1933 Act File No. | 2-57181 |
1940 Act File No. | 811-2677 |
Form N-1A
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 | ||||
Pre-Effective Amendment No. | ||||
Post-Effective Amendment No. | 80 | |||
and/or | ||||
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 | ||||
Amendment No. | 64 | |||
FEDERATED MUNICIPAL SECURITIES FUND, INC.
(Exact Name of Registrant as Specified in Charter)
Federated Investors Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
(Address of Principal Executive Offices)
(412) 288-1900
(Registrant’s Telephone Number, including Area Code)
John W. McGonigle, Esquire
Federated Investors Tower
Pittsburgh, Pennsylvania 15222-3779
(Name and Address of Agent for Service)
It is proposed that this filing will become effective (check appropriate box): | |||
immediately upon filing pursuant to paragraph (b) | |||
X | on | May 27, 2016 | pursuant to paragraph (b) |
60 days after filing pursuant to paragraph (a)(1) | |||
on | pursuant to paragraph (a)(1) | ||
75 days after filing pursuant to paragraph (a)(2) | |||
on | pursuant to paragraph (a)(2) of Rule 485 | ||
If appropriate, check the following box: | |||
This post-effective amendment designates a new effective date for a previously filed post-effective amendment. |
Shareholder Fees (fees paid directly from your investment) | A | B | C | F |
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | 4.50% | None | None | 1.00% |
Maximum Deferred Sales Charge (Load) (as a percentage of original purchase price or redemption proceeds, as applicable) | 0.00% | 5.50% | 1.00% | 1.00% |
Maximum Sales Charge (Load) Imposed on Reinvested Dividends (and other Distributions) (as a percentage of offering price) | None | None | None | None |
Redemption Fee (as a percentage of amount redeemed, if applicable) | None | None | None | None |
Exchange Fee | None | None | None | None |
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) | ||||
Management Fee | 0.48% | 0.48% | 0.48% | 0.48% |
Distribution (12b-1) Fee | None | 0.75% | 0.75% | None |
Other Expenses | 0.46% | 0.46% | 0.46% | 0.46% |
Total Annual Fund Operating Expenses | 0.94% | 1.69% | 1.69% | 0.94% |
Fee Waivers and/or Expense Reimbursements1 | (0.07)% | 0.00% | 0.00% | (0.07)% |
Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements | 0.87% | 1.69% | 1.69% | 0.87% |
1 | The Adviser and certain of its affiliates, on their own initiative, have agreed to waive certain amounts of their respective fees and/or reimburse expenses. Total annual fund operating expenses (excluding acquired fund fees and expenses, interest expense, extraordinary expenses, line of credit expenses and proxy-related expenses paid by the Fund, if any) paid by the Fund's A and F classes (after the voluntary waivers and/or reimbursements) will not exceed 0.87% and 0.87% (the “Fee Limit”), respectively, up to but not including the later of (the “Termination Date”): (a) June 1, 2017; or (b) the date of the Fund's next effective Prospectus. While the Adviser and its affiliates currently do not anticipate terminating or increasing these arrangements prior to the Termination Date, these arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the agreement of the Fund's Board of Directors. |
Share Class | 1 Year | 3 Years | 5 Years | 10 Years |
A: | ||||
Expenses assuming redemption | $542 | $736 | $947 | $1,553 |
Expenses assuming no redemption | $542 | $736 | $947 | $1,553 |
B: | ||||
Expenses assuming redemption | $722 | $933 | $1,118 | $1,799 |
Expenses assuming no redemption | $172 | $533 | $918 | $1,799 |
C: | ||||
Expenses assuming redemption | $272 | $533 | $918 | $1.998 |
Expenses assuming no redemption | $172 | $533 | $918 | $1,998 |
Share Class | 1 Year | 3 Years | 5 Years | 10 Years |
F: | ||||
Expenses assuming redemption | $295 | $497 | $615 | $1,243 |
Expenses assuming no redemption | $195 | $397 | $615 | $1,243 |
■ | Tax-Exempt Securities Risk. The amount of public information available about tax-exempt securities is generally less than for corporate equities or bonds. The secondary market for tax-exempt securities also tends to be less well-developed and less liquid than many other securities markets, which may limit the Fund's ability to sell its tax-exempt securities at attractive prices. Special factors, such as legislative changes, and state and local economic and business developments, may adversely affect the yield and/or value of the Fund's investments in tax-exempt securities. Tax-exempt issuers can and have defaulted on obligations, been downgraded or commenced insolvency proceedings. Like other issuers and securities, the likelihood that the credit risk associated with such issuers and such securities will increase is greater during times of economic stress and financial instability. |
■ | Call Risk. The Fund's performance may be adversely affected by the possibility that an issuer of a security held by the Fund may redeem the security prior to maturity at a price below or above its current market value. |
■ | Credit Enhancement Risk. The securities in which the Fund invests may be subject to credit enhancement (for example, guarantees, letters of credit or bond insurance). If the credit quality of the credit enhancement provider (for example, a bank or bond insurer) is downgraded, the rating on a security credit enhanced by such credit enhancement provider also may be downgraded. Having multiple securities credit enhanced by the same enhancement provider will increase the adverse effects on the Fund that are likely to result from a downgrading of, or a default by, such an enhancement provider. Adverse developments in the banking or bond insurance industries also may negatively affect the Fund. |
■ | Leverage Risk. Leverage risk is created when an investment, which includes, for example, a derivative contract, exposes the Fund to a level of risk that exceeds the amount invested. Changes in the value of such an investment magnify the Fund's risk of loss and potential for gain. Investments can have these same results if their returns are based on a multiple of a specified index, security or other benchmark. |
■ | Liquidity Risk. Certain securities in which the Fund invests may be less readily marketable and may be subject to greater fluctuation in price than other securities. These features may make it more difficult to sell or buy a security at a favorable price or time. Noninvestment-grade securities generally have less liquidity than investment-grade securities. Liquidity risk also refers to the possibility that the Fund may not be able to sell a security or close out a derivative contract when it wants to. Over-the-counter derivative contracts generally carry greater liquidity risk than exchange-traded contracts. |
■ | Prepayment Risk. When homeowners prepay their mortgages in response to lower interest rates, the Fund will be required to reinvest the proceeds at the lower interest rates available. Also, when interest rates fall, the price of municipal mortgage-backed securities may not rise to as great an extent as that of other fixed-income securities. |
■ | Risk of Investing in Derivative Contracts and Hybrid Instruments. Derivative contracts and hybrid instruments involve risks different from, or possibly greater than, risks associated with investing directly in securities and other traditional investments. Specific risk issues related to the use of such contracts and instruments include valuation and tax issues, increased potential for losses and/or costs to the Fund, and a potential reduction in gains to the Fund. Each of these issues is described in greater detail in this Prospectus. Derivative contracts and hybrid instruments may also involve other risks described in this Prospectus or the Fund's Statement of Additional Information (SAI), such as interest rate, credit, liquidity and leverage risks. |
■ | Risk Associated with Noninvestment-Grade Securities. The Fund may invest a portion of its assets in securities that are below investment-grade quality (which are also known as junk bonds), which may be subject to greater economic, credit and liquidity risks than investment-grade securities. |
■ | Risk Related to the Economy. The value of the Fund's portfolio may decline in tandem with a drop in the overall value of the markets in which the fund invests and/or the stock market. Economic, political and financial conditions may, from time to time, cause the Fund to experience volatility, illiquidity, shareholder redemptions or other potentially adverse effects. Among other investments, lower-grade bonds may be particularly sensitive to changes in the economy. |
■ | Sector Risk. A substantial part of the Fund's portfolio may be comprised of securities issued or credit enhanced by companies in similar businesses, or with other similar characteristics. As a result, the Fund will be more susceptible to any economic, business, political or other developments which generally affect these issuers or entities. |
■ | Tax Risk. In order to be tax-exempt, tax-exempt securities must meet certain legal requirements. Failure to meet such requirements may cause the interest received and distributed by the Fund to shareholders to be taxable. The federal income tax treatment of payments in respect of certain derivative contracts is unclear. The Fund also may invest in market discount bonds, enter into credit default swap arrangements and other derivative transactions, and engage in other |
permissible activities that will likely cause the Fund to realize a limited amount of ordinary income or short-term capital gains (which are treated as ordinary income for federal income tax purposes). Consequently, for each of these reasons, the Fund may receive payments, and make distributions, that are treated as ordinary income for federal income tax purposes. Income from the Fund also may be subject to AMT. | |
■ | Issuer Credit Risk. It is possible that interest or principal on securities will not be paid when due. Noninvestment-grade securities generally have a higher default risk than investment-grade securities. Such non-payment or default may reduce the value of the Fund's portfolio holdings, its share price and its performance. |
■ | Counterparty Credit Risk. A party to a transaction involving the Fund may fail to meet its obligations. This could cause the Fund to lose money or to lose the benefit of the transaction or prevent the Fund from selling or buying other securities to implement its investment strategies. |
■ | Interest Rate Risk. Prices of fixed-income securities (including tax-exempt securities) generally fall when interest rates rise. Interest rate changes have a greater effect on prices of fixed-income securities with longer durations. |
■ | Technology Risk. The Adviser uses various technologies in managing the Fund, consistent with its investment objective and strategy described in this Prospectus. For example, proprietary and third-party data and systems are utilized to support decision making for the Fund. Data imprecision, software or other technology malfunctions, programming inaccuracies and similar circumstances may impair the performance of these systems, which may negatively affect Fund performance. |
Share Class | 1 Year | 5 Years | 10 Years | Start of Performance |
A: | ||||
Return Before Taxes | (1.94)% | 4.50% | 3.39% | |
Return After Taxes on Distributions | (1.94)% | 4.50% | 3.39% | |
Return After Taxes on Distributions and Sale of Fund Shares | 0.20% | 4.28% | 3.45% | |
B: | ||||
Return Before Taxes | (3.57)% | 4.27% | 3.15% | |
C: | ||||
Return Before Taxes | 0.91% | 4.60% | 2.98% | |
F (start of performance 5/31/2007): | ||||
Return Before Taxes | 0.72% | 5.24% | 3.76% | |
S&P Municipal Bond Investment Grade Index1 (reflects no deduction for fees, expenses or taxes) | 3.36% | 5.34% | 4.63% | |
S&P Municipal Bond Investment Grade, 3-year plus, Non-AMT Index2 (reflects no deduction for fees, expenses or taxes) | 3.88% | 6.13% | 5.08% | |
Morningstar Municipal National Long Funds Average3 | 3.07% | 5.67% | 4.22% |
1 | The S&P Municipal Bond Investment Grade Index (SPMBIGI) is the investment-grade component of the S&P Municipal Bond Index (Main Index). The Main Index is a broad, comprehensive, market value-weighted index composed of approximately 55,000 bond issues that are exempt from U.S. federal income taxes or subject to the alternative minimum tax (AMT). Eligibility criteria for inclusion in the Main Index include, but are not limited to: the bond issuer must be a state (including the Commonwealth of Puerto Rico and U.S. territories) or a local government or a state or local government entity where interest on the bond is exempt from U.S. federal income taxes or subject to the AMT; the bond must be held by a mutual fund for which Standard & Poor's Securities Evaluations, Inc. provides prices; it must be denominated in U.S. dollars and have a minimum par amount of $2 million; and the bond must have a minimum term to maturity and/or call date greater than or equal to one calendar month. The Main Index is rebalanced monthly. |
2 | The S&P Municipal Bond Investment Grade, 3-year plus, Non-AMT Index represents the portion of the SPMBIGI composed solely of bonds with remaining maturities of three years or more that are not subject to AMT. |
3 | Morningstar figures represent the average of the total returns reported by all the mutual funds designated by Morningstar as falling into the respective category indicated. |
■ | current and expected U.S. economic growth; |
■ | current and expected interest rates and inflation; |
■ | the Federal Reserve's monetary policy; and |
■ | supply and demand factors related to the municipal market and the effect they may have on the returns offered for various bond maturities. |
■ | the economic feasibility of revenue bond financings and general purpose financings; |
■ | the financial condition of the issuer or guarantor; and |
■ | political developments that may affect credit quality. |
■ | increase or decrease the effective duration of the Fund portfolio; |
■ | obtain premiums from the sale of derivative contracts; |
■ | realize gains from trading a derivative contract; or |
■ | hedge against potential losses. |
There can be no assurance that the Fund's use of derivative contracts or hybrid instruments will work as intended. |
The Fund will normally invest its assets so that at least 80% of the income that it distributes will be exempt from federal regular income tax. This policy may not be changed without shareholder approval. |
■ | Fixed-income securities acquired with remaining maturities greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Board of Directors (“Board”). |
■ | Fixed-income securities and repurchase agreements acquired with remaining maturities of 60 days or less are valued at their cost (adjusted for the accretion of any discount or amortization of any premium). |
■ | Derivative contracts listed on exchanges are valued at their reported settlement or closing price, except that options are valued at the mean of closing bid and asked quotations. |
■ | Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Board. |
Minimum Initial/Subsequent Investment Amounts1 | Maximum Sales Charges | ||
Shares Offered | Front-End Sales Charge2 | Contingent Deferred Sales Charge3 | |
A | $1,500/$100 | 4.50% | 0.00% |
B | $1,500/$100 | None | 5.50% |
C | $1,500/$100 | None | 1.00% |
F | $1,500/$100 | 1.00% | 1.00% |
1 | Please see “By Systematic Investment Program” for applicable minimum investment. Financial intermediaries may impose higher or lower minimum investment requirements on their customers than those imposed by the Fund. |
To maximize your return and minimize the sales charges and marketing fees, purchases of the B class are generally limited to $100,000 and purchases of the C class are generally limited to $1,000,000. Purchases equal to or in excess of these limits may be made in the A class. If your Shares are held on the books of the Fund in the name of a financial intermediary, you may be subject to rules of your financial intermediary that differ from those of the Fund. See “Purchase Restrictions on B Class and C Class” below. After the B class has been held for eight years from the date of purchase, they will automatically convert to the A class. This conversion is a non-taxable event. | |
2 | Front-End Sales Charge is expressed as a percentage of public offering price. See “Sales Charge When You Purchase.” |
3 | See “Sales Charge When You Redeem.” |
A: | ||
Purchase Amount | Sales Charge as a Percentage of Public Offering Price | Sales Charge as a Percentage of NAV |
Less than $100,000 | 4.50% | 4.71% |
$100,000 but less than $250,000 | 3.75% | 3.90% |
$250,000 but less than $500,000 | 2.50% | 2.56% |
$500,000 but less than $1 million | 2.00% | 2.04% |
$1 million or greater1 | 0.00% | 0.00% |
1 | A contingent deferred sales charge (CDSC) of 0.75% of the redemption amount applies to Shares originally purchased in an amount of $1 million or more and redeemed up to 24 months after purchase under certain investment programs where a financial intermediary received an advance payment on the transaction. CDSC exceptions may apply. See “Sales Charge When You Redeem.” |
F: | ||
Purchase Amount | Sales Charge as a Percentage of Public Offering Price | Sales Charge as a Percentage of NAV |
Less than $1 million | 1.00% | 1.01% |
$1 million or greater | 0.00% | 0.00% |
■ | Purchasing the A class or F class in greater quantities to reduce the applicable sales charge; |
■ | Combining concurrent purchases of and/or current investments in the A class, B class, C class, F class and R class shares of any Federated fund made or held by Qualifying Accounts; the purchase amount used in determining the sales charge on your additional Share purchase will be calculated by multiplying the respective maximum public offering price times the number of the A class, B class, C class, F class and R class shares of any Federated fund currently held in Qualifying Accounts and adding the dollar amount of your current purchase; or |
■ | Signing a letter of intent to purchase a qualifying amount of the A class or F class within 13 months. (Call your financial intermediary or the Fund for more information.) The Fund's custodian will hold Shares in escrow equal to the maximum applicable sales charge. If you complete the Letter of Intent, the Custodian will release the Shares in escrow to your account. If you do not fulfill the Letter of Intent, the Custodian will redeem the appropriate amount from the Shares held in escrow to pay the sales charges that were not applied to your purchases. |
■ | within 120 days of redeeming Shares of an equal or greater amount; |
■ | through a program offered by a Financial Intermediary that provides for the purchase of Shares without imposition of a sales charge (for example, a wrap account, self-directed brokerage account, retirement, or other fee-based program offered by the Financial Intermediary) and where the Financial Intermediary has agreed with the Distributor not to receive a dealer reallowance on purchases under such program; |
■ | with reinvested dividends or capital gains; |
■ | issued in connection with the merger, consolidation or acquisition of the assets of another fund. Further, the sales charge will be eliminated on purchases of Shares made by a shareholder that originally became a shareholder of a Federated Fund pursuant to the terms of an agreement and plan of reorganization which permits shareholders to acquire Shares at NAV, provided that such purchased Shares are held directly with the Fund's transfer agent. If the Shares are held through a financial intermediary the sales charge waiver will not apply (A class only); |
■ | as a Federated Life Member (Federated shareholders who originally were issued shares through the “Liberty Account,” which was an account for the Liberty Family of Funds on February 28, 1987, or who invested through an affinity group prior to August 1, 1987, into the Liberty Account) (A class only); |
■ | as a Director, employee or former employee of the Fund, the Adviser, the Distributor and their affiliates, an employee of any financial intermediary that sells Shares according to a sales agreement with the Distributor, an immediate family member of these individuals or a trust, pension or profit-sharing plan for these individuals; or |
■ | pursuant to the exchange privilege. |
The sales charge will not be eliminated if you purchase Shares of the Fund through an exchange of shares of Federated Government Reserves Fund unless your Federated Government Reserves Fund shares were acquired through an exchange of shares on which the sales charge had previously been paid. |
■ | Shares that are not subject to a CDSC; and |
■ | Shares held the longest. (To determine the number of years your Shares have been held, include the time you held shares of other Federated funds that have been exchanged for Shares of this Fund.) |
A: | ||
If you make a purchase of the A class in the amount of $1 million or more and your financial intermediary received an advance commission on the sale, you will pay a 0.75% CDSC on any such Shares redeemed within 24 months of the purchase. | ||
B: | ||
Shares Held Up To: | CDSC | |
1 Year | 5.50% | |
2 Years | 4.75% | |
3 Years | 4.00% | |
4 Years | 3.00% | |
5 Years | 2.00% | |
6 Years | 1.00% | |
7 Years or More | 0.00% | |
C: | ||
You will pay a 1.00% CDSC if you redeem Shares within 12 months of the purchase date. | ||
F: | ||
Purchase Amount | Shares Held | CDSC |
Up to $2 million | 4 years or less | 1.00% |
$2 million but less than $5 million | 2 years or less | 0.50% |
$5 million or more | 1 year or less | 0.25% |
■ | following the death of the last surviving shareholder on the account or the post-purchase disability of all registered shareholders, as defined in Section 72(m)(7) of the Internal Revenue Code of 1986 (the beneficiary on an account with a Transfer on Death registration is deemed the last surviving shareholder on the account); |
■ | due to the termination of a trust following the death of the trustor/grantor or beneficiary, provided that the trust document specifically states that the trust is terminated upon the death; |
■ | representing minimum required distributions from an IRA or other retirement plan as required under the Internal Revenue Code; |
■ | purchased by Directors, employees of the Fund, the Adviser, the Distributor and their affiliates, by employees of a financial intermediary that sells Shares according to a sales agreement with the Distributor, by the immediate family members of the above persons, and by trusts, pension or profit-sharing plans for the above persons; |
■ | purchased through a program offered by a Financial Intermediary that provides for the purchase of Shares without imposition of a sales charge (for example, a wrap account, self-directed brokerage account, retirement, or other fee-based program offered by the Financial Intermediary) and where the Financial Intermediary has agreed with the Distributor not to receive an advance commission on purchases under such program; |
■ | purchased with reinvested dividends or capital gains; |
■ | redeemed by the Fund when it closes an account for not meeting the minimum balance requirements; or |
■ | purchased pursuant to the exchange privilege if the Shares were held for the applicable CDSC holding period (the holding period on the shares purchased in the exchange will include the holding period of the shares sold in the exchange); |
■ | purchased in the amount of $1 million or more and redeemed within 24 months of purchase if the Shares were originally purchased through a program offered by a Financial Intermediary that provides for the purchase of Shares without imposition of a sales charge (for example, a wrap account, self-directed brokerage account, retirement, or other fee-based program offered by the Financial Intermediary) and where the Financial Intermediary has agreed with the principal underwriter not to receive an advanced commission on purchases under such program; |
■ | which are qualifying redemptions of the B class under a Systematic Withdrawal Program; |
■ | representing a total or partial distribution from a qualified plan, which does not include account transfers, rollovers or redemptions for the purpose of reinvestment. For these purposes, qualified plan does not include an IRA, individual 401(k) or custodial account following retirement. |
A Class: | |
Purchase Amount | Dealer Reallowance as a Percentage of Public Offering Price |
Less than $100,000 | 4.00% |
$100,000 but less than $250,000 | 3.25% |
$250,000 but less than $500,000 | 2.25% |
$500,000 but less than $1 million | 1.80% |
$1 million or greater | 0.00% |
F Class: | |
Less than $250,000 | 1.00% |
$250,000 or greater | 0.00% |
A Class (for purchases over $1 million): | |
Purchase Amount | Advance Commission as a Percentage of Public Offering Price |
First $1 million - $5 million | 0.75% |
Next $5 million - $20 million | 0.50% |
Over $20 million | 0.25% |
B Class: | |
Advance Commission as a Percentage of Public Offering Price | |
All Purchase Amounts | Up to 5.00% |
C Class: | |
Advance Commission as a Percentage of Public Offering Price | |
All Purchase Amounts | 1.00% |
F Class: | |
Purchase Amount | Advance Commission as a Percentage of Public Offering Price |
Less than $2 million | 1.00% |
$2 million but less than $5 million | 0.50% |
$5 million or greater | 0.25% |
■ | Establish an account with the financial intermediary; and |
■ | Submit your purchase order to the financial intermediary before the end of regular trading on the NYSE (normally 4:00 p.m. Eastern time). |
■ | Establish your account with the Fund by submitting a completed New Account Form; and |
■ | Send your payment to the Fund by Federal Reserve wire or check. |
■ | ensure that the account registrations are identical; |
■ | meet any applicable minimum initial investment requirements; and |
■ | receive a prospectus for the fund into which you wish to exchange. |
The Fund may modify or terminate the exchange privilege at any time. | |
You may purchase Shares through an exchange from the same share class of another Federated fund. |
■ | through a financial intermediary if you purchased Shares through a financial intermediary; or |
■ | directly from the Fund if you purchased Shares directly from the Fund. |
■ | Fund name and Share class, account number and account registration; |
■ | amount to be redeemed or exchanged; |
■ | signatures of all shareholders exactly as registered; and |
■ | if exchanging, the Fund name and Share class, account number and account registration into which you are exchanging. |
■ | your redemption will be sent to an address other than the address of record; |
■ | your redemption will be sent to an address of record that was changed within the last 30 days; |
■ | a redemption is payable to someone other than the shareholder(s) of record; or |
■ | transferring into another fund with a different shareholder registration. |
■ | An electronic transfer to your account at a financial institution that is an ACH member; or |
■ | Wire payment to your account at a domestic commercial bank that is a Federal Reserve System member. |
■ | to allow your purchase to clear (as discussed below); |
■ | during periods of market volatility; |
■ | when a shareholder's trade activity or amount adversely impacts the Fund's ability to manage its assets; or |
■ | during any period when the Federal Reserve wire or applicable Federal Reserve banks are closed, other than customary weekend and holiday closings. |
■ | when the NYSE is closed, other than customary weekend and holiday closings; |
■ | when trading on the NYSE is restricted, as determined by the SEC; or |
■ | in which an emergency exists, as determined by the SEC, so that disposal of the Fund's investments or determination of its NAV is not reasonably practicable. |
■ | ensure that the account registrations are identical; |
■ | meet any applicable minimum initial investment requirements; and |
■ | receive a prospectus for the fund into which you wish to exchange. |
The Fund may modify or terminate the exchange privilege at any time. |
■ | you redeem 12% or less of your account value in a single year; |
■ | you reinvest all dividends and capital gains distributions; |
■ | your account has at least a $10,000 balance when you establish the SWP. (You cannot aggregate multiple B class accounts to meet this minimum balance.); and |
■ | for all B class accounts established on or after August 2, 2010, the minimum SWP redemption amount is $50 per transaction, per fund, including transactions that qualify for a CDSC waiver as outlined in this Prospectus. |
■ | $1,500 for the A, B, C and F classes. |
Year Ended March 31 | 2016 | 2015 | 2014 | 2013 | 2012 |
Net Asset Value, Beginning of Period | $10.66 | $10.27 | $10.73 | $10.42 | $9.56 |
Income From Investment Operations: | |||||
Net investment income1 | 0.33 | 0.34 | 0.35 | 0.36 | 0.38 |
Net realized and unrealized gain (loss) on investments and futures contracts | 0.01 | 0.39 | (0.46) | 0.30 | 0.86 |
TOTAL FROM INVESTMENT OPERATIONS | 0.34 | 0.73 | (0.11) | 0.66 | 1.24 |
Less Distributions: | |||||
Distributions from net investment income | (0.32) | (0.34) | (0.35) | (0.35) | (0.38) |
Net Asset Value, End of Period | $10.68 | $10.66 | $10.27 | $10.73 | $10.42 |
Total Return2 | 3.31% | 7.16% | (0.97)% | 6.43% | 13.21% |
Ratios to Average Net Assets: | |||||
Net expenses | 0.87% | 0.87% | 0.87% | 0.87% | 0.87% |
Net investment income | 3.10% | 3.23% | 3.42% | 3.33% | 3.79% |
Expense waiver/reimbursement3 | 0.07% | 0.08% | 0.08% | 0.07% | 0.09% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $331,876 | $346,803 | $355,711 | $454,722 | $437,968 |
Portfolio turnover | 25% | 16% | 8% | 22% | 14% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
3 | This expense decrease is reflected in both the net expense and net investment income ratios shown above. |
Year Ended March 31 | 2016 | 2015 | 2014 | 2013 | 2012 |
Net Asset Value, Beginning of Period | $10.66 | $10.27 | $10.73 | $10.42 | $9.56 |
Income From Investment Operations: | |||||
Net investment income1 | 0.24 | 0.25 | 0.27 | 0.27 | 0.30 |
Net realized and unrealized gain (loss) on investments and futures contracts | 0.03 | 0.39 | (0.47) | 0.31 | 0.86 |
TOTAL FROM INVESTMENT OPERATIONS | 0.27 | 0.64 | (0.20) | 0.58 | 1.16 |
Less Distributions: | |||||
Distributions from net investment income | (0.24) | (0.25) | (0.26) | (0.27) | (0.30) |
Net Asset Value, End of Period | $10.69 | $10.66 | $10.27 | $10.73 | $10.42 |
Total Return2 | 2.54% | 6.28% | (1.79)% | 5.57% | 12.25% |
Ratios to Average Net Assets: | |||||
Net expenses | 1.69% | 1.70% | 1.71% | 1.69% | 1.72% |
Net investment income | 2.28% | 2.40% | 2.59% | 2.52% | 2.95% |
Expense waiver/reimbursement3 | 0.00%4 | 0.00% | 0.00% | 0.00%4 | 0.00%4 |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $5,732 | $7,303 | $8,292 | $11,434 | $11,174 |
Portfolio turnover | 25% | 16% | 8% | 22% | 14% |
1 | Per share number has been calculated using the average shares method. |
2 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
3 | This expense decrease is reflected in both the net expense and net investment income ratios shown above. |
4 | Represents less than 0.01%. |
Year Ended March 31 | 2016 | 2015 | 2014 | 2013 | 2012 |
Net Asset Value, Beginning of Period | $10.66 | $10.27 | $10.73 | $10.42 | $9.56 |
Income From Investment Operations: | |||||
Net investment income1 | 0.24 | 0.25 | 0.27 | 0.27 | 0.30 |
Net realized and unrealized gain (loss) on investments and futures contracts | 0.03 | 0.39 | (0.47) | 0.31 | 0.86 |
TOTAL FROM INVESTMENT OPERATIONS | 0.27 | 0.64 | (0.20) | 0.58 | 1.16 |
Less Distributions: | |||||
Distributions from net investment income | (0.24) | (0.25) | (0.26) | (0.27) | (0.30) |
Net Asset Value, End of Period | $10.69 | $10.66 | $10.27 | $10.73 | $10.42 |
Total Return2 | 2.54% | 6.27% | (1.79)% | 5.57% | 12.25% |
Ratios to Average Net Assets: | |||||
Net expenses | 1.69% | 1.70% | 1.71% | 1.69% | 1.72% |
Net investment income | 2.28% | 2.40% | 2.59% | 2.52% | 2.95% |
Expense waiver/reimbursement3 | 0.00%4 | 0.00% | 0.00% | 0.00%4 | 0.00%4 |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $20,372 | $19,001 | $18,047 | $27,246 | $25,267 |
Portfolio turnover | 25% | 16% | 8% | 22% | 14% |
1 | Per share number has been calculated using the average shares method. |
2 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
3 | This expense decrease is reflected in both the net expense and net investment income ratios shown above. |
4 | Represents less than 0.01%. |
Year Ended March 31 | 2016 | 2015 | 2014 | 2013 | 2012 |
Net Asset Value, Beginning of Period | $10.66 | $10.27 | $10.73 | $10.42 | $9.56 |
Income From Investment Operations: | |||||
Net investment income1 | 0.33 | 0.34 | 0.35 | 0.36 | 0.38 |
Net realized and unrealized gain (loss) on investments and futures contracts | 0.01 | 0.39 | (0.46) | 0.30 | 0.86 |
TOTAL FROM INVESTMENT OPERATIONS | 0.34 | 0.73 | (0.11) | 0.66 | 1.24 |
Less Distributions: | |||||
Distributions from net investment income | (0.32) | (0.34) | (0.35) | (0.35) | (0.38) |
Net Asset Value, End of Period | $10.68 | $10.66 | $10.27 | $10.73 | $10.42 |
Total Return2 | 3.31% | 7.17% | (0.97)% | 6.43% | 13.21% |
Ratios to Average Net Assets: | |||||
Net expenses | 0.87% | 0.87% | 0.87% | 0.87% | 0.87% |
Net investment income | 3.09% | 3.23% | 3.42% | 3.33% | 3.79% |
Expense waiver/reimbursement3 | 0.07% | 0.08% | 0.08% | 0.07% | 0.09% |
Supplemental Data: | |||||
Net assets, end of period (000 omitted) | $24,558 | $20,604 | $19,359 | $25,420 | $19,575 |
Portfolio turnover | 25% | 16% | 8% | 22% | 14% |
1 | Per share number has been calculated using the average shares method. |
2 | Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. |
3 | This expense decrease is reflected in both the net expense and net investment income ratios shown above. |
FEDERATED MUNICIPAL SECURITIES FUND, INC. - A CLASS | |||||
ANNUAL EXPENSE RATIO: 0.94% | |||||
MAXIMUM FRONT-END SALES CHARGE: 4.50% | |||||
Year | Hypothetical Beginning Investment | Hypothetical Performance Earnings | Investment After Returns | Hypothetical Expenses | Hypothetical Ending Investment |
1 | $10,000.00 | $477.50 | $10,027.50 | $541.59 | $9,937.73 |
2 | $9,937.73 | $496.89 | $10,434.62 | $95.31 | $10,341.20 |
3 | $10,341.20 | $517.06 | $10,858.26 | $99.18 | $10,761.05 |
4 | $10,761.05 | $538.05 | $11,299.10 | $103.21 | $11,197.95 |
5 | $11,197.95 | $559.90 | $11,757.85 | $107.40 | $11,652.59 |
6 | $11,652.59 | $582.63 | $12,235.22 | $111.76 | $12,125.69 |
7 | $12,125.69 | $606.28 | $12,731.97 | $116.30 | $12,617.99 |
8 | $12,617.99 | $630.90 | $13,248.89 | $121.02 | $13,130.28 |
9 | $13,130.28 | $656.51 | $13,786.79 | $125.93 | $13,663.37 |
10 | $13,663.37 | $683.17 | $14,346.54 | $131.04 | $14,218.10 |
Cumulative | $5,748.89 | $1,552.74 |
FEDERATED MUNICIPAL SECURITIES FUND, INC. - B CLASS | |||||
ANNUAL EXPENSE RATIO: 1.69% | |||||
MAXIMUM FRONT-END SALES CHARGE: NONE | |||||
Year | Hypothetical Beginning Investment | Hypothetical Performance Earnings | Investment After Returns | Hypothetical Expenses | Hypothetical Ending Investment |
1 | $10,000.00 | $500.00 | $10,500.00 | $171.80 | $10,331.00 |
2 | $10,331.00 | $516.55 | $10,847.55 | $177.48 | $10,672.96 |
3 | $10,672.96 | $533.65 | $11,206.61 | $183.36 | $11,026.23 |
4 | $11,026.23 | $551.31 | $11,577.54 | $189.43 | $11,391.20 |
5 | $11,391.20 | $569.56 | $11,960.76 | $195.70 | $11,768.25 |
6 | $11,768.25 | $588.41 | $12,356.66 | $202.18 | $12,157.78 |
7 | $12,157.78 | $607.89 | $12,765.67 | $208.87 | $12,560.20 |
8 | $12,560.20 | $628.01 | $13,188.21 | $215.78 | $12,975.94 |
Converts from B to A | Annual Expense Ratio: 0.94% | ||||
9 | $12,975.94 | $648.80 | $13,624.74 | $124.45 | $13,502.76 |
10 | $13,502.76 | $675.14 | $14,177.90 | $129.50 | $14,050.97 |
Cumulative | $5,819.32 | $1,798.55 |
FEDERATED MUNICIPAL SECURITIES FUND, INC. - C CLASS | |||||
ANNUAL EXPENSE RATIO: 1.69% | |||||
MAXIMUM FRONT-END SALES CHARGE: NONE | |||||
Year | Hypothetical Beginning Investment | Hypothetical Performance Earnings | Investment After Returns | Hypothetical Expenses | Hypothetical Ending Investment |
1 | $10,000.00 | $500.00 | $10,500.00 | $171.80 | $10,331.00 |
2 | $10,331.00 | $516.55 | $10,847.55 | $177.48 | $10,672.96 |
3 | $10,672.96 | $533.65 | $11,206.61 | $183.36 | $11,026.23 |
4 | $11,026.23 | $551.31 | $11,577.54 | $189.43 | $11,391.20 |
5 | $11,391.20 | $569.56 | $11,960.76 | $195.70 | $11,768.25 |
6 | $11,768.25 | $588.41 | $12,356.66 | $202.18 | $12,157.78 |
7 | $12,157.78 | $607.89 | $12,765.67 | $208.87 | $12,560.20 |
8 | $12,560.20 | $628.01 | $13,188.21 | $215.78 | $12,975.94 |
9 | $12,975.94 | $648.80 | $13,624.74 | $222.92 | $13,405.44 |
10 | $13,405.44 | $670.27 | $14,075.71 | $230.30 | $13,849.16 |
Cumulative | $5,814.45 | $1,997.82 |
FEDERATED MUNICIPAL SECURITIES FUND, INC. - F CLASS | |||||
ANNUAL EXPENSE RATIO: 0.94% | |||||
MAXIMUM FRONT-END SALES CHARGE: 1.00% | |||||
Year | Hypothetical Beginning Investment | Hypothetical Performance Earnings | Investment After Returns | Hypothetical Expenses | Hypothetical Ending Investment |
1 | $10,000.00 | $495.00 | $10,395.00 | $194.95 | $10,301.94 |
2 | $10,301.94 | $515.10 | $10,817.04 | $98.80 | $10,720.20 |
3 | $10,720.20 | $536.01 | $11,256.21 | $102.82 | $11,155.44 |
4 | $11,155.44 | $557.77 | $11,713.21 | $106.99 | $11,608.35 |
5 | $11,608.35 | $580.42 | $12,188.77 | $111.33 | $12,079.65 |
6 | $12,079.65 | $603.98 | $12,683.63 | $115.85 | $12,570.08 |
7 | $12,570.08 | $628.50 | $13,198.58 | $120.56 | $13,080.43 |
8 | $13,080.43 | $654.02 | $13,734.45 | $125.45 | $13,611.50 |
9 | $13,611.50 | $680.58 | $14,292.08 | $130.55 | $14,164.13 |
10 | $14,164.13 | $708.21 | $14,872.34 | $135.85 | $14,739.19 |
Cumulative | $5,959.59 | $1,243.15 |
■ | Buy call options on a Reference Instrument in anticipation of an increase in the value of the Reference Instrument; and |
■ | Write call options on a Reference Instrument to generate income from premiums, and in anticipation of a decrease or only limited increase in the value of the Reference Instrument. If the Fund writes a call option on a Reference Instrument that it owns and that call option is exercised, the Fund foregoes any possible profit from an increase in the market price of the Reference Instrument over the exercise price plus the premium received. |
■ | Buy put options on a Reference Instrument in anticipation of a decrease in the value of the Reference Instrument; and |
■ | Write put options on a Reference Instrument to generate income from premiums, and in anticipation of an increase or only limited decrease in the value of the Reference Instrument. In writing puts, there is a risk that the Fund may be required to take delivery of the Reference Instrument when its current market price is lower than the exercise price. |
■ | utility companies will be divided according to their services, for example, gas, gas transmissions, electric and telephone will each be considered a separate industry; |
■ | financial service companies will be classified according to the end users of their services, for example, automobile finance, bank finance and diversified finance will each be considered a separate industry; and |
■ | asset-backed securities will be classified according to the underlying assets securing such securities. |
■ | Equity securities listed on a U.S. securities exchange or traded through the U.S. national market system are valued at their last reported sale price or official closing price in their principal exchange or market. If a price is not readily available, such equity securities are valued based upon the mean of closing bid and asked quotations from one or more dealers. |
■ | Other equity securities traded primarily in the United States are valued based upon the mean of closing bid and asked quotations from one or more dealers. |
■ | Equity securities traded primarily through securities exchanges and regulated market systems outside the United States are valued at their last reported sale price or official closing price in their principal exchange or market. These prices may be adjusted for significant events occurring after the closing of such exchanges or market systems as described below. If a price is not readily available, such equity securities are valued based upon the mean of closing bid and asked quotations from one or more dealers. |
■ | Fixed-income securities acquired with remaining maturities of greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Board. The methods used by pricing services to determine such price evaluations are described below. If a price evaluation from a pricing service is not readily available, such fixed-income securities are fair valued based upon price evaluations from one or more dealers. |
■ | Fixed-income securities and repurchase agreements acquired with remaining maturities of 60 days or less are valued at their amortized cost as described below, unless the issuer's creditworthiness is impaired or other factors indicate that amortized cost is not an accurate estimate of the investment's fair value, in which case it would be valued in the same manner as a longer-term security or repurchase agreement. |
■ | Futures contracts listed on exchanges are valued at their reported settlement price. Option contracts listed on exchanges are valued based upon the mean of closing bid and asked quotations reported by the exchange or from one or more futures commission merchants. |
■ | OTC derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Board. The methods used by pricing services to determine such price evaluations are described below. If a price evaluation from a pricing service is not readily available, such derivative contracts are fair valued based upon price evaluations from one or more dealers or using a recognized pricing model for the contract. |
■ | Shares of other mutual funds or non-exchange-traded investment companies are valued based upon their reported NAVs. The prospectuses for these mutual funds explain the circumstances under which they will use fair value pricing and the effects of using fair value pricing. |
If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, or if the Fund cannot obtain price evaluations from a pricing service or from more than one dealer for an investment within a reasonable period of time as set forth in the Fund's valuation policies and procedures, the Fund will use the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could purchase or sell an investment at the price used to calculate the Fund's NAV. The Fund will not use a pricing service or dealer who is an affiliated person of the Adviser to value investments. |
Noninvestment assets and liabilities are valued in accordance with U.S. Generally Accepted Accounting Principles (GAAP). The NAV calculation includes expenses, dividend income, interest income, other income and realized and unrealized investment gains and losses through the date of the calculation. Changes in holdings of investments and in the number of outstanding Shares are included in the calculation not later than the first business day following such change. Any assets or liabilities denominated in foreign currencies are converted into U.S. dollars using an exchange rate obtained from one or more currency dealers. |
The Fund follows procedures that are common in the mutual fund industry regarding errors made in the calculation of its NAV. This means that, generally, the Fund will not correct errors of less than one cent per Share or errors that did not result in net dilution to the Fund. |
■ | With respect to securities traded principally in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures contracts; |
■ | Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; and |
■ | Announcements concerning matters such as acquisitions, recapitalizations or litigation developments, or a natural disaster affecting the issuer's operations or regulatory changes or market developments affecting the issuer's industry. |
2016 | 2015 | 2014 | ||||
Total Sales Charges | Amount Retained | Total Sales Charges | Amount Retained | Total Sales Charges | Amount Retained | |
Class A Shares | $118,318 | $16,334 | $182,414 | $20,838 | $367,956 | $45,161 |
Class B Shares | $15,587 | $15,437 | $12,340 | $10,134 | $23,422 | $12,552 |
Class C Shares | $1,212 | $1,212 | $1,140 | $1,140 | $4,603 | $4,603 |
Class F Shares | $28,601 | $6,572 | $28,735 | $8,367 | $85,052 | $14,549 |
■ | Outstanding skills in disciplines deemed by the Independent Directors to be particularly relevant to the role of Independent Director and to the Federated funds, including legal, accounting, business management, the financial industry generally and the investment industry particularly. |
■ | Desire and availability to serve for a substantial period of time, taking into account the Board's current mandatory retirement age of 75 years. |
■ | No conflicts which would interfere with qualifying as independent. |
■ | Appropriate interpersonal skills to work effectively with other Independent Directors. |
■ | Understanding and appreciation of the important role occupied by Independent Directors in the regulatory structure governing regulated investment companies. |
■ | Diversity of background. |
Name Birth Date Positions Held with Fund Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s) | Aggregate Compensation From Fund (past fiscal year) | Total Compensation From Fund and Federated Fund Complex (past calendar year) |
J. Christopher Donahue* Birth Date: April 11, 1949 President and Director Indefinite Term Began serving: December 1986 | Principal Occupations: Principal Executive Officer and President of certain of the Funds in the Federated Fund Complex; Director or Trustee of the Funds in the Federated Fund Complex; President, Chief Executive
Officer and Director, Federated Investors, Inc.; Chairman and Trustee, Federated Investment Management Company; Trustee, Federated Investment Counseling; Chairman and Director, Federated Global Investment Management
Corp.; Chairman, Federated Equity Management Company of Pennsylvania and Passport Research, Ltd. (investment advisory subsidiary of Federated); Trustee, Federated Shareholder Services Company; Director, Federated
Services Company. Previous Positions: President, Federated Investment Counseling; President and Chief Executive Officer, Federated Investment Management Company, Federated Global Investment Management Corp. and Passport Research, Ltd. | $0 | $0 |
Name Birth Date Positions Held with Fund Date Service Began | Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s) | Aggregate Compensation From Fund (past fiscal year) | Total Compensation From Fund and Federated Fund Complex (past calendar year) |
Thomas R. Donahue* Birth Date: October 20,1958 Director Indefinite Term Began serving: May 2016 | Principal Occupations: Director or Trustee of certain funds in the Federated Fund Complex; Chief Financial Officer, Treasurer, Vice President, Assistant Treasurer and Assistant Secretary, Federated Investors,
Inc.; Chairman and Trustee, Federated Administrative Services; Chairman and Director, Federated Administrative Services, Inc.; Trustee and Treasurer, Federated Advisory Services Company; Director or Trustee and
Treasurer, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, and Federated Investment Management Company; Director, MDTA LLC;
Treasurer, Passport Research, LTD; Director, Executive Vice President and Assistant Secretary, Federated Securities Corp.; Director and Chairman, Federated Services Company and Federated Shareholder Services Company;
and Director and President, FII Holdings, Inc. Previous Positions: President and Director of the Institutional Sales Division of Federated Securities Corp.; President and Director of Federated Investment Counseling; Director, Edgewood Securities Corp.; Director, Federated Services Company; Director, Federated Investors, Inc.; Chairman and Director, Southpointe Distribution Services, Inc. and President, Technology, Federated Services Company. | $0 | $0 |
* | Family relationships and reasons for “interested” status: J. Christopher Donahue and Thomas R. Donahue are brothers. Both are “interested” due to their beneficial ownership of shares of Federated Investors, Inc. and the positions they hold with Federated and its subsidiaries. Thomas R. Donahue and J. Christopher Donahue are sons of John F. Donahue, Chairman Emeritus of the Federated Funds. |
Name Birth Date Positions Held with Fund Date Service Began | Principal Occupation(s) and Other Directorships Held for Past Five Years, Previous Position(s) and Qualifications | Aggregate Compensation From Fund (past fiscal year) | Total Compensation From Fund and Federated Fund Complex (past calendar year) |
John T. Collins Birth Date: January 24, 1947 Director Indefinite Term Began serving: October 2013 | Principal Occupations: Director or Trustee of the Federated Fund Complex; Retired. Other Directorships Held: Director, Chair of the Compensation Committee, Audit Committee member, KLX Corp. Qualifications: Mr. Collins has served in several business and financial management roles and directorship positions throughout his career. Mr. Collins previously served as Chairman and CEO, The Collins Group, Inc. (a private equity firm). Mr. Collins serves as Chairman Emeriti, Bentley University. Mr. Collins previously served as Director, FleetBoston Financial Corp.; Director and Audit Committee Member, Bank of America Corp. and Director, Beth Israel Deaconess Medical Center (Harvard University Affiliate Hospital). | $1,302.87 | $261,250 |
G. Thomas Hough Birth Date: February 28,1955 Director Indefinite Term Began serving: August 2015 | Principal Occupations: Director or Trustee of the Federated Fund Complex; Retired. Other Directorships Held: Director, Chair of the Audit Committee, Governance Committee, Publix Super Markets, Inc. Qualifications: Mr. Hough has served in accounting, business management and directorship positions throughout his career. Mr. Hough most recently held the position of Americas Vice Chair of Assurance with Ernst & Young LLP. Mr. Hough is an Executive Committee member of the United States Golf Association; he serves on the President's Cabinet and Business School Board of Visitors for the University of Alabama and is on the Business School Board of Visitors for Wake Forest University. | $868.62 | $107,540.05 |
Name Birth Date Positions Held with Fund Date Service Began | Principal Occupation(s) and Other Directorships Held for Past Five Years, Previous Position(s) and Qualifications | Aggregate Compensation From Fund (past fiscal year) | Total Compensation From Fund and Federated Fund Complex (past calendar year) |
Maureen Lally-Green Birth Date: July 5, 1949 Director Indefinite Term Began serving: August 2009 | Principal Occupations: Director or Trustee of the Federated Fund Complex; Adjunct Professor of Law, Duquesne University School of Law. Other Directorships Held: Director, CONSOL Energy Inc. Qualifications: Judge Lally-Green has served in various legal and business roles and directorship positions throughout her career. Judge Lally-Green previously served as: Associate General Secretary, Diocese of Pittsburgh; a member of the Superior Court of Pennsylvania; and as a Professor of Law, Duquesne University School of Law. Judge Lally-Green also holds the positions on either a public or not for profit Board of Directors as follows: Member, Pennsylvania State Board of Education (public); Director and Chair, UPMC Mercy Hospital; Regent, St. Vincent Seminary; Director and Vice Chair, Our Campaign for the Church Alive!, Inc.; Director, Saint Vincent College; and Director and Chair, Cardinal Wuerl North Catholic High School, Inc. Judge Lally-Green has held the positions of: Director, Auberle; Director, Ireland Institute of Pittsburgh; Director, Saint Thomas More Society; and Director, Catholic High Schools of the Diocese of Pittsburgh, Inc. | $1,302.87 | $261,250 |
Peter E. Madden Birth Date: March 16, 1942 Director Indefinite Term Began serving: August 1991 | Principal Occupation: Director or Trustee, and Chair of the Board of Directors or Trustees, of the Federated Fund Complex; Retired. Other Directorships Held: None. Qualifications: Mr. Madden has served in several business management, mutual fund services and directorship positions throughout his career. Mr. Madden previously served as President, Chief Operating Officer and Director, State Street Bank and Trust Company (custodian bank) and State Street Corporation (financial services). He was Director, VISA USA and VISA International; and Chairman and Director, Massachusetts Bankers Association. Mr. Madden served as Director, Depository Trust Corporation; and Director, The Boston Stock Exchange. Mr. Madden also served as a Representative to the Commonwealth of Massachusetts General Court. | $1,602.93 | $322,500 |
Charles F. Mansfield, Jr. Birth Date: April 10, 1945 Director Indefinite Term Began serving: June 1999 | Principal Occupations: Director or Trustee of the Federated Fund Complex; Management Consultant. Other Directorships Held: None. Qualifications: Mr. Mansfield has served in several banking, business management and educational roles and directorship positions throughout his career. Mr. Mansfield previously served as Chief Executive Officer, PBTC International Bank; Partner, Arthur Young & Company (now Ernst & Young LLP); Chief Financial Officer of Retail Banking Sector, Chase Manhattan Bank; Senior Vice President, HSBC Bank USA (formerly, Marine Midland Bank); Vice President, Citibank; Assistant Professor of Banking and Finance, Frank G. Zarb School of Business, Hofstra University; Executive Vice President DVC Group, Inc. (marketing, communications and technology). | $1,184.42 | $237,500 |
Thomas M. O'Neill Birth Date: June 14, 1951 Director Indefinite Term Began serving: October 2006 | Principal Occupations: Director or Trustee, Chair of the Audit Committee of the Federated Fund Complex; Sole Proprietor, Navigator Management Company (investment and strategic consulting). Other Directorships Held: None. Qualifications: Mr. O'Neill has served in several business, mutual fund and financial management roles and directorship positions throughout his career. Mr. O'Neill serves as Director, Medicines for Humanity and Director, The Golisano Children's Museum of Naples, Florida. Mr. O'Neill previously served as Chief Executive Officer and President, Managing Director and Chief Investment Officer, Fleet Investment Advisors; President and Chief Executive Officer, Aeltus Investment Management, Inc.; General Partner, Hellman, Jordan Management Co., Boston, MA; Chief Investment Officer, The Putnam Companies, Boston, MA; Credit Analyst and Lending Officer, Fleet Bank; Director and Consultant, EZE Castle Software (investment order management software); and Director, Midway Pacific (lumber). | $1,332.90 | $261,250 |
Name Birth Date Positions Held with Fund Date Service Began | Principal Occupation(s) and Other Directorships Held for Past Five Years, Previous Position(s) and Qualifications | Aggregate Compensation From Fund (past fiscal year) | Total Compensation From Fund and Federated Fund Complex (past calendar year) |
P. Jerome Richey Birth Date: February 23, 1949 Director Indefinite Term Began serving: October 2013 | Principal Occupations: Director or Trustee of the Federated Fund Complex; Management Consultant. Other Directorships Held: None. Qualifications: Mr. Richey has served in several business and legal management roles and directorship positions throughout his career. Mr. Richey most recently held the positions of Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh. Mr. Richey serves as Board Member, Epilepsy Foundation of Western Pennsylvania and Board member, World Affairs Council of Pittsburgh. Mr. Richey previously served as Chief Legal Officer and Executive Vice President, CONSOL Energy Inc. and Shareholder, Buchanan Ingersoll & Rooney PC (a law firm). | $1,184.42 | $237,500 |
John S. Walsh Birth Date: November 28, 1957 Director Indefinite Term Began serving: January 1999 | Principal Occupations: Director or Trustee of the Federated Fund Complex; President and Director, Heat Wagon, Inc. (manufacturer of construction temporary heaters); President and Director, Manufacturers Products, Inc. (distributor
of portable construction heaters); President, Portable Heater Parts, a division of Manufacturers Products, Inc. Other Directorships Held: None. Qualifications: Mr. Walsh has served in several business management roles and directorship positions throughout his career. Mr. Walsh previously served as Vice President, Walsh & Kelly, Inc. (paving contractors). | $1,365.88 | $286,250 |
Name Birth Date Positions Held with Fund Date Service Began | Principal Occupation(s) and Previous Position(s) |
John W. McGonigle Birth Date: October 26, 1938 EXECUTIVE VICE PRESIDENT AND SECRETARY Officer since: September 1976 | Principal Occupations: Executive Vice President and Secretary of the Federated Fund Complex; Vice Chairman, Executive Vice President, Secretary and Director, Federated Investors, Inc. Previous Positions: Trustee, Federated Investment Management Company and Federated Investment Counseling; Director, Federated Global Investment Management Corp., Federated Services Company and Federated Securities Corp. |
Lori A. Hensler Birth Date: January 6, 1967 Treasurer Officer since: April 2013 | Principal Occupations: Principal Financial Officer and Treasurer of the Federated Fund Complex; Senior Vice President, Federated Administrative Services; Financial and Operations Principal for Federated
Securities Corp. and Edgewood Services, Inc.; and Assistant Treasurer, Federated Investors Trust Company. Ms. Hensler has received the Certified Public Accountant designation. Previous Positions: Controller of Federated Investors, Inc.; Senior Vice President and Assistant Treasurer, Federated Investors Management Company; Treasurer, Federated Investors Trust Company; Assistant Treasurer, Federated Administrative Services, Federated Administrative Services, Inc., Federated Securities Corp., Edgewood Services, Inc., Federated Advisory Services Company, Federated Equity Management Company of Pennsylvania, Federated Global Investment Management Corp., Federated Investment Counseling, Federated Investment Management Company, Passport Research, Ltd. and Federated MDTA, LLC; Financial and Operations Principal for Federated Securities Corp., Edgewood Services, Inc. and Southpointe Distribution Services, Inc. |
Peter J. Germain Birth Date: September 3, 1959 CHIEF LEGAL OFFICER Officer since: January 2005 | Principal Occupations: Mr. Germain is Chief Legal Officer of the Federated Fund Complex. He is General Counsel and Vice President, Federated Investors, Inc.; President, Federated Administrative Services and
Federated Administrative Services, Inc.; Vice President, Federated Securities Corp.; Secretary, Federated Private Asset Management, Inc.; and Secretary, Retirement Plan Service Company of America. Mr. Germain joined
Federated in 1984 and is a member of the Pennsylvania Bar Association. Previous Positions: Deputy General Counsel, Special Counsel, Managing Director of Mutual Fund Services, Federated Investors, Inc.; Senior Vice President, Federated Services Company; and Senior Corporate Counsel, Federated Investors, Inc. |
Richard B. Fisher Birth Date: May 17, 1923 Vice President Officer since: January 1985 | Principal Occupations: Vice Chairman or Vice President of some of the Funds in the Federated Fund Complex; Vice Chairman, Federated Investors, Inc.; Chairman, Federated Securities Corp. Previous Positions: President and Director or Trustee of some of the Funds in the Federated Fund Complex; Executive Vice President, Federated Investors, Inc.; Director and Chief Executive Officer, Federated Securities Corp. |
Name Birth Date Positions Held with Fund Date Service Began | Principal Occupation(s) and Previous Position(s) |
Stephen Van Meter Birth Date: June 5, 1975 CHIEF COMPLIANCE OFFICER AND SENIOR VICE PRESIDENT Officer since: July 2015 | Principal Occupations: Senior Vice President and Chief Compliance Officer of the Federated Fund Complex; Vice President and Chief Compliance Officer of Federated Investors, Inc. and Chief Compliance Officer of
certain of its subsidiaries. Mr. Van Meter joined Federated in October 2011. He holds FINRA licenses under Series 3, 7, 24 and 66. Previous Positions: Mr. Van Meter previously held the position of Compliance Operating Officer, Federated Investors, Inc. Prior to joining Federated, Mr. Van Meter served at the United States Securities and Exchange Commission in the positions of Senior Counsel, Office of Chief Counsel, Division of Investment Management and Senior Counsel, Division of Enforcement. |
Robert J. Ostrowski Birth Date: April 26, 1963 Chief Investment Officer Officer since: February 2010 | Principal Occupations: Robert J. Ostrowski joined Federated in 1987 as an Investment Analyst and became a Portfolio Manager in 1990. He was named Chief Investment Officer of Federated's taxable fixed-income products in 2004 and also serves as a Senior Portfolio Manager. Mr. Ostrowski became an Executive Vice President of the Fund's Adviser in 2009 and served as a Senior Vice President of the Fund's Adviser from 1997 to 2009. Mr. Ostrowski has received the Chartered Financial Analyst designation. He received his M.S. in Industrial Administration from Carnegie Mellon University. |
* | Officers do not receive any compensation from the Fund. |
1 | The fees paid to each Director/Trustee are allocated among the funds that were in existence at the time the Director/Trustee elected Emeritus status, based on each fund's net asset at that time. |
Director/Trustee Emeritus | Compensation From Fund (past fiscal year) | Total Compensation Paid to Director/Trustee Emeritus1 |
John F. Donahue Chairman Emeritus | $0.00 | $0.00 |
John T. Conroy, Jr. | $66.37 | $47,500.00 |
Nicholas Constantakis | $66.37 | $47,500.00 |
Robert J. Nicholson | $66.37 | $47,411.19 |
James F. Will | $66.37 | $47,500.00 |
Board Committee | Committee Members | Committee Functions | Meetings Held During Last Fiscal Year |
Executive | J. Christopher Donahue Peter E. Madden John S. Walsh | In between meetings of the full Board, the Executive Committee generally may exercise all the powers of the full Board in the management and direction of the business and conduct of the affairs of the Corporation in such manner as the Executive Committee shall deem to be in the best interests of the Corporation. However, the Executive Committee cannot elect or remove Board members, increase or decrease the number of Directors, elect or remove any Officer, declare dividends, issue shares or recommend to shareholders any action requiring shareholder approval. | One |
Audit | John T. Collins G. Thomas Hough Maureen Lally-Green Thomas M. O'Neill | The purposes of the Audit Committee are to oversee the accounting and financial reporting process of the Fund, the Fund's internal control over financial reporting and the quality, integrity and independent audit of the Fund's financial statements. The Committee also oversees or assists the Board with the oversight of compliance with legal requirements relating to those matters, approves the engagement and reviews the qualifications, independence and performance of the Fund's independent registered public accounting firm, acts as a liaison between the independent registered public accounting firm and the Board and reviews the Fund's internal audit function. | Eight |
Nominating | John T. Collins G. Thomas Hough Maureen Lally-Green Peter E. Madden Charles F. Mansfield, Jr. Thomas M. O'Neill P. Jerome Richey John S. Walsh | The Nominating Committee, whose members consist of all Independent Directors, selects and nominates persons for election to the Fund's Board when vacancies occur. The Committee will consider candidates recommended by shareholders, Independent Directors, officers or employees of any of the Fund's agents or service providers and counsel to the Fund. Any shareholder who desires to have an individual considered for nomination by the Committee must submit a recommendation in writing to the Secretary of the Fund, at the Fund's address appearing on the back cover of this SAI. The recommendation should include the name and address of both the shareholder and the candidate and detailed information concerning the candidate's qualifications and experience. In identifying and evaluating candidates for consideration, the Committee shall consider such factors as it deems appropriate. Those factors will ordinarily include: integrity, intelligence, collegiality, judgment, diversity, skill, business and other experience, qualification as an “Independent Director,” the existence of material relationships which may create the appearance of a lack of independence, financial or accounting knowledge and experience and dedication and willingness to devote the time and attention necessary to fulfill Board responsibilities. | One |
Interested Board Member Name | Dollar Range of Shares Owned in Federated Municipal Securities Fund, Inc. | Aggregate Dollar Range of Shares Owned in Federated Family of Investment Companies |
J. Christopher Donahue | None | Over $100,000 |
Thomas R. Donahue | None | Over $100,000 |
Independent Board Member Name | ||
John T. Collins | None | Over $100,000 |
G. Thomas Hough | None | $50,001-$100,000 |
Maureen Lally-Green | None | Over $100,000 |
Peter E. Madden | None | Over $100,000 |
Charles F. Mansfield, Jr. | None | Over $100,000 |
Thomas M. O'Neill | None | Over $100,000 |
P. Jerome Richey | None | Over $100,000 |
John S. Walsh | None | Over $100,000 |
Types of Accounts Managed by J. Scott Albrecht | Total Number of Additional Accounts Managed/Total Assets* |
Registered Investment Companies | 4/$510.4 million |
Other Pooled Investment Vehicles | 0/$0 |
Other Accounts | 0/$0 |
* | None of the Accounts has an advisory fee that is based on the performance of the account. |
■ | A due diligence team made up of employees of the Adviser and/or its affiliates will meet with the proxy voting service on an annual basis and determine through a review of their policies and procedures and through inquiry that the proxy voting service has established a system of internal controls that provide reasonable assurance that their voting recommendations are not influenced by the business relationships they have with the subjects of their research. |
■ | Whenever the standard voting guidelines call for voting a proposal in accordance with the proxy voting service recommendation and the proxy voting service has disclosed that they have a conflict of interest with respect to that issuer, the PVOT will take the following steps: (a) The PVOT will obtain a copy of the research report and recommendations published by another proxy voting service for that issuer; (b) The Head of the PVOT, or his designee, will review both the engaged proxy voting service research report and the research report of the other proxy voting service and determine what vote will be cast. The PVOT will report all proxies voted in this manner to the Proxy Committee on a quarterly basis. Alternatively, the PVOT may seek direction from the Committee on how the proposal shall be voted. |
Administrative Services Fee Rate | Average Daily Net Assets of the Investment Complex |
0.150 of 1% | on the first $5 billion |
0.125 of 1% | on the next $5 billion |
0.100 of 1% | on the next $10 billion |
0.075 of 1% | on assets over $20 billion |
For the Year Ended March 31 | 2016 | 2015 | 2014 |
Advisory Fee Earned | $1,812,188 | $1,937,593 | $2,177,355 |
Net Administrative Fee | $296,913 | $313,523 | $345,623 |
Net 12b-1 Fee: | |||
Class B Shares | $47,827 | $59,482 | $69,754 |
Class C Shares | $141,041 | $140,427 | $165,572 |
Net Shareholder Services Fee: | |||
Class A Shares | $604,119 | $603,676 | $644,317 |
Class B Shares | $15,942 | $19,828 | $23,251 |
Class C Shares | $47,013 | $46,809 | $55,191 |
Class F Shares | $40,341 | $34,059 | $34,925 |
Item 28. Exhibits
(a) | Conformed copy of Articles of Restatement of the Registrant (including Amendment Nos. 4-13); | (20) |
2 | Conformed copy of Articles Supplementary; | (27) |
(b) | Copy of By-Laws of the Registrant (including Amendment Nos. 11-13); | (20) |
2 | Amendment No. 14 | (22) |
3 | Amendment No. 15 | (23) |
4 | Amendment No. 16 | (24) |
5 | Amendment No. 17 | (24) |
6 | Amendment No. 18 | (24) |
(c) | Copies of Specimen Certificates for Shares of Capital Stock of the Registrant’s Class A Shares, Class B Shares and Class C Shares; As of September 1, 1997, Federated Securities Corp. stopped issuing share certificates. | (16) |
(d) | ||
1 | Conformed Copy of Investment Advisory Contract of the Registrant; | (9) |
2 | Conformed copy of Amendment dated June 1, 2001 to the Investment Advisory Contract of the Registrant; | (21) |
(e) | ||
1 | Conformed Copy of Distributor's Contract of the Registrant; | (12) |
2 | Conformed Copy of Exhibit A and B to the Distributor’s Contract of the Registrant; | (20) |
3 | Conformed Copy of Distributor’s Contract (Class B Shares) including Exhibit 1 and Schedule A and B; | (17) |
4 | The Registrant hereby incorporates the conformed copy of the specimen Mutual Funds Sales and Service Agreement; Mutual Funds Service Agreement; and Plan Trustee/Mutual Funds Service Agreement from Item 24(b)(6) of the Cash Trust Series II Registration Statement on Form N-1A, filed with the Commission on July 24, 1995 (File Numbers 33-38550 and 811-6269); | |
5 | Conformed copy of Amendment dated June 1, 2001 to Distributor’s Contract of the Registrant; | (21) |
6 | Conformed copy of Amendment dated October 1, 2003 to Distributor’s Contract of the Registrant | (23) |
7 | Conformed copy of Exhibit E to the Distributor’s Contract of the Registrant | (27) |
(f) | Not applicable |
(g) | ||
1 | Conformed Copy of Custodian Contract of the Registrant; | (13) |
2 | Conformed Copy of Custodian Fee Schedule; | (17) |
3 | Conformed copy of Amendment to Custodian Contract of the Registrant; | (21) |
4 | Conformed Copy of Custodian Contract of the Registrant including Amendments 1 through 6 | (29) |
5 | Conformed Copy of Amendments 8 and 9 to the Custodian Agreement of the Registrant | (30) |
(h) | ||
1 | Conformed Copy of Amended and Restated Agreement for Fund Accounting Services, Administrative Services, Transfer Agency Services and Custodian Services Procurement; | (15) |
2 | The responses described in Item 23(e) (v) are hereby incorporated by reference. | |
3 | The Registrant hereby incorporates the conformed copy of Amendment No. 2 to the Amended & Restated Agreement for Fund Accounting Services, Administrative Services, Transfer Agency Services and Custody Services Procurement from Item 23 (h) (v) of the Federated U.S. Government Securities: 2-5 Years Registration Statement on Form N-1A, filed with the Commission on March 30, 2004. (File Nos. 2-75769 and 811-3387); | |
4 | The Registrant hereby incorporates the conformed copy of Amendment No. 3 to the Amended & Restated Agreement for Fund Accounting Services, Administrative Services, Transfer Agency Services and Custody Services Procurement from Item 23 (h) (v) of the Federated U.S. Government Securities: 2-5 Years Registration Statement on Form N-1A, filed with the Commission on March 30, 2004. (File Nos. 2-75769 and 811-3387); | |
5 | Conformed Copy of Principal Shareholder Services Agreement (Class B Shares) including Exhibit 1 and Schedule A and B; | (17) |
6 | Conformed Copy of Shareholders Services Agreement (Class B Shares) including Exhibit 1 and Schedule A; | (17) |
7 | The Registrant hereby incorporates by reference the conformed copy of the Agreement for Administrative Services, with Exhibit 1 and Amendments 1 and 2 attached, between Federated Administrative Services and the Registrant from Item 23(h) (iv) of the Federated Total Return Series, Inc. Registration Statement on Form N-1A, filed with the Commission on November 29, 2004. (File Nos. 33-50773 and 811-7115); | |
8 | The Registrant hereby incorporates the conformed copy of the Second Amended and Restated Services Agreement, with attached Schedule 1 revised 6/30/04, from Item 23(h) (vii) of the Cash Trust Series, Inc. Registration Statement on Form N-1A, filed with the Commission on July 29, 2004. (File Nos. 33-29838 and 811-5843) | |
9 | The Registrant hereby incorporates the conformed copy of the Financial Administration and Accounting Services Agreement, with attached Exhibit A revised 6/30/04, from Item (h) (viii) of the Cash Trust Series, Inc. Registration Statement on Form N-1A, filed with the Commission on July 29, 2004. (File Nos. 33-29838 and 811-5843) | |
10 | The Registrant hereby incorporates the conformed copy of Transfer Agency and Service Agreement between the Federated Funds and State Street Bank and Trust Company from Item 23(h)(viii)of the Federated Total Return Government Bond Fund Registration Statement on Form N-1A, filed with the Commission on April 28, 2006 (File Nos. 33-60411 and 811-07309); | |
11 | Conformed copy of the Financial Administration and Accounting Services Agreement, with attached Exhibit A revised 1/1/07; | (26) |
12 | Conformed Copy of the Amendment to Transfer Agency and Service Agreement dated January 1, 2008. | (29) |
13 | Conformed Copy of First Amendment to the Amended and Restated Agreement for Administrative Services. | (32) |
(i) | Conformed Copy of Opinion and Consent of Counsel as to legality of shares being registered; | (2) |
(j) | ||
1 | Conformed Copy of Consent of Independent Registered Public Accounting Firm; | (28) |
2 | Conformed Copy of Consent of Independent Registered Public Accounting Firm; | (+) |
(k) | Not Applicable |
(l) | Conformed Copy of Initial Capital Understanding; (2) |
(m) | ||
1 | Conformed Copy of Distribution Plan of the Registrant; | (12) |
2 | Conformed Copy of Exhibit A of Distribution Plan of the Registrant; | (20) |
3 | The responses described in Item 23(e) (v) are hereby incorporated by reference. | |
4 | Conformed Copy of Exhibit 1 and Schedule A to Distribution Plan (Class B Shares) of the Registrant; | (17) |
5 | Conformed copy of Distribution Plan (including Exhibit A) of the Registrant; | (23) |
(n) | The Registrant hereby incorporates the Copy of the Multiple Class Plan and attached Exhibits from Item (n) of the Federated Income Trust Registration Statement on Form N-1A, filed with the Commission on March 31, 2005. (File Nos. 2-75366 and 811-3352) | |
1 | Conformed Copy of the Multiple Class Plan and attached Exhibits; | (26) |
2 | Conformed Copy of the Multiple Class Plan and attached Exhibits; | (29) |
3 | Conformed Copy of the Multiple Class Plan and attached Exhibits | (30) |
4 | Conformed Copy of the Multiple Class Plan for Class B Shares and attached Exhibits | (31) |
5 | Conformed Copy of the Multiple Class Plan for Class A Shares | (34) |
6 | Conformed Copy of the Multiple Class Plan for Class F Shares | (34) |
7 | Conformed Copy of the Multiple Class Plan for Class A, Class B, Class C and Class F | (+) |
(o) | ||
1 | Conformed Copy of Power of Attorney of the Registrant; | (20) |
2 | Conformed Copy of Power of Attorney Director of the Registrant; | (24) |
3 | Conformed Copy of Power of Attorney of Treasurer of the Registrant; | (24) |
4 | Conformed Copy of Power of Attorney of Director of the Registrant; | (28) |
5 | Conformed Copy of Power of Attorney of Director of the Registrant; | (29) |
6 | Conformed Copy of Power of Attorney of Treasurer of the Registrant; | (32) |
7 | Conformed Copy of Power of Attorney of Director of the Registrant; | (33) |
8 | Conformed Copy of Power of Attorney of Director of the Registrant; | (33) |
9 | Conformed Copy of Power of Attorney of Director of the Registrant | (+) |
10 | Conformed Copy of Power of Attorney of Director of the Registrant | (+) |
(p) | ||
1 | Item 23p(i) and (ii)has been superseded by Item 23 p(2) | |
2 | Federated Investors, Inc. Code of Ethics for Access Persons, effective 10/01/2008 | (28) |
3 | Federated Investors, Inc. Code of Ethics for Access Persons, effective 12/06/10 | (31) |
4 | Federated Investors, Inc. Code of Ethics for Access Persons, effective 09/30/12 | (32) |
+ | All exhibits have been filed electronically. |
ALL RESPONSES ARE INCORPORATED BY REFERENCE TO A POST-EFFECTIVE AMENDMENT (PEA) OF THE REGISTRANT FILED ON FORM N-1A (FILE NOS. 2-57181 and 811-2677.) |
2 | PEA No. 1 filed November 29, 1976. | |
9 | PEA No. 36 filed July 17, 1990. | |
12 | PEA No. 42 filed May 25, 1994. | |
13 | PEA No. 45 filed May 25, 1995. | |
15 | PEA No. 48 filed May 28, 1996. | |
16 | PEA No. 50 filed May 29, 1997. | |
17 | PEA No. 51 filed May 29, 1998. | |
20 | PEA No. 56 filed May 25, 2001. | |
21 | PEA No. 57 filed May 29, 2002. | |
22 | PEA No. 58 filed May 28, 2003. | |
23 | PEA No. 59 filed June 1, 2004. | |
24 | PEA No. 60 filed May 27, 2005. | |
26 | PEA No. 64 filed March 30, 2007. | |
27 | PEA No. 67 filed May 29, 2008. | |
28 | PEA No. 68 filed May 28, 2009. | |
29 | PEA No. 69 filed May 26, 2010. | |
30 | PEA No. 70 filed May 26, 2011. | |
31 | PEA No. 72 filed May 29, 2012. | |
32 | PEA No. 74 filed May 28, 2013. | |
33 | PEA No. 76 filed May 28, 2014. | |
34 | PEA No. 78 filed May 27, 2015. |
Item 29 Persons Controlled by or Under Common Control with the Fund: |
None |
Item 30 Indemnification |
(1) |
Item 31 Business and Other Connections of Investment Adviser:
| |
For a description of the other business of the Investment Adviser, see the section entitled “Who Manages the Fund?” in Part A. The affiliations with the Registrant of one of the Trustees and two of the Officers of the Investment Adviser are included in Part B of this Registration Statement under "Who Manages and Provides Services to the Fund?" The remaining Trustees of the Investment Adviser and, in parentheses, their principal occupations are: Thomas R. Donahue, (Chief Financial Officer, Federated Investors, Inc.), 1001 Liberty Avenue, Pittsburgh, PA, 15222-3779, John B. Fisher, (Vice Chairman, Federated Investors, Inc.) 1001 Liberty Avenue, Pittsburgh, PA, 15222-3779 and Mark D. Olson a principal of the firm, Mark D. Olson & Company, L.L.C. and Partner, Morris James LLP, 500 Delaware Avenue, Suite 1500, Wilmington, DE 19801-1494. The business address of each of the Officers of the Investment Adviser is Federated Investors Tower, 1001 Liberty Avenue, Pittsburgh, Pennsylvania 15222-3779. These individuals are also officers of a majority of the Investment Advisers to the investment companies in the Federated Fund Complex described in Part B of this Registration Statement. | |
The Officers of the Investment Adviser are: | |
Chairman | J. Christopher Donahue |
President/ Chief Executive Officer: | John B. Fisher |
Executive Vice Presidents: |
Deborah A. Cunningham Robert J. Ostrowski |
Senior Vice Presidents: |
Todd Abraham J. Scott Albrecht Randall S. Bauer Jonathan C. Conley Mark E. Durbiano Donald T. Ellenberger Eamonn G. Folan Richard J. Gallo John T. Gentry Susan R. Hill William R. Jamison Jeffrey A. Kozemchak Anne H. Kruczek Marian R. Marinack Mary Jo Ochson Jeffrey A. Petro Ihab Salib Michael W. Sirianni, Jr. Paige Wilhelm
|
Vice Presidents: |
G. Andrew Bonnewell Hanan Callas Jerome Conner James R. Crea, Jr. Lee R. Cunningham, II B. Anthony Delserone, Jr. Ruggero deRossi Jason DeVito Bryan Dingle William Ehling Ann Ferentino Kathryn P. Glass James L. Grant Patricia L. Heagy Nathan H. Kehm John C. Kerber J. Andrew Kirschler Allen J. Knizner Tracey Lusk Karen Manna Christopher McGinley Keith E. Michaud Karl Mocharko Joseph A. Mycka Gene Neavin Bob Nolte Liam O’Connell Mary Kay Pavuk John Polinski Rae Ann Rice Brian Ruffner Thomas C. Scherr John Sidawi Kyle Stewart Mary Ellen Tesla Timothy G. Trebilcock Nicholas S. Tripodes Anthony A. Venturino Stephen J. Wagner Mark Weiss George B. Wright Christopher Wu
|
Assistant Vice Presidents: |
John Badeer Christopher Bodamer David B. Catalane Leslie Ciferno Gregory V. Czamara Timothy Gannon Daniel J. Mastalski Robert J. Matthews Nick Navari John W. Scullion Patrick J. Strollo III James D. Thompson
|
Secretary: | G. Andrew Bonnewell |
Treasurer: | Thomas R. Donahue |
Assistant Treasurers: | Jeremy D. Boughton Richard A. Novak |
Chief Compliance Officer: | Stephen Van Meter |
Item 32 Principal Underwriters: | |
(a) | Federated Securities Corp., the Distributor for shares of the Registrant, acts as principal underwriter for the following open-end investment companies, including the Registrant: |
Cash Trust Series, Inc. | |
Federated Adjustable Rate Securities Fund | |
Federated Core Trust | |
Federated Core Trust II, L.P. | |
Federated Core Trust III | |
Federated Equity Funds | |
Federated Equity Income Fund, Inc. | |
Federated Fixed Income Securities, Inc. | |
Federated Global Allocation Fund | |
Federated Government Income Securities, Inc. | |
Federated Government Income Trust | |
Federated High Income Bond Fund, Inc. | |
Federated High Yield Trust | |
Federated Income Securities Trust | |
Federated Index Trust | |
Federated Institutional Trust | |
Federated Insurance Series | |
Federated International Series, Inc. | |
Federated Investment Series Funds, Inc. | |
Federated Managed Pool Series | |
Federated MDT Series | |
Federated MDT Stock Trust | |
Federated Municipal Securities Fund, Inc. | |
Federated Municipal Securities Income Trust | |
Federated Premier Intermediate Municipal Income Fund | |
Federated Premier Municipal Income Fund | |
Federated Short-Intermediate Duration Municipal Trust | |
Federated Total Return Government Bond Fund | |
Federated Total Return Series, Inc. | |
Federated U.S. Government Securities Fund: 1-3 Years | |
Federated U.S. Government Securities Fund: 2-5 Years | |
Federated World Investment Series, Inc. | |
Intermediate Municipal Trust | |
Edward Jones Money Market Fund | |
Money Market Obligations Trust |
(1) Positions and Offices with Distributor |
(2) Name
|
(3) Positions and Offices With Registrant |
Chairman: | Richard B. Fisher | |
Executive Vice President, Assistant Secretary and Director: | Thomas R. Donahue | |
President and Director: | Thomas E. Territ | |
Vice President and Director: | Peter J. Germain | |
Director: | Denis McAuley III |
(1) Positions and Offices with Distributor |
(2) Name
|
(3) Positions and Offices With Registrant |
Executive Vice Presidents: |
Michael Bappert Peter W. Eisenbrandt Solon A. Person, IV Colin B. Starks Paul Uhlman |
|
Senior Vice Presidents:
|
Irving Anderson Jack Bohnet Bryan Burke Scott J. Charlton Charles L. Davis Michael T. diMarsico Theodore Fadool, Jr. James Getz Dayna C. Haferkamp Vincent L. Harper, Jr. Bruce E. Hastings James M. Heaton Donald Jacobson Harry J. Kennedy Michael Koenig Anne H. Kruczek Jane E. Lambesis Michael Liss Diane Marzula Amy Michaliszyn Richard C. Mihm Vincent T. Morrow Alec H. Neilly Becky Nelson Keith Nixon Brian S. Ronayne Tom Schinabeck John Staley Robert F. Tousignant Jerome R. Tuskan William C. Tustin Michael Wolff Paul Zuber |
|
Vice Presidents: |
Catherine M. Applegate Robert W. Bauman Marc Benacci Christopher D. Berg Dan Berry Bill Boarts Edward R. Bozek Edwin J. Brooks, III Thomas R. Brown Mark Carroll Dan Casey Steven R. Cohen James Conely Stephen J. Costlow Mary Ellen Coyne Kevin J. Crenny Stephen P. Cronin Jack C. Ebenreiter Donald Edwards Timothy Franklin Peter Germain David D. Gregoire Scott Gundersen Michael L. Guzzi Raymond J. Hanley Scott A. Holick Robert Hurbanek Jeffrey S. Jones Todd Jones Scott D. Kavanagh Patrick Kelly Nicholas R. Kemerer Shawn E. Knudson Ed Koontz Crystal C. Kwok Jerry L. Landrum Hans W. Lange, Jr. Joseph R. Lantz David M. Larrick John P. Lieker Jonathan Lipinski Paul J. Magan Margaret M. Magrish Michael R. Manning Meghan McAndrew Martin J. McCaffrey Brian McInis Kyle Morgan John C. Mosko Doris T. Muller Ted Noethling John A. O’Neill James E. Ostrowski Stephen Otto Mark Patsy Rich Paulson Marcus Persichetti Chris Prado Sean Quirk Josh Rasmussen Richard A. Recker Diane M. Robinson Timothy A. Rosewicz Matt Ryan
|
|
Eduardo G. Sanchez Peter Siconolfi Biran J. Sliney Justin Slomkowski Bradley Smith Edward L. Smith John R. Stanley Mark Strubel Jonathen Sullivan Christie Teachman Cynthia M. Tomczak Michael Vahl David Wasik G. Walter Whalen Stephen White Lewis Williams Theodore Williams Littell L. Wilson Edward J. Wojnarowski Daniel Wroble Erik Zettlemayer
|
Assistant Vice Presidents: |
Debbie Adams-Marshall Kenneth C. Baber Raisa E. Barkaloff Chris Jackson Jaimie A. Kosanovich Stephen R. Massey Carol McEvoy McCool John K. Murray Carol Anne Sheppard Laura Vickerman James Wagner
|
|
Secretary: | Kary A. Moore | |
Assistant Secretary | Edward C. Bartley | |
Thomas R. Donahue | ||
George F. Magera | ||
Treasurer: | Richard A. Novak | |
Assistant Treasurer: | Jeremy D. Boughton | |
Chief Compliance Officer: | Stephen Van Meter |
(c) | Not Applicable |
Item 33 Location of Accounts and Records: |
All accounts and records required to be maintained by Section 31(a) of the Investment Company Act of 1940 and Rules 31a-1 through 31a-3 promulgated thereunder are maintained at one of the following locations: |
Registrant |
Federated Investors Funds Warrendale, PA 15086-7561 (Notices should be sent to the Agent for Service at above address) |
Federated Administrative Services (“Administrator”) |
Federated Investors Tower 1001 Liberty Avenue Pittsburgh, PA 15222-3779 |
Federated Investment Management Company (“Adviser”) |
Federated Investors Tower 1001 Liberty Avenue Pittsburgh, PA 15222-3779 |
State Street Bank and Trust Company (“Transfer Agent and Dividend Disbursing Agent”) |
P.O. Box 8600 Boston, MA 02266-8600 |
The Bank of New York Mellon (“Custodian”) |
One Wall Street New York, NY 10286 |
Item 34 Management Services: Not applicable. |
Item 35 Undertakings: |
Registrant hereby undertakes to comply with the provisions of Section 16(c) of the 1940 Act with respect to the removal of Trustees and the calling of special shareholder meetings by shareholders. |
SIGNATURES Pursuant to the requirements of the Securities Act of 1933, and the Investment Company Act of 1940, the Registrant, FEDERATED MUNICIPAL SECURITIES FUND, INC., certifies that it meets all of the requirements for effectiveness of this Amendment to its Registration Statement pursuant to Rule 485(b) under the Securities Act of 1933 and has duly caused this Amendment to its Registration Statement to be signed on its behalf by the undersigned, duly authorized, in the City of Pittsburgh and Commonwealth of Pennsylvania, on the 26th day of May, 2016. |
FEDERATED MUNICIPAL SECURITIES FUND, INC. |
BY: /s/ George F. Magera George F. Magera, Assistant Secretary |
Pursuant to the requirements of the Securities Act of 1933, this Amendment to its Registration Statement has been signed below by the following person in the capacity and on the date indicated: |
NAME | TITLE | DATE |
BY: /s/George F. Magera George F. Magera, Assistant Secretary |
Attorney In Fact For the Persons Listed Below | May 26, 2016 |
J. Christopher Donahue *
|
President and Director (Principal Executive Officer) | |
Thomas R. Donahue* | Director | |
Lori A. Hensler* | Treasurer (Principal Financial Officer) | |
John T. Collins* | Director | |
G. Thomas Hough | Director | |
Maureen Lally-Green* | Director | |
Peter E. Madden* | Director | |
Charles F. Mansfield, Jr.* | Director | |
Thomas O’Neill* | Director | |
P. Jerome Richey* | Director | |
John S. Walsh* | Director | |
*By Power of Attorney |
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M_#VDW#1H(T,UE&Y51T497@
Exhibit (j)(2) under Form N-1A
Exhibit 23 under Item 601/Reg. S-K
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We consent to the references to our firm under the captions “Financial Highlights” in the Prospectus and “Independent Registered Public Accounting Firm” in the Statement of Additional Information in Post-Effective Amendment Number 80 to the Registration Statement (Form N-1A, No. 2-57181) of Federated Municipal Securities Fund, Inc., and to the incorporation by reference of our report, dated May 23, 2016, on Federated Municipal Securities Fund, Inc. included in the Annual Shareholder Report for the fiscal year ended March 31, 2016.
/s/ Ernst & Young LLP
Boston, Massachusetts
May 23, 2016
EXHIBIT 28(o) 9 UNDER FORM N-1A
EXHIBIT 24 UNDER ITEM 601/REG. S-K
POWER OF ATTORNEY
Each person whose signature appears below hereby constitutes and appoints the Secretary and Assistant Secretaries of FEDERATED MUNICIPAL SECURITIES FUND, INC. and each of them, their true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution for them and in their names, place and stead, in any and all capacities, to sign any and all documents to be filed with the Securities and Exchange Commission pursuant to the Securities Act of 1933, the Securities Exchange Act of 1934 and the Investment Company Act of 1940, by means of the Securities and Exchange Commission's electronic disclosure system known as EDGAR; and to file the same, with all exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to sign and perform each and every act and thing requisite and necessary to be done in connection therewith, as fully to all intents and purposes as each of them might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their or his substitute or substitutes, may lawfully do or cause to be done by virtue thereof.
SIGNATURES | TITLE | DATE |
/s/ G. Thomas Hough | Trustee/Director | August 11, 2015 |
G. Thomas Hough |
EXHIBIT 28(o) 10 UNDER FORM N-1A
EXHIBIT 24 UNDER ITEM 601/REG. S-K
POWER OF ATTORNEY
Each person whose signature appears below hereby constitutes and appoints the Secretary and Assistant Secretaries of FEDERATED MUNICIPAL SECURITIES FUND, INC. and each of them, their true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution for them and in their names, place and stead, in any and all capacities, to sign any and all documents to be filed with the Securities and Exchange Commission pursuant to the Securities Act of 1933, the Securities Exchange Act of 1934 and the Investment Company Act of 1940, by means of the Securities and Exchange Commission's electronic disclosure system known as EDGAR; and to file the same, with all exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to sign and perform each and every act and thing requisite and necessary to be done in connection therewith, as fully to all intents and purposes as each of them might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their or his substitute or substitutes, may lawfully do or cause to be done by virtue thereof.
SIGNATURES | TITLE | DATE |
/s/ Thomas R. Donahue | Trustee/Director | May 11, 2016 |
Thomas R. Donahue |
EXHIBIT 28(n) 7 UNDER FORM N-1A
EXHIBIT 99 UNDER ITEM 601/REG. S-K
Class A Shares Exhibit
To
Multiple Class Plan
(Revised 12/31/15)
1. SEPARATE ARRANGEMENT AND EXPENSE ALLOCATION
For purposes of Rule 18f-3 under the Act, the basic distribution and shareholder servicing arrangement of the Class A Shares will consist of sales and shareholder servicing by financial intermediaries in consideration of the payment of a portion of the applicable sales load (“dealer reallowance”)and a shareholder service fee. When indicated on the Schedule to this Exhibit, the principal underwriter and financial intermediaries may also receive payments for distribution and/or administrative services under a 12b-1 Plan. In connection with this basic arrangement, Class A Shares will bear the following fees and expenses:
Fees and Expenses | Maximum Amount Allocated Class A Shares |
Sales Load | Up to 5.5% of the public offering price |
Contingent Deferred Sales Charge ("CDSC") | 0.00% |
Shareholder Service Fee | Up to 25 basis points (0.25%) of the average daily net asset value |
12b-1 Fee | As set forth in the attached Schedule |
Redemption Fee | As set forth in the attached Schedule |
Other Expenses | Itemized expenses incurred by the Fund with respect to holders of Class A Shares as described in Section 3 of the Plan |
2. CONVERSION AND EXCHANGE PRIVILEGES
For purposes of Rule 18f-3, Class A Shares have the following conversion rights and exchange privileges at the election of the shareholder:
Conversion Rights: | At the election of the shareholder, Class A Shares may be converted into Institutional Shares or Service Shares. |
Exchange Privilege: | Class A Shares may be exchanged for Class A Shares of any other Fund |
In any exchange, the shareholder shall receive shares having the same aggregate net asset value as the shares surrendered. Exchanges to any other Class shall be treated in the same manner as a redemption and purchase.
3. EXCEPTIONS TO BASIC ARRANGEMENTS
For purposes of Rules 22d-1 and 6c-10 under the Act, unless otherwise specified on the Schedule to this Exhibit, the scheduled variations in sales loads and contingent deferred sales charges are as follows:
(A) BASIC SALES LOAD SCHEDULE
The basic schedule of sales loads for Class A Shares of Funds so designated on the Schedule to this Exhibit is as follows:
Purchase Amount |
Sales Load as a Percentage of Public Offering Price |
Less than $50,000 | 5.50% |
$50,000 but less than $100,000 | 4.50% |
$100,000 but less than $250,000 | 3.75% |
$250,000 but less than $500,000 | 2.50% |
$500,000 but less than $1 million | 2.00% |
$1 million or greater | 0.00% |
(B) FIXED INCOME SALES LOAD SCHEDULE
The schedule of sales loads for Class A Shares of Funds so designated on the Schedule to this Exhibit is as follows:
Purchase Amount |
Sales Charge as a Percentage of Public Offering Price |
Less than $100,000 | 4.50% |
$100,000 but less than $250,000 | 3.75% |
$250,000 but less than $500,000 | 2.50% |
$500,000 but less than $1 million | 2.00% |
$1 million or greater | 0.00% |
(C) MODIFIED FIXED INCOME SALES LOAD SCHEDULE
The schedule of sales loads for Class A Shares of Funds so designated on the Schedule to this Exhibit is as follows:
Purchase Amount |
Sales Charge as a Percentage of Public Offering Price |
Less than $250,000 | 1.00% |
$250,000 or greater | 0.00% |
(D) MONEY MARKET LOAD SCHEDULE
The Schedule of sales loads for Class A Shares of Funds so designated on the Schedule to this Exhibit is as follows:
Purchase Amount |
Sales Charge as a Percentage of Public Offering Price |
|
All purchases | 0.00% |
(E) ULTRASHORT BOND LOAD SCHEDULE
The Schedule of sales loads for Class A Shares of Funds so designated on the Schedule to this Exhibit is as follows:
Purchase Amount |
Sales Charge as a Percentage of Public Offering Price |
Less than $50,000 | 2.00% |
$50,000 but less than $100,000 | 1.75% |
$100,000 but less than $250,000 | 1.50% |
$250,000 + | 0.00% |
(F) "LARGE TICKET" PURCHASES
Unless otherwise indicated on the Schedule to this Exhibit, a financial intermediary that places an order to purchase $1,000,000 or more of Class A Shares shall receive from the principal underwriter an advance commission equal to 75 basis points (0.75%) of the public offering price. In such event, notwithstanding anything to the contrary in the Plan or this Exhibit, such Class A Shares shall be subject to a contingent deferred sales charge upon redemption within 24 months of purchase equal to 75 basis points (0.75%) of the lesser of (x) the purchase price of the Class A Shares or (y) the redemption price of the Class A Shares. Any contingent deferred sales charge received upon redemption of Class A Shares shall be paid to the principal underwriter in consideration of the advance commission.
(G) REDUCING OR ELIMINATING THE SALES LOAD
Contingent upon notification to the Fund’s principal underwriter or transfer agent, in applying the exceptions set forth in this Section 3, the purchase amount shall take into account:
· | Discounts achieved by combining concurrent purchases of and/or current investment in Class A, Class B, Class C, Class F, and Class R Shares, made or held by (or on behalf of) the investor, the investor’s spouse, and the investor’s children under age 21 (regardless of whether the purchases or investments are made or held directly or through an investment professional or through a single-participant retirement account); provided that such purchases and investments can be linked using tax identification numbers (TINs), social security numbers (SSNs), or Broker Identification Numbers (BINs); and |
· | Letters of intent to purchase a certain amount of Class A Shares within a thirteen month period. |
(H) waiver of sales load
Continent upon notification to the Fund’s Transfer Agent, no sales load shall be assessed on purchases of Class A Shares made:
· | within 120 days of redeeming shares of an equal or greater amount; |
· | through a program offered by a Financial Intermediary that provides for the purchase of Shares without imposition of a sales charge (for example, a wrap account, self-directed brokerage account, retirement or other fee-based program offered by the Financial Intermediary) and where the Financial Intermediary has agreed with the principal underwriter not to receive a dealer reallowance on purchases under such program; |
· | with reinvested dividends or capital gains; |
· | or Class A Shares, issued in connection with the merger, consolidation, or acquisition of the assets of another fund. Further, no sales load shall be assessed on purchases of Shares made by a shareholder that originally became a shareholder of a Federated Fund pursuant to the terms of an agreement and plan of reorganization which permits shareholders to acquire Shares at NAV provided that such Shares are held directly with the Fund’s transfer agent. If the Shares are held through a financial intermediary the sales charge waiver will not apply; |
· | by Federated Life Members (Federated shareholders who originally were issued shares through the “Liberty Account”, which was an account for the Liberty Family of Funds on February 28, 1987, or who invested through an affinity group prior to August 1, 1987, into the Liberty Account); |
· | by Directors, Trustees, employees, former employees and sales representatives of the Fund, the Adviser, the principal underwriter and their affiliates, employees of any investment professional that sells Shares according to a sales agreement with the principal underwriter, by the immediate family members of the above persons, and by trusts, pensions or profit-sharing plans for the above persons; and |
· | pursuant to the exchange privilege. |
(I) WAIVER OF CONTINGENT DEFFERED SALES CHARGE ON LARGE-TICKET PURCHASES
Contingent upon notification to the Fund’s principal underwriter or transfer agent, the 75 basis point (0.75%) CDSC applicable in connection with the “large-ticket” purchase program described above, will not be imposed on redemptions:
· | following the death of the last surviving shareholder or post-purchase disability, as defined in Section 72(m)(7) of the Internal Revenue Code of 1986; |
· | due to the termination of a trust following the death of the trustor/grantor or beneficiary, provided that the trust document specifically states that the trust is terminated upon the death |
· | representing minimum required distributions (“RMD”) from an Individual Retirement Account or other retirement plan as required under the Internal Revenue Code; |
· | of Shares that were reinvested within 120 days of a previous redemption; |
· | of Shares held by the Directors, Trustees, employees, former employees and sales representatives of the Fund, the Adviser, the principal underwriter and their affiliates, employees of any investment professional that sells Shares according to a sales agreement with the principal underwriter, by the immediate family members of the above persons, and by trusts, pension or profit-sharing plans for the above persons; |
· | of Shares originally purchased through a program offered by a Financial Intermediary that provides for the purchase of Shares without imposition of a sales charge (for example, a wrap account, self-directed brokerage account, retirement, or other fee-based program offered by the Financial Intermediary) and where the Financial Intermediary has agreed with the principal underwriter not to receive an advanced commission on purchases under such program; |
· | of Shares purchased with reinvested dividends or capital gains; |
· | imposed by the Fund when it closes an account for not meeting the minimum balance requirements; and |
· | of Shares which were purchased pursuant to an exchange privilege if the Shares were held for the applicable CDSC holding period. |
4. SPECIAL OFFER PROGRAM
[NOTE: The 30 month CDSC period connected with of this program expired in September of 2002]
During the Special Offer Program which took place in March, 2000, the sales load was waived on purchases of Class A Shares of Federated Aggressive Growth Fund, Federated Communications Technology Fund, Federated Large Cap Growth Fund, and Federated International Small Company Fund (the "Special Offer Funds"). Instead, the principal underwriter paid an advance commission of 2.00% of the offering price of the Special Offer Funds to intermediaries participating in the Special Offer Program. Class A Shares purchased through this Special Offer were subject to a CDSC of 2.00% on redemptions which occurred within 30 months after the purchase, which amount was to be paid to the principal underwriter in consideration for advancing the commission to intermediaries. Class A Shares of the Special Offer Funds purchased during the Special Offer Program could be exchanged with Class A Shares of other Special Offer Funds with no imposition of a sales load or CDSC fee. Class A Shares of the Special Offer Funds purchased during the Special Offer Program which were exchanged for Class A Shares of other Funds during the 30 month CDSC period incurred the CDSC fee upon redemption. However, no sales load was charged for such an exchange.
5. REDEMPTION FEE
For purposes of Rule 11a-3 under the Act, any redemption fee received upon the redemption or exchange of Class A Shares will be applied to fees incurred or amount expended in connection with such redemption or exchange. The balance of any redemption fees shall be paid to the Fund.
A Fund shall waive any redemption fee with respect to (i) non-participant directed redemptions or exchanges involving Class A Shares held in retirement plans established under Section 401(a) or 401(k) of the Internal Revenue Code (the “Code”), custodial plan accounts established under Section 493(b)(7) of the Code, or deferred compensation plans established under Section 457 of the Code; (ii) redemptions or exchanges involving Class A Shares held in plans administered as college savings programs under Section 529 of the Code; and (iii) Class A Shares redeemed due to the death of the last surviving shareholder on the account.
Schedule
of Funds
Offering Class A Shares
The Funds set forth on this Schedule each offer Class A Shares on the terms set forth in the Class A Shares Exhibit to the Multiple Class Plan, in each case as indicated below. The 12b-1 fees indicated are the maximum amounts authorized based on the average daily net asset value. Actual amounts accrued may be less.
1. CLASS A SHARES SUBJECT TO THE BASIC LOAD SCHEDULE
Multiple Class Company Series |
12b-1 Fee |
Redemption Fee |
Federated Equity Funds | ||
Federated Absolute Return Fund | 0.05% | None |
Federated Clover Small Value Fund | 0.05% | None |
Federated Clover Value Fund | 0.05% | None |
Federated Emerging Markets Equity Fund | 0.05% | None |
Federated InterContinental Fund | 0.05% | None |
Federated International Strategic Value Dividend Fund | 0.05% | None |
Federated Kaufmann Fund | 0.25% | None |
Federated Kaufmann Large Cap Fund | 0.25% | None |
Federated Kaufmann Small Cap Fund | 0.25% | None |
Federated MDT Mid-Cap Growth Strategies Fund | None | None |
Federated Managed Risk Fund | 0.05% | None |
Federated Managed Volatility Fund | 0.05% | None |
Federated Prudent Bear Fund | 0.05% | None |
Federated Strategic Value Dividend Fund | 0.05% | None |
Federated Equity Income Fund, Inc. | 0.05% | None |
Federated Global Allocation Fund | None | None |
Federated High Yield Trust | ||
Federated Equity Advantage Fund | 0.05% | None |
Federated Income Securities Trust | ||
Federated Capital Income Fund | None | None |
Federated Muni and Stock Advantage Fund | 0.05% | None |
Federated Prudent DollarBear Fund | 0.05% | None |
Federated Real Return Bond Fund | 0.05% | None |
Federated MDT Series | ||
Federated MDT All Cap Core Fund | 0.05% | None |
Federated MDT Balanced Fund | 0.05% | None |
Federated MDT Large Cap Growth Fund | 0.05% | None |
Federated MDT Small Cap Core Fund | 0.05% | None |
Federated MDT Small Cap Growth Fund | 0.05% | None |
Federated MDT Stock Trust | 0.05% (dormant) | None |
Federated World Investment Series, Inc. | ||
Federated International Leaders Fund | 0.05% | None |
Federated International Small-Mid Company Fund | 0.25% | 2% on shares redeemed or exchanged within 30 days of purchase |
2. CLASS A SHARES SUBJECT TO THE FIXED INCOME LOAD SCHEDULE
Multiple Class Company Series |
12b-1 Fee |
Redemption Fee |
Federated Fixed Income Securities, Inc. | ||
Federated Strategic Income Fund | None | None |
Federated Government Income Securities, Inc. | 0.05% | None |
Federated High Income Bond Fund, Inc. | None | 2% on shares redeemed or exchanged within 90 days of purchase |
Federated High Yield Trust | ||
Federated High Yield Trust | 0.05% | 2% on shares redeemed or exchanged within 90 days of purchase |
Federated Income Securities Trust | ||
Federated Fund for U.S. Government Securities | None | None |
Federated International Series, Inc. | ||
Federated International Bond Fund | 0.25% | None |
Federated Investment Series Funds, Inc. | ||
Federated Bond Fund | 0.05% | None |
Federated Municipal Securities Fund, Inc. | None | None |
Federated Municipal Securities Income Trust | ||
Federated Municipal High Yield Advantage Fund | 0.05% | None |
Federated New York Municipal Income Fund | 0.05% | None |
Federated Ohio Municipal Income Fund | 0.05% | None |
Federated Pennsylvania Municipal Income Fund | 0.05% | None |
Federated Total Return Series, Inc. | ||
Federated Total Return Bond Fund | 0.25% | None |
Federated World Investment Series, Inc. | ||
Federated Emerging Market Debt Fund | None | None |
3. Class A Shares Subject to the MODIFIED FIXED INCOME Sales Load Schedule
Multiple Class Company Series |
12b-1 Fee |
Redemption Fee |
Federated Income Securities Trust | ||
Federated Short-Term Income Fund | 0.50% | None |
Federated Institutional Trust | ||
Federated Short-Intermediate Total Return Bond Fund | 0.10% | None |
Federated Short-Intermediate Duration Municipal Trust | 0.25% | None |
4. Class A Shares Subject to the Money Market Load Schedule
Multiple Class Company Series |
12b-1 Fee |
Redemption Fee |
Money Market Obligations Trust | ||
Federated Government Reserves Fund | 0.45% | None |
5. Class A Shares Subject to the Ultrashort Bond Load Schedule
Multiple Class Company Series |
12b-1 Fee |
Redemption Fee |
Federated Fixed Income Securities, Inc. | ||
Federated Municipal Ultrashort Fund | 0.25% | None |
Federated Income Securities Trust | ||
Federated Floating Rate Strategic Income Fund | 0.10% | None |
Federated Institutional Trust | ||
Federated Government Ultrashort Duration Fund | 0.25% | None |
Federated Total Return Series, Inc. | ||
Federated Ultrashort Bond Fund | 0.30% | None |
6. Class A Shares Not Participating in the Large Ticket Purchase Program
Multiple Class Company | Series |
Federated Fixed Income Securities, Inc. | Federated Municipal Ultrashort Fund |
Federated Income Securities Trust | Federated Short-Term Income Fund |
Federated Institutional Trust | Federated Government Ultrashort Duration Fund |
Federated Short-Intermediate Duration Municipal Trust | |
Federated Total Return Series, Inc. | Federated Ultrashort Bond Fund |
Class B Shares Exhibit
To
Multiple Class Plan
(Revised 12/31/15)
1. Separate Arrangement And Expense Allocation
For purposes of Rule 18f-3 under the Act, the basic distribution and shareholder servicing arrangement of the Class B Shares will consist of sales by financial intermediaries in consideration of the payment of an advance commission paid by the principal underwriter. Financial intermediaries may perform shareholder services and receive a shareholder service fee for their services. In consideration of advancing commissions and/or the provision of shareholder services, the principal underwriter may receive the contingent deferred sales charges paid upon redemption of Class B Shares, and/or shareholder service fees and/or fees under a 12b-1 plan. In connection with this basic arrangement, Class B Shares will bear the following fees and expenses:
Fees and Expenses | Maximum Amount Allocated Class B Shares |
Sales Load | None |
Contingent Deferred Sales Charge (“CDSC”) | Up to 5.5% of the share price at the time of purchase or redemption, whichever is lower |
Shareholder Service Fee | Up to 25 basis points (0.25%) of the average daily net asset value |
12b-1 Fee | Up to 75 basis points (0.75%) of the average daily net asset value |
Redemption Fee | As set forth in the attached Schedule |
Other Expenses | Itemized expenses incurred by the Fund with respect to holders of Class B Shares as described in Section 3 of the Plan |
2. Conversion and Exchange Privileges
For purposes of Rule 18f-3, Class B Shares have the following conversion rights and exchange privileges at the election of the shareholder:
Conversion Rights: | After Class B Shares have been held for eight years from the date of purchase, they will automatically convert into Class A Shares. |
Exchange Privilege: | Class B Shares may be exchanged for Class B Shares of any other Fund. |
In any conversion or exchange, the shareholder shall receive shares having the same aggregate net asset value as the shares surrendered. Exchanges to any other Class shall be treated in the same manner as a redemption and purchase.
3. Exceptions to Basic Arrangements
For purposes of Rules 6c-10 and 22d-1 under the Act, unless otherwise specified on the Schedule to this Exhibit, the scheduled variations in contingent deferred sales charges payable upon redemption are as follows:
(A) BASIC CDSC SCHEDULE
Shares Held Up to: To: | Have A CDSC Of: |
1 year | 5.50 % |
2 years | 4.75 % |
3 years | 4.00 % |
4 years | 3.00 % |
5 years | 2.00 % |
6 years | 1.00 % |
7 years | 0.00 % |
8 years | Convert to Class A Shares |
(B) WAIVER OF CDSC
Contingent upon notification to the Fund’s principal underwriter or transfer agent, no CDSC will be imposed on redemptions:
· | following the death of the last surviving shareholder or post-purchase disability, as defined in Section 72(m)(7) of the Internal Revenue Code of 1986; |
· | due to the termination of a trust following the death of the trustor/grantor or beneficiary, provided that the trust document specifically states that the trust is terminated upon the death |
· | representing minimum required distributions (“RMD”) from an Individual Retirement Account or other retirement plan as required under the Internal Revenue Code; |
· | of Shares that were reinvested within 120 days of a previous redemption; |
· | of Shares held by the Directors, Trustees, employees, former employees and sales representatives of the Fund, the Adviser, the principal underwriter and their affiliates, employees of any investment professional that sells Shares according to a sales agreement with the principal underwriter, by the immediate family members of the above persons, and by trusts, pension or profit-sharing plans for the above persons; |
· | of Shares originally purchased through a program offered by a Financial Intermediary that provides for the purchase of Shares without imposition of a sales charge (for example, a wrap account, self-directed brokerage account, retirement, or other fee-based program offered by the Financial Intermediary) and where the Financial Intermediary has agreed with the principal underwriter not to receive an advanced commission on purchases under such program; |
· | of Shares purchased with reinvested dividends or capital gains; |
· | imposed by the Fund when it closes an account for not meeting the minimum balance requirements; and |
· | of Shares which were purchased pursuant to an exchange privilege if the Shares were held for the applicable CDSC holding period. |
(C) SYSTEMATIC WITHDRAWAL PROGRAM
Contingent upon notification to the principal underwriter or the Fund’s transfer agent, no CDSC will be imposed on redemptions that are qualifying redemptions of Class B Shares under a Systematic Withdrawal Program as described in the applicable prospectus and statement of additional information.
4. Redemption Fee
For purposes of Rule 11a-3 under the Act, any redemption fee received upon the redemption or exchange of Class B Shares will be applied to fees incurred or amount expended in connection with such redemption or exchange. The balance of any redemption fees shall be paid to the Fund.
A Fund shall waive any redemption fee with respect to (i) non-participant directed redemptions or exchanges involving Class B Shares held in retirement plans established under Section 401(a) or 401(k) of the Internal Revenue Code (the “Code”), custodial plan accounts established under Section 493(b)(7) of the Code, or deferred compensation plans established under Section 457 of the Code; (ii) redemptions or exchanges involving Class B Shares held in plans administered as college savings programs under Section 529 of the Code; and (iii) Class B Shares redeemed due to the death of the last surviving shareholder on the account.
Schedule
of Funds
Offering Class B Shares
The Funds set forth on this Schedule each offer Class B Shares on the terms set forth in the Class B Shares Exhibit to the Multiple Class Plan, in each case as indicated below. The 12b-1 fees indicated are the maximum amounts authorized based on the average daily net asset value. Actual amounts accrued may be less.
CLASS B SHARES SUBJECT TO THE BASIC LOAD SCHEDULE
Multiple Class Company Series |
12b-1 Fee | Redemption Fee |
Federated Equity Funds: | ||
Federated Absolute Return Fund | 0.75% | None |
Federated Clover Value Fund | 0.75% | None |
Federated InterContinental Fund | 0.75% | None |
Federated Kaufmann Fund | 0.75% | None |
Federated Kaufmann Small Cap Fund | 0.75% | None |
Federated MDT Mid-Cap Growth Strategies Fund | 0.75% | None |
Federated Equity Income Fund, Inc. | 0.75% | None |
Federated Fixed Income Securities, Inc.: | ||
Federated Strategic Income Fund | 0.75% | None |
Federated Global Allocation Fund | 0.75% | None |
Federated Government Income Securities, Inc. | 0.75% | None |
Federated High Income Bond Fund, Inc. | 0.75% | 2% on shares redeemed or exchanged within 90 days of purchase |
Federated Income Securities Trust: | ||
Federated Capital Income Fund | 0.75% | None |
Federated Fund for U.S. Government Securities | 0.75% | None |
Federated Muni and Stock Advantage Fund | 0.75% | None |
Federated International Series, Inc.: | ||
Federated International Bond Fund | 0.75% | None |
Federated Investment Series Funds, Inc.: | ||
Federated Bond Fund | 0.75% | None |
CLASS B SHARES SUBJECT TO THE BASIC LOAD SCHEDULE (continued)
Multiple Class Company Series |
12b-1 Fee | Redemption Fee |
Federated MDT Series: | ||
Federated MDT Large Cap Growth Fund | 0.75% | None |
Federated MDT Small Cap Growth Fund | 0.75% | None |
Federated Municipal Securities Fund, Inc. | 0.75% | None |
Federated Municipal Securities Income Trust: | ||
Federated Municipal High Yield Advantage Fund | 0.75% | None |
Federated New York Municipal Income Fund | 0.75% | None |
Federated Pennsylvania Municipal Income Fund | 0.75% | None |
Federated Total Return Series, Inc.: | ||
Federated Total Return Bond Fund | 0.75% | None |
Federated World Investment Series, Inc.: | ||
Federated Emerging Market Debt Fund | 0.75% | None |
Federated International Small-Mid Company Fund | 0.75% | 2% on shares redeemed or exchanged within 30 days of purchase |
Federated International Leaders Fund | 0.75% | None |
Money Market Obligations Trust: | ||
Federated Government Reserves Fund | 0.75% | None |
Class C Shares Exhibit
To
Multiple Class Plan
(revised 12/31/15)
1. Separate Arrangement And Expense Allocation
For purposes of Rule 18f-3 under the Act, the basic distribution and shareholder servicing arrangement of the Class C Shares will consist of sales by financial intermediaries in consideration of an advance commission of up to 1.00% of the public offering price, paid by the principal underwriter. Financial intermediaries may also provide shareholder services and may receive shareholder services fees therefor. Additionally, the principal underwriter and financial intermediaries may receive distribution and/or administrative service fees under the 12b-1 Plan. In cases where the principal underwriter has advanced a commission to the financial intermediary, such 12b-1 fees will be paid to the financial intermediary beginning in the thirteenth month after purchase. In consideration of advancing commissions, the principal underwriter will receive the contingent deferred sales charges paid upon redemption of Class C Shares and payments made under the 12b-1 Plan for twelve months following the purchase. In connection with this basic arrangement, Class C Shares will bear the following fees and expenses:
Fees and Expenses | Maximum Amount Allocated Class C Shares |
Contingent Deferred Sales Charge (“CDSC”) | 1.00% of the share price at the time of purchase or redemption, whichever is lower if redeemed within twelve months following purchase |
Shareholder Service Fee | Up to 25 basis points (0.25%) of the average daily net asset value |
12b-1 Fee | As set forth in the attached Schedule |
Redemption Fee | As set forth in the attached Schedule |
Other Expenses | Itemized expenses incurred by the Fund with respect to holders of Class C Shares as described in Section 3 of the Plan |
2. Conversion and Exchange Privileges
For purposes of Rule 18f-3, Class C Shares have the following conversion rights and exchange privileges at the election of the shareholder:
Conversion Rights: | At the election of the shareholder, Class C Shares that are not subject to a CDSC may be converted to Institutional Shares or Service Shares, provided that the shareholder meets the eligibility requirements for the Institutional Shares or Service Shares, as applicable. |
Exchange Privileges: | Class C Shares may be exchanged for Class C Shares of any other Fund. |
In any exchange, the shareholder shall receive shares having the same aggregate net asset value as the shares surrendered. Exchanges to any other Class shall be treated in the same manner as a redemption and purchase.
3. Exceptions to Basic Arrangements
For purposes of Rules 22d-1 and 6c-10 under the Act, unless otherwise specified on the Schedule to this Exhibit, the scheduled variations contingent deferred sales charges are as follows:
(A) WAIVER OF CDSC
· | following the death of the last surviving shareholder or post-purchase disability, as defined in Section 72(m)(7) of the Internal Revenue Code of 1986; |
· | due to the termination of a trust following the death of the trustor/grantor or beneficiary, provided that the trust document specifically states that the trust is terminated upon the death |
· | representing minimum required distributions (“RMD”) from an Individual Retirement Account or other retirement plan as required under the Internal Revenue Code; |
· | of Shares that were reinvested within 120 days of a previous redemption; |
· | of Shares held by the Directors, Trustees, employees, former employees and sales representatives of the Fund, the Adviser, the principal underwriter and their affiliates, employees of any investment professional that sells Shares according to a sales agreement with the principal underwriter, by the immediate family members of the above persons, and by trusts, pension or profit-sharing plans for the above persons; |
· | of Shares originally purchased through a program offered by a Financial Intermediary that provides for the purchase of Shares without imposition of a sales charge (for example, a wrap account, self-directed brokerage account, retirement, or other fee-based program offered by the Financial Intermediary) and where the Financial Intermediary has agreed with the principal underwriter not to receive an advanced commission on purchases under such program; |
· | of Shares purchased with reinvested dividends or capital gains; |
· | imposed by the Fund when it closes an account for not meeting the minimum balance requirements; and |
· | of Shares which were purchased pursuant to an exchange privilege if the Shares were held for the applicable CDSC holding period. |
4. Redemption Fee
For purposes of Rule 11a-3 under the Act, any redemption fee received upon the redemption or exchange of Class C Shares will be applied to fees incurred or amount expended in connection with such redemption or exchange. The balance of any redemption fees shall be paid to the Fund.
A Fund shall waive any redemption fee with respect to (i) non-participant directed redemptions or exchanges involving Class C Shares held in retirement plans established under Section 401(a) or 401(k) of the Internal Revenue Code (the “Code”), custodial plan accounts established under Section 493(b)(7) of the Code, or deferred compensation plans established under Section 457 of the Code; (ii) redemptions or exchanges involving Class C Shares held in plans administered as college savings programs under Section 529 of the Code; and (iii) Class C Shares redeemed due to the death of the last surviving shareholder on the account.
Schedule of Funds
Offering Class C Shares
The Funds set forth on this Schedule each offer Class C Shares on the terms set forth in the Class C Shares Exhibit to the Multiple Class Plan, in each case as indicated below. The 12b-1 fees indicated are the maximum amounts authorized based on the average daily net asset value. Actual amounts accrued may be less.
CLASS C SHARES SUBJECT TO THE BASIC LOAD SCHEDULE
Multiple Class Company Series |
12b-1 Fee | Redemption Fee |
Federated Equity Funds: | ||
Federated Absolute Return Fund | 0.75% | None |
Federated Clover Small Value Fund | 0.75% | None |
Federated Clover Value Fund | 0.75% | None |
Federated Emerging Markets Equity Fund | 0.75% | None |
Federated InterContinental Fund | 0.75% | None |
Federated International Strategic Value Dividend Fund | 0.75% | None |
Federated Kaufmann Fund | 0.75% | None |
Federated Kaufmann Large Cap Fund | 0.75% | None |
Federated Kaufmann Small Cap Fund | 0.75% | None |
Federated MDT Mid-Cap Growth Strategies Fund | 0.75% | None |
Federated Managed Volatility Fund | 0.75% | None |
Federated Prudent Bear Fund | 0.75% | None |
Federated Strategic Value Dividend Fund | 0.75% | None |
Federated Equity Income Fund, Inc. | 0.75% | None |
Federated Fixed Income Securities, Inc.: | ||
Federated Strategic Income Fund | 0.75% | None |
Federated Global Allocation Fund | 0.75% | None |
Federated Government Income Securities, Inc. | 0.75% | None |
Federated High Income Bond Fund, Inc. | 0.75% | 2% on shares redeemed or exchanged within 90 days of purchase |
Federated High Yield Trust | 0.75% | 2% on shares redeemed or exchanged within 90 days of purchase |
Federated Income Securities Trust: | ||
Federated Capital Income Fund | 0.75% | None |
Federated Floating Rate Strategic Income Fund | 0.75% | None |
Federated Fund for U.S. Government Securities | 0.75% | None |
Federated Muni and Stock Advantage Fund | 0.75% | None |
Federated Prudent DollarBear Fund | 0.75% | None |
Federated Real Return Bond Fund | 0.75% | None |
CLASS C SHARES SUBJECT TO THE BASIC LOAD SCHEDULE (continued)
Multiple Class Company Series |
12b-1 Fee | Redemption Fee |
Federated Index Trust | ||
Federated Max-Cap Index Fund | 0.75% | None |
Federated International Series, Inc.: | ||
Federated International Bond Fund | 0.75% | None |
Federated Investment Series Funds, Inc.: | ||
Federated Bond Fund | 0.75% | None |
Federated MDT Series: | ||
Federated MDT All Cap Core Fund | 0.75% | None |
Federated MDT Balanced Fund | 0.75% | None |
Federated MDT Large Cap Growth Fund | 0.75% | None |
Federated MDT Small Cap Core Fund | 0.75% | None |
Federated MDT Small Cap Growth Fund | 0.75% | None |
Federated Municipal Securities Fund, Inc. | 0.75% | None |
Federated Municipal Securities Income Trust: | ||
Federated Municipal High Yield Advantage Fund | 0.75% | None |
Federated Total Return Series, Inc.: | ||
Federated Total Return Bond Fund | 0.75% | None |
Federated World Investment Series, Inc.: | ||
Federated Emerging Market Debt Fund | 0.75% | None |
Federated International Leaders Fund | 0.75% | None |
Federated International Small-Mid Company Fund | 0.75% | 2% on shares redeemed or exchanged within 30 days of purchase |
Money Market Obligations Trust: | ||
Federated Government Reserves Fund | 0.75% | None |
Class F Shares Exhibit
To
Multiple Class Plan
(Revised 12/31/15)
1. Separate Arrangement And Expense Allocation
For purposes of Rule 18f-3 under the Act, the basic distribution and shareholder servicing arrangement for the Class F Shares will consist of sales by financial intermediaries in consideration of the payment of the sales load (“dealer reallowance”). Financial intermediaries may also provide shareholder services and may receive shareholder service fees therefor. Additionally, the principal underwriter may pay up to 100 basis points (1.00%) of the public offering price to financial intermediaries as an advance commission on sales. In consideration of advancing this payment, the principal underwriter will receive any contingent deferred sales charges paid upon redemption of Class F Shares and distribution service fees under the 12b-1 Plan on an ongoing basis. In connection with this basic arrangement Class F Shares will bear the following fees and expenses:
Fees and Expenses | Maximum Amount Allocated Class F Shares |
Sales Load | Up to 100 basis points (1.00%) of the public offering price |
Contingent Deferred Sales Charge ("CDSC") | Up to 100 basis points (1.00%) of the share price at the time of original purchase or redemption, whichever is lower |
Shareholder Service Fee | Up to 25 basis points (0.25%) of the average daily net asset value |
12b-1 Fee | As set forth in the attached Schedule |
Other Expenses | Itemized expenses incurred by the Fund with respect to holders of Class F Shares as described in Section 3 of the Plan |
2. Conversion and Exchange Privileges
For purposes of Rule 18f-3, Class F Shares have the following conversion rights and exchange privileges at the election of the shareholder:
Conversion Rights: | None |
Exchange Privileges: | Class F Shares may be exchanged for Class F Shares of any other Fund. |
In any exchange, the shareholder shall receive shares having the same aggregate net asset value as the shares surrendered. Exchanges to any other Class shall be treated as a redemption and purchase.
3. Exceptions to Basic Arrangements
For purposes of Rules 22d-1 and 6c-10 under the Act, unless otherwise specified on the Schedule to this Exhibit, the scheduled variations in sales load and contingent deferred sales charges are as follows:
(A) BASIC SALES LOAD SCHEDULE *
Purchase Amount: |
Sales Charge as Percentage of Offering Price | Sales Charge as a Percentage of NAV |
Less than $1 million | 1.00% | 1.01% |
$1 million or greater | 0.00% | 0.00% |
(B) CDSC SCHEDULE
Unless otherwise indicated below, the Schedule of Contingent Deferred Sales Charges for each Fund is as follows:
Purchase Amount: |
Shares Held: |
Contingent Deferred Sales Charge: |
Under $2 million | 4 years or less | 1.00% |
$2 million but less than $5 million | 2 years or less | 0.50% |
$ 5 million or greater | 1 year or less | 0.25% |
(C) REDUCING OR ELIMINATING THE SALES LOAD
Contingent upon notification to the Fund’s principal underwriter or transfer agent, in applying the exceptions set forth in this Section 3, the purchase amount shall take into account:
· | Discounts achieved by combining concurrent purchases of and/or current investment in Class A, Class B, Class C, Class F, and Class R Shares, made or held by (or on behalf of) the investor, the investor’s spouse, and the investor’s children under age 21 (regardless of whether the purchases or investments are made or held directly or through an investment professional or through a single-participant retirement account); provided that such purchases and investments can be linked using tax identification numbers (TINs), social security numbers (SSNs), or Broker Identification Numbers (BINs); and |
· | Letters of intent to purchase a certain amount of Class F Shares within a thirteen month period. |
(D) WAIVER OF SALES LOAD
Contingent upon notification to the Fund's principal underwriter or transfer agent, no sales load will be assessed on purchases of Class F Shares made:
· | within 120 days of redeeming Shares of an equal or greater amount; |
· | through a financial intermediary that did not receive a dealer reallowance on the purchase; |
· | by shareholders who originally became shareholders of a Fund pursuant to the terms of an agreement and plan of reorganization which permits the shareholders to acquire shares at net asset value. However, if the shareholder closes their account with the transfer agent, or if the shareholder transfers their account to another financial intermediary, the shareholder may no longer receive a sales charge waiver; |
· | with reinvested dividends or capital gains; |
· | by Directors, Trustees, employees, former employees and sales representatives of the Fund, the Adviser, the principal underwriter and their affiliates, employees of any investment professional that sells shares according to a sales agreement with the principal underwriter, by the immediate family members of the above persons, and by trusts, pension or profit-sharing plans for the above persons; and |
· | pursuant to the exchange privilege. |
(E) WAIVER OF CDSC
Contingent upon notification to the Fund’s principal underwriter or transfer agent, no CDSC will be imposed on redemptions:
· | following the death of the last surviving shareholder or post-purchase disability, as defined in Section 72(m)(7) of the Internal Revenue Code of 1986; |
· | due to the termination of a trust following the death of the trustor/grantor or beneficiary, provided that the trust document specifically states that the trust is terminated upon the death |
· | representing minimum required distributions (“RMD”) from an Individual Retirement Account or other retirement plan as required under the Internal Revenue Code; |
· | of Shares that were reinvested within 120 days of a previous redemption of an equal or lesser amount; |
· | of Shares held by the Directors, Trustees, employees, former employees and sales representatives of the Fund, the Adviser, the principal underwriter and their affiliates, employees of any investment professional that sells Shares according to a sales agreement with the principal underwriter, by the immediate family members of the above persons, and by trusts, pension or profit-sharing plans for the above persons; |
· | of Shares originally purchased through a program offered by a Financial Intermediary that provides for the purchase of Shares without imposition of a sales charge (for example, a wrap account, self-directed brokerage account, retirement, or other fee-based program offered by the Financial Intermediary) and where the Financial Intermediary has agreed with the principal underwriter not to receive an advanced commission on purchases under such program; |
· | of Shares purchased with reinvested dividends or capital gains; |
· | imposed by the Fund when it closes an account for not meeting the minimum balance requirements; |
· | of Shares which were purchased pursuant to an exchange privilege if the Shares were held for the applicable CDSC holding period; and |
· | representing a total or partial distribution from a qualified plan, which would not include account transfer, rollovers, or redemptions for the purpose of reinvestment. For these purposes, qualified plans would not include an Individual Retirement Account, Keogh Plan or custodial account following retirement. |
Schedule of Funds
Offering Class F Shares
The Funds set forth on this Schedule each offer Class F Shares on the terms set forth in the Class F Shares Exhibit to the Multiple Class Plan, in each case as indicated below. The 12b-1 fees indicated are the maximum amounts authorized based on the average daily net asset value. Actual amounts accrued may be less.
CLASS F SHARES SUBJECT TO THE BASIC LOAD SCHEDULE
Multiple Class Company Series |
12b-1 Fee |
Federated Equity Income Fund, Inc. | 0.25% |
Federated Fixed Income Securities, Inc.: Federated Strategic Income Fund |
0.05% |
Federated Government Income Securities, Inc. | None |
Federated Income Securities Trust: Federated Capital Income Fund Federated Muni and Stock Advantage Fund |
0.05% None |
Federated Investment Series Funds, Inc.: Federated Bond Fund |
None |
Federated Municipal Securities Fund, Inc. | None |
Federated Municipal Securities Income Trust: Federated Municipal High Yield Advantage Fund Federated Ohio Municipal Income Fund |
0.05% 0.40% |
Money Market Obligations Trust: Federated Government Reserves Fund |
0.45% |