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)
Peter J. Germain, 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: 01/31/18
Date of Reporting Period: Six months ended 07/31/17
Item 1. | Reports to Stockholders |
Share Class | Ticker |
R | FIGKX |
Institutional | FIGTX |
Service | FIGIX |
Portfolio Composition | Percentage of Total Net Assets |
U.S. Treasury Securities | 89.9% |
U.S. Government Agency Commercial Mortgage-Backed Securities | 8.7% |
Derivative Contracts2,3 | (0.0)% |
Other Security Type3,4 | 0.0% |
Cash Equivalents5 | 1.2% |
Other Assets and Liabilities—Net6 | 0.2% |
TOTAL | 100.0% |
Securities With an Effective Maturity of: | Percentage of Total Net Assets |
Less than 2 Years3 | 0.0% |
2-5 Years | 86.8% |
Greater than 5 Years | 11.8% |
Derivative Contracts2,3 | (0.0)% |
Other Security Types3,4 | 0.0% |
Cash Equivalents5 | 1.2% |
Other Assets and Liabilities—Net6 | 0.2% |
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 | Represents less than 0.1%. |
4 | Other Security Type consists of purchased put options. |
5 | Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements. |
6 | Assets, other than investments in securities and derivative contracts, less liabilities. See Statement of Assets and Liabilities. |
7 | 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. |
Principal Amount, Contracts or Shares | Value | ||
U.S. TREASURY—89.9% | |||
U.S. Treasury Notes—89.9% | |||
$40,000,000 | 1.125%, 12/31/2019 | $39,734,944 | |
45,000,000 | 1.125%, 3/31/2020 | 44,627,692 | |
19,000,000 | 1.125%, 8/31/2021 | 18,553,204 | |
10,000,000 | 1.250%, 3/31/2021 | 9,858,203 | |
10,000,000 | 1.375%, 9/30/2020 | 9,944,480 | |
45,000,000 | 1.625%, 8/31/2019 | 45,240,822 | |
25,000,000 | 1.625%, 6/30/2020 | 25,085,960 | |
15,000,000 | 1.625%, 11/30/2020 | 15,016,262 | |
27,000,000 | 1.750%, 11/30/2021 | 26,991,562 | |
45,000,000 | 1.750%, 6/30/2022 | 44,831,250 | |
20,000,000 | 1.875%, 11/30/2021 | 20,100,782 | |
30,000,000 | 1.875%, 1/31/2022 | 30,113,673 | |
25,000,000 | 1.875%, 3/31/2022 | 25,074,218 | |
10,000,000 | 1 | 2.000%, 11/30/2020 | 10,133,100 |
24,314,640 | U.S. Treasury Inflation-Protected Note, 0.375%, 1/15/2027 | 24,015,232 | |
TOTAL U.S. TREASURY (IDENTIFIED COST $387,412,979) | 389,321,384 | ||
COMMERCIAL MORTGAGE-BACKED SECURITIES—8.7% | |||
Agency Commercial Mortgage-Backed Securities—8.7% | |||
4,000,000 | FHLMC REMIC K031 A2, 3.300%, 4/25/2023 | 4,195,217 | |
8,233,209 | FHLMC REMIC K052 A1, 2.598%, 1/25/2025 | 8,358,772 | |
6,966,385 | FHLMC REMIC K060 A1, 2.958%, 7/25/2026 | 7,149,826 | |
10,350,000 | FHLMC REMIC K504 A2, 2.566%, 9/25/2020 | 10,536,207 | |
7,383,121 | FHLMC REMIC K724 A1, 2.776%, 3/25/2023 | 7,566,506 | |
TOTAL COMMERCIAL MORTGAGE-BACKED SECURITIES (IDENTIFIED COST $37,847,636) | 37,806,528 | ||
PURCHASED PUT OPTIONS—0.0% | |||
25 | United States Treasury Note 10-Year Future, Put Option, Strike Price: $125.00, Expiration Date: 8/25/2017 | 4,687 | |
25 | United States Treasury Note 10-Year Future, Put Option, Strike Price: $125.50, Expiration Date: 8/25/2017 | 8,203 | |
25 | United States Treasury Note 10-Year Future, Put Option, Strike Price: $125.50, Expiration Date: 9/22/2017 | 17,969 | |
TOTAL PURCHASED PUT OPTIONS (IDENTIFIED COST $43,528) | 30,859 |
Principal Amount, Contracts or Shares | Value | ||
INVESTMENT COMPANY—1.2% | |||
5,104,924 | 2 | Federated Government Obligations Fund, Premier Shares, 0.89%3 (IDENTIFIED COST $5,104,924) | $5,104,924 |
TOTAL INVESTMENTS—99.8% (IDENTIFIED COST $430,409,067)4 | 432,263,695 | ||
OTHER ASSETS AND LIABILITIES - NET—0.2%5 | 1,053,028 | ||
TOTAL NET ASSETS—100% | $433,316,723 |
Description | Number of Contracts | Notional Value | Expiration Date | Unrealized Appreciation (Depreciation) |
6United States Treasury Note 2-Year Long Futures | 200 | $43,268,750 | September 2017 | $8,907 |
6United States Treasury Note 10-Year Short Futures | 260 | $32,731,563 | September 2017 | $(52,796) |
NET UNREALIZED DEPRECIATION ON FUTURES CONTRACTS | $(43,889) |
1 | All or portion has been pledged as collateral to ensure the Fund is able to satisfy the obligations of its outstanding futures contracts. |
2 | Affiliated holding. |
3 | 7-day net yield. |
4 | Also represents cost for federal tax purposes. |
5 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
6 | Non-income-producing security. |
Valuation Inputs | ||||
Level 1— Quoted Prices | Level 2— Other Significant Observable Inputs | Level 3— Significant Unobservable Inputs | Total | |
Debt Securities: | ||||
U.S. Treasury | $— | $389,321,384 | $— | $389,321,384 |
Commercial Mortgage-Backed Securities | — | 37,806,528 | — | 37,806,528 |
Purchased Put Options | 30,859 | — | — | 30,859 |
Investment Company | 5,104,924 | — | — | 5,104,924 |
TOTAL SECURITIES | $5,135,783 | $427,127,912 | $— | $432,263,695 |
Other Financial Instruments1 | ||||
Assets | 8,907 | — | — | 8,907 |
Liabilities | (52,796) | — | — | (52,796) |
TOTAL OTHER FINANCIAL INSTRUMENTS | $(43,889) | $— | $— | $(43,889) |
1 | Other financial instruments include futures contracts. |
FHLMC | —Federal Home Loan Mortgage Corporation |
REMIC | —Real Estate Mortgage Investment Conduit |
Six Months Ended (unaudited) 7/31/2017 | Year Ended January 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | ||
Net Asset Value, Beginning of Period | $10.88 | $11.04 | $11.20 | $11.11 | $11.43 | $11.69 |
Income From Investment Operations: | ||||||
Net investment income | 0.021 | 0.051 | 0.061 | 0.06 | 0.051 | 0.031 |
Net realized and unrealized gain (loss) on investments, futures contracts and written options | 0.03 | (0.15) | (0.16) | 0.09 | (0.23) | (0.10) |
TOTAL FROM INVESTMENT OPERATIONS | 0.05 | (0.10) | (0.10) | 0.15 | (0.18) | (0.07) |
Less Distributions: | ||||||
Distributions from net investment income | (0.03) | (0.06) | (0.06) | (0.06) | (0.05) | (0.04) |
Distributions from net realized gain on investments, futures contracts and written options | — | — | — | — | (0.09) | (0.15) |
TOTAL DISTRIBUTIONS | (0.03) | (0.06) | (0.06) | (0.06) | (0.14) | (0.19) |
Net Asset Value, End of Period | $10.90 | $10.88 | $11.04 | $11.20 | $11.11 | $11.43 |
Total Return2 | 0.49% | (0.90)% | (0.87)% | 1.36% | (1.55)% | (0.61)% |
Ratios to Average Net Assets: | ||||||
Net expenses | 1.31%3 | 1.30% | 1.26% | 1.14% | 1.19% | 1.27% |
Net investment income | 0.62%3 | 0.47% | 0.51% | 0.53% | 0.45% | 0.27% |
Expense waiver/reimbursement4 | 0.11%3 | 0.00%5 | 0.01% | 0.00% | 0.00% | 0.02% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $8,154 | $12,341 | $13,697 | $14,380 | $15,499 | $22,646 |
Portfolio turnover | 44% | 125% | 233% | 252% | 312% | 187% |
1 | Per share numbers have been calculated using the average shares method. |
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. |
5 | Represents less than 0.01%. |
Six Months Ended (unaudited) 7/31/2017 | Year Ended January 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | ||
Net Asset Value, Beginning of Period | $10.89 | $11.05 | $11.20 | $11.11 | $11.43 | $11.69 |
Income From Investment Operations: | ||||||
Net investment income | 0.071 | 0.131 | 0.131 | 0.13 | 0.121 | 0.111 |
Net realized and unrealized gain (loss) on investments, futures contracts and written options | 0.01 | (0.15) | (0.14) | 0.08 | (0.23) | (0.11) |
TOTAL FROM INVESTMENT OPERATIONS | 0.08 | (0.02) | (0.01) | 0.21 | (0.11) | 0.00 |
Less Distributions: | ||||||
Distributions from net investment income | (0.07) | (0.14) | (0.14) | (0.12) | (0.12) | (0.11) |
Distributions from net realized gain on investments, futures contracts and written options | — | — | — | — | (0.09) | (0.15) |
TOTAL DISTRIBUTIONS | (0.07) | (0.14) | (0.14) | (0.12) | (0.21) | (0.26) |
Net Asset Value, End of Period | $10.90 | $10.89 | $11.05 | $11.20 | $11.11 | $11.43 |
Total Return2 | 0.75% | (0.20)% | (0.12)% | 1.91% | (0.96)% | 0.02% |
Ratios to Average Net Assets: | ||||||
Net expenses | 0.59%3 | 0.59% | 0.58% | 0.58% | 0.58% | 0.58% |
Net investment income | 1.34%3 | 1.18% | 1.18% | 1.08% | 1.05% | 0.96% |
Expense waiver/reimbursement4 | 0.14%3 | 0.13% | 0.12% | 0.11% | 0.09% | 0.09% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $383,871 | $394,544 | $441,379 | $461,400 | $471,634 | $558,704 |
Portfolio turnover | 44% | 125% | 233% | 252% | 312% | 187% |
1 | Per share numbers have been calculated using the average shares method. |
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) 7/31/2017 | Year Ended January 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | ||
Net Asset Value, Beginning of Period | $10.89 | $11.05 | $11.20 | $11.11 | $11.43 | $11.69 |
Income From Investment Operations: | ||||||
Net investment income | 0.061 | 0.111 | 0.101 | 0.10 | 0.091 | 0.081 |
Net realized and unrealized gain (loss) on investments, futures contracts and written options | 0.01 | (0.16) | (0.14) | 0.09 | (0.23) | (0.11) |
TOTAL FROM INVESTMENT OPERATIONS | 0.07 | (0.05) | (0.04) | 0.19 | (0.14) | (0.03) |
Less Distributions: | ||||||
Distributions from net investment income | (0.06) | (0.11) | (0.11) | (0.10) | (0.09) | (0.08) |
Distributions from net realized gain on investments, futures contracts and written options | — | — | — | — | (0.09) | (0.15) |
TOTAL DISTRIBUTIONS | (0.06) | (0.11) | (0.11) | (0.10) | (0.18) | (0.23) |
Net Asset Value, End of Period | $10.90 | $10.89 | $11.05 | $11.20 | $11.11 | $11.43 |
Total Return2 | 0.64% | (0.43)% | (0.35)% | 1.68% | (1.19)% | (0.21)% |
Ratios to Average Net Assets: | ||||||
Net expenses | 0.82%3 | 0.82% | 0.81% | 0.81% | 0.81% | 0.81% |
Net investment income | 1.11%3 | 0.95% | 0.95% | 0.85% | 0.83% | 0.73% |
Expense waiver/reimbursement4 | 0.10%3 | 0.08% | 0.08% | 0.07% | 0.07% | 0.04% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $41,292 | $51,778 | $54,610 | $73,550 | $64,766 | $103,042 |
Portfolio turnover | 44% | 125% | 233% | 252% | 312% | 187% |
1 | Per share numbers have been calculated using the average shares method. |
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: | ||
Total investment in securities, at value including $5,104,924 of investment in an affiliated holding (Note 5) (identified cost $430,409,067) | $432,263,695 | |
Restricted cash (Note 2) | 55,966 | |
Income receivable | 1,269,744 | |
Receivable for shares sold | 280,915 | |
TOTAL ASSETS | 433,870,320 | |
Liabilities: | ||
Payable for shares redeemed | $333,747 | |
Bank overdraft | 270 | |
Payable for daily variation margin on futures contracts | 42,813 | |
Income distribution payable | 38,382 | |
Payable to adviser (Note 5) | 7,335 | |
Payable for administrative fees (Note 5) | 935 | |
Payable for transfer agent fee | 63,939 | |
Payable for distribution services fee (Note 5) | 2,326 | |
Payable for other service fees (Notes 2 and 5) | 43,229 | |
Accrued expenses (Note 5) | 20,621 | |
TOTAL LIABILITIES | 553,597 | |
Net assets for 39,748,751 shares outstanding | $433,316,723 | |
Net Assets Consist of: | ||
Paid-in capital | $455,212,047 | |
Net unrealized appreciation of investments and futures contracts | 1,810,739 | |
Accumulated net realized loss on investments, futures contracts and written options | (23,831,276) | |
Undistributed net investment income | 125,213 | |
TOTAL NET ASSETS | $433,316,723 | |
Net Asset Value, Offering Price and Redemption Proceeds Per Share | ||
Class R Shares: | ||
Net asset value per share ($8,154,015 ÷ 748,238 shares outstanding), no par value, unlimited shares authorized | $10.90 | |
Institutional Shares: | ||
Net asset value per share ($383,870,791 ÷ 35,212,631 shares outstanding), no par value, unlimited shares authorized | $10.90 | |
Service Shares: | ||
Net asset value per share ($41,291,917 ÷ 3,787,882 shares outstanding), no par value, unlimited shares authorized | $10.90 |
Investment Income: | |||
Interest (including $17,539 received from an affiliated holding (Note 5)) | $4,230,725 | ||
Expenses: | |||
Investment adviser fee (Note 5) | $878,886 | ||
Administrative fee (Note 5) | 172,854 | ||
Custodian fees | 12,077 | ||
Transfer agent fee (Note 2) | 181,459 | ||
Directors'/Trustees' fees (Note 5) | 5,887 | ||
Auditing fees | 14,182 | ||
Legal fees | 4,008 | ||
Portfolio accounting fees | 59,162 | ||
Distribution services fee (Note 5) | 26,731 | ||
Other service fees (Notes 2 and 5) | 259,576 | ||
Share registration costs | 32,366 | ||
Printing and postage | 14,356 | ||
Miscellaneous (Note 5) | 15,194 | ||
TOTAL EXPENSES | 1,676,738 | ||
Waiver and Reimbursements: | |||
Reimbursement of investment adviser fee (Note 5) | $(1,558) | ||
Waiver/reimbursements of other operating expenses (Notes 2 and 5) | (292,608) | ||
TOTAL WAIVER AND REIMBURSEMENTS | (294,166) | ||
Net expenses | 1,382,572 | ||
Net investment income | 2,848,153 | ||
Realized and Unrealized Gain (Loss) on Investments, Futures Contracts and Written Options: | |||
Net realized gain on investments | 586,136 | ||
Net realized loss on futures contracts | (155,621) | ||
Net realized gain on written options | 4,936 | ||
Net change in unrealized appreciation of investments | (96,510) | ||
Net change in unrealized depreciation of futures contracts | 223,946 | ||
Net realized and unrealized gain on investments, futures contracts and written options | 562,887 | ||
Change in net assets resulting from operations | $3,411,040 |
Six Months Ended (unaudited) 7/31/2017 | Year Ended 1/31/2017 | |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income | $2,848,153 | $5,547,436 |
Net realized gain (loss) on investments, futures contracts and written option transactions | 435,451 | (757,243) |
Net change in unrealized appreciation/depreciation of investments and futures contracts | 127,436 | (5,884,493) |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 3,411,040 | (1,094,300) |
Distributions to Shareholders: | ||
Distributions from net investment income | ||
Class R Shares | (32,636) | (74,319) |
Institutional Shares | (2,546,934) | (5,306,037) |
Service Shares | (245,358) | (547,609) |
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS | (2,824,928) | (5,927,965) |
Share Transactions: | ||
Proceeds from sale of shares | 44,818,284 | 118,442,860 |
Net asset value of shares issued to shareholders in payment of distributions declared | 2,577,834 | 5,399,081 |
Cost of shares redeemed | (73,328,358) | (167,843,858) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | (25,932,240) | (44,001,917) |
Change in net assets | (25,346,128) | (51,024,182) |
Net Assets: | ||
Beginning of period | 458,662,851 | 509,687,033 |
End of period (including undistributed net investment income of $125,213 and $101,988, respectively) | $433,316,723 | $458,662,851 |
■ | Fixed-income securities are fair valued using price evaluations provided by a pricing service approved by the Trustees. |
■ | Derivative contracts listed on exchanges are valued at their reported settlement or closing price, except that options are valued at the mean of closing bid and asked quotations. |
■ | Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Trustees. |
■ | Shares of other mutual funds or non-exchange-traded investment companies 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 last traded or purchase price of the security, information obtained by contacting the issuer or dealers, analysis of the issuer's financial statements or other available documents, fundamental analytical data, the nature and duration of restrictions on disposition, the movement of the market in which the security is normally traded, public trading in similar securities or derivative contracts of the issuer or comparable issuers, movement of a relevant index, or other factors including but not limited to industry changes and relevant government actions. |
Transfer Agent Fees Incurred | Transfer Agent Fees Reimbursed | |
Class R Shares | $19,616 | $— |
Institutional Shares | 133,777 | (93,708) |
Service Shares | 28,066 | — |
TOTAL | $181,459 | $(93,708) |
Other Service Fees Incurred | Other Service Fees Reimbursed | |
Institutional Shares | $205,035 | $(170,673) |
Service Shares | 54,541 | (22,449) |
TOTAL | $259,576 | $(193,122) |
Contracts | Number of Contracts | Premium |
Outstanding at January 31, 2017 | — | $— |
Contracts written | 75 | 9,206 |
Contracts bought back | (75) | (9,206) |
Outstanding at July 31, 2017 | — | $— |
Fair Value of Derivative Instruments | ||||
Asset | Liability | |||
Statement of Assets and Liabilities Location | Fair Value | Statement of Assets and Liabilities Location | Fair Value | |
Derivatives not accounted for as hedging instruments under ASC Topic 815 | ||||
Interest rate contracts | Total investments in securities, at value-options | $30,859 | Payable for daily variation margin on futures contracts | $43,889 |
* | Includes cumulative 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 Contracts | Purchased Option Contracts1 | Written Option Contracts | Total | |
Interest rate contracts | $(155,621) | $(51,611) | $4,936 | $(202,296) |
Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income | |||
Futures Contracts | Purchased Option Contracts2 | Total | |
Interest rate contracts | $223,946 | $17,611 | $241,557 |
1 | The net realized gain on Purchased Option Contracts is found within the Net realized gain on investments on the Statement of Operations. |
2 | The net change in unrealized appreciation of Purchased Option Contracts is found within the Net change in unrealized appreciation of investments on the Statement of Operations. |
Six Months Ended 7/31/2017 | Year Ended 1/31/2017 | |||
Class R Shares: | Shares | Amount | Shares | Amount |
Shares sold | 111,255 | $1,210,666 | 334,842 | $3,697,317 |
Shares issued to shareholders in payment of distributions declared | 2,725 | 29,679 | 6,248 | 69,085 |
Shares redeemed | (499,804) | (5,442,685) | (447,236) | (4,924,367) |
NET CHANGE RESULTING FROM CLASS R SHARE TRANSACTIONS | (385,824) | $(4,202,340) | (106,146) | $(1,157,965) |
Six Months Ended 7/31/2017 | Year Ended 1/31/2017 | |||
Institutional Shares: | Shares | Amount | Shares | Amount |
Shares sold | 3,240,737 | $35,296,227 | 8,944,764 | $98,906,984 |
Shares issued to shareholders in payment of distributions declared | 213,772 | 2,329,421 | 437,721 | 4,836,572 |
Shares redeemed | (4,483,172) | (48,820,648) | (13,090,656) | (144,527,356) |
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS | (1,028,663) | $(11,195,000) | (3,708,171) | $(40,783,800) |
Six Months Ended 7/31/2017 | Year Ended 1/31/2017 | |||
Service Shares: | Shares | Amount | Shares | Amount |
Shares sold | 762,773 | $8,311,391 | 1,437,039 | $15,838,559 |
Shares issued to shareholders in payment of distributions declared | 20,081 | 218,734 | 44,648 | 493,424 |
Shares redeemed | (1,751,339) | (19,065,025) | (1,668,425) | (18,392,135) |
NET CHANGE RESULTING FROM SERVICE SHARE TRANSACTIONS | (968,485) | $(10,534,900) | (186,738) | $(2,060,152) |
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS | (2,382,972) | $(25,932,240) | (4,001,055) | $(44,001,917) |
Short-Term | Long-Term | Total |
$23,698,715 | $— | $23,698,715 |
Administrative Fee | Average Daily Net Assets of the Investment Complex |
0.150% | on the first $5 billion |
0.125% | on the next $5 billion |
0.100% | on the next $10 billion |
0.075% | on assets in excess of $20 billion |
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 | $26,731 | $(5,778) |
Balance of Shares Held 1/31/2017 | Purchases/ Additions | Sales/ Reductions | Balance of Shares Held 7/31/2017 | Value | Dividend Income | |
Federated Government Obligations Fund, Premier Shares | 8,012,482 | 66,933,278 | (69,840,836) | 5,104,924 | $5,104,924 | $17,539 |
Administrative Services Fee Rate | Average Daily Net Assets of the Investment Complex |
0.100 of 1% | on assets up to $50 billion |
0.075 of 1% | on assets over $50 billion |
Beginning Account Value 2/1/2017 | Ending Account Value 7/31/2017 | Expenses Paid During Period1 | |
Actual: | |||
Class R Shares | $1,000 | $1,004.90 | $6.51 |
Institutional Shares | $1,000 | $1,007.50 | $2.94 |
Service Shares | $1,000 | $1,006.40 | $4.08 |
Hypothetical (assuming a 5% return before expenses): | |||
Class R Shares | $1,000 | $1,018.30 | $6.56 |
Institutional Shares | $1,000 | $1,021.90 | $2.96 |
Service Shares | $1,000 | $1,020.70 | $4.11 |
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 R Shares | 1.31% |
Institutional Shares | 0.59% |
Service Shares | 0.82% |
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
CUSIP 31428P103
CUSIP 31428P202
2017 ©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 |
No Changes to Report
Item 11. | Controls and Procedures |
(a) The registrant’s President and Treasurer have concluded that the
registrant’s disclosure controls and procedures (as defined in rule 30a-3(c) under the Act) are effective in design and operation and are sufficient to form the basis of the certifications required by Rule 30a-(2) under the Act, based on their evaluation of these disclosure controls and procedures within 90 days of the filing date of this report on Form N-CSR.
(b) There were no changes in the registrant’s internal control over financial reporting (as defined in rule 30a-3(d) under the Act) during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. | Exhibits |
(a)(1) Code of Ethics- Not Applicable to this Report.
(a)(2) Certifications of Principal Executive Officer and Principal Financial Officer.
(a)(3) Not Applicable.
(b) Certifications pursuant to 18 U.S.C. Section 1350.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant Federated U.S. Government Securities Fund: 2-5 Years
By /S/ Lori A. Hensler
Lori A. Hensler, Principal Financial Officer
Date September 25, 2017
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By /S/ J. Christopher Donahue
J. Christopher Donahue, Principal Executive Officer
Date September 25, 2017
By /S/ Lori A. Hensler
Lori A. Hensler, Principal Financial Officer
Date September 25, 2017