22

PI-312470.08

                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                    FORM 10-K

[ X ] ANNUAL REPORT  PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES  EXCHANGE
ACT OF 1934

FOR THE FISCAL YEAR ENDED DECEMBER 31, 1999

[    ]      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
      EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM _____________ TO _____________

COMMISSION FILE NUMBER  1-14818

                               FEDERATED INVESTORS, INC.
                (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

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                                                     25-1111467

             PENNSYLVANIA

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                                                  (I.R.S. EMPLOYER

    (STATE OR OTHER JURISDICTION OF              IDENTIFICATION NO.)
    INCORPORATION OR ORGANIZATION)
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                           FEDERATED INVESTORS TOWER
                     PITTSBURGH, PENNSYLVANIA 15222-3779

         (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES, INCLUDING ZIP CODE)
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         SECURITIES REGISTERED PURSUANT TO SECTION 12(B) OF THE ACT:

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  CLASS B COMMON STOCK, NO PAR VALUE           NEW YORK STOCK EXCHANGE
         (TITLE OF EACH CLASS)             (NAME OF EACH EXCHANGE ON WHICH
                                                     REGISTERED)
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       SECURITIES REGISTERED PURSUANT TO SECTION 12(G) OF THE ACT: NONE
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    Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes A No

    Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in the definitive proxy statement incorporated
by reference in Part III of this Form 10-K or any amendment to this Form 10-K.

    The aggregate market value of the Class B Common Stock held by
non-affiliates of the registrant as of March 22, 2000 was approximately
$1,488,903,000, based on the last reported sales price of $26.0625 as reported
by the New York Stock Exchange. For purposes of this calculation, the registrant
has deemed all of its executive officers and directors to be affiliates, but has
made no determination as to whether any other persons are "affiliates" within
the meaning of Rule 12b-2 under the Securities Exchange Act of 1934. The number
of shares of Class B Common Stock outstanding on March 22, 2000, was 80,745,035
shares.

    Documents incorporated by reference:
      Selected portions of the 1999 Annual Report to Shareholders - Part I, Part
II and Part IV of this Report.

      Selected portions of the 2000 Information Statement - Part III of this
Report.

                                     PART I

ITEM 1 - BUSINESS

OVERVIEW

      Federated Investors, Inc. and its consolidated subsidiaries (collectively,
"Federated") is a leading provider of investment management and related
financial services. Federated sponsors, markets and provides investment
advisory, distribution and administrative services primarily to mutual funds.
Total assets under management at December 31, 1999, were $124.8 billion,
primarily in funds managed, distributed and administered by Federated and in
other non-fund products ("Managed Assets"), of which $4.7 billion were in
separately managed accounts. Managed Assets at December 31, 1999, increased
$13.3 billion since December 31, 1998.

      Federated provided investment advisory services to 129 funds at December
31, 1999. These funds are offered through banks, broker/dealers and other
financial intermediaries who use them to meet the needs of their customers;
these customers include retail investors, corporations, and retirement plans.
Federated also provides mutual fund administrative services to its managed funds
and to funds sponsored by third parties, where Federated also acts as fund
distributor. Federated provided these services for $41.2 billion of assets in
funds sponsored by third parties, primarily banks, ("Administered Assets") as of
December 31, 1999. In addition, Federated provides other services related to
mutual funds including trade execution and clearing and retirement plan
recordkeeping.

      Total Managed Assets for each of the past three years are as follows:

MANAGED ASSETS                                                  Growth Rate
                                                             -------------------
(DOLLARS IN MILLIONS)               As of December 31,        3 Yr.
                               ----------------------------
                                 1999      1998      1997      CAGR*        1999
                               -------------------------------------------------

  Money Market Funds/
     Cash Equivalents            $83,299   $77,055  $63,622    18%        8%
  Equity Funds                    20,941    15,503   11,710    40%       35%
  Fixed-Income Funds              15,857    16,437   15,067      4%      -4%
  Separate Accounts                4,723     2,558    2,141    34%       85%
                               -------------------------------------------------

    Total Managed Assets        $124,820  $111,553  $92,540    19%       12%
                               =================================================

*Compound Annual Growth Rate

      Average Managed Assets for the past three years were as follows:

AVERAGE MANAGED ASSETS                                          Growth Rate
                                                             -------------------
(DOLLARS IN MILLIONS)            Year ended December 31,      3 Yr.
                               ----------------------------
                                 1999      1998      1997      CAGR*        1999
                               -------------------------------------------------
Money Market Funds/
  Cash Equivalent                $79,253   $69,074  $55,636    21%       15%
Equity Funds                      17,531    13,777    9,690    41%       27%
Fixed-Income Funds                16,680    15,851   14,382     6%       5%
Separate Accounts                  4,109     2,334    1,872    35%       76%
                               -------------------------------------------------

  Total Average Managed Assets  $117,573  $101,036  $81,580    21%       16%
                               =================================================

* Compound Annual Growth Rate

      Federated's revenues from investment advisory, related administrative and
other service fees provided under agreements with the funds and other entities,
and other income over the last three years were as follows (Certain amounts
previously reported have been reclassified to conform to the current year's
presentation.):

REVENUE

(DOLLARS IN THOUSANDS)                                        Growth Rate
                                                         -----------------------
                             Year ended December 31,        3 Yr.
                          -------------------------------
                            1999      1998        1997      CAGR*       1999
                          ------------------------------------------------------

  Investment   Advisory   $324,923  $280,046    $220,912     22%        16%
Fees
  Administrative           104,381    97,234      85,429     13%         7%
Service Fees
  Other Service Fees       147,700   124,599      88,163     35%        19%
  Other Income              24,094    20,248       9,215     37%        19%
                          ------------------------------------------------------

    TOTAL REVENUE         $601,098  $522,127    $403,719      23%       15%
                          ======================================================

* Compound Annual Growth Rate

BUSINESS STRATEGY

       Federated pursues a multi-faceted business strategy having three broad
objectives:

            -To be widely recognized as a world class investment management
company that offers highly competitive performance and disciplined risk
management across a broad spectrum of products.

            -To profitably expand market penetration by increasing its assets
under management in each market where it chooses to apply its substantial
distribution resources.

            -To profitably expand its customer relationships by providing
superior services designed to support the growth of Managed and Administered
Assets.

      Federated offers a wide range of products, including equity, fixed-income
and money market investments designed to meet the needs of investors with
varying investment objectives. Federated has structured its investment process
to meet the requirements of fiduciaries and others who use Federated's products
to meet the needs of their customers. Fiduciaries typically have stringent
demands related to portfolio composition, risk and investment performance.

      Since 1994, in response to market demand and to diversify its managed
assets, Federated has emphasized growth of its equity business and has broadened
its range of equity products. Equity assets are managed across a wide range of
styles including large cap value ($6.8 billion), equity income ($4.8 billion),
international ($3.1 billion) and mid-large cap growth ($2.9 billion)
investments. Federated also manages assets in equity index funds ($3.4 billion),
balanced and asset allocation funds ($1.2 billion) and small cap blend ($506
million). These asset allocation funds may include fixed-income assets.

      Federated's fixed-income assets are managed in a wide range of sectors
including high yield ($4.9 billion), mortgage-backed ($4.7 billion),
multi-sector ($2.7 billion), municipal ($2.2 billion), corporate ($1.7 billion),
U.S. government ($1.6 billion) and international/global ($1.0 billion).
Federated's fixed-income funds offer fiduciaries and others a broad range of
highly defined products designed to meet many of their investment needs and
requirements.

      Federated uses a team of portfolio managers led by a senior portfolio
manager for each fund. Federated's investment research process combines
disciplined quantitative screening along with rigorous fundamental analysis to
identify attractive securities. Portfolios are continually reevaluated with
respect to valuation, price and earnings estimate momentum, company
fundamentals, market factors, economic conditions and risk controls in order to
achieve specific investment objectives.

      Federated is one of the largest U.S. managers of money market fund assets,
with $83.3 billion in assets under management at December 31, 1999. Federated
has developed expertise in managing cash for institutions, which typically have
stringent requirements for regulatory compliance, relative safety, liquidity and
competitive yields. Federated has managed money market funds for over 25 years
and began selling money market fund products to institutions in 1974. Federated
also manages retail money market fund products which are typically distributed
through broker/dealers. Federated manages money market fund assets in a variety
of asset classes including government ($43.9 billion), prime ($26.5 billion) and
tax-free ($12.9 billion).

      Federated's distribution strategy is to provide products geared to
financial intermediaries, primarily banks, broker/dealers and investment
advisers, and directly to institutions such as corporations and government
entities. Through substantial investments in distribution for more than 20
years, Federated has developed selling relationships with more than 4,000
institutions and sells its products directly to another 500 corporations and
government entities. Federated uses its trained sales force of more than 190
representatives and managers across the United States to add new customer
relationships and strengthen and expand existing relationships.

INVESTMENT PRODUCTS AND MARKETS

       Federated's investment products are distributed in four principal
markets: the bank trust market, the broker/dealer market, the institutional
market and the international market. The following chart shows Federated Managed
Assets by market for the dates indicated:

MANAGED ASSETS BY MARKET                                        Growth Rate
                                                             ------------------
(DOLLARS IN MILLIONS)               As of December 31,        3 Yr.
                               ----------------------------
                                 1999      1998      1997     CAGR*     1999
                               ----------------------------- ------------------

Bank Trust Market                $61,912   $58,891  $49,662    16%       5%
Broker/Dealer Market              41,930    35,232   28,256    24%      19%
Institutional Market              16,349    13,993   11,343    19%      17%
International Market               1,104         0        0    n/a      n/a
Other                              3,525     3,437    3,279     7%        3%
                               -----------------------------

  Total Managed Assets          $124,820  $111,553  $92,540    19%      12%
                               =============================

*Compound Annual Growth Rate

      BANK TRUST MARKET. Federated pioneered the concept of providing cash
management to bank trust departments through mutual funds over 20 years ago. In
addition, Federated initiated a strategy to provide a broad range of equity and
fixed-income funds, termed MultiTrust(TM), to meet the evolving needs of bank
trust departments. Federated's bank trust customers invest the assets subject to
their control, or upon direction from their customers, in one or more funds
managed by Federated. Federated employs a dedicated sales force backed by a
staff of support personnel to offer its products and services in the bank trust
market.

      Money market funds contain the majority of Federated's Managed Assets in
the bank trust market. In allocating investments across various asset classes,
investors typically maintain a portion of their portfolios in cash or cash
equivalents, including money market funds, irrespective of trends in bond or
stock prices. Federated also offers an extensive menu of equity and fixed-income
mutual funds structured for use in the bank trust market. As of December 31,
1999, Managed Assets in the bank trust market were comprised of $51.1 billion in
money market funds and cash equivalents, $5.7 billion in equity funds and $5.1
billion in fixed-income funds.

      BROKER/DEALER MARKET. Federated distributes its products in this market
through a large, diversified group of approximately 2,000 national, regional,
independent, and bank broker/dealers. Federated maintains a sales staff
dedicated to this market, with a separate group focused on the bank
broker/dealers. Broker/dealers use Federated's products to meet the needs of
their customers, who are typically retail investors. Federated offers products
with a variety of commission structures that enable brokers to offer their
customers a choice of pricing options. Federated also offers money market mutual
funds as cash management products designed for use in the broker/dealer market.
As of December 31, 1999, Managed Assets in the broker/dealer market were
comprised of $22.1 billion in money market funds, $12.3 billion in equity funds,
and $7.5 billion in fixed-income funds.

      INSTITUTIONAL MARKET. Federated maintains a dedicated sales staff to focus
on the distribution of its products to a wide variety of users: investment
advisors, corporations, corporate and public pension funds, insurance companies,
government entities, foundations, endowments, hospitals, and non-Federated
investment companies. As of December 31, 1999, Managed Assets in the
institutional market were comprised of $9.5 billion in money market funds, $2.0
billion in fixed-income funds, $1.9 billion in equity funds and $2.9 billion in
separate accounts.

      INTERNATIONAL MARKET. Federated is taking steps to broaden distribution to
areas outside of the U.S. In 1998, Federated entered into an agreement with
LVM-Versicherungen (LVM), a large German insurance company, to create a
joint-venture company named Federated Fonds-Service GmbH ("Federated GmbH"), to
exclusively manage, distribute and market a family of mutual funds to insurance
clients of LVM, as well as pursue institutional separate accounts. In the fourth
quarter of 1999, a Trust was established with six sub-funds to be sold in German
speaking countries in Europe. Marketing of these funds began in January 2000.

      ALTERNATIVE PRODUCTS. In 1999, Federated entered into an agreement to
manage a portfolio of high yield bonds totaling $362 million at inception for a
collateralized bond obligation (CBO) product. This product packages Federated's
mutual fund investment management expertise into an alternative product
structure and offers another source of investment advisory fee revenue.
Federated plans to continue to seek opportunities to manage CBOs and other
alternative products.

        Federated completed three acquisitions between November, 1996 and May,
1997, which together resulted in an increase of approximately $4.8 billion in
Managed Assets. In January 2000, Federated acquired InvestLink Technologies,
Inc., a software developer and marketer of applications for recordkeeping,
administration and servicing of defined contribution benefit plans. Federated
will seek to identify additional acquisitions and alliances that it believes
will enhance shareholder value by adding assets, complementary investment
management expertise or distribution capabilities.

      Federated's principal source of revenue is investment advisory fees earned
by various subsidiaries and affiliates pursuant to investment advisory contracts
with the funds. These subsidiaries and affiliates are registered as investment
advisers under the Investment Advisers Act of 1940 (the "Advisers Act").
Investment advisers are compensated for their services in the form of investment
advisory fees based upon the average daily net assets of the fund.

      Federated provided investment advisory services to 129 funds as of
December 31, 1999. The funds sponsored by Federated are domiciled in the U.S.,
with the exception of Federated International Funds PLC and Federated Unit
Trusts which are domiciled in Dublin, Ireland. Each of Federated's
U.S.-domiciled funds (with the exception of a collective investment trust) is
registered under the Investment Company Act of 1940 ("Investment Company Act")
and under applicable federal and state laws. Each of the funds enters into an
advisory agreement. The advisory agreements are subject to annual approval by
the fund directors or trustees, including a majority of the directors who are
not "interested persons" of the funds or Federated as defined under the
Investment Company Act. Advisory agreements are subject to periodic review by
the directors or trustees of the respective funds and amendments to such
agreements must be approved by the fund shareholders. A significant portion of
Federated's revenue is derived from these advisory agreements which generally
are terminable upon 60 days notice.

      Of these 129 funds, Federated's investment advisory subsidiaries managed
53 money market funds (and cash equivalents) totaling $83.3 billion in assets,
42 fixed-income funds with $15.9 billion in assets and 34 equity funds with
$20.9 billion in assets. Appendix "A" hereto lists all of these funds, including
asset levels and date of inception.

      Federated also serves as investment advisor to pension and other employee
benefit plans, corporations, trusts, foundations, endowments, mutual funds
sponsored by third parties, and other investors. These separate accounts totaled
$4.7 billion in assets under management as of December 31, 1999. Fees for
separate accounts are typically based on the value of assets under management
pursuant to investment advisory agreements that may be terminated at any time.

      Federated also provides a broad range of services to support the
operation, administration, and distribution of Federated-sponsored funds. These
services, for which Federated receives fees pursuant to administrative
agreements with the funds, include legal support and regulatory compliance,
audit, fund financial services, transfer agency services, and shareholder
servicing and support. Federated also offers these services to institutions
seeking to outsource all or part of their mutual fund service and distribution
functions. Through various subsidiaries, Federated provides its experience and
expertise in these areas to expand its relationships with key financial
intermediaries, primarily banks, who sponsor proprietary mutual funds. Federated
receives fees from these bank-sponsored funds for providing fund services.

      The following chart shows period-end and average Administered Assets since
1997:

ADMINISTERED ASSETS            As of and for the year ended   Growth
(DOLLARS IN MILLIONS)                  December 31,            Rate
                               ----------------------------- ----------
                                  1999      1998     1997    1999
                               ----------------------------- ----------
Period End Administered Assets   $41,234   $28,165  $46,999      46%
Average Administered Assets       35,079    53,136   42,965     -34%

      The decrease in 1999 average Administered Assets and in year-end 1998
Administered Assets was due primarily to the termination of certain
administration contracts in 1998 due to internalization of these functions by
banks who developed the ability to provide mutual fund services through
acquisitions. These customers collectively accounted for less than 2% of 1998
total revenue.

      In addition, certain Funds sponsored by Federated have adopted
distribution plans which, subject to applicable law, provide for payment to
Federated for the reimbursement of marketing expenses, including sales
commissions paid to broker/dealers. These distribution plans are implemented
through a distribution agreement between Federated and the Fund. Although the
specific terms of each such agreement vary, the basic terms of the agreements
are similar. Pursuant to the agreements, Federated acts as underwriter for the
fund and distributes shares of the Fund through unaffiliated dealers. Each
distribution plan and agreement is initially approved by the directors or
trustees of the respective Funds and is reviewed for approval annually.

      Federated also provides retirement plan recordkeeping services and trade
execution and settlement services through its various subsidiaries.

COMPETITION

      The mutual fund industry is highly competitive. According to the
Investment Company Institute, at the end of 1999, there were over 7,800
registered open-end investment companies, of varying sizes and investment
policies, whose shares are currently being offered to the public both on a load
and no-load basis. In addition to competition from other mutual fund managers
and investment advisers, Federated and the mutual fund industry compete with
investment alternatives offered by insurance companies, commercial banks,
broker/dealers and other financial institutions.

      Competition for sales of mutual fund shares is influenced by various
factors, including investment performance in terms of attaining the stated
objectives of the particular funds and in terms of fund yields and total
returns; advertising and sales promotional efforts; and type and quality of
services.

      Changes in the mix of customers for mutual fund distribution and
administrative services are expected to continue. Competition for fund
administration services is extremely high. In addition to competing with other
service providers, banks sponsoring mutual funds may choose to internalize
certain service functions. Consolidation within the banking industry also
impacts the fund administration business as merging bank funds typically choose
a single fund administration provider. Due to the relatively lower revenues,
changes in the amount of Administered Assets generally have less impact on
Federated's results of operations than changes in the amount of Managed Assets.

REGULATORY MATTERS

      Substantially all aspects of Federated's business are subject to federal
and state regulation and to the extent operations take place outside the United
States they are subject to the regulations of foreign countries. Depending upon
the nature of any non-compliance, the results could include the suspension or
revocation of licenses or registration, including broker/dealer licenses and
registrations and transfer agent registrations, as well as the imposition of
civil fines and penalties and in certain limited circumstances prohibition from
acting as an adviser to registered investment companies. Federated's advisory
companies are registered with the Securities and Exchange Commission (the
"Commission") under the Advisers Act and with certain states. All of the mutual
funds managed, distributed, and administered by Federated are registered with
the Commission under the Investment Company Act. Certain wholly owned
subsidiaries of Federated are registered as broker-dealers with the Commission
under the Securities Exchange Act of 1934, as amended (the "Exchange Act") and
with various states and are members of the National Association of Securities
Dealers (the "NASD"). Their activities are regulated by the Commission, the
NASD, and the various states in which they are registered. These subsidiaries
are required to meet capital requirements established by the Commission pursuant
to the Exchange Act. Two other subsidiaries are registered with the Commission
as transfer agents. Federated Investors Trust Company is regulated by the State
of New Jersey. Federated believes that it and its subsidiaries are in
substantial compliance with all applicable laws and regulations. Amendments to
current laws and regulations or newly-promulgated laws and regulations governing
Federated's operations could have a material adverse impact on Federated.

      The federal, state and foreign laws and regulations applicable to most
aspects of Federated's business are primarily intended to benefit or protect
Federated's customers and the funds' shareholders and generally grant
supervisory agencies and bodies broad administrative powers, including the power
to limit or restrict Federated from carrying on its business in the event that
it fails to comply with such laws and regulations. In such event, the possible
sanctions that may be imposed include the suspension of individual employees,
limitations on engaging in certain lines of business for specified periods of
time, revocation of broker/dealer licenses and registrations and transfer agent
registrations, censure and fines.

EMPLOYEES

      At December 31, 1999, Federated employed 1,831 persons. Federated
considers its relationships with its employees to be satisfactory.

FORWARD-LOOKING INFORMATION

      THIS ANNUAL REPORT ON FORM 10-K AND THE 1999 ANNUAL REPORT TO SHAREHOLDERS
CONTAIN CERTAIN "FORWARD- LOOKING STATEMENTS" WITHIN THE MEANING OF THE PRIVATE
SECURITIES LITIGATION REFORM ACT OF 1995. THESE STATEMENTS INVOLVE CERTAIN
UNKNOWN RISKS AND UNCERTAINTIES, INCLUDING, AMONG OTHERS THOSE DISCUSSED UNDER
THE CAPTION "RISK FACTORS AND CAUTIONARY STATEMENTS" BELOW, THAT COULD CAUSE
ACTUAL RESULTS, LEVELS OF ACTIVITY, PERFORMANCE, OR ACHIEVEMENTS OF FEDERATED,
OR INDUSTRY RESULTS, TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, LEVELS
OF ACTIVITY, PERFORMANCE, OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD
LOOKING STATEMENTS. FEDERATED CAUTIONS READERS NOT TO PLACE UNDUE RELIANCE ON
ANY SUCH FORWARD LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE MADE, AND
SHOULD BE READ IN CONJUNCTION WITH THE RISK DISCLOSURE BELOW. FEDERATED WILL NOT
UNDERTAKE AND SPECIFICALLY DECLINES ANY OBLIGATION TO RELEASE PUBLICLY THE
RESULT OF ANY REVISIONS WHICH MAY BE MADE TO ANY FORWARD LOOKING STATEMENTS TO
REFLECT EVENTS OR CIRCUMSTANCES AFTER THE DATE OF SUCH STATEMENTS OR REFLECT THE
OCCURRENCE OF ANTICIPATED OR UNANTICIPATED EVENTS. AS A RESULT OF THE FOREGOING,
AND OTHER FACTORS, NO ASSURANCE CAN BE GIVEN AS TO FUTURE RESULTS, LEVELS OF
ACTIVITY, PERFORMANCE, OR ACHIEVEMENTS OF FEDERATED, AND NEITHER FEDERATED NOR
ANY OTHER PERSON ASSUMES RESPONSIBILITY FOR THE ACCURACY OR COMPLETENESS OF SUCH
STATEMENTS.

RISK FACTORS AND CAUTIONARY STATEMENTS

      POTENTIAL ADVERSE EFFECTS OF INCREASED COMPETITION IN THE INVESTMENT
MANAGEMENT BUSINESS. The investment management business is highly competitive.
Federated competes in the distribution of mutual funds with other independent
fund management companies, national and regional broker/dealers, commercial
banks, insurance companies, and other institutions. Many of these competitors
have substantially greater resources and brand recognition than Federated.
Competition is based on various factors, including business reputation; the
investment performance of funds managed or administered by Federated; quality of
service; the strength and continuity of management and selling relationships;
marketing and distribution services offered; the range of products offered; and
fees charged. See "Business--Competition."

      Many of Federated's fund products are designed for use by institutions
such as banks, insurance companies and other corporations. A large portion of
Federated's Managed Assets, particularly money market and fixed-income Managed
Assets, are held by institutional investors. Because most institutional mutual
funds are sold without sales commissions at either the time of purchase or the
time of redemption, institutional investors may be more inclined to move their
assets among various institutional funds than investors in retail mutual funds.
Of Federated's 129 managed funds, 93 are sold without sales commission.
Institutions are sensitive to fund investment performance, consistent adherence
to investment objectives, quality of service and pricing. Federated believes
that competitive pressures in the institutional fund market are increasing as a
result of (i) the entry of well known managers from the retail investment
industry and of low-fee investment managers, (ii) mergers and consolidation
occurring in the banking industry, (iii) increased offering of proprietary funds
by institutional investors such as banks, and (iv) regulatory changes affecting
banks and other financial service firms.

      A significant portion of Federated's revenue is derived from providing
mutual funds to its bank trust market, comprising over 1,400 banks and other
financial institutions. Future profitability of Federated will be affected by
its ability to retain its share of this market, and could also be adversely
affected by the general consolidation which is occurring in the banking industry
as well as recent regulatory changes. In addition, bank consolidation trends
could not only cause changes in Federated's customer mix, but could also affect
the scope of services provided and fees received by Federated, depending upon
the degree to which banks internalize administrative functions attendant to
proprietary mutual funds.

      POTENTIAL ADVERSE EFFECTS OF A DECLINE IN SECURITIES MARKETS. Changes in
economic or market conditions may adversely affect the profitability and
performance of and demand for Federated's investment products and services. The
ability of Federated to compete and grow is dependent, in part, on the relative
attractiveness of the types of investment products Federated offers and its
investment philosophies and market strategies under prevailing market
conditions. A significant portion of Federated's revenue is derived from
investment advisory fees, which are based on the value of Managed Assets and
vary with the type of asset being managed, with higher fees generally earned on
equity and fixed-income funds than on money market funds. Consequently,
significant fluctuations in the prices of securities held by, or the level of
redemptions from, the funds advised by Federated may affect materially the
amount of Managed Assets and thus Federated's revenue, profitability and ability
to grow. Substantially all of Federated's Managed Assets are in open end funds,
which permit investors to redeem their investment at any time.

      POTENTIAL ADVERSE AFFECTS ON MONEY MARKET FUNDS RESULTING FROM INCREASES
IN INTEREST RATES. Approximately 34% of Federated's revenue in 1999 was from
managed money market funds. Assets in these funds are largely from institutional
investors. In a period of rapidly rising interest rates, institutional investors
may redeem shares in money market funds to invest directly in market issues
offering higher yields. These redemptions would reduce Managed Assets, thereby
reducing Federated's advisory fee revenue. Federated has been actively
diversifying its products to expand its Managed Assets in equity mutual funds
which may be less sensitive to interest rate increases. There can be no
assurance that Federated will continue to be successful in these diversification
efforts.

      ADVERSE EFFECTS OF POOR FUND PERFORMANCE. Success in the investment
management and mutual fund business is largely dependent on the funds'
investment performance relative to market conditions and performance of
competing funds. Good performance generally stimulates sales of the funds'
shares and tends to keep redemptions low. Sales of funds generate higher
revenues (which are largely based on assets of the funds). Good performance also
attracts private institutional accounts to Federated. Conversely, relatively
poor performance tends to result in decreased sales, increased redemptions of
the funds' shares, and the loss of private institutional accounts, with
corresponding decreases in revenues to Federated. Failure of the funds to
perform well could, therefore, have a material adverse effect on Federated.

      ADVERSE EFFECTS OF TERMINATION OR FAILURE TO RENEW FUND AGREEMENTS ON
FEDERATED'S REVENUES AND PROFITABILITY. A substantial majority of Federated's
revenues are derived from investment management agreements with the funds that,
as required by law, are terminable on 60 days' notice. In addition, each such
investment management agreement must be approved and renewed annually by each
fund's board, including disinterested members of the board, or its shareholders,
as required by law. Generally, Federated's administrative servicing agreements
with bank proprietary fund customers have an initial term of three years with a
provision for automatic renewal unless notice is otherwise given and provide for
termination for cause. Failure to renew or termination of a significant number
of these agreements could have a material adverse impact on Federated. In
addition, as required by the Investment Company Act, each investment advisory
agreement with a mutual fund automatically terminates upon its "assignment,"
although new investment advisory agreements may be approved by the mutual fund's
directors or trustees and shareholders. A sale of a sufficient number of shares
of Federated's voting securities to transfer control of Federated could be
deemed an "assignment" in certain circumstances. An assignment, actual or
constructive, will trigger these termination provisions and may adversely affect
Federated's ability to realize the value of these assets.

      POTENTIAL ADVERSE EFFECTS OF CHANGES IN LAWS AND REGULATIONS ON
FEDERATED'S INVESTMENT MANAGEMENT BUSINESS. Federated's investment management
business is subject to extensive regulation in the United States primarily at
the Federal level, including regulations by the Commission particularly under
the Investment Company Act and the Advisers Act as well as the rules of the NASD
and all states. Federated is also affected by the regulations governing banks
and other financial institutions and, to the extent operations take place
outside the United States, by foreign regulations. Changes in laws or
regulations or in governmental policies could materially and adversely affect
the business and operations of Federated.

      NO ASSURANCE OF SUCCESSFUL FUTURE ACQUISITIONS. Federated's business
strategy contemplates the acquisition of other investment management companies
as well as investment assets. There can be no assurance that Federated will find
suitable acquisition candidates at acceptable prices, have sufficient capital
resources to realize its acquisition strategy, be successful in entering into
definitive agreements for desired acquisitions, or successfully integrate
acquired companies into Federated, or that any such acquisitions, if
consummated, will prove to be advantageous to Federated.

      SYSTEMS AND TECHNOLOGY RISKS. Federated utilizes software and related
technologies throughout its businesses including both proprietary systems as
well as those provided by outside vendors. As the century date change occurred,
Federated encountered no significant problems with date-sensitive systems of its
own or third party vendors in recognizing the year 2000. Unanticipated issues
could still occur and it is not possible to predict with certainty all of the
adverse effects that could result from a failure of a third party to address
computer system problems related to year 2000 issues or otherwise. Accordingly,
there can be no assurance that potential system interruptions or the cost
necessary to rectify the problems would not have a material adverse effect on
Federated's business, financial condition, results of operations or business
prospects.

ITEM 2 - PROPERTIES

      Federated's facilities are concentrated in Pittsburgh, Pennsylvania where
it leases space sufficient to meet its operating needs. Federated's headquarters
is located in the Federated Investors Tower, where Federated occupies
approximately 345,000 square feet. Federated leases approximately 100,000 square
feet at the Pittsburgh Office and Research Park and an aggregate of 60,000
square feet at other locations in Pittsburgh. Federated also leases
approximately 50,400 square feet of office space for a portion of its servicing
business in Rockland, Massachusetts. Federated maintains office space in Dublin,
Ireland, where administrative offices for offshore funds are maintained; in New
York, New York, where Federated Global Investment Management Corp. conducts its
business; and in Gibbsboro, New Jersey, where Federated Investors Trust Company
is located. Additional offices in Naples, Florida and Wilmington, Delaware are
subleased by Federated.

ITEM 3 - LEGAL PROCEEDINGS

      There is currently no pending litigation of a material nature involving
Federated.

ITEM 4 - SUBMISSION OF MATTERS TO VOTE OF SECURITY HOLDERS

      None.


                                     PART II

ITEM 5 - MARKET FOR THE COMPANY'S COMMON EQUITY AND RELATED STOCK HOLDER MATTERS

      The information required by this Item is contained in Federated's 1999
Annual Report to Shareholders under the caption "Management's Discussion and
Analysis of Financial Condition and Results of Operations" and "Notes to
Consolidated Financial Statements" and is incorporated herein by reference.

ITEM 6 - SELECTED FINANCIAL DATA

      The information required by this Item is contained in Federated's 1999
Annual Report to Shareholders under the caption "Selected Consolidated Financial
Data" and is incorporated herein by reference.

ITEM 7 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

      The information required by this Item is contained in Federated's 1999
Annual Report to Shareholders under the caption "Management's Discussion and
Analysis of Financial Condition and Results of Operations" and is incorporated
herein by reference.

ITEM 7A - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

      The information required by this Item is contained in Federated's 1999
Annual Report to Shareholders under the caption "Management's Discussion and
Analysis of Financial Condition and Results of Operations" and is incorporated
herein by reference.

ITEM 8 - FINANCIAL STATEMENT AND SUPPLEMENTARY DATA

      The information required by this Item is contained in Federated's 1999
Annual Report to Shareholders under the captions "Report of Ernst & Young LLP,
Independent Auditors," "Consolidated Balance Sheets," "Consolidated Statements
of Income," "Consolidated Statements of Changes in Shareholders' Equity,"
"Consolidated Statements of Cash Flows," and "Notes to Consolidated Financial
Statements" and is incorporated herein by reference.

ITEM 9 - CHANGES AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE

      None.


                                    PART III

ITEM 10 - DIRECTORS AND EXECUTIVE OFFICERS OF THE COMPANY

      The information required by this Item (other than the information set
forth below) will be contained in Federated's Information Statement for its 1999
Annual Meeting of Shareholders under the captions "Board of Directors and
Election of Directors" and "Security Ownership - Section 16(a) Beneficial
Ownership Reporting Compliance," and is incorporated herein by reference.

EXECUTIVE OFFICERS

      The following table sets forth certain information regarding the executive
officers of Federated as of March 22, 2000:




                                                                                

NAME                                           POSITION                                  AGE
- ----                                           --------                                  ---
John F. Donahue             Chairman and Director                                         75

J. Christopher Donahue      President, Chief Executive Officer and Director               50

Arthur L. Cherry            President,   Federated   Services  Company  and               46
                            Director

William D. Dawson III       Executive Vice  President and Chief  Investment               51
                            Officer  -  U.S.   Fixed  Income  of  Federated
                            Advisory Companies*

Thomas R. Donahue           Vice  President,   Treasurer,  Chief  Financial               41
                            Officer and Director

John B. Fisher              President  -  Institutional  Sales  Division of               43
                            Federated Securities Corp. and Director

Henry A. Frantzen           Executive Vice  President and Chief  Investment               57
                            Officer - Global
                            Equity and Fixed Income of  Federated  Advisory
                            Companies*

James F. Getz               President   --   Retail   Sales   Division   of               53
                            Federated Securities Corp. and Director

J. Thomas Madden            Executive Vice  President and Chief  Investment               52
                            Officer  -  Domestic  Equity,  High  Yield  and
                            Asset Allocation of Federated
                            Advisory Companies*

Eugene F. Maloney           Vice President and Director                                   55

John W. McGonigle           Executive Vice President, Chief Legal Officer,                61
                            Secretary and Director
- ----------------------------


*Federated  Advisory Companies include the following  subsidiaries of Federated:
Federated  Global  Investment   Management  Corp.,  Passport  Research  Limited,
Federated Investment Counseling, and Federated Investment Management Company.

     Mr. John F. Donahue was a founder of the  predecessor  of Federated and was
Chairman and Chief  Executive  Officer of  Federated  and a trustee of Federated
Investors, a Delaware business trust (the "Trust"), prior to the May 1998 merger
of the Trust into Federated,  its  wholly-owned  subsidiary (the "Merger").  Mr.
Donahue has  continued to serve as Chairman  following the  consummation  of the
Merger.  He served as President from 1989 until 1993. Mr. Donahue is Chairman or
President  and a  director  or trustee of the  investment  companies  managed by
subsidiaries of Federated. Mr. Donahue was a member of the Board of Directors of
Aetna Life and Casualty  Company until April 1995.  Mr. Donahue is the father of
J.  Christopher  Donahue  and  Thomas  R.  Donahue,  each of whom  serves  as an
executive officer and director of Federated.

     Mr. J.  Christopher  Donahue was a trustee of the Trust from 1989 until the
consummation  of the  Merger  and has been a  director  of  Federated  since the
consummation of the Merger.  He served as President and Chief Operating  Officer
from 1993  until  April  1998,  when he  became  President  and Chief  Executive
Officer.  Prior to  1993,  he  served  as Vice  President.  He is  President  or
Executive Vice President of the investment  companies managed by subsidiaries of
Federated  and a director,  trustee or managing  general  partner of some of the
investment companies.  Mr. Donahue is the son of John F. Donahue and the brother
of Thomas R. Donahue.

      Mr. Arthur L. Cherry was a trustee of the Trust from 1997 until the Merger
and has been a director of Federated since the consummation of the Merger. He is
the President of Federated Services Company, a wholly-owned subsidiary of
Federated. Prior to joining Federated in January 1997, he was a managing partner
of AT&T Solutions and former president of Scudder Services Corporation.

     Mr.  William D. Dawson III serves as  Executive  Vice  President  and Chief
Investment Officer - U.S. Fixed Income of Federated Advisory  Companies.  He has
served as a portfolio  manager and held various other  positions in the advisory
companies.  He is  responsible  for the  investment  policy  and  management  of
domestic fixed-income funds. Mr. Dawson is a Chartered Financial Analyst.

     Mr.  Thomas R.  Donahue  was a trustee  of the  Trust  from 1995  until the
consummation  of the  Merger  and has been a  director  of  Federated  since the
consummation of the Merger.  He has been Vice President since 1993 and currently
serves as Vice  President,  Treasurer  and  Chief  Financial  Officer.  Prior to
joining  Federated,  Mr. Donahue was in the venture capital  business,  and from
1983 to 1987 was employed by PNC Bank in its Investment  Banking  Division.  Mr.
Donahue is the son of John F. Donahue and the brother of J. Christopher Donahue.

     Mr. John B. Fisher has been a director of Federated since the  consummation
of  the  Merger.  He is  President-Institutional  Sales  Division  of  Federated
Securities Corp., a wholly-owned subsidiary of Federated, and is responsible for
the  distribution of Federated's  products and services to investment  advisors,
insurance companies, retirement plans and corporations

     Mr.  Henry A.  Frantzen  serves  as  Executive  Vice  President  and  Chief
Investment  Officer - Global  Equity  and Fixed  Income  of  Federated  Advisory
Companies.  Mr.  Frantzen is primarily  responsible for the management of global
equity and  fixed-income  funds.  Prior to joining  Federated,  Mr. Frantzen was
Managing  Director  of  International   Equities  for  Brown  Brothers  Harriman
Investment Management Ltd. and Manager and International Equity Chief Investment
Officer for Brown Brothers Harriman and Co. from 1992 to 1995. Prior thereto Mr.
Frantzen  served in  executive  capacities  for  various  investment  management
companies,  including Oppenheimer  Management Corp., Yamaichi Capital Management
and CREF.

     Mr. James F. Getz has been a director of Federated  since the  consummation
of the Merger.  He serves as  President  - Retail  Sales  Division of  Federated
Securities Corp., a wholly-owned subsidiary of Federated, and is responsible for
the marketing and sales efforts in the trust and broker/dealer markets. Mr. Getz
is a Chartered Financial Analyst.

     Mr.  J.  Thomas  Madden  serves  as  Executive  Vice  President  and  Chief
Investment  Officer -  Domestic  Equity,  High  Yield and  Asset  Allocation  of
Federated Advisory  Companies.  Mr. Madden oversees the portfolio  management in
the domestic  equity,  high yield and asset  allocation  areas.  Mr. Madden is a
Chartered Financial Analyst.

      Mr. Eugene F. Maloney was a trustee of the Trust from 1989 until the
consummation of the Merger and has continued as a director of Federated since
the consummation of the Merger. He serves as a Vice President of Federated and
provides certain legal, technical and management expertise to Federated's sales
divisions, including regulatory and legal requirements relating to a bank's use
of mutual funds in both trust and commercial environments.

     Mr.  John W.  McGonigle  was a  trustee  of the Trust  from 1989  until the
consummation of the Merger and has been a director since the consummation of the
Merger. Mr. McGonigle has served as Secretary of Federated since 1989. He served
as Vice  President  of Federated  from 1989 until  August  1995,  when he became
Executive Vice President. Mr. McGonigle acted as General Counsel until 1998 when
he became the Chief Legal Officer. Mr. McGonigle is Executive Vice President and
Secretary of the investment companies managed by subsidiaries of Federated.


ITEM 11 - EXECUTIVE COMPENSATION

      The information required by this Item is contained in Federated's
Information Statement for the 2000 Annual Meeting of Shareholders under the
captions "Board of Directors and Election of Directors" and "Executive
Compensation" and is incorporated herein by reference.

ITEM 12 - SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

      The information required by this Item is contained in Federated's
Information Statement for the 2000 Annual Meeting of Shareholders under the
caption "Security Ownership" and is incorporated herein by reference.

ITEM 13 - CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

      None.


                                     PART IV

ITEM 14 - EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K

(A)(1)      FINANCIAL STATEMENTS:

      The information required by this Item is contained in Federated's 1999
Annual Report to Shareholders under the captions "Report of Ernst & Young LLP,
Independent Auditors," "Consolidated Balance Sheets," "Consolidated Statements
of Income," "Consolidated Statements of Changes in Shareholders' Equity,"
"Consolidated Statements of Cash Flows," and "Notes to Consolidated Financial
Statements" and is incorporated herein by reference.

(A)(2)      FINANCIAL STATEMENT SCHEDULES:

      Schedules for which provision is made in the applicable accounting
regulations of the United States Securities and Exchange Commission have been
omitted because such schedules are not required under the related instructions
or are inapplicable or because the information required is included in the
Consolidated Financial Statements or notes thereto.

(A)(3)      EXHIBITS:

The following exhibits are filed or incorporated as part of this report:

 Exhibit

 NUMBER                                 DESCRIPTION

  2.01      Agreement and Plan of Merger, dated as of February 20, 1998, between
            Federated Investors and Federated (incorporated by reference to
            Exhibit 2.01 to the Registration Statement on Form S-1 (File No.
            333-48405))

  3.01      Restated Articles of Incorporation of Federated (incorporated by
            reference to Exhibit 3.01 to the Registration Statement on Form S-1
            (File No. 333-48405))

  3.02      Restated By-Laws of Federated (incorporated by reference to Exhibit
            3.02 to the Registration Statement on Form S-1 (File No. 333-48405))

  4.01      Form of Class A Common Stock certificate (incorporated by reference
            to Exhibit 4.01 to the Registration Statement on Form S-1 (File No.
            333-48405))

  4.02      Form of Class B Common Stock certificate (incorporated by reference
            to Exhibit 4.02 to the Registration Statement on Form S-1 (File No.
            333-48405))

  4.03      Stock Purchase Agreement, dated August 1, 1989, between Federated
            and Westinghouse Credit Corporation (incorporated by reference to
            Exhibit 4.04 to the Registration Statement on Form S-1 (File No.

            333-48405))

  4.04      Intercompany Subordination Agreement, dated as of June 15, 1996, by
            and among Federated Investors and its subsidiaries (incorporated by
            reference to Exhibit 4.05 to the Registration Statement on Form S-1
            (File No. 333-48405))

  4.05      Shareholder Rights Agreement, dated August 1, 1989, between
            Federated and The Standard Fire Insurance Company, as amended
            January 31, 1996 (incorporated by reference to Exhibit 4.06 to the
            Registration Statement on Form S-1 (File No. 333-48405))

  4.06      Senior Secured Credit Agreement, dated as of January 31, 1996, by
            and among Federated and the Banks set forth therein and PNC Bank,
            National Association (incorporated by reference to Exhibit 4.07 to
            the Registration Statement on Form S-1 (File No. 333-48405))

  9.01      Voting Shares Irrevocable Trust dated May 31, 1989 (incorporated by
            reference to Exhibit 9.01 to the Registration Statement on Form S-1
            (File No. 333-48405))

  10.01     Amendment No. 4 to Credit Agreement, dated as of May 11, 1998, by
            and among Federated Investors, Inc., the banks set forth therein
            and PNC Bank, National Association. (incorporated by reference to
            Exhibit 10.1 of the June 30, 1998 Quarterly Report on Form 10-Q
            (File No. 001-14818))

  10.02     Amendment No. 5 to Credit Agreement, dated as of May 11, 1998, by
            and among Federated Investors, Inc., the banks set forth therein
            and PNC Bank, National Association. (incorporated by reference to
            Exhibit 10.2 of the June 30, 1998 Quarterly Report on Form 10-Q
            (File No. 001-14818))

  10.03     Amendment No. 6 to Credit Agreement, dated as of December 3, 1998,
            by and among Federated Investors, Inc., the banks set forth therein
            and PNC Bank, National Association  (incorporated by reference to
            Exhibit 10.03 of the Form 10-K for the fiscal year ended December
            31, 1998 (File No. 001-14818))

   10.04    Amendment No. 7 to Credit Agreement, dated as of February 22, 1999,
            by and among Federated Investors, Inc., the banks set forth therein
            and PNC Bank, National Association (incorporated by reference to
            Exhibit 10.1 of the June 30, 1999 Quarterly Report on Form 10-Q
            (File No. 001-14818))

  10.05     Federated Note Purchase Agreement, dated as of June 15, 1996
            (incorporated by reference to Exhibit 4.08 to the Registration
            Statement on Form S-1 (File No. 333-48405))

  10.06     Federated Program Master Agreement, dated as of October 24, 1997,
            among Federated, Federated Funding 1997-1, Inc., Federated
            Management Company, Federated Securities Corp., Wilmington Trust
            Company, PLT Finance, L.P., Putnam, Lovell & Thornton Inc. and
            Bankers Trust Company (incorporated by reference to Exhibit 4.09 to
            the Registration Statement on Form S-1 (File No. 333-48405))

  10.07     Federated Investors, Inc. Employee Stock Purchase Plan, amended as
            of July 20, 1999 (incorporated by reference to Exhibit 10.2 of the
            June 30, 1999 Quarterly Report on Form 10-Q (File No. 001-14818))

  10.08     Federated Investors Program Initial Purchase Agreement, dated as of
            October 24, 1997, between Federated Funding 1997-1, Inc. and
            Wilmington Trust Company, solely as Trustee of the PLT Finance Trust
            1997-1 (incorporated by reference to Exhibit 4.10 to the
            Registration Statement on Form S-1 (File No. 333-48405))

  10.09     Federated Investors Program Revolving Purchase Agreement, dated as
            of October 24, 1997, between Federated Funding 1997-1, Inc. and
            PLT Finance, L.P. (incorporated by reference to Exhibit 4.11 to the
            Registration Statement on Form S-1 (File No. 333-48405))

  10.10     Federated Investors Program Fee Agreement, dated as October 24,
            1997, between Federated Investors and PLT Finance, L.P.
            (incorporated by reference to Exhibit 4.12 to the Registration
            Statement on Form S-1 (File No. 333-48405))

  10.11     Schedule X to Federated Program Master Agreement, dated as of
            October 24, 1997, among Federated, Federated Funding 1997-1, Inc.,
            Federated Investors Management Company, Federated Securities Corp.,
            Wilmington Trust Company, PLT Finance, L.P., Putnam, Lovell &
            Thornton Inc. and Bankers Trust Company (incorporated by reference
            to Exhibit 4.13 to the Registration Statement on Form S-1 (File No.
            333-48405))

  10.12     Stock Incentive Plan, as amended as of July 20, 1999 (incorporated
            by reference to Exhibit 10.3 to the June 30, 1999 Quarterly Report
            on Form 10-Q (File No. 001-14818))

  10.13     Executive Annual Incentive Plan (incorporated by reference to
            Exhibit 10.02 to the Registration Statement on Form S-1 (File No.
            333-48405))

  10.14     Form of Bonus Stock Option Agreement (incorporated by reference to
            Exhibit 10.13 of the Form 10-K for the fiscal year ended December
            31, 1998 (File No. 001-14818))

  10.15     Federated Investors Tower Lease dated January 1, 1993 (incorporated
            by reference to Exhibit 10.03 to the Registration Statement on Form
            S-1 (File No. 333-48405))

  10.16     Federated Investors Tower Lease dated February 1, 1994 (incorporated
            by reference to Exhibit 10.04 to the Registration Statement on Form
            S-1 (File No. 333-48405))

  10.17     Centre City Tower Lease dated July 23, 1992, as amended
            (incorporated by reference to Exhibit 10.05 to the Registration
            Statement on Form S-1 (File No. 333-48405))

  10.18     Employment Agreement, dated January 16, 1997, between Federated
            Investors and an executive officer (incorporated by reference to
            Exhibit 10.06 to the Registration Statement on Form S-1 (File No.
            333-48405))

  10.19     Employment Agreement, dated December 28, 1990, between Federated
            Investors and an executive officer (incorporated by reference to
            Exhibit 10.08 to the Registration Statement on Form S-1 (File No.
            333-48405))

  10.20     Employment Agreement, dated December 22, 1993, between Federated
            Securities Corp. and an executive officer (incorporated by
            reference to Exhibit 10.09 to the Registration Statement on Form
            S-1 (File No. 333-48405))

  10.21     Employment Agreement, dated March 17, 1995, between Federated
            Investors and an executive officer (incorporated by reference to
            Exhibit 10.07 to the Registration Statement on Form S-1 (File No.
            333-48405))

  13.01     Selected Portions of 1999 Annual Report to Shareholders (Filed
            herewith)

  21.01     Subsidiaries of the Registrant (Filed herewith)

  23.01     Consent of Ernst & Young LLP (Filed herewith)

  27.01     Financial Data Schedule (Filed herewith)


(B)   REPORTS ON FORM 8-K:

      No current reports on Form 8-K were filed for the quarter ended December
31, 1999.

(C)   EXHIBITS:

      See (a)(3) above.

(D)   FINANCIAL STATEMENT SCHEDULES:

      See (a)(2) above.


                                   SIGNATURES

      Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this Annual Report to be
signed on its behalf by the undersigned, thereunto duly authorized.

                                  FEDERATED INVESTORS, INC.

                                  By: /S/ J. CHRISTOPHER DONAHUE
                                      J. Christopher Donahue
                                      President and Chief Executive Officer

                                     Date:       March 28, 2000


      Pursuant to the requirements of the Exchange Act, this report has been
signed below by the following persons on behalf of the Registrant and in the
capacities and on the dates indicated.

       SIGNATURE                       TITLE                    DATE

/s/ John F. Donahue        Chairman and Director            March 28, 2000
- -------------------------
John F. Donahue

/s/ J. Christopher Donahue   President, Chief Executive     March 28, 2000
- -------------------------    Officer and Director
J. Christopher Donahue      (Principal Executive Officer)
e

 /s/ John W. McGonigle     Director                         March 28, 2000
- -------------------------
John W. McGonigle

/s/ Arthur L. Cherry       Director                         March 28, 2000
- -------------------------
Arthur L. Cherry

/s/ James F. Getz          Director                         March 28, 2000
- -------------------------
James F. Getz

/s/ John B. Fisher         Director                         March 28, 2000
- -------------------------
John B. Fisher

       SIGNATURE                       TITLE                    DATE

/s/ Thomas R. Donahue      Chief Financial Officer and      March 28, 2000
- -------------------------  Director Principal Accounting
                           and Financial Officer)


/s/ Eugene F. Maloney      Director                         March 28, 2000
- -------------------------
Eugene F. Maloney

/s/ Michael J. Farrell     Director                         March 28, 2000
- -------------------------
Michael J. Farrell

/s/ James L. Murdy         Director                         March 28, 2000
- -------------------------
James L. Murdy

                                  EXHIBIT INDEX

 Exhibit

 NUMBER                                 DESCRIPTION

  13.01     Selected Portions of 1999 Annual Report to Shareholders

  21.01     Subsidiaries of the Registrant

  23.01     Consent of Ernst & Young LLP

  27.01     Financial Data Schedule






                                                                        

                                   Appendix A

                                 FEDERATED FUNDS

                                Number of                                                Fund
                                Share                            Assets                  Effective
           FUND NAME            Classes     FUND CATEGORY        as of          LOAD     DATE
                                as of                            12/31/99
           ---------            --------    -------------        --------       ----     ----------

                                12/31/99

EQUITY FUNDS:

FEDERATED AGGRESSIVE GROWTH       3      Equity Fund - Growth    $125,454,745   Y      11/18/1996
FUND

FEDERATED AMERICAN LEADERS        4      Equity Fund - Growth    4,020,031,975  Y      2/26/1969
FUND  INC.                                    and Income
FEDERATED AMERICAN LEADERS        1      Equity Fund - Growth    477,433,471    N      12/15/1993
FUND II                                       and Income
FEDERATED ASIA PACIFIC GROWTH     3      International/Global    61,707,460     Y      1/31/1996
FUND

FEDERATED CAPITAL APPRECIATION    3      Equity Fund - Growth    488,977,392    Y      11/14/1995
FUND

FEDERATED COMMUNICATIONS          3      Equity Fund - Growth    354,802,418    Y      9/13/1999
TECHNOLOGY FUND
FEDERATED EMERGING MARKETS        1      International/Global    7,320,500      N      9/22/1997
COMMINGLED TRUST
FEDERATED EMERGING MARKETS FUND   3      International/Global    78,758,039     Y      1/31/1996
FEDERATED EQUITY INCOME FUND      4             Equity           2,886,577,082  Y      12/30/1986
INC.

FEDERATED EQUITY INCOME FUND II   1             Equity           87,534,571     N      12/16/1996
FEDERATED EUROPEAN GROWTH FUND    3      International/Global    75,353,576     Y      1/31/1996
FEDERATED GLOBAL EQUITY INCOME    3      International/Global    42,507,348     Y      3/8/1998
FUND

FEDERATED GLOBAL FINANCIAL        3      International/Global    18,510,535     Y      8/24/1998
SERVICES FUND
FEDERATED GROWTH STRATEGIES       3      Equity Fund - Growth    1,347,884,313  Y      8/23/1984
FUND

FEDERATED GROWTH STRATEGIES       1      Equity Fund - Growth    132,596,607    N      9/30/1995
FUND II
FEDERATED INTERNATIONAL EQUITY    1      International Equity    30,817,436     N      3/21/1997
COMMINGLED TRUST                                 Fund
FEDERATED INTERNATIONAL EQUITY    3      International Equity    572,959,874    Y      8/17/1984
FUND                                             Fund
FEDERATED INTERNATIONAL EQUITY    1      International Equity    104,382,150    N      4/4/1995
FUND II                                          Fund
FEDERATED INTERNATIONAL SMALL     3      International/Global    1,362,673,868  Y      1/31/1996
COMPANY FUND
FEDERATED LARGE CAP GROWTH FUND   3      Equity Fund - Growth    457,148,472    Y      12/23/1998
FEDERATED LATIN AMERICAN          3      International/Global    13,416,052     Y      1/31/1996
GROWTH FUND
FEDERATED MANAGED AGGRESSIVE      2     Asset Allocation Fund    174,878,090    N      3/11/1994
GROWTH FUND
FEDERATED MANAGED GROWTH AND      2     Asset Allocation Fund    216,179,270    N      3/11/1994
INCOME FUND
FEDERATED MANAGED GROWTH FUND     2     Asset Allocation Fund    274,651,548    N      3/11/1994
FEDERATED MAX-CAP FUND            3      Equity Fund - Growth    3,110,178,933  N      7/2/1990
                                           and Income/Index

FEDERATED MID-CAP FUND            1      Equity Fund - Growth    127,344,613    N      7/7/1992
                                           and Income/Index

FEDERATED MINI-CAP FUND           2      Equity Fund - Growth    115,192,320    N      7/7/1992
                                           and Income/Index

FEDERATED SMALL CAP STRATEGIES    3      Equity Fund - Growth    461,873,674    Y      9/13/1995
FUND

FEDERATED SMALL CAP STRATEGIES    1      Equity Fund - Growth    2,703,532      N      5/21/1999
FUND II

FEDERATED STOCK AND BOND FUND     3            Balanced          286,899,894    N      10/31/1984
INC.

FEDERATED STOCK TRUST             1      Equity Fund - Growth    1,681,976,431  N      3/31/1982
                                              and Income
FEDERATED UTILITY FUND  INC.      4     Equity Fund - Domestic   1,423,748,506  Y      5/29/1987
                                               Utility
FEDERATED UTILITY FUND II         1     Equity Fund - Domestic   187,666,085    N      12/15/1993
                                               Utility

FEDERATED WORLD UTILITY FUND      4      International Equity    130,766,627    Y      4/12/1994
                                                 Fund

                                                                 ---------------

TOTAL EQUITY FUNDS                                               $20,940,907,407
                                                                 ---------------

FIXED-INCOME FUNDS:

CAPITAL PRESERVATION FUND         1      Short-Term Corporate    $630,835,972   N      8/1/1988
                                        Bond Fund - High Grade
FEDERATED ADJUSTABLE RATE U.S.    1      Government Bond Fund    113,029,416    Y      3/2/1992
GOVERNMENT FUND INC
FEDERATED ARMS FUND               2        Adjustable Rate       366,649,950    N      12/3/1985
                                         Mortgage-Backed Fund

FEDERATED BOND FUND               4      Long Corporate Bond     1,018,886,222  Y      6/27/1995
                                          Fund - High Grade
FEDERATED CALIFORNIA MUNICIPAL    2      Municipal Bond Fund     58,637,731     Y      11/24/1992
INCOME FUND
FEDERATED FUND FOR U.S.           3      Mortgage Backed Fund    1,133,910,260  Y      10/6/1969
GOVERNMENT SECURITIES  INC
FEDERATED FUND FOR U.S.           1      Mortgage Backed Fund    133,676,886    N      12/15/1993
GOVERNMENT SECURITIES II
FEDERATED GNMA TRUST              2      Mortgage Backed Fund    934,730,662    N      3/23/1982
FEDERATED GOVERNMENT INCOME       4      Mortgage Backed Fund    1,235,246,772  Y      8/2/1996
SECURITIES  INC.
FEDERATED GOVERNMENT              2      Government Bond Fund    159,849,745    N      9/29/1999
ULTRASHORT FUND
FEDERATED HIGH INCOME             1        High Yield Fund       73,875,244     Y      9/20/1993
ADVANTAGE FUND
FEDERATED HIGH INCOME BOND        3        High Yield Fund       2,312,156,535  Y      11/30/1977
FUND  INC.
FEDERATED HIGH INCOME BOND        1        High Yield Fund       239,008,449    N      12/15/1993
FUND II

FEDERATED HIGH YIELD TRUST        1        High Yield Fund       857,261,646    N      8/23/1984
FEDERATED INCOME TRUST            2      Mortgage Backed Fund    727,364,011    N      3/30/1982
FEDERATED INTERMEDIATE INCOME     2    General Investment Grade  317,822,067    N      12/8/1993
FUND

FEDERATED INTERMEDIATE            1      Municipal Bond Fund     195,826,988    N      12/26/1985
MUNICIPAL TRUST
FEDERATED INTERNATIONAL HIGH      3    International Bond Fund   94,086,491     Y      9/9/1996
INCOME FUND
FEDERATED INTERNATIONAL INCOME    3    International Bond Fund   125,227,528    Y      5/15/1991
FUND
FEDERATED LIMITED DURATION FUND   2      Mortgage Backed Fund    78,110,666     N      9/16/1996
FEDERATED LIMITED TERM FUND       2      Short-Term Corporate    141,376,099    Y      12/24/1991
                                        Bond Fund - High Grade

FEDERATED LIMITED TERM            2      Municipal Bond Fund     110,194,879    Y      8/31/1993
MUNICIPAL FUND
FEDERATED MANAGED INCOME FUND     2     Asset Allocation Fund    126,888,706    N      3/11/1994
FEDERATED MICHIGAN                1      Municipal Bond Fund     71,853,886     Y      9/9/1991
INTERMEDIATE MUNICIPAL TRUST
FEDERATED MORTGAGE FUND           2       US Government Int.     18,237,558     N      6/30/1998
                                              Muni. Bond
FEDERATED MUNICIPAL               4      Municipal Bond Fund     412,170,032    Y      5/3/1996
OPPORTUNITIES FUND  INC.
FEDERATED MUNICIPAL SECURITIES    3      Municipal Bond Fund     561,235,467    N      10/4/1976
FUND  INC.
FEDERATED NEW YORK MUNICIPAL      1      Municipal Bond Fund     22,817,349     Y      11/24/1992
INCOME FUND
FEDERATED NORTH CAROLINA          1      Municipal Bond Fund     41,184,674     Y      6/4/1999
MUNICIPAL INCOME FUND
FEDERATED OHIO MUNICIPAL          1      Municipal Bond Fund     75,586,085     Y      10/10/1990
INCOME FUND
FEDERATED PENNSYLVANIA            2      Municipal Bond Fund     246,414,270    Y      10/10/1990
MUNICIPAL INCOME FUND
FEDERATED QUALITY BOND FUND II    1      Short-Term Corporate    18,593,764     N      4/21/1999
                                        Bond Fund - High Grade

FEDERATED SHORT-TERM INCOME       2      Short-Term Corporate    206,489,555    N      7/1/1986
FUND                                    Bond Fund - High Grade

FEDERATED SHORT-TERM MUNICIPAL    2      Municipal Bond Fund     213,572,799    N      8/20/1981
TRUST

FEDERATED STRATEGIC INCOME FUND   4            Balanced          976,495,584    Y      4/5/1994
FEDERATED STRATEGIC INCOME        1            Balanced          16,156,386     N      5/21/1999
FUND II

FEDERATED TOTAL RETURN BOND       2      Mortgage Backed Fund    166,914,941    N      1/19/1994
FUND

FEDERATED U.S.GOVERNMENT BOND     1      Mortgage Backed Fund    120,353,134    N      12/2/1985
FUND

FEDERATED ULTRASHORT BOND FUND    1        US Government ST      215,135,511    N      10/27/1998
FEDERATED US GOVERNMENT           2      Government Bond Fund    510,111,022    N      3/15/1984
SECURITIES FUND: 1-3 YEARS
FEDERATED US GOVERNMENT           2      Government Bond Fund    685,778,346    N      2/18/1983
SECURITIES FUND: 2-5 YEARS
FEDERATED US GOVERNMENT           2      Government Bond Fund    93,197,000     N      9/13/1995
SECURITIES FUND: 5-10 YRS

                                                                 ---------------
TOTAL FIXED-INCOME FUNDS                                         $15,856,950,288
                                                                 ---------------
                                                                 ---------------
TOTAL EQUITY AND FIXED-INCOME                                    $36,797,857,695
FUNDS
                                                                 ---------------

MONEY MARKET FUNDS:

ALABAMA MUNICIPAL CASH TRUST      1     Municipal Money Market   $229,292,996   N      12/1/1993
ARIZONA MUNICIPAL CASH TRUST      1     Municipal Money Market   31,042,873     N      5/30/1998
AUTOMATED CASH MANAGEMENT TRUST   2    Prime Money Market Fund   2,738,614,255  N      9/19/1996
AUTOMATED GOVERNMENT CASH         1    Government Money Market   629,143,438    N      2/2/1990
RESERVES                                         Fund
AUTOMATED GOVERNMENT MONEY        1    Government Money Market   1,941,191,200  N      6/1/1982
TRUST                                            Fund
AUTOMATED TREASURY CASH           1    Government Money Market   248,208,224    N      8/5/1991
RESERVES                                         Fund
CALIFORNIA MUNICIPAL CASH TRUST   2     Municipal Money Market   596,190,790    N      2/29/1996
CONNECTICUT MUNICIPAL CASH        1     Municipal Money Market   276,209,077    N      11/1/1989
TRUST
EDWARD D. JONES DAILY PASSPORT    1    Government Money Market   8,645,883,754  N      5/9/1980
CASH TRUST                                       Fund
FEDERATED MASTER TRUST            1    Prime Money Market Fund   347,756,802    N      12/16/1977
FEDERATED PRIME MONEY FUND II     1    Prime Money Market Fund   192,227,319    N      12/15/1993
FEDERATED SHORT-TERM EURO FUND    1    Prime Money Market Fund   116,289,942    N      11/9/1999
FEDERATED SHORT-TERM U.S.         1    Government Money Market   289,118,695    N      4/16/1987
GOVERNMENT TRUST                                 Fund
FEDERATED SHORT-TERM U.S.         1    Government Money Market   958,309,200    N      9/20/1993
PRIME FUND                                       Fund
FEDERATED SHORT-TERM U.S.GOVT     3    Government Money Market   1,004,568,359  N      1/18/1991
SECURITIES FUND                                  Fund
FEDERATED SHORT-TERM              1    Government Money Market   1,179,319,668  N      4/16/1992
U.S.TREASURY SECURITIES FUND                     Fund
FEDERATED TAX-FREE TRUST          1     Municipal Money Market   537,553,865    N      3/6/1979
FLORIDA MUNICIPAL CASH TRUST      2     Municipal Money Market   929,555,860    N      11/16/1995
GEORGIA MUNICIPAL CASH TRUST      1     Municipal Money Market   263,692,267    N      8/14/1995
GOVERNMENT CASH SERIES            1    Government Money Market   597,456,538    N      8/15/1989
                                                 Fund

GOVERNMENT OBLIGATIONS FUND       2    Government Money Market   7,233,911,699  N      12/11/1989
                                                 Fund
GOVERNMENT OBLIGATIONS TAX        2    Government Money Market   3,176,886,132  N      5/7/1995
MANAGED FUND                                     Fund
LIBERTY U.S. GOVERNMENT MONEY     2    Government Money Market   684,495,922    N      6/6/1980
MARKET TRUST                                     Fund
LIQUID CASH TRUST                 1    Government Money Market   214,602,844    N      12/12/1980
                                                 Fund
MARYLAND MUNICIPAL CASH TRUST     1     Municipal Money Market   42,946,829     N      5/4/1994
MASSACHUSETTS MUNICIPAL CASH      2     Municipal Money Market   660,978,331    N      2/22/1993
TRUST

MICHIGAN MUNICIPAL CASH TRUST     2     Municipal Money Market   202,197,995    N      2/29/1996
MINNESOTA MUNICIPAL CASH TRUST    2     Municipal Money Market   510,566,059    N      12/31/1990
MONEY MARKET MANAGEMENT  INC.     1    Prime Money Market Fund   76,840,950     N      2/25/1993
MONEY MARKET TRUST                1    Prime Money Market Fund   379,492,960    N      10/13/1978
MUNICIPAL CASH SERIES             1     Municipal Money Market   438,463,219    N      8/15/1989
MUNICIPAL CASH SERIES II          1     Municipal Money Market   297,938,915    N      1/25/1991
MUNICIPAL OBLIGATIONS FUND        3     Municipal Money Market   460,153,328    N      2/5/1993
NEW JERSEY MUNICIPAL CASH TRUST   2     Municipal Money Market   169,881,380    N      12/10/1990
NEW YORK MUNICIPAL CASH TRUST     2     Municipal Money Market   752,499,565    N      5/30/1994
NORTH CAROLINA MUNICIPAL CASH     1     Municipal Money Market   192,711,765    N      12/1/1993
TRUST
OHIO MUNICIPAL CASH TRUST         3     Municipal Money Market   270,668,112    N      3/26/1991
PENNSYLVANIA MUNICIPAL CASH       3     Municipal Money Market   509,552,927    N      12/21/1990
TRUST
PRIME CASH OBLIGATIONS FUND       3    Prime Money Market Fund   4,046,223,456  N      2/5/1993
PRIME CASH SERIES                 1    Prime Money Market Fund   4,809,133,493  N      8/15/1989
PRIME OBLIGATIONS FUND            2    Prime Money Market Fund   10,806,001,60  N      7/5/1994
PRIME VALUE OBLIGATIONS FUND      3    Prime Money Market Fund   2,035,734,781  N      2/5/1993
TAX-FREE INSTRUMENTS TRUST        2     Municipal Money Market   1,992,964,183  N      12/21/1982
TAX-FREE OBLIGATIONS FUND         2     Municipal Money Market   3,234,405,272  N      12/11/1989
TENNESSEE MUNICIPAL CASH TRUST    2     Municipal Money Market   53,466,366     N      5/14/1996
TREASURY CASH SERIES              1    Government Money Market   879,082,399    N      2/5/1990
                                                 Fund

TREASURY CASH SERIES II           1    Government Money Market   257,362,042    N      1/25/1991
                                                 Fund

TREASURY OBLIGATIONS FUND         3    Government Money Market   11,719,388,14  N      4/14/1997
                                                 Fund
TRUST FOR GOVERNMENT CASH         1    Government Money Market   513,768,826    N      3/30/1989
RESERVES                                         Fund
TRUST FOR SHORT-TERM U.S.         1    Government Money Market   558,360,562    N      12/29/1975
GOVERNMENT SECURITIES                            Fund
TRUST FOR U.S. TREASURY           1    Government Money Market   1,247,307,988  N      11/8/1979
OBLIGATIONS                                      Fund
U.S. TREASURY CASH RESERVES       2    Government Money Market   2,579,055,829  N      5/14/1991
                                                 Fund

VIRGINIA MUNICIPAL CASH TRUST     2     Municipal Money Market   278,494,025    N      8/30/1993

                                                                 ---------------
TOTAL MONEY MARKET FUNDS                                        $ 83,037,163,016
                                                                 ---------------


                                -------                          ---------------
MANAGED FUND TOTAL               248                           $ 119,835,020,711
                                -------                          ---------------

Other Managed Assets*                                            4,984,535,660
                                                                 ---------------

                                                                 ---------------
TOTAL MANAGED ASSETS                                           $ 124,819,556,371
                                                                 ===============


Summary:
Total Number of Load Funds: 36
Total Number of No-Load
Funds:  93
Total Number of Funds:  129


*Other Managed Assets include
primarily Separate Accounts