Federated Hermes MDT Small Cap Core Fund NCSR Certified 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, Pennsylvania 15086-7561

(Address of Principal Executive Offices)

(412) 288-1900

(Registrant's Telephone Number)

John W. McGonigle, Esquire

Federated Investors Tower

1001 Liberty Avenue

Pittsburgh, Pennsylvania 15222-3779

(Name and Address of Agent for Service)

(Notices should be sent to the Agent for Service)

Date of Fiscal Year End: 7/31/09

Date of Reporting Period: Fiscal year ended: 7/31/09

Item 1. Reports to Stockholders

Federated
World-Class Investment Manager

Federated MDT All Cap
Core Fund

Established 2002

A Portfolio of Federated MDT Series

ANNUAL SHAREHOLDER REPORT

July 31, 2009

Class A Shares
Class C Shares
Class K Shares

FINANCIAL HIGHLIGHTS
SHAREHOLDER EXPENSE EXAMPLE
MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE
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
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
BOARD OF TRUSTEES AND TRUST OFFICERS
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)

Year Ended July 31	2009		2008		2007	¹	2006	²	2005
Net Asset Value, Beginning of Period:	$14.05		$16.74		$15.08		$15.26		$13.52
Income From Investment Operations:
Net investment income (loss)	0.06	³	0.06		0.02	³	0.00	^3,4	(0.00	)^3,4
Net realized and unrealized gain (loss) on investments	(4.15	)	(1.56	)	2.18		0.70		2.85
TOTAL FROM INVESTMENT OPERATIONS	(4.09	)	(1.50	)	2.20		0.70		2.85
Less Distributions:
Distributions from net investment income	(0.05	)	- --		- --		(0.00	)⁴	(0.03	)
Distributions from net realized gain on investments	- --		(1.19	)	(0.54	)	(0.88	)	(1.08	)
TOTAL DISTRIBUTIONS	(0.05	)	(1.19	)	(0.54	)	(0.88	)	(1.11	)
Net Asset Value, End of Period	$ 9.91		$14.05		$16.74		$15.08		$15.26
Total Return⁵	(29.07	)%	(9.98	)%	14.67	%	4.59	%	21.79	%

Ratios to Average Net Assets:
Net expenses	1.34	%	1.29	%	1.36	%	1.50	%	1.50	%
Net investment income (loss)	0.64	%	0.43	%	0.13	%	0.03	%	(0.02	)%
Expense waiver/reimbursement⁶	0.14	%	0.00	%⁷	0.00	%⁷	0.05	%	0.04	%
Supplemental Data:
Net assets, end of period (000 omitted)	$81,898		$194,867		$201,888		$101,723		$30,336
Portfolio turnover	290	%	199	%	225	%	212	%	204	%

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 year was 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.

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%.

See Notes which are an integral part of the Financial Statements

Financial Highlights - Class C Shares

(For a Share Outstanding Throughout Each Period)

	Year Ended July 31,						Period Ended
	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)	(0.02	)³	(0.04	)	(0.11	)³	(0.10	)³
Net realized and unrealized gain (loss) on investments	(4.05	)	(1.55	)	2.17		0.72
TOTAL FROM INVESTMENT OPERATIONS	(4.07	)	(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	$ 9.66		$13.73		$16.51		$14.99
Total Return⁴	(29.64	)%	(10.69	)%	13.81	%	4.01	%

Ratios to Average Net Assets:
Net expenses	2.14	%	2.08	%	2.13	%	2.25	%⁵
Net investment income (loss)	(0.17	)%	(0.36	)%	(0.64	)%	(0.72	)%⁵
Expense waiver/reimbursement⁶	0.17	%	0.00	%⁷	0.00	%⁷	0.05	%⁵
Supplemental Data:
Net assets, end of period (000 omitted)	$52,546		$96,601		$104,957		$48,189
Portfolio turnover	290	%	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)

	Year Ended July 31,				Period Ended
	2009		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	(4.16	)	(1.57	)	0.61
TOTAL FROM INVESTMENT OPERATIONS	(4.15	)	(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	$ 9.91		$14.10		$16.86
Total Return⁴	(29.42	)%	(10.34	)%	3.52	%

Ratios to Average Net Assets:
Net expenses	1.80	%	1.75	%	1.80	%⁵
Net investment income (loss)	0.15	%	(0.00	)%⁶	0.30	%⁵
Expense waiver/reimbursement⁷	0.11	%	0.00	%⁶	0.02	%⁵
Supplemental Data:
Net assets, end of period (000 omitted)	$1,937		$1,393		$135
Portfolio turnover	290	%	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.

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 February 1, 2009 to July 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 2/1/2009	Ending Account Value 7/31/2009	Expenses Paid During Period¹
Actual:
Class A Shares	$1,000	$1,164.50	$ 7.19
Class C Shares	$1,000	$1,159.70	$11.46
Class K Shares	$1,000	$1,161.80	$ 9.65
Hypothetical (assuming a 5% return before expenses):
Class A Shares	$1,000	$1,018.15	$ 6.71
Class C Shares	$1,000	$1,014.18	$10.69
Class K Shares	$1,000	$1,015.87	$ 9.00

1 Expenses are equal to the Fund's annualized net expense ratios, multiplied by the average account value over the period, multiplied by 181/365 (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%

Management's Discussion of Fund Performance (unaudited)

The fund's total return based on net asset value for the fiscal year ended July 31, 2009 was -29.07% for Class A Shares, -29.64% for Class C Shares and -29.42% for Class K Shares. The total returns of the Russell 3000® Index (Russell 3000®)¹ and the Lipper Multi-Cap Core Funds Index,² respectively, were -20.21% and -19.00% for the same period. The fund's total return for the fiscal year reflected taxes, sales charges, expenses or other fees which were not reflected in the total return of the Russell Index.

1 The Russell 3000® Index offers investors access to the broad U.S. equity universe representing approximately 98% of the U.S. market. The Russell 3000 is constructed to provide a comprehensive, unbiased and stable barometer of the broad market and is completely reconstituted annually to ensure new and growing equities are reflected. The index is unmanaged and investments can not be made directly in an index.

2 Lipper indices are equally weighted indices of the largest mutual funds within their respective investment objectives. Returns are adjusted for the reinvestment of capital gains distributions and income dividends.

The following discussion will focus on the performance of the fund's Class A Shares.

MARKET OVERVIEW

Over the 12-month reporting period ending July 31, 2009 domestic equity markets performed poorly in response to a material decline in global economic conditions. The Russell 3000® Index, which represents the performance of the 3,000 largest U.S. companies by market capitalization, finished the period down 20.21%. Large cap stocks had the best relative results as demonstrated by the -19.38% return on the Russell Top 200® Index,³ which exceeded the return of mid- and small-cap stocks as evidenced by the -20.72% and -22.23% results for the Russell 2000® and the Russell Midcap® Indexes,^4,5 respectively. Growth stocks outperformed value stocks during the year, with the Russell 3000® Growth Index⁶ returning -17.81% as compared to -22.74% for the Russell 3000 Value® Index.⁷

3 Russell Top 200® Index measures the performance of the 200 largest companies in the Russell 1000 Index, which represents approximately 69% of the total market capitalization of the Russell 1000 Index. The index is unmanaged and investments cannot be made directly in an index.

4 The Russell 2000® Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 10% of the total market capitalization of the Russell 3000 Index. The index is unmanaged and investments cannot be made directly in an index.

5 The Russell Midcap® Index measures the performance of the 800 smallest companies in the Russell 1000 Index, which represent approximately 31% of the total market capitalization of the Russell 1000 Index. The index is unmanaged and investments cannot be made directly in an index.

6 The Russell 3000® Growth Index measures the performance of those Russell 3000 Index companies with higher price-to-book ratios and higher forecasted growth values. The stocks in this index are also members of either the Russell 1000 Growth or the Russell 2000 Growth indexes. The index is unmanaged and investments cannot be made directly in an index.

7 The Russell 3000® Value Index measures the performance of those Russell 3000 Index companies with lower price-to-book ratios and lower forecasted growth values. The stocks in this index are also members of either the Russell 1000 Value or the Russell 2000 Value indexes. The index is unmanaged and investments cannot be made directly in an index.

The best performing sectors in the Russell 3000® Index during the period were Consumer Staples (-7.53%), Information Technology (-9.65%) and Consumer Discretionary (-10.68%). Underperforming sectors included Financials (-34.08%), Energy (-31.64%) and Industrials (-30.11%).

FUND PERFORMANCE

The most significant positive factor in the fund's performance relative to the Russell 3000® Index was stock selection in the Materials and Financials sectors. Additionally, the fund's timely shifts in the Financials sector weighting provided a significant contribution to relative performance. Individual stocks contributing to the fund's performance relative to the Russell 3000® Index included: General Electric Company, BB&T Corporation, Bank of America Corporation and International Business Machines.

The most significant negative factor in the fund's performance relative to the Russell 3000® Index was stock selection in the Consumer Discretionary, Industrials and Health Care sectors. Additionally, an underweight in the Consumer Staples sector and an overweight in the Energy sector detracted significantly from relative performance. Individual stocks detracting from the fund's performance relative to the Russell 3000® Index included: Cummins Engine Incorporated, Monsanto Company, ConocoPhillips and Allstate Corporation.

GROWTH OF A $10,000 INVESTMENT - CLASS A SHARES

The graph below illustrates the hypothetical investment of $10,000¹ in the Federated MDT All Cap Core Fund² (Class A Shares) (the "Fund") from October 1, 2002 (start of performance) to July 31, 2009, compared to the Russell 3000^® Index (Russell 3000^® )³ and the Lipper Multi-Cap Core Funds Index.⁴

Average Annual Total Returns for the Period Ended 7/31/2009
1 Year		- -32.98%
5 Years		- -2.50%
Start of Performance (10/1/2002)⁵		2.93%

Performance data quoted represents past performance which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For current to the most recent month-end performance and after-tax returns, visit FederatedInvestors.com or call 1-800-341-7400. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Mutual funds are not obligations of or guaranteed by any bank and are not federally insured. Total returns shown include the maximum sales charge of 5.50% ..

1 Represents a hypothetical investment of $10,000 in the Fund after deducting the maximum sales charge of 5.50% ($10,000 investment minus $550 sales charge = $9,450). The Fund's performance assumes the reinvestment of all dividends and distributions. The Russell 3000^® and the Lipper Multi-Cap Core Funds Index have been adjusted to reflect reinvestment of dividends on securities in the indexes.

2 The Fund is the successor to the MDT All Cap Core Fund pursuant to a reorganization that took place on December 8, 2006. Prior to that date, the Fund had no investment operations. Accordingly, the performance information shown for periods prior to that date is that of the MDT All Cap Core Fund.

3 The Russell 3000^® is not adjusted to reflect sales charges, expenses or other fees that the Securities and Exchange Commission (SEC) requires to be reflected in the Fund's performance. The index is unmanaged and, unlike the Fund, is not affected by cash flows. It is not possible to invest directly in an index.

4 Lipper indices are equally weighted indices of the largest mutual funds within their respective investment objectives. Returns are adjusted for the reinvestment of capital gains distributions and income dividends.

5 The start of performance date was October 1, 2002. Class A Shares of the Fund were offered beginning February 12, 2003. Performance results shown before that date are for the Fund's Institutional Shares and have been adjusted for the maximum sales charge and total annual operating expenses applicable to the Fund's Class A Shares. The Fund's Institutional Shares commenced operations on October 1, 2002. The Fund's Class A Shares annual returns would have been substantially similar to those of the Fund's Institutional Shares because Shares of each class are invested in the same portfolio of securities.

GROWTH OF A $10,000 INVESTMENT - CLASS C SHARES

The graph below illustrates the hypothetical investment of $10,000¹ in the Federated MDT All Cap Core Fund² (Class C Shares) (the "Fund") from October 1, 2002 (start of performance) to July 31, 2009, compared to the Russell 3000^® Index (Russell 3000^® )³ and the Lipper Multi-Cap Core Funds Index.⁴

Average Annual Total Returns for the Period Ended 7/31/2009
1 Year		- -30.35%
5 Years		- -2.14%
Start of Performance (10/1/2002)⁵		2.99%

1 Represents a hypothetical investment of $10,000 in the Fund. The maximum CDSC is 1.00% on any redemption less than one year from the purchase date. The Fund's performance assumes the reinvestment of all dividends and distributions. The Russell 3000^® and the Lipper Multi-Cap Core Funds Index have been adjusted to reflect reinvestment of dividends on securities in the indexes.

3 The Russell 3000^® is not adjusted to reflect sales charges, expenses or other fees that the SEC requires to be reflected in the Fund's performance. The index is unmanaged and, unlike the Fund, is not affected by cash flows. It is not possible to invest directly in an index.

5 The start of performance date was October 1, 2002. Class C Shares of the Fund were offered beginning September 15, 2005. Performance results shown before that date are for the Fund's Institutional Shares and have been adjusted for the maximum CDSC and total annual operating expenses applicable to the Fund's Class C Shares. The Fund's Institutional Shares commenced operations on October 1, 2002. The Fund's Class C Shares annual returns would have been substantially similar to those of the Fund's Institutional Shares because Shares of each class are invested in the same portfolio of securities.

GROWTH OF A $10,000 INVESTMENT - CLASS K SHARES

The graph below illustrates the hypothetical investment of $10,000¹ in the Federated MDT All Cap Core Fund (Class K Shares) (the "Fund") from October 1, 2002 (start of performance) to July 31, 2009, compared to the Russell 3000^® Index (Russell 3000^® )² and the Lipper Multi-Cap Core Funds Index.³

Average Annual Total Returns for the Period Ended 7/31/2009
1 Year		- -29.42%
5 Years		- -1.78%
Start of Performance (10/1/2002)⁴		3.33%

1 The Fund's performance assumes the reinvestment of all dividends and distributions. The Russell 3000^® and the Lipper Multi-Cap Core Funds Index have been adjusted to reflect reinvestment of dividends on securities in the indexes.

2 The Russell 3000^® is not adjusted to reflect sales charges, expenses or other fees that the SEC requires to be reflected in the Fund's performance. The index is unmanaged and, unlike the Fund, is not affected by cash flows. It is not possible to invest directly in an index.

3 Lipper indices are equally weighted indices of the largest mutual funds within their respective investment objectives. Returns are adjusted for the reinvestment of capital gains distributions and income dividends.

4 The start of performance date was October 1, 2002. Class K Shares of the Fund were offered beginning December 12, 2006. Performance results shown before that date are for the Fund's Institutional Shares and have been adjusted for the total annual operating expenses applicable to the Fund's Class K Shares. The Fund's Institutional Shares commenced operations on October 1, 2002. The Fund's Class K Shares annual returns would have been substantially similar to those of the Fund's Institutional Shares because Shares of each class are invested in the same portfolio of securities.

Portfolio of Investments Summary Table (unaudited)

At July 31, 2009, the Fund's industry composition¹was as follows:

Industry Composition		Percentage of Total Net Assets
Integrated International Oil		9.8%
Biotechnology		7.1%
Property Liability Insurance		6.8%
Crude Oil & Gas Production		5.1%
Electric Utility		5.1%
Computers - High End		4.9%
Securities Brokerage		4.7%
Undesignated Consumer Cyclicals		4.7%
Services to Medical Professionals		3.9%
Integrated Domestic Oil		3.7%
AT&T Divestiture		3.1%
Software Packaged/Custom		2.9%
Multi-Line Insurance		2.8%
Defense Aerospace		2.5%
Railroad		2.3%
Multi-Industry Capital Goods		2.2%
Diversified Tobacco		1.8%
Internet Services		1.8%

Industry Composition		Percentage of Total Net Assets
Life Insurance		1.7%
Cable TV		1.6%
Ethical Drugs		1.6%
Home Building		1.6%
Defense Electronics		1.1%
Gas Distributor		1.1%
Regional Bank		1.1%
Grocery Chain		1.0%
Tobacco		1.0%
Other²		11.4%
Cash Equivalents³		1.3%
Other Assets and Liabilities - Net⁴		0.3%
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

July 31, 2009

Shares					Value
			COMMON STOCKS--98.4%
			Advertising--0.0%
	1,600		Omnicom Group, Inc.	$	54,400
			Agricultural Chemicals--0.2%
	7,200		FMC Corp.		350,208
			AT&T Divestiture--3.1%
	217,300		AT&T, Inc.		5,699,779
			Auto Original Equipment Manufacturers--0.2%
	2,000	¹	AutoZone, Inc.		307,140
			Biotechnology--7.1%
	96,700	¹	Amgen, Inc.		6,025,377
	14,600	¹	Biogen Idec, Inc.		694,230
	7,200	¹	Cephalon, Inc.		422,280
	3,400	¹	Charles River Laboratories International, Inc.		112,438
	123,400	¹	Gilead Sciences, Inc.		6,037,962
			TOTAL		13,292,287
			Cable TV--1.6%
	7,300		Comcast Corp., Class A		108,478
	2,800	¹	Discovery Communications, Inc.		68,600
	13,100		Time Warner Cable, Inc.		433,086
	57,200		Time Warner, Inc.		1,524,952
	38,400	¹	Viacom, Inc., Class B		889,344
			TOTAL		3,024,460
			Cellular Communications--0.0%
	2,100	¹	NII Holdings, Inc.		48,342
			Clothing Stores--0.5%
	13,600	¹	Children's Place Retail Stores, Inc.		445,672
	13,600	¹	Jos A. Bank Clothiers, Inc.		497,624
	4,600		Limited Brands, Inc.		59,524
			TOTAL		1,002,820
			Cogeneration--0.6%
	60,000	¹	Mirant Corp.		1,083,600
			Computer Networking--0.0%
	1,400		Black Box Corp.		38,458
Shares					Value
			COMMON STOCKS--continued
			Computer Peripherals--0.6%
	33,300	¹	Lexmark International Group, Class A	$	482,184
	4,200	¹	Sandisk Corp.		74,844
	19,100	¹	Synaptics, Inc.		457,827
	2,800		Western Union Co.		48,944
			TOTAL		1,063,799
			Computer Services--0.2%
	4,300	¹	Affiliated Computer Services, Inc., Class A		203,863
	7,500	¹	Synnex Corp.		213,150
			TOTAL		417,013
			Computer Stores--0.2%
	20,000	¹	GameStop Corp.		437,800
			Computers - High End--4.9%
	77,300		IBM Corp.		9,115,989
			Computers - Low End--0.7%
	101,400	¹	Dell, Inc.		1,356,732
			Contracting--0.1%
	5,100	¹	IHS, Inc., Class A		254,694
			Crude Oil & Gas Production--5.1%
	63,400		Apache Corp.		5,322,430
	5,100		Chesapeake Energy Corp.		109,344
	19,500		Cimarex Energy Co.		697,710
	40,800	¹	Newfield Exploration Co.		1,604,664
	56,500		Pioneer Natural Resources, Inc.		1,613,075
	7,200	¹	Stone Energy Corp.		78,192
	8,600	¹	Tetra Technologies, Inc.		66,306
			TOTAL		9,491,721
			Defense Aerospace--2.5%
	1,400	¹	Alliant Techsystems, Inc.		110,208
	60,100		Boeing Co.		2,578,891
	13,200		Goodrich (B.F.) Co.		677,952
	9,700		Lockheed Martin Corp.		725,172
	14,100	¹	TransDigm Group, Inc.		539,889
			TOTAL		4,632,112
Shares					Value
			COMMON STOCKS--continued
			Defense Electronics--1.1%
	1,200		Grainger (W.W.), Inc.	$	107,892
	12,100		L-3 Communications Holdings, Inc.		913,550
	12,500		Northrop Grumman Corp.		557,250
	8,600		Raytheon Co.		403,770
			TOTAL		1,982,462
			Diversified Leisure--0.0%
	100	¹	Gaylord Entertainment Co.		1,427
			Diversified Tobacco--1.8%
	126,200		Altria Group, Inc.		2,212,286
	1,500	¹	Lorillard, Inc.		110,580
	24,100		Reynolds American, Inc.		1,048,591
			TOTAL		3,371,457
			Electric Utility--5.1%
	38,100		Ameren Corp.		968,883
	48,500		CMS Energy Corp.		627,590
	6,100		CenterPoint Energy, Inc.		73,505
	4,000		DPL, Inc.		95,800
	20,000		DTE Energy Co.		689,200
	16,300		Dominion Resources, Inc.		550,940
	17,300		Duke Energy Corp.		267,804
	22,300		Edison International		720,736
	5,800		Entergy Corp.		465,914
	2,400		ITC Holdings Corp.		114,480
	10,100		Idacorp, Inc.		279,972
	6,700		NiSource, Inc.		86,363
	8,600		OGE Energy Corp.		258,860
	5,900		PPL Corp.		199,361
	6,200		Pinnacle West Capital Corp.		198,152
	36,900		Public Service Enterprises Group, Inc.		1,197,405
	48,000		Sempra Energy		2,516,640
	7,400		UniSource Energy Corp.		204,240
			TOTAL		9,515,845
			Electronic & Electrical Original Equipment Manufacturers--0.3%
	26,000		Molex, Inc.		461,760
Shares					Value
			COMMON STOCKS--continued
			Electronic Instruments--0.0%
	2,600		Garmin Ltd.	$	71,916
			Ethical Drugs--1.6%
	128,200		Bristol-Myers Squibb Co.		2,787,068
	7,400	¹	Valeant Pharmaceuticals International		190,920
			TOTAL		2,977,988
			Financial Services--0.3%
	1,200		Blackrock, Inc.		228,648
	3,500		Equifax, Inc.		91,175
	4,900	¹	MSCI, Inc., Class A		136,955
	1,800		Moody's Corp.		42,732
			TOTAL		499,510
			Furniture--0.1%
	9,700		Leggett and Platt, Inc.		168,295
			Gas Distributor--1.1%
	4,900		AGL Resources, Inc.		164,738
	23,100		Energen Corp.		954,492
	4,100		ONEOK, Inc.		135,710
	43,800	¹	Southern Union Co.		848,844
			TOTAL		2,103,784
			Generic Drugs--0.9%
	123,700	¹	Mylan Laboratories, Inc.		1,631,603
			Grocery Chain--1.0%
	43,800		Kroger Co.		936,444
	53,200		Safeway, Inc.		1,007,076
			TOTAL		1,943,520
			Home Building--1.6%
	69,000		Lennar Corp., Class A		816,960
	111,400	¹	Toll Brothers, Inc.		2,178,984
			TOTAL		2,995,944
			Home Health Care--0.5%
	14,800	¹	Amerigroup Corp.		365,264
	4,000	¹	Gentiva Health Services, Inc.		85,120
	11,200	¹	LHC Group, Inc.		328,720
	3,200	¹	Lincare Holdings, Inc.		83,776
			TOTAL		862,880
Shares					Value
			COMMON STOCKS--continued
			Home Products--0.0%
	800		Church and Dwight, Inc.	$	47,184
			Hotels--0.0%
	4,400		Wyndham Worldwide Corp.		61,380
			Household Appliances--0.1%
	1,700		Whirlpool Corp.		97,053
			Industrial Machinery--0.2%
	19,000	¹	Terex Corp.		288,420
			Insurance Brokerage--0.2%
	4,000		Aspen Insurance Holdings Ltd.		99,480
	8,100		Axis Capital Holdings Ltd.		230,526
	1,400		Endurance Specialty Holdings Ltd.		46,718
			TOTAL		376,724
			Integrated Domestic Oil--3.7%
	157,800		ConocoPhillips		6,897,438
			Integrated International Oil--9.8%
	134,400		Chevron Corp.		9,336,768
	126,100		Exxon Mobil Corp.		8,876,179
			TOTAL		18,212,947
			Internet Services--1.8%
	11,300	¹	Amazon.com, Inc.		969,088
	49,200	¹	NetFlix, Inc.		2,161,848
	2,000	¹	Priceline.com, Inc.		259,240
			TOTAL		3,390,176
			Life Insurance--1.7%
	1,800		StanCorp Financial Group, Inc.		61,956
	77,400		Torchmark Corp.		3,023,244
			TOTAL		3,085,200
			Long-Term Care Centers--0.1%
	9,600	¹	Kindred Healthcare, Inc.		134,784
			Maritime--0.2%
	9,300		Overseas Shipholding Group, Inc.		319,455
			Medical Supplies--0.9%
	14,500	¹	American Medical Systems Holdings, Inc.		221,705
	28,600		McKesson HBOC, Inc.		1,462,890
			TOTAL		1,684,595
Shares					Value
			COMMON STOCKS--continued
			Medical Technology--0.4%
	2,800	¹	Gen-Probe, Inc.	$	103,936
	12,100	¹	Zimmer Holdings, Inc.		563,860
			TOTAL		667,796
			Metal Containers--0.1%
	4,400		Ball Corp.		212,784
			Metal Fabrication--0.0%
	1,300	¹	RTI International Metals		23,088
			Miscellaneous Communications--0.2%
	13,500	¹	Leap Wireless International, Inc.		323,325
			Miscellaneous Components--0.2%
	5,500	¹	International Rectifier Corp.		91,080
	17,100	¹	Qlogic Corp.		223,155
			TOTAL		314,235
			Miscellaneous Machinery--0.1%
	4,700		SPX Corp.		248,254
			Mortgage and Title--0.0%
	18,600		Radian Group, Inc.		61,938
			Multi-Industry Capital Goods--2.2%
	49,800		KBR, Inc.		1,055,262
	56,700		United Technologies Corp.		3,088,449
			TOTAL		4,143,711
			Multi-Line Insurance--2.8%
	31,300		AON Corp.		1,234,785
	22,700		CIGNA Corp.		644,680
	4,200	¹	CNA Financial Corp.		71,610
	3,500		Harleysville Group, Inc.		108,570
	2,800		Infinity Property & Casualty		116,312
	12,000		Montpelier Re Holdings Ltd.		188,160
	600	¹	Navigators Group, Inc.		29,586
	133,400		UNUM Group		2,503,918
	13,000		Zenith National Insurance Corp.		310,310
			TOTAL		5,207,931
			Mutual Fund Adviser--0.1%
	2,900	¹	Affiliated Managers Group		191,458
			Office Equipment--0.1%
	12,200		Pitney Bowes, Inc.		251,930
Shares					Value
			COMMON STOCKS--continued
			Oil Service, Explore & Drill--0.2%
	10,500	¹	Global Industries Ltd.	$	71,715
	4,300	¹	Seacor Holdings, Inc.		341,764
			TOTAL		413,479
			Oil Well Supply--0.1%
	4,000	¹	Dresser-Rand Group, Inc.		116,440
			Optical Reading Equipment--0.1%
	5,700	¹	Zebra Technologies Corp., Class A		139,308
			Outpatient Clinics--0.0%
	1,400	¹	DaVita, Inc.		69,580
			Packaged Foods--0.5%
	11,100		Campbell Soup Co.		344,433
	20,100		Kraft Foods, Inc., Class A		569,634
			TOTAL		914,067
			Paint & Related Materials--0.0%
	3,200		Fuller (H.B.) Co.		64,512
			Paper Products--0.1%
	2,700		Clearwater Paper Corp.		108,189
	5,400		Glatfelter (P.H.) Co.		55,890
			TOTAL		164,079
			Personal Loans--0.1%
	6,800	¹	World Acceptance Corp.		161,296
			Personnel Agency--0.2%
	6,000	¹	Hewitt Associates, Inc.		179,580
	2,500		Maximus, Inc.		106,550
			TOTAL		286,130
			Plastic Containers--0.3%
	15,200	¹	Owens-Illinois, Inc.		515,888
			Pollution Control--0.0%
	1,400	¹	Stericycle, Inc.		71,680
			Property Liability Insurance--6.8%
	22,700		Allied World Assurance Holdings Ltd.		986,542
	43,300		American Financial Group, Inc.		1,056,087
	5,600	¹	Arch Capital Group Ltd.		348,264
	36,400		Chubb Corp.		1,680,952
Shares					Value
			COMMON STOCKS--continued
			Property Liability Insurance--continued
	2,000		Everest Re Group Ltd.	$	160,440
	6,600		HCC Insurance Holdings, Inc.		165,660
	4,300		Platinum Underwriters Holdings Ltd.		145,125
	1,300	¹	ProAssurance Corp.		66,014
	6,000		RenaissanceRe Holdings Ltd.		301,500
	176,100		The Travelers Cos., Inc.		7,584,627
	4,800		Transatlantic Holdings, Inc.		227,088
			TOTAL		12,722,299
			Psychiatric Centers--0.1%
	2,600	¹	Magellan Health Services, Inc.		84,136
	1,200	¹	Psychiatric Solutions, Inc.		32,424
			TOTAL		116,560
			Railroad--2.3%
	47,500		CSX Corp.		1,905,700
	41,100		Union Pacific Corp.		2,364,072
			TOTAL		4,269,772
			Regional Bank--1.1%
	7,400		Central Pacific Financial Corp.		16,058
	78,000		Comerica, Inc.		1,859,520
	6,500		Oriental Financial Group		91,715
	9,400		Synovus Financial Corp.		32,994
	8,400	¹	TFS Financial Corp.		93,240
			TOTAL		2,093,527
			Restaurant--0.3%
	6,900	¹	Green Mountain Coffee, Inc.		486,036
			Roofing & Wallboard--0.0%
	800	¹	Beacon Roofing Supply, Inc.		13,416
			Securities Brokerage--4.7%
	52,900		Goldman Sachs Group, Inc.		8,638,570
	3,300	¹	TD Ameritrade Holding Corp.		61,182
			TOTAL		8,699,752
Shares					Value
			COMMON STOCKS--continued
			Semiconductor Distribution--0.0%
	3,800	¹	Tyler Technologies, Inc.	$	58,520
			Services to Medical Professionals--3.9%
	56,500	¹	Health Net, Inc.		764,445
	15,500	¹	Humana, Inc.		509,175
	46,900		Omnicare, Inc.		1,119,503
	1,600	¹	PharMerica Corp.		33,536
	4,700		Quest Diagnostics, Inc.		256,714
	79,100		UnitedHealth Group, Inc.		2,219,546
	44,600	¹	Wellpoint, Inc.		2,347,744
			TOTAL		7,250,663
			Shoes--0.1%
	7,300	¹	Genesco, Inc.		158,556
			Software Packaged/Custom--2.9%
	32,800		CA, Inc.		693,392
	13,800	¹	Computer Sciences Corp.		664,746
	18,700	¹	DST Systems, Inc.		828,971
	17,200	¹	Oracle Corp.		380,636
	8,100	¹	Quest Software, Inc.		119,394
	98,300	¹	Red Hat, Inc.		2,244,189
	10,200		Rovi Corp.		266,832
	14,600	¹	Symantec Corp.		217,978
	2,200	¹	Synopsys, Inc.		43,956
			TOTAL		5,460,094
			Specialty Retailing--0.7%
	44,700	¹	Big Lots, Inc.		1,029,888
	8,600	¹	Cabela's, Inc., Class A		139,406
	5,300	¹	Conn's, Inc.		66,833
	9,800	¹	Zale Corp.		58,016
			TOTAL		1,294,143
Shares					Value
			COMMON STOCKS--continued
			Stainless Steel Producer--0.1%
	6,800		Carpenter Technology Corp.	$	127,092
			Technology Services--0.0%
	1,800		Lender Processing Services		61,524
			Telecommunication Equipment & Services--0.1%
	10,100	¹	Amdocs Ltd.		241,592
			Telecommunications--0.1%
	18,800	¹	MetroPCS Communications, Inc.		222,780
			Tobacco--1.0%
	40,200		Philip Morris International, Inc.		1,873,320
			Undesignated Consumer Cyclicals--4.7%
	2,500	¹	Alliance Data Systems Corp.		127,500
	22,900	¹	Apollo Group, Inc., Class A		1,581,016
	700	¹	Capella Education Co.		45,052
	36,800	¹	Corinthian Colleges, Inc.		568,192
	8,100		DeVRY, Inc.		402,894
	8,600	¹	FTI Consulting, Inc.		468,098
	2,400		Herbalife Ltd.		82,584
	43,500	¹	ITT Educational Services, Inc.		4,234,725
	32,600	¹	Iron Mountain, Inc.		952,246
	600		Strayer Education, Inc.		127,428
	4,500	¹	TeleTech Holdings, Inc.		75,240
	1,800	¹	Weight Watchers International, Inc.		50,184
			TOTAL		8,715,159
			Undesignated Consumer Staples--0.0%
	4,800		Block (H&R), Inc.		80,112
			Undesignated Health--0.0%
	2,900	¹	HealthSouth Corp.		41,760
			TOTAL COMMON STOCKS (IDENTIFIED COST $172,566,699)		183,404,687
Shares					Value
			MUTUAL FUND--1.3%
	2,526,822	^2,3	Prime Value Obligations Fund, Institutional Shares, 0.51% (AT NET ASSET VALUE)	$	2,526,822
			TOTAL INVESTMENTS--99.7% (IDENTIFIED COST $175,093,521)⁴		185,931,509
			OTHER ASSETS AND LIABILITIES - NET--0.3%⁵		480,950
			TOTAL NET ASSETS--100%	$	186,412,459

1 Non-income producing security.

2 Affiliated company.

3 7-Day net yield.

4 The cost of investments for federal tax purposes amounts to $177,609,817.

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 July 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 July 31, 2009, in valuing the Fund's assets carried at fair value:

Valuation Inputs
	Level 1-- Quoted Prices and Investments in Mutual Funds	Level 2-- Other Significant Observable Inputs	Level 3-- Significant Unobservable Inputs	Total
Equity Securities:
Domestic	$180,651,717	$--	$--	$180,651,717
International	2,752,970	- --	- --	2,752,970
Mutual Fund	2,526,822	- --	- --	2,526,822
TOTAL SECURITIES	$185,931,509	$--	$--	$185,931,509

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

July 31, 2009

Assets:
Total investments in securities, at value including $2,526,822 of investments in an affiliated issuer (Note 5) (identified cost $175,093,521)			$	185,931,509
Income receivable				199,570
Receivable for investments sold				3,230,290
Receivable for shares sold				258,474
TOTAL ASSETS				189,619,843
Liabilities:
Payable for investments purchased	$	2,173,607
Payable for shares redeemed		740,977
Payable for transfer and dividend disbursing agent fees and expenses		123,085
Payable for Directors'/Trustees' fees		1,280
Payable for distribution services fee (Note 5)		33,027
Payable for shareholder services fee (Note 5)		62,950
Accrued expenses		72,458
TOTAL LIABILITIES				3,207,384
Net assets for 18,898,597 shares outstanding			$	186,412,459
Net Assets Consist of:
Paid-in capital			$	343,247,936
Net unrealized appreciation of investments				10,837,988
Accumulated net realized loss on investments				(168,807,914	)
Undistributed net investment income				1,134,449
TOTAL NET ASSETS			$	186,412,459

Statement of Assets and Liabilities - continued

Net Asset Value, Offering Price and Redemption Proceeds Per Share
Institutional Shares:
Net asset value per share ($50,031,068 ÷ 4,993,790 shares outstanding), no par value, unlimited shares authorized							$10.02
Offering price per share							$10.02
Redemption proceeds per share							$10.02
Class A Shares:
Net asset value per share ($81,898,381 ÷ 8,268,384 shares outstanding), no par value, unlimited shares authorized							$9.91
Offering price per share (100/94.50 of $9.91)							$10.49
Redemption proceeds per share							$9.91
Class C Shares:
Net asset value per share ($52,545,540 ÷ 5,440,890 shares outstanding), no par value, unlimited shares authorized							$9.66
Offering price per share							$9.66
Redemption proceeds per share (99.00/100 of $9.66)							$9.56
Class K Shares:
Net asset value per share ($1,937,470 ÷ 195,533 shares outstanding), no par value, unlimited shares authorized							$9.91
Offering price per share							$9.91
Redemption proceeds per share							$9.91

See Notes which are an integral part of the Financial Statements

Statement of Operations

Year Ended July 31, 2009

Investment Income:
Dividends (including $47,296 received from an affilaited issuer (Note 5) and net of foreign taxes withheld of $1,097)			$	4,557,902
Expenses:
Investment adviser fee (Note 5)	$	1,731,691
Administrative personnel and services fee (Note 5)		270,000
Custodian fees		60,782
Transfer and dividend disbursing agent fees and expenses--Institutional Shares		95,460
Transfer and dividend disbursing agent fees and expenses--Class A Shares		245,696
Transfer and dividend disbursing agent fees and expenses--Class C Shares		177,128
Transfer and dividend disbursing agent fees and expenses--Class K Shares		5,804
Directors'/Trustees' fees		5,068
Auditing fees		22,500
Legal fees		4,425
Portfolio accounting fees		109,644
Distribution services fee--Class C Shares (Note 5)		451,006
Distribution services fee--Class K Shares (Note 5)		7,592
Shareholder services fee--Class A Shares (Note 5)		280,104
Shareholder services fee--Class C Shares (Note 5)		150,152
Account administration fee--Class A Shares		454
Account administration fee--Class C Shares		183
Share registration costs		66,147
Printing and postage		61,084
Insurance premiums		5,171
Interest expense		416
Miscellaneous		6,734
TOTAL EXPENSES		3,757,241

Statement of Operations - continued

Waivers and Reimbursements (Note 5):
Waiver/reimbursement of investment adviser fee	$	(171,862	)
Waiver of administrative personnel and services fee		(52,689	)
Reimbursement of transfer and dividend disbursing agent fees and expenses--Institutional Shares		(13,546	)
Reimbursement of transfer and dividend disbursing agent fees and expenses--Class A Shares		(53,854	)
Reimbursement of transfer and dividend disbursing agent fees and expenses--Class C Shares		(42,911	)
TOTAL WAIVERS AND REIMBURSEMENTS				$	(334,862	)
Net expenses							$	3,422,379
Net investment income								1,135,523
Realized and Unrealized Gain (Loss) on Investments:
Net realized loss on investments								(143,221,360	)
Net change in unrealized depreciation of investments								24,032,186
Net realized and unrealized loss on investments								(119,189,174	)
Change in net assets resulting from operations							$	(118,053,651	)

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

Year Ended July 31		2009			2008
Increase (Decrease) in Net Assets
Operations:
Net investment income	$	1,135,523		$	1,186,226
Net realized loss on investments		(143,221,360	)		(25,156,859	)
Net change in unrealized appreciation/depreciation of investments		24,032,186			(20,313,246	)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		(118,053,651	)		(44,283,879	)
Distributions to Shareholders:
Distributions from net investment income
Institutional Shares		(512,513	)		- --
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		(1,183,243	)		(29,006,992	)
Share Transactions:
Proceeds from sale of shares		69,074,805			148,687,842
Net asset value of shares issued to shareholders in payment of distributions declared		1,060,033			25,603,826
Cost of shares redeemed		(144,027,671	)		(113,566,093	)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		(73,892,833	)		60,725,575
Change in net assets		(193,129,727	)		(12,565,296	)
Net Assets:
Beginning of period		379,542,186			392,107,482
End of period (including undistributed net investment income of $1,134,449 and $1,186,226, respectively)	$	186,412,459		$	379,542,186

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

July 31, 2009

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, 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 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

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 Interpretation No. 48, "Accounting for Uncertainty in Income Taxes." As of and during the year ended July 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 July 31, 2009, tax years 2006 through 2009 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:

Year Ended July 31	2009					2008
Institutional Shares:	Shares			Amount		Shares			Amount
Shares sold	2,232,749		$	20,668,288		2,316,132		$	37,878,322
Shares issued to shareholders in payment of distributions declared	45,422			417,427		306,108			5,075,279
Shares redeemed	(3,379,111	)		(32,553,562	)	(1,569,357	)		(25,328,179	)
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS	(1,100,940	)	$	(11,467,847	)	1,052,883		$	17,625,422

Year Ended July 31	2009					2008
Class A Shares:	Shares			Amount		Shares			Amount
Shares sold	3,576,090		$	35,336,951		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	(9,247,124	)		(84,976,792	)	(3,920,927	)		(61,812,706	)
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS	(5,601,142	)	$	(49,003,124	)	1,807,699		$	30,049,036

Year Ended July 31	2009					2008
Class C Shares:	Shares			Amount		Shares			Amount
Shares sold	1,152,913		$	10,952,306		1,978,773		$	31,441,573
Shares issued to shareholders in payment of distributions declared	--			--		391,649			6,309,458
Shares redeemed	(2,748,508	)		(25,404,032	)	(1,692,463	)		(26,152,035	)
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS	(1,595,595	)	$	(14,451,726	)	677,959		$	11,598,996

Year Ended July 31	2009					2008
Class K Shares:	Shares			Amount		Shares			Amount
Shares sold	219,186		$	2,117,260		106,180		$	1,692,571
Shares issued to shareholders in payment of distributions declared	644			5,889		1,982			32,723
Shares redeemed	(123,095	)		(1,093,285	)	(17,383	)		(273,173	)
NET CHANGE RESULTING FROM CLASS K SHARE TRANSACTIONS	96,735		$	1,029,864		90,779		$	1,452,121
NET CHANGE RESULTING FROM FUND SHARE TRANSACTIONS	(8,200,942	)	$	(73,892,833	)	3,629,320		$	60,725,575

4. FEDERAL TAX INFORMATION

The timing and character of income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are due to differing treatments for a litigation payment and distributions.

For the year ended July 31, 2009, permanent differences identified and reclassified among the components of net assets were as follows:

Increase (Decrease)
Paid-In Capital	Undistributed Net Investment Income (Loss)	Accumulated Net Realized Gain (Loss)
$(1,456)	$(4,057)	$5,513

Net investment income (loss), net realized gains (losses) and net assets were not affected by this reclassification.

The tax character of distributions as reported on the Statement of Changes in Net Assets for the years ended July 31, 2009 and 2008 was as follows:

	2009	2008
Ordinary income¹	$1,183,243	$21,537,947
Long-term capital gains	$ --	$ 7,469,045

1 For tax purposes, short-term capital gain distributions are considered ordinary income distributions.

As of July 31, 2009, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income	$	1,134,449
Net unrealized appreciation	$	8,321,692
Capital loss carryforwards and deferrals	$	(166,291,618	)

The difference between book-basis and tax-basis net unrealized appreciation/depreciation is attributable to differing treatments for the deferral of losses on wash sales.

At July 31, 2009, the cost of investments for federal tax purposes was $177,609,817. The net unrealized appreciation of investments for federal tax purposes was $8,321,692. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $13,167,671 and net unrealized depreciation from investments for those securities having an excess of cost over value of $4,845,979.

At July 31, 2009, the Fund had a capital loss carryforward of $79,106,604 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
2016		$ 3,647,165
2017		$75,459,439

Under current tax regulations, capital losses on securities transactions realized after October 31 may be deferred and treated as occurring on the first day of the following fiscal year. As of July 31, 2009, for federal income tax purposes, post October losses of $87,185,014 were deferred to August 1, 2009.

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 additional portion of its fee. The Adviser can modify or terminate this voluntary waiver at any time at its sole discretion. For the year ended July 31, 2009, the Adviser waived $169,537 of its fee. In addition, for the year ended July 31, 2009, an affiliate of the Adviser reimbursed $110,311 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 year ended July 31, 2009, the net fee paid to FAS was 0.094% of average daily net assets of the Fund. FAS waived $52,689 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 year ended July 31, 2009, FSC retained $77,563 of fees paid by the Fund. For the year ended July 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 and contingent deferred sales charges (CDSC) do not represent expenses of the Fund. They are deducted from the proceeds of sales of Fund shares prior to investment or from redemption proceeds prior to remittance, as applicable. For the year ended July 31, 2009, FSC retained $14,892 in sales charges from the sale of Class A Shares. FSC also retained $8,490 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 year ended July 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 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 1.02%, 1.30%, 2.09% and 1.76%, respectively, for the fiscal year ending July 31, 2010. Although these actions are voluntary, the Adviser and its affiliates have agreed to continue these waivers and/or reimbursements at least through September 30, 2010.

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 year ended July 31, 2009, the Adviser reimbursed $2,325. Transactions with the affiliated company during the year ended July 31, 2009 were as follows:

Affiliate		Balance of Shares Held 7/31/2008		Purchases/ Additions		Sales/ Reductions		Balance of Shares Held 7/31/2009		Value		Dividend Income
Prime Value Obligations Fund, Institutional Shares		1,891,293		64,988,742		64,353,213		2,526,822		$2,526,822		$47,296

6. INVESTMENT TRANSACTIONS

Purchases and sales of investments, excluding long-term U.S. government securities and short-term obligations, for the year ended July 31, 2009, were as follows:

Purchases		$	679,541,445
Sales		$	752,899,505

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 offered to the Fund by PNC Bank at the time of the borrowing. As of July 31, 2009, there were no outstanding loans. During the year ended July 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 July 31, 2009, there were no outstanding loans. During the year ended July 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. SUBSEQUENT EVENTS

Management has evaluated subsequent events through September 21, 2009 and determined that no events have occurred that require disclosure.

11. FEDERAL TAX INFORMATION (UNAUDITED)

For the fiscal year ended July 31, 2009, 100% of total income (including short-term capital gain) distributions made by the Fund are qualifying dividends which may be subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth Tax Relief Act of 2003. Complete information is reported in conjunction with the reporting of your distributions on Form 1099-DIV.

Of the ordinary income (including short-term capital gain) distributions made by the Fund during the year ended July 31, 2009, 100% qualify for the dividend received deduction available to corporate shareholders.

Report of Independent Registered Public Accounting Firm

TO THE BOARD OF TRUSTEES OF FEDERATED MDT SERIES AND
SHAREHOLDERS OF FEDERATED MDT ALL CAP CORE FUND:

We have audited the accompanying statement of assets and liabilities of Federated MDT All Cap Core Fund (the "Fund") (one of the portfolios constituting Federated MDT Series), including the portfolio of investments, as of July 31, 2009, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods indicated therein. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The financial highlights for the year in the period ended July 31, 2005 were audited by another independent registered public accounting firm whose report, dated September 19, 2005 expressed an unqualified opinion on those financial highlights.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Fund's internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of July 31, 2009, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Federated MDT All Cap Core Fund, a portfolio of Federated MDT Series, at July 31, 2009, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the periods indicated therein for the years ended July 31, 2009, 2008, 2007 and 2006, in conformity with U.S. generally accepted accounting principles.

Ernst & Young LLP

Boston, Massachusetts
September 21, 2009

Board of Trustees and Trust Officers

The Board is responsible for managing the Trust's business affairs and for exercising all the Trust's powers except those reserved for the shareholders. The following tables give information about each Board member and the senior officers of the Fund. Where required, the tables separately list Board members who are "interested persons" of the Fund (i.e., "Interested" Board members) and those who are not (i.e., "Independent" Board members). Unless otherwise noted, the address of each person listed is Federated Investors Tower, 1001 Liberty Avenue, Pittsburgh, PA 15222. The address of all Independent Board members listed is 4000 Ericsson Drive, Warrendale, PA 15086-7561; Attention: Mutual Fund Board. As of December 31, 2008, the Trust comprised nine portfolios, and the Federated Fund Complex consisted of 40 investment companies (comprising 148 portfolios). Unless otherwise noted, each Officer is elected annually. Unless otherwise noted, each Board member oversees all portfolios in the Federated Fund Complex and serves for an indefinite term. The Fund's Statement of Additional Information includes additional information about Trust Trustees and is available, without charge and upon request, by calling 1-800-341-7400.

INTERESTED TRUSTEES BACKGROUND


Name Birth Date Positions Held with Trust Date Service Began		Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s)
John F. Donahue* Birth Date: July 28, 1924 TRUSTEE Began serving: August 2006		Principal Occupations: Director or Trustee of the Federated Fund Complex; Chairman and Director, Federated Investors, Inc.; Chairman of the Federated Fund Complex's Executive Committee. Previous Positions: Chairman of the Federated Fund Complex; Trustee, Federated Investment Management Company; Chairman and Director, Federated Investment Counseling.

J. Christopher Donahue* Birth Date: April 11, 1949 PRESIDENT AND TRUSTEE Began serving: August 2006		Principal Occupations: Principal Executive Officer and President of the Federated Fund Complex; Director or Trustee of some of the Funds in the Federated Fund Complex; President, Chief Executive Officer and Director, Federated Investors, Inc.; Chairman and Trustee, Federated Investment Management Company; Trustee, Federated Investment Counseling; Chairman and Director, Federated Global Investment Management Corp.; Chairman, Federated Equity Management Company of Pennsylvania and Passport Research, Ltd. (investment advisory subsidiary of Federated); Trustee, Federated Shareholder Services Company; Director, Federated Services Company. Previous Positions: President, Federated Investment Counseling; President and Chief Executive Officer, Federated Investment Management Company, Federated Global Investment Management Corp. and Passport Research, Ltd.

* Family relationships and reasons for "interested" status: John F. Donahue is the father of J. Christopher Donahue; both are "interested" due to their beneficial ownership of shares of Federated Investors, Inc. and the positions they hold with Federated and its subsidiaries.

INDEPENDENT TRUSTEES BACKGROUND


Name Birth Date Positions Held with Trust Date Service Began		Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s)
John T. Conroy, Jr. Birth Date: June 23, 1937 TRUSTEE Began serving: August 2006		Principal Occupations: Director or Trustee of the Federated Fund Complex; Chairman of the Board, Investment Properties Corporation; Partner or Trustee in private real estate ventures in Southwest Florida; Assistant Professor of Theology, Blessed Edmund Rice School for Pastoral Ministry. Previous Positions: President, Investment Properties Corporation; Senior Vice President, John R. Wood and Associates, Inc., Realtors; President, Naples Property Management, Inc. and Northgate Village Development Corporation.

Nicholas P. Constantakis Birth Date: September 3, 1939 TRUSTEE Began serving: August 2006		Principal Occupation: Director or Trustee of the Federated Fund Complex. Other Directorships Held: Director and Chairman of the Audit Committee, Michael Baker Corporation (engineering and energy services worldwide). Previous Position: Partner, Andersen Worldwide SC.

John F. Cunningham Birth Date: March 5, 1943 TRUSTEE Began serving: August 2006		Principal Occupation: Director or Trustee of the Federated Fund Complex. Other Directorships Held: Chairman, President and Chief Executive Officer, Cunningham & Co., Inc. (strategic business consulting); Trustee Associate, Boston College. Previous Positions: Director, QSGI, Inc. (technology services company); Director, Redgate Communications and EMC Corporation (computer storage systems); Chairman of the Board and Chief Executive Officer, Computer Consoles, Inc.; President and Chief Operating Officer, Wang Laboratories; Director, First National Bank of Boston; Director, Apollo Computer, Inc.

Maureen Lally-Green Birth Date: July 5, 1949 TRUSTEE Began serving: August 2009		Principal Occupations: Director or Trustee of the Federated Fund Complex; Director, Office of Church Relations, Diocese of Pittsburgh; Adjunct Professor of Law, Duquesne University School of Law. Other Directorships Held: Director, Auberle; Trustee, St. Francis University; Director, Ireland Institute of Pittsburgh; Director, UPMC Mercy Hospital; Regent, St. Vincent Seminary; Director, Epilepsy Foundation of Western and Central Pennsylvania; Director, Saint Thomas More Society, Allegheny County. Previous Position: Pennsylvania Superior Court Judge.


Name Birth Date Positions Held with Trust Date Service Began		Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s)
Peter E. Madden Birth Date: March 16, 1942 TRUSTEE Began serving: August 2006		Principal Occupations: Director or Trustee, and Chairman of the Board of Directors or Trustees of the Federated Fund Complex. Other Directorships Held: Board of Overseers, Babson College. Previous Positions: Representative, Commonwealth of Massachusetts General Court; President, State Street Bank and Trust Company and State Street Corporation (retired); Director, VISA USA and VISA International; Chairman and Director, Massachusetts Bankers Association; Director, Depository Trust Corporation; Director, The Boston Stock Exchange.

Charles F. Mansfield, Jr. Birth Date: April 10, 1945 TRUSTEE Began serving: August 2006		Principal Occupations: Director or Trustee of the Federated Fund Complex; Chairman of the Audit Committee of the Federated Fund Board of Directors or Trustees; Management Consultant. Previous Positions: Chief Executive Officer, PBTC International Bank; Partner, Arthur Young & Company (now Ernst & Young LLP); Chief Financial Officer of Retail Banking Sector, Chase Manhattan Bank; Senior Vice President, HSBC Bank USA (formerly, Marine Midland Bank); Vice President, Citibank; Assistant Professor of Banking and Finance, Frank G. Zarb School of Business, Hofstra University; Executive Vice President DVC Group, Inc. (marketing, communications and technology).

R. James Nicholson Birth Date: February 4, 1938 TRUSTEE Began serving: January 2008		Principal Occupations: Director or Trustee of the Federated Fund Complex; Senior Counsel, Brownstein Hyatt Farber Schrek, P.C.; Former Secretary of the U.S. Dept. of Veterans Affairs; Former U.S. Ambassador to the Holy See; Former Chairman of the Republican National Committee. Other Directorships Held: Director, Horatio Alger Association; Director, The Daniels Fund. Previous Positions: Colonel, U.S. Army Reserve; Partner, Calkins, Kramer, Grimshaw and Harring, P.C.; General Counsel, Colorado Association of Housing and Building; Chairman and CEO, Nicholson Enterprises, Inc. (real estate holding company); Chairman and CEO, Renaissance Homes of Colorado.


Name Birth Date Positions Held with Trust Date Service Began		Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s)
Thomas M. O'Neill Birth Date: June 14, 1951 TRUSTEE Began serving: October 2006		Principal Occupations: Director or Trustee of the Federated Fund Complex; Managing Director and Partner, Navigator Management Company, L.P. (investment and strategic consulting). Other Directorships Held: Board of Overseers, Children's Hospital of Boston; Visiting Committee on Athletics, Harvard College. Previous Positions: Chief Executive Officer and President, Managing Director and Chief Investment Officer, Fleet Investment Advisors; President and Chief Executive Officer, Aeltus Investment Management, Inc.; General Partner, Hellman, Jordan Management Co., Boston, MA; Chief Investment Officer, The Putnam Companies, Boston, MA; Credit Analyst and Lending Officer, Fleet Bank; Director and Consultant, EZE Castle Software (investment order management software); Director, Midway Pacific (lumber).

John S. Walsh Birth Date: November 28, 1957 TRUSTEE Began serving: August 2006		Principal Occupations: Director or Trustee of the Federated Fund Complex; President and Director, Heat Wagon, Inc. (manufacturer of construction temporary heaters); President and Director, Manufacturers Products, Inc. (distributor of portable construction heaters); President, Portable Heater Parts, a division of Manufacturers Products, Inc. Previous Position: Vice President, Walsh & Kelly, Inc.

James F. Will Birth Date: October 12, 1938 TRUSTEE Began serving: August 2006		Principal Occupations: Director or Trustee of the Federated Fund Complex; formerly, Vice Chancellor and President, Saint Vincent College. Other Directorships Held: Trustee, Saint Vincent College; Alleghany Corporation. Previous Positions: Chairman, President and Chief Executive Officer, Armco, Inc.; President and Chief Executive Officer, Cyclops Industries; President and Chief Operating Officer, Kaiser Steel Corporation.

OFFICERS


Name Birth Date Positions Held with Trust Date Service Began		Principal Occupation(s) for Past Five Years and Previous Position(s)
John W. McGonigle Birth Date: October 26, 1938 SECRETARY Began serving: August 2006		Principal Occupations: Executive Vice President and Secretary of the Federated Fund Complex; Vice Chairman, Executive Vice President, Secretary and Director, Federated Investors, Inc. Previous Positions: Trustee, Federated Investment Management Company and Federated Investment Counseling; Director, Federated Global Investment Management Corp., Federated Services Company and Federated Securities Corp.

Richard A. Novak Birth Date: December 25, 1963 TREASURER Began serving: August 2006		Principal Occupations: Principal Financial Officer and Treasurer of the Federated Fund Complex; Senior Vice President, Federated Administrative Services; Financial and Operations Principal for Federated Securities Corp., Edgewood Services, Inc. and Southpointe Distribution Services, Inc. Previous Positions: Controller of Federated Investors, Inc.; Vice President, Finance of Federated Services Company; held various financial management positions within The Mercy Hospital of Pittsburgh; Auditor, Arthur Andersen & Co.

Brian P. Bouda Birth Date: February 28, 1947 SENIOR VICE PRESIDENT AND CHIEF COMPLIANCE OFFICER Began serving: August 2006		Principal Occupations: Senior Vice President and Chief Compliance Officer of the Federated Fund Complex; Vice President and Chief Compliance Officer of Federated Investors, Inc. and Chief Compliance Officer of its subsidiaries. Mr. Bouda joined Federated in 1999 and is a member of the American Bar Association and the State Bar Association of Wisconsin.

Evaluation and Approval of Advisory Contract - May 2009

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

The Fund's Board reviewed the Fund's investment advisory contract at meetings held in May 2009. 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 it is believed that 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; different portfolio management techniques made necessary by different cash flows; and portfolio manager time spent in review of securities pricing. The Senior Officer did not consider these fee schedules to be determinative in judging 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.

The Fund's performance fell below the median of the relevant peer group for the one-year, three-year and five-year periods covered by the report. In addition, the Board was informed by the Adviser that, for the same periods, the Fund underperformed its benchmark index for the one-year period, underperformed its benchmark index for the three-year period and underperformed its benchmark index for the five-year period. The Board discussed the Fund's performance with the Adviser and recognized the efforts being undertaken by the Adviser. The Board will continue to monitor these efforts and the performance of the Fund.

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. Moreover, the Board receives regular reports regarding the institution or elimination of these voluntary waivers.

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 period covered by the report, 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 many shareholders have invested in the Fund on the strength of the Adviser's industry standing and reputation and with the expectation that the Adviser will have a continuing role in providing advisory services to the Fund. Thus, the Board's approval of the 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.

Federated
World-Class Investment Manager

Federated MDT All CapCore Fund
Federated Investors Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
Contact us at FederatedInvestors.com
or call 1-800-341-7400.

Federated Securities Corp., Distributor

Cusip 31421R106
Cusip 31421R205
Cusip 31421R304

37309 (9/09)

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

ANNUAL SHAREHOLDER REPORT

July 31, 2009

Institutional Shares

Not FDIC Insured * May Lose Value * No Bank Guarantee

Financial Highlights

(For a Share Outstanding Throughout Each Period)

Year Ended July 31	2009		2008		2007	¹	2006	²	2005
Net Asset Value, Beginning of Period	$14.22		$16.88		$15.17		$15.32		$13.55
Income From Investment Operations:
Net investment income	0.09	³	0.10		0.07	³	0.05	³	0.03	³
Net realized and unrealized gain (loss) on investments	(4.20	)	(1.57	)	2.18		0.70		2.87
TOTAL FROM INVESTMENT OPERATIONS	(4.11	)	(1.47	)	2.25		0.75		2.90
Less Distributions:
Distributions from net investment income	(0.09	)	- --		- --		(0.02	)	(0.05	)
Distributions from net realized gain on investments	- --		(1.19	)	(0.54	)	(0.88	)	(1.08	)
TOTAL DISTRIBUTIONS	(0.09	)	(1.19	)	(0.54	)	(0.90	)	(1.13	)
Net Asset Value, End of Period	$10.02		$14.22		$16.88		$15.17		$15.32
Total Return⁴	(28.84	)%	(9.71	)%	14.92	%	4.85	%	22.14	%

Ratios to Average Net Assets:
Net expenses	1.06	%	1.01	%	1.07	%	1.25	%	1.25	%
Net investment income	0.90	%	0.72	%	0.40	%	0.28	%	0.23	%
Expense waiver/reimbursement⁵	0.12	%	0.00	%⁶	0.01	%	0.05	%	0.04	%
Supplemental Data:
Net assets, end of period (000 omitted)	$50,031		$86,681		$85,128		$42,656		$43,782
Portfolio turnover	290	%	199	%	225	%	212	%	204	%

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 year was 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.

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

6 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 February 1, 2009 to July 31, 2009.

ACTUAL EXPENSES

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

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 2/1/2009	Ending Account Value 7/31/2009	Expenses Paid During Period¹
Actual	$1,000	$1,166.50	$5.69
Hypothetical (assuming a 5% return before expenses)	$1,000	$1,019.54	$5.31

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 181/365 (to reflect the one-half-year period).

Management's Discussion of Fund Performance (unaudited)

The fund's total return for the fiscal year ended July 31, 2009 was -28.84%. The total returns of the Russell 3000® Index (Russell 3000®)¹ and the Lipper Multi-Cap Core Funds Index,² respectively, were -20.21% and -19.00% for the same period. The Fund's total return for the fiscal year reflected taxes, sales charges, expenses or other fees which were not reflected in the total return of the Russell Index.

2 Lipper Indices are equally weighted indices of the largest mutual funds within their respective investment objectives. Returns are adjusted for the reinvestment of capital gains distributions and income dividends.

MARKET OVERVIEW

3 Russell Top 2000® Index measures the performance of the 200 largest companies in the Russell 1000 Index, which represents approximately 69% of the total market capitalization of the Russell 1000 Index. The index is unmanaged and investments cannot be made directly in an index.

4 The Russell 2000® Index measures the performance of the 22,000 smallest companies in the Russell 3000 Index, which represents approximately 10% of the total market capitalization of the Russell 3000 Index. The index is unmanaged and investments cannot be made directly in an index.

FUND PERFORMANCE

GROWTH OF A $10,000 INVESTMENT - INSTITUTIONAL SHARES

The graph below illustrates the hypothetical investment of $10,000¹ in the Federated MDT All Cap Core Fund²(Institutional Shares) (the "Fund") from October 1, 2002 (start of performance) to July 31, 2009, compared to the Russell 3000^® Index (Russell 3000^® )³ and the Lipper Multi-Cap Core Funds Index.⁴

Average Annual Total Returns for the Period Ended 7/31/2009
1 Year		- -28.84%
5 Years		- -1.11%
Start of Performance (10/1/2002)		4.05%

3 The Russell 3000^® is not adjusted to reflect sales charges, expenses or other fees that the Securities and Exchange Commission requires to be reflected in the Fund's performance. The index is unmanaged and, unlike the Fund, is not affected by cash flows. It is not possible to invest directly in an index.

Portfolio of Investments Summary Table (unaudited)

At July 31, 2009, the Fund's industry composition¹was as follows:

Industry Composition		Percentage of Total Net Assets
Integrated International Oil		9.8%
Biotechnology		7.1%
Property Liability Insurance		6.8%
Crude Oil & Gas Production		5.1%
Electric Utility		5.1%
Computers - High End		4.9%
Securities Brokerage		4.7%
Undesignated Consumer Cyclicals		4.7%
Services to Medical Professionals		3.9%
Integrated Domestic Oil		3.7%
AT&T Divestiture		3.1%
Software Packaged/Custom		2.9%
Multi-Line Insurance		2.8%
Defense Aerospace		2.5%
Railroad		2.3%
Multi-Industry Capital Goods		2.2%
Diversified Tobacco		1.8%
Internet Services		1.8%

Industry Composition		Percentage of Total Net Assets
Life Insurance		1.7%
Cable TV		1.6%
Ethical Drugs		1.6%
Home Building		1.6%
Defense Electronics		1.1%
Gas Distributor		1.1%
Regional Bank		1.1%
Grocery Chain		1.0%
Tobacco		1.0%
Other²		11.4%
Cash Equivalents³		1.3%
Other Assets and Liabilities - Net⁴		0.3%
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

July 31, 2009

Shares					Value
			COMMON STOCKS--98.4%
			Advertising--0.0%
	1,600		Omnicom Group, Inc.	$	54,400
			Agricultural Chemicals--0.2%
	7,200		FMC Corp.		350,208
			AT&T Divestiture--3.1%
	217,300		AT&T, Inc.		5,699,779
			Auto Original Equipment Manufacturers--0.2%
	2,000	¹	AutoZone, Inc.		307,140
			Biotechnology--7.1%
	96,700	¹	Amgen, Inc.		6,025,377
	14,600	¹	Biogen Idec, Inc.		694,230
	7,200	¹	Cephalon, Inc.		422,280
	3,400	¹	Charles River Laboratories International, Inc.		112,438
	123,400	¹	Gilead Sciences, Inc.		6,037,962
			TOTAL		13,292,287
			Cable TV--1.6%
	7,300		Comcast Corp., Class A		108,478
	2,800	¹	Discovery Communications, Inc.		68,600
	13,100		Time Warner Cable, Inc.		433,086
	57,200		Time Warner, Inc.		1,524,952
	38,400	¹	Viacom, Inc., Class B		889,344
			TOTAL		3,024,460
			Cellular Communications--0.0%
	2,100	¹	NII Holdings, Inc.		48,342
			Clothing Stores--0.5%
	13,600	¹	Children's Place Retail Stores, Inc.		445,672
	13,600	¹	Jos A. Bank Clothiers, Inc.		497,624
	4,600		Limited Brands, Inc.		59,524
			TOTAL		1,002,820
			Cogeneration--0.6%
	60,000	¹	Mirant Corp.		1,083,600
			Computer Networking--0.0%
	1,400		Black Box Corp.		38,458
Shares					Value
			COMMON STOCKS--continued
			Computer Peripherals--0.6%
	33,300	¹	Lexmark International Group, Class A	$	482,184
	4,200	¹	Sandisk Corp.		74,844
	19,100	¹	Synaptics, Inc.		457,827
	2,800		Western Union Co.		48,944
			TOTAL		1,063,799
			Computer Services--0.2%
	4,300	¹	Affiliated Computer Services, Inc., Class A		203,863
	7,500	¹	Synnex Corp.		213,150
			TOTAL		417,013
			Computer Stores--0.2%
	20,000	¹	GameStop Corp.		437,800
			Computers - High End--4.9%
	77,300		IBM Corp.		9,115,989
			Computers - Low End--0.7%
	101,400	¹	Dell, Inc.		1,356,732
			Contracting--0.1%
	5,100	¹	IHS, Inc., Class A		254,694
			Crude Oil & Gas Production--5.1%
	63,400		Apache Corp.		5,322,430
	5,100		Chesapeake Energy Corp.		109,344
	19,500		Cimarex Energy Co.		697,710
	40,800	¹	Newfield Exploration Co.		1,604,664
	56,500		Pioneer Natural Resources, Inc.		1,613,075
	7,200	¹	Stone Energy Corp.		78,192
	8,600	¹	Tetra Technologies, Inc.		66,306
			TOTAL		9,491,721
			Defense Aerospace--2.5%
	1,400	¹	Alliant Techsystems, Inc.		110,208
	60,100		Boeing Co.		2,578,891
	13,200		Goodrich (B.F.) Co.		677,952
	9,700		Lockheed Martin Corp.		725,172
	14,100	¹	TransDigm Group, Inc.		539,889
			TOTAL		4,632,112
Shares					Value
			COMMON STOCKS--continued
			Defense Electronics--1.1%
	1,200		Grainger (W.W.), Inc.	$	107,892
	12,100		L-3 Communications Holdings, Inc.		913,550
	12,500		Northrop Grumman Corp.		557,250
	8,600		Raytheon Co.		403,770
			TOTAL		1,982,462
			Diversified Leisure--0.0%
	100	¹	Gaylord Entertainment Co.		1,427
			Diversified Tobacco--1.8%
	126,200		Altria Group, Inc.		2,212,286
	1,500	¹	Lorillard, Inc.		110,580
	24,100		Reynolds American, Inc.		1,048,591
			TOTAL		3,371,457
			Electric Utility--5.1%
	38,100		Ameren Corp.		968,883
	48,500		CMS Energy Corp.		627,590
	6,100		CenterPoint Energy, Inc.		73,505
	4,000		DPL, Inc.		95,800
	20,000		DTE Energy Co.		689,200
	16,300		Dominion Resources, Inc.		550,940
	17,300		Duke Energy Corp.		267,804
	22,300		Edison International		720,736
	5,800		Entergy Corp.		465,914
	2,400		ITC Holdings Corp.		114,480
	10,100		Idacorp, Inc.		279,972
	6,700		NiSource, Inc.		86,363
	8,600		OGE Energy Corp.		258,860
	5,900		PPL Corp.		199,361
	6,200		Pinnacle West Capital Corp.		198,152
	36,900		Public Service Enterprises Group, Inc.		1,197,405
	48,000		Sempra Energy		2,516,640
	7,400		UniSource Energy Corp.		204,240
			TOTAL		9,515,845
			Electronic & Electrical Original Equipment Manufacturers--0.3%
	26,000		Molex, Inc.		461,760
Shares					Value
			COMMON STOCKS--continued
			Electronic Instruments--0.0%
	2,600		Garmin Ltd.	$	71,916
			Ethical Drugs--1.6%
	128,200		Bristol-Myers Squibb Co.		2,787,068
	7,400	¹	Valeant Pharmaceuticals International		190,920
			TOTAL		2,977,988
			Financial Services--0.3%
	1,200		Blackrock, Inc.		228,648
	3,500		Equifax, Inc.		91,175
	4,900	¹	MSCI, Inc., Class A		136,955
	1,800		Moody's Corp.		42,732
			TOTAL		499,510
			Furniture--0.1%
	9,700		Leggett and Platt, Inc.		168,295
			Gas Distributor--1.1%
	4,900		AGL Resources, Inc.		164,738
	23,100		Energen Corp.		954,492
	4,100		ONEOK, Inc.		135,710
	43,800	¹	Southern Union Co.		848,844
			TOTAL		2,103,784
			Generic Drugs--0.9%
	123,700	¹	Mylan Laboratories, Inc.		1,631,603
			Grocery Chain--1.0%
	43,800		Kroger Co.		936,444
	53,200		Safeway, Inc.		1,007,076
			TOTAL		1,943,520
			Home Building--1.6%
	69,000		Lennar Corp., Class A		816,960
	111,400	¹	Toll Brothers, Inc.		2,178,984
			TOTAL		2,995,944
			Home Health Care--0.5%
	14,800	¹	Amerigroup Corp.		365,264
	4,000	¹	Gentiva Health Services, Inc.		85,120
	11,200	¹	LHC Group, Inc.		328,720
	3,200	¹	Lincare Holdings, Inc.		83,776
			TOTAL		862,880
Shares					Value
			COMMON STOCKS--continued
			Home Products--0.0%
	800		Church and Dwight, Inc.	$	47,184
			Hotels--0.0%
	4,400		Wyndham Worldwide Corp.		61,380
			Household Appliances--0.1%
	1,700		Whirlpool Corp.		97,053
			Industrial Machinery--0.2%
	19,000	¹	Terex Corp.		288,420
			Insurance Brokerage--0.2%
	4,000		Aspen Insurance Holdings Ltd.		99,480
	8,100		Axis Capital Holdings Ltd.		230,526
	1,400		Endurance Specialty Holdings Ltd.		46,718
			TOTAL		376,724
			Integrated Domestic Oil--3.7%
	157,800		ConocoPhillips		6,897,438
			Integrated International Oil--9.8%
	134,400		Chevron Corp.		9,336,768
	126,100		Exxon Mobil Corp.		8,876,179
			TOTAL		18,212,947
			Internet Services--1.8%
	11,300	¹	Amazon.com, Inc.		969,088
	49,200	¹	NetFlix, Inc.		2,161,848
	2,000	¹	Priceline.com, Inc.		259,240
			TOTAL		3,390,176
			Life Insurance--1.7%
	1,800		StanCorp Financial Group, Inc.		61,956
	77,400		Torchmark Corp.		3,023,244
			TOTAL		3,085,200
			Long-Term Care Centers--0.1%
	9,600	¹	Kindred Healthcare, Inc.		134,784
			Maritime--0.2%
	9,300		Overseas Shipholding Group, Inc.		319,455
			Medical Supplies--0.9%
	14,500	¹	American Medical Systems Holdings, Inc.		221,705
	28,600		McKesson HBOC, Inc.		1,462,890
			TOTAL		1,684,595
Shares					Value
			COMMON STOCKS--continued
			Medical Technology--0.4%
	2,800	¹	Gen-Probe, Inc.	$	103,936
	12,100	¹	Zimmer Holdings, Inc.		563,860
			TOTAL		667,796
			Metal Containers--0.1%
	4,400		Ball Corp.		212,784
			Metal Fabrication--0.0%
	1,300	¹	RTI International Metals		23,088
			Miscellaneous Communications--0.2%
	13,500	¹	Leap Wireless International, Inc.		323,325
			Miscellaneous Components--0.2%
	5,500	¹	International Rectifier Corp.		91,080
	17,100	¹	Qlogic Corp.		223,155
			TOTAL		314,235
			Miscellaneous Machinery--0.1%
	4,700		SPX Corp.		248,254
			Mortgage and Title--0.0%
	18,600		Radian Group, Inc.		61,938
			Multi-Industry Capital Goods--2.2%
	49,800		KBR, Inc.		1,055,262
	56,700		United Technologies Corp.		3,088,449
			TOTAL		4,143,711
			Multi-Line Insurance--2.8%
	31,300		AON Corp.		1,234,785
	22,700		CIGNA Corp.		644,680
	4,200	¹	CNA Financial Corp.		71,610
	3,500		Harleysville Group, Inc.		108,570
	2,800		Infinity Property & Casualty		116,312
	12,000		Montpelier Re Holdings Ltd.		188,160
	600	¹	Navigators Group, Inc.		29,586
	133,400		UNUM Group		2,503,918
	13,000		Zenith National Insurance Corp.		310,310
			TOTAL		5,207,931
			Mutual Fund Adviser--0.1%
	2,900	¹	Affiliated Managers Group		191,458
			Office Equipment--0.1%
	12,200		Pitney Bowes, Inc.		251,930
Shares					Value
			COMMON STOCKS--continued
			Oil Service, Explore & Drill--0.2%
	10,500	¹	Global Industries Ltd.	$	71,715
	4,300	¹	Seacor Holdings, Inc.		341,764
			TOTAL		413,479
			Oil Well Supply--0.1%
	4,000	¹	Dresser-Rand Group, Inc.		116,440
			Optical Reading Equipment--0.1%
	5,700	¹	Zebra Technologies Corp., Class A		139,308
			Outpatient Clinics--0.0%
	1,400	¹	DaVita, Inc.		69,580
			Packaged Foods--0.5%
	11,100		Campbell Soup Co.		344,433
	20,100		Kraft Foods, Inc., Class A		569,634
			TOTAL		914,067
			Paint & Related Materials--0.0%
	3,200		Fuller (H.B.) Co.		64,512
			Paper Products--0.1%
	2,700		Clearwater Paper Corp.		108,189
	5,400		Glatfelter (P.H.) Co.		55,890
			TOTAL		164,079
			Personal Loans--0.1%
	6,800	¹	World Acceptance Corp.		161,296
			Personnel Agency--0.2%
	6,000	¹	Hewitt Associates, Inc.		179,580
	2,500		Maximus, Inc.		106,550
			TOTAL		286,130
			Plastic Containers--0.3%
	15,200	¹	Owens-Illinois, Inc.		515,888
			Pollution Control--0.0%
	1,400	¹	Stericycle, Inc.		71,680
			Property Liability Insurance--6.8%
	22,700		Allied World Assurance Holdings Ltd.		986,542
	43,300		American Financial Group, Inc.		1,056,087
	5,600	¹	Arch Capital Group Ltd.		348,264
	36,400		Chubb Corp.		1,680,952
Shares					Value
			COMMON STOCKS--continued
			Property Liability Insurance--continued
	2,000		Everest Re Group Ltd.	$	160,440
	6,600		HCC Insurance Holdings, Inc.		165,660
	4,300		Platinum Underwriters Holdings Ltd.		145,125
	1,300	¹	ProAssurance Corp.		66,014
	6,000		RenaissanceRe Holdings Ltd.		301,500
	176,100		The Travelers Cos., Inc.		7,584,627
	4,800		Transatlantic Holdings, Inc.		227,088
			TOTAL		12,722,299
			Psychiatric Centers--0.1%
	2,600	¹	Magellan Health Services, Inc.		84,136
	1,200	¹	Psychiatric Solutions, Inc.		32,424
			TOTAL		116,560
			Railroad--2.3%
	47,500		CSX Corp.		1,905,700
	41,100		Union Pacific Corp.		2,364,072
			TOTAL		4,269,772
			Regional Bank--1.1%
	7,400		Central Pacific Financial Corp.		16,058
	78,000		Comerica, Inc.		1,859,520
	6,500		Oriental Financial Group		91,715
	9,400		Synovus Financial Corp.		32,994
	8,400	¹	TFS Financial Corp.		93,240
			TOTAL		2,093,527
			Restaurant--0.3%
	6,900	¹	Green Mountain Coffee, Inc.		486,036
			Roofing & Wallboard--0.0%
	800	¹	Beacon Roofing Supply, Inc.		13,416
			Securities Brokerage--4.7%
	52,900		Goldman Sachs Group, Inc.		8,638,570
	3,300	¹	TD Ameritrade Holding Corp.		61,182
			TOTAL		8,699,752
Shares					Value
			COMMON STOCKS--continued
			Semiconductor Distribution--0.0%
	3,800	¹	Tyler Technologies, Inc.	$	58,520
			Services to Medical Professionals--3.9%
	56,500	¹	Health Net, Inc.		764,445
	15,500	¹	Humana, Inc.		509,175
	46,900		Omnicare, Inc.		1,119,503
	1,600	¹	PharMerica Corp.		33,536
	4,700		Quest Diagnostics, Inc.		256,714
	79,100		UnitedHealth Group, Inc.		2,219,546
	44,600	¹	Wellpoint, Inc.		2,347,744
			TOTAL		7,250,663
			Shoes--0.1%
	7,300	¹	Genesco, Inc.		158,556
			Software Packaged/Custom--2.9%
	32,800		CA, Inc.		693,392
	13,800	¹	Computer Sciences Corp.		664,746
	18,700	¹	DST Systems, Inc.		828,971
	17,200	¹	Oracle Corp.		380,636
	8,100	¹	Quest Software, Inc.		119,394
	98,300	¹	Red Hat, Inc.		2,244,189
	10,200		Rovi Corp.		266,832
	14,600	¹	Symantec Corp.		217,978
	2,200	¹	Synopsys, Inc.		43,956
			TOTAL		5,460,094
			Specialty Retailing--0.7%
	44,700	¹	Big Lots, Inc.		1,029,888
	8,600	¹	Cabela's, Inc., Class A		139,406
	5,300	¹	Conn's, Inc.		66,833
	9,800	¹	Zale Corp.		58,016
			TOTAL		1,294,143
Shares					Value
			COMMON STOCKS--continued
			Stainless Steel Producer--0.1%
	6,800		Carpenter Technology Corp.	$	127,092
			Technology Services--0.0%
	1,800		Lender Processing Services		61,524
			Telecommunication Equipment & Services--0.1%
	10,100	¹	Amdocs Ltd.		241,592
			Telecommunications--0.1%
	18,800	¹	MetroPCS Communications, Inc.		222,780
			Tobacco--1.0%
	40,200		Philip Morris International, Inc.		1,873,320
			Undesignated Consumer Cyclicals--4.7%
	2,500	¹	Alliance Data Systems Corp.		127,500
	22,900	¹	Apollo Group, Inc., Class A		1,581,016
	700	¹	Capella Education Co.		45,052
	36,800	¹	Corinthian Colleges, Inc.		568,192
	8,100		DeVRY, Inc.		402,894
	8,600	¹	FTI Consulting, Inc.		468,098
	2,400		Herbalife Ltd.		82,584
	43,500	¹	ITT Educational Services, Inc.		4,234,725
	32,600	¹	Iron Mountain, Inc.		952,246
	600		Strayer Education, Inc.		127,428
	4,500	¹	TeleTech Holdings, Inc.		75,240
	1,800	¹	Weight Watchers International, Inc.		50,184
			TOTAL		8,715,159
			Undesignated Consumer Staples--0.0%
	4,800		Block (H&R), Inc.		80,112
			Undesignated Health--0.0%
	2,900	¹	HealthSouth Corp.		41,760
			TOTAL COMMON STOCKS (IDENTIFIED COST $172,566,699)		183,404,687
Shares					Value
			MUTUAL FUND--1.3%
	2,526,822	^2,3	Prime Value Obligations Fund, Institutional Shares, 0.51% (AT NET ASSET VALUE)	$	2,526,822
			TOTAL INVESTMENTS--99.7% (IDENTIFIED COST $175,093,521)⁴		185,931,509
			OTHER ASSETS AND LIABILITIES - NET--0.3%⁵		480,950
			TOTAL NET ASSETS--100%	$	186,412,459