principal Financial Group		1,659
	400		Prudential Financial, Inc.		10,300
	71		Torchmark Corp.		2,130
			TOTAL		14,089
Shares					Value
			COMMON STOCKS--continued
			Machine Tools--0.1%
	12	1	Mettler-Toledo International, Inc.	$	799
			Major Steel Producer--2.1%
	531		United States Steel Corp.		15,946
			Maritime--0.6%
	47		Alexander and Baldwin, Inc.		1,036
	88		Overseas Shipholding Group, Inc.		3,142
			TOTAL		4,178
			Medical Supplies--0.6%
	79		AmerisourceBergen Corp.		2,869
	30		McKesson HBOC, Inc.		1,326
			TOTAL		4,195
			Medical Technology--0.1%
	15	1	Zimmer Holdings, Inc.		546
			Metal Fabrication--0.4%
	124		Reliance Steel & Aluminum Co.		2,744
			Mini-Mill Producer--0.3%
	193		Commercial Metals Corp.		2,219
			Miscellaneous Food Products--0.2%
	61		Corn Products International, Inc.		1,412
			Miscellaneous Machinery--0.1%
	25		Illinois Tool Works, Inc.		816
			Motion Pictures--0.3%
	51	1	Dreamworks Animation SKG, Inc.		1,119
	59		Walt Disney Co.		1,220
			TOTAL		2,339
			Multi-Industry Capital Goods--1.6%
	252		United Technologies Corp.		12,093
			Multi-Line Insurance--3.7%
	533		Allstate Corp.		11,550
	86		Assurant, Inc.		2,270
	432		CIGNA Corp.		7,499
Shares					Value
			COMMON STOCKS--continued
			Multi-Line Insurance--continued
	30		Cincinnati Financial Corp.	$	658
	25		Hanover Insurance Group, Inc.		1,011
	188		Hartford Financial Services Group, Inc.		2,474
	89		Lincoln National Corp.		1,347
	39		UNUMProvident Corp.		552
			TOTAL		27,361
			Oil Refiner--4.8%
	137		Frontier Oil Corp.		1,956
	1,401		Valero Energy Corp.		33,792
			TOTAL		35,748
			Oil Service, Explore & Drill--0.7%
	61	1	Exterran Holdings, Inc.		1,352
	63	1	Seacor Holdings, Inc.		4,098
			TOTAL		5,450
			Packaged Foods--0.8%
	24		Campbell Soup Co.		729
	41		General Mills, Inc.		2,425
	107		Kraft Foods, Inc., Class A		3,001
			TOTAL		6,155
			Paper Products--0.2%
	160		MeadWestvaco Corp.		1,862
			Personal Loans--1.8%
	837		Capital One Financial Corp.		13,258
			Personal Products--0.1%
	50	1	NBTY, Inc.		944
			Personnel Agency--0.3%
	90		Manpower, Inc.		2,561
			Property Liability Insurance--5.7%
	77		Berkley, W. R. Corp.		2,039
	408		Chubb Corp.		17,373
	609		The Travelers Cos., Inc.		23,532
			TOTAL		42,944
Shares					Value
			COMMON STOCKS--continued
			Railroad--4.8%
	942		Norfolk Southern Corp.	$	36,135
			Recreational Vehicles--0.4%
	267		Harley Davidson, Inc.		3,252
			Regional Bank--0.2%
	236		Marshall & Ilsley Corp.		1,348
			Restaurant--4.1%
	528		McDonald's Corp.		30,635
			Securities Brokerage--4.5%
	1,668		Morgan Stanley		33,744
			Semiconductor Distribution--0.4%
	155	1	Arrow Electronics, Inc.		2,956
			Semiconductor Manufacturing Equipment--0.2%
	94	1	Novellus Systems, Inc.		1,296
	102	1	Teradyne, Inc.		491
			TOTAL		1,787
			Services to Medical Professionals--3.0%
	165		Aetna, Inc.		5,115
	80	1	Health Net, Inc.		1,170
	88	1	Medco Health Solutions, Inc.		3,954
	256		UnitedHealth Group, Inc.		7,252
	128	1	Wellpoint, Inc.		5,306
			TOTAL		22,797
			Software Packaged/Custom--0.1%
	22	1	DST Systems, Inc.		699
			Specialty Retailing--0.5%
	83		Barnes & Noble, Inc.		1,363
	97		CVS Caremark Corp.		2,607
			TOTAL		3,970
Shares					Value
			COMMON STOCKS--continued
			Stainless Steel Producer--0.2%
	71		Carpenter Technology Corp.	$	1,171
			Telecommunication Equipment & Services--0.3%
	84	1	Anixter International, Inc.		2,266
			Trucking--0.8%
	179		Ryder System, Inc.		6,047
			TOTAL COMMON STOCKS (IDENTIFIED COST $916,044)		725,703
			MUTUAL FUND--11.5%
	85,959	2,3	Prime Value Obligations Fund, Institutional Shares, 1.75% (AT NET ASSET VALUE)		85,959
			TOTAL INVESTMENTS--108.3% (IDENTIFIED COST $1,002,003) 4		811,662
			OTHER ASSETS AND LIABILITIES - NET--(8.3)% 5		(62,189	)
			TOTAL NET ASSETS--100%	$	749,473

1 Non-income-producing security.

2 Affiliated company.

3 7-Day net yield.

4 Also represents cost for federal tax purposes.

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

Note: The categories of investments are shown as a percentage of total net assets at January 31, 2009.

Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below:

Level 1--quoted prices in active markets for identical securities

Level 2--other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

Level 3--significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used, as of January 31, 2009, in valuing the Fund's assets carried at fair value:

Valuation Inputs	Investments in Securities
Level 1--Quoted Prices and Investments in Mutual Funds	$811,662
Level 2--Other Significant Observable Inputs	- --
Level 3--Significant Unobservable Inputs	- --
TOTAL	$811,662

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

January 31, 2009 (unaudited)

Assets:
Total investments in securities, at value including $85,959 of investments in an affiliated issuer (Note 5) (identified cost $1,002,003)			$	811,662
Income receivable				1,073
Receivable for investments sold				1,556
TOTAL ASSETS				814,291
Liabilities:
Payable for investments purchased	$	1,528
Payable for custodian fees		688
Payable for auditing fees		13,686
Payable for legal fees		4,607
Payable for portfolio accounting fees		19,278
Payable for distribution services fee (Note 5)		13
Payable for shareholder services fee (Note 5)		53
Payable for share registration costs		21,135
Accrued expenses		3,830
TOTAL LIABILITIES				64,818
Net assets for 125,604 shares outstanding			$	749,473
Net Assets Consist of:
Paid-in capital			$	1,014,199
Net unrealized depreciation of investments				(190,341	)
Accumulated net realized loss on investments				(74,481	)
Undistributed net investment income				96
TOTAL NET ASSETS			$	749,473

Statement of Assets and Liabilities - continued

Net Asset Value, Offering Price and Redemption Proceeds Per Share
Institutional Shares:
Net asset value per share ($596,052 ÷ 99,870 shares outstanding), no par value, unlimited shares authorized	$5.97
Offering price per share	$5.97
Redemption proceeds per share	$5.97
Class A Shares:
Net asset value per share ($133,626 ÷ 22,414 shares outstanding), no par value, unlimited shares authorized	$5.96
Offering price per share (100/94.50 of $5.96)	$6.31
Redemption proceeds per share	$5.96
Class C Shares:
Net asset value per share ($19,736 ÷ 3,310 shares outstanding), no par value, unlimited shares authorized	$5.96
Offering price per share	$5.96
Redemption proceeds per share (99.00/100 of $5.96)	$5.90
Class K Shares:
Net asset value per share ($59.70 ÷ 10 shares outstanding), no par value, unlimited shares authorized	$5.97
Offering price per share	$5.97
Redemption proceeds per share	$5.97

See Notes which are an integral part of the Financial Statements

Statement of Operations

Six Months Ended January 31, 2009 (unaudited)

Investment Income:
Dividends (including $418 received from an affiliated issuer) (Note 5)							$	7,486
Expenses:
Investment adviser fee (Note 5)				$	2,091
Administrative personnel and services fee (Note 5)					136,109
Custodian fees					3,870
Transfer and dividend disbursing agent fees and expenses--Institutional Shares					21,596
Transfer and dividend disbursing agent fees and expenses--Class A Shares					4,139
Transfer and dividend disbursing agent fees and expenses--Class C Shares					233
Transfer and dividend disbursing agent fees and expenses--Class K Shares					3
Auditing fees					4,486
Legal fees					3,133
Portfolio accounting fees					37,424
Distribution services fee--Class C Shares (Note 5)					25
Shareholder services fee--Class A Shares (Note 5)					113
Shareholder services fee--Class C Shares (Note 5)					8
Share registration costs					22,897
Printing and postage					17,392
Insurance premiums					2,057
Miscellaneous					1,310
TOTAL EXPENSES					256,886
Waivers and Reimbursements (Note 5):
Waiver/reimbursement of investment adviser fee	$	(2,091	)
Waiver of administrative personnel and services fee		(27,723	)
Reimbursement of transfer and dividend disbursing agent fees and expenses--Institutional Shares		(23	)
Reimbursement of transfer and dividend disbursing agent fees and expenses--Class A Shares		(18	)
Reimbursement of transfer and dividend disbursing agent fees and expenses--Class C Shares		(3	)
Reimbursement of other operating expenses		(224,166	)
TOTAL WAIVERS AND REIMBURSEMENTS					(254,024	)
Net expenses								2,862
Net investment income								4,624
Realized and Unrealized Loss on Investments:
Net realized loss on investments								(73,472	)
Net change in unrealized depreciation of investments								(154,495	)
Net realized and unrealized loss on investments								(227,967	)
Change in net assets resulting from operations							$	(223,343	)

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

		Six Months Ended (unaudited) 1/31/2009			Period Ended 7/31/2008	1
Increase (Decrease) in Net Assets
Operations:
Net investment income	$	4,624		$	2,255
Net realized loss on investments		(73,472	)		(1,009	)
Net change in unrealized appreciation/depreciation of investments		(154,495	)		(35,846	)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		(223,343	)		(34,600	)
Distributions to Shareholders:
Distributions from net investment income
Institutional Shares		(5,519	)		- --
Class A Shares		(1,095	)		- --
Class C Shares		(168	)		- --
Class K Shares		(1	)		- --
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS		(6,783	)		- --
Share Transactions:
Proceeds from sale of shares		444,950			574,741
Net asset value of shares issued to shareholders in payment of distributions declared		4,007			- --
Cost of shares redeemed		(6,427	)		(3,072	)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		442,530			571,669
Change in net assets		212,404			537,069
Net Assets:
Beginning of period		537,069			- --
End of period (including undistributed net investment income of $96 and $2,255, respectively)	$	749,473		$	537,069

1 Reflects operations for the period from March 7, 2008 (date of initial investment) to July 31, 2008.

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

January 31, 2009 (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 nine diversified portfolios. The financial statements included herein are only those of Federated MDT Large 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. Each portfolio pays its own expenses. 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 investment objective of the Fund is long-term capital appreciation.

The Fund's Institutional Shares, Class A Shares, Class C Shares and Class K Shares became effective with the Securities and Exchange Commission (SEC) on March 3, 2008.

2. SIGNIFICANT ACCOUNTING POLICIES

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

Investment Valuation

In calculating its net asset value (NAV), the Fund generally values investments as follows:

• Equity securities listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market.
• Shares of other mutual funds are valued based upon their reported NAVs.
• Fixed-income securities acquired with remaining maturities greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Board of Trustees (the "Trustees").
• Fixed-income securities acquired with remaining maturities of 60 days or less are valued at their cost (adjusted for the accretion of any discount or amortization of any premium).
• Derivative contracts listed on exchanges are valued at their reported settlement or closing price.
• Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Trustees.

If the Fund cannot obtain a price or price evaluation from a pricing service for an investment, the Fund may attempt to value the investment based upon the mean of bid and asked quotations or fair value the investment based on price evaluations, from one or more dealers. If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could purchase or sell an investment at the price used to calculate the Fund's NAV.

Fair Valuation and Significant Events Procedures

The Trustees have authorized the use of pricing services to provide evaluations of the current fair value of certain investments for purposes of calculating the NAV. Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a "bid" evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and asked for the investment (a "mid" evaluation). The Fund normally uses bid evaluations for U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for other types of fixed-income securities and OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Trustees.

The Trustees also have adopted procedures requiring an investment to be priced at its fair value whenever the Adviser determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment's value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:

• With respect to securities traded in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures or options contracts;
• With respect to price evaluations of fixed-income securities determined before the close of regular trading on the NYSE, actions by the Federal Reserve Open Market Committee and other significant trends in U.S. fixed-income markets;
• Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; and
• Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, a natural disaster affecting the issuer's operations or regulatory changes or market developments affecting the issuer's industry.

The Trustees have approved the use of a pricing service to determine the fair value of equity securities traded principally in foreign markets when the Adviser determines that there has been a significant trend in the U.S. equity markets or in index futures trading. For other significant events, the Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Fund will determine the fair value of the investment using another method approved by the Trustees.

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

Investment transactions are accounted for on a trade-date basis. Realized gains and losses from investment transactions are recorded on an identified cost basis. Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Foreign dividends are recorded on the ex-dividend date or when the Fund is informed of the ex-dividend date. Distributions of net investment income, if any, are declared and paid 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 Institutional Shares, Class A Shares, Class C Shares and Class K Shares may bear distribution services fees, shareholder services fees and certain transfer and dividend disbursing agent fees unique to those classes. 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. The Fund complies with the provisions of Financial Accounting Standards Board (FASB) Interpretation No. 48 (FIN 48), "Accounting for Uncertainty in Income Taxes." As of and during the six months ended January 31, 2009, the Fund did not have a liability for any uncertain tax positions. The Fund recognizes interest and penalties, if any, related to tax liabilities as income tax expense in the Statement of Operations. As of January 31, 2009, tax year 2008 remains subject to examination by the Fund's major tax jurisdictions, which include the United States of America and the Commonwealth of Massachusetts.

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.

Other

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

3. SHARES OF BENEFICIAL INTEREST

The following tables summarize share activity:

	Six Months Ended 1/31/2009					Period Ended 7/31/2008 1
Institutional Shares:	Shares			Amount		Shares			Amount
Shares sold	49,450		$	315,000		50,010		$	500,100
Shares issued to shareholders in payment of distributions declared	420			2,744		- --			- --
Shares redeemed	- --			- --		(10	)		(100	)
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS	49,870		$	317,744		50,000		$	500,000
	Six Months Ended 1/31/2009					Period Ended 7/31/2008 1
Class A Shares:	Shares			Amount		Shares			Amount
Shares sold	16,498		$	109,641		7,012		$	74,441
Shares issued to shareholders in payment of distributions declared	168			1,095		- --			- --
Shares redeemed	(966	)		(6,077	)	(298	)		(2,972	)
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS	15,700		$	104,659		6,714		$	71,469
	Six Months Ended 1/31/2009					Period Ended 7/31/2008 1
Class C Shares:	Shares			Amount		Shares			Amount
Shares sold	3,329		$	20,309		10		$	100
Shares issued to shareholders in payment of distributions declared	26			168		- --			- --
Shares redeemed	(55	)		(350	)	- --			- --
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS	3,300		$	20,127		10		$	100
	Six Months Ended 1/31/2009					Period Ended 7/31/2008 1
Class K Shares:	Shares			Amount		Shares			Amount
Shares sold	- --		$	- --		10		$	100
NET CHANGE RESULTING FROM CLASS K SHARE TRANSACTIONS	- --		$	- --		10		$	100
NET CHANGE RESULTING FROM SHARE TRANSACTIONS	68,870		$	442,530		56,734		$	571,669

1 Reflects operations for the period from March 7, 2008 (date of initial investment) to July 31, 2008.

4. FEDERAL TAX INFORMATION

At January 31, 2009, the cost of investments for federal tax purposes was $1,002,003. The net unrealized depreciation of investments for federal tax purposes was $190,341. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $7,962 and net unrealized depreciation from investments for those securities having an excess of cost over value of $198,303.

5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated MDTA LLC is the Fund's investment adviser (the "Adviser"). The advisory agreement between the Fund and the Adviser provides for an annual fee equal to 0.75% of the Fund's average daily net assets. Subject to the terms described in the Expense Limitation note, the Adviser may voluntarily choose to waive any portion of its fee and/or reimburse certain operating expenses of the Fund. 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, 2009, the Adviser voluntarily waived $2,078 of its fee and voluntarily reimbursed $224,166 of other operating expenses. In addition, an affiliate of the Adviser reimbursed $44 of transfer and dividend disbursing agent fees and expenses.

Administrative Fee

Federated Administrative Services (FAS), under the Administrative Services 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. Subject to the terms described in the Expense Limitation note, 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, 2009, the net fee paid to FAS was 38.879% of average daily net assets of the Fund. The Fund is currently being charged the minimum administrative fee; therefore the fee as a percentage of average daily net assets is greater than the amounts presented in the chart above. FAS waived $27,723 of its fee.

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 at the following percentages of average daily net assets annually, to compensate FSC:

Share Class Name	Percentage of Average Daily Net Assets of Class
Class A Shares	0.05%
Class C Shares	0.75%
Class K Shares	0.50%

Subject to the terms described in the Expense Limitation note, 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, 2009, FSC did not retain any fees paid by the Fund. For the six months ended January 31, 2009, the Fund's Class A Shares did not incur a distribution services fee; however it may begin to incur this fee upon approval of the Trustees.

Sales Charges

Front-end sales charges do not represent expenses of the Fund. They are deducted from the proceeds of sales of Fund shares prior to investment or from redemption proceeds prior to remittance, as applicable. For the six months ended January 31, 2009, FSC retained $63 in sales charges from the sale of Class A Shares.

Shareholder Services Fee

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. Subject to the terms described in the Expense Limitation note, FSSC may voluntarily reimburse the Fund for shareholder services fees. This voluntary reimbursement can be modified or terminated at any time. For the six months ended January 31, 2009, FSSC did not receive any fees paid by the Fund.

Expense Limitation

The Adviser and its affiliates (which may include FSC, FAS and FSSC) have voluntarily agreed to waive their fees and/or reimburse expenses so that the total operating expenses (as shown in the financial highlights) paid by the Fund's Institutional Shares, Class A Shares, Class C Shares and Class K Shares (after the voluntary waivers and reimbursements) will not exceed 0.97%, 1.22%, 1.97% and 1.72%, respectively, for the fiscal year ending July 31, 2009. Although these actions are voluntary, the Adviser and its affiliates have agreed to continue these waivers and/or reimbursements at least through September 30, 2009.

General

Certain 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 affiliated mutual funds. For the six months ended January 31, 2009, the Adviser reimbursed $13. Transactions with the affiliated company during the six months ended January 31, 2009 were as follows:

Affiliate	Balance of Shares Held 7/31/2008	Purchases/ Additions	Sales/ Reductions	Balance of Shares Held 1/31/2009	Value	Dividend Income
Prime Value Obligations Fund, Institutional Shares	73,796	540,847	528,684	85,959	$85,959	$418

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, 2009, were as follows:

Purchases	$	859,830
Sales	$	442,240

7. LINE OF CREDIT

The Fund participates in a $100,000,000 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, 2009, there were no outstanding loans. During the six months ended January 31, 2009, the Fund did not utilize the LOC.

8. INTERFUND LENDING

Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other funds advised by subsidiaries of Federated Investors, Inc., may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from other participating affiliated funds. As of January 31, 2009, there were no outstanding loans. During the six months ended January 31, 2009, the program was not utilized.

9. LEGAL PROCEEDINGS

Since October 2003, Federated Investors, Inc. and related entities (collectively, "Federated") and various Federated funds ("Federated Funds") have been 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 Federated Funds from the 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 entities have also been named as defendants in several additional lawsuits that 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 Federated Funds retained the law firm of Dickstein Shapiro LLP to represent the Federated Funds in these lawsuits. Federated and the Federated Funds, and their respective counsel have been defending this litigation, and none of the Federated Funds remains a defendant in any of the lawsuits (though some could potentially receive any recoveries as nominal defendants). 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 Federated 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 Federated Fund redemptions, reduced sales of Federated Fund shares, or other adverse consequences for the Federated Funds.

Evaluation and Approval of Advisory Contract - May 2008

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

The Fund's Board reviewed the Fund's investment advisory contract at meetings held in May 2008. Because the Fund did not yet have a meaningful operating history, the Board's decision to approve the contract reflects the exercise of its business judgment primarily on whether to authorize the continued offering of this new investment vehicle, as originally proposed by, and based on information previously provided by, the Federated organization, and based on Federated's recommendation to go forward with the Fund.

The Federated funds' Board had previously appointed 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 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. The Board considered that evaluation, 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 and considered 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 what might be viewed as like services, and the cost 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 for supplying such services. The Board was aware of these factors and was guided by them in its review of the Fund's advisory contract to the extent it considered them to be 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 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); and the nature, quality and extent of the advisory and other services to be provided to the Fund by the Adviser and its affiliates. The Board also considered 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 include, but are not limited to, different types of targeted investors; being subject to different laws and regulations; different legal structures; different average account sizes; different associated costs; and different 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, using data supplied by independent fund ranking organizations, regarding the fees charged by other mutual funds, noting his view that comparisons to fund peer groups are highly important in judging the reasonableness of proposed fees. He also observed that certain funds may exhibit important differences in their objectives and management techniques when compared to other funds placed in the same peer group by ranking organizations, noting in this connection that the Fund's quantitative investment program is of such a type.

It was recognized that the factors mentioned above relating to such matters as fund performance and any 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, the Board monitors the Fund's performance quarterly as information becomes available. Moreover, 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. In addition, the Board considered the fact that, in order for a fund to be competitive in the marketplace, Federated and its affiliates frequently waive fees and/or reimburse expenses and have disclosed to fund investors and/or indicated to the Board their intention to do so in the future, where appropriate.

In connection with the Board's initial consideration of the contract, Federated had previously furnished reports, requested by the Senior Officer, that reported projected revenues and made estimates of the allocation of expenses 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 unavoidable arbitrary aspects of that exercise) and the lack of consensus on how to allocate those costs may render such allocation reports unreliable. The allocation reports were considered in the analysis by the Board but were determined to be of limited use.

The Board and the Senior Officer also reviewed a report compiled by Federated comparing profitability information for Federated to other publicly held fund management companies. In this regard, the Senior Officer noted the limited availability of such information, but nonetheless concluded that Federated's profit margins did not appear to be excessive and the Board agreed.

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 and long-term investments in areas that support all of the Federated funds, such as personnel and processes for the portfolio management, compliance, and risk management functions; and systems technology; and that the benefits of these efforts (as well as 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 (as discussed in the Senior Officer's evaluation) 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.

It was noted in the materials for the Board meeting that the Fund had only recently commenced its first fiscal year, and that the Fund's investment advisory fee has been waived in its entirety. The Board reviewed the contractual fee rate and other expenses of the Fund with the Adviser and was satisfied that the overall expense structure of the Fund remained competitive.

The Senior Officer's evaluation noted his belief that the information and observations contained in his evaluation supported a finding that the proposed management fees are reasonable, and that Federated appeared to provide appropriate administrative services to the Fund for the fees paid. Under these circumstances, no changes were recommended to, and no objection was raised to, the continuation of the Fund's advisory contract. With due regard for the fact that the Fund did not yet have a meaningful operating history, the Board concluded that the nature, quality and scope of services provided the Fund by the Adviser and its affiliates were satisfactory.

The Board based its decision to approve the 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 did 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 previously 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 continue the existing 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 from Federated's website at FederatedInvestors.com. To access this information from the "Products" section of the website, click on the "Prospectuses and Regulatory Reports" link under "Related Information," then select the appropriate link opposite the name of the Fund; or select the name of the Fund and from the Fund's page, click on the "Prospectuses and Regulatory Reports" link. Form N-PX filings are also available at 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" under "Related Information," then selecting the appropriate link opposite the name of the Fund; or select the name of the Fund and from the Fund's page, click on the "Portfolio Holdings" link.

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 31421R668
Cusip 31421R650
Cusip 31421R643

40125 (3/09)

Federated is a registered mark of Federated Investors, Inc. 2009 (c)Federated Investors, Inc.

Federated
World-Class Investment Manager

Federated MDT Large Cap Value Fund

A Portfolio of Federated MDT Series

SEMI-ANNUAL SHAREHOLDER REPORT

January 31, 2009

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) 1/31/2009		Period Ended 7/31/2008	1
Net Asset Value, Beginning of Period	$9.47		$10.00
Income From Investment Operations:
Net investment income	0.06	2	0.04	2
Net realized and unrealized loss on investments	(3.50	)	(0.57	)
TOTAL FROM INVESTMENT OPERATIONS	(3.44	)	(0.53	)
Less Distributions:
Distributions from net investment income	(0.06	)	- --
Net Asset Value, End of Period	$5.97		$9.47
Total Return 3	(36.42	)%	(5.30	)%
Ratios to Average Net Assets:
Net expenses	0.97	% 4	0.99	% 4
Net investment income	1.71	% 4	1.05	% 4
Expense waiver/reimbursement 5	91.11	% 4	111.72	% 4
Supplemental Data:
Net assets, end of period (000 omitted)	$596		$473
Portfolio turnover	78	%	41	%

1 Reflects operations for the period from March 7, 2008 (date of initial investment) to July 31, 2008.

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.

See Notes which are an integral part of the Financial Statements

Shareholder Expense Example (unaudited)

As a shareholder of the Fund, you incur ongoing costs, including management fees and to the extent applicable, distribution (12b-1) fees and/or 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, 2008 to January 31, 2009.

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 8/1/2008	Ending Account Value 1/31/2009	Expenses Paid During Period 1
Actual	$1,000	$ 635.80	$4.00
Hypothetical (assuming a 5% return before expenses)	$1,000	$1,020.32	$4.94

1 Expenses are equal to the Fund's annualized net expense ratio of 0.97%, 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 (unaudited)

At January 31, 2009, the Fund's industry composition ¹ was as follows:

Industry	Percentage of Total Net Assets
Electric Utility	6.9	%
Ethical Drugs	5.9	%
Integrated International Oil	5.7	%
Property Liability Insurance	5.7	%
Oil Refiner	4.8	%
Railroad	4.8	%
Diversified Oil	4.7	%
Securities Brokerage	4.5	%
Integrated Domestic Oil	4.4	%
Home Products	4.3	%
Restaurant	4.1	%
Multi-Line Insurance	3.7	%
Services to Medical Professionals	3.0	%
Commodity Chemicals	2.4	%
Crude Oil & Gas Production	2.2	%
Department Stores	2.1	%
Major Steel Producer	2.1	%
Defense Aerospace	1.9	%
Life Insurance	1.9	%
Personal Loans	1.8	%
Multi-Industry Capital Goods	1.6	%
AT&T Divestiture	1.4	%
Financial Services	1.4	%
Aluminum	1.0	%
Other 2	14.5	%
Cash Equivalents 3	11.5	%
Other Assets and Liabilities--Net 4	(8.3	)%
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, 2009 (unaudited)

Shares					Value
			COMMON STOCKS--96.8%
			Agricultural Machinery--0.5%
	117		Deere & Co.	$	4,065
			Aluminum--1.0%
	955		Alcoa, Inc.		7,439
			Apparel--0.2%
	36		Columbia Sportswear Co.		1,034
	107		Liz Claiborne, Inc.		235
			TOTAL		1,269
			AT&T Divestiture--1.4%
	422		AT&T, Inc.		10,390
			Auto Part Replacement--0.2%
	38		Genuine Parts Co.		1,217
			Biotechnology--0.9%
	128	1	Amgen, Inc.		7,021
			Building Materials--0.1%
	63	1	Owens Corning, Inc.		840
			Clothing Stores--0.2%
	75		American Eagle Outfitters, Inc.		676
	93	1	AnnTaylor Stores Corp.		458
			TOTAL		1,134
			Commodity Chemicals--2.4%
	1,169		Dow Chemical Co.		13,549
	185		Eastman Chemical Co.		4,801
			TOTAL		18,350
			Computer Peripherals--0.4%
	136	1	Lexmark International Group, Class A		3,220
			Computer Stores--0.3%
	118	1	Ingram Micro, Inc., Class A		1,448
	33	1	Tech Data Corp.		598
			TOTAL		2,046
Shares					Value
			COMMON STOCKS--continued
			Construction Machinery--0.2%
	107		Trinity Industries, Inc.	$	1,232
			Contracting--0.3%
	63		Granite Construction, Inc.		2,219
			Crude Oil & Gas Production--2.2%
	283		Anadarko Petroleum Corp.		10,397
	87	1	Encore Aquisition Co.		2,365
	173		Pioneer Natural Resources, Inc.		2,533
	74		St. Mary Land & Exploration Co.		1,432
			TOTAL		16,727
			Defense Aerospace--1.9%
	102		General Dynamics Corp.		5,786
	107		Lockheed Martin Corp.		8,778
			TOTAL		14,564
			Defense Electronics--0.8%
	30		Grainger (W.W.), Inc.		2,188
	38		Northrop Grumman Corp.		1,829
	33		Raytheon Co.		1,670
			TOTAL		5,687
			Department Stores--2.1%
	54		Dillards, Inc., Class A		235
	383	1	Sears Holdings Corp.		15,672
			TOTAL		15,907
			Discount Department Stores--0.4%
	101	1	BJ's Wholesale Club, Inc.		2,897
			Diversified Leisure--0.2%
	279		Royal Caribbean Cruises Ltd.		1,811
			Diversified Oil--4.7%
	640		Occidental Petroleum Corp.		34,912
			Electric Utility--6.9%
	271		Edison International		8,826
	148		Entergy Corp.		11,301
	727		Sempra Energy		31,872
			TOTAL		51,999
Shares					Value
			COMMON STOCKS--continued
			Ethical Drugs--5.9%
	64	1	Forest Laboratories, Inc., Class A	$	1,603
	606		Johnson & Johnson		34,960
	267		Merck & Co., Inc.		7,623
			TOTAL		44,186
			Financial Services--1.4%
	512		Ameriprise Financial, Inc.		10,317
			Gas Distributor--0.9%
	159		Energen Corp.		4,644
	58		National Fuel Gas Co.		1,738
			TOTAL		6,382
			Grocery Chain--0.4%
	126		Safeway, Inc.		2,700
			Home Building--0.1%
	91		KB HOME		971
			Home Products--4.3%
	590		Procter & Gamble Co.		32,155
			Industrial Machinery--0.3%
	220	1	Terex Corp.		2,605
			Insurance Brokerage--0.2%
	6	1	Markel Corp.		1,620
			Integrated Domestic Oil--4.4%
	693		ConocoPhillips		32,938
			Integrated International Oil--5.7%
	467		Chevron Corp.		32,933
	124		Exxon Mobil Corp.		9,484
			TOTAL		42,417
			Life Insurance--1.9%
	100		Principal Financial Group		1,659
	400		Prudential Financial, Inc.		10,300
	71		Torchmark Corp.		2,130
			TOTAL		14,089
Shares					Value
			COMMON STOCKS--continued
			Machine Tools--0.1%
	12	1	Mettler-Toledo International, Inc.	$	799
			Major Steel Producer--2.1%
	531		United States Steel Corp.		15,946
			Maritime--0.6%
	47		Alexander and Baldwin, Inc.		1,036
	88		Overseas Shipholding Group, Inc.		3,142
			TOTAL		4,178
			Medical Supplies--0.6%
	79		AmerisourceBergen Corp.		2,869
	30		McKesson HBOC, Inc.		1,326
			TOTAL		4,195
			Medical Technology--0.1%
	15	1	Zimmer Holdings, Inc.		546
			Metal Fabrication--0.4%
	124		Reliance Steel & Aluminum Co.		2,744
			Mini-Mill Producer--0.3%
	193		Commercial Metals Corp.		2,219
			Miscellaneous Food Products--0.2%
	61		Corn Products International, Inc.		1,412
			Miscellaneous Machinery--0.1%
	25		Illinois Tool Works, Inc.		816
			Motion Pictures--0.3%
	51	1	Dreamworks Animation SKG, Inc.		1,119
	59		Walt Disney Co.		1,220
			TOTAL		2,339
			Multi-Industry Capital Goods--1.6%
	252		United Technologies Corp.		12,093
			Multi-Line Insurance--3.7%
	533		Allstate Corp.		11,550
	86		Assurant, Inc.		2,270
	432		CIGNA Corp.		7,499
Shares					Value
			COMMON STOCKS--continued
			Multi-Line Insurance--continued
	30		Cincinnati Financial Corp.	$	658
	25		Hanover Insurance Group, Inc.		1,011
	188		Hartford Financial Services Group, Inc.		2,474
	89		Lincoln National Corp.		1,347
	39		UNUMProvident Corp.		552
			TOTAL		27,361
			Oil Refiner--4.8%
	137		Frontier Oil Corp.		1,956
	1,401		Valero Energy Corp.		33,792
			TOTAL		35,748
			Oil Service, Explore & Drill--0.7%
	61	1	Exterran Holdings, Inc.		1,352
	63	1	Seacor Holdings, Inc.		4,098
			TOTAL		5,450
			Packaged Foods--0.8%
	24		Campbell Soup Co.		729
	41		General Mills, Inc.		2,425
	107		Kraft Foods, Inc., Class A		3,001
			TOTAL		6,155
			Paper Products--0.2%
	160		MeadWestvaco Corp.		1,862
			Personal Loans--1.8%
	837		Capital One Financial Corp.		13,258
			Personal Products--0.1%
	50	1	NBTY, Inc.		944
			Personnel Agency--0.3%
	90		Manpower, Inc.		2,561
			Property Liability Insurance--5.7%
	77		Berkley, W. R. Corp.		2,039
	408		Chubb Corp.		17,373
	609		The Travelers Cos., Inc.		23,532
			TOTAL		42,944
Shares					Value
			COMMON STOCKS--continued
			Railroad--4.8%
	942		Norfolk Southern Corp.	$	36,135
			Recreational Vehicles--0.4%
	267		Harley Davidson, Inc.		3,252
			Regional Bank--0.2%
	236		Marshall & Ilsley Corp.		1,348
			Restaurant--4.1%
	528		McDonald's Corp.		30,635
			Securities Brokerage--4.5%
	1,668		Morgan Stanley		33,744
			Semiconductor Distribution--0.4%
	155	1	Arrow Electronics, Inc.		2,956
			Semiconductor Manufacturing Equipment--0.2%
	94	1	Novellus Systems, Inc.		1,296
	102	1	Teradyne, Inc.		491
			TOTAL		1,787
			Services to Medical Professionals--3.0%
	165		Aetna, Inc.		5,115
	80	1	Health Net, Inc.		1,170
	88	1	Medco Health Solutions, Inc.		3,954
	256		UnitedHealth Group, Inc.		7,252
	128	1	Wellpoint, Inc.		5,306
			TOTAL		22,797
			Software Packaged/Custom--0.1%
	22	1	DST Systems, Inc.		699
			Specialty Retailing--0.5%
	83		Barnes & Noble, Inc.		1,363
	97		CVS Caremark Corp.		2,607
			TOTAL		3,970
Shares					Value
			COMMON STOCKS--continued
			Stainless Steel Producer--0.2%
	71		Carpenter Technology Corp.	$	1,171
			Telecommunication Equipment & Services--0.3%
	84	1	Anixter International, Inc.		2,266
			Trucking--0.8%
	179		Ryder System, Inc.		6,047
			TOTAL COMMON STOCKS (IDENTIFIED COST $916,044)		725,703
			MUTUAL FUND--11.5%
	85,959	2,3	Prime Value Obligations Fund, Institutional Shares, 1.75% (AT NET ASSET VALUE)		85,959
			TOTAL INVESTMENTS--108.3% (IDENTIFIED COST $1,002,003) 4		811,662
			OTHER ASSETS AND LIABILITIES - NET--(8.3)% 5		(62,189	)
			TOTAL NET ASSETS--100%	$	749,473

1 Non-income-producing security.

2 Affiliated company.

3 7-Day net yield.

4 Also represents cost for federal tax purposes.

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

Note: The categories of investments are shown as a percentage of total net assets at January 31, 2009.

Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below:

Level 1--quoted prices in active markets for identical securities

Level 2--other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

Level 3--significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used, as of January 31, 2009, in valuing the Fund's assets carried at fair value:

Valuation Inputs	Investments in Securities
Level 1--Quoted Prices and Investments in Mutual Funds	$811,662
Level 2--Other Significant Observable Inputs	- --
Level 3--Significant Unobservable Inputs	- --
TOTAL	$811,662

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

January 31, 2009 (unaudited)

Assets:
Total investments in securities, at value including $85,959 of investments in an affiliated issuer (Note 5) (identified cost $1,002,003)			$	811,662
Income receivable				1,073
Receivable for investments sold				1,556
TOTAL ASSETS				814,291
Liabilities:
Payable for investments purchased	$	1,528
Payable for custodian fees		688
Payable for auditing fees		13,686
Payable for legal fees		4,607
Payable for portfolio accounting fees		19,278
Payable for distribution services fee (Note 5)		13
Payable for shareholder services fee (Note 5)		53
Payable for share registration costs		21,135
Accrued expenses		3,830
TOTAL LIABILITIES				64,818
Net assets for 125,604 shares outstanding			$	749,473
Net Assets Consist of:
Paid-in capital			$	1,014,199
Net unrealized depreciation of investments				(190,341	)
Accumulated net realized loss on investments				(74,481	)
Undistributed net investment income				96
TOTAL NET ASSETS			$	749,473

Statement of Assets and Liabilities - continued

Net Asset Value, Offering Price and Redemption Proceeds Per Share
Institutional Shares:
Net asset value per share ($596,052 ÷ 99,870 shares outstanding), no par value, unlimited shares authorized	$5.97
Offering price per share	$5.97
Redemption proceeds per share	$5.97
Class A Shares:
Net asset value per share ($133,626 ÷ 22,414 shares outstanding), no par value, unlimited shares authorized	$5.96
Offering price per share (100/94.50 of $5.96)	$6.31
Redemption proceeds per share	$5.96
Class C Shares:
Net asset value per share ($19,736 ÷ 3,310 shares outstanding), no par value, unlimited shares authorized	$5.96
Offering price per share	$5.96
Redemption proceeds per share (99.00/100 of $5.96)	$5.90
Class K Shares:
Net asset value per share ($59.70 ÷ 10 shares outstanding), no par value, unlimited shares authorized	$5.97
Offering price per share	$5.97
Redemption proceeds per share	$5.97

See Notes which are an integral part of the Financial Statements

Statement of Operations

Six Months Ended January 31, 2009 (unaudited)

Investment Income:
Dividends (including $418 received from an affiliated issuer) (Note 5)							$	7,486
Expenses:
Investment adviser fee (Note 5)				$	2,091
Administrative personnel and services fee (Note 5)					136,109
Custodian fees					3,870
Transfer and dividend disbursing agent fees and expenses--Institutional Shares					21,596
Transfer and dividend disbursing agent fees and expenses--Class A Shares					4,139
Transfer and dividend disbursing agent fees and expenses--Class C Shares					233
Transfer and dividend disbursing agent fees and expenses--Class K Shares					3
Auditing fees					4,486
Legal fees					3,133
Portfolio accounting fees					37,424
Distribution services fee--Class C Shares (Note 5)					25
Shareholder services fee--Class A Shares (Note 5)					113
Shareholder services fee--Class C Shares (Note 5)					8
Share registration costs					22,897
Printing and postage					17,392
Insurance premiums					2,057
Miscellaneous					1,310
TOTAL EXPENSES					256,886
Waivers and Reimbursements (Note 5):
Waiver/reimbursement of investment adviser fee	$	(2,091	)
Waiver of administrative personnel and services fee		(27,723	)
Reimbursement of transfer and dividend disbursing agent fees and expenses--Institutional Shares		(23	)
Reimbursement of transfer and dividend disbursing agent fees and expenses--Class A Shares		(18	)
Reimbursement of transfer and dividend disbursing agent fees and expenses--Class C Shares		(3	)
Reimbursement of other operating expenses		(224,166	)
TOTAL WAIVERS AND REIMBURSEMENTS					(254,024	)
Net expenses								2,862
Net investment income								4,624
Realized and Unrealized Loss on Investments:
Net realized loss on investments								(73,472	)
Net change in unrealized depreciation of investments								(154,495	)
Net realized and unrealized loss on investments								(227,967	)
Change in net assets resulting from operations							$	(223,343	)

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

		Six Months Ended (unaudited) 1/31/2009			Period Ended 7/31/2008	1
Increase (Decrease) in Net Assets
Operations:
Net investment income	$	4,624		$	2,255
Net realized loss on investments		(73,472	)		(1,009	)
Net change in unrealized appreciation/depreciation of investments		(154,495	)		(35,846	)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		(223,343	)		(34,600	)
Distributions to Shareholders:
Distributions from net investment income
Institutional Shares		(5,519	)		- --
Class A Shares		(1,095	)		- --
Class C Shares		(168	)		- --
Class K Shares		(1	)		- --
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS		(6,783	)		- --
Share Transactions:
Proceeds from sale of shares		444,950			574,741
Net asset value of shares issued to shareholders in payment of distributions declared		4,007			- --
Cost of shares redeemed		(6,427	)		(3,072	)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		442,530			571,669
Change in net assets		212,404			537,069
Net Assets:
Beginning of period		537,069			- --
End of period (including undistributed net investment income of $96 and $2,255, respectively)	$	749,473		$	537,069

1 Reflects operations for the period from March 7, 2008 (date of initial investment) to July 31, 2008.

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

January 31, 2009 (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 nine diversified portfolios. The financial statements included herein are only those of Federated MDT Large 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. Each portfolio pays its own expenses. 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 investment objective of the Fund is long-term capital appreciation.

The Fund's Institutional Shares, Class A Shares, Class C Shares and Class K Shares became effective with the Securities and Exchange Commission (SEC) on March 3, 2008.

2. SIGNIFICANT ACCOUNTING POLICIES

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

Investment Valuation

In calculating its net asset value (NAV), the Fund generally values investments as follows:

• Equity securities listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market.
• Shares of other mutual funds are valued based upon their reported NAVs.
• Fixed-income securities acquired with remaining maturities greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Board of Trustees (the "Trustees").
• Fixed-income securities acquired with remaining maturities of 60 days or less are valued at their cost (adjusted for the accretion of any discount or amortization of any premium).
• Derivative contracts listed on exchanges are valued at their reported settlement or closing price.
• Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Trustees.

If the Fund cannot obtain a price or price evaluation from a pricing service for an investment, the Fund may attempt to value the investment based upon the mean of bid and asked quotations or fair value the investment based on price evaluations, from one or more dealers. If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could purchase or sell an investment at the price used to calculate the Fund's NAV.

Fair Valuation and Significant Events Procedures

The Trustees have authorized the use of pricing services to provide evaluations of the current fair value of certain investments for purposes of calculating the NAV. Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a "bid" evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and asked for the investment (a "mid" evaluation). The Fund normally uses bid evaluations for U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for other types of fixed-income securities and OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Trustees.

The Trustees also have adopted procedures requiring an investment to be priced at its fair value whenever the Adviser determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment's value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:

• With respect to securities traded in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures or options contracts;
• With respect to price evaluations of fixed-income securities determined before the close of regular trading on the NYSE, actions by the Federal Reserve Open Market Committee and other significant trends in U.S. fixed-income markets;
• Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; and
• Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, a natural disaster affecting the issuer's operations or regulatory changes or market developments affecting the issuer's industry.

The Trustees have approved the use of a pricing service to determine the fair value of equity securities traded principally in foreign markets when the Adviser determines that there has been a significant trend in the U.S. equity markets or in index futures trading. For other significant events, the Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Fund will determine the fair value of the investment using another method approved by the Trustees.

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

Investment transactions are accounted for on a trade-date basis. Realized gains and losses from investment transactions are recorded on an identified cost basis. Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Foreign dividends are recorded on the ex-dividend date or when the Fund is informed of the ex-dividend date. Distributions of net investment income, if any, are declared and paid 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 Institutional Shares, Class A Shares, Class C Shares and Class K Shares may bear distribution services fees, shareholder services fees and certain transfer and dividend disbursing agent fees unique to those classes. 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. The Fund complies with the provisions of Financial Accounting Standards Board (FASB) Interpretation No. 48 (FIN 48), "Accounting for Uncertainty in Income Taxes." As of and during the six months ended January 31, 2009, the Fund did not have a liability for any uncertain tax positions. The Fund recognizes interest and penalties, if any, related to tax liabilities as income tax expense in the Statement of Operations. As of January 31, 2009, tax year 2008 remains subject to examination by the Fund's major tax jurisdictions, which include the United States of America and the Commonwealth of Massachusetts.

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.

Other

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

3. SHARES OF BENEFICIAL INTEREST

The following tables summarize share activity:

	Six Months Ended 1/31/2009					Period Ended 7/31/2008 1
Institutional Shares:	Shares			Amount		Shares			Amount
Shares sold	49,450		$	315,000		50,010		$	500,100
Shares issued to shareholders in payment of distributions declared	420			2,744		- --			- --
Shares redeemed	- --			- --		(10	)		(100	)
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS	49,870		$	317,744		50,000		$	500,000
	Six Months Ended 1/31/2009					Period Ended 7/31/2008 1
Class A Shares:	Shares			Amount		Shares			Amount
Shares sold	16,498		$	109,641		7,012		$	74,441
Shares issued to shareholders in payment of distributions declared	168			1,095		- --			- --
Shares redeemed	(966	)		(6,077	)	(298	)		(2,972	)
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS	15,700		$	104,659		6,714		$	71,469
	Six Months Ended 1/31/2009					Period Ended 7/31/2008 1
Class C Shares:	Shares			Amount		Shares			Amount
Shares sold	3,329		$	20,309		10		$	100
Shares issued to shareholders in payment of distributions declared	26			168		- --			- --
Shares redeemed	(55	)		(350	)	- --			- --
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS	3,300		$	20,127		10		$	100
	Six Months Ended 1/31/2009					Period Ended 7/31/2008 1
Class K Shares:	Shares			Amount		Shares			Amount
Shares sold	- --		$	- --		10		$	100
NET CHANGE RESULTING FROM CLASS K SHARE TRANSACTIONS	- --		$	- --		10		$	100
NET CHANGE RESULTING FROM SHARE TRANSACTIONS	68,870		$	442,530		56,734		$	571,669

1 Reflects operations for the period from March 7, 2008 (date of initial investment) to July 31, 2008.

4. FEDERAL TAX INFORMATION

At January 31, 2009, the cost of investments for federal tax purposes was $1,002,003. The net unrealized depreciation of investments for federal tax purposes was $190,341. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $7,962 and net unrealized depreciation from investments for those securities having an excess of cost over value of $198,303.

5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated MDTA LLC is the Fund's investment adviser (the "Adviser"). The advisory agreement between the Fund and the Adviser provides for an annual fee equal to 0.75% of the Fund's average daily net assets. Subject to the terms described in the Expense Limitation note, the Adviser may voluntarily choose to waive any portion of its fee and/or reimburse certain operating expenses of the Fund. 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, 2009, the Adviser voluntarily waived $2,078 of its fee and voluntarily reimbursed $224,166 of other operating expenses. In addition, an affiliate of the Adviser reimbursed $44 of transfer and dividend disbursing agent fees and expenses.

Administrative Fee

Federated Administrative Services (FAS), under the Administrative Services 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. Subject to the terms described in the Expense Limitation note, 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, 2009, the net fee paid to FAS was 38.879% of average daily net assets of the Fund. The Fund is currently being charged the minimum administrative fee; therefore the fee as a percentage of average daily net assets is greater than the amounts presented in the chart above. FAS waived $27,723 of its fee.

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 at the following percentages of average daily net assets annually, to compensate FSC:

Share Class Name	Percentage of Average Daily Net Assets of Class
Class A Shares	0.05%
Class C Shares	0.75%
Class K Shares	0.50%

Subject to the terms described in the Expense Limitation note, 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, 2009, FSC did not retain any fees paid by the Fund. For the six months ended January 31, 2009, the Fund's Class A Shares did not incur a distribution services fee; however it may begin to incur this fee upon approval of the Trustees.

Sales Charges

Front-end sales charges do not represent expenses of the Fund. They are deducted from the proceeds of sales of Fund shares prior to investment or from redemption proceeds prior to remittance, as applicable. For the six months ended January 31, 2009, FSC retained $63 in sales charges from the sale of Class A Shares.

Shareholder Services Fee

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. Subject to the terms described in the Expense Limitation note, FSSC may voluntarily reimburse the Fund for shareholder services fees. This voluntary reimbursement can be modified or terminated at any time. For the six months ended January 31, 2009, FSSC did not receive any fees paid by the Fund.

Expense Limitation

The Adviser and its affiliates (which may include FSC, FAS and FSSC) have voluntarily agreed to waive their fees and/or reimburse expenses so that the total operating expenses (as shown in the financial highlights) paid by the Fund's Institutional Shares, Class A Shares, Class C Shares and Class K Shares (after the voluntary waivers and reimbursements) will not exceed 0.97%, 1.22%, 1.97% and 1.72%, respectively, for the fiscal year ending July 31, 2009. Although these actions are voluntary, the Adviser and its affiliates have agreed to continue these waivers and/or reimbursements at least through September 30, 2009.

General

Certain 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 affiliated mutual funds. For the six months ended January 31, 2009, the Adviser reimbursed $13. Transactions with the affiliated company during the six months ended January 31, 2009 were as follows:

Affiliate	Balance of Shares Held 7/31/2008	Purchases/ Additions	Sales/ Reductions	Balance of Shares Held 1/31/2009	Value	Dividend Income
Prime Value Obligations Fund, Institutional Shares	73,796	540,847	528,684	85,959	$85,959	$418

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, 2009, were as follows:

Purchases	$	859,830
Sales	$	442,240

7. LINE OF CREDIT

The Fund participates in a $100,000,000 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, 2009, there were no outstanding loans. During the six months ended January 31, 2009, the Fund did not utilize the LOC.

8. INTERFUND LENDING

Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other funds advised by subsidiaries of Federated Investors, Inc., may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from other participating affiliated funds. As of January 31, 2009, there were no outstanding loans. During the six months ended January 31, 2009, the program was not utilized.

9. LEGAL PROCEEDINGS

Since October 2003, Federated Investors, Inc. and related entities (collectively, "Federated") and various Federated funds ("Federated Funds") have been 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 Federated Funds from the 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 entities have also been named as defendants in several additional lawsuits that 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 Federated Funds retained the law firm of Dickstein Shapiro LLP to represent the Federated Funds in these lawsuits. Federated and the Federated Funds, and their respective counsel have been defending this litigation, and none of the Federated Funds remains a defendant in any of the lawsuits (though some could potentially receive any recoveries as nominal defendants). 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 Federated 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 Federated Fund redemptions, reduced sales of Federated Fund shares, or other adverse consequences for the Federated Funds.

Evaluation and Approval of Advisory Contract -- May 2008

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

The Fund's Board reviewed the Fund's investment advisory contract at meetings held in May 2008. Because the Fund did not yet have a meaningful operating history, the Board's decision to approve the contract reflects the exercise of its business judgment primarily on whether to authorize the continued offering of this new investment vehicle, as originally proposed by, and based on information previously provided by, the Federated organization, and based on Federated's recommendation to go forward with the Fund.

The Federated funds' Board had previously appointed 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 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. The Board considered that evaluation, 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 and considered 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 what might be viewed as like services, and the cost 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 for supplying such services. The Board was aware of these factors and was guided by them in its review of the Fund's advisory contract to the extent it considered them to be 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 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); and the nature, quality and extent of the advisory and other services to be provided to the Fund by the Adviser and its affiliates. The Board also considered 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 include, but are not limited to, different types of targeted investors; being subject to different laws and regulations; different legal structures; different average account sizes; different associated costs; and different 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, using data supplied by independent fund ranking organizations, regarding the fees charged by other mutual funds, noting his view that comparisons to fund peer groups are highly important in judging the reasonableness of proposed fees. He also observed that certain funds may exhibit important differences in their objectives and management techniques when compared to other funds placed in the same peer group by ranking organizations, noting in this connection that the Fund's quantitative investment program is of such a type.

It was recognized that the factors mentioned above relating to such matters as fund performance and any 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, the Board monitors the Fund's performance quarterly as information becomes available. Moreover, 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. In addition, the Board considered the fact that, in order for a fund to be competitive in the marketplace, Federated and its affiliates frequently waive fees and/or reimburse expenses and have disclosed to fund investors and/or indicated to the Board their intention to do so in the future, where appropriate.

In connection with the Board's initial consideration of the contract, Federated had previously furnished reports, requested by the Senior Officer, that reported projected revenues and made estimates of the allocation of expenses 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 unavoidable arbitrary aspects of that exercise) and the lack of consensus on how to allocate those costs may render such allocation reports unreliable. The allocation reports were considered in the analysis by the Board but were determined to be of limited use.

The Board and the Senior Officer also reviewed a report compiled by Federated comparing profitability information for Federated to other publicly held fund management companies. In this regard, the Senior Officer noted the limited availability of such information, but nonetheless concluded that Federated's profit margins did not appear to be excessive and the Board agreed.

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 and long-term investments in areas that support all of the Federated funds, such as personnel and processes for the portfolio management, compliance, and risk management functions; and systems technology; and that the benefits of these efforts (as well as 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 (as discussed in the Senior Officer's evaluation) 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.

It was noted in the materials for the Board meeting that the Fund had only recently commenced its first fiscal year, and that the Fund's investment advisory fee has been waived in its entirety. The Board reviewed the contractual fee rate and other expenses of the Fund with the Adviser and was satisfied that the overall expense structure of the Fund remained competitive.

The Senior Officer's evaluation noted his belief that the information and observations contained in his evaluation supported a finding that the proposed management fees are reasonable, and that Federated appeared to provide appropriate administrative services to the Fund for the fees paid. Under these circumstances, no changes were recommended to, and no objection was raised to, the continuation of the Fund's advisory contract. With due regard for the fact that the Fund did not yet have a meaningful operating history, the Board concluded that the nature, quality and scope of services provided the Fund by the Adviser and its affiliates were satisfactory.

The Board based its decision to approve the 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 did 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 previously 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 continue the existing 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 from Federated's website at FederatedInvestors.com. To access this information from the "Products" section of the website, click on the "Prospectuses and Regulatory Reports" link under "Related Information," then select the appropriate link opposite the name of the Fund; or select the name of the Fund and from the Fund's page, click on the "Prospectuses and Regulatory Reports" link. Form N-PX filings are also available at 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" under "Related Information," then selecting the appropriate link opposite the name of the Fund; or select the name of the Fund and from the Fund's page, click on the "Portfolio Holdings" link.

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 31421R635

40126 (3/09)

Federated is a registered mark of Federated Investors, Inc. 2009 (c)Federated Investors, Inc.

Federated
World-Class Investment Manager

Federated MDT Mid Cap Growth Fund

Established 2005

A Portfolio of Federated MDT Series

SEMI-ANNUAL SHAREHOLDER REPORT

January 31, 2009

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)		Year Ended July 31,				Period Ended
	1/31/2009		2008		2007	1	7/31/2006	2
Net Asset Value, Beginning of Period	$12.10		$13.05		$10.67		$10.00
Income From Investment Operations:
Net investment income (loss)	(0.02	)	(0.11	) 3	(0.11	) 3	(0.09	) 3
Net realized and unrealized gain (loss) on investments	(4.60	)	(0.72	)	2.81		0.76
TOTAL FROM INVESTMENT OPERATIONS	(4.62	)	(0.83	)	2.70		0.67
Less Distributions:
Distributions from net realized gain on investments	- --		(0.12	)	(0.32	)	- --
Redemption fees	- --		- --		0.00	4	- --
Net Asset Value, End of Period	$ 7.48		$12.10		$13.05		$10.67
Total Return 5	(38.18	)%	(6.47	)%	25.67	%	6.70	%
Ratios to Average Net Assets:
Net expenses	1.49	% 6	1.50	%	1.50	%	2.02	% 6
Net investment income (loss)	(0.43	)% 6	(0.82	)%	(0.88	)%	(0.92	)% 6
Expense waiver/reimbursement 7	4.27	% 6	4.06	%	15.03	%	27.33	% 6
Supplemental Data:
Net assets, end of period (000 omitted)	$7,059		$10,242		$6,446		$104
Portfolio turnover	148	%	216	%	141	%	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 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)		Year Ended July 31,				Period Ended
	1/31/2009		2008		2007	1	7/31/2006	2
Net Asset Value, Beginning of Period	$11.84		$12.86		$10.60		$10.00
Income From Investment Operations:
Net investment income (loss)	(0.05	)	(0.19	) 3	(0.19	) 3	(0.17	) 3
Net realized and unrealized gain (loss) on investments	(4.50	)	(0.71	)	2.77		0.77
TOTAL FROM INVESTMENT OPERATIONS	(4.55	)	(0.90	)	2.58		0.60
Less Distributions:
Distributions from net realized gain on investments	- --		(0.12	)	(0.32	)	- --
Redemption fees	- --		- --		0.00	4	- --
Net Asset Value, End of Period	$ 7.29		$11.84		$12.86		$10.60
Total Return 5	(38.43	)%	(7.12	)%	24.69	%	6.00	%
Ratios to Average Net Assets:
Net expenses	2.24	% 6	2.24	%	2.25	%	2.77	% 6
Net investment income (loss)	(1.23	)% 6	(1.51	)%	(1.56	)%	(1.67	)% 6
Expense waiver/reimbursement 7	4.33	% 6	3.86	%	26.77	%	27.33	% 6
Supplemental Data:
Net assets, end of period (000 omitted)	$648		$909		$123		$6
Portfolio turnover	148	%	216	%	141	%	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 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

Shareholder Expense Example (unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase or redemption payments and (2) ongoing costs, including management fees and to the extent applicable, distribution (12b-1) fees and/or 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, 2008 to January 31, 2009.

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 8/1/2008	Ending Account Value 1/31/2009	Expenses Paid During Period 1
Actual:
Class A Shares	$1,000	$618.20	$ 6.08
Class C Shares	$1,000	$615.70	$ 9.12
Hypothetical (assuming a 5% return before expenses):
Class A Shares	$1,000	$1,017.69	$ 7.58
Class C Shares	$1,000	$1,013.91	$11.37

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	1.49%
Class C Shares	2.24%

Portfolio of Investments Summary Table (unaudited)

At January 31, 2009, the Fund's industry composition ¹ was as follows:

Industry	Percentage of Total Net Assets
Undesignated Consumer Cyclicals	12.2	%
Biotechnology	9.2	%
Defense Electronics	7.2	%
Software Packaged/Custom	7.2	%
Personnel Agency	4.4	%
Agricultural Chemicals	4.2	%
Financial Services	4.1	%
Computer Services	3.9	%
Generic Drugs	3.8	%
Office Equipment	3.7	%
Undesignated Health	3.4	%
Medical Technology	3.3	%
Home Products	3.1	%
Defense Aerospace	2.9	%
Metal Containers	2.9	%
Other Communications Equipment	2.8	%
Restaurant	2.3	%
Oil Refiner	2.1	%
Contracting	2.0	%
Medical Supplies	1.9	%
Discount Department Stores	1.8	%
Cable TV	1.7	%
Packaged Foods	1.5	%
Securities Brokerage	1.2	%
Soft Drinks	1.0	%
Telecommunication Equipment & Services	1.0	%
Other 2	4.8	%
Cash Equivalents 3	0.8	%
Other Assets and Liabilities--Net 4	(0.4	)%
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, 2009 (unaudited)

Shares					Value
			COMMON STOCKS--99.6%
			Agricultural Chemicals--4.2%
	12,097		Scotts Co.	$	389,765
			Baking--0.5%
	2,168		Flowers Foods, Inc.		46,590
			Biotechnology--9.2%
	9,839	1	Alexion Pharmaceuticals, Inc.		362,764
	4,561	1	Cephalon, Inc.		352,018
	1,919	1	Myriad Genetics, Inc.		143,100
			TOTAL		857,882
			Cable TV--1.7%
	9,872	1	Cablevision Systems Corp., Class A		158,248
			Commodity Chemicals--0.7%
	1,158		Compass Minerals International, Inc.		69,677
			Computer Services--3.9%
	11,490	1	Fiserv, Inc.		364,808
			Contracting--2.0%
	7,868		Harsco Corp.		186,629
			Cosmetics & Toiletries--0.4%
	2,053		Avon Products, Inc.		41,984
			Defense Aerospace--2.9%
	2,323	1	Alliant Techsystems, Inc.		187,722
	942	1	Teledyne Technologies, Inc.		26,254
	1,582	1	TransDigm Group, Inc.		53,915
			TOTAL		267,891
			Defense Electronics--7.2%
	2,855	1	FLIR Systems, Inc.		71,289
	4,103		L-3 Communications Holdings, Inc.		324,219
	7,393		Rockwell Collins		278,568
			TOTAL		674,076
			Discount Department Stores--1.8%
	3,867	1	Dollar Tree, Inc.		165,160
Shares					Value
			COMMON STOCKS--continued
			Financial Services--4.1%
	4,068		Equifax, Inc.	$	100,561
	1,916		FactSet Research Systems		76,257
	5,564	1	Metavante Technologies, Inc.		80,734
	9,827		Total System Services, Inc.		124,410
			TOTAL		381,962
			Generic Drugs--3.8%
	2,388	1	Endo Pharmaceuticals Holdings, Inc.		53,658
	21,747	1	Warner Chilcott Ltd., Class A		299,021
			TOTAL		352,679
			Home Health Care--0.4%
	1,429	1	Lincare Holdings, Inc.		34,367
			Home Products--3.1%
	4,583		Clorox Corp.		229,837
	1,348	1	Energizer Holdings, Inc.		64,205
			TOTAL		294,042
			Internet Services--0.3%
	865	1	NetFlix, Inc.		31,261
			Medical Supplies--1.9%
	1,173	1	Hologic, Inc.		13,830
	703	1	Immucor, Inc.		19,480
	1,040		Owens & Minor, Inc.		41,361
	3,676	1	Patterson Cos., Inc.		67,602
	1,463		Steris Corp.		38,916
			TOTAL		181,189
			Medical Technology--3.3%
	674	1	Gen-Probe, Inc.		30,343
	2,766	1	Masimo Corp.		76,812
	1,808	1	ResMed, Inc.		72,139
	3,447	1	Varian Medical Systems, Inc.		127,987
			TOTAL		307,281
			Metal Containers--2.9%
	7,073		Ball Corp.		271,179
Shares					Value
			COMMON STOCKS--continued
			Motion Pictures--0.4%
	1,562	1	Dreamworks Animation SKG, Inc.	$	34,286
			Multi-Industry Capital Goods--0.5%
	1,678		Acuity Brands, Inc.		45,088
			Office Equipment--3.7%
	15,674		Pitney Bowes, Inc.		348,903
			Oil Refiner--2.1%
	4,351		Sunoco, Inc.		201,538
			Other Communications Equipment--2.8%
	6,074		Harris Corp.		262,943
			Packaged Foods--1.5%
	3,727		Hershey Foods Corp.		138,943
			Paint & Related Materials--0.6%
	1,111		Sherwin-Williams Co.		53,050
			Personnel Agency--4.4%
	1,313	1	Aecom Technology Corp.		33,232
	13,235	1	Hewitt Associates, Inc.		375,609
			TOTAL		408,841
			Psychiatric Centers--0.4%
	1,298	1	Psychiatric Solutions, Inc.		33,748
			Recreational Goods--0.3%
	1,496	1	WMS Industries, Inc.		33,241
			Restaurant--2.3%
	8,226		Darden Restaurants, Inc.		215,686
			Securities Brokerage--1.2%
	10,087	1	TD Ameritrade Holding Corp.		113,378
			Shoes--0.3%
	558	1	Deckers Outdoor Corp.		29,150
			Soft Drinks--1.0%
	2,953	1	Hansen Natural Corp.		98,926
Shares					Value
			COMMON STOCKS--continued
			Software Packaged/Custom--7.2%
	188		CA, Inc.	$	3,382
	5,996	1	DST Systems, Inc.		190,493
	2,861	1	F5 Networks, Inc.		63,428
	17,444	1	Solera Holdings, Inc.		420,226
			TOTAL		677,529
			Telecommunication Equipment & Services--1.0%
	5,280	1	Amdocs Ltd.		89,338
			Undesignated Consumer Cyclicals--12.2%
	4,448	1	Alliance Data Systems Corp.		184,992
	4,883	1	Apollo Group, Inc., Class A		397,769
	408		DeVRY, Inc.		21,861
	3,047	1	ITT Educational Services, Inc.		373,288
	655		Strayer Education, Inc.		141,762
	1,180	1	Weight Watchers International, Inc.		26,916
			TOTAL		1,146,588
			Undesignated Health--3.4%
	12,179		IMS Health, Inc.		176,839
	4,213		MEDNAX, Inc.		141,430
			TOTAL		318,269
			TOTAL COMMON STOCKS (IDENTIFIED COST $9,339,422)		9,326,115
			MUTUAL FUND--0.8%
	76,111	2,3	Prime Value Obligations Fund, Institutional Shares, 1.75% (AT NET ASSET VALUE)		76,111
			TOTAL INVESTMENTS--100.4% (IDENTIFIED COST $9,415,533) 4		9,402,226
			OTHER ASSETS AND LIABILITIES - NET--(0.4)% 5		(36,352	)
			TOTAL NET ASSETS--100%	$	9,365,874

1 Non-income-producing security.

2 Affiliated company.

3 7-Day net yield.

4 Also represents cost for federal tax purposes.

5 Assets, other than investment in securities, less liabilities. See Statement of Assets and Liabilities.

Note: The categories of investments are shown as a percentage of total net assets at January 31, 2009.

Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below:

Level 1--quoted prices in active markets for identical securities

Level 2--other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

Level 3--significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used, as of January 31, 2009, in valuing the Fund's assets carried at fair value:

Valuation Inputs	Investments in Securities
Level 1--Quoted Prices and Investments in Mutual Funds	$9,402,226
Level 2--Other Significant Observable Inputs	- --
Level 3--Significant Unobservable Inputs	- --
TOTAL	$9,402,226

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

January 31, 2009 (unaudited)

Assets:
Total investments in securities, at value including $76,111 of investments in an affiliated issuer (Note 5) (identified cost $9,415,533)			$	9,402,226
Cash				119,367
Income receivable				4,000
Receivable for investments sold				374,521
Receivable for shares sold				14,981
TOTAL ASSETS				9,915,095
Liabilities:
Payable for investments purchased	$	499,258
Payable for shares redeemed		916
Payable for auditing fees		10,924
Payable for portfolio accounting fees		11,663
Payable for distribution services fee (Note 5)		532
Payable for shareholder services fee (Note 5)		4,317
Accrued expenses		21,611
TOTAL LIABILITIES				549,221
Net assets for 1,252,694 shares outstanding			$	9,365,874
Net Assets Consist of:
Paid-in capital			$	15,359,285
Net unrealized depreciation of investments				(13,307	)
Accumulated net realized loss on investments				(5,956,588	)
Accumulated net investment income (loss)				(23,516	)
TOTAL NET ASSETS			$	9,365,874

Statement of Assets and Liabilities - continued

Net Asset Value, Offering Price and Redemption Proceeds Per Share
Institutional Shares:
Net asset value per share ($1,658,699 ÷ 220,017 shares outstanding), no par value, unlimited shares authorized	$7.54
Offering price per share	$7.54
Redemption proceeds per share	$7.54
Class A Shares:
Net asset value per share ($7,059,389 ÷ 943,826 shares outstanding), no par value, unlimited shares authorized	$7.48
Offering price per share (100/94.50 of $7.48)	$7.92
Redemption proceeds per share	$7.48
Class C Shares:
Net asset value per share ($647,786 ÷ 88,851 shares outstanding), no par value, unlimited shares authorized	$7.29
Offering price per share	$7.29
Redemption proceeds per share (99.00/100 of $7.29)	$7.22

See Notes which are an integral part of the Financial Statements

Statement of Operations

Six Months Ended January 31, 2009 (unaudited)

Investment Income:
Dividends (including $2,377 received from an affiliated issuer) (Note 5)							$	56,780
Expenses:
Investment adviser fee (Note 5)				$	47,959
Administrative personnel and services fee (Note 5)					115,946
Custodian fees					8,250
Transfer and dividend disbursing agent fees and expenses					31,326
Directors'/Trustees' fees					813
Auditing fees					10,924
Legal fees					3,199
Portfolio accounting fees					35,692
Distribution services fee--Class C Shares (Note 5)					3,165
Shareholder services fee--Class A Shares (Note 5)					9,769
Shareholder services fee--Class C Shares (Note 5)					1,055
Share registration costs					17,048
Printing and postage					18,821
Insurance premiums					2,377
Miscellaneous					1,518
TOTAL EXPENSES					307,862
Waivers and Reimbursements (Note 5):
Waiver/reimbursement of investment adviser fee	$	(47,959	)
Waiver of administrative personnel and services fee		(22,632	)
Waiver of distribution services fee--Class C Shares		(15	)
Reimbursement of other operating expenses		(156,960	)
TOTAL WAIVERS AND REIMBURSEMENTS					(227,566	)
Net expenses								80,296
Net investment income (loss)								(23,516	)
Realized and Unrealized Loss on Investments:
Net realized loss on investments								(5,133,492	)
Net change in unrealized appreciation of investments								(123,263	)
Net realized and unrealized loss on investments								(5,256,755	)
Change in net assets resulting from operations							$	(5,280,271	)

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

		Six Months Ended (unaudited) 1/31/2009			Year Ended 7/31/2008
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	(23,516	)	$	(95,701	)
Net realized loss on investments		(5,133,492	)		(815,534	)
Net change in unrealized appreciation/depreciation of investments		(123,263	)		(274,204	)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		(5,280,271	)		(1,185,439	)
Distributions to Shareholders:
Distributions from net realized gain on investments
Institutional Shares		- --			(10,164	)
Class A Shares		- --			(99,042	)
Class C Shares		- --			(4,334	)
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS		- --			(113,540	)
Share Transactions:
Proceeds from sale of shares		2,616,856			9,679,167
Net asset value of shares issued to shareholders in payment of distributions declared		- --			104,453
Cost of shares redeemed		(1,856,777	)		(1,875,638	)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		760,079			7,907,982
Change in net assets		(4,520,192	)		6,609,003
Net Assets:
Beginning of period		13,886,066			7,277,063
End of period (including accumulated net investment income (loss) of $(23,516) and $0, respectively)	$	9,365,874		$	13,886,066

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

January 31, 2009 (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 nine 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. Each portfolio pays its own expenses. 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 investment objective of the Fund is long-term capital appreciation.

2. SIGNIFICANT ACCOUNTING POLICIES

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

Investment Valuation

In calculating its net asset value (NAV), the Fund generally values investments as follows:

• Equity securities listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market.
• Shares of other mutual funds are valued based upon their reported NAVs.
• Derivative contracts listed on exchanges are valued at their reported settlement or closing price.
• Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Board of Trustees (the "Trustees").
• Fixed-income securities acquired with remaining maturities greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Trustees.
• Fixed-income securities acquired with remaining maturities of 60 days or less are valued at their cost (adjusted for the accretion of any discount or amortization of any premium).

If the Fund cannot obtain a price or price evaluation from a pricing service for an investment, the Fund may attempt to value the investment based upon the mean of bid and asked quotations or fair value the investment based on price evaluations from one or more dealers. If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could purchase or sell an investment at the price used to calculate the Fund's NAV.

Fair Valuation and Significant Events Procedures

The Trustees have authorized the use of pricing services to provide evaluations of the current fair value of certain investments for purposes of calculating the NAV. Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a "bid" evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and asked for the investment (a "mid" evaluation). The Fund normally uses bid evaluations for U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for other types of fixed-income securities and OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Trustees.

The Trustees also have adopted procedures requiring an investment to be priced at its fair value whenever the Adviser determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment's value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:

• With respect to securities traded in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures or options contracts;
• With respect to price evaluations of fixed-income securities determined before the close of regular trading on the NYSE, actions by the Federal Reserve Open Market Committee and other significant trends in U.S. fixed-income markets;
• Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; and
• Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, a natural disaster affecting the issuer's operations or regulatory changes or market developments affecting the issuer's industry.

The Trustees have approved the use of a pricing service to determine the fair value of equity securities traded principally in foreign markets when the Adviser determines that there has been a significant trend in the U.S. equity markets or in index futures trading. For other significant events, the Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Fund will determine the fair value of the investment using another method approved by the Trustees.

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

Investment transactions are accounted for on a trade-date basis. Realized gains and losses from investment transactions are recorded on an identified cost basis. Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Foreign dividends are recorded on the ex-dividend date or when the Fund is informed of the ex-dividend date. Distributions of net investment income, if any, are declared and paid 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 may bear certain expenses unique to that class such as distribution services 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. The Fund complies with the provisions of Financial Accounting Standards Board (FASB) Interpretation No. 48 (FIN 48), "Accounting for Uncertainty in Income Taxes." As of and during the six months ended January 31, 2009, the Fund did not have a liability for any uncertain tax positions. The Fund recognizes interest and penalties, if any, related to tax liabilities as income tax expense in the Statement of Operations. As of January 31, 2009, tax years 2006 through 2008 remain subject to examination by the Fund's major tax jurisdictions, which include the United States of America and the Commonwealth of Massachusetts.

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.

Other

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

3. SHARES OF BENEFICIAL INTEREST

The following tables summarize share activity:

	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Institutional Shares:	Shares			Amount		Shares			Amount
Shares sold	19,123		$	170,750		200,619		$	2,563,412
Shares issued to shareholders in payment of distributions declared	- --			- --		266			3,799
Shares redeemed	(23,721	)		(196,311	)	(30,323	)		(384,900	)
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS	(4,598	)	$	(25,561	)	170,562		$	2,182,311
	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Class A Shares:	Shares			Amount		Shares			Amount
Shares sold	230,989		$	1,895,751		447,249		$	6,047,252
Shares issued to shareholders in payment of distributions declared	- --			- --		6,900			98,193
Shares redeemed	(133,813	)		(1,220,443	)	(101,571	)		(1,283,471	)
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS	97,176		$	675,308		352,578		$	4,861,974
	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Class C Shares:	Shares			Amount		Shares			Amount
Shares sold	69,473		$	550,355		83,860		$	1,068,503
Shares issued to shareholders in payment of distributions declared	- --			- --		176			2,461
Shares redeemed	(57,442	)		(440,023	)	(16,800	)		(207,267	)
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS	12,031		$	110,332		67,236		$	863,697
NET CHANGE RESULTING FROM SHARE TRANSACTIONS	104,609		$	760,079		590,376		$	7,907,982

4. FEDERAL TAX INFORMATION

At January 31, 2009, the cost of investments for federal tax purposes was $9,415,533. The net unrealized depreciation of investments for federal tax purposes was $13,307. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $490,162 and net unrealized depreciation from investments for those securities having an excess of cost over value of $503,469.

At July 31, 2008, the Fund had a capital loss carryforward of $80,433 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 2016.

5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated MDTA LLC is the Fund's investment adviser (the "Adviser"). The advisory agreement between the Fund and the Adviser provides for an annual fee equal to 0.90% of the Fund's average daily net assets. Prior to December 8, 2008, the Adviser agreed to waive all or a portion of the advisory fee and/or reimburse certain operating expenses (excluding interest, taxes and brokerage commissions) in order to contractually limit the Fund's aggregate annual operating expenses to no more than the following annual percentages for each Class of the Fund based on average daily net assets:

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

In addition, subject to the terms described in the Expense Limitation note, the Adviser may voluntarily choose to waive any portion of its fee and/or reimburse certain operating expenses of the Fund. 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, 2009, the Adviser waived $47,876 of its fee and reimbursed $156,960 of other operating expenses.

Administrative Fee

Federated Administrative Services (FAS), under the Administrative Services 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. Subject to the terms described in the Expense Limitation note, 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, 2009, the net fee paid to FAS was 1.751% of average daily net assets of the Fund. The Fund is currently being charged the minimum administrative fee; therefore the fee as a percentage of average daily net assets is greater than the amounts presented in the chart above. FAS waived $22,632 of its fee.

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 at the following percentages of average daily net assets annually, to compensate FSC:

Share Class Name	Percentage of Average Daily Net Assets of Class
Class A Shares	0.05%
Class C Shares	0.75%

Subject to the terms described in the Expense Limitation note, 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. For the six months ended January 31, 2009, FSC voluntarily waived $15 of its fee. 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, 2009, FSC did not retain any fees paid by the Fund. For the six months ended January 31, 2009, the Fund's Class A Shares did not incur a distribution services fee; however it may begin to incur this fee upon approval of the Trustees. On November 15, 2007, the Trustees approved an amendment to the Plan to reduce the distribution services fee for the Fund's Class A Shares from 0.25% to 0.05%. The amendment to the Plan became effective for the Fund on March 31, 2008.

Sales Charges

Front-end sales charges and contingent deferred sales charges (CDSC) do not represent expenses of the Fund. They are deducted from the proceeds of sales of Fund shares prior to investment or from redemption proceeds prior to remittance, as applicable. For the six months ended January 31, 2009, FSC retained $106 in sales charges from the sale of Class A Shares. FSC also retained $109 of CDSC relating to redemptions of Class C Shares.

Shareholder Services Fee

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. Subject to the terms described in the Expense Limitation note, FSSC may voluntarily reimburse the Fund for shareholder services fees. This voluntary reimbursement can be modified or terminated at any time. For the six months ended January 31, 2009, FSSC received $119 of fees paid by the Fund.

Expense Limitation

The Adviser and its affiliates (which may include FSC, FAS and FSSC) have voluntarily agreed to waive their fees and/or reimburse expenses so that the total operating expenses (as shown in the financial highlights) paid by the Fund's Institutional Shares, Class A Shares and Class C Shares (after the voluntary waivers and reimbursements) will not exceed 1.24%, 1.49% and 2.24%, respectively, for the fiscal year ending July 31, 2009. Although these actions are voluntary, the Adviser and its affiliates have agreed to continue these waivers and/or reimbursements at least through September 30, 2009.

General

Certain 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 affiliated mutual funds. For the six months ended January 31, 2009, the Adviser reimbursed $83. Transactions with the affiliated company during the six months ended January 31, 2009 were as follows:

Affiliate	Balance of Shares Held 7/31/2008	Purchases/ Additions	Sales/ Reductions	Balance of Shares Held 1/31/2009	Value	��	Dividend Income
Prime Value Obligations Fund, Institutional Shares	909,461	2,260,298	3,093,648	76,111	$76,111		$2,377

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, 2009, were as follows:

Purchases	$	16,815,105
Sales	$	16,013,744

7. LINE OF CREDIT

The Fund participates in a $100,000,000 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, 2009, there were no outstanding loans. During the six months ended January 31, 2009, the Fund did not utilize the LOC.

8. INTERFUND LENDING

Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (SEC), the Fund, along with other funds advised by subsidiaries of Federated Investors, Inc., may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from other participating affiliated funds. As of January 31, 2009, there were no outstanding loans. During the six months ended January 31, 2009, the program was not utilized.

9. LEGAL PROCEEDINGS

Since October 2003, Federated Investors, Inc. and related entities (collectively, "Federated") and various Federated funds ("Federated Funds") have been 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 Federated Funds from the 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 entities have also been named as defendants in several additional lawsuits that 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 Federated Funds retained the law firm of Dickstein Shapiro LLP to represent the Federated Funds in these lawsuits. Federated and the Federated Funds, and their respective counsel have been defending this litigation, and none of the Federated Funds remains a defendant in any of the lawsuits (though some could potentially receive any recoveries as nominal defendants). 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 Federated 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 Federated Fund redemptions, reduced sales of Federated Fund shares or other adverse consequences for the Federated Funds.

Evaluation and Approval of Advisory
Contract - May 2008

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

The Fund's Board reviewed the Fund's investment advisory contract at meetings held in May 2008. The Board's decision regarding the contract reflects the exercise of its business judgment on whether to continue the existing arrangements.

In this connection, the Federated funds' Board had previously appointed 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 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. The Board considered that evaluation, along with other information, in deciding to approve the advisory contract.

During its review of the contract, the Board considered compensation and benefits received by the Adviser. This included the fees received for services provided to the Fund by other entities in the Federated organization and research services received by the Adviser from brokers that execute Federated fund trades, as well as advisory fees. The Board is also familiar with and considered 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 a fund grows larger; any indirect benefits that may accrue to the Adviser and its affiliates as a result of the Adviser's relationship with a 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 what might be viewed as like services, and the cost 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 for supplying such services. The Board was aware of these factors and was guided by them in its review of the Fund's advisory contract to the extent it considered them to be appropriate and relevant, as discussed further below.

The Board considered and weighed these circumstances in light of its substantial accumulated experience in governing the Fund and working with Federated on matters relating to the Federated funds, and was assisted in its deliberations by independent legal counsel. Throughout the year, the Board has requested and received substantial and detailed information about the Fund and the Federated organization that was in addition to the extensive materials that comprise and accompany the Senior Officer's evaluation. Federated provided much of this information at each regular meeting of the Board, and furnished additional reports in connection with the particular meeting at which the Board's formal review of the advisory contract occurred. Between regularly scheduled meetings, the Board also received information on particular matters as the need arose. Thus, 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 short- and long-term performance (in absolute terms, both on a gross basis and net of expenses, as well as in relationship to its particular investment program and certain competitor or "peer group" funds and/or other benchmarks, as appropriate), and comments on the reasons for performance; the Fund's investment objectives; the Fund's expenses (including the advisory fee 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 use and allocation of brokerage commissions derived from trading the Fund's portfolio securities (if any); and the nature, quality and extent of the advisory and other services provided to the Fund by the Adviser and its affiliates. The Board also considered the preferences and expectations of Fund shareholders 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 performance and 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 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 competes. The Fund's ability to deliver competitive performance when compared to its peer group was a useful indicator of how the Adviser is executing 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 continuation of the advisory contract. In this regard, the Senior Officer has 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 include, but are not limited to, different types of targeted investors; being subject to different laws and regulations; different legal structures; different average account sizes; different associated costs; and different 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, using data supplied by independent fund ranking organizations, regarding the performance of, and fees charged by, other mutual funds, noting his view that comparisons to fund peer groups are highly important in judging the reasonableness of proposed fees. He also observed that certain funds may exhibit important differences in their objectives and management techniques when compared to other funds placed in the same peer group by ranking organizations, noting in this connection that the Fund's quantitative investment program is of such a type.

For the one-year period ending December 31, 2007, the Fund's performance was above the median of the relevant peer group. In addition, the Board was informed by the Adviser that, for the same period, the Fund outperformed its benchmark index for the one-year period.

The Board also received financial information about Federated, including reports on the compensation and benefits Federated derived from its relationships with the Federated funds. These reports covered 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 discussed any indirect benefit Federated may derive from its receipt of research services from brokers who execute Federated fund trades. In addition, the Board considered the fact that, in order for a fund to be competitive in the marketplace, Federated and its affiliates frequently waived fees and/or reimbursed expenses and have disclosed to fund investors and/or indicated to the Board their intention to do so in the future, where appropriate.

Federated furnished reports, requested by the Senior Officer, that reported revenues on a fund-by-fund basis and made estimates of the allocation of expenses on a fund-by-fund basis, using allocation methodologies specified by the Senior Officer. The Senior Officer noted that, although they may apply consistent allocation processes, the inherent difficulties in allocating costs (and the unavoidable arbitrary aspects of that exercise) and the lack of consensus on how to allocate those costs may render such allocation reports unreliable. The allocation reports were considered in the analysis by the Board but were determined to be of limited use.

The Board and the Senior Officer also reviewed a report compiled by Federated comparing profitability information for Federated to other publicly held fund management companies. In this regard, the Senior Officer noted the limited availability of such information, but nonetheless concluded that Federated's profit margins did not appear to be excessive and the Board agreed.

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 and long-term investments in areas that support all of the Federated funds, such as personnel and processes for the portfolio management, compliance, and risk management functions; and systems technology; and that the benefits of these efforts (as well as 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 (as discussed in the Senior Officer's evaluation) 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.

It was noted in the materials for the Board meeting that for the Fund's most recently completed fiscal year, the Fund's investment advisory fee was waived in its entirety. The Board reviewed the contractual fee rate and other expenses of the Fund with the Adviser and was satisfied that the overall expense structure of the Fund remained competitive.

The Senior Officer's evaluation noted his belief that the information and observations contained in his evaluation supported a finding that the proposed management fees are reasonable, and that Federated appeared to provide appropriate administrative services to the Fund for the fees paid. Under these circumstances, no changes were recommended to, and no objection was raised to, the continuation of the Fund's advisory contract. The Board concluded that the nature, quality and scope of services provided the Fund by the Adviser and its affiliates were satisfactory.

In its decision to continue an existing investment advisory contract, the Board was mindful of the potential disruptions of the Fund's operations and various risks, uncertainties and other effects that could occur as a result of a decision to terminate or not renew an advisory contract. In particular, the Board recognized that most shareholders have invested in the Fund on the strength of the Adviser's industry standing and reputation and with the expectation that the Adviser will have a continuing role in providing advisory services to the Fund. Thus, the Board's approval of the advisory contract reflected the fact that it is the shareholders who have effectively selected the Adviser by virtue of having invested in the Fund.

The Board 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. Not all of the factors and considerations identified above were necessarily relevant to the Fund, nor did the Board consider any one of them to be determinative. With respect to the factors that were relevant, the Board's decision to approve the contract reflects its determination that Federated's performance and actions provided a satisfactory basis to support the decision to continue the existing 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 from Federated's website at FederatedInvestors.com. To access this information from the "Products" section of the website, click on the "Prospectuses and Regulatory Reports" link under "Related Information," then select the appropriate link opposite the name of the Fund; or select the name of the Fund and from the Fund's page, click on the "Prospectuses and Regulatory Reports" link. Form N-PX filings are also available at 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" under "Related Information," then selecting the appropriate link opposite the name of the Fund; or select the name of the Fund and from the Fund's page, click on the "Portfolio Holdings" link.

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 (3/09)

Federated is a registered mark of Federated Investors, Inc. 2009 (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, 2009

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
			Year Ended July 31,
	1/31/2009		2008		2007	1	7/31/2006	2
Net Asset Value, Beginning of Period	$12.18		$13.10		$10.69		$10.00
Income From Investment Operations:
Net investment income (loss)	(0.01	)	(0.07	) 3	(0.05	) 3	(0.07	) 3
Net realized and unrealized gain (loss) on investments	(4.63	)	(0.73	)	2.77		0.76
TOTAL FROM INVESTMENT OPERATIONS	(4.64	)	(0.80	)	2.72		0.69
Less Distributions:
Distributions from net realized gain on investments	- --		(0.12	)	(0.32	)	- --
Redemption fees	- --		- --		0.01		- --
Net Asset Value, End of Period	$ 7.54		$12.18		$13.10		$10.69
Total Return 4	(38.10	)%	(6.22	)%	25.90	%	6.90	%
Ratios to Average Net Assets:
Net expenses	1.24	% 5	1.25	%	1.25	%	1.77	% 5
Net investment income (loss)	(0.16	)% 5	(0.57	)%	(0.45	)%	(0.67	)% 5
Expense waiver/reimbursement 6	4.24	% 5	3.95	%	42.16	%	27.33	% 5
Supplemental Data:
Net assets, end of period (000 omitted)	$1,659		$2,735		$708		$225
Portfolio turnover	148	%	216	%	141	%	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 (unaudited)

As a shareholder of the Fund, you incur ongoing costs, including management fees and to the extent applicable, distribution (12b-1) fees and/or 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, 2008 to January 31, 2009.

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 8/1/2008	Ending Account Value 1/31/2009	Expenses Paid During Period 1
Actual	$1,000	$ 619.00	$5.06
Hypothetical (assuming a 5% return before expenses)	$1,000	$1,018.95	$6.31

1 Expenses are equal to the Fund's annualized net expense ratio of 1.24%, 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 (unaudited)

At January 31, 2009, the Fund's industry composition ¹ was as follows:

Industry	Percentage of Total Net Assets
Undesignated Consumer Cyclicals	12.2	%
Biotechnology	9.2	%
Defense Electronics	7.2	%
Software Packaged/Custom	7.2	%
Personnel Agency	4.4	%
Agricultural Chemicals	4.2	%
Financial Services	4.1	%
Computer Services	3.9	%
Generic Drugs	3.8	%
Office Equipment	3.7	%
Undesignated Health	3.4	%
Medical Technology	3.3	%
Home Products	3.1	%
Defense Aerospace	2.9	%
Metal Containers	2.9	%
Other Communications Equipment	2.8	%
Restaurant	2.3	%
Oil Refiner	2.1	%
Contracting	2.0	%
Medical Supplies	1.9	%
Discount Department Stores	1.8	%
Cable TV	1.7	%
Packaged Foods	1.5	%
Securities Brokerage	1.2	%
Soft Drinks	1.0	%
Telecommunication Equipment & Services	1.0	%
Other 2	4.8	%
Cash Equivalents 3	0.8	%
Other Assets and Liabilities--Net 4	(0.4	)
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, 2009 (unaudited)

Shares					Value
			COMMON STOCKS--99.6%
			Agricultural Chemicals--4.2%
	12,097		Scotts Co.	$	389,765
			Baking--0.5%
	2,168		Flowers Foods, Inc.		46,590
			Biotechnology--9.2%
	9,839	1	Alexion Pharmaceuticals, Inc.		362,764
	4,561	1	Cephalon, Inc.		352,018
	1,919	1	Myriad Genetics, Inc.		143,100
			TOTAL		857,882
			Cable TV--1.7%
	9,872	1	Cablevision Systems Corp., Class A		158,248
			Commodity Chemicals--0.7%
	1,158		Compass Minerals International, Inc.		69,677
			Computer Services--3.9%
	11,490	1	Fiserv, Inc.		364,808
			Contracting--2.0%
	7,868		Harsco Corp.		186,629
			Cosmetics & Toiletries--0.4%
	2,053		Avon Products, Inc.		41,984
			Defense Aerospace--2.9%
	2,323	1	Alliant Techsystems, Inc.		187,722
	942	1	Teledyne Technologies, Inc.		26,254
	1,582	1	TransDigm Group, Inc.		53,915
			TOTAL		267,891
			Defense Electronics--7.2%
	2,855	1	FLIR Systems, Inc.		71,289
	4,103		L-3 Communications Holdings, Inc.		324,219
	7,393		Rockwell Collins		278,568
			TOTAL		674,076
			Discount Department Stores--1.8%
	3,867	1	Dollar Tree, Inc.		165,160
Shares					Value
			COMMON STOCKS--continued
			Financial Services--4.1%
	4,068		Equifax, Inc.	$	100,561
	1,916		FactSet Research Systems		76,257
	5,564	1	Metavante Technologies, Inc.		80,734
	9,827		Total System Services, Inc.		124,410
			TOTAL		381,962
			Generic Drugs--3.8%
	2,388	1	Endo Pharmaceuticals Holdings, Inc.		53,658
	21,747	1	Warner Chilcott Ltd., Class A		299,021
			TOTAL		352,679
			Home Health Care--0.4%
	1,429	1	Lincare Holdings, Inc.		34,367
			Home Products--3.1%
	4,583		Clorox Corp.		229,837
	1,348	1	Energizer Holdings, Inc.		64,205
			TOTAL		294,042
			Internet Services--0.3%
	865	1	NetFlix, Inc.		31,261
			Medical Supplies--1.9%
	1,173	1	Hologic, Inc.		13,830
	703	1	Immucor, Inc.		19,480
	1,040		Owens & Minor, Inc.		41,361
	3,676	1	Patterson Cos., Inc.		67,602
	1,463		Steris Corp.		38,916
			TOTAL		181,189
			Medical Technology--3.3%
	674	1	Gen-Probe, Inc.		30,343
	2,766	1	Masimo Corp.		76,812
	1,808	1	ResMed, Inc.		72,139
	3,447	1	Varian Medical Systems, Inc.		127,987
			TOTAL		307,281
			Metal Containers--2.9%
	7,073		Ball Corp.		271,179
Shares					Value
			COMMON STOCKS--continued
			Motion Pictures--0.4%
	1,562	1	Dreamworks Animation SKG, Inc.	$	34,286
			Multi-Industry Capital Goods--0.5%
	1,678		Acuity Brands, Inc.		45,088
			Office Equipment--3.7%
	15,674		Pitney Bowes, Inc.		348,903
			Oil Refiner--2.1%
	4,351		Sunoco, Inc.		201,538
			Other Communications Equipment--2.8%
	6,074		Harris Corp.		262,943
			Packaged Foods--1.5%
	3,727		Hershey Foods Corp.		138,943
			Paint & Related Materials--0.6%
	1,111		Sherwin-Williams Co.		53,050
			Personnel Agency--4.4%
	1,313	1	Aecom Technology Corp.		33,232
	13,235	1	Hewitt Associates, Inc.		375,609
			TOTAL		408,841
			Psychiatric Centers--0.4%
	1,298	1	Psychiatric Solutions, Inc.		33,748
			Recreational Goods--0.3%
	1,496	1	WMS Industries, Inc.		33,241
			Restaurant--2.3%
	8,226		Darden Restaurants, Inc.		215,686
			Securities Brokerage--1.2%
	10,087	1	TD Ameritrade Holding Corp.		113,378
			Shoes--0.3%
	558	1	Deckers Outdoor Corp.		29,150
			Soft Drinks--1.0%
	2,953	1	Hansen Natural Corp.		98,926
Shares					Value
			COMMON STOCKS--continued
			Software Packaged/Custom--7.2%
	188		CA, Inc.	$	3,382
	5,996	1	DST Systems, Inc.		190,493
	2,861	1	F5 Networks, Inc.		63,428
	17,444	1	Solera Holdings, Inc.		420,226
			TOTAL		677,529
			Telecommunication Equipment & Services--1.0%
	5,280	1	Amdocs Ltd.		89,338
			Undesignated Consumer Cyclicals--12.2%
	4,448	1	Alliance Data Systems Corp.		184,992
	4,883	1	Apollo Group, Inc., Class A		397,769
	408		DeVRY, Inc.		21,861
	3,047	1	ITT Educational Services, Inc.		373,288
	655		Strayer Education, Inc.		141,762
	1,180	1	Weight Watchers International, Inc.		26,916
			TOTAL		1,146,588
			Undesignated Health--3.4%
	12,179		IMS Health, Inc.		176,839
	4,213		MEDNAX, Inc.		141,430
			TOTAL		318,269
			TOTAL COMMON STOCKS (IDENTIFIED COST $9,339,422)		9,326,115
			MUTUAL FUND--0.8%
	76,111	2,3	Prime Value Obligations Fund, Institutional Shares, 1.75% (AT NET ASSET VALUE)		76,111
			TOTAL INVESTMENTS--100.4% (IDENTIFIED COST $9,415,533) 4		9,402,226
			OTHER ASSETS AND LIABILITIES - NET--(0.4)% 5		(36,352	)
			TOTAL NET ASSETS--100%	$	9,365,874

1 Non-income producing security.

2 Affiliated company.

3 7-Day net yield.

4 Also represents cost for federal tax purposes.

5 Assets, other than investment in securities, less liabilities. See Statement of Assets and Liabilities.

Note: The categories of investments are shown as a percentage of total net assets at January 31, 2009.

Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below:

Level 1--quoted prices in active markets for identical securities

Level 2--other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

Level 3--significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used, as of January 31, 2009, in valuing the Fund's assets carried at fair value:

Valuation Inputs	Investments in Securities
Level 1--Quoted Prices and Investments in Mutual Funds	$9,402,226
Level 2--Other Significant Observable Inputs	- --
Level 3--Significant Unobservable Inputs	- --
TOTAL	$9,402,226

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

January 31, 2009 (unaudited)

Assets:
Total investments in securities, at value including $76,111 of investments in an affiliated issuer (Note 5) (identified cost $9,415,533)			$	9,402,226
Cash				119,367
Income receivable				4,000
Receivable for investments sold				374,521
Receivable for shares sold				14,981
TOTAL ASSETS				9,915,095
Liabilities:
Payable for investments purchased	$	499,258
Payable for shares redeemed		916
Payable for auditing fees		10,924
Payable for portfolio accounting fees		11,663
Payable for distribution services fee (Note 5)		532
Payable for shareholder services fee (Note 5)		4,317
Accrued expenses		21,611
TOTAL LIABILITIES				549,221
Net assets for 1,252,694 shares outstanding			$	9,365,874
Net Assets Consist of:
Paid-in capital			$	15,359,285
Net unrealized depreciation of investments				(13,307	)
Accumulated net realized loss on investments				(5,956,588	)
Accumulated net investment income (loss)				(23,516	)
TOTAL NET ASSETS			$	9,365,874

Statement of Assets and Liabilities - continued

Net Asset Value, Offering Price and Redemption Proceeds Per Share
Institutional Shares:
Net asset value per share ($1,658,699 ÷ 220,017 shares outstanding), no par value, unlimited shares authorized	$7.54
Offering price per share	$7.54
Redemption proceeds per share	$7.54
Class A Shares:
Net asset value per share ($7,059,389 ÷ 943,826 shares outstanding), no par value, unlimited shares authorized	$7.48
Offering price per share (100/94.50 of $7.48)	$7.92
Redemption proceeds per share	$7.48
Class C Shares:
Net asset value per share ($647,786 ÷ 88,851 shares outstanding), no par value, unlimited shares authorized	$7.29
Offering price per share	$7.29
Redemption proceeds per share (99.00/100 of $7.29)	$7.22

See Notes which are an integral part of the Financial Statements

Statement of Operations

Six Months Ended January 31, 2009 (unaudited)

Investment Income:
Dividends (including $2,377 received from an affiliated issuer) (Note 5)							$	56,780
Expenses:
Investment adviser fee (Note 5)				$	47,959
Administrative personnel and services fee (Note 5)					115,946
Custodian fees					8,250
Transfer and dividend disbursing agent fees and expenses					31,326
Directors'/Trustees' fees					813
Auditing fees					10,924
Legal fees					3,199
Portfolio accounting fees					35,692
Distribution services fee--Class C Shares (Note 5)					3,165
Shareholder services fee--Class A Shares (Note 5)					9,769
Shareholder services fee--Class C Shares (Note 5)					1,055
Share registration costs					17,048
Printing and postage					18,821
Insurance premiums					2,377
Miscellaneous					1,518
TOTAL EXPENSES					307,862
Waivers and Reimbursements (Note 5):
Waiver/reimbursement of investment adviser fee	$	(47,959	)
Waiver of administrative personnel and services fee		(22,632	)
Waiver of distribution services fee--Class C Shares		(15	)
Reimbursement of other operating expenses		(156,960	)
TOTAL WAIVERS AND REIMBURSEMENTS					(227,566	)
Net expenses								80,296
Net investment income (loss)								(23,516	)
Realized and Unrealized Loss on Investments:
Net realized loss on investments								(5,133,492	)
Net change in unrealized appreciation of investments								(123,263	)
Net realized and unrealized loss on investments								(5,256,755	)
Change in net assets resulting from operations							$	(5,280,271	)

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

		Six Months Ended (unaudited) 1/31/2009			Year Ended 7/31/2008
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	(23,516	)	$	(95,701	)
Net realized loss on investments		(5,133,492	)		(815,534	)
Net change in unrealized appreciation/depreciation of investments		(123,263	)		(274,204	)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		(5,280,271	)		(1,185,439	)
Distributions to Shareholders:
Distributions from net realized gain on investments
Institutional Shares		- --			(10,164	)
Class A Shares		- --			(99,042	)
Class C Shares		- --			(4,334	)
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS		- --			(113,540	)
Share Transactions:
Proceeds from sale of shares		2,616,856			9,679,167
Net asset value of shares issued to shareholders in payment of distributions declared		- --			104,453
Cost of shares redeemed		(1,856,777	)		(1,875,638	)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		760,079			7,907,982
Change in net assets		(4,520,192	)		6,609,003
Net Assets:
Beginning of period		13,886,066			7,277,063
End of period (including accumulated net investment income (loss) of $(23,516) and $0, respectively)	$	9,365,874		$	13,886,066

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

January 31, 2009 (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 nine 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. Each portfolio pays its own expenses. 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 investment objective of the Fund is long-term capital appreciation.

2. SIGNIFICANT ACCOUNTING POLICIES

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

Investment Valuation

In calculating its net asset value (NAV), the Fund generally values investments as follows:

• Equity securities listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market.
• Shares of other mutual funds are valued based upon their reported NAVs.
• Derivative contracts listed on exchanges are valued at their reported settlement or closing price.
• Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Board of Trustees (the "Trustees").
• Fixed-income securities acquired with remaining maturities greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Trustees.
• Fixed-income securities acquired with remaining maturities of 60 days or less are valued at their cost (adjusted for the accretion of any discount or amortization of any premium).

If the Fund cannot obtain a price or price evaluation from a pricing service for an investment, the Fund may attempt to value the investment based upon the mean of bid and asked quotations or fair value the investment based on price evaluations from one or more dealers. If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could purchase or sell an investment at the price used to calculate the Fund's NAV.

Fair Valuation and Significant Events Procedures

The Trustees have authorized the use of pricing services to provide evaluations of the current fair value of certain investments for purposes of calculating the NAV. Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a "bid" evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and asked for the investment (a "mid" evaluation). The Fund normally uses bid evaluations for U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for other types of fixed-income securities and OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Trustees.

The Trustees also have adopted procedures requiring an investment to be priced at its fair value whenever the Adviser determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment's value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:

• With respect to securities traded in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures or options contracts;
• With respect to price evaluations of fixed-income securities determined before the close of regular trading on the NYSE, actions by the Federal Reserve Open Market Committee and other significant trends in U.S. fixed-income markets;
• Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; and
• Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, a natural disaster affecting the issuer's operations or regulatory changes or market developments affecting the issuer's industry.

The Trustees have approved the use of a pricing service to determine the fair value of equity securities traded principally in foreign markets when the Adviser determines that there has been a significant trend in the U.S. equity markets or in index futures trading. For other significant events, the Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Fund will determine the fair value of the investment using another method approved by the Trustees.

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

Investment transactions are accounted for on a trade-date basis. Realized gains and losses from investment transactions are recorded on an identified cost basis. Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Foreign dividends are recorded on the ex-dividend date or when the Fund is informed of the ex-dividend date. Distributions of net investment income, if any, are declared and paid 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 may bear certain expenses unique to that class such as distribution services 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. The Fund complies with the provisions of Financial Accounting Standards Board (FASB) Interpretation No. 48 (FIN 48), "Accounting for Uncertainty in Income Taxes." As of and during the six months ended January 31, 2009, the Fund did not have a liability for any uncertain tax positions. The Fund recognizes interest and penalties, if any, related to tax liabilities as income tax expense in the Statement of Operations. As of January 31, 2009, tax years 2006 through 2008 remain subject to examination by the Fund's major tax jurisdictions, which include the United States of America and the Commonwealth of Massachusetts.

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.

Other

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

3. SHARES OF BENEFICIAL INTEREST

The following tables summarize share activity:

	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Institutional Shares:	Shares			Amount		Shares			Amount
Shares sold	19,123		$	170,750		200,619		$	2,563,412
Shares issued to shareholders in payment of distributions declared	- --			- --		266			3,799
Shares redeemed	(23,721	)		(196,311	)	(30,323	)		(384,900	)
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS	(4,598	)	$	(25,561	)	170,562		$	2,182,311
	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Class A Shares:	Shares			Amount		Shares			Amount
Shares sold	230,989		$	1,895,751		447,249		$	6,047,252
Shares issued to shareholders in payment of distributions declared	- --			- --		6,900			98,193
Shares redeemed	(133,813	)		(1,220,443	)	(101,571	)		(1,283,471	)
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS	97,176		$	675,308		352,578		$	4,861,974
	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Class C Shares:	Shares			Amount		Shares			Amount
Shares sold	69,473		$	550,355		83,860		$	1,068,503
Shares issued to shareholders in payment of distributions declared	- --			- --		176			2,461
Shares redeemed	(57,442	)		(440,023	)	(16,800	)		(207,267	)
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS	12,031		$	110,332		67,236		$	863,697
NET CHANGE RESULTING FROM SHARE TRANSACTIONS	104,609		$	760,079		590,376		$	7,907,982

4. FEDERAL TAX INFORMATION

At January 31, 2009, the cost of investments for federal tax purposes was $9,415,533. The net unrealized depreciation of investments for federal tax purposes was $13,307. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $490,162 and net unrealized depreciation from investments for those securities having an excess of cost over value of $503,469.

At July 31, 2008, the Fund had a capital loss carryforward of $80,433 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 2016.

5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated MDTA LLC is the Fund's investment adviser (the "Adviser"). The advisory agreement between the Fund and the Adviser provides for an annual fee equal to 0.90% of the Fund's average daily net assets. Prior to December 8, 2008, the Adviser agreed to waive all or a portion of the advisory fee and/or reimburse certain operating expenses (excluding interest, taxes and brokerage commissions) in order to contractually limit the Fund's aggregate annual operating expenses to no more than the following annual percentages for each Class of the Fund based on average daily net assets:

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

In addition, subject to the terms described in the Expense Limitation note, the Adviser may voluntarily choose to waive any portion of its fee and/or reimburse certain operating expenses of the Fund. 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, 2009, the Adviser waived $47,876 of its fee and reimbursed $156,960 of other operating expenses.

Administrative Fee

Federated Administrative Services (FAS), under the Administrative Services 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. Subject to the terms described in the Expense Limitation note, 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, 2009, the net fee paid to FAS was 1.751% of average daily net assets of the Fund. The Fund is currently being charged the minimum administrative fee; therefore the fee as a percentage of average daily net assets is greater than the amounts presented in the chart above. FAS waived $22,632 of its fee.

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 at the following percentages of average daily net assets annually, to compensate FSC:

Share Class Name	Percentage of Average Daily Net Assets of Class
Class A Shares	0.05%
Class C Shares	0.75%

Subject to the terms described in the Expense Limitation note, 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. For the six months ended January 31, 2009, FSC voluntarily waived $15 of its fee. 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, 2009, FSC did not retain any fees paid by the Fund. For the six months ended January 31, 2009, the Fund's Class A Shares did not incur a distribution services fee; however it may begin to incur this fee upon approval of the Trustees. On November 15, 2007, the Trustees approved an amendment to the Plan to reduce the distribution services fee for the Fund's Class A Shares from 0.25% to 0.05%. The amendment to the Plan became effective for the Fund on March 31, 2008.

Sales Charges

Front-end sales charges and contingent deferred sales charges (CDSC) do not represent expenses of the Fund. They are deducted from the proceeds of sales of Fund shares prior to investment or from redemption proceeds prior to remittance, as applicable. For the six months ended January 31, 2009, FSC retained $106 in sales charges from the sale of Class A Shares. FSC also retained $109 of CDSC relating to redemptions of Class C Shares.

Shareholder Services Fee

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. Subject to the terms described in the Expense Limitation note, FSSC may voluntarily reimburse the Fund for shareholder services fees. This voluntary reimbursement can be modified or terminated at any time. For the six months ended January 31, 2009, FSSC received $119 of fees paid by the Fund.

Expense Limitation

The Adviser and its affiliates (which may include FSC, FAS and FSSC) have voluntarily agreed to waive their fees and/or reimburse expenses so that the total operating expenses (as shown in the financial highlights) paid by the Fund's Institutional Shares, Class A Shares and Class C Shares (after the voluntary waivers and reimbursements) will not exceed 1.24%, 1.49% and 2.24%, respectively, for the fiscal year ending July 31, 2009. Although these actions are voluntary, the Adviser and its affiliates have agreed to continue these waivers and/or reimbursements at least through September 30, 2009.

General

Certain 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 affiliated mutual funds. For the six months ended January 31, 2009, the Adviser reimbursed $83. Transactions with the affiliated company during the six months ended January 31, 2009 were as follows:

Affiliate	Balance of Shares Held 7/31/2008	Purchases/ Additions	Sales/ Reductions	Balance of Shares Held 1/31/2009	Value	Dividend Income
Prime Value Obligations Fund, Institutional Shares	909,461	2,260,298	3,093,648	76,111	$76,111	$2,377

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, 2009, were as follows:

Purchases	$	16,815,105
Sales	$	16,013,744

7. LINE OF CREDIT

The Fund participates in a $100,000,000 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, 2009, there were no outstanding loans. During the six months ended January 31, 2009, the Fund did not utilize the LOC.

8. INTERFUND LENDING

Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (SEC), the Fund, along with other funds advised by subsidiaries of Federated Investors, Inc., may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from other participating affiliated funds. As of January 31, 2009, there were no outstanding loans. During the six months ended January 31, 2009, the program was not utilized.

9. LEGAL PROCEEDINGS

Since October 2003, Federated Investors, Inc. and related entities (collectively, "Federated") and various Federated funds ("Federated Funds") have been 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 Federated Funds from the 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 entities have also been named as defendants in several additional lawsuits that 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 Federated Funds retained the law firm of Dickstein Shapiro LLP to represent the Federated Funds in these lawsuits. Federated and the Federated Funds, and their respective counsel have been defending this litigation, and none of the Federated Funds remains a defendant in any of the lawsuits (though some could potentially receive any recoveries as nominal defendants). 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 Federated 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 Federated Fund redemptions, reduced sales of Federated Fund shares or other adverse consequences for the Federated Funds.

Evaluation and Approval of Advisory
Contract - May 2008

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

The Fund's Board reviewed the Fund's investment advisory contract at meetings held in May 2008. The Board's decision regarding the contract reflects the exercise of its business judgment on whether to continue the existing arrangements.

In this connection, the Federated funds' Board had previously appointed 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 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. The Board considered that evaluation, along with other information, in deciding to approve the advisory contract.

During its review of the contract, the Board considered compensation and benefits received by the Adviser. This included the fees received for services provided to the Fund by other entities in the Federated organization and research services received by the Adviser from brokers that execute Federated fund trades, as well as advisory fees. The Board is also familiar with and considered 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 a fund grows larger; any indirect benefits that may accrue to the Adviser and its affiliates as a result of the Adviser's relationship with a 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 what might be viewed as like services, and the cost 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 for supplying such services. The Board was aware of these factors and was guided by them in its review of the Fund's advisory contract to the extent it considered them to be appropriate and relevant, as discussed further below.

The Board considered and weighed these circumstances in light of its substantial accumulated experience in governing the Fund and working with Federated on matters relating to the Federated funds, and was assisted in its deliberations by independent legal counsel. Throughout the year, the Board has requested and received substantial and detailed information about the Fund and the Federated organization that was in addition to the extensive materials that comprise and accompany the Senior Officer's evaluation. Federated provided much of this information at each regular meeting of the Board, and furnished additional reports in connection with the particular meeting at which the Board's formal review of the advisory contract occurred. Between regularly scheduled meetings, the Board also received information on particular matters as the need arose. Thus, 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 short- and long-term performance (in absolute terms, both on a gross basis and net of expenses, as well as in relationship to its particular investment program and certain competitor or "peer group" funds and/or other benchmarks, as appropriate), and comments on the reasons for performance; the Fund's investment objectives; the Fund's expenses (including the advisory fee 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 use and allocation of brokerage commissions derived from trading the Fund's portfolio securities (if any); and the nature, quality and extent of the advisory and other services provided to the Fund by the Adviser and its affiliates. The Board also considered the preferences and expectations of Fund shareholders 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 performance and 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 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 competes. The Fund's ability to deliver competitive performance when compared to its peer group was a useful indicator of how the Adviser is executing 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 continuation of the advisory contract. In this regard, the Senior Officer has 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 include, but are not limited to, different types of targeted investors; being subject to different laws and regulations; different legal structures; different average account sizes; different associated costs; and different 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, using data supplied by independent fund ranking organizations, regarding the performance of, and fees charged by, other mutual funds, noting his view that comparisons to fund peer groups are highly important in judging the reasonableness of proposed fees. He also observed that certain funds may exhibit important differences in their objectives and management techniques when compared to other funds placed in the same peer group by ranking organizations, noting in this connection that the Fund's quantitative investment program is of such a type.

For the one-year period ending December 31, 2007, the Fund's performance was above the median of the relevant peer group. In addition, the Board was informed by the Adviser that, for the same period, the Fund outperformed its benchmark index for the one-year period.

The Board also received financial information about Federated, including reports on the compensation and benefits Federated derived from its relationships with the Federated funds. These reports covered 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 discussed any indirect benefit Federated may derive from its receipt of research services from brokers who execute Federated fund trades. In addition, the Board considered the fact that, in order for a fund to be competitive in the marketplace, Federated and its affiliates frequently waived fees and/or reimbursed expenses and have disclosed to fund investors and/or indicated to the Board their intention to do so in the future, where appropriate.

Federated furnished reports, requested by the Senior Officer, that reported revenues on a fund-by-fund basis and made estimates of the allocation of expenses on a fund-by-fund basis, using allocation methodologies specified by the Senior Officer. The Senior Officer noted that, although they may apply consistent allocation processes, the inherent difficulties in allocating costs (and the unavoidable arbitrary aspects of that exercise) and the lack of consensus on how to allocate those costs may render such allocation reports unreliable. The allocation reports were considered in the analysis by the Board but were determined to be of limited use.

The Board and the Senior Officer also reviewed a report compiled by Federated comparing profitability information for Federated to other publicly held fund management companies. In this regard, the Senior Officer noted the limited availability of such information, but nonetheless concluded that Federated's profit margins did not appear to be excessive and the Board agreed.

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 and long-term investments in areas that support all of the Federated funds, such as personnel and processes for the portfolio management, compliance, and risk management functions; and systems technology; and that the benefits of these efforts (as well as 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 (as discussed in the Senior Officer's evaluation) 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.

It was noted in the materials for the Board meeting that for the Fund's most recently completed fiscal year, the Fund's investment advisory fee was waived in its entirety. The Board reviewed the contractual fee rate and other expenses of the Fund with the Adviser and was satisfied that the overall expense structure of the Fund remained competitive.

The Senior Officer's evaluation noted his belief that the information and observations contained in his evaluation supported a finding that the proposed management fees are reasonable, and that Federated appeared to provide appropriate administrative services to the Fund for the fees paid. Under these circumstances, no changes were recommended to, and no objection was raised to, the continuation of the Fund's advisory contract. The Board concluded that the nature, quality and scope of services provided the Fund by the Adviser and its affiliates were satisfactory.

In its decision to continue an existing investment advisory contract, the Board was mindful of the potential disruptions of the Fund's operations and various risks, uncertainties and other effects that could occur as a result of a decision to terminate or not renew an advisory contract. In particular, the Board recognized that most shareholders have invested in the Fund on the strength of the Adviser's industry standing and reputation and with the expectation that the Adviser will have a continuing role in providing advisory services to the Fund. Thus, the Board's approval of the advisory contract reflected the fact that it is the shareholders who have effectively selected the Adviser by virtue of having invested in the Fund.

The Board 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. Not all of the factors and considerations identified above were necessarily relevant to the Fund, nor did the Board consider any one of them to be determinative. With respect to the factors that were relevant, the Board's decision to approve the contract reflects its determination that Federated's performance and actions provided a satisfactory basis to support the decision to continue the existing 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 from Federated's website at FederatedInvestors.com. To access this information from the "Products" section of the website, click on the "Prospectuses and Regulatory Reports" link under "Related Information," then select the appropriate link opposite the name of the Fund; or select the name of the Fund and from the Fund's page, click on the "Prospectuses and Regulatory Reports" link. Form N-PX filings are also available at 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" under "Related Information," then selecting the appropriate link opposite the name of the Fund; or select the name of the Fund and from the Fund's page, click on the "Portfolio Holdings" link.

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 (3/09)

Federated is a registered mark of Federated Investors, Inc. 2009 (c)Federated Investors, Inc.

Federated
World-Class Investment Manager

Federated MDT Small Cap
Core Fund

Established 2005

A Portfolio of Federated MDT Series

SEMI-ANNUAL SHAREHOLDER REPORT

January 31, 2009

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)		Year Ended July 31,				Period Ended
	1/31/2009		2008		2007	1	7/31/2006	2
Net Asset Value, Beginning of Period	$10.21		$13.22		$11.11		$10.00
Income From Investment Operations:
Net investment income (loss)	(0.03	) 3	(0.08	) 3	(0.10	) 3	(0.13	) 3
Net realized and unrealized gain (loss) on investments	(4.42	)	(2.22	)	2.21		1.24
TOTAL FROM INVESTMENT OPERATIONS	(4.45	)	(2.30	)	2.11		1.11
Less Distributions:
Distributions from net realized gain on investments	- --		(0.71	)	- --		- --
Net Asset Value, End of Period	$5.76		$10.21		$13.22		$11.11
Total Return 4	(43.58	)%	(18.09	)%	18.99	%	11.10	%
Ratios to Average Net Assets:
Net expenses	1.74	% 5	1.75	%	1.75	%	2.01	% 5
Net investment income (loss)	(0.66	)% 5	(0.68	)%	(0.77	)%	(1.16	)% 5
Expense waiver/reimbursement 6	4.41	% 5	3.85	%	7.96	%	9.41	% 5
Supplemental Data:
Net assets, end of period (000 omitted)	$1,668		$2,623		$2,414		$324
Portfolio turnover	106	%	243	%	237	%	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)		Year Ended July 31,				Period Ended
	1/31/2009		2008		2007	1	7/31/2006	2
Net Asset Value, Beginning of Period	$9.99		$13.04		$11.05		$10.00
Income From Investment Operations:
Net investment income (loss)	(0.05	) 3	(0.16	) 3	(0.19	) 3	(0.23	) 3
Net realized and unrealized gain (loss) on investments	(4.32	)	(2.18	)	2.18		1.28
TOTAL FROM INVESTMENT OPERATIONS	(4.37	)	(2.34	)	1.99		1.05
Less Distributions:
Distributions from net realized gain on investments	- --		(0.71	)	- --		- --
Net Asset Value, End of Period	$5.62		$ 9.99		$13.04		$11.05
Total Return 4	(43.74	)%	(18.66	)%	18.01	%	10.50	%
Ratios to Average Net Assets:
Net expenses	2.49	% 5	2.46	%	2.50	%	2.76	% 5
Net investment income (loss)	(1.40	)% 5	(1.40	)%	(1.52	)%	(1.91	)% 5
Expense waiver/reimbursement 6	4.37	% 5	3.90	%	8.63	%	9.41	% 5
Supplemental Data:
Net assets, end of period (000 omitted)	$1,632		$2,759		$3,299		$1,505
Portfolio turnover	106	%	243	%	237	%	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 (unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase or redemption payments; and (2) ongoing costs, including management fees and to the extent applicable, distribution (12b-1) fees and/or 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, 2008 to January 31, 2009.

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 8/1/2008	Ending Account Value 1/31/2009	Expenses Paid During Period 1
Actual:
Class A Shares	$1,000	$ 564.20	$ 6.86
Class C Shares	$1,000	$ 562.60	$ 9.81
Hypothetical (assuming a 5% return before expenses):
Class A Shares	$1,000	$1,016.43	$ 8.84
Class C Shares	$1,000	$1,012.65	$12.63

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	1.74%
Class C Shares	2.49%

Portfolio of Investments Summary Table (unaudited)

At January 31, 2009, the Fund's industry composition ¹ was as follows:

Industry	Percentage of Total Net Assets
Undesignated Consumer Cyclicals	8.3	%
Home Health Care	4.5	%
Electric Utility	3.5	%
Defense Aerospace	3.2	%
Paper Products	3.1	%
Securities Brokerage	3.1	%
Restaurant	3.0	%
Medical Technology	2.9	%
Regional Bank	2.9	%
Computer Services	2.6	%
Oil Refiner	2.6	%
Clothing Stores	2.4	%
Computer Peripherals	2.0	%
Multi-Industry Basic	1.9	%
Airline - Regional	1.8	%
Financial Services	1.8	%
Insurance Brokerage	1.8	%
Office Supplies	1.6	%
Specialty Retailing	1.6	%
Undesignated Health	1.6	%
Apparel	1.5	%
Home Products	1.5	%
Multi-Industry Capital Goods	1.5	%
Defense Electronics	1.4	%
Electrical Equipment	1.4	%
Metal Fabrication	1.4	%
Office Furniture	1.4	%
Software Packaged/Custom	1.4	%
Telecommunication Equipment & Services	1.4	%
Auto Original Equipment Manufacturers	1.3	%
Multi-Line Insurance	1.3	%
Oil Well Supply	1.3	%
Property Liability Insurance	1.3	%
Commodity Chemicals	1.2	%
Other Communications Equipment	1.2	%

Industry	Percentage of Total Net Assets
Shoes	1.2	%
Toys & Games	1.2	%
Specialty Chemicals	1.1	%
Electrical Test/Measuring Equipment	1.0	%
Hotels and Motels	1.0	%
Personal Loans	1.0	%
Other 2	15.9	%
Cash Equivalents 3	2.2	%
Other Assets and Liabilities--Net 4	(1.3	)%
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, 2009 (unaudited)

Shares					Value
			COMMON STOCKS--99.1%
			Airline - National--0.1%
	734	1	Continental Airlines, Inc., Class B	$	9,887
			Airline - Regional--1.8%
	2,473	1	Alaska Air Group, Inc.		65,188
	1,269	1	Allegiant Travel Co.		45,379
	1,074	1	Republic Airways Holdings, Inc.		8,796
	795		SkyWest, Inc.		12,442
			TOTAL		131,805
			Aluminum--0.4%
	1,060		Kaiser Aluminum Corp.		26,330
			Apparel--1.5%
	8,932	1	Collective Brands, Inc.		95,304
	1,005	1	True Religion Apparel, Inc.		11,467
			TOTAL		106,771
			Auto Original Equipment Manufacturers--1.3%
	3,423	1	Fuel Systems Solutions, Inc.		89,477
			Biotechnology--0.7%
	1,538	1	Emergent Biosolutions, Inc.		33,728
	1,354	1	Maxygen, Inc.		11,590
	195	1	Sequenom, Inc.		4,321
			TOTAL		49,639
			Clothing Stores--2.4%
	4,729	1	Children's Place Retail Stores, Inc.		88,952
	663	1	Gymboree Corp.		16,244
	2,422	1	Jos A. Bank Clothiers, Inc.		66,508
			TOTAL		171,704
			Commodity Chemicals--1.2%
	993		Compass Minerals International, Inc.		59,749
	1,940		Innophos Holdings, Inc.		29,352
			TOTAL		89,101
Shares					Value
			COMMON STOCKS--continued
			Computer Networking--0.9%
	4,549	1	Avocent Corp.	$	65,278
			Computer Peripherals--2.0%
	6,211	1	Synaptics, Inc.		146,393
			Computer Services--2.6%
	6,308		Fair Isaac & Co., Inc.		80,112
	991	1	Stanley, Inc.		29,988
	3,732	1	Synnex Corp.		57,286
	861		Syntel, Inc.		18,555
			TOTAL		185,941
			Computer Stores--0.1%
	2,042	1	Insight Enterprises, Inc.		10,578
			Construction Machinery--0.1%
	638	1	NCI Building System, Inc.		7,394
			Contracting--0.8%
	2,880	1	Insituform Technologies, Inc., Class A		54,029
			Defense Aerospace--3.2%
	3,111	1	AAR Corp.		56,434
	731	1	Aerovironment, Inc.		27,091
	822	1	Hawk Corp.		13,884
	580		Kaman Corp., Class A		11,072
	2,587		Triumph Group, Inc.		117,139
			TOTAL		225,620
			Defense Electronics--1.4%
	4,191	1	FLIR Systems, Inc.		104,649
			Discount Department Stores--0.1%
	781	1	99 Cents Only Stores		6,545
			Diversified Leisure--0.5%
	369	1	Bally Technologies, Inc.		7,450
	2,028	1	Life Time Fitness, Inc.		30,035
			TOTAL		37,485
			Electrical Test/Measuring Equipment--1.0%
	970		MTS Systems Corp.		25,404
	2,531	1	Multi-Fineline Electronix, Inc.		46,899
			TOTAL		72,303
Shares					Value
			COMMON STOCKS--continued
			Electric Utility--3.5%
	2,471		Northwestern Corp.	$	59,823
	5,307	1	Pike Electric Corp.		59,704
	1,018		Portland General Electric Co.		19,800
	4,022		UniSource Energy Corp.		113,581
			TOTAL		252,908
			Electrical Equipment--1.4%
	6,814		Baldor Electric Co.		95,464
	174	1	Powell Industries, Inc.		4,155
			TOTAL		99,619
			Electronic Instruments--0.4%
	754	1	Axsys Technologies, Inc.		32,196
			Financial Services--1.8%
	1,402	1	America's Car-Mart, Inc.		12,744
	1,079	1	CBIZ, Inc.		8,772
	8,073		Deluxe Corp.		93,082
	551		Heartland Payment Systems, Inc.		4,998
	841	1	Nelnet, Inc., Class A		11,623
			TOTAL		131,219
			Food Wholesaling--0.6%
	1,032		Nash Finch Co.		44,407
			Furniture--0.4%
	779		Ethan Allen Interiors, Inc.		8,873
	2,745		Tempur-Pedic International, Inc.		19,215
			TOTAL		28,088
			Grocery Chain--0.4%
	1,506	1	The Pantry, Inc.		25,045
			Home Health Care--4.5%
	4,083	1	Amedisys, Inc.		168,342
	1,594	1	Amerigroup Corp.		44,584
	4,011	1	LHC Group, Inc.		106,733
			TOTAL		319,659
			Home Products--1.5%
	10,352	1	Jarden Corp.		107,971
Shares					Value
			COMMON STOCKS--continued
			Hotels and Motels--1.0%
	5,309		Ameristar Casinos, Inc.	$	47,622
	4,830	1	Boyd Gaming Corp.		23,232
			TOTAL		70,854
			Industrial Machinery--0.3%
	1,736	1	Columbus McKinnon Corp.		22,082
			Insurance Brokerage--1.8%
	2,925		AmTrust Financial Services, Inc.		24,014
	340		Employers Holdings, Inc.		4,604
	2,607		Life Partners Holdings, Inc.		99,066
			TOTAL		127,684
			Life Insurance--0.7%
	3,298		Delphi Financial Group, Inc., Class A		50,031
	1,337		Phoenix Cos., Inc.		2,340
			TOTAL		52,371
			Long-Term Care Centers--0.1%
	685	1	Sun Healthcare Group, Inc.		7,761
			Lumber Products--0.2%
	2,595		Officemax, Inc.		14,298
			Machine Tools--0.7%
	2,251	1	AZZ, Inc.		50,422
			Machined Parts Original Equipment Manufacturers--0.1%
	540		Titan International, Inc.		4,190
			Magazine Publishing--0.7%
	3,246		Meredith Corp.		51,839
			Maritime--0.3%
	1,794		TAL International Group, Inc.		18,801
			Medical Supplies--0.7%
	517	1	MWI Veterinary Supply, Inc.		10,821
	884	1	Merit Medical Systems, Inc.		13,605
	726	1	PetMed Express, Inc.		10,483
	1,488	1	Quidel Corp.		18,302
			TOTAL		53,211
Shares					Value
			COMMON STOCKS--continued
			Medical Technology--2.9%
	2,387	1	Cantel Medical Corp.	$	35,781
	2,723	1	Cyberonics, Inc.		41,907
	1,594	1	Greatbatch Technologies, Inc.		37,140
	3,299	1	Thoratec Laboratories Corp.		95,572
			TOTAL		210,400
			Metal Distribution--0.1%
	1,011		Castle (A.M.) & Co.		8,553
			Metal Fabrication--1.4%
	1,156	1	Haynes International, Inc.		21,120
	1,115	1	Ladish Co., Inc.		12,678
	4,718	1	RTI International Metals		62,797
			TOTAL		96,595
			Miscellaneous Communications--0.7%
	966	1	Bankrate, Inc.		32,226
	612		Harte-Hanks		3,856
	505		Shenandoah Telecommunications Co.		12,312
			TOTAL		48,394
			Miscellaneous Food Products--0.6%
	1,778	1	Fresh Del Monte Produce, Inc.		42,850
	204		The Anderson's, Inc.		3,344
			TOTAL		46,194
			Miscellaneous Machinery--0.0%
	80		Graham Corp.		797
			Multi-Industry Basic--1.9%
	9,552		Olin Corp.		134,206
			Multi-Industry Capital Goods--1.5%
	3,723	1	Ceradyne, Inc.		84,959
	1,472	1	DXP Enterprises, Inc.		19,990
			TOTAL		104,949
Shares					Value
			COMMON STOCKS--continued
			Multi-Line Insurance--1.3%
	467	1	Amerisafe, Inc.	$	8,747
	2,065		FBL Financial Group, Inc., Class A		21,290
	1,409		Harleysville Group, Inc.		40,072
	689		Safety Insurance Group, Inc.		24,129
			TOTAL		94,238
			Newspaper Publishing--0.1%
	5,056		Belo (A.H.) Corp., Series A		7,230
	3,150		McClatchy Co., Class A		2,079
			TOTAL		9,309
			Office Furniture--1.4%
	2,847		Knoll, Inc.		19,417
	7,086		Miller Herman, Inc.		77,875
			TOTAL		97,292
			Office Supplies--1.6%
	1,314	1	Acco Brands Corp.		2,523
	4,001	1	United Stationers, Inc.		112,068
			TOTAL		114,591
			Oil Refiner--2.6%
	13		Alon USA Energy, Inc.		153
	5,512		World Fuel Services Corp.		186,140
			TOTAL		186,293
			Oil Service, Explore & Drill--0.7%
	3,386	1	Complete Production Services, Inc.		21,704
	6,439	1	Parker Drilling Co.		13,651
	1,227	1	Superior Well Services, Inc.		11,276
			TOTAL		46,631
			Oil Well Supply--1.3%
	468		Lufkin Industries, Inc.		16,357
	4,158	1	Oil States International, Inc.		76,133
			TOTAL		92,490
			Other Communications Equipment--1.2%
	6,147	1	Syniverse Holdings, Inc.		83,353
Shares					Value
			COMMON STOCKS--continued
			Packaged Foods--0.7%
	3,771	1	Chiquita Brands International	$	52,719
			Paint & Related Materials--0.3%
	4,851		Ferro Corp.		19,210
			Paper Products--3.1%
	3,406	1	Buckeye Technologies, Inc.		9,946
	2,836		Glatfelter (P.H.) Co.		24,702
	459	1	Kadant, Inc.		4,608
	5,809		Rock-Tenn Co.		181,067
			TOTAL		220,323
			Personal Loans--1.0%
	3,705	1	Ezcorp, Inc., Class A		50,277
	1,017	1	World Acceptance Corp.		19,476
			TOTAL		69,753
			Printing--0.1%
	3,597	1	Valassis Communications, Inc.		4,604
			Property Liability Insurance--1.3%
	258		American Physicians Capital, Inc.		10,970
	1,311	1	CNA Surety Corp.		21,697
	4,456		Horace Mann Educators Corp.		41,664
	1,627		OneBeacon Insurance Group Ltd.		13,748
	281		Selective Insurance Group, Inc.		4,313
			TOTAL		92,392
			Psychiatric Centers--0.4%
	1,024	1	Psychiatric Solutions, Inc.		26,624
			Regional Bank--2.9%
	880		City Holding Co.		22,625
	1,712		First BanCorp		12,172
	3,791		First Midwest Bancorp, Inc.		37,910
	1,918		Oriental Financial Group		9,686
	7,730		Pacific Capital Bancorp		82,015
	2,407		Republic Bancorp, Inc.		43,326
			TOTAL		207,734
Shares					Value
			COMMON STOCKS--continued
			Restaurant--3.0%
	263		Bob Evans Farms, Inc.	$	4,618
	4,138	1	CEC Entertainment, Inc.		96,581
	1,500		Cracker Barrel Old Country Store, Inc.		26,355
	2,653	1	Domino's Pizza, Inc.		17,749
	943	1	Green Mountain Coffee, Inc.		36,079
	2,065	1	P. F. Chang's China Bistro, Inc.		36,612
			TOTAL		217,994
			Savings & Loan--0.9%
	5,305	1	Ocwen Financial Corp.		47,214
	323		WSFS Financial Corp.		8,333
	1,850		Webster Financial Corp. Waterbury		7,733
			TOTAL		63,280
			Securities Brokerage--3.1%
	4,590	1	Interactive Brokers Group, Inc., Class A		70,089
	6,787	1	Knight Capital Group, Inc., Class A		122,370
	4,437	1	Labranche & Co., Inc.		30,438
			TOTAL		222,897
			Services to Medical Professionals--0.7%
	662	1	Genoptix, Inc.		22,442
	1,017	1	PharMerica Corp.		16,719
	950	1	Res-Care, Inc.		12,872
			TOTAL		52,033
			Shoes--1.2%
	1,607	1	Deckers Outdoor Corp.		83,950
			Software Packaged/Custom--1.4%
	3,302	1	ACI Worldwide, Inc.		56,101
	946	1	CSG Systems International, Inc.		13,717
	453	1	S1 Corp.		3,022
	3,766	1	Wind River Systems, Inc.		30,015
			TOTAL		102,855
Shares					Value
			COMMON STOCKS--continued
			Specialty Chemicals--1.1%
	598		Chemed Corp.	$	23,998
	3,562		Koppers Holdings, Inc.		57,704
			TOTAL		81,702
			Specialty Machinery--0.4%
	1,368	1	Gardner Denver, Inc.		29,781
			Specialty Retailing--1.6%
	1,169		Asbury Automotive Group, Inc.		4,185
	5,650	1	Hot Topic, Inc.		48,251
	5,486		Regis Corp. Minnesota		61,717
	511		Sonic Automotive, Inc.		1,037
			TOTAL		115,190
			Telecommunication Equipment & Services--1.4%
	509	1	ADC Telecommunications, Inc.		2,581
	1,506	1	Comtech Telecommunications Corp.		58,433
	1,462	1	GeoEye, Inc.		25,219
	1,217		Plantronics, Inc.		12,353
			TOTAL		98,586
			Telephone Utility--0.1%
	203		Atlantic Telephone Network, Inc.		4,364
			Toys & Games--1.2%
	4,129	1	JAKKS Pacific, Inc.		75,726
	1,183	1	RC2 Corp.		6,873
			TOTAL		82,599
			Undesignated Consumer Cyclicals--8.3%
	1,812	1	American Public Education, Inc.		70,958
	8,296	1	Corinthian Colleges, Inc.		154,969
	9,360	1	Geo Group, Inc.		138,528
	788	1	Kendle International, Inc.		15,051
	10,960	1	Rent-A-Center, Inc.		162,756
	3,371		Speedway Motorsports, Inc.		48,677
			TOTAL		590,939
Shares					Value
			COMMON STOCKS--continued
			Undesignated Consumer Staples--0.8%
	1,901		Jackson Hewitt Tax Service, Inc.	$	25,169
	1,398	1	USANA, Inc.		32,448
			TOTAL		57,617
			Undesignated Health--1.6%
	6,523	1	Healthspring, Inc.		113,631
			TOTAL COMMON STOCKS (IDENTIFIED COST $9,292,861)		7,090,616
			MUTUAL FUND--2.2%
	158,417	2,3	Prime Value Obligations Fund, Institutional Shares, 1.75% (AT NET ASSET VALUE)		158,417
			TOTAL INVESTMENTS--101.3% (IDENTIFIED COST $9,451,278) 4		7,249,033
			OTHER ASSETS AND LIABILITIES - NET--(1.3)% 5		(94,335	)
			TOTAL NET ASSETS--100%	$	7,154,698

1 Non-income producing security.

2 Affiliated company.

3 7-Day net yield.

4 Also represents cost for federal tax purposes.

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

Note: The categories of investments are shown as a percentage of total net assets at January 31, 2009.

Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below:

Level 1--quoted prices in active markets for identical securities

Level 2--other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

Level 3--significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used, as of January 31, 2009, in valuing the Fund's assets carried at fair value:

Valuation Inputs	Investments in Securities
Level 1--Quoted Prices and Investments in Mutual Funds	$7,249,033
Level 2--Other Significant Observable Inputs	- --
Level 3--Significant Unobservable Inputs	- --
TOTAL	$7,249,033

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

January 31, 2009 (unaudited)

Assets:
Total investments in securities, at value including $158,417 of investments in an affiliated issuer (Note 5) (identified cost $9,451,278)			$	7,249,033
Income receivable				978
Receivable for investments sold				219,421
Receivable for shares sold				473
TOTAL ASSETS				7,469,905
Liabilities:
Payable for investments purchased	$	223,779
Payable for shares redeemed		44,085
Payable for auditing fees		10,924
Payable for portfolio accounting fees		12,070
Payable for share registration costs		11,184
Payable for distribution services fee (Note 5)		1,701
Payable for shareholder services fee (Note 5)		732
Accrued expenses		10,732
TOTAL LIABILITIES				315,207
Net assets for 1,244,104 shares outstanding			$	7,154,698
Net Assets Consist of:
Paid-in capital			$	15,849,580
Net unrealized depreciation of investments				(2,202,245	)
Accumulated net realized loss on investments				(6,457,731	)
Accumulated net investment income (loss)				(34,906	)
TOTAL NET ASSETS			$	7,154,698
Net Asset Value, Offering Price and Redemption Proceeds Per Share
Institutional Shares:
Net asset value per share ($3,855,202 ÷ 664,225 shares outstanding), no par value, unlimited shares authorized				$5.80
Offering price per share				$5.80
Redemption proceeds per share				$5.80
Class A Shares:
Net asset value per share ($1,667,528 ÷ 289,491 shares outstanding), no par value, unlimited shares authorized				$5.76
Offering price per share (100/94.50 of $5.76)				$6.10
Redemption proceeds per share				$5.76
Class C Shares:
Net asset value per share ($1,631,968 ÷ 290,388 shares outstanding), no par value, unlimited shares authorized				$5.62
Offering price per share				$5.62
Redemption proceeds per share (99.00/100 of $5.62)				$5.56

See Notes which are an integral part of the Financial Statements

Statement of Operations

Six Months Ended January 31, 2009 (unaudited)

Investment Income:
Dividends (including $2,242 received from an affiliated issuer and net of foreign taxes withheld of $43)							$	61,750
Expenses:
Investment adviser fee (Note 5)				$	64,337
Administrative personnel and services fee (Note 5)					115,946
Custodian fees					12,425
Transfer and dividend disbursing agent fees and expenses					32,433
Directors'/Trustees' fees					811
Auditing fees					10,924
Legal fees					3,230
Portfolio accounting fees					38,211
Distribution services fee--Class C Shares (Note 5)					7,947
Shareholder services fee--Class A Shares (Note 5)					2,571
Shareholder services fee--Class C Shares (Note 5)					2,649
Share registration costs					18,165
Printing and postage					19,799
Insurance premiums					2,381
Miscellaneous					1,531
TOTAL EXPENSES					333,360
Waivers and Reimbursements:
Waiver/reimbursement of investment adviser fee	$	(64,337	)
Waiver of administrative personnel and services fee		(22,629	)
Reimbursement of other operating expenses		(149,738	)
TOTAL WAIVERS AND REIMBURSEMENTS					(236,704	)
Net expenses								96,656
Net investment income (loss)								(34,906	)
Realized and Unrealized Loss on Investments:
Net realized loss on investments								(5,429,730	)
Net change in unrealized depreciation of investments								(1,098,873	)
Net realized and unrealized loss on investments								(6,528,603	)
Change in net assets resulting from operations							$	(6,563,509	)

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

		Six Months Ended (unaudited) 1/31/2009			Year Ended 7/31/2008
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	(34,906	)	$	(92,417	)
Net realized loss on investments		(5,429,730	)		(968,490	)
Net change in unrealized appreciation/depreciation of investments		(1,098,873	)		(1,160,449	)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		(6,563,509	)		(2,221,356	)
Distributions to Shareholders:
Distributions from net realized gain on investments
Institutional Shares		- --			(217,102	)
Class A Shares		- --			(164,846	)
Class C Shares		- --			(186,389	)
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS		- --			(568,337	)
Share Transactions:
Proceeds from sale of shares		2,817,904			11,231,271
Net asset value of shares issued to shareholders in payment of distributions declared		- --			289,237
Cost of shares redeemed		(4,545,923	)		(2,591,978	)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		(1,728,019	)		8,928,530
Change in net assets		(8,291,528	)		6,138,837
Net Assets:
Beginning of period		15,446,226			9,307,389
End of period (including accumulated net investment income (loss) of $(34,906) and $0, respectively)	$	7,154,698		$	15,446,226

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

January 31, 2009 (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 nine 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. Each portfolio pays its own expenses. 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 investment objective of the Fund is long-term capital appreciation.

2. SIGNIFICANT ACCOUNTING POLICIES

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

Investment Valuation

In calculating its net asset value (NAV), the Fund generally values investments as follows:

• Equity securities listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market.
• Shares of other mutual funds are valued based upon their reported NAVs.
• Fixed-income securities acquired with remaining maturities greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Board of Trustees (the "Trustees").
• Fixed-income securities acquired with remaining maturities of 60 days or less are valued at their cost (adjusted for the accretion of any discount or amortization of any premium).
• Derivative contracts listed on exchanges are valued at their reported settlement or closing price.
• Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Trustees.

If the Fund cannot obtain a price or price evaluation from a pricing service for an investment, the Fund may attempt to value the investment based upon the mean of bid and asked quotations or fair value the investment based on price evaluations, from one or more dealers. If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could purchase or sell an investment at the price used to calculate the Fund's NAV.

Fair Valuation and Significant Events Procedures

The Trustees have authorized the use of pricing services to provide evaluations of the current fair value of certain investments for purposes of calculating the NAV. Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a "bid" evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and asked for the investment (a "mid" evaluation). The Fund normally uses bid evaluations for U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for other types of fixed-income securities and OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Trustees.

The Trustees also have adopted procedures requiring an investment to be priced at its fair value whenever the Adviser determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment's value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:

• With respect to securities traded in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures or options contracts;
• With respect to price evaluations of fixed-income securities determined before the close of regular trading on the NYSE, actions by the Federal Reserve Open Market Committee and other significant trends in U.S. fixed-income markets;
• Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; and
• Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, a natural disaster affecting the issuer's operations or regulatory changes or market developments affecting the issuer's industry.

The Trustees have approved the use of a pricing service to determine the fair value of equity securities traded principally in foreign markets when the Adviser determines that there has been a significant trend in the U.S. equity markets or in index futures trading. For other significant events, the Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Fund will determine the fair value of the investment using another method approved by the Trustees.

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

Investment transactions are accounted for on a trade-date basis. Realized gains and losses from investment transactions are recorded on an identified cost basis. Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Foreign dividends are recorded on the ex-dividend date or when the Fund is informed of the ex-dividend date. Distributions of net investment income, if any, are declared and paid 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 may bear certain expenses unique to that class such as distribution services 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. The Fund complies with the provisions of Financial Accounting Standards Board (FASB) Interpretation No. 48 (FIN 48), "Accounting for Uncertainty in Income Taxes." As of and during the six months ended January 31, 2009, the Fund did not have a liability for any uncertain tax positions. The Fund recognizes interest and penalties, if any, related to tax liabilities as income tax expense in the Statement of Operations. As of January 31, 2009, tax years 2006 through 2008 remain subject to examination by the Fund's major tax jurisdictions, which include the United States of America and the Commonwealth of Massachusetts.

The Fund may be subject to taxes imposed by governments of countries in which it invests. Such taxes are generally based on either income or gains earned or repatriated. The Fund accrues and applies such taxes to net investment income, net realized gains and net unrealized gains as income and/or gains are earned.

When-Issued and Delayed Delivery Transactions

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

Other

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

3. SHARES OF BENEFICIAL INTEREST

The following tables summarize share activity:

	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Institutional Shares:	Shares			Amount		Shares			Amount
Shares sold	258,491		$	1,684,599		775,627		$	8,473,003
Shares issued to shareholders in payment of distributions declared	- --			--		5,282			62,326
Shares redeemed	(573,088	)		(3,688,228	)	(72,893	)		(839,798	)
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS	(314,597	)	$	(2,003,629	)	708,016		$	7,695,531
	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Class A Shares:	Shares			Amount		Shares			Amount
Shares sold	82,410		$	547,668		127,938		$	1,534,598
Shares issued to shareholders in payment of distributions declared	--			--		12,340			144,868
Shares redeemed	(49,837	)		(357,036	)	(65,972	)		(737,190	)
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS	32,573		$	190,632		74,306		$	942,276
	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Class C Shares:	Shares			Amount		Shares			Amount
Shares sold	90,597		$	585,637		103,368		$	1,223,670
Shares issued to shareholders in payment of distributions declared	--			--		7,110			82,043
Shares redeemed	(76,236	)		(500,659	)	(87,328	)		(1,014,990	)
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS	14,361		$	84,978		23,150		$	290,723
NET CHANGE RESULTING FROM SHARE TRANSACTIONS	(267,663	)	$	(1,728,019	)	805,472		$	8,928,530

4. FEDERAL TAX INFORMATION

At January 31, 2009, the cost of investments for federal tax purposes was $9,451,278. The net unrealized depreciation of investments for federal tax purposes was $2,202,245. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $212,603 and net unrealized depreciation from investments for those securities having an excess of cost over value of $2,414,848.

5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated MDTA LLC is the Fund's investment adviser (the "Adviser"). The advisory agreement between the Fund and the Adviser provides for an annual fee equal to 1.15% of the Fund's average daily net assets. Prior to December 8, 2008, the Adviser agreed to waive all or a portion of the advisory fee and/or reimburse certain operating expenses (excluding interest, taxes and brokerage commissions) in order to contractually limit the Fund's aggregate annual operating expenses to no more than the following annual percentages for each Class of the Fund based on average daily net assets:

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

In addition, subject to the terms described in the Expense Limitation note, the Adviser may also voluntarily choose to waive any portion of its fee and/or reimburse certain operating expenses of the Fund. 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, 2009, the Adviser waived $64,261 of its fee and reimbursed $149,738 of other operating expenses.

Administrative Fee

Federated Administrative Services (FAS), under the Administrative Services 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. Subject to the terms described in the Expense Limitation note, 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, 2009, the net fee paid to FAS was 1.668% of average daily net assets of the Fund. The Fund is currently being charged the minimum administrative fee; therefore the fee as a percentage of average daily net assets is greater than the amounts presented in the chart above. FAS waived $22,629 of its fee.

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 at the following percentages of average daily net assets annually, to compensate FSC:

Share Class Name	Percentage of Average Daily Net Assets of Class
Class A Shares	0.05%
Class C Shares	0.75%

Subject to the terms described in the Expense Limitation note, 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, 2009, FSC retained $2,161 of fees paid by the Fund. For the six months ended January 31, 2009, the Fund's Class A Shares did not incur a distribution services fee; however it may begin to incur this fee upon approval of the Trustees. On November 15, 2007, the Trustees approved an amendment to the Plan to reduce the distribution services fee for the Fund's Class A Shares from 0.25% to 0.05%. The amendment to the Plan became effective for the Fund on March 31, 2008.

Sales Charges

Front-end sales charges and contingent deferred sales charges (CDSC) do not represent expenses of the Fund. They are deducted from the proceeds of sales of Fund shares prior to investment or from redemption proceeds prior to remittance, as applicable. For the six months ended January 31, 2009, FSC retained $366 in sales charges from the sale of Class A Shares. FSC also retained $100 of CDSC relating to redemptions of Class C Shares.

Shareholder Services Fee

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. Subject to the terms described in the Expense Limitation note, FSSC may voluntarily reimburse the Fund for shareholder services fees. This voluntary reimbursement can be modified or terminated at any time. For the six months ended January 31, 2009, FSSC did not receive any fees paid by the Fund.

Expense Limitation

The Adviser and its affiliates (which may include FSC, FAS and FSSC) have voluntarily agreed to waive their fees and/or reimburse expenses so that the total operating expenses (as shown in the financial highlights) paid by the Fund's Institutional Shares, Class A Shares and Class C Shares (after the voluntary waivers and reimbursements) will not exceed 1.49%, 1.74% and 2.49%, respectively, for the fiscal year ending July 31, 2009. Although these actions are voluntary, the Adviser and its affiliates have agreed to continue these waivers and/or reimbursements at least through September 30, 2009.

General

Certain 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 affiliated mutual funds. For the six months ended January 31, 2009, the Adviser reimbursed $76. Transactions with the affiliated company during the six months ended January 31, 2009 were as follows:

Affiliate	Balance of Shares Held 7/31/2008	Purchases/ Additions	Sales/ Reductions	Balance of Shares Held 1/31/2009	Value	Dividend Income
Prime Value Obligations Fund, Institutional Shares	180,688	2,042,044	2,064,315	158,417	$158,417	$2,242

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, 2009, were as follows:

Purchases	$	12,137,566
Sales	$	13,846,513

7. LINE OF CREDIT

The Fund participates in a $100,000,000 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, 2009, there were no outstanding loans. During the six months ended January 31, 2009, the Fund did not utilize the LOC.

8. INTERFUND LENDING

Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (SEC), the Fund, along with other funds advised by subsidiaries of Federated Investors, Inc., may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from other participating affiliated funds. As of January 31, 2009, there were no outstanding loans. During the six months ended January 31, 2009, the program was not utilized.

9. LEGAL PROCEEDINGS

Since October 2003, Federated Investors, Inc. and related entities (collectively, "Federated") and various Federated funds ("Federated Funds") have been 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 Federated Funds from the 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 entities have also been named as defendants in several additional lawsuits that 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 Federated Funds retained the law firm of Dickstein Shapiro LLP to represent the Federated Funds in these lawsuits. Federated and the Federated Funds and their respective counsel have been defending this litigation and none of the Federated Funds remains a defendant in any of the lawsuits (though some could potentially receive any recoveries as nominal defendants). 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 Federated 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 Federated Fund redemptions, reduced sales of Federated Fund shares or other adverse consequences for the Federated Funds.

Evaluation and Approval of Advisory Contract - May 2008

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

The Fund's Board reviewed the Fund's investment advisory contract at meetings held in May 2008. The Board's decision regarding the contract reflects the exercise of its business judgment on whether to continue the existing arrangements.

In this connection, the Federated funds' Board had previously appointed 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 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. The Board considered that evaluation, along with other information, in deciding to approve the advisory contract.

During its review of the contract, the Board considered compensation and benefits received by the Adviser. This included the fees received for services provided to the Fund by other entities in the Federated organization and research services received by the Adviser from brokers that execute Federated fund trades, as well as advisory fees. The Board is also familiar with and considered 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 a fund grows larger; any indirect benefits that may accrue to the Adviser and its affiliates as a result of the Adviser's relationship with a 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 what might be viewed as like services, and the cost 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 for supplying such services. The Board was aware of these factors and was guided by them in its review of the Fund's advisory contract to the extent it considered them to be appropriate and relevant, as discussed further below.

The Board considered and weighed these circumstances in light of its substantial accumulated experience in governing the Fund and working with Federated on matters relating to the Federated funds, and was assisted in its deliberations by independent legal counsel. Throughout the year, the Board has requested and received substantial and detailed information about the Fund and the Federated organization that was in addition to the extensive materials that comprise and accompany the Senior Officer's evaluation. Federated provided much of this information at each regular meeting of the Board, and furnished additional reports in connection with the particular meeting at which the Board's formal review of the advisory contract occurred. Between regularly scheduled meetings, the Board also received information on particular matters as the need arose. Thus, 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 short- and long-term performance (in absolute terms, both on a gross basis and net of expenses, as well as in relationship to its particular investment program and certain competitor or "peer group" funds and/or other benchmarks, as appropriate), and comments on the reasons for performance; the Fund's investment objectives; the Fund's expenses (including the advisory fee 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 use and allocation of brokerage commissions derived from trading the Fund's portfolio securities (if any); and the nature, quality and extent of the advisory and other services provided to the Fund by the Adviser and its affiliates. The Board also considered the preferences and expectations of Fund shareholders 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 performance and 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 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 competes. The Fund's ability to deliver competitive performance when compared to its peer group was a useful indicator of how the Adviser is executing 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 continuation of the advisory contract. In this regard, the Senior Officer has 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 include, but are not limited to, different types of targeted investors; being subject to different laws and regulations; different legal structures; different average account sizes; different associated costs; and different 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, using data supplied by independent fund ranking organizations, regarding the performance of, and fees charged by, other mutual funds, noting his view that comparisons to fund peer groups are highly important in judging the reasonableness of proposed fees. He also observed that certain funds may exhibit important differences in their objectives and management techniques when compared to other funds placed in the same peer group by ranking organizations, noting in this connection that the Fund's quantitative investment program is of such a type.

For the one-year period ending December 31, 2007, the Fund's performance was above the median of the relevant peer group. In addition, the Board was informed by the Adviser that, for the same period, the Fund outperformed its benchmark index for the one-year period.

The Board also received financial information about Federated, including reports on the compensation and benefits Federated derived from its relationships with the Federated funds. These reports covered 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 discussed any indirect benefit Federated may derive from its receipt of research services from brokers who execute Federated fund trades. In addition, the Board considered the fact that, in order for a fund to be competitive in the marketplace, Federated and its affiliates frequently waived fees and/or reimbursed expenses and have disclosed to fund investors and/or indicated to the Board their intention to do so in the future, where appropriate.

Federated furnished reports, requested by the Senior Officer, that reported revenues on a fund-by-fund basis and made estimates of the allocation of expenses on a fund-by-fund basis, using allocation methodologies specified by the Senior Officer. The Senior Officer noted that, although they may apply consistent allocation processes, the inherent difficulties in allocating costs (and the unavoidable arbitrary aspects of that exercise) and the lack of consensus on how to allocate those costs may render such allocation reports unreliable. The allocation reports were considered in the analysis by the Board but were determined to be of limited use.

The Board and the Senior Officer also reviewed a report compiled by Federated comparing profitability information for Federated to other publicly held fund management companies. In this regard, the Senior Officer noted the limited availability of such information, but nonetheless concluded that Federated's profit margins did not appear to be excessive and the Board agreed.

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 and long-term investments in areas that support all of the Federated funds, such as personnel and processes for the portfolio management, compliance, and risk management functions; and systems technology; and that the benefits of these efforts (as well as 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 (as discussed in the Senior Officer's evaluation) 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.

It was noted in the materials for the Board meeting that for the Fund's most recently completed fiscal year, the Fund's investment advisory fee was waived in its entirety. The Board reviewed the contractual fee rate and other expenses of the Fund with the Adviser and was satisfied that the overall expense structure of the Fund remained competitive.

The Senior Officer's evaluation noted his belief that the information and observations contained in his evaluation supported a finding that the proposed management fees are reasonable, and that Federated appeared to provide appropriate administrative services to the Fund for the fees paid. Under these circumstances, no changes were recommended to, and no objection was raised to, the continuation of the Fund's advisory contract. The Board concluded that the nature, quality and scope of services provided the Fund by the Adviser and its affiliates were satisfactory.

In its decision to continue an existing investment advisory contract, the Board was mindful of the potential disruptions of the Fund's operations and various risks, uncertainties and other effects that could occur as a result of a decision to terminate or not renew an advisory contract. In particular, the Board recognized that most shareholders have invested in the Fund on the strength of the Adviser's industry standing and reputation and with the expectation that the Adviser will have a continuing role in providing advisory services to the Fund. Thus, the Board's approval of the advisory contract reflected the fact that it is the shareholders who have effectively selected the Adviser by virtue of having invested in the Fund.

The Board 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. Not all of the factors and considerations identified above were necessarily relevant to the Fund, nor did the Board consider any one of them to be determinative. With respect to the factors that were relevant, the Board's decision to approve the contract reflects its determination that Federated's performance and actions provided a satisfactory basis to support the decision to continue the existing 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 from Federated's website at FederatedInvestors.com. To access this information from the "Products" section of the website, click on the "Prospectuses and Regulatory Reports" link under "Related Information," then select the appropriate link opposite the name of the Fund; or select the name of the Fund and from the Fund's page, click on the "Prospectuses and Regulatory Reports" link. Form N-PX filings are also available at 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" under "Related Information," then selecting the appropriate link opposite the name of the Fund; or select the name of the Fund and from the Fund's page, click on the "Portfolio Holdings" link.

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 (3/09)

Federated is a registered mark of Federated Investors, Inc. 2009 (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, 2009

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,				Period Ended
	1/31/2009		2008		2007	1	7/31/2006	2
Net Asset Value, Beginning of Period	$10.28		$13.28		$11.14		$10.00
Income From Investment Operations:
Net investment income (loss)	(0.02	) 3	(0.05	) 3	(0.07	) 3	(0.10	) 3
Net realized and unrealized gain (loss) on investments	(4.46	)	(2.24	)	2.21		1.24
TOTAL FROM INVESTMENT OPERATIONS	(4.48	)	(2.29	)	2.14		1.14
Less Distributions:
Distributions from net realized gain on investments	- --		(0.71	)	- --		- --
Net Asset Value, End of Period	$ 5.80		$10.28		$13.28		$11.14
Total Return 4	(43.58	)%	(17.92	)%	19.21	%	11.40	%
Ratios to Average Net Assets:
Net expenses	1.49	% 5	1.50	%	1.50	%	1.76	% 5
Net investment income (loss)	(0.38	)% 5	(0.43	)%	(0.51	)%	(0.91	)% 5
Expense waiver/reimbursement 6	4.14	% 5	3.55	%	8.14	%	9.41	% 5
Supplemental Data:
Net assets, end of period (000 omitted)	$3,855		$10,064		$3,595		$784
Portfolio turnover	106	%	243	%	237	%	209	%

1 MDT Small Cap Core Fund (the "Predecessor Fund") was reorganized into the 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 (unaudited)

As a shareholder of the Fund, you incur ongoing costs, including management fees and to the extent applicable, distribution (12b-1) fees and/or 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, 2008 to January 31, 2009.

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 8/1/2008	Ending Account Value 1/31/2009	Expenses Paid During Period 1
Actual	$1,000	$ 564.20	$5.87
Hypothetical (assuming a 5% return before expenses)	$1,000	$1,017.69	$7.58

1 Expenses are equal to the Fund's annualized net expense ratio of 1.49%, 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 (unaudited)

At January 31, 2009, the Fund's industry composition ¹ was as follows:

Industry	Percentage of Total Net Assets
Undesignated Consumer Cyclicals	8.3	%
Home Health Care	4.5	%
Electric Utility	3.5	%
Defense Aerospace	3.2	%
Paper Products	3.1	%
Securities Brokerage	3.1	%
Restaurant	3.0	%
Medical Technology	2.9	%
Regional Bank	2.9	%
Computer Services	2.6	%
Oil Refiner	2.6	%
Clothing Stores	2.4	%
Computer Peripherals	2.0	%
Multi-Industry Basic	1.9	%
Airline - Regional	1.8	%
Financial Services	1.8	%
Insurance Brokerage	1.8	%
Office Supplies	1.6	%
Specialty Retailing	1.6	%
Undesignated Health	1.6	%
Apparel	1.5	%
Home Products	1.5	%
Multi-Industry Capital Goods	1.5	%
Defense Electronics	1.4	%
Electrical Equipment	1.4	%
Metal Fabrication	1.4	%
Office Furniture	1.4	%
Software Packaged/Custom	1.4	%
Telecommunication Equipment & Services	1.4	%
Auto Original Equipment Manufacturers	1.3	%
Multi-Line Insurance	1.3	%

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.

Industry	Percentage of Total Net Assets
Oil Well Supply	1.3	%
Property Liability Insurance	1.3	%
Commodity Chemicals	1.2	%
Other Communications Equipment	1.2	%
Shoes	1.2	%
Toys & Games	1.2	%
Specialty Chemicals	1.1	%
Electrical Test/Measuring Equipment	1.0	%
Hotels and Motels	1.0	%
Personal Loans	1.0	%
Other 2	15.9	%
Cash Equivalents 3	2.2	%
Other Assets and Liabilities--Net 4	(1.3	)%
TOTAL	100.0	%

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, 2009 (unaudited)

Shares					Value
			COMMON STOCKS--99.1%
			Airline - National--0.1%
	734	1	Continental Airlines, Inc., Class B	$	9,887
			Airline - Regional--1.8%
	2,473	1	Alaska Air Group, Inc.		65,188
	1,269	1	Allegiant Travel Co.		45,379
	1,074	1	Republic Airways Holdings, Inc.		8,796
	795		SkyWest, Inc.		12,442
			TOTAL		131,805
			Aluminum--0.4%
	1,060		Kaiser Aluminum Corp.		26,330
			Apparel--1.5%
	8,932	1	Collective Brands, Inc.		95,304
	1,005	1	True Religion Apparel, Inc.		11,467
			TOTAL		106,771
			Auto Original Equipment Manufacturers--1.3%
	3,423	1	Fuel Systems Solutions, Inc.		89,477
			Biotechnology--0.7%
	1,538	1	Emergent Biosolutions, Inc.		33,728
	1,354	1	Maxygen, Inc.		11,590
	195	1	Sequenom, Inc.		4,321
			TOTAL		49,639
			Clothing Stores--2.4%
	4,729	1	Children's Place Retail Stores, Inc.		88,952
	663	1	Gymboree Corp.		16,244
	2,422	1	Jos A. Bank Clothiers, Inc.		66,508
			TOTAL		171,704
			Commodity Chemicals--1.2%
	993		Compass Minerals International, Inc.		59,749
	1,940		Innophos Holdings, Inc.		29,352
			TOTAL		89,101
Shares					Value
			COMMON STOCKS--continued
			Computer Networking--0.9%
	4,549	1	Avocent Corp.	$	65,278
			Computer Peripherals--2.0%
	6,211	1	Synaptics, Inc.		146,393
			Computer Services--2.6%
	6,308		Fair Isaac & Co., Inc.		80,112
	991	1	Stanley, Inc.		29,988
	3,732	1	Synnex Corp.		57,286
	861		Syntel, Inc.		18,555
			TOTAL		185,941
			Computer Stores--0.1%
	2,042	1	Insight Enterprises, Inc.		10,578
			Construction Machinery--0.1%
	638	1	NCI Building System, Inc.		7,394
			Contracting--0.8%
	2,880	1	Insituform Technologies, Inc., Class A		54,029
			Defense Aerospace--3.2%
	3,111	1	AAR Corp.		56,434
	731	1	Aerovironment, Inc.		27,091
	822	1	Hawk Corp.		13,884
	580		Kaman Corp., Class A		11,072
	2,587		Triumph Group, Inc.		117,139
			TOTAL		225,620
			Defense Electronics--1.4%
	4,191	1	FLIR Systems, Inc.		104,649
			Discount Department Stores--0.1%
	781	1	99 Cents Only Stores		6,545
			Diversified Leisure--0.5%
	369	1	Bally Technologies, Inc.		7,450
	2,028	1	Life Time Fitness, Inc.		30,035
			TOTAL		37,485
			Electrical Test/Measuring Equipment--1.0%
	970		MTS Systems Corp.		25,404
	2,531	1	Multi-Fineline Electronix, Inc.		46,899
			TOTAL		72,303
Shares					Value
			COMMON STOCKS--continued
			Electric Utility--3.5%
	2,471		Northwestern Corp.	$	59,823
	5,307	1	Pike Electric Corp.		59,704
	1,018		Portland General Electric Co.		19,800
	4,022		UniSource Energy Corp.		113,581
			TOTAL		252,908
			Electrical Equipment--1.4%
	6,814		Baldor Electric Co.		95,464
	174	1	Powell Industries, Inc.		4,155
			TOTAL		99,619
			Electronic Instruments--0.4%
	754	1	Axsys Technologies, Inc.		32,196
			Financial Services--1.8%
	1,402	1	America's Car-Mart, Inc.		12,744
	1,079	1	CBIZ, Inc.		8,772
	8,073		Deluxe Corp.		93,082
	551		Heartland Payment Systems, Inc.		4,998
	841	1	Nelnet, Inc., Class A		11,623
			TOTAL		131,219
			Food Wholesaling--0.6%
	1,032		Nash Finch Co.		44,407
			Furniture--0.4%
	779		Ethan Allen Interiors, Inc.		8,873
	2,745		Tempur-Pedic International, Inc.		19,215
			TOTAL		28,088
			Grocery Chain--0.4%
	1,506	1	The Pantry, Inc.		25,045
			Home Health Care--4.5%
	4,083	1	Amedisys, Inc.		168,342
	1,594	1	Amerigroup Corp.		44,584
	4,011	1	LHC Group, Inc.		106,733
			TOTAL		319,659
			Home Products--1.5%
	10,352	1	Jarden Corp.		107,971
Shares					Value
			COMMON STOCKS--continued
			Hotels and Motels--1.0%
	5,309		Ameristar Casinos, Inc.	$	47,622
	4,830	1	Boyd Gaming Corp.		23,232
			TOTAL		70,854
			Industrial Machinery--0.3%
	1,736	1	Columbus McKinnon Corp.		22,082
			Insurance Brokerage--1.8%
	2,925		AmTrust Financial Services, Inc.		24,014
	340		Employers Holdings, Inc.		4,604
	2,607		Life Partners Holdings, Inc.		99,066
			TOTAL		127,684
			Life Insurance--0.7%
	3,298		Delphi Financial Group, Inc., Class A		50,031
	1,337		Phoenix Cos., Inc.		2,340
			TOTAL		52,371
			Long-Term Care Centers--0.1%
	685	1	Sun Healthcare Group, Inc.		7,761
			Lumber Products--0.2%
	2,595		Officemax, Inc.		14,298
			Machine Tools--0.7%
	2,251	1	AZZ, Inc.		50,422
			Machined Parts Original Equipment Manufacturers--0.1%
	540		Titan International, Inc.		4,190
			Magazine Publishing--0.7%
	3,246		Meredith Corp.		51,839
			Maritime--0.3%
	1,794		TAL International Group, Inc.		18,801
			Medical Supplies--0.7%
	517	1	MWI Veterinary Supply, Inc.		10,821
	884	1	Merit Medical Systems, Inc.		13,605
	726	1	PetMed Express, Inc.		10,483
	1,488	1	Quidel Corp.		18,302
			TOTAL		53,211
Shares					Value
			COMMON STOCKS--continued
			Medical Technology--2.9%
	2,387	1	Cantel Medical Corp.	$	35,781
	2,723	1	Cyberonics, Inc.		41,907
	1,594	1	Greatbatch Technologies, Inc.		37,140
	3,299	1	Thoratec Laboratories Corp.		95,572
			TOTAL		210,400
			Metal Distribution--0.1%
	1,011		Castle (A.M.) & Co.		8,553
			Metal Fabrication--1.4%
	1,156	1	Haynes International, Inc.		21,120
	1,115	1	Ladish Co., Inc.		12,678
	4,718	1	RTI International Metals		62,797
			TOTAL		96,595
			Miscellaneous Communications--0.7%
	966	1	Bankrate, Inc.		32,226
	612		Harte-Hanks		3,856
	505		Shenandoah Telecommunications Co.		12,312
			TOTAL		48,394
			Miscellaneous Food Products--0.6%
	1,778	1	Fresh Del Monte Produce, Inc.		42,850
	204		The Anderson's, Inc.		3,344
			TOTAL		46,194
			Miscellaneous Machinery--0.0%
	80		Graham Corp.		797
			Multi-Industry Basic--1.9%
	9,552		Olin Corp.		134,206
			Multi-Industry Capital Goods--1.5%
	3,723	1	Ceradyne, Inc.		84,959
	1,472	1	DXP Enterprises, Inc.		19,990
			TOTAL		104,949
Shares					Value
			COMMON STOCKS--continued
			Multi-Line Insurance--1.3%
	467	1	Amerisafe, Inc.	$	8,747
	2,065		FBL Financial Group, Inc., Class A		21,290
	1,409		Harleysville Group, Inc.		40,072
	689		Safety Insurance Group, Inc.		24,129
			TOTAL		94,238
			Newspaper Publishing--0.1%
	5,056		Belo (A.H.) Corp., Series A		7,230
	3,150		McClatchy Co., Class A		2,079
			TOTAL		9,309
			Office Furniture--1.4%
	2,847		Knoll, Inc.		19,417
	7,086		Miller Herman, Inc.		77,875
			TOTAL		97,292
			Office Supplies--1.6%
	1,314	1	Acco Brands Corp.		2,523
	4,001	1	United Stationers, Inc.		112,068
			TOTAL		114,591
			Oil Refiner--2.6%
	13		Alon USA Energy, Inc.		153
	5,512		World Fuel Services Corp.		186,140
			TOTAL		186,293
			Oil Service, Explore & Drill--0.7%
	3,386	1	Complete Production Services, Inc.		21,704
	6,439	1	Parker Drilling Co.		13,651
	1,227	1	Superior Well Services, Inc.		11,276
			TOTAL		46,631
			Oil Well Supply--1.3%
	468		Lufkin Industries, Inc.		16,357
	4,158	1	Oil States International, Inc.		76,133
			TOTAL		92,490
			Other Communications Equipment--1.2%
	6,147	1	Syniverse Holdings, Inc.		83,353
Shares					Value
			COMMON STOCKS--continued
			Packaged Foods--0.7%
	3,771	1	Chiquita Brands International	$	52,719
			Paint & Related Materials--0.3%
	4,851		Ferro Corp.		19,210
			Paper Products--3.1%
	3,406	1	Buckeye Technologies, Inc.		9,946
	2,836		Glatfelter (P.H.) Co.		24,702
	459	1	Kadant, Inc.		4,608
	5,809		Rock-Tenn Co.		181,067
			TOTAL		220,323
			Personal Loans--1.0%
	3,705	1	Ezcorp, Inc., Class A		50,277
	1,017	1	World Acceptance Corp.		19,476
			TOTAL		69,753
			Printing--0.1%
	3,597	1	Valassis Communications, Inc.		4,604
			Property Liability Insurance--1.3%
	258		American Physicians Capital, Inc.		10,970
	1,311	1	CNA Surety Corp.		21,697
	4,456		Horace Mann Educators Corp.		41,664
	1,627		OneBeacon Insurance Group Ltd.		13,748
	281		Selective Insurance Group, Inc.		4,313
			TOTAL		92,392
			Psychiatric Centers--0.4%
	1,024	1	Psychiatric Solutions, Inc.		26,624
			Regional Bank--2.9%
	880		City Holding Co.		22,625
	1,712		First BanCorp		12,172
	3,791		First Midwest Bancorp, Inc.		37,910
	1,918		Oriental Financial Group		9,686
	7,730		Pacific Capital Bancorp		82,015
	2,407		Republic Bancorp, Inc.		43,326
			TOTAL		207,734
Shares					Value
			COMMON STOCKS--continued
			Restaurant--3.0%
	263		Bob Evans Farms, Inc.	$	4,618
	4,138	1	CEC Entertainment, Inc.		96,581
	1,500		Cracker Barrel Old Country Store, Inc.		26,355
	2,653	1	Domino's Pizza, Inc.		17,749
	943	1	Green Mountain Coffee, Inc.		36,079
	2,065	1	P. F. Chang's China Bistro, Inc.		36,612
			TOTAL		217,994
			Savings & Loan--0.9%
	5,305	1	Ocwen Financial Corp.		47,214
	323		WSFS Financial Corp.		8,333
	1,850		Webster Financial Corp. Waterbury		7,733
			TOTAL		63,280
			Securities Brokerage--3.1%
	4,590	1	Interactive Brokers Group, Inc., Class A		70,089
	6,787	1	Knight Capital Group, Inc., Class A		122,370
	4,437	1	Labranche & Co., Inc.		30,438
			TOTAL		222,897
			Services to Medical Professionals--0.7%
	662	1	Genoptix, Inc.		22,442
	1,017	1	PharMerica Corp.		16,719
	950	1	Res-Care, Inc.		12,872
			TOTAL		52,033
			Shoes--1.2%
	1,607	1	Deckers Outdoor Corp.		83,950
			Software Packaged/Custom--1.4%
	3,302	1	ACI Worldwide, Inc.		56,101
	946	1	CSG Systems International, Inc.		13,717
	453	1	S1 Corp.		3,022
	3,766	1	Wind River Systems, Inc.		30,015
			TOTAL		102,855
Shares					Value
			COMMON STOCKS--continued
			Specialty Chemicals--1.1%
	598		Chemed Corp.	$	23,998
	3,562		Koppers Holdings, Inc.		57,704
			TOTAL		81,702
			Specialty Machinery--0.4%
	1,368	1	Gardner Denver, Inc.		29,781
			Specialty Retailing--1.6%
	1,169		Asbury Automotive Group, Inc.		4,185
	5,650	1	Hot Topic, Inc.		48,251
	5,486		Regis Corp. Minnesota		61,717
	511		Sonic Automotive, Inc.		1,037
			TOTAL		115,190
			Telecommunication Equipment & Services--1.4%
	509	1	ADC Telecommunications, Inc.		2,581
	1,506	1	Comtech Telecommunications Corp.		58,433
	1,462	1	GeoEye, Inc.		25,219
	1,217		Plantronics, Inc.		12,353
			TOTAL		98,586
			Telephone Utility--0.1%
	203		Atlantic Telephone Network, Inc.		4,364
			Toys & Games--1.2%
	4,129	1	JAKKS Pacific, Inc.		75,726
	1,183	1	RC2 Corp.		6,873
			TOTAL		82,599
			Undesignated Consumer Cyclicals--8.3%
	1,812	1	American Public Education, Inc.		70,958
	8,296	1	Corinthian Colleges, Inc.		154,969
	9,360	1	Geo Group, Inc.		138,528
	788	1	Kendle International, Inc.		15,051
	10,960	1	Rent-A-Center, Inc.		162,756
	3,371		Speedway Motorsports, Inc.		48,677
			TOTAL		590,939
Shares					Value
			COMMON STOCKS--continued
			Undesignated Consumer Staples--0.8%
	1,901		Jackson Hewitt Tax Service, Inc.	$	25,169
	1,398	1	USANA, Inc.		32,448
			TOTAL		57,617
			Undesignated Health--1.6%
	6,523	1	Healthspring, Inc.		113,631
			TOTAL COMMON STOCKS (IDENTIFIED COST $9,292,861)		7,090,616
			MUTUAL FUND--2.2%
	158,417	2,3	Prime Value Obligations Fund, Institutional Shares, 1.75% (AT NET ASSET VALUE)		158,417
			TOTAL INVESTMENTS--101.3% (IDENTIFIED COST $9,451,278) 4		7,249,033
			OTHER ASSETS AND LIABILITIES - NET--(1.3)% 5		(94,335	)
			TOTAL NET ASSETS--100%	$	7,154,698

1 Non-income producing security.

2 Affiliated company.

3 7-Day net yield.

4 Also represents cost for federal tax purposes.

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

Note: The categories of investments are shown as a percentage of total net assets at January 31, 2009.

Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below:

Level 1--quoted prices in active markets for identical securities

Level 2--other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

Level 3--significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used, as of January 31, 2009, in valuing the Fund's assets carried at fair value:

Valuation Inputs	Investments in Securities
Level 1--Quoted Prices and Investments in Mutual Funds	$7,249,033
Level 2--Other Significant Observable Inputs	- --
Level 3--Significant Unobservable Inputs	- --
TOTAL	$7,249,033

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

January 31, 2009 (unaudited)

Assets:
Total investments in securities, at value including $158,417 of investments in an affiliated issuer (Note 5) (identified cost $9,451,278)			$	7,249,033
Income receivable				978
Receivable for investments sold				219,421
Receivable for shares sold				473
TOTAL ASSETS				7,469,905
Liabilities:
Payable for investments purchased	$	223,779
Payable for shares redeemed		44,085
Payable for auditing fees		10,924
Payable for portfolio accounting fees		12,070
Payable for share registration costs		11,184
Payable for distribution services fee (Note 5)		1,701
Payable for shareholder services fee (Note 5)		732
Accrued expenses		10,732
TOTAL LIABILITIES				315,207
Net assets for 1,244,104 shares outstanding			$	7,154,698
Net Assets Consist of:
Paid-in capital			$	15,849,580
Net unrealized depreciation of investments				(2,202,245	)
Accumulated net realized loss on investments				(6,457,731	)
Accumulated net investment income (loss)				(34,906	)
TOTAL NET ASSETS			$	7,154,698
Net Asset Value, Offering Price and Redemption Proceeds Per Share
Institutional Shares:
Net asset value per share ($3,855,202 ÷ 664,225 shares outstanding), no par value, unlimited shares authorized				$5.80
Offering price per share				$5.80
Redemption proceeds per share				$5.80
Class A Shares:
Net asset value per share ($1,667,528 ÷ 289,491 shares outstanding), no par value, unlimited shares authorized				$5.76
Offering price per share (100/94.50 of $5.76)				$6.10
Redemption proceeds per share				$5.76
Class C Shares:
Net asset value per share ($1,631,968 ÷ 290,388 shares outstanding), no par value, unlimited shares authorized				$5.62
Offering price per share				$5.62
Redemption proceeds per share (99.00/100 of $5.62)				$5.56

See Notes which are an integral part of the Financial Statements

Statement of Operations

Six Months Ended January 31, 2009 (unaudited)

Investment Income:
Dividends (including $2,242 received from an affiliated issuer and net of foreign taxes withheld of $43)							$	61,750
Expenses:
Investment adviser fee (Note 5)				$	64,337
Administrative personnel and services fee (Note 5)					115,946
Custodian fees					12,425
Transfer and dividend disbursing agent fees and expenses					32,433
Directors'/Trustees' fees					811
Auditing fees					10,924
Legal fees					3,230
Portfolio accounting fees					38,211
Distribution services fee--Class C Shares (Note 5)					7,947
Shareholder services fee--Class A Shares (Note 5)					2,571
Shareholder services fee--Class C Shares (Note 5)					2,649
Share registration costs					18,165
Printing and postage					19,799
Insurance premiums					2,381
Miscellaneous					1,531
TOTAL EXPENSES					333,360
Waivers and Reimbursements:
Waiver/reimbursement of investment adviser fee	$	(64,337	)
Waiver of administrative personnel and services fee		(22,629	)
Reimbursement of other operating expenses		(149,738	)
TOTAL WAIVERS AND REIMBURSEMENTS					(236,704	)
Net expenses								96,656
Net investment income (loss)								(34,906	)
Realized and Unrealized Loss on Investments:
Net realized loss on investments								(5,429,730	)
Net change in unrealized depreciation of investments								(1,098,873	)
Net realized and unrealized loss on investments								(6,528,603	)
Change in net assets resulting from operations							$	(6,563,509	)

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

		Six Months Ended (unaudited) 1/31/2009			Year Ended 7/31/2008
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	(34,906	)	$	(92,417	)
Net realized loss on investments		(5,429,730	)		(968,490	)
Net change in unrealized appreciation/depreciation of investments		(1,098,873	)		(1,160,449	)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		(6,563,509	)		(2,221,356	)
Distributions to Shareholders:
Distributions from net realized gain on investments
Institutional Shares		- --			(217,102	)
Class A Shares		- --			(164,846	)
Class C Shares		- --			(186,389	)
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS		- --			(568,337	)
Share Transactions:
Proceeds from sale of shares		2,817,904			11,231,271
Net asset value of shares issued to shareholders in payment of distributions declared		- --			289,237
Cost of shares redeemed		(4,545,923	)		(2,591,978	)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		(1,728,019	)		8,928,530
Change in net assets		(8,291,528	)		6,138,837
Net Assets:
Beginning of period		15,446,226			9,307,389
End of period (including accumulated net investment income (loss) of $(34,906) and $0, respectively)	$	7,154,698		$	15,446,226

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

January 31, 2009 (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 nine 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. Each portfolio pays its own expenses. 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 investment objective of the Fund is long-term capital appreciation.

2. SIGNIFICANT ACCOUNTING POLICIES

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

Investment Valuation

In calculating its net asset value (NAV), the Fund generally values investments as follows:

• Equity securities listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market.
• Shares of other mutual funds are valued based upon their reported NAVs.
• Fixed-income securities acquired with remaining maturities greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Board of Trustees (the "Trustees").
• Fixed-income securities acquired with remaining maturities of 60 days or less are valued at their cost (adjusted for the accretion of any discount or amortization of any premium).
• Derivative contracts listed on exchanges are valued at their reported settlement or closing price.
• Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Trustees.

If the Fund cannot obtain a price or price evaluation from a pricing service for an investment, the Fund may attempt to value the investment based upon the mean of bid and asked quotations or fair value the investment based on price evaluations, from one or more dealers. If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could purchase or sell an investment at the price used to calculate the Fund's NAV.

Fair Valuation and Significant Events Procedures

The Trustees have authorized the use of pricing services to provide evaluations of the current fair value of certain investments for purposes of calculating the NAV. Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a "bid" evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and asked for the investment (a "mid" evaluation). The Fund normally uses bid evaluations for U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for other types of fixed-income securities and OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Trustees.

The Trustees also have adopted procedures requiring an investment to be priced at its fair value whenever the Adviser determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment's value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:

• With respect to securities traded in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures or options contracts;
• With respect to price evaluations of fixed-income securities determined before the close of regular trading on the NYSE, actions by the Federal Reserve Open Market Committee and other significant trends in U.S. fixed-income markets;
• Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; and
• Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, a natural disaster affecting the issuer's operations or regulatory changes or market developments affecting the issuer's industry.

The Trustees have approved the use of a pricing service to determine the fair value of equity securities traded principally in foreign markets when the Adviser determines that there has been a significant trend in the U.S. equity markets or in index futures trading. For other significant events, the Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Fund will determine the fair value of the investment using another method approved by the Trustees.

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

Investment transactions are accounted for on a trade-date basis. Realized gains and losses from investment transactions are recorded on an identified cost basis. Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Foreign dividends are recorded on the ex-dividend date or when the Fund is informed of the ex-dividend date. Distributions of net investment income, if any, are declared and paid 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 may bear certain expenses unique to that class such as distribution services 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. The Fund complies with the provisions of Financial Accounting Standards Board (FASB) Interpretation No. 48 (FIN 48), "Accounting for Uncertainty in Income Taxes." As of and during the six months ended January 31, 2009, the Fund did not have a liability for any uncertain tax positions. The Fund recognizes interest and penalties, if any, related to tax liabilities as income tax expense in the Statement of Operations. As of January 31, 2009, tax years 2006 through 2008 remain subject to examination by the Fund's major tax jurisdictions, which include the United States of America and the Commonwealth of Massachusetts.

The Fund may be subject to taxes imposed by governments of countries in which it invests. Such taxes are generally based on either income or gains earned or repatriated. The Fund accrues and applies such taxes to net investment income, net realized gains and net unrealized gains as income and/or gains are earned.

When-Issued and Delayed Delivery Transactions

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

Other

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

3. SHARES OF BENEFICIAL INTEREST

The following tables summarize share activity:

	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Institutional Shares:	Shares			Amount		Shares			Amount
Shares sold	258,491		$	1,684,599		775,627		$	8,473,003
Shares issued to shareholders in payment of distributions declared	- --			--		5,282			62,326
Shares redeemed	(573,088	)		(3,688,228	)	(72,893	)		(839,798	)
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS	(314,597	)	$	(2,003,629	)	708,016		$	7,695,531
	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Class A Shares:	Shares			Amount		Shares			Amount
Shares sold	82,410		$	547,668		127,938		$	1,534,598
Shares issued to shareholders in payment of distributions declared	--			--		12,340			144,868
Shares redeemed	(49,837	)		(357,036	)	(65,972	)		(737,190	)
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS	32,573		$	190,632		74,306		$	942,276
	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Class C Shares:	Shares			Amount		Shares			Amount
Shares sold	90,597		$	585,637		103,368		$	1,223,670
Shares issued to shareholders in payment of distributions declared	--			--		7,110			82,043
Shares redeemed	(76,236	)		(500,659	)	(87,328	)		(1,014,990	)
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS	14,361		$	84,978		23,150		$	290,723
NET CHANGE RESULTING FROM SHARE TRANSACTIONS	(267,663	)	$	(1,728,019	)	805,472		$	8,928,530

4. FEDERAL TAX INFORMATION

At January 31, 2009, the cost of investments for federal tax purposes was $9,451,278. The net unrealized depreciation of investments for federal tax purposes was $2,202,245. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $212,603 and net unrealized depreciation from investments for those securities having an excess of cost over value of $2,414,848.

5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated MDTA LLC is the Fund's investment adviser (the "Adviser"). The advisory agreement between the Fund and the Adviser provides for an annual fee equal to 1.15% of the Fund's average daily net assets. Prior to December 8, 2008, the Adviser agreed to waive all or a portion of the advisory fee and/or reimburse certain operating expenses (excluding interest, taxes and brokerage commissions) in order to contractually limit the Fund's aggregate annual operating expenses to no more than the following annual percentages for each Class of the Fund based on average daily net assets:

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

In addition, subject to the terms described in the Expense Limitation note, the Adviser may also voluntarily choose to waive any portion of its fee and/or reimburse certain operating expenses of the Fund. 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, 2009, the Adviser waived $64,261 of its fee and reimbursed $149,738 of other operating expenses.

Administrative Fee

Federated Administrative Services (FAS), under the Administrative Services 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. Subject to the terms described in the Expense Limitation note, 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, 2009, the net fee paid to FAS was 1.668% of average daily net assets of the Fund. The Fund is currently being charged the minimum administrative fee; therefore the fee as a percentage of average daily net assets is greater than the amounts presented in the chart above. FAS waived $22,629 of its fee.

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 at the following percentages of average daily net assets annually, to compensate FSC:

Share Class Name	Percentage of Average Daily Net Assets of Class
Class A Shares	0.05%
Class C Shares	0.75%

Subject to the terms described in the Expense Limitation note, 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, 2009, FSC retained $2,161 of fees paid by the Fund. For the six months ended January 31, 2009, the Fund's Class A Shares did not incur a distribution services fee; however it may begin to incur this fee upon approval of the Trustees. On November 15, 2007, the Trustees approved an amendment to the Plan to reduce the distribution services fee for the Fund's Class A Shares from 0.25% to 0.05%. The amendment to the Plan became effective for the Fund on March 31, 2008.

Sales Charges

Front-end sales charges and contingent deferred sales charges (CDSC) do not represent expenses of the Fund. They are deducted from the proceeds of sales of Fund shares prior to investment or from redemption proceeds prior to remittance, as applicable. For the six months ended January 31, 2009, FSC retained $366 in sales charges from the sale of Class A Shares. FSC also retained $100 of CDSC relating to redemptions of Class C Shares.

Shareholder Services Fee

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. Subject to the terms described in the Expense Limitation note, FSSC may voluntarily reimburse the Fund for shareholder services fees. This voluntary reimbursement can be modified or terminated at any time. For the six months ended January 31, 2009, FSSC did not receive any fees paid by the Fund.

Expense Limitation

The Adviser and its affiliates (which may include FSC, FAS and FSSC) have voluntarily agreed to waive their fees and/or reimburse expenses so that the total operating expenses (as shown in the financial highlights) paid by the Fund's Institutional Shares, Class A Shares and Class C Shares (after the voluntary waivers and reimbursements) will not exceed 1.49%, 1.74% and 2.49%, respectively, for the fiscal year ending July 31, 2009. Although these actions are voluntary, the Adviser and its affiliates have agreed to continue these waivers and/or reimbursements at least through September 30, 2009.

General

Certain 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 affiliated mutual funds. For the six months ended January 31, 2009, the Adviser reimbursed $76. Transactions with the affiliated company during the six months ended January 31, 2009 were as follows:

Affiliate	Balance of Shares Held 7/31/2008	Purchases/ Additions	Sales/ Reductions	Balance of Shares Held 1/31/2009	Value	Dividend Income
Prime Value Obligations Fund, Institutional Shares	180,688	2,042,044	2,064,315	158,417	$158,417	$2,242

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, 2009, were as follows:

Purchases	$	12,137,566
Sales	$	13,846,513

7. LINE OF CREDIT

The Fund participates in a $100,000,000 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, 2009, there were no outstanding loans. During the six months ended January 31, 2009, the Fund did not utilize the LOC.

8. INTERFUND LENDING

Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (SEC), the Fund, along with other funds advised by subsidiaries of Federated Investors, Inc., may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from other participating affiliated funds. As of January 31, 2009, there were no outstanding loans. During the six months ended January 31, 2009, the program was not utilized.

9. LEGAL PROCEEDINGS

Since October 2003, Federated Investors, Inc. and related entities (collectively, "Federated") and various Federated funds ("Federated Funds") have been 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 Federated Funds from the 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 entities have also been named as defendants in several additional lawsuits that 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 Federated Funds retained the law firm of Dickstein Shapiro LLP to represent the Federated Funds in these lawsuits. Federated and the Federated Funds and their respective counsel have been defending this litigation and none of the Federated Funds remains a defendant in any of the lawsuits (though some could potentially receive any recoveries as nominal defendants). 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 Federated 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 Federated Fund redemptions, reduced sales of Federated Fund shares or other adverse consequences for the Federated Funds.

Evaluation and Approval of Advisory Contract - May 2008

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

The Fund's Board reviewed the Fund's investment advisory contract at meetings held in May 2008. The Board's decision regarding the contract reflects the exercise of its business judgment on whether to continue the existing arrangements.

In this connection, the Federated funds' Board had previously appointed 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 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. The Board considered that evaluation, along with other information, in deciding to approve the advisory contract.

During its review of the contract, the Board considered compensation and benefits received by the Adviser. This included the fees received for services provided to the Fund by other entities in the Federated organization and research services received by the Adviser from brokers that execute Federated fund trades, as well as advisory fees. The Board is also familiar with and considered 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 a fund grows larger; any indirect benefits that may accrue to the Adviser and its affiliates as a result of the Adviser's relationship with a 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 what might be viewed as like services, and the cost 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 for supplying such services. The Board was aware of these factors and was guided by them in its review of the Fund's advisory contract to the extent it considered them to be appropriate and relevant, as discussed further below.

The Board considered and weighed these circumstances in light of its substantial accumulated experience in governing the Fund and working with Federated on matters relating to the Federated funds, and was assisted in its deliberations by independent legal counsel. Throughout the year, the Board has requested and received substantial and detailed information about the Fund and the Federated organization that was in addition to the extensive materials that comprise and accompany the Senior Officer's evaluation. Federated provided much of this information at each regular meeting of the Board, and furnished additional reports in connection with the particular meeting at which the Board's formal review of the advisory contract occurred. Between regularly scheduled meetings, the Board also received information on particular matters as the need arose. Thus, 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 short- and long-term performance (in absolute terms, both on a gross basis and net of expenses, as well as in relationship to its particular investment program and certain competitor or "peer group" funds and/or other benchmarks, as appropriate), and comments on the reasons for performance; the Fund's investment objectives; the Fund's expenses (including the advisory fee 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 use and allocation of brokerage commissions derived from trading the Fund's portfolio securities (if any); and the nature, quality and extent of the advisory and other services provided to the Fund by the Adviser and its affiliates. The Board also considered the preferences and expectations of Fund shareholders 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 performance and 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 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 competes. The Fund's ability to deliver competitive performance when compared to its peer group was a useful indicator of how the Adviser is executing 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 continuation of the advisory contract. In this regard, the Senior Officer has 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 include, but are not limited to, different types of targeted investors; being subject to different laws and regulations; different legal structures; different average account sizes; different associated costs; and different 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, using data supplied by independent fund ranking organizations, regarding the performance of, and fees charged by, other mutual funds, noting his view that comparisons to fund peer groups are highly important in judging the reasonableness of proposed fees. He also observed that certain funds may exhibit important differences in their objectives and management techniques when compared to other funds placed in the same peer group by ranking organizations, noting in this connection that the Fund's quantitative investment program is of such a type.

For the one-year period ending December 31, 2007, the Fund's performance was above the median of the relevant peer group. In addition, the Board was informed by the Adviser that, for the same period, the Fund outperformed its benchmark index for the one-year period.

The Board also received financial information about Federated, including reports on the compensation and benefits Federated derived from its relationships with the Federated funds. These reports covered 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 discussed any indirect benefit Federated may derive from its receipt of research services from brokers who execute Federated fund trades. In addition, the Board considered the fact that, in order for a fund to be competitive in the marketplace, Federated and its affiliates frequently waived fees and/or reimbursed expenses and have disclosed to fund investors and/or indicated to the Board their intention to do so in the future, where appropriate.

Federated furnished reports, requested by the Senior Officer, that reported revenues on a fund-by-fund basis and made estimates of the allocation of expenses on a fund-by-fund basis, using allocation methodologies specified by the Senior Officer. The Senior Officer noted that, although they may apply consistent allocation processes, the inherent difficulties in allocating costs (and the unavoidable arbitrary aspects of that exercise) and the lack of consensus on how to allocate those costs may render such allocation reports unreliable. The allocation reports were considered in the analysis by the Board but were determined to be of limited use.

The Board and the Senior Officer also reviewed a report compiled by Federated comparing profitability information for Federated to other publicly held fund management companies. In this regard, the Senior Officer noted the limited availability of such information, but nonetheless concluded that Federated's profit margins did not appear to be excessive and the Board agreed.

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 and long-term investments in areas that support all of the Federated funds, such as personnel and processes for the portfolio management, compliance, and risk management functions; and systems technology; and that the benefits of these efforts (as well as 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 (as discussed in the Senior Officer's evaluation) 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.

It was noted in the materials for the Board meeting that for the Fund's most recently completed fiscal year, the Fund's investment advisory fee was waived in its entirety. The Board reviewed the contractual fee rate and other expenses of the Fund with the Adviser and was satisfied that the overall expense structure of the Fund remained competitive.

The Senior Officer's evaluation noted his belief that the information and observations contained in his evaluation supported a finding that the proposed management fees are reasonable, and that Federated appeared to provide appropriate administrative services to the Fund for the fees paid. Under these circumstances, no changes were recommended to, and no objection was raised to, the continuation of the Fund's advisory contract. The Board concluded that the nature, quality and scope of services provided the Fund by the Adviser and its affiliates were satisfactory.

In its decision to continue an existing investment advisory contract, the Board was mindful of the potential disruptions of the Fund's operations and various risks, uncertainties and other effects that could occur as a result of a decision to terminate or not renew an advisory contract. In particular, the Board recognized that most shareholders have invested in the Fund on the strength of the Adviser's industry standing and reputation and with the expectation that the Adviser will have a continuing role in providing advisory services to the Fund. Thus, the Board's approval of the advisory contract reflected the fact that it is the shareholders who have effectively selected the Adviser by virtue of having invested in the Fund.

The Board 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. Not all of the factors and considerations identified above were necessarily relevant to the Fund, nor did the Board consider any one of them to be determinative. With respect to the factors that were relevant, the Board's decision to approve the contract reflects its determination that Federated's performance and actions provided a satisfactory basis to support the decision to continue the existing 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 from Federated's website at FederatedInvestors.com. To access this information from the "Products" section of the website, click on the "Prospectuses and Regulatory Reports" link under "Related Information," then select the appropriate link opposite the name of the Fund; or select the name of the Fund and from the Fund's page, click on the "Prospectuses and Regulatory Reports" link. Form N-PX filings are also available at 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" under "Related Information," then selecting the appropriate link opposite the name of the Fund; or select the name of the Fund and from the Fund's page, click on the "Portfolio Holdings" link.

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 (3/09)

Federated is a registered mark of Federated Investors, Inc. 2009 (c)Federated Investors, Inc.

Federated
World-Class Investment Manager

Federated MDT Small Cap Growth Fund

Established 2005

A Portfolio of Federated MDT Series

SEMI-ANNUAL SHAREHOLDER REPORT

January 31, 2009

Class A Shares
Class B 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)		Year Ended July 31,				Period Ended
	1/31/2009		2008		2007	1	7/31/2006	2
Net Asset Value, Beginning of Period	$11.57		$12.95		$10.59		$10.00
Income From Investment Operations:
Net investment income (loss)	(0.04	)	(0.14	) 3	(0.14	) 3	(0.17	) 3
Net realized and unrealized gain (loss) on investments and foreign currency transactions	(4.58	)	(1.17	)	2.50		0.76
TOTAL FROM INVESTMENT OPERATIONS	(4.62	)	(1.31	)	2.36		0.59
Less Distributions:
Distributions from net realized gain on investments	- --		(0.07	)	- --		- --
Net Asset Value, End of Period	$ 6.95		$11.57		$12.95		$10.59
Total Return 4	(39.93	)%	(10.20	)%	22.29	%	5.90	%
Ratios to Average Net Assets:
Net expenses	1.75	% 5	1.75	%	1.75	%	2.02	% 5
Net investment income (loss)	(0.87	)% 5	(1.20	)%	(1.16	)%	(1.50	)% 5
Expense waiver/reimbursement 6	0.83	% 5	1.05	%	25.97	%	22.65	% 5
Supplemental Data:
Net assets, end of period (000 omitted)	$19,670		$31,874		$532		$157
Portfolio turnover	111	%	212	%	157	%	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 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 B Shares

(For a Share Outstanding Throughout Each Period)

	Six Months Ended (unaudited)		Period Ended
	1/31/2009		7/31/2008	1
Net Asset Value, Beginning of Period	$11.61		$11.26
Income From Investment Operations:
Net investment income (loss)	(0.12	)	(0.09	) 2
Net realized and unrealized gain (loss) on investments and foreign currency transactions	(4.54	)	0.44
TOTAL FROM INVESTMENT OPERATIONS	(4.66	)	0.35
Net Asset Value, End of Period	$ 6.95		$11.61
Total Return 3	(40.14	)%	3.11	%
Ratios to Average Net Assets:
Net expenses	2.50	% 4	2.50	% 4
Net investment income (loss)	(1.61	)% 4	(1.96	)% 4
Expense waiver/reimbursement 5	0.83	% 4	1.05	% 4
Supplemental Data:
Net assets, end of period (000 omitted)	$3,893		$9,811
Portfolio turnover	111	%	212	% 6

1 Reflects operations for the period from March 13, 2008 (date of initial investment) to July 31, 2008.

2 Per share number has 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 (loss) ratios shown above.

6 Portfolio turnover is calculated at the Fund level. Percentage indicated was calculated for the year ended July 31, 2008.

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)		Year Ended July 31,				Period Ended
	1/31/2009		2008		2007	1	7/31/2006	2
Net Asset Value, Beginning of Period	$11.32		$12.77		$10.52		$10.00
Income From Investment Operations:
Net investment income (loss)	(0.08	)	(0.22	) 3	(0.23	) 3	(0.26	) 3
Net realized and unrealized gain (loss) on investments and foreign currency transactions	(4.47	)	(1.16	)	2.48		0.78
TOTAL FROM INVESTMENT OPERATIONS	(4.55	)	(1.38	)	2.25		0.52
Less Distributions:
Distributions from net realized gain on investments	- --		(0.07	)	- --		- --
Net Asset Value, End of Period	$ 6.77		$11.32		$12.77		$10.52
Total Return 4	(40.19	)%	(10.89	)%	21.39	%	5.20	%
Ratios to Average Net Assets:
Net expenses	2.50	% 5	2.47	%	2.50	%	2.77	% 5
Net investment income (loss)	(1.63	)% 5	(1.93	)%	(1.92	)%	(2.25	)% 5
Expense waiver/reimbursement 6	0.83	% 5	1.07	%	27.07	%	25.65	% 5
Supplemental Data:
Net assets, end of period (000 omitted)	$3,471		$6,450		$702		$348
Portfolio turnover	111	%	212	%	157	%	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 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 (unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase or redemption payments; and (2) ongoing costs, including management fees and to the extent applicable, distribution (12b-1) fees and/or 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, 2008 to January 31, 2009.

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 8/1/2008	Ending Account Value 1/31/2009	Expenses Paid During Period 1
Actual:
Class A Shares	$1,000	$ 600.70	$ 7.06
Class B Shares	$1,000	$ 598.60	$10.07
Class C Shares	$1,000	$ 598.10	$10.07
Hypothetical (assuming a 5% return before expenses):
Class A Shares	$1,000	$1,016.38	$ 8.89
Class B Shares	$1,000	$1,012.60	$12.68
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 B Shares	2.50%
Class C Shares	2.50%

Portfolio of Investments Summary Table (unaudited)

At January 31, 2009, the Fund's industry composition ¹ was as follows:

Industry	Percentage of Total Net Assets
Software Packaged/Custom	9.7%
Biotechnology	6.5%
Undesignated Consumer Cyclicals	6.4%
Medical Supplies	4.9%
Defense Aerospace	4.8%
Miscellaneous Communications	4.2%
Home Health Care	4.1%
Telecommunication Equipment & Services	3.4%
Medical Technology	3.1%
Ethical Drugs	3.0%
Restaurant	2.4%
Specialty Chemicals	2.4%
Securities Brokerage	2.1%
Electrical Equipment	1.8%
Insurance Brokerage	1.7%
Food Wholesaling	1.6%
Grocery Chain	1.6%
Computer Services	1.5%
Cosmetics & Toiletries	1.5%
Clothing Stores	1.4%
Computer Peripherals	1.3%
Regional Bank	1.3%
Auto Original Equipment Manufacturer	1.2%
Discount Department Stores	1.2%
Electric Utility	1.2%
Electronic Instruments	1.2%
Other Communications Equipment	1.2%
Personnel Agency	1.2%
Railroad	1.2%
Semiconductor Distribution	1.2%
Services to Medical Professionals	1.2%
Airline - Regional	1.1%
Apparel	1.1%
Industry	Percentage of Total Net Assets
Electrical Test/Measuring Equipment	1.1%
Personal Loans	1.1%
Defense Electronics	1.0%
Other 2	10.8%
Cash Equivalents 3	2.3%
Other Assets and Liabilities--Net 4,5	0.0%
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.

5 Represents less than 0.1%.

Portfolio of Investments

January 31, 2009 (unaudited)

Shares				Value
		COMMON STOCKS--97.7%
		Airline - National--0.4%
30,217	1	UAL Corp.	$	285,248
		Airline - Regional--1.1%
23,823	1	Allegiant Travel Co.		851,910
		Advertising--0.1%
8,849		National CineMedia, Inc.		89,198
		Apparel--1.1%
12,519	1	Carter's, Inc.		212,698
11,665	1	G-III Apparel Group Ltd.		64,158
48,349	1	True Religion Apparel, Inc.		551,662
		TOTAL		828,518
		Auto Original Equipment Manufacturer--1.2%
34,229	1	Fuel Systems Solutions, Inc.		894,746
		Biotechnology--6.5%
52,615	1	Alkermes, Inc.		603,494
44,774	1	Emergent Biosolutions, Inc.		981,894
2,089	1	Idenix Pharmaceuticals, Inc.		12,137
9,403	1	Idera Pharmaceuticals, Inc.		65,821
20,919	1	InterMune, Inc.		239,313
32,084	1	Luminex Corp.		653,551
4,371	1	Martek Biosciences Corp.		115,613
19,383	1	Maxygen, Inc.		165,918
7,085		Medivation, Inc.		132,844
9,638	1	Nektar Therapeutics		39,612
4,343	1	Osiris Therapeutics, Inc.		87,077
147,025	1	Questcor Pharmaceuticals, Inc.		948,311
24,283	1	Regeneron Pharmaceuticals, Inc.		424,467
20,973	1	Sequenom, Inc.		464,762
		TOTAL		4,934,814
Shares				Value
		COMMON STOCKS--continued
		Building Materials--0.2%
10,788	1	Trex Co., Inc.	$	159,555
		Clothing Stores--1.4%
48,526		Buckle, Inc.		1,026,325
3,101	1	Children's Place Retail Stores, Inc.		58,330
		TOTAL		1,084,655
		Computer Networking--0.4%
21,642	1	NetScout Systems, Inc.		307,749
		Computer Peripherals--1.3%
40,633	1	Synaptics, Inc.		957,720
		Computer Services--1.5%
30,201	1	Stanley, Inc.		913,882
9,962		Syntel, Inc.		214,681
		TOTAL		1,128,563
		Contracting--0.5%
10,873	1	Baker Michael Corp.		380,120
		Cosmetics & Toiletries--1.5%
11,064	1	Chattem, Inc.		747,926
75,457	1	Sally Beauty Holdings, Inc.		356,912
		TOTAL		1,104,838
		Defense Aerospace--4.8%
45,723	1	AAR Corp.		829,415
26,899	1	Aerovironment, Inc.		996,877
28,466	1	Hawk Corp.		480,791
8,541	1	Teledyne Technologies, Inc.		238,038
24,236		Triumph Group, Inc.		1,097,406
		TOTAL		3,642,527
		Defense Electronics--1.0%
24,252	1	FLIR Systems, Inc.		605,572
11,253	1	La Barge, Inc.		124,571
		TOTAL		730,143
Shares				Value
		COMMON STOCKS--continued
		Discount Department Stores--1.2%
111,838	1	99 Cents Only Stores	$	937,202
		Diversified Leisure--0.1%
5,211	1	Bally Technologies, Inc.		105,210
		Electrical Test/Measuring Equipment--1.1%
43,948	1	Multi-Fineline Electronix, Inc.		814,356
		Electric Utility--1.2%
80,510	1	Pike Electric Corp.		905,738
		Electrical Equipment--1.8%
12,941		American Science & Engineering, Inc.		1,009,398
9,503		Franklin Electronics, Inc.		246,983
3,249	1	Powell Industries, Inc.		77,586
		TOTAL		1,333,967
		Electronic Instruments--1.2%
17,637	1	Axsys Technologies, Inc.		753,100
6,444		Computer Programs & Systems, Inc.		161,938
		TOTAL		915,038
		Ethical Drugs--3.0%
5,108	1	Auxilium Pharmaceutical, Inc.		156,100
28,702	1	Cubist Pharmaceuticals, Inc.		614,510
44,522	1	Matrixx Initiatives, Inc.		769,785
71,686	1	Noven Pharmaceuticals, Inc.		711,842
		TOTAL		2,252,237
		Financial Services--0.7%
33,803	1	CBIZ, Inc.		274,818
17,675	1	Riskmetrics Group, Inc.		227,301
		TOTAL		502,119
		Food Wholesaling--1.6%
30,103		Calavo Growers, Inc.		367,257
20,310		Nash Finch Co.		873,939
		TOTAL		1,241,196
Shares				Value
		COMMON STOCKS--continued
		Generic Drugs--0.6%
18,606	1	Xenoport, Inc.	$	485,989
		Grocery Chain--1.6%
46,379		Casey's General Stores, Inc.		985,554
8,823		Ruddick Corp.		212,193
		TOTAL		1,197,747
		Home Health Care--4.1%
13,002	1	Almost Family, Inc.		400,982
22,421	1	Amedisys, Inc.		924,418
35,909	1	Gentiva Health Services, Inc.		907,780
33,341	1	LHC Group, Inc.		887,204
		TOTAL		3,120,384
		Industrial Machinery--0.6%
46,234	1	Blount International, Inc.		387,441
2,323		Valmont Industries, Inc.		94,267
		TOTAL		481,708
		Insurance Brokerage--1.7%
42,267		AmTrust Financial Services, Inc.		347,012
24,918		Life Partners Holdings, Inc.		946,884
		TOTAL		1,293,896
		Internet Services--0.3%
34,111	1	EarthLink Network, Inc.		256,856
		Long-Term Care Centers--0.8%
53,810	1	Sun Healthcare Group, Inc.		609,667
		Machine Tools--0.4%
14,939	1	AZZ, Inc.		334,634
		Maritime--0.0%
1,525		TAL International Group, Inc.		15,982
Shares				Value
		COMMON STOCKS--continued
		Medical Supplies--4.9%
27,141	1	Emergency Medical Services Corp., Class A	$	909,766
17,597	1	Kensey Nash Corp.		363,730
51,084	1	Merit Medical Systems, Inc.		786,183
50,612	1	PetMed Express, Inc.		730,837
73,839	1	Quidel Corp.		908,220
		TOTAL		3,698,736
		Medical Technology--3.1%
63,022	1	Cyberonics, Inc.		969,909
2,666	1	Neogen Corp.		69,769
31,547	1	Rochester Medical Corp.		364,683
31,962	1	Thoratec Laboratories Corp.		925,939
		TOTAL		2,330,300
		Miscellaneous Communications--4.2%
28,233	1	Bankrate, Inc.		941,853
43,555		NTELOS Holdings Corp.		942,530
35,942		Shenandoah Telecommunications Co.		876,266
22,129	1	j2 Global Communications, Inc.		433,286
		TOTAL		3,193,935
		Multi-Industry Capital Good--0.8%
42,826	1	DXP Enterprises, Inc.		581,577
		Oil Service, Explore & Drill--0.0%
5,917	1	Matrix Services Co.		31,301
		Other Communications Equipment--1.2%
67,703	1	Syniverse Holdings, Inc.		918,053
		Packaged Foods--0.1%
5,583	1	United Natural Foods, Inc.		86,760
		Packaging & Containers--0.8%
72,849	1	Bway Holding Co.		616,303
Shares				Value
		COMMON STOCKS--continued
		Personal Loans--1.1%
12,889		Cash America International, Inc.	$	235,611
29,327	1	Ezcorp, Inc., Class A		397,967
14,332	1	First Cash Financial Services, Inc.		241,064
		TOTAL		874,642
		Personnel Agency--1.2%
59,615	1	Dyncorp International, Inc., Class A		896,610
		Railroad--1.2%
34,395	1	Genesee & Wyoming, Inc., Class A		934,512
		Recreational Goods--0.1%
12,204		Sport Supply Group, Inc.		98,364
		Recreational Vehicles--0.0%
145		Polaris Industries, Inc., Class A		3,084
		Regional Bank--1.3%
16,734		Bank of the Ozarks, Inc.		379,694
43,329	1	Oritani Financial Corp.		646,035
		TOTAL		1,025,729
		Restaurant--2.4%
27,529	1	CEC Entertainment, Inc.		642,527
75,705		CKE Restaurants, Inc.		628,352
15,147	1	Green Mountain Coffee, Inc.		579,524
		TOTAL		1,850,403
		Roofing & Wallboard--0.9%
53,737	1	Beacon Roofing Supply, Inc.		684,072
		Savings & Loan--0.6%
44,925	1	Investors Bancorp, Inc.		479,799
		Securities Brokerage--2.1%
40,261	1	Interactive Brokers Group, Inc., Class A		614,785
54,619	1	Knight Capital Group, Inc., Class A		984,781
		TOTAL		1,599,566
Shares				Value
		COMMON STOCKS--continued
		Semiconductor Distribution--1.2%
70,437	1	Tyler Technologies, Inc.	$	886,802
		Semiconductor Manufacturing--0.2%
5,558	1	NVE Corp.		180,524
		Services to Medical Professionals--1.2%
24,567	1	Genoptix, Inc.		832,821
18,429	1	eResearch Technology, Inc.		106,704
		TOTAL		939,525
		Shoes--0.7%
9,579	1	Deckers Outdoor Corp.		500,407
		Software Packaged/Custom--9.7%
55,651	1	ACI Worldwide, Inc.		945,511
53,526	1	CSG Systems International, Inc.		776,127
9,230	1	Concur Technologies, Inc.		227,889
14,773	1	ManTech International Corp., Class A		792,276
921	1	OPNET Technologies, Inc.		7,552
29,922		Pegasystems, Inc.		406,042
143,876	1	S1 Corp.		959,653
36,846	1	Solera Holdings, Inc.		887,620
126,080	1	TeleCommunication Systems, Inc., Class A		902,733
10,376	1	VASCO Data Security International, Inc.		70,349
6,479	1	Vocus, Inc.		98,870
43,064	1	Websense, Inc.		482,317
109,113	1	Wind River Systems, Inc.		869,631
		TOTAL		7,426,570
		Specialty Chemicals--2.4%
65,196	1	Calgon Carbon Corp.		819,514
24,946		Chemed Corp.		1,001,083
		TOTAL		1,820,597
Shares				Value
		COMMON STOCKS--continued
		Specialty Retailing--0.3%
5,755	1	Titan Machinery, Inc.	$	58,413
4,634	1	Tractor Supply Co.		156,212
		TOTAL		214,625
		Telecommunication Equipment & Services--3.4%
5,800		Applied Signal Technology, Inc.		101,732
12,298	1	Bigband Networks, Inc.		62,105
20,114	1	Comtech Telecommunications Corp.		780,423
27,619	1	GeoEye, Inc.		476,428
12,343	1	NeuStar, Inc., Class A		168,112
56,597	1	Neutral Tandem, Inc.		896,496
16,610	1	Switch & Data Facilities Co.		114,277
		TOTAL		2,599,573
		Truck Manufacturing--0.3%
43,246	1	Force Protection, Inc.		259,908
		Undesignated Consumer Cyclicals--6.4%
21,922	1	American Public Education, Inc.		858,466
56,942	1	Corinthian Colleges, Inc.		1,063,677
25,247		Corporate Executive Board Co.		509,989
4,918	1	Geo Group, Inc.		72,786
55,186	1	Hillenbrand, Inc.		1,020,389
37,586	1	Kendle International, Inc.		717,893
13,351	1	Lincoln Educational Services		195,192
26,541	1	Sykes Enterprises, Inc.		443,500
		TOTAL		4,881,892
		Undesignated Consumer Staples--0.7%
21,554	1	USANA, Inc.		500,268
		Undesignated Health--0.2%
16,979	1	HealthSouth Corp.		168,771
		TOTAL COMMON STOCKS (IDENTIFIED COST $83,158,892)		74,467,438
Shares				Value
		MUTUAL FUND--2.3%
1,709,949	2,3	Prime Value Obligations Fund, Institutional Shares, 1.75% (AT NET ASSET VALUE)	$	1,709,949
		TOTAL INVESTMENTS--100.0% (IDENTIFIED COST $84,868,841) 4		76,177,387
		OTHER ASSETS AND LIABILITIES - NET--0.0% 5		18,605
		TOTAL NET ASSETS--100%	$	76,195,992

1 Non-income-producing security.

2 Affiliated company.

3 7-Day net yield.

4 Also represent cost for federal tax purposes.

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

Note: The categories of investments are shown as a percentage of total net assets at January 31, 2009.

Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below:

Level 1--quoted prices in active markets for identical securities

Level 2--other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

Level 3--significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used, as of January 31, 2009, in valuing the Fund's assets carried at fair value:

Valuation Inputs	Investments in Securities
Level 1--Quoted Prices and Investments in Mutual Funds	$76,177,387
Level 2--Other Significant Observable Inputs	- --
Level 3--Significant Unobservable Inputs	- --
TOTAL	$76,177,387

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

January 31, 2009 (unaudited)

Assets:
Total investments in securities, at value including $1,709,949 of investments in an affiliated issuer (Note 5) (identified cost $84,868,841)			$	76,177,387
Cash				31,768
Income receivable				18,414
Receivable for investments sold				2,119,812
Receivable for shares sold				422,650
TOTAL ASSETS				78,770,031
Liabilities:
Payable for investments purchased	$	2,110,376
Payable for shares redeemed		350,222
Payable for distribution services fee (Note 5)		5,217
Payable for shareholder services fee (Note 5)		14,922
Accrued expenses		93,302
TOTAL LIABILITIES				2,574,039
Net assets for 10,917,583 shares outstanding			$	76,195,992
Net Assets Consist of:
Paid-in capital			$	191,353,806
Net unrealized depreciation of investments and translation of assets and liabilities in foreign currency				(8,691,336	)
Accumulated net realized loss on investments				(106,104,046	)
Accumulated net investment income (loss)				(362,432	)
TOTAL NET ASSETS			$	76,195,992

Statement of Assets and Liabilities-continued

Net Asset Value, Offering Price and Redemption Proceeds Per Share
Institutional Shares:
Net asset value per share ($49,161,481 ÷ 7,013,691 shares outstanding), no par value, unlimited shares authorized	$7.01
Offering price per share	$7.01
Redemption proceeds per share	$7.01
Class A Shares:
Net asset value per share ($19,669,994 ÷ 2,830,869 shares outstanding), no par value, unlimited shares authorized	$6.95
Offering price per share (100/94.50 of $6.95)	$7.35
Redemption proceeds per share	$6.95
Class B Shares:
Net asset value per share ($3,893,028 ÷ 560,467 shares outstanding), no par value, unlimited shares authorized	$6.95
Offering price per share	$6.95
Redemption proceeds per share (94.50/100 of $6.95)	$6.57
Class C Shares:
Net asset value per share ($3,471,489 ÷ 512,556 shares outstanding), no par value, unlimited shares authorized	$6.77
Offering price per share	$6.77
Redemption proceeds per share (99.00/100 of $6.77)	$6.70

See Notes which are an integral part of the Financial Statements

Statement of Operations

Six Months Ended January 31, 2009 (unaudited)

Investment Income:
Dividends (including $17,738 received from an affiliated issuer) (Note 5)							$	378,840
Expenses:
Investment adviser fee (Note 5)				$	501,540
Administrative personnel and services fee (Note 5)					136,110
Custodian fees					28,494
Transfer and dividend disbursing agent fees and expenses					241,442
Directors'/Trustees' fees					972
Auditing fees					10,724
Legal fees					3,368
Portfolio accounting fees					39,985
Distribution services fee--Class B Shares (Note 5)					23,588
Distribution services fee--Class C Shares (Note 5)					17,812
Shareholder services fee--Class A Shares (Note 5)					30,714
Shareholder services fee--Class B Shares (Note 5)					7,863
Shareholder services fee--Class C Shares (Note 5)					5,799
Account administration fee--Class A Shares					161
Account administration fee--Class C Shares					138
Share registration costs					27,203
Printing and postage					23,811
Insurance premiums					2,398
Miscellaneous					2,301
TOTAL EXPENSES					1,104,423
Waivers and Reimbursement (Note 5):
Waiver/reimbursement of investment adviser fee	$	(336,876	)
Waiver of administrative personnel and services fee		(27,289	)
TOTAL WAIVERS AND REIMBURSEMENT					(364,165	)
Net expenses								740,258
Net investment income (loss)								(361,418	)
Realized and Unrealized Loss on Investments and Foreign Currency Transactions:
Net realized loss on investments								(32,005,906	)
Net change in unrealized appreciation of investments and translation of assets and liabilities in foreign currency								(12,580,575	)
Net realized and unrealized loss on investments and foreign currency transactions								(44,586,481	)
Change in net assets resulting from operations							$	(44,947,899	)

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

		Six Months Ended (unaudited) 1/31/2009			Year Ended 7/31/2008
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	(361,418	)	$	(628,923	)
Net realized loss on investments		(32,005,906	)		(11,971,658	)
Net change in unrealized appreciation/depreciation of investments and translation of assets and liabilities in foreign currency		(12,580,575	)		9,435,934
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		(44,947,899	)		(3,164,647	)
Distributions to Shareholders:
Distributions from net realized gain on investments
Institutional Shares		- --			(155,811	)
Class A Shares		- --			(11,057	)
Class C Shares		- --			(6,609	)
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS		- --			(173,477	)
Share Transactions:
Proceeds from sale of shares		31,141,596			73,388,956
Proceeds from shares issued in connection with the tax-free transfer of assets from Federated Technology Fund		- --			44,263,203
Net asset value of shares issued to shareholders in payment of distributions declared		- --			146,644
Cost of shares redeemed		(20,341,396	)		(21,595,763	)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		10,800,200			96,203,040
Change in net assets		(34,147,699	)		92,864,916
Net Assets:
Beginning of period		110,343,691			17,478,775
End of period (including accumulated net investment income (loss) of $(362,432) and $(1,014), respectively)	$	76,195,992		$	110,343,691

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

January 31, 2009 (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 nine 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. Each portfolio pays its own expenses. The Fund offers four classes of shares: Institutional Shares, Class A Shares, Class B 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 Institutional Shares are presented separately. The investment objective of the Fund is long-term capital appreciation.

Effective March 13, 2008, the Fund began offering Class B Shares.

On March 14, 2008, the Fund received assets from Federated Technology Fund as the result of a tax-free reorganization, as follows:

Shares of the Fund Issued	Federated Technology Fund Net Assets Received	Unrealized Depreciation 1	Net Assets of the Fund Immediately Prior to Combination	Net Assets of the Fund Immediately After Combination
3,954,962	$44,263,203	$(6,136,744)	$40,850,828	$85,114,031

1 Unrealized Depreciation is included in the Federated Technology Fund Net Assets Received amount shown above.

2. SIGNIFICANT ACCOUNTING POLICIES

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

Investment Valuation

In calculating its net asset value (NAV), the Fund generally values investments as follows:

• Equity securities listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market.
• Shares of other mutual funds are valued based upon their reported NAVs.
• Fixed-income securities acquired with remaining maturities greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Board of Trustees (the "Trustees").
• Fixed-income securities acquired with remaining maturities of 60 days or less are valued at their cost (adjusted for the accretion of any discount or amortization of any premium).
• Derivative contracts listed on exchanges are valued at their reported settlement or closing price.
• Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Trustees.

If the Fund cannot obtain a price or price evaluation from a pricing service for an investment, the Fund may attempt to value the investment based upon the mean of bid and asked quotations or fair value the investment based on price evaluations, from one or more dealers. If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could purchase or sell an investment at the price used to calculate the Fund's NAV.

Fair Valuation and Significant Events Procedures

The Trustees have authorized the use of pricing services to provide evaluations of the current fair value of certain investments for purposes of calculating the NAV. Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a "bid" evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and asked for the investment (a "mid" evaluation). The Fund normally uses bid evaluations for U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for other types of fixed-income securities and OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Trustees.

The Trustees also have adopted procedures requiring an investment to be priced at its fair value whenever the Adviser determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment's value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:

• With respect to securities traded in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures or options contracts;
• With respect to price evaluations of fixed-income securities determined before the close of regular trading on the NYSE, actions by the Federal Reserve Open Market Committee and other significant trends in U.S. fixed-income markets;
• Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; and
• Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, a natural disaster affecting the issuer's operations or regulatory changes or market developments affecting the issuer's industry.

The Trustees have approved the use of a pricing service to determine the fair value of equity securities traded principally in foreign markets when the Adviser determines that there has been a significant trend in the U.S. equity markets or in index futures trading. For other significant events, the Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Fund will determine the fair value of the investment using another method approved by the Trustees.

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

Investment transactions are accounted for on a trade-date basis. Realized gains and losses from investment transactions are recorded on an identified cost basis. Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Foreign dividends are recorded on the ex-dividend date or when the Fund is informed of the ex-dividend date. Distributions of net investment income, if any, are declared and paid 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 may bear certain expenses unique to that class such as account administration, distribution services 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. The Fund complies with the provisions of Financial Accounting Standards Board (FASB) Interpretation No. 48 (FIN 48), "Accounting for Uncertainty in Income Taxes." As of and during the six months ended January 31, 2009, the Fund did not have a liability for any uncertain tax positions. The Fund recognizes interest and penalties, if any, related to tax liabilities as income tax expense in the Statement of Operations. As of January 31, 2009, tax years 2006 through 2008 remain subject to examination by the Fund's major tax jurisdictions, which include the United States of America and the Commonwealth of Massachusetts.

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.

Foreign Currency Translation

The accounting records of the Fund are maintained in U.S. dollars. All assets and liabilities denominated in foreign currencies (FCs) are translated into U.S. dollars based on the rates of exchange of such currencies against U.S. dollars on the date of valuation. Purchases and sales of securities, income and expenses are translated at the rate of exchange quoted on the respective date that such transactions are recorded. The Fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.

Reported net realized foreign exchange gains or losses arise from sales of portfolio securities, sales and maturities of short-term securities, sales of FCs, currency gains or losses realized between the trade and settlement dates on securities transactions, the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund's books, and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities other than investments in securities at fiscal year end, resulting from changes in the exchange rate.

Other

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

3. SHARES OF BENEFICIAL INTEREST

The following tables summarize share activity:

	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Institutional Shares:	Shares			Amount		Shares			Amount
Shares sold	3,174,513		$	25,932,509		4,827,064		$	59,077,425
Shares issued to shareholders in payment of distributions declared	- --			- --		10,017			133,229
Shares redeemed	(1,497,473	)		(12,813,723	)	(747,875	)		(8,924,748	)
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS	1,677,040		$	13,118,786		4,089,206		$	50,285,906
	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Class A Shares:	Shares			Amount		Shares			Amount
Shares sold	467,548		$	4,012,434		1,014,861		$	12,172,465
Shares issued in connection with tax-free transfer of assets from Federated Technology Fund	- --			- --		1,965,099			21,986,533
Shares issued to shareholders in payment of distributions declared	- --			- --		766			10,117
Shares redeemed	(391,711	)		(3,363,136	)	(266,794	)		(3,116,808	)
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS	75,837		$	649,298		2,713,932		$	31,052,307
	Six Months Ended 1/31/2009					Period Ended 7/31/2008 1
Class B Shares:	Shares			Amount		Shares			Amount
Shares sold	40,070		$	396,115		12,136		$	147,178
Shares issued to shareholders in payment of distributions declared	- --			- --		1,540,719			17,345,297
Shares redeemed	(324,623	)		(2,940,937	)	(707,835	)		(8,399,050	)
NET CHANGE RESULTING FROM CLASS B SHARE TRANSACTIONS	(284,553	)	$	(2,544,822	)	845,020		$	9,093,425

1 Reflects operations for the period from March 13, 2008 (date of initial investment) to July 31, 2008.

	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Class C Shares:	Shares			Amount		Shares			Amount
Shares sold	93,549		$	800,538		164,693		$	1,991,888
Shares issued in connection with tax-free transfer of assets from Federated Technology Fund	- --			- --		449,144			4,931,373
Shares issued to shareholders in payment of distributions declared	- --			- --		254			3,298
Shares redeemed	(150,654	)		(1,223,600	)	(99,359	)		(1,155,157	)
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS	(57,105	)	$	(423,062	)	514,732		$	5,771,402
NET CHANGE RESULTING FROM SHARE TRANSACTIONS	1,411,219		$	10,800,200		8,162,890		$	96,203,040

4. FEDERAL TAX INFORMATION

At January 31, 2009, the cost of investments for federal tax purposes was $84,868,841. The net unrealized depreciation of investments for federal tax purposes excluding any unrealized appreciation resulting from foreign currency transactions was $8,691,454. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $2,138,489 and net unrealized depreciation from investments for those securities having an excess of cost over value of 10,829,943.

At July 31, 2008, the Fund had a capital loss carryforward of $62,019,299 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 as follows:

Expiration Year	Expiration Amount
2009	$59,356,831
2010	$ 2,459,915
2016	$ 202,553

As a result of the tax-free transfer of assets from Federated Technology Fund, the use of certain capital loss carryforwards listed above may be limited.

5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated MDTA LLC is the Fund's investment adviser (the "Adviser"). The advisory agreement between the Fund and the Adviser provides for an annual fee equal to 1.15% of the Fund's average daily net assets. Prior to December 8, 2008, the Adviser agreed to waive all or a portion of the advisory fee and/or reimburse certain operating expenses (excluding interest, taxes and brokerage commissions) in order to contractually limit the Fund's aggregate annual operating expenses to no more than the following annual percentages for each Class of the Fund based on average daily net assets:

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

In addition, subject to the terms described in the Expense Limitation note, the Adviser may voluntarily choose to waive any additional portion of its fee. The Adviser can modify or terminate this voluntary waiver at any time at its sole discretion. For the six months ended January 31, 2009, the Adviser waived $336,263 of its fee.

Administrative Fee

Federated Administrative Services (FAS), under the Administrative Services 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. Subject to the terms described in the Expense Limitation note, 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, 2009, the net fee paid to FAS was 0.250% of average daily net assets of the Fund. The Fund is currently being charged the minimum administrative fee; therefore the fee as a percentage of average daily net assets is greater than the amounts presented in the chart above. FAS waived $27,289 of its fee.

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 B 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 at the following percentages of average daily net assets annually, to compensate FSC:

Share Class Name	Percentage of Average Daily Net Assets of Class
Class A Shares	0.05%
Class B Shares	0.75%
Class C Shares	0.75%

Subject to the terms described in the Expense Limitation note, 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, 2009, FSC retained $4,815 of fees paid by the Fund. For the six months ended January 31, 2009, the Fund's Class A Shares did not incur a distribution services fee; however it may begin to incur this fee upon approval of the Trustees. On November 15, 2007, the Trustees approved an amendment to the Plan to reduce the distribution services fee for the Fund's Class A Shares from 0.25% to 0.05%. The amendment to the Plan became effective for the Fund on March 31, 2008.

Sales Charges

Front-end sales charges and contingent deferred sales charges (CDSC) do not represent expenses of the Fund. They are deducted from the proceeds of sales of Fund shares prior to investment or from redemption proceeds prior to remittance, as applicable. For the six months ended January 31, 2009, FSC retained $965 in sales charges from the sale of Class A Shares. FSC also retained $1,838 of CDSC relating to redemptions of Class C Shares.

Shareholder Services Fee

The Fund may pay fees (Service Fees) up to 0.25% of the average daily net assets of the Fund's Class A Shares, Class B Shares and Class C Shares to financial intermediaries or to Federated Shareholder Services Company (FSSC) for providing services to shareholders and maintaining shareholder accounts. Subject to the terms described in the Expense Limitation note, FSSC may voluntarily reimburse the Fund for shareholder services fees. This voluntary reimbursement can be modified or terminated at any time. For the six months ended January 31, 2009, FSSC received $315 of fees paid by the Fund.

Expense Limitation

The Adviser and its affiliates (which may include FSC, FAS and FSSC) have voluntarily agreed to waive their fees and/or reimburse expenses so that the total operating expenses (as shown in the financial highlights) paid by the Fund's Institutional Shares, Class A Shares, Class B Shares and Class C Shares (after the voluntary waivers and reimbursements) will not exceed 1.50%, 1.75%, 2.50% and 2.50%, respectively, for the fiscal year ending July 31, 2009. Although these actions are voluntary, the Adviser and its affiliates have agreed to continue these waivers and/or reimbursements at least through September 30, 2009.

General

Certain 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 affiliated mutual funds. For the six months ended January 31, 2009, the Adviser reimbursed $613. Transactions with the affiliated company during the six months ended January 31, 2009 were as follows:

Affiliate	Balance of Shares Held 7/31/2008	Purchases/ Additions	Sales/ Reductions	Balance of Shares Held 1/31/2009	Value	Dividend Income
Prime Value Obligations Fund, Institutional Shares	1,320,459	16,011,023	15,621,533	1,709,949	$1,709,949	$17,738

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, 2009, were as follows:

Purchases	$	108,208,191
Sales	$	97,877,532

7. LINE OF CREDIT

The Fund participates in a $100,000,000 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, 2009, there were no outstanding loans. During the six months ended January 31, 2009, the Fund did not utilize the LOC.

8. INTERFUND LENDING

Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (SEC), the Fund, along with other funds advised by subsidiaries of Federated Investors, Inc., may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from other participating affiliated funds. As of January 31, 2009, there were no outstanding loans. During the six months ended January 31, 2009, the program was not utilized.

9. LEGAL PROCEEDINGS

Since October 2003, Federated Investors, Inc. and related entities (collectively, "Federated") and various Federated funds ("Federated Funds") have been 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 Federated Funds from the 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 entities have also been named as defendants in several additional lawsuits that 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 Federated Funds retained the law firm of Dickstein Shapiro LLP to represent the Federated Funds in these lawsuits. Federated and the Federated Funds, and their respective counsel have been defending this litigation, and none of the Federated Funds remains a defendant in any of the lawsuits (though some could potentially receive any recoveries as nominal defendants). 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 Federated 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 Federated Fund redemptions, reduced sales of Federated Fund shares or other adverse consequences for the Federated Funds.

Evaluation and Approval of Advisory
Contract - May 2008

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

The Fund's Board reviewed the Fund's investment advisory contract at meetings held in May 2008. The Board's decision regarding the contract reflects the exercise of its business judgment on whether to continue the existing arrangements.

In this connection, the Federated funds' Board had previously appointed 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 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. The Board considered that evaluation, along with other information, in deciding to approve the advisory contract.

During its review of the contract, the Board considered compensation and benefits received by the Adviser. This included the fees received for services provided to the Fund by other entities in the Federated organization and research services received by the Adviser from brokers that execute Federated fund trades, as well as advisory fees. The Board is also familiar with and considered 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 a fund grows larger; any indirect benefits that may accrue to the Adviser and its affiliates as a result of the Adviser's relationship with a 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 what might be viewed as like services, and the cost 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 for supplying such services. The Board was aware of these factors and was guided by them in its review of the Fund's advisory contract to the extent it considered them to be appropriate and relevant, as discussed further below.

The Board considered and weighed these circumstances in light of its substantial accumulated experience in governing the Fund and working with Federated on matters relating to the Federated funds, and was assisted in its deliberations by independent legal counsel. Throughout the year, the Board has requested and received substantial and detailed information about the Fund and the Federated organization that was in addition to the extensive materials that comprise and accompany the Senior Officer's evaluation. Federated provided much of this information at each regular meeting of the Board, and furnished additional reports in connection with the particular meeting at which the Board's formal review of the advisory contract occurred. Between regularly scheduled meetings, the Board also received information on particular matters as the need arose. Thus, 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 short- and long-term performance (in absolute terms, both on a gross basis and net of expenses, as well as in relationship to its particular investment program and certain competitor or "peer group" funds and/or other benchmarks, as appropriate), and comments on the reasons for performance; the Fund's investment objectives; the Fund's expenses (including the advisory fee 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 use and allocation of brokerage commissions derived from trading the Fund's portfolio securities (if any); and the nature, quality and extent of the advisory and other services provided to the Fund by the Adviser and its affiliates. The Board also considered the preferences and expectations of Fund shareholders 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 performance and 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 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 competes. The Fund's ability to deliver competitive performance when compared to its peer group was a useful indicator of how the Adviser is executing 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 continuation of the advisory contract. In this regard, the Senior Officer has 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 include, but are not limited to, different types of targeted investors; being subject to different laws and regulations; different legal structures; different average account sizes; different associated costs; and different 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, using data supplied by independent fund ranking organizations, regarding the performance of, and fees charged by, other mutual funds, noting his view that comparisons to fund peer groups are highly important in judging the reasonableness of proposed fees. He also observed that certain funds may exhibit important differences in their objectives and management techniques when compared to other funds placed in the same peer group by ranking organizations, noting in this connection that the Fund's quantitative investment program is of such a type.

For the one-year period ending December 31, 2007, the Fund's performance was above the median of the relevant peer group. In addition, the Board was informed by the Adviser that, for the same period, the Fund outperformed its benchmark index for the one-year period.

The Board also received financial information about Federated, including reports on the compensation and benefits Federated derived from its relationships with the Federated funds. These reports covered 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 discussed any indirect benefit Federated may derive from its receipt of research services from brokers who execute Federated fund trades. In addition, the Board considered the fact that, in order for a fund to be competitive in the marketplace, Federated and its affiliates frequently waived fees and/or reimbursed expenses and have disclosed to fund investors and/or indicated to the Board their intention to do so in the future, where appropriate.

Federated furnished reports, requested by the Senior Officer, that reported revenues on a fund-by-fund basis and made estimates of the allocation of expenses on a fund-by-fund basis, using allocation methodologies specified by the Senior Officer. The Senior Officer noted that, although they may apply consistent allocation processes, the inherent difficulties in allocating costs (and the unavoidable arbitrary aspects of that exercise) and the lack of consensus on how to allocate those costs may render such allocation reports unreliable. The allocation reports were considered in the analysis by the Board but were determined to be of limited use.

The Board and the Senior Officer also reviewed a report compiled by Federated comparing profitability information for Federated to other publicly held fund management companies. In this regard, the Senior Officer noted the limited availability of such information, but nonetheless concluded that Federated's profit margins did not appear to be excessive and the Board agreed.

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 and long-term investments in areas that support all of the Federated funds, such as personnel and processes for the portfolio management, compliance, and risk management functions; and systems technology; and that the benefits of these efforts (as well as 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 (as discussed in the Senior Officer's evaluation) 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.

It was noted in the materials for the Board meeting that for the Fund's most recently completed fiscal year, the Fund's investment advisory fee was waived in its entirety. The Board reviewed the contractual fee rate and other expenses of the Fund with the Adviser and was satisfied that the overall expense structure of the Fund remained competitive.

The Senior Officer's evaluation noted his belief that the information and observations contained in his evaluation supported a finding that the proposed management fees are reasonable, and that Federated appeared to provide appropriate administrative services to the Fund for the fees paid. Under these circumstances, no changes were recommended to, and no objection was raised to, the continuation of the Fund's advisory contract. The Board concluded that the nature, quality and scope of services provided the Fund by the Adviser and its affiliates were satisfactory.

In its decision to continue an existing investment advisory contract, the Board was mindful of the potential disruptions of the Fund's operations and various risks, uncertainties and other effects that could occur as a result of a decision to terminate or not renew an advisory contract. In particular, the Board recognized that most shareholders have invested in the Fund on the strength of the Adviser's industry standing and reputation and with the expectation that the Adviser will have a continuing role in providing advisory services to the Fund. Thus, the Board's approval of the advisory contract reflected the fact that it is the shareholders who have effectively selected the Adviser by virtue of having invested in the Fund.

The Board 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. Not all of the factors and considerations identified above were necessarily relevant to the Fund, nor did the Board consider any one of them to be determinative. With respect to the factors that were relevant, the Board's decision to approve the contract reflects its determination that Federated's performance and actions provided a satisfactory basis to support the decision to continue the existing 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 from Federated's website at FederatedInvestors.com. To access this information from the "Products" section of the website, click on the "Prospectuses and Regulatory Reports" link under "Related Information," then select the appropriate link opposite the name of the Fund; or select the name of the Fund and from the Fund's page, click on the "Prospectuses and Regulatory Reports" link. Form N-PX filings are also available at 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" under "Related Information," then selecting the appropriate link opposite the name of the Fund; or select the name of the Fund and from the Fund's page, click on the "Portfolio Holdings" link.

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 31421R676
Cusip 31421R767

36367 (3/09)

Federated is a registered mark of Federated Investors, Inc. 2009 (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, 2009

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,				Period Ended
	1/31/2009		2008		2007	1	7/31/2006	2
Net Asset Value, Beginning of Period	$11.66		$13.02		$10.61		$10.00
Income From Investment Operations:
Net investment income (loss)	(0.03	)	(0.11	) 3	(0.13	) 3	(0.13	) 3
Net realized and unrealized gain (loss) on investments and foreign currency transactions	(4.62	)	(1.18	)	2.54		0.74
TOTAL FROM INVESTMENT OPERATIONS	(4.65	)	(1.29	)	2.41		0.61
Less Distributions:
Distributions from net realized gain on investments	- --		(0.07	)	- --		- --
Net Asset Value, End of Period	$7.01		$11.66		$13.02		$10.61
Total Return 4	(39.88	)%	(9.99	)%	22.71	%	6.10	%
Ratios to Average Net Assets:
Net expenses	1.50	% 5	1.50	%	1.50	%	1.77	% 5
Net investment income (loss)	(0.64	)% 5	(0.91	)%	(1.03	)%	(1.25	)% 5
Expense waiver/reimbursement 6	0.83	% 5	1.09	%	5.58	%	25.65	% 5
Supplemental Data:
Net assets, end of period (000 omitted)	$49,161		$62,209		$16,245		$227
Portfolio turnover	111	%	212	%	157	%	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 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 (unaudited)

As a shareholder of the Fund, you incur ongoing costs, including management fees and to the extent applicable, distribution (12b-1) fees and/or 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, 2008 to January 31, 2009.

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 8/1/2008	Ending Account Value 1/31/2009	Expenses Paid During Period 1
Actual	$1,000	$ 601.20	$6.05
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 (unaudited)

At January 31, 2009, the Fund's industry composition ¹ was as follows:

Industry	Percentage of Total Net Assets
Software Packaged/Custom	9.7%
Biotechnology	6.5%
Undesignated Consumer Cyclicals	6.4%
Medical Supplies	4.9%
Defense Aerospace	4.8%
Miscellaneous Communications	4.2%
Home Health Care	4.1%
Telecommunication Equipment & Services	3.4%
Medical Technology	3.1%
Ethical Drugs	3.0%
Restaurant	2.4%
Specialty Chemicals	2.4%
Securities Brokerage	2.1%
Electrical Equipment	1.8%
Insurance Brokerage	1.7%
Food Wholesaling	1.6%
Grocery Chain	1.6%
Computer Services	1.5%
Cosmetics & Toiletries	1.5%
Clothing Stores	1.4%
Computer Peripherals	1.3%
Regional Bank	1.3%
Auto Original Equipment Manufacturer	1.2%
Discount Department Stores	1.2%
Electric Utility	1.2%
Electronic Instruments	1.2%
Other Communications Equipment	1.2%
Personnel Agency	1.2%
Railroad	1.2%
Semiconductor Distribution	1.2%
Services to Medical Professionals	1.2%
Airline - Regional	1.1%
Apparel	1.1%
Industry	Percentage of Total Net Assets
Electrical Test/Measuring Equipment	1.1%
Personal Loans	1.1%
Defense Electronics	1.0%
Other 2	10.8%
Cash Equivalents 3	2.3%
Other Assets and Liabilities--Net 4,5	0.0%
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.

5 Represents less than 0.1%.

Portfolio of Investments

January 31, 2009 (unaudited)

Shares				Value
		COMMON STOCKS--97.7%
		Airline - National--0.4%
30,217	1	UAL Corp.	$	285,248
		Airline - Regional--1.1%
23,823	1	Allegiant Travel Co.		851,910
		Advertising--0.1%
8,849		National CineMedia, Inc.		89,198
		Apparel--1.1%
12,519	1	Carter's, Inc.		212,698
11,665	1	G-III Apparel Group Ltd.		64,158
48,349	1	True Religion Apparel, Inc.		551,662
		TOTAL		828,518
		Auto Original Equipment Manufacturer--1.2%
34,229	1	Fuel Systems Solutions, Inc.		894,746
		Biotechnology--6.5%
52,615	1	Alkermes, Inc.		603,494
44,774	1	Emergent Biosolutions, Inc.		981,894
2,089	1	Idenix Pharmaceuticals, Inc.		12,137
9,403	1	Idera Pharmaceuticals, Inc.		65,821
20,919	1	InterMune, Inc.		239,313
32,084	1	Luminex Corp.		653,551
4,371	1	Martek Biosciences Corp.		115,613
19,383	1	Maxygen, Inc.		165,918
7,085		Medivation, Inc.		132,844
9,638	1	Nektar Therapeutics		39,612
4,343	1	Osiris Therapeutics, Inc.		87,077
147,025	1	Questcor Pharmaceuticals, Inc.		948,311
24,283	1	Regeneron Pharmaceuticals, Inc.		424,467
20,973	1	Sequenom, Inc.		464,762
		TOTAL		4,934,814
Shares				Value
		COMMON STOCKS--continued
		Building Materials--0.2%
10,788	1	Trex Co., Inc.	$	159,555
		Clothing Stores--1.4%
48,526		Buckle, Inc.		1,026,325
3,101	1	Children's Place Retail Stores, Inc.		58,330
		TOTAL		1,084,655
		Computer Networking--0.4%
21,642	1	NetScout Systems, Inc.		307,749
		Computer Peripherals--1.3%
40,633	1	Synaptics, Inc.		957,720
		Computer Services--1.5%
30,201	1	Stanley, Inc.		913,882
9,962		Syntel, Inc.		214,681
		TOTAL		1,128,563
		Contracting--0.5%
10,873	1	Baker Michael Corp.		380,120
		Cosmetics & Toiletries--1.5%
11,064	1	Chattem, Inc.		747,926
75,457	1	Sally Beauty Holdings, Inc.		356,912
		TOTAL		1,104,838
		Defense Aerospace--4.8%
45,723	1	AAR Corp.		829,415
26,899	1	Aerovironment, Inc.		996,877
28,466	1	Hawk Corp.		480,791
8,541	1	Teledyne Technologies, Inc.		238,038
24,236		Triumph Group, Inc.		1,097,406
		TOTAL		3,642,527
		Defense Electronics--1.0%
24,252	1	FLIR Systems, Inc.		605,572
11,253	1	La Barge, Inc.		124,571
		TOTAL		730,143
Shares				Value
		COMMON STOCKS--continued
		Discount Department Stores--1.2%
111,838	1	99 Cents Only Stores	$	937,202
		Diversified Leisure--0.1%
5,211	1	Bally Technologies, Inc.		105,210
		Electrical Test/Measuring Equipment--1.1%
43,948	1	Multi-Fineline Electronix, Inc.		814,356
		Electric Utility--1.2%
80,510	1	Pike Electric Corp.		905,738
		Electrical Equipment--1.8%
12,941		American Science & Engineering, Inc.		1,009,398
9,503		Franklin Electronics, Inc.		246,983
3,249	1	Powell Industries, Inc.		77,586
		TOTAL		1,333,967
		Electronic Instruments--1.2%
17,637	1	Axsys Technologies, Inc.		753,100
6,444		Computer Programs & Systems, Inc.		161,938
		TOTAL		915,038
		Ethical Drugs--3.0%
5,108	1	Auxilium Pharmaceutical, Inc.		156,100
28,702	1	Cubist Pharmaceuticals, Inc.		614,510
44,522	1	Matrixx Initiatives, Inc.		769,785
71,686	1	Noven Pharmaceuticals, Inc.		711,842
		TOTAL		2,252,237
		Financial Services--0.7%
33,803	1	CBIZ, Inc.		274,818
17,675	1	Riskmetrics Group, Inc.		227,301
		TOTAL		502,119
		Food Wholesaling--1.6%
30,103		Calavo Growers, Inc.		367,257
20,310		Nash Finch Co.		873,939
		TOTAL		1,241,196
Shares				Value
		COMMON STOCKS--continued
		Generic Drugs--0.6%
18,606	1	Xenoport, Inc.	$	485,989
		Grocery Chain--1.6%
46,379		Casey's General Stores, Inc.		985,554
8,823		Ruddick Corp.		212,193
		TOTAL		1,197,747
		Home Health Care--4.1%
13,002	1	Almost Family, Inc.		400,982
22,421	1	Amedisys, Inc.		924,418
35,909	1	Gentiva Health Services, Inc.		907,780
33,341	1	LHC Group, Inc.		887,204
		TOTAL		3,120,384
		Industrial Machinery--0.6%
46,234	1	Blount International, Inc.		387,441
2,323		Valmont Industries, Inc.		94,267
		TOTAL		481,708
		Insurance Brokerage--1.7%
42,267		AmTrust Financial Services, Inc.		347,012
24,918		Life Partners Holdings, Inc.		946,884
		TOTAL		1,293,896
		Internet Services--0.3%
34,111	1	EarthLink Network, Inc.		256,856
		Long-Term Care Centers--0.8%
53,810	1	Sun Healthcare Group, Inc.		609,667
		Machine Tools--0.4%
14,939	1	AZZ, Inc.		334,634
		Maritime--0.0%
1,525		TAL International Group, Inc.		15,982
Shares				Value
		COMMON STOCKS--continued
		Medical Supplies--4.9%
27,141	1	Emergency Medical Services Corp., Class A	$	909,766
17,597	1	Kensey Nash Corp.		363,730
51,084	1	Merit Medical Systems, Inc.		786,183
50,612	1	PetMed Express, Inc.		730,837
73,839	1	Quidel Corp.		908,220
		TOTAL		3,698,736
		Medical Technology--3.1%
63,022	1	Cyberonics, Inc.		969,909
2,666	1	Neogen Corp.		69,769
31,547	1	Rochester Medical Corp.		364,683
31,962	1	Thoratec Laboratories Corp.		925,939
		TOTAL		2,330,300
		Miscellaneous Communications--4.2%
28,233	1	Bankrate, Inc.		941,853
43,555		NTELOS Holdings Corp.		942,530
35,942		Shenandoah Telecommunications Co.		876,266
22,129	1	j2 Global Communications, Inc.		433,286
		TOTAL		3,193,935
		Multi-Industry Capital Good--0.8%
42,826	1	DXP Enterprises, Inc.		581,577
		Oil Service, Explore & Drill--0.0%
5,917	1	Matrix Services Co.		31,301
		Other Communications Equipment--1.2%
67,703	1	Syniverse Holdings, Inc.		918,053
		Packaged Foods--0.1%
5,583	1	United Natural Foods, Inc.		86,760
		Packaging & Containers--0.8%
72,849	1	Bway Holding Co.		616,303
Shares				Value
		COMMON STOCKS--continued
		Personal Loans--1.1%
12,889		Cash America International, Inc.	$	235,611
29,327	1	Ezcorp, Inc., Class A		397,967
14,332	1	First Cash Financial Services, Inc.		241,064
		TOTAL		874,642
		Personnel Agency--1.2%
59,615	1	Dyncorp International, Inc., Class A		896,610
		Railroad--1.2%
34,395	1	Genesee & Wyoming, Inc., Class A		934,512
		Recreational Goods--0.1%
12,204		Sport Supply Group, Inc.		98,364
		Recreational Vehicles--0.0%
145		Polaris Industries, Inc., Class A		3,084
		Regional Bank--1.3%
16,734		Bank of the Ozarks, Inc.		379,694
43,329	1	Oritani Financial Corp.		646,035
		TOTAL		1,025,729
		Restaurant--2.4%
27,529	1	CEC Entertainment, Inc.		642,527
75,705		CKE Restaurants, Inc.		628,352
15,147	1	Green Mountain Coffee, Inc.		579,524
		TOTAL		1,850,403
		Roofing & Wallboard--0.9%
53,737	1	Beacon Roofing Supply, Inc.		684,072
		Savings & Loan--0.6%
44,925	1	Investors Bancorp, Inc.		479,799
		Securities Brokerage--2.1%
40,261	1	Interactive Brokers Group, Inc., Class A		614,785
54,619	1	Knight Capital Group, Inc., Class A		984,781
		TOTAL		1,599,566
Shares				Value
		COMMON STOCKS--continued
		Semiconductor Distribution--1.2%
70,437	1	Tyler Technologies, Inc.	$	886,802
		Semiconductor Manufacturing--0.2%
5,558	1	NVE Corp.		180,524
		Services to Medical Professionals--1.2%
24,567	1	Genoptix, Inc.		832,821
18,429	1	eResearch Technology, Inc.		106,704
		TOTAL		939,525
		Shoes--0.7%
9,579	1	Deckers Outdoor Corp.		500,407
		Software Packaged/Custom--9.7%
55,651	1	ACI Worldwide, Inc.		945,511
53,526	1	CSG Systems International, Inc.		776,127
9,230	1	Concur Technologies, Inc.		227,889
14,773	1	ManTech International Corp., Class A		792,276
921	1	OPNET Technologies, Inc.		7,552
29,922		Pegasystems, Inc.		406,042
143,876	1	S1 Corp.		959,653
36,846	1	Solera Holdings, Inc.		887,620
126,080	1	TeleCommunication Systems, Inc., Class A		902,733
10,376	1	VASCO Data Security International, Inc.		70,349
6,479	1	Vocus, Inc.		98,870
43,064	1	Websense, Inc.		482,317
109,113	1	Wind River Systems, Inc.		869,631
		TOTAL		7,426,570
		Specialty Chemicals--2.4%
65,196	1	Calgon Carbon Corp.		819,514
24,946		Chemed Corp.		1,001,083
		TOTAL		1,820,597
Shares				Value
		COMMON STOCKS--continued
		Specialty Retailing--0.3%
5,755	1	Titan Machinery, Inc.	$	58,413
4,634	1	Tractor Supply Co.		156,212
		TOTAL		214,625
		Telecommunication Equipment & Services--3.4%
5,800		Applied Signal Technology, Inc.		101,732
12,298	1	Bigband Networks, Inc.		62,105
20,114	1	Comtech Telecommunications Corp.		780,423
27,619	1	GeoEye, Inc.		476,428
12,343	1	NeuStar, Inc., Class A		168,112
56,597	1	Neutral Tandem, Inc.		896,496
16,610	1	Switch & Data Facilities Co.		114,277
		TOTAL		2,599,573
		Truck Manufacturing--0.3%
43,246	1	Force Protection, Inc.		259,908
		Undesignated Consumer Cyclicals--6.4%
21,922	1	American Public Education, Inc.		858,466
56,942	1	Corinthian Colleges, Inc.		1,063,677
25,247		Corporate Executive Board Co.		509,989
4,918	1	Geo Group, Inc.		72,786
55,186	1	Hillenbrand, Inc.		1,020,389
37,586	1	Kendle International, Inc.		717,893
13,351	1	Lincoln Educational Services		195,192
26,541	1	Sykes Enterprises, Inc.		443,500
		TOTAL		4,881,892
		Undesignated Consumer Staples--0.7%
21,554	1	USANA, Inc.		500,268
		Undesignated Health--0.2%
16,979	1	HealthSouth Corp.		168,771
		TOTAL COMMON STOCKS (IDENTIFIED COST $83,158,892)		74,467,438
Shares				Value
		MUTUAL FUND--2.3%
1,709,949	2,3	Prime Value Obligations Fund, Institutional Shares, 1.75% (AT NET ASSET VALUE)	$	1,709,949
		TOTAL INVESTMENTS--100.0% (IDENTIFIED COST $84,868,841) 4		76,177,387
		OTHER ASSETS AND LIABILITIES - NET--0.0% 5		18,605
		TOTAL NET ASSETS--100%	$	76,195,992

1 Non-income-producing security.

2 Affiliated company.

3 7-Day net yield.

4 Also represent cost for federal tax purposes.

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

Note: The categories of investments are shown as a percentage of total net assets at January 31, 2009.

Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below:

Level 1--quoted prices in active markets for identical securities

Level 2--other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

Level 3--significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used, as of January 31, 2009, in valuing the Fund's assets carried at fair value:

Valuation Inputs	Investments in Securities
Level 1--Quoted Prices and Investments in Mutual Funds	$76,177,387
Level 2--Other Significant Observable Inputs	- --
Level 3--Significant Unobservable Inputs	- --
TOTAL	$76,177,387

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

January 31, 2009 (unaudited)

Assets:
Total investments in securities, at value including $1,709,949 of investments in an affiliated issuer (Note 5) (identified cost $84,868,841)			$	76,177,387
Cash				31,768
Income receivable				18,414
Receivable for investments sold				2,119,812
Receivable for shares sold				422,650
TOTAL ASSETS				78,770,031
Liabilities:
Payable for investments purchased	$	2,110,376
Payable for shares redeemed		350,222
Payable for distribution services fee (Note 5)		5,217
Payable for shareholder services fee (Note 5)		14,922
Accrued expenses		93,302
TOTAL LIABILITIES				2,574,039
Net assets for 10,917,583 shares outstanding			$	76,195,992
Net Assets Consist of:
Paid-in capital			$	191,353,806
Net unrealized depreciation of investments and translation of assets and liabilities in foreign currency				(8,691,336	)
Accumulated net realized loss on investments				(106,104,046	)
Accumulated net investment income (loss)				(362,432	)
TOTAL NET ASSETS			$	76,195,992

Statement of Assets and Liabilities-continued

Net Asset Value, Offering Price and Redemption Proceeds Per Share
Institutional Shares:
Net asset value per share ($49,161,481 ÷ 7,013,691 shares outstanding), no par value, unlimited shares authorized	$7.01
Offering price per share	$7.01
Redemption proceeds per share	$7.01
Class A Shares:
Net asset value per share ($19,669,994 ÷ 2,830,869 shares outstanding), no par value, unlimited shares authorized	$6.95
Offering price per share (100/94.50 of $6.95)	$7.35
Redemption proceeds per share	$6.95
Class B Shares:
Net asset value per share ($3,893,028 ÷ 560,467 shares outstanding), no par value, unlimited shares authorized	$6.95
Offering price per share	$6.95
Redemption proceeds per share (94.50/100 of $6.95)	$6.57
Class C Shares:
Net asset value per share ($3,471,489 ÷ 512,556 shares outstanding), no par value, unlimited shares authorized	$6.77
Offering price per share	$6.77
Redemption proceeds per share (99.00/100 of $6.77)	$6.70

See Notes which are an integral part of the Financial Statements

Statement of Operations

Six Months Ended January 31, 2009 (unaudited)

Investment Income:
Dividends (including $17,738 received from an affiliated issuer) (Note 5)							$	378,840
Expenses:
Investment adviser fee (Note 5)				$	501,540
Administrative personnel and services fee (Note 5)					136,110
Custodian fees					28,494
Transfer and dividend disbursing agent fees and expenses					241,442
Directors'/Trustees' fees					972
Auditing fees					10,724
Legal fees					3,368
Portfolio accounting fees					39,985
Distribution services fee--Class B Shares (Note 5)					23,588
Distribution services fee--Class C Shares (Note 5)					17,812
Shareholder services fee--Class A Shares (Note 5)					30,714
Shareholder services fee--Class B Shares (Note 5)					7,863
Shareholder services fee--Class C Shares (Note 5)					5,799
Account administration fee--Class A Shares					161
Account administration fee--Class C Shares					138
Share registration costs					27,203
Printing and postage					23,811
Insurance premiums					2,398
Miscellaneous					2,301
TOTAL EXPENSES					1,104,423
Waivers and Reimbursement (Note 5):
Waiver/reimbursement of investment adviser fee	$	(336,876	)
Waiver of administrative personnel and services fee		(27,289	)
TOTAL WAIVERS AND REIMBURSEMENT					(364,165	)
Net expenses								740,258
Net investment income (loss)								(361,418	)
Realized and Unrealized Loss on Investments and Foreign Currency Transactions:
Net realized loss on investments								(32,005,906	)
Net change in unrealized appreciation of investments and translation of assets and liabilities in foreign currency								(12,580,575	)
Net realized and unrealized loss on investments and foreign currency transactions								(44,586,481	)
Change in net assets resulting from operations							$	(44,947,899	)

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

		Six Months Ended (unaudited) 1/31/2009			Year Ended 7/31/2008
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	(361,418	)	$	(628,923	)
Net realized loss on investments		(32,005,906	)		(11,971,658	)
Net change in unrealized appreciation/depreciation of investments and translation of assets and liabilities in foreign currency		(12,580,575	)		9,435,934
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		(44,947,899	)		(3,164,647	)
Distributions to Shareholders:
Distributions from net realized gain on investments
Institutional Shares		- --			(155,811	)
Class A Shares		- --			(11,057	)
Class C Shares		- --			(6,609	)
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS		- --			(173,477	)
Share Transactions:
Proceeds from sale of shares		31,141,596			73,388,956
Proceeds from shares issued in connection with the tax-free transfer of assets from Federated Technology Fund		- --			44,263,203
Net asset value of shares issued to shareholders in payment of distributions declared		- --			146,644
Cost of shares redeemed		(20,341,396	)		(21,595,763	)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		10,800,200			96,203,040
Change in net assets		(34,147,699	)		92,864,916
Net Assets:
Beginning of period		110,343,691			17,478,775
End of period (including accumulated net investment income (loss) of $(362,432) and $(1,014), respectively)	$	76,195,992		$	110,343,691

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

January 31, 2009 (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 nine 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. Each portfolio pays its own expenses. The Fund offers four classes of shares: Institutional Shares, Class A Shares, Class B 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 Class A Shares, Class B Shares and Class C Shares are presented separately. The investment objective of the Fund is long-term capital appreciation.

Effective March 13, 2008, the Fund began offering Class B Shares.

On March 14, 2008, the Fund received assets from Federated Technology Fund as the result of a tax-free reorganization, as follows:

Shares of the Fund Issued	Federated Technology Fund Net Assets Received	Unrealized Depreciation 1	Net Assets of the Fund Immediately Prior to Combination	Net Assets of the Fund Immediately After Combination
3,954,962	$44,263,203	$(6,136,744)	$40,850,828	$85,114,031

1 Unrealized Depreciation is included in the Federated Technology Fund Net Assets Received amount shown above.

2. SIGNIFICANT ACCOUNTING POLICIES

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

Investment Valuation

In calculating its net asset value (NAV), the Fund generally values investments as follows:

• Equity securities listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market.
• Shares of other mutual funds are valued based upon their reported NAVs.
• Fixed-income securities acquired with remaining maturities greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Board of Trustees (the "Trustees").
• Fixed-income securities acquired with remaining maturities of 60 days or less are valued at their cost (adjusted for the accretion of any discount or amortization of any premium).
• Derivative contracts listed on exchanges are valued at their reported settlement or closing price.
• Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Trustees.

If the Fund cannot obtain a price or price evaluation from a pricing service for an investment, the Fund may attempt to value the investment based upon the mean of bid and asked quotations or fair value the investment based on price evaluations, from one or more dealers. If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could purchase or sell an investment at the price used to calculate the Fund's NAV.

Fair Valuation and Significant Events Procedures

The Trustees have authorized the use of pricing services to provide evaluations of the current fair value of certain investments for purposes of calculating the NAV. Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a "bid" evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and asked for the investment (a "mid" evaluation). The Fund normally uses bid evaluations for U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for other types of fixed-income securities and OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Trustees.

The Trustees also have adopted procedures requiring an investment to be priced at its fair value whenever the Adviser determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment's value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:

• With respect to securities traded in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures or options contracts;
• With respect to price evaluations of fixed-income securities determined before the close of regular trading on the NYSE, actions by the Federal Reserve Open Market Committee and other significant trends in U.S. fixed-income markets;
• Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; and
• Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, a natural disaster affecting the issuer's operations or regulatory changes or market developments affecting the issuer's industry.

The Trustees have approved the use of a pricing service to determine the fair value of equity securities traded principally in foreign markets when the Adviser determines that there has been a significant trend in the U.S. equity markets or in index futures trading. For other significant events, the Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Fund will determine the fair value of the investment using another method approved by the Trustees.

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

Investment transactions are accounted for on a trade-date basis. Realized gains and losses from investment transactions are recorded on an identified cost basis. Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Foreign dividends are recorded on the ex-dividend date or when the Fund is informed of the ex-dividend date. Distributions of net investment income, if any, are declared and paid 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 may bear certain expenses unique to that class such as account administration, distribution services 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. The Fund complies with the provisions of Financial Accounting Standards Board (FASB) Interpretation No. 48 (FIN 48), "Accounting for Uncertainty in Income Taxes." As of and during the six months ended January 31, 2009, the Fund did not have a liability for any uncertain tax positions. The Fund recognizes interest and penalties, if any, related to tax liabilities as income tax expense in the Statement of Operations. As of January 31, 2009, tax years 2006 through 2008 remain subject to examination by the Fund's major tax jurisdictions, which include the United States of America and the Commonwealth of Massachusetts.

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.

Foreign Currency Translation

The accounting records of the Fund are maintained in U.S. dollars. All assets and liabilities denominated in foreign currencies (FCs) are translated into U.S. dollars based on the rates of exchange of such currencies against U.S. dollars on the date of valuation. Purchases and sales of securities, income and expenses are translated at the rate of exchange quoted on the respective date that such transactions are recorded. The Fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.

Reported net realized foreign exchange gains or losses arise from sales of portfolio securities, sales and maturities of short-term securities, sales of FCs, currency gains or losses realized between the trade and settlement dates on securities transactions, the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund's books, and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities other than investments in securities at fiscal year end, resulting from changes in the exchange rate.

Other

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

3. SHARES OF BENEFICIAL INTEREST

The following tables summarize share activity:

	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Institutional Shares:	Shares			Amount		Shares			Amount
Shares sold	3,174,513		$	25,932,509		4,827,064		$	59,077,425
Shares issued to shareholders in payment of distributions declared	- --			- --		10,017			133,229
Shares redeemed	(1,497,473	)		(12,813,723	)	(747,875	)		(8,924,748	)
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS	1,677,040		$	13,118,786		4,089,206		$	50,285,906
	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Class A Shares:	Shares			Amount		Shares			Amount
Shares sold	467,548		$	4,012,434		1,014,861		$	12,172,465
Shares issued in connection with tax-free transfer of assets from Federated Technology Fund	- --			- --		1,965,099			21,986,533
Shares issued to shareholders in payment of distributions declared	- --			- --		766			10,117
Shares redeemed	(391,711	)		(3,363,136	)	(266,794	)		(3,116,808	)
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS	75,837		$	649,298		2,713,932		$	31,052,307
	Six Months Ended 1/31/2009					Period Ended 7/31/2008 1
Class B Shares:	Shares			Amount		Shares			Amount
Shares sold	40,070		$	396,115		12,136		$	147,178
Shares issued to shareholders in payment of distributions declared	- --			- --		1,540,719			17,345,297
Shares redeemed	(324,623	)		(2,940,937	)	(707,835	)		(8,399,050	)
NET CHANGE RESULTING FROM CLASS B SHARE TRANSACTIONS	(284,553	)	$	(2,544,822	)	845,020		$	9,093,425
	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Class C Shares:	Shares			Amount		Shares			Amount
Shares sold	93,549		$	800,538		164,693		$	1,991,888
Shares issued in connection with tax-free transfer of assets from Federated Technology Fund	- --			- --		449,144			4,931,373
Shares issued to shareholders in payment of distributions declared	- --			- --		254			3,298
Shares redeemed	(150,654	)		(1,223,600	)	(99,359	)		(1,155,157	)
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS	(57,105	)	$	(423,062	)	514,732		$	5,771,402
NET CHANGE RESULTING FROM SHARE TRANSACTIONS	1,411,219		$	10,800,200		8,162,890		$	96,203,040

1 Reflects operations for the period from March 13, 2008 (date of initial investment) to July 31, 2008.

4. FEDERAL TAX INFORMATION

At January 31, 2009, the cost of investments for federal tax purposes was $84,868,841. The net unrealized depreciation of investments for federal tax purposes excluding any unrealized appreciation resulting from foreign currency transactions was $8,691,454. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $2,138,489 and net unrealized depreciation from investments for those securities having an excess of cost over value of 10,829,943.

At July 31, 2008, the Fund had a capital loss carryforward of $62,019,299 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 as follows:

Expiration Year	Expiration Amount
2009	$59,356,831
2010	$ 2,459,915
2016	$ 202,553

As a result of the tax-free transfer of assets from Federated Technology Fund, the use of certain capital loss carryforwards listed above may be limited.

5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated MDTA LLC is the Fund's investment adviser (the "Adviser"). The advisory agreement between the Fund and the Adviser provides for an annual fee equal to 1.15% of the Fund's average daily net assets. Prior to December 8, 2008, the Adviser agreed to waive all or a portion of the advisory fee and/or reimburse certain operating expenses (excluding interest, taxes and brokerage commissions) in order to contractually limit the Fund's aggregate annual operating expenses to no more than the following annual percentages for each Class of the Fund based on average daily net assets:

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

In addition, subject to the terms described in the Expense Limitation note, the Adviser may voluntarily choose to waive any additional portion of its fee. The Adviser can modify or terminate this voluntary waiver at any time at its sole discretion. For the six months ended January 31, 2009, the Adviser waived $336,263 of its fee.

Administrative Fee

Federated Administrative Services (FAS), under the Administrative Services 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. Subject to the terms described in the Expense Limitation note, 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, 2009, the net fee paid to FAS was 0.250% of average daily net assets of the Fund. The Fund is currently being charged the minimum administrative fee; therefore the fee as a percentage of average daily net assets is greater than the amounts presented in the chart above. FAS waived $27,289 of its fee.

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 B 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 at the following percentages of average daily net assets annually, to compensate FSC:

Share Class Name	Percentage of Average Daily Net Assets of Class
Class A Shares	0.05%
Class B Shares	0.75%
Class C Shares	0.75%

Subject to the terms described in the Expense Limitation note, 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, 2009, FSC retained $4,815 of fees paid by the Fund. For the six months ended January 31, 2009, the Fund's Class A Shares did not incur a distribution services fee; however it may begin to incur this fee upon approval of the Trustees. On November 15, 2007, the Trustees approved an amendment to the Plan to reduce the distribution services fee for the Fund's Class A Shares from 0.25% to 0.05%. The amendment to the Plan became effective for the Fund on March 31, 2008.

Sales Charges

Front-end sales charges and contingent deferred sales charges (CDSC) do not represent expenses of the Fund. They are deducted from the proceeds of sales of Fund shares prior to investment or from redemption proceeds prior to remittance, as applicable. For the six months ended January 31, 2009, FSC retained $965 in sales charges from the sale of Class A Shares. FSC also retained $1,838 of CDSC relating to redemptions of Class C Shares.

Shareholder Services Fee

The Fund may pay fees (Service Fees) up to 0.25% of the average daily net assets of the Fund's Class A Shares, Class B Shares and Class C Shares to financial intermediaries or to Federated Shareholder Services Company (FSSC) for providing services to shareholders and maintaining shareholder accounts. Subject to the terms described in the Expense Limitation note, FSSC may voluntarily reimburse the Fund for shareholder services fees. This voluntary reimbursement can be modified or terminated at any time. For the six months ended January 31, 2009, FSSC received $315 of fees paid by the Fund.

Expense Limitation

The Adviser and its affiliates (which may include FSC, FAS and FSSC) have voluntarily agreed to waive their fees and/or reimburse expenses so that the total operating expenses (as shown in the financial highlights) paid by the Fund's Institutional Shares, Class A Shares, Class B Shares and Class C Shares (after the voluntary waivers and reimbursements) will not exceed 1.50%, 1.75%, 2.50% and 2.50%, respectively, for the fiscal year ending July 31, 2009. Although these actions are voluntary, the Adviser and its affiliates have agreed to continue these waivers and/or reimbursements at least through September 30, 2009.

General

Certain 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 affiliated mutual funds. For the six months ended January 31, 2009, the Adviser reimbursed $613. Transactions with the affiliated company during the six months ended January 31, 2009 were as follows:

Affiliate	Balance of Shares Held 7/31/2008	Purchases/ Additions	Sales/ Reductions	Balance of Shares Held 1/31/2009	Value	Dividend Income
Prime Value Obligations Fund, Institutional Shares	1,320,459	16,011,023	15,621,533	1,709,949	$1,709,949	$17,738

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, 2009, were as follows:

Purchases	$	108,208,191
Sales	$	97,877,532

7. LINE OF CREDIT

The Fund participates in a $100,000,000 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, 2009, there were no outstanding loans. During the six months ended January 31, 2009, the Fund did not utilize the LOC.

8. INTERFUND LENDING

Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (SEC), the Fund, along with other funds advised by subsidiaries of Federated Investors, Inc., may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from other participating affiliated funds. As of January 31, 2009, there were no outstanding loans. During the six months ended January 31, 2009, the program was not utilized.

9. LEGAL PROCEEDINGS

Since October 2003, Federated Investors, Inc. and related entities (collectively, "Federated") and various Federated funds ("Federated Funds") have been 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 Federated Funds from the 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 entities have also been named as defendants in several additional lawsuits that 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 Federated Funds retained the law firm of Dickstein Shapiro LLP to represent the Federated Funds in these lawsuits. Federated and the Federated Funds, and their respective counsel have been defending this litigation, and none of the Federated Funds remains a defendant in any of the lawsuits (though some could potentially receive any recoveries as nominal defendants). 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 Federated 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 Federated Fund redemptions, reduced sales of Federated Fund shares or other adverse consequences for the Federated Funds.

Evaluation and Approval of Advisory
Contract - May 2008

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

The Fund's Board reviewed the Fund's investment advisory contract at meetings held in May 2008. The Board's decision regarding the contract reflects the exercise of its business judgment on whether to continue the existing arrangements.

In this connection, the Federated funds' Board had previously appointed 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 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. The Board considered that evaluation, along with other information, in deciding to approve the advisory contract.

During its review of the contract, the Board considered compensation and benefits received by the Adviser. This included the fees received for services provided to the Fund by other entities in the Federated organization and research services received by the Adviser from brokers that execute Federated fund trades, as well as advisory fees. The Board is also familiar with and considered 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 a fund grows larger; any indirect benefits that may accrue to the Adviser and its affiliates as a result of the Adviser's relationship with a 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 what might be viewed as like services, and the cost 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 for supplying such services. The Board was aware of these factors and was guided by them in its review of the Fund's advisory contract to the extent it considered them to be appropriate and relevant, as discussed further below.

The Board considered and weighed these circumstances in light of its substantial accumulated experience in governing the Fund and working with Federated on matters relating to the Federated funds, and was assisted in its deliberations by independent legal counsel. Throughout the year, the Board has requested and received substantial and detailed information about the Fund and the Federated organization that was in addition to the extensive materials that comprise and accompany the Senior Officer's evaluation. Federated provided much of this information at each regular meeting of the Board, and furnished additional reports in connection with the particular meeting at which the Board's formal review of the advisory contract occurred. Between regularly scheduled meetings, the Board also received information on particular matters as the need arose. Thus, 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 short- and long-term performance (in absolute terms, both on a gross basis and net of expenses, as well as in relationship to its particular investment program and certain competitor or "peer group" funds and/or other benchmarks, as appropriate), and comments on the reasons for performance; the Fund's investment objectives; the Fund's expenses (including the advisory fee 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 use and allocation of brokerage commissions derived from trading the Fund's portfolio securities (if any); and the nature, quality and extent of the advisory and other services provided to the Fund by the Adviser and its affiliates. The Board also considered the preferences and expectations of Fund shareholders 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 performance and 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 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 competes. The Fund's ability to deliver competitive performance when compared to its peer group was a useful indicator of how the Adviser is executing 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 continuation of the advisory contract. In this regard, the Senior Officer has 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 include, but are not limited to, different types of targeted investors; being subject to different laws and regulations; different legal structures; different average account sizes; different associated costs; and different 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, using data supplied by independent fund ranking organizations, regarding the performance of, and fees charged by, other mutual funds, noting his view that comparisons to fund peer groups are highly important in judging the reasonableness of proposed fees. He also observed that certain funds may exhibit important differences in their objectives and management techniques when compared to other funds placed in the same peer group by ranking organizations, noting in this connection that the Fund's quantitative investment program is of such a type.

For the one-year period ending December 31, 2007, the Fund's performance was above the median of the relevant peer group. In addition, the Board was informed by the Adviser that, for the same period, the Fund outperformed its benchmark index for the one-year period.

The Board also received financial information about Federated, including reports on the compensation and benefits Federated derived from its relationships with the Federated funds. These reports covered 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 discussed any indirect benefit Federated may derive from its receipt of research services from brokers who execute Federated fund trades. In addition, the Board considered the fact that, in order for a fund to be competitive in the marketplace, Federated and its affiliates frequently waived fees and/or reimbursed expenses and have disclosed to fund investors and/or indicated to the Board their intention to do so in the future, where appropriate.

Federated furnished reports, requested by the Senior Officer, that reported revenues on a fund-by-fund basis and made estimates of the allocation of expenses on a fund-by-fund basis, using allocation methodologies specified by the Senior Officer. The Senior Officer noted that, although they may apply consistent allocation processes, the inherent difficulties in allocating costs (and the unavoidable arbitrary aspects of that exercise) and the lack of consensus on how to allocate those costs may render such allocation reports unreliable. The allocation reports were considered in the analysis by the Board but were determined to be of limited use.

The Board and the Senior Officer also reviewed a report compiled by Federated comparing profitability information for Federated to other publicly held fund management companies. In this regard, the Senior Officer noted the limited availability of such information, but nonetheless concluded that Federated's profit margins did not appear to be excessive and the Board agreed.

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 and long-term investments in areas that support all of the Federated funds, such as personnel and processes for the portfolio management, compliance, and risk management functions; and systems technology; and that the benefits of these efforts (as well as 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 (as discussed in the Senior Officer's evaluation) 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.

It was noted in the materials for the Board meeting that for the Fund's most recently completed fiscal year, the Fund's investment advisory fee was waived in its entirety. The Board reviewed the contractual fee rate and other expenses of the Fund with the Adviser and was satisfied that the overall expense structure of the Fund remained competitive.

The Senior Officer's evaluation noted his belief that the information and observations contained in his evaluation supported a finding that the proposed management fees are reasonable, and that Federated appeared to provide appropriate administrative services to the Fund for the fees paid. Under these circumstances, no changes were recommended to, and no objection was raised to, the continuation of the Fund's advisory contract. The Board concluded that the nature, quality and scope of services provided the Fund by the Adviser and its affiliates were satisfactory.

In its decision to continue an existing investment advisory contract, the Board was mindful of the potential disruptions of the Fund's operations and various risks, uncertainties and other effects that could occur as a result of a decision to terminate or not renew an advisory contract. In particular, the Board recognized that most shareholders have invested in the Fund on the strength of the Adviser's industry standing and reputation and with the expectation that the Adviser will have a continuing role in providing advisory services to the Fund. Thus, the Board's approval of the advisory contract reflected the fact that it is the shareholders who have effectively selected the Adviser by virtue of having invested in the Fund.

The Board 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. Not all of the factors and considerations identified above were necessarily relevant to the Fund, nor did the Board consider any one of them to be determinative. With respect to the factors that were relevant, the Board's decision to approve the contract reflects its determination that Federated's performance and actions provided a satisfactory basis to support the decision to continue the existing 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 from Federated's website at FederatedInvestors.com. To access this information from the "Products" section of the website, click on the "Prospectuses and Regulatory Reports" link under "Related Information," then select the appropriate link opposite the name of the Fund; or select the name of the Fund and from the Fund's page, click on the "Prospectuses and Regulatory Reports" link. Form N-PX filings are also available at 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" under "Related Information," then selecting the appropriate link opposite the name of the Fund; or select the name of the Fund and from the Fund's page, click on the "Portfolio Holdings" link.

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 31421R759

36369 (3/09)

Federated is a registered mark of Federated Investors, Inc. 2009 (c)Federated Investors, Inc.

Federated
World-Class Investment Manager

Federated MDT Small Cap Value Fund

Established 2005

A Portfolio of Federated MDT Series

SEMI-ANNUAL SHAREHOLDER REPORT

January 31, 2009

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)		Year Ended July 31,				Period Ended
	1/31/2009		2008		2007	1	7/31/2006	2
Net Asset Value, Beginning of Period	$10.33		$11.37		$10.61		$10.00
Income From Investment Operations:
Net investment income (loss)	(0.01	) 3	(0.04	) 3	(0.05	) 3	(0.07	) 3
Net realized and unrealized gain (loss) on investments	(3.89	)	(0.24	)	0.81		0.68
TOTAL FROM INVESTMENT OPERATIONS	(3.90	)	(0.28	)	0.76		0.61
Less Distributions:
Distributions from net realized gain on investments	- --		(0.76	)	- --		- --
Net Asset Value, End of Period	$ 6.43		$10.33		$11.37		$10.61
Total Return 4	(37.75	)%	(2.69	)%	7.16	%	6.10	%
Ratios to Average Net Assets:
Net expenses	1.75	% 5	1.75	%	1.75	%	2.00	% 5
Net investment income (loss)	(0.30	)% 5	(0.32	)%	(0.44	)%	(0.59	)% 5
Expense waiver/reimbursement 6	1.85	% 5	3.05	%	4.45	%	34.07	% 5
Supplemental Data:
Net assets, end of period (000 omitted)	$1,949		$3,179		$2,950		$699
Portfolio turnover	126	%	245	%	240	%	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)		Year Ended July 31,				Period Ended
	1/31/2009		2008		2007	1	7/31/2006	2
Net Asset Value, Beginning of Period	$10.10		$11.21		$10.54		$10.00
Income From Investment Operations:
Net investment income (loss)	(0.04	) 3	(0.12	) 3	(0.14	) 3	(0.15	) 3
Net realized and unrealized gain (loss) on investments	(3.80	)	(0.23	)	0.81		0.69
TOTAL FROM INVESTMENT OPERATIONS	(3.84	)	(0.35	)	0.67		0.54
Less Distributions:
Distributions from net realized gain on investments	- --		(0.76	)	- --		- --
Net Asset Value, End of Period	$ 6.26		$10.10		$11.21		$10.54
Total Return 4	(38.02	)%	(3.38	)%	6.36	%	5.40	%
Ratios to Average Net Assets:
Net expenses	2.50	% 5	2.50	%	2.50	%	2.75	% 5
Net investment income (loss)	(1.07	)% 5	(1.11	)%	(1.20	)%	(1.34	)% 5
Expense waiver/reimbursement 6	1.89	% 5	2.73	%	4.06	%	34.07	% 5
Supplemental Data:
Net assets, end of period (000 omitted)	$2,756		$3,195		$951		$51
Portfolio turnover	126	%	245	%	240	%	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 (unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase or redemption payments; and (2) ongoing costs, including management fees and to the extent applicable, distribution (12b-1) fees and/or 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, 2008 to January 31, 2009.

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 8/1/2008	Ending Account Value 1/31/2009	Expenses Paid During Period 1
Actual:
Class A Shares	$1,000	$ 622.50	$ 7.16
Class C Shares	$1,000	$ 619.80	$10.21
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 (unaudited)

At January 31, 2009, the Fund's industry composition ¹ was as follows:

Industry	Percentage of Total Net Assets
Electric Utility	11.2	%
Property Liability Insurance	8.0	%
Multi-Line Insurance	6.7	%
Airline - National	4.2	%
Airline - Regional	3.7	%
Oil Refiner	3.3	%
Financial Services	3.2	%
Securities Brokerage	3.1	%
Regional Bank	3.0	%
Undesignated Consumer Cyclicals	2.7	%
Contracting	2.4	%
Defense Aerospace	2.4	%
Grocery Chain	2.4	%
Savings & Loan	2.4	%
Gas Distributor	1.9	%
Home Health Care	1.8	%
Insurance Brokerage	1.7	%
Computer Services	1.5	%
Life Insurance	1.5	%
Telecommunication Equipment & Services	1.3	%
Apparel	1.2	%
Clothing Stores	1.2	%
Industry	Percentage of Total Net Assets
Specialty Retailing	1.2	%
Biotechnology	1.1	%
Building Materials	1.1	%
Medical Technology	1.1	%
Multi-Industry Basic	1.1	%
Other Steel Producer	1.1	%
Cellular Communications	1.0	%
Food Wholesaling	1.0	%
Metal Fabrication	1.0	%
Other 2	17.7	%
Cash Equivalents 3	2.0	%
Other Assets and Liabilities--Net 4	(0.2	)%
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, 2009 (unaudited)

Shares					Value
			COMMON STOCKS--98.2%
			Airline - National--4.2%
	20,215	1	Continental Airlines, Inc., Class B	$	272,296
	45,834	1	Jet Blue Airways Corp.		258,045
	19,598	1	UAL Corp.		185,005
	17,304	1	US Airways Group, Inc.		98,114
			TOTAL		813,460
			Airline - Regional--3.7%
	26,475	1	AirTran Holdings, Inc.		108,548
	12,633	1	Alaska Air Group, Inc.		333,006
	3,607	1	Hawaiian Holdings, Inc.		14,680
	11,744	1	Republic Airways Holdings, Inc.		96,183
	10,752		SkyWest, Inc.		168,269
			TOTAL		720,686
			Apparel--1.2%
	7,241		Columbia Sportswear Co.		207,961
	4,771	1	G-III Apparel Group Ltd.		26,241
			TOTAL		234,202
			Auto Original Equipment Manufacturers--0.7%
	5,492	1	Fuel Systems Solutions, Inc.		143,561
			Baking--0.4%
	3,971		Lance, Inc.		74,774
			Biotechnology--1.1%
	4,357	1	Emergent Biosolutions, Inc.		95,549
	10,447	1	ViroPharma, Inc.		125,364
			TOTAL		220,913
			Book Publishing--0.2%
	3,346		Scholastic Corp.		36,471
			Building Materials--1.1%
	903		Insteel Industries, Inc.		6,953
	5,154		Simpson Manufacturing Co., Inc.		103,441
	6,521	1	Trex Co., Inc.		96,445
			TOTAL		206,839
Shares					Value
			COMMON STOCKS--continued
			Cellular Communications--1.0%
	18,187	1	USA Mobility, Inc.	$	192,237
			Clothing Stores--1.2%
	2,788	1	Children's Place Retail Stores, Inc.		52,442
	6,514	1	Jos A. Bank Clothiers, Inc.		178,874
			TOTAL		231,316
			Commodity Chemicals--0.5%
	419		Compass Minerals International, Inc.		25,211
	1,069		Innophos Holdings, Inc.		16,174
	1,534		Newmarket Corp.		48,321
			TOTAL		89,706
			Computer Networking--0.9%
	63,480	1	3Com Corp.		147,908
	2,286	1	Avocent Corp.		32,804
			TOTAL		180,712
			Computer Peripherals--0.5%
	2,422	1	Emulex Corp.		13,830
	17,261	1	RadiSys Corp.		81,645
			TOTAL		95,475
			Computer Services--1.5%
	4,455	1	CACI International, Inc., Class A		201,143
	6,045	1	Synnex Corp.		92,791
			TOTAL		293,934
			Construction Machinery--0.0%
	92	1	NCI Building System, Inc.		1,066
			Contracting--2.4%
	6,762	1	Baker Michael Corp.		236,400
	497		Comfort Systems USA, Inc.		5,084
	2,056		Granite Construction, Inc.		72,412
	4,732	1	Insituform Technologies, Inc., Class A		88,772
	2,444	1	Perini Corp.		50,957
			TOTAL		453,625
Shares					Value
			COMMON STOCKS--continued
			Cosmetics & Toiletries--0.0%
	365	1	Elizabeth Arden, Inc.	$	2,128
			Crude Oil & Gas Production--0.2%
	7,383	1	Harvest Natural Resources, Inc.		29,532
			Defense Aerospace--2.4%
	11,251	1	AAR Corp.		204,093
	3,109		Ducommun, Inc.		58,884
	10,053		Kaman Corp., Class A		191,912
			TOTAL		454,889
			Discount Department Stores--0.4%
	7,616		Freds, Inc.		78,140
			Diversified Leisure--0.1%
	447		International Speedway Corp., Class A		10,406
			Electric & Electric Original Equipment Manufacturer--0.8%
	5,710		Cubic Corp.		155,084
			Electrical Test/Measuring Equipment--0.1%
	708	1	Multi-Fineline Electronix, Inc.		13,119
			Electric Utility--11.2%
	15,764		Avista Corp.		300,147
	13,838		Cleco Corp.		316,198
	9,615	1	El Paso Electric Co.		159,032
	14,562		Empire Distribution Electric Co.		258,621
	4,273		Idacorp, Inc.		124,387
	8,923		Northwestern Corp.		216,026
	13,611	1	Pike Electric Corp.		153,124
	21,424		Portland General Electric Co.		416,697
	7,452		UniSource Energy Corp.		210,444
			TOTAL		2,154,676
			Electrical Equipment--0.4%
	1,511	1	EnerSys, Inc.		13,765
	2,204		Franklin Electronics, Inc.		57,282
			TOTAL		71,047
Shares					Value
			COMMON STOCKS--continued
			Electronic Instruments--0.1%
	326	1	Axsys Technologies, Inc.	$	13,920
			Ethical Drugs--0.1%
	3,409	1	Salix Pharmaceuticals Ltd.		27,272
			Financial Services--3.2%
	2,378		AMBAC Assurance Corporation		2,711
	12,840	1	America's Car-Mart, Inc.		116,716
	14,257		Blackrock Kelso Capital Corp.		120,899
	2,350		First Financial Corp.		77,903
	4,457		Hercules Technology Growth Capital, Inc.		29,104
	20,127	1	MBIA Insurance Corp.		77,690
	11,848	1	Nelnet, Inc., Class A		163,739
	2,075		United Financial Bancorp, Inc.		28,448
			TOTAL		617,210
			Food Wholesaling--1.0%
	4,668		Nash Finch Co.		200,864
			Furniture--0.9%
	7,361		Aaron Rents, Inc.		160,911
	1,351		Ethan Allen Interiors, Inc.		15,388
			TOTAL		176,299
			Gas Distributor--1.9%
	14,197		Southwest Gas Corp.		365,715
			Generic Drugs--0.2%
	1,389	1	Par Pharmaceutical Cos., Inc.		17,099
	506		Perrigo Co.		14,851
			TOTAL		31,950
			Greeting Cards--0.0%
	1,971		American Greetings Corp., Class A		8,554
			Grocery Chain--2.4%
	5,164		Casey's General Stores, Inc.		109,735
	4,813		Ruddick Corp.		115,753
	2,825	1	Susser Holdings Corp.		36,923
	11,640	1	The Pantry, Inc.		193,573
			TOTAL		455,984
Shares					Value
			COMMON STOCKS--continued
			Home Health Care--1.8%
	7,129	1	Amerigroup Corp.	$	199,398
	3,361	1	Gentiva Health Services, Inc.		84,966
	5,931	1	Odyssey Healthcare, Inc.		58,836
			TOTAL		343,200
			Home Products--0.0%
	1,388		Blyth Industries, Inc.		4,733
			Industrial Machinery--0.2%
	3,384		Met-Pro Corp.		37,089
			Insurance Brokerage--1.7%
	28,798		AmTrust Financial Services, Inc.		236,432
	2,208		Baldwin & Lyons, Inc., Class B		37,072
	4,076	1	Crawford & Co., Class B		36,562
	1,062	1	Texas Capital Bancshares, Inc.		11,990
			TOTAL		322,056
			Jewelry Stores--0.3%
	7,472		Movado Group, Inc.		57,385
			Life Insurance--1.5%
	20,673		American Equity Investment Life Holding Co.		138,302
	6,870		Delphi Financial Group, Inc., Class A		104,218
	4,449	1	Universal American Financial Corp.		43,912
			TOTAL		286,432
			Long-Term Care Centers--0.3%
	4,001	1	Kindred Healthcare, Inc.		54,294
			Maritime--0.3%
	6,072		TAL International Group, Inc.		63,635
			Medical Technology--1.1%
	5,410	1	Cantel Medical Corp.		81,096
	3,419	1	Greatbatch Technologies, Inc.		79,663
	3,119	1	Hanger Orthopedic Group, Inc.		42,574
			TOTAL		203,333
			Metal Fabrication--1.0%
	6,005	1	Ladish Co., Inc.		68,277
	1,506		Mueller Industries, Inc.		30,301
	9,112		Worthington Industries, Inc.		91,667
			TOTAL		190,245
Shares					Value
			COMMON STOCKS--continued
			Miscellaneous Communications--0.2%
	17,215	1	Internap Network Services Corp.	$	46,308
			Miscellaneous Food Products--0.1%
	1,479		The Anderson's, Inc.		24,241
			Miscellaneous Metals--0.7%
	27,572	1	USEC, Inc.		140,341
			Money Center Bank--0.2%
	1,476	1	Pennsylvania Commerce Bancorp, Inc.		30,258
			Multi-Industry Basic--1.1%
	17,903		Aceto Corp.		160,053
	3,343		Olin Corp.		46,969
			TOTAL		207,022
			Multi-Industry Capital Goods--0.0%
	90	1	Ceradyne, Inc.		2,054
	606	1	Gerber Scientific, Inc.		1,903
			TOTAL		3,957
			Multi-Line Insurance--6.7%
	15,457	1	Amerisafe, Inc.		289,510
	4,316		Donegal Group, Inc., Class A		60,510
	738		FBL Financial Group, Inc., Class A		7,609
	4,741	1	FPIC Insurance Group, Inc.		184,567
	6,409		Harleysville Group, Inc.		182,272
	3,063		Infinity Property & Casualty		117,619
	4,443	1	Navigators Group, Inc.		228,104
	6,198		Safety Insurance Group, Inc.		217,054
			TOTAL		1,287,245
			Offshore Driller--0.3%
	1,654	1	Hornbeck Offshore Services, Inc.		29,342
	5,204	1	Newpark Resources, Inc.		21,909
			TOTAL		51,251
			Oil Refiner--3.3%
	3,506		Alon USA Energy, Inc.		41,371
	25,850		Western Refining, Inc.		301,411
	8,849		World Fuel Services Corp.		298,831
			TOTAL		641,613
Shares					Value
			COMMON STOCKS--continued
			Oil Service, Explore & Drill--0.3%
	12,215	1	Boots & Coots International Well Control, Inc.	$	12,581
	1,151	1	Gulfmark Offshore, Inc.		27,555
	2,536	1	Superior Well Services, Inc.		23,306
			TOTAL		63,442
			Oil Well Supply--0.1%
	704		Lufkin Industries, Inc.		24,605
			Other Communications Equipment--0.1%
	1,755	1	Syniverse Holdings, Inc.		23,798
			Other Computer Hardware--0.1%
	830	1	EMS Technologies, Inc.		19,920
			Other Steel Producer--1.1%
	4,370	1	L.B. Foster Co.		115,324
	2,881	1	Northwest Pipe Co.		101,584
			TOTAL		216,908
			Packaged Foods--0.4%
	1,862	1	Hain Celestial Group, Inc.		28,340
	3,060	1	United Natural Foods, Inc.		47,552
			TOTAL		75,892
			Paint & Related Materials--0.1%
	3,991		Ferro Corp.		15,804
			Paper Products--0.9%
	9,262		Glatfelter (P.H.) Co.		80,672
	243	1	Kapstone Paper and Packaging Corp.		435
	2,946		Rock-Tenn Co.		91,827
			TOTAL		172,934
			Personal Loans--0.6%
	9,138	1	Ezcorp, Inc., Class A		124,003
			Personnel Agency--0.2%
	4,246		Barrett Business Services, Inc.		41,781
			Pollution Control--0.1%
	3,811	1	Spectrum Control, Inc.		27,592
			Printed Circuit Boards--0.0%
	6,795	1	Sanmina-SCI Corp.		2,242
Shares					Value
			COMMON STOCKS--continued
			Property Liability Insurance--8.0%
	4,311		American Physicians Capital, Inc.	$	183,304
	8,926		American Physicians Service Group, Inc.		187,446
	14,970	1	CNA Surety Corp.		247,753
	2,819		Horace Mann Educators Corp.		26,358
	7,946		OneBeacon Insurance Group Ltd.		67,144
	10,470	1	PMA Capital Corp.		57,690
	7,812	1	ProAssurance Corp.		369,195
	3,017		RLI Corp.		170,430
	8,190	1	Seabright Insurance Holdings, Inc.		84,930
	7,671		Selective Insurance Group, Inc.		117,750
	1,423		State Auto Financial Corp.		31,448
			TOTAL		1,543,448
			Psychiatric Centers--0.7%
	3,624	1	Magellan Health Services, Inc.		131,261
			Railroad--0.2%
	1,392	1	Genesee & Wyoming, Inc., Class A		37,821
			Recreational Goods--0.2%
	2,596	1	Steinway Musical Instruments		30,010
			Regional Bank--3.0%
	1,644		Bank of Marin Bancorp		33,036
	1,128		Bank of the Ozarks, Inc.		25,594
	604		City Holding Co.		15,529
	2,351		FNB Corp. (PA)		18,596
	12,956		First BanCorp		92,117
	2,690		First Midwest Bancorp, Inc.		26,900
	1,928		FirstMerit Corp.		31,176
	2,843		National Penn Bancshares, Inc.		27,520
	2,297		Oriental Financial Group		11,600
	2,653	1	Oritani Financial Corp.		39,556
	1,429		Prosperity Bancshares, Inc.		38,654
	4,257		Republic Bancorp, Inc.		76,626
	1,360		Southside Bancshares, Inc.		25,867
	4,632		Susquehanna Bankshares, Inc.		50,952
	2,013		TriCo Bancshares		40,542
	4,033		Wilshire Bancorp, Inc.		27,666
			TOTAL		581,931
Shares					Value
			COMMON STOCKS--continued
			Restaurant--0.5%
	5,600		Bob Evans Farms, Inc.	$	98,336
	30	1	CEC Entertainment, Inc.		700
			TOTAL		99,036
			Roofing & Wallboard--0.6%
	9,323	1	Beacon Roofing Supply, Inc.		118,682
			Savings & Loan--2.4%
	2,142		First Financial Holdings, Inc.		32,430
	521		Flushing Financial Corp.		4,126
	13,381	1	Investors Bancorp, Inc.		142,909
	674		OceanFirst Financial Corp.		8,641
	21,330	1	Ocwen Financial Corp.		189,837
	2,660		Roma Financial Corp.		30,271
	2,215		WSFS Financial Corp.		57,147
			TOTAL		465,361
			Securities Brokerage--3.1%
	22,905	1	Knight Capital Group, Inc., Class A		412,977
	24,608	1	Labranche & Co., Inc.		168,811
	1,846	1	Penson Worldwide, Inc.		11,039
			TOTAL		592,827
			Semiconductor Manufacturing--0.1%
	7,395	1	Triquint Semiconductor, Inc.		14,938
			Services to Medical Professionals--0.4%
	4,396	1	Molina Healthcare, Inc.		77,106
			Shoes--0.5%
	3,568	1	Collective Brands, Inc.		38,071
	413	1	Genesco, Inc.		6,360
	2,474	1	Steven Madden Ltd.		42,998
			TOTAL		87,429
			Software Packaged/Custom--0.4%
	103		Acxiom Corp.		980
	1,959	1	EPIQ Systems, Inc.		34,713
	3,848	1	Macrovision Solutions Corp.		50,447
			TOTAL		86,140
Shares					Value
			COMMON STOCKS--continued
			Specialty Chemicals--0.4%
	2,246		American Pacific Corp.	$	17,586
	1,100		Minerals Technologies, Inc.		41,591
	1,107		Sensient Technologies Corp.		23,801
			TOTAL		82,978
			Specialty Retailing--1.2%
	55	1	Conn's, Inc.		669
	15,152		Finish Line, Inc., Class A		71,972
	5,781	1	Hot Topic, Inc.		49,370
	4,771		Monro Muffler Brake, Inc.		115,792
			TOTAL		237,803
			Telecommunication Equipment & Services--1.3%
	9,084	1	Anaren Microwave, Inc.		107,373
	5,355	1	GeoEye, Inc.		92,374
	1,253		Plantronics, Inc.		12,718
	1,985	1	ViaSat, Inc.		43,988
			TOTAL		256,453
			Toys & Games--0.4%
	4,282	1	JAKKS Pacific, Inc.		78,532
			Trucking--0.4%
	3,940	1	Marten Transport Ltd.		69,580
			Undesignated Consumer Cyclicals--2.7%
	10,120	1	Career Education Corp.		220,616
	7,804	1	Cornell Corrections, Inc.		119,089
	1,210	1	LECG Corp.		3,957
	2,078	1	Lincoln Educational Services		30,380
	2,291		Speedway Motorsports, Inc.		33,082
	6,026	1	Universal Technical Institute, Inc.		105,636
			TOTAL		512,760
Shares					Value
			COMMON STOCKS--continued
			Undesignated Health--0.5%
	5,022	1	Healthspring, Inc.	$	87,483
			Uniforms--0.1%
	973		Unifirst Corp.		25,531
			Water Utility--0.3%
	1,279		California Water Service Group		55,637
			TOTAL COMMON STOCKS (IDENTIFIED COST $20,303,956)		18,932,072
			MUTUAL FUND--2.0%
	381,296	2,3	Prime Value Obligations Fund, Institutional Shares, 1.75% (AT NET ASSET VALUE)		381,296
			TOTAL INVESTMENTS--100.2% (IDENTIFIED COST $20,685,252) 4		19,313,368
			OTHER ASSETS AND LIABILITIES - NET--(0.2)% 5		(47,108	)
			TOTAL NET ASSETS--100%	$	19,266,260

1 Non-income producing security.

2 Affiliated company.

3 7-Day net yield.

4 Also represents cost for federal tax purposes.

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

Note: The categories of investments are shown as a percentage of total net assets at January 31, 2009.

Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below:

Level 1--quoted prices in active markets for identical securities

Level 2--other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

Level 3--significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used, as of January 31, 2009, in valuing the Fund's assets carried at fair value:

Valuation Inputs	Investments in Securities
Level 1--Quoted Prices and Investments in Mutual Funds	$19,313,368
Level 2--Other Significant Observable Inputs	- --
Level 3--Significant Unobservable Inputs	- --
TOTAL	$19,313,368

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

January 31, 2009 (unaudited)

Assets:
Total investments in securities, at value including $381,296 of investments in an affiliated issuer (Note 5) (identified cost $20,685,252)			$	19,313,368
Cash				252
Income receivable				4,791
Receivable for investments sold				613,470
Receivable for shares sold				18,820
TOTAL ASSETS				19,950,701
Liabilities:
Payable for investments purchased	$	606,960
Payable for shares redeemed		31,280
Payable for portfolio accounting fees		12,662
Payable for distribution services fee (Note 5)		1,911
Payable for shareholder services fee (Note 5)		2,849
Accrued expenses		28,779
TOTAL LIABILITIES				684,441
Net assets for 2,988,308 shares outstanding			$	19,266,260
Net Assets Consist of:
Paid-in capital			$	32,295,247
Net unrealized depreciation of investments				(1,371,884	)
Accumulated net realized loss on investments				(11,631,802	)
Accumulated net investment income (loss)				(25,301	)
TOTAL NET ASSETS			$	19,266,260
Net Asset Value, Offering Price and Redemption Proceeds Per Share
Institutional Shares:
Net asset value per share ($14,561,066 ÷ 2,244,600 shares outstanding), no par value, unlimited shares authorized				$6.49
Offering price per share				$6.49
Redemption proceeds per share				$6.49
Class A Shares:
Net asset value per share ($1,949,290 ÷ 303,321 shares outstanding), no par value, unlimited shares authorized				$6.43
Offering price per share (100/94.50 of $6.43)				$6.80
Redemption proceeds per share				$6.43
Class C Shares:
Net asset value per share ($2,755,904 ÷ 440,387 shares outstanding), no par value, unlimited shares authorized				$6.26
Offering price per share				$6.26
Redemption proceeds per share (99.00/100 of $6.26)				$6.20

See Notes which are an integral part of the Financial Statements

Statement of Operations

Six Months Ended January 31, 2009 (unaudited)

Investment Income:
Dividends (including $4,894 received from an affiliated issuer (Note 5) and net of foreign taxes withheld of $501)							$	167,743
Expenses:
Investment adviser fee (Note 5)				$	133,591
Administrative personnel and services fee (Note 5)					115,946
Custodian fees					18,212
Transfer and dividend disbursing agent fees and expenses					30,807
Directors'/Trustees' fees					788
Auditing fees					10,924
Legal fees					2,946
Portfolio accounting fees					38,910
Distribution services fee--Class C Shares (Note 5)					11,636
Shareholder services fee--Class A Shares (Note 5)					3,214
Shareholder services fee--Class C Shares (Note 5)					3,879
Share registration costs					17,977
Printing and postage					17,087
Insurance premiums					2,431
Miscellaneous					1,370
TOTAL EXPENSES					409,718
Waivers and Reimbursements (Note 5):
Waiver/reimbursement of investment adviser fee	$	(133,591	)
Waiver of administrative personnel and services fee		(22,569	)
Reimbursement of other operating expenses		(60,514	)
TOTAL WAIVERS AND REIMBURSEMENTS					(216,674	)
Net expenses								193,044
Net investment income (loss)								(25,301	)
Realized and Unrealized Gain (Loss) on Investments:
Net realized loss on investments								(9,503,343	)
Net change in unrealized appreciation of investments								(1,688,790	)
Net realized and unrealized loss on investments								(11,192,133	)
Change in net assets resulting from operations							$	(11,217,434	)

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

		Six Months Ended (unaudited) 1/31/2009			Year Ended 7/31/2008
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	(25,301	)	$	(34,816	)
Net realized loss on investments		(9,503,343	)		(2,063,606	)
Net change in unrealized appreciation/depreciation of investments		(1,688,790	)		950,455
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		(11,217,434	)		(1,147,967	)
Distributions to Shareholders:
Distributions from net realized gain on investments
Institutional Shares		- --			(638,272	)
Class A Shares		- --			(198,621	)
Class C Shares		- --			(63,763	)
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS		- --			(900,656	)
Share Transactions:
Proceeds from sale of shares		7,000,546			21,054,023
Net asset value of shares issued to shareholders in payment of distributions declared		- --			316,054
Cost of shares redeemed		(4,271,707	)		(6,659,980	)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		2,728,839			14,710,097
Change in net assets		(8,488,595	)		12,661,474
Net Assets:
Beginning of period		27,754,855			15,093,381
End of period (including accumulated net investment income (loss) of $(25,301) and $0, respectively)	$	19,266,260		$	27,754,855

See Notes which are an integral part of the Financial Statements

Notes To Financial Statements

January 31, 2009 (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 nine 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. Each portfolio pays its own expenses. 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 Institutional Shares are presented separately. The investment objective of the Fund is long-term capital appreciation.

2. SIGNIFICANT ACCOUNTING POLICIES

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

Investment Valuation

In calculating its net asset value (NAV), the Fund generally values investments as follows:

• Equity securities listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market.
• Shares of other mutual funds are valued based upon their reported NAVs.
• Fixed-income securities acquired with remaining maturities greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Board of Trustees (the "Trustees").
• Fixed-income securities acquired with remaining maturities of 60 days or less are valued at their cost (adjusted for the accretion of any discount or amortization of any premium).
• Derivative contracts listed on exchanges are valued at their reported settlement or closing price.
• Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Trustees.

If the Fund cannot obtain a price or price evaluation from a pricing service for an investment, the Fund may attempt to value the investment based upon the mean of bid and asked quotations or fair value the investment based on price evaluations, from one or more dealers. If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could purchase or sell an investment at the price used to calculate the Fund's NAV.

Fair Valuation and Significant Events Procedures

The Trustees have authorized the use of pricing services to provide evaluations of the current fair value of certain investments for purposes of calculating the NAV. Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a "bid" evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and asked for the investment (a "mid" evaluation). The Fund normally uses bid evaluations for U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for other types of fixed-income securities and OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Trustees.

The Trustees also have adopted procedures requiring an investment to be priced at its fair value whenever the Adviser determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment's value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:

• With respect to securities traded in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures or options contracts;
• With respect to price evaluations of fixed-income securities determined before the close of regular trading on the NYSE, actions by the Federal Reserve Open Market Committee and other significant trends in U.S. fixed-income markets;
• Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; and
• Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, a natural disaster affecting the issuer's operations or regulatory changes or market developments affecting the issuer's industry.

The Trustees have approved the use of a pricing service to determine the fair value of equity securities traded principally in foreign markets when the Adviser determines that there has been a significant trend in the U.S. equity markets or in index futures trading. For other significant events, the Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Fund will determine the fair value of the investment using another method approved by the Trustees.

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

Investment transactions are accounted for on a trade-date basis. Realized gains and losses from investment transactions are recorded on an identified cost basis. Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Foreign dividends are recorded on the ex-dividend date or when the Fund is informed of the ex-dividend date. Distributions of net investment income 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 may bear certain expenses unique to that class such as distribution services 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. The Fund complies with the provisions of Financial Accounting Standards Board (FASB) Interpretation No. 48 (FIN 48), "Accounting for Uncertainty in Income Taxes." As of and during the six months ended January 31, 2009, the Fund did not have a liability for any uncertain tax positions. The Fund recognizes interest and penalties, if any, related to tax liabilities as income tax expense in the Statement of Operations. As of January 31, 2009, tax years 2006 through 2008 remain subject to examination by the Fund's major tax jurisdictions, which include the United States of America and the Commonwealth of Massachusetts.

The Fund may be subject to taxes imposed by governments of countries in which it invests. Such taxes are generally based on either income or gains earned or repatriated. The Fund accrues and applies such taxes to net investment income, net realized gains and net unrealized gains as income and/or gains are earned.

When-Issued and Delayed Delivery Transactions

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

Other

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

3. SHARES OF BENEFICIAL INTEREST

The following tables summarize share activity:

	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Institutional Shares:	Shares			Amount		Shares			Amount
Shares sold	593,820		$	5,067,251		1,548,526		$	16,894,234
Shares issued to shareholders in payment of distributions declared	- --			--		7,094			75,830
Shares redeemed	(402,145	)		(3,446,494	)	(482,513	)		(5,241,402	)
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS	191,675		$	1,620,757		1,073,107		$	11,728,662
	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Class A Shares:	Shares			Amount		Shares			Amount
Shares sold	63,207		$	539,950		134,417		$	1,472,044
Shares issued to shareholders in payment of distributions declared	--			--		17,137			182,165
Shares redeemed	(67,574	)		(511,986	)	(103,407	)		(1,103,930	)
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS	(4,367	)	$	27,964		48,147		$	550,279
	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Class C Shares:	Shares			Amount		Shares			Amount
Shares sold	169,826		$	1,393,345		256,136		$	2,687,745
Shares issued to shareholders in payment of distributions declared	--			--		5,566			58,059
Shares redeemed	(45,827	)		(313,227	)	(30,126	)		(314,648	)
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS	123,999		$	1,080,118		231,576		$	2,431,156
NET CHANGE RESULTING FROM SHARE TRANSACTIONS	311,307		$	2,728,839		1,352,830		$	14,710,097

4. FEDERAL TAX INFORMATION

At January 31, 2009, the cost of investments for federal tax purposes was $20,685,252. The net unrealized depreciation of investments for federal tax purposes was $1,371,884. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $1,006,682 and net unrealized depreciation from investments for those securities having an excess of cost over value of $2,378,566.

At July 31, 2008, the Fund had a capital loss carryforward of $176,370 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 2016.

5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated MDTA LLC is the Fund's investment adviser (the "Adviser"). The advisory agreement between the Fund and the Adviser provides for an annual fee equal to 1.15% of the Fund's average daily net assets. Prior to December 8, 2008, the Adviser agreed to waive all or a portion of the advisory fee and/or reimburse certain operating expenses excluding (interest, taxes and brokerage commissions) to no more than the following annual percentages for each Class of the Fund based on average daily net assets:

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

In addition, subject to the terms described in the Expense Limitation note, the Adviser may voluntarily choose to waive any additional portion of its fee and/or reimburse certain operating expenses of the Fund. 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, 2009, the Adviser waived $133,429 of its fee and reimbursed $60,514 of other operating expenses.

Administrative Fee

Federated Administrative Services (FAS), under the Administrative Services 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. Subject to the terms described in the Expense Limitation note, 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, 2009, the net fee paid to FAS was 0.804% of average daily net assets of the Fund. The Fund is currently being charged the minimum administrative fee; therefore the fee as a percentage of average aggregate daily net assets is greater than the amounts presented in the chart above. FAS waived $22,569 of its fee.

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 at the following percentages of average daily net assets annually, to compensate FSC:

Share Class Name	Percentage of Average Daily Net Assets of Class
Class A Shares	0.05%
Class C Shares	0.75%

Subject to the terms described in the Expense Limitation note, 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, 2009, FSC retained $8,491 of fees paid by the Fund. For the six months ended January 31, 2009, the Fund's Class A Shares did not incur a distribution services fee; however it may begin to incur this fee upon approval of the Trustees. On November 15, 2007, the Fund's Trustees approved an amendment to the Plan to reduce the distribution services fee for the Fund's Class A Shares from 0.25% to 0.05%. The amendment to the Plan became effective for the Fund on March 31, 2008.

Sales Charges

Front-end sales charges and contingent deferred sales charges (CDSC) do not represent expenses of the Fund. They are deducted from the proceeds of sales of Fund shares prior to investment or from redemption proceeds prior to remittance, as applicable. For the six months ended January 31, 2009, FSC retained $466 in sales charges from the sale of Class A Shares. FSC also retained $1,239 of CDSC relating to redemptions of Class C Shares.

Shareholder Services Fee

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. Subject to the terms described in the Expense Limitation note, FSSC may voluntarily reimburse the Fund for shareholder services fees. This voluntary reimbursement can be modified or terminated at any time. For the six months ended January 31, 2009, FSSC did not receive any fees paid by the Fund.

Expense Limitation

The Adviser and its affiliates (which may include FSC, FAS and FSSC) have voluntarily agreed to waive their fees and/or reimburse expenses so that the total operating expenses (as shown in the financial highlights) paid by the Fund's Institutional Shares, Class A Shares and Class C Shares (after the voluntary waivers and reimbursements) will not exceed 1.50%, 1.75% and 2.50%, respectively, for the fiscal year ending July 31, 2009. Although these actions are voluntary, the Adviser and its affiliates have agreed to continue these waivers and/or reimbursements at least through September 30, 2009.

General

Certain 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 affiliated mutual funds. For the six months ended January 31, 2009, the Adviser reimbursed $162. Transactions with the affiliated company during the six months ended January 31, 2009 were as follows:

Affiliate	Balance of Shares Held 7/31/2008	Purchases/ Additions	Sales/ Reductions	Balance of Shares Held 1/31/2009	Value	Dividend Income
Prime Value Obligations Fund, Institutional Shares	382,184	6,303,135	6,304,023	381,296	$381,296	$4,894

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, 2009, were as follows:

Purchases	$	32,001,972
Sales	$	29,399,678

7. LINE OF CREDIT

The Fund participates in a $100,000,000 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, 2009, there were no outstanding loans. During the six months ended January 31, 2009, the Fund did not utilize the LOC.

8. INTERFUND LENDING

Pursuant to an exemptive order issued by the Securities and Exchange Commission (SEC), the Fund, along with other funds advised by subsidiaries of Federated Investors, Inc., may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from other participating affiliated funds. As of January 31, 2009, there were no outstanding loans. During the six months ended January 31, 2009, the program was not utilized.

9. LEGAL PROCEEDINGS

Since October 2003, Federated Investors, Inc. and related entities (collectively, "Federated") and various Federated funds ("Federated Funds") have been 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 Federated Funds from the 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 entities have also been named as defendants in several additional lawsuits that 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 Federated Funds retained the law firm of Dickstein Shapiro LLP to represent the Federated Funds in these lawsuits. Federated and the Federated Funds and their respective counsel have been defending this litigation and none of the Federated Funds remains a defendant in any of the lawsuits (though some could potentially receive any recoveries as nominal defendants). 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 Federated 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 Federated Fund redemptions, reduced sales of Federated Fund shares or other adverse consequences for the Federated Funds.

Evaluation and Approval of Advisory
Contract - May 2008

FEDERATED MDT SMALL CAP VALUE FUND (THE "FUND")

The Fund's Board reviewed the Fund's investment advisory contract at meetings held in May 2008. The Board's decision regarding the contract reflects the exercise of its business judgment on whether to continue the existing arrangements.

In this connection, the Federated funds' Board had previously appointed 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 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. The Board considered that evaluation, along with other information, in deciding to approve the advisory contract.

During its review of the contract, the Board considered compensation and benefits received by the Adviser. This included the fees received for services provided to the Fund by other entities in the Federated organization and research services received by the Adviser from brokers that execute Federated fund trades, as well as advisory fees. The Board is also familiar with and considered 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 a fund grows larger; any indirect benefits that may accrue to the Adviser and its affiliates as a result of the Adviser's relationship with a 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 what might be viewed as like services, and the cost 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 for supplying such services. The Board was aware of these factors and was guided by them in its review of the Fund's advisory contract to the extent it considered them to be appropriate and relevant, as discussed further below.

The Board considered and weighed these circumstances in light of its substantial accumulated experience in governing the Fund and working with Federated on matters relating to the Federated funds, and was assisted in its deliberations by independent legal counsel. Throughout the year, the Board has requested and received substantial and detailed information about the Fund and the Federated organization that was in addition to the extensive materials that comprise and accompany the Senior Officer's evaluation. Federated provided much of this information at each regular meeting of the Board, and furnished additional reports in connection with the particular meeting at which the Board's formal review of the advisory contract occurred. Between regularly scheduled meetings, the Board also received information on particular matters as the need arose. Thus, 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 short- and long-term performance (in absolute terms, both on a gross basis and net of expenses, as well as in relationship to its particular investment program and certain competitor or "peer group" funds and/or other benchmarks, as appropriate), and comments on the reasons for performance; the Fund's investment objectives; the Fund's expenses (including the advisory fee 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 use and allocation of brokerage commissions derived from trading the Fund's portfolio securities (if any); and the nature, quality and extent of the advisory and other services provided to the Fund by the Adviser and its affiliates. The Board also considered the preferences and expectations of Fund shareholders 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 performance and 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 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 competes. The Fund's ability to deliver competitive performance when compared to its peer group was a useful indicator of how the Adviser is executing 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 continuation of the advisory contract. In this regard, the Senior Officer has 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 include, but are not limited to, different types of targeted investors; being subject to different laws and regulations; different legal structures; different average account sizes; different associated costs; and different 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, using data supplied by independent fund ranking organizations, regarding the performance of, and fees charged by, other mutual funds, noting his view that comparisons to fund peer groups are highly important in judging the reasonableness of proposed fees. He also observed that certain funds may exhibit important differences in their objectives and management techniques when compared to other funds placed in the same peer group by ranking organizations, noting in this connection that the Fund's quantitative investment program is of such a type.

For the one-year period ending December 31, 2007, the Fund's performance was above the median of the relevant peer group. In addition, the Board was informed by the Adviser that, for the same period, the Fund outperformed its benchmark index for the one-year period.

The Board also received financial information about Federated, including reports on the compensation and benefits Federated derived from its relationships with the Federated funds. These reports covered 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 discussed any indirect benefit Federated may derive from its receipt of research services from brokers who execute Federated fund trades. In addition, the Board considered the fact that, in order for a fund to be competitive in the marketplace, Federated and its affiliates frequently waived fees and/or reimbursed expenses and have disclosed to fund investors and/or indicated to the Board their intention to do so in the future, where appropriate.

Federated furnished reports, requested by the Senior Officer, that reported revenues on a fund-by-fund basis and made estimates of the allocation of expenses on a fund-by-fund basis, using allocation methodologies specified by the Senior Officer. The Senior Officer noted that, although they may apply consistent allocation processes, the inherent difficulties in allocating costs (and the unavoidable arbitrary aspects of that exercise) and the lack of consensus on how to allocate those costs may render such allocation reports unreliable. The allocation reports were considered in the analysis by the Board but were determined to be of limited use.

The Board and the Senior Officer also reviewed a report compiled by Federated comparing profitability information for Federated to other publicly held fund management companies. In this regard, the Senior Officer noted the limited availability of such information, but nonetheless concluded that Federated's profit margins did not appear to be excessive and the Board agreed.

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 and long-term investments in areas that support all of the Federated funds, such as personnel and processes for the portfolio management, compliance, and risk management functions; and systems technology; and that the benefits of these efforts (as well as 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 (as discussed in the Senior Officer's evaluation) 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.

It was noted in the materials for the Board meeting that for the Fund's most recently completed fiscal year, the Fund's investment advisory fee was waived in its entirety. The Board reviewed the contractual fee rate and other expenses of the Fund with the Adviser and was satisfied that the overall expense structure of the Fund remained competitive.

The Senior Officer's evaluation noted his belief that the information and observations contained in his evaluation supported a finding that the proposed management fees are reasonable, and that Federated appeared to provide appropriate administrative services to the Fund for the fees paid. Under these circumstances, no changes were recommended to, and no objection was raised to, the continuation of the Fund's advisory contract. The Board concluded that the nature, quality and scope of services provided the Fund by the Adviser and its affiliates were satisfactory.

In its decision to continue an existing investment advisory contract, the Board was mindful of the potential disruptions of the Fund's operations and various risks, uncertainties and other effects that could occur as a result of a decision to terminate or not renew an advisory contract. In particular, the Board recognized that most shareholders have invested in the Fund on the strength of the Adviser's industry standing and reputation and with the expectation that the Adviser will have a continuing ole in providing advisory services to the Fund. Thus, the Board's approval of the advisory contract reflected the fact that it is the shareholders who have effectively selected the Adviser by virtue of having invested in the Fund.

The Board 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. Not all of the factors and considerations identified above were necessarily relevant to the Fund, nor did the Board consider any one of them to be determinative. With respect to the factors that were relevant, the Board's decision to approve the contract reflects its determination that Federated's performance and actions provided a satisfactory basis to support the decision to continue the existing 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 from Federated's website at FederatedInvestors.com. To access this information from the "Products" section of the website, click on the "Prospectuses and Regulatory Reports" link under "Related Information," then select the appropriate link opposite the name of the Fund; or select the name of the Fund and from the Fund's page, click on the "Prospectuses and Regulatory Reports" link. Form N-PX filings are also available at 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" under "Related Information," then selecting the appropriate link opposite the name of the Fund; or select the name of the Fund and from the Fund's page, click on the "Portfolio Holdings" link.

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 or its 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 (3/09)

Federated is a registered mark of Federated Investors, Inc. 2009 (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, 2009

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,				Period Ended
	1/31/2009		2008		2007	1	7/31/2006	2
Net Asset Value, Beginning of Period	$10.41		$11.42		$10.64		$10.00
Income From Investment Operations:
Net investment income (loss)	(0.00	) 3,4	(0.01	) 3	(0.02	) 3	(0.03	) 3
Net realized and unrealized gain (loss) on investments	(3.92	)	(0.24	)	0.80		0.67
TOTAL FROM INVESTMENT OPERATIONS	(3.92	)	(0.25	)	0.78		0.64
Less Distributions:
Distributions from net realized gain on investments	- --		(0.76	)	- --		- --
Net Asset Value, End of Period	$6.49		$10.41		$11.42		$10.64
Total Return 5	(37.66	)%	(2.41	)%	7.33	%	6.40	%
Ratios to Average Net Assets:
Net expenses	1.50	% 6	1.50	%	1.50	%	1.75	% 6
Net investment income (loss)	(0.06	)% 6	(0.08	)%	(0.17	)%	(0.34	)% 6
Expense waiver/reimbursement 7	1.86	% 6	2.80	%	3.75	%	34.07	% 6
Supplemental Data:
Net assets, end of period (000 omitted)	$14,561		$21,381		$11,192		$599
Portfolio turnover	126	%	245	%	240	%	124	%

1 MDT Small Cap Value Fund (the "Predecessor Fund") was reorganized into the 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 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

Shareholder Expense Example (unaudited)

As a shareholder of the Fund, you incur ongoing costs, including management fees and to the extent applicable, distribution (12b-1) fees and/or 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, 2008 to January 31, 2009.

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 8/1/2008	Ending Account Value 1/31/2009	Expenses Paid During Period 1
Actual	$1,000	$ 623.40	$6.14
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 (unaudited)

At January 31, 2009, the Fund's industry composition ¹ was as follows:

Industry	Percentage of Total Net Assets
Electric Utility	11.2	%
Property Liability Insurance	8.0	%
Multi-Line Insurance	6.7	%
Airline - National	4.2	%
Airline - Regional	3.7	%
Oil Refiner	3.3	%
Financial Services	3.2	%
Securities Brokerage	3.1	%
Regional Bank	3.0	%
Undesignated Consumer Cyclicals	2.7	%
Contracting	2.4	%
Defense Aerospace	2.4	%
Grocery Chain	2.4	%
Savings & Loan	2.4	%
Gas Distributor	1.9	%
Home Health Care	1.8	%
Insurance Brokerage	1.7	%
Computer Services	1.5	%
Life Insurance	1.5	%
Telecommunication Equipment & Services	1.3	%
Apparel	1.2	%
Clothing Stores	1.2	%

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.

Industry	Percentage of Total Net Assets
Specialty Retailing	1.2	%
Biotechnology	1.1	%
Building Materials	1.1	%
Medical Technology	1.1	%
Multi-Industry Basic	1.1	%
Other Steel Producer	1.1	%
Cellular Communications	1.0	%
Food Wholesaling	1.0	%
Metal Fabrication	1.0	%
Other 2	17.7	%
Cash Equivalents 3	2.0	%
Other Assets and Liabilities--Net 4	(0.2	)%
TOTAL	100.0	%

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, 2009 (unaudited)

Shares					Value
			COMMON STOCKS--98.2%
			Airline - National--4.2%
	20,215	1	Continental Airlines, Inc., Class B	$	272,296
	45,834	1	Jet Blue Airways Corp.		258,045
	19,598	1	UAL Corp.		185,005
	17,304	1	US Airways Group, Inc.		98,114
			TOTAL		813,460
			Airline - Regional--3.7%
	26,475	1	AirTran Holdings, Inc.		108,548
	12,633	1	Alaska Air Group, Inc.		333,006
	3,607	1	Hawaiian Holdings, Inc.		14,680
	11,744	1	Republic Airways Holdings, Inc.		96,183
	10,752		SkyWest, Inc.		168,269
			TOTAL		720,686
			Apparel--1.2%
	7,241		Columbia Sportswear Co.		207,961
	4,771	1	G-III Apparel Group Ltd.		26,241
			TOTAL		234,202
			Auto Original Equipment Manufacturers--0.7%
	5,492	1	Fuel Systems Solutions, Inc.		143,561
			Baking--0.4%
	3,971		Lance, Inc.		74,774
			Biotechnology--1.1%
	4,357	1	Emergent Biosolutions, Inc.		95,549
	10,447	1	ViroPharma, Inc.		125,364
			TOTAL		220,913
			Book Publishing--0.2%
	3,346		Scholastic Corp.		36,471
			Building Materials--1.1%
	903		Insteel Industries, Inc.		6,953
	5,154		Simpson Manufacturing Co., Inc.		103,441
	6,521	1	Trex Co., Inc.		96,445
			TOTAL		206,839
Shares					Value
			COMMON STOCKS--continued
			Cellular Communications--1.0%
	18,187	1	USA Mobility, Inc.	$	192,237
			Clothing Stores--1.2%
	2,788	1	Children's Place Retail Stores, Inc.		52,442
	6,514	1	Jos A. Bank Clothiers, Inc.		178,874
			TOTAL		231,316
			Commodity Chemicals--0.5%
	419		Compass Minerals International, Inc.		25,211
	1,069		Innophos Holdings, Inc.		16,174
	1,534		Newmarket Corp.		48,321
			TOTAL		89,706
			Computer Networking--0.9%
	63,480	1	3Com Corp.		147,908
	2,286	1	Avocent Corp.		32,804
			TOTAL		180,712
			Computer Peripherals--0.5%
	2,422	1	Emulex Corp.		13,830
	17,261	1	RadiSys Corp.		81,645
			TOTAL		95,475
			Computer Services--1.5%
	4,455	1	CACI International, Inc., Class A		201,143
	6,045	1	Synnex Corp.		92,791
			TOTAL		293,934
			Construction Machinery--0.0%
	92	1	NCI Building System, Inc.		1,066
			Contracting--2.4%
	6,762	1	Baker Michael Corp.		236,400
	497		Comfort Systems USA, Inc.		5,084
	2,056		Granite Construction, Inc.		72,412
	4,732	1	Insituform Technologies, Inc., Class A		88,772
	2,444	1	Perini Corp.		50,957
			TOTAL		453,625
Shares					Value
			COMMON STOCKS--continued
			Cosmetics & Toiletries--0.0%
	365	1	Elizabeth Arden, Inc.	$	2,128
			Crude Oil & Gas Production--0.2%
	7,383	1	Harvest Natural Resources, Inc.		29,532
			Defense Aerospace--2.4%
	11,251	1	AAR Corp.		204,093
	3,109		Ducommun, Inc.		58,884
	10,053		Kaman Corp., Class A		191,912
			TOTAL		454,889
			Discount Department Stores--0.4%
	7,616		Freds, Inc.		78,140
			Diversified Leisure--0.1%
	447		International Speedway Corp., Class A		10,406
			Electric & Electric Original Equipment Manufacturer--0.8%
	5,710		Cubic Corp.		155,084
			Electrical Test/Measuring Equipment--0.1%
	708	1	Multi-Fineline Electronix, Inc.		13,119
			Electric Utility--11.2%
	15,764		Avista Corp.		300,147
	13,838		Cleco Corp.		316,198
	9,615	1	El Paso Electric Co.		159,032
	14,562		Empire Distribution Electric Co.		258,621
	4,273		Idacorp, Inc.		124,387
	8,923		Northwestern Corp.		216,026
	13,611	1	Pike Electric Corp.		153,124
	21,424		Portland General Electric Co.		416,697
	7,452		UniSource Energy Corp.		210,444
			TOTAL		2,154,676
			Electrical Equipment--0.4%
	1,511	1	EnerSys, Inc.		13,765
	2,204		Franklin Electronics, Inc.		57,282
			TOTAL		71,047
Shares					Value
			COMMON STOCKS--continued
			Electronic Instruments--0.1%
	326	1	Axsys Technologies, Inc.	$	13,920
			Ethical Drugs--0.1%
	3,409	1	Salix Pharmaceuticals Ltd.		27,272
			Financial Services--3.2%
	2,378		AMBAC Assurance Corporation		2,711
	12,840	1	America's Car-Mart, Inc.		116,716
	14,257		Blackrock Kelso Capital Corp.		120,899
	2,350		First Financial Corp.		77,903
	4,457		Hercules Technology Growth Capital, Inc.		29,104
	20,127	1	MBIA Insurance Corp.		77,690
	11,848	1	Nelnet, Inc., Class A		163,739
	2,075		United Financial Bancorp, Inc.		28,448
			TOTAL		617,210
			Food Wholesaling--1.0%
	4,668		Nash Finch Co.		200,864
			Furniture--0.9%
	7,361		Aaron Rents, Inc.		160,911
	1,351		Ethan Allen Interiors, Inc.		15,388
			TOTAL		176,299
			Gas Distributor--1.9%
	14,197		Southwest Gas Corp.		365,715
			Generic Drugs--0.2%
	1,389	1	Par Pharmaceutical Cos., Inc.		17,099
	506		Perrigo Co.		14,851
			TOTAL		31,950
			Greeting Cards--0.0%
	1,971		American Greetings Corp., Class A		8,554
			Grocery Chain--2.4%
	5,164		Casey's General Stores, Inc.		109,735
	4,813		Ruddick Corp.		115,753
	2,825	1	Susser Holdings Corp.		36,923
	11,640	1	The Pantry, Inc.		193,573
			TOTAL		455,984
Shares					Value
			COMMON STOCKS--continued
			Home Health Care--1.8%
	7,129	1	Amerigroup Corp.	$	199,398
	3,361	1	Gentiva Health Services, Inc.		84,966
	5,931	1	Odyssey Healthcare, Inc.		58,836
			TOTAL		343,200
			Home Products--0.0%
	1,388		Blyth Industries, Inc.		4,733
			Industrial Machinery--0.2%
	3,384		Met-Pro Corp.		37,089
			Insurance Brokerage--1.7%
	28,798		AmTrust Financial Services, Inc.		236,432
	2,208		Baldwin & Lyons, Inc., Class B		37,072
	4,076	1	Crawford & Co., Class B		36,562
	1,062	1	Texas Capital Bancshares, Inc.		11,990
			TOTAL		322,056
			Jewelry Stores--0.3%
	7,472		Movado Group, Inc.		57,385
			Life Insurance--1.5%
	20,673		American Equity Investment Life Holding Co.		138,302
	6,870		Delphi Financial Group, Inc., Class A		104,218
	4,449	1	Universal American Financial Corp.		43,912
			TOTAL		286,432
			Long-Term Care Centers--0.3%
	4,001	1	Kindred Healthcare, Inc.		54,294
			Maritime--0.3%
	6,072		TAL International Group, Inc.		63,635
			Medical Technology--1.1%
	5,410	1	Cantel Medical Corp.		81,096
	3,419	1	Greatbatch Technologies, Inc.		79,663
	3,119	1	Hanger Orthopedic Group, Inc.		42,574
			TOTAL		203,333
			Metal Fabrication--1.0%
	6,005	1	Ladish Co., Inc.		68,277
	1,506		Mueller Industries, Inc.		30,301
	9,112		Worthington Industries, Inc.		91,667
			TOTAL		190,245
Shares					Value
			COMMON STOCKS--continued
			Miscellaneous Communications--0.2%
	17,215	1	Internap Network Services Corp.	$	46,308
			Miscellaneous Food Products--0.1%
	1,479		The Anderson's, Inc.		24,241
			Miscellaneous Metals--0.7%
	27,572	1	USEC, Inc.		140,341
			Money Center Bank--0.2%
	1,476	1	Pennsylvania Commerce Bancorp, Inc.		30,258
			Multi-Industry Basic--1.1%
	17,903		Aceto Corp.		160,053
	3,343		Olin Corp.		46,969
			TOTAL		207,022
			Multi-Industry Capital Goods--0.0%
	90	1	Ceradyne, Inc.		2,054
	606	1	Gerber Scientific, Inc.		1,903
			TOTAL		3,957
			Multi-Line Insurance--6.7%
	15,457	1	Amerisafe, Inc.		289,510
	4,316		Donegal Group, Inc., Class A		60,510
	738		FBL Financial Group, Inc., Class A		7,609
	4,741	1	FPIC Insurance Group, Inc.		184,567
	6,409		Harleysville Group, Inc.		182,272
	3,063		Infinity Property & Casualty		117,619
	4,443	1	Navigators Group, Inc.		228,104
	6,198		Safety Insurance Group, Inc.		217,054
			TOTAL		1,287,245
			Offshore Driller--0.3%
	1,654	1	Hornbeck Offshore Services, Inc.		29,342
	5,204	1	Newpark Resources, Inc.		21,909
			TOTAL		51,251
			Oil Refiner--3.3%
	3,506		Alon USA Energy, Inc.		41,371
	25,850		Western Refining, Inc.		301,411
	8,849		World Fuel Services Corp.		298,831
			TOTAL		641,613
Shares					Value
			COMMON STOCKS--continued
			Oil Service, Explore & Drill--0.3%
	12,215	1	Boots & Coots International Well Control, Inc.	$	12,581
	1,151	1	Gulfmark Offshore, Inc.		27,555
	2,536	1	Superior Well Services, Inc.		23,306
			TOTAL		63,442
			Oil Well Supply--0.1%
	704		Lufkin Industries, Inc.		24,605
			Other Communications Equipment--0.1%
	1,755	1	Syniverse Holdings, Inc.		23,798
			Other Computer Hardware--0.1%
	830	1	EMS Technologies, Inc.		19,920
			Other Steel Producer--1.1%
	4,370	1	L.B. Foster Co.		115,324
	2,881	1	Northwest Pipe Co.		101,584
			TOTAL		216,908
			Packaged Foods--0.4%
	1,862	1	Hain Celestial Group, Inc.		28,340
	3,060	1	United Natural Foods, Inc.		47,552
			TOTAL		75,892
			Paint & Related Materials--0.1%
	3,991		Ferro Corp.		15,804
			Paper Products--0.9%
	9,262		Glatfelter (P.H.) Co.		80,672
	243	1	Kapstone Paper and Packaging Corp.		435
	2,946		Rock-Tenn Co.		91,827
			TOTAL		172,934
			Personal Loans--0.6%
	9,138	1	Ezcorp, Inc., Class A		124,003
			Personnel Agency--0.2%
	4,246		Barrett Business Services, Inc.		41,781
			Pollution Control--0.1%
	3,811	1	Spectrum Control, Inc.		27,592
			Printed Circuit Boards--0.0%
	6,795	1	Sanmina-SCI Corp.		2,242
Shares					Value
			COMMON STOCKS--continued
			Property Liability Insurance--8.0%
	4,311		American Physicians Capital, Inc.	$	183,304
	8,926		American Physicians Service Group, Inc.		187,446
	14,970	1	CNA Surety Corp.		247,753
	2,819		Horace Mann Educators Corp.		26,358
	7,946		OneBeacon Insurance Group Ltd.		67,144
	10,470	1	PMA Capital Corp.		57,690
	7,812	1	ProAssurance Corp.		369,195
	3,017		RLI Corp.		170,430
	8,190	1	Seabright Insurance Holdings, Inc.		84,930
	7,671		Selective Insurance Group, Inc.		117,750
	1,423		State Auto Financial Corp.		31,448
			TOTAL		1,543,448
			Psychiatric Centers--0.7%
	3,624	1	Magellan Health Services, Inc.		131,261
			Railroad--0.2%
	1,392	1	Genesee & Wyoming, Inc., Class A		37,821
			Recreational Goods--0.2%
	2,596	1	Steinway Musical Instruments		30,010
			Regional Bank--3.0%
	1,644		Bank of Marin Bancorp		33,036
	1,128		Bank of the Ozarks, Inc.		25,594
	604		City Holding Co.		15,529
	2,351		FNB Corp. (PA)		18,596
	12,956		First BanCorp		92,117
	2,690		First Midwest Bancorp, Inc.		26,900
	1,928		FirstMerit Corp.		31,176
	2,843		National Penn Bancshares, Inc.		27,520
	2,297		Oriental Financial Group		11,600
	2,653	1	Oritani Financial Corp.		39,556
	1,429		Prosperity Bancshares, Inc.		38,654
	4,257		Republic Bancorp, Inc.		76,626
	1,360		Southside Bancshares, Inc.		25,867
	4,632		Susquehanna Bankshares, Inc.		50,952
	2,013		TriCo Bancshares		40,542
	4,033		Wilshire Bancorp, Inc.		27,666
			TOTAL		581,931
Shares					Value
			COMMON STOCKS--continued
			Restaurant--0.5%
	5,600		Bob Evans Farms, Inc.	$	98,336
	30	1	CEC Entertainment, Inc.		700
			TOTAL		99,036
			Roofing & Wallboard--0.6%
	9,323	1	Beacon Roofing Supply, Inc.		118,682
			Savings & Loan--2.4%
	2,142		First Financial Holdings, Inc.		32,430
	521		Flushing Financial Corp.		4,126
	13,381	1	Investors Bancorp, Inc.		142,909
	674		OceanFirst Financial Corp.		8,641
	21,330	1	Ocwen Financial Corp.		189,837
	2,660		Roma Financial Corp.		30,271
	2,215		WSFS Financial Corp.		57,147
			TOTAL		465,361
			Securities Brokerage--3.1%
	22,905	1	Knight Capital Group, Inc., Class A		412,977
	24,608	1	Labranche & Co., Inc.		168,811
	1,846	1	Penson Worldwide, Inc.		11,039
			TOTAL		592,827
			Semiconductor Manufacturing--0.1%
	7,395	1	Triquint Semiconductor, Inc.		14,938
			Services to Medical Professionals--0.4%
	4,396	1	Molina Healthcare, Inc.		77,106
			Shoes--0.5%
	3,568	1	Collective Brands, Inc.		38,071
	413	1	Genesco, Inc.		6,360
	2,474	1	Steven Madden Ltd.		42,998
			TOTAL		87,429
			Software Packaged/Custom--0.4%
	103		Acxiom Corp.		980
	1,959	1	EPIQ Systems, Inc.		34,713
	3,848	1	Macrovision Solutions Corp.		50,447
			TOTAL		86,140
Shares					Value
			COMMON STOCKS--continued
			Specialty Chemicals--0.4%
	2,246		American Pacific Corp.	$	17,586
	1,100		Minerals Technologies, Inc.		41,591
	1,107		Sensient Technologies Corp.		23,801
			TOTAL		82,978
			Specialty Retailing--1.2%
	55	1	Conn's, Inc.		669
	15,152		Finish Line, Inc., Class A		71,972
	5,781	1	Hot Topic, Inc.		49,370
	4,771		Monro Muffler Brake, Inc.		115,792
			TOTAL		237,803
			Telecommunication Equipment & Services--1.3%
	9,084	1	Anaren Microwave, Inc.		107,373
	5,355	1	GeoEye, Inc.		92,374
	1,253		Plantronics, Inc.		12,718
	1,985	1	ViaSat, Inc.		43,988
			TOTAL		256,453
			Toys & Games--0.4%
	4,282	1	JAKKS Pacific, Inc.		78,532
			Trucking--0.4%
	3,940	1	Marten Transport Ltd.		69,580
			Undesignated Consumer Cyclicals--2.7%
	10,120	1	Career Education Corp.		220,616
	7,804	1	Cornell Corrections, Inc.		119,089
	1,210	1	LECG Corp.		3,957
	2,078	1	Lincoln Educational Services		30,380
	2,291		Speedway Motorsports, Inc.		33,082
	6,026	1	Universal Technical Institute, Inc.		105,636
			TOTAL		512,760
Shares					Value
			COMMON STOCKS--continued
			Undesignated Health--0.5%
	5,022	1	Healthspring, Inc.	$	87,483
			Uniforms--0.1%
	973		Unifirst Corp.		25,531
			Water Utility--0.3%
	1,279		California Water Service Group		55,637
			TOTAL COMMON STOCKS (IDENTIFIED COST $20,303,956)		18,932,072
			MUTUAL FUND--2.0%
	381,296	2,3	Prime Value Obligations Fund, Institutional Shares, 1.75% (AT NET ASSET VALUE)		381,296
			TOTAL INVESTMENTS--100.2% (IDENTIFIED COST $20,685,252) 4		19,313,368
			OTHER ASSETS AND LIABILITIES - NET--(0.2)% 5		(47,108	)
			TOTAL NET ASSETS--100%	$	19,266,260

1 Non-income-producing security.

2 Affiliated company.

3 7-Day net yield.

4 Also represents cost for federal tax purposes.

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

Note: The categories of investments are shown as a percentage of total net assets at January 31, 2009.

Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below:

Level 1--quoted prices in active markets for identical securities

Level 2--other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

Level 3--significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used, as of January 31, 2009, in valuing the Fund's assets carried at fair value:

Valuation Inputs	Investments in Securities
Level 1--Quoted Prices and Investments in Mutual Funds	$19,313,368
Level 2--Other Significant Observable Inputs	- --
Level 3--Significant Unobservable Inputs	- --
TOTAL	$19,313,368

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

January 31, 2009 (unaudited)

Assets:
Total investments in securities, at value including $381,296 of investments in an affiliated issuer (Note 5) (identified cost $20,685,252)			$	19,313,368
Cash				252
Income receivable				4,791
Receivable for investments sold				613,470
Receivable for shares sold				18,820
TOTAL ASSETS				19,950,701
Liabilities:
Payable for investments purchased	$	606,960
Payable for shares redeemed		31,280
Payable for portfolio accounting fees		12,662
Payable for distribution services fee (Note 5)		1,911
Payable for shareholder services fee (Note 5)		2,849
Accrued expenses		28,779
TOTAL LIABILITIES				684,441
Net assets for 2,988,308 shares outstanding			$	19,266,260
Net Assets Consist of:
Paid-in capital			$	32,295,247
Net unrealized depreciation of investments				(1,371,884	)
Accumulated net realized loss on investments				(11,631,802	)
Accumulated net investment income (loss)				(25,301	)
TOTAL NET ASSETS			$	19,266,260
Net Asset Value, Offering Price and Redemption Proceeds Per Share
Institutional Shares:
Net asset value per share ($14,561,066 ÷ 2,244,600 shares outstanding), no par value, unlimited shares authorized				$6.49
Offering price per share				$6.49
Redemption proceeds per share				$6.49
Class A Shares:
Net asset value per share ($1,949,290 ÷ 303,321 shares outstanding), no par value, unlimited shares authorized				$6.43
Offering price per share (100/94.50 of $6.43)				$6.80
Redemption proceeds per share				$6.43
Class C Shares:
Net asset value per share ($2,755,904 ÷ 440,387 shares outstanding), no par value, unlimited shares authorized				$6.26
Offering price per share				$6.26
Redemption proceeds per share (99.00/100 of $6.26)				$6.20

See Notes which are an integral part of the Financial Statements

Statement of Operations

Six Months Ended January 31, 2009 (unaudited)

Investment Income:
Dividends (including $4,894 received from an affiliated issuer (Note 5) and net of foreign taxes withheld of $501)							$	167,743
Expenses:
Investment adviser fee (Note 5)				$	133,591
Administrative personnel and services fee (Note 5)					115,946
Custodian fees					18,212
Transfer and dividend disbursing agent fees and expenses					30,807
Directors'/Trustees' fees					788
Auditing fees					10,924
Legal fees					2,946
Portfolio accounting fees					38,910
Distribution services fee--Class C Shares (Note 5)					11,636
Shareholder services fee--Class A Shares (Note 5)					3,214
Shareholder services fee--Class C Shares (Note 5)					3,879
Share registration costs					17,977
Printing and postage					17,087
Insurance premiums					2,431
Miscellaneous					1,370
TOTAL EXPENSES					409,718
Waivers and Reimbursements (Note 5):
Waiver/reimbursement of investment adviser fee	$	(133,591	)
Waiver of administrative personnel and services fee		(22,569	)
Reimbursement of other operating expenses		(60,514	)
TOTAL WAIVERS AND REIMBURSEMENTS					(216,674	)
Net expenses								193,044
Net investment income (loss)								(25,301	)
Realized and Unrealized Gain (Loss) on Investments:
Net realized loss on investments								(9,503,343	)
Net change in unrealized appreciation of investments								(1,688,790	)
Net realized and unrealized loss on investments								(11,192,133	)
Change in net assets resulting from operations							$	(11,217,434	)

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

		Six Months Ended (unaudited) 1/31/2009			Year Ended 7/31/2008
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	(25,301	)	$	(34,816	)
Net realized loss on investments		(9,503,343	)		(2,063,606	)
Net change in unrealized appreciation/depreciation of investments		(1,688,790	)		950,455
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		(11,217,434	)		(1,147,967	)
Distributions to Shareholders:
Distributions from net realized gain on investments
Institutional Shares		- --			(638,272	)
Class A Shares		- --			(198,621	)
Class C Shares		- --			(63,763	)
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS		- --			(900,656	)
Share Transactions:
Proceeds from sale of shares		7,000,546			21,054,023
Net asset value of shares issued to shareholders in payment of distributions declared		- --			316,054
Cost of shares redeemed		(4,271,707	)		(6,659,980	)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		2,728,839			14,710,097
Change in net assets		(8,488,595	)		12,661,474
Net Assets:
Beginning of period		27,754,855			15,093,381
End of period (including accumulated net investment income (loss) of $(25,301) and $0, respectively)	$	19,266,260		$	27,754,855

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

January 31, 2009 (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 nine 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. Each portfolio pays its own expenses. 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 Class A Shares and Class C Shares are presented separately. The investment objective of the Fund is long-term capital appreciation.

2. SIGNIFICANT ACCOUNTING POLICIES

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

Investment Valuation

In calculating its net asset value (NAV), the Fund generally values investments as follows:

• Equity securities listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market.
• Shares of other mutual funds are valued based upon their reported NAVs.
• Fixed-income securities acquired with remaining maturities greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Board of Trustees (the "Trustees").
• Fixed-income securities acquired with remaining maturities of 60 days or less are valued at their cost (adjusted for the accretion of any discount or amortization of any premium).
• Derivative contracts listed on exchanges are valued at their reported settlement or closing price.
• Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Trustees.

If the Fund cannot obtain a price or price evaluation from a pricing service for an investment, the Fund may attempt to value the investment based upon the mean of bid and asked quotations or fair value the investment based on price evaluations, from one or more dealers. If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could purchase or sell an investment at the price used to calculate the Fund's NAV.

Fair Valuation and Significant Events Procedures

The Trustees have authorized the use of pricing services to provide evaluations of the current fair value of certain investments for purposes of calculating the NAV. Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a "bid" evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and asked for the investment (a "mid" evaluation). The Fund normally uses bid evaluations for U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for other types of fixed-income securities and OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Trustees.

The Trustees also have adopted procedures requiring an investment to be priced at its fair value whenever the Adviser determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment's value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:

• With respect to securities traded in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures or options contracts;
• With respect to price evaluations of fixed-income securities determined before the close of regular trading on the NYSE, actions by the Federal Reserve Open Market Committee and other significant trends in U.S. fixed-income markets;
• Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; and
• Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, a natural disaster affecting the issuer's operations or regulatory changes or market developments affecting the issuer's industry.

The Trustees have approved the use of a pricing service to determine the fair value of equity securities traded principally in foreign markets when the Adviser determines that there has been a significant trend in the U.S. equity markets or in index futures trading. For other significant events, the Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Fund will determine the fair value of the investment using another method approved by the Trustees.

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

Investment transactions are accounted for on a trade-date basis. Realized gains and losses from investment transactions are recorded on an identified cost basis. Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Foreign dividends are recorded on the ex-dividend date or when the Fund is informed of the ex-dividend date. Distributions of net investment income 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 may bear certain expenses unique to that class such as distribution services 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. The Fund complies with the provisions of Financial Accounting Standards Board (FASB) Interpretation No. 48 (FIN 48), "Accounting for Uncertainty in Income Taxes." As of and during the six months ended January 31, 2009, the Fund did not have a liability for any uncertain tax positions. The Fund recognizes interest and penalties, if any, related to tax liabilities as income tax expense in the Statement of Operations. As of January 31, 2009, tax years 2006 through 2008 remain subject to examination by the Fund's major tax jurisdictions, which include the United States of America and the Commonwealth of Massachusetts.

The Fund may be subject to taxes imposed by governments of countries in which it invests. Such taxes are generally based on either income or gains earned or repatriated. The Fund accrues and applies such taxes to net investment income, net realized gains and net unrealized gains as income and/or gains are earned.

When-Issued and Delayed Delivery Transactions

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

Other

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

3. SHARES OF BENEFICIAL INTEREST

The following tables summarize share activity:

	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Institutional Shares:	Shares			Amount		Shares			Amount
Shares sold	593,820		$	5,067,251		1,548,526		$	16,894,234
Shares issued to shareholders in payment of distributions declared	- --			--		7,094			75,830
Shares redeemed	(402,145	)		(3,446,494	)	(482,513	)		(5,241,402	)
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS	191,675		$	1,620,757		1,073,107		$	11,728,662
	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Class A Shares:	Shares			Amount		Shares			Amount
Shares sold	63,207		$	539,950		134,417		$	1,472,044
Shares issued to shareholders in payment of distributions declared	--			--		17,137			182,165
Shares redeemed	(67,574	)		(511,986	)	(103,407	)		(1,103,930	)
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS	(4,367	)	$	27,964		48,147		$	550,279
	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Class C Shares:	Shares			Amount		Shares			Amount
Shares sold	169,826		$	1,393,345		256,136		$	2,687,745
Shares issued to shareholders in payment of distributions declared	--			--		5,566			58,059
Shares redeemed	(45,827	)		(313,227	)	(30,126	)		(314,648	)
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS	123,999		$	1,080,118		231,576		$	2,431,156
NET CHANGE RESULTING FROM SHARE TRANSACTIONS	311,307		$	2,728,839		1,352,830		$	14,710,097

4. FEDERAL TAX INFORMATION

At January 31, 2009, the cost of investments for federal tax purposes was $20,685,252. The net unrealized depreciation of investments for federal tax purposes was $1,371,884. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $1,006,682 and net unrealized depreciation from investments for those securities having an excess of cost over value of $2,378,566.

At July 31, 2008, the Fund had a capital loss carryforward of $176,370 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 2016.

5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated MDTA LLC is the Fund's investment adviser (the "Adviser"). The advisory agreement between the Fund and the Adviser provides for an annual fee equal to 1.15% of the Fund's average daily net assets. Prior to December 8, 2008, the Adviser agreed to waive all or a portion of the advisory fee and/or reimburse certain operating expenses excluding (interest, taxes and brokerage commissions) to no more than the following annual percentages for each Class of the Fund based on average daily net assets:

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

In addition, subject to the terms described in the Expense Limitation note, the Adviser may voluntarily choose to waive any additional portion of its fee and/or reimburse certain operating expenses of the Fund. 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, 2009, the Adviser waived $133,429 of its fee and reimbursed $60,514 of other operating expenses.

Administrative Fee

Federated Administrative Services (FAS), under the Administrative Services 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. Subject to the terms described in the Expense Limitation note, 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, 2009, the net fee paid to FAS was 0.804% of average daily net assets of the Fund. The Fund is currently being charged the minimum administrative fee; therefore the fee as a percentage of average aggregate daily net assets is greater than the amounts presented in the chart above. FAS waived $22,569 of its fee.

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 at the following percentages of average daily net assets annually, to compensate FSC:

Share Class Name	Percentage of Average Daily Net Assets of Class
Class A Shares	0.05%
Class C Shares	0.75%

Subject to the terms described in the Expense Limitation note, 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, 2009, FSC retained $8,491 of fees paid by the Fund. For the six months ended January 31, 2009, the Fund's Class A Shares did not incur a distribution services fee; however it may begin to incur this fee upon approval of the Trustees. On November 15, 2007, the Fund's Trustees approved an amendment to the Plan to reduce the distribution services fee for the Fund's Class A Shares from 0.25% to 0.05%. The amendment to the Plan became effective for the Fund on March 31, 2008.

Sales Charges

Front-end sales charges and contingent deferred sales charges (CDSC) do not represent expenses of the Fund. They are deducted from the proceeds of sales of Fund shares prior to investment or from redemption proceeds prior to remittance, as applicable. For the six months ended January 31, 2009, FSC retained $466 in sales charges from the sale of Class A Shares. FSC also retained $1,239 of CDSC relating to redemptions of Class C Shares.

Shareholder Services Fee

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. Subject to the terms described in the Expense Limitation note, FSSC may voluntarily reimburse the Fund for shareholder services fees. This voluntary reimbursement can be modified or terminated at any time. For the six months ended January 31, 2009, FSSC did not receive any fees paid by the Fund.

Expense Limitation

The Adviser and its affiliates (which may include FSC, FAS and FSSC) have voluntarily agreed to waive their fees and/or reimburse expenses so that the total operating expenses (as shown in the financial highlights) paid by the Fund's Institutional Shares, Class A Shares and Class C Shares (after the voluntary waivers and reimbursements) will not exceed 1.50%, 1.75% and 2.50%, respectively, for the fiscal year ending July 31, 2009. Although these actions are voluntary, the Adviser and its affiliates have agreed to continue these waivers and/or reimbursements at least through September 30, 2009.

General

Certain 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 affiliated mutual funds. For the six months ended January 31, 2009, the Adviser reimbursed $162. Transactions with the affiliated company during the six months ended January 31, 2009 were as follows:

Affiliate	Balance of Shares Held 7/31/2008	Purchases/ Additions	Sales/ Reductions	Balance of Shares Held 1/31/2009	Value	Dividend Income
Prime Value Obligations Fund, Institutional Shares	382,184	6,303,135	6,304,023	381,296	$381,296	$4,894

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, 2009, were as follows:

Purchases	$	32,001,972
Sales	$	29,399,678

7. LINE OF CREDIT

The Fund participates in a $100,000,000 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, 2009, there were no outstanding loans. During the six months ended January 31, 2009, the Fund did not utilize the LOC.

8. INTERFUND LENDING

Pursuant to an exemptive order issued by the Securities and Exchange Commission (SEC), the Fund, along with other funds advised by subsidiaries of Federated Investors, Inc., may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from other participating affiliated funds. As of January 31, 2009, there were no outstanding loans. During the six months ended January 31, 2009, the program was not utilized.

9. LEGAL PROCEEDINGS

Since October 2003, Federated Investors, Inc. and related entities (collectively, "Federated") and various Federated funds ("Federated Funds") have been 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 Federated Funds from the 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 entities have also been named as defendants in several additional lawsuits that 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 Federated Funds retained the law firm of Dickstein Shapiro LLP to represent the Federated Funds in these lawsuits. Federated and the Federated Funds and their respective counsel have been defending this litigation and none of the Federated Funds remains a defendant in any of the lawsuits (though some could potentially receive any recoveries as nominal defendants). 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 Federated 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 Federated Fund redemptions, reduced sales of Federated Fund shares or other adverse consequences for the Federated Funds.

Evaluation and Approval of Advisory
Contract - May 2008

FEDERATED MDT SMALL CAP VALUE FUND (THE "FUND")

The Fund's Board reviewed the Fund's investment advisory contract at meetings held in May 2008. The Board's decision regarding the contract reflects the exercise of its business judgment on whether to continue the existing arrangements.

In this connection, the Federated funds' Board had previously appointed 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 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. The Board considered that evaluation, along with other information, in deciding to approve the advisory contract.

During its review of the contract, the Board considered compensation and benefits received by the Adviser. This included the fees received for services provided to the Fund by other entities in the Federated organization and research services received by the Adviser from brokers that execute Federated fund trades, as well as advisory fees. The Board is also familiar with and considered 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 a fund grows larger; any indirect benefits that may accrue to the Adviser and its affiliates as a result of the Adviser's relationship with a 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 what might be viewed as like services, and the cost 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 for supplying such services. The Board was aware of these factors and was guided by them in its review of the Fund's advisory contract to the extent it considered them to be appropriate and relevant, as discussed further below.

The Board considered and weighed these circumstances in light of its substantial accumulated experience in governing the Fund and working with Federated on matters relating to the Federated funds, and was assisted in its deliberations by independent legal counsel. Throughout the year, the Board has requested and received substantial and detailed information about the Fund and the Federated organization that was in addition to the extensive materials that comprise and accompany the Senior Officer's evaluation. Federated provided much of this information at each regular meeting of the Board, and furnished additional reports in connection with the particular meeting at which the Board's formal review of the advisory contract occurred. Between regularly scheduled meetings, the Board also received information on particular matters as the need arose. Thus, 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 short- and long-term performance (in absolute terms, both on a gross basis and net of expenses, as well as in relationship to its particular investment program and certain competitor or "peer group" funds and/or other benchmarks, as appropriate), and comments on the reasons for performance; the Fund's investment objectives; the Fund's expenses (including the advisory fee 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 use and allocation of brokerage commissions derived from trading the Fund's portfolio securities (if any); and the nature, quality and extent of the advisory and other services provided to the Fund by the Adviser and its affiliates. The Board also considered the preferences and expectations of Fund shareholders 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 performance and 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 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 competes. The Fund's ability to deliver competitive performance when compared to its peer group was a useful indicator of how the Adviser is executing 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 continuation of the advisory contract. In this regard, the Senior Officer has 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 include, but are not limited to, different types of targeted investors; being subject to different laws and regulations; different legal structures; different average account sizes; different associated costs; and different 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, using data supplied by independent fund ranking organizations, regarding the performance of, and fees charged by, other mutual funds, noting his view that comparisons to fund peer groups are highly important in judging the reasonableness of proposed fees. He also observed that certain funds may exhibit important differences in their objectives and management techniques when compared to other funds placed in the same peer group by ranking organizations, noting in this connection that the Fund's quantitative investment program is of such a type.

For the one-year period ending December 31, 2007, the Fund's performance was above the median of the relevant peer group. In addition, the Board was informed by the Adviser that, for the same period, the Fund outperformed its benchmark index for the one-year period.

The Board also received financial information about Federated, including reports on the compensation and benefits Federated derived from its relationships with the Federated funds. These reports covered 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 discussed any indirect benefit Federated may derive from its receipt of research services from brokers who execute Federated fund trades. In addition, the Board considered the fact that, in order for a fund to be competitive in the marketplace, Federated and its affiliates frequently waived fees and/or reimbursed expenses and have disclosed to fund investors and/or indicated to the Board their intention to do so in the future, where appropriate.

Federated furnished reports, requested by the Senior Officer, that reported revenues on a fund-by-fund basis and made estimates of the allocation of expenses on a fund-by-fund basis, using allocation methodologies specified by the Senior Officer. The Senior Officer noted that, although they may apply consistent allocation processes, the inherent difficulties in allocating costs (and the unavoidable arbitrary aspects of that exercise) and the lack of consensus on how to allocate those costs may render such allocation reports unreliable. The allocation reports were considered in the analysis by the Board but were determined to be of limited use.

The Board and the Senior Officer also reviewed a report compiled by Federated comparing profitability information for Federated to other publicly held fund management companies. In this regard, the Senior Officer noted the limited availability of such information, but nonetheless concluded that Federated's profit margins did not appear to be excessive and the Board agreed.

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 and long-term investments in areas that support all of the Federated funds, such as personnel and processes for the portfolio management, compliance, and risk management functions; and systems technology; and that the benefits of these efforts (as well as 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 (as discussed in the Senior Officer's evaluation) 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.

It was noted in the materials for the Board meeting that for the Fund's most recently completed fiscal year, the Fund's investment advisory fee was waived in its entirety. The Board reviewed the contractual fee rate and other expenses of the Fund with the Adviser and was satisfied that the overall expense structure of the Fund remained competitive.

The Senior Officer's evaluation noted his belief that the information and observations contained in his evaluation supported a finding that the proposed management fees are reasonable, and that Federated appeared to provide appropriate administrative services to the Fund for the fees paid. Under these circumstances, no changes were recommended to, and no objection was raised to, the continuation of the Fund's advisory contract. The Board concluded that the nature, quality and scope of services provided the Fund by the Adviser and its affiliates were satisfactory.

In its decision to continue an existing investment advisory contract, the Board was mindful of the potential disruptions of the Fund's operations and various risks, uncertainties and other effects that could occur as a result of a decision to terminate or not renew an advisory contract. In particular, the Board recognized that most shareholders have invested in the Fund on the strength of the Adviser's industry standing and reputation and with the expectation that the Adviser will have a continuing ole in providing advisory services to the Fund. Thus, the Board's approval of the advisory contract reflected the fact that it is the shareholders who have effectively selected the Adviser by virtue of having invested in the Fund.

The Board 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. Not all of the factors and considerations identified above were necessarily relevant to the Fund, nor did the Board consider any one of them to be determinative. With respect to the factors that were relevant, the Board's decision to approve the contract reflects its determination that Federated's performance and actions provided a satisfactory basis to support the decision to continue the existing 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 from Federated's website at FederatedInvestors.com. To access this information from the "Products" section of the website, click on the "Prospectuses and Regulatory Reports" link under "Related Information," then select the appropriate link opposite the name of the Fund; or select the name of the Fund and from the Fund's page, click on the "Prospectuses and Regulatory Reports" link. Form N-PX filings are also available at 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" under "Related Information," then selecting the appropriate link opposite the name of the Fund; or select the name of the Fund and from the Fund's page, click on the "Portfolio Holdings" link.

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 intend to deliver a single copy of certain documents to each household in which more than one shareholder of the Fund resides (so-called "householding"), as permitted by applicable rules. The Fund's "householding" program covers its 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 or its 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 (3/09)

Federated is a registered mark of Federated Investors, Inc. 2009 (c)Federated Investors, Inc.

Federated
World-Class Investment Manager

Federated MDT Tax
Aware/All Cap Core Fund

Established 2005

A Portfolio of Federated MDT Series

SEMI-ANNUAL SHAREHOLDER REPORT

January 31, 2009

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)		Year Ended July 31,				Period Ended
	1/31/2009		2008		2007	1	7/31/2006	2
Net Asset Value, Beginning of Period	$10.84		$11.65		$10.35		$10.00
Income From Investment Operations:
Net investment income (loss)	0.01	3	(0.00	) 3,4	(0.02	) 3	(0.05	) 3
Net realized and unrealized gain (loss) on investments	(4.24	)	(0.81	)	1.32		0.40
TOTAL FROM INVESTMENT OPERATIONS	(4.23	)	(0.81	)	1.30		0.35
Less Distributions:
Distributions from net investment income	(0.00	) 4	- --		- --		- --
Net Asset Value, End of Period	$ 6.61		$10.84		$11.65		$10.35
Total Return 5	(38.98	)%	(6.95	)%	12.56	%	3.50	%
Ratios to Average Net Assets:
Net expenses	1.65	% 6	1.65	%	1.65	%	2.01	% 6
Net investment income (loss)	0.31	% 6	(0.02	)%	(0.14	)%	(0.50	)% 6
Expense waiver/reimbursement 7	3.13	% 6	3.12	%	5.81	%	3.71	% 6
Supplemental Data:
Net assets, end of period (000 omitted)	$4,716		$6,862		$3,903		$2,061
Portfolio turnover	148	%	183	%	154	%	182	%

1 MDT Tax Aware/All Cap Core Fund (the "Predecessor Fund") was reorganized into the 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 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)		Year Ended July 31,				Period Ended
	1/31/2009		2008		2007	1	7/31/2006	2
Net Asset Value, Beginning of Period	$10.60		$11.47		$10.27		$10.00
Income From Investment Operations:
Net investment income (loss)	(0.02	) 3	(0.08	) 3	(0.10	) 3	(0.13	) 3
Net realized and unrealized gain (loss) on investments	(4.14	)	(0.79	)	1.30		0.40
TOTAL FROM INVESTMENT OPERATIONS	(4.16	)	(0.87	)	1.20		0.27
Net Asset Value, End of Period	$ 6.44		$10.60		$11.47		$10.27
Total Return 4	(39.25	)%	(7.59	)%	11.68	%	2.70	%
Ratios to Average Net Assets:
Net expenses	2.40	% 5	2.37	%	2.40	%	2.76	% 5
Net investment income (loss)	(0.52	)% 5	(0.73	)%	(0.89	)%	(1.25	)% 5
Expense waiver/reimbursement 6	3.08	% 5	3.19	%	5.70	%	3.71	% 5
Supplemental Data:
Net assets, end of period (000 omitted)	$2,011		$3,587		$3,007		$1,329
Portfolio turnover	148	%	183	%	154	%	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 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 (unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase or redemption payments; and (2) ongoing costs, including management fees and to the extent applicable, distribution (12b-1) fees and/or 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, 2008 to January 31, 2009.

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 8/1/2008	Ending Account Value 1/31/2009	Expenses Paid During Period 1
Actual:
Class A Shares	$1,000	$ 610.20	$ 6.70
Class C Shares	$1,000	$ 607.50	$ 9.72
Hypothetical (assuming a 5% return before expenses):
Class A Shares	$1,000	$1,016.89	$ 8.39
Class C Shares	$1,000	$1,013.11	$12.18

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	1.65%
Class C Shares	2.40%

Portfolio of Investments Summary Table (unaudited)

At January 31, 2009, the Fund's industry composition ¹ was as follows:

Industry	Percentage of Total Net Assets
Electric Utility	8.1	%
Biotechnology	6.3	%
Railroad	4.8	%
Agricultural Chemicals	4.6	%
Property Liability Insurance	4.5	%
Undesignated Consumer Cyclicals	4.5	%
Computers - Midrange	4.4	%
Miscellaneous Food Products	4.2	%
Computers - High End	4.0	%
Multi-Line Insurance	3.6	%
Copper	3.4	%
Ethical Drugs	3.4	%
Home Building	2.7	%
Department Stores	2.4	%
Integrated International Oil	2.3	%
Software Packaged/Custom	2.3	%
Services to Medical Professionals	2.1	%
AT&T Divestiture	2.0	%
Diversified Leisure	1.9	%
Gas Distributor	1.3	%
Regional Bank	1.3	%
Defense Aerospace	1.2	%
Money Center Bank	1.2	%
Airline - Regional	1.0	%
Defense Electronics	1.0	%
Life Insurance	1.0	%
Medical Technology	1.0	%
Multi-Industry Capital Goods	1.0	%
Other 2	16.7	%
Cash Equivalents 3	2.6	%
Other Assets and Liabilities - Net 4	(0.8	)%
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, 2009 (unaudited)

Shares					Value
			COMMON STOCKS--98.2%
			Advertising--0.2%
	712		Omnicom Group, Inc.	$	18,434
			Agricultural Chemicals--4.6%
	324		FMC Corp.		14,457
	5,681		Monsanto Co.		432,097
	1,792		Mosaic Co. (The)		63,921
			TOTAL		510,475
			Agricultural Machinery--0.7%
	2,325		Deere & Co.		80,771
			Airline - Regional--1.0%
	2,113	1	Alaska Air Group, Inc.		55,699
	377		SkyWest, Inc.		5,900
	7,551		Southwest Airlines Co.		53,084
			TOTAL		114,683
			Apparel--0.3%
	509		V.F. Corp.		28,514
			AT&T Divestiture--2.0%
	8,822		AT&T, Inc.		217,198
			Auto Original Equipment Manufacturer--0.2%
	1,440		Johnson Controls, Inc.		18,014
	633		Superior Industries International, Inc.		6,501
			TOTAL		24,515
			Auto Rentals--0.1%
	327	1	AMERCO		10,055
			Biotechnology--6.3%
	158	1	Affymetrix, Inc.		502
	225	1	Alexion Pharmaceuticals, Inc.		8,296
	1,400	1	Amgen, Inc.		76,790
	496	1	Cephalon, Inc.		38,281
	94	1	Charles River Laboratories International, Inc.		2,294
	10,734	1	Gilead Sciences, Inc.		544,965
Shares					Value
			COMMON STOCKS--continued
			Biotechnology--continued
	213	1	Hospira, Inc.	$	5,304
	176	1	Myriad Genetics, Inc.		13,124
	1,118	1	Questcor Pharmaceuticals, Inc.		7,211
			TOTAL		696,767
			Broadcasting--0.3%
	845	1	American Tower Systems Corp.		25,637
	1,452		News Corp., Inc.		9,278
			TOTAL		34,915
			Building Materials--0.3%
	227		Ameron, Inc.		11,316
	1,697	1	Owens Corning, Inc.		22,638
	205		Universal Forest Products, Inc.		4,305
			TOTAL		38,259
			Cable TV--0.4%
	1,721	1	Discovery Communications Inc.		24,955
	1,599	1	Viacom, Inc., Class B		23,585
			TOTAL		48,540
			Cement--0.1%
	690		Texas Industries, Inc.		15,670
			Clothing Stores--0.7%
	847	1	Children's Place Retail Stores, Inc.		15,932
	2,729		Gap (The), Inc.		30,783
	1,000	1	Jos A. Bank Clothiers, Inc.		27,460
			TOTAL		74,175
			Commodity Chemicals--0.2%
	119		Compass Minerals International, Inc.		7,160
	1,078		Westlake Chemical Corp.		14,736
			TOTAL		21,896
			Computer Peripherals--0.3%
	710		Imation Corp.		6,915
	2,279	1	Sandisk Corp.		26,049
			TOTAL		32,964
			Computer Services--0.0%
	68	1	Stanley, Inc.		2,058
Shares					Value
			COMMON STOCKS--continued
			Computer Stores--0.1%
	406	1	Tech Data Corp.	$	7,353
			Computers - High End--4.0%
	4,864		IBM Corp.		445,786
			Computers - Low End--0.2%
	2,340	1	Dell, Inc.		22,230
			Computers - Midrange--4.4%
	14,158		Hewlett-Packard Co.		491,991
			Construction Machinery--0.5%
	1,674		Caterpillar, Inc.		51,643
	398		Joy Global, Inc.		8,290
			TOTAL		59,933
			Contracting--0.1%
	129		Harsco Corp.		3,060
	86	1	IHS, Inc., Class A		3,767
			TOTAL		6,827
			Copper--3.4%
	14,771		Freeport-McMoRan Copper & Gold, Inc.		371,343
			Crude Oil & Gas Production--0.3%
	280	1	Swift Energy Co.		4,290
	1,906		W&T Offshore, Inc.		23,958
			TOTAL		28,248
			Defense Aerospace--1.2%
	251	1	AAR Corp.		4,553
	2,729		Boeing Co.		115,464
	184		General Dynamics Corp.		10,438
	63		Triumph Group, Inc.		2,853
			TOTAL		133,308
			Defense Electronics--1.0%
	491	1	First Solar, Inc.		70,115
	274		Northrop Grumman Corp.		13,185
	443		Raytheon Co.		22,425
			TOTAL		105,725
Shares					Value
			COMMON STOCKS--continued
			Department Stores--2.4%
	1,098		Dillards, Inc., Class A	$	4,776
	4,636		Penney (J.C.) Co., Inc.		77,653
	1,670	1	Saks, Inc.		4,208
	4,290	1	Sears Holdings Corp.		175,547
			TOTAL		262,184
			Discount Department Stores--0.4%
	693	1	99 Cents Only Stores		5,807
	729	1	Dollar Tree, Inc.		31,136
	340		Family Dollar Stores, Inc.		9,442
			TOTAL		46,385
			Diversified Leisure--1.9%
	10,599		Carnival Corp.		192,796
	1,160	1	Gaylord Entertainment Co.		12,296
	756	1	Pinnacle Entertainment, Inc.		5,126
			TOTAL		210,218
			Electric & Electrical Original Equipment Manufacturers--0.1%
	769		Molex, Inc.		10,281
			Electric Utility--8.1%
	5,068		CMS Energy Corp.		59,549
	13,426		Edison International		437,285
	750		Idacorp, Inc.		21,832
	202		OGE Energy Corp.		4,985
	265		Pinnacle West Capital Corp.		8,870
	1,531		Public Service Enterprises Group, Inc.		48,334
	6,390		Sempra Energy		280,138
	1,675		TECO Energy, Inc.		20,117
	528		UniSource Energy Corp.		14,911
			TOTAL		896,021
			Electrical Equipment--0.1%
	151		American Science & Engineering, Inc.		11,778
			Electronic Testing/Measuring Equipment--0.0%
	155	1	Multi-Fineline Electronix, Inc.		2,872
Shares					Value
			COMMON STOCKS--continued
			Ethical Drugs--3.4%
	3,259		Eli Lilly & Co.	$	119,996
	2,514	1	Forest Laboratories, Inc., Class A		62,951
	5,509		Merck & Co., Inc.		157,282
	357	1	Noven Pharmaceuticals, Inc.		3,545
	2,234		Pfizer, Inc.		32,572
			TOTAL		376,346
			Food Wholesaling--0.1%
	429		SUPERVALU, Inc.		7,525
	201	1	Winn-Dixie Stores, Inc.		2,762
			TOTAL		10,287
			Furniture--0.0%
	557		Furniture Brands International, Inc.		1,142
			Gas Distributor--1.3%
	2,456		Energen Corp.		71,740
	77		New Jersey Resources Corp.		3,087
	214		ONEOK, Inc.		6,253
	1,454		Questar Corp.		49,407
	923	1	Southern Union Co.		11,897
			TOTAL		142,384
			Grocery Chain--0.1%
	418		Safeway, Inc.		8,958
			Home Building--2.7%
	2,709		Centex Corp.		23,054
	4,597		D. R. Horton, Inc.		27,398
	3,509		Lennar Corp., Class A		26,984
	194	1	M/I Schottenstein Homes, Inc.		1,715
	7,910		Pulte Homes, Inc.		80,287
	1,451		Ryland Group, Inc.		22,636
	7,104	1	Toll Brothers, Inc.		120,910
			TOTAL		302,984
			Home Health Care--0.7%
	985	1	Amedisys, Inc.		40,611
	752	1	Amerigroup Corp.		21,033
	582	1	LHC Group, Inc.		15,487
			TOTAL		77,131
Shares					Value
			COMMON STOCKS--continued
			Home Products--0.1%
	107	1	Energizer Holdings, Inc.	$	5,096
			Hospitals--0.1%
	395		Universal Health Services, Inc., Class B		14,951
			Household Appliances--0.1%
	301		Whirlpool Corp.		10,062
			Industrial Machinery--0.2%
	345		Flowserve Corp.		18,392
			Insurance Brokerage--0.2%
	345		Odyssey Re Holdings Corp.		16,232
			Integrated International Oil--2.3%
	3,678		Chevron Corp.		259,373
			Internet Services--0.3%
	797	1	NetFlix, Inc.		28,804
			Jewelry Stores--0.0%
	140		Movado Group, Inc.		1,075
			Life Insurance--1.0%
	230		Aflac, Inc.		5,338
	615		American Equity Investment Life Holding Co.		4,114
	587		Delphi Financial Group, Inc., Class A		8,905
	43		MetLife, Inc.		1,235
	4,099		Old Republic International Corp.		42,302
	1,662		Torchmark Corp.		49,860
			TOTAL		111,754
			Long-Term Care Centers--0.0%
	286	1	Kindred Healthcare, Inc.		3,881
			Lumber Products--0.0%
	1,254	1	Louisiana-Pacific Corp.		2,608
			Maritime--0.1%
	315		Overseas Shipholding Group, Inc.		11,245
			Medical Supplies--0.3%
	67	1	Haemonetics Corp.		3,963
	153	1	Kinetic Concepts, Inc.		3,687
	500		McKesson HBOC, Inc.		22,100
	261	1	PetMed Express, Inc.		3,769
			TOTAL		33,519
Shares					Value
			COMMON STOCKS--continued
			Medical Technology--1.0%
	311	1	Cantel Medical Corp.	$	4,662
	735	1	Cyberonics, Inc.		11,312
	60	1	Edwards Lifesciences Corp.		3,449
	178	1	Gen-Probe, Inc.		8,014
	265	1	ResMed, Inc.		10,574
	1,627	1	Thoratec Laboratories Corp.		47,134
	794	1	Zimmer Holdings, Inc.		28,902
			TOTAL		114,047
			Metal Containers--0.2%
	370		Ball Corp.		14,186
	301	1	Crown Holdings, Inc.		5,644
			TOTAL		19,830
			Metal Fabrication--0.0%
	218		Timken Co.		3,246
			Miscellaneous Components--0.4%
	888		AVX Corp.		8,099
	683	1	Cree, Inc.		13,612
	1,596	1	International Rectifier Corp.		21,738
			TOTAL		43,449
			Miscellaneous Food Products--4.2%
	14,787		Archer-Daniels-Midland Co.		404,868
	2,505	1	Fresh Del Monte Produce, Inc.		60,371
			TOTAL		465,239
			Miscellaneous Machinery--0.1%
	202		Parker-Hannifin Corp.		7,718
	257		Rockwell Automation, Inc.		6,692
			TOTAL		14,410
			Miscellaneous Metals--0.1%
	1,423	1	USEC, Inc.		7,243
			Money Center Bank--1.2%
	3,658		Bank of New York Mellon Corp.		94,157
	2,601		U.S. Bancorp		38,599
			TOTAL		132,756
Shares					Value
			COMMON STOCKS--continued
			Mortgage and Title--0.1%
	400		Stewart Information Services Corp.	$	5,936
			Motion Pictures--0.2%
	893		Walt Disney Co.		18,467
			Multi-Industry Capital Goods--1.0%
	1,989		Honeywell International, Inc.		65,259
	3,029		KBR, Inc.		42,891
	701		Textron, Inc.		6,330
			TOTAL		114,480
			Multi-Line Insurance--3.6%
	6,740		Allstate Corp.		146,056
	283	1	Amerisafe, Inc.		5,301
	458		Cincinnati Financial Corp.		10,044
	153		Infinity Property & Casualty		5,875
	16,138		UNUMProvident Corp.		228,514
			TOTAL		395,790
			Office Equipment--0.1%
	649		Pitney Bowes, Inc.		14,447
			Offshore Driller--0.4%
	715	1	Transocean Ltd.		39,053
			Oil Refiner--0.9%
	1,179		Sunoco, Inc.		54,611
	1,753		Western Refining, Inc.		20,440
	668		World Fuel Services Corp.		22,558
			TOTAL		97,609
			Oil Service, Explore & Drill--0.1%
	1,265		Patterson-UTI Energy, Inc.		12,093
			Oil Well Supply--0.1%
	188		Baker Hughes, Inc.		6,264
	358	1	Dril-Quip, Inc.		8,771
			TOTAL		15,035
			Packaged Foods--0.1%
	690		ConAgra Foods, Inc.		11,799
	112		Hershey Foods Corp.		4,175
			TOTAL		15,974
Shares					Value
			COMMON STOCKS--continued
			Paper Products--0.4%
	3,335		MeadWestvaco Corp.	$	38,819
			Personal Loans--0.5%
	2,484		Capital One Financial Corp.		39,347
	1,192	1	Ezcorp, Inc., Class A		16,175
			TOTAL		55,522
			Personnel Agency--0.0%
	274		Kelly Services, Inc., Class A		2,482
			Pollution Control--0.0%
	63	1	Stericycle, Inc.		3,082
			Printing--0.0%
	363		Donnelley (R.R.) & Sons Co.		3,543
			Property Liability Insurance--4.5%
	2,605		Berkley, W. R. Corp.		68,980
	334	1	CNA Surety Corp.		5,528
	3,064		Chubb Corp.		130,465
	461		Employers Holdings, Inc.		6,242
	939		HCC Insurance Holdings, Inc.		21,982
	1,331		Progressive Corp., OH		16,172
	6,463		The Travelers Cos., Inc.		249,730
			TOTAL		499,099
			Railroad--4.8%
	9,512		CSX Corp.		275,468
	3,186		Norfolk Southern Corp.		122,215
	2,992		Union Pacific Corp.		131,020
			TOTAL		528,703
			Recreational Goods--0.3%
	563		Callaway Golf Co.		4,284
	1,220	1	WMS Industries, Inc.		27,108
			TOTAL		31,392
			Recreational Vehicles--0.0%
	1,335		Brunswick Corp.		3,711
Shares					Value
			COMMON STOCKS--continued
			Regional Bank--1.3%
	1,559		BB&T Corp.	$	30,853
	333		Central Pacific Financial Corp.		2,241
	707		East West Bancorp, Inc.		6,709
	2,612		Marshall & Ilsley Corp.		14,914
	295		PNC Financial Services Group		9,593
	2,231		Popular, Inc.		6,113
	243		Regions Financial Corp.		841
	519		South Financial Group, Inc.		976
	5,268		SunTrust Banks, Inc.		64,586
	212		Whitney Holding Corp.		2,754
	521		Wintrust Financial Corp.		6,966
			TOTAL		146,546
			Restaurant--0.3%
	136	1	CEC Entertainment, Inc.		3,174
	454		Darden Restaurants, Inc.		11,904
	258	1	Green Mountain Coffee, Inc.		9,871
	66	1	Panera Bread Co.		3,101
			TOTAL		28,050
			Roofing & Wallboard--0.2%
	383	1	Beacon Roofing Supply, Inc.		4,876
	2,197	1	USG Corp.		14,302
			TOTAL		19,178
			Rubber--0.0%
	782		Cooper Tire & Rubber Co.		3,652
			Savings & Loan--0.2%
	2,002		Hudson City Bancorp, Inc.		23,223
			Securities Brokerage--0.5%
	996	1	Interactive Brokers Group, Inc., Class A		15,209
	242	1	Knight Capital Group, Inc., Class A		4,363
	362	1	Labranche & Co., Inc.		2,483
	1,574		Raymond James Financial, Inc.		29,135
			TOTAL		51,190
Shares					Value
			COMMON STOCKS--continued
			Semiconductor Distribution--0.8%
	2,872	1	Arrow Electronics, Inc.	$	54,769
	839	1	Avnet, Inc.		16,629
	854	1	FormFactor, Inc.		13,288
			TOTAL		84,686
			Semiconductor Manufacturing--0.3%
	502	1	ATMI, Inc.		6,782
	5,481	1	Micron Technology, Inc.		20,389
	311	1	Plexus Corp.		4,497
			TOTAL		31,668
			Semiconductor Manufacturing Equipment--0.3%
	2,582	1	Novellus Systems, Inc.		35,606
			Services to Medical Professionals--2.1%
	984	1	Centene Corp.		17,446
	326	1	Coventry Health Care, Inc.		4,932
	207	1	Genoptix, Inc.		7,017
	1,000	1	Humana, Inc.		37,930
	280	1	Medco Health Solutions, Inc.		12,580
	588		Omnicare, Inc.		16,440
	4,903		UnitedHealth Group, Inc.		138,902
	83	1	Wellpoint, Inc.		3,440
			TOTAL		238,687
			Shoes--0.1%
	382	1	Genesco, Inc.		5,883
			Soft Drinks--0.2%
	408	1	Dr. Pepper Snapple Group, Inc.		6,712
	609		The Pepsi Bottling Group, Inc.		11,748
			TOTAL		18,460
			Software Packaged/Custom--2.3%
	664	1	Computer Sciences Corp.		24,462
	875	1	DST Systems, Inc.		27,799
	4,212	1	F5 Networks, Inc.		93,380
	4,007		Microsoft Corp.		68,520
	699	1	Solera Holdings, Inc.		16,839
	1,756	1	Symantec Corp.		26,919
			TOTAL		257,919
Shares					Value
			COMMON STOCKS--continued
			Specialty Chemicals--0.6%
	372		Air Products & Chemicals, Inc.	$	18,712
	596		Albemarle Corp.		13,261
	189	1	Calgon Carbon Corp.		2,376
	243		Chemed Corp.		9,752
	249		Cytec Industries, Inc.		5,090
	95		Lubrizol Corp.		3,241
	896	1	OM Group, Inc.		17,364
			TOTAL		69,796
			Specialty Retailing--0.3%
	1,477	1	CarMax, Inc.		12,215
	2,252		Williams-Sonoma, Inc.		17,836
			TOTAL		30,051
			Stainless Steel Producer--0.5%
	2,549		Allegheny Technologies, Inc.		56,307
			Telecommunication Equipment & Services--0.2%
	5,703		Motorola, Inc.		25,264
			Tools And Hardware--0.1%
	233		Snap-On, Inc.		7,032
			Toys & Games--0.1%
	727	1	JAKKS Pacific, Inc.		13,333
			Trucking--0.0%
	192		Arkansas Best Corp.		4,491
			Undesignated Consumer Cyclicals--4.5%
	532	1	Apollo Group, Inc., Class A		43,337
	3,175	1	Corinthian Colleges, Inc.		59,309
	833		DeVRY, Inc.		44,632
	2,677	1	ITT Educational Services, Inc.		327,959
	536		Speedway Motorsports, Inc.		7,740
	69		Strayer Education, Inc.		14,934
			TOTAL		497,911
Shares					Value
			COMMON STOCKS--continued
			Uniforms--0.0%
	80		Unifirst Corp.	$	2,099
			Water Utility--0.1%
	625		Aqua America, Inc.		12,962
			TOTAL COMMON STOCKS (IDENTIFIED COST $11,622,394)		10,878,047
			MUTUAL FUND--2.6%
	285,275	2,3	Prime Value Obligations Fund, Institutional Shares, 1.75% (AT NET ASSET VALUE)		285,275
			TOTAL INVESTMENTS--100.8% (IDENTIFIED COST $11,907,669) 4		11,163,322
			OTHER ASSETS AND LIABILITIES - NET--(0.8)% 5		(87,884	)
			TOTAL NET ASSETS--100%	$	11,075,438

1 Non-income-producing security.

2 Affiliated company.

3 7-Day net yield.

4 Also represents cost for federal tax purposes.

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

Note: The categories of investments are shown as a percentage of total net assets at January 31, 2009.

Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below:

Level 1--quoted prices in active markets for identical securities

Level 2--other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

Level 3--significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used, as of January 31, 2009, in valuing the Fund's assets carried at fair value:

Valuation Inputs	Investments in Securities
Level 1--Quoted Prices and Investments in Mutual Funds	$11,163,322
Level 2--Other Significant Observable Inputs	- --
Level 3--Significant Unobservable Inputs	- --
TOTAL	$11,163,322

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

January 31, 2009 (unaudited)

Assets:
Total investments in securities, at value including $285,275 of investments in an affiliated issuer (Note 5) (identified cost $11,907,669)			$	11,163,322
Income receivable				9,798
Receivable for investments sold				331,021
Receivable for shares sold				71,912
TOTAL ASSETS				11,576,053
Liabilities:
Payable for investments purchased	$	336,123
Payable for shares redeemed		118,239
Payable for auditing fees		10,924
Payable for portfolio accounting fees		12,070
Payable for distribution services fee (Note 5)		2,140
Payable for shareholder services fee (Note 5)		3,885
Accrued expenses		17,234
TOTAL LIABILITIES				500,615
Net assets for 1,680,838 shares outstanding			$	11,075,438
Net Assets Consist of:
Paid-in capital			$	18,819,159
Net unrealized depreciation of investments				(744,347	)
Accumulated net realized loss on investments				(6,994,454	)
Distributions in excess of net investment income				(4,920	)
TOTAL NET ASSETS			$	11,075,438

Statement of Assets and Liabilities - continued

Net Asset Value, Offering Price and Redemption Proceeds Per Share
Institutional Shares:
Net asset value per share ($4,348,372 ÷ 655,234 shares outstanding), no par value, unlimited shares authorized	$6.64
Offering price per share	$6.64
Redemption proceeds per share	$6.64
Class A Shares:
Net asset value per share ($4,716,100 ÷ 713,347 shares outstanding), no par value, unlimited shares authorized	$6.61
Offering price per share (100/94.50 of $6.61)	$6.99
Redemption proceeds per share	$6.61
Class C Shares:
Net asset value per share ($2,010,966 ÷ 312,257 shares outstanding), no par value, unlimited shares authorized	$6.44
Offering price per share	$6.44
Redemption proceeds per share (99.00/100 of $6.44)	$6.38

See Notes which are an integral part of the Financial Statements

Statement of Operations

Six Months Ended January 31, 2009 (unaudited)

Investment Income:
Dividends (including $3,389 received from an affiliated issuer (Note 5) and net of foreign taxes withheld of $40)							$	133,216
Expenses:
Investment adviser fee (Note 5)				$	62,904
Administrative personnel and services fee (Note 5)					115,946
Custodian fees					15,053
Transfer and dividend disbursing agent fees and expenses					28,581
Directors'/Trustees' fees					805
Auditing fees					10,924
Legal fees					3,188
Portfolio accounting fees					40,148
Distribution services fee--Class C Shares (Note 5)					10,104
Shareholder services fee--Class A Shares (Note 5)					9,336
Shareholder services fee--Class C Shares (Note 5)					3,368
Share registration costs					17,220
Printing and postage					17,115
Insurance premiums					2,383
Interest expense					229
Miscellaneous					1,412
TOTAL EXPENSES					338,716
Waivers and Reimbursements (Note 5):
Waiver/reimbursement of investment adviser fee	$	(62,904	)
Waiver of administrative personnel and services fee		(22,615	)
Reimbursement of other operating expenses		(132,309	)
TOTAL WAIVERS AND REIMBURSEMENTS					(217,828	)
Net expenses								120,888
Net investment income								12,328
Realized and Unrealized Loss on Investments:
Net realized loss on investments								(5,310,298	)
Net change in unrealized appreciation of investments								(1,830,677	)
Net realized and unrealized loss on investments								(7,140,975	)
Change in net assets resulting from operations							$	(7,128,647	)

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

		Six Months Ended (unaudited) 1/31/2009			Year Ended 7/31/2008
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	12,328		$	(10,751	)
Net realized loss on investments		(5,310,298	)		(1,609,068	)
Net change in unrealized appreciation/depreciation of investments		(1,830,677	)		260,269
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		(7,128,647	)		(1,359,550	)
Distributions to Shareholders:
Distributions from net investment income
Institutional Shares		(12,123	)		- --
Class A Shares		(5,125	)		- --
Class C Shares		- --			- --
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS		(17,248	)		- --
Share Transactions:
Proceeds from sale of shares		10,679,729			11,846,604
Net asset value of shares issued to shareholders in payment of distributions declared		11,952			- --
Cost of shares redeemed		(7,802,391	)		(5,710,298	)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		2,889,290			6,136,306
Change in net assets		(4,256,605	)		4,776,756
Net Assets:
Beginning of period		15,332,043			10,555,287
End of period (including distributions in excess of net investment income of $(4,920) and $0, respectively)	$	11,075,438		$	15,332,043

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

January 31, 2009 (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 nine 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. Each portfolio pays its own expenses. 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 Institutional Shares are presented separately. The investment objective of the Fund is to provide long-term capital appreciation while seeking to minimize the impact of taxes.

2. SIGNIFICANT ACCOUNTING POLICIES

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

Investment Valuation

In calculating its net asset value (NAV), the Fund generally values investments as follows:

• Equity securities listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market.
• Shares of other mutual funds are valued based upon their reported NAVs.
• Fixed-income securities acquired with remaining maturities greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Board of Trustees (the "Trustees").
• Fixed-income securities acquired with remaining maturities of 60 days or less are valued at their cost (adjusted for the accretion of any discount or amortization of any premium).
• Derivative contracts listed on exchanges are valued at their reported settlement or closing price.
• Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Trustees.

If the Fund cannot obtain a price or price evaluation from a pricing service for an investment, the Fund may attempt to value the investment based upon the mean of bid and asked quotations or fair value the investment based on price evaluations, from one or more dealers. If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could purchase or sell an investment at the price used to calculate the Fund's NAV.

Fair Valuation and Significant Events Procedures

The Trustees have authorized the use of pricing services to provide evaluations of the current fair value of certain investments for purposes of calculating the NAV. Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a "bid" evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and asked for the investment (a "mid" evaluation). The Fund normally uses bid evaluations for U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for other types of fixed-income securities and OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Trustees.

The Trustees also have adopted procedures requiring an investment to be priced at its fair value whenever the Adviser determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment's value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:

• With respect to securities traded in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures or options contracts;
• With respect to price evaluations of fixed-income securities determined before the close of regular trading on the NYSE, actions by the Federal Reserve Open Market Committee and other significant trends in U.S. fixed-income markets;
• Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; and
• Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, a natural disaster affecting the issuer's operations or regulatory changes or market developments affecting the issuer's industry.

The Trustees have approved the use of a pricing service to determine the fair value of equity securities traded principally in foreign markets when the Adviser determines that there has been a significant trend in the U.S. equity markets or in index futures trading. For other significant events, the Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Fund will determine the fair value of the investment using another method approved by the Trustees.

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

Investment transactions are accounted for on a trade-date basis. Realized gains and losses from investment transactions are recorded on an identified cost basis. Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Foreign dividends are recorded on the ex-dividend date or when the Fund is informed of the ex-dividend date. Distributions of net investment income 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 may bear certain expenses unique to that class such as distribution services 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. The Fund complies with the provisions of Financial Accounting Standards Board (FASB) Interpretation No. 48 (FIN 48), "Accounting for Uncertainty in Income Taxes." As of and during the six months ended January 31, 2009, the Fund did not have a liability for any uncertain tax positions. The Fund recognizes interest and penalties, if any, related to tax liabilities as income tax expense in the Statement of Operations. As of January 31, 2009, tax years 2006 through 2008 remain subject to examination by the Fund's major tax jurisdictions, which include the United States of America and the Commonwealth of Massachusetts.

The Fund may be subject to taxes imposed by governments of countries in which it invests. Such taxes are generally based on either income or gains earned or repatriated. The Fund accrues and applies such taxes to net investment income, net realized gains and net unrealized gains as income and/or gains are earned.

When-Issued and Delayed Delivery Transactions

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

Other

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

3. SHARES OF BENEFICIAL INTEREST

The following tables summarize share activity:

	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Institutional Shares:	Shares			Amount		Shares			Amount
Shares sold	439,256		$	3,123,076		549,863		$	6,491,359
Shares issued to shareholders in payment of distributions declared	976			6,958		--			--
Shares redeemed	(232,979	)		(1,849,603	)	(413,746	)		(4,792,720	)
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS	207,253		$	1,280,431		136,117		$	1,698,639
	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Class A Shares:	Shares			Amount		Shares			Amount
Shares sold	835,966		$	7,099,928		353,832		$	4,174,842
Shares issued to shareholders in payment of distributions declared	703			4,994		--			--
Shares redeemed	(756,364	)		(5,311,516	)	(55,720	)		(639,826	)
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS	80,305		$	1,793,406		298,112		$	3,535,016
	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Class C Shares:	Shares			Amount		Shares			Amount
Shares sold	60,965		$	456,725		100,386		$	1,180,403
Shares redeemed	(87,199	)		(641,272	)	(23,958	)		(277,752	)
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS	(26,234	)	$	(184,547	)	76,428		$	902,651
NET CHANGE RESULTING FROM SHARE TRANSACTIONS	261,324		$	2,889,290		510,657		$	6,136,306

4. FEDERAL TAX INFORMATION

At January 31, 2009, the cost of investments for federal tax purposes was $11,907,669. The net unrealized depreciation of investments for federal tax purposes was $744,347. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $595,542 and net unrealized depreciation from investments for those securities having an excess of cost over value of $1,339,889.

At July 31, 2008, the Fund had a capital loss carryforward of $10,826 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 2015.

5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated MDTA LLC is the Fund's investment adviser (the "Adviser"). The advisory agreement between the Fund and the Adviser provides for an annual fee equal to 0.90% of the Fund's average daily net assets. Prior to December 8, 2008, the Adviser agreed to waive all or a portion of the advisory fee and/or reimburse certain operating expenses (excluding interest, taxes and brokerage commissions) in order to contractually limit the Fund's aggregate annual operating expenses to no more than the following annual percentages for each class of the Fund based on average daily net assets:

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

In addition, subject to the terms described in the Expense Limitation note, 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, 2009, the Adviser waived $62,793 of its fee and reimbursed $132,309 of other operating expenses.

Administrative Fee

Federated Administrative Services (FAS), under the Administrative Services 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. Subject to the terms described in the Expense Limitation note, 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, 2009, the net fee paid to FAS was 1.335% of average daily net assets of the Fund. The Fund is currently being charged the minimum administrative fee; therefore the fee as a percentage of average daily net assets is greater than the amounts presented in the chart above. FAS waived $22,615 of its fee.

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 at the following percentages of average daily net assets annually, to compensate FSC:

Share Class Name	Percentage of Average Daily Net Assets of Class
Class A Shares	0.05%
Class C Shares	0.75%

Subject to the terms described in the Expense Limitation note, 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, 2009, FSC retained $2,405 of fees paid by the Fund. For the six months ended January 31, 2009, the Fund's Class A Shares did not incur a distribution services fee; however it may begin to incur this fee upon approval of the Trustees. On November 15, 2007, the Trustees approved an amendment to the Plan to reduce the distribution services fee for the Fund's Class A Shares from 0.25% to 0.05%. The amendment to the Plan became effective for the Fund on March 31, 2008.

Sales Charges

Front-end sales charges and contingent deferred sales charges (CDSC) do not represent expenses of the Fund. They are deducted from the proceeds of sales of Fund shares prior to investment or from redemption proceeds prior to remittance, as applicable. For the six months ended January 31, 2009, FSC retained $330 in sales charges from the sale of Class A Shares. FSC also retained $123 of CDSC relating to redemptions of Class C Shares.

Shareholder Services Fee

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. Subject to the terms described in the Expense Limitation note, FSSC may voluntarily reimburse the Fund for shareholder services fees. This voluntary reimbursement can be modified or terminated at any time. For the six months ended January 31, 2009, FSSC received $243 of fees paid by the Fund.

Expense Limitation

The Adviser and its affiliates (which may include FSC, FAS and FSSC) have voluntarily agreed to waive their fees and/or reimburse expenses so that the total operating expenses (as shown in the financial highlights) paid by the Fund's Institutional Shares, Class A Shares and Class C Shares (after the voluntary waivers and reimbursements) will not exceed 1.40%, 1.65% and 2.40%, respectively, for the fiscal year ending July 31, 2009. Although these actions are voluntary, the Adviser and its affiliates have agreed to continue these waivers and/or reimbursements at least through September 30, 2009.

General

Certain 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 affiliated mutual funds. For the six months ended January 31, 2009, the Adviser reimbursed $111. Transactions with the affiliated company during the six months ended January 31, 2009 were as follows:

Affiliate	Balance of Shares Held 7/31/2008	Purchases/ Additions	Sales/ Reductions	Balance of Shares Held 1/31/2009	Value	Dividend Income
Prime Value Obligations Fund, Institutional Shares	240,412	6,331,467	6,286,604	285,275	$285,275	$3,389

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, 2009, were as follows:

Purchases	$	23,276,191
Sales	$	20,523,432

7. LINE OF CREDIT

The Fund participates in a $100,000,000 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, 2009, there were no outstanding loans. During the six months ended January 31, 2009, the Fund did not utilize the LOC.

8. INTERFUND LENDING

Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (SEC), the Fund, along with other funds advised by subsidiaries of Federated Investors, Inc., may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from other participating affiliated funds. As of January 31, 2009, there were no outstanding loans. During the six months ended January 31, 2009, the program was not utilized.

9. LEGAL PROCEEDINGS

Since October 2003, Federated Investors, Inc. and related entities (collectively, "Federated") and various Federated funds ("Federated Funds") have been 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 Federated Funds from the 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 entities have also been named as defendants in several additional lawsuits that 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 Federated Funds retained the law firm of Dickstein Shapiro LLP to represent the Federated Funds in these lawsuits. Federated and the Federated Funds and their respective counsel have been defending this litigation and none of the Federated Funds remains a defendant in any of the lawsuits (though some could potentially receive any recoveries as nominal defendants). 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 Federated 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 Federated Fund redemptions, reduced sales of Federated Fund shares or other adverse consequences for the Federated Funds.

Evaluation and Approval of Advisory
Contract - May 2008

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 2008. The Board's decision regarding the contract reflects the exercise of its business judgment on whether to continue the existing arrangements.

In this connection, the Federated funds' Board had previously appointed 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 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. The Board considered that evaluation, along with other information, in deciding to approve the advisory contract.

During its review of the contract, the Board considered compensation and benefits received by the Adviser. This included the fees received for services provided to the Fund by other entities in the Federated organization and research services received by the Adviser from brokers that execute Federated fund trades, as well as advisory fees. The Board is also familiar with and considered 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 a fund grows larger; any indirect benefits that may accrue to the Adviser and its affiliates as a result of the Adviser's relationship with a 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 what might be viewed as like services, and the cost 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 for supplying such services. The Board was aware of these factors and was guided by them in its review of the Fund's advisory contract to the extent it considered them to be appropriate and relevant, as discussed further below.

The Board considered and weighed these circumstances in light of its substantial accumulated experience in governing the Fund and working with Federated on matters relating to the Federated funds, and was assisted in its deliberations by independent legal counsel. Throughout the year, the Board has requested and received substantial and detailed information about the Fund and the Federated organization that was in addition to the extensive materials that comprise and accompany the Senior Officer's evaluation. Federated provided much of this information at each regular meeting of the Board, and furnished additional reports in connection with the particular meeting at which the Board's formal review of the advisory contract occurred. Between regularly scheduled meetings, the Board also received information on particular matters as the need arose. Thus, 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 short- and long-term performance (in absolute terms, both on a gross basis and net of expenses, as well as in relationship to its particular investment program and certain competitor or "peer group" funds and/or other benchmarks, as appropriate), and comments on the reasons for performance; the Fund's investment objectives; the Fund's expenses (including the advisory fee 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 use and allocation of brokerage commissions derived from trading the Fund's portfolio securities (if any); and the nature, quality and extent of the advisory and other services provided to the Fund by the Adviser and its affiliates. The Board also considered the preferences and expectations of Fund shareholders 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 performance and 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 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 competes. The Fund's ability to deliver competitive performance when compared to its peer group was a useful indicator of how the Adviser is executing 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 continuation of the advisory contract. In this regard, the Senior Officer has 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 include, but are not limited to, different types of targeted investors; being subject to different laws and regulations; different legal structures; different average account sizes; different associated costs; and different 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, using data supplied by independent fund ranking organizations, regarding the performance of, and fees charged by, other mutual funds, noting his view that comparisons to fund peer groups are highly important in judging the reasonableness of proposed fees. He also observed that certain funds may exhibit important differences in their objectives and management techniques when compared to other funds placed in the same peer group by ranking organizations, noting in this connection that the Fund's quantitative investment program is of such a type.

For the one-year period ending December 31, 2007, the Fund's performance was above the median of the relevant peer group. In addition, the Board was informed by the Adviser that, for the same period, the Fund outperformed its benchmark index for the one-year period.

The Board also received financial information about Federated, including reports on the compensation and benefits Federated derived from its relationships with the Federated funds. These reports covered 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 discussed any indirect benefit Federated may derive from its receipt of research services from brokers who execute Federated fund trades. In addition, the Board considered the fact that, in order for a fund to be competitive in the marketplace, Federated and its affiliates frequently waived fees and/or reimbursed expenses and have disclosed to fund investors and/or indicated to the Board their intention to do so in the future, where appropriate.

Federated furnished reports, requested by the Senior Officer, that reported revenues on a fund-by-fund basis and made estimates of the allocation of expenses on a fund-by-fund basis, using allocation methodologies specified by the Senior Officer. The Senior Officer noted that, although they may apply consistent allocation processes, the inherent difficulties in allocating costs (and the unavoidable arbitrary aspects of that exercise) and the lack of consensus on how to allocate those costs may render such allocation reports unreliable. The allocation reports were considered in the analysis by the Board but were determined to be of limited use.

The Board and the Senior Officer also reviewed a report compiled by Federated comparing profitability information for Federated to other publicly held fund management companies. In this regard, the Senior Officer noted the limited availability of such information, but nonetheless concluded that Federated's profit margins did not appear to be excessive and the Board agreed.

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 and long-term investments in areas that support all of the Federated funds, such as personnel and processes for the portfolio management, compliance, and risk management functions; and systems technology; and that the benefits of these efforts (as well as 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 (as discussed in the Senior Officer's evaluation) 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.

It was noted in the materials for the Board meeting that for the Fund's most recently completed fiscal year, the Fund's investment advisory fee was waived in its entirety. The Board reviewed the contractual fee rate and other expenses of the Fund with the Adviser and was satisfied that the overall expense structure of the Fund remained competitive.

The Senior Officer's evaluation noted his belief that the information and observations contained in his evaluation supported a finding that the proposed management fees are reasonable, and that Federated appeared to provide appropriate administrative services to the Fund for the fees paid. Under these circumstances, no changes were recommended to, and no objection was raised to, the continuation of the Fund's advisory contract. The Board concluded that the nature, quality and scope of services provided the Fund by the Adviser and its affiliates were satisfactory.

In its decision to continue an existing investment advisory contract, the Board was mindful of the potential disruptions of the Fund's operations and various risks, uncertainties and other effects that could occur as a result of a decision to terminate or not renew an advisory contract. In particular, the Board recognized that most shareholders have invested in the Fund on the strength of the Adviser's industry standing and reputation and with the expectation that the Adviser will have a continuing role in providing advisory services to the Fund. Thus, the Board's approval of the advisory contract reflected the fact that it is the shareholders who have effectively selected the Adviser by virtue of having invested in the Fund.

The Board 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. Not all of the factors and considerations identified above were necessarily relevant to the Fund, nor did the Board consider any one of them to be determinative. With respect to the factors that were relevant, the Board's decision to approve the contract reflects its determination that Federated's performance and actions provided a satisfactory basis to support the decision to continue the existing 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 from Federated's website at FederatedInvestors.com. To access this information from the "Products" section of the website, click on the "Prospectuses and Regulatory Reports" link under "Related Information," then select the appropriate link opposite the name of the Fund; or select the name of the Fund and from the Fund's page, click on the "Prospectuses and Regulatory Reports" link. Form N-PX filings are also available at 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" under "Related Information," then selecting the appropriate link opposite the name of the Fund; or select the name of the Fund and from the Fund's page, click on the "Portfolio Holdings" link.

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 g4overnment 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 (3/09)

Federated is a registered mark of Federated Investors, Inc. 2009 (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, 2009

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,				Period Ended
	1/31/2009		2008		2007	1	7/31/2006	2
Net Asset Value, Beginning of Period	$10.90		$11.69		$10.36		$10.00
Income From Investment Operations:
Net investment income (loss)	0.02	3	0.03	3	0.01	3	(0.03	) 3
Net realized and unrealized gain (loss) on investments	(4.26	)	(0.82	)	1.32		0.39
TOTAL FROM INVESTMENT OPERATIONS	(4.24	)	(0.79	)	1.33		0.36
Less Distributions:
Distributions from net investment income	(0.02	)	- --		- --		- --
Net Asset Value, End of Period	$ 6.64		$10.90		$11.69		$10.36
Total Return 4	(38.90	)%	(6.76	)%	12.84	%	3.60	%
Ratios to Average Net Assets:
Net expenses	1.40	% 5	1.40	%	1.40	%	1.76	% 5
Net investment income (loss)	0.40	% 5	0.27	%	0.12	%	(0.25	)% 5
Expense waiver/reimbursement 6	3.10	% 5	3.03	%	5.47	%	3.71	% 5
Supplemental Data:
Net assets, end of period (000 omitted)	$4,348		$4,883		$3,645		$1,383
Portfolio turnover	148	%	183	%	154	%	182	%

1 MDT Tax Aware/All Cap Core Fund (the "Predecessor Fund") was reorganized into the 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 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 (unaudited)

As a shareholder of the Fund, you incur ongoing costs, including management fees and to the extent applicable, distribution (12b-1) fees and/or 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, 2008 to January 31, 2009.

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 8/1/2008	Ending Account Value 1/31/2009	Expenses Paid During Period 1
Actual	$1,000	$ 611.00	$5.68
Hypothetical (assuming a 5% return before expenses)	$1,000	$1,018.15	$7.12

1 Expenses are equal to the Fund's annualized net expense ratio of 1.40%, 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 (unaudited)

At January 31, 2009, the Fund's industry composition ¹ was as follows:

Industry	Percentage of Total Net Assets
Electric Utility	8.1	%
Biotechnology	6.3	%
Railroad	4.8	%
Agricultural Chemicals	4.6	%
Property Liability Insurance	4.5	%
Undesignated Consumer Cyclicals	4.5	%
Computers - Midrange	4.4	%
Miscellaneous Food Products	4.2	%
Computers - High End	4.0	%
Multi-Line Insurance	3.6	%
Copper	3.4	%
Ethical Drugs	3.4	%
Home Building	2.7	%
Department Stores	2.4	%
Integrated International Oil	2.3	%
Software Packaged/Custom	2.3	%
Services to Medical Professionals	2.1	%
AT&T Divestiture	2.0	%
Diversified Leisure	1.9	%
Gas Distributor	1.3	%
Regional Bank	1.3	%
Defense Aerospace	1.2	%
Money Center Bank	1.2	%
Airline - Regional	1.0	%
Defense Electronics	1.0	%
Life Insurance	1.0	%
Medical Technology	1.0	%
Multi-Industry Capital Goods	1.0	%
Other 2	16.7	%
Cash Equivalents 3	2.6	%
Other Assets and Liabilities--Net 4	(0.8	)%
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, 2009 (unaudited)

Shares					Value
			COMMON STOCKS--98.2%
			Advertising--0.2%
	712		Omnicom Group, Inc.	$	18,434
			Agricultural Chemicals--4.6%
	324		FMC Corp.		14,457
	5,681		Monsanto Co.		432,097
	1,792		Mosaic Co. (The)		63,921
			TOTAL		510,475
			Agricultural Machinery--0.7%
	2,325		Deere & Co.		80,771
			Airline - Regional--1.0%
	2,113	1	Alaska Air Group, Inc.		55,699
	377		SkyWest, Inc.		5,900
	7,551		Southwest Airlines Co.		53,084
			TOTAL		114,683
			Apparel--0.3%
	509		V.F. Corp.		28,514
			AT&T Divestiture--2.0%
	8,822		AT&T, Inc.		217,198
			Auto Original Equipment Manufacturer--0.2%
	1,440		Johnson Controls, Inc.		18,014
	633		Superior Industries International, Inc.		6,501
			TOTAL		24,515
			Auto Rentals--0.1%
	327	1	AMERCO		10,055
			Biotechnology--6.3%
	158	1	Affymetrix, Inc.		502
	225	1	Alexion Pharmaceuticals, Inc.		8,296
	1,400	1	Amgen, Inc.		76,790
	496	1	Cephalon, Inc.		38,281
	94	1	Charles River Laboratories International, Inc.		2,294
	10,734	1	Gilead Sciences, Inc.		544,965
Shares					Value
			COMMON STOCKS--continued
			Biotechnology--continued
	213	1	Hospira, Inc.	$	5,304
	176	1	Myriad Genetics, Inc.		13,124
	1,118	1	Questcor Pharmaceuticals, Inc.		7,211
			TOTAL		696,767
			Broadcasting--0.3%
	845	1	American Tower Systems Corp.		25,637
	1,452		News Corp., Inc.		9,278
			TOTAL		34,915
			Building Materials--0.3%
	227		Ameron, Inc.		11,316
	1,697	1	Owens Corning, Inc.		22,638
	205		Universal Forest Products, Inc.		4,305
			TOTAL		38,259
			Cable TV--0.4%
	1,721	1	Discovery Communications Inc.		24,955
	1,599	1	Viacom, Inc., Class B		23,585
			TOTAL		48,540
			Cement--0.1%
	690		Texas Industries, Inc.		15,670
			Clothing Stores--0.7%
	847	1	Children's Place Retail Stores, Inc.		15,932
	2,729		Gap (The), Inc.		30,783
	1,000	1	Jos A. Bank Clothiers, Inc.		27,460
			TOTAL		74,175
			Commodity Chemicals--0.2%
	119		Compass Minerals International, Inc.		7,160
	1,078		Westlake Chemical Corp.		14,736
			TOTAL		21,896
			Computer Peripherals--0.3%
	710		Imation Corp.		6,915
	2,279	1	Sandisk Corp.		26,049
			TOTAL		32,964
			Computer Services--0.0%
	68	1	Stanley, Inc.		2,058
Shares					Value
			COMMON STOCKS--continued
			Computer Stores--0.1%
	406	1	Tech Data Corp.	$	7,353
			Computers - High End--4.0%
	4,864		IBM Corp.		445,786
			Computers - Low End--0.2%
	2,340	1	Dell, Inc.		22,230
			Computers - Midrange--4.4%
	14,158		Hewlett-Packard Co.		491,991
			Construction Machinery--0.5%
	1,674		Caterpillar, Inc.		51,643
	398		Joy Global, Inc.		8,290
			TOTAL		59,933
			Contracting--0.1%
	129		Harsco Corp.		3,060
	86	1	IHS, Inc., Class A		3,767
			TOTAL		6,827
			Copper--3.4%
	14,771		Freeport-McMoRan Copper & Gold, Inc.		371,343
			Crude Oil & Gas Production--0.3%
	280	1	Swift Energy Co.		4,290
	1,906		W&T Offshore, Inc.		23,958
			TOTAL		28,248
			Defense Aerospace--1.2%
	251	1	AAR Corp.		4,553
	2,729		Boeing Co.		115,464
	184		General Dynamics Corp.		10,438
	63		Triumph Group, Inc.		2,853
			TOTAL		133,308
			Defense Electronics--1.0%
	491	1	First Solar, Inc.		70,115
	274		Northrop Grumman Corp.		13,185
	443		Raytheon Co.		22,425
			TOTAL		105,725
Shares					Value
			COMMON STOCKS--continued
			Department Stores--2.4%
	1,098		Dillards, Inc., Class A	$	4,776
	4,636		Penney (J.C.) Co., Inc.		77,653
	1,670	1	Saks, Inc.		4,208
	4,290	1	Sears Holdings Corp.		175,547
			TOTAL		262,184
			Discount Department Stores--0.4%
	693	1	99 Cents Only Stores		5,807
	729	1	Dollar Tree, Inc.		31,136
	340		Family Dollar Stores, Inc.		9,442
			TOTAL		46,385
			Diversified Leisure--1.9%
	10,599		Carnival Corp.		192,796
	1,160	1	Gaylord Entertainment Co.		12,296
	756	1	Pinnacle Entertainment, Inc.		5,126
			TOTAL		210,218
			Electric & Electrical Original Equipment Manufacturers--0.1%
	769		Molex, Inc.		10,281
			Electric Utility--8.1%
	5,068		CMS Energy Corp.		59,549
	13,426		Edison International		437,285
	750		Idacorp, Inc.		21,832
	202		OGE Energy Corp.		4,985
	265		Pinnacle West Capital Corp.		8,870
	1,531		Public Service Enterprises Group, Inc.		48,334
	6,390		Sempra Energy		280,138
	1,675		TECO Energy, Inc.		20,117
	528		UniSource Energy Corp.		14,911
			TOTAL		896,021
			Electrical Equipment--0.1%
	151		American Science & Engineering, Inc.		11,778
			Electronic Testing/Measuring Equipment--0.0%
	155	1	Multi-Fineline Electronix, Inc.		2,872
Shares					Value
			COMMON STOCKS--continued
			Ethical Drugs--3.4%
	3,259		Eli Lilly & Co.	$	119,996
	2,514	1	Forest Laboratories, Inc., Class A		62,951
	5,509		Merck & Co., Inc.		157,282
	357	1	Noven Pharmaceuticals, Inc.		3,545
	2,234		Pfizer, Inc.		32,572
			TOTAL		376,346
			Food Wholesaling--0.1%
	429		SUPERVALU, Inc.		7,525
	201	1	Winn-Dixie Stores, Inc.		2,762
			TOTAL		10,287
			Furniture--0.0%
	557		Furniture Brands International, Inc.		1,142
			Gas Distributor--1.3%
	2,456		Energen Corp.		71,740
	77		New Jersey Resources Corp.		3,087
	214		ONEOK, Inc.		6,253
	1,454		Questar Corp.		49,407
	923	1	Southern Union Co.		11,897
			TOTAL		142,384
			Grocery Chain--0.1%
	418		Safeway, Inc.		8,958
			Home Building--2.7%
	2,709		Centex Corp.		23,054
	4,597		D. R. Horton, Inc.		27,398
	3,509		Lennar Corp., Class A		26,984
	194	1	M/I Schottenstein Homes, Inc.		1,715
	7,910		Pulte Homes, Inc.		80,287
	1,451		Ryland Group, Inc.		22,636
	7,104	1	Toll Brothers, Inc.		120,910
			TOTAL		302,984
			Home Health Care--0.7%
	985	1	Amedisys, Inc.		40,611
	752	1	Amerigroup Corp.		21,033
	582	1	LHC Group, Inc.		15,487
			TOTAL		77,131
Shares					Value
			COMMON STOCKS--continued
			Home Products--0.1%
	107	1	Energizer Holdings, Inc.	$	5,096
			Hospitals--0.1%
	395		Universal Health Services, Inc., Class B		14,951
			Household Appliances--0.1%
	301		Whirlpool Corp.		10,062
			Industrial Machinery--0.2%
	345		Flowserve Corp.		18,392
			Insurance Brokerage--0.2%
	345		Odyssey Re Holdings Corp.		16,232
			Integrated International Oil--2.3%
	3,678		Chevron Corp.		259,373
			Internet Services--0.3%
	797	1	NetFlix, Inc.		28,804
			Jewelry Stores--0.0%
	140		Movado Group, Inc.		1,075
			Life Insurance--1.0%
	230		Aflac, Inc.		5,338
	615		American Equity Investment Life Holding Co.		4,114
	587		Delphi Financial Group, Inc., Class A		8,905
	43		MetLife, Inc.		1,235
	4,099		Old Republic International Corp.		42,302
	1,662		Torchmark Corp.		49,860
			TOTAL		111,754
			Long-Term Care Centers--0.0%
	286	1	Kindred Healthcare, Inc.		3,881
			Lumber Products--0.0%
	1,254	1	Louisiana-Pacific Corp.		2,608
			Maritime--0.1%
	315		Overseas Shipholding Group, Inc.		11,245
			Medical Supplies--0.3%
	67	1	Haemonetics Corp.		3,963
	153	1	Kinetic Concepts, Inc.		3,687
	500		McKesson HBOC, Inc.		22,100
	261	1	PetMed Express, Inc.		3,769
			TOTAL		33,519
Shares					Value
			COMMON STOCKS--continued
			Medical Technology--1.0%
	311	1	Cantel Medical Corp.	$	4,662
	735	1	Cyberonics, Inc.		11,312
	60	1	Edwards Lifesciences Corp.		3,449
	178	1	Gen-Probe, Inc.		8,014
	265	1	ResMed, Inc.		10,574
	1,627	1	Thoratec Laboratories Corp.		47,134
	794	1	Zimmer Holdings, Inc.		28,902
			TOTAL		114,047
			Metal Containers--0.2%
	370		Ball Corp.		14,186
	301	1	Crown Holdings, Inc.		5,644
			TOTAL		19,830
			Metal Fabrication--0.0%
	218		Timken Co.		3,246
			Miscellaneous Components--0.4%
	888		AVX Corp.		8,099
	683	1	Cree, Inc.		13,612
	1,596	1	International Rectifier Corp.		21,738
			TOTAL		43,449
			Miscellaneous Food Products--4.2%
	14,787		Archer-Daniels-Midland Co.		404,868
	2,505	1	Fresh Del Monte Produce, Inc.		60,371
			TOTAL		465,239
			Miscellaneous Machinery--0.1%
	202		Parker-Hannifin Corp.		7,718
	257		Rockwell Automation, Inc.		6,692
			TOTAL		14,410
			Miscellaneous Metals--0.1%
	1,423	1	USEC, Inc.		7,243
			Money Center Bank--1.2%
	3,658		Bank of New York Mellon Corp.		94,157
	2,601		U.S. Bancorp		38,599
			TOTAL		132,756
Shares					Value
			COMMON STOCKS--continued
			Mortgage and Title--0.1%
	400		Stewart Information Services Corp.	$	5,936
			Motion Pictures--0.2%
	893		Walt Disney Co.		18,467
			Multi-Industry Capital Goods--1.0%
	1,989		Honeywell International, Inc.		65,259
	3,029		KBR, Inc.		42,891
	701		Textron, Inc.		6,330
			TOTAL		114,480
			Multi-Line Insurance--3.6%
	6,740		Allstate Corp.		146,056
	283	1	Amerisafe, Inc.		5,301
	458		Cincinnati Financial Corp.		10,044
	153		Infinity Property & Casualty		5,875
	16,138		UNUMProvident Corp.		228,514
			TOTAL		395,790
			Office Equipment--0.1%
	649		Pitney Bowes, Inc.		14,447
			Offshore Driller--0.4%
	715	1	Transocean Ltd.		39,053
			Oil Refiner--0.9%
	1,179		Sunoco, Inc.		54,611
	1,753		Western Refining, Inc.		20,440
	668		World Fuel Services Corp.		22,558
			TOTAL		97,609
			Oil Service, Explore & Drill--0.1%
	1,265		Patterson-UTI Energy, Inc.		12,093
			Oil Well Supply--0.1%
	188		Baker Hughes, Inc.		6,264
	358	1	Dril-Quip, Inc.		8,771
			TOTAL		15,035
			Packaged Foods--0.1%
	690		ConAgra Foods, Inc.		11,799
	112		Hershey Foods Corp.		4,175
			TOTAL		15,974
Shares					Value
			COMMON STOCKS--continued
			Paper Products--0.4%
	3,335		MeadWestvaco Corp.	$	38,819
			Personal Loans--0.5%
	2,484		Capital One Financial Corp.		39,347
	1,192	1	Ezcorp, Inc., Class A		16,175
			TOTAL		55,522
			Personnel Agency--0.0%
	274		Kelly Services, Inc., Class A		2,482
			Pollution Control--0.0%
	63	1	Stericycle, Inc.		3,082
			Printing--0.0%
	363		Donnelley (R.R.) & Sons Co.		3,543
			Property Liability Insurance--4.5%
	2,605		Berkley, W. R. Corp.		68,980
	334	1	CNA Surety Corp.		5,528
	3,064		Chubb Corp.		130,465
	461		Employers Holdings, Inc.		6,242
	939		HCC Insurance Holdings, Inc.		21,982
	1,331		Progressive Corp., OH		16,172
	6,463		The Travelers Cos., Inc.		249,730
			TOTAL		499,099
			Railroad--4.8%
	9,512		CSX Corp.		275,468
	3,186		Norfolk Southern Corp.		122,215
	2,992		Union Pacific Corp.		131,020
			TOTAL		528,703
			Recreational Goods--0.3%
	563		Callaway Golf Co.		4,284
	1,220	1	WMS Industries, Inc.		27,108
			TOTAL		31,392
			Recreational Vehicles--0.0%
	1,335		Brunswick Corp.		3,711
Shares					Value
			COMMON STOCKS--continued
			Regional Bank--1.3%
	1,559		BB&T Corp.	$	30,853
	333		Central Pacific Financial Corp.		2,241
	707		East West Bancorp, Inc.		6,709
	2,612		Marshall & Ilsley Corp.		14,914
	295		PNC Financial Services Group		9,593
	2,231		Popular, Inc.		6,113
	243		Regions Financial Corp.		841
	519		South Financial Group, Inc.		976
	5,268		SunTrust Banks, Inc.		64,586
	212		Whitney Holding Corp.		2,754
	521		Wintrust Financial Corp.		6,966
			TOTAL		146,546
			Restaurant--0.3%
	136	1	CEC Entertainment, Inc.		3,174
	454		Darden Restaurants, Inc.		11,904
	258	1	Green Mountain Coffee, Inc.		9,871
	66	1	Panera Bread Co.		3,101
			TOTAL		28,050
			Roofing & Wallboard--0.2%
	383	1	Beacon Roofing Supply, Inc.		4,876
	2,197	1	USG Corp.		14,302
			TOTAL		19,178
			Rubber--0.0%
	782		Cooper Tire & Rubber Co.		3,652
			Savings & Loan--0.2%
	2,002		Hudson City Bancorp, Inc.		23,223
			Securities Brokerage--0.5%
	996	1	Interactive Brokers Group, Inc., Class A		15,209
	242	1	Knight Capital Group, Inc., Class A		4,363
	362	1	Labranche & Co., Inc.		2,483
	1,574		Raymond James Financial, Inc.		29,135
			TOTAL		51,190
Shares					Value
			COMMON STOCKS--continued
			Semiconductor Distribution--0.8%
	2,872	1	Arrow Electronics, Inc.	$	54,769
	839	1	Avnet, Inc.		16,629
	854	1	FormFactor, Inc.		13,288
			TOTAL		84,686
			Semiconductor Manufacturing--0.3%
	502	1	ATMI, Inc.		6,782
	5,481	1	Micron Technology, Inc.		20,389
	311	1	Plexus Corp.		4,497
			TOTAL		31,668
			Semiconductor Manufacturing Equipment--0.3%
	2,582	1	Novellus Systems, Inc.		35,606
			Services to Medical Professionals--2.1%
	984	1	Centene Corp.		17,446
	326	1	Coventry Health Care, Inc.		4,932
	207	1	Genoptix, Inc.		7,017
	1,000	1	Humana, Inc.		37,930
	280	1	Medco Health Solutions, Inc.		12,580
	588		Omnicare, Inc.		16,440
	4,903		UnitedHealth Group, Inc.		138,902
	83	1	Wellpoint, Inc.		3,440
			TOTAL		238,687
			Shoes--0.1%
	382	1	Genesco, Inc.		5,883
			Soft Drinks--0.2%
	408	1	Dr. Pepper Snapple Group, Inc.		6,712
	609		The Pepsi Bottling Group, Inc.		11,748
			TOTAL		18,460
			Software Packaged/Custom--2.3%
	664	1	Computer Sciences Corp.		24,462
	875	1	DST Systems, Inc.		27,799
	4,212	1	F5 Networks, Inc.		93,380
	4,007		Microsoft Corp.		68,520
	699	1	Solera Holdings, Inc.		16,839
	1,756	1	Symantec Corp.		26,919
			TOTAL		257,919
Shares					Value
			COMMON STOCKS--continued
			Specialty Chemicals--0.6%
	372		Air Products & Chemicals, Inc.	$	18,712
	596		Albemarle Corp.		13,261
	189	1	Calgon Carbon Corp.		2,376
	243		Chemed Corp.		9,752
	249		Cytec Industries, Inc.		5,090
	95		Lubrizol Corp.		3,241
	896	1	OM Group, Inc.		17,364
			TOTAL		69,796
			Specialty Retailing--0.3%
	1,477	1	CarMax, Inc.		12,215
	2,252		Williams-Sonoma, Inc.		17,836
			TOTAL		30,051
			Stainless Steel Producer--0.5%
	2,549		Allegheny Technologies, Inc.		56,307
			Telecommunication Equipment & Services--0.2%
	5,703		Motorola, Inc.		25,264
			Tools And Hardware--0.1%
	233		Snap-On, Inc.		7,032
			Toys & Games--0.1%
	727	1	JAKKS Pacific, Inc.		13,333
			Trucking--0.0%
	192		Arkansas Best Corp.		4,491
			Undesignated Consumer Cyclicals--4.5%
	532	1	Apollo Group, Inc., Class A		43,337
	3,175	1	Corinthian Colleges, Inc.		59,309
	833		DeVRY, Inc.		44,632
	2,677	1	ITT Educational Services, Inc.		327,959
	536		Speedway Motorsports, Inc.		7,740
	69		Strayer Education, Inc.		14,934
			TOTAL		497,911
Shares					Value
			COMMON STOCKS--continued
			Uniforms--0.0%
	80		Unifirst Corp.	$	2,099
			Water Utility--0.1%
	625		Aqua America, Inc.		12,962
			TOTAL COMMON STOCKS (IDENTIFIED COST $11,622,394)		10,878,047
			MUTUAL FUND--2.6%
	285,275	2,3	Prime Value Obligations Fund, Institutional Shares, 1.75% (AT NET ASSET VALUE)		285,275
			TOTAL INVESTMENTS--100.8% (IDENTIFIED COST $11,907,669) 4		11,163,322
			OTHER ASSETS AND LIABILITIES - NET--(0.8)% 5		(87,884	)
			TOTAL NET ASSETS--100%	$	11,075,438

1 Non-income-producing security.

2 Affiliated company.

3 7-Day net yield.

4 Also represents cost for federal tax purposes.

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

Note: The categories of investments are shown as a percentage of total net assets at January 31, 2009.

Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below:

Level 1--quoted prices in active markets for identical securities

Level 2--other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

Level 3--significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used, as of January 31, 2009, in valuing the Fund's assets carried at fair value:

Valuation Inputs	Investments in Securities
Level 1--Quoted Prices and Investments in Mutual Funds	$11,163,322
Level 2--Other Significant Observable Inputs	- --
Level 3--Significant Unobservable Inputs	- --
TOTAL	$11,163,322

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

January 31, 2009 (unaudited)

Assets:
Total investments in securities, at value including $285,275 of investments in an affiliated issuer (Note 5) (identified cost $11,907,669)			$	11,163,322
Income receivable				9,798
Receivable for investments sold				331,021
Receivable for shares sold				71,912
TOTAL ASSETS				11,576,053
Liabilities:
Payable for investments purchased	$	336,123
Payable for shares redeemed		118,239
Payable for auditing fees		10,924
Payable for portfolio accounting fees		12,070
Payable for distribution services fee (Note 5)		2,140
Payable for shareholder services fee (Note 5)		3,885
Accrued expenses		17,234
TOTAL LIABILITIES				500,615
Net assets for 1,680,838 shares outstanding			$	11,075,438
Net Assets Consist of:
Paid-in capital			$	18,819,159
Net unrealized depreciation of investments				(744,347	)
Accumulated net realized loss on investments				(6,994,454	)
Distributions in excess of net investment income				(4,920	)
TOTAL NET ASSETS			$	11,075,438

Statement of Assets and Liabilities - continued

Net Asset Value, Offering Price and Redemption Proceeds Per Share
Institutional Shares:
Net asset value per share ($4,348,372 ÷ 655,234 shares outstanding), no par value, unlimited shares authorized	$6.64
Offering price per share	$6.64
Redemption proceeds per share	$6.64
Class A Shares:
Net asset value per share ($4,716,100 ÷ 713,347 shares outstanding), no par value, unlimited shares authorized	$6.61
Offering price per share (100/94.50 of $6.61)	$6.99
Redemption proceeds per share	$6.61
Class C Shares:
Net asset value per share ($2,010,966 ÷ 312,257 shares outstanding), no par value, unlimited shares authorized	$6.44
Offering price per share	$6.44
Redemption proceeds per share (99.00/100 of $6.44)	$6.38

See Notes which are an integral part of the Financial Statements

Statement of Operations

Six Months Ended January 31, 2009 (unaudited)

Investment Income:
Dividends (including $3,389 received from an affiliated issuer (Note 5) and net of foreign taxes withheld of $40)							$	133,216
Expenses:
Investment adviser fee (Note 5)				$	62,904
Administrative personnel and services fee (Note 5)					115,946
Custodian fees					15,053
Transfer and dividend disbursing agent fees and expenses					28,581
Directors'/Trustees' fees					805
Auditing fees					10,924
Legal fees					3,188
Portfolio accounting fees					40,148
Distribution services fee--Class C Shares (Note 5)					10,104
Shareholder services fee--Class A Shares (Note 5)					9,336
Shareholder services fee--Class C Shares (Note 5)					3,368
Share registration costs					17,220
Printing and postage					17,115
Insurance premiums					2,383
Interest expense					229
Miscellaneous					1,412
TOTAL EXPENSES					338,716
Waivers and Reimbursements (Note 5):
Waiver/reimbursement of investment adviser fee	$	(62,904	)
Waiver of administrative personnel and services fee		(22,615	)
Reimbursement of other operating expenses		(132,309	)
TOTAL WAIVERS AND REIMBURSEMENTS					(217,828	)
Net expenses								120,888
Net investment income								12,328
Realized and Unrealized Loss on Investments:
Net realized loss on investments								(5,310,298	)
Net change in unrealized appreciation of investments								(1,830,677	)
Net realized and unrealized loss on investments								(7,140,975	)
Change in net assets resulting from operations							$	(7,128,647	)

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

		Six Months Ended (unaudited) 1/31/2009			Year Ended 7/31/2008
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)	$	12,328		$	(10,751	)
Net realized loss on investments		(5,310,298	)		(1,609,068	)
Net change in unrealized appreciation/depreciation of investments		(1,830,677	)		260,269
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		(7,128,647	)		(1,359,550	)
Distributions to Shareholders:
Distributions from net investment income
Institutional Shares		(12,123	)		- --
Class A Shares		(5,125	)		- --
Class C Shares		- --			- --
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS		(17,248	)		- --
Share Transactions:
Proceeds from sale of shares		10,679,729			11,846,604
Net asset value of shares issued to shareholders in payment of distributions declared		11,952			- --
Cost of shares redeemed		(7,802,391	)		(5,710,298	)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		2,889,290			6,136,306
Change in net assets		(4,256,605	)		4,776,756
Net Assets:
Beginning of period		15,332,043			10,555,287
End of period (including distributions in excess of net investment income of $(4,920) and $0, respectively)	$	11,075,438		$	15,332,043

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

January 31, 2009 (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 nine 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. Each portfolio pays its own expenses. 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 investment objective of the Fund is to provide long-term capital appreciation while seeking to minimize the impact of taxes.

2. SIGNIFICANT ACCOUNTING POLICIES

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

Investment Valuation

In calculating its net asset value (NAV), the Fund generally values investments as follows:

• Equity securities listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market.
• Shares of other mutual funds are valued based upon their reported NAVs.
• Fixed-income securities acquired with remaining maturities greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Board of Trustees (the "Trustees").
• Fixed-income securities acquired with remaining maturities of 60 days or less are valued at their cost (adjusted for the accretion of any discount or amortization of any premium).
• Derivative contracts listed on exchanges are valued at their reported settlement or closing price.
• Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Trustees.

If the Fund cannot obtain a price or price evaluation from a pricing service for an investment, the Fund may attempt to value the investment based upon the mean of bid and asked quotations or fair value the investment based on price evaluations, from one or more dealers. If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could purchase or sell an investment at the price used to calculate the Fund's NAV.

Fair Valuation and Significant Events Procedures

The Trustees have authorized the use of pricing services to provide evaluations of the current fair value of certain investments for purposes of calculating the NAV. Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a "bid" evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and asked for the investment (a "mid" evaluation). The Fund normally uses bid evaluations for U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for other types of fixed-income securities and OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Trustees.

The Trustees also have adopted procedures requiring an investment to be priced at its fair value whenever the Adviser determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment's value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:

• With respect to securities traded in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures or options contracts;
• With respect to price evaluations of fixed-income securities determined before the close of regular trading on the NYSE, actions by the Federal Reserve Open Market Committee and other significant trends in U.S. fixed-income markets;
• Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; and
• Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, a natural disaster affecting the issuer's operations or regulatory changes or market developments affecting the issuer's industry.

The Trustees have approved the use of a pricing service to determine the fair value of equity securities traded principally in foreign markets when the Adviser determines that there has been a significant trend in the U.S. equity markets or in index futures trading. For other significant events, the Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Fund will determine the fair value of the investment using another method approved by the Trustees.

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

Investment transactions are accounted for on a trade-date basis. Realized gains and losses from investment transactions are recorded on an identified cost basis. Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Foreign dividends are recorded on the ex-dividend date or when the Fund is informed of the ex-dividend date. Distributions of net investment income 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 may bear certain expenses unique to that class such as distribution services 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. The Fund complies with the provisions of Financial Accounting Standards Board (FASB) Interpretation No. 48 (FIN 48), "Accounting for Uncertainty in Income Taxes." As of and during the six months ended January 31, 2009, the Fund did not have a liability for any uncertain tax positions. The Fund recognizes interest and penalties, if any, related to tax liabilities as income tax expense in the Statement of Operations. As of January 31, 2009, tax years 2006 through 2008 remain subject to examination by the Fund's major tax jurisdictions, which include the United States of America and the Commonwealth of Massachusetts.

The Fund may be subject to taxes imposed by governments of countries in which it invests. Such taxes are generally based on either income or gains earned or repatriated. The Fund accrues and applies such taxes to net investment income, net realized gains and net unrealized gains as income and/or gains are earned.

When-Issued and Delayed Delivery Transactions

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

Other

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

3. SHARES OF BENEFICIAL INTEREST

The following tables summarize share activity:

	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Institutional Shares:	Shares			Amount		Shares			Amount
Shares sold	439,256		$	3,123,076		549,863		$	6,491,359
Shares issued to shareholders in payment of distributions declared	976			6,958		--			--
Shares redeemed	(232,979	)		(1,849,603	)	(413,746	)		(4,792,720	)
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS	207,253		$	1,280,431		136,117		$	1,698,639
	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Class A Shares:	Shares			Amount		Shares			Amount
Shares sold	835,966		$	7,099,928		353,832		$	4,174,842
Shares issued to shareholders in payment of distributions declared	703			4,994		--			--
Shares redeemed	(756,364	)		(5,311,516	)	(55,720	)		(639,826	)
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS	80,305		$	1,793,406		298,112		$	3,535,016
	Six Months Ended 1/31/2009					Year Ended 7/31/2008
Class C Shares:	Shares			Amount		Shares			Amount
Shares sold	60,965		$	456,725		100,386		$	1,180,403
Shares redeemed	(87,199	)		(641,272	)	(23,958	)		(277,752	)
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS	(26,234	)	$	(184,547	)	76,428		$	902,651
NET CHANGE RESULTING FROM SHARE TRANSACTIONS	261,324		$	2,889,290		510,657		$	6,136,306

4. FEDERAL TAX INFORMATION

At January 31, 2009, the cost of investments for federal tax purposes was $11,907,669. The net unrealized depreciation of investments for federal tax purposes was $744,347. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $595,542 and net unrealized depreciation from investments for those securities having an excess of cost over value of $1,339,889.

At July 31, 2008, the Fund had a capital loss carryforward of $10,826 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 2015.

5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated MDTA LLC is the Fund's investment adviser (the "Adviser"). The advisory agreement between the Fund and the Adviser provides for an annual fee equal to 0.90% of the Fund's average daily net assets. Prior to December 8, 2008, the Adviser agreed to waive all or a portion of the advisory fee and/or reimburse certain operating expenses (excluding interest, taxes and brokerage commissions) in order to contractually limit the Fund's aggregate annual operating expenses to no more than the following annual percentages for each class of the Fund based on average daily net assets:

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

In addition, subject to the terms described in the Expense Limitation note, 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, 2009, the Adviser waived $62,793 of its fee and reimbursed $132,309 of other operating expenses.

Administrative Fee

Federated Administrative Services (FAS), under the Administrative Services 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. Subject to the terms described in the Expense Limitation note, 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, 2009, the net fee paid to FAS was 1.335% of average daily net assets of the Fund. The Fund is currently being charged the minimum administrative fee; therefore the fee as a percentage of average daily net assets is greater than the amounts presented in the chart above. FAS waived $22,615 of its fee.

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 at the following percentages of average daily net assets annually, to compensate FSC:

Share Class Name	Percentage of Average Daily Net Assets of Class
Class A Shares	0.05%
Class C Shares	0.75%

Subject to the terms described in the Expense Limitation note, 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, 2009, FSC retained $2,405 of fees paid by the Fund. For the six months ended January 31, 2009, the Fund's Class A Shares did not incur a distribution services fee; however it may begin to incur this fee upon approval of the Trustees. On November 15, 2007, the Trustees approved an amendment to the Plan to reduce the distribution services fee for the Fund's Class A Shares from 0.25% to 0.05%. The amendment to the Plan became effective for the Fund on March 31, 2008.

Sales Charges

Front-end sales charges and contingent deferred sales charges (CDSC) do not represent expenses of the Fund. They are deducted from the proceeds of sales of Fund shares prior to investment or from redemption proceeds prior to remittance, as applicable. For the six months ended January 31, 2009, FSC retained $330 in sales charges from the sale of Class A Shares. FSC also retained $123 of CDSC relating to redemptions of Class C Shares.

Shareholder Services Fee

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. Subject to the terms described in the Expense Limitation note, FSSC may voluntarily reimburse the Fund for shareholder services fees. This voluntary reimbursement can be modified or terminated at any time. For the six months ended January 31, 2009, FSSC received $243 of fees paid by the Fund.

Expense Limitation

The Adviser and its affiliates (which may include FSC, FAS and FSSC) have voluntarily agreed to waive their fees and/or reimburse expenses so that the total operating expenses (as shown in the financial highlights) paid by the Fund's Institutional Shares, Class A Shares and Class C Shares (after the voluntary waivers and reimbursements) will not exceed 1.40%, 1.65% and 2.40%, respectively, for the fiscal year ending July 31, 2009. Although these actions are voluntary, the Adviser and its affiliates have agreed to continue these waivers and/or reimbursements at least through September 30, 2009.

General

Certain 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 affiliated mutual funds. For the six months ended January 31, 2009, the Adviser reimbursed $111. Transactions with the affiliated company during the six months ended January 31, 2009 were as follows:

Affiliate	Balance of Shares Held 7/31/2008	Purchases/ Additions	Sales/ Reductions	Balance of Shares Held 1/31/2009	Value	Dividend Income
Prime Value Obligations Fund, Institutional Shares	240,412	6,331,467	6,286,604	285,275	$285,275	$3,389

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, 2009, were as follows:

Purchases	$	23,276,191
Sales	$	20,523,432

7. LINE OF CREDIT

The Fund participates in a $100,000,000 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, 2009, there were no outstanding loans. During the six months ended January 31, 2009, the Fund did not utilize the LOC.

8. INTERFUND LENDING

Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (SEC), the Fund, along with other funds advised by subsidiaries of Federated Investors, Inc., may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from other participating affiliated funds. As of January 31, 2009, there were no outstanding loans. During the six months ended January 31, 2009, the program was not utilized.

9. LEGAL PROCEEDINGS

Since October 2003, Federated Investors, Inc. and related entities (collectively, "Federated") and various Federated funds ("Federated Funds") have been 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 Federated Funds from the 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 entities have also been named as defendants in several additional lawsuits that 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 Federated Funds retained the law firm of Dickstein Shapiro LLP to represent the Federated Funds in these lawsuits. Federated and the Federated Funds and their respective counsel have been defending this litigation and none of the Federated Funds remains a defendant in any of the lawsuits (though some could potentially receive any recoveries as nominal defendants). 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 Federated 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 Federated Fund redemptions, reduced sales of Federated Fund shares or other adverse consequences for the Federated Funds.

Evaluation and Approval of Advisory
Contract - May 2008

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 2008. The Board's decision regarding the contract reflects the exercise of its business judgment on whether to continue the existing arrangements.

In this connection, the Federated funds' Board had previously appointed 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 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. The Board considered that evaluation, along with other information, in deciding to approve the advisory contract.

During its review of the contract, the Board considered compensation and benefits received by the Adviser. This included the fees received for services provided to the Fund by other entities in the Federated organization and research services received by the Adviser from brokers that execute Federated fund trades, as well as advisory fees. The Board is also familiar with and considered 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 a fund grows larger; any indirect benefits that may accrue to the Adviser and its affiliates as a result of the Adviser's relationship with a 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 what might be viewed as like services, and the cost 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 for supplying such services. The Board was aware of these factors and was guided by them in its review of the Fund's advisory contract to the extent it considered them to be appropriate and relevant, as discussed further below.

The Board considered and weighed these circumstances in light of its substantial accumulated experience in governing the Fund and working with Federated on matters relating to the Federated funds, and was assisted in its deliberations by independent legal counsel. Throughout the year, the Board has requested and received substantial and detailed information about the Fund and the Federated organization that was in addition to the extensive materials that comprise and accompany the Senior Officer's evaluation. Federated provided much of this information at each regular meeting of the Board, and furnished additional reports in connection with the particular meeting at which the Board's formal review of the advisory contract occurred. Between regularly scheduled meetings, the Board also received information on particular matters as the need arose. Thus, 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 short- and long-term performance (in absolute terms, both on a gross basis and net of expenses, as well as in relationship to its particular investment program and certain competitor or "peer group" funds and/or other benchmarks, as appropriate), and comments on the reasons for performance; the Fund's investment objectives; the Fund's expenses (including the advisory fee 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 use and allocation of brokerage commissions derived from trading the Fund's portfolio securities (if any); and the nature, quality and extent of the advisory and other services provided to the Fund by the Adviser and its affiliates. The Board also considered the preferences and expectations of Fund shareholders 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 performance and 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 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 competes. The Fund's ability to deliver competitive performance when compared to its peer group was a useful indicator of how the Adviser is executing 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 continuation of the advisory contract. In this regard, the Senior Officer has 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 include, but are not limited to, different types of targeted investors; being subject to different laws and regulations; different legal structures; different average account sizes; different associated costs; and different 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, using data supplied by independent fund ranking organizations, regarding the performance of, and fees charged by, other mutual funds, noting his view that comparisons to fund peer groups are highly important in judging the reasonableness of proposed fees. He also observed that certain funds may exhibit important differences in their objectives and management techniques when compared to other funds placed in the same peer group by ranking organizations, noting in this connection that the Fund's quantitative investment program is of such a type.

For the one-year period ending December 31, 2007, the Fund's performance was above the median of the relevant peer group. In addition, the Board was informed by the Adviser that, for the same period, the Fund outperformed its benchmark index for the one-year period.

The Board also received financial information about Federated, including reports on the compensation and benefits Federated derived from its relationships with the Federated funds. These reports covered 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 discussed any indirect benefit Federated may derive from its receipt of research services from brokers who execute Federated fund trades. In addition, the Board considered the fact that, in order for a fund to be competitive in the marketplace, Federated and its affiliates frequently waived fees and/or reimbursed expenses and have disclosed to fund investors and/or indicated to the Board their intention to do so in the future, where appropriate.

Federated furnished reports, requested by the Senior Officer, that reported revenues on a fund-by-fund basis and made estimates of the allocation of expenses on a fund-by-fund basis, using allocation methodologies specified by the Senior Officer. The Senior Officer noted that, although they may apply consistent allocation processes, the inherent difficulties in allocating costs (and the unavoidable arbitrary aspects of that exercise) and the lack of consensus on how to allocate those costs may render such allocation reports unreliable. The allocation reports were considered in the analysis by the Board but were determined to be of limited use.

The Board and the Senior Officer also reviewed a report compiled by Federated comparing profitability information for Federated to other publicly held fund management companies. In this regard, the Senior Officer noted the limited availability of such information, but nonetheless concluded that Federated's profit margins did not appear to be excessive and the Board agreed.

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 and long-term investments in areas that support all of the Federated funds, such as personnel and processes for the portfolio management, compliance, and risk management functions; and systems technology; and that the benefits of these efforts (as well as 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 (as discussed in the Senior Officer's evaluation) 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.

It was noted in the materials for the Board meeting that for the Fund's most recently completed fiscal year, the Fund's investment advisory fee was waived in its entirety. The Board reviewed the contractual fee rate and other expenses of the Fund with the Adviser and was satisfied that the overall expense structure of the Fund remained competitive.

The Senior Officer's evaluation noted his belief that the information and observations contained in his evaluation supported a finding that the proposed management fees are reasonable, and that Federated appeared to provide appropriate administrative services to the Fund for the fees paid. Under these circumstances, no changes were recommended to, and no objection was raised to, the continuation of the Fund's advisory contract. The Board concluded that the nature, quality and scope of services provided the Fund by the Adviser and its affiliates were satisfactory.

In its decision to continue an existing investment advisory contract, the Board was mindful of the potential disruptions of the Fund's operations and various risks, uncertainties and other effects that could occur as a result of a decision to terminate or not renew an advisory contract. In particular, the Board recognized that most shareholders have invested in the Fund on the strength of the Adviser's industry standing and reputation and with the expectation that the Adviser will have a continuing role in providing advisory services to the Fund. Thus, the Board's approval of the advisory contract reflected the fact that it is the shareholders who have effectively selected the Adviser by virtue of having invested in the Fund.

The Board 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. Not all of the factors and considerations identified above were necessarily relevant to the Fund, nor did the Board consider any one of them to be determinative. With respect to the factors that were relevant, the Board's decision to approve the contract reflects its determination that Federated's performance and actions provided a satisfactory basis to support the decision to continue the existing 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 from Federated's website at FederatedInvestors.com. To access this information from the "Products" section of the website, click on the "Prospectuses and Regulatory Reports" link under "Related Information," then select the appropriate link opposite the name of the Fund; or select the name of the Fund and from the Fund's page, click on the "Prospectuses and Regulatory Reports" link. Form N-PX filings are also available at 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" under "Related Information," then selecting the appropriate link opposite the name of the Fund; or select the name of the Fund and from the Fund's page, click on the "Portfolio Holdings" link.

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 (3/09)

Federated is a registered mark of Federated Investors, Inc. 2009 (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 23, 2009
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 23, 2009
By	/S/ Richard A. Novak
	Richard A. Novak, Principal Financial Officer
Date	March 23, 2009