-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Ac4veofqHI/IkuBnL8SGvIJqG26sztBUcvM/BratFT4bS95h4Aw2530lEfHI2xJV XMaUX+PVgJN3SZcm2FXRog== 0001318148-06-001845.txt : 20061214 0001318148-06-001845.hdr.sgml : 20061214 20061214142700 ACCESSION NUMBER: 0001318148-06-001845 CONFORMED SUBMISSION TYPE: 497 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20061214 DATE AS OF CHANGE: 20061214 EFFECTIVENESS DATE: 20061214 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FEDERATED AMERICAN LEADERS FUND INC CENTRAL INDEX KEY: 0000005352 IRS NUMBER: 256109007 STATE OF INCORPORATION: MD FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 497 SEC ACT: 1933 Act SEC FILE NUMBER: 002-29786 FILM NUMBER: 061276648 BUSINESS ADDRESS: STREET 1: 5800 CORPORATE DRIVE CITY: PITTSBURGH STATE: PA ZIP: 15237-7000 BUSINESS PHONE: 8003417400 MAIL ADDRESS: STREET 1: 5800 CORPORATE DRIVE CITY: PITTSBURGH STATE: PA ZIP: 15237-7000 FORMER COMPANY: FORMER CONFORMED NAME: AMERICAN LEADERS FUND INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: PENSION CAPITAL GROWTH INC DATE OF NAME CHANGE: 19701130 FORMER COMPANY: FORMER CONFORMED NAME: PENSION CAPITAL GROWTH FUND INC DATE OF NAME CHANGE: 19701120 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FEDERATED MUNICIPAL SECURITIES FUND INC CENTRAL INDEX KEY: 0000201801 IRS NUMBER: 251304971 STATE OF INCORPORATION: MD FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 497 SEC ACT: 1933 Act SEC FILE NUMBER: 002-57181 FILM NUMBER: 061276649 BUSINESS ADDRESS: STREET 1: 5800 CORPORATE DRIVE CITY: PITTSBURGH STATE: PA ZIP: 15237-7000 BUSINESS PHONE: 8003417400 MAIL ADDRESS: STREET 1: 5800 CORPORATE DRIVE CITY: PITTSBURGH STATE: PA ZIP: 15237-7000 FORMER COMPANY: FORMER CONFORMED NAME: LIBERTY MUNICIPAL SECURITIES FUND INC DATE OF NAME CHANGE: 19930517 FORMER COMPANY: FORMER CONFORMED NAME: FEDERATED TAX FREE INCOME FUND INC DATE OF NAME CHANGE: 19920703 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Federated MDT Series CENTRAL INDEX KEY: 0001363526 IRS NUMBER: 000000000 STATE OF INCORPORATION: MA FISCAL YEAR END: 0731 FILING VALUES: FORM TYPE: 497 SEC ACT: 1933 Act SEC FILE NUMBER: 333-134468 FILM NUMBER: 061276650 BUSINESS ADDRESS: STREET 1: FEDERATED INVESTORS FUNDS STREET 2: 5800 CORPORATE DRIVE CITY: PITTSBURGH STATE: PA ZIP: 15237-7000 BUSINESS PHONE: 412-288-1900 MAIL ADDRESS: STREET 1: FEDERATED INVESTORS FUNDS STREET 2: 5800 CORPORATE DRIVE CITY: PITTSBURGH STATE: PA ZIP: 15237-7000 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FEDERATED INCOME SECURITIES TRUST CENTRAL INDEX KEY: 0000789281 IRS NUMBER: 251412886 STATE OF INCORPORATION: MA FISCAL YEAR END: 0430 FILING VALUES: FORM TYPE: 497 SEC ACT: 1933 Act SEC FILE NUMBER: 033-03164 FILM NUMBER: 061276651 BUSINESS ADDRESS: STREET 1: 5800 CORPORATE DRIVE CITY: PITTSBURGH STATE: PA ZIP: 15237-7000 BUSINESS PHONE: 8003417400 MAIL ADDRESS: STREET 1: 5800 CORPORATE DRIVE CITY: PITTSBURGH STATE: PA ZIP: 15237-7000 FORMER COMPANY: FORMER CONFORMED NAME: FEDERATED FLOATING RATE TRUST DATE OF NAME CHANGE: 19920205 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FEDERATED HIGH INCOME BOND FUND INC CENTRAL INDEX KEY: 0000225318 IRS NUMBER: 251327974 STATE OF INCORPORATION: MD FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 497 SEC ACT: 1933 Act SEC FILE NUMBER: 002-60103 FILM NUMBER: 061276652 BUSINESS ADDRESS: STREET 1: 5800 CORPORATE DRIVE CITY: PITTSBURGH STATE: PA ZIP: 15237-7000 BUSINESS PHONE: 8003417400 MAIL ADDRESS: STREET 1: 5800 CORPORATE DRIVE CITY: PITTSBURGH STATE: PA ZIP: 15237-7000 FORMER COMPANY: FORMER CONFORMED NAME: LIBERTY HIGH INCOME BOND FUND INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: FEDERATED HIGH INCOME SECURITIES INC DATE OF NAME CHANGE: 19901107 FORMER COMPANY: FORMER CONFORMED NAME: FEDERATED HIGH INCOME FUND INC DATE OF NAME CHANGE: 19790122 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FEDERATED GOVERNMENT INCOME SECURITIES INC CENTRAL INDEX KEY: 0000355691 IRS NUMBER: 251414481 STATE OF INCORPORATION: MD FISCAL YEAR END: 0228 FILING VALUES: FORM TYPE: 497 SEC ACT: 1933 Act SEC FILE NUMBER: 002-74191 FILM NUMBER: 061276653 BUSINESS ADDRESS: STREET 1: 5800 CORPORATE DRIVE CITY: PITTSBURGH STATE: PA ZIP: 15237-7000 BUSINESS PHONE: 8003417400 MAIL ADDRESS: STREET 1: 5800 CORPORATE DRIVE CITY: PITTSBURGH STATE: PA ZIP: 15237-7000 FORMER COMPANY: FORMER CONFORMED NAME: GOVERNMENT INCOME SECURITIES INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: MONEY MARKET INSTRUMENTS TRUST DATE OF NAME CHANGE: 19860204 0000005352 S000009067 FEDERATED AMERICAN LEADERS FUND INC C000024636 Class C Shares FALCX 0000201801 S000009070 FEDERATED MUNICIPAL SECURITIES FUND INC C000024644 Class C Shares LMSCX 0000225318 S000009068 FEDERATED HIGH INCOME BOND FUND INC C000024641 Class C Shares FHICX 0000355691 S000009042 FEDERATED GOVERNMENT INCOME SECURITIES INC C000024576 Class C Shares FGOCX 0000789281 S000009074 Federated Fund for U.S. Government Securities C000024654 Class C Shares FUSCX 0000789281 S000009078 Federated Real Return Bond Fund C000024665 Class C Shares RRFCX 0000789281 S000014539 Federated Stock and California Muni Fund C000039520 Class C Shares 0001363526 S000012967 Federated MDT All Cap Core Fund C000035044 Class C Shares 0001363526 S000012968 Federated MDT Tax Aware/All Cap Core Fund C000035047 Class C Shares 0001363526 S000012969 Federated MDT Large Cap Growth Fund C000035050 Class C Shares 0001363526 S000012970 Federated MDT Mid Cap Growth Fund C000035053 Class C Shares 0001363526 S000012971 Federated MDT Balanced Fund C000035056 Class C Shares 0001363526 S000012972 Federated MDT Small Cap Core Fund C000035059 Class C Shares 0001363526 S000012973 Federated MDT Small Cap Growth Fund C000035062 Class C Shares 0001363526 S000012974 Federated MDT Small Cap Value Fund C000035065 Class C Shares 497 1 form.txt FEDERATED AMERICAN LEADERS FUND, INC. CLASS C SHARES FEDERATED FUND FOR U.S. GOVERNMENT SECURITIES CLASS C SHARES A PORTFOLIO OF FEDERATED INCOME SECURITIES TRUST FEDERATED GOVERNMENT INCOME SECURITIES, INC. CLASS C SHARES FEDERATED HIGH INCOME BOND FUND, INC. CLASS C SHARES FEDERATED MDT ALL CAP CORE FUND CLASS C SHARES FEDERATED MDT BALANCED FUND CLASS C SHARES FEDERATED MDT LARGE CAP GROWTH FUND CLASS C SHARES FEDERATED MDT MID CAP GROWTH FUND CLASS C SHARES FEDERATED MDT SMALL CAP CORE FUND CLASS C SHARES FEDERATED MDT SMALL CAP GROWTH FUND CLASS C SHARES FEDERATED MDT SMALL CAP VALUE FUND CLASS C SHARES FEDERATED MDT TAX AWARE/ALL CAP CORE FUND CLASS C SHARES PORTFOLIOS OF FEDERATED MDT SERIES FEDERATED MUNICIPAL SECURITIES FUND, INC. CLASS C SHARES FEDERATED REAL RETURN BOND FUND CLASS C SHARES FEDERATED STOCK AND CALIFORNIA MUNI FUND CLASS C SHARES PORTFOLIOS OF FEDERATED INCOME SECURITIES TRUST SUPPLEMENT TO CURRENT PROSPECTUSES OF THE ABOVE LISTED FUNDS. EFFECTIVE FEBRUARY 1, 2007, THE 1.00% FRONT-END SALES CHARGE WILL BE ELIMINATED ON CLASS C SHARES OF FEDERATED FUNDS. EFFECTIVE FEBRUARY 1, 2007, PLEASE MAKE THE FOLLOWING CHANGES TO THE CURRENT PROSPECTUSES OF THE ABOVE LISTED FUNDS ("FUNDS"). 1. In the current prospectuses of the following Funds, please delete the Class C Shares line item in the Average Annual Total Return Table and replace with the following: (For the period Ended December 31, 2005) Federated American Leaders Fund, Inc. 1 Year 5 Years 10 Years CLASS C SHARES3: Return Before Taxes 1.97% 1.10% 7.42% 3 Historical returns do not include the effect of a 1.00% front-end sales charge on Class C Shares purchased prior to February 1, 2007. Effective February 1, 2007, this front-end sales charge was eliminated. Federated Fund for U.S. Government Securities 1 Year 5 Years 10 Years CLASS C SHARES2: Return Before Taxes (0.67)% 3.86% 4.47% 2 Historical returns do not include the effect of a 1.00% front-end sales charge on Class C Shares purchased prior to February 1, 2007. Effective February 1, 2007, this front-end sales charge was eliminated. Federated Government Income Securities, Inc.
1 Year 5 Years 10 Years Start of Performance1 CLASS C SHARES3 (IF APPLICABLE): Return Before Taxes (0.90)% 3.99% N/A 4.89%
3 Historical returns do not include the effect of a 1.00% front-end sales charge on Class C Shares purchased prior to February 1, 2007. Effective February 1, 2007, this front-end sales charge was eliminated. Federated High Income Bond Fund, Inc. 1 Year 5 Years 10 Years CLASS C SHARES3: Return Before Taxes (0.22)% 6.31% 4.74% 3 Historical returns do not include the effect of a 1.00% front-end sales charge on Class C Shares purchased prior to February 1, 2007. Effective February 1, 2007, this front-end sales charge was eliminated. Federated MDT All Cap Core Fund 1 Year Start of Performance1 CLASS C SHARES2,7: Return Before Taxes 10.18% 17.56% 7 Historical returns do not include the effect of a 1.00% front-end sales charge on Class C Shares purchased prior to February 1, 2007. Effective February 1, 2007, this front-end sales charge was eliminated. Federated MDT Balanced Fund 1 Year Start of Performance1 CLASS C SHARES2,6: Return Before Taxes 6.81% 13.98% 6 Historical returns do not include the effect of a 1.00% front-end sales charge on Class C Shares purchased prior to February 1, 2007. Effective February 1, 2007, this front-end sales charge was eliminated. Federated Municipal Securities Fund, Inc. 1 Year 5 Years 10 Years CLASS C SHARES2: Return Before Taxes 0.39% 3.93% 3.46% 2 Historical returns do not include the effect of a 1.00% front-end sales charge on Class C Shares purchased prior to February 1, 2007. Effective February 1, 2007, this front-end sales charge was eliminated. 2. In the current prospectuses of the following Funds, please delete the Maximum Sales Charge (Load) line item in the table in the section entitled "What are the Funds Fees and Expenses?" and replace with the following: Federated American Leaders Fund, Inc. FEES AND EXPENSES
SHAREHOLDER FEES CLASS A CLASS B CLASS C CLASS F Fees Paid Directly From Your Investment Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) 5.50% None None 1.00%
Federated Fund for U.S. Government Securities, Federated High Income Bond Fund, Inc., Federated Municipal Securities Fund, Inc. FEES AND EXPENSES
SHAREHOLDER FEES CLASS A CLASS B CLASS C Fees Paid Directly From Your Investment Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) 4.50% None None
Federated Government Income Securities, Inc. FEES AND EXPENSES
SHAREHOLDER FEES CLASS A CLASS B CLASS C CLASS F Fees Paid Directly From Your Investment Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) 4.50% None None 1.00%
Federated MDT All Cap Core Fund, Federated MDT Balanced Fund, Federated MDT Large Cap Growth Fund, Federated MDT Mid Cap Growth Fund, Federated MDT Small Cap Core Fund, Federated MDT Small Cap Growth Fund, Federated MDT Small Cap Value Fund, Federated MDT Tax Aware/All Cap Core Fund and Federated Stock and California Muni Fund.
SHAREHOLDER FEES CLASS A CLASS C Fees Paid Directly From Your Investment Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) 5.50% None
Federated Real Return Bond Fund
SHAREHOLDER FEES CLASS A CLASS C Fees Paid Directly From Your Investment Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) 4.50% None
3. EXAMPLE In the current prospectuses of all the Funds, please delete the Class C Shares line item in the table in the sub-section of "What Are The Fund's Fees and Expenses?" entitled "EXAMPLE" and replace with the following: Federated American Leaders Fund, Inc. CLASS C: Expenses assuming redemption $297 $609 $1,047 $2,264 Expenses assuming no redemption $197 $609 $1,047 $2,264 Federated Fund for U.S. Government Securities CLASS C: Expenses assuming redemption $266 $514 $887 $1,933 Expenses assuming no redemption $166 $514 $887 $1,933 FEDERATED GOVERNMENT INCOME SECURITIES, INC. CLASS C: Expenses assuming redemption $302 $624 $1,073 $2,317 Expenses assuming no redemption $202 $624 $1,073 $2,317 FEDERATED HIGH INCOME BOND FUND, INC. CLASS C: Expenses assuming redemption $301 $621 $1,068 $2,306 Expenses assuming no redemption $201 $621 $1,068 $2,306 FEDERATED MDT ALL CAP CORE FUND CLASS C: Expenses assuming redemption $306 $637 $1,093 $2,358 Expenses assuming no redemption $206 $637 $1,093 $2,358 FEDERATED MDT BALANCED FUND CLASS C: Expenses assuming redemption $318 $673 $1,154 $2,483 Expenses assuming no redemption $218 $673 $1,154 $2,483 FEDERATED MDT LARGE CAP GROWTH FUND CLASS C: Expenses assuming redemption $383 $933 $1,737 $3,836 Expenses assuming no redemption $283 $933 $1,737 $3,836 FEDERATED MDT MID CAP GROWTH FUND CLASS C: Expenses assuming redemption $383 $943 $1,777 $3,943 Expenses assuming no redemption $283 $943 $1,777 $3,943 FEDERATED MDT SMALL CAP CORE FUND CLASS C: Expenses assuming redemption $383 $898 $1,600 $3,466 Expenses assuming no redemption $283 $898 $1,600 $3,466 FEDERATED MDT SMALL CAP GROWTH FUND CLASS C: Expenses assuming redemption $383 $921 $1,688 $3,705 Expenses assuming no redemption $283 $921 $1,688 $3,705 FEDERATED MDT SMALL CAP VALUE FUND CLASS C: Expenses assuming redemption $383 $886 $1,549 $3,322 Expenses assuming no redemption $283 $886 $1,549 $3,322 FEDERATED MDT TAX AWARE/ALL CAP CORE FUND CLASS C: SHARES PURCHASED ON OR AFTER 2/1/2007* Expenses assuming redemption $383 $880 $1,524 $3,253 Expenses assuming no redemption $283 $880 $1,524 $3,253 FEDERATED MUNICIPAL SECURITIES FUND, INC. CLASS C: Expenses assuming redemption $276 $545 $939 $2,041 Expenses assuming no redemption $176 $545 $939 $2,041 FEDERATED REAL RETURN BOND FUND CLASS C: Expenses assuming redemption $332 $715 Expenses assuming no redemption $232 $715 FEDERATED STOCK AND CALIFORNIA MUNI FUND CLASS C: Expenses assuming redemption $454 $1,077 Expenses assuming no redemption $354 $1,077 4. In the current prospectuses of all the funds, please the delete Class C Shares line item in the investment summary table in the section entitled "What Do Shares Cost?" and replace with the following: MAXIMUM SALES CHARGES SHARES OFFERED MINIMUM FRONT-END CONTINGENT INITIAL/SUBSEQUENT SALES CHARGE2 DEFERRED INVESTMENT SALES CHARGE3 AMOUNTS1 Class C $1,500/$100 None 1.00% 5. In the current prospectuses of the Funds, under the section entitled "What Do Shares Cost?" please delete the three paragraphs following the investment summary table and replace with the following: FEDERATED AMERICAN LEADERS FUND, INC. AND FEDERATED GOVERNMENT INCOME SECURITIES, INC. As shown in the table above, each class of Shares has a different sales charge structure. In addition, the ongoing annual operating expenses ("expense ratios"), as well as the compensation payable to financial intermediaries, also vary among the classes. Before you decide which class to purchase, you should review the different charges and expenses of each class carefully, in light of your personal circumstances, and consult with your financial intermediary. Among the important factors to consider are the amount you plan to invest and the length of time you expect to hold your investment. You should consider, for example, that it may be possible to reduce the front-end sales charges imposed on purchases of Class A Shares and Class F Shares. Among other ways, Class A Shares and Class F Shares have a series of "breakpoints," which means that the front-end sales charges decrease (and can be eliminated entirely) as the amount invested increases. (The breakpoint schedule is set out below under "Sales Charge When You Purchase.") On the other hand, Class B Shares do not have front- end sales charges, but the deferred sales charges imposed on redemptions of Class B Shares do not vary at all in relation to the amounts invested. Rather, these charges decrease with the passage of time (ultimately going to zero after seven years). Finally, Class C Shares do not have front-end sales charges, but do impose a contingent deferred sales charge only if redeemed within one year after purchase; however, the asset-based 12b-1 fees charged to Class C Shares are greater than those charged to Class A Shares and comparable to those charged to Class B Shares. You should also consider that the expense ratio for Class A Shares will be lower than that for Class B or Class C Shares. Thus, the fact that no front-end charges are ever imposed on purchases of Class B Shares or Class C Shares does not always make them preferable to Class A Shares. FEDERATED FUND FOR U.S. GOVERNMENT SECURITIES, FEDERATED HIGH INCOME BOND FUND, INC., FEDERATED MDT ALL CAP CORE FUND, FEDERATED MDT BALANCED FUND, FEDERATED MDT LARGE CAP GROWTH FUND, FEDERATED MDT MID CAP GROWTH FUND, FEDERATED MDT SMALL CAP CORE FUND, FEDERATED MDT SMALL CAP GROWTH FUND, FEDERATED MDT SMALL CAP VALUE FUND, FEDERATED MDT TAX AWARE/ALL CAP CORE FUND, FEDERATED MUNICIPAL SECURITIES FUND, INC., FEDERATED REAL RETURN BOND FUND AND FEDERATED STOCK AND CALIFORNIA MUNI FUND. As shown in the table above, each class of Shares has a different sales charge structure. In addition, the ongoing annual operating expenses ("expense ratios"), as well as the compensation payable to financial intermediaries, also vary among the classes. Before you decide which class to purchase, you should review the different charges and expenses of each class carefully, in light of your personal circumstances, and consult with your financial intermediary. Among the important factors to consider are the amount you plan to invest and the length of time you expect to hold your investment. You should consider, for example, that it may be possible to reduce the front-end sales charges imposed on purchases of Class A Shares. Among other ways, Class A Shares have a series of "breakpoints," which means that the front-end sales charges decrease (and can be eliminated entirely) as the amount invested increases. (The breakpoint schedule is set out below under "Sales Charge When You Purchase.") On the other hand, Class B Shares do not have front-end sales charges, but the deferred sales charges imposed on redemptions of Class B Shares do not vary at all in relation to the amounts invested. Rather, these charges decrease with the passage of time (ultimately going to zero after seven years). Finally, Class C Shares do not have front-end sales charges, but do impose a contingent deferred sales charge only if redeemed within one year after purchase; however, the asset-based 12b-1 fees charged to Class C Shares are greater than those charged to Class A Shares and comparable to those charged to Class B Shares. You should also consider that the expense ratio for Class A Shares will be lower than that for Class B or Class C Shares. Thus, the fact that no front-end charges are ever imposed on purchases of Class B Shares or Class C Shares does not always make them preferable to Class A Shares. 6. In the current prospectuses of all the Funds, please delete the Class C Shares line item in the table entitled "Sales Charge when you Purchase." 7. Under the sub-section of "Payments To Financial Intermediaries" entitled "Front-End Sales Charge Reallowances" please delete the line item regarding Class C Shares from the current prospectuses of all the Funds. 8. In the current prospectuses of all the Funds, under the section entitled "How To Redeem and Exchange Shares," please replace the sub-section entitled "Systematic Withdrawal/Exchange Program" with the following: You may automatically redeem or exchange Shares in a minimum amount of $100 on a regular basis. Complete the appropriate section of the New Account Form or an Account Service Options Form or contact your financial intermediary or the Fund. Your account value must meet the minimum initial investment amount at the time the program is established. This program may reduce, and eventually deplete, your account. Payments should not be considered yield or income. Generally, it is not advisable to continue to purchase Shares subject to a sales charge while redeeming Shares using this program. 9. Effective February 1, 2007, for all of the Funds, please add the following table and footnote below the table for Class C Shares in "Appendix A: Hypothetical Investment and Expense Information:" FEDERATED AMERICAN LEADERS FUND - CLASS C SHARES - SHARES PURCHASED ON OR AFTER FEBRUARY 1, 20071 ANNUAL EXPENSE RATIO: 1.94% MAXIMUM FRONT-END SALES CHARGE: 0.00% YEAR HYPOTHETICAL HYPOTHETICAL INVESTMENT HYPOTHETICAL HYPOTHETICAL BEGINNING PERFORMANCE AFTER EXPENSES ENDING INVESTMENT EARNINGS RETURNS INVESTMENT 1 $10,000.00 $500.00 $10,500.00 $196.97 $10,306.00 2 $10,306.00 $515.30 $10,821.30 $203.00 $10,621.36 3 $10,621.36 $531.07 $11,152.43 $209.21 $10,946.37 4 $10,946.37 $547.32 $11,493.69 $215.61 $11,281.33 5 $11,281.33 $564.07 $11,845.40 $222.21 $11,626.54 6 $11,626.54 $581.33 $12,207.87 $229.01 $11,982.31 7 $11,982.31 $599.12 $12,581.43 $236.01 $12,348.97 8 $12,348.97 $617.45 $12,966.42 $243.24 $12,726.85 9 $12,726.85 $636.34 $13,363.19 $250.68 $13,116.29 10 $13,116.29 $655.81 $13,772.10 $258.35 $13,517.65 Cumulative $5,747.81 $2,264.29 1. Effective February 1, 2007, the 1.00% front-end sales charge on Class C Shares was eliminated. If you purchased shares on or before January 31, 2007, please refer to the chart which includes the maximum front-end Sales Charge of 1.00%. FEDERATED FUND FOR U.S. GOVERNMENT SECURITIES - CLASS C SHARES SHARES PURCHASED ON OR AFTER FEBRUARY 1, 20071 ANNUAL EXPENSE RATIO: 1.63% MAXIMUM FRONT-END SALES CHARGE: 0.00% YEAR HYPOTHETICAL HYPOTHETICAL INVESTMENT HYPOTHETICAL HYPOTHETICAL BEGINNING PERFORMANCE AFTER EXPENSES ENDING INVESTMENT EARNINGS RETURNS INVESTMENT 1 $10,000.00 $500.00 $10,500.00 $165.75 $10,337.00 2 $10,337.00 $516.85 $10,853.85 $171.33 $10,685.36 3 $10,685.36 $534.27 $11,219.63 $177.11 $11,045.46 4 $11,045.46 $552.27 $11,597.73 $183.07 $11,417.69 5 $11,417.69 $570.88 $11,988.57 $189.24 $11,802.47 6 $11,802.47 $590.12 $12,392.59 $195.62 $12,200.21 7 $12,200.21 $610.01 $12,810.22 $202.21 $12,611.36 8 $12,611.36 $630.57 $13,241.93 $209.03 $13,036.36 9 $13,036.36 $651.82 $13,688.18 $216.07 $13,475.69 10 $13,475.69 $673.78 $14,149.47 $223.35 $13,929.82 Cumulative $5,830.57 $1,932.78 1. Effective February 1, 2007, the 1.00% front-end sales charge on Class C Shares was eliminated. If you purchased shares on or before January 31, 2007, please refer to the chart which includes the maximum front-end Sales Charge of 1.00%. FEDERATED GOVERNMENT INCOME SECURITIES, INC. - CLASS C SHARES SHARES PURCHASED ON OR AFTER FEBRUARY 1, 20071 ANNUAL EXPENSE RATIO: 1.99% MAXIMUM FRONT-END SALES CHARGE: 0.00% YEAR HYPOTHETICAL HYPOTHETICAL INVESTMENT HYPOTHETICAL HYPOTHETICAL BEGINNING PERFORMANCE AFTER EXPENSES ENDING INVESTMENT EARNINGS RETURNS INVESTMENT 1 $10,000.00 $500.00 $10,500.00 $201.99 $10,301.00 2 $10,301.00 $515.05 $10,816.05 $208.07 $10,611.06 3 $10,611.06 $530.55 $11,141.61 $214.34 $10,930.45 4 $10,930.45 $546.52 $11,476.97 $220.79 $11,259.46 5 $11,259.46 $562.97 $11,822.43 $227.44 $11,598.37 6 $11,598.37 $579.92 $12,178.29 $234.28 $11,947.48 7 $11,947.48 $597.37 $12,544.85 $241.33 $12,307.10 8 $12,307.10 $615.36 $12,922.46 $248.60 $12,677.54 9 $12,677.54 $633.88 $13,311.42 $256.08 $13,059.13 10 $13,059.13 $652.96 $13,712.09 $263.79 $13,452.21 Cumulative $5,734.58 $2,316.71 1. Effective February 1, 2007, the 1.00% front-end sales charge on Class C Shares was eliminated. If you purchased shares on or before January 31, 2007, please refer to the chart which includes the maximum front-end Sales Charge of 1.00%. FEDERATED HIGH INCOME BOND FUND, INC. - CLASS C SHARES SHARES PURCHASED ON OR AFTER FEBRUARY 1, 20071 ANNUAL EXPENSE RATIO: 1.98% MAXIMUM FRONT-END SALES CHARGE: 0.00% YEAR HYPOTHETICAL HYPOTHETICAL INVESTMENT HYPOTHETICAL HYPOTHETICAL BEGINNING PERFORMANCE AFTER EXPENSES ENDING INVESTMENT EARNINGS RETURNS INVESTMENT 1 $10,000.00 $500.00 $10,500.00 $200.99 $10,302.00 2 $10,302.00 $515.10 $10,817.10 $207.06 $10,613.12 3 $10,613.12 $530.66 $11,143.78 $213.31 $10,933.64 4 $10,933.64 $546.68 $11,480.32 $219.76 $11,263.84 5 $11,263.84 $563.19 $11,827.03 $226.39 $11,604.01 6 $11,604.01 $580.20 $12,184.21 $233.23 $11,954.45 7 $11,954.45 $597.72 $12,552.17 $240.27 $12,315.47 8 $12,315.47 $615.77 $12,931.24 $247.53 $12,687.40 9 $12,687.40 $634.37 $13,321.77 $255.00 $13,070.56 10 $13,070.56 $653.53 $13,724.09 $262.70 $13,465.29 Cumulative $5,737.22 $2,306.24 1. Effective February 1, 2007, the 1.00% front-end sales charge on Class C Shares was eliminated. If you purchased shares on or before January 31, 2007, please refer to the chart which includes the maximum front-end Sales Charge of 1.00%. FEDERATED MDT ALL CAP CORE FUND - CLASS C SHARES SHARES PURCHASED ON OR AFTER FEBRUARY 1, 20071 ANNUAL EXPENSE RATIO: 2.03% MAXIMUM FRONT-END SALES CHARGE: 0.00% YEAR HYPOTHETICAL HYPOTHETICAL INVESTMENT HYPOTHETICAL HYPOTHETICAL BEGINNING PERFORMANCE AFTER EXPENSES ENDING INVESTMENT EARNINGS RETURNS INVESTMENT 1 $10,000.00 $500.00 $10,500.00 $206.01 $10,297.00 2 $10,297.00 $514.85 $10,811.85 $212.13 $10,602.82 3 $10,602.82 $530.14 $11,132.96 $218.43 $10,917.72 4 $10,917.72 $545.89 $11,463.61 $224.92 $11,241.98 5 $11,241.98 $562.10 $11,804.08 $231.60 $11,575.87 6 $11,575.87 $578.79 $12,154.66 $238.48 $11,919.67 7 $11,919.67 $595.98 $12,515.65 $245.56 $12,273.68 8 $12,273.68 $613.68 $12,887.36 $252.86 $12,638.21 9 $12,638.21 $631.91 $13,270.12 $260.37 $13,013.56 10 $13,013.56 $650.68 $13,664.24 $268.10 $13,400.06 Cumulative $5,724.02 $2,358.46 1. Effective February 1, 2007, the 1.00% front-end sales charge on Class C Shares was eliminated. If you purchased shares on or before January 31, 2007, please refer to the chart which includes the maximum front-end Sales Charge of 1.00%. FEDERATED MDT BALANCED FUND - CLASS C SHARES SHARES PURCHASED ON OR AFTER FEBRUARY 1, 20071 ANNUAL EXPENSE RATIO: 2.15% MAXIMUM FRONT-END SALES CHARGE: 0.00% YEAR HYPOTHETICAL HYPOTHETICAL INVESTMENT HYPOTHETICAL HYPOTHETICAL BEGINNING PERFORMANCE AFTER EXPENSES ENDING INVESTMENT EARNINGS RETURNS INVESTMENT 1 $10,000.00 $500.00 $10,500.00 $218.06 $10,285.00 2 $10,285.00 $514.25 $10,799.25 $224.28 $10,578.12 3 $10,578.12 $528.91 $11,107.03 $230.67 $10,879.60 4 $10,879.60 $543.98 $11,423.58 $237.24 $11,189.67 5 $11,189.67 $559.48 $11,749.15 $244.01 $11,508.58 6 $11,508.58 $575.43 $12,084.01 $250.96 $11,836.57 7 $11,836.57 $591.83 $12,428.40 $258.11 $12,173.91 8 $12,173.91 $608.70 $12,782.61 $265.47 $12,520.87 9 $12,520.87 $626.04 $13,146.91 $273.03 $12,877.71 10 $12,877.71 $643.89 $13,521.60 $280.82 $13,244.72 Cumulative $5,692.51 $2,482.65 1. Effective February 1, 2007, the 1.00% front-end sales charge on Class C Shares was eliminated. If you purchased shares on or before January 31, 2007, please refer to the chart which includes the maximum front-end Sales Charge of 1.00%. FEDERATED MDT LARGE CAP GROWTH FUND - CLASS C SHARES SHARES PURCHASED ON OR AFTER FEBRUARY 1, 20071 ANNUAL EXPENSE RATIO: 2.80% MAXIMUM FRONT-END SALES CHARGE: 0.00%
YEAR HYPOTHETICAL HYPOTHETICAL INVESTMENT HYPOTHETICAL HYPOTHETICAL BEGINNING PERFORMANCE AFTER EXPENSES ENDING INVESTMENT EARNINGS RETURNS INVESTMENT 1 $10,000.00 $500.00 $10,500.00 $283.08 $10,220.00 2 $10,220.00 $511.00 $10,731.00 $289.31 $10,444.84 Contractual/Gross Annual Expense Ratio: 3.43% 3 $10,444.84 $522.24 $10,967.08 $361.07 $10,608.82 Gross Annual Expense Ratio: 3.74% 4 $10,608.82 $530.44 $11,139.26 $399.27 $10,742.49 5 $10,742.49 $537.12 $11,279.61 $404.30 $10,877.85 6 $10,877.85 $543.89 $11,421.74 $409.39 $11,014.91 7 $11,014.91 $550.75 $11,565.66 $414.55 $11,153.70 8 $11,153.70 $557.69 $11,711.39 $419.78 $11,294.24 9 $11,294.24 $564.71 $11,858.95 $425.07 $11,436.55 10 $11,436.55 $571.83 $12,008.38 $430.42 $11,580.65 Cumulative $5,389.67 $3,836.24
1. Effective February 1, 2007, the 1.00% front-end sales charge on Class C Shares was eliminated. If you purchased shares on or before January 31, 2007, please refer to the chart which includes the maximum front-end Sales Charge of 1.00%. FEDERATED MDT MID CAP GROWTH FUND - CLASS C SHARES SHARES PURCHASED ON OR AFTER FEBRUARY 1, 20071 ANNUAL EXPENSE RATIO: 2.80% MAXIMUM FRONT-END SALES CHARGE: 0.00%
YEAR HYPOTHETICAL HYPOTHETICAL INVESTMENT HYPOTHETICAL HYPOTHETICAL BEGINNING PERFORMANCE AFTER EXPENSES ENDING INVESTMENT EARNINGS RETURNS INVESTMENT 1 $10,000.00 $500.00 $10,500.00 $283.08 $10,220.00 2 $10,220.00 $511.00 $10,731.00 $289.31 $10,444.84 Contractual/Gross Annual Expense Ratio: 3.52% 3 $10,444.84 $522.24 $10,967.08 $370.38 $10,599.42 Gross Annual Expense Ratio: 3.89% 4 $10,599.42 $529.97 $11,129.39 $414.61 $10,717.07 5 $10,717.07 $535.85 $11,252.92 $419.21 $10,836.03 6 $10,836.03 $541.80 $11,377.83 $423.86 $10,956.31 7 $10,956.31 $547.82 $11,504.13 $428.57 $11,077.93 8 $11,077.93 $553.90 $11,631.83 $433.32 $11,200.90 9 $11,200.90 $560.05 $11,760.95 $438.13 $11,325.23 10 $11,325.23 $566.26 $11,891.49 $443.00 $11,450.94 Cumulative $5,368.89 $3,943.47
1. Effective February 1, 2007, the 1.00% front-end sales charge on Class C Shares was eliminated. If you purchased shares on or before January 31, 2007, please refer to the chart which includes the maximum front-end Sales Charge of 1.00%. FEDERATED MDT SMALL CAP CORE FUND - CLASS C SHARES SHARES PURCHASED ON OR AFTER FEBRUARY 1, 20071 ANNUAL EXPENSE RATIO: 2.80% MAXIMUM FRONT-END SALES CHARGE: 0.00%
YEAR HYPOTHETICAL HYPOTHETICAL INVESTMENT HYPOTHETICAL HYPOTHETICAL BEGINNING PERFORMANCE AFTER EXPENSES ENDING INVESTMENT EARNINGS RETURNS INVESTMENT 1 $10,000.00 $500.00 $10,500.00 $283.08 $10,220.00 2 $10,220.00 $511.00 $10,731.00 $289.31 $10,444.84 Contractual/Gross Annual Expense Ratio: 3.09% 3 $10,444.84 $522.24 $10,967.08 $325.83 $10,644.34 Gross Annual Expense Ratio: 3.24% 4 $10,644.34 $532.22 $11,176.56 $347.91 $10,831.68 5 $10,831.68 $541.58 $11,373.26 $354.03 $11,022.32 6 $11,022.32 $551.12 $11,573.44 $360.27 $11,216.31 7 $11,216.31 $560.82 $11,777.13 $366.61 $11,413.72 8 $11,413.72 $570.69 $11,984.41 $373.06 $11,614.60 9 $11,614.60 $580.73 $12,195.33 $379.62 $11,819.02 10 $11,819.02 $590.95 $12,409.97 $386.31 $12,027.03 Cumulative $5,461.35 $3,466.03
1. Effective February 1, 2007, the 1.00% front-end sales charge on Class C Shares was eliminated. If you purchased shares on or before January 31, 2007, please refer to the chart which includes the maximum front-end Sales Charge of 1.00%. FEDERATED MDT SMALL CAP GROWTH FUND - CLASS C SHARES SHARES PURCHASED ON OR AFTER FEBRUARY 1, 20071 ANNUAL EXPENSE RATIO: 2.80% MAXIMUM FRONT-END SALES CHARGE: 0.00%
YEAR HYPOTHETICAL HYPOTHETICAL INVESTMENT HYPOTHETICAL HYPOTHETICAL BEGINNING PERFORMANCE AFTER EXPENSES ENDING INVESTMENT EARNINGS RETURNS INVESTMENT 1 $10,000.00 $500.00 $10,500.00 $283.08 $10,220.00 2 $10,220.00 $511.00 $10,731.00 $289.31 $10,444.84 Contractual/Gross Annual Expense Ratio: 3.31% 3 $10,444.84 $522.24 $10,967.08 $348.65 $10,621.36 Gross Annual Expense Ratio: 3.56% 4 $10,621.36 $531.07 $11,152.43 $380.84 $10,774.31 5 $10,774.31 $538.72 $11,313.03 $386.33 $10,929.46 6 $10,929.46 $546.47 $11,475.93 $391.89 $11,086.84 7 $11,086.84 $554.34 $11,641.18 $397.53 $11,246.49 8 $11,246.49 $562.32 $11,808.81 $403.26 $11,408.44 9 $11,408.44 $570.42 $11,978.86 $409.06 $11,572.72 10 $11,572.72 $578.64 $12,151.36 $414.96 $11,739.37 Cumulative $5,415.22 $3,704.91
1. Effective February 1, 2007, the 1.00% front-end sales charge on Class C Shares was eliminated. If you purchased shares on or before January 31, 2007, please refer to the chart which includes the maximum front-end Sales Charge of 1.00%. FEDERATED MDT SMALL CAP VALUE FUND - CLASS C SHARES SHARES PURCHASED ON OR AFTER FEBRUARY 1, 20071 ANNUAL EXPENSE RATIO: 2.80% MAXIMUM FRONT-END SALES CHARGE: 0.00%
YEAR HYPOTHETICAL HYPOTHETICAL INVESTMENT HYPOTHETICAL HYPOTHETICAL BEGINNING PERFORMANCE AFTER EXPENSES ENDING INVESTMENT EARNINGS RETURNS INVESTMENT 1 $10,000.00 $500.00 $10,500.00 $283.08 $10,220.00 2 $10,220.00 $511.00 $10,731.00 $289.31 $10,444.84 Contractual/Gross Annual Expense Ratio: 2.97% 3 $10,444.84 $522.24 $10,967.08 $313.36 $10,656.87 Gross Annual Expense Ratio: 3.05% 4 $10,656.87 $532.84 $11,189.71 $328.20 $10,864.68 5 $10,864.68 $543.23 $11,407.91 $334.60 $11,076.54 6 $11,076.54 $553.83 $11,630.37 $341.13 $11,292.53 7 $11,292.53 $564.63 $11,857.16 $347.78 $11,512.73 8 $11,512.73 $575.64 $12,088.37 $354.56 $11,737.23 9 $11,737.23 $586.86 $12,324.09 $361.48 $11,966.11 10 $11,966.11 $598.31 $12,564.42 $368.52 $12,199.45 Cumulative $5,488.58 $3,322.02
1. Effective February 1, 2007, the 1.00% front-end sales charge on Class C Shares was eliminated. If you purchased shares on or before January 31, 2007, please refer to the chart which includes the maximum front-end Sales Charge of 1.00%. FEDERATED MDT TAX AWARE/ALL CAP CORE FUND - CLASS C SHARES SHARES PURCHASED ON OR AFTER FEBRUARY 1, 20071 ANNUAL EXPENSE RATIO: 2.80% MAXIMUM FRONT-END SALES CHARGE: 0.00%
YEAR HYPOTHETICAL HYPOTHETICAL INVESTMENT HYPOTHETICAL HYPOTHETICAL BEGINNING PERFORMANCE AFTER EXPENSES ENDING INVESTMENT EARNINGS RETURNS INVESTMENT 1 $10,000.00 $500.00 $10,500.00 $283.08 $10,220.00 2 $10,220.00 $511.00 $10,731.00 $289.31 $10,444.84 Contractual/Gross Annual Expense Ratio: 2.91% 3 $10,444.84 $522.24 $10,967.08 $307.12 $10,663.14 Gross Annual Expense Ratio: 2.96% 4 $10,663.14 $533.16 $11,196.30 $318.85 $10,880.67 5 $10,880.67 $544.03 $11,424.70 $325.35 $11,102.64 6 $11,102.64 $555.13 $11,657.77 $331.99 $11,329.13 7 $11,329.13 $566.46 $11,895.59 $338.76 $11,560.24 8 $11,560.24 $578.01 $12,138.25 $345.67 $11,796.07 9 $11,796.07 $589.80 $12,385.87 $352.73 $12,036.71 10 $12,036.71 $601.84 $12,638.55 $359.92 $12,282.26 Cumulative $5,501.67 $3,252.78
1. Effective February 1, 2007, the 1.00% front-end sales charge on Class C Shares was eliminated. If you purchased shares on or before January 31, 2007, please refer to the chart which includes the maximum front-end Sales Charge of 1.00%. FEDERATED MUNICIPAL SECURITIES FUND, INC. - CLASS C SHARES SHARES PURCHASED ON OR AFTER FEBRUARY 1, 20071 ANNUAL EXPENSE RATIO: 1.73% MAXIMUM FRONT-END SALES CHARGE: 0.00% YEAR HYPOTHETICAL HYPOTHETICAL INVESTMENT HYPOTHETICAL HYPOTHETICAL BEGINNING PERFORMANCE AFTER EXPENSES ENDING INVESTMENT EARNINGS RETURNS INVESTMENT 1 $10,000.00 $500.00 $10,500.00 $175.83 $10,327.00 2 $10,327.00 $516.35 $10,843.35 $181.58 $10,664.69 3 $10,664.69 $533.23 $11,197.92 $187.52 $11,013.43 4 $11,013.43 $550.67 $11,564.10 $193.65 $11,373.57 5 $11,373.57 $568.68 $11,942.25 $199.98 $11,745.49 6 $11,745.49 $587.27 $12,332.76 $206.52 $12,129.57 7 $12,129.57 $606.48 $12,736.05 $213.27 $12,526.21 8 $12,526.21 $626.31 $13,152.52 $220.25 $12,935.82 9 $12,935.82 $646.79 $13,582.61 $227.45 $13,358.82 10 $13,358.82 $667.94 $14,026.76 $234.89 $13,795.65 Cumulative $5,803.72 $2,040.94 1. Effective February 1, 2007, the 1.00% front-end sales charge on Class C Shares was eliminated. If you purchased shares on or before January 31, 2007, please refer to the chart which includes the maximum front-end Sales Charge of 1.00%. FEDERATED REAL RETURN BOND FUND - CLASS C SHARES SHARES PURCHASED ON OR AFTER FEBRUARY 1, 20071 ANNUAL EXPENSE RATIO: 2.29% MAXIMUM FRONT-END SALES CHARGE: 0.00% YEAR HYPOTHETICAL HYPOTHETICAL INVESTMENT HYPOTHETICAL HYPOTHETICAL BEGINNING PERFORMANCE AFTER EXPENSES ENDING INVESTMENT EARNINGS RETURNS INVESTMENT 1 $10,000.00 $500.00 $10,500.00 $232.10 $10,271.00 2 $10,271.00 $513.55 $10,784.55 $238.39 $10,549.34 3 $10,549.34 $527.47 $11,076.81 $244.85 $10,835.23 4 $10,835.23 $541.76 $11,376.99 $251.49 $11,128.86 5 $11,128.86 $556.44 $11,685.30 $258.30 $11,430.45 6 $11,430.45 $571.52 $12,001.97 $265.30 $11,740.22 7 $11,740.22 $587.01 $12,327.23 $272.49 $12,058.38 8 $12,058.38 $602.92 $12,661.30 $279.88 $12,385.16 9 $12,385.16 $619.26 $13,004.42 $287.46 $12,720.80 10 $12,720.80 $636.04 $13,356.84 $295.25 $13,065.53 Cumulative $5,655.97 $2,625.51 1. Effective February 1, 2007, the 1.00% front-end sales charge on Class C Shares was eliminated. If you purchase shares on or before January 31, 2007, please refer to the chart which includes the maximum front-end Sales Charge of 1.00%. FEDERATED STOCK AND CALIFORNIA MUNI FUND: CLASS C SHARES SHARES PURCHASED ON OR AFTER FEBRUARY 1, 20071 ANNUAL EXPENSE RATIO: 3.51% MAXIMUM FRONT-END SALES CHARGE: 0.00% YEAR HYPOTHETICAL HYPOTHETICAL INVESTMENT HYPOTHETICAL HYPOTHETICAL BEGINNING PERFORMANCE AFTER EXPENSES ENDING INVESTMENT EARNINGS RETURNS INVESTMENT 1 $10,000.00 $500.00 $10,500.00 $353.61 $10,149.00 2 $10,149.00 $507.45 $10,656.45 $358.88 $10,300.22 3 $10,300.22 $515.01 $10,815.23 $364.23 $10,453.69 4 $10,453.69 $522.68 $10,976.37 $369.66 $10,609.45 5 $10,609.45 $530.47 $11,139.92 $375.17 $10,767.53 6 $10,767.53 $538.38 $11,305.91 $380.76 $10,927.97 7 $10,927.97 $546.40 $11,474.37 $386.43 $11,090.80 8 $11,090.80 $554.54 $11,645.34 $392.19 $11,256.05 9 $11,256.05 $562.80 $11,818.85 $398.03 $11,423.77 10 $11,423.77 $571.19 $11,994.96 $403.96 $11,593.98 Cumulative $5,348.92 $3,782.92 1. Effective February 1, 2007, the 1.00% front-end sales charge on Class C Shares was eliminated. If you purchase shares on or before January 31, 2007, please refer to the chart which includes the maximum front-end Sales Charge of 1.00%. December 12, 2006 Cusip 313914301 Cusip 313912404 Cusip 314195306 Cusip 31420C761 Cusip 3140C886 Cusip 313913303 Cusip 31421R205 Cusip 31421R833 Cusip 31421R809 Cusip 31421R866 Cusip 31421R791 Cusip 31421R767 Cusip 31421R734 Cusip 31421R502 Cusip 31420C738 36029 (12/06) -----END PRIVACY-ENHANCED MESSAGE-----