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. | 82 | |||
and/or | ||||
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 | ||||
Amendment No. | 66 | |||
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 | March 30, 2017 | 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) | T |
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | 2.50% |
Maximum Deferred Sales Charge (Load) (as a percentage of original purchase price or redemption proceeds, as applicable) | None |
Maximum Sales Charge (Load) Imposed on Reinvested Dividends (and other Distributions) (as a percentage of offering price) | None |
Redemption Fee (as a percentage of amount redeemed, if applicable) | None |
Exchange Fee | None |
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) | |
Management Fee | 0.48% |
Distribution (12b-1) Fee | None |
Other Expenses1 | 0.48% |
Total Annual Fund Operating Expenses | 0.96% |
Fee Waivers and/or Expense Reimbursements2 | (0.08)% |
Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements | 0.88% |
1 | Because the Fund's T Shares are new, “Other Expenses” are based on estimated amounts for the current fiscal year. |
2 | 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 T class (after the voluntary waivers and/or reimbursements) will not exceed 0.87% (the “Fee Limit”) up to but not including the later of (the “Termination Date”): (a) April 1, 2018; 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. |
1 Year | $345 |
3 Years | $548 |
5 Years | $768 |
10 Years | $1,399 |
■ | 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, 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. The longer the duration of a fixed-income security, the more susceptible it is to interest rate risk. Recent and potential future changes in monetary policy made by central banks and/or their governments are likely to affect the level of interest rates. |
■ | Technology Risk. The Adviser uses various technologies in managing the Fund, consistent with its investment objective(s) 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 |
T: | |||
Return Before Taxes | (4.06)% | 2.41% | 2.96% |
Return After Taxes on Distributions | (4.06)% | 2.41% | 2.96% |
Return After Taxes on Distributions and Sale of Fund Shares | (1.05)% | 2.60% | 3.10% |
S&P Municipal Bond Index1 (reflects no deduction of fees, expenses or taxes) | 0.77% | 3.55% | 4.20% |
S&P Municipal Bond Investment Grade, 3-year plus, Non-AMT Index2 (reflects no deduction of fees, expenses or taxes) | 0.39% | 3.76% | 4.58% |
Morningstar Municipal National Long Funds Average3 | 0.00% | 3.60% | 3.63% |
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. |
■ | Fixed-income securities are fair valued using price evaluations provided by a pricing service approved by the Board of Directors (“Board”). |
■ | 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 Charge | |
T | $1,500/$100 | 2.50% | None |
1 | The minimum initial and subsequent investment amounts for Individual Retirement Accounts (IRAs) are generally $250 and $100, respectively. There is no minimum initial or subsequent investment amount required for employer-sponsored retirement plans; however, such accounts remain subject to the Fund's policy on “Accounts with Low Balances” as discussed later in this Prospectus. 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. |
2 | Front-End Sales Charge is expressed as a percentage of public offering price. See “Sales Charge When You Purchase.” |
T: | ||
Purchase Amount | Sales Charge as a Percentage of Public Offering Price | Sales Charge as a Percentage of NAV |
Less than $250,000 | 2.50% | 2.56% |
$250,000 but less than $500,000 | 2.00% | 2.04% |
$500,000 but less than $1 million | 1.50% | 1.52% |
$1 million or greater | 1.00% | 1.01% |
T: | |
Purchase Amount | Dealer Reallowance as a Percentage of Public Offering Price |
Less than $250,000 | 2.50% |
$250,000 but less than $500,000 | 2.00% |
$500,000 but less than $1 million | 1.50% |
$1 million or greater | 1.00% |
■ | 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. |
■ | 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; and |
■ | signatures of all shareholders exactly as registered. |
Call your financial intermediary or the Fund if you need special instructions. |
■ | 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; |
■ | 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; or |
■ | as the SEC may by order permit for the protection of Fund shareholders. |
■ | $1,500 for the T class (or in the case of IRAs, $250). |
Six Months Ended (unaudited) 9/30/2016 | Year Ended March 31, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | ||
Net Asset Value, Beginning of Period | $10.68 | $10.66 | $10.27 | $10.73 | $10.42 | $9.56 |
Income From Investment Operations: | ||||||
Net investment income1 | 0.16 | 0.33 | 0.34 | 0.35 | 0.36 | 0.38 |
Net realized and unrealized gain (loss) on investments and futures contracts | 0.11 | 0.01 | 0.39 | (0.46) | 0.30 | 0.86 |
TOTAL FROM INVESTMENT OPERATIONS | 0.27 | 0.34 | 0.73 | (0.11) | 0.66 | 1.24 |
Less Distributions: | ||||||
Distributions from net investment income | (0.16) | (0.32) | (0.34) | (0.35) | (0.35) | (0.38) |
Net Asset Value, End of Period | $10.79 | $10.68 | $10.66 | $10.27 | $10.73 | $10.42 |
Total Return2 | 2.51% | 3.31% | 7.16% | (0.97)% | 6.43% | 13.21% |
Ratios to Average Net Assets: | ||||||
Net expenses | 0.88%3 | 0.87% | 0.87% | 0.87% | 0.87% | 0.87% |
Net investment income | 3.04% 3 | 3.10% | 3.23% | 3.42% | 3.33% | 3.79% |
Expense waiver/reimbursement4 | 0.06%3 | 0.07% | 0.08% | 0.08% | 0.07% | 0.09% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $325,842 | $331,876 | $346,803 | $355,711 | $454,722 | $437,968 |
Portfolio turnover | 7% | 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. Total returns for periods of less than one year are not annualized. |
3 | Computed on an annualized basis. |
4 | This expense decrease is reflected in both the net expense and net investment income ratios shown above. |
FEDERATED MUNICIPAL SECURITIES FUND, INC. - T CLASS | |||||
ANNUAL EXPENSE RATIO: 0.96% | |||||
MAXIMUM FRONT-END SALES CHARGE: 2.50% | |||||
Year | Hypothetical Beginning Investment | Hypothetical Performance Earnings | Investment After Returns | Hypothetical Expenses | Hypothetical Ending Investment |
1 | $10,000.00 | $487.50 | $10,237.50 | $345.49 | $10,143.90 |
2 | $10,143.90 | $507.20 | $10,651.10 | $99.35 | $10,553.71 |
3 | $10,553.71 | $527.69 | $11,081.40 | $103.36 | $10,980.08 |
4 | $10,980.08 | $549.00 | $11,529.08 | $107.54 | $11,423.68 |
5 | $11,423.68 | $571.18 | $11,994.86 | $111.88 | $11,885.20 |
6 | $11,885.20 | $594.26 | $12,479.46 | $116.40 | $12,365.36 |
7 | $12,365.36 | $618.27 | $12,983.63 | $121.11 | $12,864.92 |
8 | $12,864.92 | $643.25 | $13,508.17 | $126.00 | $13,384.66 |
9 | $13,384.66 | $669.23 | $14,053.89 | $131.09 | $13,925.40 |
10 | $13,925.40 | $696.27 | $14,621.67 | $136.38 | $14,487.99 |
Cumulative | $5,863.85 | $1,398.60 |
■ | 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 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. |
■ | 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. |
■ | 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 |
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 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 or Trustee and Chairman, Federated Services Company and Federated Shareholder Services Company; and Director and
President, FII Holdings, Inc. Previous Positions: Director, Federated Investors, Inc.; Assistant Secretary, Federated Investment Management Company, Federated Global Investment Management Company and Passport Research, LTD; Executive Vice President, Federated Securities Corp.; and Treasurer, FII Holdings, Inc. | $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; formerly, Chairman and CEO, The Collins Group, Inc. (a private equity firm) (Retired). Other Directorships Held: Director, Current Chair of the Compensation Committee, 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 and Audit Committee Member, Bank of America Corp.; Director, FleetBoston Financial Corp.; and Director, Beth Israel Deaconess Medical Center (Harvard University Affiliate Hospital). | $1,302.87 | $275,000 |
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; formerly, Vice Chair, Ernst & Young LLP (public accounting firm) (Retired). Other Directorships Held: Director, Chair of the Audit Committee, Governance Committee, Publix Super Markets, Inc.; Director, Member of the Audit Committee and Technology Committee of Equifax, 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 (public accounting firm). 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 | $275,000 |
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; Interim Dean of the Duquesne University School of Law; Adjunct Professor of Law, Duquesne University School of Law; formerly, Associate
General Secretary and Director, Office of Church Relations, Diocese of Pittsburgh. 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 currently holds the positions on either a public or not for profit Board of Directors as follows: 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; Member, Pennsylvania State Board of Education (public); and Director and Chair, Cardinal Wuerl North Catholic High School, Inc. Judge Lally-Green has held the positions of: Director, Auberle; Director, Epilepsy Foundation of Western and Central Pennsylvania; Director, Ireland Institute of Pittsburgh; Director, Saint Thomas More Society; Director, Catholic High Schools of the Diocese of Pittsburgh, Inc.; and Director, Pennsylvania Bar Institute. | $1,302.87 | $275,000 |
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) |
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 | $335,000 |
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 as a Marine Corps officer and in several banking, business management, educational roles and directorship positions throughout his long career. He remains active as a Management Consultant. | $1,184.42 | $250,000 |
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 | $300,000 |
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; formerly, Senior Vice Chancellor and Chief Legal Officer, University of Pittsburgh and Executive Vice President
and Chief Legal Officer, CONSOL Energy Inc. 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 previously served as Chairman of the Board, Epilepsy Foundation of Western Pennsylvania and Chairman of the Board, World Affairs Council of Pittsburgh. Mr. Richey previously served as Chief Legal Officer and Executive Vice President, CONSOL Energy Inc. and Board Member, Ethics Counsel and Shareholder, Buchanan Ingersoll & Rooney PC (a law firm). | $1,184.42 | $250,000 |
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 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 | $250,000 |
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. |
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. |
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 | $50,000.00 |
Nicholas Constantakis | $66.37 | $50,000.00 |
Robert J. Nicholson | $66.37 | $49,909.78 |
James F. Will | $66.37 | $50,000.00 |
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 assets at that time. |
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 |
Board Committee | Committee Members | Committee Functions | Meetings Held During Last Fiscal Year |
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. | Nine |
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. | Two |
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) |
3 | Conformed copy of Articles Supplementary dated February 22, 2017 | + |
(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) |
8 | Conformed copy of Exhibit F dated March 1, 2017 to the Distributor’s Contract of the Registrant | + |
(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 | (35) |
8 | Conformed Copy of the Class T Shares Exhibit dated March 1, 2017 to the Multiple Class Plan | + |
(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 | (35) |
10 | Conformed Copy of Power of Attorney of Director of the Registrant | (35) |
(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. | |
35 | PEA No. 80 filed May 26, 2016 |
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. Steven J. Wagner Paige Wilhelm
|
Vice Presidents: |
G. Andrew Bonnewell Hanan Callas Jerome Conner Lee R. Cunningham, II B. Anthony Delserone, Jr. Joseph A. Delvecchio Jason DeVito Bryan Dingle William Ehling Ann Ferentino Timothy P. Gannon 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 Joseph M. Natoli 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 Mark Weiss George B. Wright Christopher Wu
|
Assistant Vice Presidents: |
John Badeer Patrick Benacci Christopher Bodamer David B. Catalane Nicholas Cecchini Leslie Ciferno Gregory V. Czamara Daniel J. Mastalski Robert J. Matthews Nick Navari John W. Scullion Steven J. Slanika Patrick J. Strollo III James D. Thompson
|
Secretary: | G. Andrew Bonnewell |
Assistant Secretaries |
Edward C. Bartley George F. Magera |
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: |
Federated Adjustable Rate Securities Fund | |
Federated Core Trust | |
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 Large Cap Value Fund | |
Federated MDT Series | |
Federated Municipal Securities Fund, Inc. | |
Federated Municipal Securities Income Trust | |
Federated Premier Intermediate Municipal Income Fund | |
Federated Premier Municipal Income Fund | |
Federated Project and Trade Finance Tender 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 | |
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: | Paul Uhlman | |
Vice President and Director: | Peter J. Germain | |
Director: | Frank C. Senchak |
(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
|
|
Senior Vice Presidents:
|
Irving Anderson Jack Bohnet Bryan Burke Scott J. Charlton Steven R. Cohen Charles L. Davis Michael T. diMarsico Jack C. Ebenreiter 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 Edwin C. Koontz 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 Stephen Otto Brian S. Ronayne Tom Schinabeck John Staley Robert F. Tousignant Jerome R. Tuskan William C. Tustin Michael Wolff Erik Zettlemayer Paul Zuber |
|
Vice Presidents: |
Catherine M. Applegate Robert W. Bauman Marc Benacci Christopher D. Berg Dan Berry Bill Boarts Matthew A. Boyle Edward R. Bozek Edwin J. Brooks, III Thomas R. Brown Mark Carroll Dan Casey James Conely Stephen J. Costlow Mary Ellen Coyne Kevin J. Crenny Stephen P. Cronin David G. Dankmyer Donald Edwards Stephen Francis Timothy Franklin David D. Gregoire Scott Gundersen Michael L. Guzzi Raymond J. Hanley Louis R. Hery, Jr. Scott A. Holick Robert Hurbanek Jeffrey S. Jones Todd Jones Scott D. Kavanagh Patrick Kelly Nicholas R. Kemerer Shawn E. Knudson 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 Meghan McAndrew Martin J. McCaffrey Brian McInis Kyle Morgan John C. Mosko Doris T. Muller Ted Noethling John A. O’Neill James E. Ostrowski Mark Patsy Rich Paulson Stephen Pedicini 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 Lewis Williams Theodore Williams Brian R. Willer Littell L. Wilson James J. Wojciak Edward J. Wojnarowski Daniel Wroble
|
Assistant Vice Presidents: |
Debbie Adams-Marshall Kenneth C. Baber Raisa E. Barkaloff Chris Jackson 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 the address listed on the facing page of this filing.) |
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 27th day of March, 2017. |
FEDERATED MUNICIPAL SECURITIES FUND, INC. |
BY: /s/ Kary A. Moore Kary A. Moore, 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/ Kary A. Moore Kary A. Moore, Assistant Secretary |
Attorney In Fact For the Persons Listed Below | March 27, 2017 |
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 28 (a)(3) under Form N-1A
Exhibit 3(i) under Item 601/Reg. S-K
FEDERATED MUNICIPAL SECURITIES FUND, INC.
ARTICLES SUPPLEMENTARY
Federated Municipal Securities Fund, Inc., a Maryland corporation having its principal office in the City of Baltimore, Maryland and a registered open-end Company under the Investment Company Act of 1940 (the “Corporation”), hereby certifies to the State Department of Assessments and Taxation of Maryland that:
FIRST: The Corporation is authorized to issue one billion (1,000,000,000) shares of common stock, all of which have a par value of one cent ($.01) per share, with an aggregate par value of $10,000,000. These Articles Supplementary do not increase the total authorized capital stock of the Corporation or the aggregate par value thereof.
SECOND: The Board of Directors of the Corporation hereby reclassifies (i) 100,000,000 shares of the authorized and unissued shares of Federated Municipal Securities Fund, Inc. Class B Shares, 150,000,000 of the authorized and unissued shares of Class C Shares and 50,000,000 of the authorized and unissued shares of Class F Shares (a total of 300,000,000 shares), into Federated Municipal Securities Fund, Inc. Class T Shares.
THIRD: Immediately before the reclassification of shares as set forth in Article SECOND hereto, the Corporation was authorized to issue one billion (1,000,000,000) shares of common stock, all of which were of a par value of one cent ($.01) per share having an aggregate par value of ten million dollars ($10,000,000) which were classified as follows:
Class Number of Shares
Federated Municipal Securities Fund, Inc. Class A 375,000,000
Federated Municipal Securities Fund, Inc. Class B 175,000,000
Federated Municipal Securities Fund, Inc. Class C 300,000,000
Federated Municipal Securities Fund, Inc. Class F 150,000,000
Aggregate Authorized Shares 1,000,000,000
Following the aforesaid reclassification of shares as set forth in Article SECOND hereto, the Corporation will be authorized to issue one billion (1,000,000,000) shares of common stock, all of which have a par value of one cent ($.01) per share, with an aggregate par value of $10,000,000 classified as follows:
Class Number of Shares
Federated Municipal Securities Fund, Inc. Class A 375,000,000
Federated Municipal Securities Fund, Inc. Class B 75,000,000
Federated Municipal Securities Fund, Inc. Class C 150,000,000
Federated Municipal Securities Fund, Inc. Class F 100,000,000
Federated Municipal Securities Fund, Inc. Class T 300,000,000
Aggregate Authorized Shares 1,000,000,000
FOURTH: The shares of common stock of the Corporation reclassified hereby shall be subject to all of the provisions of the Corporation’s Charter relating to shares of stock of the Corporation generally and shall have the preferences, conversion and other rights, voting powers, restrictions, limitations as to dividends, qualifications, and terms and conditions of redemption set forth in Article FIFTH, paragraph (b) of the Articles of Incorporation of the Corporation and as set forth below:
a. Shares having a common Fund name shall be invested in a common investment portfolio and the assets, liabilities, income, expenses, dividends and related liquidation rights belonging to each investment portfolio and allocated among them and among the various classes invested therein shall be as determined by the Board of Directors of the Corporation in accordance with law.
b. At such times (which may vary between and among the holders of particular classes of stock invested in a common investment portfolio) as may be determined by the Board of Directors (or with the authorization of the Board of Directors, by the officers of the Corporation) in accordance with the Investment Company Act of 1940, as amended, applicable rules and regulations thereunder, and applicable rules and regulations of the National Association of Securities Dealers, Inc. and reflected in the pertinent registration statement of the Corporation, shares of any particular class of stock invested in any common investment portfolio of the Corporation may be automatically converted into shares of another class of stock invested in the same common investment portfolio of the Corporation based on the relative net asset values of such classes at the time of conversion, subject, however, to any conditions of conversion that may be imposed by the Board of Directors (or with the authorization of the Board of Directors, by the officers of the Corporation) and reflected in the pertinent registration statement of the Corporation as aforesaid.
FIFTH: The stock has been reclassified by the Board of Directors under the authority contained in the Charter of the Corporation.
SIXTH: These Articles Supplementary will become effective immediately upon filing with the State Department of Assessments and Taxation of Maryland.
IN WITNESS WHEREOF, the Corporation has caused these presents to be signed in its name and on its behalf by its President and Assistant Secretary on February 22, 2017. The undersigned President and Assistant Secretary acknowledge that these Articles Supplementary are the act of the Corporation, that to the best of their knowledge, information and belief, all matters and facts set forth herein relating to the authorization and approval of these Articles of Supplementary are true in all material respects and that this statement is made under the penalties of perjury.
WITNESS | FEDERATED MUNICIPAL SECURITIES FUND, INC. |
/s/ George F. Magera /s/ J. Christopher Donahue
George F. Magera J. Christopher Donahue
Assistant Secretary President
Exhibit 28 (e)(8) under Form N-1A
Exhibit 1 under Item 601/Reg. S-K
Exhibit F
to the
Distributor's Contract
FEDERAED MUNICIPAL SECURITIES FUND, INC.
Class T Shares
The following provisions are hereby incorporated and made part of the Distributor's Contract dated the 1st day of March, 1993, between Federated Municipal Securities Fund, Inc. (the “Corporation”) and Federated Securities Corp. (“FSC”) with respect to Class of the Corporation set forth above.
1. FSC is authorized to select a group of financial institutions (“Financial Institutions”) to sell Shares at the current offering price thereof as described and set forth in the respective prospectuses of the Corporation.
2. FSC will enter into separate written agreements with such Financial Institutions to sell Shares as set forth in Paragraph 1 herein.
In consideration of the mutual covenants set forth in the Distributor's Contract dated March 1, 1993, between the Corporation and FSC, the Corporation executes and delivers this Exhibit on behalf of the Fund, and with respect to the Class of Shares thereof, first set forth in this Exhibit.
Witness the due execution hereof this 1st day of March 1, 2017.
FEDERATED MUNICIPAL SECURITIES FUND, INC.
By: /s/ J. Christopher Donahue
Name: J. Christopher Donahue
Title: President
FEDERATED SECURITIES CORP.
By: /s/ Paul A. Uhlman
Name: Paul A. Uhlman
Title: President
Exhibit 28(j) (2) Under Form N-1A
Exhibit 23 under Item 601/Reg S-K
CONSENT OF ERNST & YOUNG LLP, 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 82 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
March 23, 2017
Exhibit 28 (n)(8) under Form N-1A
Exhibit 99 under Item 601/Reg. S-K
Class T Shares Exhibit
To
Multiple Class Plan
(Revised 3/1/17)
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 T Shares will consist of sales and shareholder servicing by financial intermediaries in consideration of the payment of the applicable sales load (“dealer reallowance”) and a shareholder service fee. In connection with this basic arrangement, Class T Shares will bear the following fees and expenses:
Fees and Expenses | Maximum Amount Allocated Class T Shares |
Sales Load | Up to 2.50% of the public offering price |
Contingent Deferred Sales Charge ("CDSC") | None |
Shareholder Service Fee | Up to 25 basis points (0.25%) of the average daily net asset value |
12b-1 Fee | None |
Redemption Fee | As set forth in the attached Schedule |
Other Expenses | Itemized expenses incurred by the Fund with respect to holders of Class T Shares as described in Section 3 of the Plan |
2. CONVERSION AND EXCHANGE PRIVILEGES
For purposes of Rule 18f-3, Class T Shares have the following conversion rights and exchange privileges at the election of the shareholder:
Conversion Rights: | At the election of the shareholder, Shares may be converted into any other Share Class of the same Fund, provided that the shareholder meets the eligibility requirements for the Share Class into which the conversion is sought, as applicable, and that no CDSC on the original shares purchased is owed. |
Exchange Privilege: | None |
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 T Shares of Funds so designated on the Schedule to this Exhibit is as follows:
Transaction Amount |
Sales Load as a Percentage of Public Offering Price |
Less than $250,000 | 2.50% |
$250,000 but less than $500,000 | 2.00% |
$500,000 but less than $1 million | 1.50% |
$1 million or greater | 1.00% |
4. REDEMPTION FEE
For purposes of Rule 11a-3 under the Act, any redemption fee received upon the redemption or exchange of Class T 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 T 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 T Shares held in plans administered as college savings programs under Section 529 of the Code; and (iii) Class T Shares redeemed due to the death of the last surviving shareholder on the account.
Schedule
of Funds
Offering Class T Shares
The Funds set forth on this Schedule each offer Class T Shares on the terms set forth in the Class T Shares Exhibit to the Multiple Class Plan, in each case as indicated below. Actual amounts accrued may be less.
1. CLASS A SHARES SUBJECT TO THE BASIC LOAD SCHEDULE
Multiple Class Company Series |
Redemption Fee |
Federated Equity Funds | |
Federated Absolute Return Fund | None |
Federated Clover Small Value Fund | None |
Federated Clover Value Fund | None |
Federated InterContinental Fund | None |
Federated International Strategic Value Dividend Fund | None |
Federated Kaufmann Fund | None |
Federated Kaufmann Large Cap Fund | None |
Federated Kaufmann Small Cap Fund | None |
Federated MDT Mid-Cap Growth Fund | None |
Federated Prudent Bear Fund | None |
Federated Strategic Value Dividend Fund | None |
Federated Equity Income Fund, Inc. | None |
Federated Fixed Income Securities, Inc. | |
Federated Strategic Income Fund | None |
Federated Global Allocation Fund | None |
Federated Government Income Securities, Inc. | None |
Federated High Income Bond Fund, Inc. | None |
Federated High Yield Trust | |
Federated High Yield Trust | 2.00% on shares redeemed within 90 days of purchase |
Federated Income Securities Trust | |
Federated Capital Income Fund | None |
Federated Fund for U.S. Government Securities | None |
Federated Muni and Stock Advantage Fund | None |
Federated Investment Series Funds, Inc. | |
Federated Bond Fund | None |
Federated MDT Series | |
Federated MDT All Cap Core Fund | None |
Federated MDT Balanced Fund | None |
Federated MDT Large Cap Growth Fund | None |
Federated MDT Small Cap Core Fund | None |
Federated MDT Small Cap Growth Fund | None |
Federated MDT Large Cap Value Fund | None |
Federated Municipal Securities Income Trust | |
Federated Municipal High Yield Advantage Fund | None |
Federated Pennsylvania Municipal Income Fund | None |
Federated Municipal Securities Fund, Inc. | None |
Federated Total Return Series, Inc. | |
Federated Total Return Bond Fund | None |
Federated World Investment Series, Inc. | |
Federated International Leaders Fund | None |
Federated International Small-Mid Company Fund | 2.00% on shares redeemed within 30 days of purchase |