United States
Securities and Exchange Commission
Washington, D.C. 20549
Form N-CSR
Certified Shareholder Report of Registered Management Investment Companies
811-3387
(Investment Company Act File Number)
Federated U.S. Government Securities Fund: 2-5 Years
______________________________________________________________
(Exact Name of Registrant as Specified in Charter)
Federated Investors Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
(Address of Principal Executive Offices)
(412) 288-1900
(Registrant's Telephone Number)
John W. McGonigle, Esquire
Federated Investors Tower
1001 Liberty Avenue
Pittsburgh, Pennsylvania 15222-3779
(Name and Address of Agent for Service)
(Notices should be sent to the Agent for Service)
Date of Fiscal Year End: 01/31/2013
Date of Reporting Period: Six months ended 07/31/2012
Item 1. Reports to Stockholders
![](https://capedge.com/proxy/N-CSRS/0001318148-12-001547/fedregcovsmall.jpg)
Share Class | Ticker |
R | FIGKX |
Institutional | FIGTX |
Service* | FIGIX |
Portfolio Composition | Percentage of Total Net Assets |
U.S. Treasury Securities | 74.7% |
U.S. Government Agency Securities | 23.4% |
Derivative Contracts2 | 0.1% |
Repurchase Agreement—Collateral3 | 13.2% |
Cash Equivalents4 | 1.6% |
Other Assets and Liabilities—Net5 | (13.0)% |
TOTAL | 100.0% |
Securities with an Effective Maturity of: | Percentage of Total Net Assets |
Less than 2 Years7 | 18.6% |
2-5 Years | 74.4% |
Greater than 5 Years | 5.1% |
Derivative Contracts2 | 0.1% |
Repurchase Agreement—Collateral3 | 13.2% |
Cash Equivalents4 | 1.6% |
Other Assets and Liabilities—Net5 | (13.0)% |
TOTAL | 100.0% |
1 | See the Fund's Prospectus and Statement of Additional Information for a description of the principal types of securities and derivative contracts in which the Fund invests. |
2 | Based upon net unrealized appreciation (depreciation) or value of the derivative contracts as applicable. Derivative Contracts may consist of futures, forwards, options and swaps. The impact of a derivative contract on the Fund's performance may be larger than its unrealized appreciation (depreciation) or value may indicate. In many cases, the notional value or amount of a derivative contract may provide a better indication of the contract's significance to the portfolio. More complete information regarding the Fund's direct investments in derivative contracts, including unrealized appreciation (depreciation), value and notional values or amounts of such contracts, can be found in the table at the end of the Portfolio of Investments included in this Report. |
3 | Repurchase Agreement purchased with cash collateral received in securities lending transactions, as well as cash held to cover payments on derivative contracts, when-issued and delayed delivery transactions. |
4 | Cash Equivalents include any instruments in money market mutual funds and/or overnight repurchase agreements (other than those representing Repurchase Agreement - Collateral). |
5 | Assets, other than investments in securities and derivative contracts, less liabilities. See Statement of Assets and Liabilities. |
6 | For callable investments, “effective maturity” is the unexpired period until the earliest date the investment is subject to prepayment or repurchase by the issuer (and market conditions indicate that the issuer will prepay or repurchase the investment). For all other investments “effective maturity” is the unexpired period until final maturity. |
7 | Does not include repurchase agreements purchased with collateral received in securities lending transactions or cash held to cover payments on derivative contracts and when-issued and delayed delivery transactions. |
Principal Amount | Value | ||
U.S. Treasury—74.7% | |||
U.S. Treasury Notes—74.7% | |||
$65,595,600 | U.S. Treasury Inflation-Protected Note, 0.125%, 4/15/2016 | $68,930,211 | |
95,000,000 | 0.375%, 3/15/2015 | 95,275,756 | |
37,000,000 | 1 | 0.375%, 6/15/2015 | 37,094,561 |
90,000,000 | 0.625%, 7/15/2014 | 90,686,655 | |
7,000,000 | 1.250%, 3/15/2014 | 7,115,931 | |
26,000,000 | 1.250%, 9/30/2015 | 26,760,906 | |
31,000,000 | 1.875%, 6/30/2015 | 32,427,677 | |
29,500,000 | 2.000%, 1/31/2016 | 31,188,185 | |
33,800,000 | 1 | 2.125%, 12/31/2015 | 35,830,640 |
10,000,000 | 2.375%, 8/31/2014 | 10,443,331 | |
39,900,000 | 2.625%, 12/31/2014 | 42,195,423 | |
30,000,000 | 2 | 2.750%, 10/31/2013 | 30,945,819 |
24,200,000 | 3.250%, 7/31/2016 | 26,892,250 | |
40,000,000 | 4.250%, 11/15/2014 | 43,649,344 | |
TOTAL U.S. TREASURY (IDENTIFIED COST $560,824,786) | 579,436,689 | ||
GOVERNMENT AGENCIES—23.4% | |||
15,000,000 | Federal Farm Credit System, 3.875%, 10/7/2013 | 15,636,617 | |
125,000,000 | 1 | Federal Home Loan Mortgage Corp., 1.000%, 7/28/2017 | 126,195,737 |
40,000,000 | Federal National Mortgage Association, 0.875%, 8/28/2017 | 40,032,048 | |
TOTAL GOVERNMENT AGENCIES (IDENTIFIED COST $179,701,880) | 181,864,402 | ||
Repurchase AgreementS—14.8% | |||
12,579,000 | Interest in $4,080,000,000 joint repurchase agreement 0.19%, dated 7/31/2012 under which Bank of America, N.A. will repurchase securities provided as collateral for $4,080,021,533 on 8/1/2012. The securities provided as collateral at the end of the period held with The Bank of New York Mellon, tri-party agent, were U.S. Government Agency securities with various maturities to 7/25/2041 and the market value of those underlying securities was $4,186,963,804. | 12,579,000 |
Principal Amount | Value | ||
Repurchase AgreementS—continued | |||
$102,532,000 | Interest in $4,080,000,000 joint repurchase agreement 0.19%, dated 7/31/2012 under which Bank of America, N.A. will repurchase securities provided as collateral for $4,080,021,533 on 8/1/2012. The securities provided as collateral at the end of the period held with The Bank of New York Mellon, tri-party agent, were U.S. Government Agency securities with various maturities to 7/25/2041 and the market value of those underlying securities was $4,186,963,804 (purchased with proceeds from securities lending collateral). | $102,532,000 | |
TOTAL REPURCHASE AGREEMENTS (AT COST) | 115,111,000 | ||
TOTAL INVESTMENTS—112.9% (IDENTIFIED COST $855,637,666)3 | 876,412,091 | ||
OTHER ASSETS AND LIABILITIES - NET—(12.9)%4 | (100,637,520) | ||
TOTAL NET ASSETS—100% | $775,774,571 |
Description | Number of Contracts | Notional Value | Expiration Date | Unrealized Appreciation/ (Depreciation) |
5United States Treasury Note 5-Year Long Futures | 988 | $123,283,875 | September 2012 | $796,540 |
5United States Treasury Bond Ultra Long Short Futures | 85 | $14,662,500 | September 2012 | $19,496 |
5United States Treasury Note 10-Year Short Futures | 275 | 37,030,469 | September 2012 | (314,290) |
NET UNREALIZED APPRECIATION ON FUTURES CONTRACTS | $501,746 |
1 | All or a portion of these securities are temporarily on loan to unaffiliated broker/dealers. |
2 | Pledged as collateral to ensure the Fund is able to satisfy the obligations of its outstanding futures contracts. |
3 | Also represents cost for federal tax purposes. |
4 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. A significant portion of this balance is the result of loans to unaffiliated qualified brokers for securities lending. The Fund receives cash from the broker as collateral for the loaned securities and reinvests the collateral in short-term securities such as repurchase agreements or money market mutual funds. |
5 | Non-income producing security. |
Valuation Inputs | ||||
Level 1— Quoted Prices and Investments in Mutual Funds | Level 2— Other Significant Observable Inputs | Level 3— Significant Unobservable Inputs | Total | |
Debt Securities: | ||||
U.S. Treasury | $— | $579,436,689 | $— | $579,436,689 |
Government Agencies | — | 181,864,402 | — | 181,864,402 |
Repurchase Agreement | — | 115,111,000 | — | 115,111,000 |
TOTAL SECURITIES | $— | $876,412,091 | $— | $876,412,091 |
OTHER FINANCIAL INSTRUMENTS* | $501,746 | $— | $— | $501,746 |
* | Other financial instruments include futures contracts. |
Six Months Ended (unaudited) 7/31/2012 | Year Ended January 31, | |||||
2012 | 2011 | 2010 | 2009 | 2008 | ||
Net Asset Value, Beginning of Period | $11.69 | $11.75 | $11.86 | $11.96 | $11.60 | $10.82 |
Income From Investment Operations: | ||||||
Net investment income | 0.02 | 0.10 | 0.15 | 0.22 | 0.34 | 0.40 |
Net realized and unrealized gain (loss) on investments and futures contracts | (0.02) | 0.41 | 0.14 | 0.001 | 0.36 | 0.78 |
TOTAL FROM INVESTMENT OPERATIONS | — | 0.51 | 0.29 | 0.22 | 0.70 | 1.18 |
Less Distributions: | ||||||
Distributions from net investment income | (0.02) | (0.10) | (0.15) | (0.22) | (0.34) | (0.40) |
Distributions from net realized gain on investments and futures contracts | (0.08) | (0.47) | (0.25) | (0.10) | — | — |
TOTAL DISTRIBUTIONS | (0.10) | (0.57) | (0.40) | (0.32) | (0.34) | (0.40) |
Net Asset Value, End of Period | $11.59 | $11.69 | $11.75 | $11.86 | $11.96 | $11.60 |
Total Return2 | (0.05)% | 4.40% | 2.47% | 1.79% | 6.16% | 11.21% |
Ratios to Average Net Assets: | ||||||
Net expenses | 1.27%3 | 1.27% | 1.27% | 1.25% | 1.24% | 1.30% |
Net investment income | 0.21%3 | 0.84% | 1.24% | 1.81% | 2.85% | 3.66% |
Expense waiver/reimbursement4 | 0.03%3 | 0.03% | 0.03% | 0.03% | 0.05% | 0.01% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $25,081 | $24,890 | $23,400 | $23,928 | $33,489 | $11,804 |
Portfolio turnover | 102% | 153% | 159% | 235% | 57% | 104% |
1 | Represents less than $0.01. |
2 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
3 | Computed on an annualized basis. |
4 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. |
Six Months Ended (unaudited) 7/31/2012 | Year Ended January 31, | |||||
2012 | 2011 | 2010 | 2009 | 2008 | ||
Net Asset Value, Beginning of Period | $11.69 | $11.75 | $11.86 | $11.96 | $11.60 | $10.82 |
Income From Investment Operations: | ||||||
Net investment income | 0.05 | 0.18 | 0.23 | 0.29 | 0.43 | 0.48 |
Net realized and unrealized gain (loss) on investments and futures contracts | (0.02) | 0.41 | 0.14 | 0.001 | 0.35 | 0.78 |
TOTAL FROM INVESTMENT OPERATIONS | 0.03 | 0.59 | 0.37 | 0.29 | 0.78 | 1.26 |
Less Distributions: | ||||||
Distributions from net investment income | (0.05) | (0.18) | (0.23) | (0.29) | (0.42) | (0.48) |
Distributions from net realized gain on investments and futures contracts | (0.08) | (0.47) | (0.25) | (0.10) | — | — |
TOTAL DISTRIBUTIONS | (0.13) | (0.65) | (0.48) | (0.39) | (0.42) | (0.48) |
Net Asset Value, End of Period | $11.59 | $11.69 | $11.75 | $11.86 | $11.96 | $11.60 |
Total Return2 | 0.25% | 5.12% | 3.18% | 2.47% | 6.92% | 12.00% |
Ratios to Average Net Assets: | ||||||
Net expenses | 0.58%3 | 0.58% | 0.58% | 0.58% | 0.53% | 0.58% |
Net investment income | 0.90%3 | 1.54% | 1.93% | 2.45% | 3.64% | 4.39% |
Expense waiver/reimbursement4 | 0.08%3 | 0.08% | 0.07% | 0.05% | 0.10% | 0.07% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $635,877 | $628,861 | $635,883 | $679,536 | $788,800 | $638,728 |
Portfolio turnover | 102% | 153% | 159% | 235% | 57% | 104% |
1 | Represents less than $0.01. |
2 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
3 | Computed on an annualized basis. |
4 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. |
Six Months Ended (unaudited) 7/31/2012 | Year Ended January 31, | |||||
2012 | 2011 | 2010 | 2009 | 2008 | ||
Net Asset Value, Beginning of Period | $11.69 | $11.75 | $11.86 | $11.96 | $11.60 | $10.82 |
Income From Investment Operations: | ||||||
Net investment income | 0.04 | 0.15 | 0.20 | 0.27 | 0.39 | 0.46 |
Net realized and unrealized gain (loss) on investments and futures contracts | (0.02) | 0.42 | 0.14 | 0.001 | 0.36 | 0.78 |
TOTAL FROM INVESTMENT OPERATIONS | 0.02 | 0.57 | 0.34 | 0.27 | 0.75 | 1.24 |
Less Distributions: | ||||||
Distributions from net investment income | (0.04) | (0.16) | (0.20) | (0.27) | (0.39) | (0.46) |
Distributions from net realized gain on investments and futures contracts | (0.08) | (0.47) | (0.25) | (0.10) | — | — |
TOTAL DISTRIBUTIONS | (0.12) | (0.63) | (0.45) | (0.37) | (0.39) | (0.46) |
Net Asset Value, End of Period | $11.59 | $11.69 | $11.75 | $11.86 | $11.96 | $11.60 |
Total Return2 | 0.14% | 4.88% | 2.94% | 2.25% | 6.64% | 11.73% |
Ratios to Average Net Assets: | ||||||
Net expenses | 0.81%3 | 0.81% | 0.81% | 0.81% | 0.78% | 0.83% |
Net investment income | 0.66%3 | 1.29% | 1.71% | 2.20% | 3.38% | 4.15% |
Expense waiver/reimbursement4 | 0.02%3 | 0.03% | 0.04% | 0.08% | 0.13% | 0.26% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $114,816 | $136,237 | $119,034 | $133,165 | $114,239 | $78,965 |
Portfolio turnover | 102% | 153% | 159% | 235% | 57% | 104% |
1 | Represents less than $0.01. |
2 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
3 | Computed on an annualized basis. |
4 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. |
Assets: | ||
Investment in repurchase agreements | $115,111,000 | |
Investment in securities | 761,301,091 | |
Total investment in securities, at value including $100,228,498 of securities loaned (identified cost $855,637,666) | $876,412,091 | |
Cash | 955 | |
Income receivable | 1,540,678 | |
Receivable for shares sold | 2,362,898 | |
Receivable for daily variation margin | 43,437 | |
TOTAL ASSETS | 880,360,059 | |
Liabilities: | ||
Payable for shares redeemed | 1,789,734 | |
Payable for collateral due to broker for securities lending | 102,532,000 | |
Income distribution payable | 42,539 | |
Payable to adviser (Note 5) | 2,310 | |
Payable for distribution services fee (Note 5) | 9,936 | |
Payable for shareholder services fee (Note 5) | 64,031 | |
Accrued expenses | 144,938 | |
TOTAL LIABILITIES | 104,585,488 | |
Net assets for 66,937,161 shares outstanding | $775,774,571 | |
Net Assets Consist of: | ||
Paid-in capital | $759,597,143 | |
Net unrealized appreciation of investments and futures contracts | 21,276,171 | |
Accumulated net realized loss on investments and futures contracts | (5,041,590) | |
Distributions in excess of net investment income | (57,153) | |
TOTAL NET ASSETS | $775,774,571 | |
Net Asset Value, Offering Price and Redemption Proceeds Per Share | ||
Class R Shares: | ||
$25,081,140 ÷ 2,164,219 shares outstanding, no par value, unlimited shares authorized | $11.59 | |
Institutional Shares: | ||
$635,877,179 ÷ 54,866,084 shares outstanding, no par value, unlimited shares authorized | $11.59 | |
Service Shares: | ||
$114,816,252 ÷ 9,906,858 shares outstanding, no par value, unlimited shares authorized | $11.59 |
Investment Income: | |||
Interest (including income on securities loaned of $32,579) | $5,755,435 | ||
Expenses: | |||
Investment adviser fee (Note 5) | $1,554,055 | ||
Administrative fee (Note 5) | 302,913 | ||
Custodian fees | 19,868 | ||
Transfer and dividend disbursing agent fees and expenses (Note 2) | 301,660 | ||
Directors'/Trustees' fees | 4,858 | ||
Auditing fees | 12,158 | ||
Legal fees | 4,152 | ||
Portfolio accounting fees | 65,667 | ||
Distribution services fee (Note 5) | 61,239 | ||
Shareholder services fee (Note 5) | 375,454 | ||
Account administration fee (Note 2) | 10,477 | ||
Share registration costs | 38,015 | ||
Printing and postage | 16,195 | ||
Insurance premiums | 2,189 | ||
Miscellaneous | 9,517 | ||
TOTAL EXPENSES | 2,778,417 | ||
Waivers and Reimbursements: | |||
Waiver of administrative fee (Note 5) | $(7,254) | ||
Waiver of distribution services fee (Note 5) | (2,861) | ||
Reimbursement of shareholder services fee (Note 5) | (132,590) | ||
Reimbursement of transfer and dividend disbursing agent fees and expenses (Note 2) and (Note 5) | (138,838) | ||
TOTAL WAIVERS AND REIMBURSEMENTS | (281,543) | ||
Net expenses | 2,496,874 | ||
Net investment income | 3,258,561 | ||
Realized and Unrealized Gain (Loss) on Investments and Futures Contracts: | |||
Net realized gain on investments | 7,585,909 | ||
Net realized loss on futures contracts | (2,153,748) | ||
Net change in unrealized appreciation of investments | (8,049,826) | ||
Net change in unrealized depreciation of futures contracts | 835,349 | ||
Net realized and unrealized loss on investments and futures contracts | (1,782,316) | ||
Change in net assets resulting from operations | $1,476,245 |
Six Months Ended (unaudited) 7/31/2012 | Year Ended 1/31/2012 | |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income | $3,258,561 | $11,018,827 |
Net realized gain on investments and futures contracts | 5,432,161 | 22,480,994 |
Net change in unrealized appreciation/depreciation of investments and futures contracts | (7,214,477) | 3,168,046 |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 1,476,245 | 36,667,867 |
Distributions to Shareholders: | ||
Distributions from net investment income | ||
Class R Shares | (32,746) | (200,848) |
Institutional Shares | (2,807,097) | (9,446,399) |
Service Shares | (396,314) | (1,558,573) |
Distributions from net realized gain on investments and futures contracts | ||
Class R Shares | (163,122) | (942,722) |
Institutional Shares | (4,261,251) | (23,483,252) |
Service Shares | (779,428) | (5,052,486) |
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | (8,439,958) | (40,684,280) |
Share Transactions: | ||
Proceeds from sale of shares | 130,176,727 | 309,196,245 |
Net asset value of shares issued to shareholders in payment of distributions declared | 7,404,030 | 34,352,963 |
Cost of shares redeemed | (144,830,225) | (327,861,676) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | (7,249,468) | 15,687,532 |
Change in net assets | (14,213,181) | 11,671,119 |
Net Assets: | ||
Beginning of period | 789,987,752 | 778,316,633 |
End of period (including distributions in excess of net investment income of $(57,153) and $(79,557), respectively) | $775,774,571 | $789,987,752 |
■ | 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 Fund's 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), which approximates market value. |
■ | 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. |
■ | Shares of other mutual funds are valued based upon their reported NAVs. |
■ | For securities that are fair valued in accordance with procedures established by and under the general supervision of the Trustees, certain factors may be considered such as: the purchase price of the security, information obtained by contacting the issuer, analysis of the issuer's financial statements or other available documents, fundamental analytical data, the nature and duration of restrictions on disposition, the movement of the market in which the security is normally traded and public trading in similar securities of the issuer or comparable issuers. |
■ | 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. |
Transfer and Dividend Disbursing Agent Fees Incurred | Transfer and Dividend Disbursing Agent Fees Reimbursed | Account Administration Fees Incurred | |
Class R Shares | $33,994 | $— | $— |
Institutional Shares | 225,735 | (138,838) | 4,859 |
Service Shares | 41,931 | — | 5,618 |
TOTAL | $301,660 | $(138,838) | $10,477 |
Market Value of Securities Loaned | Market Value of Collateral |
$100,228,498 | $102,532,000 |
Fair Value of Derivative Instruments | ||
Asset | ||
Statement of Assets and Liabilities Location | Fair Value | |
Derivatives not accounted for as hedging instruments under ASC Topic 815 | ||
Interest rate contracts | Receivable for daily variation margin | $501,746* |
* | Includes cumulative appreciation/depreciation of futures contracts as reported in the footnotes to the Portfolio of Investments. Only the current day's variation margin is reported within the Statement of Assets and Liabilities. |
Amount of Realized Gain or (Loss) on Derivatives Recognized in Income | |
Futures | |
Interest rate contracts | $(2,153,748) |
Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income | |
Futures | |
Interest rate contracts | $ 835,349 |
Six Months Ended 7/31/2012 | Year Ended 1/31/2012 | |||
Class R Shares: | Shares | Amount | Shares | Amount |
Shares sold | 429,223 | $4,992,033 | 968,069 | $11,479,630 |
Shares issued to shareholders in payment of distributions declared | 15,277 | 176,788 | 89,474 | 1,044,971 |
Shares redeemed | (408,752) | (4,758,827) | (920,749) | (10,896,560) |
NET CHANGE RESULTING FROM CLASS R SHARE TRANSACTIONS | 35,748 | $409,994 | 136,794 | $1,628,041 |
Six Months Ended 7/31/2012 | Year Ended 1/31/2012 | |||
Institutional Shares: | Shares | Amount | Shares | Amount |
Shares sold | 9,200,839 | $107,094,679 | 19,521,882 | $231,388,993 |
Shares issued to shareholders in payment of distributions declared | 534,094 | 6,188,112 | 2,351,294 | 27,506,852 |
Shares redeemed | (8,648,293) | (100,609,828) | (22,217,154) | (263,169,311) |
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS | 1,086,640 | $12,672,963 | (343,978) | $(4,273,466) |
Six Months Ended 7/31/2012 | Year Ended 1/31/2012 | |||
Service Shares: | Shares | Amount | Shares | Amount |
Shares sold | 1,554,358 | $18,090,015 | 5,582,141 | $66,327,622 |
Shares issued to shareholders in payment of distributions declared | 89,719 | 1,039,130 | 496,350 | 5,801,140 |
Shares redeemed | (3,387,836) | (39,461,570) | (4,559,653) | (53,795,805) |
NET CHANGE RESULTING FROM SERVICE SHARE TRANSACTIONS | (1,743,759) | $(20,332,425) | 1,518,838 | $18,332,957 |
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | (621,371) | $(7,249,468) | 1,311,654 | $15,687,532 |
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 |
Share Class Name | Percentage of Average Daily Net Assets of Class |
Class R Shares | 0.50% |
Service Shares | 0.05% |
Distribution Services Fees Incurred | Distribution Services Fees Waived | |
Class R Shares | $61,239 | $(2,861) |
Service Fees Incurred | Service Fees Reimbursed | |
Institutional Shares | $231,226 | $(120,310) |
Service Shares | 144,228 | (12,280) |
TOTAL | $375,454 | $(132,590) |
Beginning Account Value 2/1/2012 | Ending Account Value 7/31/2012 | Expenses Paid During Period1 | |
Actual: | |||
Class R Shares | $1,000 | $999.50 | $6.31 |
Institutional Shares | $1,000 | $1,002.50 | $2.89 |
Service Shares | $1,000 | $1,001.40 | $4.03 |
Hypothetical (assuming a 5% return before expenses): | |||
Class R Shares | $1,000 | $1,018.55 | $6.37 |
Institutional Shares | $1,000 | $1,021.98 | $2.92 |
Service Shares | $1,000 | $1,020.84 | $4.07 |
1 | Expenses are equal to the Fund's annualized net expense ratios, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half-year period). The annualized net expense ratios are as follows: |
Class R Shares | 1.27% |
Institutional Shares | 0.58% |
Service Shares | 0.81% |
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Federated Investors Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
CUSIP 31428P103
CUSIP 31428P202
2012 ©Federated Investors, Inc.
Item 2. Code of Ethics
Not Applicable
Item 3. Audit Committee Financial Expert
Not Applicable
Item 4. Principal Accountant Fees and Services
Not Applicable
Item 5. Audit Committee of Listed Registrants
Not Applicable
Item 6. Schedule of Investments
(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this form.
(b) Not Applicable; Fund had no divestments during the reporting period covered since the previous Form N-CSR filing.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not Applicable |
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not Applicable |
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not Applicable |
Item 10. Submission of Matters to a Vote of Security Holders
Not Applicable
Item 11. Controls and Procedures
(a) The registrant’s President and Treasurer have concluded that the
registrant’s disclosure controls and procedures (as defined in rule 30a-3(c) under the Act) are effective in design and operation and are sufficient to form the basis of the certifications required by Rule 30a-(2) under the Act, based on their evaluation of these disclosure controls and procedures within 90 days of the filing date of this report on Form N-CSR.
(b) There were no changes in the registrant’s internal control over financial reporting (as defined in rule 30a-3(d) under the Act) during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Exhibits
(a)(1) Code of Ethics- Not Applicable to this Semi-Annual Report.
(a)(2) Certifications of Principal Executive Officer and Principal Financial Officer.
(a)(3) Not Applicable.
(b) Certifications pursuant to 18 U.S.C. Section 1350.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant Federated U.S. Government Securities Fund: 2-5 Years
By /S/ Richard A. Novak
Richard A. Novak
Principal Financial Officer
Date September 24, 2012
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By /S/ J. Christopher Donahue
J. Christopher Donahue
Principal Executive Officer
Date September 24, 2012
By /S/ Richard A. Novak
Richard A. Novak
Principal Financial Officer
Date September 24, 2012