UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
811-21822
(Investment Company Act File Number)
Federated Managed Pool Series
_______________________________________________________________
(Exact Name of Registrant as Specified in Charter)
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, Pennsylvania 15237-7000
(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: 12/31/06
Date of Reporting Period: Six months ended 12/31/06
ITEM 1. REPORTS TO STOCKHOLDERS
FEDERATED CORPORATE BOND STRATEGY PORTFOLIO
A PORTFOLIO OF FEDERATED MANAGED POOL SERIES
ANNUAL SHAREHOLDER REPORT
December 31, 2006
FINANCIAL HIGHLIGHTS
SHAREHOLDER EXPENSE EXAMPLE
MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
PORTFOLIO OF INVESTMENTS
STATEMENT OF ASSETS AND LIABILITIES
STATEMENT OF OPERATIONS
STATEMENT OF CHANGES IN NET ASSETS
NOTES TO FINANCIAL STATEMENTS
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
BOARD OF TRUSTEES AND TRUST OFFICERS
EVALUATION AND APPROVAL OF ADVISORY CONTRACT
VOTING PROXIES ON FUND PORTFOLIO SECURITIES
QUARTERLY PORTFOLIO SCHEDULE
NOT FDIC INSURED *MAY LOSE VALUE NO BANK GUARANTEE
FINANCIAL HIGHLIGHTS
(For a Share Outstanding Throughout Each Period)
PERIOD ENDED 1
12/31/2006
NET ASSET VALUE, BEGINNING OF PERIOD $10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.33
Net realized and unrealized gain on investments 0.34
TOTAL FROM INVESTMENT OPERATIONS 0.67
LESS DISTRIBUTIONS:
Distributions from net investment income (0.33 )
Distributions from net realized gain on investments (0.01 )
TOTAL DISTRIBUTIONS (0.34 )
NET ASSET VALUE, END OF PERIOD $10.33
TOTAL RETURN2 6.78 %
RATIOS TO AVERAGE NET ASSETS:
Net expenses 0.00 %3
Net investment income 6.07 %3
SUPPLEMENTAL DATA:
Net assets, end of period (000 omitted) $5,165
Portfolio turnover 20%
1 Reflects operations for the period from June 20, 2006 (start of performance)
to December 31, 2006.
2 Based on net asset value, which does not reflect the sales charge, redemption
fee, or contingent deferred sales charge, if applicable. Total returns for
periods of less than one year, are not annualized.
3 Computed on an annualized basis.
See Notes which are an integral part of the Financial Statements
SHAREHOLDER EXPENSE EXAMPLE
As a shareholder of the Fund, you incur ongoing costs, to the extent applicable,
management fees, 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 July 1, 2006 to December 31, 2006.
ACTUAL EXPENSES
The first section of the table below provides information about actual account
values and actual expenses. You may use the information in this section,
together with the amount you invested, to estimate the expenses that you
incurred over the period. Simply divide your account value by $1,000 (for
example, an $8,600 account value divided by $1,000 = 8.6), then multiply the
result by the number in the first section under the heading entitled "Expenses
Paid During Period" to estimate the expenses attributable to your investment
during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. Thus, you should not use the hypothetical account
values and expenses to estimate the actual ending account balance or your
expenses for the period. Rather, these figures are required to be provided to
enable you to compare the ongoing costs of investing in the Fund with other
funds. To do so, compare this 5% hypothetical example with the 5% hypothetical
examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only. Therefore, the second section of the table is useful in
comparing ongoing costs only, and will not help you determine the relative total
costs of owning different funds.
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID
VALUE VALUE DURING
PERIOD1
7/1/2006 12/31/2006
ACTUAL $1,000 $1,067.00 $0.00
HYPOTHETICAL
(ASSUMING A 5% RETURN BEFORE EXPENSES) $1,000 $1,025.21 $0.00
1 Expenses are equal to the Fund's annualized net expense ratio of 0.00%,
multiplied by the average account value over the period, multiplied by
184/365 (to reflect the one-half year period).
MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE
The portfolio's inception date and start of performance was June 20, 2006. For
the period from June 20, 2006 (start of performance) to December 31, 2006, the
Fund's total return based on net asset value was 6.78%, compared to 6.53% for
the Baa component of the Lehman Brothers U.S. Credit Index (LBUSCI) 1, a broad-
based securities market index. The portfolio's total return for the reporting
period reflected actual cash flows, transaction costs and other expenses, which
were not reflected in the total return of the referenced index.
MARKET OVERVIEW:
During the reporting period, interest rate levels fell for all U.S. Treasury
securities regardless of maturity date. The Federal Reserve Board (Fed) raised
the target Federal funds rate on June 29, 2006, but then made no further changes
during the reporting period. Additionally, corporate earnings continued to be
strong and reported at levels above Wall Street analyst expectations. The
combination of lower interest rates and strong corporate earnings provided a
very positive investment environment for corporate bond investors.
DURATION: 2
The Fund benefited from duration management during the reporting period, a
period when interest rates fell and bond prices rose. The portfolio's average
duration during the reporting period was 6.7 years which positioned the
portfolio longer than the LBUSCI.
YIELD CURVE:
The Fund's yield curve strategy provided a marginal positive impact to relative
performance. During the reporting period, the Fund held more securities in
intermediate maturities relative to the LBUSCI (those maturities between 5 and
10 years to final maturity). Interest rate levels for 5 year and 10 year
maturities fell more compared to levels on securities with shorter or longer
maturities.
SECURITY SELECTION:
Overall security selection also benefited performance, although individual
issuers both helped and hurt performance relative to the LBUSCI. Of noteworthy
positive performance contributors were bond holdings in AMERICA MOVIL, AXA
FINANCIAL, HSBC FINANCE and SOUTHWEST AIRLINES. Security holdings which slightly
detracted from performance included bond holdings in BARRICK GOLD, SPRINT
CAPITAL and FORTUNE BRANDS.
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.
1 The LBUSCI is an unmanaged index comprised of corporate bonds or securities
represented by the following sectors: industrial, utility, and finance,
including both U.S. and Non-U.S. corporations and non-corporate bonds or
securities represented by the following sectors: sovereign, supranational,
foreign agencies, and foreign local governments.
2 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.
GROWTH OF A $10,000 INVESTMENT
The graph below illustrates the hypothetical investment of $10,0001 in the
Federated Corporate Bond Strategy Portfolio (the "Fund") from June 20, 2006
(start of performance) to December 31, 2006 compared to the Baa (BBB) Component
of the Lehman Brothers U.S. Credit Index (LBUSCI).2
CUMULATIVE TOTAL RETURN FOR THE PERIOD ENDED 12/31/2006
Start of Performance (6/20/2006) 6.78%
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. 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.
1 Represents a hypothetical investment of $10,000 in the Fund. The Fund's
performance is not adjusted to reflect sales charges, expenses, or other fees
that the Securities and Exchange Commission requires to be reflected in the
Fund's performance.
2 The LBUSCI 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 cashflows. It is not possible to invest directly in an index.
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
At December 31, 2006, the Fund's portfolio composition1 was as follows:
SECURITY TYPE PERCENTAGE OF
TOTAL NET ASSETS
Corporate Debt Securities 98.9 %
Other Security Types2 1.7 %
Cash Equivalents3 1.1 %
Other Assets and Liabilities - Net4 (1.7 )%
TOTAL 100.0 %
1 See the Fund's Prospectus and Statement of Additional Information for a
description of these security types.
2 Other security types consist of sovereign bonds.
3 Cash Equivalents include any investments in money market mutual funds and/or
overnight repurchase agreements.
4 Assets, other than investments in securities, less liabilities. See Statement
of Assets and Liabilities.
PORTFOLIO OF INVESTMENTS
December 31, 2006
PRINCIPAL VALUE
AMOUNT
CORPORATE BONDS-98.9%
BASIC INDUSTRY - CHEMICALS-1.3%
$ 75,000 Praxair, Inc., 3.95%, 6/1/2013 $ 69,364
BASIC INDUSTRY - METALS & MINING-4.2%
75,000 BHP Finance (USA), Inc., 4.80%, 4/15/2013 72,701
75,000 Barrick Gold Corp., 4.875%, 11/15/2014 71,112
55,000 Noranda, Inc., 6.00%, 10/15/2015 55,886
15,000 Vale Overseas Ltd., 6.875%, 11/21/2036 15,413
TOTAL 215,112
CAPITAL GOODS - AEROSPACE & DEFENSE-3.0%
75,000 Boeing Co., 6.125%, 2/15/2033 81,367
75,000 Rockwell Collins, Unsecd. Note, 4.75%, 12/1/2013 72,040
TOTAL 153,407
CAPITAL GOODS - BUILDING MATERIALS-1.4%
75,000 CRH America, Inc., 5.30%, 10/15/2013 73,031
CAPITAL GOODS - DIVERSIFIED MANUFACTURING-4.4%
75,000 Emerson Electric Co., 4.50%, 5/1/2013 71,883
75,000 Thomas & Betts Corp., Note, 7.25%, 6/1/2013 78,816
75,000 Tyco International Group, Company Guarantee, 6.375%, 10/15/2011 78,410
TOTAL 229,109
CAPITAL GOODS - ENVIRONMENTAL-3.2%
75,000 Republic Services, Inc., Note, 6.75%, 8/15/2011 78,676
75,000 Waste Management, Inc., Company Guarantee, 7.375%, 5/15/2029 84,618
TOTAL 163,294
COMMUNICATIONS - MEDIA & CABLE-3.0%
75,000 Comcast Corp., 7.05%, 3/15/2033 80,791
75,000 Cox Communications, Inc., Unsecd. Note, 5.45%, 12/15/2014 73,184
TOTAL 153,975
COMMUNICATIONS - MEDIA NONCABLE-3.2%
75,000 British Sky Broadcasting Group PLC, 8.20%, 7/15/2009 79,896
75,000 News America Holdings, Inc., Sr. Deb., 9.25%, 2/1/2013 88,159
TOTAL 168,055
COMMUNICATIONS - TELECOM WIRELESS-5.1%
75,000 AT&T Wireless Services, Inc., 8.75%, 3/1/2031 97,753
75,000 America Movil S.A. de C.V., Note, 5.75%, 1/15/2015 74,573
75,000 Sprint Capital Corp., Company Guarantee, 8.75%, 3/15/2032 90,357
TOTAL 262,683
COMMUNICATIONS - TELECOM WIRELINES-4.5%
75,000 Embarq Corp., 6.738%, 6/1/2013 76,862
75,000 Telefonica SA, Company Guarantee, 7.045%, 6/20/2036 80,491
75,000 Telefonos de Mexico, Note, 4.50%, 11/19/2008 73,913
TOTAL 231,266
CONSUMER CYCLICAL - AUTOMOTIVE-3.2%
75,000 DaimlerChrysler North America Holding Corp., Company Guarantee, 8.50%, 1/18/2031 89,614
75,000 Johnson Controls, Inc., Sr. Note, 5.25%, 1/15/2011 74,465
TOTAL 164,079
CONSUMER CYCLICAL - ENTERTAINMENT-2.9%
75,000 Carnival Corp., 3.75%, 11/15/2007 73,900
75,000 Time Warner, Inc., 5.50%, 11/15/2011 74,888
TOTAL 148,788
CONSUMER CYCLICAL - RETAILERS-1.5%
75,000 Target Corp., Note, 5.875%, 7/15/2016 77,503
CONSUMER NON-CYCLICAL FOOD/BEVERAGE-3.0%
75,000 Bottling Group LLC, Note, 5.50%, 4/1/2016 75,152
75,000 1,2 SABMiller PLC, Note, 6.50%, 7/1/2016 78,284
TOTAL 153,436
CONSUMER NON-CYCLICAL HEALTH CARE-4.2%
75,000 Medtronic, Inc., Note, Series B, 4.375%, 9/15/2010 72,971
75,000 Quest Diagnostic, Inc., Note, 5.45%, 11/1/2015 72,193
75,000 Thermo Electron Corp., Sr. Unsecd. Note, 5.00%, 6/1/2015 70,337
TOTAL 215,501
CONSUMER NON-CYCLICAL PHARMACEUTICALS-2.9%
75,000 Genentech, Inc., Note, 4.75%, 7/15/2015 71,944
75,000 Wyeth, 6.45%, 2/1/2024 80,677
TOTAL 152,621
CONSUMER NON-CYCLICAL PRODUCTS-1.3%
75,000 Fortune Brands, Inc., Unsecd. Note, 5.875%, 1/15/2036 68,816
CONSUMER NON-CYCLICAL TOBACCO-1.6%
75,000 Altria Group, Inc., Note, 7.00%, 11/4/2013 81,846
ENERGY - INDEPENDENT-1.6%
75,000 Pemex Project Funding Master, Company Guarantee, 9.125%, 10/13/2010 84,323
FINANCIAL INSTITUTION - BANKING-8.2%
75,000 Corp Andina De Fomento, Bond, 7.375%, 1/18/2011 79,945
100,000 HSBC Finance Capital Trust IX, Note, 5.911%, 11/30/2035 101,065
75,000 J.P. Morgan Chase & Co., Sub. Deb., 8.00%, 4/29/2027 93,802
75,000 Popular North America, Inc., 5.65%, 4/15/2009 75,502
75,000 1,2 Sovereign Bancorp, Inc., Sr. Note, 4.80%, 9/1/2010 73,358
TOTAL 423,672
FINANCIAL INSTITUTION - BROKERAGE-3.9%
75,000 1,2 FMR Corp., 4.75%, 3/1/2013 72,661
75,000 Goldman Sachs Group, Inc., 6.125%, 2/15/2033 77,070
50,000 Lehman Brothers Holdings, Inc., 5.75%, 5/17/2013 51,280
TOTAL 201,011
FINANCIAL INSTITUTION - FINANCE NONCAPTIVE-2.9%
75,000 Capital One Financial Corp., Note, 7.125%, 8/1/2008 77,063
75,000 Residential Capital Corp., 6.00%, 2/22/2011 75,049
TOTAL 152,112
FINANCIAL INSTITUTION - INSURANCE - HEALTH-1.5%
75,000 Aetna US Healthcare, 5.75%, 6/15/2011 76,195
FINANCIAL INSTITUTION - INSURANCE - LIFE-1.9%
75,000 AXA-UAP, Sub. Note, 8.60%, 12/15/2030 97,186
FINANCIAL INSTITUTION - INSURANCE - P&C-2.9%
75,000 1,2 Liberty Mutual Group, Inc., Unsecd. Note, 5.75%, 3/15/2014 74,645
75,000 The St. Paul Travelers Cos., Inc., Sr. Unsecd. Note, 5.50%, 12/1/2015 75,287
TOTAL 149,932
FINANCIAL INSTITUTION - REITS-5.4%
75,000 Archstone-Smith Trust, 5.625%, 8/15/2014 75,657
50,000 Health Care Property Investors, Inc., 5.95%, 9/15/2011 50,254
75,000 Prologis, Sr. Note, 5.50%, 4/1/2012 75,194
75,000 Simon Property Group, Inc., 6.35%, 8/28/2012 78,413
TOTAL 279,518
TECHNOLOGY-1.5%
75,000 Hewlett-Packard Co., Note, 6.50%, 7/1/2012 79,559
TRANSPORTATION - AIRLINES-1.6%
75,000 Southwest Airlines Co., Deb., 7.375%, 3/1/2027 83,961
TRANSPORTATION - RAILROADS-1.4%
75,000 Union Pacific Corp., 4.875%, 1/15/2015 72,132
TRANSPORTATION - SERVICES-1.5%
75,000 Ryder System, Inc., 5.95%, 5/2/2011 75,958
UTILITY - ELECTRIC-8.0%
20,000 Commonwealth Edison Co., FMB, 5.40%, 12/15/2011 19,851
75,000 Consolidated Natural Gas Co., 5.00%, 12/1/2014 72,192
75,000 Duke Capital Corp., Sr. Note, 6.25%, 2/15/2013 77,175
75,000 FirstEnergy Corp., 6.45%, 11/15/2011 78,292
75,000 MidAmerican Energy Co., Unsecd. Note, 6.75%, 12/30/2031 83,621
75,000 PSEG Power LLC, Company Guarantee, 7.75%, 4/15/2011 81,294
TOTAL 412,425
UTILITY - NATURAL GAS DISTRIBUTOR-1.4%
75,000 Atmos Energy Corp., 4.95%, 10/15/2014 71,358
UTILITY - NATURAL GAS PIPELINES-1.3%
75,000 Kinder Morgan Energy Partners LP, Sr. Unsecd. Note, 5.80%, 3/15/2035 67,267
TOTAL CORPORATE BONDS (IDENTIFIED COST $4,950,699) 5,108,495
GOVERNMENTS/AGENCIES-1.7%
SOVEREIGN-1.7%
75,000 United Mexican States, 7.50%, 4/8/2033 88,838
(IDENTIFIED COST $82,862)
REPURCHASE AGREEMENT-1.1%
57,000 Interest in $1,500,000,000 joint repurchase agreement 5.35%, dated 12/29/2006, under which 57,000
Goldman Sachs & Co. will repurchase U.S. Government Agency securities with various
maturities to 11/25/2036 for $1,500,891,667 on 1/2/2007. The market value of the underlying
securities at the end of the period was $1,533,551,251. (AT COST)
TOTAL INVESTMENTS - 101.7% (IDENTIFIED COST $5,090,561)3 5,254,333
OTHER ASSETS AND LIABILITIES - NET - (1.7)% (89,288 )
TOTAL NET ASSETS - 100% $ 5,165,045
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 December 31, 2006,
these restricted securities amounted to $298,948, which represented 5.8% 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 Trustees. At December 31, 2006,
these liquid restricted securities amounted to $298,948, which represented
5.8% of total net assets.
3 Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of total net
assets at December 31, 2006.
The following acronym is used throughout this portfolio:
REITs -Real Estate Investment Trusts
See Notes which are an integral part of the Financial Statements
STATEMENT OF ASSETS AND LIABILITIES
December 31, 2006
ASSETS:
Total investments in securities, at value (identified cost $5,090,561) $ 5,254,333
Cash 422
Income receivable 82,434
TOTAL ASSETS 5,337,189
LIABILITIES:
Income distribution payable $ 26,221
Payable for administrative personnel and services fee (Note 5) 66,809
Payable for transfer and dividend disbursing agent fees and expenses 2,141
Payable for audit fees 30,000
Payable for portfolio accounting fees 5,669
Payable for registration fees 33,501
Accrued expenses 7,803
TOTAL LIABILITIES 172,144
Net assets for 500,018 shares outstanding $ 5,165,045
NET ASSETS CONSIST OF:
Paid-in capital $ 5,000,175
Net unrealized appreciation of investments 163,772
Accumulated net realized gain on investments 935
Undistributed net investment income 163
TOTAL NET ASSETS $ 5,165,045
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PROCEEDS PER SHARE
$5,165,045 {divide} 500,018 shares outstanding, no par value, unlimited shares authorized $10.33
See Notes which are an integral part of the Financial Statements
STATEMENT OF OPERATIONS
Period Ended December 31, 2006 1
INVESTMENT INCOME:
Interest $ 165,542
EXPENSES:
Administrative personnel and services fee (Note 5) $ 80,137
Custodian fees 1,243
Transfer and dividend disbursing agent fees and expenses 2,388
Auditing fees 30,012
Legal fees 469
Portfolio accounting fees 10,142
Share registration costs 34,025
Printing and postage 23
Insurance premiums 6,100
Miscellaneous 101
TOTAL EXPENSES 164,640
WAIVER AND REIMBURSEMENT (NOTE 5):
Waiver of administrative personnel and services fee $ (13,328 )
Reimbursement of other operating expenses (151,312 )
TOTAL WAIVER AND REIMBURSEMENT (164,640 )
Net expenses ----
Net investment income 165,542
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments 6,765
Net change in unrealized appreciation of investments 163,772
Net realized and unrealized gain on investments 170,537
Change in net assets resulting from operations $ 336,079
1 Reflects operations for the period from December 2, 2005 (date of initial
capital contribution) to December 31, 2006. See Notes which are an integral
part of the Financial Statements
STATEMENT OF CHANGES IN NET ASSETS
PERIOD ENDED 1
12/31/2006
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income $ 165,542
Net realized gain on investments 6,765
Net change in unrealized appreciation of investments 163,772
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS 336,079
DISTRIBUTIONS TO SHAREHOLDERS:
Distributions from net investment income (165,379)
Distributions from net realized gains (5,830)
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS (171,209)
SHARE TRANSACTIONS:
Proceeds from sale of shares 5,000,000
Net asset value of shares issued to shareholders in payment of distributions declared 175
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS 5,000,175
Change in net assets 5,165,045
NET ASSETS:
Beginning of period --
End of period (including undistributed net investment income of $163) $ 5,165,045
1 Reflects operations for the period from December 2, 2005 (date of initial
capital contribution) to December 31, 2006. See Notes which are an integral
part of the Financial Statements
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
1. ORGANIZATION
Fedetrated Managed Pool Series (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "Act"), as an open-end management
investment company. The Trust consists of four portfolios. The financial
statements included herein are only those of Federated Corporate Bond Strategy
Portfolio (the "Fund"), a non-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. The investment objective of the Fund is to provide total
return.
The Fund received initial capital on December 2, 2005. This is the first annual
report of the Fund. Accordingly, the statement of operations and the statement
of changes in net assets are presented for the period from December 2, 2005 to
December 31, 2006. The Fund registered its shares on June 5, 2006 and the first
shares were sold on June 20, 2006, the date from which the Fund has presented
its financial highlights for the period ended December 31, 2006. Distributions
of $280 were made to the Fund's Adviser prior to the registration of fund shares
on June 5, 2006.
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 generally accepted accounting principles (GAAP)
in the United States of America.
INVESTMENT VALUATION
Market values of the Fund's portfolio securities are determined as follows:
{circle}futures contracts and options are generally valued at market values
established by the exchanges on which they are traded at the close of
trading on such exchanges. Options traded in the over-the-counter market
are generally valued according to the mean between the last bid and the
last asked price for the option as provided by an investment dealer or
other financial institution that deals in the option. The Board of
Trustees (the "Trustees") may determine in good faith that another method
of valuing such investments is necessary to appraise their fair market
value;
{circle}for mortgage-backed securities, based on the aggregate investment
value of the projected cash flows to be generated by the security, as
furnished by an independent pricing service;
{circle}for other fixed-income securities, according to prices as furnished
by an independent pricing service, except that fixed-income securities
with remaining maturities of less than 60 days at the time of purchase are
valued at amortized cost;
{circle}for investments in other open-end regulated investment companies,
based on net asset value;
{circle}prices for credit default swaps are furnished by an independent
pricing service and are based upon a valuation model incorporating default
probabilities, recovery rates and other market data or factors, and
{circle}for all other securities at fair value as determined in accordance
with procedures established by and under the general supervision of the
Trustees.
Prices for fixed-income securities furnished by a pricing service may be based
on a valuation matrix which incorporates both dealer-supplied valuations and
electronic data processing techniques. Such prices (other than prices of
mortgage-backed securities) are generally intended to be indicative of the bid
prices currently offered to institutional investors for the securities, except
that prices for corporate fixed income and asset-backed securities traded in the
United States are generally intended to be indicative of the mean between such
bid prices and asked prices. The Trustees have approved the use of such pricing
services. A number of pricing services are available, and the Fund may use
various pricing services or discontinue the use of any pricing service.
Prices provided by independent pricing services may be determined without
relying exclusively on quoted prices and may consider institutional trading in
similar groups of securities, yield, quality, stability, risk, coupon rate,
maturity, type of issue, trading characteristics, and other market data or
factors. From time to time, when prices cannot be obtained from an independent
pricing service, securities may be valued based on quotes from broker-dealers or
other financial institutions that trade the securities.
Trading in foreign securities may be completed at times which vary from the
closing of the New York Stock Exchange (NYSE). In computing its net asset value
(NAV), the Fund values foreign securities using the latest closing price on the
exchange on which they are traded immediately prior to the closing of the NYSE.
Certain foreign currency exchange rates are generally determined at the latest
rate prior to the closing of the NYSE. Foreign securities quoted in foreign
currencies are translated into U.S. dollars at current rates. Events that affect
these values and exchange rates may occur between the times at which they are
determined and the closing of the NYSE. If such events materially affect the
value of portfolio securities, these securities may be valued at their fair
value as determined in good faith by the Trustees, although the actual
calculation may be done by others.
REPURCHASE AGREEMENTS
It is the policy of the Fund to require the other party to a repurchase
agreement to transfer to the Fund's custodian or sub-custodian eligible
securities or cash with a market value (after transaction costs) at least equal
to the repurchase price to be paid under the repurchase agreement. The eligible
securities are transferred to accounts with the custodian or sub-custodian in
which the Fund holds a "securities entitlement" and exercises "control" as those
terms are defined in the Uniform Commercial Code. The Fund has established
procedures for monitoring the market value of the transferred securities and
requiring the transfer of additional eligible securities if necessary to equal
at least the repurchase price. These procedures also allow the other party to
require securities to be transferred from the account to the extent that their
market value exceeds the repurchase price or in exchange for other eligible
securities of equivalent market value.
With respect to agreements to repurchase U.S. government securities and cash
items, the Fund treats the repurchase agreement as an investment in the
underlying securities and not as an obligation of the other party to the
repurchase agreement. Other repurchase agreements are treated as obligations of
the other party secured by the underlying securities. Nevertheless, the
insolvency of the other party or other failure to repurchase the securities may
delay the disposition of the underlying securities or cause the Fund to receive
less than the full repurchase price. Under the terms of the repurchase
agreement, any amounts received by the Fund in excess of the repurchase price
and related transaction costs must be remitted to the other party.
The Fund may enter into repurchase agreements in which eligible securities are
transferred into joint trading accounts maintained by the custodian or sub-
custodian for investment companies and other clients advised by the Fund's
adviser and its affiliates. The Fund will participate on a pro rata basis with
the other investment companies and clients in its share of the securities
transferred under such repurchase agreements and in its share of proceeds from
any repurchase or other disposition of such securities.
INVESTMENT INCOME, GAINS AND LOSSES, EXPENSES AND DISTRIBUTIONS
Interest income and expenses are accrued daily. Distributions to shareholders
are recorded on the ex-dividend date. Distributions of net investment income are
declared daily and paid monthly. Non-cash dividends included in dividend income,
if any, are recorded at fair value.
PREMIUM AND DISCOUNT AMORTIZATION/ PAYDOWN GAINS AND LOSSES
All premiums and discounts on fixed-income securities are amortized/accreted.
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.
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.
RESTRICTED SECURITIES
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 Fund's Trustees. 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 Fund's
Trustees.
USE OF ESTIMATES
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.
OTHER
Investment transactions are accounted for on a trade date basis. Realized gains
and losses from investment transactions are recorded on an identified cost
basis.
3. SHARES OF BENEFICIAL INTEREST
The following table summarizes share activity:
PERIOD ENDED 12/31/20061
SHARES
Shares sold 500,000
Shares issued to shareholders
in payment of distributions declared
18
NET CHANGE RESULTING FROM SHARE TRANSACTIONS
500,018
1. Reflects operations for the period from December 2, 2005 (commencement of
operations) to December 31, 2006.
4. FEDERAL TAX INFORMATION
The tax character of distributions as reported on the Statement of Changes in
Net Assets from December 2, 2005 to December 31, 2006 were as follows:
2006
Ordinary income1 $171,209
1 For tax purposes short-term capital gain distributions are considered ordinary
income distributions.
As of December 31, 2006, the components of distributable earnings on a tax basis
were as follows:
Undistributed ordinary income $ 1,098
Net unrealized appreciation $ 163,772
At December 31, 2006, the cost of investments for federal tax purposes was
$5,090,561. The net unrealized appreciation of investments for federal tax
purposes was $163,772. This consists of net unrealized appreciation from
investments for those securities having an excess of value over cost of $165,212
and net unrealized depreciation from investments for those securities having an
excess of cost over value of $1,440.
5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISER FEE
Federated Investment Management Company, the Fund's investment adviser (the
"Adviser"), will not charge a fee for its advisory services to the Fund. The
Adviser has contractually agreed to reimburse all operating expenses, excluding
extraordinary expenses, incurred by the Fund. For the period ended December 31,
2006, the Adviser reimbursed $151,312 of other operating expenses.
ADMINISTRATIVE FEE
Federated Administrative Services (FAS), under the Administrative Services
Agreement, provides the Fund with administrative personnel and services. The fee
paid to FAS is based on the average aggregate daily net assets of certain
Federated funds as specified below:
AVERAGE AGGREGATE DAILY NET ASSETS
ADMINISTRATIVE FEE OF THE FEDERATED FUNDS
0.150% on the first $5 billion
0.125% on the next $5 billion
0.100% on the next $10 billion
0.075% on assets in excess of $20 billion
The administrative fee received during any fiscal year shall be at least
$150,000 per portfolio and $40,000 per each additional class of Shares. FAS may
voluntarily choose to waive any portion of its fee. FAS can modify or terminate
this voluntary waiver at any time at its sole discretion. For the period ended
December 31, 2006, the net fee paid to FAS was 2.61% of average aggregate daily
net assets of the Fund. For the period ended December 31, 2006, the Fund's
Adviser reimbursed the Fund for any fee paid to FAS.
GENERAL
Certain of the Officers and Trustees of the Fund are Officers and Directors or
Trustees of the above companies.
6. INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding long-term U.S. government
securities and short-term obligations, for the period ended December 31, 2006,
were as follows:
Purchases $ 6,066,159
Sales $ 1,041,100
7. LINE OF CREDIT
On December 21, 2006, the Trust entered into a $150,000,000 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 of 0.65% over the
federal funds rate. As of December 31, 2006, there were no outstanding loans.
During the period ended December 31, 2006, the Fund did not utilize the LOC.
8. LEGAL PROCEEDINGS
Beginning in October 2003, Federated Investors, Inc. and various subsidiaries
thereof (including the advisers and distributor for various investment
companies, collectively, "Federated"), along with various investment companies
sponsored by Federated ("Funds") were named as defendants in several class
action lawsuits now pending in the United States District Court for the District
of Maryland. The lawsuits were purportedly filed on behalf of people who
purchased, owned and/or redeemed shares of Federated-sponsored mutual funds
during specified periods beginning November 1, 1998. The suits are generally
similar in alleging that Federated engaged in illegal and improper trading
practices including market timing and late trading in concert with certain
institutional traders, which allegedly caused financial injury to the mutual
fund shareholders. These lawsuits began to be filed shortly after Federated's
first public announcement that it had received requests for information on
shareholder trading activities in the Funds from the Securities and Exchange
Commission ("SEC"), the Office of the New York State Attorney General ("NYAG"),
and other authorities. In that regard, on November 28, 2005, Federated announced
that it had reached final settlements with the SEC and the NYAG with respect to
those matters. As Federated previously reported in 2004, it has already paid
approximately $8.0 million to certain funds as determined by an independent
consultant. As part of these settlements, Federated agreed to pay for the
benefit of fund shareholders additional disgorgement and a civil money penalty
in the aggregate amount of an additional $72 million. Federated and various
Funds have also been named as defendants in several additional lawsuits, the
majority of which are now pending in the United States District Court for the
Western District of Pennsylvania, alleging, among other things, excessive
advisory and Rule 12b-1 fees. The Board of the Funds has retained the law firm
of Dickstein Shapiro LLP to represent the Funds in these lawsuits. Federated and
the Funds, and their respective counsel, are reviewing the allegations and
intend to defend this litigation. Additional lawsuits based upon similar
allegations may be filed in the future. The potential impact of these lawsuits,
all of which seek unquantified damages, attorneys' fees and expenses, and future
potential similar suits is uncertain. Although we do not believe that these
lawsuits will have a material adverse effect on the Funds, there can be no
assurance that these suits, the ongoing adverse publicity and/or other
developments resulting from the regulatory investigations will not result in
increased Fund redemptions, reduced sales of Fund shares, or other adverse
consequences for the Funds.
9. RECENT ACCOUNTING PRONOUNCEMENTS
In July 2006, the Financial Accounting Standards Board (FASB) released FASB
Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" (FIN 48). FIN
48 provides guidance for how uncertain tax positions should be recognized,
measured, presented and disclosed in the financial statements. FIN 48 requires
the evaluation of tax positions taken in the course of preparing the Fund's tax
returns to determine whether the tax positions are "more-likely-than-not" of
being sustained by the applicable tax authority. Tax benefits of positions not
deemed to meet the more-likely-than-not threshold would be recorded as a tax
expense in the current year. Adoption of FIN 48 is required for fiscal years
beginning after December 15, 2006 and is to be applied to all open tax years of
the Fund no later than June 29, 2007. At this time, management is evaluating the
implications of FIN 48 and its impact in the financial statements has not yet
been determined.
In addition, in September 2006, FASB released Statement on Financial Accounting
Standards No. 157, "Fair Value Measurements" (FAS 157) which is effective for
fiscal years beginning after November 15, 2007. FAS 157 defines fair value,
establishes a framework for measuring fair value and expands disclosures about
fair value measurements. Management is currently evaluating the impact the
adoption of FAS 157 will have on the Funds' financial statement disclosures.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
TO THE BOARD OF TRUSTEES OF FEDERATED MANAGED POOL SERIES AND SHAREHOLDERS OF
FEDERATED CORPORATE BOND STRATEGY PORTFOLIO:
We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of Federated Corporate Bond Strategy Portfolio
(one of the portfolios constituting Federated Managed Pool Series), (the "Fund")
as of December 31, 2006, and the related statement of operations and the
statement of changes in net assets for the period from December 2, 2005
(commencement of operations) to December 31, 2006, and the financial highlights
for the period from June 20, 2006 (initial date of public investment in the
Fund) to December 31, 2006. 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 audit.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. We were
not engaged to perform an audit of the Fund's internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Fund's internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of December 31, 2006, by correspondence with the custodian
and brokers. 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 the
Federated Corporate Bond Strategy Portfolio, a portfolio of Federated Managed
Pool Series, at December 31, 2006, the results of its operations and changes in
its net assets for the period from December 2, 2005 (commencement of operations)
to December 31, 2006 and its financial highlights from June 20, 2006 (initial
date of public investment in the Fund) to December 31, 2006 in conformity with
U.S. generally accepted accounting principles.
Boston, Massachusetts
February 16, 2007
BOARD OF TRUSTEES AND TRUST OFFICERS
The Board is responsible for managing the Trust's business affairs and for
exercising all the Trust's powers except those reserved for the shareholders.
The following tables give information about each Board member and the senior
officers of the Fund. Where required, the tables separately list Board members
who are "interested persons" of the Fund (i.e., "Interested" Board members) and
those who are not (i.e., "Independent" Board members). Unless otherwise noted,
the address of each person listed is Federated Investors Tower, 1001 Liberty
Avenue, Pittsburgh, PA. As of December 31, 2006, the Trust comprised 4
portfolios, and the Federated Fund Complex consisted of 45 investment companies
(comprising 148 portfolios). Unless otherwise noted, each Officer is elected
annually. Unless otherwise noted, each Board member oversees all portfolios in
the Federated Fund Complex and serves for an indefinite term. The Fund's
Statement of Additional Information includes additional information about Trust
Trustees and is available, without charge and upon request, by calling 1-800-
341-7400.
INTERESTED TRUSTEES BACKGROUND
NAME PRINCIPAL OCCUPATION(S) FOR PAST FIVE YEARS,
BIRTH DATE OTHER DIRECTORSHIPS HELD AND PREVIOUS POSITION(S)
ADDRESS
POSITIONS HELD
WITH TRUST
DATE SERVICE
BEGAN
JOHN F. PRINCIPAL OCCUPATIONS: Chairman and Director or Trustee of the Federated Fund Complex; Chairman and Director,
DONAHUE* Federated Investors, Inc.
Birth Date:
July 28, 1924 PREVIOUS POSITIONS: Trustee, Federated Investment Management Company and Chairman and Director, Federated
CHAIRMAN and Investment Counseling.
TRUSTEE
Began serving:
October 2005
J. CHRISTOPHER PRINCIPAL OCCUPATIONS: Principal Executive Officer and President of the Federated Fund Complex; Director or
DONAHUE* Trustee of some of the Funds in the Federated Fund Complex; President, Chief Executive Officer and Director,
Birth Date: Federated Investors, Inc.; Chairman and Trustee, Federated Investment Management Company; Trustee, Federated
April 11, 1949 Investment Counseling; Chairman and Director, Federated Global Investment Management Corp.; Chairman, Federated
PRESIDENT and Equity Management Company of Pennsylvania, Passport Research, Ltd., and Passport Research II, Ltd.; (Investment
TRUSTEE Advisory subsidiaries of Federated) Trustee, Federated Shareholder Services Company; Director, Federated
Began serving: Services Company.
October 2005
PREVIOUS POSITIONS: President, Federated Investment Counseling; President and Chief Executive Officer, Federated
Investment Management Company, Federated Global Investment Management Corp. and Passport Research, Ltd.
LAWRENCE D. PRINCIPAL OCCUPATIONS: Director or Trustee of the Federated Fund Complex; Professor of Medicine, University of
ELLIS, M.D.* Pittsburgh; Medical Director, University of Pittsburgh Medical Center Downtown; Hematologist, Oncologist and
Birth Date: Internist, University of Pittsburgh Medical Center.
October 11,
1932 OTHER DIRECTORSHIPS HELD: Member, National Board of Trustees, Leukemia Society of America.
3471 Fifth
Avenue PREVIOUS POSITIONS: Trustee, University of Pittsburgh; Director, University of Pittsburgh Medical Center.
Suite 1111
Pittsburgh, PA
TRUSTEE
Began serving:
October 2005
* Family relationships and reasons for "interested" status: John F. Donahue is
the father of J. Christopher Donahue; both are "interested" due to the positions
they hold with Federated and its subsidiaries. Lawrence D. Ellis, M.D. is
"interested" because his son-in-law is employed by the Fund's principal
underwriter, Federated Securities Corp.
INDEPENDENT TRUSTEES BACKGROUND AND COMPENSATION)
NAME PRINCIPAL OCCUPATION(S) FOR PAST FIVE YEARS,
BIRTH DATE OTHER DIRECTORSHIPS HELD AND PREVIOUS POSITION(S)
ADDRESS
POSITIONS
HELD WITH
TRUST
DATE SERVICE
BEGAN
THOMAS G. PRINCIPAL OCCUPATION: Director or Trustee of the Federated Fund Complex.
BIGLEY
Birth Date: OTHER DIRECTORSHIPS HELD: Director, Member of Executive Committee, Children's Hospital of Pittsburgh; Director,
February 3, University of Pittsburgh.
1934
15 Old Timber PREVIOUS POSITION: Senior Partner, Ernst & Young LLP.
Trail
Pittsburgh,
PA
TRUSTEE
Began
serving:
October 2005
JOHN T. PRINCIPAL OCCUPATIONS: Director or Trustee of the Federated Fund Complex; Chairman of the Board, Investment
CONROY, JR. Properties Corporation; Partner or Trustee in private real estate ventures in Southwest Florida.
Birth Date:
June 23, 1937 PREVIOUS POSITIONS: President, Investment Properties Corporation; Senior Vice President, John R. Wood and
Investment Associates, Inc., Realtors; President, Naples Property Management, Inc. and Northgate Village Development
Properties Corporation.
Corporation
3838 North
Tamiami Trail
Suite 402
Naples, FL
TRUSTEE
Began
serving:
October 2005
NICHOLAS P. PRINCIPAL OCCUPATION: Director or Trustee of the Federated Fund Complex.
CONSTANTAKIS
Birth Date: OTHER DIRECTORSHIPS HELD: Director and Member of the Audit Committee, Michael Baker Corporation (engineering and
September 3, energy services worldwide).
1939
175 Woodshire PREVIOUS POSITION: Partner, Andersen Worldwide SC.
Drive
Pittsburgh,
PA
TRUSTEE
Began
serving:
October 2005
JOHN F. PRINCIPAL OCCUPATION: Director or Trustee of the Federated Fund Complex; Director, QSGI, Inc., (system technology
CUNNINGHAM company)
Birth Date:
March 5, 1943 OTHER DIRECTORSHIPS HELD: Chairman, President and Chief Executive Officer, Cunningham & Co., Inc. (strategic
353 El Brillo business consulting); Trustee Associate, Boston College.
Way
Palm Beach, PREVIOUS POSITIONS: Director, Redgate Communications and EMC Corporation (computer storage systems); Chairman of
FL the Board and Chief Executive Officer, Computer Consoles, Inc.; President and Chief Operating Officer, Wang
TRUSTEE Laboratories; Director, First National Bank of Boston; Director, Apollo Computer, Inc.
Began
serving:
October 2005
PETER E. PRINCIPAL OCCUPATION: Director or Trustee of the Federated Fund Complex.
MADDEN
Birth Date: OTHER DIRECTORSHIPS HELD: Board of Overseers, Babson College.
March 16,
1942 PREVIOUS POSITIONS: Representative, Commonwealth of Massachusetts General Court; President, State Street Bank and
One Royal Trust Company and State Street Corporation (retired); Director, VISA USA and VISA International; Chairman and
Palm Way Director, Massachusetts Bankers Association; Director, Depository Trust Corporation; Director, The Boston Stock
100 Royal Exchange.
Palm Way
Palm Beach,
FL
TRUSTEE
Began
serving:
October 2005
CHARLES F. PRINCIPAL OCCUPATIONS: Director or Trustee of the Federated Fund Complex; Management Consultant;
MANSFIELD,
JR. PREVIOUS POSITIONS: Chief Executive Officer, PBTC International Bank; Partner, Arthur Young & Company (now Ernst &
Birth Date: Young LLP); Chief Financial Officer of Retail Banking Sector, Chase Manhattan Bank; Senior Vice President, HSBC
April 10, Bank USA (formerly, Marine Midland Bank); Vice President, Citibank; Assistant Professor of Banking and Finance,
1945 Frank G. Zarb School of Business, Hofstra University; Executive Vice President, DVC Group, Inc. (marketing,
80 South Road communications and technology).
Westhampton
Beach, NY
TRUSTEE
Began
serving:
Month/2005
JOHN E. PRINCIPAL OCCUPATIONS: Director or Trustee of the Federated Fund Complex; Chancellor and Law Professor, Duquesne
MURRAY, JR., University; Partner, Murray, Hogue & Lannis.
J.D., S.J.D.
Birth Date: OTHER DIRECTORSHIPS HELD: Director, Michael Baker Corp. (engineering, construction, operations and technical
December 20, services).
1932
Chancellor, PREVIOUS POSITIONS: President, Duquesne University; Dean and Professor of Law, University of Pittsburgh School of
Duquesne Law; Dean and Professor of Law, Villanova University School of Law.
University
Pittsburgh,
PA
TRUSTEE
Began
serving:
October 2005
THOMAS M. PRINCIPAL OCCUPATIONS: Director or Trustee of the Federated Fund Complex; Managing Director and Partner, Navigator
O'NEILL Management Company, L.P. (investment and strategic consulting). OTHER DIRECTORSHIPS HELD: Director, Midway Pacific
Birth Date: (lumber); Board of Overseers, Children's Hospital of Boston; Visiting Committee on Athletics, Harvard College.
June 14, 1951
95 Standish PREVIOUS POSITIONS: Chief Executive Officer and President, Managing Director and Chief Investment Officer, Fleet
StreetP.O. Investment Advisors; President and Chief Executive Officer, Aeltus Investment Management, Inc.; General Partner,
Box 2779 Hellman, Jordan Management Co., Boston, MA; Chief Investment Officer, The Putnam Companies, Boston, MA; and Credit
Duxbury, MA Analyst and Lending Officer, Fleet Bank.
TRUSTEE
Began
serving:
October 2006
MARJORIE P. PRINCIPAL OCCUPATIONS: Director or Trustee of the Federated Fund Complex;
SMUTS
Birth Date: PREVIOUS POSITIONS: Public Relations/Marketing Consultant/Conference Coordinator; National Spokesperson, Aluminum
June 21, 1935 Company of America; television producer; President, Marj Palmer Assoc.; Owner, Scandia Bord.
4905 Bayard
Street
Pittsburgh,
PA
TRUSTEE
Began
serving:
October 2005
JOHN S. WALSH PRINCIPAL OCCUPATIONS: Director or Trustee of the Federated Fund Complex; President and Director, Heat Wagon, Inc.
Birth Date: (manufacturer of construction temporary heaters); President and Director, Manufacturers Products, Inc.
November 28, (distributor of portable construction heaters); President, Portable Heater Parts, a division of Manufacturers
1957 Products, Inc.
2604 William
Drive PREVIOUS POSITION: Vice President, Walsh & Kelly, Inc.
Valparaiso,
IN
TRUSTEE
Began
serving:
October 2005
JAMES F. WILL PRINCIPAL OCCUPATIONS: Director or Trustee of the Federated Fund Complex; Prior to June 2006, Vice Chancellor and
Birth Date: President, Saint Vincent College.
October 12,
1938 OTHER DIRECTORSHIPS HELD: Alleghany Corporation.
Saint Vincent
College PREVIOUS POSITIONS: Chairman, President and Chief Executive Officer, Armco, Inc.; President and Chief Executive
Latrobe, PA Officer, Cyclops Industries; President and Chief Operating Officer, Kaiser Steel Corporation.
TRUSTEE
Began
serving:
April 2006
OFFICERS
NAME PRINCIPAL OCCUPATION(S) AND PREVIOUS POSITION(S)
BIRTH DATE
ADDRESS
POSITIONS
HELD WITH
TRUST
DATE SERVICE
BEGAN
JOHN W. PRINCIPAL OCCUPATIONS: Executive Vice President and Secretary of the Federated Fund Complex; Vice Chairman,
MCGONIGLE Executive Vice President, Secretary and Director, Federated Investors, Inc.
Birth Date:
October 26, PREVIOUS POSITIONS: Trustee, Federated Investment Management Company and Federated Investment Counseling;
1938 Director, Federated Global Investment Management Corp., Federated Services Company and Federated Securities Corp.
EXECUTIVE
VICE
PRESIDENT and
SECRETARY
Began
serving:
October 2005
RICHARD A. PRINCIPAL OCCUPATIONS: Principal Financial Officer and Treasurer of the Federated Fund Complex; Senior Vice
NOVAK President, Federated Administrative Services. ; Financial and Operations Principal for Federated Securities Corp.,
Birth Date: Edgewood Services, Inc. and Southpointe Distribution Services, Inc.; Senior Vice President.
December 25,
1963 PREVIOUS POSITIONS: Controller of Federated Investors, Inc.; Vice President, Finance of Federated Services
TREASURER Company; held various financial management positions within The Mercy Hospital of Pittsburgh; Auditor, Arthur
Began Andersen & Co.
serving:
January 2006
RICHARD B. PRINCIPAL OCCUPATIONS: Vice Chairman or Vice President of some of the Funds in the Federated Fund Complex; Vice
FISHER Chairman, Federated Investors, Inc.; Chairman, Federated Securities Corp.
Birth Date:
May 17, 1923 PREVIOUS POSITIONS: President and Director or Trustee of some of the Funds in the Federated Fund Complex;
VICE CHAIRMAN Executive Vice President, Federated Investors, Inc. and Director and Chief Executive Officer, Federated Securities
Began Corp.
serving:
October 2005
BRIAN P. PRINCIPAL OCCUPATIONS: Senior Vice President and Chief Compliance Officer of the Federated Fund Complex; Vice
BOUDA President and Chief Compliance Officer of Federated Investors, Inc.; and Chief Compliance Officer of its
Birth Date: subsidiaries. Mr. Bouda joined Federated in 1999 and is a member of the American Bar Association and the State Bar
February 28, Association of Wisconsin.
1947
CHIEF
COMPLIANCE
OFFICER and
SENIOR VICE
PRESIDENT
Began
serving:
October 2005
ROBERT PRINCIPAL OCCUPATIONS: Robert J. Ostrowski joined Federated in 1987 as an Investment Analyst and became a
J. OSTROWSKI Portfolio Manager in 1990. He was named Chief Investment Officer of taxable fixed income products in 2004 and also
Birth Date: serves as a Senior Portfolio Manager. He has been a Senior Vice President of the Fund's Adviser since 1997.
April 26, Mr. Ostrowski is a Chartered Financial Analyst. He received his M.S. in Industrial Administration from Carnegie
1963 Mellon University.
Chief
Investment
Officer
Began
serving:
August 2006
JOSEPH M. PRINCIPAL OCCUPATIONS: Joseph M. Balestrino is Vice President of the Trust. Mr. Balestrino joined Federated in
BALESTRINO 1986 and has been a Senior Portfolio Manager and Senior Vice President of the Fund's Adviser since 1998. He was a
Birth Date: Portfolio Manager and a Vice President of the Fund's Adviser from 1995 to 1998. Mr. Balestrino served as a
November 3, Portfolio Manager and an Assistant Vice President of the Adviser from 1993 to 1995. Mr. Balestrino is a Chartered
1954 Financial Analyst and received his Master's Degree in Urban and Regional Planning from the University of
VICE Pittsburgh.
PRESIDENT
Began
serving:
October 2005
EVALUATION AND APPROVAL OF ADVISORY CONTRACT
FEDERATED CORPORATE BOND STRATEGY PORTFOLIO (THE "FUND")
The Fund's Board reviewed the Fund's investment advisory contract at meetings
held in May 2006. The Board's decision to approve the contract reflects the
exercise of its business judgment on whether to authorize the creation and
offering of this new investment vehicle, as proposed by, and based on
information provided by, the Federated organization, and based on Federated's
recommendation to go forward with development of the Fund. The Fund is
distinctive in that it: is used to implement particular investment strategies
that are offered to investors in certain separately managed or wrap fee accounts
or programs or certain other discretionary investment accounts; and may also be
offered to other Federated funds. In addition, the Adviser does not charge an
investment advisory fee for its services although it or its affiliates may
receive compensation for managing assets invested in the Fund.
Prior to the meeting, the Adviser had recommended that the Federated Funds
appoint 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 appointed by the Funds 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, which the Board considered,
along with other information, in deciding to approve the advisory contract.
As previously noted, the Adviser does not charge an investment advisory fee for
its services; however, the Board did consider the anticipated compensation and
benefits to be received by the Adviser. This includes fees to be received for
services provided to the Fund by other entities in the Federated organization
and research services that may be received by the Adviser from brokers that
execute fund trades. The Board is also familiar with judicial decisions
concerning allegedly excessive investment advisory fees which have indicated
that the following factors may be relevant to an Adviser's fiduciary duty with
respect to its receipt of compensation from a fund: the nature and quality of
the services provided by the Adviser, including the performance of the Fund; the
Adviser's cost of providing the services; the extent to which the Adviser may
realize "economies of scale" as the Fund grows larger; any indirect benefits
that may accrue to the Adviser and its affiliates as a result of the Adviser's
relationship with the Fund; performance and expenses of comparable funds; and
the extent to which the independent Board members are fully informed about all
facts the Board deems relevant bearing on the Adviser's services and fees. The
Board further considered management fees (including any components thereof)
charged to institutional and other clients of the Adviser for like services and
costs to the Adviser and its affiliates of supplying services pursuant to the
management fee agreements, excluding any intra-corporate profit and profit
margins of the Adviser and its affiliates from supplying such services. The
Board was aware of these considerations and was guided by them in its review of
the Fund's advisory contract to the extent they are appropriate and relevant, as
discussed further below.
The Board considered and weighed these circumstances in light of its substantial
accumulated experience in working with Federated on matters relating to other
Federated funds, and was assisted in its deliberations by the advice of
independent legal counsel. The Board's consideration of the advisory contract
included review of the Senior Officer's evaluation, accompanying data and
additional reports covering such matters as: the Adviser's investment
philosophy, revenue, profitability, personnel and processes; investment and
operating strategies; the Fund's investment objectives; the Fund's overall
expense structure; the nature, quality and extent of the advisory and other
services to be provided to the Fund by the Adviser and its affiliates; the
preferences and expectations of Fund shareholders and their relative
sophistication; the continuing state of competition in the mutual fund industry
and market practices; the range of comparable fees for similar funds in the
mutual fund industry; the Fund's relationship to the Federated family of funds
which include a comprehensive array of funds with different investment
objectives, policies and strategies which are available for exchange without the
incurrence of additional sales charges; compliance and audit reports concerning
the Federated funds and the Federated companies that service them (including
communications from regulatory agencies), as well as Federated's responses to
any issues raised therein; and relevant developments in the mutual fund industry
and how the Federated funds and/or Federated are responding to them. The Board's
evaluation process is evolutionary. The criteria considered and the emphasis
placed on relevant criteria change in recognition of changing circumstances in
the mutual fund marketplace.
Because the Adviser does not charge the Fund an investment advisory fee the
Fund's Board does not consider fee comparisons to other mutual funds or other
institutional or separate accounts to be relevant. Because the Board was
considering the advisory contract in the context of Federated's proposal to
create a new fund, the factors mentioned above relating to such matters as any
indirect benefits that may accrue to the Adviser and its affiliates as a result
of the Adviser's relationship with the Fund, are essentially impossible to apply
before the Fund has experienced any meaningful operating history. Nevertheless,
in connection with the Board's governance of other Federated funds, it should be
noted that the Board regularly receives financial information about Federated,
including reports on the compensation and benefits Federated derives from its
relationships with the other Federated funds. These reports cover not only the
fees under the advisory contracts, but also fees received by Federated's
subsidiaries for providing other services to the Federated funds under separate
contracts (e.g., for serving as the Federated funds' administrator). The reports
also discuss any indirect benefit Federated may derive from its receipt of
research services from brokers who execute Federated fund trades, as well as
waivers of fees and/or reimbursements of expenses. In order for a fund to be
competitive in the marketplace, Federated and its affiliates frequently waive
fees and/or reimburse expenses and have indicated to the Board their intention
to do so in the future, where appropriate.
The Board also reviewed profitability information for Federated and other
publicly held fund management companies, provided by the Senior Officer, who
noted the limited availability of such information, and concluded that
Federated's profit margins did not appear to be excessive.
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. As noted, not all of the factors and considerations
identified above were relevant to the Fund, nor does the Board consider any one
of them to be determinative. In particular, due to the unusual nature of the
Fund as primarily an internal product with no advisory fee, the Board does not
consider the assessment of whether economies of scale would be realized if the
Fund were to grow to some sufficient size to be relevant. With respect to the
factors that are relevant, the Board's decision to approve the contract reflects
its determination that, based upon the information requested and supplied,
Federated's proposal to establish and manage the Fund, and its past performance
and actions in providing services to other mutual funds, provide a satisfactory
basis to support the business decision to approve the proposed arrangements.
VOTING PROXIES ON FUND PORTFOLIO SECURITIES
A description of the policies and procedures that the Fund uses to determine how
to vote proxies, if any, relating to securities held in the Fund's portfolio is
available, without charge and upon request, by calling 1-800-341-7400. A report
on "Form N-PX" of how the Fund voted any such proxies during the most recent 12-
month period ended June 30 is available through Federated's website. Got to
FederatedInvestors.com, select "Products," select the "Prospectuses and
Regulatory Reports" link, then select the Fund to access the link to Form N-PX.
This information is also available from the EDGAR database on 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 http://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 the
Federated Investors website at FederatedInvestors.com by clicking on "Portfolio
Holdings" and selecting the name of the Fund, or by selecting the name of the
Fund and clicking on "Portfolio Holdings." You must register on the website the
first time you wish to access this information.
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.
Cusip 31421P100
36217 (2/07)
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 member of the Board's Audit
Committee is an "audit committee financial expert," and that each such member is
"independent," for purposes of this Item. The Audit Committee consists of the
following Board members: Thomas G. Bigley, John T. Conroy, Jr., Nicholas P.
Constantakis and Charles F. Mansfield, Jr.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
(a) Audit Fees billed to the registrant for the two most recent fiscal
years:
Fiscal year ended 2006 - $19,000
Fiscal year ended 2005 - $0
(b) Audit-Related Fees billed to the registrant for the two most recent
fiscal years:
Fiscal year ended 2006 - $0
Fiscal year ended 2005 - $0
Amount requiring approval of the registrant's audit committee pursuant to
paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $11,581 and $0
respectively. Fiscal year end 2006 - Seed audit and consent fees.
(c) Tax Fees billed to the registrant for the two most recent fiscal
years:
Fiscal year ended 2006 - $0
Fiscal year ended 2005 - $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.
(d) All Other Fees billed to the registrant for the two most recent
fiscal years:
Fiscal year ended 2006 - $0
Fiscal year ended 2005 - $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 2006 - 0%
Fiscal year ended 2005 - 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 2006 - 0%
Fiscal year ended 2005 - 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 2006 - 0%
Fiscal year ended 2005 - 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 2006 - $179,997
Fiscal year ended 2005 - $0
(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
Not Applicable
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 last fiscal
quarter that have materially affected, or are reasonably likely to materially
affect, the registrant's internal control over financial reporting.
ITEM 12. EXHIBITS
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 MANAGED POOL SERIES
BY /S/ RICHARD A. NOVAK
RICHARD A. NOVAK, PRINCIPAL FINANCIAL OFFICER
DATE February 14, 2007
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 February 9, 2007
BY /S/ RICHARD A. NOVAK
RICHARD A. NOVAK, PRINCIPAL FINANCIAL OFFICER
DATE February 14, 2007