Federated Fixed Income Securities N-CSR 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

811-6447

(Investment Company Act File Number)

Federated Fixed Income Securities, Inc.

_______________________________________________________________

(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: 11/30/2012

Date of Reporting Period: 11/30/2012

Item 1. Reports to Stockholders

Annual Shareholder Report

November 30, 2012

Share Class	Ticker
A	STIAX
B	SINBX
C	SINCX
F	STFSX
Institutional	STISX

 

Federated Strategic Income Fund

Fund Established 1994

A Portfolio of Federated Fixed Income Securities, Inc.

Dear Valued Shareholder,

I am pleased to present the Annual Shareholder Report for your fund covering the period from December 1, 2011 through November 30, 2012. This report includes Management's Discussion of Fund Performance, a complete listing of your fund's holdings, performance information and financial statements along with other important fund information.

In addition, our website, FederatedInvestors.com, offers easy access to Federated resources that include timely fund updates, economic and market insights from our investment strategists, and financial planning tools. We invite you to register to take full advantage of its capabilities.

Thank you for investing with Federated. I hope you find this information useful and look forward to keeping you informed.

Sincerely,

J. Christopher Donahue, President

Not FDIC Insured • May Lose Value • No Bank Guarantee

CONTENTS

Management's Discussion of Fund Performance	1
Portfolio of Investments Summary Table	8
Portfolio of Investments	9
Financial Highlights	15
Statement of Assets and Liabilities	20
Statement of Operations	22
Statement of Changes in Net Assets	24
Notes to Financial Statements	25
Report of Independent Registered Public Accounting Firm	40
Shareholder Expense Example	41
Board of Directors and Corporation Officers	43
Evaluation and Approval of Advisory Contract	48
Voting Proxies on Fund Portfolio Securities	53
Quarterly Portfolio Schedule	53

Management's Discussion of Fund Performance (unaudited)

The Fund's total return, based on net asset value for the 12-month reporting period ending November 30, 2012, was 11.40% for Class A Shares, 10.58% for Class B Shares, 10.58% for Class C Shares, 11.34% for Class F Shares and 11.60% for Institutional Shares. The total return of the Lipper Multi-Sector Income Fund Average (Lipper Average)¹ was 11.76% for the same period.² The Fund's and the Lipper Average's total returns for the 12-month reporting period reflected actual cash flows, transaction costs and other expenses.

During the 12-month reporting period, the most significant factors affecting the Fund's absolute performance were: (1) the allocation of the portfolio among securities of similar types of issuers (referred to as “sectors”); and (2) the effect of derivatives reflecting positions in changing interest rate targets (referred to as “duration”).³

The following discussion will focus on the performance of the Fund's Institutional Shares. The 11.60% total return for the Institutional Shares for the 12-month reporting period consisted of 6.00% income and 5.60% appreciation in the net asset value of the shares.

MARKET OVERVIEW

The 12-month reporting period continued to demonstrate the alternating “risk-on” and “risk-off” scenarios that have characterized the investment environment since the Great Recession ended in 2009. Generally speaking, economic activity in the largest developed economies (i.e., United States, Europe and Japan) was far below historical trend growth rates. In fact, both Europe (collectively) and Japan moved back into recession, while the United States struggled to maintain a growth rate in and around 2%. In most emerging economies, real economic growth continued but at slower than anticipated rates. In sum, world economic growth was disappointing relative to expectations.

Given the economic backdrop, most worldwide monetary authorities continued to provide and/or increase stimulus to assist activity during the 12-month reporting period. The Federal Reserve, for its part, instituted a number of measures, most notably what has become known as another round of quantitative easing (QE3), a direct mortgage securities purchase program. This QE3 program, similar to those previously executed, was designed to suppress long maturity interest rates in the hopes of reviving economic growth.

From a corporate perspective, earnings largely continued to exceed analyst expectations during the 12-month reporting period, but clearly exhibited a growth deceleration. More troublesome was the near lack of any revenue growth on a year-over-year basis. Despite these relative earnings concerns, investor demand for higher yielding bonds continued at record levels, given the declining trend in overall U.S. Treasury bond yields.

Annual Shareholder Report

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SECTOR

During the 12-month reporting period, sector allocation was a significant positive contributor to Fund performance. The Fund consistently maintained the majority of its assets in a combination of the high yield⁴ and emerging market⁵ bond sectors, which were the two best performing sectors in the bond market over the 12-month reporting period.

DURATION/DERIVATIVES⁶

Over the course of the fiscal year, the Fund held both “short” and “long” positions in the 10-year U.S. Treasury futures derivative as a means of targeting specific positions geared toward anticipated changes in interest rates. For the year in total, these derivative positions detracted from absolute Fund performance.

1	Lipper figures represent the average of the total returns by all the mutual funds designated by Lipper, Inc. as falling into the respective category indicated. Lipper figures do not reflect sales charges. The average is unmanaged, and it is not possible to invest directly in an average.
2	The Fund's investment adviser has elected to change the Fund's broad-based securities market index to the “Barclays U.S. Aggregate Bond Index” (BAB) from the “Barclays U.S. Government/Credit Index” (BGCI). The BAB is better aligned with the Fund's sector allocations. The BAB covers the investment-grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, agency mortgage pass-through securities, asset-backed securities and commercial mortgage-backed securities. The BAB's return for the 12-month reporting period was 5.51%. The LMSIFA, the Fund's Lipper Average, is being used for comparison purposes because, although it is not the Fund's broad-based securities market index, the Fund Adviser believes it more closely reflects the market sectors in which the Fund invests.
3	Bond prices are sensitive to changes in interest rates, and a rise in interest rates can cause a decline in their prices. Duration is a measure of a security's price sensitivity to changes in interest rates. Securities with longer durations are more sensitive to changes in interest rates than securities of shorter durations.
4	High-yield, lower-rated securities generally entail greater market, credit and liquidity risks than investment-grade securities and may include higher volatility and higher risk of default.
5	International investing involves special risks including currency risk, increased volatility of foreign securities, political risks and differences in auditing and other financial standards. Prices of emerging markets securities can be significantly more volatile than the prices of securities in developed countries.
6	The Fund's use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional instruments.

Annual Shareholder Report

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FUND PERFORMANCE AND GROWTH OF A $10,000 INVESTMENT

The Average Annual Total Return table below shows returns for each class averaged over the stated periods. The graphs below illustrate the hypothetical investment of $10,000¹ in the Federated Strategic Income Fund (the “Fund”) from November 30, 2002 to November 30, 2012, compared to the Barclays U.S. Aggregate Bond Index (BAB),² the Fund's broad-based securities market index, Barclays U.S. Government/Credit Index (BGCI),³ a blend of indexes comprised of 25% Barclays Emerging Market Bond Index (BEMB)/40% Barclays U.S. Corporate High Yield 2% Issuer Capped Index (BHY2%ICI)/25% Barclays Mortgage-Backed Securities Index (BMB)/10% JPMorgan Non-Dollar Index (the “Blended Index”)⁴ and the Lipper Multi-Sector Income Funds Average (LMSIFA).⁵

Average Annual Total Returns for the Period Ended 11/30/2012

(returns reflect all applicable sales charges and contingent deferred sales charges as specified below in footnote #1)

Share Class	1 Year	5 Years	10 Years
Class A Shares	6.42%	7.02%	8.44%
Class B Shares	5.08%	6.91%	8.28%
Class C Shares	9.58%	7.19%	8.13%
Class F Shares	9.24%	7.79%	8.83%
Institutional Shares	11.60%	8.20%	9.04%

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.

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Growth of a $10,000 INVESTMENT–CLASS A SHARES

Federated Strategic Income Fund - Class A Shares	C000026757	BAB	BGCI	Blended Index	LMSIFA
11/30/2002	9,550	10,000	10,000	10,000	10,000
11/30/2003	11,679	10,024	10,639	12,051	10,098
11/30/2004	12,817	10,469	11,077	13,341	10,513
11/30/2005	13,272	10,720	11,352	13,893	10,798
11/30/2006	14,559	11,357	11,984	15,252	11,609
11/30/2007	15,299	12,044	12,728	16,029	12,159
11/30/2008	12,449	12,254	12,896	13,541	10,051
11/30/2009	17,467	13,679	14,343	19,155	13,271
11/30/2010	19,321	14,502	15,231	21,247	14,743
11/30/2011	20,195	15,303	16,122	22,287	15,061
11/30/2012	22,489	16,146	17,164	25,081	16,832

41 graphic description end -->

_■ Total returns shown include the maximum sales charge of 4.50% ($10,000 investment minus $450 sales charge = $9,550).

 

Growth of a $10,000 INVESTMENT–CLASS b SHARES

Federated Strategic Income Fund - Class B Shares	C000026758	BAB	BGCI	Blended Index	LMSIFA
11/30/2002	10,000	10,000	10,000	10,000	10,000
11/30/2003	12,140	10,024	10,639	12,051	10,098
11/30/2004	13,209	10,469	11,077	13,341	10,513
11/30/2005	13,575	10,720	11,352	13,893	10,798
11/30/2006	14,779	11,357	11,984	12,252	11,609
11/30/2007	15,415	12,044	12,728	16,029	12,159
11/30/2008	12,445	12,254	12,896	13,541	10,051
11/30/2009	17,337	13,679	14,343	19,155	13,271
11/30/2010	19,034	14,502	15,231	21,247	14,743
11/30/2011	19,896	15,303	16,122	22,287	15,061
11/30/2012	22,165	16,146	17,164	25,081	16,832

41 graphic description end -->

_■ Total returns shown include the maximum contingent deferred sales charge of 5.50%, as applicable.

 

Annual Shareholder Report

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Growth of a $10,000 INVESTMENT–CLASS C SHARES

Federated Strategic Income Fund - Class C Shares	C000026759	BAB	BGCI	Blended Index	LMSIFA
11/30/2002	10,000	10,000	10,000	10,000	10,000
11/30/2003	12,137	10,024	10,639	12,051	10,098
11/30/2004	13,222	10,469	11,077	13,341	10,513
11/30/2005	13,588	10,720	11,352	13,893	10,798
11/30/2006	14,777	11,357	11,984	15,252	11,609
11/30/2007	15,432	12,044	12,728	16,029	12,159
11/30/2008	12,464	12,254	12,896	13,541	10,051
11/30/2009	17,339	13,679	14,343	19,155	13,271
11/30/2010	19,059	14,502	15,231	21,247	14,743
11/30/2011	19,751	15,303	16,122	22,287	15,061
11/30/2012	21,841	16,146	17,164	25,081	16,832

41 graphic description end -->

_■ Total returns shown include the contingent deferred sales charge of 1.00%, as applicable.

Growth of a $10,000 INVESTMENT–CLASS F SHARES

Federated Strategic Income Fund - Class F Shares	C000026760	BAB	BGCI	Blended Index	LMSIFA
11/30/2002	9,900	10,000	10,000	10,000	10,000
11/30/2003	12,113	10,024	10,639	12,051	10,098
11/30/2004	13,281	10,469	11,077	13,341	10,513
11/30/2005	13,754	10,720	11,352	13,893	10,798
11/30/2006	15,092	11,357	11,984	15,252	11,609
11/30/2007	15,864	12,044	12,728	16,029	12,159
11/30/2008	12,899	12,254	12,896	13,541	10,051
11/30/2009	18,101	13,679	14,343	19,155	13,271
11/30/2010	20,031	14,502	15,231	21,247	14,743
11/30/2011	20,941	15,303	16,122	22,287	15,061
11/30/2012	23,305	16,146	17,164	25,081	16,832

41 graphic description end -->

_■ Total returns shown include the maximum sales charge of 1.00% ($10,000 investment minus $100 = $9,900) and a contingent deferred sales charge of 1.00%, as applicable.

Annual Shareholder Report

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Growth of a $10,000 INVESTMENT–INSTITUTIONAL SHARES⁶

Federated Strategic Income Fund - Institutional Shares	C000062222	BAB	BGCI	Blended Index	LMSIFA
11/30/2002	10,000	10,000	10,000	10,000	10,000
11/30/2003	12,229	10,024	10,639	12,051	10,098
11/30/2004	13,421	10,469	11,077	13,341	10,513
11/30/2005	13,897	10,720	11,352	13,893	10,798
11/30/2006	15,245	11,357	11,984	15,252	11,609
11/30/2007	16,020	12,044	12,728	16,029	12,159
11/30/2008	13,025	12,254	12,896	13,541	10,051
11/30/2009	18,314	13,679	14,343	19,155	13,271
11/30/2010	20,313	14,502	15,231	21,247	14,743
11/30/2011	21,287	15,303	16,122	22,287	15,061
11/30/2012	23,757	16,146	17,164	25,081	16,832

41 graphic description end -->

1	Represents a hypothetical investment of $10,000 in the Fund after deducting the applicable sales charges: For Class A Shares, the maximum sales charge of 4.50% ($10,000 investment minus $450 sales charge = $9,550); for Class B Shares, the maximum contingent deferred sales charge is 5.50% on any redemption less than one year from the purchase date; for Class C Shares, a 1.00% contingent deferred sales charge would be applied to any redemption less than one year from the purchase date; for Class F Shares, the maximum sales charge of 1.00% ($10,000 investment minus $100 sales charge = $9,900) and a contingent deferred sales charge of 1.00% would be applied on any redemption less than four years from the purchase date. The Fund's performance assumes the reinvestment of all dividends and distributions. The BAB, BGCI, the Blended Index and the LMSIFA have been adjusted to reflect the reinvestment of dividends on securities in the indexes and average.
2	The Fund's investment adviser has elected to change the Fund's broad-based securities market index to the Barclays U.S. Aggregate Bond Index (BAB) from the Barclays U.S. Government/Credit Index (BGCI). The BAB covers the investment-grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, agency mortgage pass-through securities, asset-backed securities and commercial mortgage-backed securities. The BAB 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.
3	Barclays Capital changed the name of the BGCI Index from “Barclays Capital U.S Government/Credit Index” to “Barclays U.S. Government/Credit Index.” The BGCI is comprised of approximately 5,000 issues which include: non-convertible bonds publicly issued by the U.S. government or its agencies; corporate bonds guaranteed by the U.S. government and quasi-federal corporations; and publicly issued, fixed-rate, non-convertible domestic bonds of companies in industry, public utilities and finance. The average maturity of these bonds approximates nine years. Tracked by Barclays, Inc., the index calculates total returns for 1-month, 3-month, 12-month and 10-year periods and year-to-date. The BGCI 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.

Annual Shareholder Report

6

4	Barclays Capital changed the name of the BEMB Index from “Barclays Capital Emerging Market Bond Index” to “Barclays Emerging Market Bond Index.” The Barclays Emerging Market Bond Index tracks total returns for external-currency-denominated debt instruments of the emerging markets: Brady bonds, loans, Eurobonds and U.S. dollar-denominated local market instruments. Countries covered are Argentina, Brazil, Bulgaria, Ecuador, Mexico, Morocco, Nigeria, Panama, Peru, the Philippines, Poland, Russia and Venezuela. Barclays Capital changed the name of the BHY2%ICI Index from “Barclays Capital U.S. Corporate High Yield 2% Issuer Capped Index” to “Barclays U.S. Corporate High Yield 2% Issuer Capped Index”. The Barclays U.S. Corporate High Yield 2% Issuer Capped Index is the 2% Issuer Cap component of the Barclays U.S. Corporate High Yield Bond Index. Barclays Capital changed the name of the BMB Index from “Barclays Capital Mortgage-Backed Securities Index” to “Barclays Mortgage-Backed Securities Index.” The Barclays Mortgage-Backed Securities Index is an unmanaged index composed of all fixed securities mortgage pools by GNMA, FNMA and the FHLMC, including GNMA Graduated Payment Mortgages. The JPMorgan Non-Dollar Bond Index is a total return, unmanaged trade-weighted index of over 360 government and high-grade bonds in 12 developed countries. Indexes are unmanaged and, unlike the Fund, not affected by cash flows. It is not possible to invest directly in an index.
5	The LMSIFA represents the average of the total returns reported by all of the mutual funds designated by Lipper Analytical Services, Inc. as falling into the category indicated, and is not adjusted to reflect any sales charges. However, these total returns are reported net of expenses or other fees that the SEC requires to be reflected in a Fund's performance.
6	The Fund's Institutional Shares commenced operations on January 28, 2008. The Fund offers four other classes of shares: Class A Shares, Class B Shares, Class C Shares and Class F Shares. For the period prior to the commencement of operations of the Institutional Shares, the performance information shown is for the Fund's Class A Shares. In relation to the Institutional Shares, the performance of the Class A Shares has not been adjusted to reflect the expenses of the Institutional Shares, since the Institutional Shares have a lower expense ratio than the expense ratio of the Class A Shares. The performance of the Class A Shares has been adjusted to reflect the absence of sales charges and to remove any voluntary waiver of Fund expenses related to the Class A Shares that may have occurred during the period prior to the commencement of operations of the Institutional Shares.

Annual Shareholder Report

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Portfolio of Investments Summary Table (unaudited)

At November 30, 2012, the Fund's portfolio composition¹ was as follows:

Security Type	Percentage of Total Net Assets2
Corporate Debt Securities	54.7%
Foreign Government Securities	23.7%
Mortgage-Backed Securities3	13.3%
Collateralized Mortgage Obligations	2.2%
Trade Finance Agreements	1.4%
Asset-Backed Securities	0.1%
Floating Rate Loans4	0.0%
Derivative Contracts4,5	(0.0)%
Other Security Types6	0.1%
Cash Equivalents7	5.1%
Other Assets and Liabilities—Net8	(0.6)%
TOTAL	100.0%

1	See the Fund's Prospectus and Statement of Additional Information for a description of these security types.
2	As of the date specified above, the Fund owned shares of one or more affiliated investment companies. For purposes of this table, the affiliated investment company (other than an affiliated money market mutual fund) is not treated as a single portfolio security, but rather the Fund is treated as owning a pro rata portion of each security and each other asset and liability owned by the affiliated investment company. Accordingly, the percentages of total net assets shown in the table will differ from those presented on the Portfolio of Investments.
3	For purposes of this table, Mortgage-Backed Securities include mortgage-backed securities guaranteed by Government Sponsored Entities.
4	Represents less than 0.1%.
5	Based upon net unrealized appreciation (depreciation) or value of the derivative contracts as applicable. Derivative contracts may consist of futures, forwards, options and swaps. The impact of a derivative contract on the Fund's performance may be larger than its unrealized appreciation (depreciation) or value may indicate. In many cases, the notional value or amount of a derivative contract may provide a better indication of the contract's significance to the portfolio. More complete information regarding the Fund's direct investments in derivative contracts, including unrealized appreciation (depreciation), value, and notional values or amounts of such contracts, can be found in the table at the end of the Portfolio of Investments included in this Report.
6	Other Security Types consist of common stock, warrants and preferred stock.
7	Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements.
8	Assets, other than investments in securities and derivative contracts, less liabilities. See Statement of Assets and Liabilities.

Annual Shareholder Report

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Portfolio of Investments

November 30, 2012

Principal Amount, Foreign Par Amount or Shares			Value in U.S. Dollars
		Corporate Bonds—0.3%
		Basic Industry - Chemicals—0.1%
$1,250,000	1,2	Reliance Industries Ltd., Bond, Series 144A, 8.250%, 01/15/2027	$1,675,000
		Basic Industry - Paper—0.0%
250,000	3,4,5	Pope & Talbot, Inc., 8.375%, 06/01/2013	0
247,000		Westvaco Corp., Sr. Deb., 7.500%, 06/15/2027	275,166
		TOTAL	275,166
		Consumer Cyclical - Automotive—0.0%
775,000	3,4,5	General Motors Corp., Note, Series MTN, 9.450%, 11/01/2049	0
		Financial Institutional - Banking—0.1%
1,003,961	1,2,5	Regional Diversified Fun, Series 144A, 9.250%, 3/15/2030	754,487
		Financial Institution - Finance Noncaptive—0.0%
500,000		Susa Partnership LP, 8.200%, 06/01/2017	609,772
		Financial Institution - Insurance - Life—0.0%
500,000	1	Union Central Life Ins Co, Note, Series 144A, 8.200%, 11/01/2026	580,048
		Financial Institution - Insurance - P&C—0.1%
500,000	1,2	USF&G Cap, Series 144A, 8.312%, 7/01/2046	637,648
		TOTAL CORPORATE BONDS (IDENTIFIED COST $4,227,092)	4,532,121
		International Bonds—0.2%
		Australian Dollar—0.1%
		Sovereign—0.1%
1,850,000		Australia, Government of, Series 17, 5.500%, 03/01/2017	2,102,162
		Norwegian Krone—0.1%
		Banking—0.1%
6,750,000		KFW, Foreign Gov't. Guarantee, Series EMTN, 4.000%, 12/15/2014	1,241,036
		TOTAL INTERNATIONAL BONDS (IDENTIFIED COST $3,084,509)	3,343,198
		Foreign Governments/Agencies—8.8%
		British Pound—1.0%
		Sovereign—1.0%
2,465,000	6	United Kingdom, Government, Gilt, 0.000%, 1/21/2013	3,947,511
3,410,000		United Kingdom, Government of, 4.750%, 03/07/2020	6,788,739
2,779,000		United Kingdom, Government of, Bond, 4.750%, 09/07/2015	4,988,443
		TOTAL BRITISH POUND	15,724,693

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Principal Amount, Foreign Par Amount or Shares			Value in U.S. Dollars
		Canadian Dollar—0.4%
		Sovereign—0.4%
2,000,000		Canada, Government of, 4.500%, 06/01/2015	$2,181,567
2,400,000		Canada, Government of, 4.000%, 06/01/2017	2,703,820
1,320,000		Canada, Government of, Bond, 4.000%, 06/01/2016	1,456,193
		TOTAL CANADIAN DOLLAR	6,341,580
		DANISH KRONE—0.3%
		Sovereign—0.3%
25,730,000		Denmark, Government of, 4.000%, 11/15/2015	5,022,022
		Euro—2.9%
		Sovereign—2.9%
1,550,000		Bundesrepublic Deutschland, 2.250%, 09/04/2021	2,194,055
3,670,000	6	Buoni Ordinari Del Tes, 0.000%, 2/28/2013	4,767,389
4,000,000	6	Buoni Ordinari Del Tes, 0.000%, 3/14/2013	5,194,868
3,318,000	6	Buoni Ordinari Del Tes, 0.000%, 5/14/2013	4,298,139
2,500,000		Buoni Poliennali Del Tes, Bond, 4.250%, 2/01/2015	3,401,265
1,600,000		French Treasury Note, 2.000%, 9/25/2013	2,113,510
1,340,000		Germany, Government of, Series 2003, 4.250%, 1/04/2014	1,823,427
9,800,000	6	Spain Letras Del Tesoro, 0.000%, 2/15/2013	12,709,061
7,600,000	6	Spain Letras Del Tesoro, Unsecd. Note, 0.000%, 5/17/2013	9,746,756
		TOTAL EURO	46,248,470
		HONG KONG DOLLAR—0.1%
		Sovereign—0.1%
18,500,000	6	Hong Kong T-Bills, Series 182, 0.000%, 5/15/2013	2,385,715
		Japanese Yen—3.9%
		Sovereign—3.9%
83,300,000		Japan, Government of, 0.400%, 06/20/2015	1,018,355
257,000,000		Japan, Government of, 1.600%, 12/20/2015	3,259,266
430,000,000		Japan, Government of, Bond, Series 250, 0.500%, 06/20/2013	5,227,216
240,000,000	6	Japan, Government of, Series 303, 0.000%, 8/20/2013	2,909,329
360,000,000		Japan, Government of, Sr. Unsecd. Note, Series 246, 0.800%, 12/20/2012	4,368,296
490,000,000		Japan, Government of, Sr. Unsecd. Note, Series 298, 1.300%, 12/20/2018	6,321,478
475,000,000		Japan, Government of, Sr. Unsecd. Note, Series 299, 1.300%, 3/20/2019	6,133,242
772,000,000		Japan, Government of, Sr. Unsecd. Note, Series 316, 0.100%, 5/15/2014	9,364,954

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Principal Amount, Foreign Par Amount or Shares			Value in U.S. Dollars
		Japanese Yen—continued
		Sovereign—continued
280,000,000	6	Japan, Government of, Unsecd. Note, Series 259, 0.000%, 2/20/2013	$3,395,909
270,000,000	6	Japan, Government of, Unsecd. Note, Series 266, 0.000%, 3/21/2013	3,274,345
640,000,000	6	Japan, Government of, Unsecd. Note, Series 295, 0.000%, 7/22/2013	7,758,786
399,000,000		Japan-262 (10 Year Issue), Series 262, 1.900%, 06/20/2014	4,974,386
335,000,000		Japan-309, Sr. Unsecd. Note, Series 309, 1.100%, 06/20/2020	4,270,611
		TOTAL JAPANESE YEN	62,276,173
		SINGAPORE DOLLAR—0.1%
		Sovereign—0.1%
1,240,000	6	Singapore T-Bills, Series 181, 0.000%, 2/07/2013	1,015,431
		SWEDISH KRONA—0.1%
		Sovereign—0.1%
6,250,000		Sweden, Government of, Series 1049, 4.500%, 08/12/2015	1,031,736
		TOTAL FOREIGN GOVERNMENTS/AGENCIES (IDENTIFIED COST $138,083,964)	140,045,820
		Asset-Backed SecuritIES—0.0%
		Home Equity Loan—0.0%
$8,737	1,2	125 Home Loan Owner Trust 1998-1A, B1, 9.760%, 02/15/2029 (IDENTIFIED COST $8,737)	7,284
		Collateralized Mortgage Obligations—1.4%
		Non-Agency Mortgage—0.0%
1,897	1	SMFC Trust Asset-Backed Certificates, 1997-A B1-4, 7.719%, 1/28/2027	1,659
		Commercial Mortgage—1.4%
2,500,000		Commercial Mortgage Pass-Through Certificates 2012-CR1 AM, 3.912%, 5/15/2045	2,727,308
3,900,000		Commercial Mortgage Pass-Through Certificates 2012-CR1 B, 4.612%, 5/15/2045	4,287,747
1,000,000		Commercial Mortgage Pass-Through Certificates 2012-LC4 B, 4.934%, 12/10/2044	1,126,293
2,000,000		Commercial Mortgage Pass-Through Certificates 2012-LC4, 4.063%, 12/10/2044	2,201,428
2,500,000		GS Mortgage Securities Corp. II 2012-GCJ7 AS, 4.085%, 5/10/2045	2,717,610
4,000,000		GS Mortgage Securities Corp. II 2012-GCJ7 B B, 4.740%, 5/10/2045	4,458,606
2,000,000	1,2	JPMorgan Chase Commercial Mortgage Securities 2011-C3A B, 5.013%, 2/15/2046	2,238,357
1,000,000		Morgan Stanley Capital I 2012-C4 AS, 3.773%, 3/15/2045	1,057,483

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11

Principal Amount, Foreign Par Amount or Shares			Value in U.S. Dollars
		Collateralized Mortgage Obligations—continued
		Commercial Mortgage—continued
$1,000,000		WF-RBS Commercial Mortgage Trust 2012-C6 B, 4.697%, 4/15/2045	$1,073,983
		TOTAL	21,888,815
		TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (IDENTIFIED COST $20,242,409)	21,890,474
		Mortgage-Backed Securities—0.0%
		Government National Mortgage Association—0.0%
25		Government National Mortgage Association Pool 780360, 11.000%, 30 Year, 9/15/2015 (IDENTIFIED COST $28)	25
		COMMON STOCKS—0.0%
		Automobiles—0.0%
3,126	3	General Motors Co.	80,901
785	3	Motors Liquidation Co.	15,307
		TOTAL COMMON STOCKS (IDENTIFIED COST $444,967)	96,208
		Preferred Stocks—0.0%
		Financial Institution - Brokerage—0.0%
40,000	3,4,5	Lehman Brothers Holdings, Pfd., Series D, 5.670%	400
		Financial Institution - REITs—0.0%
9,900		Prologis, Inc. Series Q PF, REIT Perpetual Pfd. Stock, Series Q, $4.27 Annual Dividend	633,055
		TOTAL PREFERRED STOCKS (IDENTIFIED COST $534,287)	633,455
		WARRANTS—0.0%
		Automotive—0.0%
2,843	3	General Motors Co., Expiration Date 7/10/2016	47,535
2,843	3	General Motors Co., Expiration Date 7/10/2019	30,050
		TOTAL WARRANTS (IDENTIFIED COST $504,965)	77,585
		MUTUAL FUNDS—88.8%7
13,325,045		Emerging Markets Fixed Income Core Fund	462,770,793
22,827,415		Federated Mortgage Core Portfolio	233,067,903
21,231,334	8	Federated Prime Value Obligations Fund, Institutional Shares, 0.15%	21,231,334
2,519,355		Federated Project and Trade Finance Core Fund	24,714,870

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Principal Amount, Foreign Par Amount or Shares		Value in U.S. Dollars
	MUTUAL FUNDS—continued7
101,811,433	High Yield Bond Portfolio	$678,064,147
	TOTAL MUTUAL FUNDS (IDENTIFIED COST $1,415,612,927)	1,419,849,047
	TOTAL INVESTMENTS—99.5% (IDENTIFIED COST $1,582,743,857)9	1,590,475,217
	OTHER ASSETS AND LIABILITIES - NET—0.5%10	8,454,102
	TOTAL NET ASSETS—100%	$1,598,929,319

At November 30, 2012, the Fund had the following outstanding futures contracts:

Description	Number of Contracts	Notional Value	Expiration Date	Unrealized Appreciation
3United States Treasury Notes 10-Year Short Futures	475	$63,479,297	March 2013	$277,270

Unrealized Appreciation on Futures Contracts is included in “Other Assets and Liabilities—Net.”

1	Denotes a restricted security that either: (a) cannot be offered for public sale without first being registered, or being able to take advantage of an exemption from registration, under the Securities Act of 1933; or (b) is subject to a contractual restriction on public sales. At November 30, 2012, these restricted securities amounted to $5,894,483, which represented 0.4% of total net assets.
2	Denotes a restricted security that may be resold without restriction to “qualified institutional buyers” as defined in Rule 144A under the Securities Act of 1933 and that the Fund has determined to be liquid under criteria established by the Fund's Board of Directors (the “Directors”). At November 30, 2012, these liquid restricted securities amounted to $5,312,776, which represented 0.3% of total net assets.
3	Non-income producing security.
4	Issuer in default.
5	Market quotations and price evaluations are not available. Fair value determined in accordance with procedures established by and under the general supervision of the Directors.
6	Zero coupon bond, reflects effective rate at time of purchase.
7	Affiliated holdings.
8	7-Day net yield.
9	The cost of investments for federal tax purposes amounts to $1,606,464,394.
10	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 November 30, 2012.

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, including investment companies with daily net asset values, if applicable.

Level 2— other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Also includes securities valued at amortized cost.

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13

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 November 30, 2012, in valuing the Fund's assets carried at fair value:

Valuation Inputs
	Level 1— Quoted Prices and Investments in Mutual Funds1	Level 2— Other Significant Observable Inputs	Level 3— Significant Unobservable Inputs	Total
Debt Securities:
U.S. Corporate Bonds	$—	$3,777,634	$754,4872	$4,532,121
International Bonds	—	3,343,198	—	3,343,198
Foreign Governments/Agencies	—	140,045,820	—	140,045,820
Asset-Backed Securities	—	—	7,2842	7,284
Collateralized Mortgage Obligations	—	21,888,815	1,6592	21,890,474
Mortgage-Backed Securities	—	25	—	25
Equity Securities:
Common Stocks
Domestic	96,208	—	—	96,208
Preferred Stocks
Domestic	633,055	—	4003	633,455
Warrants	77,585	—	—	77,585
Mutual Funds	1,395,134,177	24,714,870	—	1,419,849,047
TOTAL SECURITIES	$1,395,941,025	$193,770,362	$763,830	$1,590,475,217
OTHER FINANCIAL INSTRUMENTS4	$277,270	$—	$—	$277,270

1	Emerging Markets Fixed Income Core Fund, Federated Mortgage Core Portfolio and High Yield Bond Portfolio are affiliated holdings offered only to registered investment companies and other accredited investors.
2	Includes $1,051,691 of U.S. corporate bonds, $9,355 of an asset-backed security and $5,529 of a collateralized mortgage obligation security transferred from Level 2 to Level 3 because the Adviser determined, based on an analysis of the valuation inputs, that these securities more appropriately meet the definition of Level 3. These transfers represent the value of the securities at the beginning of the period.
3	Shares were exchanged in conjunction with a corporate action for shares of another security whose fair value is determined using valuation techniques utilizing unobservable market data due to observable market data being unavailable.
4	Other financial instruments include futures contracts.

The following acronyms are used throughout this portfolio:

EMTN	—Euro Medium Term Note
MTN	—Medium Term Note
REIT	—Real Estate Investment Trust

See Notes which are an integral part of the Financial Statements

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Financial Highlights–Class A Shares

(For a Share Outstanding Throughout Each Period)

Year Ended November 30	2012	2011	2010	2009	2008
Net Asset Value, Beginning of Period	$8.96	$9.10	$8.75	$6.72	$8.83
Income From Investment Operations:
Net investment income	0.471	0.531	0.561	0.541	0.511
Net realized and unrealized gain (loss) on investments, futures contracts, swap contracts and foreign currency transactions	0.53	(0.12)	0.34	2.06	(2.06)
TOTAL FROM INVESTMENT OPERATIONS	1.00	0.41	0.90	2.60	(1.55)
Less Distributions:
Distributions from net investment income	(0.49)	(0.55)	(0.55)	(0.57)	(0.51)
Distributions from net realized gain on investments, futures contracts, swap contracts and foreign currency transactions	—	—	—	—	(0.05)
TOTAL DISTRIBUTIONS	(0.49)	(0.55)	(0.55)	(0.57)	(0.56)
Net Asset Value, End of Period	$9.47	$8.96	$9.10	$8.75	$6.72
Total Return2	11.40%	4.52%	10.61%	40.31%	(18.63)%
Ratios to Average Net Assets:
Net expenses	1.26%	1.26%	1.26%	1.27%	1.28%
Net investment income	5.10%	5.77%	6.31%	6.92%	6.02%
Expense waiver/reimbursement3	0.06%	0.07%	0.08%	0.10%	0.08%
Supplemental Data:
Net assets, end of period (000 omitted)	$813,104	$668,477	$632,690	$582,883	$427,157
Portfolio turnover	7%	34%	25%	27%	28%

1	Per share numbers have been calculated using the average shares method.
2	Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable.
3	This expense decrease is reflected in both the net expense and the net investment income ratios shown above.

See Notes which are an integral part of the Financial Statements

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Financial Highlights–Class B Shares

(For a Share Outstanding Throughout Each Period)

Year Ended November 30	2012	2011	2010	2009	2008
Net Asset Value, Beginning of Period	$8.95	$9.10	$8.74	$6.71	$8.82
Income From Investment Operations:
Net investment income	0.401	0.461	0.491	0.481	0.441
Net realized and unrealized gain (loss) on investments, futures contracts, swap contracts and foreign currency transactions	0.53	(0.13)	0.35	2.06	(2.06)
TOTAL FROM INVESTMENT OPERATIONS	0.93	0.33	0.84	2.54	(1.62)
Less Distributions:
Distributions from net investment income	(0.42)	(0.48)	(0.48)	(0.51)	(0.44)
Distributions from net realized gain on investments, futures contracts, swap contracts and foreign currency transactions	—	—	—	—	(0.05)
TOTAL DISTRIBUTIONS	(0.42)	(0.48)	(0.48)	(0.51)	(0.49)
Net Asset Value, End of Period	$9.46	$8.95	$9.10	$8.74	$6.71
Total Return2	10.58%	3.63%	9.91%	39.31%	(19.27)%
Ratios to Average Net Assets:
Net expenses	2.01%	2.01%	2.01%	2.02%	2.03%
Net investment income	4.36%	5.03%	5.55%	6.23%	5.23%
Expense waiver/reimbursement3	0.06%	0.07%	0.08%	0.10%	0.08%
Supplemental Data:
Net assets, end of period (000 omitted)	$126,636	$123,676	$161,508	$185,180	$172,037
Portfolio turnover	7%	34%	25%	27%	28%

1	Per share numbers have been calculated using the average shares method.
2	Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable.
3	This expense decrease is reflected in both the net expense and the net investment income ratios shown above.

See Notes which are an integral part of the Financial Statements

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Financial Highlights–Class C Shares

(For a Share Outstanding Throughout Each Period)

Year Ended November 30	2012	2011	2010	2009	2008
Net Asset Value, Beginning of Period	$8.95	$9.10	$8.74	$6.72	$8.83
Income From Investment Operations:
Net investment income	0.401	0.461	0.501	0.481	0.441
Net realized and unrealized gain (loss) on investments, futures contracts, swap contracts and foreign currency transactions	0.53	(0.13)	0.34	2.05	(2.06)
TOTAL FROM INVESTMENT OPERATIONS	0.93	0.33	0.84	2.53	(1.62)
Less Distributions:
Distributions from net investment income	(0.42)	(0.48)	(0.48)	(0.51)	(0.44)
Distributions from net realized gain on investments, futures contracts, swap contracts and foreign currency transactions	—	—	—	—	(0.05)
TOTAL DISTRIBUTIONS	(0.42)	(0.48)	(0.48)	(0.51)	(0.49)
Net Asset Value, End of Period	$9.46	$8.95	$9.10	$8.74	$6.72
Total Return2	10.58%	3.63%	9.92%	39.12%	(19.23)%
Ratios to Average Net Assets:
Net expenses	2.01%	2.01%	2.01%	2.02%	2.02%
Net investment income	4.35%	5.02%	5.57%	6.15%	5.29%
Expense waiver/reimbursement3	0.06%	0.07%	0.08%	0.10%	0.08%
Supplemental Data:
Net assets, end of period (000 omitted)	$312,701	$244,083	$222,727	$178,659	$117,202
Portfolio turnover	7%	34%	25%	27%	28%

1	Per share numbers have been calculated using the average shares method.
2	Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable.
3	This expense decrease is reflected in both the net expense and the net investment income ratios shown above.

See Notes which are an integral part of the Financial Statements

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Financial Highlights–Class F Shares

(For a Share Outstanding Throughout Each Period)

Year Ended November 30	2012	2011	2010	2009	2008
Net Asset Value, Beginning of Period	$8.92	$9.06	$8.71	$6.69	$8.80
Income From Investment Operations:
Net investment income	0.471	0.521	0.561	0.541	0.501
Net realized and unrealized gain (loss) on investments, futures contracts, swap contracts and foreign currency transactions	0.52	(0.11)	0.34	2.05	(2.05)
TOTAL FROM INVESTMENT OPERATIONS	0.99	0.41	0.90	2.59	(1.55)
Less Distributions:
Distributions from net investment income	(0.49)	(0.55)	(0.55)	(0.57)	(0.51)
Distributions from net realized gain on investments, futures contracts, swap contracts and foreign currency transactions	—	—	—	—	(0.05)
TOTAL DISTRIBUTIONS	(0.49)	(0.55)	(0.55)	(0.57)	(0.56)
Net Asset Value, End of Period	$9.42	$8.92	$9.06	$8.71	$6.69
Total Return2	11.34%	4.54%	10.66%	40.33%	(18.69)%
Ratios to Average Net Assets:
Net expenses	1.26%	1.26%	1.26%	1.27%	1.27%
Net investment income	5.09%	5.76%	6.32%	6.91%	6.04%
Expense waiver/reimbursement3	0.06%	0.07%	0.13%	0.15%	0.21%
Supplemental Data:
Net assets, end of period (000 omitted)	$86,126	$59,578	$52,015	$41,233	$28,724
Portfolio turnover	7%	34%	25%	27%	28%

1	Per share numbers have been calculated using the average shares method.
2	Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable.
3	This expense decrease is reflected in both the net expense and the net investment income ratios shown above.

See Notes which are an integral part of the Financial Statements

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Financial Highlights–Institutional Shares

(For a Share Outstanding Throughout Each Period)

	2012	Year Ended November 30,			Period Ended 11/30/20081
		2011	2010	2009
Net Asset Value, Beginning of Period	$8.93	$9.07	$8.72	$6.70	$8.72
Income From Investment Operations:
Net investment income	0.492	0.542	0.592	0.542	0.462
Net realized and unrealized gain (loss) on investments, futures contracts, swap contracts and foreign currency transactions	0.52	(0.11)	0.33	2.07	(2.04)
TOTAL FROM INVESTMENT OPERATIONS	1.01	0.43	0.92	2.61	(1.58)
Less Distributions:
Distributions from net investment income	(0.51)	(0.57)	(0.57)	(0.59)	(0.44)
Net Asset Value, End of Period	$9.43	$8.93	$9.07	$8.72	$6.70
Total Return3	11.60%	4.80%	10.91%	40.61%	(18.87)%
Ratios to Average Net Assets:
Net expenses	1.01%	1.01%	1.01%	1.02%	1.02%4
Net investment income	5.33%	5.97%	6.63%	6.78%	6.78%4
Expense waiver/reimbursement5	0.06%	0.07%	0.08%	0.09%	0.08%4
Supplemental Data:
Net assets, end of period (000 omitted)	$260,363	$146,274	$72,035	$12,839	$1,663
Portfolio turnover	7%	34%	25%	27%	28%6

1	Reflects operations for the period from January 28, 2008 (date of initial investment) to November 30, 2008.
2	Per share numbers have been calculated using the average shares method.
3	Based on net asset value. Total returns for periods of less than one year are not annualized.
4	Computed on an annualized basis.
5	This expense decrease is reflected in both the net expense and the net investment income ratios shown above.
6	Portfolio turnover is calculated at the Fund level. Percentage indicated was calculated for the year ended November 30, 2008.

See Notes which are an integral part of the Financial Statements

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19

Statement of Assets and Liabilities

November 30, 2012

Assets:
Total investment in securities, at value including $1,419,849,047 of investment in affiliated holdings (Note 5) (identified cost $1,582,743,857)		$1,590,475,217
Cash denominated in foreign currencies (identified cost $62,740)		62,882
Restricted cash (Note 2)		522,500
Income receivable		822,195
Income receivable from affiliated issuers		6,325,615
Receivable for investments sold		3,737
Receivable for shares sold		4,948,021
Receivable for daily variation margin		51,953
Other assets		1,545,000
TOTAL ASSETS		1,604,757,120
Liabilities:
Payable for investments purchased	$1,820,500
Payable for shares redeemed	2,264,795
Income distribution payable	817,723
Payable for transfer and dividend disbursing agent fees and expenses	242,961
Payable for Directors'/Trustees' fees	1,922
Payable for distribution services fee (Note 5)	267,683
Payable for shareholder services fee (Note 5)	269,192
Accrued expenses	143,025
TOTAL LIABILITIES		5,827,801
Net assets for 169,060,002 shares outstanding		$1,598,929,319
Net Assets Consist of:
Paid-in capital		$1,660,202,359
Net unrealized appreciation of investments, futures contracts and translation of assets and liabilities in foreign currency		8,008,965
Accumulated net realized loss on investments, futures contracts, swap contracts and foreign currency transactions		(70,164,853)
Undistributed net investment income		882,848
TOTAL NET ASSETS		$1,598,929,319

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Statement of Assets and Liabilities–continued

Net Asset Value, Offering Price and Redemption Proceeds Per Share
Class A Shares:
Net asset value per share ($813,103,529 ÷ 85,874,430 shares outstanding), $0.001 par value, 1,000,000,000 shares authorized	$9.47
Offering price per share (100/95.50 of $9.47)	$9.92
Redemption proceeds per share	$9.47
Class B Shares:
Net asset value per share ($126,636,134 ÷ 13,388,323 shares outstanding), $0.001 par value, 2,000,000,000 shares authorized	$9.46
Offering price per share	$9.46
Redemption proceeds per share (94.50/100 of $9.46)	$8.94
Class C Shares:
Net asset value per share ($312,701,449 ÷ 33,052,323 shares outstanding), $0.001 par value, 1,000,000,000 shares authorized	$9.46
Offering price per share	$9.46
Redemption proceeds per share (99.00/100 of $9.46)	$9.37
Class F Shares:
Net asset value per share ($86,125,703 ÷ 9,140,736 shares outstanding), $0.001 par value, 1,000,000,000 shares authorized	$9.42
Offering price per share (100/99.00 of $9.42)	$9.52
Redemption proceeds per share (99.00/100 of $9.42)	$9.33
Institutional Shares:
Net asset value per share ($260,362,504 ÷ 27,604,190 shares outstanding), $0.001 par value, 1,000,000,000 shares authorized	$9.43
Offering price per share	$9.43
Redemption proceeds per share	$9.43

See Notes which are an integral part of the Financial Statements

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21

Statement of Operations

Year Ended November 30, 2012

Investment Income:
Dividends (including $62,753,970 received from affiliated holdings (Note 5))		$62,767,679
Interest		3,140,139
Investment income allocated from affiliated partnership (Note 5)		25,275,539
TOTAL INCOME		91,183,357
Expenses:
Investment adviser fee (Note 5)	$12,182,127
Administrative fee (Note 5)	1,118,194
Custodian fees	89,406
Transfer and dividend disbursing agent fees and expenses	1,430,972
Directors'/Trustees' fees	13,317
Auditing fees	26,400
Legal fees	9,379
Portfolio accounting fees	189,715
Distribution services fee (Note 5)	3,049,028
Shareholder services fee (Note 5)	3,048,091
Account administration fee (Note 2)	5,723
Share registration costs	155,166
Printing and postage	79,577
Insurance premiums	5,764
Taxes	105,435
Miscellaneous	9,594
TOTAL EXPENSES	21,517,888

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Statement of Operations–continued

Waivers and Reimbursements (Note 5):
Waiver/reimbursement of investment adviser fee	$(849,867)
Waiver of administrative fee	(19,719)
Reimbursement of shareholder services fee	(200)
TOTAL WAIVERS AND REIMBURSEMENTS		$(869,786)
Net expenses			$20,648,102
Net investment income			70,535,255
Realized and Unrealized Gain (Loss) on Investments, Futures Contracts, Swap Contracts and Foreign Currency Transactions:
Net realized loss on investments and foreign currency transactions (including realized loss of $1,741,203 on sales of investments in affiliated holdings (Note 5))			(800,987)
Net realized loss on futures contracts			(3,900,048)
Net realized loss on swap contracts			(5,725,500)
Net realized gain on investments allocated from affiliated partnership (Note 5)			9,453,018
Realized gain distribution from affiliated investment company shares (Note 5)			112,336
Net change in unrealized depreciation of investments and translation of assets and liabilities in foreign currency transactions			78,957,023
Net change in unrealized appreciation of futures contracts			(130,691)
Net realized and unrealized gain on investments, futures contracts, swap contracts and foreign currency transactions			77,965,151
Change in net assets resulting from operations			$148,500,406

See Notes which are an integral part of the Financial Statements

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Statement of Changes in Net Assets

Year Ended November 30	2012	2011
Increase (Decrease) in Net Assets
Operations:
Net investment income	$70,535,255	$67,436,388
Net realized loss on investments, futures contracts, swap contracts and foreign currency transactions	(861,181)	(714,700)
Net change in unrealized appreciation/depreciation of investments, futures contracts and translation of assets and liabilities in foreign currency	78,826,332	(17,457,648)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS	148,500,406	49,264,040
Distributions to Shareholders:
Distributions from net investment income
Class A Shares	(38,962,571)	(39,050,584)
Class B Shares	(5,612,151)	(7,485,436)
Class C Shares	(12,632,733)	(12,203,723)
Class F Shares	(3,750,989)	(3,385,760)
Institutional Shares	(11,486,171)	(7,704,554)
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS	(72,444,615)	(69,830,057)
Share Transactions:
Proceeds from sale of shares	512,530,752	467,463,236
Net asset value of shares issued to shareholders in payment of distributions declared	63,271,916	58,968,805
Cost of shares redeemed	(295,017,624)	(404,751,497)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS	280,785,044	121,680,544
Change in net assets	356,840,835	101,114,527
Net Assets:
Beginning of period	1,242,088,484	1,140,973,957
End of period (including undistributed net investment income of $882,848 and $251,614, respectively)	$1,598,929,319	$1,242,088,484

See Notes which are an integral part of the Financial Statements

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Notes to Financial Statements

November 30, 2012

1. ORGANIZATION

Federated Fixed Income Securities, Inc. (the “Corporation”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Corporation consists of two portfolios. The financial statements included herein are only those of Federated Strategic Income 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 five classes of shares: Class A Shares, Class B Shares, Class C Shares, Class F Shares and Institutional Shares. All shares of the Fund have equal rights with respect to voting, except on class-specific matters. The investment objective of the Fund is to seek a high level of current income.

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:

■	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 Directors.
■	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.
■	Shares of other mutual funds are valued based upon their reported NAVs.
■	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.
■	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 Directors.
■	For securities that are fair valued in accordance with procedures established by and under the general supervision of the Directors, 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.

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.

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Fair Valuation and Significant Events Procedures

The Directors have appointed a Valuation Committee comprised of officers of the Fund, Federated Investment Management Company (“Adviser”) and the Adviser's affiliated companies to determine fair value of securities and in overseeing the calculation of the NAV. The Directors have also authorized the use of pricing services recommended by the Valuation Committee to provide fair value evaluations of the current value of certain investments for purposes of calculating the NAV. The Valuation Committee employs various methods for reviewing third-party pricing service evaluations including periodic reviews of third-party pricing services' policies, procedures and valuation methods (including key inputs and assumptions), transactional back-testing, comparisons of evaluations of different pricing services and review of price challenges by the Adviser based on recent market activity. In the event that market quotations and price evaluations are not available for an investment, the Valuation Committee determines the fair value of the investment in accordance with procedures adopted by the Directors. The Directors periodically review and approve the fair valuations made by the Valuation Committee and any changes made to the procedures.

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 Directors.

The Directors 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 contracts;
■	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.

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The Directors 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 Directors.

Repurchase Agreements

The Fund may invest in repurchase agreements for short-term liquidity purposes. 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.

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.

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Investment Income, Gains and Losses, Expenses and Distributions

Investment transactions are accounted for on a trade-date basis. Realized gains and losses from investment transactions are recorded on an identified-cost basis. Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Foreign dividends are recorded on the ex-dividend date or when the Fund is informed of the ex-dividend date. Distributions of net investment income are declared and paid monthly. Non-cash dividends included in dividend income, if any, are recorded at fair value. The Fund invests in Emerging Markets Fixed Income Core Fund (EMCORE), a portfolio of Federated Core Trust II, L.P., which is a limited partnership established under the laws of the state of Delaware. The Fund records daily its proportionate share of income, expenses, realized and unrealized gains and losses from EMCORE. 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 Class A Shares, Class B Shares, Class C Shares, Class F Shares and Institutional Shares may bear distribution services fees, shareholder services fees and account administration fees unique to those classes. For the year ended November 30, 2012, account administration fees for the Fund were as follows:

	Account Administration Fees Incurred
Class A Shares	$2,376
Class C Shares	3,347
TOTAL	$5,723

Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses.

Premium and Discount Amortization/Paydown Gains and Losses

All premiums and discounts on fixed-income securities, other than mortgage-backed securities, are amortized/accreted using the effective interest rate method. Gains and losses realized on principal payment of mortgage-backed securities (paydown gains and losses) are classified as part of investment income.

Federal Taxes

It is the Fund's policy to comply with the Subchapter M provision of the Internal Revenue Code (The “Code”) and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal income tax is necessary. As of and during the year ended November 30, 2012, 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 November 30, 2012, tax years 2009 through 2012 remain subject to examination by the Fund's major tax jurisdictions, which include the United States of America, the state of Maryland and the Commonwealth of Pennsylvania.

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.

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Other Taxes

As an open-end management investment company incorporated in the state of Maryland but domiciled in the Commonwealth of Pennsylvania, the Fund is subject to the Pennsylvania Franchise Tax. This franchise tax is assessed annually on the value of the Fund, as represented by average net assets for the tax year.

When-Issued and Delayed Delivery Transactions

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

Swap Contracts

Swap contracts involve two parties that agree to exchange the returns (or the differential in rates of return) earned or realized on particular predetermined investments, instruments, indices or other measures. The gross returns to be exchanged or “swapped” between parties are generally calculated with respect to a “notional amount” for a predetermined period of time. The Fund enters into interest rate, total return, credit default, currency and other swap agreements. Risks may arise upon entering into swap agreements from the potential inability of the counterparties to meet the terms of their contract from unanticipated changes in the value of the swap agreement.

The Fund uses credit default swaps to manage exposure to a given issuer or sector by either selling protection to increase exposure, or buying protection to reduce exposure. The “buyer” in a credit default swap is obligated to pay the “seller” a periodic stream of payments over the term of the contract provided that no event of default on an underlying reference obligation has occurred. If an event of default occurs, the seller must pay the buyer the full notional value, or the “par value”, of the reference obligation in exchange for the reference obligation. In connection with these agreements, securities may be identified as collateral in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default or bankruptcy/insolvency. Recovery values are assumed by market makers considering either industry standard recovery rates or entity specific factors and considerations until a credit event occurs. If a credit event has occurred, the recovery value is typically determined by a facilitated auction whereby a minimum number of allowable broker bids, together with a specific valuation method, are used to calculate the settlement value. The Fund's maximum risk of loss from counterparty credit risk, either as the protection buyer or as the protection seller, is the fair value of the contract. This risk is mitigated by having a master netting arrangement between the Fund and the counterparty and by the posting of collateral by the counterparty to the Fund to cover the Fund's exposure to the counterparty.

Upfront payments received or paid by the Fund will be reflected as an asset or liability on the Statement of Assets and Liabilities. Changes in the value of swap contracts are included in “Swaps, at value” on the Statement of Assets and Liabilities, and periodic payments are reported as “Net realized gain (loss) on swap contracts” in the Statement of Operations.

At November 30, 2012, the Fund had no outstanding swap contracts.

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The average notional amount of Swap contracts held by the Fund throughout the period was $24,369,231. This is based on amounts held as of each month-end throughout the fiscal period.

Futures Contracts

The Fund purchases and sells financial futures contracts to manage cash flows, enhance yield and to potentially reduce transaction costs. Upon entering into a financial futures contract with a broker, the Fund is required to deposit in a segregated account a specified amount of cash or U.S. government securities which is shown as Restricted Cash in the Statement of Assets and Liabilities. Futures contracts are valued daily and unrealized gains or losses are recorded in a “variation margin” account. Daily, the Fund receives from or pays to the broker a specified amount of cash based upon changes in the variation margin account. When a contract is closed, the Fund recognizes a realized gain or loss. Futures contracts have market risks, including the risk that the change in the value of the contract may not correlate with the changes in the value of the underlying securities. There is minimal counterparty risk to the Fund since futures are exchange traded and the exchange's clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default.

Futures contracts outstanding at period end are listed after the Fund's Portfolio of Investments.

The average notional value of long and short futures contracts held by the Fund throughout the period was $4,883,023 and $100,085,935, respectively. This is based on amounts held as of each month-end throughout the fiscal period.

Foreign Exchange Contracts

The Fund enters into foreign exchange contracts for the delayed delivery of securities or foreign currency exchange transactions. The Fund enters into foreign exchange contracts to protect assets against adverse changes in foreign currency exchange rates or exchange control regulations. Purchased contracts are used to acquire exposure to foreign currencies, whereas, contracts to sell are used to hedge the Fund's securities against currency fluctuations. Risks may arise upon entering into these transactions from the potential inability of counterparties to meet the terms of their commitments and from unanticipated movements in security prices or foreign exchange rates. The foreign exchange contracts are adjusted by the daily exchange rate of the underlying currency and any gains or losses are recorded for financial statement purposes as unrealized until the settlement date.

At November 30, 2012, the Fund had no outstanding foreign exchange contracts.

The average value at settlement date payable and receivable of foreign exchange contracts purchased and sold by the Fund throughout the period was $30,831 and $63,017, respectively. This is based on the contracts held as of each month-end throughout the fiscal period.

Foreign Currency Translation

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

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

Securities Lending

The Fund participates in a securities lending program providing for the lending of corporate bonds and government securities to qualified brokers. The Fund normally receives cash collateral for securities loaned that is invested in an affiliated money market fund or in short-term securities including repurchase agreements. Collateral is maintained at a minimum level of 100% of the market value of investments loaned, plus interest, if applicable. In accordance with the Fund's securities lending agreement, the market value of securities on loan is determined each day at the close of business and any additional collateral required to cover the value of securities on loan is delivered to the Fund on the next business day. Earnings on collateral are allocated between the borrower of the security, the securities lending agent, as a fee for its services under the program, and the Fund, according to agreed-upon rates.

As of November 30, 2012, the Fund had no outstanding securities on loan.

Restricted Securities

The Fund may purchase securities which are considered restricted. Restricted securities are securities that either: (a) cannot be offered for public sale without first being registered, or being able to take advantage of an exemption from registration, under the Securities Act of 1933; or (b) are subject to contractual restrictions on public sales. In some cases, when a security cannot be offered for public sale without first being registered, the issuer of the restricted security has agreed to register such securities for resale, at the issuer's expense, either upon demand by the Fund or in connection with another registered offering of the securities. Many such restricted securities may be resold in the secondary market in transactions exempt from registration. Restricted securities may be determined to be liquid under criteria established by the Directors. The Fund will not incur any registration costs upon such resales. The Fund's restricted securities are valued at the price provided by dealers in the secondary market or, if no market prices are available, at the fair value as determined in accordance with procedures established by and under the general supervision of the Directors.

Additional information on restricted securities, excluding securities purchased under Rule 144A that have been deemed liquid by the Directors, if applicable, held at November 30, 2012, is as follows:

Security	Acquisition Date	Cost	Market Value
SMFC Trust Asset-Backed Certificates, 1997-A B1-4, 7.719%, 1/28/2027	2/4/1998	$13,492	$1,659
Union Central Life Ins Co, Note, Series 144A, 8.200%, 11/01/2026	10/31/1996	$497,390	$580,048

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Additional Disclosure Related to Derivative Instruments

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	$277,270*

* Includes cumulative appreciation 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.

The Effect of Derivative Instruments on the Statement of Operations for the Year Ended November 30, 2012

Amount of Realized Gain or (Loss) on Derivatives Recognized in Income
	Credit Default Swaps	Futures	Forward Currency Contracts	Total
Interest rate contracts	$—	$(3,900,048)	$—	$(3,900,048)
Foreign exchange contracts	—	—	(96,605)	(96,605)
Credit contracts	(5,725,500)	—	—	(5,725,500)
TOTAL	$(5,725,500)	$(3,900,048)	$(96,605)	$(9,722,153)

Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income
	Futures	Forward Currency Contracts	Total
Interest rate contracts	$(130,691)	$—	$(130,691)
Foreign exchange contracts	—	424,848	424,848
TOTAL	$(130,691)	$424,848	$294,157

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.

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3. CAPITAL STOCK

The following tables summarize capital stock activity:

Year Ended November 30	2012		2011
Class A Shares:	Shares	Amount	Shares	Amount
Shares sold	24,492,263	$227,430,763	23,997,876	$219,254,772
Shares issued to shareholders in payment of distributions declared	3,889,824	35,961,855	3,748,673	34,140,672
Shares redeemed	(17,118,318)	(158,788,188)	(22,648,346)	(206,636,790)
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS	11,263,769	$104,604,430	5,098,203	$46,758,654

Year Ended November 30	2012		2011
Class B Shares:	Shares	Amount	Shares	Amount
Shares sold	3,264,411	$30,275,929	2,693,498	$24,604,652
Shares issued to shareholders in payment of distributions declared	536,906	4,956,930	688,748	6,272,133
Shares redeemed	(4,226,046)	(39,135,223)	(7,325,487)	(67,071,769)
NET CHANGE RESULTING FROM CLASS B SHARE TRANSACTIONS	(424,729)	$(3,902,364)	(3,943,241)	$(36,194,984)

Year Ended November 30	2012		2011
Class C Shares:	Shares	Amount	Shares	Amount
Shares sold	9,621,758	$89,215,533	7,577,951	$69,200,552
Shares issued to shareholders in payment of distributions declared	1,189,443	10,991,193	1,109,711	10,101,541
Shares redeemed	(5,016,817)	(46,573,737)	(5,913,020)	(53,978,768)
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS	5,794,384	$53,632,989	2,774,642	$25,323,325

Year Ended November 30	2012		2011
Class F Shares:	Shares	Amount	Shares	Amount
Shares sold	2,949,043	$27,315,209	1,586,245	$14,415,704
Shares issued to shareholders in payment of distributions declared	383,801	3,535,438	327,725	2,971,801
Shares redeemed	(871,444)	(8,037,741)	(973,485)	(8,860,838)
NET CHANGE RESULTING FROM CLASS F SHARE TRANSACTIONS	2,461,400	$22,812,906	940,485	$8,526,667

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Year Ended November 30	2012		2011
Institutional Shares:	Shares	Amount	Shares	Amount
Shares sold	14,961,857	$138,293,318	15,360,982	$139,987,556
Shares issued to shareholders in payment of distributions declared	847,927	7,826,500	603,675	5,482,658
Shares redeemed	(4,588,614)	(42,482,735)	(7,522,554)	(68,203,332)
NET CHANGE RESULTING FROM INSTITUTIONAL SHARE TRANSACTIONS	11,221,170	$103,637,083	8,442,103	$77,266,882
NET CHANGE RESULTING FROM TOTAL FUND SHARE TRANSACTIONS	30,315,994	$280,785,044	13,312,192	$121,680,544

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 foreign currency transactions, swap income, short-term distributions from affiliated funds, discount accretion/premium amortization on debt securities, litigation payments and partnership income.

For the year ended November 30, 2012, 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)
$(72,312)	$2,540,594	$(2,468,282)

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 November 30, 2012 and 2011, was as follows:

	2012	2011
Ordinary income	$72,444,615	$69,830,057

As of November 30, 2012, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income	$882,848
Net unrealized depreciation	$(15,988,832)
Capital loss carryforwards	$(46,167,056)

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, partnership income, discount accretion/premium amortization on debt securities and defaulted bond deferrals.

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At November 30, 2012, the cost of investments for federal tax purposes was $1,606,464,394. The net unrealized depreciation of investments for federal tax purposes excluding: a) any unrealized appreciation/depreciation resulting from the translation from FCs to U.S. dollars of assets and liabilities other than investments in securities, and b) futures contracts was $15,989,177. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $31,834,601 and net unrealized depreciation from investments for those securities having an excess of cost over value of $47,823,778.

At November 30, 2012, the Fund had a capital loss carryforward of $46,167,056 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, thereby reducing 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, a net capital loss incurred in taxable years beginning on or before December 22, 2010 is characterized as short-term and may be carried forward for a maximum of eight tax years (“Carryforward Limit”), whereas a net capital loss incurred in taxable years beginning after December 22, 2010 retains its character as either short-term or long-term, does not expire and is required to be utilized prior to the losses which have a Carryforward Limit.

The following schedule summarizes the Fund's capital loss carryforwards and expiration years:

Expiration Year	Short-Term	Long-Term	Total
No expiration	$1,061,843	-	$1,061,843
2016	$17,683,941	NA	$17,683,941
2017	$27,421,272	NA	$27,421,272

5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

The advisory agreement between the Fund and the Adviser provides for an annual fee equal to 0.85% of the Fund's average daily net assets. Subject to the terms described in the Expense Limitation note, the Adviser may voluntarily choose to waive any portion of its fee. For the year ended November 30, 2012, the Adviser voluntarily waived $819,731 of its fee.

Administrative Fee

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

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

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Prior to September 1, 2012, the administrative fee received during any fiscal year was 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. For the year ended November 30, 2012, FAS waived $19,719 of its fee. The net fee paid to FAS was 0.076% of average daily net assets of the Fund.

Distribution Services Fee

The Fund has adopted a Distribution Plan (the “Plan”) pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will compensate Federated Securities Corp. (FSC), the principal distributor, from the daily net assets of the Fund's Class B Shares, Class C Shares and Class F 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 B Shares	0.75%
Class C Shares	0.75%
Class F Shares	0.05%

Subject to the terms described in the Expense Limitation note, FSC may voluntarily choose to waive any portion of its fee. For the year ended November 30, 2012, distribution services fees for the Fund were as follows:

	Distribution Services Fees Incurred
Class B Shares	$935,173
Class C Shares	2,113,855
TOTAL	$3,049,028

For the year ended November 30, 2012, the Fund's Class F Shares did not incur a distribution services fee; however, it may begin to incur this fee upon approval of the Directors. When FSC receives fees, it may pay some or all of them to financial intermediaries whose customers purchase shares. For the year ended November 30, 2012, FSC retained $745,379 of fees paid by the Fund.

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 November 30, 2012, FSC retained $284,639 in sales charges from the sale of Class A Shares. FSC also retained $125,862 of CDSC relating to redemptions of Class B Shares, $31,351 relating to redemptions of Class C Shares and $16,914 relating to redemptions of Class F Shares.

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Shareholder Services Fee

The Fund may pay fees (“ Service Fees”) up to 0.25% of the average daily net assets of the Fund's Class A Shares, Class B Shares, Class C Shares and Class F Shares to financial intermediaries or to Federated Shareholder Services Company (FSSC) for providing services to shareholders and maintaining shareholder accounts. Financial intermediaries may include a company affiliated with management of Federated Investors, Inc. Subject to the terms described in the Expense Limitation note, FSSC may voluntarily reimburse the Fund for Service Fees. For the year ended November 30, 2012, Service Fees for the Fund were as follows:

	Service Fees Incurred	Service Fees Reimbursed
Class A Shares	$1,856,598	$—
Class B Shares	311,724	—
Class C Shares	701,272	(200)
Class F Shares	178,497	—
TOTAL	$3,048,091	$(200)

For the year ended November 30, 2012, FSSC received $56,765 of fees paid by the Fund.

Expense Limitation

The Adviser and its affiliates (which may include FSC, FAS and FSSC) have voluntarily agreed to waive their fees and/or reimburse expenses so that the total annual fund operating expenses (as shown in the financial highlights, but excluding expenses allocated from affiliated partnerships) paid by the Fund's Class A Shares, Class B Shares, Class C Shares, Class F Shares and Institutional Shares (after the voluntary waivers and/or reimbursements) will not exceed 1.26%, 2.01%, 2.01%, 1.26% and 1.01% (the “Fee Limit”), respectively, up to but not including the later of (the “Termination Date”): (a) February 1, 2014; or (b) the date of the Fund's next effective Prospectus. While the Adviser and its affiliates currently do not anticipate terminating or increasing these arrangements prior to the Termination Date, these arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the agreement of the Directors.

General

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

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Transactions Involving Affiliated Holdings

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 November 30, 2012, the Adviser reimbursed $30,136. Transactions involving affiliated holdings during the year ended November 30, 2012, were as follows:

	Emerging Markets Fixed Income Core Fund	Federated Mortgage Core Portfolio	Federated Prime Value Obligations Fund, Institutional Shares	Federated Project and Trade Finance Core Fund	High Yield Bond Portfolio	Total of Affiliated Transactions
Balance of Shares Held 11/30/2011	12,707,855	13,066,249	41,487,161	1,962,717	85,365,318	154,589,300
Purchases/Additions	714,623	12,699,174	292,880,311	556,638	16,908,365	323,759,111
Sales/Reductions	97,433	2,938,008	313,136,138	-	462,250	316,633,829
Balance of Shares Held 11/30/2012	13,325,045	22,827,415	21,231,334	2,519,355	101,811,433	161,714,582
Value	$462,770,793	$233,067,903	$21,231,334	$24,714,870	$678,064,147	$1,419,849,047
Dividend Income/Allocated Investment Income	$25,275,539	$5,393,127	$52,721	$1,165,723	$56,142,399	$88,029,509
Capital Gain Distributions/Allocated Net Realized Gain	$9,453,018	$—	$—	$112,336	$—	$9,565,354

Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (SEC), the Fund invests in a portfolio of Federated Core Trust (“Core Trust”), which is managed by the Adviser. Core Trust is an open-end management company, registered under the Act, available only to registered investment companies and other institutional investors. The investment objective of High Yield Bond Portfolio (“HYCORE”), a portfolio of Core Trust, is to seek high current income. Federated receives no advisory or administrative fees from HYCORE. Income distributions from HYCORE are declared daily and paid monthly, and are recorded by the Fund as dividend income. Capital gain distributions, if any, from HYCORE are declared and paid annually, and are recorded by the Fund as capital gains. A copy of the HYCORE financial statements is available on the EDGAR Database on the SEC's website or upon request from the Fund.

Additionally, as reflected above in Note 2 under Investment Income, Gains and Losses, Expenses and Distributions, the Fund invests in EMCORE, a portfolio of Federated Core Trust II, L.P. (Core Trust II), which is managed by Federated Investment Counseling, an affiliate of the Adviser. Core Trust II is a limited partnership registered under the Act, available only to registered investment companies and other institutional investors. The primary investment objective of EMCORE is to achieve a total return on its assets. Its secondary investment objective is to achieve a high level of income. It pursues these objectives by investing primarily in a portfolio of emerging market fixed-income securities. Federated Investors, Inc. receives no advisory or administrative fees from Core Trust II. The performance of the Fund is directly affected by the performance of Core Trust II. A copy of Core Trust II's financial statements is available on the Edgar Database on the SEC's website or upon request from the Fund.

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6. Investment TRANSACTIONS

Purchases and sales of investments, excluding long-term U.S. government securities and short-term obligations, for the year ended November 30, 2012, were as follows:

Purchases	$317,888,512
Sales	$99,876,072

7. CONCENTRATION OF RISK

The Fund invests in securities of non-U.S. issuers. Political or economic developments may have an effect on the liquidity and volatility of portfolio securities and currency holdings.

8. 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 November 30, 2012, there were no outstanding loans. During the year ended November 30, 2012, the Fund did not utilize the LOC.

9. INTERFUND LENDING

Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other funds advised by subsidiaries of Federated Investors, Inc., may participate in an interfund lending program. This program provides an alternative credit facility allowing the Fund to borrow from other participating affiliated funds. As of November 30, 2012, there were no outstanding loans. During the year ended November 30, 2012, the program was not utilized.

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Report of Independent Registered Public Accounting Firm

TO THE BOARD OF DIRECTORS OF Federated Fixed income securities, inc. AND SHAREHOLDERS OF federated strategic income fund:

We have audited the accompanying statement of assets and liabilities of Federated Strategic Income Fund (the “Fund”) (one of the portfolios constituting Federated Fixed Income Securities, Inc.), including the portfolio of investments, as of November 30, 2012 and the related statement of operations for the year then ended, the statements 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.

We conducted our audits in accordance with 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 November 30, 2012, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others 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 Strategic Income Fund, a portfolio of Federated Fixed Income Securities, Inc., at November 30, 2012, 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, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts
January 23, 2013

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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 June 1, 2012 to November 30, 2012.

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.

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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 6/1/2012	Ending Account Value 11/30/2012	Expenses Paid During Period1
Actual:
Class A Shares	$1,000	$1,067.60	$6.51
Class B Shares	$1,000	$1,063.70	$10.37
Class C Shares	$1,000	$1,063.70	$10.37
Class F Shares	$1,000	$1,066.80	$6.51
Institutional Shares	$1,000	$1,068.00	$5.22
Hypothetical (assuming a 5% return before expenses):
Class A Shares	$1,000	$1,018.70	$6.36
Class B Shares	$1,000	$1,014.95	$10.13
Class C Shares	$1,000	$1,014.95	$10.13
Class F Shares	$1,000	$1,018.70	$6.36
Institutional Shares	$1,000	$1,019.95	$5.10

1 Expenses are equal to the Fund's annualized net expense ratios, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half-year period). The annualized net expense ratios are as follows:

Class A Shares	1.26%
Class B Shares	2.01%
Class C Shares	2.01%
Class F Shares	1.26%
Institutional Shares	1.01%

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Board of Directors and Corporation Officers

The Board of Directors is responsible for managing the Corporation's business affairs and for exercising all the Corporation's powers except those reserved for the shareholders. The following tables give information about each Director and the senior officers of the Fund. Where required, the tables separately list Directors who are “interested persons” of the Fund (i.e., “Interested” Directors) and those who are not (i.e., “ Independent” Directors). Unless otherwise noted, the address of each person listed is Federated Investors Tower, 1001 Liberty Avenue, Pittsburgh, PA 15222. The address of all Independent Directors listed is 4000 Ericsson Drive, Warrendale, PA 15086-7561; Attention: Mutual Fund Board. As of December 31, 2012, the Corporation comprised two portfolio(s), and the Federated Fund Family consisted of 42 investment companies (comprising 137 portfolios). Unless otherwise noted, each Officer is elected annually. Unless otherwise noted, each Director oversees all portfolios in the Federated Fund Family and serves for an indefinite term. The Fund's Statement of Additional Information includes additional information about Corporation Directors and is available, without charge and upon request, by calling 1-800-341-7400.

Interested DIRECTORS Background

Name Birth Date Positions Held with Corporation 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 Director Began serving: October 1991	Principal Occupations: Director or Trustee of the Federated Fund Family; Chairman and Director, Federated Investors, Inc.; Chairman of the Federated Fund Family's Executive Committee. Previous Positions: Chairman of the Federated Fund Family; Trustee, Federated Investment Management Company; Chairman and Director, Federated Investment Counseling.
J. Christopher Donahue* Birth Date: April 11, 1949 President and Director Began serving: January 2000	Principal Occupations: Principal Executive Officer and President of the Federated Fund Family; Director or Trustee of some of the Funds in the Federated Fund Family; 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.

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INDEPENDENT DIRECTORS Background

Name Birth Date Positions Held with Corporation Date Service Began	Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications
John F. Cunningham Birth Date: March 5, 1943 Director Began serving: January 1999	Principal Occupation: Director or Trustee of the Federated Fund Family. Other Directorships Held: Chairman, President and Chief Executive Officer, Cunningham & Co., Inc. (strategic business consulting); Trustee Associate, Boston College. Previous Positions: President and Chief Operating Officer, Wang Laboratories; Chairman of the Board and Chief Executive Officer, Computer Consoles, Inc.; Director, First National Bank of Boston; Director, EMC Corporation (computer storage systems); Director, Apollo Computer, Inc.; Director, Redgate Communications. Qualifications: Business management and director experience.
Maureen Lally-Green Birth Date: July 5, 1949 Director Began serving: August 2009	Principal Occupations: Director or Trustee of the Federated Fund Family; Director, Office of Church Relations, Diocese of Pittsburgh; Adjunct Professor of Law, Duquesne University School of Law. Other Directorships Held: Director, Auberle; Member, Pennsylvania State Board of Education; Director, Saint Vincent College; Director, Ireland Institute of Pittsburgh; Chair and Director, UPMC Mercy Hospital; Regent, St. Vincent Seminary; Director, Epilepsy Foundation of Western and Central Pennsylvania; Director, Saint Thomas More Society, Allegheny County; Director, Our Campaign for the Church Alive, Inc.; Associate General Secretary of the Diocese of Pittsburgh. Previous Position: Pennsylvania Superior Court Judge. Qualifications: Legal and director experience.
Peter E. Madden Birth Date: March 16, 1942 Director Began serving: October 1991	Principal Occupation: Director or Trustee, and Chairman of the Board of Directors or Trustees, of the Federated Fund Family. Previous Positions: Representative, Commonwealth of Massachusetts General Court; President, Chief Operating Officer and Director, 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. Qualifications: Business management, mutual fund services and director experience.

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Name Birth Date Positions Held with Corporation Date Service Began	Principal Occupation(s) for Past Five Years, Other Directorships Held, Previous Position(s) and Qualifications
Charles F. Mansfield, Jr. Birth Date: April 10, 1945 Director Began serving: January 1999	Principal Occupations: Director or Trustee of the Federated Fund Family; 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). Qualifications: Banking, business management, education and director experience.
Thomas M. O'Neill Birth Date: June 14, 1951 Director Began serving: October 2006	Principal Occupations: Director or Trustee, Vice Chairman of the Audit Committee of the Federated Fund Family; Sole Proprietor, Navigator Management Company (investment and strategic consulting). Other Directorships Held: Board of Overseers, Children's Hospital of Boston; Visiting Committee on Athletics, Harvard College; Board of Directors, Medicines for Humanity; Board of Directors, The Golisano Children's Museum of Naples, Florida. 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). Qualifications: Business management, mutual fund, director and investment experience.
John S. Walsh Birth Date: November 28, 1957 Director Began serving: January 1999	Principal Occupations: Director or Trustee, Chairman of the Audit Committee of the Federated Fund Family; 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. Qualifications: Business management and director experience.

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OFFICERS

Name Birth Date Positions Held with Corporation Date Service Began	Principal Occupation(s) for Past Five Years and Previous Position(s)
John W. McGonigle Birth Date: October 26, 1938 EXECUTIVE VICE PRESIDENT AND SECRETARY Officer since: November 1991	Principal Occupations: Executive Vice President and Secretary of the Federated Fund Family; 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 Officer since: January 2006	Principal Occupations: Principal Financial Officer and Treasurer of the Federated Fund Family; 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.
Peter J. Germain Birth Date: September 3, 1959 CHIEF LEGAL OFFICER Officer since: January 2005	Principal Occupations: Mr. Germain is Chief Legal Officer of the Federated Fund Family. He is General Counsel and Vice President, Federated Investors, Inc.; President, Federated Administrative Services and Federated Administrative Services, Inc.; Vice President, Federated Securities Corp.; Secretary, Federated Private Asset Management, Inc.; and Secretary, Retirement Plan Service Company of America. Mr. Germain joined Federated in 1984 and is a member of the Pennsylvania Bar Association. Previous Positions: Deputy General Counsel, Special Counsel, Managing Director of Mutual Fund Services, Federated Investors, Inc.; Senior Vice President, Federated Services Company; and Senior Corporate Counsel, Federated Investors, Inc.
Richard B. Fisher Birth Date: May 17, 1923 Vice Chairman Officer since: August 2002	Principal Occupations: Vice Chairman or Vice President of some of the Funds in the Federated Fund Family; Vice Chairman, Federated Investors, Inc.; Chairman, Federated Securities Corp. Previous Positions: President and Director or Trustee of some of the Funds in the Federated Fund Family; Executive Vice President, Federated Investors, Inc.; Director and Chief Executive Officer, Federated Securities Corp.
Brian P. Bouda Birth Date: February 28, 1947 CHIEF COMPLIANCE OFFICER AND SENIOR VICE PRESIDENT Officer since: August 2004	Principal Occupations: Senior Vice President and Chief Compliance Officer of the Federated Fund Family; 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. Previous Positions: Served in Senior Management positions with a large regional banking organization.

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Name Birth Date Positions Held with Corporation Date Service Began	Principal Occupation(s) for Past Five Years and Previous Position(s)
Robert J. Ostrowski Birth Date: April 26, 1963 Chief Investment Officer Officer since: May 2004	Principal Occupations: Robert J. Ostrowski joined Federated in 1987 as an Investment Analyst and became a Portfolio Manager in 1990. He was named Chief Investment Officer of taxable fixed-income products in 2004 and also serves as a Senior Portfolio Manager. Mr. Ostrowski became an Executive Vice President of the Fund's Adviser in 2009 and served as a Senior Vice President of the Fund's Adviser from 1997 to 2009. Mr. Ostrowski has received the Chartered Financial Analyst designation. He received his M.S. in Industrial Administration from Carnegie Mellon University.
Joseph M. Balestrino Birth Date: November 3, 1954 VICE PRESIDENT Officer since: November 1998 Portfolio Manager since: July 1996	Principal Occupations: Joseph M. Balestrino has been the Fund's Portfolio Manager since July 1996. He is Vice President of the Trust with respect to the Fund. Mr. Balestrino joined Federated in 1986 and has been a Senior Portfolio Manager and Senior Vice President of the Fund's Sub-Adviser since 1998. He was a Portfolio Manager and a Vice President of the Fund's Sub-Adviser from 1995 to 1998. Mr. Balestrino served as a Portfolio Manager and an Assistant Vice President of the Fund's Sub-Adviser from 1993 to 1995. Mr. Balestrino has received the Chartered Financial Analyst designation and holds a Master's Degree in Urban and Regional Planning from the University of Pittsburgh.

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Evaluation and Approval of Advisory Contract–May 2012

Federated Strategic Income Fund (the “Fund”)

Following a review and recommendation of approval by the Fund's independent directors, the Fund's Board reviewed and approved at its May 2012 meetings the Fund's investment advisory contract for an additional one-year term. 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 “Evaluation”). The Board considered that Evaluation, along with other information, in deciding to approve the advisory contract.

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 to a fund and its shareholders, including the performance and expenses of the fund and of comparable funds; the Adviser's cost of providing the services, including the profitability to the Adviser of providing advisory services to a fund; the extent to which the Adviser may realize “economies of scale” as a fund grows larger and, if such economies exist, whether they have been shared with a fund and its shareholders; any “fall-out financial benefits” that accrue to the Adviser because of its relationship with a fund (including research services received from brokers that execute fund trades and any fees paid to affiliates of the Adviser for services rendered to a fund); comparative fee structures, including a comparison of fees paid to the Adviser with those paid by similar funds; and the extent to which the Board members are fully informed about all facts the Board deems relevant to its consideration of the Adviser's services and fees. Consistent with these judicial decisions, the Board also considered management fees (including any components thereof) charged to institutional and other clients of the Adviser for what might be viewed as like 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.

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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, and in connection with its May meetings, the Board 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 substantial information in connection with the May meeting at which the Board's formal review of the advisory contract occurred. At this May meeting, senior management of the Adviser also met with the independent directors and their counsel to discuss the materials presented and any other matters thought relevant by the Adviser or the directors. 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 information 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; the entrepreneurial risk assumed by the Adviser in sponsoring the funds; 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.

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While mindful that courts have cautioned against giving such comparisons too much weight, the Board has found the use of comparisons of the Fund's fees and expenses to other mutual funds with comparable investment programs to be relevant, 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. 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 Fund's ability to deliver competitive performance when compared to its peer group was also deemed to be relevant by the Board as 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.

The Senior Officer reviewed information 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 relevant in judging the reasonableness of proposed fees.

For the one-year, three-year and five-year periods covered by the Evaluation, the Fund's performance was above the median of the relevant peer group.

The Board also received financial information about Federated, including information regarding the compensation and benefits Federated derived from its relationships with the Federated funds. This information 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 information also detailed 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

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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 reporting as to the institution or elimination of these voluntary waivers.

Federated furnished information, 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 information unreliable. The allocation information was considered in the analysis by the Board but was determined to be of limited use.

The Board and the Senior Officer also reviewed information 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.

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, shareholder services, compliance, internal audit, 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 Evaluation, 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. The Board will continue to monitor advisory fees and other expenses borne by the Fund.

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The Senior Officer noted that, considering the totality of the circumstances, and all of the factors referenced within his Evaluation, he had concluded that, subject to comments and recommendations made within his Evaluation, his observations and the information accompanying the Evaluation supported a finding by the Board that the management fees for each of the funds was reasonable and that Federated appeared to provide appropriate advisory and 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.

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 concluded that, in light of the factors discussed above, including the nature, quality and scope of the services provided to the Fund by the Adviser and its affiliates, continuation of the advisory contract was appropriate.

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.

Annual Shareholder Report

52

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 home page, select “All” under “Asset Classes.” Select a fund name and share class, if applicable, to go to the Fund Overview page. On the Fund Overview page, select the “Documents” tab. At the bottom of that page, select “Proxy Voting Record Report (Form N-PX).” 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. From the home page, select “All” under “Asset Classes.” Select a fund name and share class, if applicable, to go to the Fund Overview page. On the Fund Overview page, select the “Documents” tab. At the bottom of that page, select “Form N-Q.”

Annual Shareholder Report

53

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 Strategic Income 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 31417P502
CUSIP 31417P601
CUSIP 31417P700
CUSIP 31417P809
CUSIP 31417P841

G00324-02 (1/13)

Federated is a registered trademark of Federated Investors, Inc.
2013 ©Federated Investors, Inc.

Item 2. Code of Ethics

(a) As of the end of the period covered by this report, the registrant has adopted a code of ethics (the "Section 406 Standards for Investment Companies - Ethical Standards for Principal Executive and Financial Officers") that applies to the registrant's Principal Executive Officer and Principal Financial Officer; the registrant's Principal Financial Officer also serves as the Principal Accounting Officer.

(c) Not Applicable

(d) Not Applicable

(e) Not Applicable

(f)(3) The registrant hereby undertakes to provide any person, without charge, upon request, a copy of the code of ethics. To request a copy of the code of ethics, contact the registrant at 1-800-341-7400, and ask for a copy of the Section 406 Standards for Investment Companies - Ethical Standards for Principal Executive and Financial Officers.

Item 3. Audit Committee Financial Expert

The registrant's Board has determined that each of the following members of the Board's Audit Committee is an “audit committee financial expert,” and is "independent," for purposes of this Item: Charles F. Mansfield, Jr., Thomas M. O'Neill and John S. Walsh.

Item 4. Principal Accountant Fees and Services

(a) Audit Fees billed to the registrant for the two most recent fiscal years:

Fiscal year ended 2012 - $55,400

Fiscal year ended 2011 - $52,900

(b) Audit-Related Fees billed to the registrant for the two most recent fiscal years:

Fiscal year ended 2012 - $36

Fiscal year ended 2011 - $0

Travel to Audit Committee Meeting.

Amount requiring approval of the registrant’s audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $0 and $0 respectively.

(c) Tax Fees billed to the registrant for the two most recent fiscal years:

Fiscal year ended 2012 - $0

Fiscal year ended 2011 - $0

Amount requiring approval of the registrant’s audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $0 and $4,214 respectively. Fiscal year ended 2011- Tax preparation fees for fiscal year end 2010.

(d) All Other Fees billed to the registrant for the two most recent fiscal years:

Fiscal year ended 2012 - $0

Fiscal year ended 2011 - $0

Amount requiring approval of the registrant’s audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $0 and $0 respectively.

(e)(1) Audit Committee Policies regarding Pre-approval of Services.

The Audit Committee is required to pre-approve audit and non-audit services performed by the independent auditor in order to assure that the provision of such services do not impair the auditor’s independence. Unless a type of service to be provided by the independent auditor has received general pre-approval, it will require specific pre-approval by the Audit Committee. Any proposed services exceeding pre-approved cost levels will require specific pre-approval by the Audit Committee.

Certain services have the general pre-approval of the Audit Committee. The term of the general pre-approval is 12 months from the date of pre-approval, unless the Audit Committee specifically provides for a different period. The Audit Committee will annually review the services that may be provided by the independent auditor without obtaining specific pre-approval from the Audit Committee and may grant general pre-approval for such services. The Audit Committee will revise the list of general pre-approved services from time to time, based on subsequent determinations. The Audit Committee will not delegate its responsibilities to pre-approve services performed by the independent auditor to management.

The Audit Committee has delegated pre-approval authority to its Chairman. The Chairman will report any pre-approval decisions to the Audit Committee at its next scheduled meeting. The Committee will designate another member with such pre-approval authority when the Chairman is unavailable.

AUDIT SERVICES

The annual Audit services engagement terms and fees will be subject to the specific pre-approval of the Audit Committee. The Audit Committee must approve any changes in terms, conditions and fees resulting from changes in audit scope, registered investment company (RIC) structure or other matters.

In addition to the annual Audit services engagement specifically approved by the Audit Committee, the Audit Committee may grant general pre-approval for other Audit Services, which are those services that only the independent auditor reasonably can provide. The Audit Committee has pre-approved certain Audit services, all other Audit services must be specifically pre-approved by the Audit Committee.

AUDIT-RELATED SERVICES

Audit-related services are assurance and related services that are reasonably related to the performance of the audit or review of the Company’s financial statements or that are traditionally performed by the independent auditor. The Audit Committee believes that the provision of Audit-related services does not impair the independence of the auditor, and has pre-approved certain Audit-related services, all other Audit-related services must be specifically pre-approved by the Audit Committee.

TAX SERVICES

The Audit Committee believes that the independent auditor can provide Tax services to the Company such as tax compliance, tax planning and tax advice without impairing the auditor’s independence. However, the Audit Committee will not permit the retention of the independent auditor in connection with a transaction initially recommended by the independent auditor, the purpose of which may be tax avoidance and the tax treatment of which may not be supported in the Internal Revenue Code and related regulations. The Audit Committee has pre-approved certain Tax services, all Tax services involving large and complex transactions must be specifically pre-approved by the Audit Committee.

ALL OTHER SERVICES

With respect to the provision of services other than audit, review or attest services the pre-approval requirement is waived if:

(1) The aggregate amount of all such services provided constitutes no more than five percent of the total amount of revenues paid by the registrant, the registrant’s adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant to its accountant during the fiscal year in which the services are provided;

(2) Such services were not recognized by the registrant, the registrant’s adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant at the time of the engagement to be non-audit services; and

(3) Such services are promptly brought to the attention of the Audit Committee of the issuer and approved prior to the completion of the audit by the Audit Committee or by one or more members of the Audit Committee who are members of the board of directors to whom authority to grant such approvals has been delegated by the Audit Committee.

The Audit Committee may grant general pre-approval to those permissible non-audit services classified as All Other services that it believes are routine and recurring services, and would not impair the independence of the auditor.

The SEC’s rules and relevant guidance should be consulted to determine the precise definitions of prohibited non-audit services and the applicability of exceptions to certain of the prohibitions.

PRE-APPROVAL FEE LEVELS

Pre-approval fee levels for all services to be provided by the independent auditor will be established annually by the Audit Committee. Any proposed services exceeding these levels will require specific pre-approval by the Audit Committee.

PROCEDURES

Requests or applications to provide services that require specific approval by the Audit Committee will be submitted to the Audit Committee by both the independent auditor and the Principal Accounting Officer and/or Internal Auditor, and must include a joint statement as to whether, in their view, the request or application is consistent with the SEC’s rules on auditor independence.

(e)(2) Percentage of services identified in items 4(b) through 4(d) that were approved by the registrants audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X:

4(b)

Fiscal year ended 2012 – 0%

Fiscal year ended 2011 - 0%

Percentage of services provided to the registrants investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were approved by the registrants audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, 0% and 0% respectively.

4(c)

Fiscal year ended 2012 – 0%

Fiscal year ended 2011 – 0%

Percentage of services provided to the registrants investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were approved by the registrants audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, 0% and 0% respectively.

4(d)

Fiscal year ended 2012 – 0%

Fiscal year ended 2011 – 0%

Percentage of services provided to the registrants investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were approved by the registrants audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, 0% and 0% respectively.

(f) NA

(g) Non-Audit Fees billed to the registrant, the registrant’s investment adviser, and certain entities controlling, controlled by or under common control with the investment adviser:

Fiscal year ended 2012 - $307,489

Fiscal year ended 2011 - $376,828

(h) The registrant’s Audit Committee has considered that the provision of non-audit services that were rendered to the registrant’s adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

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 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 Fixed Income Securities, Inc.

By /S/ Richard A. Novak

Richard A. Novak, Principal Financial Officer

Date January 22, 2013

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 January 22, 2013

By /S/ Richard A. Novak

Richard A. Novak, Principal Financial Officer

Date January 22, 2013